Critical Theory and the Middle East Essay Example for Free

Critical Theory and the Middle East Essay Critical theory is actually tackled by two different intellectual traditions from which the term is derived – critical theory in literary studies and critical social theory. The former is primarily a form of hermeneutics, or knowledge that is gained through the interpretation in the understanding of the meanings presented through human texts and symbolic expressions. On the other hand, the latter is a form of knowledge that is self-reflective which involves both understanding and theoretical explanation which intend reduction of entrapment within systems like domination and dependence, in the advancement of emancipator interest to expand autonomy and reduce domination. Critical theory from a sociological perspective, is best defined as that social theory that is in contrast to some of the principles of the 20th century positivism, and is, in fact, sometimes referred to as negative philosophy. Contrary to the general idea that knowledge comes from people’s sense-experience, critical theory proposes rationalism which posits that the source of knowledge and the source of common humanity is the fact that humans are rational beings. This paper adopts the sociological perspective of critical theory, and relates it with the Middle East scenario, taking Qatar into particular focus, as an example of the Middle East countries. Historical Background The concept of critical theory dates as early as 1937, with Max Horkheimer of Frankfurt School giving meaning to it as a social theory that is oriented toward critiquing and changing the society in general, contrary to the traditional theory that is oriented merely in the understanding or explaining the society. Most accounts of the theory closely link it with the Frankfurt School of Social Research (or Frankfurt School which later became the International Institute for Research at Columbia University, New York in 1933), while some trace its origins to as far back through Hegelianism and Western Marxism. Most of the key contributors to the theory are employed at the Frankfurt Institute, like Theodore W. Adorno, Herbert Marcuse, along with Hokheimer who was the Institute’s Director at that time. The other contributors who were not employed at the Institute were Walter Benjamin and Ernst Bloch, both published their materials in the Institute’s journal as well as engaged in other activities of the Institute. Later on, in 1945, a certain Hannah Arendt also helped by extending the concern for liberation as developed in the works of the Institute. After 1945, in Germany, Jurgen Habermas and Axel Honeth continued the advancement of critical social theory. Marx’s Influence on the Critical Theory It has been said by analysts of today that the common thread between and among the German critical theory and the French post-structuralism is that they are both anchored on Karl Marx’s theory of social change, which generally proposes for philosophers and thinkers to not just interpret the world, but rather change it. Such Marxian theory has been revised by critical theorists to posit that the critical theory rests on the concept of intervention which comes from appropriate understanding of the past and present conditions which provides adequate insight towards change, or possibilities of it. Further down the history of critical theory, Marx’s great influence can be traced with the Praxis School, which was a Marxist humanist philosophical movement originating from Zagreb and Belgrade in Yugoslavia in the 1960s. This Praxis School was closely linked with the Frankfurt School and the Critical Theory. In fact, the term critical theory is derived from Marx’s concept about his work Capital as a form of critique of political economy. Middle East in Context The Middle East or the Muslim world in particular, has been perceived by the rest of the world as an oppressive society where only men have the freedom to live the way they want to live, while women are repressed and stay in the shadows of their men. It is anchored basically on the Islamic teachings which have shaped the Muslim people’s beliefs, culture and traditions. In a traditional Muslim society, the women are raised and trained to obey and serve men without questions or opinions. Muslim women are not allowed to decide on anything, even for their own personal concerns, since it is the men who have the right to decide – this comes from the practice of betrothing the women, and the men paying dowry for the women they marry. This technically makes the women possessions of men. Through the years, the plight of Muslim women who also want to pursue careers, who also want to live freely and have more options than to be betrothed and raise a family, have been slowly heard by the world. Through the years, things have changed dramatically and drastically in the Muslim World. Contemporary Muslim societies have successful Muslim women on boob tube talking about pleasurable sex, albeit maintaining that it be in the context of marriage, but still, such freedom to speak about sex in public was a big taboo in years past. Qatar’s Shiekah Muzah Bint Nasser Al Misned, is another example of an emancipated lot of Muslim women now successfully treading career paths that were never trodden before. How did it all happen? What brought about such changes in the society that was once repressive but now tolerate and allow women to have choices? Critical Theory in the Middle East (Qatar) The Middle East, particularly Qatar, has gone through a lot of upheavals, significantly changing the social, political and cultural landscape of the nation. Applying the critical social theory, which seeks to critically study the interrelated facets of society – political, economic and social – with interventions appropriately based on understanding, Qatari society has been led by its leaders into a more tolerant society in the interest of further development and advancement. Looking back to the socio-political and economic landscape that gave birth to the Marxian theory and the critical theory, it was a repressive society and constrictive governmental policies that were sought to change by the proponents. Mere analysis and understanding of such society and government were not enough, and thus interventions based on appropriate understanding was proposed. The Qatari situation is no different. Awakening to the real situation, deep understanding of them, led the people and the leaders to create changes which now manifest in its media, which is rich in stories of women achievers. One of the leading women figures in Qatar is none other Her Highness Shiekah Muzah Bint Nasser Al Misned, who heads the nation’s Qatar Foundation for Education, Science and Community Development. Summary The sociological definition of critical theory generally posits that it is necessary that matters be tackled in a multi-dimensional perspective, and that rationalism is as a key to understanding situations need to be coupled with interventions. In societies where societal norms tend to repress some sectors’ freedom, it is a necessity to pursue a critical outlook of the situation and provide measures to address the issues. In Qatar, for instance, the nation underwent various upheavals which significantly changed its social, political, cultural and economic scenarios, giving freedom to women as they have never experienced before. Personal Opinion Oppression or repression of any kind is always an unpleasant situation, much less to a more vulnerable group in the society, the women. History is replete with situations of oppression and repression, and almost all those situations ended up wrecking nations, which means that ultimately, the people are wrecked as the ultimate victims. The proponents of critical social theory emphasizes the rational nature of people which, if given deeper interpretation, only emphasizes that as rational beings, people must be treated as such, rational. Further, the argument of Marx that it is not enough for people or philosophers to merely interpret society, but rather must change it, rings a bell of truth in the contemporary times. For instance, in the Middle East, much have been written about the societal repression, but only recently have changes been felt and manifest. Only when some things have been done to change the situation. References Ahmed, L. , 1993, Women and Gender in Islam: Historical Roots of a Modern Debate Edition: reissue, illustrated, Published by Yale University Press, 1993. Calhoun, C. J. , 1995, Critical social theory: culture, history, and the challenge of difference, Edition: reprint, Published by Wiley-Blackwell, 1995. Held, D. , 1980, Introduction to critical theory: Horkheimer to Habermas,Published by University of California Press, 1980. Swank, A. ,2007, Sexual healing: How big is kalaam kibeer? , Arab Media and Society. Issue 2, Summer 2007, Published by The American University in Cairo. UNDP-POGAR, 2007, Women in public life, gender and women, Gender and Citizenship Initiative, 2007.

