Commodity Risk Management Essay Example | Topics and Well Written Essays - 4000 words

Commodity Risk Management - Essay Example Commodities with higher price volatility subject the consumer or the producer to greater probability of incurring loses or attaining gains on the future sales and buying of the product. Commodities with greater share in enterprise earning or production costs are faced with greater exposure to price risks. Various commodity risk management instrument are available and are mostly used by large producing firms, large consuming firms, trading firms, marketing firms or departments and other business ventures. The current market trends have led to the limitation of middlemen and traders and the transactions between the producer/ manufacture and final consumer have increased considerably. When the world commodity prices fall, the producer is at risk as he is not able to cover for his production costs. Also, a commodity dealer who buys products and keeps them in a warehouse is faced by the risk of not recovering his original purchasing costs. Those who process the goods are faced by double r isks due to the inputs and outputs. The final consumer only experiences the problem of increased prices. Price risks also affect traders, importers and exporters (Rutten and Blarel, 1996) The are several methods that are adopted for the management of commodity price risks, These include the adoption of marketing strategies that help time sales and purchases, Forward contracts, futures long term contracts, the use of over the counter markets. Commodity linked bonds and the use of swaps (Kolb, 1991).The choice of the instrument to use is difficult as the over the counter market is not open and transparent. The price determination depends on the bargaining strength and the availability of vital information. There is also the counterpart risk if he fails to fulfill the obligations imposed on him. Types of instruments used Forwards contracts; this involves the formation of an agreement to deliver a given quantity of goods at a given future date. The agreed forward price is paid when the product is delivered. The contract contains the price of the commodity and the quantity specified for delivery at a given date in the future. The 'long position' or the buyer receives the commodity and pays the forward price and the 'short position' or the seller delivers the commodity (UNCTAD, 1998). Futures contract: this is an agreement to deliver a given commodity in the future. The price is paid at a specified future date and at a future price payable at the time of delivering the commodity. They differ from the forward markets since they are 'marked to the market' this means that the contracts are settled each trading day. Future prices are either greater or less than the forward price. Due to the evaluation of the prices per given trading day, future contracts are usually preferred. Forward contacts are usually traded in exchanges. Futures may require settlement on daily basis if the are market to market. They are safer because the clearing house guarantees the fulfillment of the contract terms by all parties (Morgan, 1992) Cash market The behavior of most commodities in the market is determined by the cash and storage markets. The term spot price is used to refer to the immediate purchase of commodities. That means the products are bought and delivered at that time. The cash market is greatly

Organizational Ethics Essay Example | Topics and Well Written Essays - 750 words - 1

Organizational Ethics - Essay Example External social pressures have both positive as well as negative impact on the ethics of an organization. The social expectations are meant to be given more importance by the company as this leads to better performance or downfall of the company. These social pressures are such that it bounds a company to give special consideration to the expectations of the society in terms of involvement in general community or performing responsibility towards the environment. The positive impact of this social pressure is that it enables a firm to work for a cause and deliver the best of services to its customers. As in the case of 21st Century Insurance where the main focus of the management is to meet the demands of their customers so that they work for the well being of their customers. On the other hand the negative impact of such external social pressures is that it greatly affects the decision making process and enforces the management to take decisions or take certain factors into account which currently was not being planned by the organization. This negative impact has been observed in the case of 21st Century Insurance where it had to implement strategies so as to meet the social expectations. ` The concept of ethical approach is essential in organizational or personal context as it helps to resolve many issues. The major factor of its importance is that it helps to design a framework within which an organization can operate. It even facilitates decision making process through its proper guidance in terms of analyzing what is wrong and what is right. The external social pressures help an organization to understand the expectations of the society and the responsibilities that they have towards the society so as to enhance the overall societal improvement. The decision making process gets simpler through these issues as it enables an individual to understand the

Macroeconomics...........case5 Case Study Example | Topics and Well Written Essays - 250 words

