The Change Integrated Resorts Industry Tourism Essay

The Change Integrated Resorts Industry Tourism Essay To find out the change that has been created by integrated resorts like Marina Bay Sands and Resort World Sentosa on Singapore from a tourism perspective To analyse the change created by integrated resorts like Marina Bay Sands and Resort World Sentosa on the Singapore economy To investigate how Integrated Resorts help Singapore compete as a brand with other countries To understand how in a short span of time since its opening has Marina Bay Sands become the face of Singapore. To analyse the challenges that Integrated resorts are providing to conventional hotels. HYPOTHESIS NULL HYPOTHESIS The entry of integrated resorts has created no impact on the Singapore hospitality industry. ALTERNATE HYPOTHESIS The entry of integrated resorts has created an impact on the Singapore hospitality industry. BACKGROUND OF THE PROPOSED RESEARCH BRIEF INTRODUCTION Any country that is emphasising on tourism has to focus till a great extent on hospitality and on hotels per say. The world hotel scenario has been changing rapidly and the countries are now starting to develop a competitive spirit so as to create a higher brand name for themselves as compared to other countries. In Singapore itself the hotel industry has a market size of US $ 4,047.9 mn. Now with the rise in global trends for both gaming and tourism the two industries have merged together and come out as one unit. This unit known as integrated resorts are holding on to the interest of many investors. Countries across the globe are investing in these projects. In the Asian market, integrated resorts have already entered areas like Hong-Kong, Macau, Thailand, Bali, Singapore, Vietnam etc. Singapore and all the other countries are in strong competition with cities like Macau which currently holds the maximum number of integrated gaming resorts. Singapore however is lagging behind with only two integrated resorts and is on par with Vietnam but behind major players like Macau, Cambodia and South Korea. In the year 2010 Singapore came up with two of its integrated resorts which were expected to create a change in the market scenario for Singapore in the future. These resorts were Marina Bay Sands and Resort World Sentosa. The reasons for them to come up with these resorts were as follows:- Since 1991 a change had been observed. Singapore which is a major tourist destination has seen a decline in tourist activities. Where on an average a tourist use to spend 4 days in Singapore before, it had now dropped down to 3days. While other major competitors had not seen the same fall. Like in the case of Hong-Kong that still showed an average of 4 days Other cities were growing their customer attractions like Kaula Lumpur got the Kaula Lumpur city center and Hong-Kong had Disneyland. The need to tap the rising middle class community in growing markets such as China and India. With growing levels of disposable income the global tourism rate had also seen a rise. Thus, the Singapore government decided to open two integrated resorts one at the bay sands area and one in Sentosa. For both these resorts they received a lot of bids. And finally the bids were narrowed down to Las Vegas Sands company for Marina Bay Sands and Genting group for Resort World Sentosa. Marina Bay Sands is a luxurious in all its aspects. It consists of 2600 hotel rooms, a four floor casino, a sky park consisting of infinity pool, gardens and spa and 250 meeting rooms which can accommodate upto 45,000 delegates. It also boasts of excellent restaurants and branded stores like Louis Vuitton to Chanel in their floating crystal pavilion. It also has a 200 seater theatre and an arts and science museum. On the other hand, the other integrated resort of Singapore- Resort World Sentosa is more family oriented. It comprises of six hotels- the festive hotel, hard rock hotel, Equarius hotel, Crockfords hotel, hotel Michael and spa villas. All these together make upto 1750 rooms. They also boast of 10 restaurants. It also has a spa, a water park, Universal studios and meeting rooms that can accommodate around 35,000 people. With both these resorts government hoped for an increase in investments and 0.3% to 1.8% increase in GDP by 2015. With this a rise in tourist activities was also expected. It was also expected to increase the job market in Singapore proving more employment opportunities. RATIONALE FOR THE CHOICE OF RESEARCH TOPIC The impact of integrated resorts after they have been opened to the tourists on Singapore has not been delved into extensively. The resorts have created a name for itself and become the recognition point for Singapore in a very short period of time. Marina Bay Sands has become the face of Singapore along with the Merlion and Singapore Flyer. Thus, we have chosen this topic as it has further scope of research. THEORETICAL FRAMEWORK IDENTIFICATION OF KEY CONCEPTS The project extensively belongs to the hospitality industrys hotel sector. We have further narrowed this topic down to integrated resorts. The basic topic of research is integrated resorts and its impact on Singapore. The two integrated resorts present in Singapore- Marina Bay Sands and Resort World Sentosa, have created a name for itself. They have become major tourist destination and sight-seeing spots for both the localities as well as foreigners. These resorts have won awards and have become brand icon for Singapore. The factors that have caused them to create such a change in the hotel sector of Singapore is what we want to understand. Further we want to understand, in detail, the expectations that were levied on this resort and what they have been able to achieve. Thus the key concepts that are relevant to this research topic are:- Introduction of Marina Bay sands and facilities provided by it: Marina Bay Sands is one of the most exquisite hotels in Singapore and it is well renowned for the variety of facilities that it provides. From a hospitality perspective, these facilities tend to make the place a very compelling one from the perspective of tourists. Some of these facilities include but are not limited to the Sands Sky Park which is an awe inspiring place that seems like an absolute paradise in the sky. Then there are banyan tree spas, club facilities as well as its well-equipped fitness centre. The airports pick up and drop service is very convenient for local as well as international tourists. A variety of brands make shopping at Marina Bay Sands an experience in itself. Last but not the least is the light show called Wonder Full which is a nice addition to what is already a terrific experience overall. Introduction of Resort World and facilities provided by it Business centre A unique blend of style and innovation is what describes the Business