Environmental economics Essay

The market forces of demand and supply lead to equilibrium price and quantity that can be used to allocate sources effectively in many of the markets. At times they fail to deliver the best level of output for society. The government intervenes using various methods to correct market failure. This report details the six different types of market failure which can occur in the UK in addition to critically detailing how the government attempts to correct market failure. 2. Externalities According to Samuelson (1954) ‘Externalities create a divergence between the private and social costs of production’. Social costs are the production cost of a product or service including third party costs; in the event of a negative externality the social costs are much greater than private costs i. e. pollution. Externalities are external costs and benefits which arise during economic activity but which are not considered by the buyers and sellers involved as they effect third parties only. Ignoring external costs and benefits can lead to the wrong level of output in the market. Negative externalities, occasionally referred to as external costs, are the costs that separate social and private costs. They are the costs paid for by third parties, which is usually society as a whole. If negative externalities are left to the market mechanism it could lead to over production. Chivian and Bernstein (2008) concluded, ‘soft drinks in large quantities are unhealthy and could lead to medical problems’. This would increase the medical costs for the government, to tackle this issue they could tax soft drinks to discourage use in addition to elevating such charges from healthy drinks consequently providing a cheaper and healthier alternative. Consumers can create externalities by consuming certain goods or services. †¢Pollution from privately owned cars or taxis †¢Public damage caused by alcohol abuse †¢Litter on streets The UK government address these negative externalities through two primary functions; legislations and taxations. Pressure from environmentalist along with studies confirming the existence of global warming forced the UK government to introduce ‘Green taxation’. This includes an increase in petrol prices to discourage use of fuel reliant cars, increase in excise duty on alcohol as well as fines for perpetrators caught in the act of littering. Indirect taxes are used as a means of deterrence on products which could lead to market failure. They differ to specific taxes such as excise duty on tobacco as they are not fixed sum per unit. VAT is an indirect tax which raises cost of production. A pecuniary externality is a type of negative externality which relates to the economic activities rather than physical resources. Apple increased its market share from 25% to 36% in the mobile phone market while others have lost theirs; those suffering losses have incurred a pecuniary externality (Apple iphone market share, 2011). The key difference between pecuniary and real externality is while real externality ought to require compensation pecuniary should not. Positive externalities, if left to market mechanism, could under produce and would not reach level of output which is socially efficient. †¢Education system, government provides student finance to encourage higher education †¢Health service, government provides free health service By investing in human capital via promoting education and providing incentives to stay in education i. e. EMA, the government is assisting corporations through nurturing more educated individuals. This is essential in sustaining the country’s development. Positive externalities can also have negative effects; UK boasts one of the largest fast food market in the world, Britons spend average of ? 7 million a day on junk food, which contributed to UK being crowned as ‘the fattest country in Europe’ (Britain is Europe’s fattest nation, 2011). 3. Missing markets Missing markets transpires when there is a failure in the market to produce certain goods or offer services in spite of the level of demand. If conditions are not satisfied markets can struggle to exist and since it is unlikely they will ever form they are called ‘missing markets’. An example of this occurrence is the ‘pure public goods’ which provides to the population non-excludable and non-rival benefits. The free rider problem can be one of the causes which lead to missing markets; the term originates from the example of someone who doesn’t pay fares when using public transport. Everyone would want to use the product but would wait till someone else has paid for it which could lead to under-production or even non-production. For example, if an individual does not pay tax he can still use the roads or call the emergency services. Pure public goods and other markets with similar characteristics are unlikely to ever be considered as business opportunities by individuals or corporations given the impossibility of charging consumers at the point of consumption. Pure public good includes: street lights, national defence, police, fireworks display etc. All pure public goods have the following characteristics: †¢Non-rivalry: The consumption of the good by one person does not reduce the quantity available for others. The amount of usage does not correlate with the availability for example; a lighthouse’s light can be seen by more than one ship at any given time. †¢Non-excludable: If the good is provided for one anyone can use it, and they cannot be stopped from using it. Once a streetlight is erected it benefits all passers-by and there is no possible way of excluding someone. †¢Non-rejectable: The public cannot refuse the benefits or consequences of a pure public product. An individual cannot reject being defended by the armed forced of a country, nor can they reject the benefit of street lighting. To tackle the missing market failure the government may seize control of all operations relating to pure public goods and would then be responsible for meeting the demands of the people. In order to fund projects such as road building the government would raise taxes rather than charge individuals. The government introduces money making schemes such as congestion charges to raise funds for the transport system or charge private airlines landing fees at airports. In 2008, as a bid to attain ? 3 billion, an idea was proposed which would introduce congestion charge in Greater Manchester. 4. Information asymmetry Information asymmetry occurs when there is a lack of symmetry, or balance, between the knowledge of the buyer compared to that of the seller furthermore, the imbalance gets exploited which leads to a misallocation of resources. For instance, an unscrupulous dentist might tell his patient he needs lots of dental work done, when in reality not so much is required, just to create business. This can also be seen in lawyers, car mechanics, doctors etc. In the UK there are several laws which help the consumers and warrant them rights if a product is purchased or a service is used. The Trade Descriptions Act 1968 was introduced to prevent manufactures and retailers from misleading consumers by stating all products ‘must be sold as described, of satisfactory quality, and fit for purpose’(OFT, 2011). This prevents businesses from deceiving individuals by allowing them rights to know exactly what the product is. To inform consumers of their rights the government has setup websites and institutions which can be used to attain information readily. The OFT (Office of Fair Trading) was set up in 1973 to ‘enforce both consumer protection and competition law, acting as the UK’s economic regulator’. They can be contacted by consumers who would be given guidance about their matter and legal advice. The OFT carry out investigations into alleged unfair practices if consumers feel wronged for example, in June 2010 an investigation into credit score websites was opened after consumers complained about being charged monthly subscriptions fees. Verdict was reached and the accused companies agreed to not mislead consumers by making these charges known (Investigation into unfair practices, 2011). 