Price Elasticity in Air Travel

Price Elasticity in Air Travel Introduction: Elasticity is define as the quality sth has being able to stretch and return to its original size and shape. (Oxford advanced learners dictionary 6th edition). In Physics elasticity is defined as the property of a substance that enables it to change its length, volume, or shape in direct response to a force effecting such a change and to recover its original form upon the removal of the force. (dictionaryreference.com). Suppose that your employer allows you to work extra hours more after your contracted hours for extra pay at the end of the month, the amount of extra money you will earn at the end of the month will depend on how much more extra hours you are able to work. Then how responsive you are to this offer can be seen as elasticity. Therefore I will define elasticity as the measure of degree of responsiveness of any variable to extra stimulus. From my example above elasticity can be calculated as Em = percentage of extra money you earn/percentage of extra hours worked. The concept of elasticity can be used to measure the rate or the exact amount of any change. In economics elasticity is used to measure the magnitude of responsiveness of a variable to a change in its determinants (sloman) such as (demand and supply) of goods and services. For the purpose of this essay am going to be examining the concept of elasticity of demand and supply in the airline industry. Types of Elasticity Price or own price Elasticity of demand Income elasticity of demand Cross elasticity Price or own price elasticity of demand It is the measure of the degree of sensitivity or responsiveness of quantity demanded is to a change in price of a product (Edgar.K. browing). Our assumption often is that all demand curves have negative slopes which means the lower the price the higher the quantity demanded but sometimes the degree of responsiveness vary from product to product. For example a reduction in the price of cigarettes might have only bring about a little increase in quantity demanded whereas a supermarket reduction in the price of washing up liquid will produce a big increase in quantity demanded The law of demand and even Common sense tells us that when prices change, the quantities purchased will change too. However, by how much? Businesses need to have more precise information than this they need to have a clear measure of how the quantity demanded will change as a result of a price change. Price elasticity is calculated as the percentage (or proportional or rate) of change in quantity demanded divided by the percentage (or proportional or rate) of change in its price. Symbolically: Pà Ã¢â‚¬Å¾D=%ΆQ/%à ¢Ã‹â€ Ã¢â‚¬  p Here à Ã¢â‚¬Å¾ denotes elasticity and à ¢Ã‹â€ Ã¢â‚¬   Graphically Elasticity measure in percentage because it allows a clear comparison of changes in qualitatively different things which are measured in two different units (sloman). It is the only sensible way of deciding how big a change in price or quantity, so their calls a unit free measurement. Generally when the prices of good increases the quantity demanded decreases, thus either of the number will be negative which after division will end up in a negative result, due to this fact we always ignore the sign and just concentrate on the absolute value, ignoring the sign to tell us how elastic demand is. The larger the elasticity of demand, the more responsive the quantity demanded is of elasticity. Degrees of elasticity Perfectly elastic Highly elastic Relatively elastic Relatively inelastic Highly inelastic Perfectly inelastic Elastic Demand Elastic demand occurs when quantity demanded changes by bigger percentage than price.(Sloman) Here customer has lot of other alternative. The value is always higher than 1, the change in quantity has a bigger effect on total consumer spending than in price. For example if there is a reduction in the price of a bottle of washing up liquid say from  £1.00 to 50p people will buy more probably to store up, in doing this they will end up spending more on the product than they will do on a normal day. An Inelastic Demand Elasticity in airline industry The airline industry is deeply impacted by the elasticity of demand, externalities, wage inequality, and monetary, fiscal, and federal policies. The elasticity of demand is based purely on current market conditions, thcustomers September 11th tragedy had a negative affect on the entire travel industry. It impacted the fiscal and monetary policies, supply and demand, and it created staffing problems nationwide. The rate of wage inequality is improving due to legislation that has created a pay increase in participating cities across the United States. The airline industry is viewed has being unstable because it is based on current market conditions, and the market is always changing. purpose for travel, and available substitutes. Externalities continue to influence the elasticity of demand. The Elasticity of Demand The airline industry is an extremely unstable industry because it is highly dependant upon current market conditions. Events such as inflation, terrorist attacks, and the price of oil have greatly influenced the demand for airline tickets throughout the years. Competition consistently affects the price of airline tickets because it gives the customer other options. Substitutes that are existence is traveling by train, car, or avoiding travel whenever possible. Customers have resorted to all named substitutes during turbulent times in our economy. The elasticity of demand is greatly affected by the customers purpose for travel. Airline customers typically fly for business or pleasure. With the wave of technology, a large percentage of business travel has been eliminated to conserve spending. Elasticity In the airline industry, price elasticity of demand is separated into two segments of consumers and is considered to be both elastic and inelastic. A good example of how elastic demand is related to the airline industry is in relation to travel for pleasure. Pleasure travellers will be affected by the amount of travel they do based on the demand increase or decrease, affected by prices that lower with high demand or prices that rise with low demand; directly attributed to competition in this market (Gerardi Shapiro, 2007). Inversely, the business traveller would apply to an inelastic demand for this market. This has shown by demand increases or decreases, as well as the price distribution attributed, which has little effect on the buying power of the business person (Gerardi Shapiro, 2007). Furthermore, Voorhees and Coppett (1981) explain that elastic demands exist for the pleasure traveler due to demand increase rising while prices lower and vise versa. The business traveler exper iences an inelastic demand due to the quantity of service demanded and quantity has not decreased as prices have risen. In other words, this travel is seen as a necessary business tool, not affected by price changes in the demand curve. As we have seen, the airline industry is extremely price elastic. Small shifts in prices have dramatic effects on the consumer base. Externalities, such as noise ordinances, can cause negative effects, driving cost upward and threatening loss in demand due to a price sensitive customer base. Since deregulation, competition in the economy have kept prices in the industry low and have caused airlines to force cuts in areas such as wages; contributing to a growing concern of wage inequality. Refrences: Gerardi, K., Shapiro, A. (2007, April). The Effects of Competition on Price Dispersion in the Airline Industry: A Panel Analysis. Working Paper Series (Federal Reserve Bank of Boston), 7(7), 1-46. Retrieved April 30, 2008, from Business Source Complete database. Mankiw, N. G. (2004). Principles of economics (3rd ed.). Chicago, IL: Thomson South-Western. Morrison, S., Watson, T., Winston, C. (1998). Fundamental Flaws of Social Regulation: The Case of Airplane Noise. Retrieved May 8, 2008, from http://www.brookings.edu/~/media/Files/rc/papers/1998/09_airplane_winston/09_airplane_winston.pdf Voorhees, R., Coppett, J. (1981, Summer). New Competition for the Airlines. Transportation Journal, 20(4), 78-85. Retrieved April 30, 2008, from Academic Search Premier database. The airline industry is a private good. Mankiw (2004), states that private goods are excludable and rival goods. One needs to see through the anti-trust laws and regulations that tempt some to call the industry a natural monopoly; airlines still reserve the right to administer price and destination. The airline industry shows that it is an excludable good by having the power to place prices on fares and having the ability to refuse service to any person for whatever the reason. The airline industry also shows that it is a rival good because when someone purchases fare for a seat, it