Effect of Unethical Behavior Article Analysis Free Essays

The exploitative practices conduct in today’s business bookkeeping regularly goes unchecked, in light of the fact that the activities legitimately influence the board or administrators, since they for the most part control this bookkeeping subsequently the outcomes. In the event that somebody figures their activity may be in danger they may distort thinks for these individuals from the executives. As it appears glaringly evident, distorting or modifying business records, for example, deals receipts, or messing with reports would be viewed as dishonest practices. We will compose a custom paper test on Impact of Unethical Behavior Article Analysis or on the other hand any comparable subject just for you Request Now As per Anonymous Employee (n. d. , â€Å"Among the most widely recognized untrustworthy business practices of representatives are making significant distance approaches business lines, copying programming for use at home, distorting the quantity of hours worked, or substantially more genuine and illicit practices, for example, stealing cash from the business, or misrepresenting business records. † (para. 1). Among those situational exampleswhich incorporate theft of assets by a bookkeeper from their bosses for monetary benefit additionally incorporate bookkeepers getting corporate weight from their customer to report bogus data and having ridiculous destinations and cutoff times. A bookkeeper may choose to work for an organization despite the fact that an irreconcilable situation may exist. On the off chance that the bookkeeper is owed cash or has a critical stake in a firm, the person in question may not be the perfect individual to set up certain companies’ budget summaries. † (Jacobsen, 2008, para. 10). The Sarbanes-Oxley Act of 2002 is enactment instituted for the assurance from the exploitative practices. The Sarbanes-Oxley Act sets up rules to consider officials responsible for the exactness of their organization’s budget reports. The standards that are set up accomplish harsher disciplines and criminal punishments for rebelliousness. The Sarbanes-Oxley Act gives a valiant effort to guarantee fiscal reports be valid and right. â€Å"Section 406 of the Sarbanes-Oxley Act necessitates that traded on an open market organizations reveal their code of morals for senior money related officials. The Act was intended to advance legit and moral direct; full and exact divulgence in occasional reports; and consistence with appropriate government rules and guidelines. † (Jacobsen, 2008, para. 10). Does the Sarbanes-Oxley Act totally ensure morally right fiscal summaries every single time? References Jacobsen, R. (2008, January). Untrustworthy Behavior In The Workplace. EzineArticles, (), . Recovered from http://ezinearticles.com/?Unethical-Behavior-In-The-Workplace;id=954264 Mysterious Employee.(n.d.).Unethical conduct in the work environment. Recovered from http://www.anonymousemployee.com/csssite/sidelinks/unethical_behavior.php Instructions to refer to Effect of Unethical Behavior Article Analysis, Papers

The Evolution of Genres free essay sample

My suggestion Is for an article based around the speculation that It Is getting expanding hard to classes music because of its advancement after some time. My exposition will be part in to six principle parts; the presentation/proposition, separate examinations of every type, and a last end. As this task is absolutely an aural evaluation of every type, every examination segment will stay isolated, I won't look at sorts or fundamentally remarking on them. Three out of the four given kinds are general classifications by which to name music.Jazz, Classical and Country music all have a long history, wherein the qualities of their music have changed throughout the years. I plan on recognizing these qualities, distinguishing whats changed and, potentially more critically, recognizing whats remained the equivalent, as it typically this that empowers us to differentiate these various types. Lamentably for me, asss Rock is a significant constrained classification and isn't the best sort of decision to help demonstrate my speculations right. We will compose a custom exposition test on The Evolution of Genres or then again any comparative point explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page Fortunately, there were an incredible number of mechanical advances all through the offs and this permitted individuals to turn out to be progressively imaginative and exploratory with their music.So despite the fact that let on an a lot shorter time scale, there still ought to be clear contrasts consistently. I will examine what makes asss rock diverse to asss or asss rock, how innovative/imaginative headways changed the music and whether the keyset is the most exceedingly awful instrument at any point created. The finish of my article will be a concise review of the piece, featuring the exponential development of music today and the production of the new kinds, which permit individuals to try different things with the customary qualities of great genres.This exposition Is going to fill in as an Investigation Into the various attributes that make up the premise of various types of music. These picked types are; Jazz, Country, Classical and asss Rock music. I expect to examinations various melodies/pieces from every one of these sorts and see whether certain trademark attributes are available in the entirety of the pieces from that class. I likewise plan to research whether the qualities by which we recognize a bit of musics kind have changed over time.Jazz I should do whatever it takes not to outrage any Jazz fans by attempting to classifications and fine Jazz music In just two or three hundred words. They show you theres a limit line to music. Be that as it may, man, theres no limit line to workmanship. Charlie Parker (Raiser, 1977, p. 27) Jazz has consistently been an extremely expressive and imaginative class of music and when you consolidate that with a history that ranges longer than a century, it makes it exceptionally hard to stick point Its key attributes. In the event that I needed to show a portion of the qualities of a movement, a timed/swing feel cadence and, conceivably in particular, ad libbed solos.Many Jazz guidelines, for example, Theologies Monks Round Midnight ND Johnny Greens Body and Soul, comply with these standards. Having this foreordained structure furnishes soloists with a lot of opportunity yet could be viewed as prohibitive for other the artists, yet this isn't the situation. The utilization of seventh and ninth assistance give the harmony movement a new vibe, harmony replacements are regularly utilized, usually trio-tone replacements, and changes in key or potentially beat are likewise profoundly appealing and give a huge level of improvisational opportunity. (Wilson, 2002) The music has gotten thick. Folks give me tunes and theyre brimming with chords.I cannot play stitch. .. think a development in Jazz is starting ceaselessly from the regular series of harmonies Miles (Davis, 1958) The inquiry is; are these attributes still noticeable in Jazz music today? Sadly, its difficult to tell. Throughout the years a wide range of Jazz half and half kinds have been made, for example, corrosive Jazz, cool Jazz, free Jazz, Jazz-rock combination, bebop, post-bop, jazz-funk, punk Jazz The rundown goes on. It is uncommon these days for a craftsman to exclusively play one style of Jazz, it is a very various class and it is subsequently essentially difficult to characterize Jazz music today.If constrained, I would state there are two things by which I distinguish Jazz, over a wide span of time, and those are extemporization and instrumentation. Extemporized performances are as yet a major piece of numerous kinds of Jazz, actually, its the whole premise of free Jazz and, albeit a wide range of instruments have been included and removed throughout the years, its not exactly Jazz except if it has a metal segment. Saxophone and trumpet have been the characterizing attributes of Jazz for one hundred years and, I think, they generally will be. Move got the chance to gain proficiency with your instrument. At that point, you practice, practice, practice.And at that point, when you at long last get up there on the bandstand, overlook all that and Just howl. Charlie Parker (Pugnacity, 2006) Country Fortunately for me, blue grass music likewise has a long and rich history. Down home music started in the southern conditions of America in the sasss and was for a long time viewed as hillbillys music and by certain individuals it despite everything is except this isn't the situation. l think it addresses our essential thing sentiments, you know. Of feelings, of adoration, of separation, of affection and abhor and passing and biting the dust, mother, crusty fruit-filled treat, and the entire thing. It covers a great deal of an area, down home music does. Johnny (Cash, 2002) Country music initially advanced from society music and thusly acquired a considerable lot of its qualities. Down home music was initially straightforward; three harmony structures, relatable themes and basic instrumentation made tunes infectious and vital. Likewise with people music, Country music tunes regularly recounted stories with their verses that incorporate characters, discourse, unexpected developments and peaks. Instead of being sung, activity will once in a while be spoken. While now and then down home craftsmen will be the stars of their accounts and sing them from the principal individual, different occasions they will work just as a narrator.Wolfe, 1999) The instrumentation of a nation band we be like that of standard stone or harmonica and steel guitars would help give the music its particular twangs sound. I-IV-V and I-II-V were well known, the pieces were not frequently fundamentally unpredictable as the primary component of the tune was the verses. Down home music has changed significantly throughout the years, considering Taylor Swift is an advanced case of a nation star, youd battle to discover likenesses between her music and that of a customary blue grass music vocalist, for example, Jimmie Rodgers.Instruments, fo r example, the banjo and the fiddle would hill strange in one of Swifts graph besting hits however it very well may be contended that the message and feelings that her melodies provide are that of a blue grass music tune. In a meeting on The Douglas Show in 1971 , Johnny Cash said that blue grass music resembled soul music since it originated from the heart and I believe that cutting edge down home music qualifies by that definition. l think in the event that you stay there and think I need to put this instrument on this melody supposing that I dont individuals will feel that Im in an alternate classification, at that point I imagine that is potentially toppling what you do Taylor Swift (Hansel, 2013)Classical We rather mistakenly generalist old style music. Google characterizes old style music as Serious or regular music that follows since quite a while ago settled standards as opposed to a society, Jazz, or famous convention, by this definition old style music ranges from path back to medieval occasions straight up to present day. While actually, old style music will be music that was formed in the old style period (1730-1820). The music created in this generally brief timeframe complied with a set rundown of characteristics.Classical music had a lighter, more clear surface than its predeceasing time, it used a somewhat contend ensemble, supplanted the some time ago mainstream harpsichord with the as of late grew piano and was predominantly homophobic. Looking at ahead of schedule and later old style music by this definition would make for short perusing as, by the idea of having melodic periods, no intense changes happened until the following melodic age (the sentimental period 1815-1910). I respect any music that is played on acoustic symphonic instruments to be old style music.If we were to look at music throughout the years that fits this depiction, the change is enormous. Taking into account that the triton was once thought of as the fallen angels span shows how the assessment of music has changed. A portion of the cutting edge test employments of tonality, amicability, instrumentation and cadence in progress of John Cage or Stravinsky would seem like franticness to any semblance of Beethoven and Bach. l cannot comprehend why individuals are scared of new thoughts. Im startled of the old ones - John Cage (Satellite, 2003) Despite this, old style music is viewed as a type of music for a specific class of people.Traditionally, the main individuals that could stand to go see a live old style execution were affluent and the individuals who were well off were generally white collar class or higher and tragically this disgrace has stuck. Gs Rock You may believe that very little could have changed over the course of about 10 years yet youd not be right. Because of the idea of current life and the exponential development of innovation, new melodic patterns appear to go back and forth in a matter of seconds. The asss was no rose to popularity and some blurred away.The asss saw the creation and ascent of the force melody, groups, for example, Bon Jove and Defy Leopard originally aced the craftsmanship in the early asss which brought about long fruitful professions yet the force song didnt arrive at its top until the last 50% of the asss. By 1987 pretty much every band was actuated to incorporate in any event a couple of numbers on a collection to guarantee not too bad deals. When groups, for example, Skid Row and Poison set up their strength, the force anthem had almost run its course, and a specific tastelessness turned into very ordinary. Pinnacle, 2012) Punk Rock was made in

Protecting the environment free essay sample

