Gloalization of Spain Term Paper Example | Topics and Well Written Essays - 1500 words

Gloalization of Spain - Term Paper Example This isn’t a reason to turn away from globalization, but it is a reason to be vigilant. This essay will look at the way Spain has become more dependent on other countries through the process of globalization and it will suggest that this has mostly been for the best. Although the exact moment of globalization occurring in Spain is a highly debatable question considering the length of Spains history and its extensive involvement in world affairs, it could be said that 1990s marked the rapid acceleration of the period. Spain decided to go full steam ahead with economic global integration. While other countries were slow to see the positive ramifications of globalization, Spain was not. It saw what it wanted and it struck. After many years of sclerotic economic growth under Franco, Spain was ready to reengage with the world again.1 Of course, with current economic events shaking the world economy, we begin to see some of the potential negative effects of globalization for Spain. The problems point to one of the serious drawbacks of globalization: when you open your economy up to the other economies of the world you can get very rich as long as they do well—but you also become very vulnerable to their problems too. This is something Spain has become concerned about regarding the E.U. in the past, and now with the American economy in shambles, it must again revisit this difficult situation. The global economic crisis has shown that interconnectedness can bring with it negative consequences. While a rising tide lifts all boats, a severe drought makes everyone thirsty. This is a problem that will have to be negotiated on the world stage. Spain has a number of economic problems that result from this, including high unemployment. But in the course of this important debate it is important to remember the benefits that have come with

Shakespearean comedies Essay Example for Free

Shakespearean comedies Essay The world of Shakespearean comedies is undoubtedly romantic, poetic and idealized. As You Like It is no exception in this respect. Romantic in all aspects, especially form and spirit, the play presents before you a world of love, of deceit, of vulgarity, of humor, of music and what not! But it is the love theme that excels all that. To be more precise, â€Å"it seems wiser to agree with Charlton that Shakespeare was successfully developing his own kind of romance. † (Nicoll, Shakespeare Survey, Vol. 8, pg 3) It is rightly observed by Sheffield Theatres Education that, â€Å"William Shakespeare’s play As You Like It clearly falls into the Pastoral Romance genre; but Shakespeare does not merely use the genre, he develops it Shakespeare also used the Pastoral genre in As You Like It to ‘cast a critical eye on social practices that produce injustice and unhappiness, and to make fun of anti-social, foolish and self-destructive behaviour’ , most obviously through the theme of love, culminating in a rejection of the notion of the traditional Petrarchan lovers. † (www. sheffieldtheatres. co. uk) When we say that As You Like It is romantic in form, it should rush to our mind that the classical rules of dramatic composition, like the observance of the unities, are not at all regarded in its composition. The action covers a period much longer than a single revolution of the sun, and the action moves from the city to the Forest of Arden. Shakespeare was thoroughly against setting rules for a work of art as it had a narrowing and cramping effect both to the artist and the work of art. Hence he never cared for any rules of literary creation. For him the dictates of his fancy was prominent. Thus we have the large-scale explication of love theme in As You Like It; that too, in the Forest of Arden, a world that can only exist in our dreams. The Shakespearean world is the ‘country of the mind’. It can never ever be met with neither in this whole universe nor on the world-map. It is a place where we come across an idealized picture of life, life as it should be lived, or life as envisaged by the poet. The atmosphere of the Forest of Arden in As You Like It throughout is one of idyllic calm and quiet and no incidents have been introduced that was capable enough to mar this tranquility. This idyllic setting is the sole witness to Duke Senior’s and his companions careless fleeting away of the time like Robinhood and his merry men. It is here that Rosalind, Celia, Touchstone, Orlando and Oliver come up to, and it is here that the pageant of love is played out and the lovers are happily united before they go back to the din and buzz of the urban setting. This romantic-poetic world of Shakespeare contains noble specimens of humanity, who win our admiration, and we, the readers or audience, long to be one among them or one like them. This world is free of conservatism, and does not set any norms or codes for social behavior for the individual to conform to. Romance in the Shakespearean world goes beyond the accepted, normal and conventional. It shows forth different ways of life but we realize that these ways bring forth greater happiness and wellbeing than what the socially accepted ones bring in. That is why the readers are not surprised when Rosalind ventures to teach Orlando