Capital Markets Midterm Questions and Solutions Essay Example for Free

Capital Markets Midterm Questions and Solutions Essay 2 percent for each question 1. Liquidity is the ease with which an asset can be exchanged for money 2. The concept of adverse selection helps to explain why the ï ¬ nancial system is heavily regulated 3. The Fed can inï ¬â€šuence the fed fund interest rate by selling T-bills, which ____reserves, thereby ____the federal fund rate. removes, raising 4. Standard Repos are very low risk loans 5. A 4-year bond pays an annual coupon of 3.5%. If the interest rate equals 2.75% per year, how much do you have to pay to buy the equivalent of a $1,000,000 bond face value? $10 0280 000 6. Unanticipated deï ¬â€šation implies a a decline in net worth, as price levels fall while debt burden remains unchanged. 7. What is the annualized discount rate on a Treasury bill that you purchase for $9,900 and that will mature in 91 days for $10,000? 3.96% 8. Moral hazard is a problem arising from only A and B of the above 9. A discount loan by the Fed to a bank causes a(n) ____ in reserves in the banking system and a(n) ____ in the monetary base. increase; increase 10. The standard deï ¬ nition of the shadow banking systemt includes money market funds, hedge funds, and pools of securitized assets Comprehensive Questions (30 percent) 6 percent for each question 1) The ï ¬ nancial system is important because it channels funds, reduces asymmetric information problems, provides an eï ¬Æ'cient payment system, and helps to manage risk. Explain the remaining functions that the ï ¬ nancial system performs. Besides these functions, the ï ¬ nancial system provides ways for invididuals to pool their resources. For instance, some investment projects generate a positive NPV, but require a large initial down payment. Dividing ownership into many individual shares provides an eï ¬Æ'cient way to pool individual resources in order to ï ¬ nance these investment projects. The ï ¬ nancial system also provides liquidity to market participants. This is important because corporations and individuals do not have the same time-horizon. Therefore, it would be very diï ¬Æ'cult for corporations to get long-term sources of funding without these liquidity services. Finally, the ï ¬ nancial system provides important information to ï ¬ nancial investors, corporate managers, and political leaders. This information is critical to improve the decision-making process. For instance, managers may use the information observed in the ï ¬ nancial system to compute the NPV of investment projects. 2) One of your friend tells you: The main function of the ï ¬ nancial system is to channel funds from lenders to borrowers. This function can be performed interchangeably by capital markets or ï ¬ nancial institutions. Do you agree? Why? It is true that both capital markets and ï ¬ nancial institutions are useful in channeling funds from lenders to borrowers. However, they diï ¬â‚¬er in a fundamental way. Contrary to capital markets, ï ¬ nancial institutions are extremely good at dealing with asymmetric information problems. This is due to the private nature of their activities. By avoiding free-riding, banks can bare the substantial costs of screening and monitoring borrowers. Therefore, corporations for which asymmetric information problems are substantial (e.g., small corporations), rely heavily on banks’ funding. If banks cut lending, as it was the case during the recent crisis, these companies do not have the option of receiving funding from capital makets, and must reduce their activities. Therefore, some of the functions performed by banks cannot be performed interchangeably by capital markets. 3) What is Quantitative Easing and how does it diï ¬â‚¬er from the standard tool used by the Fed to expand the monetary base? What was the stated purpose of Quantitative Easing? Quantitative Easing refers to the central bank’s policy of buying long-term securities, speciï ¬ cally mortgage-backed securities and 10—year Treasury bonds. This is diï ¬â‚¬erent from the standard approach used by the Fed. Traditionally, the Fed expands the monetary base by implementing an open-market purchase of T-bills. The stated purpose of Quantitative Easing was to decrease the yield of these long-term securities. From the viewpoint of borrowers, this decrease would help them get lower reï ¬ nancing conditions, thus easing pressure in these markets. From the viewpoint of lenders, this decrease in yield may render these securities less attractive. Therefore, lenders may be willing to start buying risky assets again, thus improving economic conditions. 4) One student argues: If more customers want to borrow funds at the prevailing interest rate, a ï ¬ nancial institution can easily increase its proï ¬ ts by raising interest rates on its loan. Is this statement true, false, uncertain? Explain your answer. The situation faced by the bank is the following: it has limited resources and sees a lot of clients willing to borrow money, creating excess demand. The statement above is uncertain. A priori, we might believe that if the bank increases the interest rate, it is able to eliminate this excess demand and generate additional proï ¬ ts (there would be an increase in both the proï ¬ t per loan and the quantity of loans). However, this reasoning assumes that the credit quality of the borrowers stays constant. This may not be true because raising the interest rate also increases adverse selection. To illustrate, consider the used-car market. If buyers observe an increase in the number of people interested in selling their cars, they may want to oï ¬â‚¬er a lower price. But a lower price gives incentive to the sellers of good cars to leave the market, leaving only sellers of lemons. As a result, the average quality of the cars purchased by buyers will decrease. A large part of the excess demand observed by the bank is driven by poor credit ï ¬ rms. After increasing the interest rate, the bank observes that these ï ¬ rms still agree to borrow, i.e., their poor credit quality should be charged an even higher interest rate. On the contrary, this higer interest rate may discourage good ï ¬ rms from borrowing from this bank because the loan becomes too expensive. As a result, the relative importance of bad ï ¬ rms over good ones increases, leading to a decrease in the average ï ¬ rm quality. This decrease in quality may lead to higher default rates and to a decrease in the bank’s proï ¬ t. 5) What is meant by a ï ¬â€šight to safety/liquidity? When does it occur? How can it trigger these negative spirals on the value of the banks’ balance sheet? A ï ¬â€šight to safety/liquidity commonly describes the behaviour of investors when they attempt to sell the risky/illiquid assets they hold in their portfolio and move towards safe/liquid assets. This ï ¬â€šight typically occurs in times of crisis when the investors’ willingness to take risks decreases signiï ¬ cantly. Since banks mostly hold risky and illiquid assets, these ï ¬â€šights to safety have a strong impact on their asset value. As their capital gets curtailed, their risk proï ¬ le increases, making investors and depositors more worried about the potential losses they may incur. Because these lenders give money on a short-term basis, they can quickly go