centre at the Resort World. The Business centre provides the following amenities Corporate meetings Press Conference Product launches Inmate dinner parties Banquets Swimming world The free form pool along with beach bar concepts decorated along the lines with the swaying palms provides a top of the line amenity system top notching standards of ordinary swimming experience in hotels. Additional features like volleyball court, vibrant music, and different choices of drinks and cocktails just bring the icing with the cherry. Gym A 24hr gym with glass and mirrored wall brings a vibrant change in the feeling of the working out. State of the art equipments makes the feeling of gym as fun rather than a task. Rock shop For all the rock lovers, the hard rock hotel provides band t-shirts, souvenirs that people can take back home, caps and pins. Compass ballroom With a seating arrangement of 7300 people and 26 conference rooms, the compass ballroom below the underneath the Hard Rock hotel is diamonds worth in every way. For a hotel to allocate such large space only for entertainment of the customers truly states how integration has truly coming into Resort world group of hotels. Kids Club Business Executives are not just the traditional males anymore. More and more females have started occupying space at the top of the level in the pyramid. The task of handling kids and attending business meets have always been a challenge for female executives or single fathers. Gaming zone State of the art gaming zone for game lovers to enjoy and play latest single player games, simulator based games. Casino Something that attracts more customers and brings the highest revenue to a hotel is the casino. Resort world provides one of the best and the latest structure casino floors. As the belief goes a game does not drive the player to gamble its the ambience that pulls them towards the table. Hotel scenario in Singapore before and after the entry of integrated resorts: As stated earlier, the entry of integrated resorts had made a major difference to the tourist experience at Singapore. The concentrated efforts of the Singapore Tourism Board have added a completely new dimension to the industry as a whole. Where at first there used to be single hotels and tourism was stagnant, now there exists a boutique of experiences that have magnified the beauty of Singapore. This transformation can be well indicated by the fact that the Singapore hotel industry wasnt even affected remotely by the global economic crisis. Economic impact created by integrated resorts With the opening of the Integrated Resorts in the year 2010, the yearly tourist arrivals hit an all-time high of 11 Million, with even monthly arrivals from January to December recording record highs. As of now, the MBS casino sees at an average 25000 customers a day, with only a third of them comprising of locals. Singapore managed to rake in 18.8 Billion Dollars via tourism receipts in the year 2010, which was its highest collection in 10 years. This was a 49% increase from the previous forecasts, a stupendous rise indeed. These receipts included the tourist expenses in the admission, dining and shopping areas. There has been an increase in visitors especially from countries like China, Indonesia and India. To conclude, one may say that the arrival of tourists has greatly affected Singapore and increased its revenues greatly. 60,000 jobs have been created in the integrated resorts industry leading to a 1 to 1.5% increase of the gross domestic product. Creation of brand image and adding value to Singapore brand The tourism industry has become a brand in itself over the years, and has played a critical role in the development of Singapore. Integrated Resorts have played a major role in this process, as the variety of services that they provide add to making Singapore a huge attraction to tourists across the world. It has become a thriving cosmopolitan brand that influxes a variety of people hailing from a variety of cultures. Singapore is an enriching an unforgettable destination. As the Singapore Tourism Board puts it, Singapore has become an experience to call your own. Challenges they are providing to conventional hotels The term Integrated Resort has become popular since the Singaporean Government liberalized their casino licenses and indicated that they want more than just a casino. Singapore envisioned integrated resorts with facilities such as hotels, theatres, convention centres, theme parks, museums, retail, and food and beverage in addition to a casino (MacDonald Eadington, 2008). The goal was to attract visitors to come to Singapore not just for gambling but also for other leisure travel experiences. Hence integrated resorts such as Marina Bay Sands and Sentosa have brought about a revolutionary change bringing everything under one roof. This has posed a problem to the conventional hotels in Singapore as they have not been able to generate business because of these resorts as customers would prefer the resorts with everything under one roof. The integrated resorts pose a major problem to the 5 stars in the same price range as these hotels have world class facilities which have contributed to the Singapore Travel and Tourism Industry. This is one of the main reasons because of which not many deluxe hotels are existent especially in Singapore as they know they would not be able to compete to these resorts. Integrated Resorts have been adopted from the Resort concept in Las Vegas. Las Vegas Sands, the extremely renowned company based in Las Vegas has built the Marina Bay Sands, hence the architecture, the infinity pool and the sky park are the main attractions which has not only helped to increase the number of guests checking in but also the footfalls in the casino, the sky walk area making Singapore one of the attractive tourism spots. It is directly contributing to a large extent to the economy. Hence the conventional hotels are not only in danger in Singapore but across the world and have to put in efforts to compete with the integrated resorts tactfully. Technological innovations that have entered along with integrated resorts The technological innovations that have made their entry via integrated resorts have been at the heart of the development of Singapore. These innovations such as the introduction of fitness centres, clubs, casinos and restaurants to the conventional hotels have made a major difference. These facilities were very popular even when they were available standalone, but their presence all together has added to the experience as a whole. The tourists have been attracted and they have truly made Singapore their own. DEBATES RELEVANT TO THE TOPIC Through our literature review that we have undertaken, we came across several counter arguments against the concept of integrated