One key strategy for shielding the earth from development and the assembled condition is Legislations.These enactments are set up to be followed and on the off chance that they are not it brings about disciplines. There are numerous enactments which just concern nature, for example, Water Act 1989 and Water Resource Act 1989 which are set up to ensure water. In this way, during development substances and refuse won't be permitted to enter any waterways as they can pollute the water which will negatively affect the earth. The Control of Pollution (Amendment) Act 1989 makes it a criminal offense for an individual who is definitely not an enrolled bearer to move controlled waste to or from wherever in Great Britain. It additionally accommodates the seizure and removal of vehicles utilized for unlawful waste removal. This gives a great deal of insurance to the earth because of just enlisted vehicles having the option to convey the waste, these enrolled vehicles can be checked and will take the loss to the fitting spot so the waste is appropriately discarded without making any mischief nature. We will compose a custom paper test on Securing the earth or on the other hand any comparative point explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page There are many European orders concerning the condition that was made by the European Parliament for every individual from the nation creates in the natural guidelines. These European mandates are set up to guarantee the protection of nature for instance dangerous waste must have extra marking on to advise everyone regarding its substance just as records being kept so there is zero chance of the unsafe waste entering the earth. Unsafe squanders as per the European orders are not permitted to be combined to guarantee none of the waste pollutes the environment.Protection y control: Health and Safety Executive (HSE); Environment Agency (EA); nearby specialists (eg ecological administrations, arranging, building control departments)â · The HSE secure the earth from multiple points of view for instance, they accumulate insights, which prompts revelations in the most ideal manners to continue ensuring the earth. They additionally concur industry norms in this way making a standard in whic h everybody will know to keep to for instance asbestos preparing principles, which protects laborers and the earth by permitting just specialists with the significant preparing to finish works including asbestos, as they probably am aware how to securely function with asbestos and discard the waste securely. The HSE additionally help make National and European norms Supporting strategy advancement and implementationâ · Communicating with industry segment partners, including hardware makers, exchange affiliations, proficient affiliations and exchanges unionsâ · Working with National and European bodies in the improvement of guidelines (eg BSI and CEN standards)â · Publishing direction in discussion with key stakeholdersâ · Monitoring wellbeing and security performanceThe Local Authorities ensure the earth by having road laborers who will pass work destinations and guarantee all waste is kept where it ought to be and not littering the lanes. The structure control guarantee that all together for some attempts to occur and any works that will influence any secured tree an arranging application should be taken out which can be rejected hence they are securing the earth and not permitting trees to be chopped down so works can take place.Protection by plan and particular: decrease in vitali ty use; minimisation of contamination; decrease in installed vitality; determination of naturally agreeable/inexhaustible materials; re-utilization of existing structures and sitesThe condition is likewise shielded from development by utilizing plan and detail; this is orchestrated before the works start, as plans must be made to guarantee the structure stage runs as easily as could be expected under the circumstances. Contamination can be limited along these lines as hardware will be utilized to finish an errand and afterward turnt off abstaining from leaving gear running and delivering emanation when it isn't required hence as meager discharges as conceivable will be transmitted. In the event that the construct is overseen appropriately after a decent structure and determination have been made then the implanted vitality ought to be less because of the works continuing effectively and regularly neighborly sustainable materials are utilized. These materials are advantageous to the earth for instance working with these materials can; secure the biological system, diminish the measure of waste delivered that is gainful as it stops territories being demolished by contamination, preserve water alongside other characteristic assets and furthermore help to reestablish them which is significant in ensuring the environment.Protection by the board: basic natural effect evaluations (EIAs); improved administration of building destinations; clear strategies and goals (eg decrease in wastage, increment in reusing, clamor the executives, residue and soil control); sharing of good work on; bringing issues to light; correspondence of informationAnother way the earth can be secured against development is through administration. For example an EIA (ecological effect evaluation) can be taken out, this will give everybody a comprehension of what impacts the development will have on the nearby condition and can prompt activities no being done if the impacts to the earth are excessively extreme. The board is likewise utilized during the structure procedure to diminish the impact on the earth for instance waste will be decreased by the administration requesting the perfect sums and not all that much extra as the extras will cause squander, clamor should likewise be constrained by working between specific hours as to not destroy living spaces for creatures in the neighborhood bunches of creatures don't care for commotion or residue and soil which furthermore can emerge out of building destinations in this way the region must be kept spotless and clean whenever the situation allows and if feasible doors and ways out can be closed to forestall the departure of dust.M2In end, I accept that the entirety of the above s trategies for shielding nature from development and the constructed condition are significant. Enactment is the law behind the entirety of the strategies and without this, it would be simple for building locales to disregard the effect, which they are having on the earth as they would not need to deal with any indictments. Anyway these enactments are incredibly upheld by the HSE, the EA and neighborhood specialists to set benchmarks in which ought to be followed as without these there would be no real way to survey whether a building site is defying the norms or is effectsly affecting the environment.Whilst it is all acceptable having enactment and associations to authorize them an organization need a manner by which they can focus on keeping the earth sound and this is feasible through the methods for having a decent arrangement/spec and structure as once everyone comprehends what they are doing it is much simpler to set up safeguard quantifies and guarantee everybody is keeping to the arrangement to guarantee the works can be finished with low degrees of repercussions on nature. While an arrangement is significant it tumbles down to the board to deal with the everyday development and guarantee the detail is followed and furthermore add to it. The board has the advantage of being in the now and really on location in this way they can watch the development and get where upgrades might be require and uphold these.The best of all the above strategies for cost would be by means of the executives as this is required in any case and paying administrators extra to guarantee the earth is cared for isn't a great deal contrasted with different techniques for instance an enactment costs bunches of cash to get it through government and passed. The control technique is likewise extravagant as it includes an entire association implementing the enactments and indicting individuals. The following most affordable would be the plan and detail technique that would in any case be fairly costly because of the gifted experts which should be paid before the fabricate starts to make structure/spec in which reduces the impact on the environment.The best strategy as I would like to think is assurance by control as without this requirement it would be simple for development to happen and pull off not following any direction and violate the law. As there is control is gets mandatory to follow the enactment or they will be indicted which will make organizations reconsider under the watchful eye of violating any laws. Enactments are successful in any case, without authorization they are simply rules. Plan and detail are additionally extremely viable notwithstanding, the structure and spec can be constrained by the association and changed to suit them not nature. At last security by the executives can be amazingly compelling because of the more active methodology as the administration are nearby anyway they are utilized by the organization and similarly as with structure and spec can be impacted by them and might not have any desire to change certain things as they could be frightful of losing their job.The strategy I consider best for Public discernment must be insurance by the board as this technique includes natural effect overviews appraisals that takes in to thought what neighborhood occupants state in regards to the neighborhood condition and allows them to take a gander at the evaluation so they know about how they will be influenced. Enactments don't have an awesome open discernment as people in general may not totally see how they work. The control strategy may have a dec ent open observation because of them completing things and halting any works that are not following convention be that as it may despite the fact that general society can raise objections they are not as included as they would be with the natural effect appraisal. Structure and determination doesn't include the open a great deal and they will most likely not get an opportunity to see the plans not to mention have a state in them.P5Ex

Big Issue – Interview

How has Big Issue advanced throughout the years and has It had the option to remain consistent with its Orlando/basic beliefs? Establishment Idea 0 less thoroughness; social business visionaries circumvent the world Message has gone out self improvement/working with individuals In the edge Core esteems have been predictable during the time 2.How did you come to be associated with Big Issue? Is it accurate to say that you were enlisted or did you search it out? Inquisitive to comprehend the authoritative fit. Enlisted Brought significant involvement with the business region 0 equipped for extending organizations Stephen carried methodology and center to an extremely business chancy recommendation Walk the discussion/impart basic beliefs and standards 3. Does a foundation like yours effectively consider an AS examination, similar to some other corporation?Running a cause is equivalent to maintaining a business Charities need an operational system so as to develop and convey targets How ever, they are not generally In charge of all components of the as It Is an energetic association absolutely dependent on the accomplishment of the individuals 4. What amount of the present structure is an immediate aftereffect of the AS activities that your supervisory crew has taken? It Is However, a few components are not an immediate aftereffect of the AS In request to get cash from believes, the earth directs that you have to prove what you have done There are prerequisites of the world that regularly abrogate an Internal AS system 5.Are you content with the present structure and how might you want to consider Big To be's AS develop? Need a few people on the ground as they are right now understaffed 6. Technique: What is Big Issue attempting to accomplish? Award brand (training) Brokerage technique Make an important effect on the lives of individuals who are socially and monetarily rejected Solution C] for what is happening in the public eye 7. Abilities/Style/Staffing: What ar e your determination measures for vendors?Skills: Big Issue: IT, HER, framework, columnists, compose, publicize C] venture Vendors: centered Style: Belief in the strategic binding together Shared faith in what we are here to do Tough parent/caring/listening 0 stick with guidelines Realism and great client assistance Staffing: Big Issue: 75 individuals Ruinations/IT/HER); noble cause (25) Vendor populace of 2,000 (need 30 individuals @ not exactly ?request that a year help oversee he sellers) Struggle to get bolster 0 proficient model 0 need more individuals on the ground 8.Systems/Structure: How you do you bolster Big Issue merchants? They have an identification procedure, which is time constrained and expects merchants to check in consistently At each check point, another identification is given to the seller This encourages execution overseeing 9. Common Values: How might you depict the merchant network Vendor people group: set of principles; see estimation of the decision they ma ke to change 0 this can bind together However, there is no characterized motivation; not religious; arranged to place something in

How to Write an Introduction

How to Write an Introduction How to Write an Introduction That Will Hook Your Reader Instantly How to Write an Introduction That Will Hook Your Reader Instantly How many times have you sat down to write your paper and gotten stuck right at the very first intro line? Learning how to write an introduction is a vital component of writing any type of assignment, whether it’s an essay or a research paper. But it’s not always easy. You’ve got your evidence ready to go, your body paragraphs planned out, and your thesis statement built. Now it’s time to work on an introduction to everything that transitions properly into your work. This part is often overlooked and more often than not, students get stuck throwing in generic statements and sensational narratives that might hook the reader, but they don’t communicate your arguments. Sometimes they just aren’t relevant at all. If this sounds like your typical writing process, you’re not alone. That’s why we’re here to help you out. So, without further adieu, let’s dig deep into the lesson and learn how to write an introduction. Introductions Matter When you’re learning how to write an introduction, it’s important to start with the why. Sure, you know every paper needs a good introduction, but you may be wondering why it really matters. The more you understand that, the stronger your writing becomes. This is where you introduce your topic and give the reader a sense of what you’re going to talk about. Think of it like a first impression for your assignment. Just like first impressions matter in a job interview, the first impression of your paper matters, too. You don’t usually get a second chance to make them, so nail it the first time. Simply put, without an introduction to your paper, how is your reader going to know what they’re getting themselves into? Would you really want to read an essay that didn’t really explain what it was about and expected you to just figure it out in the body paragraphs? You wouldn’t, and neither does your reader. Why Learning How to Write an Introduction is Vital For Any Assignment Your introduction indicates the position you’re going to take in the paper. It provides context to set up all of the points you’ll make in your body paragraphs. Think of it like a map to your paper that shows the reader where they’re going. No surprises, no roadblocks just solid arguments and evidence about the main point. So, when it comes to figuring out how to write an introduction, make sure you remember this above everything else. A weak introduction sets the tone that the rest of your paper is going to be dull. If you don’t nail this, the rest of your paper will seem bleak and uninteresting. Not to mention, everything won’t flow the way you think it will and that could lose you some marks. View this post on Instagram ?? A friendly reminder that our GIVEAWAY #2 WIN A FREE ESSAY deadline has been extended to November 27 @ 11:59 P.M. EST. Dont forget to enter!! A post shared by Homework Help Global (@homeworkhelpglobal) on Nov 26, 2019 at 7:18am PST How Long Should My Intro Be? This is a great question, and one of the first things you consider when learning how to write an introduction that fits in properly. Sometimes students will try to stuff the introduction with more words to take up more space so they can reach the page count, but we assure you that your professors know when you do this. The length of an essay introduction should be relative to the length of your paper. If your paper is, say, five pages, your introduction paragraph should be no more than about half a page. Likewise, if your paper is twenty pages, it can be one or two pages long. Your introduction paragraph should be long enough to answer some of the following questions (they may vary depending on the type of assignment you’re writing): ? Why are you writing this paper? ? Why should your reader care about this paper? ? What arguments are