Ben Bates free essay sample

Brief summary of the case Ben Bates, 28 years old, graduated from college six years ago with a finance undergraduate degree. He is now working at the financial management company of Dewey and Louis. He expects to work for 38 years later. His goal is to become an investment banker. And he feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either Wilton University or Mount Perry College. The Ritter College of Business is under Wilton University: It offers the country’s leading MBA program. Its MBA degree requires two years of full-time enrollment at the university. The annual tuition is $63,000, payable at the beginning of each school year. Books and other supplies are estimated to cost $2,500 per year. The Bradley School of Business at Mount Perry College began its MBA program 6 years ago. The Bradley School is smaller and less well known than the Ritter College. We will write a custom essay sample on Ben Bates or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Its program lasts one year, with a tuition cost of $80,000 to be paid upon matriculation. Books and other supplies for the program are estimated to cost $3,500. Both schools offer a health insurance plan that will cost $3000 per year, payable at the beginning of the year. Ben also estimates that room and board expenses will cost $20,000 per year at both schools. Besides, neither school will allow its students to work while enrolled in its MBA program. Here is Ben’s private financial information: His annual salary is $50,000 per year, and it is expected to increase at 3 percent per year until retirement. His current job includes a fully paid health insurance plan, and his current average tax rate is 26 percent. Ben has a savings account with enough money to cover the entire cost of his MBA program. Ben expects that after graduation from Wilton, he will receive a job offer for about $98,000 per year, with a $15,000 signing bonus. The salary for this job will be increased by 4 percent per year. His average income tax rate will rise to 31 percent. Besides, Ben thinks that he will receive an offer of $81,000 per year with a $10,000 signing bonus upon graduation from Mount Perry. The salary for this job will be increased by 3. 5 percent per year. Therefore, his average tax rate at this level of income will be 29 percent. The appropriate discount rate is 6. 5 percent. 2. Answering the questions 2. 1. Question 1: How does Ben’s age influence his decision to pursue an MBA? Ben Bates determines on earning an MBA to be able to find a job with higher income than the current one and to become an investment bank’s owner. To decide whether to pursue an MBA or not and when to enroll in the program, Ben must weigh, calculate the present value of his income sources, in which working time is an important factor to determine the present value of income sources. Ben is 28 years old now (he expects to work for 38 years from now). If Ben decides to learn for an MBA immediately, it takes Ben only 01-02 years to study and the left time for Ben to work will be around 36-37 years, but in return, with an MBA in hand, during the 36-37 year, Ben will have a good job with higher income than his current job. Conversely, if Ben decides to postpone the pursuit of an MBA, the left time for Ben to work with a more attractive salary after getting an MBA will be shorter, so Ben’s income flow value in this case also will affected. Thus, if deciding to get an MBA soon, Ben will be able to maximize his potential income. In addition, age may affect Ben’s learning ability when taking an MBA course. If he takes the MBA course when younger, his ability to acquire new knowledge will be better. Besides, age also affects his job opportunity after he receives the MBA. In fact, many companies prefer younger candidates to older ones. Therefore, the sooner Ben decides to get an MBA, the more job opportunities there will be for him after he finishes the MBA course. In short, age is one important factor affecting Ben’s determination to get an MBA. To maximize his potential earnings, then Ben should start taking the MBA program as soon as possible. 2. 2. Question 2: What other factors, which are unquantifiable, affect Ben’s decision to pursue an MBA? Beside age an important factor affecting Ben’s decision to get an MBA – there are also some unquantifiable factors that affect his decision, as follows: First, it is reputation of the school that Ben plans to choose. Studying at a prestigious school, his MBA degree will be more valuable. This makes it easy for Ben to find a suitable job with a more attractive salary. Second, it is the MBA program content’s suitableness for the job that Ben plans to find later. This helps Ben accumulate expertise for his future job. Third, it is the financial situation of Ben’s family, especially during his learning time. This affects his family’s ability to cover living expenses. If Ben still has a financial resource to pay for his family’s living expenses during the course, he will find it easier to decide to pursue an MBA than otherwise. 2. 3. Question 3: Assuming that all wages are paid at the end of each year, then what are the best options for Ben from the precise financial standpoint? To identify what are the best options for Ben from the precise financial standpoint, it is needed to calculate the present value (PV) of his income flow under 03 options, as follows: 2. 3. 1. Option 1: Ben still continues to work at Deway Louis Company until retirement. Factors necessary for calculating the present value (PV) in the first option are: Ben’s annual salary at the firm is $ 55,000 and is expected to increase by 3% each year until retirement. His current average tax rate is 26%. Appropriate discount rate is 6. 5%. To calculate the present value (PV) of Ben’s income flow, we can use the increasing annuity formula.

