2.Neorealism and Complexity theory and their different notions of the Essay

2.Neorealism and Complexity theory and their different notions of the term system - Essay Example According to the complexity theory, studies (Waldrop 1992) indicate that the way systems are organized is not a coincidence. It is a result of laws of nature that are not fully understood but allow systems to organize themselves and freely bring about order (Waldrop 1992). It perceives a system as being able to demonstrate properties and patterned behaviors that are not found in any of the individual elements that make it up (Battram 2002). According to neorealism, anarchy and distribution of capabilities are the ordering principles that define the international structure (Mearsheimer 2001). They are quantified by the number of great powers in the international system. In the international system, the anarchic ordering principle is decentralized and composed of sovereign states which will not subordinate their interests for the sake of others (Waltz 1979). With regards to changes in distribution of capabilities, neorealism provides three systems. There is a unipolar system which only has one great power, then the bipolar system with two great powers and thirdly, the multipolar system that has more than two great powers (Waltz 1979). This theory contends that the bipolar system is less vulnerable to systemic changes and great power war than the multipolar system. This is because in the bipolar system, balancing only takes place internally without great powers to form alliances with, limiting the chances for errors and g reat power war (Mearsheimer 2001). In conclusion, the complexity theory views a system as one that numerous independent agents interact with each other in multiple and infinite ways. Conversely, neorealism views a system from the angle of structural constraints rather than the motivations and strategies of its

Cultural Manifestation Via A Game Of Street Basketball Essay Example for Free

Cultural Manifestation Via A Game Of Street Basketball Essay Two hoops, ten players, one basketball court and one leather ball to dribble, pass, shoot and score points with. The other aspects of basketball – the rules, the technicalities – are all fluid and bent by the whims and preferences of the existing culture, even the existing playing teams. Street basketball may not be the roots of the sport, but through the years, it has becoming both the foundation of professional basketball as well as the avenue for the exercise of the growing subculture in street basketball. Ballard (2004) elaborates: Within the caged confines amidst the bohemian community of Greenwich Village in Lower Manhattan can be found the essence of street basketball: all the grit, showmanship, competition, and spectacle that make the game great (pg 35). To those who are not indoctrinated in the culture of street basketball, it is easy to say that what they see being played on the street and what they see flashing on their television monitors are both the same game of basketball; that they share so many similar attributes and that the only thing different in street basketball compared to collegiate or professional basketball is the level of popularity. But that is far from the truth – because those who know and understand street basketball, those who lived and breathed street basketball, those who bled and literally died in the cement floors of the street basketball courts know that what they do where they do it is so much different from what high salaried pro basketball players do in the NBA. They have different stages where they play; they have different rules as well as different ways of enforcing it; they have different cultures and different reasons why they play basketball. The only thing they have in common is that they all want that leather and rubber spheroid up in the air and then inside the rim, swooshing the net that makes a catcall for such a sexy swing. Professional basketball is all about winning the coveted ‘ring’, about being able to parade around town like rockstars and hoist that championship trophy alongside guys who you might be elbowing the following season. In professional basketball, there is a certain convenience for players and team owners to just move from one team to another because it is just a job for them, but on the street, one’s alliance to a basketball team is a binding oath; jumping to another team is never about the job of getting the Ws and finishing the season with the ‘ring’, and most players who see a former teammate desert them always take it personal, because street basketball is never a job. It is a brotherhood where loyalty is the most expensive and most important aspect of a player, and those who sell it cheap will always have a ‘low market value’. Street basketball and professional basketball have different set of ethos – in street basketball, they play for their team’s pride and for the wager while in professional basketball, they play for their own personal pride and for their own personal salary, especially in today’s era when even the best of players are traded to other teams in exchange for the chance of the team’s long term vision to take shape. In street basketball, it is always here and now, every game feels like the last game, and it is hard to go home with a monkey on your back because when you lost, you did not just part with some of your money, you also parted with some ounces of self respect and the respect of the people in the neighborhood about you, your team and your game. Observing and analyzing human behavior – Like every cultural vestige and like every subculture type, included in the consideration for the analysis of certain cultural practices is the assessment of human behavior. In street basketball, there are also a set of prevailing human behavior and the dictating factors on why such patterns exist, appear and persist. The manifestation of these sets and patterns of human behavior inside street basketball is two-pronged; those which the average eyes can see and those which only the trained eyes can detect happen simultaneously. It is both reflected and hidden in the way they dress, in the way they talk and in the way they play the game. The human behavior patterns in street basketball depict that of the prehistoric tribes – it requires that only the fittest with the toughest set of behaviors survive. And what are these behaviors? The behavior in fighting, in negotiating, in people management and control of power all of these behaviors are essential for a person to survive the culture of street basketball. Without some of these behaviors, the individual is forced outside the circle of street basketball. Players fight for their place to be among those who are considered as respected basketball players in the street. Outside the five-on-five, there are those who wield similar power, clout and influence – those who fix wagers, those who tap, harness and control budding talents and those who are present in the circuit for their own socio-political reasons. One needs only to sit down by the bleachers and take a good look around to see the abundance of a diverse set of human behavior present inside one confined yet open spaced rectangular domain of street basketball. African American guys play with white guys and vice versa, and so does the relationship of those who have different ethnic descent, and this reflects the behavior of the individuals inside street basketball when it comes to ethnic sensitivity. Other easily discernable behaviors found in street basketball include the penchant of most basketball players for gambling, their obvious disregard for socially accepted behavior while in public like going topless for most of the time, spitting, cursing and the prevalence of foul and derogatory terms hurled at each other, the integration of gang related separatist attitude and the resorting to physical assault as a way to settle differences of avenge any feeling of indignation. Looking at street basketball players, the universal behavior noticeable is their take on street basketball as the end all and be all of their lives – they gamble every paper bill they have on the pockets of their pants, sometimes, even money that they don’t have, on a round of street basketball without serious regard for what will happen in the future in the event that they lose their bet; most of them would rather spend their days playing ball and cementing their hold among their peers and their social cliques, which sometimes result in the creation of strong bonds of brotherhood between two persons or among members of a group or the creation of intensive animosity as well; school is never an equally important priority, and the preference for the type of work they would engage on is similar on how they battle, win and lost in street basketball – exciting, thrilling and promises the yield of a quick buck.. Street basketball is a religion, while professional basketball is a mere day job for night shift dribblers, and the rituals that are involved in the daily exercise of their faith exists in different aspects – there are rituals of battle, rituals of praise, rituals done to ask for intercession and divine intercession as well as the rituals for both the victorious and the defeated. At some point, the ‘real’ and the ‘sports-based’ religion meets in the middle, when religion is infused in the practice of a competitive sport, because there is one ultimate human behavior that is manifested greatly in street basketball – and that is the desire to win, because winning is always more than the scorebook statistics; it is about winning wagers and bets, winning the respect of the crowd as well as the opponents and winning your own sense of self respect towards yourself. A sports activity is a particular cultural event, and like any other cultural event, st reet basketball is unique in different places. But despite these differences, this cultural event shares the same characteristic – and that is this: that it is the showcasing of the most primitive instinct that is present among humans inside the society; it is a display of skill, grace, strength and the set of values to which a person will be remembered for; it is a reminder of how fiercely competitive the world is, how one should earn everything with his bare hands standing on his own two feet alone. Street basketball speaks a lot about a place’s culture; pro basketball is plain entertainment. Works Cited: Ballard, Chris. â€Å"Hoops Nation: A Guide to Americas Best Pickup Basketball. † University of Nebraska Press, October 2004.