resorts. Both these resorts have casinos in them and there were a group of people who were very worried about the implications that would come up. They believed that this could cause gambling addictions which in turn could ruin families. Further the presence of casinos could cause an increase in crime rates. thus to counter this the casino owners created a rule in which Singapore citizens have to pay $100 for entry into the casino while for every other customer it is free. This has helped them counter the problem of gambling addiction and did not even increase the crime rates till a great extent. Another argument that we came across was that with the entry of integrated resorts traditional hotels will lose its charm. And the authenticity of hotels will be lost. The purpose will change and the traditional beliefs will no longer hold true. They did not view it as a new era in the hotel business but as a negative change. COMPONENTS OF THE RESEARCH TOPIC AND THEIR RELATIONSHIP The components of this research topic that we have identified so far include: Number of tourists Length of stay of the tourists Political factors such as the relevant stability existent in the country Types of tourists Technological growth in the e-commerce sector Types of facilities available IDENTIFICATION OF LITERATURE TO BE REVIEWED The literature reviewed ranges from the time period of when the concept of integrated resorts was initialised and the factors that led to it to when it was being built and what was expected from it to the after effects of it. The literature review also comprises the global trends in hotel industry, the tourism statistics and some acts about integrated resorts in general. The review comprises of all these as they are apt with the research topic and help us gain insights as well as better our understanding. they will give us a base to conduct our further research and not do what has already been done. INITIAL DESIGN OF STRUCTURE The design of structure or the outline that we are going to follow while going ahead with our project is as follows Introduction to industry Introduction to integrated resorts Introduction to Marina Bay Sands Introduction to Resort World Sentosa Literature review Survey and questionnaire to tourist and citizens Personal interview with management of both the resorts Personal interview with industry experts Factor analysis and detailed study on factors Data compilation and analysis Regression analysis Hypothesis testing Conclusion IDENTIFICATION OF METHODOLOGY PURPOSE OF STUDY The project will initially be exploratory in nature with extensive review of literature and available data followed by certain amount of data collection. However, after which we will move towards descriptive research to get more conclusive results. This is because exploratory research will help us create a strong secondary research background and also help us understand the previously proven and explored data in this topic area.it will help us become more familiar with the area of interest and gain more knowledge on the same. It will help us understand the working of hospitality industry in Singapore which has a very unique working style and has created a name for itself with respect to tourism. As well understand the impact that the introduction of integrated resorts caused on this countrys economy and popularity. With the help of descriptive research we will be able to achieve definite conclusions on the impact that the integrated resorts has on the tourism of Singapore. Primary data collection will be undertaken here. This way we will be able to get factual data in order to provide proof for our conclusion. METHODS OF DATA COLLECTION The methods of data collection that we are using are:- COLLECTION OF SECONDARY DATA We are collecting secondary data from various sources which involve both libraries as well as online data bases such as EBSCO, Euromonitor and Google Scholar. We are going through previous research paper, published articles, academic articles etc. with the help of these we have been able to find trends in the hotel industry globally as well as in Singapore, We now have insights into how integrated resorts have impacted not only Singapore but the rest of the world as well. We have even been able to understand why Singapore decided to come up with the concept of integrated resorts and the various factors that were considered. We came across datas that showed us what was aimed to be achieved with the help of integrated resorts and what has been achieved as well. With further secondary data collection we hope to find deeper insights into our topic as well discover how Marina bay sands became the face of Singapore within such a short span of time. The advantages of this method are:- It will help us improve our understanding of the impact integrated resorts ad on Singapore It will help us gin insights into this topic It will help fill out all unnecessary gaps that will arise in our research It will provide us with a base to further our research on The disadvantages of this method will be:- It is a very extensive and time consuming work Data found is generally not very apt or relevant Data found can be outdated INTERVIEW METHOD With the help of following the interview method we are going to personally speak to some industry experts as well try to get in touch with the staff and management of the two integrated resorts of Singapore- Marina Bay Sands and Resort World Sentosa. We will also Interview a few customers staying at both these hotels, members of travel agencies as well as a few Singapore residents. With this we aim to get first hand information on the integrated resorts and Singapore. We will know what are the point of views of different people who are affected by the introduction of these resorts so as to gather a full proof analysis on the different impacts created positive as well as negative. The advantages of this method are:- Accuracy level increases Likely to get more response Opportunity to judge non-verbal communications as well Will be able to tap the spontaneous responses. The disadvantages are:- Cannot be undertaken for a large number of respondents Can turn out to be very expensive and time consuming There may be restrictions in terms of information revealing and responding from the respondents end QUESTIONNAIRES We are going to create questionnaires consisting of 10-15 questions that will be distributed amongst tourists and localities in order to gather their view point on the arrival of integrated resorts in Singapore and its impact on the country in order to find out how they view this change which has come up in the past 5 years. The advantages of this method are:- Large amount of data can be collected from a lot of people within a short span of time. Easily quantifiable results The validity and reliability