The Advantages and Disadvantages of Government Hospital and Free Health Care

The Advantages and Disadvantages of Government and Privat Hospital and Free Health Care – Essay Every government provides services for their citizens. One of the key areas governments focus their attention on is public health care. Citizens have the benefit of receiving free health care services whenever they need it. Yet, everything that is provided for free has its drawbacks. There are disadvantages as well as advantages associated with free health care services provided by governments for their citizens. Firstly, with the anticipation of free health services, there is a high likelihood of poor quality of services. According to the Ministry of Health’s Strategic Plan 2011-2015, Fiji has one of the lowest total health expenditure as a percentage of gross domestic product (GDP) when compared to other Pacific Island countries. As a result of a lack of finances, it can be expected that health services and products may not be of high quality. Moreover, cheaper and less effective medication may be given in place of quality and effective drugs. It should not be expected that citizens have the best quality of health services due to the limited budget and expenditure of the ministry. Another disadvantage of free health care is the shortage of doctors and nurses. The Minister of Health (Fiji), Dr Neil Sharma said that doctor shortages were a common occurrence in every part of the world and Fiji was no exception (Malo 2011, p. 5). For instance, at Rakiraki Hospital one doctor looks after over ten thousand people and only three doctors cater for the twenty-nine thousand population of Tavua (Malo 2011, p. 5). From this information it can be seen that the doctor to patient ratio is very low. Thirdly, free health care services leads to overcrowding in hospitals. With the availability of free medical services, citizens have the opportunity to make the most use of the services provided to them and this in turn leads to overcrowding. It is an all too common site to see long queues and frustrated patients at the outpatient section of major hospitals (Fiji Times Online 2008). Many people wait for hours before they are seen as the hospitals are just not large enough to cater for them all. With the large population of Fiji, it is not surprising that overcrowding occurs in hospitals. However, free health care services have many advantages as well. Governments spend a lot of time, money and resources in providing health care services and it is only after carefully examining the benefits that these services are provided. The advantages that will be considered include benefit to all classes of people, the continual improvement of healthcare services and the reduction and control of disease outbreaks. Equally important to consider are the advantages of free health services. Free health services benefit all classes of people especially the poor and needy who cannot afford expensive treatments offered at private hospitals and those citizens who do not have health insurance. In Fiji, the healthcare system is mainly financed through general taxation (Ministry of Health Strategic Plan 2011-2015, p. 11). The revenue collected from taxation is based on income levels and the ability of the individual to pay. Consequently, the poor families benefit greatly from this service as they get the most out of it. In addition, another advantage to consider is that the government continually improves its services. Citizens benefit greatly from the improved health services governments provide. According to the Minister of Health, Dr Neil Sharma, the ministry’s foremost objective is to strengthen primary healthcare services in the country. The Permanent Secretary for Health, Dr Salanieta Saketa added that one major target for the ministry is to improve the delivery of primary healthcare services (Ministry of Health Annual Corporate Plan 2011, pp. 3-4). The Fiji government also spends a substantial amount on educating and training health professions (Panda 2003, p. 37). These are only a few of the many ways the government is improving the healthcare system. Finally, free health services help to reduce and control disease outbreaks. Those individuals who are carriers of infectious diseases are treated and cared for. For example, the Ministry of Health has sections dealing with HIV and AIDS, adolescent and reproductive health, oral health and non-communicable diseases to name a few. Information is also provided on these diseases and prevention. These services are very beneficial to the itizens and the nation as a whole as it stops the risk of spreading the illness to the entire population. Free health services are indeed beneficial for the entire population. In conclusion, free health services provided by governments have its disadvantages and advantages. Although there are disadvantages to this service, in some ways, the advantages do outweigh the disadvantages. Governments do recognise the need for poor and needy families’ access to healthcare services and also know that in order to cater for their citizens needs, they must continually improve their health services. Governments also recognise the need to control or if possible eliminate the outbreak of infectious diseases in order to protect the entire population. The government has done a great job in providing the citizens with healthcare services and this can be improved by allocating more finances to the health sector. With these in play, it is safe to say that the free health care services governments provide have great advantages for their citizens.

Social Change During 1820-1860

Amr Sadek November 4, 2012 U. S. History In what ways did developments in transportation bring about economic and social change in the United States in the period 1820-1860? Development in transportation helped each area of the United States. Those areas were the South, North and the new west. Transportation helped each area develop economically and socially. Transportation helped by making the South making money by sending cotton to the north so they can manufacture clothes. This helped the south a lot, because they refused to manufacture and industrialize like the north.The only disadvantage about the south making more money by sending cotton to the north and west was that they became more reliant on their slaves. The development of business in the south grew and demands started increasing, so slaves had to work faster and harder. Slave owners created stricter slave policies and this is one of the ways that transportation socially harmed the south. From the 3 areas the north had th e most success because they manufactured goods that was sent to the west and south. The north consisted of cities and factories, which made it the economic power of the United States.Transportation helped the west by helping people move it a safer and more suitable way. If railroads weren’t created during that time then the west wouldn’t have been what it is today. The roads helped people move into the west, which meant that people had to stop during their journeys. This went on to create hotels for the people who were moving west. The major cause of people moving to the west was because there was gold in California and people were looking for wealth and a better life. The gold rush was the major factor of people moving to the western part of the United States.Overall, the economy of the U. S. improved economically because of the railroads and canals allowed people to trade and communicate faster. The north played the role of manufacturing goods for the south and west. The west was supplying most of the United States with food and it was most of that area consisted of farmers and foreigners. The south was the one who gave the North the cotton in order for them to create their manufactured goods. So the economy had a cycle that depended on all 3 areas to cooperate. Socially, the U. S. ad a dramatic change because all 3 areas changed and this was a time before the Civil war. The south had become more dependent on slaves and the North was employing more people in their factories. Tenstions began to grow between the North and South as people staretd moving around a lot. Northern people would explore the South and started knowing how the South treated their slaves and major conflicts started happening between the two. The west was becoming more diverse and was starting to help the U. S. expand and help split the population evenly.

Direct Digial Control (Building Automation)

The Importance and Understanding of having a Building Automation System Herbert Cuthbertson UAE210 — DIRECT DIGITAL CONTROLS In the past, there was little worry about energy consumption and costs associated with keeping Heating, Ventilation, Air Conditioning (HVAC), lighting and mechanical machines running at all hours of the day and night possibly. But due to the energy crises of the 1970’s and the last decade of rising costs of oil, the costs of energy not has forced not only families to conserve energy but companies, schools and businesses as well. In comes Direct Digital Controls (DDC) and/or Building Automation System (BAS) Basically a BAS/DDC system is a system that uses microprocessors, digital controls, to control not only hvac, but security, lighting, paging, and telecommunications if necessary. I recently spoke with a neighbor of mine who in the 1970’s worked for facilities management company representing various building in Cincinnati, Ohio. He explained to me that in the past, he and others, at the end of the day/night would have to go to every floor of these buildings and physically switch off the lights and hvac systems to try to conserve energy. With a BAS system, a lot of that time could be eliminated. A BAS system can now turn on a particular set of lights based time, occupancy indicators, or an outside light sensor. It can turn on and off a hvac system in a certain area of the building based on occupancy, provide additional heating or cooling based on a afterhours switch on a thermostat, send out alarms to a facility technician, security, police and fire personnel, and allow trained personnel to remotely access the system and change certain parameters instead of making a possible trip to the building. Preventive Maintenance (PM) on hvac equipment can also be integrated in the BAS. Instead of predicting the amount of run time hours, the BAS can show the correct amount of run time hours and notify personnel when equipment is due for its preventive maintenance. This ensures the equipment is routinely serviced according to the equipment manufacturers schedule. If a building does not have any BAS installed and management personnel is ready to invest in its installation, then this will take a well thought out plan. This plan will need to be constructed by trained personnel who will do the job correctly. This will enable both the building owners and the occupants of the building to enjoy the benefits of future financial gains and a more comfortable building.

Implementing Quality Management System in Emmar As a UAE Based Company Term Paper

Implementing Quality Management System in Emmar As a UAE Based Company - Term Paper Example The paper will also cover the benefits and problems of six sigma strategy in the business organization. Furthermore, the paper will also relate each of these topics with Emaar which is a UAE based company. The company in order to maintain their quality standards has to take various steps of quality management in its operations.Quality management framework is basically a wide concept of management which comprises of structure of an organization, methods, processes, resources that are needed to provide quality management in an organization. It encompasses all processes in an operational life cycle of a service in an organization. These processes affect the quality from identification of the needs of clients to final satisfaction of their requirements. By this framework, quality services are rendered to clients and stakeholders (Haule, 2007). It is considered as a strategic activity undertaken by a business organization in the competitive global market. In various types of organizations, Total Quality Management (TQM) has turned out to be a paradigm of management. TQM has facilitated organizations to make significant development and achievement in their businesses. There is a great difference between the success variable of TQM related to manufacturing and service companies (University of Nebraska Lincoln, n.d.). Quality management plays a significant role in modern business organizations. TQM is a technique to maintain consistency in production process in organizations so as to uphold reliability, efficiency along with quality. The success and achievement of an organization is based upon the loyalty of customers and through this technique, an organization can achieve satisfaction of the customers. ... Quality management plays a significant role in modern business organizations. TQM is a technique to maintain consistency in production process in organizations so as to uphold reliability, efficiency along with quality. The success and achievement of an organization is based upon the loyalty of customers and through this technique, an organization can achieve satisfaction of the customers. The value of TQM is a management based approach which is characterized by three aspects: principles, practices and techniques. These three principles are focused upon continuous improvement, customer orientation along with teamwork (Hoag & Et. Al., 2010). In 1999, Dow & Et. Al. developed the model of TQM in order to examine the effect of TQM practices on the performance of a firm and its effect on the quality of an organization. There are nine dimensions of quality practices in a firm which include commitment of workforce, joint vision, customer orientation, team building, personal training, mutual relation of supplier, high-tech manufacturing methods and use of bench-marking along with principles of just-in-time (Hoag & Et. Al., 2010). The quality management system encourages an organization to examine the requirements of customers. It also assists to define the processes that add towards the attainment of product which is suitable to the customers and maintains these processes under control. The quality management also caters the framework for incessant improvement of increasing the probability of customer satisfaction as well as the satisfaction of interested parties. Due to these facts of quality management, customers along with organizations become satisfied with the products and processes (International Standard, 2000). Emaar was established in 1997, as

