Essay on “International and Domestic Oil Prices”

Essay on â€Å"International and Domestic Oil Prices† Introduction The involvement of the financial markets in the modern economies and the oil market is such that upwards of 60% of the crude prices are not determined by the supply and demand forces on the markets. Instead, leading hedge funds and banks, through the international oil exchanges in London and New York control the spot prices through oil futures (Rich, Streitfeld, Rampell, 2011). This has effectively crested more scope for speculation within the industry, which when coupled with the emergency of bond markets across the world, the scare of the exchanges markets losing an actual backing of the actual markets has arisen, with dire consequences on the predictability of oil prices. These have an ultimate effect in the economies of countries across the world. This paper seeks to assess the effects of the international oil prices on the US’ domestic economy as well as the economies of other nations across the world. The assessment includes an understanding of the role of speculation, oil exchanges, producing nations and other agents of the fuel prices, as well as the effects of their respective decisions on the consumer demand (Rich, Streitfeld, Rampell, 2011). International Oil Prices and the Domestic Economy The 1988 collapse of the OPEC administered system of pricing led to the emergence of the prices freely determined by the forces on the markets, which has survived to the present-day. The nationalizations of oil reserves and the collapse of the concessions system deprived multinational companies of the influence they enjoyed in determining the oil prices, leading to the emergence of exchanges and deals outside the horizontally and vertically integrated corporations. This was strengthened even further by the rising influence of non-OPEC producers, which in turn led into the development intricate markets across the world, including physical forwards, spot markets, options, futures and derivatives’ markets. The 24-hour trading and electronic markets, enabled by the rise of technology allowed greater access to the markets and with, multiple trading instruments. Under the new system, physical deliveries occur both through spot markets and futures, with the spot markets comprising a minority of the transactions because of the logistical difficulties associated with spot deliveries (Tang Wei, 2010). Crude Benchmarks and Pricing Long-term contracts stem from bilateral agreements for the delivery of crude oil shipments at pre-determined prices. The varied qualities of crude attract equally varied premiums (benchmarks), where the prices are determined by the price differential (D) and the benchmark crude price (PR). The price agreement for a spot or futures market involves agreements on the price differential (Fattouh B. , An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An An Anatomy of the Crude Oil Pricing System , 2011). The price differentials built in the Gross Products Worth of refining crude, rendering them hugely variable owing to the varied qualities of crude oil and perhaps most importantly, due to the changes in the relative supply and demand forces on the market for each variant of crude. In the recent three years for instance, the price differential between Arab Heavy and Arab Light crudes increased to reach upwards of $15 a barrel, with fuel oil being heavily supplied, despite the fact that diesel, which results from Arab Light’s saw shortages in the market (Fattouh, Kilian, Mahadeva, 2011). Benchmark differentials on the other hand are determined by the oil exporting nations, in consideration of the Gross Products Worth of the crude variant, announced up to a month prior to the loading of the products. The determination of the benchmarks builds in multiple lags, coupled with the use of dated figures, which in turn implies that the prices would least reflect the actual conditions on the market. Other nations, including Qatar and Abu Dhabi simply announce the Official Selling Prices, based on the Dubai-Oman Benchmark pricing system. Countries must not only ensure competitiveness of their crude, but also build into their pricing models the differences with between the reference and their own crudes (The Economist, 2009). In addition, oil producers delay announcing the differentials in order to reduce the lags, while also avoid being undercut by their respective competitors. Changes in the global oil prices have far-reaching effects on the domestic economies of all countries, and the fact that countries have little control over the changes in prices, makes the changes necessarily hurtful to the domestic economies. Since the beginning of 2010, commodity prices across the world have risen considerably, following a near 40% increase in the prices of oil. The international increases in the prices of oil occurred towards the close of 2010 to 2012 with the consequential cost-push inflation on the prices of basic commodities including food, metals, agricultural commodities and minerals across the world (Fattouh B. , The Drivers of Oil Prices: The Usefulness and Limitations of Non-Structural Model, the Demand–Supply Framework and Informal Approaches, 2007). In addition, the demand for oil is dependent on not only the United States economy but also all other economies in the world. The demand of major emerging economies including China, Brazil and India, w hich effectively pits the interests of different countries against each other, with the consequent increases in prices, in the event the demand of the world goes up. The recent growth in demand from China has resulted in global increases in fuel prices and the prices other commodities. The energy demand outside the OECD also contributed to the rapid depreciation of the United States dollar, with dire consequences on the ability of the country to import important resources into the country, while at once rendering its exports relatively cheaper (Ripple, 2008). The consequences of the (i) increasing oil prices and (ii) the fluctuating nature of the prices on the domestic economy are dire, with analysts estimating that a $10 increase in the price of oil is capable of reducing the GDP growth by more than 0.5%, within the OECD. In addition, a similar increase is estimated to lead to upwards 0.2% increase in the rate of inflation within the OECD, even with the multipliers used in these models ignoring multiple dynamic effects (The Economist Intellegence Unit, 2012). Other than the actual increases in demand for energy across the world are unsurpassed by the geopolitical issues that have a disruptive effect on the real supply, coupled with changes in the market dynamics. The spare production capacity of Saudi Arabia is insufficient to meet the fluctuations in the supply of other oil producing nations that may be disrupted by political and regional tensions (Tehran Times, 2012). Effectively, the demand and supply forces in the domestic economy are unrelated to the demand and supply forces within the domestic economy, effectively rendering them either too high or too low, for a domestic equilibrium to be reached. Formulae pricing is founded on the key physical benchmarks, including the West Texas Intermediate (WTI), Dated Brent, Dubai and the ASCI price (Fattouh B. , The Drivers of Oil Prices: The Usefulness and Limitations of Non-Structural Model, the Demand–Supply Framework and Informal Approaches, 2007). The benchmark prices are known as the spot market prices, form an important part of the pricing system, not least because producers and traders use them rely on them in setting futures prices, which have an influence on the spot market prices both at present and in the future (Krugman, 2009). In addition, benchmark crude is used by companies and banks in settlement of derivative instruments such as swap contracts. Governments and futures exchanges used benchmark crude for taxation and settlement of financial contracts respectively. Oil-producing countries use different benchmarks depending on the destination of their exports with Iraq for instance using the Brent Crude to export t o Europe, while its Asian and US exports are based on the Dubai-Oman and the WTI respectively. Mexico on the other hand used a weighted averaged of varied benchmarks’ prices to determine their respective exports prices, including the WTI, the Louisiana Light Sweet, the High Sulfur Fuel Oil and Dated Brent. The benchmarks are priced through assessments by the Oil Reporting Agencies, based on the market information and assessments of the quality of oil, but the prices are strict estimates, with variation between different prices (O’Hara, 2001). Further, while the benchmarking principle remains the same, the benchmarks have changed immensely, both in terms of liquidity and the nature of crudes involved in the process of assessment of the value. The Brent Benchmark for instance, has since began including the North Sea Streams Forties, Ekofisk and Oseberg, while Platts Dubai builds in Upper Zakum and Oman. The streams in benchmarks are naturally not identical in quality. This makes the benchmark prices not to reflect the price of a physical stream, but most importantly, to reflect the prices of a constructed index of different physical streams (Rothwell Gomez, 2003). The benchmark crude oil streams have been declining, with far reaching effects on the market. In the United Kingdom for instance, the decline in production of Brent crude in the 1980s from 885,000 b/d to 366,000 b/d in 1986 to 1990, resulted in massive distortions, squeezes and manipulations, with the consequence of Brent crude prices being completely disconnecte d from other crude grades. The problem was alleviated by the comingling of Ninian and Brent crudes to create Brent Blend, coupled with the ceasing of Ninian as a crude stream. Brent Blend did not last too, and with physical production delays, came the fluctuations in the prices of crude oil based on the benchmarks. With the decline in the physical production of the crude components of benchmarks, other crudes have been co-opted into the benchmarks (Rich, Streitfeld, Rampell, 2011). In 2002 for instance, Platts expanded its definition of Dated Brent to include Oserberg and Forties (from the North Sea) in order to facilitate the assessment process as well as the quality of deliverables in multiple forward contracts based on the benchmark. WTI has also been reported to be declining rapidly, with effects on the futures based on the index. Effectively, the declining physical production of benchmark crudes has the consequence of taking with it, the standards that form the basis of oil p rice determination for both the futures markets and the spot markets, owing to the huge influence of futures on the spot markets (World Bank, 2007). Alternative Pricing While the above pricing model should under ideal conditions be functional, but the involvement of high finance and financial innovation has led to exaggerations of prices (Thorne, 2010). The Posted Pricing system that was previously used by the oil companies to set the prices of oil in consultations with the oil producing nations, and in view of the conditions on the market. In this way, the speculative forces in the market would be eliminated. In addition, the oil producing countries would be able to link the physical supplies to the actual demand in the