to woo. Critics might find a lot of absurdities in the plot of As You Like It. But it is concealed to the utmost by heightening the character-interest. In Walter Raleigh’s words, â€Å"he so bathes his story in the atmosphere of poetry and phantasy, his characters are so high-spirited, good-tempered and resourceful, the action passes in such a tempest of boisterous enjoyment, and is mitigated by so many touches of human feeling, that the whole effect remains gracious and pleasant; and the master of the show is still the gentle Shakespeare. † (Raleigh, Walter Alexander, Macmillan, 1907) Though it is accepted world-wide that the setting of Shakespearean comedy is imaginative and romantic to the utmost, we should duly acknowledge that it is not a mere escape world of romance. Reality is very much felt there and this world of romance never grows unsubstantial and fantastic. Romantic idealization is constantly kept in check by frequent reminders of harsh reality. In As You Like It, Shakespeare has undoubtedly presented a mingled yarn of joys and sorrows. There is always a confrontation of romance and reality here. The Forest of Arden is never shown forth as a conventional pastoral Arcadia. It also has its piercing wintertime and harsh weather, its own kind of usurpation and the ingratitude of friends which are very much present in the world around us, all days. There one has to face hardships of all sorts, and some one character or the other, usually the fool, constantly reminds us of those hardships. But it should be borne in mind that this realism never mars the charm of the romantic world. In spite of all the harshities, here life goes on most merrily, full of singing, dancing, and love-making. True, it is not life as it is, but as it should have been or as we yearn to be like. The idyllic Forest of Arden transports us to a rainbow world of magic and romance, where all sorts of marvels do take place and above all, we tend to believe all that and feel unaware of any improbability for the incidents in the play. The romantic love according to Shakespeare is an irrational passion that is not guided by reason, intellect or eye. Love is the presiding genius in the play. Celia falls in love with Oliver who is entirely unworthy of her. Not one or two, nearly all are in love and the play ends with a happy consummation of all of them in marriage. Towards the middle part of the play, we see that the whole atmosphere is surcharged with love. This play abounds in a varied assortment of love. We come across the true, deep and passionate love of Orlando and Rosalind, the sudden, swift and healthy love of Oliver and Celia, the courtly, pastoral, conventional and Petrarchan love of Phebe and Silvius, and a real parody of love between Touchstone and Audrey. The play itself ends with the ringing of marriage bells and ‘every Jack gets his Jill’. As You Like It burlesques most of the set norms of love usually dealt with in poetry and literature. For example, the widely accepted notion that love is a disease that invites suffering and torment to the lover, the supposition that the male lover is the slave or servant of his mistress and the female lover should never cross the limits set by the society finds expression here and at the same time it is ridiculed by the playwright in the words of different characters of the play. These ideas were boasted to be the central features of the courtly love tradition, which was embedded in European literature for hundreds of years before Shakespeare’s time. In As You Like It, we find the characters lamenting the torment caused by their being in love, but these laments are all unsuccessful, bizarre and ludicrous. While Orlando’s metrically inept poems keep in with the set norm that he should â€Å"live and die [Rosalind’s] slave,† these sentiments are roundly ridiculed (III. ii. 152). Even Silvius, the uncivilized shepherd, presumes as being a tortured lover. It is well evident in asking his beloved Phebe to notice â€Å"the wounds invisible / That love’s keen arrows make† (III. v. 30–31). But Silvius’s request for Phebe’s attention has in it that the enslaved lover can loosen the chains of love and that all romantic wounds can be healed—otherwise, his request for notice would be worthless. Hence it is evident that, As You Like It breaks usual notion of the courtly love which is always known as a force for happiness and fulfillment and mocks those who are content with the suffering that is always associated with truelove. Music adds a lot to the romantic quality of Shakespearean plays. As music speaks direct to human souls and influences and enriches it, songs and dances are scattered throughout the play. Perennial delight is the result of introducing music into romance plays. This is wholly achieved in As You Like It. In keeping with the conventions of romantic plays, Shakespeare, through the songs introduced gave apt expression to the renaissance passion for music and at the same time enhanced the entertainment value of the play. As You Like It is full of songs that articulate the spontaneous ecstasy these people derive from life in the Forest of Arden and the joy they can afford to give back to people around them. The songs show forth clearly the difference in the way of living in the forest from that of the court, because here they can tailor their actions