you going to make? ? What is your position on the topic (if you need to make one)? ? How will you capture the reader’s attention long enough to get them to pay attention? The answers to these questions will help you formulate your introduction paragraph, from that catchy first line to a strong thesis statement. Elements of an Essay Introduction In episode 69 of The Homework Help Show below, Cath Anne is going to go through more details to show you how to write an introduction. But before we get there, let’s dissect the basics. A typical essay introduction structure should resemble an upside down triangle. You start broad (but not too broad), and then narrow down to eventually get to your specific thesis statement. Need help with that thesis statement? Check out our blog on how to write a thesis statement, where we go more in depth with our best tips and tricks. Start with broad context that gives the reader some background information they’ll need to know to understand the topic. This part should include only relevant information that will relate to the arguments you’re going to make. Depending on the topic of your paper, you could choose to provide some historical background, social context, or explanation of specific keywords that will appear when you discuss your evidence. Save the deep dive for your body paragraphs. Then, narrow it down to get to the point, which leads directly into your thesis. Most importantly, your introduction needs to be interesting. Write something that inspires your reader to keep going. Avoid These Overrated Intro Lines Before you go and look for some generic quote to throw in as your opening line, stop and think. Your professors are sick of seeing the same lines over and over again being used as the hook of your introduction. The key to learning how to write an introduction is avoiding overrated, overused intro lines that will only make your professor or your reader roll their eyes. ? Dictionary definitions: Anyone can Google the dictionary definition of something. When you start your introduction paragraph this way, it looks like you didn’t put any thought into it. ? Quotes: Avoid those motivational quotes, popular quotes, and Additionally, quotes are lazy. They might work for a blog post, but they’re not going to cut it for an academic assignment that’s worth a large part of your grade. ? Cliches: As New York Times writer Leslie Jamison puts it, cliches are “substitutes for exploration.” Sure, they sound great in personal narratives, but leave them out of your academic work. It makes it look like you’re avoiding doing research and are taking a shortcut with an overused phrase your professor has heard millions of times before. ? Sweeping phrases or claims like “Throughout history,” These are very general, sound like cliches, and most professors find these statements more annoying than anything else. ? Research questions based on the essay prompt: Your professor assigned this question, and is going to receive a ton of different answers to it. They want to see something new and original in your assignment. Sometimes these items can be okay depending on the specific context of your assignment, but it’s best to avoid them whenever you can. For example, a quote might work if it comes from an expert in the field that reveals something new or shocking about your topic. View this post on Instagram ?? Im just going to sit back and relax I deserve it! A post shared by Homework Help Global (@homeworkhelpglobal) on Nov 18, 2019 at 11:00am PST So, What Does Make an Interesting Introduction Paragraph? If you looked at the above list of intro no-nos, you’re probably wondering, “What does make a good introduction, then?” And that’s a fair question. Here’s the real secret to determining how to write an introduction that really catches your professor’s eye from the very first line: nail down that hook. Don’t just jam it with something you think would be fun. Use something you know will work. Put a little bit of effort into it. Here are some ideas to try: ? A particularly interesting or startling statistic ? An anecdote or narrative ? Make a statement or misconception that you’re going to take a position against ? A thought-provoking question or scenario (that you will answer in the paper) ? Make an observation that leads into your thesis The point is to write something that will catch the eye before you get into the meat of your material. Make it really stand out and everything else will fall into place. Stuck getting the rest of your paper to fall into place? Read our ultimate guide to writing a good essay for more of our expert tips and tricks. It’s Time to Learn How to Write an Introduction That Will Hook Your Reader From The Start Now that we’ve prepared you to learn how to write an introduction, it’s time to dive in. Our top writer and Homework Help Show host, Cath Anne, is going to give you all the information you need to know for crafting an amazing essay introduction. Remember, if you’re not sure about your introduction paragraph and need a new one written, or if you could just use some pointers, Homework Help Global has your back. We provide custom essay writing services for students that can help you take your academic success to the next level, and save you tons of time in a pinch. Watch Episode 69 of The Homework Help Show Now One of the hardest part in writing an essay is knowing what to write and how to start. Students often think that you have to always start writing the introduction first but thats not always true. In this episode of the Homework Help Show, our top writer host, Cath Anne, discusses some tips that can help you to write an introduction. Looking for study tips, help with essay writing, or advice on how to be a better student? Welcome to The Homework Help Show, a weekly show where we teach, assist, and offer valuable insights for student life. From study hacks to writing tips, discussions about student mental health to step-by-step guides on academic writing and how to write a resume, weve got you covered. Want your questions answered? Write them below or join the conversation on social media using the hashtag #askHHG TRANSCRIPT: Cath Anne: [00:00:00] Introductions are one of the most important components of an essay. And because they are the first thing that many readers write, you want to make sure that you start off with a bang. Last week we discussed how to start an essay this week. Lets get a little bit more specific and talk about how to write an introduction. Hi, guys, and welcome back to our channel. Cath Anne: [00:00:34] My name is Cath Anne and this is The Homework Help Show hosted by Homework Help Global here on the show. We provide you with valuable content for your academic and student life. Now, before we jump into the content, I wanted to remind you to hit that notification bell so that you can be reminded every time we post you academic content. Also, if you do like our content, make sure to subscribe to our channel. So you still get reminders when we are posting new academic content. And as always, make sure to follow us on Instagram and Facebook as well for updates and information on new collaborations and new information on our organization. Cath Anne: [00:01:24] OK, lets jump in. Now, a good strong introduction provides a broad overview of what you will discuss in your essay. It also helps the reader to learn about what youre going to be discussing and hopefully it will keep them wanting to read more. Now lets discuss some tips on how to write a strong introduction and keep our professors from banging their head against the wall. Cath Anne: [00:01:51] Tip number one, begin broad but not too broad. Sometimes students think that it is a good idea to delve in and discuss everything that revolves around a certain topic that has ever been researched or discussed. Now this approach might become a little too confusing for your reader. It is better to narrow your topics specifically in the introduction. The introduction should provide your reader with a sense of what they should expect on the topic and not discuss every little thing that has ever been written on your topic. In particular begin broad, but then and narrow into your thesis and keep it specific as you move into your essay. Cath Anne: [00:02:38] Tip number two, discuss a relevant background information, but dont delve in to the full content of your essay. It is OK to offer some context to your essay. However, the main meat of your essay should be throughout your body paragraphs. You can hint to what youll be discussing in your introduction and give your reader a sense of what they can expect in the essay. But make sure that you dont give it all away because remember, you want them to continue reading the essay in order to decide how to incorporate things into your introduction or into your body paragraph. Consider whether it is context or evidence. True evidence should go in your body paragraphs and leave the context for your introduction. Cath Anne: [00:03:30] Tip number three, write a thesis statement. In general, a thesis statement should go towards the end of your introduction. Now, Im not going to go in-depth into a thesis statements because weve talked about it a lot here on our channel. We will link a video here so you can check out a video specifically related to writing a thesis statement. Remember, a thesis statement gives the overall idea, an argument that youre presenting in your essay. Cath Anne: [00:04:00] Tip number four, provide only helpful, relevant information. Now, anecdotes can be an interesting opener to your essay and you might want to include one. However, only if it is relevant to your topic. Are you writing an essay about Maya Angelou? Perhaps an anecdote about her childhood and how she got into writing might be an interesting way to open the essay that is relevant. Are you writing an essay about the book Moby Dick? Perhaps its not the best idea to provide an anecdote about how your friend read Moby Dick and they really didnt like it. Keep in mind whether the information or the anecdote is relevant to your topic. Keep this in mind with statistics, definitions, facts, or any other little tidbits of information that you think might make your introduction a little bit more interesting. Just make sure that its relevant to the rest of your essay. Cath Anne: [00:05:00] Tip number five, try to avoid clichés. Sometimes cliches can work. They might pack a punch, however, sometimes they are also overdone. One of these cliches is starting your essay with a definition. Starting an essay with the definition is an example of one of these conventions. Think about Michael Scott in The Office, you know how he always begins his speeches with, according to Oxford English Dictionary or according to Websters English Dictionary, and everyone always laughs or rolls her eyes. Websters dictionary defines wedding as the fusing of two medals with a hot torch. Thats because opening an essay or a speech with a quotation or a definition is a little bit overdone and tired at this point. Because it has been overdone it might come across as a little boring to your reader and cause your reader to tune out. Think of a more creative, engaging way to start your introduction. Cath Anne: [00:06:12] Tip number six dont feel pressured to write your introduction first. Personally, I find that my writers block is strongest when I am first beginning an essay. I find that it can help to get myself writing first, fill out some of the body paragraphs, complete the outline, even work on the conclusion, and then come back to the introduction. Once youve written the remainder of your essay, youll have a stronger sense of how you want to start your essay, and youll be more likely to start off with a really strong introduction. Cath Anne: [00:06:47] Tip number seven Convince your reader that your essay is worth reading. A good introduction will really grab your reader and make them feel engaged. From the get go. The purpose of an introduction is to grab the reader, suck them in, and let them know that you have something interesting to say. Essentially, you want to hook your reader so that theyre interested in learning how you are going to make your argument on a really relevant and interesting topic. A good way to engage your reader off the get go is to provide information that perhaps they disagree with, or perhaps you present something a little controversial. This will help them to feel engaged in the material and make them want to keep reading. Once they are thinking about the topic, they are more likely to become engaged and theyll want to know how youll make your argument. Cath Anne: [00:07:45] Basically, a good introduction provides your reader with an overview of your topic. A good introduction is interesting, engaging and to the point. A great introduction doesnt provide irrelevant information, doesnt rely on cliches. Its direct, concise and on topic. Cath Anne: [00:08:07] Okay, guys, that is it for me this week. I hope this episode was a benefit. As always, we always love to hear from you. So please jump into the comments section below and let us know if these videos have been helpful for you. Wed also love to see if you would like any other content from us. As always, you can connect with us on social media. All of our platforms are linked and listed in the description box below. So make sure to check us out on Instagram, Facebook and all of our other social media platforms. If you like this video and found it helpful. Make sure to give it a thumbs up and subscribe to our channel so you dont miss out on any of our future content. Okay, guys, thank you guys so much for joining me. Talk soon and take care. How to Write an Introduction How to Write an Introduction That Will Hook Your Reader Instantly How to Write an Introduction That Will Hook Your Reader Instantly How many times have you sat down to write your paper and gotten stuck right at the very first intro line? Learning how to write an introduction is a vital component of writing any type of assignment, whether it’s an essay or a research paper. But it’s not always easy. You’ve got your evidence ready to go, your body paragraphs planned out, and your thesis statement built. Now it’s time to work on an introduction to everything that transitions properly into your work. This part is often overlooked and more often than not, students get stuck throwing in generic statements and sensational narratives that might hook the reader, but they don’t communicate your arguments. Sometimes they just aren’t relevant at all. If this sounds like your typical writing process, you’re not alone. That’s why we’re here to help you out. So, without further adieu, let’s dig deep into the lesson and learn how to write an introduction. Introductions Matter When you’re learning how to write an introduction, it’s important to start with the why. Sure, you know every paper needs a good introduction, but you may be wondering why it really matters. The more you understand that, the stronger your writing becomes. This is where you introduce your topic and give the reader a sense of what you’re going to talk about. Think of it like a first impression for your assignment. Just like first impressions matter in a job interview, the first impression of your paper matters, too. You don’t usually get a second chance to make them, so nail it the first time. Simply put, without an introduction to your paper, how is your reader going to know what they’re getting themselves into? Would you really want to read an essay that didn’t really explain what it was about and expected you to just figure it out in the body