Development And Implementation Of Special Economic Zones Economics Essay

Development And Implementation Of Special Economic Zones Economics Essay A Special Economic Zone (SEZ) is a geographical region that has different economic and other laws and is more free market oriented in comparison to a countries established laws. India first passed the Special Economic Zone Act in the year 2005.This paper discusses the advantages and disadvantages of a Special Economic Zone and how it benefits Foreign Direct Investors and the scope of Project Development in India in a Special Economic Zone. There are various factors affecting the project development of a Special Economic Zone in India which will be discussed in depth. The main focus of the research is to develop a project development for a business in a Special Economic Zone in India. Statement of Research Question: According to me the statement of Research Question will be the Analysis of the facts from the past and from the present scenario in the Special Economic Zone developments and ascertain the future of the development of Special Economic Zones in the hosting country. Also, I will concentrate on presenting a real life example on understanding about developing and implementing in the Special Economic Zone. Theoretical Rationale: India is right now a fast growing economy and the Special Economic Zone play a major role in flourishing it. Special Economic Zones has led to increase in Foreign Direct Investment (FDI) by foreign investors in the form of International Business or Multinational Corporation (MNC). The Government of India has been active in the development of the Special Economic Zone by formulating polices, reviewing them regularly and have safeguarded that ample facilities are provided to the developers of Special Economic Zones and also to the companies setting up themselves in the Special Economic Zones in India. Special Economic Zones in India are created by the Government of India. The Special Economic Zones in India are run by Government-Private or solely Private ownership. They provide special provisions to develop the industrial growth in that area. The first Special Economic Zone was launched in 1965 in Kandla, Gujarat. There are various incentives and facilities provided to the units in the Special Economic Zones including Foreign Investment, Duty free import, Domestic procurement of goods for development, exemption of various taxes, exemption from customs/excise duties, operation and maintenance of the Special Economic Zones. Since the Special Economic Zones provide a lot of add-ons for investors it acts as a very eye catching zone to develop a business but, there are a lot of challenges that are to be faced by them. Also, the Special Economic Zone attracts the Foreign Investors due to the exemption of customs or excise duties, taxes and the like creates some added challenges that are to be faced by the Foreign Investors. The Foreign Investors face cultural, political and legal challenges in a different land. Developing the Special Economic Zone also benefits the country. It creates employment for a huge population improving the employment rate in the country and thereby, reducing poverty. The Foreign Direct Investment (FDI) that comes into the country generates flow of money in the country. John dunning provided a framework approach namely Ownership, location and internationalization (OLI Framework). Marco Neuhaus (2006) states that the framework points out some advantages of ownership one enterprise may come across by doing business overseas. The location suitability for the firm is also evaluated using this framework. This might help the decision of an enterprise to venture overseas for the business or not. Thirdly, the concept of internationalization is addressed by the OLI frame work which can help an enterprise in setting up an operations plan. Using the OLI framework, a multinational enterprise (MNE) would be able to assess the feasibility of setting up the business. I would like to formulate a Project Development of a Special Economic Zone (SEZ) in India. I would like to analyze the various challenges that are faced by a business that want to enter the Special Economic Zone. The Implementation Of The Research Project For Organisation: The organization that I would like to study in relation to my topic of research is Ireo. I would base my research on the Special Economic Zones in the context of developing a Special Economic Zone in India. Ireo in JV partnership with Panchshil Realtors (pune) has developed Indias first IT Special Economic Zone (SEZ), EON Free Zone at Kharadi, Pune, India. Ireo is the first Private Equity Fund dedicated to the Indian real estate sector with a fund size of US $2 billion with the backing of global blue chip investors and financial institutions. They have emerged as a major pan-India developer equipped with financial strength to fully leverage available opportunities in this sector. Since establishing their presence in 2004, they have evolved into a fully integrated real estate organization that is both the financer and developer of its projects. The company has a pan-India footprint of projects in prime locations across NCR (including Gurgaon), Haryana, Punjab, Tamil Nadu and Maharashtra under various stages of developments and implementation. Combining the best of Indian and international resources, their team consists of accomplished Indian and expatriate professionals from diverse backgrounds to lead initiatives and to deliver best in class products and services to their customers. Preliminary Literature Review: The literature review was compiled using library search and electronic resources. Since the Special Economic Zone concept is relatively new in India, There are considerably less number of journals and e-books in this field. A few of those resources and publications were reviewed for this preliminary literature review. Special economic zone Act is a program introduced by the state for the development of the country. It has been initiated by the Indian government to create a free market economy and free trade among nations, abolition of national boundaries and dismantling the nation state system giving priority to Market over the state. (Partha Mukhopadhyay; Jan 2008) Special economic zone is a geographic region that has economic laws more progressive than that of the countries typical economic laws. These zones are known by different names in different parts of the world like free trade zone(FTS), bonded free zones(BFZ) , industrial free zone (IFZ) and Export processing zone.( Jona Aravind Dohrmann;January 2006) Export processing zones is an ancestor of special economic zone. The main purpose is to attract industries which are export oriented by offering them favourable investment and trade condition as compared to the rest of the country. The UN industrial development organization (UNID) identifies five attributes of export processing zone they are 1) Dominated by market mechanism. 2) Restricted to a limited region. 3) Specialize in production of export goods and offer special encouragement for such productions. 4) The primary goal is employment generation, foreign investments and foreign exchange. 5) The Secondary goal is technology transfer, developmental linkages and regional development. The Free trade zone policy in 2000 was re launched by the Bharathiya janatha party (BJP). The name was changed from export processing zone to special economic zone. The policies purpose was to make SEZ an engine for economic growth supported by quality infrastructure complimented by an attractive fiscal package both at the central and state level with minimum possible regulations.( Jermy Grasset and Frederic Lady;January 2007) The features of SEZ scheme are No license required for import. Manufacturing or service activities allowed. SEZ units to be positive net foreign exchange earner within 3 years. Domestic sales subject to full custom duty and import policy in force. Full freedom for sub-contracting. No routine examination by custom authorities of export or import cargo. The UPA government enacted the special economic zone act 2005 which was passed in june 2005 and came into force on 10th feb 2006 with the notification of the SEZ rule in 2006. Three categories of SEZ Multi product SEZ Sector specific SEZ Free trade and warehousing zone The first category signifies the manufacturing of services of two or more goods in a sector or goods or services falling in two or more sectors. Contiguous area of 100 hectares or more is required. The second sector is meant exclusively for one or more products or services. This includes biotechnology, gems and jewellery, non conventional energy, hardware and software and electronics. Minimum area requirement of 100 hectares of contiguous and vacant land is required. The third sector the minimum area requirement is 40 hectares of contiguous or vacant land and the built up area should not be less than 10 hectares. 