to the bank and ask for their money back. Then, banks have to scramble for liquidity and sell their risky/illiquid assets. When many banks try to sell simultaneously, the price of these assets will go further down. For instance, suppose that in normal times, the bank would have to sell 15% of its assets to reimburse lenders. As many institutions sell simultaneously, the bank has to sell more than 15%. Observing these additional losses, investors and depositors may want to further reduce the amount they are willing to lend, aggravating the liquidity issues face by banks. Overall, these eï ¬â‚¬ects reinforce each other, creating a spiraling eï ¬â‚¬ect. Understanding Interest Rates (30 percent) 15 percent for question 1, 10 for question 2, and 5 for question 3 1) In February 2010, a column in the Wall Street Journal warns: Be wary of long-term bonds The risk of higher expected inï ¬â€šation is in due course. Longer-term bonds are the most at risk. Using the supply and demand analysis studied in class, plot a graph that clearly explains the eï ¬â‚¬ect of an increase in expected inï ¬â€šation on the bond price. Why are longer-term bonds more at risk? Explain whether your analysis would be diï ¬â‚¬erent if you were to examine the impact on the price of TIPS. Since the coupon rate paid by US government bonds is ï ¬ xed in nominal terms, news of higher expected inï ¬â€šation leads to a decrease in the real rate of return oï ¬â‚¬ered by these bonds. As a result, the demand curve moves to the left as investors want to invest their money in securities with better return prospects. In addition, the supply curve moves to the right as corporations can borrow at lower costs in real terms. Because of these two shifts, we observe a large excess supply of bonds at the initial interest level. This excess supply will lead to a decrease in the bond price and a increase in the interest rate until the new equilibrium is reached. This eï ¬â‚¬ect, called the Fisher eï ¬â‚¬ect, is shown in the graph below: The eï ¬â‚¬ect is likely to be stronger for long-term bonds because investors are stuck with ï ¬ xed nominal payments for a long-time period. As a result, the only way to be compensated for higher inï ¬â€šation during many years is to buy the bond at a suï ¬Æ'ciently low price today. Intuitively, we can capture this price sensitivity using duration, as we know that the duration of a long-term bond is above that of a short-term bond. The analysis would be completely diï ¬â‚¬erent for TIPS because their coupon payments adjust for changes in inï ¬â€šation. As a result, any news of future inï ¬â€šation simply means that the future coupon payments in nominal terms will be higher. As a result, the price is not sensitive to changes in expected inï ¬â€šation. 2) In the Financial Times in February 2011, Professor Siegel from the Wharton School talks about the decline in the real yield of TIPS: Recently, the yields on these bonds have collapsed to levels that would have been uninimaginable just a few years ago. Last October, the real yield on the US 10-year TIPS plunged to 36 basis points. Professor Siegel argues that an important factor driving this result is the increase in inï ¬â€šation risk. Why do US investors currently perceive that inï ¬â€šation risk is higher than usual? Explain why this increase in inï ¬â€šation risk can lead to (i) an increase in the demand for TIPS relative to bonds; and (ii) a decrease in the TIPS interest rate. There are two sources of concerns regarding future inï ¬â€šation. First, the central bank has greatly expanded its monetary base during the recent ï ¬ nancial crisis—at the end of 2009, its value was close to $2 trillion. For the moment, banks are not aggressively lending, implying that the growth rate of the monetary base is somewhat disconnected from that of the money supply. But failure from the Fed to reduce the monetary base as lending activity resumes may lead to higher inï ¬â€šation. Second, the ï ¬ scal position of the US government has deteriorated substantially over the past few years, leading to a downgrade of the credit rating attached to its bonds. If the future growth rate in the economy is not suï ¬Æ'ciently high and if the US government is not able to reduce deï ¬ cits, it may have no option but inï ¬â€šate the debt away. This will of course lead to higher inï ¬â€šation. Overall, these two issues create important uncertainty about the future path of inï ¬â€šation. Contrary to bonds, TIPS are protected against inï ¬â€šation. If there is higher inï ¬â€šation risk, bonds become riskier relative to TIPS. Using our supply and demand framework, the demand for bonds moves to the left, while the demand for TIPS moves to the right. At the initial price, there is an excess demand for TIPS, driving the TIPS price up and its interest rate down, consistent with Professor Siegel’s arguments. 3) Professor Siegel also argues that: As economic growth recovers and real rates rise, the price of TIPS will fall. Can you ï ¬ nd a simple explanation of this statement based on our supply and demand framework? Economic growth means that the business cycle is in an expanding phase. In this case, we can rely on the relation between business cycle expansions and the interest rate seen in class. First, the demand curve for bonds move to the right because of the wealth eï ¬â‚¬ect, as people have more money to invest in the capital market (bonds, stocks,). On the supply side, business cycle expansions are related to an increase in the ï ¬ rms’ expected proï ¬ tability. As a result, the supply curve moves to the right. Based on empirical evidence, the move of the supply curve tends to be more important than the one observed for the demand. At the initial level of interest rate, there is an excess supply, leading to an decrease in bond price, and an increase in the interest rate. This is consistent with the yield reaction discussed by Professor Siegel. Bond Market (20 percent) 5 percent for each question Consider the following bonds: Annual interest rate Maturity Annual coupon Price Duration Bond X 5% 8 years 3% 87.1 7.2 Bond Y 8% 3 years 3% 87.1 ? 1) One of your friends tells you: the fact that the price of these two bonds is the same is not consistent with theory. Without making any computation, explain whether you agree with your friend. Your friend is not right. These two bonds are both quoted below par value, because their respective yield to maturity is lower than the coupon rate. If these two bonds had the same maturity, the price of bond Y should be lower than the price of bond X because investors require a higher interest rate to hold bond Y. However, the maturity of bond Y is lower. Although the annual diï ¬â‚¬erential between the interest rate and the coupon rate is higher for bond Y, this diï ¬â‚¬erential has to be given during 3 years only. For bond X, the annual diï ¬â‚¬erential between the interest rate and the coupon rate is lower, but it has to be given during 8 years. In our case, these two eï ¬â‚¬ects (diï ¬â‚¬erent ratings and diï ¬â‚¬erent maturities) oï ¬â‚¬set each other and the two prices are exactly the same. The information shown in the table is therefore perfectly consistent with theory. 2) Compute the duration of bond Y and compare it with that of bond X. Is the diï ¬â‚¬erence consistent with theory?