market, effectively reducing the prospects of exploitative speculation. China has repeatedly implemented this system, with limited success, largely because of the heavily innovative financial markets and instruments in the modern world (The Economist, 2011). The Chinese model is founded on the assessment of the costs of purchase of crude oil from the oil exporting prices, including the costs of transportation and other transaction costs in order to These ensure that the role of the private sector in the determination of oil prices can never be under-estimated, regardless with the amount of regulation. In addition, the characteristic inefficiency caused by the slow reaction of governments, coupled with the time lags in forecasting models render the system heavy and impractical (Krugman, 2009). Financial Exchanges, Physical Markets and Speculation Upwards of 60% of oil prices are purely as a result of speculative forces by leading financial institutions, implying that while current oil prices comprise as much as $60 per barrel that derives from speculation, despite the relatively stable demand and supply forces in the previous five years (excluding the emerging economies effect). Hoarding of crude oil, and the arrival of speculative investments backed by the bond markets and securitization into the oil futures has resulted in increasing supplies, which are not passed on to the spot market but instead serve as financial instruments (Fattouh, Kilian, Mahadeva, 2011). The potential of speculators to herd markets into supply shortages in order to profiteer is enormous, especially with the emergence of paper crude of financial derivatives, which have gained acceptance across the financial and oil markets. Financial instruments including Contract for Differences, Brent Forwards, swaps, Brent options, Exchanges for Physicals and o thers are now tradable on exchanges. This has in turn offered easy access, with reduced risk to instruments such as index funds, options, exchange traded funds and futures (Rich, Streitfeld, Rampell, 2011). This has been driven by changing investor preferences in favor of market-based derivatives, which have low transaction costs and risks. Recent studies have shown a high correlation between equity and energy returns, with the most extreme effects being evidenced in periods of financial market booms. The sub-prime markets specter (reckless risk taking due to low risks and lack of physical market bases) is evident in the non-backed markets. While it is impossible to envisage a market without securities, given the central role of crude oil on the economy, it is crucial that financial exchanges are founded on the physical markets (O’Hara, 2001). At present, most hedge funds are reeling from the collapse in profitability of the housing market, moving investments into the oil markets. This in turn fuelled a bubble in the oil market, with increases in the prices of oil futures through the period. Major companies in the European Union and North America hoarded oil, leading to appearance of oil shortages, coupled with the limit credit availability that characterized the global economic crisis. These were exacerbated Lon don ICE Futures and Over the Counter (OTC), which are not regulated, leading to the imprecise figures regarding the dollar value of the expenditures on energy investments. This in turn created and has expanded the speculative space and incentive in the oil market, with the consequence of worsening the difference between the internationally set prices and the domestic prices. This even most significant, with the declining physical production of benchmark crude, which would lead to a disconnect between the actual prices and the oil supplies. Futures Physical Markets Both spot and futures prices are determined in response to the same economic conditions, and should by necessity reflect one another. The price set for futures closely reflects the expectations, whether real or otherwise, of the future supply and demand, which musty by construction be reflected in the spot prices (Smith Searle, 2007). This is the sole intention of benchmarking as well as the pricing models adopted by the oil-exporting countries, which are constantly adjusted in order to fit in with the demand and competitiveness needs of the market. The futures contracts are closed by exporters and traders who resale the oil to the consumers, and to this extent, the demand and supply forces are reflected. However, similar conditions would only prevail, if the demand by the oil traders is driven by the final market needs, and not speculative demand (The Economist, 2009). Speculative demand for oil, and the relative power of financial institutions and the instruments that have emerged in the modern markets have resulted in the creation of artificial markets, which may be manipulated to the benefit of the oil traders and speculators. This occurs through artificial increases in the prices, driven by futures markets that are founded on artificially created expectations of demand and supply. In addition, even if there was no manipulation, squeezes etc, the forecasting formulae that is used to project the futures contracts pricing is independent on whether prices increase or fall (Ripple, 2008). Further, the effect of politics and geopolitical tensions involving oil-producing nations and regions, have a greater effect on speculative and futures markets than the physical markets. While for instance the Iranian, Egyptian and Libyan crises resulted in fears of reduced oil supply to Europe, Asia and the Americas, with the consequent increases in oil prices, the actual reductions in supply have not been significant (Krugman, 2009). However, the pricing models for futures that built in this possibility in turn resulted in prices that did not reflect the physical markets. This is noticeable in periods when supply was increased by both OPEC and non-OPEC nations, which were however, not reflected by reductions in the fuel prices. The United States, which accounts for a quarter of the global oil trade and consumption, has in the recent past offered a clear example of how oil futures distort the physical trade. Traders sale the dollar short, while selling oil long, leading to a fall in the current prices at which they acquire oil and hoard, to supply it during shortages (Eicher, Mutti, Turnovsky, 2009). The geopolitical tensions and the prominent role played by the speculators easily masks the role played by multiple other players in the industry that however, have an influence on the spot and futures prices. These players include the oil exploration and extraction companies, the refineries and the entire petrochemical industries among others. This adds to OPEC oligopoly, which does however comprise multiple oil rich nations that compete against each other to ensure the competitiveness of their oil. Iran and Saudi Arabia’s Arab Light for instance are of the quality, land go for about the same prices (Thorne, 2010). However, the two nations must compete for markets abroad. Effectively, it is in the interest of every country to make certain that their prices are as low as possible. However, the intermediaries that deliver the oil to the final consumers have an impact on the prices beyond the control of any one player. Effectively, the international pricing system is the only vi able pricing system, open to OPEC and other agents. Conclusion Benchmarks represent the most important pricing system, but ht emergency of financial derivatives based on oil, have led to the distortion of the oil prices, coupled with the lack of transparency in the industry, which has in turn resulted in the gap between the actual and the futures prices (Eicher, Mutti, Turnovsky, 2009). A lesson from the sub-prime mortgage crisis is apt for the oil market. While the recent global economic crisis was triggered by the crush of the sub-prime mortgage market in the United States, the actual problem that precipitated the creation of bubble and the subsequent crush was the emergence of bond markets. These in turn resulted in excessive credit on the markets, with the markets actually losing the physical market back up, which were replaced with tradable securities, fuelling a bubble that ultimately haunted the global economy. References List Eicher, T. S., Mutti, J., Turnovsky, M. ,2009, International Economics. London: Taylor Francis. Fattouh, B. ,2011, An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An Anatomy of the Crude Oil Pricing An An Anatomy of the Crude Oil Pricing System . Oxford: Oxford University Press. Fattouh, B. ,2007, The Drivers of Oil Prices: The Usefulness and Limitations of Non-Structural Model, the Demand–Supply Framework and Informal Approaches. University of London . Fattouh, B., Kilian, L., Mahadeva, L. ,2011, The Role of SPeculation in the Oil Markets: What have we Learnt so Far? Oxford: Oxford Institute of Energy Studies. Krugman, p. ,2009, he Return of Depression Economics and the Crisis of 2008. New York: W.W. Norton Company Limited. O’Hara, P. A. ,2001, Insider trading in financial markets: legality, ethics, Efficiency. International Journal of Social Economics, Vol. 28 No. 10/11/12, . Rich, M., Streitfeld, D., Rampell, C. ,2011, Feb 24, Rising Oil Prices Pose New Threat to U.S. Economy. Retrieved October 12, 2011, from http://www.nytimes.com/2011/02/25/business/economy/25econ.html?pagewanted=all Ripple, R. ,2008, Futures Trading, What is Excessive. June 7: Oil and Gas Journal. Rothwell, G., Gomez, T. ,2003, Electricity Economics. Boston: Wiley. Smith, S. J., Searle, B. ,2007, The Blackwell Companion to the Economics of Housing: The Housing Wealth of Nations. London: John Wiley Sons. Tang, K., Wei, X. ,2010, Index Investing and the Financialization of Commodities. NBER Working Paper 16385: National Bureau of Economic Research, Inc. Tehran Times. ,2012, May 11, Japan considering government insurance for Iran crude. Retrieved May 12, 2012, from www.tehrantimes.com: http://tehrantimes.com/economy-and-business/97737-japan-considering-government-insurance-for-iran-crude The Economist. ,2011, Oct 25, How the economic slowdown has changed consumer spending in America. Retrieved Dec 6, 2011, from the economist: http://www.economist.com/blogs/dailychart/2011/10/us-consumer-spending The Economist Intellegence Unit. ,2012, The GCC in 2020: Outlook for the Gulf and the Global Economy. The Economist Intellegence Unit . The Economist. ,2009, Aug 7, On the Rebound?: Asia’s emerging economies are recovering much more quickly than economies in other parts of the world. Can they keep it up? . Retrieved April 29, 2012, from www.theeconomist.com: http://www.economist.com/node/14209825 The Economist. ,2011, March 3, The Price of Fear: A complex chain of cause and effect links the Arab world’s turmoil to the health of the world economy . Retrieved July 13, 2012, from www.economist.com: http://www.economist.com/node/18285768 The Tehran Times. ,2012, May 11, Iran oil production rises despite sanctions, OPEC says. Retrieved May 12, 2012, from www.tehrantimes.com: http://tehrantimes.com/economy-and-business/97739-iran-oil-production-rises-despite-sanctions-opec-says Thorne, S. ,2010, A User guide to Platts Assessment Processes Presentation at the Platts Crude Oil Methodology Forum 2010. London. World Bank. ,2007, August 18, FInance for All? The Pitfalls of Expanding Access. World Bank Policy Research Report .