Average SAT Scores by State (Most Recent)

Average SAT Scores by State (Most Recent) SAT / ACT Prep Online Guides and Tips More than a million students across the country take the SAT each year. So what do SAT scores by state look like? How do you stack up against other test takers in your state? Finally, what are some interesting state facts- for example, which state has the highest SAT score? The lowest SAT score? The highest rate of participation? It's the battle of the states, SAT edition. Find out your state's average SAT scores and other fun facts in this article! What Is the National Average SAT Score? Before we get into the SAT averages by state, let's quickly go over the SAT scoring system as well as what the overall average SAT score in the US currently is. As you probably know, the SAT is made up of three sections: Reading, Writing and Language (also just called Writing), and Math. The Math section is scored on a scale of 200-800, while the Reading and Writing sections are combined to give you a final Evidence-Based Reading and Writing (EBRW) score on a scale of 200-800. By combining these two sections, we get atotal SAT score rangeof400-1600, with 1600 being a perfect score. Now that we've got this down, let's take a look the national average SAT score. In 2018, the College Board reported the following average SAT scores: Total: 1068 Evidence-Based Reading and Writing (EBRW): 536 Math: 531 As you can see, the average scores for EBRW and Math are quite close. These then add up to get a total SAT average score that's around the halfway point of the total score range (400-1600). But what are the average SAT scores by state? Keep reading to learn some interesting trends and to see the notable top spots held by different states! State SAT Awards We'll start with the states that have won our "State SAT Awards." The categories for these are as follows: Highest SAT Score Highest SAT Score With Over 20% Participation Team Players (100% Participation) Lowest SAT Score Most Variation Between SAT Sections All data below comes from the College Board's 2018 SAT state reports. Highest Score: Minnesota (SAT Score: 1298) Minnesota takes the cake for highest average SAT score with 1298. This is 230 points higher than the national average! But wait- Minnesota also has lower test participation than 78% of the US at 4%. In other words, just 2,464 seniors took the test in 2018. Because more students in Minnesota take the ACT than they do the SAT, Minnesota's high average SAT score likely means that only the most prepared, ambitious high schoolers take the SAT. These students tend to score higher, effectively raising the state's average. But what if we look instead at states with a significant participation rate- that is, a state in which more than 20% of students take the SAT? The winner for that SAT award is ... Highest Score With Over 20% Participation: Arizona (SAT Score: 49, with 29% Participation) Great achievement here! With more than 20,000 students in the class of 2018 taking the SAT here, Arizona is truly outperforming the national average. Team Players (100% Participation): Colorado, Connecticut, Delaware, Idaho, and Michigan In Colorado, Connecticut, Delaware, Idaho, and Michigan, every student took the SAT. This usually means that thesestates require all high school students to take the SATas part of normal high school testing. In addition, four other states- Illinois, Maine, New Hampshire, and Rhode Island- as well as the District of Columbiaoffered the SAT statewide during the 2017-18 school year. But because the testwasn't mandatory for all students in these states for the entire school year, participation rates here are below 100%. The highest participation rate for non-mandatory testing goes to Florida, at 97%. Lowest Score: District of Columbia (SAT Score: 977) Unfortunately, the District of Columbia underperforms the national average by more than 90 points. Also ranking at the bottom are other states with statewide SAT testing (Delaware and Idaho) as well as West Virginia, Puerto Rico, and the US Virgin Islands. From the data, it's reasonable to conclude that statewide testing causes lower scores because it includes all seniors andnot just those planning to apply to college. The lowest SAT score for a non-mandatory state is 1014 in Florida. While Florida is only in the top 18% of the country as far as participation goes (97% participation rate), it's important to point out that this is still a huge number of students, as the population of Florida is so large. In 2018, 147,058 students took the SAT in Florida. This number is much higher than the number of test takers in other states with comparable SAT participation rates, such as Rhode Island (97% participation rate, 10,161 students) and New Hampshire (96% participation rate, 14,834 students). So even though only 97% of students took the