Environmental Impacts By Mining Activities Environmental Sciences Essay

Environmental Impacts By Mining Activities Environmental Sciences Essay Mining and its allied activities have taken big strikes during the last century contributing significant infrastructure development and raising the living standards of mankind. However, they have also brought in their wake, degeneration and degradation of natural resources, pollution, health risk and socio-ecological instabilities. Bundelkhand region, occupying almost 71818km2 in the central planes of India, is known for its rich deposits of pyrophyllite, moram, salt peter, granite, diasporas, sand, etc. Currently, there are around 325 active mining sites in Jhansi district alone. Deforestation, dust generation, water, air and noise pollution and resource depletion are common hazards associated with opencast mining widely prevalent in this region. The present paper attempts to reveal the base line environmental quality and socio-economic setting in and around such mining sites with special reference to the effects on the air, water, changes of land use pattern and occupational health effects of mine workers etc. It also attempts to provide a framework for management strategies to improve the environmental conditions in the mining sites and its adjoining environments. The geographical location of Bundelkhand regions is such that it acted as gateway between north and south India. Administratively, it covers seven district of Uttar Pradesh. Mining and exploitation of mineral resources generally have a considerable impact on the land, water, air, and biological resources as well as socio-economic setting of the local population. Its foci are the environmental issues being confronted by the surface mining industries of Jhansi.The magnitude of impact depends on the methods, scale and concentration of mining activities, and the geological and geomorphological setting (Ghose and Majee 2001). In India the national ambient air quality standard (NAAQS) was formulated in 1994 to assess and compare the air pollution level for different areas (CPCB 1998). Opencast mining, widely prevalent in the Bundelkhand region, though cheaper are known to have more environmental consequences. In opencast mining a massive overburden will have to be removed for the exploitat ion of the various deposits. This will require excavators, transporters, loaders, conveyor belts etc., resulting into various environmental problems. Environmental impacts of mining operation at individual site may be local phenomena, but numerous mining sites clustered at a particular area may eventually led to environmental problems of larger magnitude. Large scale opencast mining operations in the study area disturb the land by directly removing mine wastes during excavation and concurrently dumping it in adjacent areas. Every mine, big or small, operating or new has to obtain environmental clearance from the Govt. of India (Ghose 1991). Jacko (1983) has given estimates of fugitive dust from some mining operations. Wind blown particulate matters of loose mine spoils and dust generation from crushers and excavation sites may affect ambient air quality in the mine and adjoin areas. Air quality status in Indian environment is dominated by suspended particulate matter (SPM) causing g reat concern to environmental planners (Ravindra 1991). Noise pollution, especially which due to blasting, might be reduced by strict adherence to noise emission standards (McClean 1992). Water resources are particularly vulnerable to degradation even if drainage is controlled and sediments pollution reduced. Rain and drainage water which may affect the plants, animals and human populations. Groundwater problems may be particularly troublesome in the semi-arid region of Bundelkhand since, water is a scarce resource and people rely groundwater is very difficult and expensive. 2 Methods Field surveys were carried out in some selected mine areas (Figure. 1) in Jhansi district to collect relevant information. Data and literature pertaining to the mineral deposits in the region was gathered from various sources. The information related to the status of health and socio-economic impacts were extracted by using structured questionnaires. The respondents include randomly selected mine workers and head of families residing in mine areas. The ambient air quality assessments were carried out in Gora Machiya granite mine area. High volume air samplers (HVS Envirotech Ltd., New Delhi) were used with an average flow rate between 1.1 1.3 m3 m-1. The air samplers were kept at a height of 6m. Sampling was done for 24 h in 8 h intervals. SPM and RSPM were computed after weighing the glass fibre filter paper (Schleicher and Schà ¼ll, Germany) before and after sampling. Analyses of water quality (APHA 2005) were done by collecting ground water from hand pumps, ponds samples from in and around mining area during pre-monsoon, monsoon and post-monsoon. The hand pumps were operated 10 minutes before collecting the samples. Samples were collected in clean polythene bottles having air tight stoppers. Information pertaining to the health effects of granite mining on the mine workers and the local residents in the nearby villages were survey with the help of a structured Questionnaire. The information collected include, respiratory, eye, hearing loss, skin, accident and others. Various informal interviews with miners, mining officials, government officials, and local community members (around the source of air pollution) were conducted during the study period. 3 Result and discussion Mining in Bundelkhand region are mainly carried out by opencast extraction method. Open cast mining involves the removal of overburden including the valuable topsoil and plus the natural vegetative cover to meet the ore deposits. These activities are associated with harmful effects to the local environment. Mining activities are carried out in various stages, each of them involving specific environmental impacts. Broadly speaking, these stages are: deposit prospecting and exploration, mine development and preparation, mine exploitation, and treatment of the minerals obtained at the respective installations with the aim of obtaining marketable products.The emerging environmental hazards associated with open cast mining practices are many but the major problems may be summarized as follows: 3.1 Air Pollution Opencast mining operation creates enormous quantity of dust of various sizes which passes into transportation and disperse significant amount of suspended particulate matters (SPM) and gaseous pollutants in to the atmosphere. These pollutants not only affect the mine workers but also affect the nearby populations, agricultural crops and livestock. During the field study it has been observe that RSPM and SPM is the major source of emission from opencast granite mining in Jhansi. The minimum and maximum value of RSPM and SPM is 155 µg m-3 to 234 µg m-3; and 393 µg m-3 to 541 µg m-3 respectively. The extent of harmful affects depends largely on meteorological conditions prevailing in the region. Depending on the size suspended particulate matter may cause (a) Respiratory disorder in animals and human due to inhalation of fine particles, (b) Ophthalmic disease, as particulates act as carrier of pathogens, (c) Lower agricultural yields due to obstruction of light needed for photos ynthesis by the dust cover on surface layer of plants, and (d) Poor visibility near crusher. The variation of SPM and RSPM in the four sampling stations for the month of November to January is depicted separately in Figure 2 4. In general the SPM load in all the sampling stations was more than the RSPM concentration and this is as per expectation. 3.2 Water pollution Mining activities are known to affect both the surface and groundwater regime. The local topography and drainage pattern may considerably influence the severity of pollution. The main sources of liquid effluents in opencast mining are: (a) De-watering of mine water, (b) Spent water from dust extraction and dust suppressing system and (c) Leachate run off from waste dumps. The water composition of the mine water primarily depends upon the host rock composition as well as the mineralization process. Generally, sulfides containing minerals yield acidic mine water whereas in mineral bearing oxides, the pH of the water may go up to 8.0. pH of the mine water of the area was alkaline in nature (7.6-8.5) and conductivity varied between 372 and 1642  µS cm-1 (Table 1). The average conductivity (1,009  µS cm-1) and TDS (839 mg l-1) values for mine water are higher as compared to the groundwater (864  µS cm-1 and 669 mg l-1) and surface water (411  µS cm-1 and 303 mg l-1). Due to exces sive soil and other structural erosion the runoff water contains high amount of suspended solids. These decrease the penetration of light in water bodies receiving the runoff water affecting the survival of living organisms. The leachate water can be extremely toxic containing heavy metals depending on the overburden composition and may pollute the ground water. 3.3 Noise Pollution In open cast mining blasting is a common practice which produces high intensity of noise. Deafness is brought about by slow but progressive degeneration of neuro-sensorial cells of the inner ear. Besides, noisy working environment in the mining sites are known to result into communication impairments, task interference, sleep interference, change in personal behavior, etc. of the mine workers. In addition, noise produces other health effects, influences work performance and makes communications more difficult. Besides, the fauna in the forests and other areas surrounding the mines/industrial complexes is also effected by noise and it has generally been believed that wildlife is more sensitive to noise and vibrations than the human beings.The noise level is comparatively high in the active zones in the granite quarries due to drilling, blasting and the mine service stations. It was found to be in the range of 96 to 125 dB. These are much above the limits of 75 dB prescribed by WHO for day time industrial areas (WHO 1980). In the granite quarries the exposure for long periods to these high levels of noise is likely to affect the ear diaphragms of the workers. Instantaneous loudness from blasting can reach 100 dB and vibrations can be felt up to 2 km distant. At 10 metres, the noise from excavators, spreaders, conveyor belts and their driving stations all may attain 85-95 dB. Even at 1,000 metres noise sources of 75 dB create loudness levels as great as 49 dB (UNECE 1988). 