paragraphs? You wouldn’t, and neither does your reader. Why Learning How to Write an Introduction is Vital For Any Assignment Your introduction indicates the position you’re going to take in the paper. It provides context to set up all of the points you’ll make in your body paragraphs. Think of it like a map to your paper that shows the reader where they’re going. No surprises, no roadblocks just solid arguments and evidence about the main point. So, when it comes to figuring out how to write an introduction, make sure you remember this above everything else. A weak introduction sets the tone that the rest of your paper is going to be dull. If you don’t nail this, the rest of your paper will seem bleak and uninteresting. Not to mention, everything won’t flow the way you think it will and that could lose you some marks. View this post on Instagram ?? A friendly reminder that our GIVEAWAY #2 WIN A FREE ESSAY deadline has been extended to November 27 @ 11:59 P.M. EST. Dont forget to enter!! A post shared by Homework Help Global (@homeworkhelpglobal) on Nov 26, 2019 at 7:18am PST How Long Should My Intro Be? This is a great question, and one of the first things you consider when learning how to write an introduction that fits in properly. Sometimes students will try to stuff the introduction with more words to take up more space so they can reach the page count, but we assure you that your professors know when you do this. The length of an essay introduction should be relative to the length of your paper. If your paper is, say, five pages, your introduction paragraph should be no more than about half a page. Likewise, if your paper is twenty pages, it can be one or two pages long. Your introduction paragraph should be long enough to answer some of the following questions (they may vary depending on the type of assignment you’re writing): ? Why are you writing this paper? ? Why should your reader care about this paper? ? What arguments are you going to make? ? What is your position on the topic (if you need to make one)? ? How will you capture the reader’s attention long enough to get them to pay attention? The answers to these questions will help you formulate your introduction paragraph, from that catchy first line to a strong thesis statement. Elements of an Essay Introduction In episode 69 of The Homework Help Show below, Cath Anne is going to go through more details to show you how to write an introduction. But before we get there, let’s dissect the basics. A typical essay introduction structure should resemble an upside down triangle. You start broad (but not too broad), and then narrow down to eventually get to your specific thesis statement. Need help with that thesis statement? Check out our blog on how to write a thesis statement, where we go more in depth with our best tips and tricks. Start with broad context that gives the reader some background information they’ll need to know to understand the topic. This part should include only relevant information that will relate to the arguments you’re going to make. Depending on the topic of your paper, you could choose to provide some historical background, social context, or explanation of specific keywords that will appear when you discuss your evidence. Save the deep dive for your body paragraphs. Then, narrow it down to get to the point, which leads directly into your thesis. Most importantly, your introduction needs to be interesting. Write something that inspires your reader to keep going. Avoid These Overrated Intro Lines Before you go and look for some generic quote to throw in as your opening line, stop and think. Your professors are sick of seeing the same lines over and over again being used as the hook of your introduction. The key to learning how to write an introduction is avoiding overrated, overused intro lines that will only make your professor or your reader roll their eyes. ? Dictionary definitions: Anyone can Google the dictionary definition of something. When you start your introduction paragraph this way, it looks like you didn’t put any thought into it. ? Quotes: Avoid those motivational quotes, popular quotes, and Additionally, quotes are lazy. They might work for a blog post, but they’re not going to cut it for an academic assignment that’s worth a large part of your grade. ? Cliches: As New York Times writer Leslie Jamison puts it, cliches are “substitutes for exploration.” Sure, they sound great in personal narratives, but leave them out of your academic work. It makes it look like you’re avoiding doing research and are taking a shortcut with an overused phrase your professor has heard millions of times before. ? Sweeping phrases or claims like “Throughout history,” These are very general, sound like cliches, and most professors find these statements more annoying than anything else. ? Research questions based on the essay prompt: Your professor assigned this question, and is going to receive a ton of different answers to it. They want to see something new and original in your assignment. Sometimes these items can be okay depending on the specific context of your assignment, but it’s best to avoid them whenever you can. For example, a quote might work if it comes from an expert in the field that reveals something new or shocking about your topic. View this post on Instagram ?? Im just going to sit back and relax I deserve it! A post shared by Homework Help Global (@homeworkhelpglobal) on Nov 18, 2019 at 11:00am PST So, What Does Make an Interesting Introduction Paragraph? If you looked at the above list of intro no-nos, you’re probably wondering, “What does make a good introduction, then?” And that’s a fair question. Here’s the real secret to determining how to write an introduction that really catches your professor’s eye from the very first line: nail down that hook. Don’t just jam it with something you think would be fun. Use something you know will work. Put a little bit of effort into it. Here are some ideas to try: ? A particularly interesting or startling statistic ? An anecdote or narrative ? Make a statement or misconception that you’re going to take a position against ? A thought-provoking question or scenario (that you will answer in the paper) ? Make an observation that leads into your thesis The point is to write something that will catch the eye before you get into the meat of your material. Make it really stand out and everything else will fall into place. Stuck getting the rest of your paper to fall into place? Read our ultimate guide to writing a good essay for more of our expert tips and tricks. It’s Time to Learn How to Write an Introduction That Will Hook Your Reader From The Start Now that we’ve prepared you to learn how to write an introduction, it’s time to dive in. Our top writer and Homework Help Show host, Cath Anne, is going to give you all the information you need to know for crafting an amazing essay introduction. Remember, if you’re not sure about your introduction paragraph and need a new one written, or if you could just use some pointers, Homework Help Global has your back. We provide custom essay writing services for students that can help you take your academic success to the next level, and save you tons of time in a pinch. Watch Episode 69 of The Homework Help Show Now One of the hardest part in writing an essay is knowing what to write and how to start. Students often think that you have to always start writing the introduction first but thats not always true. In this episode of the Homework Help Show, our top writer host, Cath Anne, discusses some tips that can help you to write an introduction. Looking for study tips, help with essay writing, or advice on how to be a better student? Welcome to The Homework Help Show, a weekly show where we teach, assist, and offer valuable insights for student life. From study hacks to writing tips, discussions about student mental health to step-by-step guides on academic writing and how to write a resume, weve got you covered. Want your questions answered? Write them below or join the conversation on social media using the hashtag #askHHG TRANSCRIPT: Cath Anne: [00:00:00] Introductions are one of the most important components of an essay. And because they are the first thing that many readers write, you want to make sure that you start off with a bang. Last week we discussed how to start an essay this week. Lets get a little bit more specific and talk about how to write an introduction. Hi, guys, and welcome back to our channel. Cath Anne: [00:00:34] My name is Cath Anne and this is The Homework Help Show hosted by Homework Help Global here on the show. We provide you with valuable content for your academic and student life. Now, before we jump into the content, I wanted to remind you to hit that notification bell so that you can be reminded every time we post you academic content. Also, if you do like our content, make sure to subscribe to our channel. So you still get reminders when we are posting new academic content. And as always, make sure to follow us on Instagram and Facebook as well for updates and information on new collaborations and new information on our organization. Cath Anne: [00:01:24] OK, lets jump in. Now, a good strong introduction provides a broad overview of what you will discuss in your essay. It also helps the reader to learn about what youre going to be discussing and hopefully it will keep them wanting to read more. Now lets discuss some tips on how to write a strong introduction and keep our professors from banging their head against the wall. Cath Anne: [00:01:51] Tip number one, begin broad but not too broad. Sometimes students think that it is a good idea to delve in and discuss everything that revolves around a certain topic that has ever been researched or discussed. Now this approach might become a little too confusing for your reader. It is better to narrow your topics specifically in the introduction. The introduction should provide your reader with a sense of what they should expect on the topic and not discuss every little thing that has ever been written on your topic. In particular begin broad, but then and narrow into your thesis and keep it specific as you move into your essay. Cath Anne: [00:02:38] Tip number two, discuss a relevant background information, but dont delve in to the full content of your essay. It is OK to offer some context to your essay. However, the main meat of your essay should be throughout your body paragraphs. You can hint to what youll be discussing in your introduction and give your reader a sense of what they can expect in the essay. But make sure that you dont give it all away because remember, you want them to continue reading the essay in order to decide how to incorporate things into your introduction or into your body paragraph. Consider whether it is context or evidence. True evidence should go in your body paragraphs and leave the context for your introduction. Cath Anne: [00:03:30] Tip number three, write a thesis statement. In general, a thesis statement should go towards the end of your introduction. Now, Im not going to go in-depth into a thesis statements because weve talked about it a lot here on our channel. We will link a video here so you can check out a video specifically related to writing a thesis statement. Remember, a thesis statement gives the overall idea, an argument that youre presenting in your essay. Cath Anne: [00:04:00] Tip number four, provide only helpful, relevant information. Now, anecdotes can be an interesting opener to your essay and you might want to include one. However, only if it is relevant to your topic. Are you writing an essay about Maya Angelou? Perhaps an anecdote about her childhood and how she got into writing might be an interesting way to open the essay that is relevant. Are you writing an essay about the book Moby Dick? Perhaps its not the best idea to provide an anecdote about how your friend read Moby Dick and they really didnt like it. Keep in mind whether the information or the anecdote is relevant to your topic. Keep this in mind with statistics, definitions, facts, or any other little tidbits of information that you think might make your introduction a little bit more interesting. Just make sure that its relevant to the rest of your essay. Cath Anne: [00:05:00] Tip number five, try to avoid clichés. Sometimes cliches can work. They might pack a punch, however, sometimes they are also overdone. One of these cliches is starting your essay with a definition. Starting an essay with the definition is an example of one of these conventions. Think about Michael Scott in The Office, you know how he always begins his speeches with, according to Oxford English Dictionary or according to Websters English Dictionary, and everyone always laughs or rolls her eyes. Websters dictionary defines wedding as the fusing of two medals with a hot torch. Thats because opening an essay or a speech with a quotation or a definition is a little bit overdone and tired at this point. Because it has been overdone it might come across as a little boring to your reader and cause your reader to tune out. Think of a more creative, engaging way to start your introduction. Cath Anne: [00:06:12] Tip number six dont feel pressured to write your introduction first. Personally, I find that my writers block is strongest when I am first beginning an essay. I find that it can help to get myself writing first, fill out some of the body paragraphs, complete the outline, even work on the conclusion, and then come back to the introduction. Once youve written the remainder of your essay, youll have a stronger sense of how you want to start your essay, and youll be more likely to start off with a really strong introduction. Cath Anne: [00:06:47] Tip number seven Convince your reader that your essay is worth reading. A good introduction will really grab your reader and make them feel engaged. From the get go. The purpose of an introduction is to grab the reader, suck them in, and let them know that you have something interesting to say. Essentially, you want to hook your reader so that theyre interested in learning how you are going to make your argument on a really relevant and interesting topic. A good way to engage your reader off the get go is to provide information that perhaps they disagree with, or perhaps you present something a little controversial. This will help them to feel engaged in the material and make them want to keep reading. Once they are thinking about the topic, they are more likely to become engaged and theyll want to know how youll make your argument. Cath Anne: [00:07:45] Basically, a good introduction provides your reader with an overview of your topic. A good introduction is interesting, engaging and to the point. A great introduction doesnt provide irrelevant information, doesnt rely on cliches. Its direct, concise and on topic. Cath Anne: [00:08:07] Okay, guys, that is it for me this week. I hope this episode was a benefit. As always, we always love to hear from you. So please jump into the comments section below and let us know if these videos have been helpful for you. Wed also love to see if you would like any other content from us. As always, you can connect with us on social media. All of our platforms are linked and listed in the description box below. So make sure to check us out on Instagram, Facebook and all of our other social media platforms. If you like this video and found it helpful. Make sure to give it a thumbs up and subscribe to our channel so you dont miss out on any of our future content. Okay, guys, thank you guys so much for joining me. Talk soon and take care.