Distinguish between business risk and financial risk Essay

Distinguish between business risk and financial risk - Essay Example Systematic risk refers to the risk posed by the conditions of the environment, i.e. the possibility that the economy within which a business operates will experience a downturn; while unsystematic risk refers to the possibility that the specific sector of the economy in which a business operates will fail. In order to protect against unsystematic risks, businesses try operating is a variety of sectors so that losses from one business can be offset by the profits from another. Since systematic risk pertains to the economy of a country, there is little that businesses can do to prevent against the dangers of this kind of risk. Several internal and external factors cause business risk. Internal business risk factors can be corrected by the business, however the external factors are beyond the organization’s control. Internal factors broadly include operating costs, business structure and business efficiency. In order to reduce operating costs, businesses should look toward cost cutting measures or to increasing revenues such that costs are covered. Similarly, business structure and management policies should be tailored such that they enhance efficiency. The external factors that cause business risk include the change in demand for the product, unpredicted changes in the state of economies worldwide etc. Another category of risk posed to a business is financial risk. Financial risk pertains to the financing structure of a business. It can pertain to risks associated with shares (in case of a public limited company) or with the debt structure of the business and occurs when a business fails to pay its creditors. This risk is business specific, since each business has its own financing structure and how it manages the structure depends on the business’s policies and strategies. Financial risks are of several types; market risk (risks associated with shares in the stock market),

Gmo Essay Example | Topics and Well Written Essays - 1500 words

Gmo - Essay Example The above processes require a combination of many processes, preservatives, and dyes so as to render the genetically modified foods safe for human consumption and be generally acceptable. Health problems can arise from the food additives used or due to the genetic alteration of the modified foods. Health problems such as allergies, attention deficient hyperactivity disorder, cancer, diabetes, renal failure, and even Alzheimer’s disease (Smith, 2014). Studies show that the above diseases which have been traced back to engineered foods are due to changes in normal metabolism of food. Food allergies is one of the mst prevalent health isues associated with engineered food. Food allergies can be defined as an immune response to some foreign constituents. Genetically modified foods are fortified with various proteins that may evoke an allergic response (Smith, 2014). That is, many engineered foods are processed by addition of genes (proteins) which do not occur naturally in plants. Examples of these synthetic foods that cause allergies include soya beans and corn. Such proteins can evoke an immune response in the body. Clinical signs and symptoms that are observed in food allergies include; However, allergies are not known to be fatal. Thus, prolonged exposure to such irritants will increase the occurrence of allergies, but they do not pose a major health issue. On the social side, allergies affect the quality of life of people and can pose a financial constraint on the victims. ADHD is a brain developmental problem and is commonly exhibited by children in their early teen and even earlier. Such children have a problem focusing and they exhibit behavioural disorders. ADHD is characterized by three main symptoms. These include hyperactivity, being impulsive, and inability to pay attention. Attention deficient disorder starts during childhood and can progress into

Winter dreams Essay Example | Topics and Well Written Essays - 1500 words

Winter dreams - Essay Example During winter time, at the end of the year everyone makes himself a survey and sees what was wrong and right, and what he would have wanted to live or to have. Now the most interesting and unexpected dreams are born.Winter dreams differs from person to person, in accordance with the person's age, character, social and financial condition, religion and country. All these factors influence and shape a person's dreams because we refer to the ones around us and our needs.Winter dreams was a theme often used by the writers, poets or it was used in many magazines. Maybe people were inspired reading the novels, short stories, articles on this topic, but the truth is the exchange is reversed: in all these pieces of paper exist a bit of our soul.and writers wanted to take part in these dreams. Charles Dickens did this too and his contribution was greater than the other writers because his message moved many and succeeded to change something in the mentality of his age. "A Christmas Carol" was a novel about the holiest period of year and was considered a book which wanted to resurge the spirit of Christmas and which offered a brand new image to its values: kindness, cadge, forgiveness. This redefinition came in a decline period of this holiday. Thus, the book may be considered as an accomplished winter dream.Dickens organizes the structure of the novel in a certain way, hoping that the readers will see that winter dreams have changed the main character in the end, have made him a better person. The point of view is that of the main character, but this overlaps with the others. The author presents the story at third person singular, seeming that we are told an objective story, but through this technique the author gives the readers the possibility to see facts in their own opinion. Winter dreams and all those charity deeds are seen by the main character, Ebenezer Scrooge , with irony, but in fact he is the one chaffed. So, the readers can realize that Ebenezer's type of behavior regarding Christmas and winter dreams is not appropriate, and that those poor people he detests, will help him in the end to change. Ebenezer Scrooge is a greed selfish business man . In the beginning of the novel it can be said that he doesn't know the notion of dream(maybe only the proper meaning), but gradually it can be discovered that this term existed in his mind and soul but was repressed many years ago. This character is in fact a symbol for all those who want to minimize holidays and even life, shortening it to the financial prosperity. The first lines of the novel talk about the death of Jacob Marley, a good friend of Scrooge seven years ago . Then the action moves in the business man's office during the winter holidays. Charles Dickens does not aleatory use this number. Seven in Hebrew means to be complete , and it is associated with God, with the spiritual perfection1. In Bible and in different writings this number is used very often. If seven means a completed cycle it may emphasize a new beginning. So, Scrooge was doomed to this behavior seven years , but now a new chance was given to him. This symbol may be seen as a part of winter dreams , because we tend to think of God and the holy things during Christmas time. Scrooge is visited by three ghosts in Christmas Eve and this is the event that will make him change forever. Ghosts are an often used motif in winter writings because this period is considered to be the bridge moment between the two worlds: of livings and of deaths. The number of spirits, three , is full of meaning again: three represents what is solid, real, complete . God has three main characteristics: omniscience, omnipresence, omnipotence. This can

Monitoring of users Essay Example | Topics and Well Written Essays - 750 words

Monitoring of users - Essay Example lantic have set up monitoring policy that ensures that their systems are protected and they can detect attributes of managed resources that are not operating within the specified parameters. Therefore, this paper shall seek to explain some of the rules of monitoring users of monitors executed by College of North Atlantic. First and foremost, College of North Atlantic’s monitoring policy asserts that it is mandatory for everyone using electronic system that belongs to the institution to comply with the agreements and guidelines stipulated in the policy. All the institution’s employees, contractors, subcontractors, students and volunteers must abide by the provisions of the procedures, policies and Acceptable Use Agreement that govern usage of the institutions electronic information systems (College of North Atlantic). The monitoring policy also stresses the importance of this by having administrative and academic managers responsible for ensuring that the policy is complied with. In doing this, College of North Atlantic will ensure that the monitoring policy is followed to the latter. The software policy enforced by College of North Atlantic plays an integral in ensuring that the institution’s computers and software are not destroyed. For example, the monitoring policy states that all software installed in the system in any department, the original set of software must be kept in an accessible and safe place in the corresponding department. Additionally, if software was installed and a license document was acquired, then the license document must also be stored in the respective department in an accessible and secure place. In order to ensure that this policy is followed to the latter, then the institution has ensured that the administrative and academic managers of the respective departments are responsible for the software licenses acquired in their departments (College of North Atlantic). Employees of College of North Atlantic are not allowed to install

Academic and Professional Discourse Communities Essay

Academic and Professional Discourse Communities - Essay Example iscuss what constitutes literacy in the discourse of graphic design and how one can achieve and demonstrate literacy within the graphic design discourse community. In the discourse of graphic design community, there are various methods that are involved in creating and combining symbols, words, and images in order to create a communication design or visual representation of messages and ideas. Literacy in graphic design would mean a mastery of the discourse, hence ability of a graphic designer to use a combination of the techniques of visual arts, typography, and page layout in order to produce final results of the practice of design. This process is hence referred to as a designing process in which some form of communication is created and design products are created. James Gee in his writing gives a sociological and a psychological approach to literacy. He asserts that literacy focus is a social practice and that it is not only the way you say it, but exactly what you are saying an d that which you are doing when saying it. Gee defines literacy in the parameters of discourse as a mastery of a particular secondary discourse. The graphic design discourse community has specific social and personal goals that they work towards meeting in the community. For instance, graphic designers are charged with the responsibility of creating visual communication to the people. They are expected to use techniques of visual arts, typography, and page layout in order to produce final results of the practice of design. Some of the specific goals they meet include creating identities such as branding and, publications like news papers, magazines and books, product packaging as well as advertisement. For instance, a graphic design discourse community aims at creating a product package that includes logo as well as other network, pure elements of design and an organized text like color and shapes that unify the piece of work. Therefore it is the goal, both at personal level and

Analytic review Essay Example | Topics and Well Written Essays - 500 words

Analytic review - Essay Example Both Thesydides and Aristophanes treat Cleon with clear despise. At the same time, their texts offer sufficient evidence that the political relationship between the Athenian political leaders and the demos was erotically colored. It is eroticism that serves the background of both Pericles and Cleon’s political activity as opposites. In this case, Cleon has been historically perceived as a mere parody of Pericles. He seems to have embodied all features that are not characteristic of Pericles as depicted by Aristophanes. At the same time, this vision helps to reveal much about Pericles. Dr Wohl relies on reading their politics not just through the specific features exhibited by Cleon and Pericles, but through understanding the essence of the eroticism inherent in political visions of the demos and its leaders. This leads to emergence of an elaborate political erotica. Within the limited societal model represented by Athens, the politician and the orator at once gets the support of the demos through violent eros. His open mouth epitomizes his desire to make his listeners open their orifices, too. So they gape at him. Erotically, this pederastic relationship puts the orator in a position of eromenos. This is how Cleon is viewed by Thusydides. Pericles, on his part, is believed not to descend to using the violent eros with fellatio and other sexual practices due to his authority. He sublimates the sexual desire into his authority. Yet, the demos retains his sexual desire which is repressed. The difference is Cleon acknowledges the desire and builds his erotic relationship with the demos on this, while Pericles does not, although he also acts in the same paradigm. In the last section of the chapter, Cleon’s political style is analyzed in terms of his rhetorical eros and then compared with that of Plutarch’s Pericles. For Cleon, this rhetorical eros is the essence of democracy, when the orator pleases the demos by the effeminizing

