Underground Economy Essay Example for Free

Underground Economy Essay Every year, economics becomes a hot-button issue for politicians and ordinary citizens across the country. Politicians stake their careers on promises of economic revitalization, and individuals grouse when the forecast for the national economy is less than inspiring. Most economists measure an economy’s health by a variety of factors, such as the Gross Domestic Product, tax returns, poverty rates, and unemployment rates (Koopmans 575). But how accurate are these numbers? And if they are not accurate, then is society receiving a truthful picture of the overall economy? Many scholars stimate that as much as twenty percent of the GDP goes unreported every year (Kacapyr 30-31). In addition, surveys confirm that up to 25 million Americans are leaving large portions of income out of their tax files (Bartlett, â€Å"Going Underground†). In fact, the IRS estimates that an astounding one trillion dollars of income is left out of tax documents every year (Speer 15). Many factors contribute to this disturbing trend, such as crime and questionable business practices. However, one hot-button issue in particular has emerged as a significant factor in underground economy activity. For Texans, illegal mmigration is a little-disputed reality. For the American economy, Texas is an undeniable omen of the devastating impact of the underground economy. The term bears many other names (including informal and shadow economy), and has been defined in numerous ways, including those economic activities that circumvent or evade . . . the tax code and â€Å"unmeasured economic activity† (Priest 2259). The last definition, in its simplicity, best defines the underground economy. When many people think of unreported earnings, they may picture traditional illegal activities such as drug smuggling, prostitution, and gambling. While such activities do comprise a large part of the underground economy, millions of ordinary and otherwise law-abiding citizens participate in the underground economy every day. A 1994 auditor’s report states that, â€Å"The underground economy is not all smugglers. It is hundreds of thousands of otherwise honest people who have withdrawn their consent to be governed, who have lost faith in government (Dawson 18). For example, general laborers who are paid ‘under the table’ are for the most part honest individuals that nevertheless make up the estimated ? of Americans who earn â€Å"unofficial income† each year (Bartlett, â€Å"Going Underground†). What are the reasons for this illicit activity, and what effect does the underground economy exert on the overall economy? One major aid to the underground economy according to most experts is tax laws. Supply-side economics holds that any changes in marginal tax rates will have an important effect on resource use (Gwartney and Stroup 114). In other words, the presence of taxes greatly impact the economic decisions of businesses and employers alike. A big benefit for underground employees is the absence of income tax and social security reductions. In the underground economy, gross income and net income are equal. Employers also avoid costly payroll taxes when they engage in underground activities (Sennholz, â€Å"The Underground Economy†). Data gathered from the Census Bureau seems to confirm the prominence of tax evasion. The group estimates a twenty-five percent non-response rate for questions relating to income (Speer 15-16). Further, a Federal Reserve study found that when the tax burden increased by ten percent, underground activity rose by up to three percent. Self-employment and small business tax rises are particularly linked to underground economic expansion (â€Å"Underground Dwellers,† National Review). Another important determinant of underground participation is unemployment. Numerous studies have found a positive correlation between unemployment and underground participation. Individuals (especially those supporting families) who cannot find a well-paying job often feel that they have no other choice but to work in whatever job becomes available. Such citizens may work underground while still accumulating welfare and unemployment checks (Bajada 281-284). Surveys of inner-cities suggest that a gap does exist between the income reported to social welfare agencies (an average of $10,000/year in one California study) and the â€Å"actual† income level disclosed in confidential questionnaires (an average rise of $5,000/year in the California study). (Speer 16) Illegal aliens represent one prominent group who benefit from underground activities. Immigrants from poorer countries such as Mexico can be illegally paid under the minimum wage and still accumulate earnings significantly higher than if they found work in their home country. Such arrangements benefit both the employees and the employer (who avoids paying minimum wage and benefits) financially (Schlosberg 45- 47). The ramifications of underground economies on the economic picture are enormous. As previously mentioned, statistical data used to calculate the health of an economy can become irreparably skewed by missing underground information. Poverty rates and unemployment rates are overestimated (Bajada 181), which can present an overly bleak forecast for a state’s or country’s future (as evidenced by the American Demographics Index of Well-Being) (Kacapyr 31). In addition, small businesses and firms lose income opportunities because they are reluctant to move businesses into areas hich are deemed (perhaps falsely) as â€Å"poor† (Speer 16), resulting in a loss of revenue for affected regions. In return, the lack of legitimate businesses only stimulates the underground economy. National and state savings rates are also underestimated, which may lead to faulty focus in social welfare programs (Justice and Ng, â€Å"The Underground Labor Force is Rising†). Since these anti-poverty programs make up more than 70% of public aid programs (Paglin 2254), then it is vitally important that the facts and figures which are used to support and implement such programs are as accurate as possible. The programs that do work will lose important funding, due to tax shortfalls (Anderberg, Balestrino, and Galmarini 651). Likewise, the increased burden on taxpayers can create lower morale amongst even more otherwise law- abiding individuals (Bajada 187). For example, when the federal government is forced to raise taxes in order to fulfill missing income taxes, more citizens will become involved in underground activities in order to replenish their own incomes (Gwartney and Stroup 115-116). And the cycle continues. In the world of economics, there are no easy answers. Texas has learned this hard esson first-hand as its own underground economy thrives, largely due to a booming population of illegal immigrants. According to estimates by the Pew Hispanic Center, Texas-based illegal immigrants account for roughly ten percent (1. 