The Art of Cognitive Psychology Free Essay Example, 2000 words

When measuring inverse effectiveness it is important to ensure that we make use of grey scaled stimuli and short durations for the project tasks. The use of lateralized stimulation does not prohibit against the transfer of information to the brain. The task of undertaking the lateralization process does not require the use of greyscale or color. The output of any system could be used in through holistic representations or representations which are bi-lateral of contra-lateral (Balota, 2004). Capabilities of accessing each hemisphere in isolation or through processing in each different hemisphere among people are challenging. Holistic processing could be undertaken using varied forms of facial expression. In these instances, the brain will take time to recognize differences in expression if similar expressions are used. For instance, if two happy facial expressions belonging to different people are distorted then the brain can process the composite expression as happy. However, the b rain through the right hemisphere might recognize that both distorted faces are not similar. This experiment re-affirms the thoughts and research undertaken by Calder in the field of cognitive psychology (Kellogg, 2003). We will write a custom essay sample on The Art of Cognitive Psychology or any topic specifically for you Only $17.96 $11.86/pageorder now Composite figures tend to tap on figural processing since the objects are arranged to come up with a composite face with one expression. In the process of making out the faces of the subjects used in the images, the participants were engaged in using the different facial expressions. However, none of them used these expressions in the task of facial recognition. Due to this, we can conclude that facial expressions are processed in terms of their configurable make-up (Galotti, 2010). For instance, the position of the mouth, nose or mouth in displaying emotions is coded according to each participant. It is also true to conclude that making use of different facial expressions can be used in coming up with one composite expression. In this case, we can use a different expression to come with one totally new expression.

The Limitations Of Language Male Participants, Stoicism,...

Affleck, W., Class, K. C. Macdonald, E. M. 2012, The Limitations of Language: Male Participants, Stoicism, and the Qualitative Research Interview, American Journal of Men’s Health, 7(2), 155-162, DOI: 10.1177/1557988312464038 Allmark, P., Boote, J., Chambers, E., Clarke, A., Mcdonnell, A., Thompson, A., R., and Tod, A., 2009. Ethical issues in the use of in-depth interviews: literature review and discussion, Research Ethics Review, 5(2), 48-54 Babbie, E. (1992). The Practice of Social Research, New York, Macmillan found on Hsieh, F. H., and Shannon, E., S. 2005. Three Approaches to Qualitative Content Analysis, Qualitative Health Research, 15(9), 1277-1288 Bamidele, A., Filson, G. and Sethuratnam, S. 2012. Culturally appropriate vegetables and economic development. A contextual analysis. Appetite, 59, 148–154 Bazeley (2006), Teddlie and Tashakkori (2006), Onwuegbuzie and Johnson (2006) found on Johnson, B. R., Onwuegbuzie, J. A. and Turner, L. A. 2007. Towards a Definition of Mixed Method Research, Journal of Mixed Method, 1(2), 112-133, doi 10.1177/1558689806298224 Bazeley, P. 2004, Issues in Mixing Qualitative and Quantitative Approaches to Research, Applying qualitative methods to marketing management research. UK: Palgrave Macmillan, pp141-156. Berelson, B. (1952). Content Analysis is Communication Research. Glencoe, III, Free Press, Bishop, G.F., Hippler, H.J., Schwarz, N., Strack F. 1988. A comparison of response effects in self-administered and telephone surveys. InShow MoreRelatedRastafarian79520 Words   |  319 PagesRastafari From Outcasts to Culture Bearers Ennis Barrington Edmonds 2003 198 Madison Avenue, New York, New York 10016 Oxford University Press is a department of the University of Oxford It furthers the Universitys objective of excellence in research, scholarship, and education by publishing worldwide in Oxford New York Auckland Bangkok Buenos Aires Cape Town Chennai Dar es Salaam Delhi Hong Kong Istanbul Karachi Kolkata Kuala Lumpur Madrid Melbourne Mexico City Mumbai Nairobi Sà £o PauloRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 Pagesalternatives to narrowly conceived interpretations, and offer quite an original take on the most extensively covered conflicts in human history and the decades of unprecedented global violence they framed. Morrow’s contribution here, as in his recent research and scholarship as a 6 †¢ INTRODUCTION whole, treats the two wars and their prehistory and aftermaths as genuinely global phenomena, not as conflicts among the great powers of Europe, the United States, and Japan, which has been the

