How does a fi rms tax rate affect its cost of capital What is the Essay

How does a fi rms tax rate affect its cost of capital What is the effect of the flotation - Essay Example The cost of capital can be calculated using valuation models such as CAPM or Arbitrage Pricing Model. Like all affairs of a business, the cost of capital is also affected by numerous factors, some within and some beyond the organization’s control. One of the factors which greatly affects the cost of capital and is beyond the control of the organization is the tax rate. Tax rate refers to the percentage of earning/spending which is contributed to the government. There are several types of taxes, applicable on different economic units, such as the income tax applicable on individuals, corporate tax applicable on corporations, sales tax applicable to sellers etc. Of primary concern in an organization are the corporate tax rate and the capital gains tax. The corporate tax rate is used to calculate the cost of debt in the weighted average cost of capital. The higher the tax rate; the lower will be the cost of capital since the interest payments are tax deductible. The capital gains tax, on the other hand, is applicable to owners of capital in the organizations, i.e. the shareholde rs. An appreciation in the ownership of share prices requires the shareholders to pay a specific percentage (varies from country to country) to the government. In such a case, the higher the capital gains tax, the lower will be the motivation of shareholders to hold their stocks. The tax rate structure applicable in a country determines the capital structure of a firm. If the corporate tax rate is higher than the capital gains tax rate then the structure will comprise of more debt and less shares and vice versa. In case an organization does not directly take a loan from a bank or financial institution, it may issue securities. Securities refer to any instruments (negotiable or non-negotiable) which allows an organization to raise funds, while floatation costs refer to the expenses incurred by the organization to issue new securities. These include underwriters’

Justifiable Torture Essay Example for Free

Justifiable Torture Essay Torture is the act of inflicting physical and psychological pain. The three main purposes that Democratic governments use torture are to intimidate, to coerce false confessions, and to gather accurate security information. Torture is not only a method that has been used in countries notorious for corrupt government dictatorships such as Russia, Japan, and Germany but has also been prevalent in democracies. The use of torture in democracy is a shame, not only do secret CIA kidnappings, and the indefinite detention at Guantanamo Bay go against the basic elements of a democracy, it has also been proven to be ineffective or less effective than traditional intelligence gathering, and it creates a slippery slope effect. The four basic principles of a democracy are having a political system where people can choose and replace officials through free and fair elections, the active participation of the people as citizens, in politics and civil life, the protection of the human rights of all citizens, and a rule of law where all laws and procedures apply equally to all citizens. Physical torture techniques (strikes to the body and using everyday instruments to inflict physical torture) were first recorded in â€Å"military punishments, especially among British lists of punishments; in the context of American slavery; in penal institutions; or during policing and military operations in French and British colonies† (Rejali 4). France, England, and the United States are the main democracies of modern history prior to World War II. The use of torture is highly used in Democratic governments; torture will be examined in a democratic system. Torture is a very right and left handed issue; those on the right side argue that it goes against the very values that Democratic Governments try to instill in their citizens such as equality, human rights, and liberties. Those on the left side like to refer to the ticking bomb scenario and point out terrorist acts such as 9/11 and Pearl Harbor. Critics on the left side argue that Pearl Harbor was due to the fact that the United States did not have a strong intelligence agency Congressional probers basically blamed the disaster on a lack of imagination and watchfulness on the part of the American commanders on the scene, combined with poor coordination and exchange of intelligence in Washington†¦ In the view of President Harry S. Truman, the Japanese attack might have been prevented if there had been something like coordination of information in the government. President Truman observed in his memoirs: In those days the military did not know everything the State Department knew, and the diplomats did not have access to all the Army and Navy knew. (Intelligence throughout history). Torture is a method that is commonly used by the CIA, â€Å"After the attacks of 9/11, former President Bush authorized the creation of extralegal detention camps where Central Intelligence Agency operatives were told to extract information from prisoners who were captured and held in secret† (On torture and American Values). Torture is highly used and many believe that torture is an effective method of gathering intelligence; however this does not address whether it is justified in a democratic system. Torture is actually not as effective as many people think and it is never justifiable due to the fact that, â€Å"the United States has historically incorporated these international definitions into its military manuals. The 1992 U.S. Army Field Manual, for example, instructs soldiers that both the Geneva Conventions and U.S. policy prohibit acts of violence or intimidation, including physical or mental torture, threats, or insults as a means of interrogation† (Torture). Torture was first used in Roman times, judges used this technique to unearth crimes