6 million out of 11 million) of the overall United States illegal citizen population. Most of these undocumented citizens have settled in seven populous regions, including Houston (Combs, â€Å"Undocumented Immigrants in Texas†). Researchers project that the population of Texas will comprise of over fifty percent Hispanics by the year 2030 (Johnson, â€Å"Texas 2025). Of these fifty percent, a majority will enter the growing workforce of undocumented workers. Many of these undocumented workers arrive from the most education- and poverty-stricken regions of Central America and Mexico (Johnson, â€Å"Texas 2025†). Therefore, most illegal citizens, desperate for secrecy and any money for their disadvantaged families, accept jobs for little income and virtually no benefits. Despite a 1980s state mandate that banned companies from employing undocumented workers (â€Å"The Costs of Illegal Immigration to Texans† 7), Texas continues to be a prolific workplace for illegal immigrants. In addition to its proximity to the Mexican border, the heavy tourism and farming present in the state makes the region an attractive draw for the surplus of service, construction, and field jobs that constitute most undocumented employment. What are the ultimate effects of Texas’ booming undocumented, underground economy? Since the state does not focus on income taxes, most tax losses result from the disadvantaged economic situation most illegal immigrants encounter. Less income itself means less spending and therefore less sales tax—taxes which generate a large portion of state revenues (Bartlett 12). The greatest costs to the state economy, however, are accrued in public assistance. Just as state laws sought to punish employers for hiring illegal immigrants, the United States Supreme Court struck a blow to Texas’ immigrant control efforts by ruling that children of undocumented citizens must be allowed entrance into the public education system. Since this 1982 ruling, the state has spent roughly $7085 dollars per year on each student (including each undocumented student). If reports by the Texas Education Agency are accurate, the annual cost of schooling undocumented students is 957 million dollars (Combs, â€Å"Undocumented Immigrants in Texas†), nearly one billion dollars per year. Healthcare represents another crucial cost of the underground economy. Since virtually all undocumented workers receive no health insurance, these individuals must rely on public health services when they do fall ill or get into accidents. In Texas, most of these services are readily available to anyone—regardless of citizenship status—due to the Indigent Healthcare and Treatment Act. Emergency care, treatment of infectious diseases, immunizations, women’s and children’s health services, and even mental and substance abuse programs can all be obtained by illegal immigrants. The Texas comptroller conducted a comprehensive study at the end of 2006 which highlighted the extreme cost of such services per year. By applying a formula which measured state expenditures against the estimated undocumented population, the comptroller found costs of three and a half million dollars annually in emergency medicine alone. Federally mandated assistance services such as Medicaid netted an additional 38 million dollar cost per year in relation to illegal immigrants. Overall, the comptroller put total healthcare costs based on underground activity at a conservative 58 million dollars. Most of these expenses fall onto local governments and businesses in the private sector, as does the estimated 130 million dollars in annual illegal immigrant incarcerations every year (Combs, â€Å"Undocumented Immigrants in Texas†). The impact of illegal immigration on small business entrepreneurs perhaps highlights the most lasting cost to Texas’ future. A prevalence of underground economic activity steals from and slowly strangles the economy that is ‘above the ground. ’ Consider the plight of one contractor, a man who already charges at rates drastically reduced from those of his competitors. Despite his willingness to adjust to the economic climate and the spirit of capitalism, this legal worker—who compensates all of his employees fully—recently received a dismissal from a potential client that has become all too common: â€Å"I have two other bids here that are half what you’re asking† (McHugh, â€Å"Notes from the Underground Economy†). Documented workers, already struggling in a struggling economy, must face even more obstacles simply because they expect a living wage. The government has done little to address this problem. By the turn of the century, fewer than 1000 employers nationwide were being held accountable for hiring illegal immigrants. If this lax approach to the problem continues, in the United States and in Texas in particular, the dire prediction of Texas State Representative Pete Gallego will transform into a grim reality: â€Å"By the year 2025, if we keep doing what were doing now, Texas will have the economy of a Third World country. †

Impact of Brexit on EU Foreign Policy

Impact of Brexit on EU Foreign Policy The European Union will face a new kind of challenge with the exit of Britain: the departure of one of its largest and most substantial member states. No member states has yet made the decision to exit the European Union, so Brexit is a significant event in the history of Europe. The leaving of a member state from the EU is unprecedented and therefore the political consequences are likely to be considerable and prolonged, not only for Britain but for the European Union as a whole (Hobolt 2016). United Kingdom leaving the European Union would change how EU institutions operate not just during the withdrawal period, but also afterwards. The long-term impacts are still uncertain, the process of Brexit takes many years and the full consequences will not be known for a long time. It is only possible to examine probable scenarios. It would most likely affect the European Union’s global role and the balance of power among member states and therefore the policies that the EU would pur sue. It would also alter the resources upon which the EU could draw (Patel, Reh 2016). In addition to that, Brexit will probably encourage populist, anti-immigration and Eurosceptic forces around Europe and that in turn, in the worst case scenario, could eventually create an unravelling of the European Union. Britain is one country among 28, but it is also 15 per cent of the European economy and an eighth of its population. British governments have also been centrally involved in EU’s foreign and security policy. Therefore, there is a lot at stake and Britain leaving the European Union is not only a turning point for Britain but also for the foreign policy of the EU (Raines 2016). Brexit could also alter the relations between the EU and U.S. since the U.S. considers UK as a ‘bridge’ between themselves and the continental Europe. Brexit certainly has serious impacts on the foreign policy of the EU and could possibly even create a rupture in Europe. On the other ha nd, Brexit could be an opportunity for