Counseling and Alcoholism

Counseling and Alcoholism

Effective Ways of Motivating Treatment for Alcoholic Adolescents

 

Introduction

            Alcoholism is one of the problems that the society faces today. It does not only affect certain individuals and families, but the whole community as well. It has been reported that approximately 14 million Americans or about 7.4% of the adult population meet the diagnostic criteria for alcohol abuse or alcoholism ( 2006). In addition, many diseases are being attributed to alcoholism, such as cancer, psychological disorders, ulcers, brain damage, glandular problems, birth defects and other bodily malfunctions. These diseases cause the lives of many Americans annually. Moreover, adults are not the only ones suffering from alcoholism, but teenagers as well. The community and the society become affected with the issue of alcoholism, as many teenagers commit crimes as an effect of drinking alcohol. It has been reported that the total cost attributable to underage drinking, including costs of traffic crashes, violent crime, injuries, and treatment, is over $52 billion per year ( 2006).

With these problems, it is necessary to propose treatment of alcoholism at an early age, preferably to teenagers or adolescents. With an early treatment, the incidence of alcoholism can be lessened in adult years. In this paper, the effective ways of motivating treatment for alcoholic teenagers or alcoholics will be presented. These ways will be evaluated and assessed to examine its effectiveness in convincing adolescents for early treatment of alcoholism. The hypothesis of this study is to prove whether adolescents with a family history of alcoholism is more likely to become alcoholics in the future. This will be proven and supported by the discussion of related studies already done.

 

Definition of Terms

Alcoholism –

Binge drinking --

Hallucinations –

Homicide –

Suicide –

 

 

 

 

 

 

 

 

 

 

 

 

 

Review of Literature

Facts on Alcoholism

            Alcoholism is also known as alcohol dependence and is considered a disease with symptoms such as craving or feeling a strong urge to drink; loss of control or not being able to stop once drinking has begun; physical dependence such as nausea, sweating, shakiness, and anxiety; and tolerance or drinking greater amounts of alcohol to “get high” (2006). Many people believe that drinking alcohol will and may ease their problems regarding their family, work and the society, but in fact, it would not. Acquiring alcoholism may lead to more serious complications and fatal illnesses that would cause the person’s life.

            Several think that alcoholism is a disease, and in fact, the  (2006) is supporting this statement. The Institute explains that the craving that an alcoholic feels for alcohol can be as strong as the need for food or water, and an alcoholic will continue to drink despite serious family, health, or legal problems. Moreover, like many other diseases, alcoholism is chronic, which means that it lasts a person’s lifetime, usually follows a predictable course, and has symptoms (2006). The risk for developing alcoholism is influenced by both the person’s genes and by his or her lifestyle (2006).

             It has been reported that alcoholism was first recognized as a disease in the 1930s by a group called “Alcoholics Anonymous”, and since then, the American Medical Association has recognized alcoholism as a serious and chronic disease (2005). Alcoholism takes time to develop, but once it develops, it does not go away (2005). Cure is not available for alcoholism, but is treatable, and with proper treatment, an alcoholic will be able to reclaim his or her normal, satisfying lifestyle (2005).

            It has been reported that the World Health Organization (WHO) estimates that there are about 2 billion people worldwide who consume alcoholic beverages and  76.3 million with diagnosable alcohol use disorders (2004). From a public health perspective, the global burden related to alcoholism and alcohol consumption, both in terms of morbidity and mortality, is considerable in most parts of the world (2004). Moreover, given alcohol’s significance in world health, the World Health Organization has been developing a database since 1996, named the Global Alcohol Database, in its aim in providing a standardized reference source of information for global epidemiological surveillance of alcohol use and its related problems (2004). This database will be helpful for the organization to record the incidence of alcoholism worldwide. This is essential so the government can take action and responsibility in proposing or implementing programs to help lessen the incidence of alcoholism.  

Similarly, in the United States, alcohol is still the number one drug problem, and affects adolescents, middle-aged people and senior citizens, and people of all races, religions, intelligence levels and professions (2005). In fact, there are approximately 18 million alcoholics in America (2005), and this high incidence affects many aspects in the society. In 1995, the estimated annual cost of alcohol abuse in the United States was $166.5 billion, where alcohol use disorders cost $56.7 billion more than the estimated annual economic cost of illegal drug use and $36.5 billion more than the estimated annual economic cost of smoking ( 2006).   

 

Effects of Alcoholism

             Alcoholism presents a variety of effects, not only on the physical or biological aspect of an individual, but on the society as well. It has been reported that short-term physical effects of alcohol use include distorted vision, hearing and coordination, altered perceptions and emotions, impaired judgment and hangovers (1999). On the other hand, long-term physical effects of heavy alcohol use include loss of appetite, vitamin deficiencies, stomach ailments, skin problems, sexual impotence, liver damage, heart and central nervous system damage, and memory loss (1999). Long-term physical effects also include diseases and organ malfunctions. These diseases include brain damage, which varies from psychosis to permanent memory loss; cancer, such as in the mouth, esophagus, and stomach due to the irritating effects of alcohol; heart disease, such as an enlarged heart and congestive heart failure; liver damage leading to cirrhosis or scarring of the liver and liver cancer; ulcers that produces stomach and intestinal irritation; glandular problems in the adrenal and pituitary glands; and birth defects on women who drink alcohol during pregnancy (2005). This condition is known as Fetal Alcohol Syndrome or FAS (2005).

            Aside from the diseases caused by alcoholism, it also presents psychological and psychiatric problems, which in turn determines social issues happening in the society, such as suicide, accidents, and crimes. Some of these problems include depression, which can be triggered by alcoholism and vice versa; anxiety, which occurs during attempted withdrawal; change in personality with loss of normal behavior and appearance; and hallucinations, which is an affect of alcohol withdrawal ( 1997). These psychiatric problems often lead to social issues such as suicide, which is result of depression; accidents, being a result of drunk-driving; and physical abuse, which are the cause of a large portion of homicides, child abuse cases and other domestic violence cases (2005).