â€Å"In 1612, the Italian jurist Sebastian Guazzini likewise defined torture â€Å"as the distress of body devised for extracting truth. It was invented by the Civil Law, as a mode of discovering truth, for the sake of the public welfare, to the end that crimes might not remain unpunished† (Rejali 36). Examining past torture accounts one comes to the chilling conclusion that not all torture victims were actually terrorists and even though some may be criminals or terrorists they are only suspects. It is hard to look at torture methods, accounts of victims, the pictures that arose from Abu Ghraib, or Guantanamo Bay detainees and be able to say that the methods used on these people were justifiable and morally ok. The injustice is not only being applied to democratic principles but to moral principles also. Abu Ghraib is a U.S. detention facility located in Iraq, it is famous for the pictures taken by U.S. military guards which showed graphic proof of abuse to its prisoners Major General Antonito M. Taguba wrote a 53 page report on the incident; the report listed â€Å"Breaking chemical lights and pouring the phosphoric liquid on detainees; pouring cold water on naked detainees; beating detainees with a broom handle and a chair; threatening male detainees with rape; allowing a military police guard to stitch the wound of a detainee who was injured after being slammed against the wall in his cell; sodomizing a detainee with a chemical light and perhaps a broom stick, and using military working dogs to frighten and intimidate detainees with threats of attack, and in one instance actually biting a detainee† Such abuses of power are completely impermissible; the graphic pictures taken by U. S. military police guards included pictures of naked men being humiliated. In Islamic law homosexual acts are condemned and it is embarrassing for men to be naked in front of each other. One picture shows a female soldier with a cigarette in her mouth giving the thumbs up as a naked detainee masturbates. Another picture shows two soldiers standing behind seven naked Iraqis that have been piled on top of each other to make a pyramid. The founding fathers of the United States created a constitution that demanded equality for all men, as the Supreme Court famously said in 1866 â€Å"The Constitution of the United States is a law for rulers and people, equally in war and in peace, and covers with the shield of its protection all classes of men, at all times, and under all circumstances.† It is important that the United States and all democracies oblige to the laws set by their founders. One of the most common beliefs about torture is that it is effective. In reality torture is not as effective as people perceive it to be â€Å"accuracy in torture is exceedingly poor, in some cases less accurate than flipping a coin, the key successes in gathering information in known cases come from other methods, most notably cultivating public cooperation and informants† (Rejali 24). Senator John McCain said in a speech on the senate floor The trail to bin Laden did not begin with a disclosure from Khalid Sheikh Mohammed, who was water boarded 183 times†¦. We did not learn Abu Ahmed’s real name or alias as a result of waterboarding or any ‘enhanced interrogation technique’ used on a detainee in U.S. custody. None of the three detainees who were water boarded provided Abu Ahmed’s real name, his whereabouts, or an accurate description of his role in Al-Qaeda. In fact, not only did the use of ‘enhanced interrogation techniques’ on Khalid Sheikh Mohammed not provide us with key leads on bin Laden’s courier, Abu Ahmed; it actually produced false and misleading information†¦Abu Ahmed al-Kuwaiti’s real role in Al-Qaeda and his true relationship to Osama bin Laden — was obtained through standard, non-coercive means, not through any ‘enhanced interrogation technique.’ â€Å"In short, it was not torture or cruel, inhuman, and degrading treatment of detainees that got us the major leads that ultimately enabled our intelligence community to find Osama bin Laden (Knapp) Khalid Sheikh Mohammad is the self-described mastermind behind the 9/11 attacks and was captured in 2003 he was water boarded 183 times and confessed to masterminding the September 11 attacks, the Richard Reid shoe bombing attempt to blow up an airliner over the Atlantic Ocean, the Bali nightclub bombing in Indonesia, the 1993 World Trade Center bombing and various other attacks. Mohammad told the International Committee of the Red Cross that â€Å"I gave a lot of false information in order to satisfy what I believed the interrogators wished to hear.† (Outside the beltway) Not only has torture been proven to go against basic moral and democratic principles it is also proving to be ineffective. Ali Soufan an FBI supervisory special agent from 1997-2005 stated â€Å"Almost all the agency officials I worked with on these issues were good people who felt as I did about the use of enhanced techniques: it is un-American, ineffective and harmful to our national security† (Ali Soufan). The United States is known for urging nations to obey the international treaties and protect human rights and liberties. It is important that our government oblige to these treaties that they so consistently advocate. A former republican presidential nominee and an ex FBI agent both agree that torture is not necessary to gather intelligence. Traditional methods such as informants and regular interrogations have been proven to be more effective then torture. Using torture in a democratic system creates three slippery slopes â€Å"Torture increasingly takes in more suspects than those approved, leads to harsher methods than are authorized, and leads to greater bureaucratic fragmentation† (Darius Rejali 24). What Rejali is talking about, is that every person that has been tortured has not been proven to be a confirmed terrorist and is only a suspected one. Such is the case of Khalid El-Masri, a car salesman from Germany whose name resembles Khalid