diminishes the ability for another person to get a seat on the plane. Because the airline industry is a private good, in a competitive market place, prices, supply, and demand are very sensitive to new policies or tax incidences placed on them. Associated content.com viewd 18/11/10 WordPress.comThis phenomenal increase in the demand for domestic air travel is not surprising. Airfare is an expensive commodity that few people can afford or are willing to pay for it. Also, a typical consumer may not be able to avail such commodity regularly. It takes time for the consumer to demand for it again. In economics, this scenario is being explained by its ELASTICITY. The concept of elasticity is being referred as the responsiveness of the quantity demanded of a good or service to a change in its price, income, or cross price. This post will provide a better understanding on this matter, specifically the price elasticity. Analysis Below consists of indicators that determines the elasticity of a good/service. Domestic air travel has been employed as a sample commodity. Substitutes. (The more substitutes it has, the higher the elasticity.) Airlines have numerous substitutes such as land or sea transportation. Percentage of Income. (The higher the percentage that the products price is of the consumers income, the higher the elasticity.) Airfares are too expensive relative to household income. Necessity. (Basic goods have lower elasticity.) Airline tickets are luxury goods. Duration. (The longer a price change holds, the higher the elasticity.) Airline fare does not change for a long time. Breadth of Definition. (The broader the definition, the lower the elasticity.) Domestic airline travel has more specific definition than ordinary air transportation. 1. Introduction The purpose of this study is to report on all or most of the economics and business literature dealing with empirically estimated demand functions for air travel and to collect a range of fare elasticity measures for air travel and provide some judgment as to which elasticity values would be more representative of the true values to be found in different markets in Canada. While existing studies may include the leisure business class split, other important market distinctions are often omitted, likely as a result of data availability and quality.[3] One of the principal value added features of this research and what distinguishes it from other surveys, is that we develop a meta-analysis that not only provides measures of dispersion but also recognizes the quality of demand estimates based on a number of selected study characteristics. In particular, we develop a means of scoring features of the studies such as focus on length of haul; business versus leisure; international versus domestic; the inclusion of income and inter-modal effects; the age of the study; data type (time-series versus cross section) and the statistical quality of estimates (adjusted R-squared values). By scoring the studies in this way, policy makers are provided with a sharper focus to aid in judging the relevance of various estimated elasticity values.[4] 2. Elasticity in the Context of Air Travel Demand. Elasticity values in economic analysis provide a units free measure of the sensitivity of one variable to another, given some pre-specified functional relationship. The most commonly utilized elasticity concept is that of own-price elasticity of demand. In economics, consumer choice theory starts with axioms of preferences over goods that translate into utility values. These utility functions define choices that generate demand functions from which price elasticity values can be derived. Own-price elasticity of demand concept airtrav_2e.gif (1,979 bytes) Therefore elasticities are summary measures of peoples preferences reflecting sensitivity to relative price levels and changes in a resource-constrained environment. The ordinary or Marshallian demand function is derived from consumers who are postulated to maximize utility subject to a budget constraint. As a goods price changes, the consumers real income (which can be used to consume all goods in the choice set) changes. In addition the goods price relative to other goods changes. The changes in consumption brought about by these effects following a price change are called income and substitution effects respectively. Thus, elasticity values derived from the ordinary demand function include both income and substitution effects.[5] Own-price elasticity of demand measures the percentage change in the quantity demanded of a good (or service) resulting from a given percentage change in the goods own-price, holding all other independent variables (income, prices of related goods etc.) fixed. The ratio of percentage changes thus allows for comparisons between the price sensitivity of demand for products that might be measured in different units (natural gas and electricity for example). Arc price elasticity of demand calculates the ratio of percentage change in quantity demanded to percentage change in price using two observations on price and quantity demanded. Formally this can be expressed as: Equation(1) where: Equationrepresent the observed change in quantity demanded and price Equationrepresent the average price and quantity demanded. The elasticity is unitless and can be interpreted as an index of demand sensitivity; it is measuring the degree to which a variable of interest will change (passenger traffic in our case) as some policy or strategic variable changes (total fare including any added fees or taxes in our case). In the limit (when Equationare very small) we obtain the point own-price elasticity of demand expressed as: Equation(2) where: Q(P,S) is the demand function P = a vector of all relevant prices p = the goods own-price. q = equals the quantity demanded of the good S = a vector of all relevant shift variables other than prices (real income, demographic characteristics etc.) We expect own-price demand elasticity values to be negative, given the inverse relationship between price and quantity demanded implied by the law of demand, with absolute values less than unity indicating inelastic demand: a less than proportionate response to price changes (relative price insensitivity). Similarly, absolute values exceeding unity indicate elastic or more sensitive demand: a more than proportionate demand response to price changes (relative price sensitivity). The ratio of change in quantity demanded to change in price [equation (1)] highlights that elasticity measures involve linear approximations of the slope of a demand function. However, since elasticity is measuring proportionate change, elasticity values will change along almost all demand functions, including linear demand curves.[6] Estimation of elasticity values is therefore most useful for predicting demand responses in the vicinity of the observed price changes. As a related issue, analysts need to recognize that in markets where price discrimination is possible aggregate data will not allow for accurate predictions of demand responses in the relevant market segments. In air travel, flights by a carrier are essentially joint products consisting of differentiated service bundles that are identified by fare classes. However the yield management systems employed by full-service carriers (FSCs) also create a complex form of inter-temporal price discrimination, in which some fares ( typically economy class) decline and some increase (typically full-fare business class) as the departure date draws closer. This implies that ideally, empirical studies of air travel demand should separate business and leisure travellers or at least be able to include some information on booking times in order to account for this price discrimination, and that price data should be calibrated for inter-temporal price discrimination: for example, the use of full-fare economy class ticket prices as data will overestimate the absolute value of the price elasticity coefficient. Within the set of differentiated service bundles that comprise each (joint product) flight, the relative prices are important in explaining the relative ease of substitution between service classes. Given the nature of inter-temporal price discrimination for flights, the relative price could also change significantly in the time period prior to a departure time. The partial derivative in (2) indicates that elasticity measures price sensitivity independent of all the other variables in the demand function. However when estimating demand systems over time, one can expect that some important shift variables will not be constant. It is important that these shift variables be explicitly recognized and incorporated into the analysis, as they will affect the value of elasticity estimates. This will also be true with some cross-sectional studies or panels.