 

Adolescent Alcoholism

            Alcohol abuse and alcohol dependence are not only adult problems, but they also affect a significant number of adolescents and young adults between the ages of 12 and 20, even though drinking under the age of 21 is illegal (2000). According to a research done by the National Institute on Alcohol Abuse and Alcoholism, adolescents who begin drinking before age 15 are four times more likely to develop alcohol dependence than those who begin drinking at age 21(2000). In addition, drinking at an early age can also be associated with alcohol-related violence, not only among persons under the age of 21 but among adults as well (2000).

            It has been estimated that over three million teenagers are alcoholics, and several million more have a serious drinking problem that they cannot manage on their own (2000). This is why early treatment of alcoholism in adolescents must be done to prevent further damage on their lives. It has been mentioned earlier that alcoholism presents grave threats on the lives of many individuals, especially on the lives of many teenagers. These threats include accidents associated with drunk driving, and crimes. It has been reported that the three leading causes of death for 15 to 24 year olds are automobile crashes, homicides and suicides, and alcohol is a leading factor in all three (2000). While drinking may be a singular problem behavior for some, research suggests that for others if may be an expression of general adolescent turmoil that includes other problem behaviors and that these behaviors are linked to unconventionality, impulsiveness, and sensation seeking (2000).

            It has been reported that binge drinking, often begins around the age of 13, tends to increase during adolescence, peak in young adulthood in the ages between 18 to 22, then gradually decreases (2000). Individuals who increase their binge drinking from the age of 18 to 24 and those who consistently binge drink at lease once a week during this period may have problems attaining the goals typical of the transition from adolescence to young adulthood (2000). These goals include marriage, education, employment, and financial independence (2000).

            Moreover, alcohol use among adolescents has also been associated with considering, planning, attempting, and completing suicide (2000). Research does not indicate whether drinking causes suicidal behavior, only that the two behaviors are correlated (2000). Suicide is also related to depression and anxiety, for these behaviors somehow trigger alcoholics to result to suicide. In addition, these behaviors can also become severe with the influence of alcohol. This is why during the event of suicide, the alcoholic has already experienced severe depression and anxiety prior to the activity, including the fact that with the influence of alcohol, a person cannot make sound judgments.

            Furthermore, the influence of peers can also be attributed to adolescent drinking. More often than not, adolescents become exposed to alcohol drinking through their peers. With this, the role of the parents becomes crucial in the discipline of their children. Proper guidance must be given to adolescents regarding drinking alcohol. Education also is important, for information regarding alcoholism and drug abuse must be give to adolescents for early prevention.

 

Parental Guidance and Influence

            (2000) reports that parents’ drinking behavior and favorable attitudes about drinking have been positively associated with adolescents’ initiating and continuing drinking. Children who were warned about alcohol by their parents and children who reported being closer to their parents were less likely to start drinking (2000). Lack of parental support, monitoring and communication has been significantly related to frequency of drinking, heavy drinking, and drunkenness among adolescents (2000). Harsh, inconsistent discipline and hostility or rejection toward children have also been found to significantly predict adolescent drinking and alcohol-related problems (2000).

             

 

Methodology

            Thirty participants (30) will be included in the study, and will be randomly selected from the population. The age will be considered, for only 13 to 20 years olds will be asked to participate in the study. This age bracket will be considered because at these ages, adolescents become exposed for the first time to alcoholic drinks or beverages. The socioeconomic status of the participants will also be considered, for it can be assumed that many adolescents belonging to the lower class of society are more exposed to alcoholic drinks compared to the adolescents belonging to the middle class or from the elite. Aside from these, the education of the participants will also be considered. Education is also a good basis for the knowledge of the participants regarding alcoholism.    

These 30 participants will be asked to answer a questionnaire, for easy evaluation of their exposure and interest in alcoholic drinks. The questionnaire will have 20 questions that will be answered by each of the participants.     

 

Summary

           

     

 

 

 

 

 

 

A Sample Strategic Human Resource Management Report

Strategic Human Resource Management

Introduction

Within business corporations, the idea of SHRM applied in individuals are managed is the most crucial factor in the whole array of competitiveness. Many firms, both large and small, have built substantial businesses by translating the concept into frameworks, methodologies and prescriptions. Little thought was given to the recruitment of the right workforce (Kaufman, 2007). There is a little investment was made in the development of human resource, and the modes for industrial disciplines are in the demise (Leacock, 2008). The “hire and fire” is an additional conflict in industrial relations and gradually affecting the entire organization. The success to deliver compliance is impossible if the organization can’t handle this kind of dilemma.

Background of the Study

SHRM affect how organizations are changed, and how they perform. It also affects how employees are treated, affect security of employment and affect the nature of employment. The influence of SHRM reached even into the deepest ties of individuals relationships (Mattila, 2001). The SHRM’s theories and practices mediate the clashing concepts or idea in human resource. Although SHRM initiatives are frequently presented by the proponents as simply technical matters like the means of improving organizational performance and frequently owe the influence to other affinities.

In the company where I am currently working, I noticed that there is a problem that emerged among the workforce.  The Company located in Vietnam and its nature is acting as a shipping representative for a shipping company (MSC Switzerland). But despite of good reputation of the company, there is a current problem among the HRM such as the high turnover rates or low level of motivation and employee loyalty. These problems are seen in my workplace and which affected the overall performance of the employees.

Research Objectives

In order to answer the problems recognized in the human resource management, there are four objectives that can be used as guidelines in answering these questions. First is to recognize the strategies that are adopted and used for human resource management. Second is to determine the appropriate approach that can answer the problems within the human resource. Third is to assess the effectiveness of the strategic human resource management through consulting the wide arrays of case studies that criticizes the SHRM. And fourth is to evaluate the changes which can direct the success of employees’ performance and job satisfaction.