Health and Safety in the Health and Social Care Workplace Essay

Health and Safety in the Health and Social Care Workplace - Essay Example Dilemmas encountered in implementation systems and policies 3.4. Effects of non compliance of legislation 4. Health and Safety policies 4.1. Effects of non compliance of legislation 4.2. Effectiveness of policies that promote a positive health and safety culture 4.3. Evaluation of own contribution 5. Conclusion Health and Safety in the Health and Social Care Workplace 1. Introduction Health and safety of the worker should be guaranteed when they are at work. This paper will talk about how health and safety legislation is implemented at work. It will identify requirements and impacts of policies of health and safety. It will discuss monitoring and review of the health and safety in the hospital workplace. 2. Health and Safety legislation implementation at the work place 2.1. Systems, policies and procedures for communication Neal and Wright (1993, p. 106) note that communication in the work place is virtue in ensuring the goals of the organization are met. This is achieved by using wr itten, verbal and graphic methods of communication. Verbal information is crucial for training, is simple and transfers information fast. Written information is usually in the form of memo, email, posters and reports which are clearly written. Written information is placed on notice board to communicate an important message. Graphics such as drawings, photos and videos are effective massagers of information. The use of safety sign posts is championed by the 1996 Health and Safety regulation. This regulation ensures that signs used are uniform in the entire hospital. The bottom line for such signs is for them to have an effect of illumination and us simple acoustic symbols or hand signals. Visible signs identifying designated rooms and restricted areas are placed in the entire hospital. The names of those in charge of first aid, supervisor on duty and fire assembly point are placed on the notice board for all employees to be aware. Whenever new employees are inducted, they are given information on possible dangers that may arise and how to report the cases. In addition, general safety precaution measures are written and given to employee regularly. This is done after the organization does an assessment risk for the work place. 2.2. Responsibilities in relation to the organization structure The management of the hospital is responsible for ensuring that the working environment is safe in line with the legislation such as RIDOR (Reporting of Incidents Disease and Dangerous Occurrences). According to Hughes and Ferrett (2011, p. 58) the health and safety commission, executive, management and employees have designated duties. The commission comes up with the legislation that the health care institution follows. The facility reports death incidents immediately for the authorities to investigate. The management is mandated with the responsibility of ensuring that the law is followed by the employees by facilitated a good working environment. They take liability insur ance for the organization. They ensure that the facilities are safe for employees and customers. They support practical, safe and healthy work activities. Safety of working equipment and physical premise is also warranted. Moreover, a risk assessment, safety policy and communication of the same are communicated by the management to employees and others using the hospital facilities. A written policy statement on safety is provided. This policy statement assigns diverse

Blacks worthy of Free

Blacks worthy of Freedom Essay Born the youngest of eleven children, Marcus Garvey started his inspiring life in the rather uninspiring town of St. Ann, Jamaica in 1887. Before his death in 1940, Garvey would revolutionize the way many Blacks throughout the world portrayed their lives and approached the White world they were thrown into. Garvey was revolutionary from many of his contemporary thinkers, Black or White. His most extreme belief was that it’s impossible for white people to responsibly hold the best interests for black people. Garvey proclaimed an activist paradigm at a time a place when black Americans most needed hopeful guidance and social rejuvenation. Garvey believed that Black people had to unite as a common faction, not one that was divided by scales of darkness, or history of family DNA, all Black could unite under the Pan-African principle. United, the rallies spread a revival amongst down trodden Black Americans, many of who were disenfranchised by White America, who only recently saw Blacks worthy of Freedom. After World War I, Europe and Africa proved themselves easy to carve. Territory boundaries were easily re-drawn on maps and countries grew, while others collapsed. The theory of new country, one founded under the principles of Garvey-ism, did not seem that distant to his followers. Eventually, under carful structure that saw room for all members of the community, Garvey’s organization, the United Negro Improvement Association (UNIA) grew as a symbol of rebellion against the White rulers, as well as social gathering welcoming all Blacks with the same Pan-Africanist that united everyone. Garvey sought to revive the Black community through communal strength, societal willpower, and business gumption. As his organization grew in radicalism, it spread warning of rebellion, which naturally appealed to disenfranchised blacks in all parts of the world, many of who saw Garvey as the agent of an Earthly salvation.