Althusser And Critique Of Marxism Essay - 1414 Words

Althusser and Critique Paper Marxist philosopher Louis Althusser reoriented the study of Marxism in the 1960s and 1970s, shifting it from a humanist interpretation to one structured around the philosophy of ideology and the philosophy of science. The purpose of this reorientation revolved around the necessity to ground an understanding of critique. By focusing on the notions of ideology and science, Althusser can provide an accurate explanation for the revolutionary nature of Marx’s thought, specifically the creation of the science, dialectical materialism. This science, according to Althusser, shows that the production of thought is historically determined and provides the basis for all critique: as being able to discern mere ideas and historically determined ideologies from true scientific knowledge. By understanding what is truly science and ideology, the proletariat can correctly work to rectify the practices that impose a false ideology and work for a politics that is not based on exploitation. To understand Althusser’s elucidation of Marx’s Philosophy, and by extension his work on critique, one has to specifically focus on the theory of Marxism as a science, or the unification of two sciences, historical materialism and dialectic materialism. It is within the science of historical materialism, or the science of history determined by modes of production, that one could understand how ideologies are introduced and constantly reinforced. Modes of production, or theShow MoreRelatedMarxist View Of The Distribution Of Power Within Society And The Political System1336 Words   |  6 PagesThe essay will analyse and critique the Marxist view of the distribution of power within society and the political system. It will then summarise how we commonly define a liberal democracy and what are its recognisable features within a pluralist context such as in Britain. Finally, it will ask how Marxists might view the above as affecting participation in such a political system . Overall this essay will outline the uneven distribution of power Marxism sees in a capitalist, liberal democratic society;Read MoreFeminism, Marxism And Marxism1320 Words   |  6 PagesMarxism Marxism definition - the political, economic, and social principles and policies advocated by Marx; especially : a theory and practice of socialism including the labour theory of value, dialectical materialism, the class struggle, and dictatorship of the proletariat until the establishment of a classless society(https://www.merriam-webster.com/dictionary/Marxism) Firstly, Marxism is a widely academically known and used theory and interpretation all over literature. However, this is differentRead More Marxist Perspective on Education Essay1564 Words   |  7 Pages Education system is seen as an important part of the superstructure in society. This statement was written in a Marxism perspective by individuals who see education not just an important part of the superstructure but as well an important aspect in a child life. Even though Karl Marx himself did not widely write about education, many of his followers did. This paper will look at how class and alienation which is a theory that Karl Marx wrote, plays a part in education and a general look at the perspectiveRead MoreMarxist Criticism Is Always Concerned with the Class Struggle in History.1525 Words   |  7 PagesThe main aim of Marxism is to bring about a classless society. Thus the reason I chose to study George Orwells Animal Farm is because its characters share (originally) this same ambition. Animal Farm represents the oppressed masses rising up and forming a classless society of their own. While offering a critique of communism in general, the book also serves to act as a mirror of Soviet Russia under Stalin. As reflected throughout the text, it was no secret Orwell considered Russia, and consequentlyRead MoreWhat Are The Concepts Of Marxism And Feminism1900 Words   |  8 Pagesand feminist approaches to geography, the definition of a paradigm has to be fully understood. Therefore this essay will describe the term paradigm and discuss what they consist of. Following this, the essay will look at key underlying concepts of Marxism and feminism as individual paradigms and how they are applied to geography. After, some of the similar principles between the two paradigms will be explored, before they are compared against each other in regards to crime. Kuhn (1962) was the firstRead MoreExplain and Evaluate Functionalist, Marxist and Interactionist theories of Society.1276 Words   |  6 Pagesreflective of wider social patterns and the micro approach of George Mead who focused on small scale social interaction and who’s theory interprets the behaviour of individuals as significant and a way to interpret how the world is socially constructed. Marxism was founded by Karl Marx and like functionalism it is a structuralist theory; it is another macro approach in some ways taking the same views as functionalism in that Marxists see the structure of society as wholly responsible for the way which anRead MoreMarxism Essay1494 Words   |  6 PagesMarxism Marxist criticism is inherently existentialist. One cannot know anything without having been exposed to it as some sort of life experience. There is no knowledge a priori, as some of the ancient philosophers would have us believe. Rather, knowledge is accumulated a posteriori, through actual experience. Therefore, there is almost nothing that is inherent and absolute in our knowledge. It can never be purely objective, as knowledge is absorbed through the grid of our own perceptionsRead MoreReading Of Roderick A. Ferguson s Aberrations Of Black : Towards A Queer Of Color1203 Words   |  5 PagesYanell Sanchez SYA 6018 March 25, 2014 This week’s reading of Roderick A. Ferguson’s Aberrations in Black: Towards a Queer of Color Critique offers a queer of color analysis that poses itself against Marxism, revolutionary nationalism, liberal pluralism and historical materialism, and opts instead for an â€Å"understanding of nation and capital as the outcome of manifold intersections that contradict the idea of liberal nation-state and capital as sites of resolution, perfection, progress and confirmationRead More Marxism Isnt Dead Essay3751 Words   |  16 Pages ABSTRACT: I defend the continued viability of Marxs critique of capitalism against Ronald Aronsons recent claim that because Marxists are unable to point to a social class or movement away from capitalism, Marxism is over as a project of historical transformation. First, Marxs account of the forced extraction of surplus labor remains true. It constitutes an indictment of the process of capital accumulation because defenses of capitalisms right to profit based on productive contributionRead MoreAssessing Merits and Limitations of the Ideas of Karl Marx Essay1594 Words   |  7 PagesAssessing Merits and Limitations of the Ideas of Karl Marx Marxism, or scientific socialism as it is also known, became particularly popular during the 1970s as the realisation that functionalism was flawed became apparent, as it regarded stratification as a divisive rather than an integrative structure. It takes its name from the founder Karl Marx (1818-1883), and centres around the grand theory that Capitalist society creates class inequalities and alienation, which