[7] In particular changes in real income and the prices of substitutes or complements will affect demand. In air travel demand estimations, income and prices of other relevant goods should be included in the estimation equation. Alternative transportation modes (road and rail) are important variables for short-haul flights, while income effects should be measured for both short and long-haul. The absence of an income coefficient in empirical demand studies will result in own-price elasticity estima tes that can be biased. With no income coefficient, observed price and quantity pairs will not distinguish between movements along the demand curve and shifts of the demand curve.[8] The slope of a demand function, which affects the own-price elasticity of demand, is generally expected to decrease (become shallower) with: The number of available substitutes; The degree of competition in the market or industry; The ease with which consumers can search and compare prices; The homogeneity of the product; The duration of the time period analyzed.[9] Given the implied relationships above, any empirical demand study should carefully define market boundaries to include all relevant substitutes and complements and to exclude products that might be related through income or other more general variables. In air travel, ideally market segment boundaries should be defined by first separating leisure and business passengers and second long-haul and short-haul flights. The reason is that we expect different behaviour in each of these markets. Within each of these categories, distinctions should then be made between the following: Connecting and origin-destination (O-D) travel; Hub and non-hub airports;[10] Routes with dominant airlines and routes with low-cost carrier competition. In addition, for the North American context, long-haul flights should be further divided into international and domestic travel (within continental North America). These market segment boundaries are illustrated in figure 2.1 below, which also highlights the relative importance of intermodal competition for short-haul travel. While distinctions in price and income sensitivity of demand between business and leisure or long and short-haul travel are more intuitive, other distinctions are perhaps less obvious. If available, data that distinguishes between routes, airlines and airports would provide important estimates of how price sensitivity is related to the number of competing flights and the willingness to pay of passengers utilizing a hub-and-spoke network, relative to those traveling point-to-point, more commonly associated with low cost carriers. To the extent that existing studies assume that each passenger observation represents O-D travel, they will not be capturing fare premiums usually associated with hub-and-spoke networks and full service carriers, nor will they necessarily capture the complete itinerary of travellers utilizing a number of point-to-point flights with a low cost carrier. For example, a passenger who travels from Moncton to Vancouver with Air Canada, and utilizes the hub at Pears on International airport, is being provided with a number of services that includes baggage checked through to the final destination and frequent flyer points as well as a choice in flights and added flight and ground amenities. The fare for Moncton-Vancouver includes a premium for these services. Now consider a passenger that is travelling with WestJet from Moncton to Hamilton, and then with JetsGo from Toronto Pearson Airport to Vancouver. In this case there are no frequent flyer points to be attained and baggage has to be collected and re-checked after a road transfer between Hamilton and Pearson International. Although the origin and destination is the same for these passengers, the itineraries are significantly different. In many cases data used for demand estimates would not able to account for these differences. Route-specific data can also capture competition that may exist between airports and the services they offer as well as airlines. This may be especially true for certain short-haul routes where intermodal competition (road and rail) can play an important role in shaping air travel demand. 3. Measurement Issues Oum et al. (1992) provide a valuable list of pitfalls that occur when demand models are estimated and therefore affect the interpretation of the elasticity estimates from these empirical studies. 1. Price and Service Attributes of Substitutes: Air travel demand can be affected by changes in the prices and service quality of other modes. For short-haul routes (markets) the relative price and service attributes of auto and train would need to be included in any model; particularly for short-haul markets. Failure to include the price and service attributes of substitutes will bias the elasticity. For example, if airfares increase and auto costs are also increasing, the airfare elasticity would be overestimated if auto costs were excluded. 2. Functional Forms: Most studies of air travel demand use a linear or log-linear functional specification. Elasticity estimates can vary widely depending on the functional form. The choice of functional form should be selected on the basis of statistical testing not ease of interpretation. 3. Cross-Section vs. Time-series Information: In the long run demand elasticities for non-durable goods and services are larger in absolute terms, than in the short run. This follows because in the long run there are many more substitution possibilities that can be used to avoid price increases or service quality decreases. In effect there are more opportunities to avoid these changes with substitution possibilities. Data tends to be cross-sectional or time-series although more recently panels have become available. A panel is a combination of cross-section and time-series information on several routes for a multi-year period is a panel. Cross-sectional information is generally regarded as indicating short run elasticities while time-series data is interpreted as long run elasticities. In time-series data the information reflects changes in markets, growth in income, changes in competitive circumstances, for example. Policy changes should rely on long run elasticities since these ar e long run impacts that are being modelled. Short run elasticities become important when considering the competitive position of firms in a highly dynamic and competitive industry. 4. Market Aggregation/Segmentation: As the level of aggregation increases the amount of variation in the elasticity estimates decreases. This occurs because aggregation averages out some of the underlying variation relating to specific contexts. Since air travel market segments may differ significantly in character, competition and dominance of trip purpose, interpreting a reduction in variation through aggregation as a good thing would be erroneous. Such estimates might have relatively low standard deviations but would be also be relatively inaccurate when used to assess the effect of changes in fares in a specific market. 5. Identification Problem: In most cases only demand functions are estimated in attempts to measure the demand elasticity of interest. However, it is well known that the demand function is part of a simultaneous equations system consisting of both supply and demand functions. Therefore, a straightforward estimation of only the demand equation will produce biased and inconsistent estimates. The problem of identification can be illustrated by describing the process by which fares and travel, for example, are determined in the origin-destination market simultaneously. To model this process in its entirety, we must develop a quantitative estimate of both the demand and supply functions in a system. If, in the past, the supply curve has been shifting due to changes in production and cost conditions for example, while the demand curve has remained fixed, the resultant intersection points will trace out the demand function. On the contrary, if the demand curve has shifted due to changes in personal income, while the supply curve has remained the same, the intersection points will trace out the supply curve. The most likely outcome, however, is movement of both curves yielding a pattern of fare, quantity intersection points from which it will be difficult, without further information, to distinguish the demand curve from the supply curve or estimate the parameters of either.