Al-Masri who is a confirmed terrorist. El-Masri was kidnapped by the CIA, taken to a ‘black site’ in Afghanistan, and was allegedly tortured. He was then released after four months, when it had become apparent he was not a terrorist. He had been confused with Khalid Al- Masri; the confusion was due to the fact that the names are spelt the same way in Arabic script. Torture also leads to greater torture because if a person is being tortured and will not confess to a crime that he is suspected of, what’s to say that the person administering the torture will not continue to apply harsher methods. He has already crossed the set boundaries presented by peace treaties and laws. Once a person has crossed the line and has committed to the act of torture what will stop him from going down the slope until the confession is given? The last slope torture leads to is bureaucratic fragmentation, torture is kept secretive and when it is not law makers push the boundaries to make it acceptable during the Bush administration laws were bent and given new definitions, lawyers and attorneys worked together to redefine torture, the â€Å"Justice Department even declared that those acts did not violate the lower standard of â€Å"cruel, inhuman or degrading treatment† (On Torture and American Values). Americans never authorized secret kidnappings, or the dehumanization of men, or the indefinite imprisonment at jails such as Guantanamo Bay or Abu Ghraib. Such secretive acts only create a wall between American citizens and its Government. Along with all the negatives of torture many also believe it to have positive effects also. The ticking bomb scenario is when a terrorist is believed to know the location of a time sensitive bomb that will be set off in a matter of time. The question that arises from this scenario is, is torture morally acceptable under special circumstances? Many believe yes because obviously they care about national security. Patrick J. Buchannan states â€Å"The morality of any act depends not only on its character, but on the circumstances and motive. Stealing is wrong and illegal, but stealing food for ones starving family is a moral act. Even killing is not always wrong. If a U.S. soldier had shot Mohammed to save 50 hostages, he would be an American hero.†(Buchannan) Buchannan is referring to Khalid Sheikh Mohammad and discussing how he is an example of a â€Å"special circumstance† Another point is that under President Bush’s administration enhanced interrogation techniqu es did not arise to the level of torture â€Å"The former president firmly believes that enhanced interrogation techniques were necessary to obtain much-needed intelligence information in the war on terror† (Torture). Many believe torture is crucial in gathering information that could lead to the prevention of terrorist acts. An Associate Press ipsos group interviewed 1000 adults; â€Å"the† poll results indicate that support for justifiable torture is highest in southern Korea and the United States. There is also strong support in the United Kingdom and France with borderline results in Germany, Canada, and Mexico. Italians and Spaniards are opposed† (Peterson). Since the terrorist attacks took place in September 11, 2001 torture has been a method more commonly used. Many Americans accepted this notion by simply ignoring it, growing a stronger sense of nationalism, or believing that the criminals needed to be punished as shown in the poll that was taken many people from different countries supported torture. The ticking bomb scenario is a fantasized situation that those who support torture like to bring up. Information that comes from enhanced interrogation techniques as opposed to traditional methods has proved to be less accurate. Buchannan Makes a valid point on torture being acceptable because of the morality of it that torture is being inflicted to gather information that could save the lives of people, however as stated earlier torture techniques are not needed to gather the information, traditional methods can be used and are more effective. Although after 9/11 many Americans supported torture it still conflicted with our values. Torture has proven to go against basic moral and democratic principles. It has also proven to be less effective than traditional methods of interrogation or intelligence gathering. And it has not only proved to create one slippery slope, but it has created three. The case of Abu Ghraib and Khalid El-Masri proved the slippery slope theory because humans were sodomized with a broomstick; men were humiliated, forced to touch themselves in front of other naked men and were dehumanized. El Masri was an innocent German citizen and was held in a prison somewhere in Afghanistan and was allegedly tortured for nearly five months. The example of Khalid Sheikh Mohammad proved that torture is less effective than traditional methods of interrogation because as said by John McCain it led to false information and the accurate information that led to the capture of Bin Laden was obtained through standard non coercive means. Lastly, torture completely goes against the constitution and even though law makers have bent the law and redefined torture so it does meet the legal standards of torture it is still unethical because as stated earlier â€Å"The Constitution of the United States is a law for rulers and people, equally in war and in peace, and covers with shield of its protection all classes of men, at all times, and under all circumstances.† Even in times of national crises we must still follow the constitution which was meant to guide us through hard times with our principles secure and values intact. Works Cited Buchanan, Patrick J. Torture Is Moral When Inflicted for a Greater Good. Torture. Ed. Debra A. Miller. Detroit: Greenhaven Press, 2009. Current Controversies. Rpt. from The Case for Torture. World Net Daily. 2003. Gale Opposing Viewpoints In Context. Web 22 Nov 2012. Hersh, Seymour. â€Å"Torture at Abu Ghraib.