3.4 Land degradation Opencast mining excavates large land areas to extract the mineral ore and at the same time requires huge areas to dump the mine spoils. During this course of action often lands under the cover of forest or agriculture are diverted for mining. Some important impacts on the lands due to opencast mining may be: (a) Change in topography resulting in drastic change in drainage pattern and reduction in aesthetic value, (b) Slope stability problems triggering lands slides and rapid soil erosion, (c) Rapid siltation and degradation of surface water bodies and (d) Blanketing mine spoils in the nearby agricultural and grazing lands. A change of land use pattern in Goramachiya village has been shown in figure 5. 3.5 Improper disposal of mine-wastes Dumping 0f mine wastes without proper location of will cause adverse impact on environment. This depends on the type of mineral, the method of mining and nature of topography around the mines. Actually in course of mining materials is far more than mineral of economic value, which is utilized. The rest is disposed at mine site. The rejected materials may be the overburden, inter burden, side burden, on the tailing rejected after beneficiation. This material is physically, chemically and structurally unstable and is to be dumped on the adjoining land area, add to be the deleterious impact prone to subsistence chemically as well as hydrological unstable for plant growth as it carried for with water streams and degraded environment on the land in vicinity. 3.6 Loss of Biodiversity One major crisis of the present day in Bundelkhand region is the rapid loss of biodiversity. Large scale operations of mining activities have contributed directly or indirectly to the depletion of the biological diversity in the region. Vegetative covers are open up at various places to expedite excavation of ore, development of mining infrastructure and dumping of overburdens. Removal of vegetative cover is often followed by massive soil erosion, siltation of river and reservoirs. The direct impacts on the living organisms in the mining areas may range from death of plants and animals due to mining activity or contact with toxic wastes and mine drainages, disturbance of wildlife habitat due to blasting and heavy machines. Indirect impacts may include changes in nutrient cycling, disruption of food chain and instability of ecosystem. 3.7 Occupational Human Health Problems Opencast mining is more severe an air pollution problem in comparison to underground mining. In active mining sites, miners are persistently exposed to large concentrations of dust, gaseous pollutants, high levels of noise and last but not the least accidents, which constantly pose a severe threat to miners life. The data on various health effects obtained from the current survey for the mine workers and the population inhabiting in and around the granite mining site is illustrated in Figure 6. Health problems related to skin and respiratory disorder are widely prevalent in the area. Maximum of the respondents complain problems related to skin and respiratory diseases. A total of 108 respondents have skin problems which comprises of 74 men and 35 women. The digging, blasting and drilling of granite mine generated dust particles of various sizes into the immediate atmosphere. Crystalline silica is a common but variable component of granite. Most of this dust is usually made up of sil ica (occurring as silicon dioxide SiO2). As the mining is increasing, workers exploitation is also increasing. Workers are facing serious problems of their health, livelihoods, and minimum wages. The most prevalent occupational diseases among the mine workers in Bundelkhand are: (a) Hearing problems: Effect of heavy noise from use of heavy machineries and rock blasting cause auditory effect as well as non-auditory effects in mine workers and surrounding people, (b) Auditory impact: Auditory effect of noise causes impairing of hearing, (c) Non-Auditory impacts: These type of effect cause loss of working efficiency due to the physiological disorders like hypertension, cardiovascular disease and so on, (d) respiratory problems: Mineral dust particles originating from mining activities on inhalation by lungs and thereby causing a number of concerned problems like silicosis. These diseases are common in Goramachiya and Dagara village of Jhansi. (e) Eye problem: Dust particle from mining activities contribute to cause of certain eye problem like conjunctivitis and kerato conjunctivitis and (f) Skin problem: Deposition of dust particles on skin interrupts U.V. radiation, which causes different skin diseases. 4. Remedial Measures 4.1 An environmental management plan (EMP) for sustainable mining activities India, however, is not a unique case, as it is a well known fact that most mining adversely impacts on the environment. It is mandatory to draft an environmental management plan (EMP) before commencing such projects in India. Several countries have adopted different strategies for tackling pressing environmental problems in the industry. For effective implementation of an EMP, a mid-term corrective measure is essential, such as a time bound action plan, this includes a programmed for land reclamation, afforestation, mine water treatment, surface drainage and check dams, and sewage treatment. Development has environmental costs. Therefore, the role of the law is to see how and where to absorb these costs to keep damages at a minimum. The responsibility to improve environmental management rests with the Project Officer of the project. As far as air, water, noise and soil pollution control measures are concerned; samples are collected and tested at strategic locations during all four se asons. The implementing authority is guided and advised as per the data received from the laboratories. 4.2 Environmental Impact Assessment Environmental Impact Assessment (EIA) is one of the proven management tools for integrating environmental concerns in development process and for improved decision making. As EIA and EMP have been made statutory requirements for starting new mining ventures as well as for existing mines, (at the time of renewal of mining plans) measures to prevent environmental degradation have become a subject of priority with the mine managements. In the initial years, environmental clearance was only an administrative requirement. Since 1994, EIA and environmental clearance have been made statutory for 30 categories of developmental activities in the sectors of industry, thermal power, mining, river-valley infrastructure and nuclear power. The minerals reserves in the Bundelkhand region are varied and huge in quantities, it is expected that the mining activities may be intensified in future further deteriorating the environmental quality. Proper environmental impact assessment and some times a socio-economic impact assessment should be carried out. Baseline data should be effectively incorporated in management of the mining sites in Bundelkhand region. For proposed mining projects, it is necessary to address the potential environmental impact issues that may arise due to proposed mining activities i.e. an assessment of the potential impacts of a project on the pre-mining environment. The plans required for the EIA must be at appropriate scales to show the level of detail required for the particular project or aspect described. The economic growth and development of the country depends not only on resource optimisation but also on environment management. This aspect of industrialization was not envisaged by planners in the past. 4.3 Afforestation Afforestation practices help in restoring and enhancing the vegetative cover in mine areas in various ways. For reclamation through Afforestation following inventories are the prerequisites such as area to be planted, slope gradient, quality of soil, climate conditions and nature of biotic pressure. For plantation priority must be given to native species in the following order, mining sites, overburden sites and abandoned sites. Those species have to be selected having fast growing tendency to enable to maximum canopy in short time as well as hard woody and ability to fix direct atmospheric nitrogen. 5. Conclusion Mining activities are unsustainable not only because they exploit non-renewable resources, but also because they leave behind them destruction of the environment and society, which is very often irreversible. Because of its impacts, mining is one of those activities that need to be strictly controlled at all stages, from prospection and exploitation to transportation, processing and consumption. After abandoned of mines, there is no proper closure of mines; waste dumps will be there, no rehabilitation of the area, no compensation for the labours. There will be always question of that whether land will be given back to the landholder or not. It has been suggested that after closure of mine lands should be given to the landholders, after proper rehabilitation of land. Then they can start to earn his livelihood from the cultivating their own land. Environmental quality must be sustained in areas affected by surface mining. This requires designing and developing environmentally sensitive strategies for extraction and land reclamation. It demands a more rigorous control of environmental impact assessment and more attention to ensuring productive and sustainable land restoration. Mine rejected granite waste stone materials should be distributed to the local people who are inhabitant the satellite village and also initiate for the manufacture of brick in house purposes and roads. Filter masks should be provided to the workers and plants crushers and mine areas.