[11] Earlier we identified sources of bias that can arise from problems with aggregation, data quality, implicit assumptions of strong separability among others. Almost all demand studies have an implied assumption of strong separability in that they only consider aviation markets in the analysis. Such studies in effect constrain all changes or responses in fares or service to be wholly contained in the aviation component of peoples consumption bundle. The paper by Oum and Gillen (1986) is the one exception where consideration of substitution with other parts of consumption was included in the modelling. It would be difficult to extract a conclusion from this one study as to existence, degree and direction of bias in elasticity estimates when other parts of consumption are and are not included in the modelling. However, having said this, an inspection of the elasticity estimates from this study shows they are not significantly different than other time-series estimates. 3.1 Data Issues Elasticity estimates depend critically on the quality and extent of the data available. Currently, the best data for demand estimation is the DB1A 10 percent ticket sample in the US, but even this data has some problems.[12] The DB1A sample represents 10 percent of all tickets sold with full itinerary identified by the coupons attached to the ticket. However with electronic tickets, as more and more tickets are being sold over the Internet, there is a growing portion of overall travel that may not be captured in the sample. This means that the proportion is not 10 percent but something less.[13] Other important considerations are the amount of travel on frequent flyer points, by crew and airline personnel. In Canada we have poor quality data because it is incomplete, even if it were accessible. Airports collect traffic statistics but these data make it very difficult to distinguish OD and segment data. Airlines report traffic data to Statistics Canada (or are supposed to) but these data do not include fare information or routing. Knowing the itinerary or routing is important because of differences in service quality and hubbing effects. Fare data is also more useful than yield information since it identifies the proportion of people travelling in different fare classes. Yet, in many cases yield information is used as a weighted average fare. There is also the problem that carriers of different size may have different reporting requirements. Some researchers and consultants have been cobbling together data sets for analysis by using the PBX clearing house information. These data are limited and apply only to those airlines that are members of IATA.[14] The current public data available in Canada simply does not permit estimation of any demand models. Besides demand side data it is also important to have supply side information. Elasticity estimates should emerge from a simultaneous equations framework. This data is more accessible through organizations like the OAG[15], which provide information on capacity, airline and aircraft type for each flight in each market.[16] These data measure changes in capacity, flight frequency and timing of flights. One study, which undertook an extensive survey to collect multimodal data,[17] was the High Speed Rail study sponsored jointly by the Federal, Ontario and Quebec governments. This study, which had three different demand modelling efforts, examined the potential for High Speed Rail demand, and subsequent investment, in the Windsor-Quebec corridor. The analysis included intermodal substitution between air, rail, bus and car. The study was undertaken in the early 1980s. However, it is not possible for public access to any of the technical documents that would allow an assessment of the study. Attempts in the past to obtain access to the data have proven fruitless. 3.2 Distinguishing Elasticity Measures As we have stated, price elasticity measures the degree of responsiveness to a change in own or other prices (fares). However, care must be exercised in interpreting the elasticity since they differ according to how they have been estimated. Many empirical studies of air travel demand estimate a log-linear model. In evaluating such studies, it is important to keep in mind that the empirical specification implies a certain consumer preference structure because of the duality between utility functions and demand functions. It is equally important to remember that empirically estimated demand functions should contain some measures of quality and service differences or quality changes over time. Failure to include metrics for frequent flyer programs, flight frequency, destination choice or service levels in estimating an air demand function can lead to downward bias in the price elasticity estimates. Price elasticities can be estimated for aggregate travel demand as well as modal demand. Figure 3.1 illustrates the differences between aggregate and modal elasticities.[18] Our interest is in modal elasticities not the aggregate amo

Challenges ASEAN Will Face In Establishing A Community

Challenges ASEAN Will Face In Establishing A Community ASEAN nations have signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN community by 2015 on the 12th ASEAN Summit in Cebu. This ASEAN community comprises of 3 main pillars, the ASEAN economic community, ASEAN political security community and ASEAN socio-cultural community. It is aimed at being a concert of Southeast Asian nations, displaying the outward looking nations that are living in peace, stability and prosperity as a whole region which is bonded strongly together in a dynamic and wide development and in a community of caring societies. However, it seems that due to the many differences between the countries, there would be many challenges in fulfilling its 2015 vision of establishing an ASEAN community by 2015. Background of ASEAN ASEAN was established on 8th of August 1967 when the Bangkok declaration was signed by Philippines, Thailand, Malaysia , Singapore and Indonesia. Brunei Darussalam joined the ASEAN community on January 1984 and Myanmar joined in 1997. Vietnam, Laos and Cambodia became members in 1995, 1997 and 2004 respectively. ASEAN was established to strengthen self-reliance and regional cohesion, while emphasizing social, cultural and economic cooperation and developmentà £Ã¢â€š ¬Ã¢â‚¬Å¡Another reason why ASEAN was formed was because back then, countries like China were getting too powerful and the only way the smaller countries could prosper was to group together. Thus, ASEAN was established. Now the main purpose of ASEAN is to help its members increase its economic growth and social development, and to establish peace between the ASEAN countries. Map of ASEAN countries Overview of challenges In this project we will study the ASEAN community and their commitment towards their goals, the problems they might face, and find the possible impact of it. The security and religious issues continue to be a barrier for ASEAN, with the many ethno-religious movements that will likely affect the coherence and stability within a nation and possibly ASEAN as a whole. The issue of more transparent boundaries that will be established will also cause the security to be less tight and will affect the peace of all. The different rate of economic development between the ASEAN nations is a huge challenge for ASEAN members in establishing a stable ASEAN economic community as the economy is a very important area and it will affect everyone in the ASEAN community. The differences in political systems of ASEAN members also poses a challenge as it would be difficult for so many different countries to work together cohesively with the nations operating differently. Challenge 1:Religious and security issues One of ASEANs greatest challenges in creating an ASEAN community is the security issues caused by ethno-religious movements and the more transparent boundaries that might greatly disrupt the peaceful coexistence that the ASEAN nations have tried established with one another. The ASEAN community will create more transparent boundaries so that it is more accessible for the people but that will also lead into a security that is not that tight and making it more unsafe for the people. The ASEAN countries remain vulnerable to threats from ethno-religious movements of the people who are hungry for self-governance. Ethno-religious movements have been a huge block for ASEAN in establishing a fully fledged ASEAN Community as there would be issues arising regarding the coherence of the country or the entire region. Southeast Asia has housed Islamic militant groups for the past few decades. After the World War II, Southeast Asian countries mostly became independent as the colonial powers that once ruled then departed. The countries were governed by undemocratic and brutal governments and affected the Muslim identities and values. This stirred up a sense of antagonism and animosity towards their various central governments, causing a great impact on the stability and security of ASEAN as a whole. Take for example, the Abu Sayyaf and Moro Islamic Liberation Front, both guerrilla organisations in the Philippines, are using political violence in attempt to pursue an autonomous Islamic state in Mindanao in the midst of the mostly Christian country and is said to have links to Malaysian