to their moods. This can never happen in the court where one is forced to even breathe according to the norms set by the society. Romance plays always gave a good position for the women that added to the quality of characterization and plot. Love transforms and emboldens them to become capable of swift action, sacrifice, ingenuity and self-surrender. Shakespeare too enthroned woman as queen of his comedies owing to the more instinctive, impulsive and emotional nature of their being and as a result she was in love always. Here we have a bright, beautiful and glittering Rosalind who is adored by all even today. It is true when Orlando observes, â€Å"Helen’s cheek but not her heart Cleopatra’s majesty, Atlanta’s better part, Sad Lucretia’s modesty. †(III (ii)-143-6) She is wittier, more practical and more resourceful thereby outshining the hero and the men folk of the play whom we see as hesitant and torn within themselves whenever a crucial situation is at hand. It was rightly pointed out by Ruskin that ‘Shakespeare has only heroines and no heroes’ Women in Shakespearean romances are simply human and patiently natural when it comes to emotional crises like falling in love. Rosalind’s excitement when she first meets Orlando is as palpable as are her transparent endeavors to hide it. Their own passion sharpens the love even more through which they even seek the good of others. But, on the contrary, she is well aware that there is no certain and predictable relation between beauty and honesty in mankind. She is practical to the utmost. That is why Ian Johnston remarks, â€Å"Rosalind has not an ounce of sentimentality. Her passionate love for Orlando does not turn her into a mooning, swooning recluse. It activates her. She takes charge of her life. She knows what she wants, and she organizes herself to seek it out. If she has to wait to pursue her marriage, then she is going actively to enjoy the interim in an improvised courtship and not wrap herself in a mantle of romantic attitudinizing. She initiates the game of courtship with Orlando and keeps it going. She has two purposes here. This gives her a chance to see and court Orlando (in her own name) and thus to celebrate her feelings of love, but it also enables her to educate Orlando out of the sentimental pose he has adopted. † (www. mala. bc. ca/~johnstoi) The presence of a wise fool among the foolish wise adds to the effect of the romance and life in As You Like It. Here we have Touchstone who proves to be a man of keen observation, and remarkable powers of repartee and witticism. Unlike the usual tradition of jesters given to punning, word-play and word-jugglery of all sorts, Touchstone hates them and considers it as mere foolishness. According to the observation of Duke Senior, he â€Å"uses his folly like a stalking horse, and under presentation of that he shoots his wit. †(V (iv) 102-5) Though Shakespeare builds a world of romance in As You Like It, he also criticizes the same. Here he takes us to the romantic Forest of Arden where the Duke Senior and his followers fleet their time carelessly. At the same time he makes Jaques ‘jeer and rail’ at it. Romantic love is very much present in the affair between Orlando and Rosalind. But its parody is well explicated in the affair between Touchstone and Audrey. Rosalind’s words are testimonial for the foolishness of madly believing in love. When Orlando says that he would love his Rosalind for ever a day, she brings him back to earth by saying: â€Å"No, no, Orlando; men are April when they woo, December when they wed; maids are May when they are maids, but the sky changes when they are wives. † (IV (i) 126-9). It is here that Edward Dowden’s words gain true recognition, â€Å"Shakespeare abounds in kindly mirth; he receives an exquisite pleasure from the alert wit and bright good sense of Rosalind; he can dandle a fool as tenderly as any nurse, qualified to take a baby from the birth can deal with her charge. † (Warner, Library of the Worlds Best Literature, Ancient and Modern, pg 4810). In the olden days, romances and pastoral comedies were branded as one and the same as the settings, themes, accidental happenings –all characterized both the genres to be one. In that respect it is worthwhile to note that â€Å" As You Like It is clearly a pastoral comedy—with a country setting, much talk of love of all sorts, a story which consists, for the most part, of a series of accidental meetings one after the other, and a resolution involving implausible transformations of character and divine intervention. Although the Forest of Arden is not a completely idealized pastoral setting, we have here all the standard ingredients of pastoral drama. † (www. mala. bc. ca/~johnstoi) â€Å"The theme of pastoral comedy is love in all its guises in a rustic setting, the genuine love embodied by Rosalind contrasted with the sentimentalized affectations of Orlando, and the improbable happenings that set the urban courtiers wandering to find exile or solace or freedom in a woodland setting are no more unrealistic than the string of chance encounters in the forest, provoking witty banter, which require no subtleties of plotting and character development. The main action of the first act is no more than a wrestling match, and the action throughout is often interrupted by a song. At the end, Hymen himself