The Background Of The Crusades - Free Essay Example

The Crusades were multiple series of military missions, which were planned and organized by the Roman Catholic Church and the Pope. The time period for most of the Crusades was through 11 to 13 A.D. Muslims had taken over Christian lands and the whole mission of the Pope to send out the Crusades were to take back their Christian land. The Christian cross was the symbol of the Crusaders. They believed that the cross would make them unstoppable again the Muslim Army. The loth cross is the Latin term for the word crusade to share the journey to the Holy Land from Europe. The Pope wanted them to wear the cross as a vow of commitment to the Crusades and show their true commitment to the Lord. Everyone that hath left house or brethren or sisters or father or mother or wife or children or lands, for my names sake, shall receive an hundredfold and shall possess life everlasting (Matthew 19: 29) and If any man will come after me, let him deny himself and take up his cross and follow me (Matthew 16: 24 or Luke 14: 27) https://erenow.com/postclassical/oxfordcrusades/4.html).   From Syria, the crusade leaders wrote to him as You who by your sermons made us all leave our lands and whatever was in them and ordered us to follow Christ by taking up our crosses. Crusader armies consisted of a core of heavy cavalries such as chainmail swords and lances. Much of the infantry were armed with a bow and arrow. The knights were sometimes joined by mounted squires who were less armed. The horsemen would be in the rear as the volley of arrows led way into war. They kept to a close marching formation and were harassed by the horse archers while using surprise attacks. The armor was heavier meaning the armor could take on more powerful hits. The hit and run tactics were often protected by the shield wall used by the Crusaders. They were also a strong band of soldiers who were very determined.The first crusade was sent out by Pope Urban II in 1095 A.D. Pope Urban II received a letter from The Eastern Orthodox Patriarch of Constantinople asking the Pope for some assista nce again the Muslim invaders. Pope Urban then called the Christian to take back over the Holy Land, especially Jerusalem from the Muslims. The crusaders departed in 1096 and then recaptured the Holy Land in 1099. Throughout the journey to recapture, the crusaders established kingdoms for themselves in scattered cities in Europe. The goal of the first Crusade was to halt the spread of Muslim rule. The Crusades increased Muslims distrust of the Europeans. The second crusade was a failure. The Muslims counter attacked them and capture the city of Odessa in 1144 A.D. St. Bernard of Clairvaux traveled throughout Europe and wanted people to bring back the cross and take the Muslims back to where theyre supposed to be and take back what they had taken away. There was a lot of miscommunication which caused some bad leadership and which ended in a failed mission. It was rumored that King Louis VII of France took the cross because of his loss of life at the church when it was burned down during his assault in Vitry in 1144. The third crusade was shot off in 1189 A.D. Saladin, the Muslim leader of the Army reconquered Jerusalem. T he third crusade was an ultimate unsuccessful trip. The Holy Roman Emperor, Frederick I Barbarossa of Germany, drowned, under uncertain circumstances, on the way to the Holy Land. Richard the Lionheart of England was able to recapture several coastal cities but did not attempt to retake Jerusalem due to lack of resources. There then became a peace treaty allowing for Christian pilgrims to enter Jerusalem without danger between Lionheart and Saladin. The compromise continued Muslim rule but allowed Christian pilgrims free access to the city. The Fourth Crusade began in 1202 A.D and still couldnt be held to the standard of leadership and accountability. Then the Catholic and the Orthodox Christians began a battle which then the Christians would conquer Constantinople. After the conflict, any alliance between the Catholic and Orthodox was now destroyed. Andrew II of Hungary and Leopold VI of Austria led the Fifth Crusade in 1217 A.D. This Crusade was a successful one because they captured the city of Damietta, in the end, they could not hold it for long since they lost at the Battle of Al-Mansura. Leopold and Andrew were given Jerusalem and other cities in exchange for Damietta so the Muslims could control the city. Pelagius refused the offer which then turned into a huge defeat. In 1228 The Sixth Crusad e was launched and was led by Holy Roman Emperor Frederick II. The Sixth Crusade ended with a peace treaty that gave Christians the right to Jerusalem and other sites. The Seventh and Eighth Crusade were both led by King Louis IX of France. They both were very bad tragedies and disasters. In the Seventh Crusade, Louis recaptured Damietta. By the time the Eighth Crusade was reached King Louis died. The Ninth Crusade was led by King Edward I of England. In 1271 A.D there was an attempt at defeating the Mamluk sultan of Baibers. This Crusade ended up failing and King Edward came back home to a dead Father. The idea of confirmation from the victory of the battlefield had its seed in the Roman Empire. They thought that victory was used as a sacred victory and the gods were shining down upon them. In order for the Crusades to occur they had to be sanctioned by the pope, and they were officially used to conduct battle on groups deemed to be enemies. These series of events werent because of religious issues, they were taken place for political and economic reasons, which where is to extend their imperial reach, and the knights had to spread their superiority along the outside of Western Europe. Salvation is a big testimonial word to describe a Crusade, they were thought to be given purgatory in the afterlife and fought as landless peasants who were in search of a future by taking land from other cities. The Crusades had some unique outcomes socially, economically, religiously, and militarily. For the social aspect of the Crusades, there was a very strong prejudice against the military. Crus aders were also not granted acceptance from the people in their region. They were also introduced to new ways of living such as farming and doing things on their own. Among the churchmen had the biggest problem because they believed Jesus didnt like warfare. The idea of shedding blood was told by St. Martin,   I am a soldier of Christ. I must not fight. The growth of military had big political issues to because they didnt survive the end of the Crusades. The Knights were made big targets because of how wealthy they were which is why the Templars were eventually destroyed. The economic outcome was a tremendous disaster. They also helped with new developments in banking, commerce, and taxation. Many nobles gave their money to the church, moneylenders, and merchants. The issue of so much money being lost is that the travel was long and the weaponry made during this time was too much in order for them to lose. If they won more missions then they could be more prideful and more taken on a better note if they gained more power through land and money. While t here were bad outcomes for the Crusades there were many good things that came out of them. Serfs were given freedom for participating in the Crusades, no matter what happened to them they didnt have to worry about the nobles land they had to be tied to. The rise of commerce and mercantilism was spread because those that died were replaced by new ancestors who had to take over as farmers and possibly hasten to urbanization.

Foreign Exchange Practices and Hedging Tools in the Software Industry - Free Essay Example

Sample details Pages: 28 Words: 8311 Downloads: 6 Date added: 2017/09/18 Category Business Essay Type Argumentative essay Did you like this example? â€Å"FOREIGN EXCHANGE PRACTICES AND HEDGING TOOLS USED BY THE SOFTWARE INDUSTRY† This report is submitted as a part of the requirements of the MBA Program of Bangalore University. This research has been undertaken by RAJEEV SAMUEL JAYAMANOHAR Reg. No: 04VWCM6068 With the guidance and support of Prof. RATHNAKAR ACHARYA Faculty, ABA [pic] ALLIANCE BUSINESS ACADEMY BANGALORE – 560 076 Batch: 2004-2006 ACKNOWLEDGEMENT I would like to express my heartfelt gratitude to our President Prof. Sudhir Angur and Director Dr. B. V. Krishnamurthy for having granted me an opportunity to conduct this study. My sincere thanks to Prof. Ratnakar Acharya for guiding me through the project. My special thanks to the respondents of the study who are been instrumental in the successful completion of this work are Finance Managers, Forex Managers of various software companies at Bangalore City, whom I approached for information and were kind enough to spend time with me irrespective of their busy schedule. Finally I thank my friends who have been with me at every stage of the project in the form of constant support and encouragement without whom, completing this research work would have remained an unfulfilled dream. RAJEEV SAMUEL CERTIFICATE BY THE GUIDE This is to certify that the dessertation entitled â€Å"Foreign Exchange Practices And Hedging Tools Used By Software Industry† by Rajeev Samuel bearing Reg. No 04VWCM6068 has been prepared under my guidance and supervision. The work has been satisfactory and is recommended for consideration towards partial fulfillment of requirement for the M. B. A degree of Bangalore University. Date: Place: Bangalore Signature (Prof. Ratnakar Acharya) DECLARATION This is to state that the dessertation titled â€Å"Foreign Exchange Practices And Hedging Tools By Software Industry† is based on the original work carried out by me under the supervision of Prof. Ratnakar Acharya towards the partial fulfillmen t of requirements for the degree of Master of Business Administration of Bangalore University during the IV semester. This has not been submitted in part or full towards any other degree or diploma. Register No: 04VWCM6068 Date: Place: Bangalore. Signature (Rajeev Samuel) EXECUTIVE SUMMARY The subject title for the study was â€Å" Foreign Exchange Practices and Hedging Tools used by Software Industry† Like any other business organisation, software compnies too face risks inherent to the company and the industry in which they exist. In what way companies face foreign exchange risks? What can companies do when they face Forex risk? Which are the best hedging tools to adopt? On the same lines we can come up with so many other questions for which managers have to take a decision. Since , no formal study has been done to understand all this, the author took the opportunity to conduct this study. The methodology adopted for the study is based on the simplest research methods – descriptive research, which is a fact –finding investigation with adequate interpretation. It is focused and aimed on Foreign Exchange practices prevailing in the Indian software industry. The research methodology used for the study was the survey method. Around 10 companies from Bangalore were taken for the survey. An interview with the finance managers of these companies was taken to collect the primary data. Foreign exchange transactions include a substantial amount of risk due to fluctuations in the exchange rates. Hence, corporates are continuously striving to minimize this risk exposure by the use of various hedging tools like Forward contracts, Options, Swaps, Netting etc. Foreign exchange risk may also be linked to other types of market risks, such as interest rate risk. Interest rates and exchange rates often move simultaneously. So, a bank’s interest rate position indirectly affects overall foreign exchange exposure. It is essential for the corpo rates to study the Forex market, its market potential and the benefit one gets in dealing in Forex trading. It is true that Forex trading is expensive. It is basically because of few traders who trade in large volumes, which affects the small traders. That’s why the market has become so big. Nowadays, corporates take the help of consultants like Thomas Cook, for their Forex trading. Today,the forex market has grown to more than $ 1. 5 trillion per day. 51% is in spot forex transactions, followed by 32% in currency swap transactions, and forward outright forex transactions represents another 5% of this daily turnover. The general public market is an enormous potential of customers who want to speculate in the largest and most efficient market in the world. Three years ago it totaled 15 billion USD daily turn over. The surveyed software companies show that 25% of them perceive that they do not face foreign exchange risk. But, in actual practice, they do face cash balance risk by keeping their balances in their foreign accounts. It has also been found that 45% of the software companies face Exchange rate risk. Companies have rated the Transaction and Operating Exposures as high. Thus, this all shows that software companies do face risk. But, most of the companies don’t adopt any hedging strategy. They maintain foreign accounts and only 35% of the companies use Forward contracts of 3-6 months. Thus, corporates play a major role in the Forex market. They should know the various risks to which they are directly or indirectly exposed. They should also analyse the best strategy which suits best their organisation. Since, the organization is not found to be using any trading software’s which the author has recommended. The most reliable trading system was found to be Live Voice Dealing(LVD). Thus, the companies can be benifited by using these softwares. It will take time for the companies to change their trading system. Companies have b ecome dependent on their Banks and Consultants for their forex trading. So, any organisation whether large or small needs some sort of change in their trading system. Some of the companies are facing some risk but since they are not aware of these practices are not using them. The corporates should identify the exposure, quantify the exposure, and then monitor the performance. Some of the corporates do have their own philosophy for exposure management and they follow it. Thus, the author has suggested improving the Forex risk management into their organisation. TABLE OF CONTENTS | | | | |CHAPTER |PARTICULARS |PG. NO | | | | | |I |INTRODUCTION | | |1. |History of Forex |1 | |1. 2 |Definition and types of Foreign Exchange |3 | |1. 3 |Why do we need Foreign Exchange? |4 | |1. 4 |Forex characteristics |4 | |1. 5 |Foreign Exchange Market and its types |5 | |1. |Role of the exchange rate |7 | |1. 7 |Forex and Stock Market |8 | |1. 8 |Foreign Exchange Reserves in India |9 | |1. 9 |What is Foreign Exchange Risk |10 | |1. 10 |Sources of Foreign Exchange Risks |10 | |1. 1 |Types of Foreign Exchange Transaction Risks |11 | |1. 12 |Measures Of Foreign Exchange Risk |14 | |1. 13 |Why should Firms manage Foreign exchange risk |15 | |1. 14 |What are Foreign Exchange Exposures |17 | |1. 15 |Types of Foreign Exchange Exposures |17 | |1. 6 |Methods Of Hedging |19 | | | | | |II |INDUSTRY PROFILE | | |2. 1 |Introduction to Indian software industry |21 | |2. 2 |Indian software industry-Advantages |21 | |2. |Classification of Software companies |22 | |2. 4 |Value chain of software industry |23 | |2. 5 |Critical Success Factors |24 | |2. 6 |SWOT Analysis of Software industry |25 | |2. 