Hrm Models Of Best Fit And Best Practice Management Essay

Hrm Models Of Best Fit And Best Practice Management Essay Report on LVMH (Moet Hennessy Louis Vuitton), the worlds leading luxury products group propose of making a report is to pass out edexcel program with a important subject of human resource planning and developments task assignment on lvmh company for find out difference in hrm modeles and how they worked on lvmh. Another task is on learning and development in multinational company as well as provide a recommendation for lvmh director for improve their strategy towards the staff for archive globally. And the last task for find out difference between recruitment and selection and hr function of international recruitment for lvmh. My approach for report is more practical and theoretical. INTRODUCTION TO ORGANIZATIONS LVMH (Moet Hennessy Louis Vuitton), the worlds leading luxury products group, including prestigious champagnes, wines, cognacs and spirits, as well as luxury goods, luggage and leather goods, fragrance and cosmetics products, watches and jewelry. The Company is also occupied in the haute fashion design and fashion businesses. LVMHs business consists of five principal business groups: Wines and Spirits, Fashion and Leather Goods, Perfumes and Cosmetics, Watches and Jewelry and Selective Retailing. In adding, LVMH has interests in financial media companies and in sale art sales, included under other performance. A vital part of the Companys production is situated in France, but sold through supplementary worldwide, in five major physical zones: France, Europe, the United States, Japan and the Far East. Louis Vuitton, a trunk-maker in Paris since 1854, became a star in the art of travel by creating baggage, bags and accessories as inventive as they were elegant and practical. A century and a half later, the legend lives on. Strengthened by its global renown, the Louis Vuitton legend is embodied by the Louis Vuitton Monogram Canvas, which has enjoyed unequalled victory since 1896 and played a starring role in the growth of modern luxury. Modernism form the story of Louis Vuitton. Task 1- HRM MODELS DIFFERNCE BETWEEN HRM MODELS OF BEST FIT ,BEST PRACTIS AND RESORSED BASED MODELS. Best practise vs Best fit It considers strategic human resource management approaches in conditions of the leadership that they offer for reward practices. There are difficulties in the sense that different writers from each perspective have different opinions about what comprise best fit or best practice. In spite of this, there are a few areas of conformity and as well as a number of points of difference. In the most common sense, both approaches view HR as having an significant role in following organisational strategy and objectives. Both approaches agree that payment practices should be consistent with other HR practices. There is a mutual view that an externally competitive reward system has an important role in attracting appropriate candidates and keeping employees. Both see rewards as a way of reinforcing organisational culture and structure. However, there are several significant difference. At the most broad level, best fit is a possibility approach while best practice is a universal approach. For best fit, organisational strategy comes first and all organisation systems and practices, together with reward. Just as organisational strategy is unique to the organisation, so is the reward system that will reinforce that strategy. For best fit, a narrow set of practices, including reward, precede strategy but provide the human resources needed to fulfil the organisations objectives, whatever they are. At a more specific level, best fit advocates display great self-reliance in the ability of the reward system to inspire specific individual behaviours. They support this view with hope Theory, a theory of motivation that advise that people with act in particular ways if they believe that their performance will lead to valued rewards. They suggest the use of variable incentives that are not combine into base pay to promote particular behaviours that are significant to achieving organisational objectives. inducement also provide financial flexibility because they are joined to an organisations ability to pay. Best fit proponents see rewards as the attach and the incentive. Since pay varies with performance, poor performers vote with their feet. outstanding performers are attracted to the large pay differentials that reward their performance. The Resource-Based Model The Resource-Based model approve an internal standpoint to explain how a companys exclusive bundle or collected works of internal resources and capabilities signify the foundation upon which value-creating strategies should be construct.Resources are inputs into a companys production process, such as brand names, individual employees skills, capital equipment, finance and talented managers and employee These resources can be tangible or intangible. Ability is the capacity for a set of resources to interactively or in combination achieve a task or activity.   Thus, according to the Resource-Based model, a companys resources and capabilities are more significant to formative the suitability of strategic actions than are the circumstances and characteristics of the external environment.   Thus, strategies should be selected that enable the company to best exploit its core competencies, relative to opportunities in the external environment. According to my thinking lvmh deploys their workforce planning and development in resourced best models because of following reasons The Resource-Based model of average returns is grounded in the uniqueness of a lvmh internal resources and capabilities.   Lvmh is identify the set of resources that provide the company with capabilities that are unique to the lvmh, relative to their competitors. Lvmh also identify those capabilities that enable the company to perform a task or activity better than its competitors. Lvmh assess or determine the potential for their unique sets of resources and capabilities to outperform its competitors in terms of returns. And also determine how a companys resources and capabilities can be used to gain competitive advantage. Lvmh is having with Locate and compete in an attractive industry. It is determine the industry that provides the best fit between the characteristics of the industry and the companys resources and capabilities.lvmh formulate and implement strategies that enable them to better exploit their resources and capabilities to take advantage of opportunities in the external environment than can their competitors.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   However, taking advantage of or exploiting resources and capabilities in the new competitive landscape may always result in a lvmh achieving a sustainable competitive advantage and above-average returns.   The potential to achieve a sustainable competitive advantage will be realised when lvmh resources and capabilities are valuable, rare, costly imitate, and no n substitutable TASK 2 LEARNING AND DEVELOPMENT Key Approaches Of Mnc For Learning And Development Of Their Staff Are Following Employee skills Review of Skills ,Prosperity for all in the global economy world class skills consider as implementing initiatives such as Train to Gain and signing the Employer Skills in mnc More organisations raise educational standards among young people before they enter the workforce rather than employers responsibility to raise literacy/numeracy standards within the workforce Mnc are requiring a broader range of skills and a higher level of skills . The key skills that employers class as very important include interpersonal and communication skills. However organisations feel that new employees currently lack communication/ interpersonal skills and management/leadership skill that organisations feel will be required to meet business objectives in the future. E-learning Nonetheless, over half (57%) of MNC organisations use e-learning, while nearly half tend to agree that e-learning is the most important development in training in the past few decades. There is some indication that e-learning will be increasingly used as a training tool in MNC. that e-learning demands a new attitude to learning on the part of learners for achieving a goal MNC make e-learning more effective by combined with other forms of learning. Coaching MNC undertake coaching activities, with a similar proportion finding coaching to be an effective tool.However, the purpose of coaching would appear to vary according to whom coaching is offered. Thus, within organisations that offer coaching to all of their employees, the purpose of this coaching is evidently used for general personal development and to remedy poor performance , whereas within organisations that offer coaching only to managers, the emphasis for the purpose of coaching shifts towards its position as part of a wider management and leadership development programme. The bulk of the responsibility for delivering coaching lies with line managers coaching those who report to them and to HR and learning, training and development specialists in MNC The main methods used for evaluating the effectiveness of coaching in MNC include through observation of changes and reviews of objectives conducted with line managers, coach and coachee. Expectations of new employees MNC required greater demand for learning and development among new employees (joining from school, college or university) compared with five years ago. More than half also feel that these new employees also require more structured career development, while two in five have seen greater demands for professional qualifications and greater feedback on performance Future skill requirements Reflecting the current need for both a diverse range of skills and an increased competency within those broader skill bases, MNC will require a broader range of skills. In terms of the types of skill that organisations feel need to be specifically developed to meet business needs over the years, most feel that management or leadership skills , communication or interpersonal skills , customer service skills and business skills are the highest priorities. Literacy and numeracy skills Training spends and budgets MNC organisations have a training budget and continue to spend more per employee per year on training, compared with the private sector and with the public sector. Learning and development for the future goal The majority of MNCS have experienced change over the last few years in delivering learning and development, with the most significant change concerning management development in the form of new programmes to develop the role of line managers Indeed, the crucial role of line managers highlighted in previous surveys is resistant this year, with the widely held being involved in determining learning and development needs and half predicting line managers will have greater responsibility for learning and development over the next five years On the whole, learning and development managers in MNC have accurately forecast changes in learning and development practices; e-learning, coaching, mentoring and in-house development programmes were all previously highlighted as growth areas. In-house development programmes and coaching by line managers are both now used more than previously. Lvmh face the problem of international development of its staff. There some recommendation for learning and development of its staff globally LVMH has required to create a pool of global managers with a working knowledge of international markets. A global manager should be defined as a person with the training or experience needed to manage a global business. He or she can perform from any place in the world thanks to a global vision and skills in managing multicultural and multilingual teams. To have such abilities, an individual must have worked in a number of countries so that his or her potential can be realised and perceived. LVMHs performance appraisal system should not only based on results but also on the ability to propose and implement new ideas. LVMH has a career management process called organisational and management review (OMR) . This annual process aims at reviewing HR objectives and results. The OMR is an essential tool for the organisations HR planning, taking into deliberation organisational needs for the next three years. It defines sequence planning and high-potential and ready to move lists. Employees identified on these lists are should be given development experiences, including international assignments, in order to arrange them for top management place. The OMR particularly seem back on the previous years objectives for high-potentials and those ready to move and assesses their current development. LVMH should manages to staff internally two in every three executive positions. To develop the skills and capacity of LVMH staff to ensure that flexibly and effectively to changing demands for service delivery, now and in the future, and strategic aims are achieved.their should be create an environment which encourages and supports excellence. For example LVMH should spends approximately  ¾ of its budget,  £11m, on employing staff. It is therefore important we have a robust strategy to ensure that they have staff with the right skills to deliver strategic aims. 1.4% of the  £11m budget is spent on staff learning and development and it is important that this investment is maximised. This sum keeps out on the job learning and development activities and support. All staff of LVMH are expected to develop the skills, knowledge and attributes required in their job through all learning and development processes not only training courses. Every year each member of staff should have the opportunity to engage in learning and development activities .LVMH should invest in staff development in order to make a direct impact on service delivery TASK 3 RECRUITMENT AND SELECTION Selection is different from recruitment, where recruitment technically lead selection. Recruitment involves recognize the sources of manpower and stimulating them to apply for jobs in the organizations. On the other hand, selection is the p rocess of decideing the best out of those recruited. Recruitment is positive as aims at rising the number of applications for wider choices or for increasing the selection ratio. Selection is an significant function as no organization can get its goals without selecting the correct people, where defective in selection leads to wastage of time, money and plunder the environment of an organization. In this regard, scientific selection and placement of personnel can go a long way in structure up a steady work force, where it helps to decrease absence and labour turnover at the same time very helpful inside increasing the efficiency and productivity of the enterprise The ultimate objectives of both recruitment and selection are to acquire suitable candidates but their instant objectives be different, where the basic objective of recruitment is to attract maximum number of candidates so that more options are offered .The basic purpose of recruitments is to create a talent pool of applicant to enable the selection of best applicant for the organization, by attracting more and more workforce to apply in the organization whereas The basic purpose of selection process is to choose the correct candidate to fill the Selection involves the sequence of steps by which the candidates are screened for various positions in the organization. Recruitment is a positive process i.e. encourage more and more employees to apply whereas Selection is a negative process as it involves refusal of the unsuitable candidates. Recruitment is troubled with tapping the sources of human resources whereas Selection is troubled with selecting the most suitable candidate through various interviews and examination. . There is no agreement of recruitment recognized in recruitment whereas Selection results in a agreement of service between the employer and the selected employee. Recruitment is the process of probing the candidates for employment and inspiring them to apply for jobs in the organization Whereas Selection involves the sequence of steps by which the candidates are screened for choosing the most suitable persons for empty posts. the ultimate objectives of both recruitment and selection are to obtain appropriate candidates but their instant objectives differ, where the vital objective of recruitment is to draw maximum number of candidates so that more options are available; the basic purpose of selection is to choose most excellent out of the available candidates. recruitment be different from selection in terms of process, where it take on the process of making application pool as large as possible; while selection take on the process through which more and more candidates are discarded and less candidates are selected or for a moment not even a single candidate is selected. in respect to techniques concerned, recruitment techniques are not very intensive, requiring high skills, as next to this, In selection process, highly dedicated techniques are required. Therefore, in the selection process, only personnel with exact skills like expertise in using selection tests, conducting interviews and the like are concerned. since recruitment and selection are two inter-linked steps in the process of manpower gaining, they be different in term of outcome; where the outcome for recruitment is application pool which becomes input for selection process, on the other hand, the outcome of selection process is in the form of finalizing candidates who will be offered jobs. Argument for lvmh international recruitment HR function The busy global organizations and the rapid changing companies do not find time to perform various functions of recruitment. Therefore LVMH should advise the candidates to be present for an interview directly and without a prior application on a specified date, time and at a specified place. The busy and dynamic global LVMH should encourage the possible job seekers to move towards them personally and consult them regarding the jobs. And select the suitable candidates from among such candidates though the selection process. LVMH should request the professional organizations to search for the best candidates particularly for the senior executive positions. The professional organizations search for the most suitable candidates and advice to company regarding the filling up of the positions. LVMH should develop the pool of human resources for possible employment. The prospective employers contact these organizations to recruit the candidates. The body shoppers appoint people for their association and give the required/specific employees to various organization on request. In fact, body shoppers collect fee/commission from the organizations and pay the salary/benefits to the employees. It is like acquisitions, mergers, and takeovers help in getting human resources. In addition, LVMH do also have alliances in sharing their human resources on ad-hoc basis. The technological revolutions in telecommunication helped LVMH to use internet as source of recruitment. lvmh advertise the job vacancies though the World Wide Web internet. The job seekers send their application though e-mails or internet websites. RECOMMENDATIONS The luxury goods are very receptive to the fluctuation of economy; any economic wave could influence its sales. LVMH is business mainly depends on the economic condition, if economy was depressed, its sales growth slow down sharply like it did in 2002, since demand for luxury goods declines markedly when recession or depression happens. Broad gaining makes no sense and could bring load, such as it acquired Pury Luxembourg, which is criticized since there was no room for art auction market. The mission of the LVMH group is to represent the most refined qualities of Western Art de Vivre around the world. LVMH must continue to equal to elegance and creativity. lvmh should take young graduates , mostly single for their international assignment and should give support neede to ensure smooth relocation. there should be some insurance schemes available and also international insurance. Lvmh should recruit more individuals whos having international knowledge and know at least four language and also immersed in several cultural and tradition. LVMH should have clear and and simple principal that can be applied to all countries with having harmozinious practise to allow for more global workforce between both countries and employee. the employee should be pay higher than his colleagues.