arrives to bless the wedding festivities. † (www. bookrags. com/wiki/As_You_Like_It) Judicious reflections on life go hand in hand with the romance of love and the romance of pastoralism, and save the world of comedy from being unsubstantial. Further, the escape from reality is only temporary; the characters troop back to the city to play their respective roles, and occupy their respective places. Shakespeare, in his As You Like It, has tailored the conventions of romance to suit his idea and need so that he can attract the attention of generations of readers and audiences. Bibliography Foakes, R. A. , (Ed. ) Coleridge’s Criticism of Shakespeare, Continuum International Publishing Group, 1989. Miller, Naomi J. , Reimagining Shakespeare for Children and Young Adults, Routledge, 2003, pg110 Nicoll, Allardyce, Shakespeare Survey, Vol. 8, Cambridge University Press, 2002, pg 3. Raleigh, Walter Alexander, Macmillan, 1907 Shakespeare, William, As You Like It-The New Clarendon Shakespeare, Ed. Isabel J. Bisson, 12th Impression, 1995. Quiller-Couch, A. , Shakespeare’s Workmanship, Cambridge University Press, 1947. Warner, Library of the Worlds Best Literature, Ancient and Modern, Ed. Charles Dudley, International Society, 1896, pg 4810 http://www. sheffieldtheatres. co. uk/creativedevelopmentprogramme/productions/asyoulikeit/comedy. shtml http://www. mala. bc. ca/~johnstoi/eng366/lectures/Ayl. htm http://www. bookrags. com/wiki/As_You_Like_It

insider trading :: essays research papers

Preliminary Note to Rule 10b5-1: This provision defines when a purchase or sale constitutes trading "on the basis of" material nonpublic information in insider trading cases brought under Section 10(b) of the Act and Rule 10b-5 thereunder. The law of insider trading is otherwise defined by judicial opinions construing Rule 10b-5, and Rule 10b5-1 does not modify the scope of insider trading law in any other respect. a. General. The "manipulative and deceptive devices" prohibited by Section 10(b) of the Act and Rule 10b-5 thereunder include, among other things, the purchase or sale of a security of any issuer, on the basis of material nonpublic information about that security or issuer, in breach of a duty of trust or confidence that is owed directly, indirectly, or derivatively, to the issuer of that security or the shareholders of that issuer, or to any other person who is the source of the material nonpublic information. b. Definition of "on the basis of." Subject to the affirmative defenses in paragraph (c) of this section, a purchase or sale of a security of an issuer is "on the basis of" material nonpublic information about that security or issuer if the person making the purchase or sale was aware of the material nonpublic information when the person made the purchase or sale. c. Affirmative defenses. 1. i. Subject to paragraph (c)(1)(ii) of this section, a person's purchase or sale is not "on the basis of" material nonpublic information if the person making the purchase or sale demonstrates that: A. Before becoming aware of the information, the person had: 1. Entered into a binding contract to purchase or sell the security, 2. Instructed another person to purchase or sell the security for the instructing person's account, or 3. Adopted a written plan for trading securities; B. The contract, instruction, or plan described in paragraph (c)(1)(i)(A) of this Section: 1. Specified the amount of securities to be purchased or sold and the price at which and the date on which the securities were to be purchased or sold; 2. Included a written formula or algorithm, or computer program, for determining the amount of securities to be purchased or sold and the price at which and the date on which the securities were to be purchased or sold; or 3. Did not permit the person to exercise any subsequent influence over how, when, or whether to effect purchases or sales; provided, in addition, that any other person who, pursuant to the contract, instruction, or plan, did exercise such influence must not have been aware of the material nonpublic information when doing so; and

Deception Point Page 36

â€Å"Jesus Christ!† Norah shook the device and looked again. â€Å"Damn it! Something's got to be wrong with this refractometer!† â€Å"Saltwater?† Corky gloated. Norah frowned. â€Å"Partial. It's registering three percent brine-which is totally impossible. This glacier is a snow pack. Pure freshwater. There should be no salt.† Norah carried the sample to a nearby microscope and examined it. She groaned. â€Å"Plankton?† Tolland asked. â€Å"G. polyhedra,† she replied, her voice now sedate. â€Å"It's one of the planktons we glaciologists commonly see in the oceans under ice shelves.† She glanced over at Tolland. â€Å"They're dead now. Obviously they didn't survive long in a three percent saltwater environment.† The four of them stood in silence a moment beside the deep shaft. Rachel wondered what the ramifications of this paradox were for the overall discovery. The dilemma appeared minor when compared to the overall scope of the meteorite, and yet, as an intel analyst, Rachel had witnessed the collapse of entire theories based on smaller snags than this. â€Å"What's going on over here?† The voice was a low rumble. Everyone looked up. The bearish frame of the NASA administrator emerged from the dark. â€Å"Minor quandary with the water in the shaft,† Tolland said. â€Å"We're trying to sort it out.