Audit Assurance and Compliance Financial Auditing Standards

Question: Discuss about theAudit Assurance and Compliance for Financial Auditing Standards. Answer: Introduction Auditing is the concept that takes place in every organization either during every financial year or during the sudden visits of the officials. Any big company is required managing financially which is an important aspect. This is carried out to make their data secured by providing safety with no data loss of the information that is related to the company. In this study it tells about the work executed by the auditors (Carmichael, 1974). They are proposed with some work to which calculation of the statements that regards to the data relating financial decisions should be made by the management. Only the examiners who is found responsible is given the authority of auditing the files and takes the step forward of representing the entire customized information to the stakeholders with all leadership validation and finding out the malfunctions that are carried out by manipulations with professionalism and making the appropriate estimations of the financial requirements for the company an d detailing them with that. The two elements such as morality and competence obligations are to be followed by the organization and should present the entire company related information in front of auditors (Debreceny et al, 2005). The management should take responsibility and prior step to implement the suggestions that are specified by auditor for the sake of company. The clarity in the data should be maintained regarding the data information of the company with perfection, with which the auditors can notice on all aspects with a clear view by maintaining good standards and accuracy. Any doubt related to the financial data are enquired by the officers and cleared then and there to perform correct audition. The significant variants of the financial statements are taken into consideration such as company revenue, assets profiting the company and the capital of all divisions related to that financial year and by viewing and checking them perfectly the task of auditing the files is sa id to be completed (Cegielski, 2008). Following Steps are to be Noted and Applied to BSF Ltd The examiners before getting into the acceptance of auditing the financial statements of any company should keep in mind that they are supposed to be compliant to all laws without being impotent by getting threatened by any organizations or a group and should follow the ethical rule conducts. These are taken from the lines of the book called ethical guidelines. The important point to be noted by any auditor is that any auditing task that is leading to threats should not be accepted by the auditors (Holstrum Hunton, 1998). Make sure of the guidelines that are mentioned in the book of ethical guidelines before performing the task of auditing in any company and the factors responsible for it. The auditor foremost thing to be done is to collect all the necessary and important information relating to the business such as clients information and the records of data for the work that is to be done and later they need to gist out the glimpses of work and the problems that are found if any s o that it does not end up with any mess as it is the client related work (Aall, 1999). The factors such as insecurity and threatening can be the reasons for cancelling the task given by the client. For the assessment of audit files there is no particular time frame designed it can be carried out as long as it requires until the task that is accepted is carefully looked after. This in turn benefits in knowing the information of clients in detail. The auditor has some objectives with which he wont get compromised and accomplish all the formalities that are related to auditing after the client gets an approval sign from examiner to audit their files (Chan Vasarhelyi, 2011). Any new firm can be the reason for the occurrence of threats to the auditors which is the function of job and this happens if any auditor of the team included in the share of the organization for which the task is undertaken. If the auditing team is expected to be under any threat then there is no compulsion of cancelling the audit they can even carry on with their work by taking proper security actio n which safeguards them from the clients. As these kinds of threats are faced repeatedly so appropriate safety measures are to be taken to get of the issue completely and destroy them with no chance of occurrence in future again. If any other issues are aroused from the clients in the next level of audits they are verified by identification and then accepted (Chan Vasarhelyi, 2011). The audit team should be safeguarded with the exact solutions with no issues of threat from the clients. The organization that is chosen defines the efficiency of the auditor. The auditing team differs if big organizations are in the catch. The special efficiency skills are expected from the auditor for the high profile industries such as BSF and his ability to understand with the terms of rules and policies of that industry for this criterion. If auditor is ready to accept the task then he is expected with a higher evaluation results and if such extent is not shown then it is the way of risking themsel ves with the threat if they cant find their ability for the task to execute and acceptance is given if not able to figure out the details of the business to the required level (Holt Henson, 2000). The satisfaction of clients is expressed if their expectations are met like auditing the files before the deadline is met for which the auditor should pay attention and all requirements are to be fulfilled before signing off the task. Auditing at BSF Ltd is Done Under these Conditions If accurate solution is not given that is relevant to the situation mentioned then its the opportunity of inviting the threats that is related to the audit firms while benefitting the financial statements by providing the conditions that are suitable for them. The types of risks that are involved in the auditing are as follows: Control risk of audit Inherent risk of audit Detection risk of audit Inherent risks are said to be that by any possibility the information loss occurs and involved in the shares of company or evaluating the data in an inappropriate manner in the financial statements. The consequences of the controls are different from this and it is very important to note that it should be verified. The inherent risk is to be faced by the company certainly if the level of risk if found at higher level (Teck-Heang Ali, 2008). The similar one is noticed in BSF limited. The BSF limited standards are different in comparison to other industries which rely on the judgments of their own as it is personal and gives the opinions with no limitations. These are the set rules for moving forward. This shows that the inherent risk is at higher level. The control risk is very less and insignificant that is recognized with BSF limited. The involvement of such risk is less than 5 percent. If the process controlling mechanism is not correctly handled then it gives a way to the risk of control whose definition can be given exactly from this. Then definitely threats are invited if unable to identify the financial statements that are opportunistic (Teck-Heang Ali, 2008). Internally, measures to control that are suitable are to be identified for solving the delusion relating to BSF.BSF control measures are to be seen by the auditor and comment accordingly as is being used in industry. The efficiency of them is found to be good at BSF with the implementation of such control measures (Flesher, Previts Samson, 2005). BSF being the industry of top position can expect with such a rate of risk factors and the information about the business firms is not properly submitted to the auditing team. So the control measures are given the chance of figuring and locating the situation for controlling it (Flesher, Previts Samson, 2005). The detection risk is seen in the picture when the statements of financial bills are missing from the company and they are unable to locate it. It seems to be that auditor is in favor of the company and his inability is highlighted. The financial statements are to be audited with the set of customized flow chart and in a systematic way so that it is easy to locate the data that is missing and to spot the manipulations done in the financial statements and the necessary modifications are to be suggested since the finally recorded data is expected to be correct with the perfect data analysis by the auditor (Elliott Pallais, 1997). At later stages it might create wrong impression in the users mind if found any in corrected data in the files. For reducing the chances of risk factors multiple opportunities are given to the auditors to carry out the analysis. The audit team finally represents the combination of three audit risks only after completing the entire process of auditing the files. The risks that are involved in the three kinds such as inherent risk, control risk and the detection risk, any increase should be figured out for estimating the risk that complicates the audit (Soh Martinov-Bennie, 2011). The Audit risk = Inherent risk x control risk x detection risk The process had been identified by the audit team to know the threats that are involved in the task of auditing the files and possible ways are to be reported for the reduction of threats they are supposed to be acknowledged with work assigned to team for making the final decision on the reduction of entire threats (nerud, 2007). The task can be rejected if the level of risk is at unmanageable position. Numerous processes of safeguarding tracks has been proposed if the detection risk is at high level but here it is at minor level. Management approval is required for accepting the task because huge labor and long time frame is necessary for this risk to handle. The detection risk level is inversely proportional to the inherent risks and the control risk levels. Audit team proposed that the detection risk would be at the lower stage if inherent risk is noticed in the task which in turn making the possibilities for the inherent risk to the high level peaks. The threatening levels for inherent and detection risks are found to be high by the auditing process team at BSF as the end result (Karapetrovic Willborn, 2000). The audit risk calculations are done in the following manner: The Audit risk = Inherent risk x control risk x detection risk = 0.9 x 0.05 x 0.8 = 0.36 or 36 percent The audit team has a fine line of detecting the threat levels so the level below 10 percent is said be moderate in general. Eventually for the BSF the threat level is noticed to be below 10% so the audit threat is at safer side. So no further issues are found in accepting the task of auditing the financial statements at BSF limited. Program of Audit at BSF Ltd A rule in the auditing process is important that many proofs are to be collected that are related to the audit by the auditing team for the purpose of sticking to the procedure that is systematic and appropriate for auditing the financial statements. After the evaluation processing the accounting system of the client is verified by team then the auditing process is executed for instance in this case it is BSF limited. For the clients task the procedure that is followed is the detailed study of the accounting system by the audit team (Vasarhelyi Halper, 2002). Later on many tests including control test is conducted that is related to the process to ensure that all the evidence is accumulated in the mentioned time period. The evidence of the financial statements of clients is to be provided by the audit team at the end. The certainly recommended audit programs are as shown: Monthly based financial reports Number of accounts to be seen Suggestions from the previous audits to be followed Capital finance at the year-end should be proposed Client reports to be sent and funds lists to be received Account should be checked on prelims for funds Files and ledgers related to the financial assists are to be observed thoroughly At the end the financial income should be matched with the data Office and bank accounts should be linked Transactions should be checked and the amount taken and utilized for the same should be reported CSIRO Grant Treatment The external auditors have to follow entities in the financial statements that pertain to irregularities mentioned in the journal since the auditing process is followed according to it. The funding is distributed by enquiring the entities (Adams Simnett, 2011). Development and the research are the two success factors designed by BSF limited. External factors are responsible for uncertainty in research. If success is gained from such research programs it can used for the beneficial purpose of customers. Proper research and development activities should be done for attaining success and correct targets should be known. Based on the budget and time the in between targets should be cleared. The journal guidelines are followed by BSF for effectiveness. The budget for research is allocated on daily basis as the BSF research process is complicated. More amounts is allocated for materials and equipments. The funds should be yet fixed by audit team based on industry works (Soh Martinov-Bennie, 2011). Triple Bottom Line Addendum The social, environmental and the economic production are the three entities on the triple bottom line. This system is designed by Spreckly during 80s as a part of signature audit process. These standards are followed by BSF limited. The financial statements work credits are appreciable. The good communication and friendly environment is accepted though the auditing process is lengthy. It is being opposed by other firms because of the favor to fish production than to food material suppliers. But it benefitted the next generation (Soh Martinov-Bennie, 2011). The poor and high bias is created. It was accepted as perfect solution as the time went on .this triple bottom line is the measure of success but not appreciated by the auditing team for the signing off as they were unwilling to do so. Are you Willing to Sign-off on that Statement as Being True and Fair? The auditor is forced to sign off the document because of the evidences that are available and the availability of the information is huge proposing that the process of auditing is right. On the conditional basis in the market the information is given only after the extensive research and the conclusions from the situations are drawn. The patent value that is produced by the management is found to produce the output that is efficient in future. Since the technology advancement is low there is less completion in market bur progresses with time (Vasarhelyi Halper, 2002). The research in market might not be same all time it may change. In near future in some time the market might gain a good understanding and huge interest is bought on patent value. The product popularity is taken into account before fixing the price for it and conditions of sales are also given importance. There is no worry expressed from management because it can get its value after popularity is gained in market. References Aall, C., 1999. The manifold history of eco-auditing and the case of municipal eco-auditing in Norway.Corporate Social-Responsibility and Environmental Management,6(4), p.151. Adams, S. and Simnett, R., 2011. Integrated Reporting: An Opportunity for Australia's Not for Profit Sector.Australian Accounting Review,21(3), pp.292-301. nerud, K., 2007. Harmonization of Financial Auditing Standards in the Public and Private Sectors-What Are the Differences?.International Journal of Government Auditing,34(4), p.17. Carmichael, D.R., 1974. The assurance function--auditing at the crossroads. Journal of Accountancy (pre-1986),138(000003), p.64. Cegielski, C.G., 2008. Toward the development of an interdisciplinary information assurance curriculum: Knowledge domains and skill sets required of information assurance professionals.Decision Sciences Journal of Innovative Education,6(1), pp.29-49. Chan, D.Y. and Vasarhelyi, M.A., 2011. Innovation and practice of continuous auditing.International Journal of Accounting Information Systems,12(2), pp.152-160. Che, P., Bu, Z., Hou, R. and Shi, X., 2008. Auditing Revenue Assurance Information Systems for Telecom Operators. InResearch and Practical Issues of Enterprise Information Systems II(pp. 1597-1602). Springer US. Debreceny, R., Lee, S.L., Neo, W. and Shuling Toh, J., 2005. Employing generalized audit software in the financial services sector: Challenges and opportunities.Managerial Auditing Journal,20(6), pp.605-618. Elliott, R.K. and Pallais, D.M., 1997. Are you ready for new assurance services?Journal of Accountancy,183(6), p.47. Flesher, D.L., Previts, G.J. and Samson, W.D., 2005. Auditing in the United States: a historical perspective.Abacus,41(1), pp.21-39. Holt, G. and Henson, S., 2000. Quality assurance management in small meat manufacturers.Food Control,11(4), pp.319-326. Holstrum, G.L. and Hunton, J.E., 1998. New forms of assurance services for new forms of information: the global challenge for accounting educators.The International Journal of Accounting,33(3), pp.347-358. International Auditing and Assurance Standards Board (IAASB), 2010. Handbook of International Quality Control, Auditing, Other Assurance, and Related Services Pronouncements, Part I. Karapetrovic, S. and Willborn, W., 2000. Quality assurance and effectiveness of audit systems.International Journal of Quality Reliability Management,17(6), pp.679-703. Richardson, A.J., 2008. Due process and standard-setting: An analysis of due process in three Canadian accounting and auditing standard-setting bodies.Journal of Business Ethics,81(3), pp.679-696. Sierra, L., Zorio, A. and Garca Benau, M.A., 2013. Sustainable Development and Assurance of Corporate Social Responsibility Reports Published by Ibex 35 Companies.Corporate Social Responsibility and Environmental Management,20(6), pp.359-370. Soh, D.S. and Martinov-Bennie, N., 2011. The internal audit function: Perceptions of internal audit roles, effectiveness and evaluation.Managerial Auditing Journal,26(7), pp.605-622. Soltani, B., 2007.Auditing: An international approach. Pearson Education. Teck-Heang, L.E.E. and Ali, A.M., 2008. The evolution of auditing: An analysis of the historical development.Journal of Modern Accounting and Auditing,4(12), p.1. Vasarhelyi, M.A. and Halper, F.B., 2002. Concepts in continuous assurance. Researching accounting as an information systems discipline, pp.257-271.

Lucky free essay sample

Who is the luckiest person you know? Many people consider luck as a gift, you either have it or you don’t. For me luck is a part of who I am. In some ways it has defined me. It has taught me valuable life lessons that have shaped my beliefs. Through experience I have learned that you cannot always rely on fate and that it is simply a blessing. When I ask people who is the luckiest person they know they always respond, â€Å"You†. I never considered myself lucky until one night when I bought my first scratch ticket and won a thousand dollars. We will write a custom essay sample on Lucky or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page This was probably the most memorable moment of my life. I became incredibly overwhelmed with excitement and felt invincible. All those feelings ended on my way home when I was hit by a drunk driver. I never thought that misfortune would strike me in that way, especially after winning a thousand dollars. Luck has proven to me that I should appreciate everything that is given to me and I shouldn’t take anything for granted. Luck comes in all forms. I may have been hit by a drunk driver but luckily I was unharmed. This frightening incident has shown me the power of luck and how if you are not thankful what you are given can be taken away in a flash. It has also taught me that being considered lucky does not always involve money. I now appreciate life’s virtue. I am thankful to have a family and to be given opportunities. My outlook on people has changed significantly. I am aware of the misfortune in the world and I want to help and offer everything I can. I understand that my luck will one day run out and it is not something I should live by, but as of now I am grateful for what I have been given. It may have only taken me a car accident to figure this out, but I truly consider myself lucky to have learned from this.