7 |Introduction to Indian software companies |26 | |1. HCL Perot Systems |26 | | |2. Honeywell |26 | | |3. IBM |27 | | |4. i-Flex |29 | | |5. Infosys Technologies |29 | | |6. M-Phasis BFL Software |30 | | |7. Oracle |30 | | |8 . Satyam |30 | | |9 . Texas Instruments |31 | | |10. Wipro |31 | | | | | |III |DESIGN OF THE STUDY | | |3. 1 |Title |33 | |3. |Background of the study |33 | |3. 3 |Statement of the Problem |33 | |3. 4 |Scope of the Study |34 | |3. 5 |Objectives of the Study |34 | |3. 6 |Research Design and Methodology |34 | |3. |Limitation of the Study |35 | | | | | |IV |ANALYSIS AND INTERPRETATION |37 | | | | | |V |FINDINGS AND CONCLUSIONS |53 | | | | | |VI |RECOMMENDATIONS |58 | | | | | |VII |BIBLIOGRAPHY | | | | | | |VIII |ANNEXURES | | | | 1) Questionnaire | | | |Operational definition of concepts | | LIST OF TABLES |NO |PARTICULARS |PAGE NO | |1 |The daily net Foreign Exchange Market turnover in various countries |5 | |2 |Foreign Exchange eserves in India |9 | |3 |Percentage of Software companies facing Foreign Exchange risk |37 | |4 |Percentage showing type of Forex risk faced by software companies |38 | |5 |Percentage showing types of exposure |40 | |6 |Percentage of companies use various source of information |41 | |7 |Percentage showing the type of hedging tool adopted by software companies |42 | |8 |Percentage of companies showing normal time for forward contract |43 | |9 |Percentage of companies considers various factors while formulating hedging strategy |44 | |10 |Percentage of companies showing the nature of usage of hurdle rate |45 | |11 |Percentage showing satisfaction level of companies |46 | |12 |Percentage showing satisfaction level of companies |47 | |13 |Percentage of companies hedge its imports an Exports |48 | |14 |Percentage of banks trade through Indian/foreign banks |49 | |15 |Percentage showing companies trade through different types of banks |50 | |16 |Percentage of companies exposed to various currencies |51 | LIST OF GRAPHS |NO. |PARTICULARS |PAGE NO | |1 |Foreign Exchange reserves in India |10 | |2 |Companies facing isk |38 | |3 |Forex risk faced by software companies |39 | |4 |Risks of companies |40 | |5 |Types of exposure |41 | |6 |Percentage of companies use various source of information |42 | |7 |Type of hed ging tool adopted by software companies |43 | |8 |Percentage of companies showing normal time for forward contract |44 | |9 |companies considers various factors while formulating hedging strategy |45 | |10 |Percentage of companies showing the nature of usage of hurdle rate |46 | |11 |Percentage showing satisfaction level of companies |47 | |12 |Percentage showing satisfaction level of companies |48 | |13 |Percentage of companies hedge its imports an Exports |48 | |14 |Percentage of banks trade through Indian/foreign banks |49 | |15 |Percentage showing companies trade through different types of banks |50 | |16 |percentage of companies is exposed to various currencies |51 | 1. FOREX-AN OVERVIEW Since the demise of fixed foreign currency exchange rates in the early 1970’s, the world economy has undergone sweeping changes. The collapse of the Breton Woods Agreement in 1971 signaled an increase in currency market volatility and trading opportunities. What is the lure of the Foreig n Exchange markets? What is its power? How does it grow to be the most important market in the World? How can you benefit from it? The foreign exchange market dwarfs the combined operations of the New York, London, Tokyo futures and stock exchanges, the daily turnover is approximately 1. 5 Trillion (U. S) dollars per day. The fascination of this market lies in its sheer size, its complexity and almost limitless reach. During the past decade, the foreign exchange market has been the invisible hand guiding the purchase and sale of goods, services and raw materials in every corner of the globe. The foreign exchange market directly affects every country’s bonds, equities, private property, manufacturing and all assets that are accessible to foreign investors. Foreign exchange rates play a major role in determining who finances government deficits, who buys equity in companies, who owns real-estate, who hires and fires employees and who owns the bank at which to maintain you r corporate or personal account(s). There is little doubt that this market affects every aspect of our daily personal and corporate financial lives and influences the economic and political destiny of every nation. The foreign exchange market, then, is the one stabilizing factor in the world’s system of monetary exchange. This market was created not by design but necessity. Traders, bankers, investors, importers and exporters recognized the benefits of hedging risk, or speculating for profit. The currency in your pocket is literally your stock in your country, like stock, its value fluctuates on the international market providing substantial opportunities for profit or loss. The market has its own momentum; it follows its own imperatives, and arrives at its own conclusions. Since the conclusions of value, fortunately or unfortunately affect the value of all assets it is crucial that every individual or institutional investor have an understanding of the foreign exchange ma rkets and the forces behind this ultimate free-market system. There is approximately one and half trillion-dollar worth of average daily 24-hour turnover in the global foreign exchange market. 51% is in spot forex transactions, followed by 32% in currency swap transactions, and forward outright forex transactions represent another 5% of this daily turnover. Spot transactions and forward outright Forex transaction all take place in the inter-bank market with options on inter-bank Forex Transactions making up another 8%, the inter-bank market accounts for 96% of the global foreign exchange market, the remaining 4% is divided among all the global futures exchanges. Inter-bank currency contracts and options, unlike futures contracts, are not traded on exchanges and are not standardized: rather banks and dealers act principles in these markets, negotiating each transaction on an individual basis. Forward â€Å"cash† or â€Å"spot† trading in currencies is substantially u nregulated; there are no limitations on daily price movements and speculative positions limits are not applicable. During problems of liquidity dealers can place trades through a larger number of market participants for better execution. Cash markets are the primary markets and futures are the secondary markets. The cash currency market represents 24 times the volume of currency futures. Cash trading deals in â€Å"Real† instruments with volume exceeding one trillion U. S. dollars worldwide daily. Cash markets provide better liquidity, execution and trading hours. 1. 2 DEFINITION OF FOREIGN EXCHANGE: â€Å"The means and methods by which rights to wealth expressed in terms of currency of one country are converted into rights to wealth in terms of currency of another country are known as ‘Foreign Exchange. The term cover the method by which the currency of one country is exchanged for that of another, the causes, which render such exchanges necessary, the forms in which such changes are conducted and the ratio or equivalent values at which they are reflected. † A foreign exchange transaction is still a shift of funds, or short-term financial claims, from one country and currency to another. â€Å" Foreign exchange refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money denominated in another nation’s currency acquires foreign exchange. † Federal Reserve Foreign Exchange Regulations Act, 1973 (FERA) defines Foreign Exchange as â€Å"Foreign currency and any drafts, travelers cheques, letter of credit and bill of exchange, expressed and drawn in Indian currency but payable in any foreign currency. † â€Å"Foreign exchange† refers to money denominated in the currency of another nation or group of nations. Any person who exchanges money denominated in his own nation’s currency for money de nominated in another nation’s currency acquires foreign exchange. That holds true whether the person involved is a tourist cashing a traveler’s check in a restaurant abroad or an investor exchanging hundreds of millions of dollars for the acquisition of a foreign company; and whether the form of money being acquired is foreign currency notes, freeing currency-denominated bank deposits, or other short-term claims denominated in foreign currency. A foreign exchange transaction is still a shift of funds, or short-term financial claims, from one country and currency to another. There are three main types of foreign exchange system: a) The gold standard in its various forms; b) Freely fluctuating exchange rates; and c) The several varieties of exchanges control. The fact that each country has its own monetary system is one of the principle complications of international trade and balances of payments. 1. 3 WHY WE NEED FOREIGN EXCHANGE Almost every nation has its own nati onal currency or monetary unit-its dollar, its peso, its rupee-used for making and receiving payments within its own borders. But foreign currencies are usually needed for payments across national borders. Thus, in any nation whose residents conduct business abroad or engage in financial transaction with person in other countries, there must be a mechanism for providing access to foreign currencies, so that payments can be made in a form acceptable to foreigners. In other words, there is a need for â€Å"foreign exchange† transactions-exchanges of one currency for another. 1. 4 FOREX CHARACTERISTIES †¢ Size of the global Forex market: 1500 Billion $ per day. For comparison: Bond/Treasury US Market: 300 Billion $ per day. Stock Exchanges Markets: 30 Billion $ per day (estimated). The market does not have a precise location, and the transactions are done via telephone, facsimile, and recently via Internet, this situation facilitates the activity of the traders. †¢ The prices of the market are established electronically by more than 500 international banks, which carry out exchanges between the market companies and governments. These banks constantly issue their prices, and the last quotation issued is considered as the price of the market. †¢ Forex is opened 24/24, five days a week, therefore, the players have the possibility of an immediate reaction. †¢ Leverage on deposit is possible due top the small consecutive change in price. †¢ Forex is characterized by the fact that is cannot be high or low. The potential of profit exists in one direction as in the other. Table 1:The daily net Foreign Exchange Market turnover in various countries |AVERAGE DAILY NET FOREIGN | |EXCHANGE MARKET TURNOVER IN THE MAIN CENTRES (In US$ billions) | |United Kingdom |4645 | |United States |2444 | |Japan |1613 | |Singapore |1054 | Hong Kong |902 | |Switzerland |865 | |Germany |762 | |France |58 | |Australia |395 | |Denmark |305 | |Canada |298 | |Sweden |281 | 5. FOREIGN EXCHANGE MARKET AND ITS TYPES The foreign exchange market is the market in which currencies are bought and sold against each other. Today, it is the largest market in the world with a turnover of about $1. 5 trillion approximately every day. The reason is the organizations like International banks, multi-national corporations, and large brokerage houses trade in huge volumes of currencies. The major currencies traded in this market are the US dollar, Deutschemark (DM), yen, Pound Sterling, Swiss franc, Canadian dollar, Dutch guilder, Italian Lira and the Belgian franc. The foreign exchange market is a cash inter-bank or inter-dealer market. It is called as ‘over the counter market’. This means that there is no single market place or an organized exchange (like a stock exchange) where traders meet and exchange currencies. The traders sit in the offices (Foreign exchange dealing rooms) of major commercial banks around the world and communic ate over the telephone and through computer terminals at thousand of locations worldwide. Geographically, the markets span all the times ones from New Zealand to the west cost of the United States. The time New York is staring to wind down at 3. 00 p. m. , it is noon in Los Angeles. By the time it is 3. 00 p. m. , in Los Angeles it is 9. 00 a. m. or the next day in Sydney. Thus the market functions virtually 24-hours enabling a trader to offset a position created in one market using another market. . Five widely used international markets are: 1. Foreign Exchange market The foreign exchange market allows currencies to be exchanged in order to buy the products or invest in securities denominated in foreign currency. 2. Eurocurrency Market The Eurodollar market, which is now referred as Eurocurrency market was created as corporations in the U. S deposited U. S dollar in European banks. These European banks were willing to accept dollar deposit, since they could then lend dollars to corporate customers based in Europe. Because the U. S dollar deposited is placed in banks located in Europe and other continents became know a Eurodollars. 3. Euro credit Market Loans of one year or longer extended by Euro banks are commonly called Euro credits or Euro credit loans. Such loans in the Euro credit Market have become popular since corporations and government agencies often desire to borrow for a term exceeding one year, and a common maturity for Euro credit loans in five years. 4. Eurobond market While the Euro currency and Euro credit loans help to accommodate short and medium-term borrowers, they do not accommodate the long-term borrower. To fill this gap, the Euro bond market was created. This market facilitates the transfer of long-term funds form surplus units to deficit units around the world. 5. International Stock Market When MNC’s issue stock, they often consider placing some in foreign stock markets to increase the probability that investors wil l absorb the entire issue. MNC’s with access to foreign stock markets may be able to issue stock at a higher price, which reflect a lower cost of capital. 1. 6 ROLE OF THE EXCHANGE RATE The exchange rate is price-the number of units of one nation’s currency that must be surrendered in order to acquire one unit of another nation’s currency. There are also various â€Å"trade-weighted† or† effective† rates designed to show a currency’s movements against an average of various other currencies. Quite apart from the spot rates, there are additional exchange rates for other delivery dates, in the forward markets. A market price is determined by the inter-action of buyers and sellers in that market and a market exchange rate between two currencies are determined by the interaction of the official and private participants in the foreign exchange rate market. For a currency with an exchange rate that is fixed, or set by the monetary authoriti es, the central bank or another official body is a key participant in the market, standing ready to buy or sell the currency as necessary to maintain the authorized pegged rate or range. The participants in the foreign exchange market are thus a heterogeneous group. But, whether official or private, or the motive being investing, hedging, speculating, arbitraging, paying for imports, or seeking to influence the trade, they are all part of the aggregate demand for and supply of the currencies involved, and they all play a role in determining the market exchange rate at that instant. Given the diverse views, interests, and time frames of the participants, predicting the future course of exchange rates is a particularly complex and uncertain business. At the same time, since the exchange rate influences such a vast array of participants and business decisions, it is a pervasive and singularly important price in an open economy, influencing consumer prices, investment decisions, inte rest rates, economic growth, the location of industry, and must else. The role of the foreign exchange market in the determination of that price is critically important. 