† Corky sounded almost gleeful. â€Å"Norah's ice data is screwed.† â€Å"Bite me twice,† Norah whispered. The administrator approached, his furry eyebrows lowering. â€Å"What's wrong with the ice data.† Tolland heaved an uncertain sigh. â€Å"We're showing a three percent saltwater mix in the meteorite shaft, which contradicts the glaciology report that the meteorite was encased in a pristine freshwater glacier.† He paused. â€Å"There's also plankton present.† Ekstrom looked almost angry. â€Å"Obviously that's impossible. There are no fissures in this glacier. The PODS scans confirmed that. This meteorite was sealed in a solid matrix of ice.† Rachel knew Ekstrom was correct. According to NASA's density scans, the ice sheet was rock solid. Hundreds of feet of frozen glacier on all sides of the meteorite. No cracks. And yet as Rachel imagined how density scans were taken, a strange thought occurred to her†¦ â€Å"In addition,† Ekstrom was saying, â€Å"Dr. Mangor's core samples confirmed the solidity of the glacier.† â€Å"Exactly!† Norah said, tossing the refractometer on a desk. â€Å"Double corroboration. No fault lines in the ice. Which leaves us no explanation whatsoever for the salt and plankton.† â€Å"Actually,† Rachel said, the boldness of her voice surprising even herself. â€Å"There is another possibility.† The brainstorm had hit her from the most unlikely of memories. Everyone was looking at her now, their skepticism obvious. Rachel smiled. â€Å"There's a perfectly sound rationale for the presence of salt and plankton.† She gave Tolland a wry look. â€Å"And frankly, Mike, I'm surprised it didn't occur to you.† 42 â€Å"Plankton frozen in the glacier?† Corky Marlinson sounded not at all sold on Rachel's explanation. â€Å"Not to rain on your parade, but usually when things freeze they die. These little buggers were flashing us, remember?† â€Å"Actually,† Tolland said, giving Rachel an impressed look, â€Å"she may have a point. There are a number of species that enter suspended animation when their environment requires it. I did an episode on that phenomenon once.† Rachel nodded. â€Å"You showed northern pike that got frozen in lakes and had to wait until the thaw to swim away. You also talked about micro-organisms called ‘waterbears' that became totally dehydrated in the desert, remained that way for decades, and then reinflated when rains returned.† Tolland chuckled. â€Å"So you really do watch my show?† Rachel gave a slightly embarrassed shrug. â€Å"What's your point, Ms. Sexton?† Norah demanded. â€Å"Her point,† Tolland said, â€Å"which should have dawned on me earlier, is that one of the species I mentioned on that program was a kind of plankton that gets frozen in the polar ice cap every winter, hibernates inside the ice, and then swims away every summer when the ice cap thins.† Tolland paused. â€Å"Granted the species I featured on the show was not the bioluminescent species we saw here, but maybe the same thing happened.† â€Å"Frozen plankton,† Rachel continued, excited to have Michael Tolland so enthusiastic about her idea, â€Å"could explain everything we're seeing here. At some point in the past, fissures could have opened in this glacier, filled with plankton-rich saltwater, and then refroze. What if there were frozen pockets of saltwater in this glacier? Frozen saltwater containing frozen plankton? Imagine if while you were raising the heated meteorite through the ice, it passed through a frozen saltwater pocket. The saltwater ice would have melted, releasing the plankton from hibernation, and giving us a small percentage of salt mixed in the freshwater.† â€Å"Oh, for the love of God!† Norah exclaimed with a hostile groan. â€Å"Suddenly everyone's a glaciologist!† Corky also looked skeptical. â€Å"But wouldn't PODS have spotted any brine ice pockets when it did its density scans? After all, brine ice and freshwater ice have different densities.† â€Å"Barely different,† Rachel said. â€Å"Four percent is a substantial difference,† Norah challenged. â€Å"Yes, in a lab,† Rachel replied. â€Å"But PODS takes its measurements from 120 miles up in space. Its computers were designed to differentiate between the obvious-ice and slush, granite and limestone.† She turned to the administrator. â€Å"Am I right to assume that when PODS measures densities from space, it probably lacks the resolution to distinguish brine ice from fresh ice?† The administrator nodded. â€Å"Correct. A four percent differential is below PODS's tolerance threshold. The satellite would see brine ice and fresh ice as identical.† Tolland now looked intrigued. â€Å"This would also explain the static water level in the shaft.† He looked at Norah. â€Å"You said the plankton species you saw in the extraction shaft was called-â€Å" â€Å"G. polyhedra, Norah declared. â€Å"And now you're wondering if G. polyhedra is capable of hibernating inside the ice? You'll be pleased to know the answer is yes. Absolutely. G. polyhedra is found in droves around ice shelves, it bioluminesces, and it can hibernate inside the ice. Any other questions?† Everyone exchanged looks. From Norah's tone, there was obviously some sort of â€Å"but†-and yet it seemed she had just confirmed Rachel's theory. â€Å"So,† Tolland ventured, â€Å"you're saying it's possible, right? This theory makes sense?