154 SEZ were notified under SEZ act 2005. IT sector has the maximum number. Many issues have been brought up in relation to SEZ in India the main being Locating land. Relaxation of labor laws Usage of water Farmers are protesting against for acquisition of land this leads to destructions of employment of peasants whose land is acquired and provide very little employment opportunity to highly skilled and educated individuals and the totally net employment generated may well be negative. In many cases valuable land has been given away at concessional prices. To conclude the implications of SEZ may cause increasing socio political crisis due to the complexity of the society. In order to avoid polarization of the society, civil society should engage to create a consensus on developmental issues. Hypothesis to be tested: Feasibility of special economic zones after 10-15 years. Availability of land in the future. Data Sources and the Justification for the Choice: Choice of data sources forms the most integral part of any good research. I would use the Peer reviewed Journal articles, articles from Business magazines, Newspapers, reports. Journals like Journal of Business Research, Journal of International Business Studies, Indian Journal of Economics and Business. Magazines such as Business World, Business Today, The Business Magazine, Forbes, Business Week etc. and newspapers like the Financial Times, The Economic Times, The Economists etc. Peer reviewed Journals, Magazines and newspaper form the most trusted source of information and is also available on the internet. Books are the first choice for trusted information. Use of the Aston library and e-library is the place to get these sources of information. Research Design: A Research Design is the plan for a study, guiding data collection and analysis. A Research Design helps the study to locate the problem and to follow economical procedures. The Research Design for my study will be as follows: Define Terms Background information of the topic of research Locate the problem Create priorities I will follow 2 main types of Research and they are Secondary Research and Qualitative Research techniques. The data that is already written or published by someone else for their purpose of study is classified as Secondary Research. Qualitative Research Techniques consists of Interviews, Focus Groups, and Questionnaire etc. Methodology to be employed: In doing this research I will use Primary Data and Secondary Data. As said earlier, Primary data will involve qualitative techniques such as Interviews, Focus groups, Questionnaire etc. For primary data collection I will choose a real life example of a firm entered the Special Economic Zone, as mentioned earlier Ireo. I will do research on how did the organization setup a Special Economic Zone. Since, the organization is a foreign company entering the Indian market I can gain first-hand information from the firm regarding the challenges they faced while setting up a business in a different country. For this purpose I will Interview certain employees of the firm get information on the research survey conducted by them during the setting up phase.   As far as the secondary data collection is concerned I will use Academic books, journal articles, Magazines articles and Newspapers. After putting through the data collected from both the sources i.e. secondary and primary I can get a clear picture of the past and the current scenario of the development of Special Economic Zones. Then I can answer questions of Hypothesis to be tested. Ethical Considerations: The research will comply with research ethics in terms of: Accurate transcription of data and findings Objectivity as a researcher Compliance with the principles of not harming anyone as a result of this research Compliance with Aston Business School rules on plagiarism Not obtaining information through illegal or restricted procedures Compliance with the respect of copyrights reserved for journals and published

Factors that hinder development of sustainable tourism

Factors that hinder development of sustainable tourism 3.2 Analyze factors that may prevent/hinder sustainable tourism development. Factors that hinder or boom tourism, as there are different destinations so there are as many different types of travelers and as well different individual experiences. Travelling should be affordable however, cost is the primary factor that can affect the industry both local and international travelers. Cost do not limited to the ticket alone but the general price travelers will meet in the country of choice. Crime and violence within the society are significant barriers to the achievement of sustainable development, as it affects not only social well being but also economic development. Jamaicas high incidence of crime has resulted in loss of investments, in addition to direct effects on sectors such as tourism from which the country obtains most of its foreign exchange earnings. Although the overall number of crimes reported decreased marginally in 2001 compared with previous years, there were increases in major crimes in the island. Of growing concern has been the fact that most recent incidents of violence have been interpersonal in nature and this makes it harder to control. Another factor is safety. This is a primary concern of travelers of all types. Safety becomes particularly important when traveling abroad and to under develop countries. Widespread political unrest can cause even the most adventurous tourist to avoid visiting unstable countries. Outbreak of communicable diseases can also hinder tourism industries, especially because returning to home countries can be difficult during outbreaks. For instance, swine flu and H1N1 stopped many people from traveling abroad. Domestically, the crime rate of tourist areas, specifically traffic safety and incidents of petty theft, negatively affect the tourism industry. For theme parks, the safety record can also be a negative factor. Though every traveler arrives at their destination with an expectation of different types of amenities, the lack of certain amenities could deter even the most adventurous traveler. For instance, easily attained transportation is a major concern for both the budget and the luxury traveler. If public transportation is difficult to understand, unreliable or dangerous, budget tourists traveling abroad may be deterred from visiting your country. The same thing goes with private transportation for luxury travelers. Other amenities that affect tourism include clean water, affordable food and housing, easy visa processes and access to reliable medical care. The changes in global climatic conditions will result in increased temperatures, rainfall and sea level rise and more frequent hurricanes, droughts, and so forth. Weather plays an important role in the tourism industry. As most travelers to West Africa seek warm or mild temperatures with little rain while on vacation, areas that are prone to wet or cold weather do not thrive in the tourism economy. Climate change will impact not only on biodiversity and natural resources but on social development. The impact of sea level rise on the tourism industry could be profound if it results in increased beach erosion. The island’s two major international al airports are at sea level. Weather plays an important role in the tourism industry. As most travelers seek warm or mild temperatures with little rain while on vacation, areas that are prone to wet or cold weather do not thrive in the tourism economy. Rainy and cold seasons see decreased amounts of visitors throughout the Caribbean an d Central and South America. Similarly, incidences of extreme weather and national disasters prevent many travelers from visiting certain areas, as safety becomes a primary concern during these times. Jamaica is vulnerable to several natural hazards e.g. hurricane, tropical storms, flooding and landslides due to its geographical location. Flooding and landslides are the most recurring hazards. Priority actions must be geared toward disaster mitigation and rehabilitation, and reconstruction in light of the October to November 2001 flood damage in the parishes of Portland and St. Mary. The magnitude of the damage in these two parishes has highlighted the need for proper land use planning and zoning regulations and enforcement. These entire factors can prevent sustainable tourism in Jamaica as well as other countries. 