Electronic Commerce

Electronic Commerce – often shortened to E-commerce – is the name given to selling and buying things using the Internet. E-commerce is important because: – * Many people now have Internet connections. Information about goods and services for sale can be put on the World Wide Web. Setting up a company website and doing business through it can be a lot more cost effective than using purely traditional shops. * Companies can have a national or even international customer â€Å"reach† with a website. * People do not leave their homes to shop using E-Commerce. * The costs of delivery of goods are low and many carriers are available. * People can find exactly what they need without hunting round shops or phoning around. Traditional Business Practices Many people have an aspiration and have the resources to go out and do traditional shopping Traditional business practises are easy to exploit and cheap to do for example marketing is a lot more easy to exploit as you generally have a idea who you target audience is You can look at your product try it out and even negotiate lowering the price Advantages for e-commerce disadvantages concerning traditional business practices * Larger market and more options for consumers. This creates more market competition, thus driving down prices and forcing better retail practices. * Don't have to leave home and fight traffic†¦delivered to door * In many cases, a larger selection is available. * Consumers are able to research a product and its competitors more thoroughly before purchase and compare many prices from different retailers. * No sales tax. * Open 24 hours a day / seven days a week, which is very beneficial to those who can not find time to go to a store and for those who just want to shop whenever they feel like it. * Do not have to deal with the sales atmosphere. * Friendlier: no rude salespeople who ignore customers * Can find what you are looking for a the touch of a button – sizes, colours, etc Disadvantages for e-commerce advantages concerning traditional business practices * Waiting for a shipment to arrive in the mail * Shipping Charges * Lack of confidence in personal information transfer on-line * Ease of fraudulent retailers and sites. The fluctuation and instability of Internet retailers makes it difficult for new retailers to establish a reputation because many do not survive. Therefore, there is a lack of confidence that exists in trusting Internet retailers. * Lose the traditional shopping experience and the instant gratification that many really enjoy. * Lack of taxes reduces the tax revenues that states and cities might otherwise collect from traditional retailers. * Traditional retail stores are at a disadvantage to Internet retailers due to the lack of Internet sales tax. * Many are still to computer-illiterate to take advantage of this avenue of commerce * KNOWLEDGE OF D.P.A The law is catching up with the online world. The progressive migration of business to the web is forcing reappraisal of intellectual property rights and their protection, and clarifying the meaning of intellectual property in a connected world. Any customer purchasing or using goods or services has certain rights through legislation and regulation of which impact upon their relationship with the organisation selling the products and service. The implication of the customer rights will be different for manufacturers compared for example with a retailer under the trade description 1968 and 1972 any description of goods and services given by a person acting in the trade or business should be accurate and not misleading failure to do so is a criminal offence. The sale of goods act 1979 places obligation on the buyer and seller on products and services. The seller of goods must ensure the goods are they own legal ownership. Products are of merchantable quality. Fit for the person for normal use meets the description and are delivered on time. The customer once agreed to buy a product has entered a contart with the seller and obliged to pay for the price agreed at the timeof contract. If the goods are faulty, the customer has a r ight for a full refund. If the fault is identified to the customer at the time of contract the customer cannot cause a case Customers have no rights if they change their minds about goods or damage goods themselves Manufacturer guarantee may add to customer right under the supplier and seller act 1982 any goods supplied under contract must confirm to terms and conditions under the consumer protect 1987 people injured by faulty or defected goods have the right to sue The Data Protection Act 1998 and the Internet The new Data Protection Act 1998 came into force on 1 March 2000. The Act has received considerable publicity, both because its ambit is wider than its predecessor, the 1984 Data Protection Act is, and because of the greater and more flexible powers given to the Data Protection Commissioner and to individuals to enforce the Act. The Act has significant implications for the Internet and for e-commerce in particular. As the European Commission Working Party on data protection commented: ‘The Internet is not a legal vacuum. Processing of personal data on the Internet has to respect data protection principles just as in the off-line world'. Obtaining consent Under the new Act, it is often necessary or advisable for ‘data controllers' (organisations which obtain, store, or use personal data about an individual) to obtain the individual's consent to these activities. What amounts to consent in cyberspace is a difficult, largely unresolved issue. The more serious the consequences of data processing for the individual, the more careful the organisation must be to ensure that the individual is in possession of any information which he or she requires to give not just consent, but ‘informed' consent. This information should be provided in a way, which is clear, prominent, and easily accessible. If the information is scattered over various disparate website pages, informed consent may not have been given. E-commerce traders must think carefully about whether, in each case, failure to click on an ‘opt-out' box will be sufficient, or whether a specific ‘opt-in' box should be provided. Obtaining consent from minors is a difficult area for e-commerce traders, particularly those retailing goods or services, which are attractive to children and teenagers, such as computer games. The Data Protection Registrar has indicated that, as under-18s cannot generally be bound to a contract under English law, they can also not be deemed to have consented to the processing of their personal data. However, can a third party, even a parent or guardian, consent to processing on behalf of a minor? In addition, how does an organisation know when it is dealing with a minor in cyberspace – no tell-tale handwriting here! The US government has adopted a Children's On-line Privacy Protection Act, which deals with the point expressly, but there is no indication that the UK government intends to address the issues in a similar way. Privacy policies Many companies have adopted a ‘privacy policy' or ‘statement' which is published on their website as a useful way of addressing data protection issues. Privacy policies typically state who the data controller is, what personal data is being collected, and what will happen to it, in particular to whom data may be transferred. A privacy policy may also give information about the right to opt-out of direct marketing; details of any mechanism for individuals to update or amend their personal data; information about the use of ‘cookies' and invisible data capture; and a disclaimer for third-party sites linked to the website. To be effective, it is important that privacy policies are clear, prominent, and easily accessible from relevant pages. If you rely on a privacy policy alone to demonstrate that the subject has consented to precessing, then you should take steps to ensure that they must scroll through the page before providing their data. Invisible data capture Concerns have been raised about the data protection implications of invisible data processing during web browsing. For example, many companies use techniques which gather information about a website visitor, such as their IP address, the type of browser and operating system they use, and previous sites they have visited. This information has been described as a ‘clicktrail' about an individual, recording the pattern of their Internet use. There is some debate as to whether this information, which is largely anonymised, qualifies as personal data. The European Commission Working Group adopted a bullish view in its 1999 Recommendations, regarding IP addresses, for example, as personal data. Website owners wishing to make use of invisible data capture metyhods are advised to bring them within their data protection procedures. Website hosts Often an external host or web manager will oversee the running of the server on which a website is hosted. For the purposes of the Data Protection Act 1998, the commercial entity which ‘owns' the website will normally be the ‘data controller' in relation to personal data obtained via the website, whereas the host will be a ‘data processor' processing data on its behalf. Under the new Act, data controllers are liable for processing undertaken on their behalf by such data processors. The data controller must actively police the data protection procedures of any person processing data on its behalf, and must enter into a written contract with its data processors, requiring them to maintain certainty security measures and to process personal data only in accordance with instructions. Extra-EEA transfer Website proprietors must pay particular attention to the eighth data protection principle, concerning the transfer of personal data outside the European Economic Area. Initially, there was concern that merely sending e-mails, which, for example, may travel from one side of London to the other via the United States, would frequently infringe this principle. However, the Data Protection Commissioner distinguishes in recent guidance between the ‘transfer' and ‘transit' of data, and states that, provided an electronic transfer of data starts and ends in an EEA country, the principle will not be infringed. Conclusion As with many provisions of the new Act, the distinction between ‘transfer' and ‘transit' of information is ambiguous and uncertain. The Data Protection Registrar has said that she appreciates the difficulties in understanding and applying the new Act. To begin with, therefore, she is unlikely to enforce the new provisions to the letter, if data controllers try to comply with the spirit of the Act. However, given that it will ultimately fall to the courts to decide what amounts to compliance, and that individuals may now police processing themselves, those dealing with personal data on the Internet must take the new rules very seriously. Legal Issues Under UK law, consumers have the same rights as in any other forms of trade. The government are also striving to change existing laws to help to clear up any ambiguity in current law to help e-commerce and ultimately consumer protection across the Internet. So, if you are unfamiliar with any of the following laws and regulations, now is the time to find out. * The Data Protection Act 1998 * The Consumer Protection Act 1998 * British Codes of Advertising and Sales Promotion * The Distance Selling Regulations 2000 * The Unfair Contract Act 1977 and 1999 regulations * The sales of Goods Act 1979 * The Consumer Credit Act 1974 * The Trade Descriptions Act 1968 Qualify your intentions In 1999, the government set up a self-regulatory scheme to develop and enhance confidence in UK e-commerce. Its aim was to act as a symbol of good web trading via an agreed â€Å"minimum standard† for online trading. For the small business, this can mean that you are accredited as â€Å"good† online e-service. This organisation is known as TRUSTUK. For any company who has been accredited by TrustUK can display the TrustUK hallmark on their website. For the small business, this gives credibility and can boost consumer confidence greatly. TrustUK have also linked up with other organisations who also offer accreditation for websites adhering to set TrustUK standards, these are known as â€Å"code owners†. If your small business takes many issues similar to the ones discussed, then you should have no problem gaining accreditation. To find out more visit the TrustUK web site The impact of technological innovations on e-commerce The Internets potential for e-commerce The evidence supporting e-commerce growth and potential can be staggering when one considers the accomplishments in this field just over the last few years. The potential impact, and issues surrounding, e-commerce and the practising accountant. E-commerce is seen as a major area of growth over the next few years and virtually every well-known retailer is developing some form of web presence, for example WHSmith has recently launched an online book selling service. In addition, there are a number of high profile web-only retailers such as Amazon.co.uk. The commercial viability of these ventures is yet to be established, although stock market values would have us believe they will be highly profitable. One of the main factors seen by many as holding back the further and faster development of e-commerce, certainly outside the high profile names, is the lack of trust by consumers in the on-line retailer. This covers issues such as the existence of the company, the delivery of goods ordered, the ability to return unsatisfactory goods and perhaps, most importantly, the security of personal information and credit card details. A number of specialist organisations now attempt to provide assurance to consumers, on some or all of the trust issues outlined above. When a business meets the qualifying criteria established by such an organisation, it may display a seal of approval on its website. The consumer is able to click on the seal to obtain further information regarding the meaning of the seal. One such seal is CPA Web Trust (www.cpawebtrust.org). The American Institute of Certified Public Accountants and the Canadian Institute of Chartered Accountants developed this product. The Institutes of Chartered Accountants in the UK and Ireland have obtained a licence to cover these territories. To obtain a Web Trust seal, a business will be subjected to an audit, by an accredited firm, of its business processes and security issues. Where the Web Trust criteria are satisfied a seal (which must be renewed on a quarterly basis) will be issued. ACCA investigated fully the benefits of obtaining a Web Trust licence to enable its firms to offer this service, but the decision was taken that this was not appropriate for a number of reasons: The cost to the professional body of obtaining a licence from AICPA/CICA Research carried out by the European Consortium for Web Assurance and Trust (ECWAT) group (in which ACCA participates) indicates that in business-to-consumer e-commerce, the well-known traditional retailer or web retailer has a large advantage over the unknown retailer, even where the unknown retailer carries a seal. This would indicate that outside much specialised markets the client might need to have a significant profile built through marketing to make e-commerce viable. These clients are unlikely to be common to small practices ECWAT research indicates that consumers would place significantly more reliance on a seal provided/backed by a Consumer Union/Association than by an accountant Carrying out a Web Trust audit requires the firm to obtain a licence, undertake training and have a level of technical expertise that may not exist, now The US experience suggests that Web Trust has not yet taken off as a service despite it having been available for around 18 months. Recently there were 18 organisations on the list of current Web Trust sites – of these, four are professional accounting bodies There are competitors to Web Trust, which potentially will be in a very strong position. For example, Entrust Inc is focusing on the issue of digital certificates to vouch for the authenticity of sites. This is being done in conjunction with the browser technology of Microsoft, AOL and Netscape. These browsers will automatically recognise Entrust.net website certificates when visitors connect to a site The Consumers Association has launched a which? Web Trader seal which is designed to offer assurance to consumers and unlike the Web Trust seal is issued free of charge. Further details can be found at http://www.which.net/webtrader/index.html. Given that ACCA is not able to offer members the Web Trust licence, how should members become involved in e-commerce? It is clear that e-commerce is a growing market, but it is expected that the principal area of growth will not be a consumer buying over the internet (although this market will be substantial) but in the area of business-to-business transactions. The business to business market may not have the same issues relating to trust, as businesses are likely to look to form on-going relationships, and there are already established means of making electronic payments. It is unlikely that businesses will move to payment with order, as is the case with much business to consumer e-commerce. A likely scenario is that important customers will want to be able to order online, check stock availability, prices and delivery times and be confident that the order will be delivered as expected. The accountant could play an important role in advising his/her client on this transformation, by assisting in areas such as integration with existing accounting records and processes, ensuring security and back-up procedures are maintained properly, and generally that efficient and best use is made of information technology. A 1 Cycles is Committed to developing e-commerce and enabling practitioners to participate in this exciting market. Look out for further developments in future issues of In