Birthdays

You would find forms such as Material Availability Reports, Production Order Forms, Material Requisition Forms, a Production Schedule, and Production Status Forms in the production/conversion cycle. 2) Garbage in garbage out means that if you only put garbage into the data processing cycle, or bad materials or inputs, then you will only get garbage out. You cannot start with bad inputs and expect to get great outputs.To keep this from happening you need to focus on the Inputs that you are putting Into the cycle In order to create and be able to control better outputs. ) Documents that are turnaround documents are going to be forms that the company prints out and gives to an employee that needs to record information on it throughout the day and then input what he has recorded back into the company's computer system at the end of the day. One example would be a gas company who prints out forms and then the employ travels around to read customers meter numbers, he then records them and inputs them back into the computer.Problems: 2) x-x-x-xx X, 1-4 Division X, 1-6 = Major Categories X, 0-9 = Control Account -99 = Subsidiary Accounts for each control account 44 expense accounts would be In the subsidiary accounts for the expense control account, and the 12 variable accounts would be under their appropriate control account. Problems: AAA. Purchase Request C] Purchase Order C] Order Confirmation D Delivery Order C] Receipt/Product Invoice CLC Posting to GAL. or Inventory System b. Sales Order C] Order Number 0 Delivery of Order, Receipt CLC Sales Invoice Posting Sale Transaction to GAL. and Remove Inventory c. Employee Contract Signed 0 Salary Report/Voucher

English Speech Format

Speech: A speech is an extended textual composition. May be based on a verbal or visual stimulus. A speech, like the article, requires a student to express his/her own opinion on a given subject. Write about 3-5 paragraphs. 1st Para †¢Heading or title †¢Introduction-salutation- Addressing the audience, self-introduction- and introducing the topic 2nd Para †¢Logically develop your argument. Credit is given for creativity in presenting ideas. †¢Points should be well organized and linked. Should read fluently. †¢Use rich vocabulary.Spellings must be correct. Use idiomatic expressions 3rd Para †¢Give different thoughts. †¢Points should be coherent. †¢You can take up different issues. 4thd Para †¢Discuss the connected themes as well. †¢Discuss problems if any and provide solutions. †¢Arrive towards a conclusion. 5th Para-Conclusion †¢Repeat and reiterate your point of view. †¢Correct voice (passive, active) and tense to be u sed. †¢Finally, give a very strong conclusion. Solved Example: Speech: Forgiveness makes, anger mars By The Speech WriterGood morning respected Principal, teachers and my dear friends! This is The Speech Deliverer from 10-A, delivering a speech on, â€Å"Forgiveness makes, anger mars. † In today’s hectic times anyone can hurt us anytime—and that too without any rhyme or reason or fault of ours! May be we can also do the same to others. We always look for a healing touch after someone has hurt, humiliated or insulted us. A wise man will make haste to forgive because he knows the true value of time, and will not suffer it to pass away in unnecessary pain.On the other hand, anger is a short madness and when a man grows angry, his reason rides out. Fury and anger carry the mind away. True, anger is never without a reason, but seldom with a good one. In fact anger is the fury and frenzy of the soul. Anger is hard to combat as it is willing to buy revenge with li fe. By controlling the anger of a minute, one may avoid the remorse of a lifetime. So, with the good man anger is quick to die. One reason is that it may compensate for the powerlessness we experienced when we were hurt.We may feel more in charge when we are filled with anger. But forgiving instils a much greater Medically speaking, people who remain angry most are susceptible to hypertension and related heart/brain diseases. Re-living unsuccessful or humiliating situations in the past hurt over and over again and prove bad for your health. other illnesses. Angry men make themselves beds of nettles. Anger always begins with folly and ends with repentance. Anger is like those ruins that break themselves against what they fall upon. Anger is a spender and few indulge it without cost.

The Broken Column and Olympia Essay Example | Topics and Well Written Essays - 750 words

The Broken Column and Olympia - Essay Example The essay "The Broken Column and Olympia" focuses on the comparison of two paintings, "The Broken Column" and "Olympia". Common artistic practice and subjects within cultures suggests Ancient Egyptian art was created as a means of commemorating important people and the ancient Greeks made art to help them worship their gods and goddesses and to preserve their cultural myths. The Romans seem to have adopted elements of the Greek style and fused it with elements of the Egyptian style to develop an artistic approach intended to inspire and celebrate their cultural achievements. After the fall of Rome, the art of the Middle Ages became dominated by themes of Christian religious myths in order to reject the Paganism of the fallen Empire, incorporating religious, political and educational purpose. From here, the art of the Renaissance reflects the re-discovery of more ancient art forms fused to new scientific advancements giving it a historical and experimental purpose. As this skip throug h art history demonstrates, it is easily understood that art can be used for several purposes and it is often inspired or developed in some way so as to build on the past while reflecting the attitudes of the present. As an aspiring animator, the art that appeals most to me is that which takes risks and adopts a more modern or simplified representation of subject such as Edward Manet's groundbreaking "Olympia" entering into the modern period or Frida Kahlo's "The Broken Column" as an expression of surrealism. ... More than that, she is clearly successful in that she has a servant and lives within a very rich environment. Her servant is so dark that she almost becomes lost in the background color of the painting even though she stands at the edge of the far side of the bed. Because of the way he created the painting, Manet leaves it widely open to interpretation. â€Å"The public nakedness of a beautiful woman sometimes becomes a question of politics †¦ which actions are permitted under which unspoken and frequently changing rules† (Friedrich 1). Her appearance within the rigidly proper Victorian culture was shocking because she was seen as a very successful, beautiful and independent woman as compared to the mostly powerless women of the age. Therefore, her representation within polite society was a direct challenge to the rigid ideals of propriety and purity because the painting suggested that her behavior and character were accepted and even condoned within her society. In †Å"The Broken Column† (1944), Kahlo uses dreamlike images to illustrate her personal pain and suffering and line to hold everything together while also demonstrating an independent woman. The broken column of the title refers to the internal structure of Frida’s spinal column. This spinal column is seen through the torn skin and loosely twined bandages that are the only things holding her together. The broken column symbolizes her lack of a support structure and represents her sense of imbalance at the same time that it indicates one of her major sources of pain. Her skin is pricked all over with tiny pins, demonstrating that she is never free of the smaller pains of daily life. The pins continue down the right side of her body, which is the side that had been crippled by both