† The New Yorker.com. The New Yorker, 10 May. 2004. Web. 22 Nov 2012 Knapp, Alex â€Å"An FBI Interrogator on the Effectiveness of Torture† Outside the Beltway.com. Outside the Beltway, 10 Sept. 2009. Web 23 Nov 2012 â€Å"On Torture and American Values† The New York Times.com. New York times, 7 Oct. 2007. Web 23 Nov 2012 Petersen, Kim. Torture Is Morally Reprehensible. Torture. Ed. Debra A. Miller. Detroit: Greenhaven Press, 2009. Current Controversies. Rpt. from Elementary Morality and Torture. Dissident Voice. 2005. Gale Opposing Viewpoints In Context. Web 23 Nov 2012. Rejali, Darius. Torture and Democracy. Princeton: Princeton University Press, 2007. Print. Soufan, Ali. â€Å"My Tortured Decision.† The New York Times.com. New York times, 22 April 2009. Web 22 Nov 2012 Torture. Current Issues: Macmillan Social Science Library. Detroit: Gale, 2010. Gale Opposing Viewpoints In Context. Web 24 Nov 2012. United States. CIA â€Å"Intelligence Throughout History: The Impact of Pearl Harbor.† US CIA , Dec. 2010. Web 26 Nov 2012

Chaucer: Satire And Humor Essay -- English Literature:

Chaucer: Satire And Humor Until Geoffrey Chaucer wrote the Canterbury Tales, he was primarily know for being the writer of love poems, such as The Parliament of Fowls, narratives of doomed passion, and stories of women wronged by their lovers. These works are nothing short of being breath taking, but they do not posses the raw power that the Canterbury Tales do. This unfinished poem, which is about 17,000 lines, is one of the most brilliant works in all of literature. The poem introduces a group of pilgrims journeying from London to the shrine of St. Thomas a Becket at Canterbury. Together, the pilgrims represent a large section of 14th-century English life. To help pass the time of the journey, the pilgrims decide to tell stories. These tales include a wide variety of medieval genres, from humorous fables to religious lectures. They vividly describe medieval attitudes and customs in such areas as love, marriage, and religion. Chaucer was a master storyteller, and his wit his shown throughout his work by the use of humor and satire, and it is most present in The Prologue to the Canterbury Tales, The Pardoner’s Tale, and The Wife of Bath’s Tale. Many people that the most popular par to of the Canterbury Tales it The Prologue to the Canterbury Tales, which has long been admired for the lively, individualized portraits it offers. More recent criticism has reacted against this approach, claiming that the portraits are indicative of social humor and satire, â€Å"estates satire,† and insisting that they should not be read as individualized character portraits like those in a novel (Gittes 15). It is the Prologue to the Canterbury Tales that serves to establish firmly the framework for the entire story- collecti... ...o her husband, and this defeats the whole purpose of the Wife of Bath’s entire argument. For almost a seven hundred year old book, the Canterbury Tales still is a very irresistible collection of analyses of human life. Not much has changed in seven hundred years. Medieval traits that Chaucer described in his tales such as corruption and greed still play a major part in our society today. Also, issues such as woman’s rights that were debated back then are still heavily debated today. No other writer has been able to duplicate the way Chaucer has analyzed and described human life, and no one has even come close to doing it in such a humorous and satirical way. The Canterbury Tales brought Geoffrey Chaucer too his full artistic power, and it will forever remain as one of the most brilliant and vivid piece of literature ever written in the English language.

Affects of Osteoporosis, Osteoarthritis, and Muscular Distrophy Essay

Osteoporosis and Osteoarthritis are both diseases of the bone. Osteoporosis actually means â€Å"porous bones† and is a problem with bones where there isn’t enough calcium in them to give them strength. This is because the bone cells aren’t being reproduced as fast as the bone is aging or deteriorating which causes the bones to become fragile. This can happen because of loss of calcium in the bone, or a problem with the calcium being absorbed correctly, which it needs in order to build new bone tissue and complete the remodeling cycle. Even if the bone has enough, other parts of your body may not and will start taking calcium away from your bones. Osteoarthritis occurs when smooth cartilage around a bone gets worn down and no longer allows smooth gliding between the bones which cause bone to bone contact. The cartilage is meant to be there to reduce friction so when it is worn away it can also cause pain. It is caused by an inflammation of the joints and is the most common type of arthritis. It is most likely due to aging or rather, a lot of continuous use. Muscular atrophy happens when the blood supply and amount of muscle fibers decreases which can cause the muscle to deteriorate. It can be cause by either disorders, lack of use, or injury. If there is an injury to the nerves that make the muscles move, then they will eventually deteriorate just as they would if a person stopped using their muscles as much. Lack of exercise, poor nutrition, nervous system problems, and disabilities can all cause muscular atrophy. For an 84-year-old small boned, white female, this can cause challenges of everyday life. With osteoporosis, she will have weak and fragile bones. For example, if she bumped into something or fell down, her bones could easily break so she would need to be extra careful when getting around. With osteoarthritis, she may be experiencing a lot of pain since most of or all of her cartilage has worn away causing her to feel the friction of the bone on bone contact. This would make it harder for her to walk and exercise. Lastly, the muscular atrophy would make her very weak since her muscles can’t function the way they are supposed to because of lack of strength. Lifting, pulling, walking, and any normal chore for her would be a very big challenge.