The Environment And Effect On Human Health Environmental Sciences Essay

The Environment And Effect On Human Health Environmental Sciences Essay Polychlorinated Biphenyls are a group of manmade chemicals. They make up a group of two hundred and nine individual chlorinated biphenyl rings, known as congeners. In the concentrated form, PCBs are oily liquids, oily solids, and clear to yellow in color.(EPA, 2012). They have no smell or taste. (EPA, 2012). They are very stable mixtures that are resistant to extreme temperature and pressure. They have a low degree of reactivity. PCBs are not flammable, have high electrical resistance, and are good insulators.(Barbalace, 2002) PCBs were seen as an industrial breakthrough, because of its chemical properties. Before their ban in 1979, Polychlorinated biphenyls entered the environment during their manufacture and us in the United States. The organic chemicals were first manufactured by Monsanto in 1929. Prior to their ban, PCBs were used in hundreds of industrial and commercial applications, as electrical insulators. Uses for PCBS included transformers, electrical equipment, hydraulic fluids, oil based paint, carbonless carbon paper, compressors, heat transfer systems, pigments, adhesives, liquid cooled electric motors, fluorescent bulbs, cable insulation, plastic, and the list goes on.(EPA, 2012). Domestic uses included cereal boxes and bread wrappers. Because of its role in prevent fires and an explosion, the chemical was required by fire code. PCBs were seen as the ideal insulator for companies and consumers. The qualities that make PCBs wanted by consumers and companies are also the ones that make it hazardous to the environment and human health. PCBs high thermal and chemical resistance means they do not break down easily when exposed to heat or chemical treatments causing it to be hard to get out of the environment. Since they do not break down they remain in the environment and continue to build up. Today, the chemicals can still be released in the environment through spills, leaks, and improper disposal and storage. More than half of the PCBs produced during 1929-1979 have been released into the environment. (Barbalace, 2012). Although PCBs are no longer commercially manufactured or widely used , there are still ways people can be exposed to concentrated Polychlorinated Biphenyls. The most common exposures include through food, surface soils, drinking and ground water, indoor air, and in the workplace. PCBs are an organic pollutant. Companies that used the substance contaminated the environment through its uses and disposals. In 1935, the Monsanto Company purchased the Theodore Swann chemical company and began manufacturing PCBs in the United States. Monsanto continued to produce PCBs at its Anniston plant until 1971.(Lyons, 2004). During its forty years of manufacturing PCBs as an electrical insulator, the Monsanto Company flushed tens of thousands of pounds of PCBs into nearby creeks and buried millions more pounds in a hillside landfill. (Lyons, 2004). The Monsanto Company was sued by thousands of current and former residents of Anniston, who claim the company was aware of the dangers posed by PCBs and actively schemed to hide this information from the nearby public. (Firestone, 2002). In 1966, Monsanto managers discovered fish near the waste sites turned belly side up spurting blood and shredding skin, within ten seconds of the PCBs disposal.(Firestone, 2002). The company hid t heir findings. In 1969, fish were found with 7500 times the legal PCB level.(Grunwald, 2002). Company records reveal the companys decision that there was no reason to go to expensive extremes in limiting discharge form the plant.(Grunwald, 2002). The company was ordered to pay $53 million in cleanup cost and agreed to a global settlement involving current and future cases in Alabama.(Lyons, 2004). There are numerous known contaminated sites around the U.S. Among the most dangerous of these,  is the Hudson River Valley. In 1947-1977, General Electric (GE) began dumping PCB in the river. By the ban in 1979, an estimated 1.3 million pounds of the synthetic chemical had entered the Hudson river. The Hudson River was contaminated with PCB pollution. Twenty years later, officials still have to deal with the environmental effect of PCBs in the bedrocks of the Hudson River. (Mele, 1998). PCBs are now found throughout the Hudson River ecosystem, in in sediment, water, and wildlife. (Mele, 1998). The spread of PCBs throughout the Hudson River and the food chain has created one of the most widespread, hazardous waste problems in the nation.  The EPA ordered the General Electric Company to pay 460 million dollars to dredge the PCBs it had dumped into the Hudson River. (Grunwald, 2002). The Environmental Protection Agency Prevention regulates PCBs through the Toxic Substances Control Act (TSCA). The Act bans the use, distribution, manufacture, and processing of PCBs. TSCA gives EPA the authority to develop and enforce regulations concerning the manufacture, use, cleanup, and proper disposal of PCBs. (EPA, 2012). Through the environment, humans came into contact with the chemical. Polychlorinated Biphenyls are linked to numerous health hazard. It has an acute toxic affect. Skin irritations can occur in people exposed to high levels of PCBs. Studies in the workplace suggest that exposure to PCBs may also cause irritation of the nose and lungs. PCBs are a probable human carcinogen. EPA ´s regulations on cancer-causing chemicals use the term `probable ´ when a chemical is known to cause cancer in animals and where there is evidence that suggests that it causes cancer in humans but which is not conclusive. Studies of PCBs in humans have found increased rates of cancer patients that may be connected to the synthetic chemical. PCBs are known to cause a variety of types of cancer in rats, mice, and other study animals. (EPA, 2012) Polychlorinated Biphenyls are linked to developmental effects. Proper development of the nervous system is critical for early learning and can have potentially significant implications for the health of individuals throughout their lifetimes. (EPA, 2012). Women exposed to PCBs before or during pregnancy can give birth to children with significant neurological and motor control problems. These problems include lowered IQ and poor short-term memory. (EPA, 2012). PCBs disrupt hormone function. PCBs with only a few chlorine atoms can mimic the body ´s natural hormones. PCBs are also thought to play a role in reduced sperm number, reformed sex organs, puberty, and altered sex ratios of children. PCBs with more chlorine atoms act like dioxins in altering the metabolism of sex steroids in the body, which change the normal levels of estrogens and testosterone. PCBs also upset the balance of thyroid hormones, which may affect the growth, intellectual, and behavioral development. (EPA, 2012). PCBs are found throughout the environment, and it may be impossible to avoid coming into contact with Polychlorinated Biphenyls. People can try avoiding contact with contaminated soils and sediments. (Wisconsin, 2012). Practice good hygiene habits. Limit their consumption of sport-caught fish. Wash fruits and vegetables before eating them. Also, if any member of the household works with old electrical equipment be sure the equipment is properly maintained and the area is well ventilated. (Wisconsin, 2012). Polychlorinated Biphenyls are a chemical that will not go away. The Environmental Protection Agency is trying their best to rid the environment of its effects. The characteristics of the synthetic drug cause it to be transported easily and hard to break down. The drug has caused damaged to the environment, and the people around the environment. Polychlorinated Biphenyls will have a lifetime effect on the environment and people. Sources Barbalace, Roberta C. The Chemistry of Polychlorinated Biphenyls.  : PCB, The Manmade Chemicals That Wont Go Away (EnvironmentalChemistry.com). N.p., n.d. Web. 27 Aug. 2012. . Environmental Protection Agency. Polychlorinated Biphenyls.  EPA. Environmental Protection Agency, n.d. Web. 7 Sept. 2012. . Firestone, David. Alabama Jury Says Monsanto Polluted Town.  The New York Times. N.p., 23 Feb. 2002. Web. 7 Sept. 2012. . Grunwald, Michael. Monsanto Held Liable For PCB Dumping.  The Washington Post. Raw Food Info, 23 Feb. 2002. Web. 7 Sept. 2012. . Lyon, Steve. PCB Pollution in Anniston, Alabama. Reading.  Commonweal. Professor Raquel Pinderhughes. San Francisco State Unversity . Urban Studies and Environmental Programs, 2004. Web. 7 Sept. 2012. . Human Health Hazards PCBs and Your Health.  Human Health Hazards PCBs and Your Health. N.p., n.d. Web. 7 Sept. 2012. . The Hudson River PCB Story A Toxic Heritage. Dir. Andy Mele. W. Alton Jones Foundation, 1998. Short Film.  The Hudson River PCB Story A Toxic Heritage. Web. 7 Sept. 2012. . What Are The Human Health Effects Of PCBs?  What Are The Human Health Effects Of PCBs?  N.p., n.d. Web. 7 Sept. 2012. .

Counseling Processes Essay -- essays research papers fc

In counseling, there are many processes used by a counselor in his sessions with a client. These may be done in a specific order or however which way the counselor sees them to be appropriate. Listed below are the different processes that may be undertaken during a counseling session. 1. Before meeting a counselee, the counselor tries to find out as much as he can about the former. This is done so that he may discern what will help the client most. Also, he has to fathom the counselee's past so that he will know beforehand how he can help him. 2. The counselor and the counselee take some time to get to know each other. This is a process that works both ways, as does the entire counseling process upon which they are about to embark. In the process, the counselee's needs are assessed and appropriate therapy may be chosen. 3. Questionnaires or tests may be given to the counselee to prove or disprove the counselor's initial findings. It may be too early to judge the counselee right away but this may help the counselor in the totality of the sessions. 4. The counselor needs to determine, with greater accuracy, the nature of the emotion and experience that is behind the counselee's current difficulties by further detailed examination of the latter's history. Some of the issues and patterns raised in the questionnaires or tests may be raised and any relationships that may be analogous to initial observations may be noted with the behaviors and feelings involved. 5. The counselor ...

Genetic Screening and Genetic Discrimination by Insurance Companies Ess

Genetic screening has been a subject of debate for quite some time now. Beginning in the 1990s, when it became prevalent owing to the increasing research into the cause of diseases (Chadwick, 1). Screening brought advantages— the chance to see what diseases or cancers one may be at risk for, an opportunity to take a glimpse inside of one’s personal genome (Tree.com). However, as genetic screening became more and more common, it brought with it just as many disadvantages. Genetic screening found its way into corporate boardrooms and insurance companies, creating large amounts of discrimination against employees where genetic make-up revealed a disposition to certain diseases. Despite acts prohibiting genetic discrimination, such as the Genetic Information Non-Discrimination Act (GINA), insurance companies today still use results from genetic screening tests to deny people medical coverage that they need (Hill). Insurance companies should not be permitted t o use genetic screening in their application process as it creates discrimination against the individual as well as entire races, and the information is not reliable. Genetic screening is a process created in the 1990s, which allowed anyone to have his or her genome mapped out and carefully studied for signs of hereditary diseases and cancer. Typically, it is used to detect only recessive or heterozygote diseases such as Tay Sachs Disease and Cystic Fibrosis, and today is applied to predisposition testing for multifactorial diseases of larger populations (Chadwick, 1). Most commonly, the DNA is taken from blood samples or a mouth swab and is then sent to a lab which takes apart the person’s genetic information and records it letter for letter. Today, five diffe... ...alition. â€Å"Genetic Testing for Breast Cancer.† 2005-2013. Web. Oct. 5, 2013. Park, Madison. â€Å" NCAA genetic screening rule sparks discrimination concerns.† 2010, August 4. Web. Oct. 5, 2013. Pray, Leslie. â€Å"DTC Genetic Testing: 23andMe, DNA Direct and Genelex.† 2008. Web. Sept. 5, 2013. Pupecki, Sandra R. Genetic Screening. May 11, 2006. Web. Sept. 9, 2013. Reichman, Judith. â€Å"Can a Genetic Test Affect My Health Insurance?† 2007 June 4. Web. Oct. 8, 2013. Rochman, Bonnie. â€Å"Why Cheaper Genetic Testing Could Cost Us a Fortune.† 2012 Oct 26. Web. Oct. 6, 2013. Sagredo, Boris. â€Å"Genetic Screening The Social Impact of Genetic Knowldege.† NA. Web. Sept. 6, 2013 Schwartz, Ruth. Hereditary and Hope: The Case of Genetic Screening. May 2008. Web (Book). Sept. 7, 2013. Tree. Com. â€Å"The Pros and Cons of DNA Genetic Testing.† 2011. Web. Sept. 4, 2013.