and Indonesian jihadist forces. They have kidnapped foreign tourists from Malaysia, bombed a Philippines Airlines plane, assassinated and kidnapped priests and businessmen. Abu Sayyaf is said to have received arms and munitions from Afghanistan. It aims to evict Christians. As stated in the 2003 Declaration of Asean Concord II, Asean shall urgently and effectively address the challenge of translating Asean cultural diversities and different economic levels into equitable development opportunity and prosperity, in an environment of solidarity, regional resilience and harmony. Also, as ASEAN builds up its ASEAN Community, it also makes boundaries between the countries more transparent and this will result in a simpler way for terrorists groups to gather more members with the same beliefs as there is a larger number of people and the influence coming from so many areas will cause one to be daring enough to stand up for what they think that it is unfair to them as there are others backing them. This also makes it easier for terrorists movements to move about within the region as there is a widespread of members throughout the whole ASEAN and resources will be easier to get and access resources within the region. Even though ASEAN recognises that the region is divided into many ethno-cultural groups, efforts can only be taken to try to preserve the diversity in cultural heritage and to promote regional identity and it will be very challenging for ASEAN to overcome such issues to achieve a harmonious community. Along with the issue of more transparent borders, ASEAN can try their best to understand and accommodate the different religions and the reasons being such movement, however, ASEAN must also remember that even though the boundaries are more transparent, security must always remain tight and must always be alert and looking out for terrorist threats that will be constantly heading towards every country. Challenge 2: Differences in each countries development rates Different rates of development between ASEAN countries makes it difficult for all of them to work together cohesively on the large scale. Many ASEAN countries have widely different economic states, making fulfilling the goal of establishing the ASEAN community by 2015 rather challenging. GDP per capita of ASEAN countries as of 2005 in USD One example of counties with vastly and Cambodia. Although Cambodia is more than 250 times the size of Singapore and has 30 times the population, Singapore has a much better economy. In Cambodia, as of 2004, the percentage of the population below poverty line is a whopping 31%, while comparatively, in Singapore, the amount of citizens below poverty line is almost 0%. The currency and GDP per capita of Singapore is also much higher than that of Cambodia, at 1.4 per USD and $50,300 compared to 4221 per USD and $1,900 respectively. Singapore also has a lot of well developed infrastructure while Cambodia has barely any infrastructure in the rural areas. With the huge differences in these statistics, it is easy to tell that the Singapore economy is doing much better than the Cambodia economy. Another pair of countries with different development rates is Cambodia and Thailand, these two countries are right next to each other and both are relatively unstable. Both countries have gone through many economic and political troubles, but the economic situation in Thailand has generally been better than that in Cambodia, and the GDP of Thailand has constantly remained above that of Cambodia. In the countryside, Cambodia does not really have even the more basic infrastructure and the majority of Cambodias population is in fact younger than 21 years old and many of these youths lack the skill and education required to help push forward Cambodias economy. While on the other hand, Thailand has relatively well developed infrastructure and the countries people generally better educated. The GDP per capita of Thailand and Cambodia as of 2009 was $8,100 and $1,900 respectively. Although Thailand has slightly over four times the population of Cambodia, it has around twenty times the GDP. The death rate and infant mortality rate is also higher in Cambodia, and the life expectancy in Thailand is 73 years while in Cambodia it is 62 years. All these information shows that Thailand is a more economically developed country than Cambodia. All these information shows that the countries in ASEAN all have vastly different economic development rates, this would pose a problem when attempting to fulfil the 2015 vision. Statistics on ASEAN countries Challenge 3: differences in each countries political system Differences in government systems between ASEAN countries make it rather difficult for the countries to cooperate, as actions taken by different countries to tackle a similar issue may vary and there might be conflicts between the countries. The type of government greatly affects the domestic stability of a country and many other aspects, such as the economy, security and welfare of the citizens. Differences in government system in ASEAN can be seen through the case study of Myanmar and Thailand. Myanmar has a military government, in which military officers took up the majority of the ministries and cabinet posts which control the country. Though major political parties, such as the National League for Democracy and the Shan Nationalities league for Democracy and parties representing other ethnic groups are present in the country, their activities are greatly suppressed and controlled by the military government. Little room is given for the political organisations while many parties and underground student organisations are prohibited by the military. Despite pressure from ASEAN nations to release all the political prisoners and the request for greater progress towards democracy and a harmonious country, human rights in Myanmar remained poor. ASEAN nations had failed to come to an agreement on Myanmars lack of political reform during the 12th ASEAN summit, as each country has their own opinions and concerns. While some countries do not wish to interfere with Myanmars internal issues, others regard democracy and human rights issues as a possible obstacle for ASEAN to be integrated in terms of politics, which is part of the 2015 vision. Furthermore, Myanmar ranks 178 positions out of 180 countries for the level of corruption in the country, according to the Corruption Perceptions Index. This also affects the militarys efficiency and their practice of good governance in the country. On the other hand, Thailand is under a constitutional monarchy government, led by a king, a Prime Minister and has a parliamentary democratic system with multiple political parties. In Thailand,their King is more of a symbol of national identity and unity rather than having direct power under Thailands constitution. Thailand was similar to Myanmar in the way that Thailand was under the rule of a succession of military leaders with relatively weak democratic system. In the recent years, Thailands political landscape has been constantly plagued with issues such as persisting and significant difference between the urban and rural political orientation and focus, and democratically elected leaders abusing their power and their conflict of interest. Currently, the ongoing political unrest in Thailand began due to a coup dà ©tat staged by the military in 2006 that overthrown Thaksin, the former Prime Minister, for corruption and abuse of power. Thaksin supporters, who are mostly working class constituency and people from poor rural areas, accuse Thailands urban elites for coordinating the coup. These poorer citizens liked his ideas of more affordable medical care and debt relief, which can greatly improve their living standard. This is one of the key reasons for the overwhelming support from the red-shirt protestors even when he was on self-imposed exile. Not only was Thailands national economy crippled by its political instability. Thaksins supporters had disrupted the 14th ASEAN summit that was held in Thailand last year, and brought embarrassment to the ASEAN community. All of these issues makes it difficult for the ASEAN countries to work together, and much things need to be done to dampen these problems. Conclusion ASEAN countries face quite a number of challenges towards achieving their goal of setting up an ASEAN community as there are always some problems in cooperation faced by the member countries. Security issues, political and government issues make it hard for countries to cooperate together to form the community. These problems faced will not allow the member countries to make decisions and agree with one another easily. To fulfil its dream of the 2015 ASEAN community, ASEAN has to put in much effort into rectifying these problems, even though much has already been done towards establishing the ASEAN community.