Brief Literature Review

Strategic Human Resource Management (SHRM) is one of the most powerful and influential ideas to have emerged in the field of business and management for it promote a high performance workplaces and human capital management. SHRM deals with organizational performance and systems of practices (Slangen & Hennart, 2002). The role of SHRM transforms a firm’s employees from commodities that provide negligible competitive advantage and middling work performance to human assets and sustaining the heightened work motivation, expanded job opportunities, and unique skills, knowledge and abilities (Salaman, Storey, & Billsberry, 2005, Long, 2008). The promotion of the various values such as doing the duties and responsibilities, respect for the other people, and the performance with excellence are only few of the ethical application on SHRM (Linton and Rogers, 2006). The leadership styles affect the level of performance of each employee as well as the process of motivation (Srinivasan, 2004). A leader that valued his people is well loved by his employees and can gain the loyalty of his people much more on the style of an autocratic leader (Som, 2007).

Methodology

In the overview of the methodology provided in the study, the quantitative approach and the participants are the people who work within the shipping company in Vietnam.  To gain the needed information, the study will use the improvised questionnaires through the closed-ended questions. Survey and interview will be provided to the participants who are chosen through the convenience sampling.

Significant Contribution

The significance of the study is provide a quality research regarding the strategic human resource management (SHRM). Since the modern organizations are emerging, it is only appropriate that certain changes and improvements are applied in the human resource management. In addition, the underpinning factors that motivate the study are the evolving problems in human resource such as workloads, low morale, and low employee loyalty that demonstrates the lack of attention and concern from the management. These problems are existing in both literature and real-life situations. Therefore, upon completing the paper, the study can create a significant contribution in both academic contexts and business. Furthermore, it is assumed that the completion of the study will also attract the other research prior to the result of the study and be open for other corrections or augmented research.

 

 

References:

Kaufman, B., 2007. Theorizing Human Resource Management and the Firm’s Demand for HRM Practices. [Online] Available at:  http://aysps.gsu.edu/publications/2007/downloads/07-30%20Kaufman-ThorizingHumanResourceManagement.pdf [Accessed 30 November 2011].

Leacock, J., 2008. Management of Service Quality Workshop, Caribbean Tourism Organization [Online] Available at: http://www.onecaribbean.org/content/files/joanleacockmsq2008.pdf [Accessed 30 November 2011].

Linton, A., & Rogers, K., 2006. SHRM Foundation Ethics: The Fabric of Business Supplemental Materials [Online] Available at: http://www.shrm.org/about/foundation/news/Documents/Ethics_Discussion_Guide.pdf [Accessed 30 November 2011].

Long, J., et al., 2008. Applications of Grounded Theory in Human Resource Management. Proceedings of ASBBS, 15(1).

Mattila, A., 2001. The Impact of Relationship Type on Customer Loyalty in a Context of Service Failures, Journal of Service Research, 4(2).

Salaman, G., Storey, J., & Billsberry, J., 2005. Strategic Human Resource Management: Defining the Field. [Online] Available at: http://www.sagepub.com/upm-data/9919_040313Intro.pdf [Accessed 30 November 2011].

Slangen, A., & Hennart, J., 2002. Cultural Distance and Foreign Direct Investment: A Comprehensive Model Explaining the Impact of National Cultural Difference on entry Mode Choice and Subsidiary Performance [Online] Available at: http://www.aueb.gr/deos/EIBA2002.files/PAPERS/C203.pdf [Accessed 30 November 2011].

Som, A., 2007. What Drives Adoption of Innovative SHRM Practices in Indian Organization? The International Journal of Human Resource Management [Online] Available at: http://www.ashoksom.com/8-Adoption-Inovative-SHRMpractices.pdf [Accessed 30 November 2011].

Srinivasan, M., 2004. Perspective on Motivation [Online] Available at: http://nextfuture.sriaurobindosociety.org.in/feb04/nffeb04_motivation.htm [Accessed 30 November 2011].

Research Proposal on Predicting Stock Returns Using Regression Modeling

Predicting Stock Returns Using Regression Modeling

Introduction

There are many empirical studies in the stock return that shows economically and statistically relevant in forecasting the gains on its return. The prediction of the analysts is entirely based on their knowledge and past experiences in the stock exchange. Most of the analysts enjoyed the freedom to collaborate and explore the other opportunities in close prediction of the stock return especially when they are hired by the company. In a deep sense, a business analyst or an economist is not effective in the field of work if he or she did manage to forecast the future of the company.

 

Background of the Study and Problem Statement

The composition of the regression modeling is said to be an advisable predictive tool which is also widely used in the professional business. Regression, according to the mathematical context is composed of variables that can help an individual or an analyst to predict the stock return of a corporation (2008). Based on that particular idea, the other elements of the stock market such are dividend are needed to be assessed in the attempt to develop a sound regression model. However, the question on how can analysts measure its usefulness in the stock exchange and global trading remains the center of the study.

 

Research Objectives

The study has various objectives but only two are emphasized which is first, the attempt of creating a sound predictive regression model. And second, to deliver the created model as an effective predictor in stock return. The standard model is basically inspired by the changes happened in the business environment such as sudden economical trends which is a great burden not only on the analysts but as well as on the business leaders. 

Research Questions

The study provided certain questions in its journey toward the determination of predictive regression model.

1.      What is the importance of regression model when it is applied in the business setting?

2.      What are the proposed strategies to accommodate the need in predicting the stock return?

3.      What would be the factors that need to be considered in the formulation of an predictive regression model?

Literature Review

It is often argued that if stock markets are efficient then it should not be possible to predict stock returns. Using a simple regression model this means that none of the variables in the following stock return regression should be statistically significant (2004). The predictive regression model basically examines the evidences and afterward predicts in the excess of stock returns or for predicting the return in equities (1996; 2008). There are two types of regression which is the linear regression and multiple regressions that both utilized as an effective predictive tool in stock exchange. The stock market volatility is another considered factor or predictor of the future returns. Although there are other models that are available to use in predicting the stock return, the regression model is still recognized as an essential tool that measure the generated predicted results than of the other predicting models. It is now well known that if the predictor variables are highly persistent then, the predictive regression is considered biased and their limiting distribution is non-standard when the innovations of the predictor variable are correlated with returns. This is because of the dividend-price and earnings-price ratios while the innovations and the long-short interest rate ( 2008).