The Theory of the Contestable Market

The theory of contestable markets, along with the static and dynamic views of competition, are used as theories to analyse how markets perform. The static view focuses on the structure of the market as the determining factor of competition, with the dynamic view focusing on dynamic aspects such as technology and entrepreneurship. The contestable markets theory has a different focus, focusing on the importance of barriers to entry and exit. Nonetheless it does incorporate features from both views.More importantly it shifts the focus and provides new insight into the workings of competition. The two differing views of competition will be examined, followed by an examination of the contestable market theory, concluding with an analysis of the degree to which there is synthesis. Static view of competition The static view of competition focuses on the market structure as the key determining factor in the performance and behaviour of firms. It is the neoclassical approach of competition, o rigination from the work of economist’s Cournot and Edgeworth.This traditional view sees market structure as rigidly determining firm's conduct (its output decisions and pricing behaviour), which yields an industry's overall performance, such as its efficiency and profitability. Firms limit their behaviour to a certain industry model or strategic logic that is built on frequent price cuts, in order to out-compete rivals and deter entry. An industry is considered competitive depending on its market structure. At one extreme is perfect competition, which is considered perfectly competitive. At the other extreme is a monopoly structure, with a sole producer, characterised by low competition.In between the spectrum is an oligopolistic structure, and a monopolistic structure. These structures embody less competition than in perfect competition, but more than in a monopoly situation. The characteristics of competitive markets are thus large number of firms, or in other words a low concentration ratio. The number of firms is determined by the market demand and the output level set at that which minimises average cost. As the number of firms that enter the industry increases, firms become price takers rather than price makers, and they are forced to apply the price that is set in order to survive in the market.They thus receive normal profits, as opposed to abnormal profits when the market structure was more concentrated (please refer to figure 1 below). Fig 1 Thus the organisation of industries is considered to be generated exogenously. Therefore the market concentration decides the nature of competition within each market. The static view of competition thus concentrates on the structural characteristics of competition, with a ‘structure-conduct-performance’ based paradigm, in which market structure decided conduct of firms, deciding their performance.The static competition approach excludes non-price competition, such as quality and product diff erentiation, and strategic behaviour which does occur. This view of competition has been criticised for ignoring the more dynamic methodology of competition, which will now be analysed. Due to the importance of market share in the static view of competition, the resultant policy implication calls for regulation of markets, in order to ensure low marker concentration, in order to move towards perfect competition, and its associated benefits. (Schwartz 1986). Dynamic view of competitionThe dynamic view of competition revolves around the role of the entrepreneur and firms using innovation to compete with their rivals. The neo-Austrian school of thought, in particular, Schumpeter, and those economists influenced by it have been redefining the concept along classical lines, although with a much greater emphasis on the entrepreneurial role, the role of discovery, and rivalrous competition. Performance in industries is argued to be characterized by dynamic competition, expressed through in novation and variation rather than through efficiency and price reductions, which is the case in the static approach.This view portrays competition as a process of change and evolution rather than a static state in which equilibrium will be reached. Hayek, a main architect of this approach, defines competition as a dynamic behavioural activity. Central to this activity is knowledge, how it is acquired and communicated through the economy. He criticises the neoclassical assumption of perfect knowledge, with the view that costs are not a given, and so not exogenous. Competition is a process of interaction with the environment, in which innovation, such as new methods of production and new products, are a response to the unique situation of the economy.It results in the optimal use of resources. (Auerbach 1988) Alchian believes that there is a natural selection process which results in a competitive outcome. Such competition depends not only on the physical possibilities but also the a bilities and attitudes of participants, the entrepreneurs and consumers. It therefore argues for property rights, as to increase the level of competition, forcing companies to undergo research and development and to innovate, in order to survive.For competition to be improved and sustained there needs to be a genuine desire on behalf of entrepreneurs to engage in competitive behaviour, to innovate and to invent to drive markets forward and create what Schumpeter famously called the â€Å"gales of creative destruction†. (Vickers, 1995, pp15). In the classic dynamic view, it argues that there is a tendency for rates of return to equalise, due to profit seeking behaviour, and the