5. Lack of competition in the market According to O’Connor (2012) a monopoly occurs if at least of the two conditions are satisfied: †¢The only organization in the industry †¢Substantial barriers of entry The UK government and many other agencies, informally, refer to any company with more than 25% market share as a monopoly. This includes companies on a national, regional or local scale. Monopolist businesses act as price maker, due to lack of competition, therefore can create artificially high prices if demand exists to earn abnormal profits. This is very different to the situation which occurs when competition exists in the market where businesses are constantly trying to reduce prices to undercut competitors. A restrictive trade practice is a strategy used to reduce competition and raise prices of products. Cartels are formed when businesses agree to set prices high, they are also illegal in UK. Competitors are forbidden to collude in restricting the flow of goods to a particular person or business. The UK government has various legislations to prevent abuse of power. Monopolies and Restrictive Practices Act (1948) In 1948 the Monopolies Commission was created to investigate industries where businesses are acting in collusion to limit competition. A report will be published after the investigation is concluded and will be given to the government to take necessary action. Monopolies and Mergers Act (1965) This act was created to investigate or prevent business that control at least 25% of the market from merging together. The Monopolies Commission would investigate the case then allow the merge to take place or disallow it if it does not act in the interest of the public. Restrictive Trade Practices Act (1956) Restrictive Trade Practices Act made it illegal for manufactures to act in collusion and control the prices at which their product is sold at in retail stores. The Registrar of Restrictive Practices acts as a database, businesses have to register any restrictive agreements between the manufactures. Fair Trading Act (1973) This act established the Office of Fair Trading with the aim of enforcing the act. Consumer protection and Competition law were the main agenda. The goal is to ensure markets work well for consumers, ensure strong competition and prohibit unlawful practices. Consumer protection was enhanced as businesses would be given warning at first but will be taken to court if problems persist. Competition Acts (1980 and 1998) Large businesses may limit competition and increase profits by predatory pricing, excessive prices, refusal to supply and price discrimination. This act was created to ensure businesses do not abuse their dominant market position and to deal with restrictive business practices. The EU influenced this act as the UK had to comply with EU competition policy. This act will be enforced by the Director General of Fair Trading and business if found at fault will be liable to financial penalties. Enterprise Act (2002) This act establishes new competition authorities, reformulates the law regarding mergers and markets, changed the law governing insolvency bankruptcy and criminalises anti-competitive behaviour. It also enhanced the Office of Fair Trading powers allowing it to carry out searches under warrant on the suspected mergers. Businesses can now appeal against the decisions made by the Competition Commission. The Minister of Trade and Industry used to play a major role but due to inconsistencies he no longer has the final say regarding mergers. 6. Unstable prices Unstable prices apply particularly to commodities, any naturally accruing substances, such as fossil fuels, coffee, wheat etc. If left to the market mechanism they tend to suffer from fluctuations in prices much more frequently than manufactured goods, which create problems for the suppliers of these commodities as they cannot plan with any certainty on what revenue they are going to receive. Lipsey and Harbury (1993) discussed the two strategies the government tries to control the price with: Price ceiling The government imposes a maximum price limit that can be charged for a particular item in order to protect consumers from environments that would make commodities inaccessible. A binding price ceiling is when the government decides to set the price ceiling below that of the free market price for example, if bread costs ? 2. 00 on the free market a price ceiling of ? 1. 00 would be considered a binding price ceiling. However, this can also have undesired results as some suppliers may slump out of the market as they cannot deal with the deficit, causing supplies to reduce and demand to increase as consumers bulk buy cheap items. A non-binding price ceiling is when the price ceiling is set above the free market price giving the suppliers/manufactures a buffer zone which is unlikely to have any practical effect. Price floor A price floor is the minimum price that can be charged for a product or service. If the mandatory price is set below the free market equilibrium price then it will have no practical effect but if the minimum price is set higher than the free market price it would mean consumers will have to pay more for the product. This could lead to demand falling which would result in manufactures seeing revenue decrease. An example of a minimum floor price is the National Minimum Wage Act 1998 which dictates the lowest amount employees can be paid. 7. Labour market failure Labour market should, according to Gregg and Wadsworth (2011), reach a certain equilibrium wage and quantity but in practice this rarely happens. Listed below are some potential causes of market failure: †¢Labour and skills immobility: Labour cannot always be where the jobs are, this is called geographical immobility. Skills immobility is when labour does not possess the right skills to fulfil the job. For example, coal miners lost their jobs when new industries were formed and because of the mismatch in skill they are left unemployed. †¢Discrimination: Race, gender, height, weight and age are some examples of discrimination which can take place and could lead to market failure. The government intervenes by creating legislations such as the National Minimum Wage Act and Equal Pay Act to help protect people’s rights at work. They also offer incentives for students to continue into further education. Gangmasters are the main employers in a town and will use their buying power to force wages below the national minimum wage rate. The government set up the GLA (Gangmasters Licensing Authority) to help control this problem and protect workers (Labour markets, 2009). 8. Conclusion The UK government acts admirable in the event of market failure to prevent further damage being inflicted onto the economy. However, the monopolistic business control acts are not in my estimation deterring businesses from unhealthy practices enough. The green initiative is laughable at best considering most households generally are in possession of two cars compared to just a single vehicle few years ago. Clearly more needs to be done to protect the environment. Although high petrol prices and an increase in insurance act as a deterrent to some the lack of alternatives is detrimental to the efforts. A higher tax should be implemented on tobacco as it is causes negative externalities which not only affect the individual but also the government, NHS spend on average five billion a year on treating diseases directly caused by smoking (Buckley,2003). 9. Bibliography Samuelson, P. A. , 1954, the pure theory of public expenditure, harvard university press. Chivian,E. C. and Bernstein, A. B. , 2008, sustaining life, oxford university press. O’Connor, A. C. , 2012, monopoly: the cause of evil, Lightning source uk ltd. Gregg, P. G. and Wadsworth, J. W. , 2011, The labour market in winter: the state of working britian, OUP oxford. Lipsey,R. G. L and Harbury,C. D. H. ,1993, first principles of economics, Weidenfield and Nicolson. Buckley,C. B. , 2003, thank you for smoking, Allison and busby. reuters. 2011. Apple iPhone market share. [ONLINE] Available at:http://www. reuters. com/article/2011/12/22/smartphones-europe-idUSL6E7NM0PI20111222. [Accessed 25 January 12]. metro. 2011. Britain is Europe’s fattest nation. [ONLINE] Available at: http://www. metro. co. uk/news/38242-britain-is-europes-fattest-nation. [Accessed 25 January 12]. office of fair trading. 2011. Investigation into alleged unfair practices. [ONLINE] Available at:http://www. oft. gov. uk/OFTwork/consumer-enforcement/consumer-enforcement-completed/adaptive-affinity/. [Accessed 25 January 12]. labour market failure. 2009. labour markets. [ONLINE] Available at:http://www. tutor2u. net/economics/presentations/labour_market_failure/player. html. [Accessed 25 January 12].