One Day Ill Meet Someone :: Personal Narrative Writing

All right. I'm bitter. I seem to always be in this state lately, but never more so than after the weekend I've just had. I spent about half a year thinking that I was in love with one of my closest friends, and in the space of about ten minutes he completely obliterated any respect I had for him, while destroying my own self-image in the process. So I've been friends with this guy for about four years now, and we've been pretty decent friends for most of that time. But in the past year or so, we have gotten much closer. About six months ago, I suddenly had the revelation that I was in love with him. And it was perfect, I thought, because we were so close, and I respected him so much, and we got along so well together, blah blah blah. It didn't matter that he is kinda fat, or not very good looking, or that he has no sense of humor, or that most of my friends don't like him. All that mattered was I knew that deep down he is a good person with a good heart, not to mention smart, honest, and responsible, all qualities I admire in a man. Not to mention the fact that I totally believe that friendships make a good foundation for a relationship, and that my ex-boyfriend was and is still one of my closest friends. So my feelings for this guy grew stronger while getting to know him better over the past year. Although none of my friends thought he was good enough for me (even the ones who are also friends with him), I would defend him, even when he was rude or acted like a jerk, because I knew he really was a good person at heart. Finally, after many months of not getting any response from him and wondering if I should tell him how I felt, I decided it was time to get over him. I was sick of waiting for him to wake up and see me, and I was too scared to say anything about how I felt. I went out with another guy, but it didn't work out and then I realized that I was never going to let go of him until I had some sort of closure, however lame that sounds. Late one night after a disastrous date, I saw him online and IM'ed him.

Abusive Relationships and Domestic Violence :: Violence Against Women Essays

Domestic violence describes a situation where one person in a relationship is using violence to control and dominate another person. Domestic violence victims and their batterers cut across all socioeconomic, demographic, and professional lines. It is an epidemic that is emphasized particularly with the female gender. While physical assault is often times the most common form of abuse, it is important to acknowledge that other forms of abuse are just as detrimental. Often times, fear and isolation are particularly powerful in preventing women from leaving a violent relationship.   Ã‚  Ã‚  Ã‚  Ã‚  Domestic violence is a common crime in America, especially amongst the female gender. Studies indicate that nearly one-third of American women (31 percent) report being physically or intimately abused by a husband or boyfriend at some point in their lives (Commonwealth Fund Survey, 1998). Domestic Violence towards women is a problem in the United States that is usually over looked and almost always not noticed by Society today. Violence is defined by the Riverside Webster's Dictionary (p.755) as: 1. Physical force employed so as to damage or injure. 2. As an instance of violent action. If this is the case than why is it that so many women are beaten by loved ones each year and little or nothing is done to correct this violent and hostile situation?   Ã‚  Ã‚  Ã‚  Ã‚  The battered woman is pictured by most people as a small, fragile, haggard person who might once have been pretty. She has several small children and is frequently assumed that she is poor and from a minority group. She is accustomed to living in violence, and her fearfulness and passivity are emphasized above all. Although some battered women do fit this description, research proves it to be false stereotype(Walker p.18). In fact most battered women have highly lucrative jobs such as doctors or lawyers, Corporation executives and nurses. Battered women are found in all racial, religious and ethical backgrounds as well as age groups and educational levels.   Ã‚  Ã‚  Ã‚  Ã‚  Statistical information on domestic abuse commonly notates that women in intimate relationships are amongst the greatest risk. Statistics also revealed that domestic abuse is the leading cause of harm amongst females of all races that usually involve a weapon. "Approximately one in four attacks involved the use of a gun or knife,† according to a studies. Young, black and Hispanic women were especially vulnerable, as were poor single women with low education levels who lived in inner cities.