A Global Overview of a Fast Relief Market Free Essays

A Project Report On A Global Overview Of A FAST RELIEF Market Submitted in Partial fulfillment for the requirement of the Degree of Master of Business Administration (International Business) from SUS College of engineering and technology,Tangori, Mohali.. Under the Guidance of: Submitted to: Mr. We will write a custom essay sample on A Global Overview of a Fast Relief Market or any similar topic only for you Order Now SUNIL Mr. ANIL Mr. PANKAJ SIR Submitted By: NANCY GOYAL MBA Acknowledgement I am very much thankful to Mr. Karun Narang (MD, Eastern Medikit Ltd. ) and Mr. D. Tyagi (AGM, Eastern Medikit Ltd) who allowed me to undergo summer training in their esteemed organization. This report deserves the special mention of few names, Mr. SUNIL PALand Mr. ANIL KUMAR SINGH , who guided me all the way and helped me at each of the stage. They helped me to gain knowledge about the various aspects of their organization. They shared their professional experiences, which will be very much useful for me in the long run. I would like to give a bunch of thanks to Mr. Bhupendra Singh, Mr. Krishna Sharma, Mr. V. P. Joshi, Mr. Jagmohan Roy, Mr. Pankaj Pandey, Mr. Amit Sharma, Mr. Guru Prasad, Mr. Pradeep Dua, Mr. Kunjal Patel, Mr. Ajay Sharma, Miss Piyali Chakraborty and Mr. Ankkur who helped me to improve my research work. I can not forget to thank all those people who directly or indirectly cooperated me during my training period. NANCY GOYAL SUS C. E. T TANGORI MOHALI.. INDEX * Introduction What is Fast Relief Medikit’s fast relief Details Competitors and Their Profile * SWOT Analysis PEST Analysis * Competitive analysis * Marketing mix * Strategies * Costs * Media costs Eastern Medikit Ltd Medikit is the India’s largest medical device export company Medikit has 5 manufacturing facilities in and around Gurgaon, covering 125,000 sq. ft with 25,000 sq. ft as class 10,000 and class 1,00,000 clean rooms. Our organizational strengths are rooted within Medikit’s unique flexibility to evolve and improve products and processes by deployment of globally competent manufacturing practices. Read Chapter 8 Microbial Genetics With ongoing in-house development of proprietary equipment and manufacturing techniques, our research and development activities along with our exclusive design and development centre ensure that Medikit is customer-driven and stays ahead, always. FAST RELIEF Definition â€Å"Fast relief† is a pain reliever product of medikit ltd. It is a extra strong pain reliever product. The main competitors of this is MOOV and HIMANI FAST RELIEF.. The new launched product fast relief has a unique and ayurvedic composition elements.. like Oil of wintergreen 15. 0% Pudina ka phool 5% Tarpin tel 3% Nilgiri tel 2% Base (bees wax) q. s. All these ingredients provides ‘sootthing warmth’ to relieve pain instantly.. which is the requirement. Purpose The purpose of this product is basically to give relief instantly from the backache pain. It works with its special ingredients to give relief from the backache. Its main purpose is to give warmth and soothing feeling at the pain area and to give quick relief. It works like a miracle at the pain.. Company’s Product Details MedifinTM| |   FAST RELIEF from MEDIKIT | | | Geographic Markets:DELHI , UP, MUMBAI, VARANASI, CHENNAI, BANGLORE, CHANDIGARH, LUCKNOW.. | | Product Details | Benefits| Being in topical form it is devoid of all undesireable effects of oral route.. | So it helps to maintain the valid effects. | Soft and therapeutic. | Gives instant relief. | Starts work immediately after application. | Complies with standard and quality norms. | Attractive design and coloured packaging. | Gives satisfaction quickly.. Gives soothing warmth. | To improve the body muscles so that relive remains for more time. | No sideeffects . | An ayurvedic cure. | Topical preparation gives therapeutic effects only at the site of application that’s local relief.. | Cheap and economical. Specially for common man. | MARKETING OF THE PRODUCT.. INTRODUCTION.. MARKETING IS ONE OF THE IMPORTANT ASPECT OF ANY BUSINESS AND SO WE WOULD ANALYSE VARIOU S MARKETING STRATEGIES MAINLY PEST ANALYSIS AND SWOT ANALYSIS , COMPETITIVE ANALYSIS ARE BEEN DONE AND EXPLAINED IN THERE.. MARKET SEGMENTATION AND TARGETING.. DELHI,UP,MUMBAI, VARANASI,BRALIEY,CHENNAI,BANGLORE, CHANDIGARH,LUCKNOW,MP,CALCUTTA. AGE- ABOVE 30 YEARS. GENDER- SPECIALLY FOR FEMALES. FAMILY SIZE- FOR BOTH BIG AND NUCLEAR FAMILIES SOCIO ECO CLASS- MIDDLE AND LOWER MIDDLE CLASS. PEST ANALYSIS.. Pest analysis stands for political,economical,social,and,technological analysis of macroenviornmental factors used in the environmental scanning component of strategic management. it is a part of the external analysis when onducting a strategic analysis or doing market research and gives a certain overview of the different macroenviornmental factors that the company has to take into the consideration. It is a useful strategic tool for understanding market growth or decline, business position, potential,and direction for operations.. POLITICAL- Govt support. , no risk for OTC brands. ECONOMIC- It is cheap and economical.. as it is available in different-different small packaging. It enhances the GDP growth and liberlisation. SOCIAL- Its is a innovative product suits the demands of the changing preferences of the society. It is suitable for the needs and aspirations of the common individual. TECHNOLOGICAL- It is made by the use of best technological machines. It has given a quality packaging with double lamination on the outer and inner area of the tube. SWOT ANALYSIS. Swot analysis is a strategic planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture.. STRENGTHS- It is an ayurvedic product. It is quick and instant pain reliever than any other relief balm. Its branding is fabulous and standardized Its channels of distribution and dedicated Employees working for its successful promotion. A huge capital investment.. WEAKNESS- It is a new product in the market. It has low market share now. OPPORTUNITIES- There is a huge market demanding innovation And change. Changing tastes and preferences of consumers. THREATS- The problem of brand loyality and mindset of Consumres regarding a specific product and its Quality. Popularity of competitive brands like moov. The condition of market is also a big threat. . POSITIONING STRATEGY.. The positioning strategy is an effective and important instrument for a business venture and for the product as well. As it causes the success of the product.. â€Å"FAST RELIEF† â€Å"AN AYURVEDIC CURE FOR YOUR PAIN† The positioning strategy should be strong and effective enough to make the product strong and popular.. TARGET AUDIENCE The main target audience are middle class family and low midlle class family woman, who works in the offices as well as in homes and have no time to go to doctors for their ignorable backaches.. INDUSTRY PROFILE Industry Definition â€Å"The Indian pharmaceutical industry is a success story providing employment for millions and ensuring that essential drugs at affordable prices are available to the vast population of this sub-continent. † Richard Gerster The Indian Pharmaceutical Industry today is in the front rank of India’s science-based industries with wide ranging capabilities in the complex field of drug manufacture and technology. A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4. 5 billion, growing at about 8 to 9 percent annually. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. From simple headache pills to sophisticated antibiotics and complex cardiac compounds, almost every type of medicine is now made indigenously. Playing a key role in promoting and sustaining development in the vital field of medicines, Indian Pharma Industry boasts of quality producers and many units approved by regulatory authorities in USA and UK. International companies associated with this sector have stimulated, assisted and spearheaded this dynamic development in the past 53 years and helped to put India on the pharmaceutical map of the world. The Indian Pharmaceutical sector is highly fragmented with more than 20,000 registered units. It has expanded drastically in the last two decades. The leading 250 pharmaceutical companies control 70% of the market with market leader holding nearly 7% of the market share. It is an extremely fragmented market with severe price competition and government price control. The pharmaceutical industry in India meets around 70% of the country’s demand for bulk drugs, drug intermediates, pharmaceutical formulations, chemicals, tablets, capsules, orals and injectibles. There are about 250 large units and about 8000 Small Scale Units, which form the core of the pharmaceutical industry in India (including 5 Central Public Sector Units). These units produce the complete range of pharmaceutical formulations, i. e. , medicines ready for consumption by patients and about 350 bulk drugs, i. e. , chemicals having therapeutic value and used for production of pharmaceutical formulations. Following the de-licensing of the pharmaceutical industry, industrial licensing for most of the drugs and pharmaceutical products has been done away with. Manufacturers are free to produce any drug duly approved by the Drug Control Authority. Technologically strong and totally self-reliant, the pharmaceutical industry in India has low costs of production, low RD costs, innovative scientific manpower, strength of national laboratories and an increasing balance of trade. The Pharmaceutical Industry, with its rich scientific talents and research capabilities, supported by Intellectual Property Protection regime is well set to take on the international market. ADVANTAGE IN INDIA Competent workforce: India has a pool of personnel with high managerial and technical competence as also skilled workforce. It has an educated work force and English is commonly used. Professional services are easily available. Cost-effective chemical synthesis: Its track record of development, particularly in the area of improved cost-beneficial chemical synthesis for various drug molecules is excellent. It provides a wide variety of bulk drugs and exports sophisticated bulk drugs. Legal Financial Framework: India has a 53 year old democracy and hence has a solid legal framework and strong financial markets. There is already an established international industry and business community. Information Technology: It has a good network of world-class educational institutions and established strengths in Information Technology. Globalization: The country is committed to a free market economy and globalization. Above all, it has a 70 million middle class market, which is continuously growing. Consolidation: For the first time in many years, the international pharmaceutical industry is finding great opportunities in India. The process of consolidation, which has become a generalized phenomenon in the world pharmaceutical industry, has started taking place in India. THE GROWTH SCENARIO India’s US$ 3. 1 billion pharmaceutical industry is growing at the rate of 14 percent per year. It is one of the largest and most advanced among the developing countries. Over 20,000 registered pharmaceutical manufacturers exist in the country. The domestic pharmaceuticals industry output is expected to exceed Rs260 billion in the financial year 2002, which accounts for merely 1. 3% of the global pharmaceutical sector. Of this, bulk drugs will account for Rs 54 bn (21%) and formulations, the remaining Rs 210 bn (79%). In financial year 2001, imports were Rs 20 bn while exports were Rs87 bn. The above graph shows the percentage of pharmaceutical products export by various countries. (SOURCE Competitiveness of the Indian pharmaceutical industry in the new product patent regime a report by FICCI) RESEARCH AND DEVELOPMENT Drug discovery is the process by which potential drugs are discovered or designed. In the past most drugs have been discovered either by isolating the active ingredient from traditional remedies or by serendipitous discovery. Modern biotechnology often focuses on understanding the metabolic pathways related to a disease state or pathogen, and manipulating these pathways using molecular biology or Biochemistry. A great deal of early-stage drug discovery has traditionally been carried out by universities and research institutions. Drug development refers to activities undertaken after a compound is identified as a potential drug in order to establish its suitability as a medication. Objectives of drug development are to determine appropriate Formulation and Dosing, as well as to establish safety. Research in these areas generally includes a combination of in vitro studies, in vivo studies, and clinical trials. The amount of capital required for late stage development has made it a historical strength of the larger pharmaceutical companies Often, large multinational corporations exhibit vertical integration, participating in a broad range of drug discovery and development, manufacturing and quality control, marketing, sales, and distribution. Smaller organizations, on the other hand, often focus on a specific aspect such as discovering drug candidates or developing formulations. Often, collaborative agreements between research organizations and large pharmaceutical companies are to explore the potential of new drug substances formed The cost of innovation Drug discovery and development is very expensive; of all compounds investigated for use in humans only a small fraction are eventually approved in most nations by government appointed medical institutions or boards, who have to approve new drugs before they can be marketed in those countries. Each year, only about 25 truly novel drugs (New chemical entities) are approved for marketing. This approval comes only after heavy investment in pre-clinical development and clinical trials, as well as a commitment to ongoing safety monitoring. Drugs which fail part-way through this process often incur large costs, while generating no revenue in return. If the cost of these failed drugs is taken into account, the cost of developing a successful new drug (New chemical entity or NCE), has been estimated at about 1 billion USD. A study by the consulting firm Bain ; Company reported that the cost for discovering, developing and launching (which factored in marketing and other business expenses) a new drug (along with the prospective drugs that fail) rose over a five year period to nearly $1. 