Methodology

The applied method utilized in the study is the comparative case study method that serves as an engine to keep the research to reach the highest positive answer to the main topic. The comparative case study method is an effective tool to review, examine, compare, and promote other better ideas in predicting stock return using the regression model. Significantly, the information gathered are suitable to the questions adhering in the main topic which is another advantage of the entire study.

Analysis

A robust regression method can be used in the approach that yields quite different conclusions than the currently accepted wisdom on the stock return. These results illustrate the important role that regression model plays in careful financial analysis and modeling, by providing modern methods. The regression models are subject in the analysts’ portfolio in determining the effective position of the company’s share in the stock market.

Conclusion

The regression model in business settings aims to change the calculation of the velocity of the return in the stock market as well as the equities. Furthermore, the business analysts are anticipated to look for a solution that can be easily derive to the predictions in the stock returns without enduring the crucial phases of computations.

Case Study: Internationalization in Education

Case Study: Internationalization in Education

            The 21st century had witnessed an intense interest and debate on the international dimension of education. Internationalization of education made possible the emergence of new realities in both local and global contexts apart from presenting changes, introducing new trends and posing different challenges. At this point, internationalization of education is now a priority because of the reasons of mobility, academic standards and quality, teaching and research collaboration, profile of institution and curriculum development. Student mobility is more apparent internationalization of education abroad, crossing borders and adhering to internationalized programmes, courses, curriculum and projects and even teaching staff whereby student mobility implicates teacher mobility as well. Other drivers of the educational internationalization initiative include intercultural understanding, diversification of faculty and student, international student recruitment and regional issues and integration. One among the several countries that consider internationalization as the key for cultural, economic and political development is China. Clearly, the Chinese educational system seems to be more willing to internationalize for the purpose of status advancement.

            As I already noted in my previous assignments that internationalization occurs at national and institutional levels through the process of integrating international, intercultural and/or global dimension into the purpose, functions and or delivery of education. Taking from this definition, internationalization of education has several dimensions and it is a dynamic process requiring institutional change. Internationalization also puts emphasis on exchange between different nations and cultures hence such internationalization happens through a precondition of different nations and cultures are inexistence. For instance, internationalization could occur if China could share the same ideals with other nations specifically the Asian countries which at some point acknowledges the importance of Confucianism (Welch, 2008, p. 4). One could also highlight the element that China is a non-English speaking nation which makes it more susceptible to internationalization. Further, China is also more than willing to introduce new innovations and developments in international academic mobility through becoming more competitive and strategic in their recruitment efforts.   

            Internationalization of education in China happened in the onset of 1990s wherein internationalization and globalization both have influences on the education system. This is the time when internationalization of education is gaining more importance and drawing away from simple mobility. Internationalization during this time makes possible the emergence of curriculum development and consortia of universities in regional and global levels. This is also the time of greater integration international perspective in various dimension of education including education programs, administrative structure and life on campus. Link and/or cooperation between governments and institutions through education-related policies are strongly emphasized. Commercialization of education was therefore apparent. China, nevertheless, long engaged in internationalization of education by means of dispatching students abroad as well as members of the faculty to further competence. Along with this, China is also increasingly adopting foreign academic patterns.

It would be necessary to note inhere that in the majority of developing countries internationalization of education is mainly affected by actors such as student and teacher mobility, advanced research as part of enhancing quality of education and to establish world class universities particularly in China. Thereby, internationalization of education in China is shaped by the transition from technical to escalating global competition and from personal mobility and transplantation of educational models and systems into standardization of programs, degrees, diplomas and transnational education. In China, the changes is being initiated by regional and/or international organizations the transfer from nation-oriented into institutions-based. What makes Chinese internationalization even more leveraging is the participation of the private sector and corporations especially that China expressed intents to join the WTO (Welch, 2004, p. 3).

            With this said, China is both import and export-oriented when it comes to internationalizing its educational system. China’s internationalization is, however, not only affected by economic factors and development but is also affected by the status of English language usage. There is therefore the necessity to consider the normalcy of English language in China so that internationalization of the Chinese curriculum would be put in context (Wachter, 2008, p. 2). English language serves as a both barrier and catalyst to further internationalization of education, which generally shapes the academic marketplace internationally. As such, China imports English-language products and personnel for the purpose of enhancing the quality of learning and research while also exporting educational programs and outcomes with distinctive characteristics. China also attracts foreign students to experience what the Chinese academic institutions could offer academically. Program mobility is another aspect that characterize Chinese education internationalization. Chinese government also encouraged foreign universities to establish branch campuses in their soil.   

            The birth of the new wave of Chinese intellectuals is made possible by the dispatching abroad via public funding. The main point to consider is that students and even faculty members are sent abroad but are carefully chosen from leading universities hence are quite limited. Furthering studies and research is the key rationale in sending off intellectuals. It was in 1980s when students are permitted to study abroad by means of own expense, leading to dramatic rise in the number of Chinese students attaining education in foreign lands, mostly Western and developed countries. The limitation, however, is brain drain where home countries have evidently no benefits international education and student mobility because of context-dependence and unopenness to international commerce which produce legitimate jobs aligned with the knowledge, competence, capabilities and expertise of international students.

On the other hand, while Chinese students are opting to study abroad, the Chinese government had instituted various measures to attract foreign students to study in China. Nevertheless, considering the escalating importance of the Chinese language, only short-term language courses are prioritized. Evidently, sending out students constituted the most important factor of internationalization of education in China. China is considered to be one of the main importers of cross-border education through institution and program mobility. Students could pursue cross-border education provided that there will be an international recognition of degrees and professional qualifications. Welch (2005) stresses the values of mutuality and reciprocity, emphasizing that universities should continue to welcome foreign students minus the need for special effort to recruit them (p. 73).

            The phrase internationalization of education was given a new context and meaning when it comes to Chinese academic setting and is eventual internationalization. Internationalization activities which include curriculum development and importation of foreign educational programs have come to play a central role in the process as well. Internationalization of curriculum is driven by introduction of English-language products in Chinese campuses, implementation of the medium of instruction as English or bilingually and integration of an internationalization dimension into teaching and learning process. For instance, recent original English-language textbooks are translated while also utilizing English-language textbooks that are published and used by leading universities in the world. Another thing, Chinese educational institutions are favoring the use of bilingualism if not pure English as a medium of instruction. Schools and campuses are also identified based on their English proficiency. Numbers of programs introduced concerning foreign language and/or cross-cultural studies become important aspect of internationalization, all for the sake of international professional qualifications.