The Glass Industry in India

The glass industry in India. The modern Indian glass industry is around 100 years old. In the first half of the last century the industry was rather primitive, melting the glass in pot furnaces and small tank furnaces that were fuelled by either coal or gas–although some furnaces at the coastal cities used furnace oil. From the early 1950s the glass industry started manufacturing using modern equipment, both for melting and production. Collaboration with multinational companies gave a boost to the industry.It was in the lost decade of the twentieth century that the Indian glass industry started to seriously compete globally, installing improved furnaces to conserve energy and therefore reduce the cost of production. The cheaper availability of natural gas in some parts of the country also enabled the industry to reduce energy costs to some extent, and the flat glass industry upgraded to the float process. India now has four float glass plants, although there are still a few sh eet glass manufacturing units in operation using both the Fourcault and PPG processes.The manufacture of figured glass is well established in India. Container glass production has benefited from the addition of higher capacity manufacturing units during the past decade, and this part of the industry is doing fairly well. The flask linings sector has earned a niche in the export market, as well as meeting the domestic requirement. The manufacture of glass bangles has moved to the semi automatic process and India has its own technology in the bangle and glass bead sector. Research is currently being undertaken for the technological improvement of the finishing process.There has been a quantum leap in glass fibre manufacture with new multinational entrants and a substantial growth in exports. The tableware industry was badly hit with imports and is slowly recovering, acquiring modern equipment to upgrade the sector. There is potential for foreign collaboration here. Ophthalmic glass is still being imported into India and there is scope for putting modern manufacturing units in place. The industry is progressing steadily and will hopefully reach global standards in the weaker sectors as well as in those that are currently strong.Indian glass industry overview. http://www. allbusiness. com/nonmetallic-mineral/glass-glass-manufacturing/85938 9-1. html Date: Tuesday, November 1 2005 At the 61st annual session of the All India Glass Manufacturers' Federation, held in New Delhi last September, retiring President, Sanjay Somany reviewed key issues facing the local glass industry, in the presence of Dr Ajay Dua, Secretary (IPP), Ministry of Commerce and Industries, Government of India. A summary of Sanjay Somany's presentation is given below, together with details of the federation's newly elected officers.Despite the uncertainties associated with two consecutive coalition governments, the Indian economy has undergone rapid and all-encompassing change, clearly indicating the strengths of Indian democracy. Economic policy changes have eased out Indian enterprise from governmental control towards globalisation of the economy. These measures have borne fruit and the economy is on a steady progressive path. In spite of petroleum price hikes, inflation is under control and the national economy is expected to grow by around 7%.The balance of payments continues to be favourable and India has comfortable foreign exchange reserves. Promoting the industry Since its inception in 1944, the All India Glass Manufacturers' Federation has been promoting the cause of all segments of the local glass industry. Sustained efforts are being made by members of the federation to promote the industry's growth and development. Diversified capabilities The Indian glass industry has a rich history. From mouth blown and hand working processes, it has taken to automation in a big way, although traditional manufacturing processes have not been abandoned.Mouth blown and handcraft ed glassware have a dominant role in decorative and table glassware, products which are exported in large quantities. The majority of raw materials required by the industry are available locally, providing excellent scope for growth and development. Flat glass Despite the closure of certain sheet glass manufacturing units, total flat glass production has increased via the establishment of new float lines. There has been an increase in demand for float glass as a result of increased investment from the construction and automotive sectors.Float glass manufacturers are gearing up to meet this demand and are planning to increase their installed capacities. Containers Glass container production has more than doubled from approximately 800,000 tonnes in 1997-98 to some 1. 7 million tonnes in 2004-05. This is despite the stiff competition faced from alternative packaging materials. Production levels increased by 5% in the last 12 months, emphasising the continued importance of the material as a preferred packing material in view of its transparency, chemical inertness, impermeability and ability to maintain the optimum freshness of its contents.Tableware The massive surge of imports, especially from China, continues to impact the local glass tableware industry, with large quantities of opal and crystal ware being dumped in the market. The price at which these items are being sold shows that either all or most goods have reached the market by avoiding customs duty payments. This has resulted in the underutilisation of installed capacity and is adversely affecting the profitability of local manufacturers. ExportsDramatically increased Levels of glass and glassware exports have been recorded in recent years, from US$35 million in 1993-94 to US$200 million in 2002-03 and US$227 million in 2003-04 (all figures ore approximate currency conversions : Ed). In the last 12 months, increasing production costs have slowed the rate of growth, however, to a level of US$234 million . Products to achieve strong export growth in 2004-05 were glass fibre, ophthalmic Lenses, glass lampware, containers, bangles, table/ kitchenware, mirrors, glass beads and false pearls.Export shortfalls were recorded for vacuum flasks and refills, unworked sheet glass, VIALS, float glass and scientific glassware. New AIGMF officers Elected to replace Sanjay Somany as President of the AIGMF for the current term of office is PK Kheruka, Vice Chairman and Managing Director of Borosil Glassworks Ltd, Mumbai. His successor as Senior Vice President is Satish Kumar Jhunjhunwala of Shree Gobinddeo Glass Works Ltd, Kolkata. Newly elected to the role of Vice President is Mukul Somany from Hindusthan National Glass ; Industries Ltd. Honorary General Secretary is SC Bansat

How the Bible Shows God as Creator Essay

The Bible has many different ways of showing God as the creator of the universe. Many people use the Bible to reflect on what God did for them, so that they are able to live as they do now. The Judaeo-Christian belief is that everything has been created; therefore there must have been a creator. They believe that this creator is God. Before there was anything there was God. God is self existent and eternal, He never began and He will never end. God is the creator so therefore has never been created. He was able to make everything from ex nihilo instead of actual matter. The book of Hebrews agrees with this, ‘†¦ we understand that the universe was formed at Gods command, so that what is seen is not made out of what is visible. ‘ Also because He is creator†¦ or just a period of time, but when He created time he gave everything a definite beginning according to His will. When God was creating the different parts of the world, He says ‘let there be†¦ ‘ and there is. This shows God as creator because all He has to do is to want something to be in a particular shape and format and it is. God took control over every single thing he made and moulded it into what He wanted it to be like. When He finished creating something ‘he was pleased,’ showing that everything He made was perfect. He dominates the beginning of the Bible with all the things that He has made himself. No one else comes into the book for some time because it is all about God, showing his dominance. The story does talk of the creation but in nearly every sentence it talks of how God created or God said or saw, it focuses on God as the creator. The second creation story is that of Adam and Eve. God makes a man from dust and breathes his own breath into him. Later on He creates a woman from one of Adam’s ribs and they are each others true companions. This story shows God as creator because it is showing God creating humans in His own image; they are separate from animals because of God breathing His own breath into Adams body. This gives our lives more meaning and purpose, God wants to live closely to humans and wants people to know about Him and live with the creator’s concerns in mind. God is responsible for everything in the universe. ‘ Discuss. Many Christians would agree that God is responsible for everything because He made our world. He purposely chose to make everything the way it is today for a reason, so if He is the one who made it all therefore it should be God who takes the responsibility of the universe. You could argue that because God made everything and He made it so that it was supposed to be perfect, then how can he allow natural disasters and disease to occur. God is omniscient, therefore everything that is happening in our world, God has chosen that to happen, everything is there for a particular reason. When God crested the world He gave us free will but He still created it, so in a way we think we have our own free will but because God is omniscient then He has already chosen what will happen to us. Human beings could be seen as God’s robots, doing what we have been programmed to do. We have a responsibility to do good whilst we are on the earth because that has been programmed into us through God when He first created Adam and Eve. However other Christians may disagree that God is responsible for everything because humans are the ones who actually live on the earth, whereas God is not actually part of this world. Human beings were given the breath of God when He created the first man and this has been passed onto all humans throughout history. By giving us a difference from animals, gives humans a higher state of hierarchy. By having this power higher than all other things on the earth it makes us responsible for the world and it is up to humans to look after it. When God created Eve she ate from the tree of knowledge which God had forbidden. This created original sin, as Eve had given into the temptation of the snake and the tree and gone against what God had said. Some Christians believe that it is Eve then who is the root of all evil. If eve had not eaten fruit from the tree, then the world might have been a better place. God gave them the chance of free will and wanted to see if they could resist temptation and because they couldn’t we are now still suffering for that mistake. So it is not God who was responsible for that but actually human beings and that is why evil occurs in the world. It is almost a warning sign from God to keep taking care of the world he created. I don’t think that there is one right answer for this question. God did create the world; therefore we are all under his power. However no one in the world is perfect and we all make mistakes and a lot of the time those mistakes can affect lots of people, until it grows into a worldwide thing. As God did give us free will then I think that makes us partially responsible for the world and space maybe not the universe.