Tourism in Switzerland and Kenya. Advantages and disadvantages Essay

Tourism in Switzerland and Kenya. Advantages and disadvantages - Essay Example Kenya and Switzerland have registered an impressive record in tourists’ attendance, especially international tourists. Both countries have diverse tourist attractions sites and locations, receiving recognition across the globe. In Kenya, tourism is an industry that has sustained thousands of people in their daily living. It remains the second great foreign exchange earner, after the leading agriculture. Wildlife remains the core tourist attraction. Kenya is also rich in cultural heritage especially along its coastal region (Akama, pg. 8). This too acts as a source of tourist attraction. The coastal beaches are a superb place to visit especially during winter in the West. Switzerland also remains a famous tourist destination location. It does possess an abundance of natural resources and beautiful landscape. The Alps peaks creates a fascinating site. Their rich culture attracts tourists from various locations across the world (Banfi, Filippini, and Hunt, pg. 690). Both countries do acknowledge that tourism does fetch immense income. A major exchange earner has steered the growth of the various locations in both countries. There has been a steady rise in the number of revenues collected from tourism activities. Such revenue goes a great way in improvement of Gross Domestic Product. Essentially, it is the business and the fastest growing service industry in the mentioned countries. It does hold immense potential in it. The growth of t tourism sector has led to the upsurge and development of other sectors such as infrastructure, agriculture, manufacturing, retailing, and hotel industry. Tourism contributes directly or indirectly to the macro-economic growth of the countries. Dues to the stimulation of development ion technology, investments, industries and infrastructures, there is creation of an environment that favours economic growth. The foreign currencies stimulate growth. Taxes emanating from

Healthcare research report---Analysis Plan Paper

Healthcare report---Analysis Plan - Research Paper Example Graphical techniques to be used under this analysis are boxplots and histograms which will assist in identification of outliers that maybe included or omitted in the data. Numerical techniques to be used include frequencies and percentages shall be used to plot the data distribution. 2. Descriptive Analysis. This type of analysis will show how the data looks like and the relationship between different variables in the data set. It will be used to present the quantitative aspect of the data in a simpler and a manageable form. Majorly, this technique will provide a summary of the entire data and it shall be approached from a univariate perspective. Univariate Analysis will involve a deeper examination across the variables in the data; one at a time. Under this analysis, the distribution, central tendency and dispersion of variables will be considered. a. Distribution. This is a summary of frequency of all the observations in a variable. Thus, each observation will be listed alongside the number people in every category so as to present a chart of the frequency distribution. Additionally, a histogram will be plotted to show a visual distribution. b. Central tendency. This section of analysis will consider the mean, mode and median for every variable. The mean will be used to describe the average value of observations in each variable. The median shall be used to estimate the middle value in every variable whereas the mode will show the most occurring value or observation in each variable. c. Dispersion. This is the spread of values around the mean, mode and median. Range and standard deviation shall be used under this category. The range will show the gap that exists between the maximum and the minimum values in every variable. Additionally, the standard deviation will show the average distance of all the data points

Proposal to use mobile application health to help or support Research

To use mobile application health to help or support disability patients in Saudi Arabia. Or how to use technology to help or support disability patients in saudi arabia - Research Proposal Example 89). These developments on the other hand require government interventions so as to be legally implemented and supported. Trying to determine how many people are disabled can be difficult because it is problematic to determine the level of disability as the means of data collection and the definition varies from country to country. Disability is a key problem for the Saudi Arabian healthcare area. Information concerning the cases and frequency of impairment, disability, and socio-demographic features of persons with disabilities are rare and inadequate since the real weight of disability is also mis-calculated. Guidelines and regulations have reinforced the equivalent privileges and rights of disabled individuals, but fruitless application of these regulations has resulted to a gap amongst the proposed goals and the real services provision. Evidently, more examination is required to plot for applicable management platforms, effective employment of basic inhibition strategies, and correct distribution of health facilities in this region. There are applications that have been made to carter for people wi th disabilities, for instance, Prologue2Go, which is a text-to-speech application that helps people with speech disabilities. Enabling disabled people to download applications to smartphones or tablet PCs means having smaller and convenient equipment to store much of what you require than having many pieces of a stand-alone-equipment (Mitchell, 2012, p. 9). This makes it more effective, efficient and, cheaper for people with disabilities to perform various tasks. Mobile technology can also help to remove the stigma in these challenged persons. Before the introduction of smart phones, disabled persons used a lot of instruments to help them in seeing. To achieve this, they needed to carry a magnifier, a money recognition device and a screen

Case Study of the Credit Card Processing Industry Term Paper

Case Study of the Credit Card Processing Industry - Term Paper Example The credit card processing industry has been in the forefront in adopting new technology. Credit card processing is mainly done through electronic processing. The credit card associations and companies have laid down policies and procedures for credit card processing. The system of processing credit cards is very complex as it involves processing transactions hypothetically throughout the payment process system. Usual credit card transaction in involve the following participants: the customer, merchants, payment gateway, acquiring banks processor, credit card interchange, customer’s credit card issuer, and merchant acquiring bank. The settlement for the credit card interchange institutions is done electronically. The computerized transaction settlement systems are used to make payments to the credit card interchange institutions. Today, the main credit card interchanges include MasterCard and Visa .MasterCard and Visa have agents all over the world that persuade merchants to a ccept transactions using their cards. When a customer makes a purchase at the point of sale, the merchant forwards the transaction at the end of the day to the merchant’s bank. The merchant’s bank pays the merchant for the purchase after deducting a fixed fee before forwarding the purchase to MasterCard or Visa. After receiving the transaction money, MasterCard or Visa forwards the transaction charge to the credit card issuer. The credit card issuer then makes payment of a fixed fee to MasterCard or Visa. MasterCard or Visa then makes payment to the merchant bank. MasterCard or Visa collects fees for both the card issuer and the merchant bank. Then the issuer of the card charges the customer for the amount of purchases made. The card holder finally pays the bank a minimum amount at an interest or pays the whole amount. The credit card processing system uses point of sale electronic authorization, which has replaced the traditional paper work and telephone costs. The el ectronic data capture used in credit card transaction today has helped the banks to process and accept transactions much faster. The retail systems in the supermarkets and major hotels have been changed in order to fit the changing needs of using credit cards. The main advantage of using a credit card for the customer is that it is convenient. One disadvantage is that the customer is most likely to fall into a debt that will not be easy to get out of. The whole of the credit card processing system is based on trust. Today, the credit card processing industry has been marred with fraud. The credit card processors have come up with tools to help merchants to identify fraud. These tools are web based and used by merchants to avoid scam. Model relationships capture system for the transactions will affect the customer’s loyalty of using credit cards. The model relationship capture is used to determine risk of issuing a credit card in the future. The credit card scoring points will assess the future business opportunity. The economic crisis has hit the credit card industry so hard that many customers are opting not to use credit cards. Many credit card holders have submerged in the credit card debts and are opting to use debit cards instead of credit cards. Following these dwindling fortunes, the credit card processing industry has to improve their operations in order to maintain customers in the future .The