            Further, there had been the rapid increase in the number of joint and/or transnational programs through partnerships with foreign institutions. Hong Kong universities proved to be easy target of these joint programs. Collaboration is yet another aspect of Chinese education internationalization apart from the initiatives that are coming from the part of the Chinese government. While attracting foreign students, the Chinese government is also providing educational services for local students outside China. Internationalization is evident from two directions: degree programs provided on Chinese campuses and degree-conferred programs offered outside China although the latter is relatively smaller compared to the former. What China did was to encourage foreign academics, programmes and institutions to offer their services in China to contribute to capacity building. China explicitly stated its aim to attract high quality educational resources from overseas and to introduce globally advanced curriculum and teaching materials which are urgent in China (OECD and World Bank, 2007, p. 50).  

Rapid progress has been made though through establishing branch campuses via partnerships with various educational institutions outside China. Several brand campuses of foreign education institutions opened in China recently. Through partnerships with offshore educational institutions, China and the host country where the partner resides were able to recruit students cooperatively and curriculum, credits, diplomas and degrees are mutually recognized. A transnational educational activity, Chinese educational institutions partnered primarily with other Asian countries. Urquidi (2001, p. 273) noted that educational institutions often take for granted communication and interchange with other educational institutions. To oppose, Chinese educational institutions have chosen the other way around to interconnect with other institutions alike. The reach of Chinese culture formed the very basis of these partnerships as countries considered are those greatly influenced by Chinese culture. Partnerships widened its reach to include mostly European countries. Transnational programs transported by China are not confined with the language and culture per se but now include professional programs (OECD and World Bank, 2007, p.38).

            In terms of student access, China is among the few which collect reliable data on enrolments in cross-border education programs. Demographic changes, lifelong learning and the changing student requirements created by the knowledge economy are increasing the unmet demand for education and training particularly in post-secondary level (OECD and World Bank, 2007, p. 13). Joint programs, partnerships and establishment of branch campuses inside and outside China are the answers to the growing demand for further education. Increased access for students is often considered a driving motivation for acquisition of further education. In China, however, there remains the issue of equity of access and the quality and relevance of education provided. Mobility is becoming a secondary issue in light of the issues on rate of participation of Chinese students in cross-border programs. The Chinese academic internationalization is more tended on established educational institutions which are mostly housed student elites or simply the private institutions (Hayhoe and Lin, 2008, p. 1).

Same goes with their partners wherein participants of programs and the partner institution themselves are more often than not purports to the well-off. Chinese internationalization is evidently not for massification but commoditized to cater to privileged students. Peter (1996) assert that the mass of the people was satisfied with purely local knowledge traditions, based on custom and tradition rather than science and reason. Social elites with their metropolitan tastes for whom traditional university systems were principally designed, remained isolated although dominant within larger society (p. 1). This is explained, however, by the fact that the limitation of student and academic mobility lies in its cost, which may be unaffordable for Chinese students despite the fact that spending for own education is allowed. Access to student mobility partly depends on the host country’s fee policy and standard of living; study abroad is generally a big investment.  

Given this limited resources, Chinese government can also support a handful of students. Most students are self-funded but only a limited number of families are able to meet the cost. Affording to send child or children abroad to study thereby depends on the capacity of the government if not of the families. Fee-paying students are attracted generally but are limited to the privileged members of the society (OECD and World Bank, 2007, p.23). Throsby (1996) noted that funding education which will be taken abroad or outside the country of origin has inherent issues of who is going to pay for it. Educational budgets and the methods of financing students places are undergoing radical changes. One of the most important indicators is the demography of the possible candidates to be sent abroad and second to which institutions these students will be placed (p. 91). In homeland, the Chinese government supports students who choose to study in foreign universities in China through specific legislations which aim to protect local students against the marketing of sub-standard non-local courses.  

The establishment of several huge universities and through the elaborative funding of the government is yet another dimension of internationalization of education. This is aimed at becoming a world-class player through becoming well-renowned educational institutions. Such initiative has the support of Ministry of Education, central ministries and local authorities. Chinese government still exercises regulation of and authority over internationalization of education as a matter of policy. This policy is normally advocated for a very few limited leading universities due to the fact that the intention is to train elites. Farquhar (1999) made mention that the growing function of academic policy-making should encompass issues on erasing constraints on the admission of international students and endeavoring to streamlining processes of admission, fostering international student mobility in the process (p. 12).

Therefore, there is no stimulation of mass internationalization at China but rather internationalization is restricted to in several selected key institutions. Nonetheless, the goal is capacity development that is why cross-border education is emphasized by the Chinese government. It would be easy to predict that in the coming years, Chinese educational institutions particularly universities will consider becoming world-famous as their primary strategy to arrive at diversity in their student body. To wit, China is no longer lenient to personal mobility and provision of joint programs in partnership with foreign institutions but rather Chinese educational system is now aiming at building own centers of excellence and tapping global competitiveness. Welch and Zen (2007) noted that on one of the adverse outcome is to breed global inequality of knowledge creation and application.

            As such, the internationalization of education in China is not solely influenced by economic reforms rather of more diverse driving forces and worldwide trends implicating domestic socio-economic background. The role of individual institutions that are taking initiatives for involvement in various activities concerning internationalization has been also significant. Internationalization is therefore driven by the challenges faced by the Chinese educational system especially the competitive environment at the global level. Enhancing and pursuing quality in line with internally acceptable standards is central to the internationalization of Chinese education.

Therefore, what motivates student mobility today, aside from possibilities of access and economic prospects, is the reputation and quality of institutions of learning and educational system. Quality issues to student mobility are resolved by national quality assurance and accreditation systems. International schools that provide utmost quality of programmes are perceived to heighten then reputation and profile and increase the value of their programmes on labor market. Nevertheless, China still exports predominantly more students abroad than they accept from abroad and in return, China is also importing more foreign educational programs and services. In terms of educational development, however, China had not yet established the universally-recognized excellence of its own academic system or maintains a quality of learning which can exert academic influence at an international or global level.     