The Marketing principles

The Marketing principles I will present are; Understanding the customer's needs: ‘if you can speak the customers language you can understand their needs better† Book: Marketing plans 1996, (Angela Wheaton) It is very important that companies have the knowledge of customer's needs, as it is a key to a company. Markets are always changing; therefore companies needs to keep reducing new fashionable products. Companies need to know what their customers, wants and prepared to produce the right product. Such as new clothing, accessories, etc.One of the examples where customers satisfaction has been achieved is whereby online customers has received the packaged in order and in great shape. The Company has made sure the prices are affordable for their customers of all preference and (income) by being a high street shop which means it is affordable to people of all ages and class. Example if it is too high your customers will not buy. This means if the prices in H are too expensiv e their 10 company loses customers, less customers result in H losing sales. And if it is too low your cost will not be covered. And if prices in H are too low profits will not be made.H has a great customer service and customers can call for any questions they have, they are always willing to help with wide open arms, they are always willing to offer help and make them aware of the latest offers that they have for the customers. Secondly, the quality of the goods should also be considered, it should be at a satisfactory state and good condition Understand and keep ahead of the competition: Businesses have to make sure they keep up with competition, by having an eye on their competitors. Good competition is healthy for businesses as it will push the company to work harder and to be more successfully.They keep up with competition by being up to date with technology. H is leading the way in following a strategy of vertical integration with distribution network. This strategy has allow ed the company to directly collect and fully search information market. (www. Businesswoman. Org. 2004) Who are their competitors? They clearly do have competition. Which are Top shop, River Island, Berserk, Ezra, etc, Ezra is defiantly known for H biggest Competition cause of the similar fashion sense, which are Men's wear, woman's wear, accessories etc, not only do they use technology which the company H also uses .However for the company to be ahead of their competition; is by promoting their brand and teaming up with the famous Karl Laagered, designer for Channel, to create a high-end line that was also reasonable priced for the younger customers that H caters to. The results were extraordinary, as many items sold out within an hour. Recognizing this idea as an clear success, the company then went on to team up with other famous designers and celebrities such as: Stella McCarty, Victor & Roll, Madonna, Roberto Cavil Jimmy Coho, Sonic Riskily, and Lanolin†.This shows that H &M is always ahead of the competition by bringing new designs to the table (Marketing week October 2013) Furthermore H&M offer two man collections each year on spring and one in fall. Within each season, this allows H&M to continually refresh its inventory (Forbes, 2012) H? COLD Communicate effectively with its customers to satisfy customer's expectations: For genuineness to become successful, the ability to communicate well should be the aim of every business.Companies are willing to try their best to communicate with their customers/clients. This is important for all types of advertisement. Clients want to feel that they are the company's priority and a way to ensure this is by giving them exemplary customer service. Good communication is effective for meeting customer needs and an example of where this is demonstrated, is where the employer can quickly address any problems the customer may have with the new product.

Franchising

Franchising is defined as a business model wherein the owner of the business (franchisor) gives the independent operator (franchisee) the right to distribute his product, apply his business techniques and use his brand and/or trademark in the conduct of the business. With such a business model, the business owner can maximize their business’ profit potential in a shorter time compared to other more traditional business models. In franchise business, it is not only the products or service that the franchisee can avail; it is more of the system-the business plan of the chosen franchise. It is fact that before franchise companies offer their business packages, they already conducted strenuous researches and studies to test the capability of the franchise to withstand the various factors that might affect the operation of the business. Simply put, franchise business offers a time-tested business plan. When entrepreneurs think of franchising, food is often the first thing that comes to mind. Most of the world’s biggest restaurant concepts are all franchised businesses. This chapter focuses on study and literature readings of franchising business specially food franchising. Different report related to this research will help researcher educate themselves to the different aspect of purchasing a food franchise. Since 1950s, food establishments have quickly become the most popular sector in franchising. In U. S. as the nation’s economic environment hold steady, franchising continues to exhibit its positive influence. According to William Rosenberg International Center of Franchising at the University of New Hampshire Whittemore School of Business and Economics, â€Å"Franchised Businesses create more value and perform better financially than their non-franchised competitors†. The study found that over the 10 year period, U. S. public restaurant franchisor have created more value than their non-franchising competitors. â€Å"Franchising firms minimize agency problems, and have access to cheaper capital, motivated managerial expertise, and better local market knowledge,† according to the report. Franchising has grown so fast since the 1950s that it is now pervasive in different economy around the world. In study commissioned by the International Franchise Association, PriceWaterhouseCoopers estimated that in 2001 there were more than 767,000 business establishment in the United States engaged in franchising, providing directly or indirectly more than 18 million jobs, over $506 billion in payroll, and over $1. 5 trillion of output. Franchising now dominates certain sectors of the U. S. economy, over 56 percent of quick-sevice restaurants are franchises. Franchising is also one of the fastest-growing U. S. xports, and it is now estimated that franchising will grow 12 to 14 percent per year in the future. The restaurant industry has earned a reputation for high risk and high rewards. Some industry analysts claim a dubious 90 percent failure in the first year. Franchise restaurants based on proven systems have a high success rate—about 62 percent over four years—than independent operators. In U. S. the average full-service restaurant in 2006 grossed $867,000. The restaurant industry is the U. S. largest employer after the government. The profitability of a food franchise always depends in their ability to provide satisfaction in their customers. Research indicates that consumers have strong preference about choosing where to eat—with 62 percent saying they look for â€Å"environmentally friendly† establishments, 70 percent want offerings not easily duplicated in their home kitchen; and 83 percent express approval of healthier eating options at quick service eateries. The Success of food franchise can be put down to strong customer focus; franchisees are selected and entrusted with a loved brand and the quality of product and service is never compromised. It is necessary that the franchisor offers its franchisees a comprehensive franchise system, with maximum support and training. Entrepreneurial Failure: The Case of Franchises†, by Steve Michael, a professor of business administration at the University of Illinois at Urbana-Campaign, concluded that â€Å"Franchisees are less likely to fail if they have been trained effectively by the franchisor†. Franchises with the best, most robust training programs have the most successful franchisees. The length of the training program was significantly tied to the chance of failure. Those franchises with the shortest franchisee training programs were more likely to fail. Those with longer programs were more likely to succeed. Michael Newman, president and founder of ABC, based in Citrus Heights, California, agrees and says training of franchisees was paramount from the word â€Å"go†. â€Å"We realized very early on that everything is about training† says Newman. â€Å"Franchisees need good training in order to be successful out in the field. There are as many varieties of food franchises as there are types of foods. Investments can range from the very high end of hundreds of thousands of pesos for full-service restaurants, to a moderate capital outlay for vending machine. There are franchises that specialize in sandwiches, barbeque, burgers, pizza, ethnic foods, candy, ice cream, smoothies and many other types of foods. Food franchising is most often associated with restaurants and it is the best franchise because food and eating remain constant. In Maslow’s Hierarchy of needs, survival needs is the first factor that man should satisfy. In here, nourishment of one’s body is essential, not just because man wants to eat but rather man needs to eat in order to survive. Aside from being a need for human survival, food is the best franchise to engage in because people spend much for food. Plus, human choices of what kind of food or menu to offer are almost endless. Another good thing about food franchise is that, there are a lot of affordable franchise packages that will fit your capital. Entrepreneurs can select from food carts, which is a good start-up, or by kiosks and cafes. This type of food franchise do not require investors to dole out millions or hundreds of thousands pesos. Franchising has recently been named as one of the most outstanding and most successful business models in the country today. It has become so popular that we now have more than a thousand franchise Philippines brands (from just about 50 franchising brands during the 1980s). No wonder, the Philippines is now being dubbed as the â€Å"Franchising Hub of Asia†. Food franchise here in the Philippines is a good earning potential since the products are usually affordable and the taste suits the Filipino taste buds. The very simple explanation for this is that Filipinos love to eat good food. Investors can put their franchise near the schools and universities, transport terminals and even within shopping malls. They can place their franchise anywhere, provided there is traffic or consumers who willing to pay for good tasting meals. There is no doubt, that food business or franchise is a stable industry despite the greet hit of economic recession. Entrepreneurs likely to think that competition in food franchise is stiff. Yes, of course. But their edge depends on the quality and taste of the food. They have to make sure that they deal with the best franchise company who offer good food at good price. Food products should be clean, properly processed, and served in an appetizing way. Naturally, man will spend good money for a great meal. So, it is a confirmation that food franchise can stay sturdy and growing even if other business entities face bankruptcy. Everyone can afford to skip buying latest gadget, but it is a sure bet that, they cannot afford to skip food. As long as there are people around, then food industry stays. Today, even if the economy is down, is still the best time to buy a food franchise. Food business in the Philippines is one of the best investments but it does not promise a 100 percent success. Successful business often start with an idea an entrepreneur hatches, slowly builds up and takes to market. Planning and controlling often occupy the top of every aspiring businessman’s to-do-list before they even starts leasing space and producing products. As it turns out, there are always exceptions to the rule, even in business. Take for instance Edgar Injap Sia. For him, taking advantage of a great opportunity outweighs all the planning known to man, which why he took up a vacant mall in his hometown of Iloilo City without a plan on what to do with. After a few weeks of conceptualizing, Sia decided to put up a restaurant offering an Illonggo staple called inasal in a ciy that was already teeming with versions of the same product. But due to his relentless work ethic, Sia’s Mang Inasal Restaurant became a critical and dominant success in the Visayas region in no time. After establishing a good foothold in that region, he then set his sights on conquering the holy grail of every Filipino businessman: taking his concept to Luzon, specifically the make-or-break capital city, Metro Manila. I was not very familiar with Manila, because I was born and raised in Visayas. I only visited once a year, and it was usually for very short stays. So I knew I was in for a quite a challenge taking Mang Inasal to Luzon,† he said. Out of nowhere, Mang Inasal branches in Metro Manila had sprouted like mushrooms. Mang Inasal’s Founder Edgar Injap Sia shares the secret on making up in the big league. First, be brave and be hold. Second, innovate and start something new. Third, be ready for backbreaking work. Fourth, refuse to give up. Fifth, go slow and steady. Sixth, join reputable organizations. Seventh, stand out. Eight, continue to look for opportunities. â€Å"Nothing is impossible with right attitude. Do not be intimidated by problems look at them as an opportunities for growth. That’s the entrepreneurial spirit of Mang Inasal’ Chairman and CEO, Edgar J. Sia II. In food franchise business commitment with the right attitude is one of the most important recipe. It is impossible to survive and succeed being a franchisee if you are not committed in your business. Source http://www.bison.com/press_ABCSeniors_06092008