the European Union to show that they can handle a â€Å"challenge†. It depends how the European Union can handle this situation. In this essay I am going to analyse the plausible and realistic short-term, but mainly long-term impacts of Brexit on European Union foreign policy and global role and shortly go over how it could impact the relations between the European Union and the United States. Brexit will significantly weaken the EUs global role. For many, the EU is known for the symbol it stands for- binding Europeans together to resolve conflicts and differences collectively. Brexit puts that symbol of international cooperation to test (Raines 2016). Diplomacy, soft power and international collaboration are the three key aspects of European Union’s foreign policy and its influential powers. Those aspects would be less powerful on the World stage without UK, since the UK is EU’s one of the most important member states and international ‘star-players’ (Patel, Reh 2016). Britain has been centrally involved in EU’s foreign policy and has pushed forward the enlargement of the union, trade liberalisation and the global fight against climate change. With Brexit, the EU loses a key member state with major strategic, economic and diplomatic abilities. With that the European Union fails to be ‘attractive’ internationally if even its o wn member do not believe in the EU’s ability to promote its model, norms and values any more (Weilandt 2017). The EU’s influence on the global scale is also decreasing with the parting of major military power in the EU. UK and France are currently the only member states within the EU with considerable military power and losing one of them could undermine any future development of serious EU military capabilities (Patel, Reh 2016). The European Union’s legitimacy has already suffered due to its poor handling of the Eurozone sovereign debt crisis and the refugee situation (Weilandt 2017). Immigration and the refugee crisis, alongside with economic issues, were also one of the key arguments for having the UKs referendum to decide whether to stay or leave the European Union and fundamental in explaining why the country ultimately voted for Brexit (Clarke, Goodwin, Whiteley 2017). Now the question is, whether those concerns are exceptional for British people or can t here be expected similar uprisings against the European Union in other member states (Hobolt 2016). Brexit could lead to cycle of disintegration. Some member states that were concerned with their sovereignty already before, with the main concerns rooting from European Union’s poor handling the refugee crisis since 2015, could follow in Britain’s footsteps, for example, Poland and Hungary (Leonard 2016). There have been evidence in studies carried out by MCLaren in 2002 and 2006, along with other studies, that Euroscepticism is closely related to general hostility and resentment to other cultures, such as unfavourable mind-set towards immigrants and minority groups (Hobolt 2016). In addition to diminishing the EU on the world stage, brexit could therefore encourage and strengthen Euroscepticism, anti-immigration and anti-democratic forces in Europe who would seek to rethink their country’s membership with the European Union or at least some rearrangement of their relations and conditions with the EU (Patel, Reh 2016). Although referendums on whether to leave the EU or not, are possible, given the pressure from rising populist parties, it is still not very likely. Most mainstream parties in Western Europe are pro-EU. The Eurosceptic parties would need to form a coalition with the pro-EU parties to gain office and muster a parliamentary majority in order to call a referendum on EU membership. Even the most successful populist parties in Western Europe, such as the Danish People’s Party and the Dutch and Austrian Freedom Parties would find it quite difficult to raise a parliamentary majority to, in turn, call in a vote on the matter of the EU membership. While EU referendums are not very likely in other member states, the rise of populist Eurosceptic parties nevertheless pose a serious challenge to the European Union (Hobolt 2016).There is a growing Euroscepticism in Europe after the Eurozone and migrant crises, nevertheless, opinion polls since 2012 have persistently shown that Britain is rather the exception than the rule when it comes to support for leaving the European Union (Hobolt 2016).Yet, it cannot be said that Brexit vote is uniquely a British phenomenon, it indicates the same conceptions that stimulate increases in support for populist Eurosceptic parties across the Europe in recent years, especially in the outcome of the Eurozone and migrant crises. Concerns about immigration and the diminishing national identity in a globalized world are still growing in Europe, beyond Britain. (Hobolt 2016). Better safe than sorry and European Union would still want to rule out any chance for a Brexit domino effect and therefore will make it difficult for Britain to leave the EU, avoiding the precedent of easy withdrawal, so other member states would not even think about leaving the European Union (Patel, Renwick 2016). Germany and France might even push for more immigrant and integrations in Europe to show â€Å"unity† (Patel, Reh 2016).   The EU tends to use further integration as a solution crises, this has well been demonstrated by the Eurozone crisis and those surrounding the Schengen area (Oliver, Williams 2016). This attempt to push for even more integration in Europe in order to demonstrate unity, could set off a counter reaction from member states that have a Eurosceptic parties and lead to even more Euroscepticism in Europe, based on the studies mentioned before. As has Donald Dusk, President of the European Council said: â€Å"Obsessed with the idea of instant and to tal integration, we failed to notice that ordinary people, the citizens of Europe, do not share our Euro-enthusiasm†(Grant 2016). It should be worrying that many voters across Europe see European Union as part of the problem rather than a solution when it comes to protecting the ordinary citizens from the troubles of an even more globalised and integrated world (Hobolt 2016). Brexit would very likely change the balance of power within the European Union and therefore also the policies that the EU could draw (Patel, Reh 2016). It is argued that Brexit could strengthen the position of Germany, shift alliances and possibly also either strengthen or weaken smaller states. Until this point, Germany has already determined the EU’s response on past issues such as the Eurozone crisis, refugees and the war on in Ukraine (Grant 2016). The departure of the UK could further reassure Germany’s position, since UK has often served as a critical counterweight. This could lead to many smaller member states worrying about German domination (Patel, Reh 2016). Some analysts have noted that without the UK, Germany would be expected to subsidize more to European defence and security also. This would be an undesirable position and responsibility for Germany.   