 

References

Furquhar, R. H. (1999). Integration or Isolation: internationalism and the internet in Canadian higher education. Journal of Higher Education Policy and Management, 21(1): 5-15.

Hayhoe, R. and Lin, J. (2008). China’s Private Universities: A Successful Case Study. CIHE, 51.

OECD and World Bank. (2007). Cross-border Tertiary Education: A Way Towards Capacity Development.

Scott, P. (1996). Massification and Globalization: Two Principles in Conflict? International Strategies for Internationalization of Higher Education. Conference Proceedings, Hong Kong.

Throsby, D. (1996). Progress Report on financing and effects of internationalized teaching and learning. Internationalization of Higher Education, pp. 91-111. 

Urquidi, V. L. (2001). International Understanding. In G. Neave, Abiding Issues, Changing Perspectives: Visions of the University Across a Half-Century, (pp. 273-277).  International Universities Bureau of the International Association of Universities: Paris, France.

Wachter, B. (2008). Teaching in English on the Rise In European Higher Education. CIHE, 52.

Welch, A. R. (2004). ‘China ASEAN Cooperation in Higher Education,’ ASEAN and the Prospects for Increased Collaboration. BICA 2003/04 Report Booklet. Education Services in Southeast Asia. Ministry of Finance, Japan/Research Institute for Asia and the Pacific (RIAP). 

Welch, A. R. (2005). From peregrinatio academica to the global academic: the internationalization of the profession. The Professoriate: Profile of a Profession. Higher Education Dynamics, vol. 7. Springer: Netherlands. 

Welch, A. R. (2008). Internationalization of Vietnamese Higher Education: Retrospect and Prospect. In M. Hayden and T. N. Phams, (eds.), The Modernisation of Vietnam’s Higher Education System. Springer Publishers: The Netherlands.

Welch, A. R. & Zhen, Z. (2007). The Chinese knowledge diaspora: Communication networks among overseas Chinese intellectuals. In D. Epstein et al (eds.) Geographies of knowledge, geometries of power: framing the future of higher education (pp. 338-354). Rutledge: London.

 

 

World trade and money

 

 

‘A Discussion as to whether protectionism can be justified, by evaluating the economic effects of selected protectionist instruments on any country of choice’

 

 

 

 

 

 

 

 

 

 

 

Main Text Word Count:    3,502

 

 

 

 

 

Introduction

The fact that trade protection hurts the economy of the country that imposes it is one of the oldest but still most startling insights economics has to offer. The idea dates back to the origin of economic science itself.  The Wealth of Nations has already contained the argument for free trade: by specializing in production instead of producing everything, each nation would profit from free trade. In international economics it is the direct counterpart to the proposition that people within a national economy will all be better off if all people specialize at what they do best instead of trying to be self-sufficient.[1] Economists argue, instead, that protection would be an inappropriate way to correct for most market failures. For example, if wages do not adjust quickly enough when demand for an industry's product falls, as was the case with U.S. autoworkers losing out to foreign competition, the appropriate government intervention should be in the labor market, directly aimed at the source of the problem. Protection would be an inefficient way of correcting for the market failure. Thus, protectionism arises in ingenious ways. As free trade advocates squelch it in one place, it pops up in another and protectionists seem to always be one step ahead of free traders in creating new ways to protect against foreign competitors. [2]

 

 

 

Protectionism

 

Protectionism is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports and anti dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over or competition.[3] The term is mostly used in the context of economics, where protectionism refers to policies or doctrines which protect businesses and living wages by restricting or regulating trade between foreign nations:[4]

 

Subsidies - to protect existing businesses from risk associated with change, such as costs of labour, materials

Protective Tariffs - to increase the price of a foreign competitor's goods on par or higher than domestic prices

Quotas - to prevent dumping of cheaper foreign goods that would overwhelm the market

Tax cuts - alleviation of the burdens of social and business costs

Intervention - the use of state power to bolster an economic entity

 

Free trade and protectionism

Free trade means that there are few and ideally, no barriers to the international exchange of goods and services. Protectionism refers to policies that restrict trade, either through taxes on trade (tariffs) or through numeric control (bans and quotas). Trade has been a prominent subject of economic theory since the classical discussions of comparative advantage by  and others. The subject has grown in importance for social scientists of all kinds, as the well-being of individual societies comes to depend increasingly on the structure and health of the world economy.[5] The theoretical advantages of free trade are straightforward: each country can import goods that would be costly to produce domestically, while exporting goods that would be costly for other countries to produce. In principle then, each country can acquire a set a goods and services with fewer resources than if it tried to produce them all domestically. While it may be true that a country gains from trade on average, opening up an economy has differentiated effects across sectors. There are also a range of situations in which a country may benefit from a strategically chosen restrictive trade policy.[6]

 

 

In theory, free trade is the best policy for countries that exercise little to no control over world prices. Since they cannot affect prices to their own benefit, free trade allows them to achieve the maximum national consumption. However, if a country possesses some degree of monopoly power in exports, it can increase its own welfare through trade restrictions. Most evidence suggests that domestic interests and political concerns are more often the source of protectionism than such tariff considerations.[7]One argument often made in favor of protection concerns infant industries, or those that are deemed essential to the national interest, which may not be able to compete on an international level and such protections are often associated with national fears of dependency on the international economy in such areas as agriculture and defense in which developing countries attempt to recoup the competitive advantage gained by countries that were quicker to achieve a given technological or infrastructural level.[8]

 

 

 

Free trade raises aggregate world production efficiency because more of both goods are likely to be produced with the same number of workers. Free trade also improves aggregate consumption efficiency, which implies that consumers have a more pleasing set of choices and prices available to them.