3.3 Analyze different stages in planning for sustainability Bringing sustainability into action not only requires a solid communication and coordination framework, but it also requires the ability to balance dynamic tensions between environmental, economic and social dimensions (Gunn, 2002). The challenge lies in developing approaches that integrate and address these issues throughout public policy and planning processes (Gunn, 2002).With a wide variety of stakeholders, it will be ever more imperative for planners and decision-makers to balance these diverse challenges and needs and translate these elements into effective policy decisions. Population growth, increased automobile dependency, energy usage and supply, air quality, education access, affordable housing, water scarcity are just a short list of the numerous issues that need to be addressed through leadership and stewardship (Gunn, 2002). By developing sustainably-conscious planning processes we can begin to mitigate the impact of current issues and challenges and place ourselves in a better position to be proactive towards new challenges in the future. To truly embody sustainability practices and ensure thoughtful implementation there needs to be an understanding of what needs to be done at each stage of the planning process (Gunn, 2002). Due to the complexity of sustainability, different processes and applications will have different effects on other areas or stages within the process. It is important to understand not only what needs to be done at each stage, but also understand how these processes and applications affect and relate to knowledge accumulation, vision, action and evaluation. Generally, the planning process is comprised of the following stages: Stages in the planning of tourism process: 1.Define the goals and objectivesbasically, objectives for tourism should be a sub-set of the overall objectives (either implicit or document) for the nation, its economy, people and the social structure within an area. There are, however, no hard or set rules as to what the objectives should be (Gunn, 2002). In general, however, tourism objectives should deal with growth leading to increased standard of living, employment levels, and opportunities for intellectual growth, enhancement of the investment potential in an area or country. Cumulatively, tourism objective should describe the set of conditions under which a favorable decision should be made (Gunn, 2002).If the data indicate that reasonable objectives for tourism development can be met, this will generally lead to a decision to proceed with a conceptual planning study. As a first step towards preparation of conceptual plan for tourism development, a market study begins with a determination of the type of tourism business wh ich exists and can be expected. 2.Identify the tourism systemand carry out a survey- this stages deals with which clients you expect to have, what you need to do(Gunn, 2002).. Carry out the survey on social and cultural patterns such as the carrying capacity and settlement patterns, on the cultural and heritage attraction within the area, wildlife, vegetation, coastal and marinas and also carry out an environmental impact assessment (EIA) on the location to find out the negative and positive impact of the area (Gunn, 2002). 3.Evaluate alternatives of the analysis– in this stage the information collected from the survey is analyze (Gunn, 2002). 4.Select and implement–this is the stage where the information collected from the survey is analyze and the put policies and plan in place to help develop the process (Gunn, 2002). 5. Provide recommendations- recommendation should be made to improve progress 6.Monitor and evaluate Monitoring the progress periodically is very crucial to get the best results. Preparation of a plan document is not an end in itself (Gunn, 2002). The task of the planner does not end when a plan for three years, five years of seven years has been prepared. A system of constant revision and monitoring of the plan progress should be a part of the exercise of the planning (Gunn, 2002). Successful tourism planning and development means, serving both tourists and local residents, tourism should serve the community first and the tourist second, tourism development must be compatible with other activities in the area and be supported by the local population, the tourism plan should be closely coordinated with other local and regional planning efforts, if not an integral part of them (Gunn, 2002).

Religion’s Profound Effect on Musical Development Essay -- Music Relig

Religion’s Profound Effect on Musical Development   Ã‚  Ã‚  Ã‚  Ã‚  Religion has been an important part of man’s life. Man has allowed religion to control and influence his life in many different ways, affecting both his behavior and his actions. So its not surprising that music, one of man’s earliest expressive forms, has also been influenced by religion. Religion has had an effect on man’s music all throughout history, from the early Egyptians to even now. So it is only natural that Western music should also have been affected by religion. Western music, and its development by composers, has been strongly influenced by the Christian religion, especially in the Medieval, Renaissance, and Baroque periods. The music in these periods laid the foundation for all the different types of music we enjoy today.   Ã‚  Ã‚  Ã‚  Ã‚  During the Medieval period the Catholic Church had an enormous amount of power and control over the people of that time. The Medieval period began with the collapse of the Roman Empire around the year 450. Then with much of Europe in disarray, the Roman Catholic Church, the main unifying force at the time, unified many cultures together. â€Å"All segments of society felt the powerful influence of the Roman Catholic Church. In this age of faith, hell was very real and heresy was the gravest crime† (Kamien 63). The church controlled everything and it was of greatest importance in this period. â€Å"Very little non-Christian music from this period survived, due to its suppression by the Church and the absence of music notation†¦Ã¢â‚¬  (History of Music). The enormous Gothic Cathedrals and churches demonstrate how powerful and important the church was. The amount of physical labor put into each one shows the devotion of the people to God and the church in the medieval time period. Life in these times revolved around the church so it makes sense that the music of this time also revolved around it. The composers of this era were often involved with the church. They were usually priests, monks, or nuns. For example Hildegard of Bingen, a nun from Germany, who, wrote many musical pieces and other forms of art.  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"For over one thousand years the official music of the Roman Catholic church had been Gregorian Chant, which consists of melody set to sacred Latin texts and sung without accompaniment† (Kamien 67). The credit for developing Gregorian chant music, also known as plain... ...l development whether we want to believe it or not. From the beginning it has influenced music in different ways. It has pushed composers to produce certain types of music, censored secular and other types of music that it objected to, and inevitably has had an everlasting effect on what type of music we listen to today. Works Cited "Baroque Music-Part Two." 12 July 2005 . Boynick, Matt. "Georg Friedric Handel." Classical Music Pages. 1 Feb. 1996. 13 July 2005 . "Catholic Reformation." Wikipedia. . Daum, Gary. "Chapter 12 The Baroque Era (1600-1750)." Georgetown Prep. 1994. Georgetown University. 12 July 2005 . "Giovanni Pierluigi de Palestrina." Wikipedia. . "Hildegard of Bingen." Wikipedia. . "History of Music." Algebra.com. 12 July 2005 . "Josquin Des Prez." Wikipedia. . Kamien, Roger. Music: An Appreciation. 5th ed. New York: Lyn Uhl. 63-149. "Medieval Music." Wikipedia. . "Music." The End of Europe_Middle Ages. 1998. University of Calgary. 14 July 2005 . "Oratorio." Nationmaster. 12 July 2005 . "Renaissance." Cunnan. 10 July 2005 . "Renaissance Period." Art for Ears. 10 July 2005 . "The Enlightenment (1600-1790)." SparkNotes. 17 July 2005 .