Inflation Rate and GDP Growth of Pakistan

Inflation Rate and GDP Growth of Pakistan CHAPTER 1: The topic of this research is relationship between inflation rate and GDP growth of Pakistan. Nowadays in Pakistan inflation rate is high, when inflation crosses logical limits, it has negative effects on GDP growth. It drops the value of money, resulting in uncertainty of the value of profit loss of borrowers, lenders, buyers and sellers. The rising the uncertainty in saving and investment. In Feb 2009 CPI Inflation rate of Pakistan was 22.97% and GDP was 5.8%. GDP and inflation rate negative correlation present even when other factors are included to the study and the investment rate, population of growth, and the constant advances in technology and still when the factor in the effects of supply shocks features of a part of the observed period 1.2 PROBLEM STATEMENT: In this research determine how much rate of inflation affect the GDP growth of Pakistan. In this research also determine inflation rate significantly affect the GDP growth of Pakistan. GDP shows the economic performance of a country so it is of most importance for concerned departments and economists of that country. On the other hand rising inflation can impact negatively on GDP and the objectives that a country achieves can be demolished by rising inflation. 1.3 SIGNIFICANCE OF RESEARCH: If GDP growing fast and rate of inflation is falling down, it is good for the economy. More money comes in Pakistan and financer invests more and more capital. GDP indicates all sectors such as agriculture, telecommunication, services, manufacturing and Per Capita Income. These all indicators represent the countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy. If these sectors were growing fast, countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s economy also grows faster. Foreign investors observe the market condition of Pakistan and foreign investors must see the GDP Inflation Rate of Pakistan. If the GDP growing faster and inflation going down, foreign investors invest more money into Pakistan. If GDP is growing faster, the investor earns more money and achieves good profit and aspires to keep doing business for long term and expects less risk for the loss. Investors also expect for greater dividend in real terms, if rate of inflation is dropping down. This research is also significant for foreign investor and domestic investor of stock market. If inflation is increasing, investors invest less in market because investors do not expect good profit and dividend for the shares and also expect huge risk in market for long term. If any countryà ¢Ã¢â€š ¬Ã¢â€ž ¢s inflation rate is increasing, it is very difficult for financial institution to maintain the trust of investors because there is a chance of loss for the investors. This research is also significant for exporters. Exporters must see the inflation and GDP of Pakistan. If inflation is increasing, exporters export fewer goods because goods are expensive for exporters due to high inflation. Exporters export more goods, when inflation is low because goods are affordable for exporters and easy to export goods. This research is also significant for fresh graduate students. If inflation is high, there is less chance of jobs because the rate of unemployment is also high due to inflation rate. Fresh graduate also do not start business because it is carries more risk and there is chance waste of capital. 1.4 HYPOTHESES: H1: There is a negatively relationship between the Inflation rate and economic growth of Pakistan. H2: Inflation rate significantly effect on economic growth rate of Pakistan. 1.5 SUMMARY OF RESEARCH: The overall summary of this research defined in the following parts: First chapter is Introduction. In this part describe overview of all research, research problem, hypotheses of this research and definitions used in this research. Literature Review is second chapter. Describe summary of all articles, which related to this research. Third Chapter is Research Method. In this part describe data collection method, how sample size of this research and also describe technique of this research. Fourth Chapter is Results. In this part includes interpretations and findings in relevance to the hypotheses test. In this part also describe hypotheses assessment summary in table form. Fifth and last Chapter is Conclusion. In this part includes discussion based on this research finding in setting with the past research findings. In this part also describe some recommendations and implications of this research and also describe future research possibilities. Ending this part with conclusion. 1.6 DEFINITIONS: GDP and Inflation are the key macroeconomic indicators of the economic performance of any country. The relationship and cause affects are very important for any economic performance of the country. GDP Economic Growth: GDP indicates only currently produced goods and services. It is a flow measure of output per time period. For Example, per quarter or per year and indicates only goods and services produced during this interval. Such market transactions as exchange of previously produced houses, cars or factories do not enter into GDP. However, two types of goods used in the production process are counted in GDP. The first is Capital Goods and other type of goods is Intermediate Goods (Froyen, 2005). Components of GDP: GDP is broken down into the components. The first component is Consumption component of GDP. Consumption consists of the household sectors. Consumption can be further broken down into consumer durable goods (e.g., automobiles, television), nondurable consumption goods (e.g., foods, beverage, and clothing) and consumer services (e.g., medical services, haircuts) (Froyen, 2005). The second component of GDP is Investment. Investment is part of GNP (Gross National Product) purchased by the business sector in addition residential construction. Investment divided into three sub components. First is business fixed investment, second is residential construction investment and final id inventory investment (Froyen, 2005). The third component of GDP is government purchases. It is goods and services that are the parts of recent output that goes to the government sector such as federal government, state and local government (Froyen, 2005). The final component of GDP is Net exports. Net Exports equal total (gross) export minus imports. Gross exports are currently produced services goods and sold to foreign buyers, should be counted in GDP. Imports are purchases by domestic buyers of goods and services produced abroad and should not be counted in GDP. Imported goods and services are, however, included in the consumption, investment and government spending totals in GDP. Therefore, need to subtract the value of imports to arrive at the total of domestically produced goods and services (Froyen, 2005). Inflation: Inflation is when prices continue to keep rising, typically as a result of overheated economic growth or extra capital in the market search for too few opportunities. Wages usually creep upwards, so that companies can retain good workers (Amadeo, 2008). How Protection Inflation: If person are locking inflation protect alone, one best way to protect. Person purchase treasury bills and bonds; there pay fixed rates of interest. However, twice a year the governments readjust the principle in response to changes in the CPI, published monthly by the Statistics Bureau. Ità ¢Ã¢â€š ¬Ã¢â€ž ¢s mean, as inflation increases, the value of bonds increases. This is best way for protect inflation, when inflation increases (Amadeo, 2008). Aggregate Demand Theory: Aggregate Demand Theory shows that the negatively relationship between Inflation rate (price Level) and output/income (National Product). Aggregate Demand theory was developed by the English economist John Maynard Keyness (1883-1946). Term of à ¢Ã¢â€š ¬Ã‹Å"Aggregateà ¢Ã¢â€š ¬Ã¢â€ž ¢ was also used as à ¢Ã¢â€š ¬Ã‹Å"aggregate spendingà ¢Ã¢â€š ¬Ã¢â€ž ¢ and à ¢Ã¢â€š ¬Ã‹Å"aggregate expenditureà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Case and Fair, 1992). How Aggregate Demand (AD) Curve deriving: The aggregate demand (AD) curve shows that the negative/inversely relationship between the aggregate output/income and the Inflation/price level and the aggregate demand (AD) curve is showing downward sloping (Case and Fair, 1992). Figure 1.1 INFL2 INFL1 Inflation Rate AD y2 y1Real Output/Income (National Product) (Source: Case and Fair, 1992) Reason for downward-slopping Aggregate Demand Curve: The increase price level/inflation causes the demand for money to increase, which cause the interest rate to increase and then the higher interest rate causes aggregation out to down (Case and Fair, 1992). The decrease in consumption brought about by a rises in the interest rate contributes to the generally fall in output. (Case and Fair, 1992). CHAPTER 2: LITERATURE REVIEW Metin (1998) analyzed the empirical relationship between inflation and growth for the Turkish economy by a multivariate co-integration