1. 7 FOREX AND THE STOCK MARKET ? Forex works 24 hours a day. The stock market in India works only from 12 to 3 p. m. ? There are always the same 5 major currencies traded on the Forex market, whereas in the stock market there are thousands of securities to trade, and it is hard to understand why each particular stock will go up or down today. Choosing the right stocks from thousands to make a portfolio is not an easy thing either. ? The minimum amount needed in order to open a trading account on the Forex market-$1000-2000. This relatively small amount of money gives you an opportunity to ear $300-800 per day or even greater. To have an opportunity to ear $300-800 per day on the stock market, you have to put up $15000-20000 for your account. Certainly you can lose on both markets, but on forex you can win usi ng a much smaller amount of trading capital. ? It is more difficult to predict the stock market because of the millions of inexperienced investors making the movements chaotic ? There is no â€Å"bull† or â€Å"bear† market on Forex. On the other hand in the stock market, you can earn money mostly during a period of booming economy. But economy development is cyclical-and periods of growth will eventually be replaced by periods of recession. And in this case, when the stock market is going down, you cannot win as a day trader. On the forex market you have a unique feature- a so-called† demo account† or simulated account, which allows you to participate in trading using real-time prices on the deal station with the same interface and functions as on real trading, using the same news and technical analysis tools to predict market, movements, from the comfort of your home and via the internet. Now you can understand why more and more people go for forex tradin g. It is convenient and inexpensive. It gives you the opportunity and the time to develop your personal trading system. The most important participants in the market are banks. Foreign Exchange is traded â€Å"over the counter† via telephone and computer communications among banks, and not in organized exchanges such as stock exchanges. 8. FOREIGN EXCHANGE RESERVES IN INDIA Table 2: Foreign Exchange Reserves in India |YEAR |US $ MN. |1995 |17000 | |1996 |19500 | |1997 |25300 | |1998 |25300 | |1999 |32000 | |2000 |42500 | |2001 |48500 | |2002 |53400 | Source: International Financial Statistics, IMF. Graph 1:Foreign Exchange Reserves in India . FOREIGN EXCHANGE RISK Michael Adler and Bernard Dumas define foreign exchange risk in terms of the variance of unanticipated change in exchange rates. That is, they define exchange rate risk in terms of the unpredictability of exchange rates as reflected by the variance. From this, it is clear that unpredictability is paramount in the me asurement of exchange-rate risk. Thus, the author defines foreign exchange risk as follows: â€Å"Foreign Exchange risk is measured by the variance of the domestic-currency value of an asset, liability income that is attributable to unanticipated changes in exchange rates. 1. 10 SOURCES OF FOREIGN EXCHANGE RISK Foreign exchange rate fluctuation affect banks both directly and indirectly. The direct effect comes from banks’ holdings of assets (or liabilities) with net payment streams denominated in a foreign currency. Foreign exchange rate fluctuations alter the domestic currency of such assets. This explicit source of foreign exchange risk is the easiest to identify, and it is the most easily hedged. The indirect sources of risk are subtler but just as important. A bank without foreign assets or liabilities can be currency risk because the exchange rate can be affecting the profitability of its domestic banking operations. For example consider the value of a banks’ loan to an U. S. exporter. An appreciation of the dollar might make it more difficult for the U. S. exporter to compete against foreign firms. If the appreciation thereby diminishes the exporter’s profitability, it also diminishes the probability of timely loan repayment and, correspondingly, the profitability of the bank, in this case, the bank is exposed to foreign exchange risk; a stronger dollar decreases its profitability. In essence, the bank is† short† dollars against foreign currency. Any time the value of the exchange rate is linked to foreign competition, to the demand for loans, or to other aspects of banking conditions, it will affect even â€Å"domestic† banks. Foreign exchange risk also may be linked to other types of market risk, such as interest rate risk. Interest rates and exchange rates often move simultaneously. So, a bank’s interest relates position indirectly affects its overall foreign exchange exposure. The foreign excha nge rate sensitivity of a bank with an open interest rate position typically will differ from that of a bank with no interest rate exposure, even if the two banks have the same actual holding of assets denominated in foreign currencies. Against, the vulnerability of the bank as a whole to foreign exchange fluctuations depends on more than just is its holdings of foreign exchange. 1. 11 TYPES OF FOREIGN EXCHANGE TRANSACTION RISKS Foreign exchange transactions include substantial amount of risk due to fluctuations in exchange rates. Hence corporates are continuously striving to minimize their risk exposure by the use of various hedging tools like forward contract, options, swaps, Off Balance Sheet netting etc. The various risks of Foreign Exchange Transactions are: 1. Open Position or Exchange Rate Risk (Risk from market movement) It is the risk of change in exchange rates, which affects imports/ exports; this risk prevails from the date of order till the date of payment. 2. Cash B alance Risk The balances maintained in the foreign accounts (EEFC) at the end of each day are referred to as cash balances. The balances in the EEFC account do not earn any interest. 3. Maturity Mismatch/Liquidity/Gap/Interest Rate Risk (Risk due to improper transaction) The risk arises out of the fact that maturity period of purchase and sale of foreign currency in case of imports and exports don’t match. Liquidity risk is the risk that bank will be unable to meet its funding requirements or execute a transaction at a reasonable price. Market liquidity risk is the risk that bank not being able to exit or offset positions quickly at a reasonable price. 4. Credit or counter party Risk (Risk from customers) This is a risk due to inability or unwillingness of the counterpart to meet its obligations. Over this kind of risk bank has got proper control but bank tries to avoid or minimize the risk by taking following actions: . By fixing counterpart limits .By appropriate measure ments of exposure Credit evaluation and monitoring .By following sound operating procedure This risk can be classified into two ways: a) Pre-Settlement Risk Pre settlement risk is the risk of loss due to counter party defaulting on a contract during the life of a transaction. This exposure is also referred to as the replacement cost. A key tool for effective management of this risk is the fixation of exposure limits on counter parties. b) Settlement Risk Settlement risk is the risk arising when a bank performs its obligation under a contract prior to the counter party doing so. This risk frequently arises in international transactions because of the time zone differences. The credit risk can also be classified in to: a) Contract Risk If before the performance of the contract, the counter party fails the contract has to be canceled. In the mean time if rate has moved against it, then the loss is to be born by the bank as the contract is to be closed at the on going market rates. b ) Clean risk In an exchange contract the currencies are to be exchanged on the value dates. The time zone difference between various center sometimes results in situations when one bank has already paid the amount of currency to be given before receiving the amount the currency to be received the counter party fails, it may result in total loss. c) Sovereign risk If the counter party bank is situated in different country then there is a possibility of having sovereign risk. Also because of the political and economic factors in that country. If a country suspends the foreign currency payments the bank may stand to lose, although the counter party have performed its part of the contract in local currency. The bank while fixing counter party limits for the overseas bank has to give due weight age to the political stability, health of the economy, availability of financial infrastructure, and expected state interference in financial transactions, particularly foreign exchange transac tions. d) Country Risk This risk related to the ability and willingness of a country to service its external liabilities. It is also known as ‘sovereign risk’ or ‘transfer risk’. e) Overtrading Risk Risk of Overtrading arises when the volume of transactions by the dealer or the bank is beyond its administrative and financial facility. In the anxiety to earn huge profits, the dealer or the bank may take up large deals, which a normal prudent bank would have avoided. f) Fraud Risk Dealers or operational staff may indulge in frauds for personal gains or to conceal a genuine mistake committed earlier. g) Legal risk In addition to the foregoing risk there is a legal risk, which exists in all kinds of financial markets. It its probably more so in foreign exchange and interest rates given that inherent volatility. It is therefore extremely important the banks as also the corporate dealing in such products take such steps as would sufficiently protect them fr om the legal standpoint. 1. 12 MEASURES OF FOREIGN EXCHANGE RISK The direct source of foreign exchange risk can be gauged by tallying the net positions on a bank’s assets and liabilities that are denominated in foreign currencies. The example of the bank’s loan to the exporter shows the limitations of the narrow, standardized method most clearly. While the exporter’s loan by itself leaves the bank short in dollars, the standardized method captures none of this indirect exposure. Further, if the bank were to use the foreign currency market to hedge the short dollar position, then the standardized method, having messed the original exposure, would mistakenly treat the hedge as if it added to exposure. In general, if a bank chooses its foreign exchange holdings as though they contribute to risk as the standardized approach does it inappropriate. Use of the latter option, know as the â€Å"internal models† approach, is subject to several requirements for p rudence, transparency and consistency. When used appropriately, it can provide a significant improvement over the standardized method. The internal model approach enables banks to take a broader view of their foreign exchange risk than does the standardized method. This year, the internal model approach focuses on evaluating the risks arising from banks’ trading activities. The approach is well suited to incorporating the correlation between, say, the value of interest rate instruments and the value of foreign exchange. In principle, the internal model approach allows each bank to gauge its exposure carefully enough to incorporate the relationships among even its non-trading operations. However, even at is its, best, the internal models approach is limit din its range of coverage. An even broader approach to assessing banks’ foreign exchange risks can be obtained from an analysis of a bank’s equity returns. Equity returns reflect changes in the value of the f irm as a whole. So, if the value of a bank as a whole is sensitive to changes in the exchange rate, the bank’s equity returns will mirror that sensitivity. Whether from direct or indirect sources, foreign exchange exposure will be reflected in the behavior of returns. Thus, the exchange rate sensitivity of a bank’s equity return provides a comprehensive e measure of its foreign exchange exposure. One drawback of this equity approach is that it is not useful for evaluating the risk level of a particular action. The approach is not linked to an explicitly model of the determinants of foreign exchange exposure, so it cannot be used to trace out the implications of specific decision. However, the approach is useful for bankers and regulators as a tool to evaluate the success of past management of foreign exchange risk. It is especially uitable for comparing the exposure of an assortment of a bank because it can be applied consistently across banks and because it does no t require access to their detailed internal models. More over, its comprehensiveness makes it a good benchmark for evaluating other gauges of exposure. 1. 13 WHY SHOULD FIRMS MANAGE FOREIGN EXCHANGE RISK? Many firms refrain from active management of their foreign exchange exposure, even though they understand the exchange rate fluctuations can affect their earnings and value. They make this decision for a number of reasons. First, management does not understand it. They consider any use of risk management tools, such as forwards, futures and options, as speculative. Or they argue that such financial manipulations lie outside the firm’s field of expertise. We are in the business of manufacturing slot machines, and we should not be gambling on currencies. â€Å" Perhaps they are right to fear the use of hedging techniques, but refusing to use forwards and other instruments may expose the firm to substantial speculative risks. Second, they claim that exposure cannot be measured . They are right currency exposure is complex and can seldom be gauged with precision. But as in many business situations, imprecision should not be taken as an excuse for indecision. Third, they say that the firm is hedged. All transactions such as imports or exports are covered, and foreign subsidiaries finance in local currencies. This ignores the fact that the bulk of the firm’s value comes from transactions not yet completed, so that transaction hedging is a very incomplete strategy. Fourth, they say that the firm does not have any exchange risk because it does all its business in dollars (or yen, or whatever the home currency is). But a moment’s thought will make it evident that even if you invoice German customers in dollars, when the mark drops your prices will have to adjust or you’ll be undercut by local competitors. So revenues are influenced by currency change. Finally, they say that the balance sheet is hedged on an accounting basis—especi ally when the â€Å"functional currency† is held to be the dollar. The misleading signals that balance sheet exposure measure can give are documented in later sections. Modern principles of the theory of finance suggest prima facie that the management of corporate foreign exchange exposure may neither be an important nor a legitimate concern. It has been argued, in the tradition of the Modigliani-Miller Theorem, that the firm con not improve shareholder value by financial manipulations: specifically, investors themselves can hedge corporate exchange exposure by taking out forward contracts in accordance with their ownership in a firm. Managers do not serve them by second-guessing what risk shareholders want to hedge. One counter-argument is that transaction costs are typically greater for individual investors than firms. Yet there are deeper reasons why foreign exchange risk should be managed at the firm level. Operating managers can make such estimates with much more p recision than shareholders who typically lack the detailed knowledge of competition, markets, and the relevant technologies. Furthermore, in all but the most perfect financial markets, the firm has considerable advantages over investors in obtaining relatively inexpensive debt at home and abroad, taking maximum advantage of interest subsidies and minimizing the effect of taxes and political risk. Another line of reasoning suggests that foreign exchange risk management does not matter because of certain equilibrium conditions in international markets for both financial and real assets. These conditions include the relationship between price of goods in different markets, better known as Purchasing Power Parity (PPP), and between interest rates and exchange rates, usually referred to as the International Fisher Effect. 