History of the Canaanite Religion Research Paper

History of the Canaanite Religion - Research Paper Example During this time, the Egyptians were the ones who governed and controlled the entire area of Canaan. During this period, there came the Egyptian Execration Texts, which lists people and princes of the area who owe their allegiance to Egypt. Canaan also related to other violent tribes other than Egypt. A group known as Amorite invaded the area in 2000B.C, which migrated through the Fertile Crescent from Southern Mesopotamian Valley. The Canaanites faced attacks and affected by the Hyksos, who once took control of Egypt from 1720 until 1570. In the sixteenth century, Egyptians succeeded in driving off the Hyksos tribe, which gave the Egyptians a way of extending their power over the Canaanites (Albright, 72). The Egyptian power was somehow weak, and this caused fights among various nations in the area. During the fourteenth century, there was around 350 written letters showing the correspondence of the Egyptian Court at Tell el-Amarna and a number of Canaanite cities. These letters wer e indications of some Canaanite principalities socially and politically. Before the Israelites could enter into Canaan, the people in Canaan only organized around the major cities. This Egyptian form of settlement resulted in a no central defense, which made it easy for the Israelites to succeed in settling in Canaan. Genesis 9:1-2 indicate that although the kind tried to form a defense coalitions there existed no power to unite all the Canaanites against Israelites. Judge Deborah made an effort to fight against Canaanites due to struggling against each other, and as a result, the Canaanite and Israelite finally melded together. This phenomenon finally ended by the time of King David’s Rule. There were findings of the cuneiform tablets, which remained in the royal library and temple in Ugarit. These tablets portrayal and religious perspective was a representation of the Canaanite thought. During this period, worshiping a god by the name Pantheon of deities took place in Ugari t. Each deity had its own duty assignment and fluidity flowed in the deity perception. Canaanites fully engaged in the practice of worshiping gods The Israelites lived in a culture where worship of many gods was into practice. Despite the understanding of the first Commandment by the Israelite-You shall not have any other god before me; the Canaanites challenged this monotheism form of worship-worship of only one God. This worshiping of gods by Canaanites appeared to be perfect according to many Israelites, and they finally forgot all the good things Yahweh was doing to them and started worshiping the gods of Canaan (Douglas, 100). Israelites also had another complain that Yahweh was invisible since no one has ever seen God; another factor why Israelites engaged in the practice of Canaan gods is that they became intolerant. According to Bible these gods worshiping refers to detestable. Although the Israelites were aware that God had demanded them not to worship any other god, the Ca naanites taught them all the detestable, that these gods did to them, and this made Israelites forget their Almighty God. The Canaanites and Israelites depended on rainfall for their survival, and it was a clear belief of them that it rained due to the divine powers of the god who assured human and animal fecundity. Physical Security provided by the gods during times of war was another factor that led the Israelites to begin worshiping gods. The Israelites complained that they should worship a visible god who they can easily access. Some of the gods worshiped by the Israelites One of the gods wors

Deontologists vs. Consequentialists Essay Example | Topics and Well Written Essays - 1250 words

Deontologists vs. Consequentialists - Essay Example If someone were to do his moral duty and perform an action consistent with ethical principles, then it would not matter if it had negative consequences. Such is the view that deontologists hold -- decisions are made and actions done on the merit of the rightness or wrongness of an action and not on the rightness or wrongness of its outcomes. Simply put: certain actions or rules are regarded as appropriate, regardless of the consequence they have. Euthanasia, or mercy-killing, may be cited as an example of such principle put into action. Putting an end to one’s agony by cutting off a patient’s life support is a fundamental reasoning to such an action. Consequentialists, on the other hand, believe the ends always justify the means. Its assumption of morality is derived from what is good or desirable as an end to be achieved. Though it may seem rational to end another person’s misery who, at the moment, is not capable of doing anything about the situation, still the consequence of such action is unjustifiable. What if that person who is in agony or lies in a comatose state is still fighting for his life, though this is impossible to perceive because of his current state? What if the patient’s will is stronger than his fate? What if for a matter of day his life will be sustained had the respirator not been removed from him? To the consequentialists, these outcomes should be examined first to determine moral responsibility. As the previous example points out, both the deontologist's and consequentialist's points of view are based on ethical norms. The only difference is the issue on what norm is considered. While deontologists focus on the action, the consequentialists consider the effect of the action. But what makes an action or its consequence morally right Is there an absolutist' view of what is morally right If there is why is there conflicting views on it If not, how should the issue on morality be addressed These questions are what we will try to answer using the arguments of advocates of these two views. Peter Singer's "All Animals Are Equal" and Mark Vuletic's "Deontological Objections To Consequentialism" will be explained in detail. Later in the analysis, I will propose a different view on the construct of morality and its implication on humans as well as animals. First, let us establish some fundamentals that may guide us in evaluating the ethics of a particular decision (in this case, determining whether an action or a consequence is morally right). Perhaps it is important to note the term used "right" may still be unclear. Consider the following questions. Is the acceptance of a specific thought purely based on the perception of its readers or receivers Or is it based on a more logical, more concrete perception governed by specific laws adjudging such as "right" Is it based on a general acceptance or on a universal General may not mean universal in the sense that the former has a may still be perceived a bit exclusive that the latter. I believe it is a recognized fact that an individual has the right to self-govern in certain areas. Relative to this is that individuals are free to decide what, how, when and in what manner he should act. Having a free will does not mean an individual's decision to act is not restricted whatsoever. If that would be the case, no society might have been formed. Hence, the decision to act is guided by perceived and accepted norms and rules, which are aimed at creating harmony within the person and the society. Needless to say for both to exist in a harmonious relationship, the decision to act should be directed at the promotion of the well being or the benefit of everybody. In effect no decision should be regarded as anything that will inflict other individual. This kind of reasoning puts every person on equal footing; no one is above them, of course the Law, which, as earlier pointed out becomes the universal basis for in considering what is right and what is wrong. Now that we have established the fact that human beings on