analysis. Metin (1998) developed model shows that the scaled income growth significantly affects inflation in Turkey. The qualified model of inflation was constant and it estimated a model previously. In this paper developed model because if inflation change one percent so it significantly affect to Growth Rate. An extensive literature had examined the relationship between the budget deficit/Income growth and inflation. At a theoretical level, Sargent and Wallace (1981) showed that under certain conditions, if the times paths of government spending and taxes were exogenous, bond-financed deficits were non-sustainable, and the central bank should eventually monetize the deficit. Money supply and inflation was rising in the long run. These findings had subsequently been generalized for the open economy case and for alternative forms of financing. Increase money supply and inflation in the long run due to the government spending and economical condition were not sustainable (Scarth, 1987; Langdana, 1990). Metin (1995) analyzed inflation for Turkey using a general framework of sector relationships and found that fiscal expansion was a determining factor for inflation. The excess demand for money affected inflation positively, but only in the short run. On the other hand, imported inflation, the excess demand for goods, and the excess demand for assets in the capital markets had little or no effect on inflation. A key policy implication of was that Turkish inflation could be reduced rapidly by eliminating the budget deficit. The demand for money, assets and goods impact on inflation (Metin, 1995). The losses were automatically financed by the credits extended by the Central Bank to the SEEs, resulting in high money growth. For 1950 period in Turkish inflation rising and balance of Payment had difficulties. Most the private firm purchase commodities at official price and reached experienced losses (Aktan, 1964; Okyar, 1965; Fry, 1972; Krueger, 1974, Onis and Riedel, 1993). Metin (1958) implemented a fairly typical International Monetary Fund (IMF)-supported stabilization program, which improved the foreign-exchange situation and drastically reduced inflation. The most important component of the program was an increase in the prices of SEE goods, a component that was featured prominently in the 1970 and 1980 reforms as well. Raising those prices in 1958 resulted in an immediate and once-and-for-all increase in the price level, after which the reduced rate of expansion of Central Bank credits reduced inflation. Metin (1958) analyzed inflation dropped from 25% in 1958 to less than 5% in 1959, real gross domestic product (which had been declining) started growing immediately due to the greater availability of imports. Metin (1998) analyzed that Turkey was among the more rapidly growing developing countries during most of the 1960s, with an annual inflation rate of 5%-10%. The nominal exchange rate was kept constant after the 1958 devaluation. Investment spending increased and was financed mainly by foreign aid. In the late 1960s, foreign id did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth. Turkeyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Economic volatility in deferent sectors such as in the late 1960s, foreign aid did not increase, but the rate of investment spending was maintained. In addition, some difficulties appeared in obtaining imports, creating visible restraints on economic activity and growth Barro (1995) studied that If a number of countries characteristics were held constant, in that case regression results shows that an raise in average inflation of ten proportion points per year reduces the growth rate of real per capita income GDP by 0.2 to 0.3 proportion points per year and lowers the proportion of investment to GDP by 0.4 to 0.6 proportion points. Over here come to know that some characteristics were stay constant but some of effected due to increase of inflation rate result reduce the growth rate of real per capita. Barro (1995) analyzed the result that inflation control on growth looks little; the long term inflation effects on standards of living were considerable. such as, a shift in monetary policy that increase the long-term average of inflation rate increase by ten percentage points per year was projected to down the level of real GDP after 30 years by 4% to 7%, more than enough to justify a strong interest in price constancy. The inflation rateà ¢Ã¢â€š ¬Ã¢â€ž ¢s influence intensively effected lives standard which identifies by the Monitory Policy, average inflation rate and GDP. To evaluate the effects of inflation on economic growth, Barro (1995) Regression Equation method used to which many other determinants of growth were held constant. The framework was one that in this paper had developed and applied previously. Barro (1995) identified that tool through in this paper assessed influence of inflation on the development of economy and to evaluate the effects of inflation on economic growth. Fama (1981) explained these anomalous stock return-inflation relations. The data were consistent with the hypothesis that the negative relations between stock returns and inflation positive relations between actual variables and stock returns, which were more fundamental determinants of equity values. The inflation had negative influence on stock return and also real variable Metin (1995) examined the relationship between the public- sector deficit and inflation. System co-integration analysis suggests three stationary relationships. Although weak relation does not hold for variables concerned (except Ay), one was still able to develop a conditional model for inflation. In that model, an increase in the scaled budget deficit immediately increases inflation. Real income growth had a negative immediate effect and positive second-lag effect on inflation. The shortfall affected inflation at a second lag. These dynamics were consistent with institutional and general knowledge of the economy. The conditional model of inflation was constant over the sample period, even though several significant structural breaks occurred during the period. Breaks included three devaluations, structural stabilization, and economic liberalization programs. The major finding from the new equation was that budget deficits (as well as real income growth) significantly affect inflati on in Turkey. Braun and Tella (2000) studied that there was a positive partial correlation between inflation and corruption for several countries for which data was available. Furthermore, argue that causality was from inflation variability to corruption. There was a positive relationship between corruption and inflation. Dornbusch and Frenkel (1973) had developed alternative approaches to be analysis of growth and inflation. found that the effect of inflation on per capita real balance, consumption and the capital-labor ratio remain ambiguous if the yield on capital was a function of per capita real balance or if consumption was an increasing function of the rate of inflation. That ambiguity was in general not entirely removed by consideration of maximization and a specification of the nature of the service of real balance. The alternative effects inflation on per capital real balance, consumption and the capital labor ratio. Fama (1981) tested out the hypothesis that the negative relations between real stock returns and inflation observed during the post-1953 period were the consequence of proxy effects. Stock returns were determined by forecasts of more relevant real variables, and negative stock return-inflation relations were induced by negative relations between inflation and real activity. This relation inflation, real activity and stock returns define through the money demand and the quantity theory of money. Barro (1995) evaluated the effect on investment shows up clearly only for inflation rates above 10%à ¢Ã¢â€š ¬Ã¢â‚¬Å"20% per year. For lower inflation rates, the estimated effect of inflation on the investment ratio tends not pointedly different from zero. The investment effects positively when inflation above 10% to 20% per year but lower inflation effect on investment negatively and zero inflation not significantly effect on investment. Barro (1995) analyzed that the Inflation effects on growth and investment were significantly negative and long term Inflation to reduce the value of growth and investment. The analysis was that the effects of inflation on growth were significantly negative relation and also the effects of inflation on investment were significantly negative relation. Barro (1995) the values of inflation for three periods (i.e. 1965-75, 1975-85 and 1985-90) were not differing significantly from one to another. If different coefficient of inflation test for each period, then resulting values was not significantly from one to another period. If the inflation rise 10% year, growth rate of real per Capita income of GDP by 0.2% to 0.3% point per year. Khan and Senhadji (2001) located that under floating exchange rates, growing domestic inflation can move