Communication Strategy Development Project

Communication Strategy Development Project Subject: to develop the communication process Amicus and to improve system relating to information and knowledge. Faysal Mahmud Shafayet zaman Executive summary As we have been assigned to create a formal report on Managing Communication, were our objective is develop communication process and be able to improve systems relating to information and knowledge. For this we have collected our data thoroughly through the primary methods, which is through questionnaires and through face to face meeting Task one Communication is basically interaction, which can be oral, visual, written or any other channels to express ones feeling. Hence we can take it granted that it’s the most vital element of an organization and if it’s not proper it will possibly influence the organization in it’s down fall, vice-versa. As I was assigned to assess the business communication process of Amicus, while assessing I found out the communication process the organization in terms of their suppliers, consumers as well as their own. Communication process of Amicus: Top to lower level management: When a policy or a guide line for the organization is implemented or when taking a new strategic decision the approach that Amicus utilize is the formal top-down approach, for example when taking a strategic decision the directors call a formal meeting where they inform the manager about the strategic decisions. Afterwards the manager calls a formal meeting for the lower level management to brief them about the strategic changes. Same level management: When making an agreement or facing an unexpected scenario the approach Amicus follows is the formal horizontal method, for example when information needs to be passed within the same level management they call a formal meeting which is notified by phone or a formal letter ( as it is within the organization ). Lower to top level management: This occurs when a report regarding a project (construction) or feedback is received, for this kind of situation the communication approach Amicus apply is the formal upward vertical communication, such as when a lower level employee wants to present his feed back of the task he was assigned, he takes an appointment and formally presents the feedback face to face. Then the manager via appointment meets the directors and presents them the feedback. Networking system: Sharing data’s between different departments can be time consuming, to avoid this Amicus uses LAN as their networking system. Dissemination of data for consumer as well as organization purpose: Amicus disseminates their data via ad on paper, billboards, brochures and their own web page. Organization meeting for all level management: As Amicus is a developing organization, for which meetings are held monthly as this industries scenario fluctuates a lot. Communication process of Amicus regarding consumer and suppliers In terms of agreement: Basically in terms of agreement the communication approach Amicus always prefers is the formal face to face communication and the approach of the agreement is always written. Dissemination of data for consumer as well as suppliers: Amicus disseminates their data mostly through ad on newspaper; billboard or brochures were there can be an ad about both product/service and recruitment for supplier. Feedback process of Amicus for their consumers: there are four channel through which feedback can be received and they are via letter, face to face, telephone call and e-mail. Most of the feedbacks are received through the phone. Overall what our team found out that, in the present state Amicus is formal in its communication process and desires to follow formal communication process in the future but will allow change in circumstances. In the present scenario Amicus has finished a luxurious project in Mirpur DOHS, for which a communication process is made for notifying the potential customers. Where the director being the sender sends a message, where the message is to promote the new project via ad on news paper, this message is transmitted through formal meeting. Then the recipient is the marketing manager and in the receiver stage the message is interpreted so that the recipient who is the marketing managers can understand the actual meaning of the message. But in the feed back stage it shows they didn’t get positive feedback as the interaction with customer was not up to the organizations estimation. A communication process diagram of the marketing department is given below. Communication process diagram of the marketing department of Amicus regarding the new projects promotion: Task two After conducting research on the overall communication process of Amicus we found some lacking in the communication process, regarding the regarding. As we have found out that the customer’s interaction is not up to the mark in organizations view point. Judging from the previous communication process we can see that they have done there promotion through only one media which was ad on newspaper. In the improvised communication process the director of Amicus being the sender sends a message which is to promote the new project by variety of media and to promote it in the right place for example giving add on billboards in places like Gulshan, Bonani and baridhara and also selecting a targeted segment and handing out brochures to them. This message is transmitted by a formal meeting and is indicated to the marketing manager of Amicus, who is the recipient. In the receiver stage the message is explained so that the recipient can understand the actual meaning. Hence an Improvised Communication process diagram of the marketing department of Amicus regarding the new projects promotion is made. Task Three As we have seen in the first communication process, here the director being the sender sends a message, where the message is to promote the new project via ad on news paper, this message is transmitted through formal meeting. Then in the recipient is the marketing manager and in the receiver stage the message is interpreted so that the recipient who is the marketing managers can understand the actual meaning of the message. But in the feed back stage it shows they didn’t get positive feedback as the interaction with customer was not up to the organizations estimation. Due to its feedback a new improvised communication process is made, where the director of Amicus being the sender sends a message which is to promote the new project by variety of media and to promote it in the right place for example giving add on billboards in places like Gulshan, Bonani and baridhara and also selecting a targeted segment and handing out brochures to them. This message is transmitted by a formal meeting and is indicated to the marketing manager of Amicus, who is the recipient. In the receiver stage the message is explained so that the recipient can understand the actual meaning. In the first scenario we can see that they have done their promotion through only one media which was ad on newspaper for their upcoming luxuries project in Mirpur DOHS but this promoting strategy had some drawbacks such as, not all people read newspapers, everyone does not read the same newspaper and it is also received by a lot of un potential customers as it is luxurious project in a luxurious place and every social class people reads the newspaper. Advantages on implementing improvements when implementing the improvised communication process, the director being the sender sends a message which is to properly promote the upcoming project by the proper use of media and by promoting it in the right place such as giving add on billboards in places like Gulshan, Bonani and baridhara and also selecting a targeted segment and handing out brochures to them. Through promoting like this by using proper media and promoting in the right place, Amicus will be able to find the potential customers better than before and attract them according, which will lead to the estimated interaction of Amicus between the Amicus and potential customers. This was not possible following the old communication process. Task Four How to improve own or individual communication skills. After being enlightened in managing communication we have found out some effective steps that can help someone to improve their communication skills and they are: Providing a precise verbal speech about the task so that it will clear to the recipient. Also providing a clear written document about the task, this will help them if they don’t understand speech. When an individual has problem understanding the task you can use open conversation and non verbal communication, so that he can understand When giving a speech about the task it is a necessity that receiving end listens carefully When the individual faces confusion in the speech of task they should ask the manager and clear his confusion at that time When