Practice. Electronic Commerce Electronic Commerce – often shortened to E-commerce – is the name given to selling and buying things using the Internet. E-commerce is important because: – * Many people now have Internet connections. Information about goods and services for sale can be put on the World Wide Web. Setting up a company website and doing business through it can be a lot more cost effective than using purely traditional shops. * Companies can have a national or even international customer â€Å"reach† with a website. * People do not leave their homes to shop using E-Commerce. * The costs of delivery of goods are low and many carriers are available. * People can find exactly what they need without hunting round shops or phoning around. Traditional Business Practices Many people have an aspiration and have the resources to go out and do traditional shopping Traditional business practises are easy to exploit and cheap to do for example marketing is a lot more easy to exploit as you generally have a idea who you target audience is You can look at your product try it out and even negotiate lowering the price Advantages for e-commerce disadvantages concerning traditional business practices * Larger market and more options for consumers. This creates more market competition, thus driving down prices and forcing better retail practices. * Don't have to leave home and fight traffic†¦delivered to door * In many cases, a larger selection is available. * Consumers are able to research a product and its competitors more thoroughly before purchase and compare many prices from different retailers. * No sales tax. * Open 24 hours a day / seven days a week, which is very beneficial to those who can not find time to go to a store and for those who just want to shop whenever they feel like it. * Do not have to deal with the sales atmosphere. * Friendlier: no rude salespeople who ignore customers * Can find what you are looking for a the touch of a button – sizes, colours, etc Disadvantages for e-commerce advantages concerning traditional business practices * Waiting for a shipment to arrive in the mail * Shipping Charges * Lack of confidence in personal information transfer on-line * Ease of fraudulent retailers and sites. The fluctuation and instability of Internet retailers makes it difficult for new retailers to establish a reputation because many do not survive. Therefore, there is a lack of confidence that exists in trusting Internet retailers. * Lose the traditional shopping experience and the instant gratification that many really enjoy. * Lack of taxes reduces the tax revenues that states and cities might otherwise collect from traditional retailers. * Traditional retail stores are at a disadvantage to Internet retailers due to the lack of Internet sales tax. * Many are still to computer-illiterate to take advantage of this avenue of commerce * KNOWLEDGE OF D.P.A The law is catching up with the online world. The progressive migration of business to the web is forcing reappraisal of intellectual property rights and their protection, and clarifying the meaning of intellectual property in a connected world. Any customer purchasing or using goods or services has certain rights through legislation and regulation of which impact upon their relationship with the organisation selling the products and service. The implication of the customer rights will be different for manufacturers compared for example with a retailer under the trade description 1968 and 1972 any description of goods and services given by a person acting in the trade or business should be accurate and not misleading failure to do so is a criminal offence. The sale of goods act 1979 places obligation on the buyer and seller on products and services. The seller of goods must ensure the goods are they own legal ownership. Products are of merchantable quality. Fit for the person for normal use meets the description and are delivered on time. The customer once agreed to buy a product has entered a contart with the seller and obliged to pay for the price agreed at the timeof contract. If the goods are faulty, the customer has a r ight for a full refund. If the fault is identified to the customer at the time of contract the customer cannot cause a case Customers have no rights if they change their minds about goods or damage goods themselves Manufacturer guarantee may add to customer right under the supplier and seller act 1982 any goods supplied under contract must confirm to terms and conditions under the consumer protect 1987 people injured by faulty or defected goods have the right to sue The Data Protection Act 1998 and the Internet The new Data Protection Act 1998 came into force on 1 March 2000. The Act has received considerable publicity, both because its ambit is wider than its predecessor, the 1984 Data Protection Act is, and because of the greater and more flexible powers given to the Data Protection Commissioner and to individuals to enforce the Act. The Act has significant implications for the Internet and for e-commerce in particular. As the European Commission Working Party on data protection commented: ‘The Internet is not a legal vacuum. Processing of personal data on the Internet has to respect data protection principles just as in the off-line world'. Obtaining consent Under the new Act, it is often necessary or advisable for ‘data controllers' (organisations which obtain, store, or use personal data about an individual) to obtain the individual's consent to these activities. What amounts to consent in cyberspace is a difficult, largely unresolved issue. The more serious the consequences of data processing for the individual, the more careful the organisation must be to ensure that the individual is in possession of any information which he or she requires to give not just consent, but ‘informed' consent. This information should be provided in a way, which is clear, prominent, and easily accessible. If the information is scattered over various disparate website pages, informed consent may not have been given. E-commerce traders must think carefully about whether, in each case, failure to click on an ‘opt-out' box will be sufficient, or whether a specific ‘opt-in' box should be provided. Obtaining consent from minors is a difficult area for e-commerce traders, particularly those retailing goods or services, which are attractive to children and teenagers, such as computer games. The Data Protection Registrar has indicated that, as under-18s cannot generally be bound to a contract under English law, they can also not be deemed to have consented to the processing of their personal data. However, can a third party, even a parent or guardian, consent to processing on behalf of a minor? In addition, how does an organisation know when it is dealing with a minor in cyberspace – no tell-tale handwriting here! The US government has adopted a Children's On-line Privacy Protection Act, which deals with the point expressly, but there is no indication that the UK government intends to address the issues in a similar way. Privacy policies Many companies have adopted a ‘privacy policy' or ‘statement' which is published on their website as a useful way of addressing data protection issues. Privacy policies typically state who the data controller is, what personal data is being collected, and what will happen to it, in particular to whom data may be transferred. A privacy policy may also give information about the right to opt-out of direct marketing; details of any mechanism for individuals to update or amend their personal data; information about the use of ‘cookies' and invisible data capture; and a disclaimer for third-party sites linked to the website. To be effective, it is important that privacy policies are clear, prominent, and easily accessible from relevant pages. If you rely on a privacy policy alone to demonstrate that the subject has consented to precessing, then you should take steps to ensure that they must scroll through the page before providing their data. Invisible data capture Concerns have been raised about the data protection implications of invisible data processing during web browsing. For example, many companies use techniques which gather information about a website visitor, such as their IP address, the type of browser and operating system they use, and previous sites they have visited. This information has been described as a ‘clicktrail' about an individual, recording the pattern of their Internet use. There is some debate as to whether this information, which is largely anonymised, qualifies as personal data. The European Commission Working Group adopted a bullish view in its 1999 Recommendations, regarding IP addresses, for example, as personal data. Website owners wishing to make use of invisible data capture metyhods are advised to bring them within their data protection procedures. Website hosts Often an external host or web manager will oversee the running of the server on which a website is hosted. For the purposes of the Data Protection Act 1998, the commercial entity which ‘owns' the website will normally be the ‘data controller' in relation to personal data obtained via the website, whereas the host will be a ‘data processor' processing data on its behalf. Under the new Act, data controllers are liable for processing undertaken on their behalf by such data processors. The data controller must actively police the data protection procedures of any person processing data on its behalf, and must enter into a written contract with its data processors, requiring them to maintain certainty security measures and to process personal data only in accordance with instructions. Extra-EEA transfer Website proprietors must pay particular attention to the eighth data protection principle, concerning the transfer of personal data outside the European Economic Area. Initially, there was concern that merely sending e-mails, which, for example, may travel from one side of London to the other via the United States, would frequently infringe this principle. However, the Data Protection Commissioner distinguishes in recent guidance between the ‘transfer' and ‘transit' of data, and states that, provided an electronic transfer of data starts and ends in an EEA country, the principle will not be infringed. Conclusion As with many provisions of the new Act, the distinction between ‘transfer' and ‘transit' of information is ambiguous and uncertain. The Data Protection Registrar has said that she appreciates the difficulties in understanding and applying the new Act. To begin with, therefore, she is unlikely to enforce the new provisions to the letter, if data controllers try to comply with the spirit of the Act. However, given that it will ultimately fall to the courts to decide what amounts to compliance, and that individuals may now police processing themselves, those dealing with personal data on the Internet must take the new rules very seriously. Legal Issues Under UK law, consumers have the same rights as in any other forms of trade. The government are also striving to change existing laws to help to clear up any ambiguity in current law to help e-commerce and ultimately consumer protection across the Internet. So, if you are unfamiliar with any of the following laws and regulations, now is the time to find out. * The Data Protection Act 1998 * The Consumer Protection Act 1998 * British Codes of Advertising and Sales Promotion * The Distance Selling Regulations 2000 * The Unfair Contract Act 1977 and 1999 regulations * The sales of Goods Act 1979 * The Consumer Credit Act 1974 * The Trade Descriptions Act 1968 Qualify your intentions In 1999, the government set up a self-regulatory scheme to develop and enhance confidence in UK e-commerce. Its aim was to act as a symbol of good web trading via an agreed â€Å"minimum standard† for online trading. For the small business, this can mean that you are accredited as â€Å"good† online e-service. This organisation is known as TRUSTUK. For any company who has been accredited by TrustUK can display the TrustUK hallmark on their website. For the small business, this gives credibility and can boost consumer confidence greatly. TrustUK have also linked up with other organisations who also offer accreditation for websites adhering to set TrustUK standards, these are known as â€Å"code owners†. If your small business takes many issues similar to the ones discussed, then you should have no problem gaining accreditation. To find out more visit the TrustUK web site The impact of technological innovations on e-commerce The Internets potential for e-commerce The evidence supporting e-commerce growth and potential can be staggering when one considers the accomplishments in this field just over the last few years. The potential impact, and issues surrounding, e-commerce and the practising accountant. E-commerce is seen as a major area of growth over the next few years and virtually every well-known retailer is developing some form of web presence, for example WHSmith has recently launched an online book selling service. In addition, there are a number of high profile web-only retailers such as Amazon.co.uk. The commercial viability of these ventures is yet to be established, although stock market values would have us believe they will be highly profitable. One of the main factors seen by many as holding back the further and faster development of e-commerce, certainly outside the high profile names, is the lack of trust by consumers in the on-line retailer. This covers issues such as the existence of the company, the delivery of goods ordered, the ability to return unsatisfactory goods and perhaps, most importantly, the security of personal information and credit card details. A number of specialist organisations now attempt to provide assurance to consumers, on some or all of the trust issues outlined above. When a business meets the qualifying criteria established by such an organisation, it may display a seal of approval on its website. The consumer is able to click on the seal to obtain further information regarding the meaning of the seal. One such seal is CPA Web Trust (www.cpawebtrust.org). The American Institute of Certified Public Accountants and the Canadian Institute of Chartered Accountants developed this product. The Institutes of Chartered Accountants in the UK and Ireland have obtained a licence to cover these territories. To obtain a Web Trust seal, a business will be subjected to an audit, by an accredited firm, of its business processes and security issues. Where the Web Trust criteria are satisfied a seal (which must be renewed on a quarterly basis) will be issued. ACCA investigated fully the benefits of obtaining a Web Trust licence to enable its firms to offer this service, but the decision was taken that this was not appropriate for a number of reasons: The cost to the professional body of obtaining a licence from AICPA/CICA Research carried out by the European Consortium for Web Assurance and Trust (ECWAT) group (in which ACCA participates) indicates that in business-to-consumer e-commerce, the well-known traditional retailer or web retailer has a large advantage over the unknown retailer, even where the unknown retailer carries a seal. This would indicate that outside much specialised markets the client might need to have a significant profile built through marketing to make e-commerce viable. These clients are unlikely to be common to small practices ECWAT research indicates that consumers would place significantly more reliance on a seal provided/backed by a Consumer Union/Association than by an accountant Carrying out a Web Trust audit requires the firm to obtain a licence, undertake training and have a level of technical expertise that may not exist, now The US experience suggests that Web Trust has not yet taken off as a service despite it having been available for around 18 months. Recently there were 18 organisations on the list of current Web Trust sites – of these, four are professional accounting bodies There are competitors to Web Trust, which potentially will be in a very strong position. For example, Entrust Inc is focusing on the issue of digital certificates to vouch for the authenticity of sites. This is being done in conjunction with the browser technology of Microsoft, AOL and Netscape. These browsers will automatically recognise Entrust.net website certificates when visitors connect to a site The Consumers Association has launched a which? Web Trader seal which is designed to offer assurance to consumers and unlike the Web Trust seal is issued free of charge. Further details can be found at http://www.which.net/webtrader/index.html. Given that ACCA is not able to offer members the Web Trust licence, how should members become involved in e-commerce? It is clear that e-commerce is a growing market, but it is expected that the principal area of growth will not be a consumer buying over the internet (although this market will be substantial) but in the area of business-to-business transactions. The business to business market may not have the same issues relating to trust, as businesses are likely to look to form on-going relationships, and there are already established means of making electronic payments. It is unlikely that businesses will move to payment with order, as is the case with much business to consumer e-commerce. A likely scenario is that important customers will want to be able to order online, check stock availability, prices and delivery times and be confident that the order will be delivered as expected. The accountant could play an important role in advising his/her client on this transformation, by assisting in areas such as integration with existing accounting records and processes, ensuring security and back-up procedures are maintained properly, and generally that efficient and best use is made of information technology. A 1 Cycles is Committed to developing e-commerce and enabling practitioners to participate in this exciting market. Look out for further developments in future issues of In Practice.