is retained no matter who conducts it. The disadvantages are:- Can lead to the collection of a very large un-manageable amount of data. Honesty of the respondent cannot be determined A question has to be framed in such a way that it is not misinterpreted by others. PROCESS INVOLVED IN THE RESEARCH STEP 1 LITERATURE REVIEW The first step is going to be to review the literature that has been previously been conducted which is relevant to our topic and which both support and counter our hypothesis. We also want to review the literature that shows us the positive and negative impacts that integrated resorts have on the hospitality industry of Singapore. This has been discussed in more detail in the identification of literature to be reviewed section of this proposal. STEP 2 DATA COLLECTION The data for literature review is basically being sourced from National Library of Singapore, other libraries, EBSCO database and Google Scholar. At this step a base will be created for our project and will thus help us create a framework. After which we will be collecting data directly from sources by taking and interacting with individuals associated with entry of integrated resorts. Further we will also try to gather view points on how the entry has changed the face of hospitality in senses like amenities, technologies etc. we will also try to understand from these people what are the changes that have been taking place since the entry of integrated resorts. Then we will try to collect data from sources from industry specialist in order to get statistics, figures and numbers. STEP 3 SAMPLE SELECTION The primary focus for interview and questionnaires are going to be to the employees and management of the integrated resorts, industry experts and members of hospitality industry. However we even want to gather information from general public. This shall comprise of a) tourists and b) Singapore residents. Tourists the tourist will be selected in two parts, customers of the hotel and other tourists. The respondents in each category will be selected using the cluster method of sample where members with similar characteristics are grouped together. Singapore Residents the respondents will be selected with the help of cluster analysis. The minimum no of respondents that will be taken into consideration is 70. TIME SCALE December 2012- submission of literature review and review of atleast 20 articles Jan 2013 starting of field work and further literature review Feb 2013 compilation of interview and questionnaires March 2013 preparation of final document and covering objectives April 2013 presentation and defence of resear LIMITATIONS IN THE METHODOLOGY The limitations that are present in the methodology are:- Accessibility to the management of Marina Bay Sands and Resort World Sentosa. Accessibility to the industry experts Low knowledge of respondents Likelihood of low response rate Limited availability of literature review ETHICAL ISSUES Objectivity from the researchers perspective. The interviewer and researcher should not be bias about the respondent or the answers provided. Maintenance of integrity and confidentiality of the data provided by the management and industry experts. Respect for intellectual property right like patents and copyrights. DATA ANALYSIS METHODS USED There are a variety of methods that can be used in order to carry out a detailed data analysis of our proposed project: Regression modelling We can use this model in order to establish a relationship between a dependent and an independent variable. This model is being applied mainly due to the decline in the tourism industry in the years 2005 and 2006. To create this model, the dependent variable in this case will be the number of tourists entering Singapore in a particular year and the independent variables will be a variety of factors affecting these tourists such as the amenities provided, sightseeing locations, and cultural diversity. Hypothesis Testing The null and the alternate hypothesis have already been stated in the previous sections of this proposal. Hypothesis testing will help us determine whether the integrated resorts development has played a critical part in increasing the number of tourists in Singapore. Factor Analysis Factor analysis basically involves combining a variety of factors in order to shorten down the number of factors affecting the tourism industry in Singapore. The Regression analysis will help us analyse the relationship between these factors and the number of tourists, whereas the Factor Analysis will help us to identify these factors in the first place. The factors in this case will probably be limited to 5 or 6 in order to get a generalized viewpoint. The number of factors may be shortened down from as many as 30, which we will generate from our own knowledge, our primary as well as our secondary research. CONCLUSION We took up this project expecting to find a significant change in consumer behaviour and interest generated in Singapore as a tourist destination created by these two brands Marina Bay Sands and Resort World Sentosa. We believe the concept of an integrated resort will appeal more to the growing number of upper middle class masses in quickly growing economies like India, Singapore and many other Asian countries. While neighbouring cities like Macau, Vietnam, Hong Kong, Kuala Lumpur and Thailand have long since invested in contemporary tourist destinations, Singapore has consistently lost ground to these competitors due to lack of innovation in the tourism industry. We believe these two integrated resort projects will put Singapore back on a level playing field with its competing tourist destinations and we hope to prove that through this project. Additionally, we also believe the collaboration between the hospitality and gaming sector will have a major impact on the citys economy. The resorts are likely to open up several new auxiliary industries and benefit the country in several indirect ways. We hope to prove how these integrated projects will create several new employment options and also allow the locals to develop a certain degree of specialized skill set which will make their value grow in the global market. This in turn is expected to increase the national GDP as more employment will eventually lead to a higher per-capita income which in turn will raise the standard of living amidst the locals and increase the sense of belonging and create a better lifestyle. We also believe that this collaboration between the gaming (Casino, Universal, etc.) and the hospitality industry will lead to an increased level of interest from a wider category of tourists. While so far Singapore was known more for its shopping avenues and tourist spots like Orchard road and Bugis street, people will also start perceiving the city as a gaming destination.