a group work is given by the manager, the group’s individuals to be selected should have the communication skill to understand where each individual stands and how much work they can do. If a problem arises after the task is given it is better to do informal communication at that stage , as through informal communication they can get rid of their confusion in a time consuming manner Task Five Existing approaches of data collection, formatting, storage and dissemination of Amicus After gathering information from their managers and directors we have found how Amicus collect their data, how they format it and how they store it. The approaches of these stages are given below: Approaches of data collection: There are two sources that Amicus uses for collecting data and they are the primary sources such as field visit, face to face meeting, via telephone, e-mail and etc. the other source they use is secondary sources for example newspaper, brochures, annual report, government data and etc. Approaches for data formatting, storage, security and back up: After the collection of data from primary and secondary sources they format their data in a few ways. If they get a written data they have to scan it first in order to format it into word file and after that the word file’s soft copy is kept in their computers such as desktops and laptops. When they receive the data’s soft copy they collect it via pen drive or memory stick and save it in the office computer for further use. If they need to edit any sort of data they edit through the help of MS word or Adobe. When formatting quantative data Amicus uses MS excel and make a spread sheet. After formatting all the data they store it in the files of their computers as well as in log books and for their data security of confidential data’s they use password so that only classified person can take a look but for their backup they just store it in their computer. All these formatted data are shared internally in the organization through the help of local area network (LAN). Task Six What our team has found out that the process Amicus follows for the collection of data, formatting and storing is good compared to their industry but their back up and security is very poor ,so here is an improvised process for back up and security given below. Approaches of data collection: There are two sources that Amicus uses for collecting data and they are the primary sources such as field visit, face to face meeting, via telephone, e-mail and etc. the other source they use is secondary sources for example newspaper, brochures, annual report, government data and etc Approaches of data formatting and data storage: After the collection of data from primary and secondary sources they format their data in a few ways. If they get a written data they have to scan it first in order to format it into word file and after that the word file’s soft copy is kept in their computers such as desktops and laptops. When they receive the data’s soft copy they collect it via pen drive or memory stick and save it in the office computer for further use. If they need to edit any sort of data they edit through the help of MS word or Adobe. When formatting quantative data Amicus uses MS excel and make a spread sheet. After formatting all the data they store it in the files of their computers as well as in log books and for their data security of confidential data’s they use password so that only classified person can take a look and for their back up and security they can use the virtual networking system such as Cloud Computing Service by IBM. Task Seven As we can see from the first existing process of data collection, formatting, storage, security and back up that their security and back up was poor for which an improvised process was made which was quite similar but was appropriately improvised in the security and back up stages. Existing process: After the collection of data from primary and secondary sources, such as field visit, face to face, brochures and newspaper they format their data in a few ways. If they get a written data they have to scan it first in order to format it into word file and after that the word file’s soft copy is kept in their computers such as desktops and laptops. When they receive the data’s soft copy they collect it via pen drive or memory stick and save it in the office computer for further use. If they need to edit any sort of data they edit through the help of MS word or Adobe. When formatting quantative data Amicus uses MS excel and make a spread sheet. After formatting all the data they store it in the files of their computers as well as in log books and for their data security of confidential data’s they use password so that only classified person can take a look but for their backup they just store it in their computer. Improvised process: After the collection of data from primary and secondary sources, such as field visit, face to face, brochures and newspaper they format their data in a few ways. If they get a written data they have to scan it first in order to format it into word file and after that the word file’s soft copy is kept in their computers such as desktops and laptops. When they receive the data’s soft copy they collect it via pen drive or memory stick and save it in the office computer for further use. If they need to edit any sort of data they edit through the help of MS word or Adobe. When formatting quantative data Amicus uses MS excel and make a spread sheet. After formatting all the data they store it in the files of their computers as well as in log books and for their data security of confidential data’s they use password so that only classified person can take a look and for their back up and security they can use the virtual networking system such as Cloud Computing Service by IBM. As we can see that both process is quite similar but in the improvised process for back up and security Amicus uses the virtual networking system such as Cloud Computing Service by IBM for they will get high security and back up for example that computer through which Amicus shares their data with the help of LAN has the possibility to crash which will make them loose all their data but if they use the virtual networking system such as Cloud Computing Service by IBM their data will remain safe in the virtual data base of IBM which can only accessed by the authority of Amicus. To keep confidential data’s classified they also use it as it is highly secured. Evidence Reference Amicus Properties (2013). About Us.  Available: http://www.amicus.com.bd/amicus/index.php  Last accessed 09th March 2014.

The Son :: essays research papers

The Son Years ago, there was a very wealthy man who, with his devoted son, shared a passion for art collecting. Together they traveled around the world, adding only the finest art treasures to their collection. Priceless works by Picasso, Van Gogh, Monet and many others adorned the walls of the family estate. The widowed elder man looked on with satisfaction, as his only child became an expienced art collector. The son's trained eye and sharp business mind caused his father to beam with pride as the dealt with art collectors around the world. As winter approached, war engulfed the nation, and the young man left to serve his country. After only a few short weeks, his father received a telegram. His beloved son was missing in action. The art collector anxiously awaited more news, fearing he would neer see his beloved son again. Within days, his fears were confirmed. The young man had died while rushing a fellow soldier to a medic. Distraught and lonely, the old man faced the upcoming Easter holidays with anguish and sadness. The joy of the season, a season that he and his son had so looked forward to, would visit his house no longer. On Easter morning, a knock on the door awakened the depressed old man. As he walked to the door, the masterpieces of art on the walls only reminded him that his son was not coming home. As he opened the door, he was greeted by a soldier with a large package in his hand. He introduced himself to the man by saying, "I was a friend of your son. I was the one he was rescuing when he died. May I come in for a few moments? I have something to show you." As the two began to talk, the soldier told of how the man's son had told everyone of his father's love of fine art. "I'm an artist," said the soldier, "and I want to give you this." As the old man unwrapped the package, the paper gave way to reveal a portrait of the man's son. Though the world would never consider it the work of a genius, the painting featured the young man's face in striking detail. Overcome with emothion, the man thanked the soldier, promising to hang the picture above the fireplace. A few hours later, after the soldier had departed, the old man set about his task. True to his word, the painting went above the fireplace, pushing aside thousands of dollars of paintings.