Organizational Rationalization Case Study Example | Topics and Well Written Essays - 1750 words

Organizational Rationalization - Case Study Example It is evident that many organizations use rationalization procedure to cut down their expenses. When a company, industry, or a system rationalizes, it becomes more efficient, usually by getting rid of excess staff members and types of equipment, which are not essential. This essay analyses the advantages and disadvantages, which Junction Hotel will experience from rationalizing its operations. Main features of a rational organization From a rational organization perspective, organizations are specially designed to obtain a certain goal (Scott p. 29). Some of the expressions used in this rational perspective are words such as efficiency, information, implementation, design, and optimization. Other â€Å"rational† rhetoric includes authority, rules, constraints, jurisdiction, performance, coordination, programs, and directives. The two main features of a rational organization are formalization and goal specificity (Morgan p. 13). Goal specifics- Organizational goals are tentativ ely described as an achievement of desired objectives. However, rational perspective hypotheses that goals guide decision making on how to design the organizational structure. The junction hotel should be goal specific in order to enable the management to come up with a more official organizational chart. Formalization- Formalization degree is the extent that responsibilities depend on specific individual attributes of the person occupying the responsibilities. Formalization tries to regulate and standardize behaviour. Formalization is also an effort to make the relationship structure more explicit and visible (Scott p. 31). Based on the Junction hotel perception, organizational structure should be a tool that can be amended to improve the hotel’s performance. According to Scott, a formalization is an option to the information structure (p. 33). It can separate people’s feelings between employees in work activities. Most early theorists stressed rational perspective an d described organizations as purposeful and deliberate. These rational theories were: Taylor and Scientific Management Taylor and his colleagues emphasized that it was easy to evaluate individual workers’ tasks scientifically in aid of discovering the procedures, which junction hotel should use to maximize the organization’s output under minimum resources and energies. Although Taylor concentrated on people, changes in personal level highly resulted in alterations at the structural level (Scott p. 34). This is highly evident in, Junction hotel, which has much personnel hence some of them do not know their exact responsibilities. This theory has changed management roles since the roles of both workers and managers were under scientific investigation. Taylor’s point of view was an amalgam of social Darwinism, protestant, and a primary view of individual actions founded on economic incentives (Scott p. 35). The junction hotel should apply such theory in order to co me up with significant management of roles for both workers and managers in the hotel. By doing this, the workers will be able to complete their responsibilities at the right time hence attracting more employees. Administrative Theory (Fall) Administrative theory stressed management roles and tried to generate wide management principle that would act as rationalization guidelines of organizational activities (Scott p. 36). Whilst scientific management rationalized from â€Å"bottom up†, administrative theory focused on productivity advancements from â€Å"top down†.  

Workplace bullying in Japan as cultural phenomena Essay

Workplace bullying in Japan as cultural phenomena - Essay Example Workplace bullying is defined as repeated and health-threatening mistreatment that is humiliating, intimidating and threatening in a manner that interferes with full participation in work. The perpetrators desire to control the victim and bullies in the workplace select their victims and methods of bullying. Bullying at the workplace is a form of aggression and includes spreading of malicious rumours, gossip or physically attacking someone socially (Inceoglu, 2002). The topic is of great importance since bullying at workplace takes different forms such as undermining a person’s contribution at the workplace, threatening abuse, withholding necessary information, establishing unattainable deadlines, changing the work guidelines, intruding in to individual privacy, yelling, constant criticism, unwarranted punishments, assignment of unreasonable duties and tampering with individual personal belongings in order to intimidate the individual (McCarthy, 2001). Workplace bullying in Ja pan is a social problem that is linked to the current cultural phenomenon. Japanese culture is complex and multi-layered since it has been developing for the last a thousand years. Japanese people view the culture as a source of inspiration especially fashion, geisha traditional dancers and Samurai warriors wielding their two swords. Japanese business leaders perceive themselves as Samurai warriors and deal effectively with subordinates through bullying or issuing verbal commands that may be insulting. Social ranks and status in the society are clear and everyone is aware of each other’s age and status in the institution (Gordon, 1998). In some companies, the employees are issued with magazines that display the formal ages of each employee and ranking is used in various employment matters such as promotions, distribution of awards and recognition of superior performance (Jacobson, Hood & Buren, 2014, p 57). Japanese spontaneous sociability and nature of

Midterm- assignment Example | Topics and Well Written Essays - 500 words

Midterm- - Assignment Example The promotions received are determined by various things, i.e. personal characteristics, appearance, job performance and intellectual capacity. Promotions to higher level need to maintain an impression on the superiors with intellectual capacity and this intellectual capacity can only be communicated through communication that is done through report writing. Reports exist because business needs information in order to function. Every member or employee who is enrolled into a business, for instance workers and staff employees, have some relevant information regarding his or her job that needs to be communicated. The nature and requirements at different levels in business is different. At lower organizational levels the need for information is relatively low. Work assignments at higher levels require more information. Information is required for business from different aspects. For example, the supervisor needs to keep a record of the data on the output and quality of the production. The supervisor also needs to record the information on the competition, new production techniques; new equipment etc. to be specific information is required by every person inany business. In order to find the relationship of this need in report writing, it can be said that the reports would provide systematic information that is needful for the business because a business must have information in order to function