It has also been argued that that with the Europe’s other dominant powers, France, Spain and Ita ly, in either decline or political unrest, Germany needs the UK to help it lead the European Union (Patel, Renwick 2016). Although Germany needs UK to co-lead the European Union and they have been quite keen to keep the UK in the EU, they have also made it clear that this goal is not pursued at all costs- particularly not at a cost that weakens the concept of European integration (Oliver, Williams 2016). Brexit could also change the relations between the European Union and the United States. Many Americans believe that having one of United States’ closest allies in the EU aligns it more closely with U.S. foreign policy aspirations and the U.S. saw the UK as a bridge between themselves and continental Europe (Grant 2016). UK has helped move the European Union toward shared U.S. foreign policy aims before, for example as the Atlantic Council’s Frances Burwell points to the EU setting sanctions on Iran for its nuclear program and on Russia for Moscow’s takeover of Crimea. Although it is argued that Brexit would likely have a little impact on the EU-US relations since U.S. and UK would still be both members of NATO.   While historically Britain has been the leader of the Antlanticism, support for a close relationship between Western Europe and the U.S., in Europe, there is no reason why another big EU member state could not play this part. Indeed, the United States has already started to look to other states, particularly Germany for an ally, and France for military leadership in Europe (Oliver, Williams 2016). The loss of European Union’s key member states with major strategic, economic, diplomatic and military capabilities will be a serious setback to the EU’s position and reputation, alongside with its international influential powers. Brexit is a momentous event in the history of EU, and because this is situation is unprecedented in Europe, the impacts are uncertain. Nevertheless, the consequences will most likely be substantial and prolonged in the EU’s policy and foreign policy. Firstly, Brexit will weaken the global role of the European Union signifantly. EU is no longer sufficiently attractive if even one of its own members do not believe in the norms and values set out by the model of international cooperation that is the European Union. This puts the EU’s symbolic meaning into question- is the EU still a model for the future of international cooperation? From here could the unravelling of the EU begin. Brexit emboldens anti-immigration and Eurosceptic f orces across Europe. The reputation of EU has already decreased after the poor handling of the Eurozone and immigration crises. Immigration issues were the key to the UK’s referendum and has got many other member states concerned as well. There is a rising mistrust in the Union and although referendums on the EU membership in other member states is unlikely, the EU should be concerned with the rising populist and Eurosceptic forces. Even though referendums are not very likely, some member states could at least seek some reconfiguration of the conditions and terms with the European Union. Naturally the EU would want to prevent any Brexit Domino effects and therefore make the conditions of leaving possibly difficult for the UK, not willing to make many concessions. The Brexit negotiations will be long and complex. As a result of Brexit, the EU might want to push for more integration among the member states, to show ‘unity’, led by Germany and France. But this attempt could a counter reaction and lead to even more Eurosceptisim in Europe. Brexit will also change the balance of power between the member states. This could go in many possible directions but it is very plausible that the Brexit will strengthen the position of Germany, or rather- further reassure Germany’s position, Germany has already determined the EU’s response on past issues. Germany’s dominant position could have many smaller states worried, since until now the UK has served as a critical counterweight to Germany. Bibliography Clarke, D. H., Goodwin, M., Whiteley, P. (2017) BREXIT: Why Britain Voted to Leave the European Union. Cambridge: Cambridge University PressDaianu, D. (2016) ‘One crisis after another: How the EU can deal with Brexit’. The European Council on Foreign Relations [online] 7 July.   Available from: [13 November 2017]Grant, C. (2016) ‘The impact of Brexit on the EU’. Centre for European Reform [online] 24 June. Available from: [13 November 2017]Hazell, R., Renwick, A. (2016) ‘Brexit: Its Consequences for Devolution and the Union’. [19 May 2016] UCL Constitution Unit Briefing Paper (online). Available from:    [12 November 2017] Hobolt, B. S. (2016) ‘The Brexit vote: a divided nation, a divided continent’ Journal of European Public Policy [online] 23 (9), 1259-1277. Available from: [10 November 2017]Leonard, M. (2016) ‘Brexit: The foreign policy implications’. The European Council on Foreign Relations [online] 24 June. Available from: [11 November 2017]Oliver, T., Williams, J. M. (2016) ‘Special relationships in flux: Brexit and the future of the US–EU and US–UK relationships’ International Affairs [online] 92 (3), 547-567. Available from: [14 November 2017]Patel, O., Reh, C. (2016) ‘Brexit: The Consequences for the EU’s Political System’. [5 May 2016] UCL Constitution Unit Briefing Paper [online]. Available from: [12 November 2017]Patel, O., Renwick, A. (2016) ‘Brexit: The Consequences for Other EU Member States’. [2 June 2016] UCL Constitution Unit Briefing Paper [online]. Available from: [12 November 2017]Raines, T. (2016) ‘Britain’s Vote Will Test the Limits of the EU experiment’. Chatham House [online] 21 June. Available from: [13 November 2017]Weilandt, R. (2017) ‘Why Brexit’s Impact on EU Foreign Policy Might Remain Limited’. Crossroads Europe [online] 17 August. Available from: [11 No vember 2017]Wright, N., Patel, O. (2016) ‘The Constitutional Consequences of Brexit: Whitehall and Westminster’. [21 April 2016] UCL Constitution Unit Briefing Paper [online]. Available from: [12 November 2017]

Shooting an Elephant :: essays research papers