Determination of Dissolved Oxygen in a Water Sample Essay

To find out the oxygen content of a water sample by adding MnSO4 and alkaline KI into the solution. Mn2+ was oxidized into Mn3+. Then Mn3+ was reduced back into Mn2+ and I- was oxidized to I2. The solution was titrated against sodium thiosulphate solution and the oxygen content could be calculated. Result Trial 1 Trial 2 Final burette reading (cm3) 19.26 38.42 19.82 38.35 Initial burette reading (cm3 0.10 19.50 0.74 19.82 Volume of Na2S2O3 added (cm3) 19.16 18.92 19.08 18.53 Data being used for calculation Calculation No of moles of Na2S2O3 used = 2S2O32- + I2 –> S4O62- + 2I- No. of moles of I2 in 100 cm3 solution = = 1.1825 2Mn(OH)3 + 2I- + 6H+ –>I2 + 2Mn2+ + 6H2O No. of moles of Mn(OH)3 in 100 cm3 solution = 1.1825 X 2 = 2.365 4 Mn(OH)2 + O2 + 2 H2O 4 Mn(OH)3 No. of moles of O2 in 100 cm3 solution = 2.365 Oxygen content = 18.92 mg dm-3 Discussion Reason of filling the whole volumetric flask During the experiment, the water sample was allowed to fill with the whole volumetric flask, this is because we have to prevent oxygen from dissolving from the air into the water sample. Reason of using a magnetic stirrer When conducting the experiment, insoluble manganese (III) hydroxide was formed. It would dissolve in potassium iodide so we have to use a magnetic stirrer to speed up the reaction process. As a magnetic stirrer could stir the solution without spilling, it is very good to be used in this situation. Source of error As the manganese (II) sulphate and potassium iodide solution was added into the flask with over flowing. There will be loss of solution in this process. The chemicals added might be not enough and it will affect the experiment result. We cannot avoid oxygen in air from dissolving into the solution as the mouth of volumetric flask could still allow oxygen to diffuse in. Only one set of data could be used beside trials.