Macroeconomics...........case5 - Case Study Example Economist Paul Collier, of Oxford Univesity in England, has examined what went wrong with these â€Å"trapped countries.† Based on decades of research, he identifies some poverty traps. About 750 million people of the bottom billion have recently lived through, or are still in the midst of, a civil war. Such wars can drag on for years with economically disastrous consequences. For example, the ethnic conflict in Burundi between the Hutus and the Tutsis has lasted three decades, which helps explain that country’s poorest-in-the-world ranking. Unfortunately, the poorer a country becomes, the more likely it is to succumb to civil war. And once a country goes through one civil war, more are likely. Ethnic conflict, or civil war, is Collier’s first poverty trap. But why, aside from poverty itself, are so many sub-Saharan countries mired in civil war? He finds that three factors heighten the risk of such conflicts: (1) a relatively high proportion of young, uneducated men with few job prospects (who, thus, have a low opportunity cost); (2) an imbalance between ethnic groups, with one tending to outnumber the rest; and (3) a supply of natural resources like diamonds or oil, which both creates an incentive to rebel and helps finance that rebellion. The presence of mineral wealth in an otherwise poor country can also undermine democracy itself. Government revenue from mineral sales reduces taxes, which dampens public debate about how taxes should be spent. For example, because of oil revenue, the Nigerian government relies less on taxes, so there is less pressure for government accountability, and hence fewer checks and balances on a corrupt government. Thus, misuse of resource wealth is Collier’s second poverty trap. About 300 million o f the poorest billion live in countries that have fallen into this trap. This leads us to the third poverty trap: a dysfunctional or corrupt government. Government

Commemorative speech on Princess Diana or Presentation

Commemorative on Princess Diana - Speech or Presentation Example The outrageous, unusual and fascinating life styles of princesses have always been under limelight. But it’s not at all easy to spend a life of legend. One such example is Princess Diana. She was a kind hearted, devoted and loving woman. As I overview her life, I realize the importance of her role as a magnificent Princess and an icon. She was a perfect mother of Prince William and Prince Harry and a devoted Princess of Whales. As I go through the kaleidoscope of her life, the most prominent feature of her personality which enhances our emotional attachment with her is the heighted sense of serving. Although the kind lady had an iconic presence on the world’s stage still she never ignored her routine of visiting schools, nurseries, hospitals and other public places. She soon became the lovely lady of her people who was involved in charity work. The charismatic and donated lady’s efforts for land mining were appreciated worldwide. Her role for the AIDS sufferers w as highly admired by the public. It was her biggest achievement. She succeeded in realizing people that contact with the patients was risk-free by shaking hand with them. Whenever you need a compassionate buddy, she was there to help and console. She said: â€Å"Nothing brings me more happiness than trying to help the most vulnerable people in society. It is a goal and an essential part of my life - a kind of destiny.

The But for test Essay Example | Topics and Well Written Essays - 2000 words

The But for test - Essay Example Such pandects believe that as far as justice is concerned, one person should not be the reason for other person suffering injuries or any physical calamities and so as long as the law can proof that but for the defendant’s action, the complainant would not have suffered, the defendant should be made to face the full damages caused. The other school of thought also hold the idea that laws are meant to be amended and changed to suit the human society. For this reason, they see nothing wrong with logical changes that arise from the need to protect the larger interest of society. With such two schools of thought all seeming to have some point to prove, the discussion and conclusion of the paper would bring one of the schools of thoughts higher to the other. How Fairchild (2003) have affected the original application of the ‘but for’ test The Fairchild (2003) emanated from the case, Fairchild v Glenhaven Funeral Services Ltd [2002]UKHL 22. In the case, the wife of Mr. Fairchild was seeking justice for her husband, who had worked for different employers, who had all, in one way or the other negligently exposed him to asbestos. Since Mr. Fairchild died as a result of suffering pleural mesothelioma, Mrs. Fairchild was actually suing the employers for negligence. As far as the ‘but for’ test was concerned, her major claim was that ‘but for’ the exposure that her husband suffered at the hands of the different employers, her husband would not have died. But there was going to be more than just this contextual assumption.... as long as the law can proof that but for the defendant’s action, the complainant would not have suffered, the defendant should be made to face the full damages caused. The other school of thought also hold the idea that laws are meant to be amended and changed to suit the human society. For this reason, they see nothing wrong with logical changes that arise from the need to protect the larger interest of society. With such two schools of thought all seeming to have some point to prove, the discussion and conclusion of the paper would bring one of the schools of thoughts higher to the other. How Fairchild (2003) have affected the original application of the ‘but for’ test The Fairchild (2003) emanated from the case, Fairchild v Glenhaven Funeral Services Ltd [2002]UKHL 22. In the case, the wife of Mr. Fairchild was seeking justice for her husband, who had worked for different employers, who had all, in one way or the other negligently exposed him to asbestos. Sinc e Mr. Fairchild died as a result of suffering pleural mesothelioma, Mrs. Fairchild was actually suing the employers for negligence. As far as the ‘but for’ test was concerned, her major claim was that ‘but for’ the exposure that her husband suffered at the hands of the different employers, her husband would not have died. But there was going to be more than just this contextual assumption as the judges who heard the case would have different interpretations of the ‘but for’ test to give as far as the case that was presented was concerned. Basically, she had to proof that the sole cause of her husband’s contraction of mesothelioma was as a result of the inhalations he had from his employers are there exists several environmental factors that can expose a person to the disease causing