7 billion in 2003. These estimates also take into account the opportunity cost of investing capital many years before revenues are realized (see Time-value of money). Because of the very long time needed for discovery, development, and approval of pharmaceuticals, these costs can accumulate to nearly half the total expense. Some approved drugs, such as those based on re-formulation of an existing active ingredient (also referred to as Line-extensions) are much less expensive to develop. The consumer advocacy group Public Citizen suggests on its web site that the actual cost is under $200 million, about 29% of which is spent on FDA-required clinical trials. For me-too-drugs and for generics, the cost are even less. Calculations and claims in this area are controversial because of the implications for regulation and subsidization of the industry through federally funded research grants. Controversy about drug development and testing There have been increasing accusations and findings that clinical trials conducted or funded by pharmaceutical companies are much more likely to report positive results for the preferred medication. In response to public outcry about specific cases in which unfavorable data from pharmaceutical company-sponsored research was suppressed, the Pharmaceutical Research and Manufacturers of America have published new guidelines urging companies to report all findings and limit the financial involvement in drug companies of researchers. As a result of this public outcry and Pharma response the US congress signed into law a bill which requires phase II and phase III clinical trials to be registered by the sponsor on the NIH website Drug researchers not directly employed by pharmaceutical companies often look to companies for grants, and companies often look to researchers for studies that will make their products look favorable. Sponsored researchers are rewarded by drug companies, for example with support for their conference/symposium costs. Lecture scripts and even journal articles presented by academic researchers may actually be ‘ghost-written’ by pharmaceutical companies. Some researchers who have tried to reveal ethical issues with clinical trials or who tried to publish papers that show harmful effects of new drugs or cheaper alternatives have been threatened by drug companies with lawsuits. Product approval in the US In the United States, new pharmaceutical products must be approved by the FDA as being both safe and effective. This process generally involves submission of an Investigational new drug filing with sufficient pre-clinical data to support proceeding with human trials. Following IND approval, three phases of progressively larger human clinical trials may be conducted. Phase I generally studies toxicity using healthy volunteers. Phase II can include Pharmacokinetics and Dosing in patients, and Phase III is a very large study of efficacy in the intended patient population. A fourth phase of post-approval surveillance is also often required due to the fact that even the largest clinical trials cannot effectively predict the prevalence of rare side-effects. Post-marketing surveillance ensures that after marketing the safety of a drug is monitored closely. In certain instances, its indication may need to be limited to particular patient groups, and in others the substance is withdrawn from the market completely. Questions continue to be raised regarding the standard of both the initial approval process, and subsequent changes to product labeling (it may take many months for a change identified in post-approval surveillance to be reflected in product labeling) and this is an area where congress is active. The FDA provides information about approved drugs at the Orange Book site. In the UK, the British National Formulary is the core guide for pharmacists and clinicians. Orphan drugs There are special rules for certain rare diseases (â€Å"orphan diseases†) involving fewer than 200,000 patients in the United States, or larger populations in certain circumstances. Because medical research and development of drugs to treat such disease s is financially disadvantageous, companies that do so are rewarded with tax reductions, fee waivers, and market exclusivity on that drug for a limited time (seven years), regardless of whether the drug is protected by patents. Industry revenues For the first time ever, in 2006, global spending on prescription drugs topped $643 billion, even as growth slowed somewhat in Europe and North America. The United States accounts for almost half of the global pharmaceutical market, with $289 billion in annual sales followed by the EU and Japan. Emerging markets such as China, Russia, South Korea and Mexico outpaced that market, growing a huge 81 percent. US profit growth was maintained even whilst other top industries saw slowed or no growth. Despite this, â€Å".. he pharmaceutical industry is — and has been for years — the most profitable of all businesses in the U. S. In the annual Fortune 500 survey, the pharmaceutical industry topped the list of the most profitable industries, with a return of 17% on revenue. † Pfizer’s cholesterol pill Lipitor remains the best-selling drug in the world for the fifth year in a row. Its annual sales were $12. 9 billion, more than twice as much as its closest competitors: Plavix, the blood thinner from Bristol-Myers Squibb and Sanofi-Aventis; Nexium, the heartburn pill from AstraZeneca; and Advair, the asthma inhaler from GlaxoSmithKline. IMS Health publishes an analysis of trends expected in the pharmaceutical industry in 2007, including increasing profits in most sectors despite loss of some patents, and new ‘blockbuster’ drugs on the horizon. Teradata Magazine predicted that by 2007, $40 billion in U. S. sales could be lost at the top 10 pharma companies as a result of slowdown in RD innovation and the expiry of patents on major products, with 19 blockbuster drugs losing patent. STEPS TO STRENGTHEN THE INDUSTRY Indian companies need to attain the right product-mix for sustained future growth. Core competencies will play an important role in determining the future of many Indian pharmaceutical companies in the post product-patent regime after 2005. Indian companies, in an effort to consolidate their position, will have to increasingly look at merger and acquisition options of either companies or products. This would help them to offset loss of new product options, improve their RD efforts and improve distribution to penetrate markets. Research and development has always taken the back seat amongst Indian pharmaceutical companies. In order to stay competitive in the future, Indian companies will have to refocus and invest heavily in RD. The Indian pharmaceutical industry also needs to take advantage of the recent advances in biotechnology and information technology. The future of the industry will be determined by how well it markets its products to several regions and distributes risks, its forward and backward integration capabilities, its RD, its consolidation through mergers and acquisitions, co-marketing and licensing agreements. INTRODUCTION TO EASTERN MEDIKIT LTD COMPANY PROFILE â€Å"A company empowered by one mission –to place itself on the world map. An enterprise propelled by one force-that synergizes its energies to charter unexplored markets. Organizations fuelled by one dream-to transform competition into opportunity. † Eastern Medikit Ltd Laboratories Ltd. was incorporated in June 1961, in the name of M/S LEPITIT EASTERN MEDIKIT LTD LABORATORIES LTD and it commenced its business in MARCH 1962, in technical and financial collaboration with an international company named LEPTIT SPA, MILAN, ITALY. Eastern Medikit Ltd Laboratories Pvt. Ltd. merged with â€Å"Leptit Eastern Medikit Ltd Laboratories Pvt. Ltd. † in 1962 Eastern Medikit Ltd and company also merged with this company in 1966. The collaboration arrangement with M/S LEPTIT was terminated in 1966; after which Indian nationals acquired the entire share capital of the company. Therefore the word Leptit was removed from the name of the company. The name is known as EASTERN MEDIKIT LTD LABORATORIES LIMITED. In 1973 the company issued shares to the general public and became a full fledged PUBLIC LIMITED COMPANY. Today, Eastern Medikit Ltd has emerged as a Leading Pharmaceutical Company on the Indian firmament, with the second largest market share and enjoys an enviable reputation for its high standard of ethics and quality around its core strength of anti-infective, it has produced new brands in emerging therapeutic areas like cardiovascular, central nervous system and nutritional. supporting this expansion, the company has invested in world class manufacturing infrastructure that leverages India’s comparative cost advantage and skilled manpower, while delivering international quality. The company’s drive for Internationalism is guided by the well planned brand strategy that covers some of the world emerging markets like China, cis, Central Europe and Latin America . Its position today is in league of the Top Ten Pharmaceutical companies of three world an decent ranking as the eleventh largest company in the international generics space is the resounding endorsement of its strategic mind. It is clear that for a long time, the dominant share of revenues of the company would continue to come from the ever expanding global generics market. Hence the intent of Eastern Medikit Ltd mission is to achieve a sustained growth rate through the continuous pursuit of innovation phase one trials for pervasion, a compound for treating prosthetic males have been completed. Phase 1 trials with clafrinast, an asthma compound is an important step towards research based value creation. This company also had success with Ciplofloxacine, an ingenious form, created through the novel drug delivery systems research. As the demand of the bulk drugs inside the country and abroad was increasingly rapidly a new, plant was set up at Toansa near Ropar in 1987. This was a higher capacity plant designed to cater to the present and future needs, initially antibiotics like Ampicillin, Trihydrate and Doxycycline were manufactured. Later, on the other drugs like Cephalexin monohydrate and Ranitidine were also prepared. The plant at Toansa was designed to meet the stringent standards set by the Food and Drug Administration (FDA) of U. S. A. This plant has been approved by FDA and this will open up American and other newer markets for Eastern Medikit Ltd’s products At present Eastern Medikit Ltd have four plants for the manufacture of bulk drugs two at Mohali, one at Dewas (M. P) AND Another at Toansa near ROPAR. At present, Eastern Medikit Ltd is the second most Indian company engaged in the manufacturing of Pharmaceuticals, Bulk Drugs and Fine Chemicals. EASTERN MEDIKIT LTD’s vast range of highly pure laboratory reagent and chemicals enjoy a place of pride in the market. IT trends, has rebuilt As a step towards leveraging information for value creation using its information backbone around an ERP application, along the focus on reengineering several business processes around the internet and has putting place business solutions that challenge existing ways of doing Business. The undying spirit of the company’s human assets and their intensive competitive and entrepreneurial energy has played a great part in transforming the company into a multicultural and multiracial team. Today, Eastern Medikit Ltd is the largest exporter accounting for 12% of the industry exports pharmaceutical substance and dosages forms to over 50 countries with the internationals sales comprising of 45% of the total turnover. VISION: GARUDA During the year 2002, the company has evolved a 10-year vision till 2012, for sustaining significant growth consistent with its mission to be an international research based Pharmaceutical Company, under the rubric ‘Vision Garuda’, with increasing emphasis on Novel Drug Delivery Systems Research (DDR). In licensing and out licensing, relationship with other important pharmaceutical entities, expansion of manufacturing facilities both in India and strategic overseas locations, revamping of organizational structures to cater to the wider and more dispersed span of operations, and streamlining and standardizing the business processes through out the global organization, are other areas that receive focus and attention of management on priority. Mission â€Å"To become a Research based International pharmaceutical company† Vision-2012 Achieve significant business in Proprietary prescription products By 2012 With a strong presence in developed markets Aspirations-2012 Aspire to be a$5 billion company Become a Top 5 global generics player Significant income from Proprietary products BOARD OF DIRECTORS At the helm entire operations is the experience and able direction of the people who make it all happen. Eastern Medikit Ltd acknowledges their inspiring stewardship and indefatigable work. * Mr. Tejendra Khanna(Chairman) * Mr. D. S. Brar (CEO $ Managing Director) * Mr. V. K. Kaul (Whole Time Director) * Dr. Brian Tempest (Whole Time Director) * Mr. Surendera Daulet Singh * Mr. Harpal Singh * Mr J. W. Balani * Mr. N. Kampani * Mr. V. Bharat Ram * Mr. Vivek Mehra Mr. Tejendra Khanna Mr. Tejendra Khanna was elected Chairman at a meeting of the Board of Directors of Eastern Medikit Ltd Laboratories Limited held at New Delhi, on July 5, 1999. Mr. Khanna, former Commerce Secretary to the Government of India, and a former Lieutenant Governor of Delhi is widely regarded as an expert in International Trade and Public Administration. Mr. D. S. Brar He was instrumental in developing the Pharmaceutical exports business of the company in early 80’s, which later became synonymous with major growth and expansion of company’s portfolio. In addition to the International business, he looked after the Animal Healthcare OTC businesses of the company. In 1986, he took over the Pharma business in India along with Chemical Manufacturing Operations. In early 90’s he led the company’s expansion into overseas markets creating joint ventures, affiliates and subsidiaries in major countries like China, Russia, U. K. , South Africa and the USA. In 1996, he took over as the President of the company. Mr. V. K. Kaul Graduated in 1964 (B. Sc. Hons, Physics) from Ramjas College, University of Delhi, Mr. V. K Kaul joined the Institute of Chartered Accountants of India F. C. A. He is recognised in the industry for his vast experience and variegated knowledge. Dr Brian W. Tempest Dr Tempest joined Eastern Medikit Ltd as Regional Director- Europe, CIS Africa in 1995 and subsequently took charge of Eastern Medikit Ltd’s worldwide pharmaceuticals business as President-Pharmaceuticals in the year 2000. In July 2001 he was appointed on the Board of Directors of Eastern Medikit Ltd. Dr. Tempest, 54, has worked in the Pharmaceutical Industry for 28 years, bringing in a wealth of global pharmaceutical experience and expertise. He has worked with leading multi-national companies across several international markets including USA, Japan, Europe, China and other countries in Africa and Asia-Pacific. His unique combination of experience with both research-based and generic companies will be an asset in driving the company’s growth in times ahead. Dr. Tempest is a Bachelor of Science with Honors from Aston University, specializing in Chemistry. He followed it up with a PhD in Polymer Chemistry from Lancaster University. Mr. Malvinder Mohan Singh Mr. Malvinder Mohan Singh is an Honors Graduate in Economics from Delhi University followed by a Masters Degree in Business Administration from Duke University, USA. He