movement of capital from low profit areas to that of higher profit areas. However equilibrium may never be reached.Before the tendency for equalisation, the economy may have changed, such as the structure of demand, or the available technology, and products may have evolved. The general criticism of the dynamic view of competition is that is lacks the simplicity and decisiveness than the static view of competition. The policy implications of the dynamic view of competition is less concerned with regulation of markets, instead encouraging property rights in order to allow firms to benefit from their own research and development, allowing for technological advancement, and the ensuing competition.Theory of the contestable market The theory of contestable markets describes how competition will exist in any market if there are no barriers to entry and exit, as firms will be forced to act competitively in fear of new firms entering the market. The contestable markets approach to competition represents an alternative to the neo-classical theory of the firm. It came to prominence in the early 1980s, largely through the work of the American economist Baumol. The threat posed by the possibility of new firms entering the market is taken to be a key determinant of the behaviour of existing f irms.Accordingly, barriers to entry and exit play a crucial role. Its fundamental feature is low barriers to entry and exit; a perfectly contestable market would have no barriers to entry or exit. This means no sunk costs. Sunk costs will be low where the firm can sell or in other ways dispose of its capital equipment without cost. For example, a new airline might lease aircraft rather than purchase them and can then leave the industry at the end of the lease period without the costs of having to sell its aircraft.Contestable markets are characterized by ‘hit and run' entry, whereby if a firm in a market with no entry or exit barriers raises its prices above average cost and begins to earn abnormal profits, potential rivals will enter the market to take advantage of these profits. When the incumbent firms respond by returning prices to levels consistent with normal profits the new firms will exit. In this manner even a monopoly market can show highly competitive behaviour (suc h as in perfect competition), as it fears potential competition.Such optimal behaviour applies to the full range of industry structures. Natural monopolies are of course not included in such a theory, as by its nature barriers to entry and exit exist. In this view of competition, the direction of causation between the market structure and competition is reversed from that of the static view. The theory of contestable markets sees contestability as influencing the performance and conduct of firms, and thus deciding on the resultant market structure.Perfect contestability would lead to firms earning normal profit, embodying cost-minimisation behaviour, resulting in a cost-minimisation structure (P=MC= AC), whatever the actual form of the market structure. Thus, the market structure is determined by the price and output decisions, or the behaviour, of firms. In a perfectly contestable market, there would exist profit equalisation across firms and industries, such as in perfect competit ion, even under market imperfections, such as a concentrated structure. Under a contestable market there would be maximisation of consumer welfare due to cost and price minimising.Contestable markets would also result in optimal firm sizes (economies of scale), product-mix (economies of scope) and industrial organisation (dynamic efficiency). Compared to the static view of competition, the contestable market views is not so much competition within the market, but competition for the market. Attention has been shifted away from actual competition to potential competition. Critics of this theory includes the argument that perfectly contestable markets are rare, and thus should only be applied to specific cases.It is true that perfect contestability is an extreme, and should be viewed as a benchmark rather than the norm, but the same applies to perfect competition in the static view of competition. (Schwartz 1986). More empirical research is needed on the extent of free entry and exit. Criticism has also been placed upon the reaction time of incumbents as new firms enter the market, which is also a hotly debated subject. Contradicting assumptions of ultra-free entry and the response of firms is another criticised aspect of the theory. (Shepherd, 1984, pp585)In terms of policy implications, the theory suggests that competition policy should be as much concerned with the levels of barriers to entry and exit in a market as with existing levels of competition. Synthesis? There is much debate as to whether contestable market theory is a synthesis of the static and dynamic views of competition. Some observers comment that the theory may even be an uprising from the traditional theories (Baumol, 1982), and to the other extreme where it is a mere extension of the traditional theories of competition.The theory of contestable markets incorporates important concepts from the static view of competition. The relationship between market structure and competition is a major fac tor in contestable market theory as it is in the static view, however in the former, as stated earlier, the causation is reversed. So the relationship is still key, albeit with market structure being dependent upon its firm’s behaviour. Furthermore, barriers to entry and exit, which are important in the static view in terms of its negative effects in allowing incumbents to earn economic rent, are of