Product Life Cycle Theory By Vernon Economics Essay

Product Life Cycle Theory By Vernon Economics Essay Vernons international product life cycle theory (1996) is based on the experience of the U.S. market. At that time, Vernon observed and found that a large proportion of the worlds new products came from the U.S. for most of the 20th century. It was concluded that U.S. was the first to introduce technological driver products. Vernon theory was used to explain certain types of foreign direct investment made by the U.S. companies after the Second World War in the manufacturing industry. The U.S. has become a major importer of many of the goods that had once developed, produced and exported. Vernons international product life cycle is used to attempt to explain why this happened. According to Vernon, in the first stage the U.S. transnational companies create new innovative products for local consumption and export the surplus in order to serve also the foreign markets. According to the theory of production cycle, after the Second World War in Europe has increased demand for manufactured products like those proposed in USA. Thus, America firms began to export, having the advantage of technology on international competitors. In the first stage of production cycle, manufacturers have an advantage by possessing new technologies. However at these early stages of production, the products were not standardized as the nature of the goods has implications such as price elasticity, the communication throughout the industry and also the location of the product itself. As the product starts to mature, the conditions also start to change. A certain degree of standardization takes place and the demand of the products appeared elsewhere. As demand has increased, overseas markets were imitating those products at a cheaper labour and overall cost. The U.S. firms were forced to perform production facilities on the local markets to maintain their market shares in those areas. Consequently the U.S. exports were limited. As the markets in the U.S. and these other developed countries mature, the product became standardized. The developments of the life cycle were once again changed. There were more demand and cheaper labour costs from overseas countries, the pricing became the main competitive tool and cost became more of an issue than previously. The producers internationally based in advanced countries then had the opportunity to export back to U.S. This has led to the undeveloped countries offering competitive advantage for the location of production and finally they became exporters. This evidence suggests that the more a product is standardized; the location of production is more likely to change. At the same time there is also evidence that unstandardized products will maintain their location in more phosphorus location. This also explains; between 1950 to 1970 there were certain types of investments in Europe Western made by U.S. companies. There were areas where Americans have not possessed the technological advantage and foreign direct investments were made during that period. To resume, Raymond Vernon believes that there are four stages of production cycle: Introduction Growth Maturity Decline And the location of production depends on the stage of the cycle. Stage 1: Introduction New products are introduced to meet local needs, and new products are first exported to similar countries i.e. countries with similar needs, preferences and incomes. Stage 2: Growth A copy product is produced elsewhere and introduced in the home country to capture growth in the home market. This moves production to other countries, usually on the basis of cost of production. Stage 3: Maturity The industry contracts and concentrates and the lowest cost producer will win. Stage4: Decline Poor countries constitute the only markets for the product. Therefore almost all declining products are produced in LDCs. Vernons product life cycle model can explain both trade and FDI. By adding a time dimension to the theory of monopolistic advantage, the product life cycle model can explain a firms shift from exporting to FDI. Initially a firm when innovate a product, it produces at home enjoying its monopolistic advantage in the export market, thus specializes and exports. Once the product becomes standardized in its growth product phase, the firm may tend to invest abroad and export from there to retain its monopoly power. The rivals from the home country may also follow to invest in the same foreign countrys oligopolistic market. Vernons theory implies that overtime the main exporter may change from exporter to importer. This leads to the low cost producers becoming exporters. One weakness of this theory can be that Vernons view is ethnocentric. It can also be said that many new products are now produced in advanced economies such as Japan. Globalization means that there is more dispersed and simultaneous production of comparative advantage. The final weakness of this theory is that this study was carried out in the 60s. The worlds trading importing and exporting has changed immensely over the years.

Comparison and Contrast Sonny and Charlie Sonnys Blues and Babylon Revisited Essay