An Export-Led Growth Strategy: Pakistan Essay

This essay makes no pretence to offer a novel concept or a new development strategy and most economists reading it will probably stifle a yawn and turn the page. Yet it is a subject worth talking about. Many countries round the world, most notably the former Asian Tigers, China, Brazil, Turkey and more recently India have followed such a strategy with great success. Pakistan has not and it is well to ask why and what we can do about it. Pakistan has never had a consistent, coherent and well-articulated export-led growth strategy. Indeed, exports are often treated as a residual, an after-thought, once the domestic market has been filled. This is inexplicable given our persistently large trade deficit which has not been reduced over time and we have difficulty financing it (filling the gap) each year. Economic growth has at various times been driven by either the public or private sector or more recently – and most disastrously in the previous government – by consumption which created dangerous asset- price bubbles in the domestic economy, led to overheating pressures and a surge in inflation and imports. Economic growth has never been driven by exports nor has building a dynamic export sector been at the forefront of any government’s economic strategy. While the large-scale manufacturing sector in Pakistan is the focus of policy attention not least because it has a powerful lobby, it is the tip of the manufacturing (and export) sector ice-berg. It is the small and medium-enterprise manufacturing (SME) sector in Pakistan that generates four-fifths of our manufacturing output, employment and exports. Sustained and focused policy-driven growth in this sector with its strong forward and backward inter-industry linkages is the kind of -inclusive- growth that Pakistan urgently needs. With labor-input a large component of capital and output, rapid SME growth has important positive implications for wages, employment, living standards and the goal of poverty alleviation. Why Pakistan has shied away from adopting such a strategy is not clear. Of course every now and then there is much bluff and bluster about boosting exports and grand plans to contain our external deficit and debt. Since the government is busy giving â€Å"top priority† to everything, the priority that should be given to exports is drowned amid the â€Å"noise† of the many – and often contradictory – pronouncements. Perhaps the first reason for not paying sufficient attention to the SME sector – and an incredible one at that – is that we don’t know much about the SME sector despite its size and importance in the economy. We have large bureaucracies dealing with SME in all provinces but it is unclear what they do. Surveys of activity this sector are taken in -frequently, sometimes as far apart as 15 years, and a inter-survey growth rate is calculated which is then put into the National Income Accounts and repeated year-after-year until the next survey. The real growth rate of the SME sector has been fixed at as low a figure as 2. 5% per annum. The present fixed rate is 7. 5% per annum. But what is really happening in the SME sector in the inter-survey years no one knows except through crude methods of linear interpolation. If there is no information and just a fixed assumed growth rate with fixed and outdated coefficients for employment and capital, there can be no meaningful strategy of export- led growth in the SME sector to begin with. The second reason could be that we don’t like to talk about exchange rate policy except in whispered conspiratorial terms. Maintaining a -stable† exchange rate is always thought to be a reflection of how well economic policies are being managed. Governments frequently interfere with exchange rate management issues and demand that the exchange rate is kept -stable. † An appreciating exchange rate is greeted with applause. Devaluation is always bad. Nominal â€Å"exchange rate stability† was one of the highly –touted achievements of the Musharraf years even though no one was noticing that Pakistan’s export to GDP ratio was falling (along with our notoriously under-performing and falling tax-to-GDP ratio). This presented prima facie evidence that export profitability was most probably being compressed and the authorities should have done something about it. But given that we were in an era of plentiful aid and other capital inflows there was no pressure on government to do much either on the export or the tax front. Added to the conspiracy theories, there is a widespread view that exchange rate devaluation which for exporters means more rupees earned per dollar exported, has no effect on export performance. The reality is more nuanced and worthy of some elaboration. There are fairly long lags between exchange rate depreciation and the response of exports. It takes time to gear up production to the new level of export profitability. Furthermore, for devaluation to impact exports in a positive way, the exchange rate must depreciate in â€Å"real,† rather than only â€Å"nominal,† terms, that is, the extent of depreciation (or increase in nominal export profitability), of say 10 percent, must exceed the going rate of domestic inflation, say 7 percent. Exports respond to increases in real profitability (in the above example the real increase in export profitability is 10 percent minus 7 percent = 3 percent, not just the nominal change in profitability, 10 percent). If the extent of devaluation is offset, or more than offset, by higher inflation because macro policies are insufficiently tight and there is cost-push inflation, there will be no stimulus to exports because there is no, or perhaps even a negative, change in real export profitability. Importantly, any increase in real export profitability needs to be sustained if the stimulus to exports is to be lasting. If exporters see that the improvement in real export profitability is likely to be fleeting and will dissipate through future inflation, or a change in government policy, they will have little incentive to export and would prefer to sell in the domestic market. Given the concentrated, oligopolistic structure of industry in Pakistan and the high-levels of protection afforded to producers in the domestic market from