up long-run output if credit was rationed (inflation was low). However, there exist inflation thresholds as were observed empirically inflation and output were positively (negatively) correlated below (above) the threshold. With fixed exchange rates, the scope for credit to be rationed depends in a relatively complicated way on the rate of foreign and domestic inflation, and increasing foreign inflation always reduces long-run output. Barro (1995) calculated the standard deviation and analyzed the result was that if the standard deviation of inflation was included in the regressions, then the estimated coefficient on average inflation changes little, and the estimated effect of the standard deviation of inflation was still around zero. Standard deviation of inflation included in the regression, result of estimated coefficient on average inflation was little and standard deviation was around zero. Results were directly related to the literature on the costs of inflation. Despite a long tradition of research on the subject, empirical estimates were scant. Following Bailey (1956) estimating the area under the money demand curve, Fischer and Lucas (1981) found that for the US, an inflation rate of 10-percent per annum would cost 0.3- 0.9 percent of national income each year. More recently, Fischer (1993) estimated in a cross-section of countries that an increase in the inflation rate of 100 percentage points would lead to a reduction in the annual growth rate of 3.9 percentage points. Barro (1997) found that the negative relation between inflation and growth was stronger for low levels of inflation, and that inflation variance was also negatively correlated with growth. The estimated in a cross section of countries that an increase in the average inflation rate of 10 percentage points per year leads to a reduction in the growth rate of GDP of 0.3 to 0.4 percentage points per year. Braun and Tella (2000) presented the cross section estimates of the correlation between inflation variability and corruption. Average the data for 1982-1994 to obtain a maximum sample. Document a positive and significant correlation between measure of noise in the price system (Inflation Variance) and corruption. The Positive and significant correlation between the inflation and corruption Barro (1995) analyzed that it was also possible that the inflation produce a positive and significant relationship between inflation and growth. This thing happen, when demand of goods increase. Braun and Tella (2000) analyzed the result was that the increase in the cost of audit leads to an increase in corruption and in the extant fixed cost of investing. This in turn leads to a decline in aggregate investment and growth. Using the evidence that relative price oscillations increase with inflation variability, assume that the cost of audit was an increasing function of inflation variability. If corruption was increasing, Growth and Investment was decrease because negatively impact on growth and investment. Inflation was increasing due to corruption was rising. Barro (1995) evaluated that in recent years, many central banks, including the Bank of England, more emphasis on price stability. One indicator concern, the Bank of England began in February 1993 to issue the Inflation Report. Central bank gave more importance on price stability and monetary policy defines in term of interest rate or growth with stable and low inflation. In this paper contributes to closing this perception gap. Find a theoretical and empirical link between inflation variability and corruption. Since corruption had been found to had a negative/inversely impact on growth and investment. There was an indirect, corruption affected cost of inflation. Estimate that a one standard deviation raise in inflation variability from the median can lead to a reduction in the annual growth rate of one third of a percentage point and a reduction in the investment rate of 1-percent. Corruption was negative impact on growth and investment. Corruption affected cost of inflation (Mauro, 1995; Knack and Keefer, 1995; Kaufmann and Wei, 1999). Fama (1981) found the result was that the negative relations between inflation and real activity predicted by the money demand-quantity theory model and observed consistently in the regressions were negative partial correlations. The relations between inflation and real activity predicted by the money demand quantity theory model Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Repeating the above calculations obtain that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Braun and Tella (2000) estimated the effects were also economically significant. Researcher basic cross section approximate suggests that a one standard deviation increase in the variance of inflation associated with an increase in corruption of up to 0.47 points, or 32-percent of the standard deviation of corruption. Braun and Tella (2000) estimated can be used to calculate an indirect cost of variable inflation that operates through corruption. Researcher find that an increase in inflation variability of one standard deviation from the median can lead to a decline in investment of 2.7-percent of GDP, and to a decline in the annual growth rate of 0.9 percentage points. Increase in inflation of one standard deviation leads to decline in investment of 2.7 % of GDP and decline in growth 0.9 % points. Braun and Tella (2000) calculated that increase in inflation variability of one standard deviation from the median leads to an increase in corruption of 0.12 of a standard deviation. Braun and Tella (2000) analyzed the result was that an increase in inflation variance of one standard deviation leads to a decline in investment of 1.02 percent of GDP, and a decline in growth of 0.33 percentage points. Braun and Tella (2000) estimated for the impact of an increase in inflation variability of one standard deviation range from 1.02 percent to 2.72 percent of GDP for investment, and from 0.33 to 0.88 percentage points for growth. Increase in inflation of one standard deviation leads to decline in investment of 1.02 % of GDP and decline in growth 0.33 % points. Fama (1981) analyzed two types of models for expected inflation were estimated and compared. One approach was interest rates into expected inflation rates and expected real returns. Since the interest rates were observed at the beginning of the time intervals of interest, this approach estimates the ex ante expected inflation rates which eventually allow to document the negative relations between ex ante expected stock returns and expected inflation rates. The negative relation between the expected stock returns and expected inflation rates Fama (1981) analyzed second approach, based on money demand and quantity theory of money, estimates conditional expected inflation rates as functions of money and real activity growth rates. Since measures of current money and current and future real activity growth rates were major explanatory variables, these conditional expected inflation rates were not ex ante measures. Fama (1981) also analyzed the money demand-quantity theory models of inflation provide the empirical economic story which explains why the ex ante expected inflation rates extracted from interest rates were also strongly related to current and future real activity. Inflation rate were strongly related to interest rate because of money demand theory and quantity theory of money. Fisher (1911) observed the relations between inflation and the measures of current and future real activity which this model presumes were important in the determination of stock market returns. The theoretical basis for the study of inflation-real activity relations was a rational expectations combination of money demand theory. The theory and empirical results were abstracted from my 1980 paper. In this paper presented just enough of the theory and evidence to document the inflation-real activity relations of interest. Verme (2004) was study the Walrasian equilibrium; changes in either the domestic inflation rate or in the world inflation rate had qualitatively similar effects. When credit was rationed, changes in the domestic inflation rate and the world inflation rate always affect the domestic capital stock differently. This occurs because credit rationing breaks the link between the marginal product of capital and the rate of interest on loans: what matters was how the domestic and foreign rates of inflation affect the self-selection constraint and researcher affect this differently. Whenever there were restrictions on capital availability, the domestic and foreign inflation rates react differently on the economy. Verme (2004) analyzed theory of Walrasian equilibrium was that changes in the domestic rate of inflation can had very different effects under credit rationing. Again, this happens because what matters was how the domestic inflation rate affects the self-selection constraint. Higher domestic inflation can actually relax this constraint by increasing the rate of interest on loans, and hence