Comparing Story of an hour vs The Yellow Wall Paper :: essays research papers

Comparing Short Stories   Ã‚  Ã‚  Ã‚  Ã‚  Kate Chopin’s â€Å"The Story of an Hour† and Charlotte Gilman’s â€Å"The Yellow Wallpaper† are both centralized on the feministic views of women coming out to the world. Aside from the many differences within the two short stories, there is also similarities contained in Chopin’s â€Å"The Story of an Hour† and Gilman’s â€Å"The Yellow Wallpaper,† such as the same concept of the â€Å"rest treatment† was prescribed as medicine to help deal with their sickness, society’s views on the main character’s illness, and both stories parallel in the main character finding freedom in the locked rooms that they contain themselves in.   Ã‚  Ã‚  Ã‚  Ã‚  Both â€Å"The Story of an Hour† and Charlotte Gilman’s â€Å"The Yellow Wallpaper† display women discovering freedom from society’s standards during the setting’s time period. In â€Å"The Story of an Hour,† Louise locks herself in her room after discovering that her husband has died and at that point in the story she finds herself more confident in herself. She exclaims, â€Å"Free! Body and soul free!† (Chopin 83). After she believed her husband died she finally had reason to take initiative in life and did not have to live a life were nothing was expected of her. She found freedom in locked quarters. Just as John’s wife did in â€Å"The Yellow Wallpaper.† As the wife’s sickness progressed, her anxiety over the yellow wallpaper increased. The patterns developed within the walls showed the image of a woman creeping along, and as the shadows of the bars from the window cast across the woman. Th is can symbolize how she is like the shadow, imprisoned in her room and mansion. As time moved forward, the wife fully identifies with the image in the wall, and by the end of the story she locks herself in her room and frees the woman behind the bars by pealing off most of the wallpaper.

Physics of a Rockets Trajectory :: physics rocket rockets trajectory science

Missing equations / figures We as humans have always been fascinated with the unknown.ï ¿ ½ We seek to conquer every frontier.ï ¿ ½ Today, the final frontier is space.ï ¿ ½ So, many people are very interested in rockets, the vehicle for conquering the final frontier.ï ¿ ½ Most people have a general idea of how rockets work, but very few have an understanding of the physics behind their flight, which scientists spent many years perfecting. Rocket propulsion is not like many other kinds of propulsion that are based on the principle of a rotation based engine.ï ¿ ½ For example, a car engine produces rotational energy to turn the wheels of the car.ï ¿ ½ And, a airplane engine produces rotational energy to spin a turbine.ï ¿ ½ But, rocket propulsion is based on Newtonï ¿ ½s Third Law, which says that for every action, there is an equal and opposite reaction.ï ¿ ½ So, rockets work by pushing fuel out the back, which in turn pushes the rocket forward.ï ¿ ½ The mass of the fuel pushed out the back of the rocket multiplied by the velocity of the fuel is equal to the mass of the rocket multiplied by the velocity of the rocket in the opposite direction.ï ¿ ½ Although there is always some energy loss in any type of engine, the rocket is propelled forward. There are many forces that a rocket must overcome, especially during liftoff.ï ¿ ½ Newtonï ¿ ½s second law says that force is equal to mass times acceleration (F=ma).ï ¿ ½ However, for a rocket the calculations are not that simple because the rocketï ¿ ½s mass is always changing as it burns up fuel.ï ¿ ½ So, we have to replace a new term with F, leading to ï ¿ ½where is a term for the thrust of the rocket and it is defined by R, the fuel consumption rate, and is the fuelï ¿ ½s exhaust speed relative to the rocket.ï ¿ ½ Also, we replace m with M and define M as the instantaneous mass of the rocket, including the unexpended fuel. We also have to incorporate the other forces acting on the rocket, such as gravity and air resistance.ï ¿ ½ The force of gravity is equal to mg.ï ¿ ½ The force of air resistance is ï ¿ ½where C is the drag coefficient, is the air density, A is the cross-sectional area of the body perpendicular to the velocity, and v is the velocity.ï ¿ ½ By themselves, these formulas seem somewhat easy, but a rocketï ¿ ½s flight incorporates many variable forces that make the calculations much more difficult.ï ¿ ½ We have already examined the rocketï ¿ ½s upward force and how the changing mass makes the force vary.

McDonald Case study Essay

Comparing with other competitors in the catering industry, McDonald’s has developed into one the giant and most famous fast food restaurants in the world. At present time, McDonald’s is the world’s largest food service retailers offering services to customers, in the same time they are keeping opening new shops all over the world every day. However, even though their business is keeping increasing, but they also met some negative messages from consumers or other parties, such as their products is not unhealthy, food they provided will cause obesity to the childhood. From relative estimation, it shows that obesity condition and the qty of those overweight children have been increasing rapidly throughout the world. More seriously, childhood obesity rate in the country of Australia is the highest in the world. From this consideration, it is much necessary to analysis relationship between the fast food and the obesity. Here, I will take the example of McDonald’s to research in detail 2.0 Analysis of case (McDonald fast food) There are lots of people will be consumed in McDonald’s., roughly, there are more than 30 million customers will be served in McDonald’s restaurants around the world. Accordingly, McDonald also achieved great success, especially comparing with other not so famous similar competitors. But due to fast food’s unique style of business, such as: their unique food ingredients, material used and cooking method, people think fast food will be the main cause for the obesity, typically for children, because they like the taste of such fast food a lot and consumed a lot too. In Australia, according to the study, there are about 25% of children in Australia are obese or overweight nowadays, while that was just 5% in the 1960s. The study from Australia’s Child Youth Help shows that the overweight preschoolers aged four years rose from 3.2% for boys and 3.5% for girls, to 4.1% for boys and 5.8% for girls in 2002. Also according to many scholars and nutritionist’s reflection, it is not hard to know that the fast food provided will be the main reason for causing childhood obesity. Since obesity has lots of negative effect to the health of the people, and especially for childhood, comparing with normal adults, childhood will be the focus for parents or relative health institute to pay attention on. As relative research shows that fast food will generate relative higher fats etc, so becomes one of the main causes of getting child fat. For McDonald, due to their significant achievement, together with their multi-advertisement, makes people, child is more familiar with them, on the contrary, this type of condition also makes McDonald become the target of complaints of childhood obesity. 2.1 Questions 1: McDonald relationship with childhood obesity Due to the cause of the obesity, McDonald’s relationship with child and parents becomes much tight. There are lots of people complain this giant food seller, because they have provided to many fast food to children, which cause them failed to be healthfully growing. In which, their variety type advertisement also become the target for people to blame. Because advertisement will bring good feeling and positive to the consumer, especially when child get to know the advertisement, they will be much easily to be attracted by the contents, therefore, they will be much easily tend to take such advertising food. In the meantime, since they are short of the knowledge to judge and get to know more detail of the products, is it  good, or will it bring bad effect to health once eats. So in the way, McDonald’s advertisement becomes the target of people’s blaming. As far as I am concerned, it is not doubt that McDonald will hold the direct responsibility, because they are the food providers, and they are the persuader to make children like their food by advertisement. But in the meantime, children’s parents shall also have the responsibility. Normally when the child go in to the McDonald’s shop, they will accompanied by their parents or elder person, at this point, when the children do not have the knowledge and the ability to tell the negative of the fast food, their older accompanier shall point out in time, also shall provide necessary guide in selecting the food. 2.2 Questions 2. The impact of McDonald’s marketing Advertisement will bring lots of effect to consumers, and for McDonald’s marketing because most of their advertisement contents will be designed by professional, who will be able to make the contents of the advertisement will be much attracting to their consumer, and when they target children, normally, the effect of the advertisement will work. Also they will design relative program to present their products to consumers. 