Caribbean Slavery Essay -- Caribbean History Slave Essays

Caribbean Slavery Starting in the seventeenth century, the European colonization of the Caribbean changed drastically as exploration gave way to exploitation. As the great wealth that the Caribbean held became more evident to the European colonizers, a rush of profit hunters stormed the area and flooded it with slavery. The massive introduction of slavery as the major form of labor organization in the Caribbean changed social organization radically. The plantation system thrived and expanded through the following years (centuries), and the Caribbean became the focus of American slave centers, "The planters of the Caribbean bought about sixty percent of all the slaves sold to the Americas between 1701 and 1810 (Knight, p112)." Franklin W. Knight approximates that five million African slaves were brought to the Caribbean throughout the slave trading years. The resulting success of the Caribbean sugar economy harvested (no pun intended) even more slavery, and the Caribbean became an almost exclusively tw o-group society divided by blacks and whites. Those who did not fall into the well-defined groups –free blacks, maroons, buccaneers, and others- were forced to live isolated from normal society. Arnold Sio addresses the interesting "in-between group" of free blacks in these societies in his article entitled "Marginality and Free Coloured Identity in Caribbean Slave Society". Sio delves into the identity search that the free blacks felt in such situations, and he defines their position simply, "The people of colour were marginal to Caribbean society: neither black nor white, neither African nor European, and neither slave nor free." The assertion that the author makes that these "freedmen" were not free is fundamental in understa... ...at the blacks enjoyed as a result of this participation, a type of psychological empowerment was attained by blacks that was not experienced by blacks on the other islands of the Caribbean. A certain kind of "re-humanizing" takes place with the endowment of responsibility in which the implications go far beyond employment. Through the terrible years of Caribbean slavery, horrific crimes against personal rights were violated over and again. In a genocide of sorts, Africans were taken from their homes, and sold into a system which worked them to their deaths. Blacks in the Caribbean who avoided this horrible situation, few though they were, struggled to establish themselves as successful alternative societies due to their few resources. The varying backgrounds of these people made communication difficult, and made the forming of a unified society almost impossible.

Macbeths Sinister Side :: Free Macbeth Essays

Macbeth's Sinister Side      Ã‚  Ã‚   When the audience experiences Macbeth by William Shakespeare, it is subjected to a large and heavy dose of evil in the form of intent and actions by the witches, by Lady Macbeth and by Macbeth.    L.C. Knights in the essay "Macbeth" specifies the particular species of evil present within the play:    Macbeth defines a particular kind of evil - the evil that results from a lust for power. The defining, as in all the tragedies, is in strictly poetic and dramatic terms. It is certainly not an abstract formulation, but lies rather in the drawing out of necessary consequences and implications of that lust both in the external and the spiritual worlds. Its meaning, therefore, is revealed in the expansion and unfolding of what lies within the initial evil, in terms of direct human experience. (93)    In "Macbeth as the Imitation of an Action" Francis Fergusson describes the evil course of action within the drama:      At this point there is the brief interlude with the Doctor. The king's evil and its cure and the graces which hang about the English throne are briefly described. [. . .] It marks the turning point, and it introduces the notion of the appeal by faith to Divine Grace which will reverse the evil course of the action when Malcolm and Macduff learn to outrun reason in that way, instead of by responding to the Witches' supernatural solicitations as Macbeth has done. (110)    Clark and Wright in their Introduction to The Complete Works of William Shakespeare interpret the main theme of the play as intertwining with evil:    While in Hamlet and others of Shakespeare's plays we feel that Shakespeare refined upon and brooded over his thoughts, Macbeth seems as if struck out at a heat and imagined from first to last with rapidity and power, and a subtlety of workmanship which has become instructive. The theme of the drama is the gradual ruin through yielding to evil within and evil without, of a man, who, though from the first tainted by base and ambitious thoughts, yet possessed elements in his nature of possible honor and loyalty. (792)    The Tragedy of Macbeth opens in a desert place with thunder and lightning and three Witches who are anticipating their meeting with Macbeth, "There to meet with Macbeth." They all say together the mysterious and contradictory "Fair is foul, and foul is fair.

Mandating School Uniforms Essay

The controversy on school uniforms has continued from the early 1990’s and its worth was reiterated by President Bill Clinton in his State of the Union Address in 1996. In attending a school which incorporates the school uniforms parents need to know what school uniforms represent, the goal of the schools for their children, and what should be taught to their children. School uniforms create unity and pride. School uniforms are also encouraged as a means to help ensure students safety and assist them in achieving academic success. Although it is argued that  school uniforms is a breach of a student’s freewill for self- expression, all public schools should incorporate uniforms because it creates and symbolizes unity and pride, heightens discipline, but most importantly it is believed that the reinforcement of school uniforms decrease bullying, disciplinary actions ,and violence. School uniforms create unity with uniforms being the same across the whole campus. Teachers are able to identify students and separate them from outsiders or those who are on campus without permission. Parents also play a big role in educating students with what uniforms represent for them and the schools they attend. Students will become more confident in engaging with their peers and teachers because they will not feel any different but rather have a sense of belonging. Huss’s (2007) article â€Å"Do uniforms influence teacher expectations† reports that teachers perceived an elevation in the overall morale at the school after the implementation of the school uniform policy. School uniforms boost confidence in students and makes it easier to interact with one another without being self-conscious about the attire he and/or she has on. It is an acknowledgement of the schools they attend but most importantly who they represent as  individuals. Students with low socioeconomic statuses are unable to express themselves if they are unable to afford the new and latest trends which may cause them to feel out of place. Should Public Schools Reinforce Uniforms? 3 Would a parent ever want his and/or her child singled out because of clothing? Parents need to think about all students who are currently affected and not only for their own child’s sake or unnecessary want. Other students who wish for brand name clothing and cannot have them tend to shy away from others and eventually shy away from school. With school uniforms  implemented students will learn to appreciate themselves as students, and without distractions from clothes they will be able to see one another for who and what they represent which is the act of unity and the start of discipline. Anderson (2002) states that when students dress alike, a â€Å"team-like† culture develops, and this promotes school spirit and positive self-images. Uniform is in fact a representation of one, and students will grow to understand the value of wearing a uniform. Because all students look alike, differences are pushed aside thus allowing more time to focus on academics. School uniforms decrease disciplinary actions because students have more self-respect, respect for their peers and for their teachers. Some school personnel believe students and teachers tend to behave the way they are allowed to dress (Stephens, 1996). When school uniforms are present in schools the goal is to make a distinction between teachers and students. Teachers are given the authority to teach and students are given an undivided attention from teachers which will allow them to learn. An observation of a United Kingdom school conducted by Amy Walmsley (2011) stated with school uniforms implemented students are more likely to  respect peers and teachers because they are reminded that their job is to be a student. Students will attend school in uniforms and cannot differentiate with one another as they are able to identify themselves and their peers as students are all in school for one common goal which is to learn and exceed in academics. Teachers can lead by example and support the integration of school uniforms by wearing similar colors to school consequently reminding the students that Should Public Schools Reinforce Uniforms? 