A police officer in the British Raj, the supposedly 'unbreakable'; ruling force, was afraid. With his gun aimed at a elephant's head, he was faced with the decision to pull the trigger. That officer was George Orwell, and he writes about his experience in his short story, 'Shooting an Elephant';. To save face, he shrugged it off as his desire to 'avoid looking the fool'; (George Orwell, 283). In truth, the atmosphere of fear and pressure overwhelmed him. His inner struggle over the guilt of being involved in the subjugation of a people added to this strain, and he made a decision he would later regret enough to write this story. Early on in his essay, Orwell describes how the abuses and treatment he witnessed oppressed him '… with an intolerable sense of guilt,'; (Orwell,277). This is not some minor pang, or nagging worry. The shame pressed down on his shoulders with an unbearable weight. He also describes the injustices in detail, using vivid pictures like 'The wretched prisoners huddling in the stinking cages…'; (Orwell,277). This does not come from someone who condones such behavior. It stems from a troubled, remorseful soul. The mob, thousands by his description, also pressured him. 'I could feel their two-thousand wills pressing me forward, irresistibly,'; he emphasizes (Orwell, 280). It is hard to resist the peer pressure of one or two people, much less a crowd of thousands. He admits, '…in reality I was only an absurd puppet pushed to and fro by the faces behind.'; Thus, the desire and will of the crowd urge him on, ominously. The people despised him. He speaks of being 'hated by large numbers of people'; and the 'sneering yellow faces of young men that met me everywhere..." (Orwell, 276). As one man, how could he dare to go against them? Two thousand could easily overtake one. They would not have aided him, should anything go wrong, and eagerly anticipated that eventuality. He describes his fear that they would watch him be '…pursued, caught, trampled on, and reduced to a grinning corpse…'; should the elephant charge (Orwell, 281).

Management accounting and decision making Essay

According to Burger (2008) â€Å"Accounting is the language of business. A lot of people think it’s just numbers, but it’s really a lot more than that. There are a lot of areas outside of numbers that need to be looked at, processes and procedures, what the tone of the company is. Accounting will take you in just about any direction in a company.† ~ Wade Becker, CPA, Beard, Miller Co. The job description of many professions is changing nowadays. The skills to perform a certain job require more skills to perform a particular job. If an example of Information Technology is to be taken then it is realized that once they were left to do IT related jobs or make computers work however, in today’s world IT professionals are now moving into higher level management positions which require them to perform many other tasks which may not be directly related to the their profession. Therefore, a stereotypical role of an accountant was once considered a â€Å"number person† but today’s era demands accounting professional to own and use interactive and communication skills to help with the decision making process across all areas of a business. In a managerial accounting world all professionals must communicate their ideas to other companies using ways which are tactful and effective. Siegel (2000) states that â€Å"Management accountants should be great communicators.† Durry C (1992) believes that management accounting is â€Å"concerned with providing information to managers –that is people inside an organization who direct and control the operations.† In the 19th Century financial accounting was considered to be the need of a society which later evolved to Management accounting. Management accounting became a prerequisite for more detailed information for stock control, product costing and decisions affecting the future. Accou nting is facing numerous challenges, as Elkington (1998) states â€Å"business people must increasingly recognise that the challenge now is to help to deliver simultaneously economic prosperity, environmental quality and social equity.† All this is making business managers to re-examine the practices that are currently led. Cokins G and Hicks D believe that Managerial accounting is part of an organisations management information system. To follow any business or an organisation aim managers engage in activities which involve an effective cost model as it can be a great asset to an organisation. A business or projects to be a success or failure three things need to be considered, for  example, cost, schedule and performance. A project should be continued within the means provided otherwise stakeholders struggle to finance the project and its abandoned. A success of a manager is when appropriate tools are employed and sound safe decisions are made and follow on with applying substantial level of expertise to have effective cost management. The world today is surrounded by increasingly advanced technology such as computer assisted manufacturing and flexible manufacturing systems. According to Cokins and Hicks organizations to compete effectively need to understand the cost of each product or element of their value chain from product design and purchase of material therefore internal cost is very important as mentioned in Cokins and Hicks article because it becomes critical for competitive action and increasing shareholders wealth in the current globally competitive economy. Management accounting systems are the benefactors of the precarious internal cost information. There has been few criticisms leading to the literature of Management accounting system and it has been labeled outdated and there has been criticisms linked to its consistency as it has been thought that it does not provide consistent information with the current strategic management paradigm. Cokins and Hicks believe that systems designs elements should capture the fundamental technology, promote a business based on effective cost model, quality and lead time. Precise and appropriate cost information is critical to management’s decision making procedures (Cokins and Hicks) and the literature being studied reveals Management accounting system reflects the organizational complications of the current world however traditional Management accounting systems do not replicate current organizational era as all costing procedures were designed around late nineteenth century. In traditional era product line diversity was not very common and cost of materials and direct labour were the main components of production cost but the environment today is surrounded around advanced technology and automation and that has led the prime cost to be the overhead component. The overhead costs are altering product cost because of the old management accounting system techniques. Management accounting needs a unique set of skills and behaviour. According to Cokins and Hicks Accounting Management framework gives business a planned approach to address all factors that will manage accounts interface and todays reality. Cooper and Kaplan believe there are six critical factors which play a crucial role  in Accounting Management framework which also backs Cokins and Hicks journal being studied for this assignment. The first one is organizational structure. It includes factors such as whom and how you manage accounts, why and how you organize around them. The second account management success factor is people as they need the appropriate skills, knowledge and skills to experience and perform the role. The third factor is tools and technology as it must support the account management processes and must balance â€Å"help† as â€Å"control.