SAT in Florida, there's still plenty of room for variation within these nearly 150,000 students' scores. Most Variation Between Sections: Florida (520 Evidence-Based Reading and Writing, 497 Math) With a participation rate of 97%, Florida also has the greatest difference between SAT section scores of all states. On average, Florida students score 29 points higher on Evidence-Based Reading and Writing (EBRW) than they do on Math. Want to learn more about the SAT but tired of reading blog articles? Then you'll love our free, SAT prep livestreams. Designed and led by PrepScholar SAT experts, these live video events are a great resource for students and parents looking to learn more about the SAT and SAT prep. Click on the button below to register for one of our livestreams today! List of All Average State SAT Scores Here are the most recent average SAT scores for all 50 statesas well as the District of Columbia, Puerto Rico, and the US Virgin Islands. Find your area below and see how your SAT score compares with your region's average! State Participation Rate EBRW Math Total Alabama 6% 595 571 66 Alaska 43% 562 544 06 Arizona 29% 577 572 49 Arkansas 5% 592 576 69 California 60% 540 536 1076 Colorado 100% 519 506 1025 Connecticut 100% 535 519 1053 Delaware 100% 505 492 998 District of Columbia 92% 497 480 977 Florida 97% 522 493 1014 Georgia 70% 542 522 1064 Hawaii 56% 550 549 1099 Idaho 100% 508 493 1001 Illinois 99% 513 506 1019 Indiana 67% 546 539 1086 Iowa 3% 634 632 1265 Kansas 4% 633 631 1265 Kentucky 4% 630 618 1248 Louisiana 4% 615 595 1210 Maine 99% 512 501 1013 Maryland 76% 545 535 1080 Massachusetts 80% 562 563 25 Michigan 100% 5 499 10 Minnesota 4% 643 655 1298 Mississippi 3% 630 606 1236 Missouri 4% 633 629 1262 Montana 10% 606 592 1229 Nebraska 3% 629 623 1252 Nevada 23% 574 566 40 New Hampshire 96% 535 528 1063 New Jersey 82% 547 547 1094 New Mexico 16% 552 540 1093 New York 79% 534 534 1068 North Carolina 52% 554 543 1098 North Dakota 2% 640 643 1283 Ohio 18% 552 547 1099 Oklahoma 8% 541 521 1062 Oregon 48% 564 553 17 Pennsylvania 70% 547 539 1086 Puerto Rico - 512 481 993 Rhode Island 97% 513 505 1018 South Carolina 55% 547 523 1070 South Dakota 3% 622 618 1241 Tennessee 6% 624 607 1231 Texas 66% 520 512 1032 Utah 4% 618 612 1230 Vermont 64% 565 554 20 Virgin Islands - 490 445 935 Virginia 68% 567 550 17 Washington 69% 543 538 1082 West Virginia 28% 513 486 999 Wisconsin 3% 641 653 1294 Wyoming 3% 633 635 1257 Source: The College Board What's Next? Confused about SAT scoring? Learn more about how the SAT is scored,and get tips onhow to figure out your SAT goal score based on the schools you're applying to. Wondering what it takes to get a perfect SAT score? I scored a perfect SAT scoreand wrote a detailed guide about what it takes here.Read this to learn all of my best strategies- and to get a 1600 on test day! If you liked this post, make sure youscroll up and subscribe on the right hand sideso you can stay up-to-date with our SAT/ACT articles! Disappointed with your scores? Want to improve your SAT score by 160 points?We've written a guide about the top 5 strategies you must be using to have a shot at improving your score. Download it for free now:

Age Discrimination in the Workplace Essay Example | Topics and Well Written Essays - 1500 words

Age Discrimination in the Workplace - Essay Example In their article, Butler &Berrett (2012) argue that the American working force is progressively getting older and working for more years and the baby boomer generation is currently defying the age long tradition of working for about 30 years before going into retirement. These individuals are now preferring to continue with working well past their retirement age. According to Butler &Berrett (2012), data presented by the U.S. Census Bureau indicates that there are currently over 142.6 million people in employment and that are aged 40 years and over. These individuals are seen to account for 46% of the U.S. population. In addition to this, the paper highlights the plight that is normally faced by the older generation in the workplace as a result of frequent discrimination and then goes on to propose a practical approach that potentially be used by human resource personnel and educators so as to ensure that all the various employee related decisions are seen to be handled.In their Agei sm in the workplace article that appeared in theSpring 2007 editions of the Generations Journal, Helen Dennis and Kathryn Thomas start off by affirming that ageism is currently seen to be firmly entrenched as part of the main social fabric in American life. They argue that the practice of ageism is widely pervasive as is clearly evident across some of the different sectors such as education, media, healthcare and advertising. Dennis & Thomas (2007) point out that the workplace is in essence a microcosm of society.