foreign import competition, real profitability in the domestic market can be very high, often a multiple of what can be earned in the export sector. In Pakistan this has been a strong disincentive to produce for exports. This brings to the foreground a â€Å"second-order condition† for a successful export drive. Even if there is a real increase in export profitability, the much higher real profitability levels, or â€Å"monopoly rents,† that can be earned in the domestic market will induce firms to sell domestically, eschewing exports. Worse, firms may actually switch back to selling in the domestic market and cease exporting altogether as the differential between domestic profitability and exports rises. Of course, a judicious application of trade, tax and tariff policies and other incentives can help countries achieve an incentive structure more favorable to exports. Many countries that are more aggressive with their export drive actually tilt profitability sharply towards the export sector and ensure it is sustained. The importance of establishing an incentive structure favorable to exports is underscored by the fact that exporting, per se, is a challenging task. Not only are quality requirements higher, strict adherences to, for example, packaging, labeling, and hygienic standards is essential. One often hears of Pakistani exports being banned in foreign markets because of our failure to adhere to high standards. Competition from other countries selling in the same market is intense; price wars and dumping can be ruinous, and there are tariff and non-tariff barriers and complex procedural regulations in the importing country that have to be negotiated and complied with. These â€Å"non-price† determinants of exports can be of significant importance. While price and non-price factors interact to determine competitiveness, exports also respond to export market income growth. The magnitude of the response of exports to income growth is the â€Å"income elasticity of demand for exports† which generally reflects the country’s export mix. Given the commodity composition of Pakistan’s exports, dominated by low-value textiles such as yarn and cloth, the income elasticity of our exports is not large, perhaps even less than unity (or less than one). This means that for every one percent increase in export market income growth, our exports respond by less than one percent. This less than â€Å"unitary income elasticity† of our exports explains why Pakistan’s export market share has lagged behind the growth in global income and trade. By contrast, in the more dynamic exporting countries, the income elasticity of exports of their higher-value added products can be as high as four or six and these countries have made impressive strides in expanding their global market share. Many countries use the exchange rate as a weapon of export competitiveness, most prominently China, where the exchange rate is kept artificially depreciated (by some calculations by as much as 42% but now down to 24%), when China’s massive trade surpluses with other countries, most notably the US, and even more massive foreign exchange reserves (presently $2. trillion) would point towards a policy of gradual appreciation of the currency that would slow down the torrid pace of China’s exports and pull in more imports driven by domestic demand. In doing so, China’s massive trade surpluses would start to diminish, and with other surplus countries adjusting in a similar manner, the global economy would be better balanced. According to a recent estimate a 20% appreciation of the Chinese currency would cut $150 billion off the US trade deficit with China and create 1 million US jobs by making US exports more competitive. Pakistan needs to change the commodity composition of its exports, add new higher value products for export and look for new export markets. After 62 years we still export the same products of largely unchanged quality to the same markets as reflected in the estimated â€Å"Commodity Concentration Index† of our exports which has remained broadly unchanged. We have made little progress in moving up the -value-added chain† and getting better unit prices for our exports. One study showed that the unit price our exports can be as low as one-third of the unit price other developing exporting countries earn for the same product. The unit price of our exports of garments, for example, was lower than the unit price received by exporters in Bangladesh for the same garments selling to the same market. This is a distressing fact since it shows the Is there any empirical econometric support to the view that the real exchange rate matters? There have been a surprisingly few studies done in Pakistan given the importance of the subject (most of the studies have been done by the World Bank, Asian Development Bank and the IMF using Pakistani data). These studies do point to a strong and fairly robust relationship between the real exchange rate and exports. Of course, other factors too contribute as explanatory variables such as world income growth. The lags between real exchange rate changes and real exports mentioned earlier need to be carefully specified to get a better â€Å"fit† of the predictions of the econometric model to the actual data. Other than these models which are probably out-of-date, the projections that are made each year in the context of our export targets are based on what can be termed â€Å"casual empiricism. The government iterates to a target figure for each export commodity based on discussions with trade bodies and simply extrapolates by using an agreed compound growth rate from a given base-year figure. There is no rigorous forecasting model which specifies explanatory variables that underlies the export targets. To sum up, Pakistan needs more information and better information on what is going on in the SME sector from which most of our exports emanate. It will be costly since the SME sector is widely dispersed but the benefits would more than justify the cost of more frequent surveys of the full population of the SME sector, say every three years with smaller sample surveys taken each year so as to build-up a time-series profile of the dynamics of the SME sector. External donors would be more than willing to finance such a survey (s) with grant (non-debt-creating) funds if Pakistan can present a credible plan. The decision by the US to give $100 million to the SME sector could portend a new beginning for the sector but one has misgivings about the administrative and technical capacity of the SME establishment and whether they can or will deliver meaningful results. Discussion of the appropriateness of the exchange rate and how domestic inflation and relative inflation affects export profitability, the difference between nominal and real exchange rate, the overall conduct of exchange rate policy, and different exchange rate regimes followed by more successful exporting countries, needs to be more transparent, up-front and better understood. The point to drive home is that the real exchange rate does matter and is an important – albeit not exclusive – determinant of lasting export success. It is the most important price signal in any economy. The incentive structure needs to tilt towards exports versus selling in the domestic market through judicious adjustment in trade, tax, finance and tariff policies. Special, selective incentives should be given to exporters, especially new exports which should not be available to producers selling in the domestic market within of course the ambit of WTO rules. To prevent abuse of these incentives they should be tied to performance and withdrawn if performance is not forthcoming as measured by, say, actual exports in the previous three years. If this â€Å"tilt† is sustained, new exports will emerge of products and from sectors previously un-thought of A look at the rag-bag category of â€Å"Miscellaneous Exports† in the export data turns up some surprising high-value items that Pakistan exports (some to very sophisticated markets in Europe) but the amounts are small and their year-on-year growth is erratic. Since there is little targeted encouragement given to these new exports, they usually fade out of the export picture altogether. If there is no domestic market that they can turn to, these firms shut down. In both cases, Pakistan has lost a potential export item and valuable foreign exchange something that we can ill-afford. Focusing on fostering growth in these high-value exports which emanate from the SME sector would improve the export mix, diversify the export base, reduce the commodity concentration of our exports and increase the income elasticity of demand for our exports in world markets. The non-price determinants of exports need to be strengthened through emulating â€Å"best-practice† techniques employed by the leading exporters of the world. This is not rocket-science since most of the â€Å"best-practice† techniques can be gleaned from the internet. Furthermore, domestic investors and FDI proposals that are aimed at exports should be given the highest priority and placed on a fast-track of approval. FDI inflows offer the best route to securing structural shifts in the technological progress function in the SME sector while at the same time bringing in better managerial and marketing skills which are so critical in exporting. Enhancing productive efficiency in the SME sectors means being able to offer higher wages in line with productivity improvements which would lead to higher living standards and poverty levels dropping to the teens as demonstrated by the remarkable success of other exporting countries. As productivity growth responds to output growth (as in the P.  J. Verdoon and Kaldor models which inverts the causality of neo-classical models of Solow and Swan) with output growth being driven mainly by net exports as would be the case in an export-led development strategy, static and dynamic economies of scale can be reaped through the process of â€Å"Learning-by-Doing† as espoused by the US economist Kenneth Arrow in his path-breaking work. Such dynamic economies of scale and increasing returns can generate positive cumulative circular causation effects that impact costs, prices and profitability in the export sector.

Much Ado About Nothing Essay

Much Ado About Nothing–the title sounds, to a modern ear, offhand and self-effacing; we might expect the play that follows such a beginning to be a marvelous piece of fluff and not much more. However, the play and the title itself are weightier than they initially seem. Shakespeare used two other such titles–Twelfth Night, or What You Will and As You Like It–both of which send unexpected reverberations of meaning throughout their respective plays, the former with its reference to the Epiphany and the topsy-turvy world of a saturnalian celebration, and the latter with its implications about how the characters (and the audience itself) see the world in general and the Forest of Arden in particular. Much Ado About Nothing is no different, but we do not pick up the deeper resonances as quickly as an Elizabethan would, simply because of a shift in pronunciation. We get our first real glimpse of the pun in the title when Don Pedro says, â€Å"Note notes, forsooth, and nothing!† (The Complete Signet Classic Shakespeare, ed. Sylvan Barnet, New York: Harcourt Brace Jovanovich, Inc., 1972, 2.3.57). As A. R. Humphreys explains, â€Å"That ‘nothing’, colloquially spoken, was close to or identical with ‘noting’ is the basis of Shakespearean puns, especially in a context of musical ‘noting’. A similar pun, though non-musical, is conceivable here† (Introduction, The Arden Shakespeare: Much Ado About Nothing, London and New York: Methuen, 1981, 4). The play is, in fact, driven by the â€Å"noting† of scenes or conversations and the characters’ reactions to these observations; â€Å"noting† seems to be the thematic glue that binds the various plot elements together. When he wrote the play in 1598, Shakespeare assembled the Hero-Claudio plot line from bits and pieces of Ariosto’s Orlando Furioso (Canto V) and Spenser’s The Faerie Queene (Book II), and added details about Claudio and Don Pedro from Bandello’s La Prima Parte de la Novelle (Novella 22). For the characters of Beatrice and Benedick, Shakespeare drew not so much on a specific story or plot as on the tradition of wit combat and characters from his own earlier comedies; these two characters can be seen, in fact, as wittier and more mature versions of Kate and Petruchio from The Taming of the