4 they are all on the same page. Parents and guardians can lend a hand in educating their children  as well to ensure students understand the importance of school uniforms in creating discipline overall school campus. With discipline comes more control in the schools and school uniforms can definitely be one influential cause. Studies conducted with regards to student discipline has shown that schools which have incorporated school uniforms have noted that students behaved better, paid more attention in class, and interacted in a respectful manner than before the implementation took place (Huss, 2007). As Angela Walmsley (2011) reiterates in her article, â€Å"teachers appreciate the fact that the  presence of school uniforms brings a sense of duty to the students and respect for the school and teachers. Uniforms should be used to create a positive school climate in which students focus on learning and bring back a little bit more respect for teachers and students in the classroom†. Teachers perceived improvement in academic and achievement motivation, an increased sense of responsibility by students acknowledging a more effective use of instructional time, and greater participation in classroom activities (Huss,2007). Why else would parents not want to implement  school uniforms in public schools? Students are being bullied, violated, and threatened for their designer or brand name clothing. Others with low socioeconomic statuses are constantly being harassed and ridiculed because they do not fit in a social group due to what they wear. The implementation of school uniforms can minimize the act of bullying in schools. Nowadays fashion trends and designer clothes are aimed to a younger generation, and students are going out of their way to flaunt (show off new clothes with attitude) them. While some students are fortunate enough to receive  these with parents who are able to afford them, others are not able to because their parents have much more important things to worry about with regards to how money is being spent in their Should Public Schools Reinforce Uniforms? 5 households. Students cannot learn to appreciate the effort of the school for the integration of school uniforms if parents continue to condone this type of behavior. Parents need to be mindful of all other reasons that may affect students while they are in school and their cry for freedom of expression. In an attempt to help stop bullying The Federal Government has created a Stop  Bullying website and brings to light a certain group of students who may be at risk of being bullied. Some of the children who may be at risk of being bullied if it has not occurred yet are perceived as different from their peers because of different clothing or not wearing what other students consider cool (â€Å"Stop Bullying, † n. d) . Students especially those who are females are known to degrade one another if the clothes worn are not of the latest style. An editor, Vanessa O’Connell of The Wall Street Journal writes and reports on fashion bullies from a public school which has yet to incorporate a school uniform. Students without the latest cool brands have become a target for bullying because they are wearing the wrong brands. It is stated that the number of fashion bullies (or those related to clothing) and incidents have increased over the years, therefore calling for assistance in reduction of these types of incidents. Susan M. Swearer, associate professor of school psychology at the University of Nebraska in Lincoln, surveyed a total of more than 1,000 students at five Midwestern middle schools from 1999 to 2004, with about 56% of the sample female, and more than one-third of the students admits to being bullied  because of their clothing (O’Connell, 2007). Students should not have to worry about clothing but it is happening and it needs to stop with the reinforcement of school uniforms. Furthermore, the Bullying Statistics from 2013 has stated that 77% of students are being bullied on a regular basis, and half of the percentage is made up of students who are harassed and fear returning to school. The effects of bullying are low self-esteem, depression, anxiety, and some suicidal thoughts. Bullying due to clothing occurs when students are being teased or Should Public Schools Reinforce Uniforms? 6 humiliated constantly for not having the latest designer clothes, or for having a different type of style in attire such as Goth wear or those of a low socioeconomic status. Name-calling, dirty stares, elimination from social groups are some of the actions defined as bullying which students are involved in at school. With the integration of school uniforms there should be no bullying in school with respect to the types of clothing the students should wear. Students will not be intimidated by one another because they choose to express themselves differently, therefore  permitting them to the freedom they need to learn and exceed in academics. The most important reason school uniforms should be incorporated is to help decrease violence. Violence in schools has been marked by health professionals as a threat to overall health and academic success of students (Stephens, 1996). In addition, programs which were implemented in schools to assist with violence have noted a possible connection between school violence and the type of clothing students wear (King, 1998). Most cases are due to the fashion trends which is most attractive by students such as brand name clothing or urban wear which are  over-sized and can be mistakenly identified as gang-related clothing. This type of wear is the made popular by famous hip hop artists and rappers whom students look to imitate and idolize. Students have had violent encounters in school because some individuals envy them because they cannot afford to purchase these types of clothing. Furthermore, gang members are usually differentiated from one another through the colors they wear and there have been instances where students from local schools are unintentionally harmed or gunned down due to the colors they choose to wear to express themselves in school. Other students who become victim to these occurrences are able to hide weapons in their large clothing which is potentially placing all students in harm’s way. Should Public Schools Reinforce Uniforms? 7 Violence in schools has been an ongoing issue over the last decades and King notes in his article Should School Uniforms be Mandated in Elementary School how violence has negatively influenced students and have caused one of every 10 to 12 youths to stay away from school does so because of fear (Stephens, 1997; Everett & Price,1995). Students fear for their lives because of the common occurrence of violence. They are no longer motivated to attend nor learn from school as they do not feel safe in school. These feelings eventually cause isolation and causes students to drop out of school. With the implementation of school uniforms, fights over looks and styles will discontinue hence giving faculty, staff, teachers, and parents more time to focus on academic success of students. In support of decreasing violence through incorporating school uniforms research studies have shown that there has been an intense decrease of violence and disciplinary problems for Kindergarten through Grade Eight in schools which have incorporated  uniforms (King, 1998). Requiring school uniforms is one of the simplest ways to start teaching students about unity and pride as they start school and grow into learning individuals. It is important for parents and teachers to support the decision to implement school uniforms and allow the students to adapt to the changes which are designed to provide them a safe and secure learning environment. The reinforcement of school uniforms will lead to changes that are not only beneficial to students but the teachers and the school as a whole. It will help the students understand the importance of  school uniforms and how they symbolize unity and pride. In addition it encourages students to learn to appreciate and respect themselves, their peers, and teachers and remove distractions from which eventually lead to bullying, fighting, or some form of disciplinary or violent behavior. With full support from parents, the students will be on their way to academic success. Should Public Schools Reinforce Uniforms? 