Communication, Ethics, and Society Assignment Example | Topics and Well Written Essays - 250 words - 2

Communication, Ethics, and Society - Assignment Example CNN’s story seemed more about creating a trending story on their network rather than reporting the plight of stranded passengers on a stranded cruise ship.evidently, the cruise ship’s accident was not catastrophic and that is perhaps why it elicited comical re-incarnation by live comedy shows. SPJ also requires journalists to ensure that they minimize possible harm resulting from the news they cover (Baran et al, 2012). CNN helicopters and boats kept hovering above and around the stalled ship. This act was highly insensitive to the passengers who were already nervous because it made them more tense and made them panic even more. The relatives of the passengers on the cruise ship were subjected to trauma by comparison of the ship accident to Hurricane Katrina which gave an impression of mass loss of lives. Assessments of the story point towards the conclusion that it was given unnecessary full-time coverage. The magnitude of the ship mishap was overly blown out of proportion and the story created a major hype with misdirected intentions. A story of such rating, warranted a much more honest representation of the true facts while avoiding the irresponsible comparison to Hurricane Katrina. However the story can not be said to poorly represent America because it was not a representation of the lives of Americans but an isolated case of a sea cruise gone wrong. The far the story went in terms of damaging reputations was to shed bad light on the company owning the

The Life Of Charlie Chaplin

The Life Of Charlie Chaplin Charlie Chaplin was born April the 16 in the year 1889.His full name is Charlie Spancer Chaplin. He was born in London. (United Kingdom.) Charlie was an film director and an English comic actor. His parents are Charles Chaplin and Hannah Harriette Hillin. But Charlie wrote in his book that he really never knew his father. They work in the theater. His mother artist name was Lily Harley. When Charlie was born his parents got a divorcà ©. When Charlie was twelve his father died, he was an alcoholic .Charlie has two half- brothers, their names are Sidney and Wheeler. Charlie grew up with Sydney , therefore Charlie knew him as the best. Sidney was born in 1885, after the marriage. Spencer became also famous as drummer for Jefferson Airplane, that was the best band in the years. Charlie was to young to know was going on and would not fully know about his half-brother , wheeler Dryden His family was very poor. His mother Hannah sold valuable stuff to stay alive. But after all they have enough food. Because his family had so little money. Therefore Charlie went to a drama. Hannah was sick, when Charlies und Sydneys childhood. Charlie and Sidney lived in more homes example , school and workhouses and his own house.The brothers meet again in 1920. Spencer is died from cancer in January 10, 2005. Sydney died on Charlies birthday, april 16,1965. Wheeler died in September 30, 1957. On the picture see you his family. Charlie Chaplin has been married to four times, he has 11 children. His first wife was Mildred Harris, they got married on October 23, 1918.They got one child , but after three days the child died. They got divorced on April 4, 1921. His second wife called Lita Grey , they got married on November 26, 1924, together they had two sons, Charlie and Lita divorced on August 25, 1927. His third wife called Paulette Goddard, they met when they are on a holliday,Charlie and Paulette divorced in June in the year 1942, she was the stepmother of Sidney and Charlie Jr. His fourth wife was Oona ONeill with whom he had eight children, Charlie and Oona got married on June 16, 1943. His Children. His first child, Norman Spencer Chaplin, he was born on July 7, 1919. His second child , Charles Spencer Chaplin Jr., he was born on May 5, 1925, he has appeared in a film together with his father (Charlie Chaplin). His third child , Sydney Earle Chaplin, he was born on March 30, 1926, he has also worked with his father (Charlie Chaplin) in one movie. His fourth child, Geraldine Chaplin Leigh, she was born on August 1, 1944, she is also known in many movies. His fifth child, Michael John Chaplin, he was born on March 7, 1946. His sixth child , Josephine Hannah Chaplin, she was born on March 28, 1949. His seventh child, Victoria Chaplin, she was born on May 19, 1951. His eighth child was Eugene Anthony Chaplin, he was born on August 23, 1953. His ninth child, Jane Cecil Chaplin, she was born on May 23, 1957. His tenth child, Annette Emily Chaplin who was born on December 3, 1959. His last child, Christopher James Chaplin, he was born on July 9, 1962. Silent Films. In 1895 came the first moving pictures that you could often see at the fair. You can see dancers in butterfly dresses and men boxing. After a time came the silend films. At the begin there were only short films, but because people liked that ,The films were longer with more subjects. In a silent film the actors dont speak. These films were made around 1900. At that time they cant make a film with a sound. a stupid film in the cinema there was a church organ for music. Later came a real organ. In the year 1927 was it possible to make films with sound. Famous people who played in silent films were : Laurel Hardy and Charlie Chaplin. Someone who accompanied a silent film called a Wurlitzer. At that time there were no sibtitles , they used a lot of stuff to make a noice : When in a movie a motor was going on another person make a noice of the motor, when a