Human Development Paper Essay

The life span perspective of human development is made up of different theories of how a human develops from birth to death. Though there are many theories to show this there are only three that best explain human growth and development through the human life span. They are Psychoanalytic Theory, Social Learning Theory, and Cognitive theory. Psychoanalytic theory was originally develop by Sigmund Freud, who theorized that development occurred in five stages. The stages were characterized by sexual pleasure on a particular part of the body during each stage. The stages consisted of oral, anal, phallic, latency, and genital stage. The oral stages was thought to happen between birt-1year which consist of sensual pleasures of the lips, tongue, and gums, where baby are stimulated when feeding. The anal stage is thought to take place during 1-3 years. This consisted of sensual pleasure from the anus where babies are toilet trained. The phallic stage happens between years three trough six in which the sensual pleasure is the penis and girls wonder why they don’t have one. Latency is from six to eleven years in which it’s not considered a stage really but sexual need and desires have not quit formed so the child focuses on school and other things. Genital stage is thought to start in adolescents and carry on through the adulthood life. In this stage the child seeks out sexual pleasure and satisfaction. There are many environmental factors can effect theses stages of development. If the child lives in a third world country they may not have access to food and provisions as easily as other countries children do. This can affect how the child will trust others and whether or not the child will remain in a mode of survival instinct. The second theory is Social Learning Theory which was formed by Albert  Bandura. Albert Bandura theorized that humans learn by observe other people. This theory suggest that we model ourselves after the people we observe. Though perception of what is witnessed can be interpreted differently. Environment factors such as an abusive home environment could effect on how a child deals with aggression if a child witnesses a father hitting their mother they might in turn see themselves as their father and show more aggression towards others, or be very passive aggressive like the mother. As said earlier each child has their own interpretation of what they observe. The most famous theorist for Cognitive theory was Jean Piaget. The theory was believed that thought shaped are attitude, beliefs, and behaviors. James Piaget formed four stages which describe how human development occurs and changes with thought. The four stages are Sensorimotor, Preoperational, Concrete Operational, and Formal operational. Sensorimotor takes place between birth and 2 years of age. In this stage the child develops their motor abilities and senses to better understand the world around them. The preoperational stage takes place between the ages of two and six years of age. During this stage the child thinks magically or egocentric causing the child to view the world from their own perspective. The concrete operational stage take place between the ages of six to eleven years of age. During this stage children apply logical operations to interpret their experiences. Their thinking is limited to what they can see, hear, feel and experience. Formal operational takes place from 12 years through adulthood. During this stage the adolescents and adults think about abstracts and hypothesis. During the different stages environmental effects can vary for instance a vacuum could be a dragon to a child in the preoperational stage. In conclusion the three stages that influence the life span of Human growth and development are Psychoanalytic Theory, Social Learning Theory, and Cognitive theory. Each one shows different views on how human development can take place. Each one has unique environmental aspects that can affect the growth and development of a human. Through these theories one can look back through someone’s development and understand what was effective in helping healthy development and what was ineffective or should be avoided to prevent unhealthy development.

Financial Management Problems and case #6 Essay

Financial Management Problems and case #6 - Essay Example Reporting a large loss and/or increasing dividend payout would have a negative effect on cash and profitability. Problem 9: MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shares outstanding in the amount of 10,500,000; the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the share price. Problem 10: Cash Flow - Based on the information provided regarding Bailey Corporation's Income Statement: (a) The net operating profit after taxes is $3B [NOPAT=EBIT(1-Tax rate)=$4B(1-$1B)]. (b) The net cash flow is $4.5B [NCF=NI+D&A=$1.5B+$3B]. (c) The operating cash flow is $6B [OCF=EBIT(1-Tax rate)+D&A=$3B+$3B]. (d) The free cash flow is $2.7B [FCF=OCF-IOC=$6B-$3.3B]. Problem 11: Income Statement - Based on the information provided regarding Hermann Industries' Income Statement forecasts, the forecasted net income would be achieved by a sales figure of $ 12,681,481.47: Sales $12,681,481.47 Operating Costs (55% of Sales) ($ 6,974,814.81) EBITDA $ 5,706,666.66 Depreciation & Amortization ($ 880,000.00) EBIT $ 4,826,666.66 Interest ($ 660,000.00) EBT $ 4,166,666.66 Taxes (40%) ($ 1,666,666.66) Net Income $ 2,500,000.00 EMBA 503, Financial Management Case Six YOUR FULL NAME YOUR INSTITUION OR SCHOOL PROFESSOR DATE Lottery Winnings: Case Study Six 1. If you were one of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never... Problem 9: MVA - Henderson Industries, with a stock price of $60, $500MM of issued common stock, and an MVA of $130MM has shares outstanding in the amount of 10,500,000; the result of the sum of the book value ($500MM) and the market value added ($130MM) divided by the share price. Problem 11: Income Statement - Based on the information provided regarding Hermann Industries' Income Statement forecasts, the forecasted net income would be achieved by a sales figure of $ 12,681,481.47: 1. If you were one of the winners, which option would you select Why I would choose the cash option. I would do this primarily because I could invest the money safely and obtain a return that, although less than the annuity payment, would still give me more money than I need each year and would never diminish the principal. Also, if I did not spend all of the money gained from the investment, the compound interest would increase my portfolio significantly. Finally, my tax burden would be less over the long term because capital gains from the investments are taxed at a lower rate in the U.S. than regular income. 3. Is the State of Michigan justified in advertising the prize amount as $363 million Explain.

Sexual harassment in working place Research Paper

Sexual harassment in working place - Research Paper Example Behavior of a perpetrator is still unwelcome even if it is intended in good spirit. Regardless of the behavior of the perpetrator, it is the feeling of the victim about the behavior that becomes relevant. The victim does not have to express her/his displeasure to the perpetrator. It is sufficient if the victim does not reciprocate by returning the behavior, not laughing at the jokes or show resentment, turn away or begin avoiding the offender. It is the body language of the victim that matters. Even if there is no expression, behavior is unwelcome to satisfy the test. Thus, the 'A' element is entirely subjective on the part of the complainant. Though the complainant may appear to be very sensitive, one should not substitute one’s judgment for the victim’s judgment. It should be only examined whether the victim genuinely felt the perpetrator’s behavior as unwelcome. The complainant might have encountered similar behavior from others but singled out a particular pe rson s behavior as unacceptable or unwelcome. In legal sense, it is certainly perfect to disapprove of certain conduct of certain people. A woman ‘s complaint can be valid if she finds a new colleague’s dirty joke offensive though she might have told the same joke to another colleague she knows for a long time. In quid pro quo complaints, the complainant might have made the behavior welcome and later claim that such relationship was not resisted in order not to lose her/his job. Employers must take care to keep a confidential note of the time and date and admissions of the two opposite sexes’ relationship with each other so that it can be handy if either party turns hostile later. The management is liable for its supervisor’s sexual harassment of a subordinate even if the management has condoned the supervisor’s sexual harassment and has a written policy to that effect. In California, an employer can avoid liability if the complainant could have avo ided such situations without undue risk, expense or humiliation. Under federal law, employers may claim affirmative defense in case of supervisors engaging in sexual harassment without favoring the victim. It is an absolute defense available to employers under federal law but there should be available the elements of avoidable consequence doctrine. They are 1) the employer has already taken steps to prevent and correct sexual harassment at workplace. 2) the employee without reason failed to make use of the preventive and corrective measures. 3) The measures would have prevented the harm had the complainant made reasonable use of them (Whittenbury). USA Title VII of the Civil Rights Act 1964 prohibits sexual discrimination that includes sexual harassment among other forms of discrimination based on race, color, religion, sex, pregnancy and national origin at workplace or work-related matters. All private establishments, state and local governments and educational institutions employi ng fifteen or more individuals for twenty or more weeks per year come under the purview of this Act. The others include private and public employment agencies, labor organizations, joint labor-management committees, U.S. companies outside the U.S. employing U.S. citizens (Bell). Civil Rights Act of 1964 is a federal law. In California, there is a state level act namely Fair Employment and Housing Act that primarily prohibits sexual harassmen

Sampling and Continuous Improvement Essay Example | Topics and Well Written Essays - 1000 words

Sampling and Continuous Improvement - Essay Example United States have always been in the forefront of international trade and manufacturing and it wants to keep it that way. Since China started its mass export of goods, US had been worried that it would capture a major chunk of world's exports however US found solace in the fact that Chinese products were of lower quality. However with changing times, China has started to develop low cost and yet high quality products to challenge US in the international market. The study conducted by Industry Week magazine on the comparison of Chinese and American manufacturers have identified important developments in the inputs that largely contribute to China's inevitable success. The article "Manufacturers Like Us" by David Drickhamer gives us important insights in this subject. According to the article, Chinese manufacturers have become increasingly competitive over the past decade. Their strict management practices and performance metrics show the proof of such changes. Also US makes china's industry revolution much more prominent by referring to them as Enemy Number 1. The two basic reasons for the increasing competitive advantage of Chinese manufacturers have been described as cheap labor and much more efficient machinery. Costs of raw materials and land utilization have also been declared as important inputs to the higher quality outputs that are now being produced. To fully analyze the factors of high quality production by Chinese manufacturers, let's analyze each input factor in detail. 1) Raw Materials Raw Materials are the building blocks of the manufacturing process. These unprocessed materials are bought from the market and transformed into outputs by applying different processes. Since it is expected that the prices of the raw materials will rise in the future, some manufacturers start hoarding these raw materials. This storage is referred to as the inventory and it is kept to meet unexpected shortages in the future. The Chinese manufacturers store large amounts of inventory hence their inventory turnover rates are lower for all types of products. As most managers said that they had four or fewer total inventory turns in a year, there costs are lower since ordering and purchasing costs are not encountered regularly. Rise is raw material costs have not been met by half of the manufactures in China. And those who reported increases, 20% did not charge the customers for the increase. Because of lower raises in cost of raw material, Chinese products are of lower prices and they can maintain the quality of the products without increasing the prices. 2) Labor China has been able to maintain its low cost products primarily because of very low labor rates. According to the article, the Chinese manufacturers pay average wages of $1,450 per year, which is less than three weeks' pay in the U.S. This is how China is able to compete with any country on its cost difference. The quality of the products made by the Chinese seems to be increasing because of better skilled and better trained employees than were available in the past. The Chinese managers provide over 20 hours of training per employee per year while they spend 5% of their annual labor budget on training. The costs may