started his career with the American Express Bank and joined Eastern Medikit Ltd in May 1998. After holding several positions in the Company, has been appointed as â€Å"President Pharmaceuticals and Whole-time Director†, Eastern Medikit Ltd Laboratories Limited effective January 1, 2004 OPERATING JOINT VENTURES AND SUBSIDIARIES BRAZIL:Eastern Medikit Ltd S. P. Medicamentos Ltd. CHINA:Eastern Medikit Ltd (Guangzhou China) Ltd. EGYPT:Eastern Medikit Ltd Egypt Ltd. GERMANY: Basics Gmb H. HONG KONG:Eastern Medikit Ltd (Hong Kong) Ltd. INDIA:Rexcel pharmaceuticals Ltd. , Solus pharmaceuticals Ltd. , Vidyut Travel Services ltd. IRELAND:Eastern Medikit Ltd Ireland Ltd. MALAYSIA:Eastern Medikit Ltd (Malaysia) Sdn. Bhd. NETHERLANDS:Eastern Medikit Ltd Pharmaceuticals B. V. NIGERIA:Eastern Medikit Ltd Nigeria Ltd. PANAMA:Eastern Medikit Ltd Panama SA. POLAND:Eastern Medikit Ltd Poland Sp. Zo. SOUTH AFRICA:Eastern Medikit Ltd (SA) (Pty. ) Ltd. THAILAND:Unichem pharmaceuticals LTD. , Unichem Distributors Ltd. Part, Eastern Medikit Ltd Unichem CO. Ltd. U. K:Eastern Medikit Ltd (UK) Ltd USA: Eastern Medikit Ltd pharmaceuticals Inc. Ohm Laboratories Inc. , Eastern Medikit Ltd Schein Pharma, LLC VIETNAM: Eastern Medikit Ltd Vietnam Company Ltd. ALLIED BUSINESSES Eastern Medikit Ltd Animal Health The Animal Health division saw an encouraging growth despite the prevailing poor market conditions. The division grew at twice the growth rate recorded in the industry. On the basis of having a vast dome satiated animal population, the livestock, poultry business and pets business are among the fastest growing sectors in India. A vast infrastructure of veterinary colleges, agricultural institutes, technologists and researchers are helping farmers to source healthy, cost effective products. In conjunction with the present scenario, the AHC division of Eastern Medikit Ltd Laboratories Limited has introduced several latest generation products. Eastern Medikit Ltd Fine Chemicals Limited (RFCL) The division ranked 4th in the industry and captured 11% market share. RANKEM is established as a powerful brand, RFCL’s brand for its range of Reagents is now synonymous with excellence in reagents and fine chemicals in the country. The focus of business remains on developing extensive customer relations; enhancing service levels and enriching the product mix with the help of a qualified and competent marketing and sales team Diagnostics The diagnostics division has aggressively focused on market expansion activities based on strategy of reliability, quality products and efficient service. Introduction of products in ‘Point of Care’ markets has expanded market presence and over the next 1 – 2 years this segment will see considerable expansion in line with world trends. The Dade Behring segment has increased its installation base by 60% in leading hospitals and laboratories. Plans are afoot for the introduction of more parameters for the ‘Point of Care’ market and the launch of Special Chemistries, a range of drug assays, plus an entry into automated microbiology in both the Base and Dade Behring business areas. The company has also witnessed significant milestones in the area of Novel Drug Delivery Systems (NDDS). The company has entered into strategic business arrangements with companies such as Bayer AG, Glaxo-Wellcome, Eli-Lilly etc. for production and co-marketing operations. Many innovative developments have been taking place in recent times. The company’s research team is capable of developing one NDDS product every 12 to 18 months. Also, two new products: Roletra-D and Altiva-D, will soon be launched in India. In order to expand and promote global growth, the company opened several new markets during the year, notably in Brazil, where 25 filings were undertaken in a span of 2-3 months. The company has planned to build and protect intellectual property with the help of IPC, which addresses all matters pertaining to patents. CQA supervises the implementation of standard operating procedures (SOP) and ensures compliance to corporate quality assurance policy in all technological operations of the organization. The company is committed to invest 6% of the sales in R and D by 2003, of which 7% of the expenditure will be earmarked for research on New Drug Discovery and Novel Drug Delivery Systems. There will be continuous emphasis on augmenting R and D performance and productivity with advanced scientific and technological tools. VALUES OF EASTERN MEDIKIT LTD LABORATORIES LIMITED 1. Achieving customer satisfaction is fundamental to their business. 2. Practice dignity and equity in relationships and provide opportunities for people to realize their full potential. 3. Ensure profitable growth and enhance wealth of shareholders. 4. Foster mutually beneficial relationships with all their business partners. 5. Manage their operations with concern for safety and environment. 6. Be a responsible corporate citizen. OBJECTIVES OF EASTERN MEDIKIT LTD LABORATORIES LTD. 1. To be a leader in the Pharmaceutical industry. 2. To be a profitable company with a steady growth in earnings. 3. To set an example as a socially responsible company. 4. To diversify in health care related areas. 5. To strive for excellence and continuous improvement in all spheres. 6. To improve the quality of life of people by providing better services and quality products. Environment, Health and Safety [EHS] Caring for the Environment is a core corporate value and as a part of this commitment. The Company enunciated its EHS policy in 1993. The Company’s EHS policy provides for the creation of a safe and healthy workplace and a clean environment for employees and the community. It aims at higher international standards in plant design, equipment selection, maintenance and operations. The policy seeks to manufacture products safely and in an environmentally responsible manner. The implementation of the EHS Policy is ensured by institutionalizing a robust EHS Management system, adequately supported by well defined organizational structure. As a part of EHS processes at the corporate level, besides laying down guidelines on systems, policy and training, the corporate EHS office monitors compliance, maintains and disseminates information on laws and regulations. EHS performance review meetings are held on regular basis to monitor the progress against agreed EHS improvement plans. Close cooperation between all units and individuals is the key to maintaining high standards of environment protection and safety in all the plants. The key processes at location level comprise of regular safety surveillance, inspections audits, Permit to work system for operational / maintenance safety, Fire prevention protection activities, operation of the ETP/Incinerator, disposal activities related to hazardous wastes, regular monitoring of the environment internally and also through approved laboratories. Monthly reports address EHS initiatives, compliance various records under the statutory requirement, training of employees including contract employees on EHS awareness, interaction with the residential associations/nearby community etc. celebration of National safety day, fire day, Environment day etc. for EHS awareness among employees. The manufacturing facilities for bulk drugs and dosage forms comply with the stringent requirements of Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP) and are approved by International health and regulatory Agencies like FDA – USA, MCA – UK, WHO etc. These practices and approvals ensure that an effective framework is always in place, not only for manufacture of high quality products, but also for effective use of resources and reduction of wastes as well as high safety hygiene standards. Eastern Medikit Ltd has made significant improvements in process safety of the existing manufacturing facilities by providing extensive instrumented safety protection systems. The intended safety features are incorporated in the basic design of the new projects. Investments have been made on process improvements as well as effluent treatment plant up-gradation using the latest membrane based technology, multi-effect thermal evaporation system and state-of-the-art Incinerator. These investments have helped to reduce discharges of contaminants into the environment. With the facilities installed at Toansa for recycling of the treated effluent, the site has achieved the status of â€Å"zero discharge site†. The Company also engages with the concerned authorities and industry in devising responsible laws, regulations and standards and thus making safety, occupational health environmental information and expertise available to its employees and the community at large. Eastern Medikit Ltd has made EHS concerns and practices a necessary factor in appraising its employee performance. The Company also accords a very high priority to hygiene monitoring at work place and health assessment of all employees at site. The plant and processes are continuously upgraded to improve hygiene and health standards. Necessary training is imparted to the employees to enhance their awareness towards health related matters. Safety knowledge of the employees is constantly updated through various external and in-house training programs, including special training programs by overseas experts consultants. Moving up the value chain, the company identified Consumer Healthcare as its new business area in the year 2001. Eastern Medikit Ltd Global Consumer Healthcare (RGCH) was launched in October 2002 with a portfolio of 4 switch brands: Revital, Pepfiz, Gesdyp Garlic Pearls. Since these brands were already popular amongst consumers and represented the leading common ailment categories like VMS (Vitamins Minerals Supplement), this portfolio was carefully created for the introduction of RGCH to the Indian market. Subsequently in 2004, RGCH launched its first herbal range of products through New Age Herbals (NAH) with products offering remedy in categories of Cough Cold (Olesan Oil Cough Syrups) and Appetite Stimulant (Eat Ease). VARIOUS DIVISIONS OF EASTERN MEDIKIT LTD LABORATORIES LTD. 1. Chemical Division 2. Diagnostic Division 3. Stan care Division 4. Curradia Division 5. International Division 6. Pharmaceutical Division 7. Technical Division 8. Corporate Division 9. Animal Health Care Division DIVISIONS IN VARIOUS GEOGRAPHICAL AREAS 1. India and Middle East 2. Europe, CIS and Africa 3. Asia Pacific and Latin America 4. North America JOINT VENTURE OF THE COMPANY. 2000Eastern Medikit Ltd files IND Application for Asthma Molecule- RBx4638, after successful completion of pre-clinical studies. Eastern Medikit Ltd acquires Bayer’s Generics business (trading under the Name of Basics) in Germany. Eastern Medikit Ltd forays into Brazil, the largest pharmaceutical market in South America and achieves global sales of U. S. $ 2. 5 million in this market. 2001Eastern Medikit Ltd took a significant step forward in Vietnam by initiating the Setting up of a new manufacturing facility with an investment of U. S. $ 10 million. Eastern Medikit Ltd achieved a turnover of U. S. $ 502 million for the year 2002 and moved closer to achieving a target of 1 billion dollar by 2004. 2002Receives approval from FDA to market Midazolam Hydrochloride Syrup 2 Mg base/ ml. Eastern Medikit Ltd receives and approval from FDA to manufacture and market Cefpodoxime Proxetil for Oral Suspension, Lisinopril + Hydrochlorothiazide Tablets Us, Terazosin Hydrochloride Capsules and Amoxcillin Oral suspension USP. Heralding the company’s entry into the Indian OTC market. 003Eastern Medikit Ltd received the economic times award for corporate excellence-for the company for year. Eastern Medikit Ltd signed an agreement toacquire RPG(aventis) SA along with its fully owned subsidiary,OPIH SARL,in france 2004 Eastern Medikit Ltd launched its first range of herbal projects. 2005 Acquisition of additional stake in Eastern Medikit Ltd Farmaceutica Ltda. , Brazil Eastern Medikit Ltd announced the acquisition of Be-Tabs P harmaceuticals (Pty) Limited 2008Acquired by the Japanese giant, the $9. 62 billion Daiichi Sankyo, ranked No. in Japan BRIEF INTRO OF EASTERN MEDIKIT LTD PLANTS IN INDIA In the chemical division, various bulk drugs are manufactured. The chemical division had three units in Punjab. One is located at Toansa, two are located at Mohali and one unit is located at Dewas near Indore in Madhya Pradesh, where Ciprofloxacine is manufactured. In the plant of the chemical division, various drugs like Antibiotics, Anti-malarial, Antibacterial and Anti-ulcer are manufactured. One of the older plants of Eastern Medikit Ltd was closed after the accident in June 2003. he second one is still working The 1991, the Toansa plant started functioning in 1992 and the Dewas plant started functioning in 1999. Various plant heads independently manage all these plants. In each unit, separate facilities with respect to the manufacture of drugs, along with their manufacturing areas have been provided. This is r equired to reduce the chances of any cross contamination under the drug laws and to comply with good manufacturing practices. At Mohali plant, separate blocks have been provided for the preparation of each drug . The Toansa, Mohali and Dewas plants are planned in such a way that their system, facilities, manufacturing practices and standards meet the requirements of FDA. Mohali Plant also mainly in the manufacturing of Active Pharmaceutical Ingredients (API). The Plant is divided into two plant areas A8 and A9 THE VARIOUS DEPARTMENTS Human Resource Department The basic function of the human resource department in the modern corporate world is knowledge management. The HR department strives to maintain cohesiveness among employees. It also ensures interdepartmental cooperation in achieving targets. The appraisal system is also taken care by this department. The HR department delves deep into the employee’s psyche to analyze the positives and negatives of each employee, so that a proper system of delegation and / or empowerment can be evolved. Finance Department The finance department takes care of the regular financial needs of the company it ensures proper allocation of funds and takes care of the working capital requirements. It verifies capital raised by different departments and sends them for approval to the higher authorities. Stores Department The function of this department is to provide adequate and proper storage and preservation of various items to meet the demand of various other departments by proper issues and maintaining accounts of consumption. It also keeps a track of stock accumulation and abnormal consumption. Erection and Fabrication Department As the name suggests, this department identifies new projects and helps in erecting them. This department also undertakes major modifications of equipment. ERP Department ERP department helps to integrate the entire enterprise starting from the supplier to the customer, covering financial and human resources. This will enable the enterprise to increase productivity by reducing costs. It also ensures a single solution to the information needs of the whole organization. Production Department As a part of their on going commitment to produce hi-tech quality drugs and pharmaceuticals that take care of the specific needs of markets around the world, Eastern Medikit Ltd Laboratories Limited has increased the investment in the production department. It is the most important department of the company and has the following objectives: 1. Improving volume of production. 