attenuating the incentives of agents to misrepresent the type. The domestic inflation can also cause dearth of capital if the interest rate rises for the reason of inflation. Verme (2004) presented a model of a small open economy where financial intermediaries make a real allocate function then consider the relative merits of different exchange regimes, focusing my attention on policies that had been implemented in Latin America and, particularly, in Argentina and Peru. This document puts forward an example of an open economy where financial intermediaries may cause situations where credit may not always be restricted. Verme (2004) observed that the inflation thresholds as were observed empirically: increasing inflation beyond the threshold level reduces domestic growth output. However in economies with fixed exchange rates, increases in the foreign (and domestic) rate of inflation always had adverse consequences for real activity. In case of variable exchange rates, inflation can encourage production if credit was limited, however if the inflation exceeds beyond a certain limit then it reduce the output. Mauro (1995) estimates may be used to derive an indirect, corruption-induced, cost of inflation variability. This cost can be calculated by multiplying estimated of the impact of inflation variability on corruption by exogenous estimates of the impact of corruption on investment and growth. Given that Mauro (1995) presented such estimates, this calculation was relatively straightforward. The cost of inflation can also increase if corruption impacts investment and growth. Fama (1981) explanation of the absence of positive simple relations between money supply and real activity growth rates during the post- 1953 period was an interesting topic for future research. This was especially so since the monetary measure used, the growth rate of the base, was the one most under the control of the monetary authorities. Studying the relationship between money supply and growth rate reveals that the said rate was under most control of the controlling authorities. Braun and Tella (2000) estimated that an increase in corruption of one standard deviation leads to a decline in the average investment rate of 8.5 percent of GDP. In this paper also estimates that GDP growth would decline by 2.76 percentage points per year. It was estimated that a slight increase in the corruption can greatly decline the investment. Fama (1981) tested that the effect hypothesis implies that actions of real activity should dominate dealings of inflation when both were used as explanatory variables in real stock return regressions. In monthly, quarterly, and annual data, growth rates of money and real activity eliminate the negative relations between real stock returns and expected inflation rates. In the annual stock return regressions unexpected inflation also loses its explanatory power when located in competition with future real activity. Sometimes inflation loses its quality of increasing growth rates when there was real economic growth in the future. Fama (1981) analyzed the hypothesis for both common stocks and bonds were that expected real returns were determined in the real sector. Spurious negative relations between inflation and expected real returns were then induced by a somewhat unexpected characteristic of the money supply process during the post- 1953 period, in particular, the fact that most of the variation in real money demanded in response to variation in real activity had been accommodated through offsetting variation in inflation rather than through nominal money growth. After the analysis of securities, it was accomplished that there exists a negative/inversely relationship between inflation and expected real returns. The severe drought in India during the current cropping season may put more pressures on international prices of a number of commodities i.e. international sugar prices had already risen substantially, which had also impacted domestic prices, which sufficient domestic availability, Increasing the int

Design and Simulation of Automatic Load Tap Changer

Design and Simulation of Automatic Load Tap Changer   Introduction CE 3.1 This is the third project I did as a graduate Electrical Engineering while pursuing my Bachelor of Engineering in the field of Electrical Engineering from Balochistan University of Engineering and Technology, Balochistan, Pakistan. I wanted to conduct a project that would enable the transformer to attain different voltage levels using a load tap changing transformer and thus wanted to learn about different electrical/electronic components that would be needed and thus learn about its design and how to implement it. I was able to improve my written and oral presentation skills as well as my interpersonal skills by the successful completion of this project. Background CE 3.2 For my third project as an undergraduate in electrical engineering, I wanted to start working on a project during my second year. I wanted to learn about the different and commonly used electrical/electronic components, the working mechanism and the implementation in complex projects. This served as a motivation to conduct a project on Load Tap changers. I had studied during my bachelors that Transformer Load changers are an integral part to any power grid whether in big projects or small. I knew that there were the Mechanical Load tap changer and the Electronic Load Tap Changer. I wanted to design an automatic Electronic type Load tap changer to the problems with reliability and maintenance of the Mechanical type.Also, I learned that by using Thyristors to take the on-load current while the main contacts change over from one tap to the next, the design would have no moving parts and thus have a longer service life. And it is due to this reason that I selected the Design of Automatic Load Tap Changer for my project. CE 3.3 The objective of this project is to design and build a prototype of a fully electronic on load tap changer for power transformers by using Triacs as switching devices and microcontroller as the triggering circuit. CE 3.4 CE 3.5 I successfully completed this project by engaging in the following activities: I divided my project into Power circuitry and Control circuitry. I designed the power circuitry to basically consist of a tapping transformer connected to the load through the switching devices. I designed the Control circuitry to sense the voltage signal fed from the step down transformer and compare it to a pre-set reference value. I used a Triac which is a three terminal semiconductor for controlling the current in both directions. I used a Power Circuit, Microcontroller Unit, Analog To Digital Converter, Zero Crossing Detector, Multiplexer, LCD, Buzzer as the parts of the circuit I completed the project within the time frame specified by the university. I conducted detailed literature review on all the components used here. Personal Engineering Activity CE 3.6 I approached a professor with an idea of conducting a project with transformers. Along with my team mate, I had a lot of brainstorming sessions and review meetings with my project supervisor to select a suitable topic. I suggested that I work on a project that was concerned with designing and fabricating a system based on Automatic Electronic Load Tap Changer of a Transformer and the supervisor agreed to this and asked us to begin working on this by first conducting a literature review on all the components we would require and the working of this project and to start working on this project. CE 3.7 I first started with the design of the Power circuitry which consists of our main Tapping Transformer. The tapping is provided at 231V, 225V, 220V, 214V, 209V and 0V. Furthermore, I decided to incorporate BTA16 Triacs. I also decided to build a snubber circuit using 100ÃŽÂ © resistor and a 104pF capacitor. I decided to use the Triac instead of the SCR because a triac operates in the same way as the SCR however it operates in both forward and reverse directions. Also, I had to ensure the TRIAC will turn off correctly at the end of each half-cycle of the AC power. And due to this reason I used the snubber circuit to assist in the turning off and on. I used a MOC 3021 to assist with this. Circuitry Diagram The following are the components I used for this project: I used the AT80S8252 Microcontroller or the 89C52 which is a high performance CMOS 8bit microcomputer of sorts. ADC 0804 Analog to Digital Controller which feeds the input to the microcontroller. I used a step down transformer to provide samples to the ADC of the load.