thunderstorm was struck they make a noice with a pot. So there were movies with sound, a lot of actors dont like that because they a ctors doing more with their mouths and hands . These actors often went to the theater scene there to work there. In the film was someone who told the story of the movie. The silent films had always had a good final, they called a Hollywood end. And for the Europeans a dramatic end.. A pair of Charlies films. ( the great dictator , circus, modern times. ) At the movie the great dictator they make fun of Hitler. The great dictator is Charlies famous film, he writes the movie and directed the movie. Charlie plays two rolls in the movie. One is a jewisch barber and a dictator. This movie is the first that Charlie speaks, he was very afraid for the reactions of the people In the end of the years thirty Charlie worked at this movie but it appeared in 1940 in the theaters. In that time Hitler conquered large parts of Europe. The movie came popular around the year 1941. , the great dictator good be used against the war. research showed that Hitler saw that movie twice. Nobody knows what Hitler thought of that movie. They think that he thought that the movie wasnt funny, because Charlie was playing a jewisch man. Charlie has at admittedly when he knows what Hitler has don that time he doesnt to make this film. The Circus. For this movie charlie got an academy award. If he really got this award earned, a lot of people discuss over that. He had a difficuld time then because he and his second wife lita got in a devorce. Lita was tried to end the cariere of charlie chaplin. This movie stand on the place number 7 for the highest income of the silend films. In the year 1928 brought the movie $3.800.000. Modern Times. This movie came in the year 1933 till 1936. The movie go on premiere on February 6, 1936. Charlie plays in this movie a tramp, he goes together with a unemployed girl from the town and theyre sure everyone gets work. He spends a lot of time with another girl. He and the girl find a job and happiness. This movie brought up $1.500.000. . A pair of Charlies films. (City lights, limelight, Making a living. ) City lights. City lights came out in the year 1931. For this movie get Charlie $1.500.000. In this movie is charlie a tramp , but he met a girl. He says to that girl , : im a millionair. But later she find out that he isnt a millionair. Limelight. Limelight is a movie were many children of Charlie Chaplin in plays. In 1952 begon Charlie to write that story. Charlie write all his movies and directed them. Making a living. Charlies first movie was Making a Living and got in premiere on February 1914. This movie took about a quarter. Charlie knew little from the movies. He has a lot of humor. He thought that the director was nothingà ¢Ã¢â€š ¬Ã‚ ¦ He didnt nothing good. He was very disappointed of the final results. Everything he was hoping to see in the movie , the director has got everything out. But the public liked the movie and recognized Charlie as a really good comic A countess from Hong kong. This was charlies last film, the movie was going out on January 5, 1967. Charlie got with this movie. $3,500,000. His last years à ¢Ã¢â€š ¬Ã‚ ¦ Charlie lived the last years of his life in Switzerland.. In 1972 Charlie Chaplin got a oscar for his whole life. That Oscar called they a academy honari award. He got the longest applause in history from the oscars. , in 1975 charlie chaplin got knighted by queen Elizabeth. So he got a new name : sir Charles Chaplin. And his wife became Lady Chaplin. Charlie Chaplin died in 1977,during the first Christmas night. He died of a cardiac arrest he was 88 years old when he died. On March 8 , 1978 his body was stolen. The people who has stolen the body was tring to get ransom from Charlies wife , but the plan was failed. The body was found 11 weeks later by the leg of Geneve and later they buried Charlie under 180 cm concrete. How get charlie so famous ? Charlie Chaplin had always a derby on , that derby was to tight and he had shoes on they were to large, he always walked with a walkingstick. So came Charlie on stage. He didnt think he got so famous. But he knows that he was a tramp, that he wasnt so lucky. Later he told what the goosepas meant. , he had stolen that from a dronken man, he walked also like a goose with his feet going outside. If you think of the name Charlie Chaplin , the most people knows him from the movie : The little tramp Whole the world loved him ! Everybody knows the sad face of him and his humor. And so he didnt speak the people could understand him. Because the whole world likes him and so became very famous. He has make many movies , and became there awards for. So there are many quotes Charlie Chaplin said and we are still using then. As : A day without laughter is a day wasted , In the end, everything is a gag and We think too much and feel too little. The Source ! http://en.wikipedia.org/wiki/A_Countess_from_Hong_Kong http://filmlegendes.punt.nl/?id=333733HYPERLINK http://filmlegendes.punt.nl/?id=333733r=1HYPERLINK http://filmlegendes.punt.nl/?id=333733r=1r=1 http://www.ednapurviance.org/chaplininfo/chaplinfamily.html http://www.digischool.nl/ckv1/film/chaplin/stomme_films.htm http://www.09366.07sc.thinkquest.nl/stomme_films.htm http://www.movie2movie.nl/r61868-Recensie-Modern-Times.html http://nl.wikipedia.org/wiki/Modern_Times_(film) http://nl.wikipedia.org/wiki/The_Circus http://nl.wikipedia.org/wiki/The_Great_Dictator http://www.charliechaplin.com/films http://nl.wikipedia.org/wiki/Charlie_Chaplin http://www.brainyquote.com/quotes/authors/c/charlie_chaplin_2.html The end !