2. Reducing rejection rate. 3. Maintaining rework rate. Engineering Department This department undertakes building, construction and maintenance. Maintaining service facilities such as water, gas, heating, ventilation, air conditioning, painting and plumbing are some of the other areas dealt by this department. This department also helps in maintaining electrical equipments such as generators, transformers, telephone system and electrical installation. Purchase Department The purchase department provides material to the factory without which the wheels of machines cannot move. The various functions performed by this department include: Securing good vendor performance, including prompt deliveries of supplies of acceptable qualities. 1. To develop satisfactory sources of supply and maintaining good relationships with the suppliers. 2. To pay reasonably low prices. Quality Control/Quality Assurance Department The purpose of QC QA departments is to ensure that the desired quality standard is achieved. It also ensures that the processing or fabrication of material conforms to the specific characteristics selected, to assure that the resulting product will in fact perform its intended function. PRODUCT REVIEW Eastern Medikit Ltd’s therapeutic width covers five of the top six categories including Anti-infective, Gastrointestinal, Nutritionals, Cardiovascular, Central Nervous System, Respiratory, Dermatological and others. While anti-infective contribute 56% of the total sales, Eastern Medikit Ltd’s other brands like Simvotin and Storvas in the cardiovascular segment, Serlift in CNS and Revital and Riconia in Nutritionals, are on their way to success in multiple markets. During Jan – Dec 2000, amongst the top products of Eastern Medikit Ltd, Sporidex (Cephalexin) was the Number 1 brand, closely followed by Cifran (Ciprofloxacin). Anti – Infectives Anti- infective has been the main driver of Eastern Medikit Ltd’s sales. The important brands in this category are Cifran (Ciprofloxacin), Sporidex (Ciphalexin), Enhancin (Amoxyclav), Crixan (Clarithromycin), Vercef (Cefaclor), Oframax (Ceftriaxone), Cepodem (Cefpodoxime Proxetil), Zanocin (Ofloxacin), Ceroxim (Cefuroxime Axetil), and Loxof (Levofloxacin). Cifran (Ciprofloxacin) is the key brand in the anti- infective portfolio, with estimated sales of US $ 32 Mn, currently being marketed in 15 countries. Development of Ciprofloxacin once a day has been an important landmark achieved by Eastern Medikit Ltd. The product has been licensed to Bayer. Cifran continues to be a dominant player in the quinolones market in India, China and Russia. Sporidex is another leading brand in Eastern Medikit Ltd’s product portfolio with worldwide annual sales of US $ 35 Mn. It is available in eight different dosage forms including capsules, dry powder for suspension, redimix, dispersible tablets, paediatric drops, soft gelatin capsules, sachet and advanced formulation for twice-daily administration. It is currently marketed in 15 countries. In India, Sporidex is the leading brand with a market share of 36% of the Cephalexin segment. Keflor is available in seven different dosage forms and is the third-largest selling brand for Eastern Medikit Ltd worldwide. The dosage forms list includes capsules, dry syrup, modified release tablets, dispersible tablets, drops and redimix. Enhancin is expected to be the leading product in Eastern Medikit Ltd’s product portfolio with estimated sales of US $ 45 Mn by the year 2005. The product will be rolled out to about 20 important markets during this period. Zanocin, with approximate sales of US $ 10 Mn, is the seventh-largest contributor to Eastern Medikit Ltd’s total sales. Cepodem is currently available in three different countries outside India, and will be rolled out to 13 different countries in the near future. Cardiovasculars Cardiovascular is projected to be the second-best category for Eastern Medikit Ltd. Statins have been the key drivers for this segment. The sale of Simvastatin has grown substantially in the past few years, a trend that is likely to continue in the future. In India, Simvotin (Simvastatin) is the market leader in the cholesterol reducer segment. Another leading brand in this category is Storvas (Atorvastatin). Storvas has been one of the fastest-ever to enter the top-300 brands list of the Indian pharma industry. Other global cardiovascular brands are Covance (Losartan) and Caslot (Carvedilol). Central Nervous System The Central Nervous Segment is one of the important focus areas identified by Eastern Medikit Ltd, with Serlift being the key brand. In India, Serlift is number 1 amongst Sertraline brands. New product introductions will be drivers of growth in this category. Gastrointestinal Currently, gastrointestinal drugs are the second-largest category for Eastern Medikit Ltd. The key brands in this category include Histac and Romesac. The current annual sales of Ranitidine are estimated to be around US $ 16 Mn and the product is marketed in more than 20 countries. Rheumatologicals The first generation Cox-2 inhibitors principally drive worldwide growth in rheumatology. This category is estimated to grow exponentially for Eastern Medikit Ltd, with brands like Celecoxib. This year, Rofibax (Rofecoxib) introduced in India, has established itself as a leader in the Cox-2 inhibitor category and has overtaken all Celecoxib brands. It has been identified as a key Global brand for the future. Nutritonals Nutritionals have been a major contributor to Eastern Medikit Ltd’s sales. Two of the important products in this category are Revital and Riconia. With annual sales estimated at about US $ 10 Mn, Revital contributes a significant share of total sales. It is a leading brand in India and has done exceedingly well in some parts of the world as an OTC product. Dermatologicals The dermatology category is mainly driven by India region and is likely to show a good growth pattern in the future. Some of the key brands doing well in this segment are Mobizox, Silverex, Moisturex, etc. INTRODUCTION TO CAPITAL STRUCTURE THEORY AND ANALYSIS This is a Report on the ‘Capital Structure and Capital Expenditure of Eastern Medikit Ltd Laboratories Ltd. ’. The purpose and scope of the project can be listed as: * Understanding the organizational structure and functioning of Eastern Medikit Ltd Laboratories Ltd. * Analysing and comparing the financial health of the firms in the Indian Pharma Industry. * Identifying and analysing the capital structure of Eastern Medikit Ltd. * Conducting a Review of the Capital Expenditure done at Eastern Medikit Ltd Laboratories Ltd. Identifying loopholes in the functioning and in the area of study and recommending the suggestions for the same. Following are the limitations of the study: * Balance sheets of only 3 years have been studied but the company is in operation for so many years. * Only specific tools (i. e. ratio analysis) have been used for data analysis, while so many other tools are also there. * Organizational rules regulations. * Availability of data. Financial figures for 2008 of Eastern Medikit Ltd were not available. * Limitations of the financial tools used. Methodology The methodology adopted for the study was as follows: * Familiarization, examination and evaluation of the procedures relating to capital structure and capital expenditure. * Collection of relevant data form company records and cross checking of this data. * Calculations of financial ratios, parameter and norms, as also their financial implications. Broadly the data were collected for the report on the project work has been through the primary and secondary sources. The primary data is collected by various approaches so as to give a precise, accurate, realistic and relevant data. The main goal in the mind while gathering primary data was investigation and observation. The ends were thus achieved by a direct approach and personal observation from the officials of the company. The other staff members and the employees were interviewed for the sake of maintaining reasonable standard of accuracy. The secondary data as it has always been important for the completion of any report provides a reliable, suitable equate and specific knowledge. The annual reports, the fixed asset register and the Capex register provided the knowledge and information regarding the relevant subjects. The valuable cooperation and continued support extended by all associated personnels, head of the department, division and staff members contributed a lot to fulfil the requirement in the collection of data in order to present a complete report on the project work. Capital Structure: Theory and Analysis Capital Structure Financing decisions involve raising funds for the firm. It is concerned with formulation and designing of capital structure or leverage. The most crucial decision of any company is involved in the formulation of its appropriate capital structure. The best design or structure of the capital of a company helps the management to achieve its ultimate objectives of minimising overall cost of capital, maximising profitability and also maximising the value of the firm. The capital structure decision of a firm is concerned with the determination of debt equity composition. Capital structure ordinarily implies the proportion of debt and equity in the total capital of a company. The term capital may be defined as the long – term funds of the firm. Capital is the aggregation of the items appearing on the left hand side of the balance sheet minus current liabilities. In other words capital may be expressed as follows: Capital = Total Assets – Current Liabilities. Further, capital of a company may broadly be categorised into equity and debt. The total capital structure of a firm is represented in the following figure: Established companies generally have track record of their profit earning capacity, which helps them to create their creditworthiness. The lenders feel safe to invest their funds in such companies. Thus, there is ample scope for this type of companies to collect debt. But a company cannot freely i. e. without having any limit. The company must have to chalk out a plan to collect a debt in such a way that the acceptance of debt becomes beneficial for the company in terms of increase in EPS, profitability and value of the firm. If the cost of capital is greater than the return, it will have an adverse effect on company’s profitability, value of the firm and its EPS. Similarly, if company is unable to repay the debt within the scheduled period it will affect the goodwill of the company in the credit market and consequently may create problems in future for collecting further debt. Other factors remaining constant, the company should select its appropriate capital structure with due consideration. Capital structure involves a choice between risk and expected return. The optimal capital structure strikes the balance between these risks and returns and thus examines the price of the stock. Significant variations with regard to capital structure can easily be noticed among industries and firms within the same industry. So it is difficult to generate the model capital structure for all business undertakings. The following is an attempt to consolidate the literature on various methods to suggested by researchers in arriving at optimal capital structure. Notations used: * V = value of firm * FCF = free cash flow * WACC = weighted average cost of capital * rs and rd are costs of stock and debt * re and wd are percentages of the firm that are financed with stock and debt. Operating and Financial Leverages The term leverage refers to the ability of a firm in employing long – term funds having a fixed cost, to enhance returns to the owners. In other words everage is the employment of fixed assets or funds for which a firm has to meet fixed costs or fixed rate of interest obligation irrespective of the level of activities attained or the level of operating profit earned. Higher the leverage, higher the profits and vice – versa. But a higher leverage obviously implies higher outside borrowings and hence riskier if the business activity of the firm suddenly takes a dip. But a low le verage does not necessarily indicate prudent financial management, as the firm might be incurring an opportunity cost for not having borrowed funds at a fixed cost to earn higher profits. Operating Leverage Operating leverage is concerned with the operation of any firm. The cost structure of any firm gives rise to operating leverage because of the existence of fixed nature of costs. This leverage relates to the sales and profit variations. Operating Leverage =| Contribution| | EBIT| Contribution = Sales – Variable Costs EBIT = Earnings Before Interest and Taxes. Disadvantages of Operating Leverages * The reliability of operating ratios rests to a large extent on the correctness of the fixed costs identified with a product. Faulty apportionment would distort the usefulness of the ratio. The published accounts does not give details of the fixed cost incurred and the contribution from each product and for an outsider it is difficult to calculate the firm’s operating leverage. Firm’s cost structure and nature of the firm’s business affects operating leverage. A degree change in sales volume results in more than proportionate change (+/-) in ope rating (or loss) can be observed by use of operating leverage. Financial Leverage This ratio indicates the effects on earnings by rise of fixed cost funds. It refers to use the use of debt in the capital structure. Financial leverage arises when a firm deploys debt funds with fixed charge. The ratio is calculated with the following: * Earnings before interest and tax / Earnings after interest – The higher the ratio, the lower the cushion for paying interest on borrowings. A low ratio indicates a low interest outflow and consequently lower borrowings. A high ratio is risky and constitutes a strain on profits. This ratio is considered along with the operating ratio, gives a fairly and accurate idea about the firm’s earnings, its fixed costs and the interest expenses on long term borrowings. Earnings per Share – Higher financial leverage leads to higher EBIT resulting in higher EPS, if other things remain constant. Financial leverage affects the variability and expected level of EPS. The more debt the firm employs the higher its financial leverage. Financial leverage generally raises expected EPS, but it also increases the riskiness of securities as the debt / asset ratio rise s. Financial Leverage =| EBIT| | EBT| EBIT – Ea How to cite A Global Overview of a Fast Relief Market, Papers