† â€Å"Sure,† Norah said, â€Å"if you're totally retarded.† Rachel glared. â€Å"I beg your pardon?† Norah Mangor locked stares with Rachel. â€Å"I imagine in your business, a little bit of knowledge is a dangerous thing? Well, trust me when I tell you that the same holds true for glaciology.† Norah's eyes shifted now, looking at each of the four people around her. â€Å"Let me clarify this for everyone once and for all. The frozen brine pockets that Ms. Sexton has proposed do occur. They are what glaciologists call interstices. Interstices, however, form not as pockets of saltwater but rather as highly branched networks of brine ice whose tendrils are as wide as a human hair. That meteorite would have had to pass through one hell of a dense series of interstices to release enough saltwater to create a three percent mixture in a pool that deep.†

Financial to people who are living in poverty Essay

1. Introduction Microfinance is the provision of financial to people who are living in poverty. The system is providing small loans to poor person who want to expand their business. A series of financial service include loaning, saving, insurance and so on. There are two main characteristic on microfinance. Firstly, it is focus on below average income person or poor person for their customers. Secondly, it must ensure that the possibility of its own sustainable development. The beginning of the activity was most closely associated with economist Muhammad Yunus in 1976. He was born in Bangladesh. Between 30 years, the success of Grameen Bank which was built by Yunus was noticed by the world. Then, microfinance has covered nearly development countries and some developed counties. In the case of the text book, microfinance was present by two extreme parts, macro success and global mess. For the macro success, lender loaned money to women in order to support their family. Then, much family got rid of po verty. By 2001, more than 7,000 microfinance institutions had served 120 million borrowers around the world. On the other hand, there are two debates lead to huge problems. Firstly, most of microfinance institution’s new shareholders were rich investors. Secondly, several competitive microfinance institutions loaned money to the same uneducated clients, if crop or ventures fail, clients would face crushing debt loads. For example, in some parts of India, almost 80% of borrowers were in default. 2. Case question 1 Therefore, what happen about microfinance? Does it macro success or global mess? 2.1 SWOT analysis For the critical thinking of microfinance is SWOT analysis. SWOT analysis may help us know more about microfinance totally. There are two strengths for microfinance, the first one is that helped in decrease the poverty. The target of microfinance is to provide loans to poor people who want to start small business but cannot able to receive commercial bank help. For example, more than 350 million people in Indian below average income. The microfinance institutions offer the opportunity to them to start their own business. So, microfinance helps in decrease the poverty. The second one is that promoting the development of local community. If every individual who receive small loans to become rich, the development of local community will be promoted. There are two weaknesses about the microfinance. First of all, it is not proper regulated on banking process. Due to lack of efficient rules and regulations there would lead to high case of credit risk and defaults. Moreover, microfinance institutions focus on less people only. For example, India’s 70% of people live in the village, that is to say that most of poor area haven’t been touched. For the opportunity of microfinance, there are two main points also. Initially, it still has huge untapped market. For example, Pakistan’s microfinance industry was developing faster already, with an expansion of nearly 47 percent during 2007 (AbanHaq, 2008). By the end of 2008, the borrowers had been extended to 1.7 million (Meher Shah, 20 09). In addition, some small business which were loan from Microfinance institutions would provide much more employment opportunities. Microfinance institutions not only loan money to individual to start their business but also help in the increase the employment opportunity to them. There two threat analysis about microfinance as well. The first one is that over involvement of government. For example, in Indian, bank had freeze on credit to micro lenders for many times, it led to Indian’s microfinance industry pushed to the brink of collapse (India’s microfinance sector under threat, 2010). Furthermore, it is a high competition industry. For example, Indian’s commercial bank normally provides about US$ 133 a week in credit to the microfinance industry (India’s microfinance sector under threat, 2010). So, it is cause to high competition for much more applicant. 