Grammar teaching analysis in rural China Essay Example | Topics and Well Written Essays - 2000 words

Grammar teaching analysis in rural China - Essay Example n 2002), and China following a history of more traditional teaching based on the grammar-translation method (GTM) started reforms within their middle and high schools and universities in the early 1990s by introducing CLT. The question is whether or not the introduction of CLT into the Chinese education system by the government has been successful in terms of teachers actually using such an approach for the teaching of grammar and whether they have the knowledge and ability to do so appropriately. Prior to the 1970s, the goals of teaching English was to impart correct, error free language; emphasis was placed more on form than on use, thus the Grammar Translation Method was very popular. As the name implies, focus was on the rules and structures of the language, used to translate from the mother tongue to the target language, and the oral/aural skills of listening and speaking were ignored in favour of reading and writing. Except for the period of the Cultural Revolution Chinese governments have been committed to the teaching of foreign languages and although Russian was popular for a while, English has been regarded by the new communist regime as significant to modernization (Ji Fengyuan 2004). The teaching of English has always been teacher, textbook and exam focused and so the GTM has been the ruling approach to the teaching of English, with students taking a passive role in the learning process. In traditional classrooms therefore, language learning is reduced to mastery of the grammar and lexicon, and students attain more knowledge of the language in terms of perfect grammatical structures reproduced in grammatical exercises and exams, than their ability to use it in real life. Led by British linguists such as Halliday and Firth and in reaction to GTM, CLT was advocated as the new method in language teaching, addressing the need to acquire communicative competence with natural exposure not teaching, to all four skill areas of reading, writing, listening

Problems and Risks Exposed to the Boiler Operators Assignment

Problems and Risks Exposed to the Boiler Operators - Assignment Example The people that are mostly subjected to these risks are the physical laborers employed as boiler operators and the study is based in Brazilian industries where the use of boilers is most common than in any other nation. The operators of the boilers are exposed to a number of health risks and problems that include: pains of different intensity in the body, muscle fatigue and diseases resulting from the heavy weight and exposure to heat. Moreover, the utilizing of the boiler implies various types of accidents such as burns, injuries, fires, and explosions; additionally, there is the increase of heart rate of the operator exposed to the excessive heat which occurs due to heat exchanges between the body and the environment leading to blood in the heart. A number of factors and parameters that are considered in the article; basically, the key aspects put first in this situation included the main risks of activities in the boiler which circled around the burns, pains and other injuries, factors that lead to the increased heart rate and how they can be eliminated, influence of thermal overload in the human body, and the physical workload where the boiler operators are forced to lift heavy loads due to the lack of proper mechanization which also has adverse effects that deteriorate the health especially when one puts into consideration that this takes place in a working condition that has excessive heat. Generally, the different factors were evaluated in a boiler where a thorough study was conducted; furthermore, there were a number of instruments that were used in the study i.e. a heart rate monitor, a digital chronometer, a wet-bulb globe thermometer (WBGT), a tape measure and a digital infrared camera.  

Electronic Commerce Undefined Essay Example | Topics and Well Written Essays - 1000 words

Electronic Commerce Undefined - Essay Example That is, for a contract to exist there should be an offer made by the offeror and this should be accepted by the offeree and this amounts to an acceptance. This acceptance must be communicated to the offeror and a contract might be concluded when the offeree receives the acceptance. Once again, it should be noted that these transactions are conducted through an electronic portal and are facilitated through the use of emails. This is called the receipt rule and is the general rule. Because of the different and new nature of e-commerce, the described rule above is not applicable to traditional contracts created and facilitated through the post. Traditionally, for these types of contracts the postal rule applies. As opposed to the general law practice in the e-commerce world, the postal rule provides that an acceptance is active and a contract is concluded from the moment the offeree drops the acceptance in the letter box. This is applied even if the acceptance letter is delayed or failed to reach the other party. The postal rule is held to apply only to acceptances in the case of Adams v Lindsell (book). Even if some rules are already practiced in the e-commerce, there are still disputes which tackle the applicability of the receipt rule and the possible usage of the postal rule. Considering the almost similar nature of posts and emails, there have been suggestions and arguments supporting the usage of the postal rule to internet transactions. In line with this, this essay aims to give an analysis on the applicability of postal rule to e-commerce. In so doing, the essay will limit itself to consider the issue of whether the postal rule should extend to contracts created by electronic communications. To give light to the situation, it is extremely necessary to explore the rationale behind the creation of the postal rule. In contract law, as mentioned above, the general rule is that acceptance must be communicated to the offeror in order to conclude a contract. This has been illustrated by Lord Denning in the case of Entores Ltd v Miles Far East Corp: "Suppose, for instance, that I shout an offer to a man across a river ... but I do not hear his reply because it is drowned by an aircraft flying overhead. There is no contract at that moment. If he wishes to make a contract, he must wait until the aircraft is gone and then shout back his acceptance so that I can hear what he says." However, the exception to this rule emerged in 1918 with the creation of the postal rule. It should be noted that back in those days, the main method of communication is the post. This method is extremely slow and delays were very common. One of the main reasons for the existence of the rule is to ensure certainty in contract formation. One might argue that if the postal service did not carry much importance in those days then the creation of the postal rule would have been insignificant. Since delay is a common feature of the postal service, this meant that if the receipt rule applied, the offeree would not know if his acceptance is received, i.e. whether a binding contract is created. One alternative to the postal rule might

The Pros and Cons of Centralised and Hybrid Structures Essay

The Pros and Cons of Centralised and Hybrid Structures - Essay Example These developments aim not just to improve the HR system but to re-design it, such that it becomes characteristically responsive to the corporate needs and goals. Supporting a new business model, the HR department is tasked to restructure its function to primarily control costs while at the same time meeting the objectives of increasing talent management accountability, distributing HR talent and support as well as optimising customised and strategic support (University of Wolverhampton Business School (UWBS), 2011). Thus, in evaluating the proposed structures, the main parameters to be used are these four. In lieu of these challenges, current senior vice president of HR, Cindy Hartley, presented two options: the centralised and hybrid structures. Each structure covers the four main parameters at differing levels. These levels will be the basis of solving Sonoco’s HR structure dilemma.Diagnosis The packaging industry started its co-existence with the advent of commercialisation across the wide physical barriers of civilisation. Since then, it has played its valuable role in the industrial and commercial supply chains, primarily ensuring the protection of goods during its transport up to prolonging its shelf life (Industrial Council for Packaging and the Environment (INCPEN), 2011; Advisory Committee on Packaging, 2008). As the packaging design evolves, so is its function. Packaging has extended its role to advertising and carried the â€Å"role of a silent salesman† (Cage, 1991, p.3). Indeed, with its brand names and product information, introducing a new product in a vast market has become less burdensome. This industry’s boom has led to further government interventions via regulators (Hisrch, 1991). These interventions are necessary to counter any economic defect as well as health and environmental issues. The most characteristic feature ever benchmarked by the packaging industry is its technological innovations. INCPEN (1995) proffered competition as the key to the proliferation of innovation among the packaging companies. Amongst the most evident innovation is lightweighting, which substantially decreased the weight of the packaging material yet still contained the same volume of product (INCPEN, 2003). This innovation had been the best counter of the industry against resource issues on over packing (Cottica, 1994). Another technology involved in heightening the â€Å"performance of the package system† was active packaging, which was inclusive of â€Å"subsidiary constituents† (Robertson, 2006 cited in Kerry & Butler, 2008, p.1). Innovations were not just

Strong vs Weak Matrix Structure Essay Example | Topics and Well Written Essays - 1500 words

Strong vs Weak Matrix Structure - Essay Example The study indicates that weak matrix organizations are no less than a nightmare for project managers. This is true because although, they have the authority and power to make plans, divide the project strategy and even closely monitor the execution as well, project managers do not have any real authority over the project team members, most of whom remain reliant on their functional managers for provision and use of resources. Therefore, in these organizations, technically the project managers do not remain â€Å"managers† in the truest sense but their role is reduced to that of project â€Å"facilitators†. Project managers within a weak matrix organization often fail to motivate their employees to the utmost degree because of the fact that they have little loyalty to the project managers and little motivation to work on the project. They are well aware of the fact that they the chain of command indicates that they report to their functional managers who decide their pro motions, achievements and write their annual reviews. Project managers might have to report and discuss the issue of non-performing employees with the functional managers and then hope that the functional managers will help. Some project managers, despite all difficulties, successfully complete their projects in weak matrix organizations but it becomes nearly impossible to attain any kind of success for the project manager when the functional managers decide to obstruct the work and oppose the approaches of project managers. In this case, they might not allow project managers to use resources and prevent their employees from working with full productivity on projects, thus making the life of the project managers miserable. Figure 1 Weak Matrix Structure with project team members scattered in many functional departments and working under primary authority of their respective functional managers Strong matrix organizations provide a better framework and structure for project managers to operate. In fact, it appears that strong matrix organizations emerged on to the scene primarily in order to satisfy the needs of project managers. Rather than leaving the project managers at the mercy of different functional managers, the organization empowers the project managers so that they could exercise their authority over budgets, resources, expenses and even employee appraisals (Lewis, p. 106). Employees are more likely to report to two bosses at the same time, one their functional managers and the second their project manager but they see the incentive in being equally loyal to both of them. Project managers remain concerned with the project related issues of the employees whereas all the human resource and operational issues and responsibilities remain with the functional managers who overlook them. In these types of organizations, there is even a different department of project managers, which reports to a head project manager holding tremendous authority within the au thority (Daft & Willmott, p. 36). In strong matrix organisations, project managers would usually draw up plans about the projects and then contact the functional managers about their needs and demands in terms of employees. Important here to note is that when functional managers and project manager negotiate, it is highly likely that project manager would have an upper hand (Cameron & Quinn, p. 309). A potential pitfall in these types of organizations is that with extreme power of project managers, functional managers might find it troublesome to perform the necessary functions for keeping the organization afloat and running. Furthermore, a great deal of training is required to ensure that employees do not confuse the dual chain of command where they have to report to two bosses and maintain between their functional and project duties. In addition, constantly and quickly changing projects and new team members may also