Shrew. Dogberry and Verges also have no clear literary source, but seem instead to be taken from Shakespeare’s England. (For a detail ed discussion of Much Ado’s sources, see A. R. Humphreys’ introduction to The Arden Shakespeare: Much Ado About Nothing, London and New York: Methuen, 1981, 5-25.) These  characters, different though they may be, mesh together (and frequently clash) through their observations, chance overhearings, and deliberate eavesdroppings. The first sign of this comes early in Act I. When Claudio asks Benedick what he thinks of Hero, Benedick responds, â€Å"I noted her not, but I looked on her† (1.1.158). It becomes increasingly clear that they see in Hero two entirely different people. To Claudio she is â€Å"a modest young lady,† â€Å"a jewel,† and â€Å"the sweetest lady that ever I looked on (1.1.159, 175, 181-2). But to Benedick, â€Å"she’s too low for a high praise, too brown for a fair praise, and too little for a great praise† (1.1.165-70). This is, as John Wilders â€Å"notes,† â€Å"a play much concerned with the ways in which people perceive one another, with our tendency to see in other people whatever by character and experience we are predisposed to see† (New Prefaces to Shakespeare, Oxfo rd: Basil Blackwell, 1988, 147). So we must consider that Claudio is describing what he sees through the hazy mists of romantic attraction, and that Benedick (whatever he may say) is analyzing her through the mask of â€Å"a professed tyrant to their sex† (1.1.162-3); neither of them may be seeing Hero as she really is. Claudio, however, has an unfortunate tendency to believe exactly what he sees, and his eyesight proves more powerful than his faith in Don Pedro and his love for Hero. When Don John, in his first bit of mischief, suggests to Claudio that Don Pedro is courting Hero for himself, Claudio (despite his knowledge of the wooing plan and his friendship with the prince) takes what he sees for truth. And he is not convinced otherwise until the Don Pedro actually hands Hero over to him. Benedick also believes what his eyes show him: â€Å"The Prince hath got your Hero†¦. But did you think the Prince would have served you thus?† (2.1.189-90, 193-4). But Benedick, at least, may be excused by his ignorance of Pedro’s intent to woo in Claudio’s name. This excuse cannot be made for Claudio; he seems more willing to trust what he sees rather than what he believes in his heart or knows in his mind to be true. It is this quality that enables Don John to convince Claudio that H ero is unchaste; so when Claudio sees Margaret, impersonating Hero, in intimate conversation with Borachio, he disregards what faith (if any) he had in her, abandons his earlier observation that she is â€Å"a modest young lady† (1.1.159), and determines to shame her at the marriage ceremony. In his relationships with Don Pedro and Hero, visual proof (in both cases provided by a thorough-going  villain) takes precedence over previous experience. Eyesight, however, is not the only deceiving sense; hearing is also included in the play’s treatment of â€Å"noting.† At the beginning of 2.1, we learn that one of Antonio’s servants happened to overhear Claudio and Don Pedro making plans for the winning of Hero, but the servant must not have heard the conversation in its entirety because he runs to Antonio with the story that Don Pedro means to court Hero in earnest. Auditory observations can apparently be just as unreliable as visual ones. Borachio, perhaps a more adept spy, also overhears Claudio’s and Don Pedro’s conversation, but he comes away with a more accurate version of the plan (2.3.56-61). The next eavesdropping scene, carefully engineered by â€Å"the love-gods† (2.2.382) for the gulling of Beatrice and Benedick, is yet another demonstration that what we see and hear is not necessarily what is. Just as Don John and Borachio create an event to deceive Claudio, Don Pedro and his c onfederates act out a scene for Benedick, and Hero and Ursula do the same for Beatrice. The quarrelsome couple believe what the â€Å"love-gods† say because on some level it’s true and because Beatrice and Benedick want to believe that each is in love with the other. In the same way that we see what â€Å"we are predisposed to see† (Wilders 147), we also hear (and believe) what we are predisposed to hear. The final (and perhaps most important) overhearing connects the comic subplot of the constabulary with the world of Don John and Don Pedro. Despite their lack of sophistication and their abuse of the English language, Dogberry, Verges and the rest of the Watch discover Don John’s plotting and manage to sort out the confusion created by the aristocrats. â€Å"Much Ado is,† as John Wilders says, â€Å"a play about ‘noting’, about the various and conflicting ways in which we respond to and judge other people† (147). It is about the flexibility of reality–our ability to manipulate what other people observe and o ur occasional tendency to let biases influence our perceptions. And finally, it is about the inadequacy of â€Å"noting† the world with eyes and ears only, and the importance of relying on one’s experience with and consequent faith in other human beings. Much Ado is all this, and marvelous comedy too.

Kfc And Its Impact On The World s Most Prevalent Chicken...

However, Fried is like almost everything throughout KFC, the primary course from the menu in KFC is really browned chickens. KFC has been sued by the Center for Science in the Public Interest (CPSI), accused of the sustenance contains stunning whole of Trans fat. In one three-piece chicken combo supper contains 15 grams of Tran’s fat, which is over the breaking point that a man ought to have in one week. These Trans fat is really hurting shopper s wellbeing, KFC as the world s most prevalent chicken fast food chain, their unethical behavior has impacted generally against their clients. It is a genuine ethical dilemma that exists throughout KFC. (Aggarwal, 2015) Managerial ethics is an arrangement of standards and guidelines directed by upper administration that characterize what is good and bad in an association. The rule aides coordinate bring down supervisor s choices in the extent of his or her employment when a contention of qualities is introduced. 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