Amusement Park Essays

Amusement Park Essays Amusement Park Paper Amusement Park Paper Amusement parks INTRODUCTION Amusement and theme parks are terms for a group of entertainment attractions and rides and other events in a location for the enjoyment of large numbers of people. An amusement park is more elaborate than a simple city park or playground, usually providing attractions meant to cater specifically to certain age groups, as well as some that are aimed towards all ages. Amusement parks evolved in Europe from fairs and pleasure gardens which were created for peoples recreation. The oldest amusement park in the world (opened 1 583) is Bakken, at Klampenborg, north of Copenhagen, Denmark. In the United States, worlds fairs and expositions were another influence on development of the amusement park industry. Most amusement parks have a fixed location, as compared to traveling funfairs and carnivals. These temporary types of amusement parks are usually present for a few days or weeks per year, such as funfairs in the United Kingdom, and carnivals (temporarily set up in a vacant lot or parking lots) and fairs (temporarily operated in a fair ground) in the United States. The temporary nature of these fairs helps to convey the feeling that people are in a different place or time. In common language, theme park is often used as a synonym for the term amusement park. A theme park is actually a distinct style of amusement park, for a theme park has landscaping, buildings, and attractions that are based on one or more specific or central themes. A plurality of themes is not required to be considered a Theme park. Despite the long history of amusement parks, where many parks have traditionally incorporated themes into the evolving design and operation of the park, qualifying a park as a theme park, the first park built with the original intension of promoting a specific (or xclusive set of) theme(s), Santa Claus Land (currently known as Holiday World Splashin Safari) located in Santa Claus, Indiana, did not open until 1946. Disneyland, located in Anaheim, California, built around the concept of encapsulating multiple theme parks into a single amusement park is often mistakenly noted as the first themed amusement park. ADMISSION PRICES AND ADMISSION POLICIES Amusement parks collect much of their revenue from admission fees paid by guests attending the park. Other revenue sources include parking fees, food and beverage sales and souvenirs. Practically all amusement parks operate using one of two dmission principles Pay-as-you-go In this format, a guest enters the park at little or no charge. The guest must then purchase rides individually, either at the attractions entrance or by purchasing ride tickets (or a similar exchange method, like a token). The cost of the attraction is often ride a carousel but four tickets to ride a roller coaster. The park may allow guests to purchase unlimited admissions to all attractions within the park. A wristband or pass is then shown at the attraction entrance to gain admission. Disneyland opened in 1955 using the pay-as-you-go format. Initially, guests paid the ride admission fees at he attractions. Within a short time, the problems of handling such large amounts of coins led to the development of a ticket system that, while now out of use, is still part of the amusement-park lexicon. In this new format, guests purchased ticket books that contained a number of tickets, labeled A, B and C. Rides and attractions using an A-ticket were generally simple, with B-tickets and C-tickets used for the larger, more popular rides. Later, the D-ticket was added, then finally the now- famous E-ticket, which was used on the biggest and most elaborate rides, like Space Mountain. Smaller tickets could be traded up for use on larger rides (i. e. , two or three A-tickets would equal a single a-ticket). Disneyland, as well as the Magic Kingdom at Walt Disney World, abandoned this practice in 1982. The advantages of pay-as-you-go include the following: guests pay for only what they choose to experience attraction costs can be changed easily to encourage use or capitalize on popularity The disadvantages of pay-as-you-go include the following: guests may get tired of spending money almost continuously guests may not spend as much on food or souvenirs Pay-one-price An amusement park using the pay-one-price format will charge guests a single, large admission fee. The guest is then entitled to use all or more often almost all of the attractions in the park as often as they wish during their visit. The park usually has some attractions that are not included in the admission charge; these are called up- charge attractions and can include bungee Jumping or go-kart tracks or games of skill. However, the majority of the parks attractions are included in the admission cost. The pay-one-price ticket was first used by George Tilyou at Steeplechase Park, Coney Island in 1897. The entrance fee was $0. 25 for entrance to the 15-acre (61,000 m2) park and visitors could enjoy all of the attractions as much as they wanted. When Angus Wynne, founder of Six Flags Over Texas, first visited Disneyland in 1959, he noted that parks pay-as-you-go format as a reason to make his park pay-one-price. He thought that a family would be more likely to visit his park if they knew, up front, how much it would cost to attend. The advantages of pay-one-price include: Guests can more easily budget their visit. uests may be more likely to experience an attraction theyve already paid for lower osts for the park operators, since ticket-takers are not needed at each attractions The disadvantages of pay-one-price include: guests will often be paying for attractions that they do not ride or visit guests who are simply coming Just to be with their families will have to pay anyway Todays modern theme parks typically charge a single admission fee for admission and unlimited use of attrac tions, rides, and shows, whereas most modern amusement parks offer free RIDES AND ATTRACTIONS Mechanized thrill machines are what makes an amusement park out of a pastoral, relaxing picnic grove or retreat. Earliest rides include the carousel which was originally developed as a way of practicing and then showing-off expertise at tournament skills such as riding and spearing the ring. By the 19th century, carousels were common in parks around the world. Another such ride which shaped the future of the amusement park was the roller coaster. Beginning as a winter sport in 17th century Russia, these gravity driven railroads were the beginning of the search for even more thrilling amusement park rides. The Columbian Exposition of 1893 was a particular fertile testing ground for amusement rides. The Ferris wheel is the most recognized product of the fair. Many rides are set round a theme. A park contains a mixture of attractions which can be divided into several categories. Thrill rides There is a core set of thrill rides which most amusement parks have, including the enterprise, tilt-a-whirl, the gravitron, chairswing, swinging inverter ship, twister, and the top spin. However, there is constant innovation, with new variations on ways to spin and throw passengers around appearing in an effort to keep attracting customers. e. g. thunder @ Essel world Roller coasters, such as the Behemoth, at Canadas Wonderland, have fast and steep drops from high altitudes. Since the late 19th century, amusement parks have featured roller coasters. Roller coasters feature steep drops, sharp curves, and inversions. Roller coasters may be the most attractive aspect of a park, but many people come for other reasons. Amusement parks generally have anywhere from two to seven coasters, depending on space and budget. As of 2012, the record for the most coasters in one park is held by Six Flags Magic Mountain and Cedar Point with 17; Canadas Wonderland with 16; Kings Island and Kings Dominion with 14. Train rides Amusement park trains have had long and varied history in American amusement parks as well as overseas. According to various websites and historians, the earliest park trains werent really trains†they were trolleys. The earliest park trains were mostly custom built. Some of the most common manufacturers were: Allan Herschfield Cagney Brothers Chance Rides (C. P. Huntington Train) Amusement parks with water resources generally feature a few water rides, such as the log flume, bumper boats, rapids and rowing boats. Such rides are usually gentler and shorter than roller coasters and many are suitable for all ages. Water rides are especially popular on hot days. Dark rides Overlapping with both train rides and water rides, dark rides are enclosed attractions in which patrons travel in guided vehicles along a predetermined path, through an array of illuminated scenes which may include lighting effects, animation, other special effects, music and recorded dialogue. Transport rides Transport rides are used to take large amounts of guests from one area in the park to another. They usually cost extra, even in parks where rides are free. They are generally popular as they offer an alternative to walking. Transport rides include chairlifts, monorails, and train rides. Dippin Dots, an ice cream stand that appears at several amusement parks in the United States. Amusement parks generate a portion of their income through the sale of food and drink to their patrons. Food is routinely sold through food booths, push carts and indoor restaurants. The offerings vary as widely as the amusement parks themselves, and range from common fast food items, like hamburgers, hot dogs, cotton candy, candy apples, donuts and local street foods up to full-service gourmet dishes. Amusement parks with exotic themes may include pecialty items or delicacies related to the parks theme. Many restaurants and food stands are operated by the amusement parks themselves, while others are branches of regional or national chains. The first challenge for theme parks managers is to integrate the elements in the park itself with all the elements defining the theme park environment in the theme park development plan. For example, theme parks cannot function without transportation possibilities to bring the visitor to the park, or food supply or accommodation to support the visitors stay. Another characteristic of theme parks is that their demand is highly seasonal. For theme park planners seasonality effects mean that they need to plan the facilities in such a way that whatever season or number of visitors in the park, the visitor experiences in the park are optimal. Also, when demand for rides, activities and facilities fluctuates during the day this can cause problems for the park, such as congestion and time specific peaks at the rides, activities and facilities. For theme park managers, capacity planning and routing is therefore an important task to deal with these problems. For example, to optimize the visitor streams in the park and to minimize waiting times at the activities. Another characteristic is the fact that theme parks face high fixed costs and low variable costs. This means that the costs per visitor in the low season, when there are only few visitors in the park, are much higher than in the high season, especially if the quality of the visitor experience has to be maintained. Furthermore, each year parks require high investments to add new exciting attractions to their product to attract the required level of visitors. At the demand side, theme park planners may rely on marketers to actively try and manipulate tourist demand, by price differentiation across seasons, special rates for early ookings and bundling of services and visits over time or with other tourist facilities in the region. Similar to other tourist attractions, theme parks first and foremost provide enjoyment to their customers. This implies that theme park managers face especially strong demands from customers for new and exciting Innovations in their services. Special strategies need to be devised to deal with tourist variety seeking. Also typically a diverse number of services within a park is required to promote repeat visits and to cater for different members of visitors groups as seniors and hildren) and for different segments in the tourist population at large. This has important implications for theme park planning in terms of location and type of activities that should be introduced and supported. Detailed consumer information often is essential to meet these consumers requirements. The costumers requirements place special demands on theme park planners in terms of meeting environmental standards imposed through (inter)national regulations and local communities, by increasing demands in terms of landscaping and design, and financial responsibilities in terms of managing large areas of land which need to be ought, leased or rented depending on the organizations financial management strategy. skills in terms of combining creative and commercial abilities. Theme park design is crucial in determining the success of a park. In terms of design, several different levels can be distinguished. First, rides, activities and exhibits have to be designed attractively and effectively both in terms of initial appeal and usage. Second, landscaping and urban designs are required to integrate the different single facilities into a whole based on the selected theme for the park. And finally, activities and ervices need to be arranged that can support and increase consumer experiences of the physical elements in the park. Meeting consumer demand must be done however without compromising environmental and socio-cultural objectives. Because the theme product is consumed and produced at the same time, the service must be right the first time. Therefore, adequate theme park planning is highly critical for optimizing the delivery of the theme park product to the consumer. The final challenges facing theme park planners are created by the theme park market. There is a growing competition in the theme park market, with an ever ncreasing number of parks and many parks expanding their activities. Even more so, the tourist demand market is facing demographic changes in the form of agreeing population, economic changes that lead to tighter family time budgets because of an increasing number of double earner households, and the introduction of new technologies such as multimedia entertainment that compete directly with the traditional theme park market. Knowledge of potential market origins, and interests, habits and other travel characteristics of the population is a necessary but not sufficient condition to plan the several components of the supply side. It is important for the parks to know how consumers think, and what makes them visit or not visit attractions, and when they want to visit a park. Also, for theme park planners, an estimate of peak visitor volume is essential to the planning of every feature of the theme park, parking, attractions, exhibits, toilet facilities, tour guidance, food services and souvenir sales. It can be concluded that the challenges theme park planners face ask for planning methods that can integrate the different components in the planning processes within and across various levels of planning. 2. It helps in rejuvenating . Adds value to the holiday 4. It is an enjoyable experience for all the members of the family 5. It helps to add an entertainment element to the business, educational tours etc. 6. Creates a huge revenue source 7. It caters to the all the age groups 8. It generates employment opportunities in the economy 9. It boosts the tourism and hospitality industry SWOT Analysis of Walt Disney Company Strengths Weaknesses Experience in the entertainment business (over 80 years), Tourist attraction, Strong reputation and brand name, Wide companys product range- different types of attractions and products, Disneys ttractions adjusted to changes in visitors preferences, Familiarity, Qualified and educated employees, Large work force, Many changes in top-management, High operating costs, Different culture, High price for tickets, Design duplication, Cultural imperialism, Visitor Spending European visitors not spend as much as American visitors, Opportunities Threats Highly diversified product and service, Positive government attitudes, Large group of loyal clients, Expansion on foreign markets, Over saturated markets, Increasing number of serious and actively operating competitors, which address their ffer to the same segment of clients (e. g. Six Flags) Bigger elasticity of competitors in adapting to particular segment of clients thanks to the smaller volume of sales, Increasingly competitors offer, which is perceived by clients and retailers as a wider and better available, CONCLUSION In a nutshell, theme parks will be a tendency for the tourism in the future. We need to maintain those advantages and convert those disadvantages. In order to boost the development of tourism and hospitality, we ought to boost the development of theme parks, and make theme parks our big hitter, and an important part of the newly- risen industry, and make great contribution to tourism. Amusement parks need to cater to the changing demands of the consumers since consumers want innovations. consumed and produced at the same time, the service must be right the first time. It helps to de stress and helps to rejuvenate the tourists and also creates huge profits and also generates employment opportunities. It caters to all age groups. The challenges theme park planners face ask for planning methods that can integrate the different components in the planning processes within and across various levels of planning.