-   Zero Crossing Detector to provide the required pulses for the AND logic along with the multiplexer. A Multiplexer or Mux is a device that selects one of several analog or digital input signals and forwards the selected input into a single line.In my project, the Interlocking mechanism is achieved by using Multiplexer. Thus, at any instant of time, no two triacs would be in their ON STATE. This is particularly important and advantageous in case the logic of microcontroller fails. I used a Liquid Crystal Display (LCD) to display the output voltage that would be across the load side. I used an Optocoupler MOC 3021 to transfer signals between different elements of a circuit. CE 3.8 The following is the manner of the working of this project using a block diagram: The block diagram shows the basic strategy, as to how the Load Tap Changer will work automatically. I used TRIACs as the switching devices. I made sure that the The transformer has five tappings at the voltage level. Each of these tappings is connected to the one of the main terminals of the TIRAC. The second main terminals of all the five TRIACS have been shorted. So at any given time when any of the TRIAC has been switched on there is only one conducting path to the load. I used a step down transformer to step down the voltage level to instrumentation levels so that it can be used in the control circuitry. As the voltage increases or decreases depending on the nature of the load the voltage at the primary of the step down transformer varies, resulting in an equivalent variation at the secondary side. I then had to make sure that this sampled AC voltage is rectified to an almost smooth DC value. This DC voltage is then fed to the analog to digital converter, which gives a digital output that can be understood by the microcontroller. The ADC output is fed to the microcontroller which had been already programmed to compare this incoming value to a set of predefined values and send a high signal on one of its port bits. The output of the microcontroller is fed to a multiplexer. It is incorporated to ensure that at any given time, even if the logic fails there is only 1 conduction path to the load. I.e. only one TRIAC is switched on at any instance in time. I also used the zero crossing detector in order to detect the instance when the AC voltage crosses the zero amplitude mark. The output of this zero crossing detector is in the form a pulse generated every half cycle. I then fed the output of the zero crossing detector and the multiplexer to the AND logic as shown in the diagram. Each time the zero crossing detector gives an output, a pulse is generated at the output of the AND logic This output of the AND logic is basically our trigger signal for the switching devices i.e. the TRIACs however in order to isolate the control and high voltage circuitry and to implement DC triggering on the TRIACs operating at AC voltages the Optocouplers have been incorporated. So basically the Optocouplers are only there to provide isolation. CE 3.9 The following are simulation results I obtained: When input is 220v, the Triac on Tap 3 is on. When the input is 225v, the Triac on Tap 2 is on. Summary CE 3.10   Ã‚   I successfully completed the project titled Design and Simulation of Automatic Load Tap Changer along with my team mate. I learned how to build a circuit board and how all the different electrical components talk to each other in this project. I learned how important the Load Tap Changer is for any power grid and how useful it is over the Mechanical type Load type changer. By successfully completing this project, I was able to improve my written, oral and interpersonal skills.

Rasputin Essay -- essays research papers

Gregory Efimovich Rasputin is one of the most debated characters of the 20th Century. Thousands have discussed whether Rasputin was a holy man who came to the aide of the royal family or more simply, a cheat who thrived in womanising and in truth, a man who had a debauched sexual appetite. After all the word "Rasputin" in Russian mean "the debauched one". But in the following pages, I will try to explore a better side of Rasputin; I will attempt to give an accurate analysis of Rasputin and let the facts prove who Rasputin was. On 10 January 1869, in the midst of a harsh winter, Gregory Efimovich Rasputin was born in the Siberian village of Pokrovskoye. Little is known of his background. His father, Efimy, was a farmer of moderate success, married to a wife, Anna, who had already provided him with an older son, Dimitri. Although later enemies were to allege that Rasputin's surname was in fact an insult meaning "debauched" in Russian, it had been the family name for years, derived from the word for a fork in the road. Pokrovskoye perched on the banks of the Tura River in Tobolsk Province; Pokrovskoye was a typical Russian peasant village where few if any were educated and town’s people were religious, narrow minded and fearful. When Rasputin was eight years old, he suffered his first tragedy. He was playing with his older brother along the banks of the Tura when Dimitri fell and was drowned. Shortly thereafter, Rasputin began to startle his fellow-villagers by making amazing predictions. In one incident, Rasputin correctly identified a horse thief. As a teenager, Rasputin paid a visit to the local Verkhoturye Monastery. Here he encountered not only the Orthodox Church he had known from his childhood but also a number of heretical sects. Principals among these were the Khlysty and the Skopsty. The first group held that only through sin could one truly repent and receive God's grace, while the second believed that if a penitent studied long enough, it was possible to attain a semi-divine nature and escape earthly judgment. When Rasputin returned to Pokrovskoye, he was a changed man: he impressed his fellow villagers with his impressive religious exhortations, spiced up with half-understood bits of doctrine he had picked up at Verkhoturye. Contrary to common belief, the "monk" Rasputin was in... ...holas had set a path to glory for Nicholas, who himself is man of poor intellect. Tsarevich Nicholas Alexandrovich. At the time of his father's death in late 1894, Nicholas was an inexperienced youth wholly unprepared for the great task destiny had placed on his shoulders. Nicholas II was barely twenty-six years old at the time of his accession. During his son's golden youth, Alexander III did not allow his son Nicholas much participation in affairs of government. It is likely that Alexander III feared that his eldest son was not intellectually capable of handling the inheritance that was rightfully his. Therefore, the father kept postponing the son's introduction in to the daily running of Russia. Not one person, most of all Alexander III, ever imagined that this young and inexperienced Romanov would ascend the throne as early in life as he did. Czar Nicholas II’s mother Czarina Maria-Feodorovna was nortorouis as a mother who did not allow her children to grow. Therefor a ltering the young Czar’s behaviour to that all would regret. As Leon Trotsky once said: "His ancestors did not bequeath him one quality which would have made him capable of governing an empire"

French Lietenants Woman :: essays papers

French Lietenants Woman Existentialism, a philosophy that emphasizes the uniqueness, isolation and freedom upon and individual is a major theme in John Fowles’, The French Lieutenants Woman. Is our life ordained by the superior, or do we power our future? In chapter 13, Fowles interrupts the narration and notes the natural aspects of writing as a novelist, the freedom of the characters that he has created, and the time and structure o f the novel itself. Though awkward to incorporate the authors visions in their own literature, it is manipulated fiction, meta-fiction that is, which perhaps is a subject of major interest amongst the readers of The French Lieutenants Woman. At first, in chapter 13, it becomes evident that he himself, Fowles, is uncertain of his writings, â€Å"I do not know† he immediately confirms. By the third paragraph he has repeated the word â€Å"perhaps† five times, demonstrating Fowles puzzlement of whether he restrains his characters, or, they control him ? Fowles addresses on behalf of all novelists, and comments on the natural features of writing, that a novelist has no predetermined illustration from chapter one. Fowles also states, â€Å"We wish to create worlds as real as, but other than the world that is†(pg.81), which associates to how this novel is a classical Victorian one, but, from a a modern perception. Fowles tries to link the idea of a modern perspective with existentialism, that it is no longer like the pre-ordained Victorians, but the concept that his characters are free from authority. Although Fowles aims to attaining a point of focus in chapter 13, he repeatedly, violently and offensively comments on God and faith. He sates, that he â€Å"The novelist stands next to God†, which is an scarce feature amongst people in general, the suggestion of equating yourself to God. Not only does Fowles reveal this, but following that he concludes â€Å"He may not know all, yet he tries to pretend that he does,† which may well suggest also God â€Å"does not know all†. This comparison is again evident, â€Å"the novelist is still a God, since he createsà ¢â‚¬ ¦Ã¢â‚¬  (pg.82). In addition, Fowles does not understand that in much of his views, he is speaking on behalf of thousands of authors, which possibly will find his comments rather offending.