The Great Depression Essay -- essays research papers

Carmack 2 The Great Depression   Ã‚  Ã‚  Ã‚  Ã‚  The Great Depression is known as a time of economic disaster, and for its impact on the social structure of families. As times got harder, the family way of life changed. Families that were well off did not suffer as much as those that were already struggling. When men lost their jobs they also lost the ability to support their families. Children were forced to leave home and find work without adequate schooling. The Great Depression affected people both physically and psychologically. It was an era of unemployment, family struggles, and the way they survived.   Ã‚  Ã‚  Ã‚  Ã‚  The Great Depression was an era of unemployment. One of the main causes of unemployment was the combination of the greatly unequal distribution of wealth throughout the twenties. The unequal distribution of wealth had gone on forever. Money was distributed disparately between the rich and the middle class, between the United States and Europe, and even between industries and agriculture. The unequal distribution of wealth had created an unstable economy. Companies were losing money because of this unstable economy so there for they had to make some changes. The first thing that had to be done was to save money and they did this by cut the pay role. Employees of many years were fired or took massive pay cuts. The employers only kept a select few workers that they had to have. Carmack 3 If one did not make the employer’s expectation, they were fired.   Ã‚  Ã‚  Ã‚  Ã‚  Monte Cristo had a list, a little roll call. And one by one he took them each for a ride Saying One and Two and Three and so on Till the names were all crossed off And he had cleabsed the world of a giving number Of betrayers who had personally wronged him. He was judge, jury, and executioner   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Sandburg 445) Finding a replacement was not difficult since everyone; men, women, children, and even grandparents, were looking for work. I’m not asking for social equality, †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ All I want is a job with a decent wage, To exist now and provide for old age. So kindhearted employers, my case is up to you, Give me something to do. (Proudberg 9-16) With few job openings and so many people looking fo... ...yday study the buffalo on the nickel, †¦. Study before the nickel, the dime is spent.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Sandburg 456) A lot of the people today have long forgotten the lessons that their parents had taught them. Today people really do not appreciate the value of a dollar, but they know all about â€Å"plastic,† or commonly known as credit cards. I think a small dose of depression would do people today some good but not too much, because I think we would have a lot more people killing themselves and others just because people have fewer moral values today. Carmack 8 Worked Cited Hawes, Joseph M. Children Between the Wars. Ed. Joseph M. Hawes., N. Ray Hiner. New York: Twayne Publishers, 1997. Proudbeg, Jim. â€Å"Poor Nut Ambitious (too Proud To Beg).† 21 Apr. 2000. http://www.mudcat.org/!!-song99.cfm?stuff=fall99+9902682. Sandburg, Carl. The Complete Poems of Carl Sandburg. New York: Harcourt Brace Jovanovich, 1970. Underwood, Mark. â€Å"Black Thursday.† The New York Times on the web. 1 May. 1996. 4 Apr. 2000 . The Great Depression Essay -- essays research papers Carmack 2 The Great Depression   Ã‚  Ã‚  Ã‚  Ã‚  The Great Depression is known as a time of economic disaster, and for its impact on the social structure of families. As times got harder, the family way of life changed. Families that were well off did not suffer as much as those that were already struggling. When men lost their jobs they also lost the ability to support their families. Children were forced to leave home and find work without adequate schooling. The Great Depression affected people both physically and psychologically. It was an era of unemployment, family struggles, and the way they survived.   Ã‚  Ã‚  Ã‚  Ã‚  The Great Depression was an era of unemployment. One of the main causes of unemployment was the combination of the greatly unequal distribution of wealth throughout the twenties. The unequal distribution of wealth had gone on forever. Money was distributed disparately between the rich and the middle class, between the United States and Europe, and even between industries and agriculture. The unequal distribution of wealth had created an unstable economy. Companies were losing money because of this unstable economy so there for they had to make some changes. The first thing that had to be done was to save money and they did this by cut the pay role. Employees of many years were fired or took massive pay cuts. The employers only kept a select few workers that they had to have. Carmack 3 If one did not make the employer’s expectation, they were fired.   Ã‚  Ã‚  Ã‚  Ã‚  Monte Cristo had a list, a little roll call. And one by one he took them each for a ride Saying One and Two and Three and so on Till the names were all crossed off And he had cleabsed the world of a giving number Of betrayers who had personally wronged him. He was judge, jury, and executioner   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Sandburg 445) Finding a replacement was not difficult since everyone; men, women, children, and even grandparents, were looking for work. I’m not asking for social equality, †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ All I want is a job with a decent wage, To exist now and provide for old age. So kindhearted employers, my case is up to you, Give me something to do. (Proudberg 9-16) With few job openings and so many people looking fo... ...yday study the buffalo on the nickel, †¦. Study before the nickel, the dime is spent.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  (Sandburg 456) A lot of the people today have long forgotten the lessons that their parents had taught them. Today people really do not appreciate the value of a dollar, but they know all about â€Å"plastic,† or commonly known as credit cards. I think a small dose of depression would do people today some good but not too much, because I think we would have a lot more people killing themselves and others just because people have fewer moral values today. Carmack 8 Worked Cited Hawes, Joseph M. Children Between the Wars. Ed. Joseph M. Hawes., N. Ray Hiner. New York: Twayne Publishers, 1997. Proudbeg, Jim. â€Å"Poor Nut Ambitious (too Proud To Beg).† 21 Apr. 2000. http://www.mudcat.org/!!-song99.cfm?stuff=fall99+9902682. Sandburg, Carl. The Complete Poems of Carl Sandburg. New York: Harcourt Brace Jovanovich, 1970. Underwood, Mark. â€Å"Black Thursday.† The New York Times on the web. 1 May. 1996. 4 Apr. 2000 .