8 Students can lead themselves to a fit and well-disciplined environment where they will be able to learn at their full capacity, and their teachers can teach at their maximum potential (King, 1998). References Everett SA, Price JH. Students’ perceptions of violence in the public schools: the MetLife survey. J Adol Health. 1995; 17:345-352. Huss, J. A. (2007) The role of school uniforms in creating an academically motivating climate: Do uniforms influence teacher expectations. Journal of Ethnographic and Qualitative Research, 1, 31-39. Retrieved from: http://eds. b. ebscohost. com. proxy-library. ashford. edu/ Should Public Schools Reinforce Uniforms? 9 Kling, K. A. (1997) Should School Uniforms be Mandated in Elementary Schools? Journal of School Health, 68 (1), 32-37. Retrieved from: http://eds. b. ebscohost. com. proxy-library. ashford. edu/ O’Connell, V. (2007, October) Fashion Bullies Attack – In Middle School The Wall Street Journal Retrieved from: http://online. wsj. com/news/articles/SB119326834963770540 Portner J. Department to issue guidelines on school uniforms. Educ Week. 1996;15(24):27 (as cited in King, 1998, p. 32) Stephens RD. The art of safe school planning. Sch Admin. 1996;53(2): 14-21. (as cited in King, 1998, p. 32) The US Dept of Education. Manual on School Uniforms, online. Retrieved from: http://inet. ed. gov/updates/uniforms. html. Feb 29, 1996. The U. S Department of Health & Human Services Manual on Bullying, online Retrieved from: http://www. stopbullying. gov/at-risk/factors/#atrisk The White House Office of the Press Secretary. Memorandum for the Secretary of Education. Subject: Manual on School Uniforms, online. http://inet. ed. gov/PressReleases/02- 1996/whpr. 26. html. Feb 23, 1996. Walmsley, A. (2011) What the United Kingdom can teach the United States about school uniforms. Kappanmagazine. org. 92 (6), 63-66. Retrieved from: http://eds. b. ebscohost. com. proxy-library. ashford. edu/

The Impact of Downsizing on Manufacturing Industries

The amount of information on the effects of down sizing on manufacturing was not plentiful, however one main point that flows through all of the articles is that even though down sizing may be done to help a company it can end up hurting them in the long run. In the paragraphs to follow we look at the effects that downsizing has on people and companies as well as look at whether or not downsizing is truly the answer. Parker (2003)Reports that in 2003 the expected job losses among the manufacturing industries in Great Britain would create the effects of rising input costs and oil price increase on the job cuts; Downturn of the purchasing managers' index for manufacturing; Decrease in the rate of manufacturer's orders. So even though these cuts may be necessary he pointed out that it would have an overall negative effect. The Midwest may be the focus of manufacturing layoffs and financial woes(Link, 2005), but according to this survey, people who live in the area of the country that includes Cleveland and Detroit in the low- to moderate-income lax bracket are using less of their income to pay for housing than other areas of the country. The study, dubbed the Housing Landscape for America's working Families 2005, revealed that from 1997 to 2003 the number of America's working class who spend more than half of their income on housing leaped from 2. million to 4. 2 million. The study also revealed that immigrant families are 75% more likely to use more of their income to pay for housing than American-born citizens. Across the country there are 14 million people that spend too much of their income 10 pay for housing. About 35% of that group is low- to moderate-income families. In 2003, the critical housing need for the Midwest totaled 8. 7% of residents while the West Coast had a need among I6. 89 (of its residents. The South followed the Midwest for a lower critical housing need with 9. % while the Northeast trailed California with a need among 14. 2% of its residents (Link, 2005). (Palley, 1999) Reported that given the dismal economic performance that marked the period from 1990 to 1995, when downsizing was widespread, inequality widened, and real wages fell, the subsequent U-turn in performance has been completely unexpected. Moreover, it has been cause for further surprise that the economy has continued to prosper despite the East Asian financial crisis, which destabilized global financial markets, undermined U. S. exports, and unleashed a surge in U. S. imports. A second source of uncertainty (Palley, 1999) concerns the sustainability of the growth of personal consumption spending, which had been the principal engine of economic expansion in the past two years. In 1997, personal consumption expenditure contributed 59 percent of gross domestic product (GDP) growth, and in 1998 it contributed 85 percent. Meanwhile, in 1997 and 1998 nominal personal consumption expenditures grew 5. 3 percent and 5. 7 percent, respectively, while nominal disposable income grew only 4. 7 percent and 4. 0 percent. From the Federal Reserve's perspective, this pattern is not sustainable since consumption is growing faster than potential output, which implies that the economy will eventually hit an inflationary wall. An alternative interpretation is that such growth is not sustainable because households must inevitably run short of financial wherewithal, and when this happens, an economic decline will ensue. According to this view, recession rather than inflation is the danger. A last scenario concerns the possibility of a full-scale crash or economic depression. Such an outcome is the least likely of the three scenarios, but it is still more likely than it used to be. In the 1960s and 1970s, the possibility of an economic depression was truly far removed. However, in the 1990s such a notion has surfaced as plausible, even if unlikely. Recent events in the global economy have added further credibility to this possibility. One reason a crash has become more likely is that many of the factors precipitating a hard landing are already in place, which means that many of them could be realized simultaneously. Indeed, many of these factors are linked in trip-wire fashion so that if one occurs, it triggers another. Thus a Federal Reserve-induced increase in interest rates could trigger a stock market crash, and this could then trigger an end to the spending boom. It could also trigger renewal of global financial instability. Similarly, a renewal of global financial instability could become the event that bursts the stock market bubble. Alternatively, a realization that the existing U. S. urrent-account trajectory is unsustainable could trigger a foreign exchange crisis that would renew global financial market instability, trigger a stock market crash, or evoke a Federal Reserve rate hike to protect the exchange rate and guard against imported inflation. Finally, if the economic expansion begins to flag of old age, overoptimistic projections of corporate profitability could pop, triggering a stock market crash. Also, a flagging economy could renew global financial turmoil by ending the U. S. conomy's role as buyer of last resort, thereby undermining the rest of the world's economic recovery, which rests significantly on export-led growth. However, it is not just this interconnectedness of negative factors that lies behind the increased plausibility of a crash. A second and more important factor concerns changes in the structure of the domestic and global economy that have diminished the presence of â€Å"automatic stabilizers† and replaced them with â€Å"automatic destabilizers. â€Å"These destabilizers work in a pro-cyclical fashion. On the cyclical upswing they make for stronger and longer expansions, but on the downswing they make for deeper and more sustained contractions. One important change concerns patterns of employment and remuneration. In earlier business cycles, labor hoarding was a common practice–firms held on to workers through downturns in order to retain their skills and avoid future hiring costs. However, the changed pattern of the employment relationship means that firms now hire and fire much more freely, making labor incomes more pro-cyclical. It is also the case, especially in manufacturing, that overtime has become more important as firms have sought to save on employment costs by extending hours rather than hiring new personnel. Wage income is therefore more vulnerable to downturns since hours can quickly be cut back in a downturn. Finally, casual evidence suggests that there may have been an increase in the use of incentive pay, with greater reliance on stock options and profit-related bonuses. In a downturn these