2.2.1 Impact of McDonald’s marketing on individual consumers It is well-known the principle of the treatment to the people in McDonald’s that people are the key to the success of McDonald’s. To individual consumers, McDonald’s celebrate the children’s birthday with them. The parties are fun, Hassie-free and make for great memories to give an impressive and unforgettable experience for each of the individual customers in it. Customers can choose from two great-value packages, each offering games, entertainment and meals, and with more than 200 committed birthday party restaurants Australia-wide, there are plenty of nearby locations to choose from. Additionally, there is online booking for the convenience of the customers, which is even easier to give the little customers a party they’ll love. 2.2.2 Impact of McDonald’s marketing on other business and society Apart from the great favorable impact of McDonald’s to the individual consumers, McDonald’s itself also shed indispensable impact on other business and society as a whole. There are 267 franchisees and 9,000 suppliers serving as business partners in McDonald’s Australia alone (McDonald’s Australia Corporate Responsibility & Sustainability Report 2010). Therefore, the great sales in McDonald’s will no doubt generate vast increase to the sales of those business partners to a large extent. 2.3 Question 3: Social marketing’s influence to children Social marketing will contribute and affect a lot to the consumer through variety type of approaches, and it can be clearly known from the example of McDonald. The great success of McDonald’s is basically because of its establishment and implication of its responsibility to do what’s right. To better carry out this responsibility, McDonald’s takes several measures as the societal marketing listing below: (1) Productive strategy of high quality products. The quality of the products is the life thread of an enterprise. From this consideration, McDonald’s places this to the first of the other four criteria. (2) Price strategy of reasonable price. To be successful in the furious competition of fast food industry, McDonald’s implicates the marketing strategy of low price and national uniform price. (3) Service strategy of clean and speedy service. The cleaning of the food in McDonald’s has closed connection with the health of the customers, especially that of the children’s. While clean and speedy service provides convenience for the necessity of busy customers. Promotional strategy oriented with ads. The promotional strategy in McDonald’s is rather simple but quite effective, mainly with the strategy of ads publicity to create sensational effects. (5) Cultural strategy of accustoming to the local culture. McDonald’s maintains its own style of diet and also adapts to the local culture to invent food of the traditional distinguishing features (Nestle & Jacobson, 2000). Through the measures above, McDonald try to widely present their products as top as possible to the consumers, also their products will be accompanied with good service which will greatly influence the consumption intendance and habit of their customer, in which children are also the most part, therefore children will naturally like to eating in McDonald. 2.4 Question 4. Opinion of advertising for kids and other solutions for childhood obesity in Australia 2.4.1 Problems of advertising for kids The advertisements of McDonald’s are always aimed at interesting more customers, especially to the little children. McDonald’s enticing their children customers to want its food by applying free toy giveaways. The ads of McDonald’s are both in TV or other publications produce various attractive pictures and images to entice the children to it from their visual to their gustatory sense. 2.4.2 Other solutions to solve childhood obesity To solve childhood obesity, several strategies are decided as followed: – More focus must be placed on the group prevention rather than the individual treatment and instruction. In order to change the diet and behavior in the family, it is critical whether to depend on the family and the society. The effect of the individual instruction such as the fat farm and summer camps will be very limit without the long term support from the society and school (Allison & Webe, 2003). – School must be the major part of the prevention of childhood obesity. – The government must make no efforts to control childhood obesity. – How to cooperate with the food industry is one of the parts of the strategies (Berg,Buechner& Parham,2003). 2.5 Trend of the fast food industry in Australia The fast food industry in Australia has achieved its great success in recent years. The social and industrial status of fast food industry has been gradually established and become more important. The scales of both the industry and the enterprises are increasingly broadening, and the quality and standard are improving evidently. In a word, the development of fast food industry is limitless in the long run. All around Australia, fast food is not simply a commodity; it is also a representation of â€Å"the West† or â€Å"American†. If it wants to help explain its attraction, McDonald’s should innovate its quality as well as the foods themselves to match the advance  demand of the society. Australian business environment was so complicated that foreigners could not hope to survive on their own, in such circumstance, only those enterprise matching with the consumer requirement will be survive. On the whole, Australian consumers treat â€Å"fast food† restaurants as leisure centers and tend to stay longer than do most Americans. In the meantime, other type food, like rice is more than a simple grain; it is imbued with symbolic meanings and is perceived as sacred by many Australians. The style of food does not fit easily into the existing Australian food system, so McDonald’s, if can operated in a more healthy way for their food by improving step by step in innovation, it can be easier to be accepted. 3.0 Conclusion In conclusion, McDonald’s is believed the giant of the fast food industry. It has achieved great success in its sales and the fame all over the world. However, together with its great success, McDonald’s also creates serious problems to the society, in specific the childhood obesity. It is estimated that the prevalence of obesity and overweight children has been increasing rapidly throughout the world. And the rates of the childhood obesity in the country of Australia are the highest in the world. Its beginning relates to the starts of a new political era, on in which local interests challenge the authoritarian rule of the Nationalist Parethy, in this way, the Golden Arches arrive just as Australia reaches takeoff as a major player in the global electronics and computer markets. To many consumers in Australia, McDonald’s meant something the leisure and easy, and people prefer it. So in order to advance their business, but in the same time, not to bring the negative side to the consumer, especially children, it is part of McDonald’s responsibility to take care of their products, trying best to find good method or innovation to catch the problem of causing serious state of childhood obesity, that is certain measures are in great need to be taken to solve or affiliate the situation. It is also believed that with better responsibility taken, and with correct marketing, trying to stick the principle of â€Å"right goods is the base of good marketing†, then the fast food industry will be successful forever. References: Allison,D.B. & Weber,M.T(2003). Treatment and prevention of obesity: what works, what doesn’t work, and what might work. Lipids Berg,F., Buechner J. & Parham E. (2003). Guidelines for childhood obesity prevention programs: promoting healthy weight in children. Nutr Educ Ebhav McDonald’s Australia Corporate Responsibility & Sustainability Report 2010 Nestle,M.& Jacobson,M.F(2000). Halting the obesity epidemic: a public health policy approach. Public Health Rep