† The fourth one is compensations structures as they can inhibit change or accelerate adoption. The fifth account management success factors are processes and methodologies as they should align with the customer, drive growth and opportunity plan and the last factor channels and alliances must be managed effectively through the account manager interface.it is up to an organization to structure their useful employees around their key customers and that can create a deep impact on their performance. First few deliberate decisions need to be taken in terms of placement of accounts management resources such as market and territory. Cokins and Hicks believe management team need to plan using methodology a number of factors to create a ranking based on the business goal for the affiliation and ability to deliver. Once these methodologies are selected they can play a vital role in team structure and it will help to deal with issues such as ownership or shareholders Cokins and Hicks discuss the difference between cost accounting and managerial accounting and the strength of their article is that managerial accounting is tied with GAAP whereas cost accounting is used within a business to manage that particular business. Accounting standards of a country provide guidelines to an accountant so they can be used while reporting economic transactions of a business. United Kingdom accounting has improved a lot as mentioned in the journal being studied for this particular assignment. Managers have immense pressure to improve financial management practices to improve service to the community and it is not only done on national level. Managerial accountants have to keep accountant standards fair globally and that is mainly done through Accounting Standards Committee. â€Å"What gets measured gets managed, What needs managed gets measured† (Peter Drucker) famous quotes has cause many criticisms but if the practices and development mentioned in Cokins and Hicks journal are to be analyzed, one can conclude this quote has some truth. Managers of a business  often use this quote indicates that active management of businesses should be given importance instead of accountability to gain desired goals. It w ill lead to survive in today’s world of information age competition therefore businesses should ensure they are using management systems resulting from their strengths. Any business main task is to develop an active measurement system as it is main part of the management process. Good management practices lead to using certain measures to plan, implement and improve certain aspects of an organization. According to Kaplan, (1994) measurement is a difficult task because it is not related to science so there are no facts and does not have rules between variables. Furthermore, systems which are used by management accountants will make sure that actions are taken according to the strategies and objectives developed. There has been an immense amount of research on management accountants and the research evidence has proved that businesses which are using a developed measurement system are developing and gaining profits therefore, Gates (1991) states â€Å"an organizations objectives and severity of measures, varies, depending on people, culture and past experiences of the organization.† The management accountant was developed after 1980s and it was seen a golden era in management accounting research as it saw new techniques and practices beneficial to the management accounting. One of the techniques developed in 80s was strategic management accounting and some of the processes which fall under the category of strategic management accounting are activity based costing and balance scorecard. The balance scorecard emerged after it was realized that there is a need of an integrated system which can be used to measure both financial and non-financial performances. It helps companies to view their performances on a regular basis and it gave a clear view of what should be measured in order to balance a particular business financial perspectives. The balance score card consists of four functions known as learning and growth perspective. It means how to achieve a certain organizations goals and how will a business will sustain its ability to change and improve. the second perspective is financial and its aim is to succeed financially and is mainly concerned with making a good impression to shareholders. Another perspective is based on customers as they can determine sales and to achieve business goals a good impression is to be made upon customers. The last perspective is known as internal business  processes. It mainly deals with how to satisfy customers and shareholders and what business processes must a certain business excel as. (Kaplan and Norton:1996) Balance scorecard is one of the necessities for any organization and it is used by the management to accomplish vision and strategies of an organization and it has few other benefits too such as, making sure managers are managing every single variable within an organization and are not working upon favoritism. If more developments are to be discussed and strength of Cokins and Hicks journal than one must not forget one of the major development in an accounting field known as Activity-based costing. Kaplan and Cooper gave this idea a new beginning as it was not very well known in previous years. According to Kaplan (1996) manufacturing costs are determined by amount of â€Å"activities† and the key to effective cost control is maintaining the effectiveness of the act ivities ABC recognizes better cost pools for indirect costs and then implies cost drivers to relate the expenses in the cost pools to activities of an organization. ABC has become more popular in recent years but faces a lot of criticisms too due to the fact that sometimes businesses face difficulties in implementing this technique. ABC is enhanced further by Activity-based management as they believe in planning and measurement and class them as key factors in a competitive business environment. To conclude, If an organization has accounts managers or not a success can only be achieved if a successful profile is valued. It can be done through an industry as it will help determine to what extent an account manager is an industry expert and the second is through customers as it is vital for an accountant to understand the businesses being worked upon. The profession Accountancy has seen many developments and criticisms however, since 1980s there has been many changes in management accountancy. The new changes are focusing on measurement tools within a business to manage its aims and objectives. Management techniques are discussed briefly in this essay and they emphasize on Cokins and Hicks journal that management decisions can be made better by using effective management measurement tools and it leads to improving the management of an organization. There can be problem with new measurement techniques as nothing in life comes with a guarantee however, new ideas can be used on the basis of guess work and the new contributions could be a way forward.