Statute for the Taxation Benifits for FBTAA

Question: Describe about the Statute for the Taxation for Benifits for FBTAA. Answer: The relevant statute for the taxation of the various fringe benefits is FBTAA, 1986 (Fringe Benefits Tax Assessment Act 1986). The FBT(Fringe Benefit Tax).on various benefits that are doled out by Periwinkle to the employee (Emma) would be calculated with reference to this statute as shown below. Car fringe benefit Periwinkle purchases a car in the year 2015 with a cost of $ 33,000. This car is provided to Emma (employee) who is authorised to use the vehicle as part of her personal use and hence as per Section 8, FBTAA 1986, car fringe benefit in indeed been provided to Emma for FY2016 and FBT liability on the same has to be accounted for by Periwinkle (Wilmot, 2012). Applicable formula for computation of taxable gross up value of Car Fringe Benefit (Section 39F) (Barkoczy, 2015). The computation of the various inputs required above is shown below. Capital value of Car Vehicles acquisition cost in 2015 $ 33,000 Repairs cost incurred in FY2016 $550 Vehicles capital amount =( Acquisition cost Repairs Cost) = (33000 - 550) $ 32,450 Statutory Percentage The statutory percentage essentially is driven by the factors identified below (Sadiq et. al., 2016). Vehicles year of purchase The usage (personal nature) by the employee during the time, the vehicle was available for use in year under assessment. For a year of purchase later than 2011 and usage by employee for personal reasons not to be in excess of 15,000 km, the statutory percentage would be 20% (Gilders et. al., 2016). This is the case here where both conditions are satisfied and hence statutory percentage applicable in 20%. Usage Days Deductions from the year would be made for the following. Car made available for use on May 1, 2015 and hence a deduction of 30 days for April 2015. Car was sent for annual repairs and hence a deduction of 5 days for the same Hence, applicable days = 365 30 5 = 335 Gross up factor The applicable factor here would be 2.1463 as car is Type 1 good on which GST applies (ATO, 2016). Taxable value of Car fringe benefits = (Capital value of vehicle Days for which vehicle available for use Statutory percentage gross up factor ) =( 32450 0.20 2.1463) $12,593.80 FBT payable by Periwinkle (FBT @ 49% for FY2016) =( 12593.80 0.49) $6,171 Loan fringe benefit The case information states that Periwinkle has provided a loan to Emma to the tune of $ 500,000. The interest rate charged on this amount would be 4.45% pa which is lesser than the corresponding RBA prescribed rate of 5.65% pa as given by TD 2015/8 (ATO, 2015b ). Loan fringe benefit would arise in this case, as the interest charged by employer is lesser than the RBA prescribed rate and the magnitude of the interest rate savings would be the quantum of loan fringe benefit (ATO, 2015a). The taxable value of this benefit is computed in the manner shown below. Interest cost assuming lending at RBA rate or 5.65% pa =(0.0565 500000) $28,250 Interest cost assuming lending at rate charged by Periwinkle =(0.0445 500000) $ 22,250 Interest savings for the whole year =( Interest cost @ RBA rate - Interest cost @ offered by Periwinkle) =(28250 - 22250) $ 6,000 Interest extended for days in FY2016 (September 1 to March 31) 213 Taxable value (loan fringe benefit) = (6000 ) $3491.80 Loan and related payments are Type 2 goods as GST does not apply, hence the relevant gross up value for FY2016 is 1.9608 (ATO, 2016). Grossed up value (Loan Fringe Benefit) =( Taxable amount Gross up factor) =( 3491.8 1.9608) $ 6,846.72 FBT payable by Periwinkle =(0.49 Grossed up value) =(0.49 6846.72) $3,354.9 It is noteworthy that deduction to employer is available if the amount extended to loan is used by the employee for incremental income. In the given case, Emma deploys 90% of the borrowed funds or $ 450,000 to purchase a holiday home which is capable of producing income and Emma may use it for that purpose thus ensuring deductions for Periwinkle. However, for the residual amount of $ 50,000, no deductions are possible for Periwinkle as it has been given by Emma to her husband for his use (Nethercott, Richardson Devos, 2016). Expense fringe benefits (Bathtub) Based on the information provided, Emma would receive expense fringe benefit as she was sold the bathtub at a discounted price by Periwinkle (Barkoczy, 2015). Bathtub cost of production $700 Retail selling price of bathtub $2,600 Offer price to Emma for bathtub $1,300 Expense fringe benefit =( Retail selling price- Offer price to Emma for bathtub) = ( 2,600 1,300) $1,300 Gross up factor (FY2016 Type 1 good) (ATO, 2016) 2.1463 Grossed up amount =( Expense fringe benefit 2.1463) =( 1300 2.1463) $4,078 FBT payable at the end of employer =( Grossed up amount 0.49) $1,998 (b) Usage of $50,000 by Emma for generation of share trading Now, Emma does not divert $ 50,000 towards husband and instead uses it herself and hence Periwinkle could not claim tax deduction on the same which would lower the FBT liability as shown below (Barkoczy,2015). Interest payable at RBA rate on $ 50,000 =(0.0565 50000) $2,825 Interest payable at Periwinkles rate on $ 50,000 =(o.0445 50000) $ 2,225 Hence, savings in interest =(2825 - 2225) $ 600 Thus, FBT deduction for employer =(Interest savings on $ 50,000 0.49) =(600 0.49) $294 References ATO 2015a, Loan Fringe Benefits, Australian Taxation Office, Available online from https://www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/Types-of-fringe-benefits/Loan-fringe-benefits/ (Accessed on September 20, 3016) ATO 2015b, TD 2015/8, Australian Taxation Office, Available online from https://law.ato.gov.au/atolaw/view.htm?docid=%22TXD%2FTD20158%2FNAT%2FATO%2F00001%22 (Accessed on September 20, 3016) ATO 2016, Gross-up rates for FBT, Australian Taxation Office, Available online from https://www.ato.gov.au/rates/fbt/?page=3 (Accessed on September 20, 3016) Barkoczy,S 2015.Foundation of Taxation Law 2015,7th edn, CCH Publications, North Ryde Gilders, F, Taylor, J, Walpole, M, Burton, M. Ciro, T 2016. Understanding taxation law 2016, 9th edn, LexisNexis/Butterworths. Nethercott, L, Richardson, G Devos, K 2016, Australian Taxation Study Manual 2016, 4th ed., Oxford University Press, Sydney Sadiq, K, Coleman, C, Hanegbi, R, Jogarajan, S, Krever, R, Obst, W, and Ting, A 2016,Principles of Taxation Law 2016,9th edn, Thomson Reuters, Pymont Wilmot, C 2012, FBT Compliance guide, 6th edn, CCH Australia Limited, North Ryde

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Robert Frosts Poetry

Nonsmoking Laws essays

Nonsmoking Laws essays Currently in the United States, there is no national ban against smoking in public places. Each state is enforcing its own regulations on where cigarettes can be used. However, in the past couple of decades, the number of regulations against smoking has been increasing. Smoking was banned on domestic flights in 1989. In 1998, the state of California passed a law against smoking in bars and restaurants. Since then, other states such as Delaware, New York, Florida and Connecticut have also legislated against Are these laws constitutional' Should all smokers have to stow their cigarettes in public places because of those individuals who do not smoke' The issue of whether or not to have these anti-smoking laws is not an easy one. For nonsmokers, these regulations are gladly accepted. Such bans mean that anti-smokers will breathe in a lot less smoke at work and other public areas. It also means that they no longer have to worry about health problems associated with second-hand smoke. To the contrary, the reasons to allow cigarette smoking in bars and restaurants can be just as persuasive. In a country where personal freedom is so crucial, is it legal to make everyone give up smoking' What about the hypocrisy involved' Why should cigarette smoking be banned in public places, and the drinking of alcohol, which is just as unhealthy and addictive, be allowed' Also, many bar and restaurant owners are being negatively affected by these anti-smoking laws. The history of cigarettes and tobacco go hand-in-hand with the history of the United Statesactually, way before the states were even born. It is believed that tobacco started growing in the Americas around 6,000 BC. However, it was not until around 1,000 years BC, perhaps the Mayan civilization in Central America, that people started to use the leaves of the plant for medicinal purposes to care for wounds and reduc...