Principles of the early years framework Essay Example for Free

Principles of the early years framework Essay Essay about the purposes and principles of the early years framework. The legal regulations under section 39 of the childcare act 2006 gives the early years foundation stage (EYFS) , that came into force in Sept. 2008 and providers are required to use the EYFS to ensure a flexible approach to children’s learning and development so that children will achieve the five every child matters outcomes which are : * Staying safe* Being healthy * Enjoying and achieving * Making a positive contribution * Achieving economic well- being In 2012 the EYFS was revised and made simpler and came into force on 1st sept, it made a number of changes and one of these was to make a stronger emphasis on the 3 prime areas which are the most important to a child’s healthy development these areas are: * Communication and language development* Physical and personal development * Social and emotional development The statutory framework for the EYFS give clear legal requirements to relate to learning and development and also relating to safeguarding and promoting children’s welfare, suitable people i. e. keyworkers, suitable premises, environment and equipment and organisation and documentation. The learning and development requirements have legal force by EYFS order 2007 from section 39(1) (a) of the childcare act 2006. The welfare requirements are given legal force by section 39(1) (b) of childcare act 2006. Together they form the legal basis of the EYFS and have statutory virtue of section 44(1) of the childcare act 2006. Practice guidance for the early year’s foundation stage gives practitioners guidance on how to meet the necessary requirements to the EYFS framework. It provides advice and information on how to support children’s learning and development and welfare. Also you can get guidance for children’s development in a section called development matters and this gives help and information to help practitioners to understand and support children in development pathways which are: * Personal, social and emotional development * Communication, language and literacy * Problem-solving, reasoning and numeracy * Knowledge and understanding of the world * Physical development * Creative development * Every child is different they are all individual in their own right and all children varied needs. Meeting every child’s needs can be difficult even though they are grouped with other children their age. Many children will meet their development needs expected for their age but others will have needs which are characteristic of much younger or older children. We must recognise the child’s needs and meet children’s development needs to help them achieve. We must consider each child’s physical maturity, intellectual abilities, emotional development, social skills, past experiences and relationships. Respecting children and help them to develop in a positive, caring, nurturing and responsive childcare environment. Throughout history we have had people that stood up and fort for young children’s needs and these people have influenced the UK current early years provisions. * Fred Froebel (1782-1852) founded the first kindergarten and learned that it was important for children to get involved in real experiences which meant being physically active. He believed that everything was linked and called the principle of unity and also principle of opposition or ‘gifts’. * Maria Montessori (1870- 1952) worked with children with learning difficulties in Rome Italy. She spent hours observing children and found that children go through sensitive periods of development when they are particularly receptive to particular areas of learning. She saw children as active learners. * Rudolf Steiner (1861-1925) believed in three phases of childhood. The will, 0 to 7 years he said the spirit fuses the body at this stage. The heart, 7 to 14 years a rhythmic system of the beating heart and the chest that respiratory system meant that felling was important during this time. The head, 14 years and onwards was the time for thinking. * Margaret McMillan (1860-1931) believed I first-hand experience and active learning she said that relationships, feeling and ideas were all physical aspects of moving and learning, she believed children would become whole people through play which helped them apply knowledge and understanding. * Susan Isaacs (1885-1948) valued play she believed it gave children freedom to think, feel and relate to others. She said that children can’t in just classrooms sat at tables and write they need to move around and explore to learn too. * The Reggio Emilia approach had a number of key features that attracted worldwide attention these were: Community support and parental involvement. Administrative policies and organisational features. Teachers as learners. The role of the environment. Long-term projects as vehicles for learning. The hundred languages of children. * The highScope approach encourages children to make their own choice of activities. It encourages active and independent learning by involving children in the planning, doing and reviewing. They still have some adult- directed activities such as story- time and PE but they work around the plan – do – review cycle of planning its key features are Active learning Personal initiative Consistency Genuine relationships Building a strong partnership with parents Appropriate curriculum.