CCOT Analysis Essay Example for Free

CCOT Analysis Essay The Indian Ocean was a significant division of water that was bounded primarily by the Indian Subcontinent, the Arabian Peninsula, and eastern Africa. Many changes occurred over time in the area, especially from 500 BCE and 1400 CE. The interaction of Buddhism and Confucianism altered, increased wealth came to new towns and ports, and population increased due to advancements in technology. Though there were many changes, many things stayed constant in the region. The Indian Ocean region continued to keep many economic/religious factors the same, such that Islamic world continued to spread and exotic goods remained as the basis of trade. Buddhism and Confucianism were the main religious views in the Indian Ocean region. They both flourished initially keeping a stable ratio, but Buddhism began to diminish during the Tang Dynasty. The Tang Dynasty based their civil service exams on Confucianism, which as a result led to more focus on Confucianism and later to the downfall of Buddhism. Interactions between developing trade routes led to city popularity, wealth and success. Such cities include, Cairo, Quilon, and Melaka, which became major factors in Afro-Eurasian trade. Technology in the region also led to many different changes in the Indian Ocean region. The three-field crop rotation rapidly changed the rise of cities. Since they were now able to grow dissimilar crops in the same area, more food and trade products came about. As urbanization increased, simultaneously, rural areas increased system also played a big role. As cities grew, they began to prosper. Agriculture boomed and therefore more opportunities for merchants were available as trade was excellent in the area. Many significant transitions and alterations occurred in the Indian Ocean region, which encouraged, primarily, economics, religion, and city success. Coming from the changes that occurred, many things also did remain the same in the Indian Ocean region. Islam continued to spread throughout the division. Trade relations have existed between Arabia and the Indian subcontinent, which linked the Indian Subcontinent to the Islamic world. On top of Islam’s prosperous spreading, Indian trade was still and is still based on exotic goods. A good example of this could be how gold, slaves, silk, and spices were traded at around 150 CE, as well as 700-1000 CE. These constants were significant for the foundation of the regions trade, and the rise of a new religion. The Indian Ocean region had many changes and continuities that all occurred over time. Some changes were made including the rise of cities and trade, and the fall of Buddhism. The continuities include the constant spread of the Islamic world, and the same basis of trade; exotic goods. These factors all shaped the region building a stronger base of advancement demographically, culturally, and economically.

Nora And Torvalds Relationship English Literature Essay

Nora And Torvalds Relationship English Literature Essay A Dolls House is a play written by the dramatist Henrik Ibsen in three acts. Throughout the play, his effective use of minor characters such as Dr. Rank, his illness, death and relationship with the main protagonist, Nora Helmer serves a symbolic purpose towards Nora and her husbands relationship. The play is set in the 19th century which makes it out to be controversial and critical of the marriage norms of the time due to the way Ibsen portrays certain characters values and morals. Ibsen critiques the cultural norms through the play and its characters by asking more questions than answering them. As A Dolls House progresses, problems associated with obligations, values and gender roles which took place in a typical upper-middle class society of the time arise. At a first glance, Torvalds best friend, Dr. Rank comes across as one of the minor characters in the play who shows to be unconcerned with what others think of him. What shows significance in Dr. Ranks character is when he is noted for his calm and stoic acceptance towards his ill-fate, of how he is incurably diseased and is dying. This characteristic of Dr. Rank also shows to be in contrast to most of the other characters in the play such as Nora and Trovald. He also is portrayed as honest and sincere. Dr. Rank comes across as an extraneous character in as he does not further into the plot as much as Nil Krogstad and Mrs. Linde. However, he may be portrayed as a symbolic figure for many messages that Ibsen wished to illustrate throughout A Dolls House regarding the social and cultural expectations of the 19th century. Firstly, Ranks character may symbolize moral corruption within society. On the other hand, because of the many sincere and humble aspects of his character, that view upon him is highly debatable. Furthermore, although Ibsens use of Rank does not meddle with the main conflict or climax, this minor character plays a role which is also symbolic towards Nora and Torvalds marriage, which is the main aspect and focus of A Dolls House. Moreover, Ibsens use of the name Rank may be a clever technique which creates irony as his name creates contradiction towards the way his character is shown in the play as none of the other characters consider him of high thought. Dr. Ranks presence in the play also creates a contrast between the way Trovald and himself treat Nora through the way he acts towards her. Dr. Rank first appears during Nora and Mrs. Lindes conversation and there is an obvious contrast between the way he treats Nora and the way Torvald treats Nora. Ranks treatment of Nora is that of an adult, whilst Torvalds is of a child. Further into the play, it can be seen how Nora feels comfortable in Ranks presence and shares insight on personal details about herself that she would think twice before sharing with Torvald. At one point in the play, she admits to Dr. Rank: Torvald is very like being with papa. (196), which shows how Nora is completely herself around Ranks company-and how Rank treats her with dignity, something that lacks in Torvalds treatment of her. This quote also contributes to the theme of honour as she does not wish to further dishonour Torvald any more than she already has, as honour is of overwhelming importance to Torvald and it is what motivates his behaviour towards Nora in the first place. Therefore, Nora does not feel comfortable enough to share the same thoughts with her husband that she is able to share with Rank. Nora also states at one point, In the early days [Torvald] used to get quite jealous if I even mentioned people Id like back at home, so of course I gave it up. But I often talk to Dr. Rank, because, you see, he likes to hear about them (184) this shows how Dr. Rank and Noras very friendly relationship with one another also allows further understanding of Nora and Torvalds marriage as it shows the distance that lies between them. Rank is also able to help Nora in understanding her self-worth, which contributes to the theme of growth and development of her as a character as he indirectly influences her future decisions on whether or not being with Torvald is the right decision to make albeit the social pressures and expectations of society she is a part of at the time. Another significant aspect of Ranks character is he is important in revealing things about other characters as the story progresses. At one point in the play, he tells Nora, Helmers too sensitive to be able to face anything ugly-I wont have him in my sick-room (191). This shows how Rank does not trust Torvald to be there, but he trusts Nora. This also shows how Rank is well aware of how Torvald reacts to certain unfortunate situations, and it shows a paradoxical shift in the role that Nora had been portrayed in with how Torvald is being portrayed at this point in the play, because Torvald is the one who is being portrayed as a child-like character. Statements like this made by Rank about Torvald also shows how Torvald may have been the sheltered one in his marriage from Nora, which contributes to the theme of deception. Dr. Ranks progressive illness may also plays of a symbolic purpose to interpret Nora and Torvalds relationship as ceasing. At the same time, Nora faces conflict with herself and in her marriage with Torvald as she is restricted from being herself. Rank tells Nora, I shall send you my card with a black cross on it and then youll know that my disgusting end has begun, (191) which shows foreshadowing towards not only the end of Dr. Ranks life, but also towards the end of Nora and Torvalds marriage. Although Dr. Rank may be portrayed as a minor character in A Dolls House, his role as his character is crucial in terms of understanding the plot. This is because the functions that Dr. Rank performs as a character allows the play to progress and develop whilst including connections with him and other factors which allow the readers a fair view on the personalities of the characters, specifically Nora and Torvald. The most significant function of Dr. Rank in the play is when he influences Nora to evolve and grow by breaking down the pressures of society that Nora is conflicted against-this is linked to one of the main themes of A Dolls House, which is growth. Dr. Rank is not only a symbolic figure for Nora and Torvalds ceasing relationship, but his illness also symbolises the corruption of society. Towards the end of the play, when he sends the letter to Nora and Torvald, it is received at the same time as Krogstads letter. This is a clever technique used by Ibsen as it shows a connection between Dr. Ranks death and Noras ceasing relationship with Torvald, because right after the letters from Dr. Rank have been read, she lets Torvald read the letter from Krogstad which foreshadows the end of their marriage. This wraps up the entire play well as Dr. Ranks death is not only symbolic for the deterioration of society, but Ibsen uses him as a strong symbolic representation for the death of Nora and Torvalds marriage. PART 1 WRITTEN ASSIGNMENT LANGUAGE A-LITERATURE HL A: Fulfilling the requirements of the reflective statement. To what extent does the student show how their understanding of cultural and contextual elements was developed through the interactive oral? NOTE: The word limit for the reflective statement is 300-400 words. If the word limit is exceeded, 1 mark will be deducted. B: Knowledge and understanding How effectively has the student used the topic and the essay to show knowledge and understanding of the chosen work? C: Appreciation of the writers choices- To what extent does the student appreciate how the writers choices of language, structure, technique and style shape meaning? D: Organization and development How effectively have the ideas been organized, and how well are the references to the works integrated into the development of the ideas? NOTE: The word limit for the essay 1200-1500 words. If the word limit is exceeded, 2 marks will be deducted. E: Language How clear, varied and accurate is the language? How appropriate is the choice of register, style and terminology? (Register refers, in this context, to the students use of elements such as vocabulary, tone, sentence structure and terminology appropriate to the task). 0 The work does not reach a standard described by the descriptors below. 0 The work does not reach a standard described by the descriptors below. 0 The work does not reach a standard described by the descriptors below. 0 The work does not reach a standard described by the descriptors below. 0 The work does not reach a standard described by the descriptors below. 1 Reflection on the interactive oral shows superficial development of the students understanding of cultural and contextual elements. 1-2 The essay shows some knowledge but little understanding of the work used for the assignment 1-2 There is some mention, but little appreciation, of the ways in which language, structure, technique and style shape meaning. 1 There is some attempt to organize ideas, but little use of examples from the works used. 1 Language is rarely clear and appropriate; there are many errors in grammar, vocabulary and sentence construction, and little sense of register and style. 2 Reflection on the interactive oral shows some development of the students understanding of cultural and contextual elements. 3-4 The essay shows knowledge and understanding of, and some insight into, the work used for the assignment. 3-4 There is adequate appreciation of the ways in which language, structure, technique and style shape meaning. 2 Ideas are superficially organized and developed, with some integrated examples from the works used. 2 Language is sometimes clear and carefully chosen; grammar construction is fairly accurate, although errors and inconsistencies are apparent; the register and style are to some extent appropriate to the task. 3 Reflection on the interactive oral shows development of the students understanding of cultural and contextual elements. 5-6 The essay shows detailed knowledge and understanding of, and perceptive insight into, the work used for the assignment. 5-6 There is excellent appreciation of the ways in which language, structure, technique and style shape meaning. 3 Ideas are adequately organized and developed, with appropriately integrated examples from the works used. 3 Language is clear and carefully chosen, with an adequate degree of accuracy in grammar, vocabulary and sentence construction despite some lapses; register and style are mostly appropriate to the task. 4 Ideas are effectively organized and developed, with well-integrated examples from the works used. 4 Language is clear and carefully chosen, with a good degree of accuracy in grammar, vocabulary and sentence construction; register and style are consistently appropriate to the task. 5 Ideas are persuasively organized and developed, with effectively integrated examples from the works used. 5 Language is very clear, effective, carefully chosen and precise, with a high degree of accuracy in grammar, vocabulary and sentence construction; register and style are effective and appropriate to the task.