Definition and Examples of Conciseness in Writing

Definition and Examples of Conciseness in Writing The term conciseness refers to speech or writing that is brief and to the point. In a concise composition, a great deal is conveyed in just a few words. Its not about just writing short sentences, though, but getting across the most important information economically, without  repetition, unnecessary jargon, needless details, and tangents. Concise writing keeps the reader engaged and doesnt waste his time with  circumlocution, padding, and verbosity. Without unnecessary clutter, the reader is more likely to understand the message, remember it, and even act on it, if thats the point of the piece. First Steps: Before the Draft The first steps in writing concisely overall begin as soon as the project starts, when you narrow down your topic to the thesis statement, story you want to ​tell, or message you need to convey. Before you even start drafting, you may sketch out ideas, necessary avenues of research, or plot points. Organize the best ideas in your outline, cutting some of the unnecessary before you even write a word. This enables you to target your writing and not waste time developing sections that arent necessary to the goal of the article, essay, report, or story.  Ã¢â‚¬â€¹ Drafting On your first draft, the main task is getting through it from start to finish. During the research phase, you may have discarded or added some points to your outline, making your thesis stronger. The cutting can continue throughout composing the first draft (and beyond). Get through that first draft, composing your main points. You dont have to write it from beginning to end; sometimes its easier to start in the middle and come back to the introduction and conclusion, sprinkling in the perfect cited quotes or the tense scene of dialogue in just the right spot. The perfect quotes from sources in articles, essays, and reports can actually save a lot of words spent narrating. Watch the ratio of quoted material and paraphrased sources to your own writing, though. Use only the best material as direct quotes for maximum impact. Summarize and paraphrase your research (cite paraphrases) in your own words. The piece needs to be your work in the end.   When youre satisfied with the draft, take a break. Youve accomplished something significant. And yes, the break is necessary, because you need to come back to the piece with fresh eyes to see what can be cut next. Author Elie Wiesel describes the process this way: Writing is not like painting where you add. It is not what you put on the canvas that the reader sees. Writing is more like a sculpture where you remove, you eliminate in order to make the work visible. Even those pages you remove somehow remain. There is a difference between a book of two hundred pages from the very beginning, and a book of two hundred pages, which is the result of an original eight hundred pages. The six hundred pages are there. Only you don’t see them. (Elie Wiesel: Conversations, edited by Robert Franciosi. University Press of Mississippi, 2002) Big-Picture Revision Depending on your works length, your revision step may first be large-scale trimming of sections or chapters, or you may start at the paragraph or sentence level. With a longer work, its useful to take a step back and compare the thesis statement and outline to the draft. Do you have sections, points, examples, or paragraphs that stray from your topic? Do they move the information or story forward? Will the reader still understand your point without them? We often meet large-scale cutting with reluctance, so it softens the blow to have a cuttings document. You move it rather than delete it. The work is still there if you feel later you need some bits of it, but its not slowing down or cluttering up the paper youre refining. It could even be the start of another piece later. This is where eliminating some tangents before drafting really pays dividends. Roy Peter Clark,  author of Writing Tools has this advice: [B]egin by pruning the big limbs. You can shake out the dead leaves later. Cut any passage that does not support your focus. Cut the weakest  quotations,  anecdotes, and scenes to give greater power to the strongest. Cut any passage you have written to satisfy a tough teacher or editor rather than the common reader. Dont invite others to cut. You know the work better. Mark optional trims. Then decide whether they should become actual cuts. Sentence-Level: Redundancy and Repetition After youve honed your message, the sentence level is where the scissors and scalpel come in, and the hatchet goes back in the closet. First look at the remaining paragraphs for spots where youve said the same thing in multiple ways. The area is likely something difficult to explain or complex. Solutions: Take these sentences and combine the best parts of them or start over explaining that particular point.   Example: The ability of the different bird species to eat seeds depends on beak style and shape. Its form dictates function. The beak needs to be powerful enough to break seeds, and those that eat mainly fruit or leaves may not be able to eat seeds due to their types and shapes of beak. Reworded fix: Whether different bird species can eat seeds depends on their beak style. For example, seed eaters beaks are shaped differently and stronger than those species that eat mainly fruit or leaves because seed eaters need to break hulls. The moral of the story: Dont be afraid to recast sentences to condense ideas. The beak shape and style was referenced explicitly more than needed. Your reader will be able to follow along if youre clear. And concise sentences are often more clear than wordy  ones. Sentence-Level: Wordiness Next, look for sentences that are really long. Read them out loud. Do you have to take a breath? Does the meaning get lost? Do they sound awkward to the ear? Solutions: Take out explanations put in parentheses or dashes, which send a reader on a winding path. These can be their own sentences. Break one into two to three or two long sentences (more than 25–30 words each) up into three or four. Itll help you to be clear and the reader to grasp whats going on. Recast passive voice.  Example:  Following the author’s study of The Naval Chronicle, which goes into detail on the wars with Napoleon, a trip aboard a freighter from California to Central America, and his trip back home to Britain, the first book in the series was plotted.Fix: The author studied The Naval Chronicle, which details the Napoleonic wars, and took a freighter from California to Central America. By the time he returned to Britain, hed plotted the series first book.The moral of the story: The extra-long sentence has a long parenthetical in the middle of a series of items, passive voice, consecutive prepositional phrases, and wordiness. The information flows more smoothly when made into two sentences following a more chronological path than starting with a dependent clause. Rephrase passive there is/are constructions. Example: There is a rule on the books that covers fencing styles for the homeowners association.Fixes: The homeowners association has a rule on the books that covers fencing style. OR The homeowners association rulebook covers fencing style.The moral of the story: Eliminating to be verbs automatically makes your sentences better. Getting rid of there is often also gets rid of that. Cut excess adjectives and adverbs: Will your sentence be understood without the adjectives or adverbs? Cut them, if so.   Example: She walked very slowly.Fix: She plodded along.The moral of the story:  Changing the verb makes for a stronger image. Qualifiers and intensifiers are often just filler. Other fixes: ​ Cut jargon.  Your work will be more accessible if you dont make your prose too flowery. Keep it simple.Use shorter words instead of long ones.  Cut  empty phrases  and  common redundancies.   Author Annie Dillard sums it up like this in Notes for Young Writers: Dont use any extra words. A sentence is like a machine; it has a job to do. An extra word in a sentence is like a sock in a machine.