Stock Market Performance and the Real Economic Activity

Stock Market Performance and the Real Economic Activity Whether national economy is affecting the stock market or other way round? A lot of studies have done on the past what are relationship of these variables. In my work I have used cointegration and Granger Causality method to find out the relationship between the stock index price and Economic growth indicator GDP. Introduction The debate of whether stock market is associated with economic growth or the stock market can be served as the economic indicator to predict future. According to many economists stock market can be a reason for the future recession if there is a huge decrease in the stock price or vice versa. However, there are evidence of controversial issue about the ability of prediction from the stock market is not reliable if there is a situation like 1987 stock market crashed followed by the economic recession and 1997 financial crises. (Stock market and economic growth in Malaysia: causality test). The aim of the study is to find the relation between the stock market performance and the real economic activity in case of four countries The UK, The USA, Malaysia and Japan. With my limited knowledge I have tried to find out the role of financial development in stimulating economic growth. A lot of economists have different view about stock market development and the economic growth. If we focus on some related literature published on this topic one question arises: Is economic development is affected by stock market development? Even though there are lots of debate on some are saying that stock market can help the economy but the effect of stock market in the economy especially in the economy is very little. Ross Levine suggested in his paper published in 1998 that recent evidence suggested stock market can really give a boom to economic growth. (REFERENCE) It is not really possible to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the rates of growth in GDP. A lot of things can cause in the growth of stock market like changes in the banking system, foreign participation in the in the financial market may participate strongly. Apparently it seems that these developments can cause development of stock market followed by the good economic growth. But to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not? In my work I have tried to find out the co integrating relationship between Stock price and GDP and tried to check if there is a long run and short run relationship between the stock price and GDP. The method used for the studies is Engle Granger co integration method. To do this I have used ADF (Augmented Dickey Fuller Test) to check for the stationary behaviour of the variables and then I have performed the Engle Granger Engle Granger co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd stage Engle Granger co integration method. To check the causal effect of the four countries stock market and economic growth I used Granger Causality Method. In this paper I have reviewed some studies of scholars which I have discussed on the literature review part. This paper contains five parts Part two is about the literature based on the past wok of scholars. Part Three discussed about the Data. Part four is about the methodology, Results are discussed on part five and part six is all about the summary and conclusion of the whole study. In my work I have founded there is no long run relationship between stock market and economic growth in all four countries. In addition there is no causal relation between stock index yield and the national economy growth rate. The empirical results of the thesis concludes that the possibility of seemingly abnormal relationship between the stock index and national economy of these for countries. Literature Review: Stock market contributes to economic growth in different ways either directly or indirectly. The functions of stock market are savings mobilization, Liquidity creation, and Risk diversification, keep control on disintermediation, information gaining and enhanced incentive for corporate control. The relationship between stock market and economic growth has become an issue of extensive analysis. There is always a question whether the stock market directly influence economic growth. A lot of research and results shows that there is a strong relationship between stock market and economic growth. Evidence on whether financial development causes growth help to reconcile these views. If we go back to the study of Schumpeter (1912) his studies emphasizes the positive influence on the development of a countrys financial sector on the level and the potential risk of losses caused by the adverse selection and moral hazard or transaction costs are argued by him how necessary the rate of growth argues that financial sectors provides of reallocating capital to minimize the potential losses. Empirical evidence from king and Levine (1983) show that the level of financial intermediation is good predictor of long run rates of growth, capital accumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with higher investment. Another study from Levine and Zervos (1996) using the data of 24 countries found that a strong positive correlation between stock market development and economic growth. Their expanded study on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other. Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the ‘supply leading hypothesis. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprises by the large efficient banks. Related research was done for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical study by Ming Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent abnormal relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese GDP with the structure of its stock market, role played by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causality test, the overall finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper). An article by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some information about the existence of long run stable relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger causality after using both the Engle-Granger and Johansen technique. In her study she found GDP is co-integrated with financial depth, Volatility in the stock market and GDP growth is co integrated with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani). Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal test for causality by C.J. Granger and yearly Malaysia data for the period 1977-2006. The result from the study explain that future prediction is possible by stock market. A study focused on the relationship between stock market performance and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the second quarter and a unitary (Turkish paper) An international time series analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998) The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect both the variables has positive effect on economic growth. International integration and volatility is not properly effected by capital stock market. And private save saving rates are not at all affected by these financial indicators. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (Levine and Zervos 1998) Belgium Stock market study with economic development shows the positive long run relationship between both the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is more focused between the period 1873 and 1935; basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more pronounced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market Development and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005) Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets: A Spur to economic growth on the impact of development. Less risky investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As, they can sell it quickly when they need access to their savings, and if they want to alter their portfolio. Though many long term investment is required for the profitable investment. But reluctance of the investors towards long term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic gr owth. (Levine. R A spur to economic Growth) A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study; they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 developed and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such as bank-accounting-disclosure standards, banking crises, insider trading law enforcement and government ownership of banks. (Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006; accepted 26 July 2007Available online 21 September 2007) Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that both stock price and economic activity are integrated of order one and Johansen-Juselias Coin-integration tests for this study found one co integrating vector exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by well developed stock exchange and vice-versa. ( Title:  The nexus between stock market and economic activity: an empirical analysis for India Author(s): Purna Chandra Padhan Journal: International Journal of Social Economics Year: 2007 Volume: 34 Issue: 10  Page: 741 – 753 DOI: 10.1108/03068290710816874 Publisher: Emerald Group Publishing Limited) Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation: 23 Jul 2003 Tried to find out the importance of the causal relationship of Financial development and economic growth. The findings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest same results. A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not essential for economic growth. However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time series data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship between financial development and economic growth in Iran only the economical growth leads to financial development. Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization. (Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences; MAM November 2004 Economic Development Financial Market Working Paper No. 2 ) Data: The empirical analysis was carried out using the quarterly data for The UK, The USA, Japan and Malaysia. The data were collected from the DataStream for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the planned regression in order to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the first quarter of 1993 and the fourth quarter of 2008. All the data has been extracted from the data stream and expressed in US$. The data for Japan share price is from Tokyo Stock Exchange. Malaysias Share price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index. The nature of the Data is series used for the time series regression. List of Variables: UGDP UK GDP USP UK Share price LUGDP Log of UK GDP LUSP Log of UK Share price USGDP USA GDP USSP USA (DOW Jones) Share price LUSGDP Log of USA GDP LUSSP Log of USA Share price MGDP Malaysia GDP MSP Malaysia Share price LMGDP Log of Malaysia GDP LMSP Log of Malaysia Share price JGDP Japan GDP JSP Japan Share Price LJGDP Log of Japan GDP LJSP Log of Japan Share price Methodology: Cointegration long term common stochastic trend between non stationary time series. If non-stationary series x and yare both integrated of same order and there is a linear combination of them that is stationary, they are called co integrated series. A common stochastic trend is shared in Cointegration. It follows that these two series will not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-run equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses. Meanwhile, cointegration does not imply high correlation; two series can be co integrated and yet have very low correlations. Cointegration tests allow us to determine whether financial variables of different national markets move together over the long run, while providing for the possibility of short-run divergence. The first step in the analysis is to test each index series for the presence of unit roots, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented Dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009) Series Stationary Test: In this study I have used Augmented Dickey Fuller Test (ADF) to test the stationary of variables. The unit root test is usually used to confirm stationary of a series. The ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being rejected by the null hypothesis (level of significance). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationary or not. ADF test is based on the estimate of the following regression: is in this case variable of interest = , is the differencing operator, t is the time trend and is the random component of zero mean and constant variance. The parameters to be estimated are { } Null and alternative hypothesis of unit root test are: , () () Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative distribution of the ADF statistics by showing that if the calculated ratio of the coefficient is less than the critical value according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The co–integration test can only be performed if both the sequences are all integrated of order I (1). Cointegration Test: Engle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series. Cointegration Long term common random trend between non stationary time series. The linear combination of both the non stationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They might deviate from each other but in the long run but eventually the will revert back in the long run. If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointegration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there might be a divergence in the short run. The first step in the analysis is check each index series whether the series for the presence of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met. According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method). So from the above method we can find the equation By regressing with And after that and is denoted as the estimated regression coefficient vectors. After that I saved the residual from the above equation. Then, = – is representing the estimated residual vector. If the residual is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dickey fuller test on the residual series on level value with intercept only of each country. An in this situation (1, -) is called co-integrating vector if the series is stationary. Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and. Granger causality test: Granger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables. In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And this is strong relationship. Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline operational definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely. Granger causality approach (1969), lets think the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past values of y and x than from the lagged values of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a simple bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the basis of the following bivariate regressions of the form: (1) (2) Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption. From the equation one it can be said that current GDP is related to lagged values of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP. Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the joint hypothesis: and F test is carried out for the null hypothesis of no Granger causality. The formula of f statistic is Lagged term is defined here by m; number of parameter is defined as k. Test result for Unit Root: Augmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -2.653258 -3.522887     -2.901779 -2.588280   -2.693600   -4.088713   -3.472558 1st Difference -9.053185 -3.524233   -2.902358 -2.588587 -9.003482   -4.090602   -3.473447 Share Price Level   -2.116137 -3.522887     -2.901779 -2.588280   -2.203273   -4.088713   -3.472558 1st Difference   -6.899295 -3.524233   -2.902358 -2.588587   -6.844396   -4.090602   -3.473447 Table 01: Unit root test for stationary Japan If we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with intercept and with intercept and trend in level and first difference. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first difference LnGDP is integrated with order one. In case of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. The unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value i n all level and they are integrated in order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Malaysia t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -1.195020 -3.522887     -2.901779 -2.588280 -1.933335   -4.088713   -3.472558 1st Difference -5.951843 -3.524233   -2.902358 -2.588587 -5.923595   -4.090602   -3.473447 Share Price Level   -1.900406 -3.522887     -2.901779 -2.588280   -1.891183   -4.088713   -3.472558 1st Difference   -7.842122 -3.524233   -2.902358 -2.588587   -7.779757   -4.090602   -3.473447 The unit root test result for LMGDP and LMSP values presented in natural logarithm. And the level values with intercept and with intercept and trend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with intercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order on e. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test UK t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -0.690866 -3.522887     -2.901779 -2.588280 -2.377333   -4.088713   -3.472558 1st Difference -7.474388 -3.524233   -2.902358 -2.588587 -7.439027   -4.090602   -3.473447 Share Price Level -1.711599 -3.522887     -2.901779 -2.588280 -1.261546   -4.088713   -3.472558 1st Difference -7.254574 -3.524233   -2.902358 -2.588587 -7.391821   -4.090602   -3.473447 The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is –0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. However, the 1st difference value of log natural share price is -7.254573 and -7.391821 wit h intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test USA t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% Stock Market Performance and the Real Economic Activity Stock Market Performance and the Real Economic Activity Whether national economy is affecting the stock market or other way round? A lot of studies have done on the past what are relationship of these variables. In my work I have used cointegration and Granger Causality method to find out the relationship between the stock index price and Economic growth indicator GDP. Introduction The debate of whether stock market is associated with economic growth or the stock market can be served as the economic indicator to predict future. According to many economists stock market can be a reason for the future recession if there is a huge decrease in the stock price or vice versa. However, there are evidence of controversial issue about the ability of prediction from the stock market is not reliable if there is a situation like 1987 stock market crashed followed by the economic recession and 1997 financial crises. (Stock market and economic growth in Malaysia: causality test). The aim of the study is to find the relation between the stock market performance and the real economic activity in case of four countries The UK, The USA, Malaysia and Japan. With my limited knowledge I have tried to find out the role of financial development in stimulating economic growth. A lot of economists have different view about stock market development and the economic growth. If we focus on some related literature published on this topic one question arises: Is economic development is affected by stock market development? Even though there are lots of debate on some are saying that stock market can help the economy but the effect of stock market in the economy especially in the economy is very little. Ross Levine suggested in his paper published in 1998 that recent evidence suggested stock market can really give a boom to economic growth. (REFERENCE) It is not really possible to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the rates of growth in GDP. A lot of things can cause in the growth of stock market like changes in the banking system, foreign participation in the in the financial market may participate strongly. Apparently it seems that these developments can cause development of stock market followed by the good economic growth. But to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not? In my work I have tried to find out the co integrating relationship between Stock price and GDP and tried to check if there is a long run and short run relationship between the stock price and GDP. The method used for the studies is Engle Granger co integration method. To do this I have used ADF (Augmented Dickey Fuller Test) to check for the stationary behaviour of the variables and then I have performed the Engle Granger Engle Granger co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd stage Engle Granger co integration method. To check the causal effect of the four countries stock market and economic growth I used Granger Causality Method. In this paper I have reviewed some studies of scholars which I have discussed on the literature review part. This paper contains five parts Part two is about the literature based on the past wok of scholars. Part Three discussed about the Data. Part four is about the methodology, Results are discussed on part five and part six is all about the summary and conclusion of the whole study. In my work I have founded there is no long run relationship between stock market and economic growth in all four countries. In addition there is no causal relation between stock index yield and the national economy growth rate. The empirical results of the thesis concludes that the possibility of seemingly abnormal relationship between the stock index and national economy of these for countries. Literature Review: Stock market contributes to economic growth in different ways either directly or indirectly. The functions of stock market are savings mobilization, Liquidity creation, and Risk diversification, keep control on disintermediation, information gaining and enhanced incentive for corporate control. The relationship between stock market and economic growth has become an issue of extensive analysis. There is always a question whether the stock market directly influence economic growth. A lot of research and results shows that there is a strong relationship between stock market and economic growth. Evidence on whether financial development causes growth help to reconcile these views. If we go back to the study of Schumpeter (1912) his studies emphasizes the positive influence on the development of a countrys financial sector on the level and the potential risk of losses caused by the adverse selection and moral hazard or transaction costs are argued by him how necessary the rate of growth argues that financial sectors provides of reallocating capital to minimize the potential losses. Empirical evidence from king and Levine (1983) show that the level of financial intermediation is good predictor of long run rates of growth, capital accumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with higher investment. Another study from Levine and Zervos (1996) using the data of 24 countries found that a strong positive correlation between stock market development and economic growth. Their expanded study on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other. Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the ‘supply leading hypothesis. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprises by the large efficient banks. Related research was done for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical study by Ming Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent abnormal relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese GDP with the structure of its stock market, role played by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causality test, the overall finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper). An article by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some information about the existence of long run stable relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger causality after using both the Engle-Granger and Johansen technique. In her study she found GDP is co-integrated with financial depth, Volatility in the stock market and GDP growth is co integrated with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani). Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal test for causality by C.J. Granger and yearly Malaysia data for the period 1977-2006. The result from the study explain that future prediction is possible by stock market. A study focused on the relationship between stock market performance and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the second quarter and a unitary (Turkish paper) An international time series analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998) The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect both the variables has positive effect on economic growth. International integration and volatility is not properly effected by capital stock market. And private save saving rates are not at all affected by these financial indicators. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (Levine and Zervos 1998) Belgium Stock market study with economic development shows the positive long run relationship between both the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is more focused between the period 1873 and 1935; basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more pronounced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market Development and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005) Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets: A Spur to economic growth on the impact of development. Less risky investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As, they can sell it quickly when they need access to their savings, and if they want to alter their portfolio. Though many long term investment is required for the profitable investment. But reluctance of the investors towards long term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic gr owth. (Levine. R A spur to economic Growth) A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study; they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 developed and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such as bank-accounting-disclosure standards, banking crises, insider trading law enforcement and government ownership of banks. (Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006; accepted 26 July 2007Available online 21 September 2007) Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that both stock price and economic activity are integrated of order one and Johansen-Juselias Coin-integration tests for this study found one co integrating vector exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by well developed stock exchange and vice-versa. ( Title:  The nexus between stock market and economic activity: an empirical analysis for India Author(s): Purna Chandra Padhan Journal: International Journal of Social Economics Year: 2007 Volume: 34 Issue: 10  Page: 741 – 753 DOI: 10.1108/03068290710816874 Publisher: Emerald Group Publishing Limited) Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation: 23 Jul 2003 Tried to find out the importance of the causal relationship of Financial development and economic growth. The findings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest same results. A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not essential for economic growth. However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time series data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship between financial development and economic growth in Iran only the economical growth leads to financial development. Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization. (Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences; MAM November 2004 Economic Development Financial Market Working Paper No. 2 ) Data: The empirical analysis was carried out using the quarterly data for The UK, The USA, Japan and Malaysia. The data were collected from the DataStream for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the planned regression in order to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the first quarter of 1993 and the fourth quarter of 2008. All the data has been extracted from the data stream and expressed in US$. The data for Japan share price is from Tokyo Stock Exchange. Malaysias Share price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index. The nature of the Data is series used for the time series regression. List of Variables: UGDP UK GDP USP UK Share price LUGDP Log of UK GDP LUSP Log of UK Share price USGDP USA GDP USSP USA (DOW Jones) Share price LUSGDP Log of USA GDP LUSSP Log of USA Share price MGDP Malaysia GDP MSP Malaysia Share price LMGDP Log of Malaysia GDP LMSP Log of Malaysia Share price JGDP Japan GDP JSP Japan Share Price LJGDP Log of Japan GDP LJSP Log of Japan Share price Methodology: Cointegration long term common stochastic trend between non stationary time series. If non-stationary series x and yare both integrated of same order and there is a linear combination of them that is stationary, they are called co integrated series. A common stochastic trend is shared in Cointegration. It follows that these two series will not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-run equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses. Meanwhile, cointegration does not imply high correlation; two series can be co integrated and yet have very low correlations. Cointegration tests allow us to determine whether financial variables of different national markets move together over the long run, while providing for the possibility of short-run divergence. The first step in the analysis is to test each index series for the presence of unit roots, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented Dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009) Series Stationary Test: In this study I have used Augmented Dickey Fuller Test (ADF) to test the stationary of variables. The unit root test is usually used to confirm stationary of a series. The ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being rejected by the null hypothesis (level of significance). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationary or not. ADF test is based on the estimate of the following regression: is in this case variable of interest = , is the differencing operator, t is the time trend and is the random component of zero mean and constant variance. The parameters to be estimated are { } Null and alternative hypothesis of unit root test are: , () () Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative distribution of the ADF statistics by showing that if the calculated ratio of the coefficient is less than the critical value according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The co–integration test can only be performed if both the sequences are all integrated of order I (1). Cointegration Test: Engle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series. Cointegration Long term common random trend between non stationary time series. The linear combination of both the non stationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They might deviate from each other but in the long run but eventually the will revert back in the long run. If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointegration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there might be a divergence in the short run. The first step in the analysis is check each index series whether the series for the presence of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met. According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method). So from the above method we can find the equation By regressing with And after that and is denoted as the estimated regression coefficient vectors. After that I saved the residual from the above equation. Then, = – is representing the estimated residual vector. If the residual is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dickey fuller test on the residual series on level value with intercept only of each country. An in this situation (1, -) is called co-integrating vector if the series is stationary. Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and. Granger causality test: Granger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables. In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And this is strong relationship. Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline operational definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely. Granger causality approach (1969), lets think the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past values of y and x than from the lagged values of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a simple bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the basis of the following bivariate regressions of the form: (1) (2) Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption. From the equation one it can be said that current GDP is related to lagged values of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP. Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the joint hypothesis: and F test is carried out for the null hypothesis of no Granger causality. The formula of f statistic is Lagged term is defined here by m; number of parameter is defined as k. Test result for Unit Root: Augmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Japan t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -2.653258 -3.522887     -2.901779 -2.588280   -2.693600   -4.088713   -3.472558 1st Difference -9.053185 -3.524233   -2.902358 -2.588587 -9.003482   -4.090602   -3.473447 Share Price Level   -2.116137 -3.522887     -2.901779 -2.588280   -2.203273   -4.088713   -3.472558 1st Difference   -6.899295 -3.524233   -2.902358 -2.588587   -6.844396   -4.090602   -3.473447 Table 01: Unit root test for stationary Japan If we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with intercept and with intercept and trend in level and first difference. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first difference LnGDP is integrated with order one. In case of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. The unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value i n all level and they are integrated in order one. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test Malaysia t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -1.195020 -3.522887     -2.901779 -2.588280 -1.933335   -4.088713   -3.472558 1st Difference -5.951843 -3.524233   -2.902358 -2.588587 -5.923595   -4.090602   -3.473447 Share Price Level   -1.900406 -3.522887     -2.901779 -2.588280   -1.891183   -4.088713   -3.472558 1st Difference   -7.842122 -3.524233   -2.902358 -2.588587   -7.779757   -4.090602   -3.473447 The unit root test result for LMGDP and LMSP values presented in natural logarithm. And the level values with intercept and with intercept and trend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with intercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order on e. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test UK t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1% 5% GDP Level -0.690866 -3.522887     -2.901779 -2.588280 -2.377333   -4.088713   -3.472558 1st Difference -7.474388 -3.524233   -2.902358 -2.588587 -7.439027   -4.090602   -3.473447 Share Price Level -1.711599 -3.522887     -2.901779 -2.588280 -1.261546   -4.088713   -3.472558 1st Difference -7.254574 -3.524233   -2.902358 -2.588587 -7.391821   -4.090602   -3.473447 The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is –0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. However, the 1st difference value of log natural share price is -7.254573 and -7.391821 wit h intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary. Variables level/1st Difference Augmented Dickey Fuller Statistic(ADF) test USA t statistic value With Trend t statistic value With trend and Intercept 1% 5% 10% 1%