Definition of autism Essay Example | Topics and Well Written Essays - 1500 words

Definition of autism - Essay Example et al., 2004). Clinicians and researchers have achieved consensus on the validity of autism as a diagnostic category and many features central to its definition. It is somewhat surprising and very encouraging to note that, as greater consensus has been achieved on the definition of strictly defined autism, an interesting and helpful discussion on issues of broader phenotype or potential variants of autism has begun. Today, there is a broad agreement that autism is a developmental disorder, and autism and associated disorders in the spectrum represent the behavioural manifestations of underlying dysfunction in the functioning of the central nervous system (Minshew, N.J. and Williams, D.L., 2007). Within this, it can also be included that sustained educational and behavioural interventions are useful and constitute the core treatment of such condition (Klin, A., Jones, W., Schultz, R., Volkmar, F., and Cohen, D., 2002). In 1943, Kanner's seminal clinical description of 11 children with "autistic disturbances of affective contact" has endured till date. His description of autism was grounded in data and theory of child development. Children those are normal exhibit marked interest in social interaction from early in life (Kanner, L., 1946). Kanner suggested that early infantile autism is an inborn, constitutional disorder in which children are born lacking the typical motivation for social interac tion and affective comments. He used the model of inborn errors of metabolism to explain that individuals with autism are born without the biological preconditions for psychologically metabolizing the social world. The term autism was borrowed from Bleuler who first used autism to describe idiosyncratic, self-centered thinking (Bleuler, M., 1979). Kanner used this term to suggest that autistic children too live in their own world. It represents a failure of development and fantasy is impoverished if present at all (Kanner, L., 1951). In addition to the remarkable social failure, the one of the other features that may be present in such individuals is profound disturbance of communication to the extent that some of them may be mute (Nacewicz, B.M. et al., 2006). The language disturbance in others may be marked by echolalia and literalness as well as a fascinating difficulty with acquiring the use of the first person, personal pronoun, "I." These children, therefore, refer to themselves in the third person, "he" or by first name. Another intriguing feature is the children's unusual responses to intimate environment. This can be exemplified by unresponsiveness to parents, yet over-sensitiveness to the small changes in daily routine or simply environmental sounds. The three prime criteria enumerated by Kanner still hold good, and they are to date used to define autism. These are unusual social isolation, resistance to change, and dysfunction in communication (Landa, R.J., Holman, K.C., and Garrett-Mayer, E., 2007). It has now been recognised that parental behaviour as such plays no role in pathogenesis of autism. It is now known that children with autism are found in families of all social classes, and more recent data and rigorous research have failed to demonstrate association with social classes (Stone, W.L., McMahon,

Humanities- World Cultures (Week 3) Term Paper Example | Topics and Well Written Essays - 250 words

Humanities- World Cultures (Week 3) - Term Paper Example Various forms of Art that depict history, including war, have also been used for many centuries by various cultures. One of the world’s best examples of this is the Bayeux Tapestry, dubbed the world’s first comic book strip, which depicts the invasion of England by the Normans, led by William the Conqueror. Many times history is presented to the world by the victors of a conflict, and it is for this reason that it is very likely that the Bayeux tapestry was portrayed from the Norman perspective. There are many examples of this form of propaganda which is still being used today. For example, Ronald Maxwell’s God’s and Generals, which depicted the American Civil War from a Confederate soldier’s point of view, portrayed the Confederacy as God-fearing, morally sound, Christian people. The bias presented in the film is also evident by the fact that there are very few scenes that actually deal with the issue of slavery. Architecture is another example of religious expression in art form. The Chartres Cathedral, which was constructed during the 12th century, displays some of the greatest examples of stained glass windows in the world.

Emerging Market Firms Investing in Each Other's Home Essay

Emerging Market Firms Investing in Each Other's Home - Essay Example China is one example of a developing market that makes its investments in other developed economies and also provides market to the developed economies such as Germany and Britain. Another example of a developing economy that deals in foreign direct trade with other emerging markets is Brazil. Signing of world currency deals with developed countries as well as emerging economies have been witnessed in the recent past. Sauvant (2009) argues China for instance has signed such agreements with various countries such as Argentina, Russia, united Arabs emirates, India and South Africa. This was made with an aim of ensuring financial safety by creating a joint pool risk mitigation mechanism. Foreign direct entry among emerging markets and developed economies Firms within nations with emerging economy; must be protected from foreign firms from developed nations which have competitive advantage as realized in the above mentioned examples. These calls for trade among nations with emerging mark ets by regulating market entry by other firms. Ken-lchi (2005) emphasizes, for this to change, firms from developed nations must adopt different mechanisms for market penetration. This calls for trade among nations with emerging markets by regulating market entry by other firms. For this to change, firms from developed nations must adopt different mechanisms for market penetration. This calls for trade among nations with emerging markets by regulating market entry by other firms. For this to change, firms from developed nations must adopt different mechanisms for market penetration. Lack of such change would see unto it that firms in developing nations develop economically and enhance world-class competence. It is argued that China, for instance, would be a good example in offering alternatives which would have otherwise been sought for from developed nations Rugman (2012) argues, the support for this is the angle of perception of emerging markets as the crucial point o driving the economy owing to the fact that developing countries are growing in number. Scramble for resources creates more pressure hence expectations are made on the first mover longer steps over the emerging heroes. Competition will be realized among emerging markets in regions such as Middle East and Africa through their government. This ability of providing alternatives by developing nation’s blocks developed nations from accessing the markets. Emerging markets have recorded better growth Brazil, china and India are the best examples of emerging markets in the world today. Chinese are known for the increased production as well as large population which provide both affordable labor and market for products. As a matter of facts, developed economies target such emerging markets so as to have a two way mutual benefit among them. Germany has a history of industrial production that majors on steel work. According to Fayolle & Todotoy (2011), this becomes a raw material for the emerging ec onomies in the process of production so that the developed country, in this case Germany exports the product to the emerging economy such as china. India has also recorded an increase in production hence targeted by the developed economies such as Europe in terms of foreign trade. There are challenges that the new economies pose to developed economies in terms of economic strength. This may be evident between Europe and United States as developed economies as well as India, china and Brazil which are the strong emerging economies. Operating at relatively same level of financial ability becomes the driving force. The establishment of enterprises in other countries will follow the emergence of markets for the products which would come from either