Pnl Explain

P&L Explain – Bonds and Swaps Tony Morris antony. [email  protected] com MICS – DKS Manila Contents 1. Bond Pricing – basic concepts 2. P&L sensitivities of a bond i. PV01 ii. CS01 iii. Theta iv. Carry 3. Extension to interest rate swaps 1. Bond Pricing – basic concepts Let’s say you have a 4 year 10% annual coupon bond, with a yield (‘yield to maturity’ or ‘yield to redemption’) of 12%. From this information, the price can be calculated as 93. 93%. The price is calculated by pricing each of the bond’s cash flows using the yield to maturity (YTM) as a discount rate.Why? Because the YTM is defined as the rate which, if used to discount the bond’s cash flows, gives its price. We could picture it like this: Bond Cash Flows on a Time Scale Each fixed coupon of 10% is discounted back to today by the yield to maturity of 12%: 93. 93% = 10 + 10 + 10 + 110 (1. 12)1 (1. 12)2 (1. 12)3 (1. 12)4 All we are doing is obse rving the yield in the market and solving for the price. Alternatively, we could work out the yield if we have the price from the market.Bond price calculators work by iteratively solving for the yield to maturity. For a bond trading at par, the yield to maturity and coupon will be the same, e. g. a four year bond with a fixed coupon of 10% and a yield of 10% would be trading at 100%. Note that bond prices go down as yields go up and bond prices go up as yields go down. This inverse relationship between bond prices and yields is fairly intuitive. For our par bond above, if four year market yields fall to 9% investors will be willing to pay more than par to buy the above market coupons of 10%. This will force its price up until it, too, yields 9%.If yields rise to, say, 11% investors will only be willing to pay less than par for the bond because its coupon is below the market. For a detailed example of the bond pricing process, see Appendix 3. For now, note that the dirty price of a bond is the sum of the present values of the cash flows in the bond. The price quoted in the market, the so-called â€Å"clean† price or market price, is in fact not the present value of anything. It is only an accountants’ convention. The market price, or clean price, is the present value less accrued interest according to the market convention. . P&L sensitivities of a bond As we saw above, the price of a bond can be determined if we know its cash flows and the discount rate (i. e. YTM) at which to present value them. The yield curve from which are derived the discount factors for a bond can itself be considered as the sum of two curves: 1. the â€Å"underlying† yield curve (normally Libor), and 2. the â€Å"credit† curve i. e. the spread over the underlying curve The sensitivity of the bond price to a change in these two curves is called: i. PV01, and ii. CS01 respectively. Related essay: â€Å"Support Positive Risk Taking For Individuals†In terms of the example above, the discount rate of 12% might be broken down into, say, a Libor rate of 7% together with a credit spread of 5%. (Note, in the following, it is important not to confuse the discount rate, which is an annualised yield, and the discount factor, which is the result of compounding the discount rate over the maturity in question. ) In addition to the sensitivities described above, we can also consider the impact on the price of the bond of a one day reduction in maturity. Such a reduction affects the price for two reasons: ) assuming the yield curve isn’t flat, the discount rates will alter because, in general, the discount rate for time â€Å"t† is not the same as that for time â€Å"t-1† b) since one day has elapsed, whatever the discount rate, we will compound it based on a time interval that is shorter by one day The names given to these two sensitivities are, r espectively: iii. Theta, and iv. Carry Note that, of these four sensitivities, only the first two, i. e. PV01 and CS01, are â€Å"market sensitivities† in the sense that they correspond to sensitivities to changes in market parameters.Theta and Carry are independent of any change in the market and reflect different aspects of the sensitivity to the passage of time. i)PV01 Definition The PV01 of a bond is defined as the present value impact of a 1 basis point (0. 01%) increase (or â€Å"bump†) in the yield curve. In the derivation below, we will refer to a generic â€Å"discount curve†. As noted earlier, this discount curve, from which are derived the discount factors for the bond pricing calculation, can itself be considered as the sum of two curves: the â€Å"underlying† yield curve (normally Libor), and a credit curve (reflecting the risk over and above the interbank risk ncorporated in the Libor curve). The PV01 calculates the impact on the price of bu mping the underlying yield curve. Calculation For simplicity, consider the case of a zero coupon bond i. e. where there is only one cash flow, equal to the face value, and occurring at maturity in n years. Note, though, that the principles of the following analysis will equally apply to a coupon paying bond. We start by defining: P = price or present value today R(t) = discount rate, today, for maturity t FV = face value of the bond Then, from the above, we know:P = FV/(1+r(t))^n Now consider the impact a 1bp bump to this curve. The discount rate becomes: R(t) = R(t) + 0. 0001 The new price of the bond, Pb(t), will be: Pb = FV/(1+[r(t)+. 0001])^n Therefore, the sensitivity of this bond to a 1bp increase to the discount curve will be: Pb – P = FV/(1+[r(t)+. 0001])^n – FV/(1+r(t))^n Eqn. 1 The first term is always smaller than the second term, therefore: * if we hold the bond (long posn), the PV01 is negative * if we have short sold the bond (short posn), the PV01 is pos itive We can also see that: the higher the yield (discount rate), the smaller the PV01. This is because a move in the discount rate from, for example, 8. 00% to 8. 01% represents a smaller relative change than from 3. 00% to 3. 01%. In other words, the higher the yield, the less sensitive is the bond price to an absolute change in the yield * the longer the maturity, the bigger the PV01. This is more obvious – the longer the maturity, the bigger the compounding factor that is applied to the changed discount rate, therefore the bigger the impact it will have.To extend this method to a coupon paying bond, we simply note that any bond can be considered as a series of individual cash flows. The PV01 of each cash flow is calculated as above, by bumping the underlying yield curve at the corresponding maturity. In practice, where a portfolio contains many bonds, it would not be practical, nor provide useful information, to have a PV01 for every single cash flow. Therefore the cash f lows across all the positions are bucketed into different maturities. The PV01 is calculated on a bucketed basis i. e. by calculating the impact of a 1bp bump to the yield curve on each bucket individually.This is an approximation but enables the trader to manage his risk position by having a feel for his overall exposure at each of a series of maturities. Typical bucketing might be: o/n, 1wk, 1m, 2m, 3m, 6m, 9m, 1y, 2y, 3y, 5y, 10y, 15y, 20y, 30y. Worked example: Assume we hold $10m notional of a zero-coupon bond maturing in 7 years and the yield to maturity is 8%. Note that, for a zero coupon bond, the YTM is, by definition, the same as the discount rate to be applied to the (bullet) payment at maturity. We have: Price, P = $10m / (1. 08)^7 = $5. 834mBumping the curve by 1bp, the â€Å"bumped price† becomes: Pb = $10m / (1. 0801)^7 = $5. 831m Therefore, the PV01 is: Pb – P = $5. 831m – $5. 835m = -$0. 004m (or -$4k) Meaning In the example above, we have calcul ated the PV01 of the bond to be -$4k. This means that, if the underlying yield curve were to increase from its current level of 8% to 8. 01%, the position would reduce in value by $4k. If we assume the rate of change in value of the bond with respect to the yield is constant, then we can calculate the impact of, for example, a 5bp bump to the yield curve to be 5 x -$4k = -$20k.Note, this is only an approximation; if we were to graph the bond price against its yield, we wouldn’t see a straight line but a curve. This non-linear effect is called convexity. In practice, while for small changes in the yield the approximation is valid, for bigger changes, convexity cannot be ignored. For example, if the yield were to increase to 9%, the impact on the price would be -$365k, not -(8%-9%)x$4k = -$400k. Use The concept of PV01 is of vital day to day importance to the trader. In practice, he manages his trading portfolio by monitoring the bucketed yield curve exposure as expressed by PV 01.Where he feels the PV01 is too large, he will perform a transaction designed to either flatten or reduce the risk. Similarly, when he has a view as to future yield curve movements, he will position his PV01 exposure to take advantage of them. In this case, he is taking a trading position. ii)CS01 The basis of the CS01 calculation is identical to that of the PV01, only this time we bump the credit spread rather than the underlying yield curve. The above example was based on a generic discount rate. In practice, for any bond other than a risk free one, this rate will be combination of the yield curve together with the credit curve.At first glance therefore, we would expect that, whether we bump the yield curve or the credit spread by 1bp, the impact on the price should be similar, and described by Eqn. 1 above. What we can also say is that, bumping the yield curve, the overall discount rate will increase and therefore, as for PV01: * if we hold the bond (long posn), the CS01 is neg ative * if we have short sold the bond (short posn), the CS01 is positive From the same considerations as for PV01, we can see that: * the higher the credit spread, the smaller the CS01 * the longer the maturity, the bigger the CS01In practice, when we look at multiple cash flows, the impact of a 1bp bump in the yield curve is not identical to a 1bp bump in the credit spread. This is because, inter alia: * the curves are not the same shape and therefore interpolations will differ * bumping the credit spread affects default probability assumptions that will, in turn, impact the bond price In general though, PV01 and CS01 for a fixed coupon bond will be similar. The exception is where the bond pays a floating rate coupon. In this case, the sensitivity to yield curve changes is close to zero so, although the PV01 will be very small, the CS01 will be â€Å"normal†.Worked example: A worked example would follow the same steps as for PV01 above, only this time we would bump the cred it spread by 1bp rather than the underlying yield curve. Theta and Carry We now look at the two sensitivities arising from the passage of time (â€Å"1 day decay†, to use option pricing terminology). First, let’s calculate what the total impact on the value of a position would be if the only change were that one day had passed. In particular, we assume that the yield and credit curves are unchanged. Again, for simplicity, consider the case of a zero coupon bond i. . where there is only one cash flow, equal to the face value, and occurring at maturity in n years. Again, we note that the principles of the following analysis will equally apply to a coupon paying bond. Following the previous notation, the value (or price) today will be: P(today) = FV/(1+r(t))^n The value tomorrow will be: P(tomorrow) = FV/(1+r(t-1))^(n-1/365)Eqn. 2 There are two differences between the formula for the value today and that for tomorrow. Firstly, the discount rate has moved from r(t) to r(t- 1). Here, r(t-1) is the discount rate for maturity (t-1) today.We have assumed that the discount curve does not move day on day, therefore the rate at which the cash flow will be discounted tomorrow is the rate corresponding to a one day shorter maturity, today. Secondly, the period over which we discount the cash flows has reduced by one day, from n to n-1/365 (we divide by 365 because n is specified in years). Theta and Carry capture these two factors. P(tomorrow) – P(today) gives the full impact on the price due to the passing of one day. This impact can be approximated by breaking down the above formula into its two component parts i. e. he change in discount rate and the change in maturity, as explained below. iii)Theta As before, we define: P = price or present value today r(t) = discount rate, today, for maturity t FV = face value of the bond In addition, we define: r(t-1) = discount rate, today, for maturity t-1 (e. g. for a bond with 240 days to maturity, if the 240 day discount rate today is 8. 00% and the 239 day discount rate today is 7. 96% then: r(t) = 8. 00% and r(t-1) = 7. 