Hawthornes Young Goodman Brown and History Essays -- Young Goodman Br

â€Å"Young Goodman Brown† and History  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚        Ã‚   Q. D. Leavis states that â€Å"perhaps the persecuting aspect of their way of life was peculiarly present to Hawthorne because of the witch-hanging judge and the Quaker-whipping Major among his ancestors† (30). This is a reference to one instance of historical allusion in Nathaniel Hawthorne’s â€Å"Young Goodman Brown.† This essay will explore a variety of historical incidences referred to in this short story.    Clarice Swisher in â€Å"Nathaniel Hawthorne: a Biography† states:    William Hathorne was a colonial magistrate involved in the persecution of Quakers, another Protestant religious group. Hawthorne later described him as â€Å"grave, bearded, sable-cloaked, and steeple-crowned,† a hard, dark man. His son John Hathorne was well known as a Puritan judge who condemned women as witches in 1692 during the Salem witchcraft trials, and who later expressed no remorse for his actions. . . . Of his ancestors, especially Judge John, Hawthorne later said, â€Å"I . . . hereby take shame upon myself for their sakes, and pray that any curse incurred by them . . . may be now and henceforth removed (14).    Reference to these forbears of Goodman Brown is made in a notable episode in â€Å"Young Goodman Brown† when the devil responds to Brown’s assertion of his family’s Christian past: â€Å"We have been a race of honest men and good Christians, since the days of the martyrs. And shall I be the first of the name of Brown, that ever took this path and kept"- The devil then responds:    "Such company, thou wouldst say," observed the elder person, interrupting his pause. "Well said, Goodman Brown! I have been as well acquainted with your family as with ever a one among the Puritans; an... ... Derived from New England Living.† In Readings on Nathaniel Hawthorne, edited by Clarice Swisher. San Diego, CA: Greenhaven Press, 1996.    Hawthorne, Nathaniel. â€Å"Young Goodman Brown.† 1835. http://www.cwrl.utexas.edu/~daniel/amlit/goodman/goodmantext.html    Leavis, Q.D. â€Å"Hawthorne as Poet.† In Hawthorne – A Collection of Critical Essays, edited by A.N. Kaul. Englewood Cliffs, NJ: Prentice-Hall, Inc., 1966.    Swisher, Clarice. â€Å"Nathaniel Hawthorne: a Biography.† In Readings on Nathaniel Hawthorne, edited by Clarice Swisher. San Diego, CA: Greenhaven Press, 1996.    Wagenknecht, Edward. Nathaniel Hawthorne – The Man, His Tales and Romances. New York: Continuum Publishing Co., 1989.    Williams, Stanley T. â€Å"Hawthorne’s Puritan Mind.† In Readings on Nathaniel Hawthorne, edited by Clarice Swisher. San Diego, CA: Greenhaven Press, 1996.

Free Essays Settings, Characters, and Ideas in The Blue Hotel :: Blue Hotel Essays

Settings, Characters, and Ideas in The Blue Hotel The Story "The Blue Hotel" by Stephen Crane was one that inspires a lot of thought. This thought is about settings, characters, and ideas. The characters he creates are very different from each other, as shown in comparisons to each other. The use of symbolism in the story lets us imagine why the hotel is painted blue and we can wonder about the character of the Swede for long periods of time. These elements combined have made this story very good. The settings in the story are a very big focal point of Stephen Crane. He develops them very well and makes them actually serve a purpose in the story. The color blue painted on the outside of the hotel could symbolize its old age and the dark and dreary atmosphere surrounding it. The hotel seems to be a microcosm because it is the central point for all of the story's characters. The only place that they interact with each other is inside of the hotel and the main points of the story happen there. All of the violent confrontations happen i n the hotel or around its grounds. The main fight between the Swede and Johnny is outside in the bitter cold in the street. The hotel could possibly change the characters thinking and cause them to be really weird. This is shown when Scully shows the Swede pictures of his dead family (269). What person in their "right" mind would show someone who thinks they are going to be killed a picture of someone who was killed? These examples show how the settings are more important then the characters themselves. The characters are very odd in this story. It's very hard to think of how such a group could have been formed. The differences among the men are large. The cowboy is the rugged and sinister type, while the easterner is very open and joyful. Johnnie is not like his dad, Scully. They seem to be foils of each other. The Swede is just very unique and in a class by himself. He is a classic case of a paranoid schizophrenic. Don't believe me? How about when he says, "I'm crazy-yes, but I kn ow one thing" (267). That one thing is he knows is that he will be killed soon, very soon. The problem and/or question of whether or not the Swede would have been killed whether Johnnie had participated in that fight by his cheating or not, is easy to answer.

The World Trade Organization Essay -- International Monetary Fund

The World Trade Organisation (WTO) is today seen as one of the pillars of international trade and financial systems of the world alongside the World Bank and the International Monetary Fund, despite being only sixteen years old. With what began as the succession to the previous guidelines and rules set out by the General Agreement on Tariffs and Trade back in 1948, it is now seen as the ‘main unifying force of world trade today’ a key player in both the conduct of trade relations and global governance. (Herman, 1999) Today, as the world’s economy and its nations continue to change and grow together with the global business environment itself, the WTO has faced new challenges and perhaps its biggest challenges to date which question the relevance and future of the WTO. The essay will address such concepts through the analysis of the WTO’s main role, the importance and successes of the WTO to date, the challenges it currently faces and a look towards its pote ntial relevance in the future of world trade. The discussion will be aided through the use of published data, literature, online sources and journals. (WTO, Trading into the future 2011) Beginning with only 23 members, the WTO currently stands at 153 members representing a total of 97% of all world trade although this is set to increase following Russia’s accession into the WTO. This statistic details the importance of the WTO as the only international body that deals with the rules of trade between nations. (Hamilton, Webster 2009) The WTO was created as the previous system the General Agreement on Tariffs and Trade (GATT), needed an institutional and stronger framework to allow them to drive forward policies and advice. The WTO’s overriding principle is to help free trade,... ...ineffective with the growing number and diversity of members. Suggestions to overcome the problem include ‘Critical-Mass’ thinking and the creation of smaller groups of members based on similar trading characteristics may improve the system. In light of the recent financial crisis the role of the WTO is critical, in which its positive impact on world trade to date may become forgotten in light of recent criticisms. The WTO needs correct leadership to overcome the challenges today, to maintain its future survival and ensure it continues to be of success and further improve world trade. If change is not implemented successfully, the great negotiation forum it once was it will instead result in a forum in which the great members will struggle to compromise on trade issues thus harming the WTO’s main purpose which is to encourage the growth of world trade.