The simple theory of comparative advantage makes a number of important assumptions: [9]

Ø  There are no transport costs

Ø  Costs are constant and there are no economies of scale

Ø  There are only two economies producing two goods

Ø  The theory assumes that traded goods are homogeneous

Ø  Factors of production are assumed to be perfectly mobile

Ø  There are no tariffs or other trade barriers

Ø  There is perfect knowledge, so that all buyers and sellers know where the cheapest goods can be found internationally.

 

 

 

 

 

 

Arguments for and against free trade

 

While foreign trade isn't as emotionally loaded as say, taxes and government spending, like most topics in economics it stirs the blood of certain people those whose livelihoods and lifestyles are most affected by exports and imports. These people have very real concerns, but those concerns are specific to their individual lives. Economists almost universally believe that foreign trade in a free global marketplace will create the greatest good for the greatest number of people.[10]

The following table below shows one example:[11]   

Table 17.3

 

Food

Computers

 

Possibility C:

 

 

 

United States

6,000

6,000

 

Japan

2,000

6,000

 

Total

8,000

12,000

Total production = 20,000 units

 

 

 

 

With Specialization:

 

 

 

United States

12,000

0

 

Japan

0

12,000

 

Total

12,000

12,000

Total production = 24,000 units

Specialization generates the highest level of production of the two goods. Then, through trade, each nation can consume the amount of the good that it wants to consume. In this way, production is maximized because each nation is doing what it does most efficiently. Today, most arguments against free international trade are mounted by special interest groups. Both labor unions and management oppose free trade when they believe sometimes correctly, sometimes incorrectly that it will make them worse off. What they conveniently ignore is that free trade will make everyone else better off.[12]

The arguments most often heard are:[13]

Ø  It's important to keep jobs in the United States

Ø  They don't want money leaving the country

Ø  National security is at stake.

Ø  Other nations don't treat their workers fairly.

Ø  Other nations are dumping and don't open their market to us.

 

 

 

When other countries practice protectionism, the preferred method is to work toward free or at least fair trade through a process of negotiation. These processes have been quite useful in recent years and have brought the world into an age of much freer international trade.[14]

Exchange rates

During the previous decade, Mainland China's Currency was pegged to the U.S. dollar at 8.28 RMB. On July 21, 2005, it was revalued to 8.11 per U.S. dollar, following the removal of the peg to the U.S. dollar. The revaluation resulted from pressure from the United Stated and the World Economic Council.  The People's Bank of China also announced that the Renminbi would be pegged to a basket of foreign currencies, rather than being strictly tied to the U.S. dollar and would trade within a narrow 0.3 percent band against this basket of currencies. China has stated that the basket is dominated by a group of international currencies including the U.S. dollar, euro, Japanese yen and South Korean won, with a smaller proportion made up of the British pound, Thai baht and Russian ruble.[15]

 

 

The government has resisted pressure to increase the value of the RMB, out of concern that it would cause mainland Chinese jobs to disappear and would also expose domestic banks to currency risks that they are not prepared to handle. Many economists believe that only fixed exchange rates or floating exchange rates are stable over the long term, because a one time change in exchange rates might cause speculators in the future to take positions on possible exchange rate fluctuations which would lead to pressure to completely float the currency.[16] Furthermore, many economists have pointed out that manufacturing jobs have been declining in the United States for decades. Some people have suggested that blaming the lack of job growth on the value of the RMB is merely a convenient misdirection on the part of the vested interests, including Bush administration, inefficient businesses and labor unions fearful of competition.[17]

 

 

 

 

 

 

 

 

 

The impact of exchange rate fluctuations

After analyzing the relationships between the exchange rate and foreign trade, there is a need to assess properly the role of exchange rates in the economy. Although exchange rates play a key role in adjusting a market economy, there are so many variables that influence the economy that we cannot put excessive emphasis on the importance of any of these, especially the impact of exchange rate on trade payments and employment. Exchange rate distortions will damage the economic structure, while excessive exchange rate fluctuations may trigger financial turmoil. The relationship between the exchange rate and monetary policy is currently at its closest, perfecting the market-oriented exchange rate forming mechanism is a target of our reforms. This is not only of significance to promoting China's industrial structural adjustment and harmonizing the situation between different regions and sectors, but is also of practical importance to achieving macro management targets.[18]

 

 

 

 

 

China has been implementing and will continue to implement a market-driven managed floating exchange rate system, which fits well with the rules of the market economy, perfecting the exchange rate forming mechanism is a comprehensive reform, and there are never simple adjustments to the exchange rate levels. Perfecting the exchange rate mechanism should not be confined to broadening the floating range. It should also include things like steadily propelling the convertibility of the renminbi and improving trading patterns in the forex market.[19] Aside, China is a developing country, its currency is not an international clearing currency, its financial markets are not fully developed and the financial system is relatively fragile. If major fluctuations occurred in its exchange rate, this may cause a financial or even economic crisis. The international coordination needs to be enhanced.[20] In order to prevent financial risks and possible impact that may result from interest rate fluctuations and protect regional and international currency and financial stability, the international community needs to strengthen co-operation in currency and financial arrangements. The international community, especially developed countries, should not just emphasize the benefits of financial liberalization but ignore the huge risks it may bring.[21]

China has achieved sustained and rapid economic growth, markedly enhanced overall national strength and constantly improved people's life since its adoption of the reform and opening-up policy. China has become a positive force for the economic development of Asia, Europe and the world as a whole. The private sector is driving growth and can be strengthened further as their private ownership has become substantial, producing well over half of GDP and an overwhelming share of exports.[22] Private companies generate most new jobs and are improving the productivity and profitability of the whole economy. The government has restructured the state-owned business sector, resulting in a massive loss of jobs. Still, a large part of the state sector remains to be restructured; policies to facilitate this process have been identified and are being expanded.[23] The performance of the business sector could be strengthened more through a further modernization of the business framework and better enforcement of laws in the economic sphere for intellectual property rights. A more flexible exchange rate would support a stable macroeconomic environment while fiscal policy has been run in a establishing the outcome of monetary policy has been considerable volatility of inflation.[24]

 