forms of pay are likely to fall off rapidly, contributing to a larger decline in household income and spending. In sum, the above labor market developments all make wage income more procyclical, thereby increasing the pro-cyclicality of demand (Palley, 1999). Another development concerns the general flexibility of wages. In the period from 1950 to 1980, recessions were characterized by a decline in the rate of increase in nominal wages. However, the important point is that wages still rose in recession. The recessions of 1981-1982 and 1990-1991 suggest that a new pattern may have emerged. Now not only does the rate of wage inflation slow, but nominal wages can fall. This is a very important development when it is considered in conjunction with the new debt-driven business cycle. The ability to repay consumer debt depends on the nominal value of income. In a recession the value of debts remains unchanged, but now wage incomes may show a tendency to fall. This will tend to increase debt burdens and raise the prevalence of bankruptcy, thereby deepening recessions. Just as developments in labor markets have contributed to the emergence of automatic destabilizers, so have developments in financial markets. Households now have significantly increased access to credit. In particular, households are able to borrow more heavily against their assets, thereby increasing their ratio of debt to income. Home equity loans are the most prominent example. Another is the ability to borrow on margin against stock holdings. These innovations and their spread give the economy a strong pro-cyclical impulse, but they also generate greater financial fragility. Thus, in upswings when asset prices and wages are rising, households borrow more and spend more, thereby lengthening the cycle. However, when the downswing occurs, households are now saddled with greater indebtedness and may also be subject to margin calls. This worsens the downturn and may contribute to even greater stock market corrections (Palley, 1999). The shift from defined benefit to defined contribution pension plans is another automatic destabilize. First, households are able to borrow against these contributions. Second, these plans may change household consumption and saving behavior since each month they receive statements showing how the value of their pension holdings has increased. Thus, as stock market prices rise, households cut back on saving and increase consumption, while some households borrow against their appreciated 401(k) accounts. However, stock prices are likely to fall in a recession, while the incurred debts will remain unchanged. At that time, households will have larger debts and reduced holdings of liquid assets. Finally, it is worth noting that prices in the stock market may have been at bubble levels for more than three years; recall that Chairman Greenspan gave his â€Å"irrational exuberance† warning back in 1996. This means that a considerable amount of borrowing and spending has taken place on the basis of these bubble prices, so the bubble may be deeply embedded in the balance sheets of agents. This means that a market correction is likely to be all the more severe. In effect, the size of the negative impact of an asset price bubble is positively related to the duration of the price bubble. Accompanying these changes in the domestic economy have been changes in the global economy that have contributed to the emergence of international automatic destabilizes. One change is the increased degree of international financial capital mobility. When a country's financial markets begin to fall, it is easier for asset holders to exit, thereby creating a larger stampede for the exit. Foreign holders have an incentive to exit to protect the domestic-currency value of their holdings, and they now have a larger impact because of their increased holdings. Domestic holders are also more likely to exit because of reduced transaction costs and the increased sophistication of financial markets. They recognize that exit is the way to maximize the dollar value of portfolios when the dollar is under pressure. A second development is the increased international integration of goods markets. In theoretical terms, the foreign trade expenditure multiplier has become larger, which means that economic activity across countries has become more connected, making for greater amplitude in the world business cycle. In the 1950s and 1960s it was said that when the U. S. economy sneezes, the world economy catches a cold. Globalization of goods markets may have created a situation in which the U. S. economy sneezes and the world economy catches pneumonia. In this study (Wertheim, 2004), has developed a hypothesis which combines the effects of both economic impact and pre-disclosure information with the financial distress and potential benefit hypotheses developed in prior research in corporate downsizing. Instead of offering that these two hypotheses as competing and mutually exclusive, evidence are provided that supports the conclusion that these hypotheses simultaneously explain concurrent and additive effects on the stock price reaction to announcements of company layoffs. Finally, results indicate that the relationship between economic impact, pre-disclosure information and stock price reaction to layoff announcements depends on the relative dominance of the signals provided by the layoff about both financial distress and potential benefit. (Palley, 1999)stated that for policymakers at the Federal Reserve, the goal is a soft landing, though some (those who continue to believe in the natural rate of unemployment) think a bumpy landing is desirable since they believe that the unemployment rate is now below the natural rate. Thus not only is the economy expanding more rapidly than potential output, but the level of output already exceeds the level of potential output. Consequently, not only must the rate of output growth decrease, but the rate of unemployment must also rise back to the natural rate in order to avoid accelerating inflation. Since around 1980, there has been a determined drive to downsize American organizations (Budros, 1999) and there currently is no end in sight to this movement, even though studies underscore its technical-economic and human dysfunctions. This situation indicates a need to consider why organizations downsize in the first place, yet the shortcomings of the scholarly literature on this issue are conspicuous (Budros 1997). Therefore, in that paper he offered some systematic thoughts on the causes of downsizing. He developed a conceptual framework for exploring organizational innovation that features two under explored dimensions associated with this phenomenon, the basis of organizational action (rational versus irrational) and social context (organizational versus extra-organizational). He then portrayed downsizing as an organizational innovation and identified factors that lead organizations to downsize. (Palley, 1999) suggests that there are three possible future paths–a soft landing, a hard landing, and a crash. A soft or hard landing is by far the more likely outcome, but, that said, it is possible to imagine conditions in which a crash will occur. Japan's prolonged hard landing, East Asia's economic crisis, and the October 1998 near-meltdown of global financial markets have all added plausibility to such an outcome. A soft landing has the rate of output growth gradually slow to a level consistent with potential output growth. According to current consensus thinking, this potential rate of growth is somewhere between 2 and 2. 