Los Angeles Riots – Speculating About Causes

May 14, 2012 Born of Neglect – The Los Angeles Riots â€Å"It was the city that failed†¦It was police management, past and present, that has failed. This has to be taken into account to reflect a just and fair sentence†¦There simply has to be some allowance for the official negligence of the city which allowed this to take place and which will take place again† (qtd. in Cannon 3) On April 29, 1992, the day the verdict in the Rodney King trial was read, I was seventeen years old. Standing in the living room, I watched the news with my parents as they waited for the verdict.When the four â€Å"not guilty† verdicts were announced, I asked my parents why the police were found not guilty if they were caught on tape, that didn’t seem fair. My mom answered, â€Å"No one ever said life is fair. † This was news to me; however the people of Los Angeles had learned this lesson the hard way. The people of L. A. and the justice system have had a long a nd rocky relationship. There have been three major riots in L. A. since 1942, and coincidentally or not, each has a direct correlation with racial bias of the judicial system.While there is good cause to question whether mob mentality took over and created the riots themselves, the circumstances that created the perfect atmosphere for violence cannot be discounted. The Zoot Suit Riots of 1942 involved the predominately Mexican youth of central L. A. and the predominately white servicemen that had been stationed there. Tension between the two had been building, partly due to the servicemen’s rowdy behavior and perceived disrespect to the Mexican community, and partly due to the Mexican youth’s territorialism and pride.Due to the current wartime state of the country however, the media and most citizens gave favor to the servicemen, and portrayed the Mexican Zoot Suitors as gangsters and troublemakers. When Jose Diaz was discovered murdered, the media and police were quic k to label it a gang killing. The subsequent arrests and trial were such a charade of justice that all of the convictions were later overturned. However, the resentment the Mexican youth had for being treated so unfairly simmered, and created the tinderbox that ignited the Zoot Suit Riots. In 1965 the L. A. P. D. ulled over Marquette Frye, a young black man suspected of drunk driving. Frye was new to L. A. , and did not realize the seriousness of the police in L. A. He attempted to joke with the officers, and being close to his home, Frye’s mother arrived on the scene and began to scold Frye for getting into trouble. At this time a crowd had begun to form, and look on as the police used their batons to subdue Frye, his mother, and his cousin with excessive force. The crowd began throwing things at the police, and the rumblings of what became the worst riot in Los Angeles’s history began.Unlike the previous riots, The Los Angeles Riot of 1992 started abruptly. Still, th ere was a general distrust between the L. A. P. D and the people of Los Angeles, and many complaints of police brutality were ignored. In March of 1991 a fifteen year old girl named Latasha Harlins walked into a Korean-owned store to buy some juice. She had her money in her hand, but put the juice into her backpack before she paid. The store owner, Soon Ja Du, perceived Latasha to be stealing, and grabbed her arm. Latasha struck Soon Ja Du and knocked her down.She threw the juice on the counter, and turned to leave the store. Soon Ja Du pulled out a gun and shot Latasha in the back of the head as she was leaving, and instantly killed her. The community went into an uproar, and racial tension was stronger than ever. Soon Ja Du went to trial and was convicted of voluntary manslaughter, and her recommended sentence was sixteen years. When she went before the judge for sentencing however, the judge assigned her five years probation, 400 hours community service, and a $500 fine.During th is same time period, a black man named Rodney King was pulled over after leading the police on a high speed chase, and brutally beaten by five white police officers. The police were unknowingly being videotaped, and the tape was released to the public. The trial of the officers involved was followed by the entire country, and the conviction of the officers seemed a sure thing. When a white jury returned four â€Å"not guilty† verdicts to an already tense city, it had the effect of setting a match to a fuse. The verdicts were announced at 3:15pm; 45 minutes later a flash mob formed at the intersection of Florence and Normandie.The group of people, angry and betrayed, began throwing bricks, shouting, and breaking windows. When the police arrived, they did not call for back-up to control the situation immediately, and instead retreated. The police formed barricades around the city, effectively protecting the upscale neighborhoods surrounding the city, as well as trapping anyone who might have wanted to escape. Around this time the line between righteous anger and mob mentality may have become blurred. In the full scale riot that ensued, building were looted and burned down, pedestrians were brutalized, and some were killed.One of the most remembered events of the riots was the live broadcast of Reginald Denny being dragged from the cab of his truck, knocked down, and being beaten with a fire extinguisher, hammer, and brick. In retrospect many people considered this a hate crime, because Denny was white. However, some people consider this merely a crime of opportunity, with Denny simply being in the wrong place at the wrong time. Duncan, Hugh Dalziel. Introduction. Permanence and Change: An Anatomy of Purpose. By Kenneth Burke. 1935. 3rd ed. Berkeley: U of California P, 1984. xiii-xliv. Print.