prime importance in the new theory.Although the new theory turns it on its head and focuses on the positive effects of removing barriers, and the resultant competition that comes with it. Barriers are thus significant market determinants. Thus for some contestable market theory provides a static equilibrium theory of industry structure which is generally more applicable than before. The theory also points towards some dynamic interpretation of markets. Firms are able to enter on an ongoing basis, constraining market behaviour of incumbents.The degree of contestability of a market can change over time with technology, regulatory breakdown, or changes in other barriers altering the entry and exit conditions. An incumbent pricing optimally can protect them self against new entrants using the same technology, but can’t protect against innovation or technological advancements. Furthermore, the threat of competition should lead to a faster rate of technological diffusion, as firms have to be particularly responsive to the changing needs of consumers. Thus dynamic aspects of competition are also important in the new theory.Baumol et al have argued the contestable theory as a new general system to replace the original static and dynamic views of competition. However their analysis should only be treated as a specialised, extreme set of conditions, which are unlikely to be found in reality, due to rigid assumptions of contestability theory. Some have even argued that little has been added to the pre-existing entry and exit analysis. (Shepherd, 1984). Conclusio n Contestable market theory is an attempt to impose a dynamic mechanism upon a static equilibrium analysis, thus providing new and valuable insights into competition theory.It offers a host of new analytical methods, new tasks for empirical research, and new results. It allows the reconsideration of the domain of the invisible hand, yields contributions to the theory of oligopoly, provides a standard for policy that is far broader and more widely applicable than that of perfect competition, and leads to a theory that analyses the determination of industry structure endogenously and simultaneously with the analysis of the other variables more traditionally treated in the theory of the firm and the industry.It aspires to provide a unifying theory as a foundation for the analysis of competition. The theory manages to blends in some aspects from both the static and dynamic analyses of competition, however shouldn’t be seen as an overarching theory. It embodies a different focus t o the two traditional views of competition, as already mentioned. It should be applied to unique situations, on which the assumptions of the theory are built. The new theory provides for a new dilemma rather than the final solution.

Toltec Art, Sculpture and Architecture

Toltec Art, Sculpture and Architecture The Toltec civilization dominated Central Mexico from its capital city of Tula from about 900 to 1150 A.D.. The Toltecs were a warrior culture, who dominated their neighbors militarily and demanded tribute. Their gods included Quetzalcoatl, Tezcatlipoca, and Tlaloc. Toltec artisans were skilled builders, potters, and stonemasons and they left behind an impressive artistic legacy.    Motifs in Toltec Art The Toltecs were a warrior culture with dark, ruthless gods who demanded conquest and sacrifice. Their art reflected this: there are many depictions of gods, warriors, and priests in Toltec art. A partially destroyed relief at Building 4 depicts a procession leading towards a man dressed as a feathered serpent, most likely a priest of Quetzalcoatl. The most iconic piece of surviving Toltec art, the four massive Atalante statues at Tula, depict fully-armored warriors with traditional weapons and armor, including the atltl dart-thrower. The Looting of the Toltec Unfortunately, much Toltec art has been lost. Comparatively, much art from the Maya and Aztec cultures survives to this day, and even the monumental heads and other sculptures of the ancient Olmec can still be appreciated. Any Toltec written records, similar to the Aztec, Mixtec and Maya codices, have been lost to time or burned by zealous Spanish priests. In about 1150 A.D., the mighty Toltec city of Tula was destroyed by invaders of unknown origin, and many murals and finer pieces of art were destroyed. The Aztecs held the Toltecs in high regard, and periodically raided the ruins of Tula to carry off stone carvings and other pieces to be used elsewhere. Finally, looters from the colonial period to the modern day have stolen priceless works for sale on the black market. In spite of this persistent cultural destruction, enough examples of Toltec art remain to attest to their artistic mastery. Toltec Architecture The great culture that immediately preceded the Toltec in Central Mexico was that of the mighty city of Teotihuacn. After the fall of the great city in about 750 A.D., many of the descendants of the Teotihuacanos participated in the founding of Tula and the Toltec civilization. Therefore, it is no surprise that the Toltecs borrowed heavily from Teotihuacan architecturally. The main square is laid out in a similar pattern, and Pyramid C at Tula, the most important one, has the same orientation as the ones at Teotihuacn, which is to say a 17 ° deviation towards the east. Toltec pyramids and palaces were impressive buildings, with colorfully painted relief sculptures adorning the fringes and mighty statues holding up the roofs. Toltec Pottery Thousands of pieces of pottery, some intact but mostly broken, have been found at Tula. Some of these pieces were made in far distant lands and brought there