5 percent, though New Economy optimists claim it to be as high as 3 percent. A bumpier version of the soft landing (a. k. a. growth recession) has the rate of output growth slowing below potential but growth still remaining positive. Under this scenario, unemployment rises but the economy avoids a formal recession since output continues to grow. A hard landing has the decline in output growth such that it turns negative so that the economy is pushed into recession and unemployment rises even more. Finally, a crash involves a collapse in the rate of output growth, so that the economy enters a deep recession that may even border on a depression (Palley, 1999). The use of an organizational innovation framework to examine downsizing clearly has shed light on this phenomenon (Budros, 1999), revealing that organizations may make people cuts in response to rational organizational, rational extra organizational, irrational organizational, and irrational extra organizational processes. Of particular interest is the realization that scholars have focused almost exclusively on rational (organizational and extra-organizational) causes of downsizing, neglecting the role irrational forces may play in work force reductions. Perhaps this situation prevails because of the longstanding inclination among scholars to view organizations as efficiency-minded social actors. But if we are to develop a complete understanding of downsizing, then we must evaluate the impact of rational and irrational factors on this practice. This research investigates organizational practices in downsizing after a restructure and the effects of these practices on an organization and its employees (Labib, 1993), in particular, and on other stakeholders in general. Findings indicated that it is not downsizing that causes negative effects on both terminated and surviving employees, but rather the human resources practices used to implement downsizing; such as advance notification, method of termination, and amount and type of post-termination assistance given. This research further found that organizations often do not achieve their strategic goals after downsizing because they do not adjust their work processes and their human resource management practices to the new size and structure of the organization. Based on the literature review, a process model for the development and implementation of downsizing plans is proposed. The model is designed to provide a guide to be used by organizations when downsizing to ensure that the interests of all stakeholders are taken into account. The proposed model is tested through a field research in the form of case studies of five major organizations in Canada. The actual practices of these organizations are outlined and compared to the proposed process model, both collectively and individually. The differences are then analyzed and a new revised model is proposed that emphasizes, not only the downsizing process itself, but also what organizations must do during and after downsizing to ensure that employees' needs are met and that the new strategic goals that prompted the downsizing are achieved. Two conclusions are drawn from this research. The first is that downsizing, if it is necessary, must be undertaken in a way that would cause the least amount of pain to those affected which is the ethical responsibility of good corporate citizenship. The second conclusion is that downsizing, in itself, is not enough to ensure increased profitability and goal attainment, but rather, it is how the organization functions afterward that will indicate whether or not the downsizing was a good or bad thing(Labib). The topic of off shoring generates extreme differences of opinion among policy makers, business executives, and thought leaders. Some have argued that nearly all service jobs will eventually move from developed economies to low-wage ones. Others say that rising wages in cities such as Bangalore and Prague indicate that the supply of offshore talent is already running thin. To a large extent, these disagreements reflect the confusion surrounding the newly integrating and still inefficient global labor market. Much as technology change is making it possible to integrate global capital markets into a single market for savings and investment, so digital communications are giving rise to what is, in effect, a single global market for those jobs that can now, thanks to IT, be performed remotely from customers and colleagues. The newly integrating nature of this global labor market has strategic and tactical implications for companies and countries alike. Information and insight about it are sparse, however, and executives and policy makers have little of either for making the decisions they face. To provide help for governments and companies in both high- and low-wage economies, the McKinsey Global Institute (MGI) analyzed the potential availability of offshore talent in 2. 8 low-wage nations and the likely demand for it in service jobs across eight of the developed world's sectors (chosen as a representative cross-section of the global economy): automotive (service jobs only), financial services, health care, insurance, IT services, packaged software, pharmaceuticals (service jobs only), and retailing. These sectors provide about 23 percent of the nonagricultural jobs in developed countries. The study, which projects trends to 2008, aims to assess the dynamics of supply and demand for offshore service talent at the occupational, sectoral, and global level and thus the likely impact on both employment and wages in the years ahead. MGI's analysis provides a panoramic view of the off shoring of services, as well as a number of useful conclusions, including: Off shoring will probably continue to create a relatively small global labor market – one that threatens no sudden discontinuities in overall levels of employment and wages in developed countries. Demand for offshore labor by companies in the developed world will increasingly push up wage rates for some occupations in low-wage countries, but not as high as current wage levels for those occupations in developed ones. Potential global supply and likely demand for offshore talent are matched inefficiently, with demand outstripping supply in some locations and supply outstripping demand in others. The more efficiently the emerging global labor market functions, of course, the more value it will create for its participants by allocating resources more economically. Both companies and countries can take specific measures to raise its efficiency in clearing demand and supply. Broadly speaking, a suitably qualified person anywhere in the world could undertake any task that requires neither substantial local knowledge nor physical or complex interaction between an employee and customers or colleagues. Using these criteria, we estimate that 11 percent of service jobs around the world could be carried out remotely. Of course, some sectors provide an unusually large number of such jobs. As a rule, industries with more customer-facing functions have less potential in this respect. Consequently, the retailing sector, in which the vast majority of employees work in stores, could offshore only 3 percent of its jobs by 2008. Yet because retailing is such a huge employer around the world, this would be equivalent to 4,900,000 positions. In contrast, by 2008 it will be possible to undertake remotely almost half of all jobs in the packaged-software industry, but in this far less labor-intensive business, that represents only 340,000 positions. Some occupations also are more amenable than others to remote employment. The most amenable to it are engineering, on the one hand, and finance and accounting, on the other (52 percent and 31 percent, respectively). The work of generalist and support staff is much less amenable (9 percent and 3 percent, respectively), because those workers interact with their customers or colleagues extensively. But generalists and support workers permeate every industry and therefore provide the highest absolute number of jobs that remote talent could fill: a total of 26,000,000. In practice, just a small fraction of the jobs that could go offshore actually will. Today, around 565,000 service jobs in the eight sectors we evaluated have been off shored to low-wage countries. By 2008, that number will grow to 1,200,000. Extrapolating these numbers to the entire global economy, we estimate that total offshore employment will grow from 1,500,000 jobs in 2003 to 4,100,000 in 2008 – just 1 percent of the total number of service jobs in developed countries. To put this number in perspective (in what is, to be sure, not a direct comparison), consider the fact that an average of 4,600,000 people in the United States started work with new employers every month in the year ending March 2005. Why is the gap between the potential and actual number of jobs moving offshore so large? Many observers think that regulatory barriers stand in the way, but MGI interviews indicate that company-specific considerations (such as management attitudes, organizational structure, and scale) are generally more powerful deterrents. Companies cite cost pressures as the main incentive to hire offshore labor, for example, but the strength of cost pressures varies by sector. Many companies lack sufficient scale to justify the costs of off shoring. Others find that the functions they could offshore in theory must actually stay where they are because their internal processes are so complex. Often, managers are wary of overseeing units on the other side of the world or unwilling to take on the burden of extra travel. On the supply side, developing countries produce far fewer graduates suitable for employment by multinational companies than the raw numbers might suggest. Nonetheless, the potential supply of appropriate workers is large and growing fast, and some small countries boast surprisingly large numbers of them.