Human Gene Therapy Essay -- Science Genetics Essays

Human Gene Therapy Image what it would be like if doctors could cure Huntington's disease, muscular dystrophy, or even hemophilia. Could this be possible? With gene therapy this all could be reality in the near future. Gene therapy is a potential approach to the treatment of genetic disorders in humans. This is a technique where the absent or faulty gene is replaced by a working gene, so the body can make the correct enzyme or protein and consequently eliminate the root cause of the disease (BIO, 1990). There are two types of gene therapy treatment: Somatic cell gene therapy and germline therapy. Somatic cell gene therapy involves obtaining blood cells from a person with a genetic disease and then introducing a normal gene into the defective cell (Coutts, 1998). This type of gene therapy does not prevent the disease from occurring in the next generation because it does not affect the sperm and egg cells. Somatic cell gene therapy only effects the other body cells. Somatic cell gene therapy has to be done several times over the coarse of the patient's life because the effects do not last very long. The contrast of somatic cell gene therapy is germline therapy. Germline therapy takes place in the reproductive cells. It involves the genetic modification of germ cells that will pass the change on to the next generation (Wilson, 1997). This type of gene therapy only has to be done one time to be permanent. One type of germline therapy is to treat a pre-embryo that carries a serious genetic defect before it is placed back in the mother by in vitro fertilization. Another germline therapy is to treat adult sperm and egg cells so the genetic defect is not passed on to children (Coutts, 1998). If a genetic change occurs, it will ... ...ed age where they will be able to understand the effects of the therapy, they should then be allowed to make their own decision. There are many thoughts that have to go into this procedure, and I think people should be careful when considering a life altering gene therapy. References 1. Biotechnology Industry Organization, 1990. Gene Therapy An - Overview. Obtained from TheWWW.10/16/99: http://www.accessexcellence.org/AB/IWT/Gene_Therapy_Overview.html 2. Coutts, M.C., Human Gene Therapy. Obtained from the WWW. 10/16/99: http://www.georgetown.edu/research/nrcbl/scopenotes/sn24.htm 3. PBS On-Line. What is Gene Therapy. Obtained from the WWW. 10/16/99: http://www.pbs.org/wnet/innovation/show1/html/2sb-therapy.html 4. Wilson, J. IHGT The Institute for Human Gene Therapy. Obtained from the WWW. 10/16/99: http://www.med.upenn.edu/ihgt/info/whatisgt.html

Impact of US Dollar on Canadian Economy Essay

The Canadian Economy is strong. According to the 2001 Canada Yearbook, factors contributing to the country’s economic health are: natural resources; manufacturing and construction industries; financial and service sectors; the ability to span distances using communications and transportation technologies; dynamic trade relationships with other nations; and the ability to compete in a global marketplace (2004). Being the 2nd largest country in the world, Canada’s natural resources accounts for 12. 6% of its GDP growth in 2003. The Energy Sector, Forestry, Mineral Sector as well as Geomatics Sciences are responsible for this growth. Exportation of natural gas, timber and wood products, potash, uranium and other minerals make up for the growth. Geomatics is the science and technology of gathering, analyzing, interpreting, distributing and using geographic information. Since 2002, when the Canadian Government initiated the focus on understanding and mapping its land resources, it became one of the leading suppliers of information, technology and equipment in Geomatics. Today, Geomatics is a $10 to $20 billion dollar industry growing at a 20% rate, and thus is a potential growth area for the Canadian natural resources sector. According to Industry Canada, the Manufacturing and Construction Industries contribute to about 40% of Canada’s GDP, with an actual gross approximately $25 billion in December 2005. The two industries combined showed growth near single digit levels, (manufacturing at 1% GDP and construction at 0. 7% in Dec. 2005) which propelled the 0. 4 over-all GDP, making up for the loss in the Agriculture section at -1. 6% GDP in December 2005 (2006). The services sector in general is boosting the economy. Canada Yearbook states that the sector employs three out of four Canadians in the 21st Century (2004). Though their output is not as tangible as manufactured or natural goods, the services sector is everywhere and serve as the backbone of every economic sector. From the driver of a courier van to the company financial analyst to the service providers in Civil Defense, all the roles belong to the services sector. Together with advances in information technology, the services sector is transforming Canadian Economy into a knowledge-based economy (2006), as claimed by the Canadian Yearbook, where-in its modern products are efficient back-end services, professional consultancy and breakthrough technologies and equipment. Despite the economic transformation, trade is still the main means of business for Canada. As such, relationships with trade partners play a vital role. Among the countries in the world, four markets are in constant and significant trade relations with Canada: United States, United Kingdom, Japan and more recently, China. Among the four, its close neighbor, the United States takes about 75 – 80% of Canada’s trading business. Thus, changes in the Unites States economy, particularly of the US dollar impacts Canadian economy. State of Canada-US Trade Geography and history have provided opportunities for the United States and Canada to be in close business relations. In the natural order of things, free trade between the two nations would be beneficial in toto. However, political and social ramifications have