Price Inflation of the Acai Fruit

Price Inflation of the Acai Fruit Table of Contents (Jump to) 1. Introduction 2. Overview of Acai Market 3. Relevant Economic Model 4. Critical Analysis 5. Conclusion Reference 1. Introduction The Acai is a species of palm tree, its fruit generally known as â€Å"Acai Berry†. It grows mainly in the river side of Amazon of Brazil. The fruit is rich in calories, calcium, vitamin A, C, amino acid, antioxidant and some more important nutrient contents. This exercise will show the economic reason behind the steep price hike and what measures can be taken to combat against this price hike. I will also try to explain the rationale behind the proposed measures. Section two of this exercise will describe the market scenario of Acai fruit in Brazil, section three will contain relevant economic model, section four will depict critical analysis of key arguments and finally a conclusion will be drawn. 2. Overview of Acai Market The Acai fruit mainly grows in the Brazilian area of Amazon River basin. Traditionally the fruit used to cover major portion of diet of indigenous Amazon people. It was traditionally a food item for poor people. Due to its higher nutrient value the fruit has caught significant attention of International consumers. As a result the fruit has become a super food in US and international market in recent days. From a â€Å"giffen† good â€Å"Acai Berry† has now become a â€Å"super food†. The boom of Acai fruit consumption in last three decade created opportunities for new product pathways and transformation industries. Sharp rise of this product price is explained by the theory of demand. Due to Acai berry’s nutrient values, higher demand by Brazilian consumers and international demand Acai price has gone up significantly in past few years. Even after significant price increase demand for Acai berry did not decrease. This is may be the reason of its nutrient value. As the willingness to pay did not decrease; price of this product is continually increasing. Figure-1: Increase in Price due to increase in demand Table-1: Per capita GDP (PPP) of Brazil and the USA Country Value Brazil $ 12,100 USA $ 52,800 Source: The World Fact Book, CIA Acai Roots, a Brazilian company based in California, estimates the size of the US retail market for acai products to range between USD70 million to USD100 million. (Goddard, P. 2010) Acai trees usually produce fruit in three to five years of plantation. Trees produce fruit twice in a year. As Acai can be only produced in a specific climate (climate like river basin of Brazilian Amazon). It has a limited supply against the rising demand. Acai is now also growing in North Queensland of Australia, tropical forest of Malaysia, South Florida, Puerto Rico, and Hawaii. A survey by JD Power and Associates late last year (2013) found that American consumers are Optimism, they simply seek value for their money, Brand conscious, Authenticity-seekers, Purpose-driven, and Mature. Currently Brazil is experiencing a consumer behavior that America experienced post-WWII period of the 1950s and 1960s. Brazilian sales are growing four times faster than the U.S. Retail sales in the emerging market nation are increasing at 7 to 8% a year. At the same time America is only experiencing retail sales growth of about 2%. [Result is summarized from a research report of Boston Consulting Group (BCG)] 3. Relevant Economic Model Increased demand for Acai berry has created economic opportunity for many economic agents. As a result of increased demand Acai cultivation has now become commercial and many big commercial producers has now entered in to the market to raise the supply of Acai berry. Superior technology and cultivation process has been employed to increase the supply of Acai berry. No doubt that supply of Acai has increased in recent past but demand for this product has increased many folds than the supply. As a result supply force failed to bring down the price of Acai. Figure-2: Increase in Price due to greater increase in demand than increase in supply Due to Acai fruit’s global increased demand local producers of Brazil are now under presser of increasing the supply of this fruit. As this fruit requires a specific environment to grow, local producers are not being able to match with the demand of this product. As a result as theory of supply suggests price of Acai fruit has gone up significantly (prototype scenario is portrayed in figure-2). Because of its higher demand producers now can change high price for the product hence higher profit margins for the local producers and others. Theory of completion suggests super normal profit attracts more new entrants into the market. Super normal profit attracted many new producers and some corporations in to Acai production and processing industry. However, as described in figure-2, demand has increase more than the increase in supply. As a result price of Acai is still in climbing stage. But superior technology, better scientific production process can lead to a greater supply of Acai fruit which may create downward pressure on price. As multinational companies are now a player in Acai fruit industry they can exclude the small local producers from the industry. MNCs can do so because they have better supply-chain management, they can enjoy economies of scale hence lower cost of production. 4. Critical Analysis Exclusion of local small producers will have a negative effect on Brazilian economy. Some of the producer may need to switch from Acai production to some other crops. As a result their household income may fall. If their household income falls then the overall level of welfare of the local people will also decrease due to fall in income. On the other hand, engagement of large corporations and MNCs into the Acai production and processing industry may lead to economic development of the local community as well as Brazil overall. This is a paradox. One negative effect has stroked already that is exclusion of local poor indigenous people from the consumption of Acai fruit. Acai fruit used to be a major part of the local indigenous people is past, but increased price of Acai fruit has cut down those local indigenous people as its consumers. To me, this is a great paradox whether exclusion of small local producers of Acai will have negative effect on Brazilian economy or not. If the economic benefit of inclusion of large and multinational corporations in to Acai production suppresses the negative effect only then the welfare state of local small producers will not hamper. The government of Brazil may take some remedial measure to combat against the increase price of Acai and work toward supply enhancement. Some of the suggestions are: To fight against price hike Tariff on Acai fruit export Quota System These trade barrier will lead to less export of Acai from Brazil and local customer can enjoy Acai fruit will lesser price. Usually trade barriers used to protect local producers and local customers. But use of trade barriers to protect local consumers and producers is a negative tool in todays’ free world economy. For increasing supply Brazilian government can come up with few projects which will work for inventing better technology and production process so that the local producers can use superior production and processing system at lower price. These types of projects can lead to increase in Acai fruit supply, which will definitely create downward pressure on Acai fruit rising price. 5. Conclusion Acai fruit is a rainforest fruit that grows in river basin of Brazilian amazon. By the last decade the fruits’ demand has gone significantly producers have failed to generate adequate supply. Price of raw materials has gone up by many folds, suitable lands for growing Acai fruit is now becoming scares, increasing world demand for its nutrient value have led to enormous price hike. As the industry is not perfectly competitive, a super normal profit is exist in the industry. And economies of scale, higher raw materials price have excluded some small local producers from Acai production. Subsequently local indigenous people have lost their major diet which is beyond their reach. Increasing world demand, shortage of supply, and abnormal price hike in last few years, all these are now debatable issues, and prime policy concern. References Brasileiro, A. 2009, ‘Superfood’ Promoted on Oprah’s Site Robs Amazon Poor of Staple†. Retrieved from http://www.bloomberg.com Goddard, P. 2010, Brazil fruit juice production fuels drinks export. International News Services Hepburn, C. 2006, Regulation by prices, quantities of both: a review of instrument choice. Oxford Review of Economic Policy Krugman P. Obstfeld M., 2008, International Economics: Theory and Policy, 8th edition, Pearson International Edition Menezes, E., Deliza, R., Chan, H. L., Guinard, J.-X. (2011). Preferences and attitudes towards aà §aà ­-based products among North American consumers. Food Research International Muniz-Miret, N., Vamos, R., Hiraoka, M., Montagnini, F., Mendelsohn, R. (1996). The economic value of managing the aà §aà ­ palm (Euterpe oleracea Mart.) in the floodplains of the Amazon estuary, Parà ¡, Brazil. Forest Ecology and Management Samuelson A P Nordhaus D Wiiliam, 2010, Economics, 19th edition, McGraw-Hill Word Count: 1295 excluding table, graph and reference