2.2 Why has microfinance been quite successful on worldwide basis? In the study case, 84% of microloan recipients are women(D’Espallier, Guà ©rin, & Mersland, 2011). Therefore, it is easily find that most of microfinance institutions target to women. This is because that repayment is higher among female borrowers, they usually do more conservative investment and reduce moral hazard risk(D’Espallier, Guà ©rin, & Mersland, 2011). On the other hand, when women improve their circumstances, they also improve the lives of their children. So, by investing in nutrition and education, they can help to create a better future for their children and their communities. Furthermore, many microfinance institutions help much poorest families get rid of poverty. It is â€Å"to ensure that 175 million of the world’s poorest families, especially women, receive credit for self-employment and other financial and business services†(D’Espallier, Guà ©rin, & Mersland, 2011). Thus, it absorbs global attention. In addition, the success of the Grameen Bank of Bangladesh indicated that a new business model had been created. Until recently, Grameen has reported repayment rates of 98% and serving over much more function to poor person (Morduch, 1999). This new business models was imitated by the world. 3. Case Question 2 Using agency theory, identify the area or improvement for the government of certain MFI have be found to engage in questionable practice. Microfinance institution is a party that helping poverty to do business by offering mini-loan. It is an agency of not only providing finance service to support poverty but also an organization contributes to society. The main problem of lending money to pool people is high risks of returning the money. The pool people, who are lack of educations, experience and need more train to return to the job. As an agency the â€Å"principal† (top managers) require profit while loan office is less concern about the interest. 3.1 Agency theory Agency theory explains the relationship between principals and agents. The objective about this theory is to identify and resolve the problem and conflict between principal and the agent of the principal. The two problems agency theory addresses are: * Problem of desire goal of principal and agent are in conflict. * Problem of different acts in managing the risk. This theory had been used in examining the relationship of agency, define as â€Å"a contract under which one or more persons (the principal) engage another person (the agent) to perform some on their behalf which involves delegating some decision making authority to the agent† (Jensen & Meckling, 1976) The following equation shows the result of problem come from. The utility of the principal will focus on return, whereas the utility of the agent will focus on the income. Agent wants to increase the income while the principal refers to more return. As the result, there is a trade-off exist in between. UP (R) = 1/UA (I) UP = Utility of the principal UA= Utility of the agent R = Returns I= Income In consequent, to resolve the problem is to design the ideal contract. There are two types of contracts design for such problem: behavior-based contracts and outcome-based contracts. Behavior-based contract, the principal monitor, measure and reward the base on the agent’s behavior (Bergenetal, 1992). The outcome-based contract, the agent will be rewarded according to the realized outcome (Bergenetal, 1992). 3.2 Porter’s Five Forces Porter’s five forces is concept for analyzing industry and developing strategy of a company to position business. Base on this concept to understand microfinance industry environment. Investors always seek for return; the industry environment will impact how efficient the decision made for profit. Source:(Porter, 1979) Suppliers (High) There are many investors in market; those can divide into two types, commercial investor and faith investor. The faith investors are not seeks for profit, but long term poverty alleviation. (Cranenburgh, 2010)Commercial investors are looking for return because the capital market is cheaper. Unfortunately there are most MFI remain lending money to pool people are informal which the stakeholder are commercial investor. Threat of new entrants (High) Commercial investors are better in positioning that they have better access than financial service expertise. Low entrant capital require lead to low entrant standard require. The investors seeks return, it cause high impact in investment. Commercial investors look for short term invest, and it can be re-enter for commercial investment as a cycle. Threat of substitute (Medium) Poor people need money of making living and other social purpose (education, insurance, sickness.eg) for life long. In India, the Reserve Bank of India (RBI) provides life insurance for poverty to improve the life expenses under the microfinance category. In many other countries, MFI design new financial service according to the need of poverty which charge very low interest. Internal rivalry In fact, the intensity of competition is depends upon the size of the company in the game. As entrant barrier low, the major operators in industry are informal institution (SHGs, MFI and NGOs). The competition will increase when an established organization goes into market and implement promotional strategy for boosting out of bad situation as it is weak. In additional, some formal bank start to do financial support with the help of other commercial organization like provide loan for SHGs. This factor will attract more operators in market. 