Reward System in Educational Settings Essay Example for Free

Reward System in Educational Settings Essay The reward systems used in educational settings originates from psychology of behavior that specifically gives specific emphasis on promoting good discipline in educational settings. Education institutions are able to make significant differences in children’s behavior through setting out definite rules and stipulating sanctions and rewards for violating them. The fundamental nature of such systems is the idea that students can choose how to conduct themselves. Therefore, by rewarding and recognizing good behaviors whereas bad ones are punished, it is believed that students will aspire to choose good behaviors. A number of psychologists argue that in most cases education institutions focus on rectifying bad behaviors only rather than recognizing or reinforcing good behavior among students. They therefore criticize such an approach as being too basic because it eliminates the framework within which students’ conduct occurs and leaves total liability up on individual for their behavior. Although such criticizing arguments have been put forward, reward systems have been widely adopted in most education institutions especially primary and secondary schools. There are argued to impact positively on student’s behavior and performance as well as to teachers (Kohn, 1993). In regard to this, psychologists have explained the reward systems using a number of learning theories which relates the psychology and education disciplines. Learning is the means through which cognitive, emotional, and environment influences and experiences suitable for enhancing, acquiring, or making ones skills, knowledge, and values are brought together. Thus, the learning process puts emphasis on events that occur in the learning environment and this is explained by a number of learning theories. The learning theories clarify on how animals and people learn thus aiding us to understand the inherent complex learning process. All the learning theories which have been put forward by various psychologists are grouped into three categories: cognitive, behavior, constructivism and social-cognitive. Motivation of students is the basic necessity to guarantee success of any education enterprise. The dynamics of motivation can be explained as the types of academic and social goals which students brings into the classrooms, motivating elements of such goals, and the existing reward systems that together control the quantity and quality of learning as well as the will to keep on learning (Deci Ryan, 1986). Motivation has been categorized by psychologists into four groups: instrumental motivation, achievement motivation, intrinsic motivation, and social motivation. However, more than one type of motivation may occur to a student at a given time. Instrumental motivation as a type of motivation is exclusively extrinsic because students carry out tasks as they are influenced by probable final consequences such as the probability of acquiring material rewards or keeping away from a reprimand. Therefore, in cases of such motivation, teachers are supposed to ensure that tasks being performed are put in contexts that students perceive pleasant. Social motivation argues that students execute tasks in order to please people they admire, respect or whose views are of significance to them. In regard to this social motivation, rewards have no significance although tangible as well as immaterial. Besides, rewards are correlated expressly to the perceived association between the learners and the teachers or instructors whose underpinning activities such as praise and approval are considered important. Achievement motivation involves students learning and hoping for success and it has three components: cognitive drive –whereby students attempts to satisfy identified ‘need to know’; self enhancement –learners satisfy the call for self-respect; affiliation –learners seek support from others; Intrinsic motivation is characterized by the absence of external rewards hence tasks are undertaken for the pleasure and satisfaction they bring the students. It appears to be fundamental to high quality participation in an undertaking as well as being self-terminating and self-maintaining. Curiosity and a desire to meet challenges may characterize the learning of students motivated in this style (Ardord, 2006). To clearly explain the system of reward in schools, a few theories are explained. Maslow’s theory of motivation focuses on a person’s striving for excellence and he explained this through ‘hierarchy of human needs’. Maslow pointed out that every human being is a ‘wanting animal’ hence he supposed that an individual’s behavior at any given time is dominated by his/her needs that have largest potency. As lower level psychological needs of a person are sufficiently achieved, the needs for higher level psychological needs come in handy. In the context of education, Maslow’s theory argues that students cannot and/or are not willing to learn or put more effort if their basic needs are not provided or met. Therefore, students require psychological needs to be met alongside their safety feelings and a sense of belonging. Such leads to spontaneous sense as learners who are hungry will not concentrate, nor will learners who are bullied and neither will learners who perceive to be outsiders and without friends. According to Maslow, learners are motivated if they are self-actualized and any hindrances affects learning environment considerably (Ibid, 2006). Skinner came up with a theoretical framework referred to as operant conditioning to explain that human beings cannot learn best without being provided or promised with a reward. He argued that human beings like every other organisms makes a direct and anticipated response –operant- when they are aware that there is a reward. Therefore, in cases where a response happens and emphasized, there is increased probability that it will happen again when a comparable stimulus is present. Hence, skinner argued that student’s tend to learn best when behavioral change occurs. In his experiment, Skinner had come up with learning units referred to as ‘contingencies of reinforcement’. These are sequences within which behaviors or responses are followed by reinforcing stimuli. The outstanding learning principle in this theory states that behaviors/responses are naturally produced without bring out stimuli. Besides, such behaviors are operants as their production can be instrumental in punishing or reinforcing consequences among students. Therefore, this theory is useful in understanding a person’s learning, social interaction, and human development via making open a number of normal law relationships created into human life by God. Thus, the theory concurs on the necessity to have a system of reward in schools based on students’ behavior which seems notable (Tayo, 2001). Penn in his work argues that in self-worth theory, motivation is the one of most vital factors to determine the attitude of learners as well as their behavior as a sense of self-respect. The answer to self-worth is learner’s perception of his/her own capability particularly when compared to others. If an imaginary hierarchy of self-worth is drawn, learners will tend to give ability the first priority, followed by effort and performance. The theory as claimed can be explained by equating both worth and ability. The author quoting other psychologists writes that applying personal goal-setting arrangements (gives learners a chance to define their own criteria for success), outcome-based evaluation and instruction (slower learning students experience success without competing with faster learning students), attribution learning (facilitates uninterested learners to consider failure being the lack of effort instead of ability), and cooperative learning activities (facilitates learners in understanding that individual effort contributes to personal as well as group goals) removes barriers to achieving motivation and redirects learners’ behavior far away from letdown-avoiding activities in educational settings (Penn, 2002). Extrinsic and intrinsic motivation theories differ only in terms of goals that different student have. Intrinsic motivation argues that students study just for the sake. The learners derive personal satisfaction as well as learning new ideas from learning and regard the m as a reward (Anti-Bullying Network, 2000). On the other hand, extrinsically motivated students are influenced by outside influences for instance praise from peer and teacher, attaining good grades, and/or any other form of reinforcement a peer or teacher can offer. Some people have argued that intrinsically motivated students tend to learn more as compared to those who are extrinsically motivated. Reason may be because intrinsically motivated learners as well extrinsically motivated. However, extrinsically motivated learners are seldom motivated intrinsically. Extrinsic rewards encompasses use of tangible rewards such as payments and gifts so as to keep learners interested in particular subjects as well as motivate them (Deci Ryan, 2002). Intrinsic motivation has for a long time been criticized for its unconstructive influence on intrinsic motivation as well as being claimed to have a short term effect. In regard to intrinsic motivation, learners have the feelings of self-determination, pride, and competence. However, students are highly interested in activities when they are motivated by gifts, prizes, grades, or money as long as they received anticipated reward. Therefore, with time a student who receives a reward for their performance in a particular subject, they gradually become interested in it and develop intrinsic motivation. A big difference exists between tangible rewards (candy, money, certificates) and verbal rewards (praise, positive feedback). Tangible rewards influences intrinsic motivation negatively and destroy self-regulation (Wilson Corpus, 2001). Conclusion Although the reward system has for a long time been applied in schools, a couple of issues need to be addressed if it will remain effective. Teachers and parents needs to be consistent in using rewards and sanctions, the reward system whether individual, cooperative or competitive should be monitored on regular basis, keeping-off from rewards that have monetary worth or those that indicates that school tasks are of no value, and making certain that rewards are deserved and genuine rather than being routine (Anti-Bullying Network, 2000). Whichever the reward system an education institution adopts, a positive culture in schools is established reason being efforts and good behaviors of the pupils are recognized. Thus, most students tend to put more effort so as to achieve established rewards and as a result the overall performance of school improves.