prevented the successful pact since the mid 1800s until such time when, despite the disagreement of Canada’s Conservative Party, the Free Trade Agreement (FTA) between US and Canada was effected in October of 1987. The over-all provision is to minimize tariffs of all goods traded between the two countries to a maximum of 1%. With the FTA in effect, trade between the two countries rose to 40% from a pre-FTA level of 25%. However, there is strong opposition from Canada about violations of the United States in the provisions of FTA, to the disadvantage of Canada’s agricultural business. However, seeing the benefits of a free trade zone, Prime Minister elect Jean Chretien improved the FTA and broadened the extend of the free trade to Mexico. Thus, in January of 1994, the North American Free Trade Agreement (NAFTA) between the United States, Canada and Mexico, took effect. Such Agreement involves an immediate and phased release of tariffs and trade barriers for agricultural products traded between the three countries. A macro benefit of NAFTA is a systematic conduct of business within North America because of the creation of an impartial, rules-based system to resolve dispute among the countries. Significant increases in trade activity were observed among the three countries in the first seven years of NAFTA implementation as compared to agricultural trade activities with other markets outside of North America. Canadian agricultural and agri-food exports to the United States and Mexico have increased by 95 percent, reaching $14. 8 billion in 2000. In comparison, Canadian exports of agricultural products to non-NAFTA countries grew by 45 percent during the same period, according to Agriculture and Agri-food Department of Canada (2006). Prior to NAFTA, agricultural import-export activities between Canada and the United States was only at $13. 7 billion. However, this increased $25. 1 billion in 2000, 82% higher, since 1993. Because 61% of Canada’s farming produce are exported to the United States, agricultural exports for the same period grew 92% to reach $14. 1 billion. As a result, Canada’s agricultural trade surplus with the United States has more than tripled since 1993. As summarized by the Agricultural Department of Canada, Horticultural crops: volume exports of tomatoes increased twenty-fold while exports of peppers and lettuce increased seven-fold, and exports of cucumbers increased six-fold. Oilseeds products: soybean oil volume exports increased seven-fold, exports of sunflower oil quadrupled, and canola oil exports increased by 44 percent. Specialty crops: dried beans volume exports nearly tripled. Red meats: beef volume exports more than doubled while pork exports increased by 87 percent. Processed products: roasted coffee volume exports increased nearly seventeen-fold, malt exports increased nearly five-fold, exports of frozen French fries increased four-fold, and pasta exports more than tripled. Following the success of NAFTA and its predecessors from other continents of the world, Canada together with thirty-three other countries belonging to the American Continent are drafting a free trade agreement called Free Trade Agreement Among the Americas (FTAA). With its complex participation, the agreement is still under negotiations. Factors that Influence the Rise of the Canadian Dollar (against the US Dollar) With the rise of the United States as an Economic super power, it naturally assumed a role of having the US dollar as a worldwide currency. Significant markets such as Canada are always compared to the dollar. Moreover, being a majority trade partner of the US, the exchange rate of the Canadian dollar matters significantly over the US dollar. Since 2003, Statistics Canada has plotted the rise of the Canadian dollar against the US dollar and indicated its significant rise against the greenback. There are three factors that may have contributed to this growth: first, the weakening of the US economy brought about by increasing current account deficits; secondly, the worldwide increase in commodity prices; and thirdly, the improved performance of the Canadian economy resulting in trade surplus. Since 2001, there has been a common phenomenon in most major currencies in the world: they appreciated against the US dollar. The Euro and Canadian dollar were two of the strongest performers. When the Euro surpassed the greenback in 2003 analysts predicted that there was no turning back. While the loonie has seen significant appreciation at the rate of 25% since 2001 until 2005, surpassing historical performance by the US dollar. Such appreciation has been driven by the increasing trade deficits of the US. Since 2001, the US has been buying more goods and a service than the country is able to sell. More oil, gas, metals and services were bought with US dollars than were sold outside of the US. Some analysts believe that the on-going War on Terror has been the main source of the deficit. While the country is still figuring out how to address the deficits, major trade partners such as Canada are reaping the benefits of a weakening dollar. At the mercy (or because) of commodity supply, the Canadian economy remained resilient despite the volatility of oil, gas, metals and wood. Being a major supplier of such commodities, precarious world prices came at an advantage. Despite some internal losses as a crude oil refiner, the bottom line effect of this factor remained positive and contributed to GDP. Thus, the increase of the Canadian dollar. Last factor that weakened the dollar from Canada’s point of view is the initiative of its government to attract more businesses through higher interest rates (vs. that of the United States). The over-all effect therefore, of the three factors above is the weakening of the US dollar against the Canadian dollar. Today, the exchange rate of the Canadian dollar is rising and reaching its peak in 2001, at C$ 0. 