3.3 Challenge Facing by Microfinance The microfinance system is separated in three levels: micro, meso and macro. To understand the function of those levels activity, identify the challenge MFIs are facing by governance. Source: Adapted from Helms, Access for All The micro level activity includes both perspectives of clients and MFI. The problem comes out from the borrower’s perspective is limitation of financial support. This would cause predatory lending practices. From the clients’ perspective, the problem relate to the managerial experience of clients, how they manage the funds and sustainable funds. The meso level is about services and infrastructures. The MFI need strong backup to support ongoing financing lending process. Limited capacity would terminate the funds to borrower. The macro level consists of central bank, finance ministries and other financial department. The problem comes out the potential risk when new policy established (monetary and currency, egg). The failure of systemic function would lead to a collapse of MIFs. 4. Case Question 3: ON ETHICS: Given the criticisms that â€Å"the rich have literally profited from the dirt poor†. Do you have any reservations about investing in MFIs that have gone through IPOs? Microfinance is a key thing that can help people living in poverty to become financially independent. It is better able to provide for their families in times of economic difficulty. Considering nearly half of world in less than two dollars a day to survive, microfinance is an important solution. However, microfinance has its shortcomings. Thus, in our opinion about this question, we are neutral. Here are advantages and disadvantages in below. 4.1 Advantages Access Banks will not extend loans to those with little or no assets, and generally so not engage in small size of loans associated with micro-financing companies. Microfinance is based on the concept that even small amounts of credit can help end the vicious cycle of poverty. Extending education Families receiving microfinance are less likely to pull their children to leave school for economic reasons. Improve health and welfare Microfinance can lead to better access to clean drinking water and better sanitation, and providing better access to health care as well. Sustainability In the developing country, even a small working capital loans $100. It can be launch a small business. Benefactors can help pulling themselves and their families out of the poverty. For example, a 19-year-old girl named Salamatu, from Sierra Leone started selling rice business (Kate, 2011). When her father and brother died, she could not pay the school fees by her own. She joined a local saving and Loans Group Plan in her community. This group can give small loans to them. Salamatu took out two loans. One is starting a small rice selling business and one is paying for her school fees (Kate, 2011). Job creation Microfinance can help create new jobs. It has a beneficial impact on the local economy. 4.2 Disadvantages Some investors who are interested in specific microfinance IPO must be wary (wise GEEK, 2012). Because some microfinance institutions are free with funding to the poor, but require excessive interest payments in return. This can put a person into a wore financial hole. This would cause social unrest. MFIs in India increased the risks. MFIs might face increased pressure to provide the assets and income growth (Jennifer, 2010). Thus it would increase default risk. In addition, because of high yield investors’ interests, microfinance institutions issuing high risk loans. This could cause valuation issues. However, lenders often could not perform. Because India does not have national systems that track the borrower’s credit history (Jennifer, 2010). 5. Conclusion Firstly, we give the reason of microfinance has been successful. Secondly, we identify the areas for improvement of MFIs. Then, we provide the two parts – advantages and disadvantages. Some considering buying into microfinance IPO should be carefully examined, and understand the company and its specific practices, then proceeding. Microfinance is not always appropriate. For extreme poor, or those who are sick or unable to work, microfinance may not be an appropriate tool. Bibliography India’s microfinance sector under threat. (2010, November). Australian Banking & Finance, p. 20. Cranenburgh, K. C. (2010). Analysis of the Microfinance Sector Faith Institutions and Impact Investing. International Interfaith Investment Group, 37-38. D’Espallier, B., Guà ©rin, I., & Mersland, R. (2011, 5). Women and Repayment in Microfinance: A Global Analysis. World Development, pp. 758-772. Haq, A. (2008). Microfinance Industry Assessment: A Report on Pakistan. Islamabad Pakistan: Pakistan Microfinance Network (PMN). Jongbloed, K. (2011). DIY Banks Make Education Possible For Girls. Retrieved from http://blog.becauseiamagirl.ca/diy-banks-make-education-possible-for-girls Meher Shah, A. N. (2009). Spot light on microfinance. Micro note. Islamab: Pakistan Microfinance Network (PMN). Morduch, J. (1999, October). The role of subsidies in microfinance: evidence from the Grameen Bank. Journal of Development Economics, pp. 229-248. Shevock, J. (2010). Microloan Default Risk Rises in India as SKS Microfinance Plans Initial Public Offering (IPO). Retrieved from http://www.microcapital.org/microcapital-brief-microloan-default-risk-rises-in-india-as-sks-microfinance-plans-initial-public-offering-ipo/ WiseGEEK. (2012). What Is a Microfinance IPO? . Retrieved from http://www.wisegeek.com/what-is-a-microfinance-ipo.htm