An Analysis of Spivak’s Translation of Mahasweta Devi’s Essay

Mahasweta Devi is a very well known figure in modern contemporary Bengali Literature and also a Ramon Magsaysay Award winner for her tremendous works in the field of literature mainly on tribals and marginalized people. Gayatri Spivak played a great role in making Mahasweta Devi known to the literature world through her translations and her work of subaltern studies on Devi’s texts. Spivak has translated many texts of Mahasweta Devi from Bengali into English. Translation has its own problems and issues and has been discussed at large and these issues and problems are matter of concern for every translator. The present paper is concerned with the problems which emerged after reading the select translated text â€Å"Draupadi† and what English/Western readers are deprived of while reading the translated text. Mahasweta Devi (1926- ) is a prolific Bengali writer and a very active social activist. Her works for the upliftment of the tribal people is extra ordinary. Along with the tribal people, she has also dedicated her struggles for all the subalterns, who are the victims of the system and class. Her works like Bashai Tudu, Chhota Munda and His Arrow, Rudali, Mother of 1084, â€Å"Douloti†, â€Å"Draupadi†, â€Å"Breast-giver†, etc. gives a realistic picture of the society where protagonists are oppressed and suppressed by the different tools of the system. Major portions of her writings are journalistic in nature and are directed against the mainstream. According to her mainstream people are the mute spectators and are very much part of the exploitations inflicted upon the subalterns. Though all her stories are written in Bengali, most of the works of Devi has been now translated into English and other languages for wider readership. While talkin... ...rding to Bertrand Russel, â€Å"no one can understand the word ‘cheese’ unless he has a nonlinguistic acquaintance with cheese.† (2000:113). To conclude we can say that whatever measures a translator may take but there will be always loss of information. The best a translator can do is to minimize the loss. Bengal with its rich culture, traditions and religious values it becomes all the more tough for the translators to avoid the dilution of those values. Works Cited 1. Devi, Mahasweta. Spivak, Gayatri C, trans. Breast Stories. Calcutta: Seagull Books.2010. 2. Spivak, Gayatri C. In Other Worlds: Essays in Cultural Politics. New York: Methuen.1987. 3. Venuti, Lawrence, Ed. The Translation Studies Reader. London: Routledge.2000. 4. Sen, Nivedita and Nikhil Yadav, ed. Mahasweta Devi: An Anthology of Recent Criticism. New Delhi: Pencraft International.2008.

Abusive Relationships and Domestic Violence :: Violence Against Women Essays

Domestic violence describes a situation where one person in a relationship is using violence to control and dominate another person. Domestic violence victims and their batterers cut across all socioeconomic, demographic, and professional lines. It is an epidemic that is emphasized particularly with the female gender. While physical assault is often times the most common form of abuse, it is important to acknowledge that other forms of abuse are just as detrimental. Often times, fear and isolation are particularly powerful in preventing women from leaving a violent relationship.   Ã‚  Ã‚  Ã‚  Ã‚  Domestic violence is a common crime in America, especially amongst the female gender. Studies indicate that nearly one-third of American women (31 percent) report being physically or intimately abused by a husband or boyfriend at some point in their lives (Commonwealth Fund Survey, 1998). Domestic Violence towards women is a problem in the United States that is usually over looked and almost always not noticed by Society today. Violence is defined by the Riverside Webster's Dictionary (p.755) as: 1. Physical force employed so as to damage or injure. 2. As an instance of violent action. If this is the case than why is it that so many women are beaten by loved ones each year and little or nothing is done to correct this violent and hostile situation?   Ã‚  Ã‚  Ã‚  Ã‚  The battered woman is pictured by most people as a small, fragile, haggard person who might once have been pretty. She has several small children and is frequently assumed that she is poor and from a minority group. She is accustomed to living in violence, and her fearfulness and passivity are emphasized above all. Although some battered women do fit this description, research proves it to be false stereotype(Walker p.18). In fact most battered women have highly lucrative jobs such as doctors or lawyers, Corporation executives and nurses. Battered women are found in all racial, religious and ethical backgrounds as well as age groups and educational levels.   Ã‚  Ã‚  Ã‚  Ã‚  Statistical information on domestic abuse commonly notates that women in intimate relationships are amongst the greatest risk. Statistics also revealed that domestic abuse is the leading cause of harm amongst females of all races that usually involve a weapon. "Approximately one in four attacks involved the use of a gun or knife,† according to a studies. Young, black and Hispanic women were especially vulnerable, as were poor single women with low education levels who lived in inner cities.

Pricing strategy in video game industry Essay

Video Gaming industry has gone dramatic changes when more and more digital platforms emerge and improved technology in portable devices, mainly in social games(Facebook, Myspace) and mobile games. 27% of US online population play at least one game on social network, and Facebook gaming revenue hit $1. 32 billion in U. S market in 20111. Also, as more than more people have smart phone especially apple’s iOS devices, gaming application becomes more and more popular in mobile market(72% game applications on iTune)2. There are traditional console game players such as EA, Activision, Nintendo and Ubisoft in this industry, also there are leading company in the social game area such as Zynga in the market. Traditionally, console games are sold in retail stores with $39. 99 to $59. 99 retail price for the whole disc content. Hard-core games such as Call of Duty(Activision), Assassin’s Creed(Ubisoft) and etc. usually price at $59. 99 while casual titles such as Nintendo wii games price around 30$. Usually the pricing approach for these console game companies is the industry standard – means every player in this market follows the same rule as the same price. It can be considered as based on cost structure because of the long time of development (18 to 36 months), money-consuming game development cost and all kinds of add-on cost (packaging, marketing and third-party licensing etc. )3 They also only have two months’ shelf time as the game lunch. Because of the high entry barrier in the console game industry and high brand perception among customers, several main competitors dominate the market. The console game price does not differentiate too much among these players. However, as facebook’s extreme success leads to people’s behavior change to be more â€Å"social† associated, a plenty of small companies start to enter into social gaming market and undergo blast growth speed such as Zynga. Zynga’s pricing strategy is â€Å"Free-to-Play† and charging in-game micro-transaction items such as virtual gift or buildings. The free-to-play concept is not new in this industry because plenty of Korean online game companies such as Nexon, NcSoft already using this business model while traditional online games use subscription model ($15. 99 per month) such as World of WarCraft(Blizzard) and EVE Online(CCP Games). As the internet bandwidth improvement and more internet users in US(250 million)4, online games and social games represent strong growth trend comparing to traditional console games. And as users have more options in â€Å"free† games rather than premium games, more and more companies enter into this industry by offering products for free with micro-transaction options. Zynga’s most popular title â€Å"CityVille† has over 70 million monthly active users while best selling single console game Call of Duty(Activision) has 14 million copies sold in US market. Facing the competition of Facebook games with free to play concept and high growth potential of online game market, some of the traditional package-good game companies start to offer cross-platform Facebook game titles to increase their competency in the market such as EA, Sony and Ubisoft. Their main strategy is to develop Facebook companion games(Free to Play) to featured console game title. Those companions games not only offer free-to-play game content but also allow users to unlock items in the main console game such as Dragon Age Legend(EA). They intend to leverage their brand awareness in the gaming industry, acquire more users to play main games and increase monetization channel to increase revenue. EA responded very quickly in this digital trend by doing aggressive acquisitions for popular facebook or mobile game studios. However, a lot of other traditional console game companies react very slow (Ubisoft, Sony) or refuse to change (Nintendo). Most of console game companies conduct a conservative strategy and will develop several social games(much shorter develop time) to make trial because overall the console retail sales revenue is much higher than that in social and mobile market. Others are not capable of following this fast-paced digital step and suffered loss (THQ laid off 200 employees in 2011 because of decreasing sales in retail products). Most customers that play hard-core video console games generally are not satisfied with the â€Å"free-to-play† social companion games because of lower quality of overall game content and totally different game play with main games. A low quality companion product of Facebook platform will damage the company’s reputation in this industry for new users. However, since the users profile between hardcore players (average 29 years old male) and social players (average 35 years old female) are so different with very few overlap, it makes these console game companies indifferent to the failure of Facebook product. Online game market, on the other hand, the free to play options have a big impact to customers’ options. For example, World of Warcraft ( Most popular Massive Multiplayer Role Playing game, 12million users with $15. 99 monthly subscription fee) lost 600,000 users since 2008 while RuneScape(Jagex) (free-to-play game with subscription options at $5) has 150 million registered users and over 10 million active users. Blizzard responded to the competition since 2011 on â€Å"free to Play† options until level 20 in the game. Another game Lord of the Rings switched from subscription model to free to play model and saw double revenue and 400% user growth immediately. I would suggest the pricing decision maker in video game industry to look at customer, company capability, product feature, customer and competitors’ issues. Company – Analyze company’s positioning in terms of digital trend in the industry and focus on the products with higher profit margins – Analyze company’s cost structure and allocate reasonable resources on other platform product development based on financial forecast Product. – Since console game products have fixed price in the retail stores, figure out other possible channels for monetization such as digital add-on contents, special side-product package etc. – Decide possible virtual buying items based on the game mechanics and gamers motivation (self-expression, social status and social network) Distributor – Corporate and form good relationship with retail distributors for more resources on shelf presence and brand promotion Customer. – Deliver social companion games with high-quality contents to enhance main game – Deliver social games that directly target Facebook users – Promote company brand and establish community to highly engage with users Competitor – Learn from competitors on the digital content development – Expand to other country that competitors did not focus. Resources: 1. www. bizreport. com/2011/07/2011-social-gaming-revenues-to-exceed-1billion. html 2. http://mashable. com/2011/07/13/mobile-gaming-trends/ http://www. businessinsider. com/getting-into-the-mobile-gaming-game-2011-7.