Struggling with an addiction is one of the most painful and dreadful experiences one could ever go through. It can start out small or simple, then all of a sudden it is a full on addiction. In James Baldwin’s â€Å"Sonny’s Blues† addiction is a force that is to be reckoned with. F. Scott Fitzgerald’s â€Å"Babylon Revisited†, paints the perfect picture of what addiction can do at its greatest. These stories can truly substantiate how addiction can put many obstacles up that are very difficult to overcome. It is well established in our society that overcoming adversity can lead to success in many levels. In â€Å"Babylon Revisited† and â€Å"Sonny’s Blues† both addicts have major struggles in facing and defeating hardships in their lives, but when they are finally gone life is back to purpose again. Despite a few dissimilarities â€Å"Sonny’s Blues† and â€Å"Babylon Revisited† , have a lot in common, such as, addiction, imprisonment, and salvation. First, these stories are similar because of addiction. In â€Å"Sonny’s Blues† we find that Sonny is addicted to heroin early on. â€Å"He had been picked up, the evening before, in a raid on an apartment downtown for peddling and using heroin. (434) Sonny had battled a long addiction to the harmful drug before finally getting in trouble and serving jail time. Sonny, unlike the other kids in Harlem, did not act hard or gangster. He had an older brother who tried to look after him as well. He had guidance and advice at a young age but the streets of Harlem took control. Sonny wanted to find an escape from Harlem; he turned to heroin as that choice. In â€Å"Babylon Revisited† Charlie is plagued by the addiction of alcohol. He used to frequent the bars every night. He spent many nights drunk under the influence of alcohol. He had a daughter who kept him on the straight and narrow. She was his motivation to beat the addiction. Charlie searched for meaning in the bottle. The recollection of the past paves the way toward the future. The hole that Charlie seemed to dig himself into with alcohol is something that he will never be able to forget. He has damaged more than just himself because of his addiction. These stories are similar because of addiction. Second, the stories are comparable because of imprisonment. The imprisonment is caused by the addictions. In â€Å"Sonny’s Blues† Sonny is a prisoner to Harlem, he realized early on that he was not going to break the stereotype of being a poor, black, inner-city kid from Harlem. He realized the obstacles and burdens that were ahead of him. His brother warned him several times how dangerous and corrupt life is in Harlem but Sonny never took it to heart. He then turned to heroin to find the escape he had been searching for all along, which led to his jail sentence. Now, Sonny was literally held captive to the very thing he was using for his escape. Yet, when he smiled, when we shook hands, the baby brother I’d never known looked out from the depths of his private life, like an animal waiting to be coaxed in the light. †(438) Sonny’s brother had viewed him as an animal who has been trapped in the misery of his life, and now that he is free, he wants to know if he is truly free from the addiction of the past. Sonny’s brother is trying to say that he felt like he never knew his brother before but now that he has suffered the life of prison, he can see the wounds that his dreadful past had caused. But he can still notice the heart of Sonny. He sees that deep down Sonny is the same he has always been regardless of his past. The narrator is finally confronted with the reality that Sonny is in fact his brother and he is now his brother’s keeper, a responsibility he had ran from the majority of his life. In â€Å"Babylon Revisited† Charlie is imprisoned by his past. He will never truly be able to forget his past. He is constantly reminded of it anywhere he goes in Paris. His alcoholism has led him to a life of drunken memories. He also cannot escape his failed marriage. The reminiscence of the past can forecast the future. Because Charlie lost his wife, he is prevented from living with his daughter, which is the thing that will help him bury his past. These stories are similar because of imprisonment. Finally, these stories are alike because they both feature salvation. In â€Å"Sonny’s Blues† Sonny gets his salvation through music. When he is released from prison he is looking to get away from the same life that got him there. He also knows that Harlem is a city full of despair and drugs, which he cannot avoid. But he finds his salvation through music. When he is urged to fall back into his old life he plays music to revive himself from it. â€Å"For, while the tale of how we suffer, and how we are delighted, and how we may triumph is never new, it always must be heard. There isn’t any other tale to tell, it’s the only light we’ve got in all this darkness. †(453) the narrator describes how music changes his brother into the man he wants him to be. In â€Å"Babylon Revisited† Charlie finds salvation in through his daughter. Even though his friends and family try to bring him down, the one thing he puts his faith into is his daughter. In order to be saved from something you must be consumed by something else. Charlie was consumed in his past and could not let go. But when he is with his daughter he finds relentless joy that he cannot seem to find anywhere else. These stories are similar because of salvation. Addiction consumed Sonny and Charlie. It was something that opened many doors that they did not want opened. It caused them both to lose their entire lives. Even though they lived they are forever haunted by the past of their previous addictions. These stories are similar because of addiction, imprisonment, and salvation.