Mainstreaming students with disabilities Into regular classrooms Assignment

Mainstreaming students with disabilities Into regular classrooms - Assignment Example Some of the benefits coming along with the mainstreaming include higher academic performance for the mainstreamed students, improved self-esteem by the disability students and improved socialization skills on all the students among others (de Boer, Pijl, & Minnaert, 2011). 3. Unlike fully included disabilities students, those mainstreamed for some class sessions may feel socially isolated and more conspicuous that those fully included. Most of the mainstreamed students, research shows, would rather be in an environment where the students are at almost the same academic level and with the same needs. 4. The schools with mainstreamed programs are required by law to provide additional specialized services to suit these students and therefore a higher cost of education. The problem with this requirement is that they are not provided with additional funding to help in the support of this program. The average cost of educating a student with a single disability, for example, has been estimated to be up to 1.6 times that of the regular student. This estimation however does not cater for students with multiple learning disabilities that may require more specialized learning services. 2. If the idea of mainstreaming is one that is fully embraced, professional training and regular seminars and sessions can be offered to regular teachers to help them be well equipped to handle the needs and academic needs of the children with disabilities. 3. To deal with social isolation, the level of support accorded to mainstreamed students should not be so exclusive the aides should also be available to help regular students to remove the stigma and conspicuous nature of this added attention. 4. The ministry in charge of education and special education should be able to come up with ways to increase funding to cater for the mainstreamed students. Equally, the parents should be encouraged to

Explanatory synthesis Essay Example | Topics and Well Written Essays - 1000 words

Explanatory synthesis - Essay Example Social psychology challenges the most basic assumptions of human behaviour and nature, and to a big extent the predictability of the social world. Psychologists look at the different kinds of situations in the world in a very distinct and different way from that of other people and they apply the beliefs and insights of psychology to the unfolding social events around them. Individuals respond differently to social influences by either choosing to comply, identifying, complying or internalizing. Compliance is seen as a form of agreement to the particular situation at hand, but deep from within the person might be in no way convinced. Situations in a big way determine the kind response a person will extend to particular situation. In the text, Ross argues that the type of information about personality that most of the people would possess before predicting personality proves to be of relatively little value. Research has indicated that when faced in certain situations such as these, i t is not possible to predict with accuracy how particular people will respond. Situational behaviour in relation to an individual’s actions can be demonstrated in the parable of the Good Samaritan. The story is about a Jewish man who was travelling to Jericho, but bandits attacked him and left him lying half-dead by the roadside. A priest passes him and offers him no help, until a Good Samaritan whose stereotype hated the Jews stopped by and offered the man assistance. The study experimenters of social philosophy recruited 67 students from the Princeton Theological Seminary, telling them that it a study about religious education and vocations (Hoyk, Hersey 49). Unknown to these participants, they were to be subjected to their own personal Good Samaritan attributes. The requirement was that they would fill questionnaires on their personality then walk to a nearby room to give their talk. On the doorway, a man was lying doubled over with his eyes closed and coughing. All the pa rticipants would not escape the site of the distressed man and the biggest question was, would they be willing to offer any assistance to the man? In their assumption, the experimenters thought that it would be dependent on how much the participants were hurried, and thus devised a way of manipulating them, by giving each a map and one of the instructions which either stated that the participant was late and had been a few minutes late. Another stated that the assistance was waiting for the participant, yet the other stated that it would take another few minutes before the interviewers were ready, but had the option of proceeding over. This created conditions of high, medium, and low hurry and thus some students left the office thinking that they needed to be quick, others less while the rest felt relaxed. Each of the three conditions were was also divided into two, half of them were required to give a talk on the Good Samaritan and the other half on prospects for seminary graduates . This helped the experimenters to assess both the effects of hurry and the talk they were to give on students’ helping behaviours. The outcome of the experience was classified into two classes, which included in a hurry and could not stop and judge on context. From the results, only 40% of the students offered some form of assistance to the people, with a few stepping over the apparently injured man, but it was evident that the amount of hurry they were in had a

Sustainable Competitive Advantage Essay Example for Free

Sustainable Competitive Advantage Essay A sustainable competitive advantage occurs when an organization acquires or develops an attribute or combination of attributes that allows it to outperform its competitors. These attributes can include access to natural resources or access to highly trained and skilled personnel human resources. It is an advantage (over the competition), and must have some life; the competition must not be able to do it right away, or it is not sustainable. It is an advantage that is not easily copied and, thus, can be maintained over a long period of time. Competitive advantage is a key determinant of superior performance, and ensures survival and prominent placing in the market. Superior performance is the ultimate, desired goal of a firm; competitive advantage becomes the foundation. It gives firms the ability to stay ahead of present or potential competition and ensure market leadership. Resource-Based View of the firm. In 1991, Jay Barney established four criteria that determine a firms competitive capabilities in the marketplace. These four criteria for judging a firms resources are: 1. Are they valuable? (Do they enable a firm to devise strategies that improve efficiency or effectiveness?) 2. Are they rare? (If many other firms possess it, then it is not rare.) 3. Are they imperfectly imitable (because of unique historical conditions, causally ambiguous, and/or are socially complex)? 4. Are they non-substitutable? (If a ready substitute can be found, then this condition is not met?) When all four of these criteria are met, then a firm can be said to have a sustainable competitive advantage. In other words, the firm will have an advantage in the marketplace which will last until the criteria are no longer met completely. As a result, the firm will be able to earn higher profits than other firms with which it competes. Developing Sustainable Competitive Advantages 1. Customer Loyalty: Customers must be committed to buying merchandise and services from a particular retailer. This can be accomplished through retail branding, positioning, and loyalty programs. A loyalty program is like a Target card. Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer’s needs and wants outside of Target. This will entice Target to offer products that they do not have in stock. Target tracks all sales done on their cards. So, Target can track customers who use their card at other retailers and compete by providing that merchandise as well. 2. Location: Location is a critical factor in a consumers selection of a store. Starbucks coffee (shown here Figure 1) is an example. They will conquer one area of a city at a time and then expand in the region. They open stores close to one another to let the storefront promote the company; they do little media advertising due to their location strategy. 3. Distribution and Information Systems: Walmart has killed this part of the retailing strategy. Retailers try to have the most effective and efficient way to get their products at a cheap price and sell them for a reasonable price. Distributing is extremely expensive and timely. 4. Unique Merchandise: Private label brands are products developed and marketed by a retailer and available only from the retailer. For example, if you want Craftsman tools, you must go to Sears to purchase them. 5. Vendor Relations: Developing strong relations with vendors may gain exclusive rights to sell merchandise to a specific region and receive popular merchandise in short supply. 6. Customer Service: This takes time to establish but once its established, it will be hard for a competitor to a develop a comparable reputation. 7. Multiple Source Advantage: Having an advantage over multiple sources is important. For example, McDonalds is known for fast, clean, and hot food. They have cheap meals, nice facilities, and good customer service with a strong reputation for always providing fast, hot food

Anoreixa Nervosa and Obsessive Compulsive Disorder :: Essays on Disorders

I. Introduction Eating disorders, such as anorexia nervosa, bulimia nervosa, and binge eating disorder, have been hypothesized to have a relationship with obsessive-compulsive disorder. However, there remains a great amount of evidence in favor that anorexia nervosa and obsessive-compulsive disorder share more similarities than bulimia nervosa or binge eating disorder. The implications of integrating eating disorders with obsessive-compulsive disorder to create a "family" of disorders called obsessive compulsive spectrum disorder will be discussed. There remain some differences between eating disorders and obsessive compulsive disorders which further explore the correlation. Furthermore, review papers and primary research papers support that a correlation exists between eating disorders and obsessive compulsive disorders, and the research acknowledges the differences between the two disorders. However, two primary research papers do not believe that there exists a correlation between the two disorde rs. In all, the implications of the relationship between the two diseases, the treatment of the two diseases, and suggestions for further and diverse research will be explored II. The DSM-IV Definition of Anorexia Nervosa: The DSM-IV definition of anorexia nervosa has four conditions. The definition states: "I) Refusal to maintain body weight for age and height; 2) intense fear of gaining weight or becoming fat, even though underweight; 3) disturbance in the way in one's body weight, size, or shape is experienced, undue influence of body weight or shape on self-evaluation, or denial of the seriousness of the current low body weight; and 4) in females, ammenorrhea" (1). There remain two kinds of an nervosa as well the restricting ": "the person has not regularly engaged in binge-eating or purging behavior-" and the binge-eating/purging type.- "in which the person has regularly engaged in these behaviors" (1). Anorexia nervosa usually occurs during adolescence and in females. This definition becomes important in understanding the relationship between anorexia nervosa and obsessivecompulsive disorder. III. The DSM-IV Definition of Obsessive-Compulsive Disorders. The DSM-IV definition of obsessive-compulsive disorder states: "an anxiety disorder, where it is defined as obsessions and/or compulsions that cause marked distress, are time-consuming, or interfere with functioning. Obsessions are defined as recurrent and persistent thoughts, impulses or images that are experienced as invasiive and ego-dystonic and that cause anxiety or distress. Compulsions are defined as ritualistic behaviors or mental acts that the person feels driven to perform in response to an obsession or according to rules that must be rigidly applied. The behavior or mental act is aimed at preventing or reducing distress or preventing some dreaded event or situation and is recognized as excessive or unreasonable" (1).