Exchange as a Basis of Social Life

Exchange as a Basis of Social Life Why, and how, have anthropologists argued that exchange is the basis of social life? Exchange is an act of giving something to somebody or doing something for somebody and receiving something in return.[1] According to the Encyclopaedia of Social and Cultural Anthropology, exchange is the transfer of things between social and actors.[2] Things can be human or animal, material or immaterial, words or things. The actors can be individuals, groups, or being such as gods and spirits.[3] In wide interpretation, trade and barter are examples of some kinds of exchange. In this essay, I assume that the gift-exchange is the basis of social life. From the 18th and 19th century, anthropologists became more interested in the topic of exchange. In the past century, there is a growing concern on the complex societies, i.e. the West. It leads to a more critical investigation for the anthropologists on exchange in West, when anthropologists such as Gregory discovered that exchange is linked to economy. By now, exchange is a universal activity. Moreover, anthropologists realized exchange is central to all peoples lives. Mauss stated that, exchange is a total social phenomenon.[4] In the following, I will discuss why anthropologists argued that exchange is the basis of social life. Exchange and Reciprocity The ideological pure gift is very rare in primitive societies. In most of the time, it is a moral to return the gift to the giver. Parry (1986) take the point that the gift is always am Indian gift, which means an equivalent term in return is required.[5] Parry took this point from his investigation on the gift contains some part of the spiritual essence of the donor. And this constrains the recipient to make a return.[6] Thus, we can see that the exchange is related to reciprocity. According to Mauss, gift are the primitive analogue if the social contract, then they clearly carry a social load which in centralized politics is assumed by the state.[7] This is the reason why anthropologists argue exchange is the basis of social life. Let us take the classic example of gift-exchange: the Maori hau. Logically, the hau explains why gifts are repaid. Mauss traces different forms of exchange in order to make out the relation between exchange and reciprocity with the social life. In this essay I will trace different form if In this essay, I will discuss about different types of gift-exchange in different types of society, ranging from tribal societies, i.e. the Trobrainders and Kabre, to the modern daily lives exchange, i.e. Christmas gift exchange and garage sale exchange. These rituals shows how anthropologist argue the statement with the observation or fieldwork The Trobrianders Kula During Malinowskis fieldwork in Trobriand, he clearly examined the essentials of the Kula for Trobrianders and other Melanesia islands in Papua New Guinea. The Kula is a form of intertribal exchange between the Melanesia Islands. It is different from the Oceanic form of exchange. The Kula is based primarily upon the circulation of two articles of high values, but of no real use. The gifts are carried in a circular route which covers miles away over many communities inhabiting a wide ring of islands. All the main transaction in the Kula is public and ceremonial, and it is carried out according to its definite rules. One of the major characteristics of the Kula exchange is that the two items are travelling in different directions: the necklaces (soulava) travel in the direction of clock hand; while the armshells (mwali) in opposite direction. According to Malinowski (1920), both articles never stop for any length of time in the hands of any owner; they constantly move, constantly meeti ng and being exchanged.[8] Kula is essential for the Melanesian because of its sociological function. Sociologically, Kula creates partnership for a lifelong relationship. It is based on a fixed and permanent partnership and relationship which binds people from different tribes into couple some thousands of individuals. As Malinowski observed, the partnership implies various mutual duties and privileges, and constitutes a type of inter-tribal relationship on an enormous scale.[9] Malinowski stated that two Kula partners have to Kula with one another and exchange other incidentally; they behave as friends, and have a number of mutual duties and obligations, which vary with the distance between their villages and with their reciprocal status.[10] He also mentioned that the Kula partnership is one of the special bonds which unite two men into one o the standing relations of mutual exchange of gifts and services so characteristics of these natives.[11] There is a network of relationships in the Kula ring which men know and exchange with each other. In some situation, they will meet in the inter-tribal meetings. Thus, Malinowski pointed out that men are bound together by one common passion for Kula exchange and also, many minor ties and interests. What keeps the relationship long-lasting is the reciprocity of gifts to the giver in the Kula ring. It is expected that the receiver will give back a fair and full value of gift to the giver. Similarly, a fine article must be replaced by the one with equivalent value, not by several minor ones. Gift economy in Kabre In Exchange (1999), Piot explore the understandings about persons, hierarchy and agency that operate in the exchange context in the Kabre society. Same as the Trobrianders, people in Kabre are expected receiver will have to return the gift to the giver. In society, especially in Piots situation he could not understand French when he first came to Kabre gift-giving is a kind of surrogate language. From his experience, Piot suggested that the gifts were attempts to communicate, to bridge the gap between us, to express relationship.[12] He realized that the gift-giving is a type of moral inquiry, which is an interrogation of the other.[13] Despite, there are various forms for exchange in the Kabre society, all forms of exchange are motivated by the practical need of one of the parties.[14] There is a desure to establish social relations behind the Kabre exchange. They are likely to begin ?kp?nt?r? with another person through exchange. Thus, all the exchange in Kabre society is to do with relationships as with utilities. Moreover, through further exchange of items with greater value or quantity, the relationship grows. It is a great sign of friendship. Sometimes, when the relationship of two families grows bigger, there will be an arrangement of marriage so that the relationship will not be broken. If this works, then there will be another marriage in the next generation and so on. As a result, the relationship between the two families will last forever. Economically, Piot argued that the Kabre gift exchange system generates the increased involvement in the wage and commodity sector. He pointed out that by allowing labours to participate more fully in the gift-giving by making money, social relations will then be expanded.[15] Piot take the point that persons use things to gain access to persons rather than that they use persons to gain access to thing.[16] Piot also claims that any gift given establishes a relationship between two persons, hence giving is always tied up with control, power and the appropriation of an other.[17] In the Kabre, exchange does not only form friendships. In the meantime, it forms another basis of social life the formation of marriage, kinship groups and affinity. Gifts Exchange in Christmas Now, let us look at how modern anthropologists argued the statement through their observation of peoples behaviour in the West, capitalist societies. The exchange of gifts is very popular in many parts of the world. In the following, I take in the account that exchange takes place with a generalized medium of exchange, i.e. money. Thus, in order to facilitate trade, barter give way away to selling (C-M), and then the money is then used to buy other commodities (M-C).