Furthermore, greater flexibility of the exchange rate would allow the authorities to guard against any further increase in inflation in both product and asset markets, more easily adapt monetary policy to domestic concerns, and allow market forces to determine bank interest rates to a greater extent. Wide-ranging reforms have improved the capacity of banks to make market- based lending decisions.[25] The policies appear to have been successful, as new loans have been of much higher quality, even using the new, more realistic, classification system for non-performing loans. Further progress will require a continued focus on improving governance and increasing private ownership and policies designed to expand and further deregulate capital markets would improve the allocation of capital, lower the risk of further waste of savings, and minimize systemic risk.[26] The pace of economic change in China has been extremely rapid since the start of economic reforms such an increase in output represents one of the most sustained and rapid economic transformations seen in the world economy in the past years. It has delivered higher incomes and a substantial reduction of those living in absolute poverty.[27]

 

 

 

Many industries have become completely integrated into the world supply chain and on current trends China could become the largest exporter in the world by the beginning of the next decade. Underlying this growth there has been a profound evolution of economic policies that has transformed the efficiency of enterprises. This extraordinary economic performance has been driven by changes in government economic policy that have progressively given greater rein to market forces. While price controls were being abolished, the government introduced a pioneering company law that for the first time permitted private individuals to own limited liability corporations.[28] The government also rigorously enforced a number of competition laws in order to unify the internal market, while the business environment was further sharpened by allowing foreign direct investment in the country, reducing tariffs, abolishing the state export trading monopoly and ending multiple exchange rates. The momentum towards a freer economy has continued this decade with membership of the World Trade Organization resulting in the standardization of a large number of its laws and regulations and the prospect of further tariff reductions.[29]

 

 

 

 

In addition, fundamental changes were made to the constitution in 2004, stressing the role of the non-state sector in supporting economic activity in the country and protecting private property from arbitrary seizure. In 2005, regulations that prevented privately-owned companies entering a number of sectors of the economy, such as infrastructure, public utilities and financial services were abolished these permitted the emergence of a powerful private sector in the economy.[30] China’s exchange rate system is a work in progress. The accelerating pace of change makes efforts to analyze it like attempting to hit a moving target. In July 2005, following more than a year of intense discussion, the government announced that it was revaluing the renminbi by 2.1 per cent, switching from the dollar peg to a basket, and allowing the currency to float more freely.[31] In August it expanded the forward market by allowing all banks, including foreign banks, with licenses to trade in the inter-bank foreign exchange market to transact renminbi forward and swap contracts with clients as well as in the inter-bank market, and it allowed the banks to determine forward rates independently. In September the authorities eliminated an inconsistency between its rules for fluctuations against the dollar and fluctuations against the basket.[32]

 

 

Under the new regime instituted in July daily fluctuations against the dollar were supposed to be limited to 0.3 percent per day, while at the same time daily fluctuations against the basket were supposed to be limited to 1.5 per cent. The problem was that if the dollar moved against other currencies by 2 per cent in a day, a not unprecedented event, it might prove impossible to respect both rules at the same time.[33] On September 23rd the People’s Bank of China therefore announced that henceforth the renminbi would be allowed to fluctuate by 3 percent a day against the euro, yen and other non-dollar currencies, essentially relaxing this constraint. On November 25th, exchange regulators announced that they were going ahead with a system of market makers to trade the renminbi against foreign currencies and the PBOC enhanced the ability of the banks to hedge foreign currency exposures by conducting its first domestic currency swaps, selling $6 billion to 10 domestic banks at the current exchange rate with an agreement to buy them back in a year’s time.[34] The argument for protectionism may sound appealing, supporters of protectionist laws claim that keeping out foreign goods will save jobs, giving ailing domestic industries a chance to recover and prosper, and reduce the trade deficits. Are these claims valid? Protectionist laws raise taxes on imported goods and/or impose limits on the amount of goods governments permit to enter into a country. They are laws that not only restrict the choice of consumer goods, but also contribute greatly both to the cost of goods and to the cost of doing business.[35]

So under protectionism people end up poorer with less money for buying other things they want and need, protectionist laws not only force them to pay more taxes on imported goods but also raise general taxes as well. This is because governments invariably expand their Customs Department bureaucracies to force compliance with their new rounds of trade restrictions.[36]

 

Protectionism: Who Gains?

 

Those who gain from protectionist laws are special-interest groups, such as some big corporations, unions, and farmers' groups all of whom would like to get away with charging higher prices and getting higher wages than they could expect in a free marketplace.[37] These special interests have the money and political clout for influencing politicians to pass laws favorable to them. Politicians in turn play on the fears of uninformed voters to rally support for these laws. "Protectionism is a misnomer. The only people protected by tariffs, quotas and trade restrictions are those engaged in uneconomic and wasteful activity. Free trade is the only philosophy compatible with international peace and prosperity."[38]   Senior Economist, Fraser Institute (Canada)

 

 

 

The Solution: Free Trade

During the 20th century, journalist  made a similar observation:[39] society thrives on trade simply because trade makes specialization possible and specialization increases output and increased output reduces the cost in toil for the satisfactions men live by that being so, the market place is a most humane institution as the protectionist is not against the use of every kind of force even warfare to crush his rival. Aside, exchange rate fluctuations have once again become the focus of the market, following significant appreciation in Asian currencies like the Japanese Yen and Korean Won against the US dollar, accompanied by similar upward pressure in the values of China's Renminbi which recently broke through at a level of NTD33.8 to USD1.[40] Therefore, the observation of exchange rate fluctuations over the last two years shows that how the NTD fares are linked to what is happening to other nations within Asia. In short run, the electronic components industry is vulnerable to impact from exchange rate fluctuations.[41]

 

 

Conclusion

In conclusion, the premises of protectionism concepts causes higher prices for consumers because domestic producers are not exposed to foreign competition and can therefore keep prices high and that in a way domestic exporters may suffer because foreign countries tend to retaliate against protectionism with tariffs and barriers of their own sanctions. Thus, in the long run exchange rate fluctuation is never a critical factor affecting the competitive strength of the industry. Technical competence, production technique upgrades and reduction of general production costs should be considered the most critical factors affecting local manufacturers and success while fending off impact from changes in the greater environment, including exchange rate fluctuations, must also be included in management considerations.