96%) We now define Theta as: FV/(1+r(t-1))^n – FV/(1+r(t))^n We can see that, compared to the formula for the full price impact above (Eqn. ), this sensitivity reflects the change in the discount rate but ignores the reduction by 1 day of the maturity. In other words, Theta represents the price impact due purely to the change in discount rate resulting from a 1 day shorter maturity but ignores the impact on the compounding factor of the discount rate resulting from the shorter maturity. Note that the sign of Theta, in contrast to PV01 and CS01, can be both positive and negative. This is because r(t-1) can be higher or lower than r(t), depending on the shape of the yield curve.That said, in practice, given that yield curves are normally upward sloping, we would expect r(t) to be higher than r(t-1). Therefore Theta will normally be positive. In the same way, if th e yield curve is flat, then Theta will be zero. iv)Carry Using the standard notation, we define Carry as: FV/(1+r(t))^(n-1) – FV/(1+r(t))^n Comparing to the formula for the full price impact above (Eqn. 2), we see that this sensitivity reflects the change in maturity on the compounding factor to be applied to the discount rate but ignores the impact on the discount rate itself of moving one day down the curve.In other words, Carry represents the price impact due purely to the change in discount factor resulting from a 1 day shorter compounding period but ignores the impact on the discount rate resulting from the shorter maturity. Where discount rates are positive (r(t) > 0), Carry will always be positive since the first term will be larger than the second. Using the Taylor expansion, we can obtain a simplified approximate value for Carry. Remembering that: 1/(1+x)^n = 1 – n. x + (1/2). n. (n-1). x^2 – †¦ we have: Carry = FV. 1-(n-1/365). r(t)) – FV. (1-n. r(t)) = FV. r(t). 1/365 Note that r(t). 1/365 would represent one day’s â€Å"interest† calculated on an accruals basis since, in the case, the yield equals the coupon rate. (Note, where a position is accounted for on an accruals basis, and therefore valued at par, the yield will always equal the coupon. ) In other words, this definition ties in to the intuitive idea of carry that we have from, say, a deposit where the carry would be equal to one day’s interest, based on its coupon.We can also see that Carry is directly proportional to the yield. We have now seen that, between them, Theta and Carry attempt to capture the two components affecting the price move arising from the passing of 1 day, all other factors being kept constant. There will be certain â€Å"cross† effects of the two that will not be captured when performing this decomposition. In other words, Theta + Carry will not exactly equal the full impact (as per Eqn. 2). The difference, ho wever, will not normally be material.In general, for a long bond position, both Theta and Carry will be positive as, with the passing of one day, not only will the annualised discount rate be less (reflecting the lower yield normally required for shorter dated instruments) but the compounding factor will be smaller (reflecting the shorter maturity). Worked example: Assume we hold $10m notional of a zero-coupon bond maturing in 240 days and the yield to maturity today is 8%. Also, the yield today for the 239 day maturity is 7. 96%. Theta = $10m/(1. 0796)^(240/365) – $10m/(1. 08)^(240/365) = $23,159 Carry = $10m/(1. 8)^(239/365) – $10m/(1. 08)^(240/365) $20,047 Theta + Carry = $43,205 To compare, the full price impact of a 1 day â€Å"decay† is: $10m/(1. 076)^(239/365) – $10m/(1. 08)^(240/365) = $43,113 Summary We have now analysed the key sensitivities that explain the 1 day move in a bond’s mark to market value. To summarise some of the main featur es; for a long bond position: PV01 / CS01: * negative * for a fixed coupon or zero coupon bond, PV01 and CS01 will be similar * the higher the yield/credit spread, the smaller the PV01/CS01 * the longer the maturity, the bigger the PV01/CS01 for a floating rate coupon (with a Libor benchmark), PV01 will be very small but the CS01 will be â€Å"normal† Theta * positive * the flatter the curve, the smaller the Theta Carry * positive * proportional to the yield 3. Extension to interest rate swaps In essence, all the above applies equally to interest rate swaps (IRSs) when calculating/explaining daily P&L. We start by noting that an IRS is simply the exchange of two cash flows, one fixed and one floating. Extending the analysis we made for bonds, we can say: a) The PV01 of the floating rate leg will be close to zero. This is as noted for a floating rate bond.In both cases, as the yield curve changes so do the expected future cash flows but, at the same time, so will the discount rates at which they are PV’d. The two effects will broadly cancel out. (The PV01 will not be exactly zero because, once the Libor fixing occurs, the next cash flow becomes fixed and therefore effectively becomes a zero coupon bond, on which there will be PV01. ) b) The fixed leg is similar to the fixed coupon stream on a bond and can be considered as a series of zero coupon bonds. Therefore the exact same analysis as applied to bonds above will apply to the fixed leg. An IRS that ays floating and receives fixed will have a PV01 sensitivity similar to that of a long bond position. c) IRSs are normally interbank trades where it is assumed that there is no credit risk over and above Libor. Therefore, the CS01 will be zero. d) Theta and Carry may be either positive or negative. Appendix 1 : Date Conventions There are several methods for computing the interest payable in a period and the accrued interest for a period. A particular method applied to a transaction can affect the yie ld of that transaction and also the payment for a transaction. Counting the Number of DaysThe conventions used to determine the interest payments depend on two factors: 1) The number of days in a period and 2) The number of days in a year. The conventions are: 0 Actual/360 1 Actual/365 : sometimes referred as Actual/365F (seldom used now) 2 Actual/Actual 3 30/360 European: sometimes referred to as ISMA method (30E/360) 4 30/360 US (30U/360) The first three methods (Actual/360, Actual/365 and Actual/Actual) calculate the number of days in a period by counting the actual number of days. For each method the number of days in a year is different. Actual/365 and Actual/Actual are similar except: 1.Periods which include February 29th (leap year) count the number of days in a year as 365 under Act/365 and 366 under Act/Act; 2. Semi-annual periods are assumed to have 182. 5 days under Act/365 and however many actual days under Act/Act. Eurobond markets use the 30E/360 basis. This calculatio n assumes every month has 30 days. This means that the 31st of a month is always counted as if it were the 30th of the month. For 30E/360 basis, February is also assumed to have 30 days. If the beginning or end of a period falls on a weekend the coupon is not adjusted to a good business day.This means that there are always exactly 360 days in a year for all coupons. For example a coupon from 08-November-1997 to 08-November-1998 of 5% is a coupon of 5%, even though 08-November-1998 is a Sunday. There is no adjustment to the actual coupon payment. The various European government bond markets are described below: Country| Accrual| Coupon Frequency| Austria| Act/Act| Annual| Belgium| Act/Act| Annual| Denmark| Act/Act| Annual| Finland| Act/Act| Annual| France| Act/Act| Annual| Germany| Act/Act| Annual| Ireland| Act/ActAct/Act (Earlier Issues)| AnnualSemi-Annual| Italy| Act/Act| Semi-Annual| Luxembourg| Act/Act| Annual|Netherlands| Act/Act| Annual| Norway| Act/Act| Annual or Semi-Annual| Portugal| Act/Act| Annual| Spain| Act/Act| Annual| Sweden| Act/Act| Annual| Switzerland| Act/Act| Annual| United Kingdom| Act/Act | Semi-Annual| Appendix 2 : Calculating Accrued Interest Even though Eurobond coupons are not adjusted for weekends and holidays, the accrual of a coupon for any part of the year has to use the correct number of days. The difference between European and US 30/360 method is how the end of the month is treated. For US basis the 31st of a month is treated as the 1st of the next month, unless the period is from 30th or 31st of the previous month.In this case the period is counted as number of months: | 30/360 European| 30/360 US| Beginning DateEnding Date| M1/D1/ Y1M2/D2/Y 2| M1/D1/Y1M2/D2/Y 2| If D1 = 31| D1 = 30| D1 = 30| If D2 = 31| D2 = 30| If D1 = 31 or 30Then: D2 = 30Else: D2 = 31| The difference occurs when the accrual period starts and ends at the end or beginning of a calendar month: European and US 30/360 Examples Start| End| European| US| Actual| 3 1-Jul-01| 31-Oct-01| 90| 90| 92| 30-Jul-01| 30-Oct-01| 90| 90| 92| 30-Jul-01| 01-Nov-01| 91| 91| 94| 29-Jul-01| 31-Oct-01| 91| 92| 94| 01-Aug-01| 31-Oct-01| 89| 90| 91|Euro money markets: 0 Day count basis: actual/360 1 Settlement basis: spot (two day) standard 2 Fixing period for derivatives contracts: two day rate fixing convention Euro FX markets 3 Settlement timing: spot convention, with interest accrual beginning on the second day after the deal has been struck 4 Quotation: ‘Certain for uncertain’ (ie 1 Euro = x foreign currency units) U. S. Conventions Product| Day Count Convention| USD LIBOR| Act/360| USD Swap Fixed Rate in U. S. | Act/Act s. a. | USD Swap Fixed Rate in London| Act/360 p. a. | T-Bills| Act/360 discount rate| Government Bonds| Act/Act s. a. |Agency and Corporate Bonds| 30/360 s. a. | Appendix 3 : Detailed worked example of bond price calculation We can check the pricing of bonds in a more complicated example by using the following German governmen t bond (or Bund) : German Government Bund (in Euros) Coupon:| 5. 00%| Maturity:| 04-Feb-06| Price (Clean):| 102. 2651%| Yield:| 4. 43%| We are pricing this bond on 27/July 2001. It matures on 4 Feb 2006 and has a coupon of 5%. The table below shows that the bond price (the ‘dirty price’ or invoice price) is simply the sum of the present value of all of the coupons discounted at the yield to maturity.Pricing the German Euro Denominated Bund Dates| AA Days| Periods| Cash Flow| Cashflow PV| 04-Feb-01| | | | | 27-Jul-01| | | | 104. 6350%| 04-Feb-02| 192| 0. 5260| 5. 00%| 4. 8873%| 04-Feb-03| 557| 1. 5260| 5. 00%| 4. 6800%| 04-Feb-04| 922| 2. 5260| 5. 00%| 4. 4814%| 04-Feb-05| 1288| 3. 5260| 5. 00%| 4. 2913%| 04-Feb-06| 1653| 4. 5260| 105. 00%| 86. 2950%| The market convention uses the yield to maturity as the discount rate, and discounts each cash flow back over the number of periods as calculated using the accrued interest day-count convention.In the case of Bunds, the day -count convention is the Act/Act convention. Appendix 1 contains more details of date conventions – it is recommended that you read this at the end of the module. The part of a year between the settlement date (27 July 2001) and the next coupon (4 February 2002) is: Day Count 192/365 (ie Actual days/Actual days) = 0. 5260 The price of the first coupon can therefore be calculated in the following way: PV of First Coupon = 4. 8873% All of the other cash flow present values are calculated in the same manner. Adding them up gives us the price of the bond.Accrued interest is calculated from 04 February 2001 to 27 July 2001 (173 days) : Accrued Interest Accrued = 5% x 0. 47397 = 2. 3699% There is more detail on Accrued interest in Appendix 2. It is recommended that you read it at the end of this module. Notice that the quoted price of the bond (the ‘clean price’) is 102. 2651% not 104. 6350% (which is the ‘dirty price’ or invoice price – ie the pric e actually paid for the bond). The dirty price is the sum of the present values of the cash flows in the bond. The price quoted in the market, the so-called â€Å"clean† price or market price, is in fact not the present value of anything.It is only an accountants’ convention. The market price, or clean price, is the present value less accrued interest according to the market convention. Practitioners find it easier to quote the clean price because it abstracts from the changing daily accrued interest (i. e. it avoids a â€Å"saw-toothed† price profile). This publication is for internal use only by Deutsche Bank Global Markets employees. The material (including formulae and spreadsheets) is provided for education purposes only and should under no circumstances be used for client pricing.Examples, case studies, exercises and solutions may use simplifying assumptions that do not apply in practice, and may differ from Deutsche Bank proprietary models actually used. The publication is provided to you solely for information purposes and is not intended as an offer or solicitation for the purchase or sale of any financial instrument or product. The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete and its accuracy cannot be guaranteed.