Smart Metrobus Stops

Reduce the traffic The metrobus system, which IETT has effectuated in order to reduce the traffic density at the main arteries of traffic in Istanbul and to provide quick and comfortable transportation, primarily started to serve at Topkapi-Avcilar route. * To encourage more use of public transport The metrobus system, which reduced the Access time of Topkapi-Avcilar to 22 minutes, it  was 67 minutes previously, will be extended to Beylikduzu at the European side of Istanbul and to Kozyatagi the Anatolian side of Istanbul.One bus can carry   600. 000/day. The number of people that  typically travel in a car –  making bus travel greener and reducing congestion on our roads. Metrobus  improves reliability and more people will be encouraged to leave the car at home and use the bus more often. The metrobus system, which displays further development potential than other express lines; whose investment and operation costs are absolutely lower than other railways; whose est ablishment is completed in a shorter time relatively, has primarily reduced the traveling period, providing time saving.Since the vehicles move on their specific road, the accident rate and risk reduces. High-tech devices within the system provide a safer and more comfortable travel. By means of its environment-friendly engines, the emission rates reduce drastically and the hybrid engine provides approximately 40% fuel savings Its drawing near alongside the stop facilitates the disabled travelers to get on the metrobus. Operational Capabilities * Intelligent Metrobus Signs provide; * Real time travel information at high-use bus stops Timetables, route maps and local area maps * Need minimum maintenance and have a long service life * No need excavation, easy fitting * Promoting more people to use public transit * Audiable signange fort he visually impaired * Save %75 energy more than traditional stops * Solar-powered system, friendly to environment * Can be used as a lighting and 220 Volt AC power supply in case of emergency or natural disaster * Can call emergency with the emergency/panic button Intelligent metrobus sign system should be designed to withstand malicious use (A push button also triggers an audible message of the same information to help passengers with a visual impairment) . User Classes * Public: people who are using metrobuses searching which line they will use, arrival time of the metrobus or looking at the city map. * Maintenance personnel: people who service, adjust, maintain and repair equipment STAGE 2: OPERATIONAL CONCEPT FORMULATION * Existing metrobus stops  are being  upgraded and some new metrobus stops  built along for future metobus routes.This ensures that passengers have reduced waiting times and easier  access to buses. * LCD displays on metrobus stops show arrival, departure and estimated time of arrival calculation information based on the vehicle tracking data. This tracking information is provided using satellite sig nals from the Global Positioning System (GPS) . The data is transferred to the control centre by GPRS communication. * Positions of all metrobuses are tracked so that predictions of arrival times on  information displays at metrobus stops are continually updated. The metrobus stop acts as an active environmental sensing node, powering itself through sunlight and collecting real-time information about the surrounding environment STAGE 3: OPERATIONAL CONCEPT FORMULATION * Main task The system would provide real-time information on LCD display screens at these stops. The information indicate the fixed route of the metrobuses on graphic maps, the number of stops and the estimated time before arrival. * Human Task The user will be able to check his current location, closest metrobus stop's location and name and all metrobus lines and their routes.And there will be a panic buton to be used just in case of an emergency ( will be located to a certain level of height in order to be kept aw ay children’ reach). Different views of system * Physical view * The size of the Metrobus Stop is modular and adjustable depending on the number of people using the bus stop at the specific site. * Schedules and timetables for each route are visible on LCD screens and there will be 2 LCD screens located the midpoint of the distance between 3 doors. The navigation positioning device (GPS) retrieving current vehicle geographic longitude and latitude coordinates from the received satellite signal * The position data transfers to Metrobus Stop Control Center * Compute a distance from the current position to a next target position value and the current geographic longitude and latitude coordinates * Analyzes the current vehicle speed based on a basic vehicle speed, and sends the analyzed speed data and the computed distance data to ETA (estimated time of arrival) unit. Compute parameters for adjusting a remaining distance and the remaining distance based on the received data * And determine the remaining time to the next stop according to the remaining distance to the next target position value and vehicle speed. * The data is transferred to the Metrobus Stop by GPRS communication Using the Metrobus stop, public transit operators can provide passengers reliable estimated time of arrival predictions, achieving greater passenger satisfaction and significantly improving their public image.A Global Positioning System unit would be installed on every metrobus to send real time information to the metrobus stop display via satellite. STAGE 4:CONCEPT DEMONSTRATION AND VALIDATION * The concept of design which is chosen during concept exploration is now modeled, simulated and model tests are performed. * Making sure that the proposed design encourages more people to use public transport is the major phase of this stage. Questions should be answered are; * Does the desing concept meet requirements for operating, maintaining and supporting the system? * Does it meet saf ety and personal training requirements?Personnel Requirements The stuff who are responsible with servicing ans maintaining are required to have necessarry technical knowledge and go through training programmes that may be necessary to bring their skills up to required levels STAGE 5: FULL-SCALE ENGINEERING DEVELOPMENT Products are not only tested by consumers, but also will be tested during the process of design and manufacture. Usabbility Testing and Reference of Testing Results * Intelligent metrobus stop provides timely passenger information based on fast and effective communications. In average, the connection is established in less than 0. seconds, instantly providing accurate information on metrobus status. * When the metrobus passes through a tunnel, the global positioning device  Ã‚  is not able to transmit and receive signal to and from the satellite  . and therefore, could not retrieve the current vehicle geographic longitude and latitude coordinates and the current ve hicle speed to result in incorrect announcement of arrival at a next stop by the metrobus stop announcing system * Pressure and strength test are applied on the intelligent metrobus stops. * The metrobus stop shelter material is made from 99. 9% uv protection policarbonate. serlite Polycarbonate Selter prevents the transmission  of more than 99. 9% of harmful UV radiation, measured to   standard ISO 9050:2003. Its co-extruded UV barrier protects the   sheet from UV degradation and discolouration. It remains stable  under extreme climatic conditions (-20 ° to +120 °C). Shelters also stop the rain. * Laserlite Polycarbonate  Roofing is self extinguishing, stops the spread of flame   and also has excellent fire resistant properties. Therefore, this   product complies with many fire related tests, including Heat and   Smoke Release   Rates   (AS/NZS   3837:1998) STAGE 6: PRODUCTION AND DEPLOYMENTUsers don’t need any training period. Training is only for technical service and operator workers. A timetable is available for convenience, and there is a slot for advertisement in order to create a surplus in cash flow, allowing more metrobus stops to be built. The technology would enable people to leave their cars and encourage more people to use public transport. Changes that should be made for later versions will allowed you to check your e-mail, share community information on a digital message board or monitor the local air quality. STAGE 7 : OPERATION AND MAINTENANCE The system require minimum maintenence and have a long service life.