Intimate Apparel Synopsis

Tommy DelZenero Intimate Apparel Feb 6th, 2013 The character I really tried to focus on while watching Intimate Apparel was George, the man from Panama. I thought he was the best actor on the stage that night, but that’s not saying too much. For the first half of the play, the actor performed a monologue with the spotlight solely on him. After the break, the actor participated in scene work with multiple characters. George in the storyline is a man who works a very physically demanding job digging canals in Panama.He one day decides to write a letter to Ester, the unmarried woman who works with fabrics, and he immediately takes a liking to her. They exchange letters for about six months and then it happens- George sends her a letter proclaiming his love and asks Ester to be his wife. She replies and says she would love to; he comes a few weeks later for the wedding. Off the bat when they met, it seems to be a little awkward; they had never met and barely knew each other. Over time, they got closer due to their proximity but emotionally they grew distant.George doesn’t seem to be the romantic that Ester had originally talked to. Also, she finds out that he has been cheating on her. He ends up taking her money and leaving Ester. There were a lot of good things that the actor did throughout the course of the play that I have been taught to do as well. He knew his lines for the most part, his inflection changed at appropriate times, and he used a lot of good hand motions and other gestures. Also, in the first half of the play (before the intermission), the actor played a roll in which he was very romantic and sweet.When he recited the letters, he was able to come across as a very well together and in love man. I genuinely thought he was being sincere and true to Ester. Later in the play, George became very distant and withdrawn. He became a cheating man without morals, who was selfish and inconsiderate. The actor was able to portray two different extr emes in the same play, and he did a pretty good job making the transition. I think this would be hard to accomplish, but he was effectively able to do so. Another effective part in the play was the anger the man who played George was able to show.At the scene in the bedroom talking to Ester, he stomped around, making a certain amount of noise without drowning out his own vocals. Throughout the journey of the theater performance, he made a lot of hand gestures and facial expressions that showed me how he felt; he let me feel his emotions. With that said, George didn’t have a flawless performance. For the most part, I thought it was poor acting; but he did well relatively speaking as I addressed above. With that said, it was hard to understand him half the time. At certain parts it seems he wasn’t exactly sure of his lines.He stuttered at parts that didn’t call for stuttering; it wasn’t apart of the script. That just comes down to memorization. Additionally , the actor lost the role at one point, letting out a smirk mid-scene. That smile kind of threw the audience; actors must be in character at all times. Physically, the actor made the audience believe he was a physically worn man. From the clothes he wore to his whole demeanor. His facial expressions showed exhaustion; while speaking from Panama, his voice was strong but tiresome and showed uncertainty. When he came to the contiguous United States, his physical appearance changed.Although he was not in Panama any longer, his true roots came out in the way he spoke and the heavy accent he placed on his words. George became better dressed and modernized; this led to an emotional change as well. Emotionally speaking, in the beginning of the play George was such a smooth talker; he was a sweetheart who was very persuasive and manipulative. The inflection George had in his voice was very sincere. He showed his charm and passion through the words in his letters (even though they turned out to not be his own words). Regardless, he made Ester fall in love with him and want to see him.He seemed genuine. In person though, he wasn’t so loving. George showed his heartlessness and rudeness in his cheating and dialect towards Ester. He showed anger by the way he stomped about the bedroom and stormed out of rooms. He showed his impatience by the way he knocked at the door, so hard and so loud. There were subtle things that could’ve been done better, but the emotion was attempting to be displayed. Intellectually the actor had a few different motives. The first half of the play the audience thought George was all about love and being Ester’s husband.After the intermission, his true colors came out and he became a money hungry hustler. Throughout the play, the character George had many different emotions and types of person he had to show. The actor did a pretty decent job with his faces and body language that he performed. I thought overall, he did an okay job and the play was interesting. I enjoyed watching the storyline play out, though the acting could’ve been much better. It seemed as though the performers were not prepared to act in front of an actual audience. With that said, I look forward to seeing other productions in the future.

Cumberland Case Essay

1. What’s your price for the curled metal pads? Why? (3) 2. How attractive an opportunity is this for CMI? (7) 3. How are you going to market these pads? Describe your marketing plan. (8) 4. What are you going to say to the Colerick Foundation?Exhibit 1: CMI was one of the largest manufacturers of curled metal products in US with an 80% market share. CMI’s sales were dipping and management was not optimistic of maintaining the current market share in the long run. Cumberland had a history of using curled metal technology to develop innovative metal products like slip-seal to meet the demanding specifications. Existing cushion pads in the market seem to be meeting the need adequately and hence no specific attention was being paid to develop new and high performing products. The results of tests of the use of new metal pad had been excellent, exhibiting nearly 33% gain in efficiency and 20 times more life as compared to asbestos pads. Because of the lack of an existing market and sales and distribution channels, company faced a herculean task of convincing the channels that there indeed was a market for the new pad. Existing pads in the market came in standard diameters but CMI’s manufacturing process provided the flexibi lity to develop pads in any diameter using the same band of curled metal. Because of the lack of statistics on cushion pad usage, CMI did not have a clear idea of the sales mix of the various product sizes. Contractors and Subject matter Experts(Prof. R. Stephan McCormack of Pennsylvania A&M university ) had expressed great enthusiasm about the new pad. At this stage of prior to product launch and manufacturing, CMI seem to be struggling to find a responsible contractor to use the product and monitor its performance | Opportunities| Threats|No direct competition for Cumberland existed because of the lack of interest of†¦ foot driven. This alternative is in line with the price of current used pads in the test scenario, hence competitive. The advantage of this method is it fulfills the company objective of 50% markup, is easy to calculate, and competes well with other pads. Furthermore, proceeding years will realize a greater than 50% margin since the $150,000 equipment investment will be eliminated. This approach would work best for a strategy of extensive market penetration. Since the price of the pads are the same current used, CMI needs only to convince consumers of the  effici ency and safety advantages to convert them to the new pads. However, this pricing method does not consider the possibility of premium pricing due to efficiency cost savings or value added to the customer by using the CMI pads. Case PresentationCurled Metal Inc. (CMI) faced a pricing and channel marketing decision for metal pile cushions utilized during pile driving. CMI’s approach to metal pads has significant efficiency advantages over currently used pads available in the market. However, CMI has to take into account several barriers to entry into this market. The primary barrier is that most companies viewed role of pads as a necessary accessory or tangent item instead of viewing them as a potentially value adding or cost reducing part of pile driving. In order to penetrate the market, CMI has to alter the point of view of pile driving pads for the opinion leaders, engineering firms, and contractors involved in the decision process. There is several stakeholders to consider, first CMI that need a new successful product to the continued success of the company. The decisions regarding pile cushions could greatly increase the company’s revenues and profits. There are also several secondary sta keholders in the pile driving industry. Secondary stakeholders include pile hammer manufacturers, architectural consulting engineers, soil consultants, pile hammer