1. 14 FOREIGN EXCHANGE EXPOSURE Foreign exchange exposure is the sensitivity of changes in the real domestic currency value of assets, liabilities, of operating inco mes to unanticipated changes in exchange rates. Several features of this definition are: First, it is exposure of the sensitivity of domestic currency values i. e. , it is a description of the extent or degree to which the home currency value of something is changed by exchange rate changes. Second, it is concerned with real domestic- currency values,. By this we mean that this adjusts inflation to changes in exchange rates. Third, it has existed on assets and liabilities or on operating incomes of firms. Since the values of operating income are so much per period of time, we see that exposure exists on stocks and flows. Fourth, it has not been qualified in the list of exposed items by describing them as being foreign assets, and so on. This is because, unanticipated changes in exchange rates can affect domestic as well as foreign assets, liabilities, and operating incomes. Finally, it has been noticed that the definition refers only to unanticipated changes in exchange rates. Th is is because markets compensate for changes in exchange rates that are anticipated. Consequently, it is only to the extent that exchange rates change by more or less than had been expected that there will be gain or loss on assets, liabilities or operating incomes. 1. 15 TYPES OF EXPOSURE Whether the exposure is accounting-based or economic, the evidence indicates very clearly that changes in foreign exchange rates can change the real cash flows of the firm and thus can have a significant negative impact on a firm’s ability to compete. There are three types of foreign exchange exposure that impact the operation and performance of multinational companies; translation and transaction that are accounting based, and economic which is operational or real exposure. Foreign exchange exposure can be classified into three broad categories. ? Transaction exposure ? Translation exposure ? Economic exposure First and the third together are known as ‘cash flow exposuresâ€⠄¢ while the second is referred to as ‘accounting exposure’ or ‘balance sheet exposure’. †¢ Transaction exposure: A transaction exposure exists when a change in one of the financial prices will change the amount of a receipt or expense. The amount of a transaction ( a receipt or expense) would be determined by the price per unit and the number of units sold or purchased. Transaction exposures typically focus on only the direct effect of a price change-the impact of price changes on quantity is ignored. A transaction exposure will often lead to trouble when there is a mismatch in receipts and expenses. Eg. If an Indian exporter has a receivable of $200,000 due three months, hence and if in the meanwhile the dollar depreciates relative to the rupee a cash loss occurs, conversely if the dollar appreciates relative to the rupee cash gain occurs. Conversely reverse will take place in case of imports. †¢ Translation exposure: A parallel exposure-one that also focuses only on the direct effects of a price change-that would be reflected in the firm’s balance sheet is referred to as a translation exposure. A translation exposure reflects the change in the value of the firm as foreign assets are converted to home currency. Most of the firms make a point of noting that they do not manage translation exposures. Economic exposure: Moving beyond the strike accounting-based exposures, firms have begun to consider their firm’s economic, or real, exposure-also referred to as competitive exposures. Changes in foreign exchange rates will change the firm’s receipts or expenditures not only because of the direct price change but also because the price change will change the amount that the firm buys or sells. This view of finical price risk recognizes changes in foreign exchange rates on the firm’s sales and market share and then on the firm’s net profits (net cash flows). 16. METHODS OF HEDGING Methods of h edging can be classified as a. Internal methods b. External methods a. Internal methods: Internal methods include: i. Invoicing: In invoicing the corporate shifts the entire exchange risk to the other party by insisting that all its imports and exports be invoiced in its home currency. ii. Netting/matching of cash flows: In this method of hedging if a firm has receivables and payables corresponding to the same periods then even if no other action is taken it will be able to match these exposures and make payments out of the payments received, since it will not have to buy or sell currencies in respect of these matched receipts and payments, there is no forex exposure risk involved. This is also called as ‘natural hedging’. iii. Leading and Lagging: The expression leading mean s paying before the due date and lagging means postponing the receipt of funds beyond the date on which they are due. The general rule is to lead i. e. advance payables and lag i. e. postpone receivables in strong currencies and conversely lead receivables and lag payables in weak currencies. b. External methods: External method includes: i. Forward contract: Forward contract is a firm and binding contract entered into by the bank and its customer for the purchase of specified amount of foreign currency at an agreed rate of exchange for delivery and payment at a future date or period agree upon at the time of entering into foreword deal. The bank on its part will cover itself in the inter-bank market or by matching a contract to sell with a contract to buy. ii. Option contracts: These are contracts in which the rate of exchange between the two currencies is fixed at the time the contract is entered into as in a standard forward, but the delivery date is not a fixed date. The corporate (customer) can at its option, take or make delivery on any day between the fixed dates. The internal between the two dates is the option period. Options are financial instruments that c onfer upon the holder the right to do something without the obligation to do so. More specifically, the option is an asset on or up on a specified date if he chooses to do so. The option buyer can simply let his right lapse by not exercising his option on the other hand; the seller of the option has an obligation to take the other side of the transaction if the buyer wishes to exercise his option. For this privilege the option buyer has to pay the seller a fee. iii. Financial Swaps: Swaps is an arrangement whereby a firm borrows in the currency in which it has advantage and exchanges the liability with another firm for an equivalent liability in another currency. Under the same currency, the relative strengths of the firms may be with regard to the payment of interest. One firm may have advantage in borrowing at fixed rate of interest while the other in floating rate. Therefore, the swap many involve borrowing at floating rate and exchanging the liabi8lity for payment of inter est with another firm borrowing at fixed interest rate. It is also possible that both currency and interest factors affect the choice for going for a swap. iv. Futures: Currency futures are standardized contracts that trade like conventional commodity futures on the floor of a futures exchange. A standardized forward contract is a future contr4act (quantity, date and delivery conditions are standardized). They are traded on organized exchanges. In future contract a margin is required, future contracts are ‘marketed to market’ on a daily basis i. e. rofits and losses arising on future contracts are settled daily. 2. 1 INTRODUCTION TO THE INDIAN SOFTWARE INDUSTRY India accounted for about 0. 4% of the global software industry with a turnover of approximately Rs. 120 bn, during 1998-99. Of the total turnover, about Rs. 63 bn. is derived from the global markets, while the remaining is from domestic market. India’s global software revenues are from the US (56. 3%) and Europe (24%) which together contributes about 80% of the export revenues. The Indian software industry is fragmented with over 600 players. However, the major 11 companies accounted for approximately 32 % of the total exports during 1998-99. All the software companies have to follow the rules and regulations mention by the Software Technology Pact. The Indian software industry has grown rapidly at a compounded annual rate of 50% from US$ million eight years ago to a US$ 3. 9 billion in 1998-99 according to National Association of software and service Companies (NASSCOME); a faster rate than the US grew in the same stage of this life cycle. Fuelled by domestic deregulation, entrepreneurial flair and the soaring global demand for low-cast, high-quality software and services India is becoming one of the world’s main centers for offshore software work. Among the Fortune 500 companies, 203 outsource software development to India. 2. 2 INDIAN SOFTWARE INDUSTRY ADVANTAGES Qualit y |131 companies have ISO9000 certificate | |Reliability |Ultimate adherence to delivery schedules | | |Customer satisfaction by using state-of-the-art technology | |Cost and time savings |High speed data communications 64 kbps+easing off-shore communications | | |24 hour virtual offices | |Large manpower pool people |115,000 engineers graduate every year | | |Second largest IT professional source in the world | |Year 200 |Fuller range of cost effective solutions | 2. 3 CLASSIFICATION OF SOFTWARE COMPANIES Software companies can be classified based on numerous parameters. The following bases can be there for their classification: 1. Based on software revenue stream consideration the companies can be classified in the following categories. †¢ Core software companies (says revenues from software greater the 50% of the total revenues). †¢ Diversified software companies –those in the area other than software including the sales and service of computer hardware. 2. Ba sed on the work platform employed: the companies may be either or some fo all of the available platforms-say RS 600, LAN, SUN, DEC, AS/400,PS/2, IBM/Mainframe, UNIX/Variants, PC, etc. 3. Based on area of work: ? Software products: the company can be dealing in the software products and packages. ? Software services: the companies can provide software services ins the form of maintenance of the system, up gradation of the software packages, data entry, solutions to Y2K problems, internet needs, etc. ? On-site service company: these are the companies that work on the client premises and have minimum capital expenditure at own office. ? Offshore service company: these offshore development centers works on the project with regular interface with the client via data communication lines. The solutions are development in-house and transmitted/installed in the client premises with the help of data communication. 4. Based on the area of application: the companies can target any of the sec tors as their customer and focus to provide products or services for that sector. Generally the big companies undertake software work in-house to cater to their specific needs rather than outsourcing the same. The sector of focus can be agriculture, banking, communication, telecommunication, finance, manufacturing, etc. 5. On the basis of growth achieved: ? The companies can have an established reputation in the market with solid base and some assurance of business. They enjoy high growth and are experiencing movement up the value chain. ? The companies can otherwise be startup concerns. These are typically promoted by some technocrats and are vying to making a placer for themselves in the market. They are generally at the low level in the value chain. Survival is the main concern. 6. On the basis of ownership: ? The companies can be multinational’s subsidiaries that are doing job exclusively for the parent company. The parent MNC typically supports them financially and ot herwise. There is assurance of business so the risks are minimal. ? The captive software division or separate company owned by Indian Company for their captive use. The Indian companies that are in the fray to provide solutions on competitive basis as any other vendor in the open market. They do not have captive clients. ? The joint ventures between the foreign company and Indian company to provide in-house support as well as to have commercial operations as any other company in the open market. 2. 4 VALUE CHAIN OF SOFTWARE INDUSTRY The value chain of the software industry is very difficult to conceive. These are rather two sub-segments of the industry having their separate value chains-Software products and software services. While the product is a height-risk strategy as the investment has to be made upfront and the revenue generation is later, the margins are therefore higher to compensate the risk therein. The services are having a low element of risk in them. The investment and the revenue generation are simultaneous. The margins are therefore low as compared to the products. The company can adopt either of the strategy depending on its risk profile and preference. While Infosys has been persistently moving in the product direction, the Wipro strategy is of service. The movement up the value chain is usually accompanied with the following effects. |FROM |TO | |Manpower multiplication game |An intellectual roperty business | |Suppliers of cheap labor |Providers of value added service | |Pay for effort |Pay for solutions | |Focus on the lower costs |Focus is more on quality | |Slow growth, low margins, and manpower Dependant Company. |Faster growth, higher margins and fewer person-dependants | |The value that customer obtains will be measured in terms of |company. | |man-hours spent. |The value that customer derives shall be measured in term of | | |function points delivered or maintained, and in terms of business| | |leverage that the customer obtains f rom the product | | Don’t waste time! Our writers will create an original "Foreign Exchange Practices and Hedging Tools in the Software Industry" essay for you Create order