European domination Essay

As the antebellum period began, America was approaching its golden anniversary as an independent political state, but it was not yet a nation. There was considerable disagreement among the residents of its many geographical sections concerning the exact limits of the relationship between the Federal government, the older states, and the individual citizen. In this regard, many factions invoked concepts of state sovereignty, centralized banking, nullification, popular sovereignty, secession, all-Americanism, or manifest destiny. However, the majority deemed republicanism, social pluralism, and constitutionalism the primary characteristics of antebellum America. Slavery, abolition, and the possibility of future disunion were considered secondary issues. Cultural and social changes were sweeping the cities of America during the period. Industry and urbanization had moved the North toward a more modern society with an unprecedented set of novel cultural values, while the South had essentially lagged behind in the traditions of the 18th century. The mixing of traditional folkways with a more modern vision of America had caused social influence, political authority, and traditional concepts of family to become uncertain, unstable, and somewhat ambiguous. (Volo & Volo, 2004) The history and sociopolitical influence of the African-American church documents an interminable struggle for liberation against the exploitative forces of European domination. Although Black religion is predominantly Judeo-Christian, its essence is not simply white religion with a cosmetic face lift. Rather the quintessence of African-American spiritual- mindedness is grounded in the social and political experience of Black people, and, although some over the years have acquiesced to the dominant order, many have voiced a passionate demand for â€Å"freedom now. † The history of the African-American church demonstrates that the institution has contributed four indispensable elements to the Black struggle for ideological emancipation, which include a self-sustaining culture, a structured community, a prophetic tradition, and a persuasive leadership. The church of slavery, which began in the mid-eighteenth century, started as an underground organization and developed to become a pulpit for radicals like Richard Allen and the platform for revolutionaries like David Walker. For over one hundred years, African slaves created their own unique and authentic religious culture that was parallel to, but not replicative of the slave-owner’s Christianity from which they borrowed. Meeting on the quiet as the â€Å"invisible church,† they created a self-preserving belief system by Africanizing European religion. Commenting on this experience, Alice Sewell, a former slave of Montgomery, Alabama, states, â€Å"We used to slip off in de woods in de old slave days on Sunday evening way down in de swamps to sing and pray to our own liking† (Yetman, 1970, p. 263). During the late 1700s, when slavery was being dismantled in the North, free Black Methodists courageously separated from the patronizing control of the white denomination and established their own independent assemblies. This marked the genesis of African-American resistance as a nationally structured, mass-based movement. In 1787, Richard Allen, after suffering racist humiliation at Philadelphia’s St. George Methodist Episcopal Church, separated from the white congregation and led other Blacks, who had been similarly disgraced, to form the African Methodist Episcopal Church (A. M. E. ) in 1816. The new group flowered. By 1820 it numbered 4,000 in Philadelphia alone, while another 2,000 claimed membership in Baltimore. The church immediately spread as far west as Pittsburgh and as far south as Charleston as African-Americans organized to resist domination. (3) Through community groups, they contributed political consciousness, economic direction, and moral discipline to the struggle for freedom in their local districts. Moreover, Black Methodists sponsored aid societies that provided loans, business advice, insurance, and a host of social services to their fellow-believers and the community at large. In sum the A. M. E. Churches functioned in concert to organize African-Americans throughout the country to protect themselves from exploitation and to ready themselves for political emancipation. During this same period, David Walker exemplified the prophetic tradition of the Black church with his â€Å"Appeal to the Colored Citizens of the World,† published between 1829 and 1830. Walker employed biblical language and Christian morality in creating anti-ruling class ideology: slaveholders were â€Å"avaricious and unmerciful wretches† who were guilty of perpetrating â€Å"the most wretched, abject, and servile slavery† in the world against Africans. To conclude, the church of the slave era contributed substantially to African-American social and political resistance. The â€Å"invisible institution† provided physical and psychological relief from the horrific conditions of servitude: within the confines of â€Å"hush arbors,† bondspeople found unfamiliar dignity and a sense of self-esteem. Similarly, the A. M. E. congregations confronted white paternalism by organizing their people into units of resistance to fight collectively for social equality and political self-direction. And finally, the antebellum church did not only empower Blacks by structuring their communities; it also supplied them with individual political leaders. David Walker made two stellar contributions to the Black struggle for freedom- -he both created and popularized anti-ruling class philosophy. He intrepidly broadcasted the conditional necessity of violence in abolishing slavery demanding to be heard by his â€Å"suffering brethren† and the â€Å"American people and their children† in both the North and the South. As churches grew in size and importance, the Black pastor’s role as community leader became supremely influential and unquestionably essential in the fight against Jim Crow. For instance, in 1906, when the city officials of Nashville, Tennessee, segregated the streetcars, R. H. Boyd, a prominent leader in the National Baptist Convention, organized a Black boycott against the system. He even went so far as to operate his own streetcar line at the height of the conflict. To Boyd and his constituents no setback was ever final, and the grace of God was irrefutability infinite. Then, with the advent of World War I (1914-1918) and the availability of jobs in the North, Blacks migrated to urban centers such as New York, Detroit, Chicago, and St. Louis–and they took their church with them. Hundreds of thousands of African-Americans packed not only their dreams, but also their Bibles, and struck out for the â€Å"promise land. † In exploding metropolitan enclaves they built thriving congregations like the 14,000-member Abyssinian Baptist church of Harlem, which won international acclaim for serving and organizing its people: it found them jobs, it secured them housing, it fought for their rights, and it directed their ballots. This was consistent with the â€Å"Social Gospel† as advocated by Black ministers who preached that societal sin–such as the starvation of children–could only be destroyed through Christian love and benevolent programs. To them the primary responsibility of the church was to establish ministries of social service that would eliminate injustice and abolish poverty in the African-American community, and this became the objective of many large urban assemblies. However, these impersonal metropolitan congregations with their grand strategies of social improvement did not appeal to all migrants, especially newcomers from the rural South. Instead, this group founded small assemblies in abandoned stores that offered them personal acceptance, belonging, identity, friendship–and perhaps most of all–a shelter from white racism. Hence, â€Å"storefront churches† had their genesis as part of the self-preserving culture produced by African-American Christians to ensure the survival of their communities. (Simms, 2000) Citing church membership figures accounting for fewer than twenty percent of the antebellum slave population, a number of revisionist historians have recently challenged the widespread view that Christianity was embraced by millions of slaves hungering for its message of love, hope, and salvation. And although revisionist critics have responded that such statistics provide a far from accurate gauge of just how deeply Christianity permeated the slave population, the question remains as to whether or not the mass conversion of as many as four million slaves within a single generation ever occurred, given that the vast majority had little or no exposure to Christian teaching prior to the Jacksonian period. Despite such controversy, nearly all interpretations of slave religion maintain that after about 1830, Southern planters, motivated by a desire for social control as well as sincere concern for the salvation of bondsmen, successfully introduced Christianity to the spiritually starved slave community. And even though support for this conclusion rests heavily on supposition and interpolation, it has nonetheless been presented in a number of the modern era’s most influential studies of slave religion. Local preachers were encouraged to minister to nearby plantations and, in regions lacking sufficient clergy, slaveholders, themselves, were urged to hold prayer meetings among bondsmen. Also, many churches invited slaves to join their congregations, often partitioning off separate areas such as balconies to enable them to worship alongside whites. Taken as a whole, then, it is difficult to deny that Christianity played an important role in at least some quarters of the slave community after 1830.