through trade or tribute, but there is evidence that Tula had its own pottery industry. The later Aztecs thought highly of their skills, claiming that Toltec artisans taught the clay to lie. The Toltecs produced Mazapan-type pottery for internal use and export: other types discovered at Tula, including Plumbate and Papagayo Polychrome, were produced elsewhere and arrived at Tula through trade or tribute. The Toltec potters produced a variety of items, including pieces with remarkable faces. Toltec Sculpture Of all of the surviving pieces of Toltec art, the sculptures and stone carvings have best survived the test of time. In spite of repeated looting, Tula is rich in statues and art preserved in stone. Atalantes: perhaps the best-known surviving piece of Toltec art are the four Atalantes, or stone statues, which grace the top of Pyramid B at Tula. These tall human statues represent high-ranking Toltec warriors.   Ã‚  Ã‚  Chac Mool: Seven complete or partial Chac Mool style statues were found at Tula. These sculptures, depicting a reclining man holding a receptacle, were used for sacrifices, including human sacrifices. Chac Mools are associated with the cult of Tlaloc.Relief and Friezes: The Toltec were great artists when it came to reliefs and friezes. One excellent surviving example is the Coatepantli, or Wall of Serpents of Tula. The elaborate wall, which delineated the sacred precinct of the city, is richly decorated with geometric designs and carved images of snakes devouring human skeletons. Other reliefs and friezes include the partial frieze from building 4 at Tula, which once depicted a procession towards a man dressed as a plumed serpent, probably a priest of Quetzalcoat l. Sources Charles River Editors. The History and Culture of the Toltec. Lexington: Charles River Editors, 2014.Cobean, Robert H., Elizabeth Jimà ©nez Garcà ­a and Alba Guadalupe Mastache. Tula. Mexico: Fondo de Cultura Economica, 2012.Coe, Michael D and Rex Koontz. 6th Edition. New York: Thames and Hudson, 2008Davies, Nigel. The Toltecs: Until the Fall of Tula. Norman: the University of Oklahoma Press, 1987.Gamboa Cabezas, Luis Manuel. El Palacio Quemado, Tula: Seis Decadas de Investigaciones. Arqueologia Mexicana XV-85 (May-June 2007). 43-47

Learning He, She, or It in English

Learning He, She, or It in English English grammar states that people are referred to as he or she and that all other objects are referred to as it in the singular or they in the plural. In many languages, such as French, German, Spanish, etc. objects have gender. In other words, things are referred to as he or she. English students quickly learn that all objects are it, and are probably happy because they dont have to learn the gender of each object. I live in a house. Its in the countryside.Look at that window. Its broken.I know thats my book because it has my name on it. He, She or It With Animals When referring to animals we run into a problem. Should we refer to them as he or she? When speaking about animals in English use it. However, when speaking about our pets or domesticated animals, its common to use he or she. Strictly speaking, animals should always take it, but native speakers generally forget this rule when speaking about their own cats, dogs, horses or other domestic animals. My cat is so friendly. Shell say hi to anyone who comes to visit.My dog loves running. When I take him to the beach, he runs for hours and hours.Dont touch my lizard, he bites people he doesnt know! Wild animals, on the other hand, usually take it when spoken about in a general way. Look at the hummingbird. Its so beautiful!That bear looks like its very strong.The zebra in the zoo looks tired. It just stands there all day long. The Use of Anthropomorphism Anthropomorphism - Noun: The attribution of human characteristics or behavior to a god, animal, or object. You often hear wild animals referred to as he or she in documentaries. Wildlife documentaries teach about the habits of wild animals and describe their lives in ways humans can understand. This type of language is referred to as an anthropomorphism. Here are some examples: The bull stands his ground challenging anyone to a fight. He surveys the herd looking for a new mate. (bull - male cow)The mare protects her foal. She keeps a look out for any intruder. (mare - female horse / foal - baby horse) Anthropomorphism is also used with some vehicles such as cars and boats. Some people refer to their car as she, while sailors commonly refer to ships as she. This use of she with some cars and boats is probably due to the intimate relationship people have with these objects. Many people spend hours with their cars, while sailors can spend most of their lives aboard ships. They develop a personal relationship with these objects and give them human traits: anthropomorphism. Ive had my car for ten years. Shes part of the family.The ship was launched twenty years ago. Shes sailed around the world.Toms in love with his car. He says shes his soul mate! Nations In formal English, especially in older written publications nations are often referred to with the feminine she. Most people use it in modern times. However, its still quite common to come across the use of she in more formal, academic or sometimes patriotic settings. For example, some patriotic songs in the USA contain feminine references. The use of she, her and hers is common when speaking about a country someone loves. Ah France! Her bountiful culture, welcoming people and amazing cuisine always call me back!Old England. Her strength shines through any test of time.(from Song) ... bless America, land that I love. Stand beside her, and guide her ...