Biosocial Development Child Psychology Essay Example | Topics and Well Written Essays - 500 words

Biosocial Development Child Psychology - Essay Example (Kathleen). In the natural process of developing self-esteem, the child's primary motivation is intrinsic which derives from within the self. Therefore, children take pleasure in learning, playing, performing tasks etc when they set the goal for themselves rather than somebody else sets expected behavior for. Children enjoy a game for the sake of its fun and not for the rewards or scores they achieve for completing it. Thus, it is unwise on the part of adults to praise the child or offer some expected awards while the activity or the performance is on the process. The desirable behavior for the adults is to praise the child on the performance or complement it with some unexpected awards which will boost up their emotional feeling and self-esteem. There have been research evidences to prove that the extrinsic rewards and praises emasculate the child's intrinsic motivation. (Kathleen). The natural emotional regulation of the child is decisive in the development of its future emotional control.

Demography of China Essay Example for Free

Demography of China Essay The demographic situation in Peoples Republic of China is one of the burning issues nowadays widely discussed in the global community. Today, Chinas population is over 1. 3 billion, the largest of any country in the world. So every 5th person in the world is coming from China. The population of China is greater than the entire world 150 years ago. Every year the population of China increases by 14 million people (the number of people in Texas or Chile). Each decade it increases by about 130 million (more than the population of Japan). About 39,000 new people are added every day. Cultural prerequisites for such family expanding tradition: The Chinese traditionally prefer early marriage, early child-bearing, and large families. Each married women usually raises between five and six children. The Chinese say: more children means great happiness. Population Problems in China. There is a great number of social, economic and environmental problems evoked by the demographic situation. * High unemployment rate. The competition to find a job is very high and as Chinese people saying themselves: â€Å"I’m frightened for my children`s future, China’s biggest problem is the population†. As a result a lot of people migrate to a bigger cities or to neighboring countries to seek for a job. * Water and food shortages. As the worlds population increases, so too does its need for food and water the two resources which are absolutely necessary to sustain life. The Asian giant has been warned by one of its own groundwater experts to either cut its food production or else face dire water levels, especially in the dry northwest plains. If not, aquifers will sink to dire levels not seen in 30 years. For example, the yellow river is dying up. The river has been overused and abused. Dozens of dams block its flow, drawing off huge quantities of water to grow cotton in the desert. * Housing shortages. China has an acute shortage of housing, attributable not only to the large annual increases in population (over 10 million a year) that must be accommodated but also to the long-standing policy of directing investment funds into heavy industry rather than into housing and other social amenities. As a result of expensive housing, people are forced o live in poor conditions and share a flat with big number of people. * Chronic air and water pollution problems are now evident in rural and urban areas throughout the country. China didn’t join Kiyoto protocol, so having a well- developed industry it keeps on emitting CO2 in great quantities. Air pollution is all over China, even harming the most picturesque locations. Acid rain is also a common place. * All of these are issues that the Chinese government must struggle and find a lot of solutions in order improve the lives of its people.