Obamacare Essay

â€Å"Change will not come if we wait for some other person or some other time. We are the ones we’ve been waiting for. We are the change that we seek.† Those words were famously spoken from Barack Obama during his election period. Following through with those words, he begins to make change in the country. Change isn’t easy, yet you hope it’s worth it in the end. The USA seems to be standing on both sides of the fence when it comes to the changes the President is making with healthcare. March 23, 2010 Obama signed into law Affordable Care Act, or better known as Obamacare. Together with the Health Care and Education Reconciliation Act, it represents the most significant government expansion and regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 (www.obamacarefacts.com). Obamacare was enacted to provide affordable health insurance to 44 million uninsured Americans and to reduce the growth in health care spending. Obamacare has done some important things already, such as prohibiting insurance companies from dropping your coverage if you get sick and has been working with insurance companies who will not cover a person because of a pre-existing condition. However, as with all change there are two ways at looking at the new bill. Obamacare will drastically affect the low-income families in a positive way. In America healthcare is so difficult to afford for the average low-income family, Obama has placed the care on a sliding scale. The expansion will cover over 15 million low-income individuals and families below the 133% FLP mark. However each state has the option to opt-out of providing coverage for the poor. By not providing coverage for the poor, it will leave 2-3 million people without coverage. States that decide to opt-in employers will have to respond by laying people off and making full time employees part time to avoid Obamacare penalties and taxes by not implementing the program. Others will not expand beyond 50 employees to avoid the bill’s mandate’s (Shenk, 2013). The average consumer will see a difference because some businesses are adding surcharges to invoices in to help make up the cost of healthcare coverage for their employees. On a positive note, there would be no annual or lifetime limits, children can stay on their parent’s plans to age 26; FDA can approve more generic drugs driving prices down and breaking monopolies and protections against discrimination for gender, disabilities and domestic abuse. And there will be significant tax credits to the small businesses with less than 25 employees, to help offset the costs of providing coverage to their employees. Obamacare will certainly challenge the nation over whether it wants a national system to be dependent on Washington or rely on dual federalism that protects freedom. The bill doesn’t allow the American citizen the option, if they want to offer or accept coverage; they have to have it or they will be penalized. That doesn’t allow much freedom of choice, however at least they are being offered the opportunity to coverage. Despite the rocky road Obamacare has had to start, it has lived to see another day and each day the kinks are worked out. This bill is here to stay. So, as cchange isn’t always easy, the average American citizen can say that the law will be beneficial to them as individuals, their families, communities, and country.

How to Asses Mental Illness

The ability for patients to access mental health services these days are more wide ranging than ever before. This is in part due to the fact that the realm of mental health, once simply governed by physicians, is now peopled by staff of all different types and disciplines. In addition, many mental health professionals are now multiply credentialed, so it is not impossible to see a mental health professional who is all at once a family and marital therapist, a chemical dependency practitioner and a social worker. All these elements only serve to improve the ability of patients/clients to receive quality mental health services, whether it be in a large institutional setting, a community mental health center or in a private clinical office. But what are the different types of mental health professionals who are trained in the identification and treatment of patients with mental health issues? There are many, but for the matter of clarity and brevity, we will focus on just three. Licensed clinical social workers are one type of mental health professional who may be assigned a clinical case. These are individuals who have received graduate level training in the assessment and management of patients with mental illness. They may choose to specialize in a certain type of therapy, such as marital or family therapy or they may provide a more general practice. Clinical social workers are also found in the hospital setting, whether for psychiatric patients or medical patients and are experts in arranging for social services and referral to assisted living facilities, nursing homes, and other post hospitalization care. Advanced registry nurse practitioners are one of the newer types of clinicians in the mental health field. These are nurses who have taken graduate level education which allows them to perform diagnosis and treatment for patients. Many nurse practitioners (also called ARNPs) can prescribe medications for their patients, depending on the laws of the states where they live. ARNPs are also unique in that they can open up clinical practices of their own without having to work under the auspices or licensure of a practicing physician. ARNPs provide medication and counseling services, as well as crisis intervention services. ARNPs are also found frequently in both the inpatient and outpatient settings. Another type of professional who may diagnose and treat a patient with mental health issues is a clinical psychologist. These are men and women who receive post-graduate education and receive a doctorate in psychology. Psychologists are often called â€Å"doctor† but the difference is that they are not allowed to prescribe medications. Psychologists are multifaceted, and are able to diagnose and treat patients with mental health issues, as well as perform and interpret psychological testing to held aid in the diagnosis of patients with personality or learning disorders. Psychologists are usually utilized in the outpatient setting, but it is not unheard of for them to work on an inpatient mental health unit as well. While all these different clinical backgrounds are able to assess patients for the presence of mental illness, the issues which they must consider are the same from patient to patient. Whether the patient is a self-referral, court mandated or identified by a family member, before a true clinical diagnosis can be made, a thorough mental health assessment must be made. This mental health assessment includes several key issues which must be answered. First, the clinician must know what the problem is which brought the patient in for evaluation in the first place. Does the patient feel sad, or depressed, or anxious? To what degree does the mood problem affect the patient†s day to day life? Are they able to go on about their daily business, or are they incapable of holding a job or caring for themselves or their families, because of the severity of the illness. Does the patient actually perceive there is a problem, or has the patient been referred by a medical provider, family member, or friend? The high coincidence of mental health problems and substance abuse makes it necessary for the mental health professional to assess if there is any drug or alcohol abuse issues here. How long has the patient had these symptoms, and are they getting worse, better, or staying the same. A family history is also important, especially as it pertains to issues of mental illness within the family, or a history of physical/sexual or emotional abuse. Above all, when any mental health professional is assessing a patient for mental illness, he or she must assess if the patient has any thoughts of hurting himself or anyone else. This is almost the most important question to be asked of any patient who is being assessed for mental health problems, and when answered in the positive, must be dealt with immediately. As we are discussing suicidal ideation, it is important for any clinician to understand who is at the greatest risk of self harm. There is a disparity in the rates of suicide between men and women, in that it is more likely for a woman to express thoughts of suicide and it is more likely for a man to actually commit suicide. In fact, men over age 45 are more than four times more likely than women to kill themselves as women in the same age (National Patient Safety Agency, 2001). An unemployed man is two to three times more likely to commit suicide. Suicide is also believed to account for 20 percent of all death in young people aged 15-24 and is second only to accidental death. The prevalence of substance abuse in this age group tends to be a contributing factor to suicide rates. The additional issues of academic pressure and relationship problems, as well as possible history of physical and sexual abuse are other risk factors. Interestingly, research has also shown that youngsters who know someone who commits suicide are more likely to commit suicide (Shaffi, et. al. 1985). While issues of race and likelihood to commit suicide have been studied, the pattern changes over geographic distribution. A study done in 1993 by Briget seemed to indicate that gay men and lesbians had higher rate of suicide and attempted suicide than the general population. And, as previously mentioned, research has shown that substance abuse is a significant risk factor for suicide and suicide attempts. One study estimated that among people who abuse drugs, the risk of suicide is twenty times greater than that of the general population (Faulkner, 1997) Any discussion about mental health in the 21st Century is sure to bring some in some element of the Health Insurance Portability and Accountability Act of 1996, commonly known as HIPAA. HIPAA is a federal health benefits law passed in 1996, effective July 1, 1997, which among other things, restricts pre-existing condition exclusion periods to ensure portability of health-care coverage between plans, group and individual; requires guaranteed issue and renewal of insurance coverage; prohibits plans from charging individuals higher premiums, co-payments, and/or deductibles based on health status. It also places strict limits on the type and amount of information which can be released about patients, and to whom the information can be given, and in what manner. While the privacy of patient care information is important, HIPAA can be a stumbling block to the care of patients. For example, should the patient refuse that any collateral information be obtained about his case from a family member or friend, the mental health professional is prohibited by law from making any contact with this person, even if the collateral information could be of help in the care and diagnosis of the patient. In addition, it makes it almost impossible for family members to make appointments or even ascertain that patients are getting care. Health care providers are given leeway in one manner, in that should a mental health patient make what is felt to be a credible threat against another person, the healthcare provider is then able to provide information about the threat to the person in the broadest possible terms, known as a â€Å"duty to warn†. Usually now, before a mental health professional takes on a case, he or she will have the patient sign a document explaining the patient†s rights and the clinician†s responsibilities under HIPAA. In this document, the clinician outlines most common reasons for which the clinician may have to release information about the patient†s care, such as coordinating care with another provider or even obtaining coverage information from the insurer. The patient is also generally advised that he or she may revoke all authorization at any time, but in turn the clinician may choose to discontinue treatment. In this way, both parties are protected. It should be noted, however, that HIPAA restrictions do not apply in cases where abuse is suspected, for clinical health oversight activities, for judicial reasons if evaluations are court ordered, and in cases where the care involves a workman†s compensation issue. The clinician must also provide to the patient a name and number of a person to who concerns about privacy violation may be addressed, and if all else fails, complaints may be made to the Department of Health and Human Services, the federal agency which oversees HIPAA. But should a mental health professional be incautious about the kind of information he or she chooses to release, then he or she may find that they are subject to high fines, sanctions from federally funded agencies and loss of clinical privilege. To me, HIPAA seems like the extreme end of the pendulum, and does little to take into account common sense. I believe that in the future, different legislation will be made to modify the tone of HIPAA and allow a bit of clinical common sense to be used as well. Until that time, mental health practitioners will have to tread lightly and practice with care, keeping in mind at all times the needs of the patient and the rule of the law. So in summary, there are many kinds of mental health professionals, of all different backgrounds and disciplines. It would not be difficult to find a therapist or other mental health professional that would be able to help a client with his or her problems. All are highly qualified. All receive excellent training, and the high degree of diversity allows the mental health patient to almost have a consumer attitude when shopping for mental health care. No matter what kind of practitioner a patient chooses, the patient should be sure that he or she has chosen one who is well versed in the diagnosis and treatment of mental illness. New laws put into affect do much to protect the rights of the patient, but in some ways can tie the hands of the clinical provider. But ultimately, rules are in place to protect both the patient and the practitioner.