Harmonization of Accounting in Accounting Context

(a) Briefly explain what prompted some countries over the world to strongly advocate harmonization of accounting. The important reasons which necessitate harmonization of accounting practices are well contained in the observation made by Saudagaran. â€Å"While the initial efforts at harmonization were mainly championed by political bodies and professional accounting organizations, current pressures to harmonize are driven by investor groups who use financial statements, multinational companies which prepare financial statements, regulators who monitor capital markets, the securities industry (including stock exchanges) which view itself as being significantly impacted by the global diversity in financial reporting requirement, and developing†¦show more content†¦Another term, distinguished from harmonization, is standardization. It describes â€Å"a process by which all participants agree to follow the same or very similar Accounting practices. The end result is a state of uniformity† (Roberts et al., 1998) This state of uniformity is a condition in which everything is regular, homogenous or at least unvarying. (Samuels and Piper, 1985) Choi et al. claim that standardization implies that all Accounting principles and practices are the same. He describe standardization as â€Å"imposition of a rigid and narrow set of rules, and may even apply a single standard or rule to all situations† (Choi et al.,2002:291). The terms, harmonization and standardization, are often used in the same meaning. However, Kleekà ¤mper et al. detect that there is a difference between these two terms (Kleekà ¤mper et al, 2002). Standardisation is a process in which all countries should adopt the method of one country. In contrary, harmonization is understood as a reconciliation of different points of view. (Wilson in Riahi-Belkaoui, 2000) (c) Identify and explain the advantages of international harmonization. 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