Article summary Research Paper Example | Topics and Well Written Essays - 750 words

Article summary - Research Paper Example The study employed a venue-based sampling strategy for recruitment of respondents during randomly selected blocks of time. Research staff gathered the data on the basis of a master schedule of monthly activities that conducted throughout metropolitan Atlanta. The sampling frame included 25 locations including churches, bookstores, educational forums, community meetings, and special events such as family health fairs. Three hundred seventeen people were invited to participate, and 223 provided written informed consent (response rate: 70%). The research employed SPSS 17.0 (SPSS Inc, Chicago, IL) and SAS 9.2 (SAS Institute, Inc, Cary, NC) for analyses. Descriptive statistics and cross-tabulations were also generated for variables of interest. In addition, bivariate correlations were also generated to explore key relationships. An exploratory factor analysis was conducted, and resulting scale-reliability estimates were generated. We determined that a Cronbach’s ÃŽ ± reliability estimate of ≠¥ 0.70 would support reliability of each subscale. A multivariate logistic regression models were also used to analyze the independent contributions of variables. Quantitative result revealed that twenty two percent (n=50) of the parents had had their children vaccinated for seasonal inï ¬â€šuenza in the previous 3 months. The overall seasonal inï ¬â€šuenza vaccine-acceptance rate for children was 40.8% (n = 91). Also, the overall acceptance rate of obtaining H1N1 vaccine within 90 days for children was a low 35.9% at n = 80. The significant factors that were identified that could predict predicted H1N1 vaccine acceptance for children included lack of insurance (OR: 3.04 [95% CI: 1.26 –7.37]), higher perceived child susceptibility to H1N1 (OR: 1.66 [95% CI: 1.41–1.95]), prioritizing children over other family members for vaccination (OR:3.34 [95% CI: 1.33– 8.38]), and having the belief that H1N1 is a greater community

Review of the Economic Development Theories in Africa Essay

Review of the Economic Development Theories in Africa - Essay Example This paper offers an analysis of practical implementation of the four models of development in African countries. These models includes Harrod-Domar Model, Exogenous Growth model, Surplus Labor Model, and Harris-Todaro Model. Economic development theories and models are built on three main blocks; the saving function, the production function and labor supply function. Growth rate and saving function are equal to s/AY (where s is the saving rate and AY is the output ratio). South Africa is one of the developing countries in Africa that has implemented the Exogenous Growth Model since it has acknowledged the inclusion of technology and innovation in its plans. This model explains the importance of technological change (and capital accumulation in an economic growth. In Ethiopia Harrod-Domar model applies where high population growth rate is constraint to the rate of technological change. Harrod-Domar model outlines an economic function relationship in which the â€Å"growth rate of gross domestic product (g) depend directly on the national saving ratio (s) and inversely on the national capital/output ration ratio (k) Libya is one of the developing countries in Africa with the highest income per capita GDP, however, most of its population still remain poor and unemployed because of the rural-urban migration in accordance to the Harris-Todaro Model. This is a theory of rural-urban migration and it is strives to address the high rates of unemployment problem issue in the developing countries (Ezeala-Harrison,p3). Rural to urban migration is mainly fueled by the creation of more employment opportunities in the urban areas than the rural areas. This is the reason why most of the Africa’s developing countries such as Kenya have introduced policy of rural industrialization and development to help deal with the problem of high population and unemployment rates in the urban areas. Creation of more industries and other employment opportunities in the rural areas has attracted more people to the rural areas and this is one of the policies required for a balanced development in any country. In developing countries such as Algeria and Tunisia most of the citizens move from their rural homes to urban areas in search of education, employment and high living standards. Some people are also driven away by the poor status of their lands which are unproductive. The current surveys show that about 53 per cent of the populations of Kenya, Tunis, Algeria and South Africa reside in the urban areas. Rapid urban growth rate in the current economic status of the developing countries is a strain to the level of national and local governments to provide basic necessities such as electricity, sewerage, water and adequate health facilities. In such situations, squatter settlements and over crowded slums begin sprawling up. In a country like Kenya over-crowded slums are the homes to millions of the citizens. In most developing countries, this growth rate reflects rural crisis other than urban-based development (Ezeala-Harrison, p5). Harrod-Domar Model Harrod-Domar model outlines an economic function relationship in which the â€Å"growth rate of gross domestic product (g) depend directly on the national saving ratio (s) and inversely on the national capital/output ration ratio (k) (Jurgen & Paul, p257). Mathematically it is expressed as g= s/k. This equation derived its name from two economists (E.V Domar of U.S and Sir Roy Harrod of Britain) who proposed it. This th eory has been majorly utilized by the developing countries in planning their economy in the early post wars. For a targeted growth rate to be realized, a required growth rate must be set. Countries which are unable to set this require savings can resort to a jurisdiction for borrowing from international agencies such as International Monetary Funds and World Bank. Most of the African countries are developing countries which are unable to set the required savings to meet the targeted growth rate. They therefore resort to borrowing from international agencies. Huge debts are disadvantages to developing countries because of the higher interest rates and poor credit (Jurgen & Paul, p257). Problems usually a rise when these countries make irregular loan payment and underestimate the project cost. Every country

William Shakespeare's Twelfth Night Essay Example | Topics and Well Written Essays - 1250 words

William Shakespeare's Twelfth Night - Essay Example The role of Viola is a servant that perfectly demonstrates the willing service she will offer in her role being a wife. From Viola's position as wife of Orsino presumes an erotic demand that includes Viola's unselfish love and the contentment of gender-blurring making it noticeable the erotic possibility within the unequal power relationship inherent in condition of service itself. Whereas lots of critics have outlined fictitious plots of women concealed as boys to serve their male beloveds, the absolute range and power of these erotic relationships implies that Twelfth Night depicts an existing matter of social relations in the early contemporary family. The Malvolio plot is an intricate apparatus for the managing of affairs between upper servants and their employers. The Twelfth Night may have been making the most out of the scandal of an underground social practice. This is for because of the apparent signification of passionate meanings through certain kinds and colors of clothing and the circulation of indistinct verse with equally indistinct handwriting. Inside Olivia's household is the characterization of conspiracies and sexual liaisons. The Twelfth Night play tolerates a lot of lavishly erotic interactions that remains noticeably insensitive to Malvolio's desire. Malvolio is much more ridiculous for wanting to marry Olivia than is Olivia for wanting to marry Caesario. Moreover, Twelfth Night draws a line that connects acceptably arousing erotics of service and a social taboo. Malvolio's desire for power created a threat on both social and symbolic register. The character that Malvolio plays performs an ambitious individualism that will eventually be successful in clearing out an ideology of service at the heart of other employer-servant relationships in the early modern culture in his humorless desire for power over others along with his self-interest that lurk behind an submissive faade. Erotics of service have traversed the boundaries of social standards at a certain degree. Cultural anxieties do not essentially show a direct relationship with the degree of threat involved. Albeit a considerable number of women are essentially engaged in sexual acts with their male servants, the opportunity for erotic intrigues in households became part of a cultural fantasy. With their differences in position, Olivia and Malvolio's sexual connection is considered impossible within the society. From the confusing transition from feudal to capitalist economies, from the related decline in the status of servants, and from the fluidity of their status within individual households, all of these shaped the erotics of service in the early modern household. Furthermore, the Twelfth Night portrays a potent strategy of gaining dominance in a household and a depiction of the early modern culture's deepest fears as the ideology of service, so important to a neo-feudal hierarchy based on rank and class, showed signs of tension. As a servant, Malvolio pulled off a particular degree of glory and good affluence through his great effort of serving as a steward of great noble household accounting to his trustworthiness especially to his mistress. Despite the fact that his deeds designates a severe punishment, Malvolio's effort was really improper