846 vs. the US$. With such growth, the general assessment of Canadian economists, businesses and external analysts is that this is positive for the Canadian economy, now more than ever. The next sections will have full discussion of the different sectors in the Canadian economy as impacted by the weakening (or strength) of the US dollar. Impact of the US Dollar on Canadian Industries Exports Apart from agriculture and agri-products, steel is another commodity that Canada heavily trades with the United States. Canada’s steel production accounts for approximately two percent of the world’s total supply. This is very small as compared to the Asian producers (Japan, North Korea and Taiwan), which accounts for nearly 40%. Nevertheless, 89% of Canada’s steel export go to the United States while 58% of Canada’s imported steel come from the US. Trade barriers, transportation costs prevent small Canadian steel producers from competing outside of North America. North America’s open market is ideal for small and big steel manufacturers from Canada. Just by its size and high demand, the opportunity for supply is wide. In addition, proximity to such a large market allows for low transportation cost. Just-in-time supply is immediately served without much impact on delivery cost. Furthermore, inventory can be kept low unless preparing for construction peak. Steel pricing in North America is also higher than other export markets by as much as 40% when compared to Japan, where steel importation is minimal due to its own supply. In North America, particularly the United States, steel trade is predicted to continue growth. In this light, sustained and open access to the U. S. market is key to the Canadian steel industry. A slight fallback in the market, for example, experienced in 1995 posed a threat to the industry. Whenever such a slow-down happens, issues related to anti-dumping and government subsidies arise, without any proper venue for address under NAFTA. Unfair trade practice is an issue commonly raised by the US against Canada when market conditions appear to favor Canada’s steel industry. In the same manner, weakening of the US dollar may initiate such a condition when Canada’s steel industry continues to maintain a surplus against the US. Once again is likely to be subject to charges of unfair trading practices by U. S. steelmakers. In 1993, according to Industry Canada, the country had a global steel trade surplus of $580 million and a steel trade surplus with the U. S. of $909 million. While the trade surplus was maintained with the U. S. , the surge in steel demand in 1994 resulted in a dramatic rise in imports and produced an overall international trade deficit of $207 million. The total trade balance deficit increased in 1995 to $349 million as Canadian imports again exceeded exports. However, the steel trade surplus with the U. S. was $1. 0 billion in 1995. Over the period from 1989 to 1995, steel imports have increased from 18. 6 percent of apparent domestic consumption in Canada to 29. 9 percent in 1995. Meanwhile the import share held by the U. S. increased from 8. 6 percent to 17. 5 percent. In the U. S. market, imports increased from 17. 9 percent of apparent domestic consumption in 1989 to 21. 4 percent in 1995, with Canada’s import share increasing from 3. 1 percent to 4. 0 percent. With such steel trade dynamics between the two countries, the weakening of the US dollar means the increase in Canada’s export price. Either more US dollars are needed to purchase the same Canadian product in the 21st century, than during the slump 1990s; or less Canadian dollars are earned for every sale of a Canadian export. At the other end, when Canada imports from the US, the commodities and services become cheaper. Either way, both impacts sales and profits. When sales and profits are volatile, vulnerable small businesses tend to closedown and contribute to unemployment. In order to maintain profit margins, Canadian export companies will need to improve efficiencies. Improvement may come in three ways: production streamlining, outsourcing and amortization gains. When the US dollar is low, it is the best time for companies to reevaluate tools and machinery throughput. Technology improvements will present more-efficient, more-automated processes, which can be useful in improving production efficiency. Since most equipment are bought from the US or are priced in US dollars, lower dollar exchange rates mean cheaper equipment. This is one way that exports companies to maintain profit margins by reducing production cost through efficient machines. In the same line of thinking importing services also come cheaper than when the US dollar is strong. Whether obtaining services from the US, or from East Asia, where intelligent and skilled labor is cheap, outsourcing back-end process in export production always contribute to efficiency. Though this may result to redundancies, macro effects of outsourcing prove to be positive to the bottom line. Lastly, for businesses that amortize US dollar-denominated loans, there will be gains in the amortization payment because of the weakened dollar. Furthermore, during a round-table public forum in 2004, businessmen have suggested that the Canadian government consider lowering interests rates to match that of the US. Doing so will minimize the impact of loans on Canadian dollar-based denominations despite its appreciation. Imports The stronger currency benefits importers. Consumers and businesses benefit from a better Canada-U. S. exchange rate through less expensive imports from the U. S. The depreciation of the dollar lowers import costs and, more specifically, offers cheaper capital goods, making investment in new machinery and equipment in Canada cheaper. Canadian businesses import 80% of equipment and machinery, and with these imports now more affordable, a boost to business investment can be expected. However, some argue that with the loss of revenue, investments in new machinery and equipment would not be substantial.