Ethical codes and Critical thinking Essay

The issues involving Ethics vs Critical thinking has been a popular topic among researchers for many years. In depth analysis of Ethics vs Critical thinking can be an enriching experience. While it has been acknowledged that it has an important part to play in the development of man, its influence on western cinema has not been given proper recognition. Inevitably Ethics vs Critical thinking is often misunderstood by the easily lead, whom I can say no more about due to legal restrictions. Complex though it is I shall now attempt to provide an exaustive report on Ethics vs Critical thinking and its numerous ‘industries’. There is cultural and institutional interdependence between members of any community. When Thucictholous said ‘people only know one thing’ [1] he shead new light on Ethics vs Critical thinking, allowing man to take it by the hand and understand its momentum. More a melody to societies dysfunctions than a parody of the self, Ethics vs Critical thinking bravely illustrates what we are most afraid of, what we all know deep down in our hearts. Some analysts have been tempted to disregard Ethics vs Critical thinking. I haven’t. Clearly it promotes higher individualism and obeyence of instinct. As soon as a child meets Ethics vs Critical thinking they are changed. Increasingly economic growth and innovation are being attributed to Ethics vs Critical thinking. Of course, Ethics vs Critical thinking fits perfectly into the Lead-a-Duck-to-Water model. For those of you unfamiliar with this model it is derived from the Three-Amigos model but with greater emphasis on the outlying gross national product. When displayed this way it becomes very clear that Ethics vs Critical thinking is of great importance. My personal view is that the cost of living world wide are driven entirely by Ethics vs Critical thinking. Many analysts fear a subsequent depression. It is always enlightening to consider the words of the uncompromising Kuuipo H. Amster ‘Political  idealists must ideally deal, for I daily list my ideals politically.’ This quotation leads me to suspect that he was not unaccustomed to Ethics vs Critical thinking. It speaks volumes. If Ethics vs Critical thinking be the food of politics, play on. One thing’s certain. The Human species liberally desires Ethics vs Critical thinking, and what’s more human than politics? What can we conclude? Well, Ethics vs Critical thinking parades along man’s streets and man waves back. It enriches, ‘literally’ plants seeds for harvest, and always chips in.

Introduction to business Essay Example | Topics and Well Written Essays - 1000 words

Introduction to business - Essay Example While the first wave of public management reforms happened between 1979 and 1999, the turn of the millennia has shown increased reforms aimed at better servicing the public. The example of the way in which government employees are put into a culture of purpose, a social contract in which pay is only a part of the reward system, shows the way that reforms of the conservatism that hampered the system are being healed. The public management field is concerned with the areas of interest that are defined by the needs of the public. In order to fully understand this field, it is important to have definitive understanding of what the word public means. According to Bovaird and Loffler (2009), public refers to â€Å"collective choice and activity† in which â€Å"it has the ultimate responsibility for constituting a society as a political community which has the capacity to make public choices† (p. 5). The concerns of the public are the concerns of creating a community in which the needs of the individual are addressed in such a way that they best benefit the needs of the community as a whole. One of the prime concerns for public management is increasing the value of the money that is spent in serving the public, in creating the best possible result for the least amount of money in order to create the broadest number of services. In understanding the services of public management, it is beneficial to contrast it to the purposes of public administration and governance. Public administration is concerned with holding the budget, with administering the finances and how they are spent Governance is concerned with determining the structures through which decisions will be made and judging if those structures have been effectively followed. Both of these types of control are determined a great deal by the way in which the public perceives the effectiveness of their application (Bovaird and Loffler 2009 p. 6). Public management is concerned with managing the need s of the public through efficient use of the funds that are available so that the most people see the best and greatest amount of benefit. An example of the difference is shown by Bovaird and Loffler (2009) through a simplified consideration. When considering the topic of clean streets, governance is concerned with the actions of the citizens in preventing further littering, while management will be concerned with how to improve street cleaning services (p. 9). While this is a very simplified version of the differences, those differences can be viewed through the lens of this example. In the year 1999, Pollitt and Bouckaert wrote about the need for public management reforms. There are five areas of interest that define the reasons that reform was called for during this time. The examples of public management within Finland and Sweden could not be reached due to differences in the structure of the United Kingdom. The first difference that is remarked upon is that the U.K. reflects a deeper complexity of political governance. The second difference is within the per capita wealth of the country. The third concept is within the capital growth within the country. The fourth is within the differences that can be appreciated general governance expenditure. The final aspect that must be considered when approaching reforms in order to reflect the nature of the U.K. social and political structure is in the wide variations in wage and price increases