distributing/renting companies,†¦Promotion strategyPatent? Curled Metal’s strategic and marketing objectivesThere is a need to increase the industry’s awareness for the new pad and to recognize it as a â€Å"necessity† for projects.This can be achieved by soliciting different influencing parties. Different parties have established ties with their targeted clients. The parties can easily influence clients.Pile hammer manufacturers, architectural/ Consulting engineers play a role in influencing decisions of contractors by providing recommendations. Curled Metal should maintain a good relationship with these parties and carry out firm visits to introduce the product to them.For independent pile-driving contractors, professional staff from Curled Metal can be assigned to these contractors to help with management at the initial period.Less resource should be allocated on pile hammer distributing and sophisticated engineering/ construction contractors as it may be difficult to change their mindsets.This can also be achieved th rough promotion. Curled metal can continue to make use of the influence of respected Professor Stephen McCormack of Pennsylvania A&M University. Since sophisticated  firms of the industry are familiar with his research, Curl Metal should value Professor McCormack’s influence. Curl Metal should publish the test results of the new pads to the industry when it is finalized.Curled Metal can make use of existing publication on pile-driving jobs, such as Oklahoma Contractor. Curled Metal can have its advertisement featured on the publication to introduce the advantages of the new pads.Curled Metal can also sponsor professional-level seminars and conference for contractors, designers and equipment developers to exchange ideas. Curl Metal can make us of the chance where different parties gather together and promote the new pads to them. Professors can be invited to hold talks and explain how the new pads can help save resources and time. Answered questions: What should a customer be willing to pay for one of Curled Metal Incorporated’s new cushion pads? What factors are relevant in calculating willingness to pay in this situation? Prepare a specific monetary estimate of customer value in this situation. What price should Curled Metal Inc. set for one of its new cushion pads? Why? Please focus on an 11.5-inch cushion pad. On page 1 of the case, Curled Metal Inc.’s vice president Joseph Fernandez says, â€Å"The way we price this could have a significant impact on everything else we do.† An integrated strategic option specifies the basic type of advantage a company will pursue (e.g., differentiation? low cost? other?), relevant decisions about customer and product scope, and key choices throughout the company’s value chain. Please prepare an integrated strategic option for CMI – an option that specifies your price but also specifies the many other choices facing CMI in formulating a strategy for its new cushion pads (e.g., in marketing, sales, distribution, production, finance, and other functions). Case analysis for Curled Metal Inc.1. What should a customer be willing to pay for one of Curled Metal Incorporated’s new cushion pads? What factors are relevant in calculating willingness to pay in this situation? Please prepare a specific monetary estimate of customer value in this situation. When calculating the value of CMI’s curled metal pads to the customers one has to take a variety of factors into account. These are the total costs per hour of pile driving, the saved costs for driving as well as the savings in  changing time. By calculating the total amount of money saved when applying the new pads, one can calculate the â€Å"real value† of the product. One „real hour’sâ€Å" worth of pile driving is calculated as follows: One real hour has a total cost of $714. We will use this number for further calculations. Below I have calculated the total costs for driving time, replacing pads for both the Kendrick Foundation Company and Corey construction†¦ Cumberland Metals: Case Study Analysis. 1/9Cumberland Metals faced a both a pricing and channel marketing decision for metal pile cushions utilized during pile driving. Cumberland’s approach to pile cushions had significant efficiency advantages over other asbestos methods that were currently available in the 1979 market. However, Cumberland faced several barriers to entry into the pile cushion market. The primary barrier was that most companies viewed role of cushions as a necessary accessory or tangent item instead of viewing cushions as a potentially value adding or cost reducing part of pile driving. In order to penetrate the market, Cumberland would have to alter the lackadaisical view of pile driving cushion pads for the opinion leaders, eng ineering firms, and contractors involved in the decision process.Key IssuesCumberland needs to consider several marketing decisions. First, they must determine a method for pricing and ultimately a price for the new metal pads. Second, Cumberla nd must decide which channels to market the pads based on the selected pricing strategy. Third, Cumberland must determine how much to invest in manufacturing equipment by estimating market penetration and considering the costs and benefits of investing in pad producing equipment.AnalysisCumberland’s new metal pile driving pads provided several benefits over the current asbestos cushions. Several Pad features and pricing decisions will be discussed and analyzed in this section. First, the safety and heat properties of the cushions will be analyzed and compared to current asbestos pads. Second, efficiency characteristics will be analyzed and compared with current asbestos pads. Third, several methods of calculating the best price in order to match the price to the value added for the customer will be discussed. Finally, an analysis of the different marketing channels a nd marketing strategy will be presented. Safety Presentation MarketingCumberland Metal Industries ( CMI cushion pads) The  Problem Definition: For Cumberland Metal Industries the curled metal cushion pads represent a great breakthrough. These pads offer the company the opportunity to diversify, and double their sales, given a proper market introduction. Cumberland Industries faces the challenge to Place in the market (promote/advertise) and price their latest innovation, the curled metal cushion pads in a way that it reveals the great advantages that the product provides.In order to do that, the company needs to pay attention to certain factors that can influence the success of the product on the market. These factors are: promotion and advertising, and the pricing of the metal pads on the market.Marketing Strategy: A sensible thing for the company to do is to use the niche strategy in order to place the product on the market. A Niche strategy will focus on a specific area of a service or a product. The advantage of using niche strategy is that it can focus on a specific niche that provides either a large volume of business or small volume with lucrative profit margins. The whole idea behind the niche strategy is that it targets those people who are interested in the type of product offered. In our case, by placing the CMI metal cushion pads as a niche, Cumberland Metal Industries has the potential of becoming a dominant player on the market.The next step is promoting and advertising the product as such (niche/innovative etc.). What Cumberland Industries should do, is create a brand. They have a truly innovative product that has the potential of becoming a huge success. Before the CMI metal pads, the only pads available were the asbestos pads. Those, however, could be found at diverse retailers, and were not properly marketed. Moreover, it is well known, and proven that the asbestos pads are a hazard to health and also there are some government regulations that prohibit the use of asbestos. Cumberland Metal Industries – Pricing Strategy Executive SummaryCumberland Metal Industries (CMI), a company specialized in making of curled metal products, has develop a new product, metal cushion pad with health safety and long durability, to help contractors drive piles faster. Based on the successful tests, CMI now wants to launch this new product to the market. The main challenge CMI is facing is to price its new pads. Since the pad is totally new in the market, CMI should use perceived  value pricing method and apply marketing mix programs comprised of advertising, education, and distribution channels to launch this product as well as develop it to get full market share in the future.Perceived Value Pricing – strategy for future successCMI should set the objective of this new business to be the monopoly and to maximize profits. However, the prerequisite for this objective is to get a patent to prevent this product from being copied and imitated. As long as CMI did not get patent for this product, CMI should not sel l it as it would invite the entry of competitors because this cushion pad is not a high technology product and easy to be copied.