[18] Carrier examined peoples mindset on exchanging Christmas gifts and he found that it does related to their social relations. The heightening sociality of Christmas highlights the importance of exchanging of gifts, and it reflected peoples Christmas shopping behaviour to the basis of social life. According to Caplow, parents and young children exchange gifts in an unequal value and quantity. In most of the time, the gifts from the parents to their young children have more in quantity and also in value. There is no expe ctation of equivalent return in this relationship. Whereas, for gift exchange between the spouses, there will be an active concern on the gifts are approximate equal in value.[19] Carrier (1993:58) suggested that it is more likely for people to show their affection to their family within a close kin by exchanging Christmas present. As the relationship become more distant, people are less likely to show their affectionate. Rather, it would be a more alienated giving and marks the relations which will be fairly impersonal utilitarian.[20] As mentioned above, apart from exchanging Christmas gifts in Christmas Eves feast, shopping for Christmas gifts is also a highlight for the exchange and it also maintain the basis of social life. Carrier (1993:63) takes the point that the range of social relations will be greater than normal when purchasing for the items. He suggested that this would be an annual ritual to convert commodities into gifts. This ritual allows us to celebrate and recreate personal relations with the anonymous objects available to us.[21] Moreover, Boxing Day allows merchants to celebrate the hierarchical relations outside their households. Seemingly, Christmas is just exchanging Christmas gifts between family and friends. In reality, through exchanging Christmas gifts, it celebrates relations with family, and also those who are distinct from relation in the outside world. Carrier (1993:69) take the point that Christmas is also a reunion of families sanctified and chastened by tender memories and associat ions; and let the social intercourse of friends, with pleasant reminiscence, renew the ties if affection and strengthen the bonds of kindly feeling.[22] Garage sales is American society Some anthropologists look at peoples daily life activities in the West to argue that exchange is the basis of social life. Similar to Christmas gifts exchange, most of the commodity exchange in the West belongs to the category sell-in-order-to-buy in peasant markets which money act as the generalize medium of exchange, i.e. C-M-C. Herrmann looked at the US garage sale exchange culture in order to investigate the social relationship built between the buyer and seller. Herrmann (1997:915) suggested that garage sale exchange allows the neighbours in the neighbourhood come to know each other, as the neighbors are attracted by informal open invitation to the public to stop by and look over the garage sale goods.[23] Moreover, Herrmann (1997:915) also take the point that some neighbourhood garage sale takes place in order to attract the neighbor out of their houses for social interaction. Furthermore, exchange in garage gift generates gift relations. According to Stone Age Economics by Sha lins (1974: 193-194; Gregory (1992:926)), exchange between family members or close kins usually belongs to generalized reciprocity. Thus, in garage sale exchange, the items are given to generalize others. By giving inexpensive garage as a gift, personal networks will then be solidified. In this case, social relations value more than profits. Aside from bringing social interaction and relationships, garage sale ethos also includes friendliness and social egalitarian. Garage sale provides the participants the sense of justice. Low price is the hallmark of garage sales exchange. Thus, a just price for an object is constructed through exchange.[24] Besides, Herrmann (1997:915) bring up the point that social inequalities are reproduced in the garage sales exchange, but it this social inequalities will be muted by the face-to-face egalitarian. This is because social markers such as gender, status, races could act as the factor affecting the transaction of garage sale exchange.[25] Thus, we can see that exchange shows the social basis of the society. Bibliography Carrier, James (1993): The Rituals of Christmas Giving, in Unwrapping Christmas by Miller, D. (ed), Oxford, United kingdom: Clarendon Press, pp.55-74 Carrier, James (1996): Exchange, in Encyclopaedia of Social and Cultural Anthropology by Barnard, Alan and Spencer, Jonathan (1996), USA and Canada: Routledge, pp. 218-221 Drucker, Philip: The Potlatch, in Tribal and Peasant Economies by Dalton, George (1967), Austin, USA: University of Texas Press, pp.481-493 Gregory, C.A.: Exchange and Reciprocity, in Comparison Encyclopaedia to Anthropology by Ingold, Tim (1994), London, United Kingdom: Routledge, pp. 911-939 Herrman, Gretchen M. (1997): Gift or Commodity: What Changes Hands in the U.S. Garage Sale?, American Ethnologist Vol. 24. No. 4 (Nov., 1997), Blackwell Publishing, pp.910-930 Hornby, A S (2000): Exchange, in Oxford Advance Learners Dictionary of Current English, New York, USA: Oxford University Press, pp. 433 Malinowski, Brownislaw (1920): Kula: The Circulating Exchange of Valuables in the Archipelagos of Eastern New Guinea, in Tribal and Peasant Economics by Dalton George (1967), Austin, USA: University of Texas Press, pp. 171-184 Malinowski, Brownislaw (1920): Tribal Economics in the Trobriands, in Tribal and Peasant Economies by Dalton George (1967), Austin, USA: University of Texas Press, pp.185-223 Malinowski, Brownislaw (1922): The essentials of the Kula, in Argonauts of the Western Pacific, London, United Kingfom: Routledge, pp. 81-104 Mauss, Marcel (1970) [1954]: The Gift: Forms and Functions of Exchange in Archaic Societies, London, United Kingdom: Cohen West Parry, Jonathan (1986): The Gift. The Indian Gift and the Indian Gift', in Royal Anthropological Institute of Great Britain and Ireland Vol. 21. No. 3 (Sept., 1986), pp. 453-473 Piot, Charles (1999): Exchange, in Remotely global: village modernity in West Africa, Chicago, USA: University of Chicago Press, pp. 52-75 Shalins, Marshall (1974): The Spirit of the Gift, in Stone Age Economics, Chicago, USA: Aldine-Atherton, pp.149-183 Shalins, Marshall (1974): On the Sociology of Primitive Exchange, in Stone Age Economics, Chicago, USA: Aldine-Atherton, pp. 185-275 Weiner, Annette B. (1988): Introduction, in The Trobrainders of Papua New Guinea, New York, USA: Harcourt Brace Jovanovich College Publication, pp. 1-15 Weiner, Annette B. (1988): The Trobrainders: Past and Present, in The Trobrainders of Papua New Guinea, New York, USA: Harcourt Brace Jovanovich College Publication, pp. 17-31 Weiner, Annette B. (1988): Marriage and the Politics of Yams, in The Trobrainders of Papua New Guinea, New York, USA: Harcourt Brace Jovanovich College Publication, pp. 81-96 Weiner, Annette B. (1988): Men Working for Women, in The Trobrainders of Papua New Guinea, New York, USA: Harcourt Brace Jovanovich College Publication, pp. 111-123 Weiner, Annette B. (1988): Kula and the Search for Fame, in The Trobrainders of Papua New Guinea, New York, USA: Harcourt Brace Jovanovich College Publication, pp. 139-157 Hornby (2000:433) Carrier (1996:218) Carrier (1996:218) Gregory (1994:911) Parry (1986:454) Parry (1986:456) Parry (1986:467) Malinowski (1920) Malinowski (1922:85) Malinowski (1922:91) Malinowski (1922:91) Piot (1999:54) Piot (1999:54) Piot (1999:56) Piot (1999:73) Piot (1999:62) Piot (1999:70) Gregory (1992:912) It is one of the categories of production-of-exchange, i.e. commodity exchange Karl Marx developed. This type of commodity of exchange is identified as selling-in-order-to-buy in the peasant markets. Carrier (1993:55) Carrier(1993:58) Carrier (1993:63) Carrier (1993:96) Herrmann (1997:915) Herrmann (1997:916) Herrmann (1997:915)