International Labour Standards

International Labour Standards Module -International Perspectives on Industrial Relations QUESTION: Some commentators have argued thatthe adoption of labour standards would threaten the trade prospects of developing countries. Critically evaluate this claim and discuss the policyimplications. In this essay, it is explained that ILO after its foundation following World War One aimed at protecting the fundamental rights at work, creating and securing decent work opportunities for men and women, providing social protection to all the parties concerned and encourage social dialogue. To achieve its aim, ILO works very hard to achieve core labour standards through its member states by giving funds and encouraging them to implement core labour standards and by punishing and discouraging the member states who violate core labour standards. It also, through its campaigns tries to link World Trade Organization with the core labour standards to put extra pressure on the states which are not complying with the set standards. ILO also encourages the member states that they should ratify the convention as after their ratification it becomes the law of the government. ILO has been very active in creating many conventions and they have been trying very hard to encourage countries to have declaration which constitute better policy implications to promote core labour standards in developed and developing countries. It is also explained that how growth of trade is affecting core labour standards and its effect on the particular economy and job sector by giving empirical analysis of developed countries and developing countries. In the case of developed nations Japan and United States were thought of. While doing bilateral trade agreement each country should respect their domestic labour standards and each country while having trade with each other should have high labour standards. In the end, it is explained that developing countries should pay special attention to implement core labour standards and at the same time should take great care while implementing them according to their current domestic or local situation. International Labour Standards and Trade Prospects International labour organization was founded in 1919 after the First World War. Its main aim is to promote working rights, social protection, decent employment opportunities and to deal with work related issues via negotiations and dialogues. In the year 1946, the International Labour Organization became the first specialized agency of the UN. Today, it has 178 members in six continents. It is the only tripartite agency which brings together government, workers and employers to formulate and shape up the policy and programmes. There are four main objectives which ILO is determined to achieve and these are as follows:  § To encourage standards and fundamental principles and rights at work  § To provide vast opportunities for men and women to earn living by securing decent employment  § To provide social protection for all parties concerned  § Strengthen tripartism and social dialogue Source: http://www.ilo.org/global/About_the_ILO/langen/index.htm The ILO is the global body responsible for drawing up and overseeing international labour standards. In todays globalized economy, international labour standards are very important tool in ensuring the growth of the global economy which provides benefits to all. â€Å"The rules of the global economy should be aimed at improving the rights, livelihoods, security, and opportunities of people, families and communities around the world.† (World Commission on the Social Dimension of Globalization, 2004) International labour standards are made with a view to promote opportunities for women and men to obtain decent and productive work in an atmosphere of freedom, equity, security and dignity. The development of the labour standards occurred without international coordination before the First World War and these agreements only concerned with the migrant people from different countries, although they were actually made after the formation of International Labour Organization in 1919. ILO is working very hard to implement core labour standards throughout the world. Core labour standards are those standards which are so basic and universal and can be implemented in all member states irrespective of the economic development of member states. These core labour standards are those which are also described as ILOs four main objectives as mentioned earlier. To achieve these standards ILO held so many conventions since 2006. ILO conveyed 186 conventions and discussed various issues like women working after dark and holiday pay etc. Member states are not required to ratify all conventions but ILO emphasizes member states for ratification of the conventions. Because after the ratification, it becomes a law even for the government who approved of it and thats why they are reluctant to ratify the law although they agree in principle with the law. In order to achieve core labour standards ILO stresses on its publications and condemns those who violate these standards. It puts pressure on the countries which ratify the conventions but are not complying with the law. It has no official authority to punish the state which violates these core labour standards but a tripartite representative can make a complaint and ILO can only do investigation and report its findings. The failure on part of implementation of core labour standards universally led to a suggestion that Core labour standards should be linked with WTO so that it can be used as a tool to enforce core labour standards (Brown, 2001). According to the ILO Constitution (2006c), â€Å"the failure of any nation to adopt humane conditions of labour is an obstacle in the way of other nations which desire to improve the conditions in their own countries.† ILO is having major problems in the implementation of core labour standards mostly in the developing countries as they are prone to labour rights abuses, with minimum wages, open to child labour exploitation and where the core labour standards are not entirely protected. ILO is working very hard to encourage the developing countries to follow the footprints of developed nations in implementing the core labour standards. Although improvement of core labour standards is essential for the growth or prosperity of a particular country but it is also counterproductive if these core labour standards are introduced in trade agreements as the countries who have comparative advantage in labour intensive goods would not be able to export their goods and therefore its growth and social development will slow down in turn. If a country has low labour standards and by applying trade sanctions it would be inefficient as there would be no trade labour linkage as there is violation of core labour stan dards for example, child labour and forced labour occurs in small, domestic or family firms who have nothing to do with the trade as they are not exporting anything and trade labour linkage is a social clause only limited to trade-impacted products (Robert C. Shelburne, Wage Differentials, Monopsony Labor Markets, and the Trade-Labor Debate, 19 Journal of Economic Integration 1 (March 2004), pp. 131-161.) On the contrary, the trade labour linkage could also be used indirectly when small firms which have nothing to do with the exports subcontracting with the exporting firms which indirectly contribute to the competitiveness of the exposed firms (Peter Morici and Evan Shulz, Labor Standards in the Global Trading System) (Washington, D. C.: Economic Strategy Institute, 2001). Violation of core labour standards can affect trade flows in two ways firstly, by decreasing wages competitiveness is reduced and secondly, child and forced labour will lead to an increase in unskilled labour but it can give developing countries comparative advantage in labour intensive goods and thus increase or boost exports. In 1947, Havana charter was laid down as a link between international trade and labour standards. The purpose of this charter is that all member states should recognize the importance of core labour standards related to their productivity and enhance labour standards within its territory. Due to failure of its ratification from the member states the International trade organization had not been created instead General agreement on Tariff and Trade (GATT) was used as a substitute (GATT Article XX (e)). When World trade organization was only two years old, Singapore ministerial declaration was adopted on 13 December, 1996 and due to absence of consensus again labour trade linkage was denied. Hence, ILO was the only body or organization to tackle labour standards. The difference between Havana Charter and Singapore declaration is that in Havana Charter they recognize that trade disputes are caused due to labour standards in different member states whereas in Singapore Declaration trade related labour standards should be adopted but it should be counterproductive as it prevents trade and distorts comparative advantage for labour intensive developing countries. After the Singapore declaration, ILO set up a world commission on the social dimension of globalization (the final report: A fair globalization Creating opportunities for all) (Geneva: ILO, February 2004). Trade theorists have always argued that growth of trade between developed and developing nations will lead to job losses of unskilled labour in developed countries whereas job gains of unskilled labour in developing countries but the problem is that the job gains of unskilled labour in developing countries is quite high as compared to job losses of unskilled workers in developed nations [Collins, (1998) Machin and Van Reenan, (1998) and Learner, (1998)]. Many countries while doing their bilateral trade, respect the core labour standards. In the U.S Trade Act of 2002, the 6th objective is â€Å"to promote respect for workers right and the right of the children consistent with core labour standards of the ILO.† While engaging in the bilateral trade agreements, every nation should respect the domestic labour standards and must possess high labour standards. In case of any disputes, there is specific institution which has the power to impose sanctions in case of serious flaws in relating to labour standards (International Economics Policy Briefs PB-5; Washington D. C.: Institute of International Economics, April 2001). In December 1998, Mercosur countries (Brazil, Argentina, Paraguay, and Uruguay) adopted a social declaration about promotion and respect of ILO core labour standards. Similar provisions can be found in most of the new regional trade agreements. Developed countries also impose labour standards criteria within the Generalized System of Preferences (GSP) and the World Trade Organization, Enabling Clause, which allows nonreciprocal preferences in favour of developing countries. The European Union also proposes special incentive arrangements for the protection of labour rights, which may be granted to countries whose national legislation, incorporates the rules adopted in the ILO conventions. In order to understand the trade impact of labour standards, empirical analysis of trade manufacturers between developed countries and developing countries will be used. The developed countries in this analysis are Japan and U.S and Six developing countries from Asia. The methodology consists of main items of export and import of each of the countries concerned and classified as export-oriented, import-competing, food, beverage and tobacco, petroleum and related and others and comparative analysis of changes in employment and wages in different categories of industries. Japan and United States are the nations which mainly export skill intensive manufacturers to the developing nations and import labour intensive producers from those nations. Employment in import-competing industries reduces due to growth in trade with the developing countries whereas employment will increase in export orientated industries. As import competing industries are more labour intensive than export-orientated industries therefore the employment of skilled worker will rise and so there wages in developed nations and demand for unskilled labour will fall as a result. Therefore, the share of import competing industries will decline in Japan and U.S whereas the export-orientated industries will either incr ease or remain at stagnant level. Developing countries are expected to export labour intensive manufacturers to developed countries and import skill intensive manufacturers to them. Growth of trade with developed countries should increase the labour intensive industries in developing countries and decrease the skill intensive industries in total manufacturing sector (International Labour Review, Vol.139 (2000), No.3). Therefore, the demand for unskilled labour will increase and the demand for skilled labour will fall thus reducing the wage difference between the skilled and unskilled labour will fall {World Bank (1997)}. Growth of Trade affects employment in the import-competing developed countries and in contrast it stimulates employment in all sectors of manufacturing industries in developing countries. This is because the growth of trade will give foreign exchange to developing countries which obviously they need for their prosperity or economic growth and their income elasticity of demand for import competing is high in developing countries whereas it is low in case of developed countries (Chenery and Strout, 1966). It is presumed that rich and developed countries are more towards international labour standards than developing countries. The violation of core labour standards in developing countries will result in economic distortion and hence lower the national income of developing countries. These violations can be in respect of child labour, gender, racial or other discriminations which in turn risk physical integrity and health (Sandra Polanski, Trade and Labour Standards, A Strategy For Developing Countries (Carnegie Endowment for International Peace, 2003), at ). If the developing countries want to invest in capital accumulation they need to raise their labour standards which in turn will eradicate child labour and other discriminations which can trigger growth of the economy (the pioneer work, Robert Lucas, On the mechanics of economic development, Journal of Monetary Economics 22 (1988), pp. 3-42). Many authors have argued that higher labour standards in developing countries will increas e the demand for unskilled labour as they are labour intensive and will increase the wages of formal employment, discourage foreign and domestic investment and it may become an obstacle for economic growth of a developing country (Singh. A and Zammit. A, The global labour standards controversy: Critical issues for developing countries) (Geneva: South Center, 2000). If the developing countries adopt higher labour standards for example, reduction of child labour then it might have a negative effect on the economy as some of developing countries people are living below the poverty line and if child labour is restricted then it might have a way to other social problems like starvation, prostitution, street labour etc. So, the developing countries must take great care while implementing policies as such sudden policies might have negative effect on the social life of people living in those countries so they must take into account the local or domestic condition into account. On the contr ary, the disappearance of child labour and compulsory education in developed countries like U.S and Britain have very significant effect on their economies as restriction on child labour would increase the employment opportunities for adults and with compulsory education they can specialize in some field or sector by which they can increase their income. So, labour standards can play an important role in promoting economic growth for example, with the improvement of labour standards in developing countries like Bangladeshi garments firms, Pakistani soccer ball manufacturing and West African cocoa production etc, all these industries are growing. In turn they are playing an important role in the growth of their economy respectively (Kimberly Elliott and Richard B. Freeman). Conclusion The absence of core labour standards in World Trade Organization official text other than Singapore Declaration has reinforced the ILO legitimacy. The ILO has given a new life to fundamental conventions which are now largely ratified by member states and became a law for the country who ratify them. It contributes to more efficient labour market and respect the comparative advantage of the developing countries. More cooperation between ILO and WTO is needed. Core labour standards are very helpful in increasing capital accumulation which in turn increase the economic growth of developing countries and decrease the distortions and make human capital accumulation easier. The developed countries should encourage developing countries in the form of incremental aid and other concessions in order to improve their labour standards and if fines or duties are imposed the money from fines and duties must be spent on the betterment of labour standards of a particular country. The developing countries are not in a position to benefit from globalization where trade is shifting from primary commodities to manufacturers. The population in developing countries is increasing at much higher rate than developed countries thus developing countries should give special attention towards restraining the inequality of growth between developed and developing countries and this can be achieved if they make their international policy towards the betterment of infrastructure development. The trade growth of manufacturers in developing countries has adverse effect on unskilled labour in developed countries. Skilled and unskilled labour in developing countries has increased their employment and wages due to growth of trade and in general growth of trade has positive and substantial effects. International labour Organization is playing an important part in strengthening labour standards in developing countries and argues that developed world which has high labour standards now had poor labour standards in the past and developing world can choose the same steps in making their standards high and ultimately boost up their economic growth .They should eradicate Child Labor, Forced labor, and all other discriminations. It might take some time as they have to act according to their domestic environment but slowly and surely they will reach at the point where they will have high labour standards thats why ILO proposed substantial relaxation labour standards for the developing world. References: * Clotilde GrangerJean-Marc Siroà «n.(2006), â€Å"Core Labor Standards in Trade Agreements: From Multilateralism to Bilateralism†.Journal of World Trade,40(5),813-836. Retrieved December 1, 2009 * GATT Article XX (e). * http://www.ilo.org/global * International Economics Policy Briefs PB-5 (Washington D. C.: Institute of International Economics, April 2001). * International Labour Review, Vol.139 (2000), No.3  · Joshua C. Hall Peter T. Leeson, â€Å" Good for the Goose, Bad for the Gander: International Labor Standards and Comparative Development† J Labor Res (2007) 28:658-676 * Peter Morici and Evan Shulz, â€Å"Labor Standards in the Global Trading System† (Washington, D. C.: Economic Strategy Institute, 2001) * Robert C. Shelburne, Wage Differentials, Monopsony Labor Markets, and the Trade-Labor Debate, 19 Journal of Economic Integration 1 {March 2004), pp. 131-161. * Sandra Polanski, â€Å"Trade and Labor Standards, A Strategy for Developing Countries† (Carnegie Endowment for International Peace, 2003), at www.ceip.org/pubs * Singh. A and Zammit. A, â€Å"The global labor standards controversy: Critical issues for developing countries† (Geneva: South Center, 2000) * The final report: A fair globalization Creating opportunities for all, (Geneva: ILO, February 2004).