Bacteria :: essays research papers

Describe the structure and life processes of bacteria. Bacterial cells, like plant cells, are surrounded by a cell wall. However, bacterial cell walls are made up of polysaccharide chains linked to amino acids, while plant cell walls are made up of cellulose, which contains no amino acids. Many bacteria secrete a slimy capsule around the outside of the cell wall. The capsule provides additional protection for the cell. Many of the bacteria that cause diseases in animals are surrounded by a capsule. The capsule prevents the white blood cells and antibodies from destroying the invading bacterium. Inside the capsule and the cell wall is the cell membrane. In aerobic bacteria, the reactions of cellular respiration take place on fingerlike infoldings of the cell membrane. Ribosomes are scattered throughout the cytoplasm, and the DNA is generally found in the center of the cell. Many bacilli and spirilla have flagella, which are used for locomotion in water. A few types of bacteria that lack flagella move by gliding on a surface. However, the mechanism of this gliding motion is unknown. Most bacteria are aerobic, they require free oxygen to carry on cellular respiration. Some bacteria, called facultatibe anaerobes can live in either the presence or absence of free oxygen. They obtain energy either by aerobic respiration when oxygen is present or by fermentation when oxygen is absent. Still other bacteria cannot live in the presence of oxygen. These are called obligate anaerobes. Such bacteria obtain energy only fermentation. Through fermentation, different groups of bacteria produce a wide variety of organic compounds. Besides ethyl alcohol and lactic acid, bacterial fermentation can produce acetic acid, acetone, butyl alcohol, glycol, butyric acid, propionic acid, and methane, the main component of natural gas. Most bacteria are heterotrophic bacteria are either saprophytes or parasites. Saprophytes feed on the remains of dead plants and animals, and ordinarily do not cause disease. They release digestive enzymes onto t he organic matter. The enzymes breakdown the large food molecules into smaller molecules, which are absorbed by the bacterial cells. Parasites live on or in living organisms, and may cause disease. A few types of bacteria are Autotrophic, they can synthesize the organic nutrients they require from inorganic substances. Autotrophic bacteria are either photosynthetic or Chemosynthetic. The photosynthetic bacteria contain chlorophyll that are different from the plant chlorophyll. In bacterial photosynthesis, hydrogen is obtained by the splitting of compounds other than water.

A Flawed Society :: essays research papers

William Golding’s allegoric novel, Lord of the Flies illustrates many issues of human society through a group of young, stranded, British boys. The story takes place on an island during World War II. As a result of a plane crash, several young schoolboys are left to survive on their own in an entirely new environment. Left with no other choice but to wait to be rescued, they try to figure out what is necessary to sustain a civilized life similar to the one before. They start out fairly well, demonstrating a relatively democratic and cooperative society. However, as life in the crude territory continues, and the hope for rescue diminishes, the inevitable happens. Things begin to fall apart. The neglecting of rules and their desire for fun and violence overtake them, ultimately destroying any order or peace they had on the island. Although the novel was written several decades ago, current happenings such as the Columbine shooting show that Golding’s views on these issue s are valid even to this day. The first and most obvious aspect that Golding points out, are the consequences brought on by a weak government. He places his characters in a completely different environment where civilization is nonexistent, and the only form of authority is in the form of a 12-year-old boy named Ralph. In the beginning, the boys are somewhat pleased with their newfound freedom. However, this switch in government and society eventually leads to the development of an indifference to rules and civility. It starts out with the conflict between Jack and Ralph. Jack, whose main priority is to keep the group’s meat supply steady, and Ralph, whose main priority is to maintain control, argues numerous times in the book. As tension builds up between the two, the arguments grow more serious. At one point, Ralph tells Jack, â€Å" You’re breaking the rules!† and Jack replies, â€Å" Who cares?† (p. 91). This event foreshadows Jack’s rebellion against Ralph and the series of events following the rebellion that lead to the final collapse of their society. The collapse is indicated by the destruction of the conch. The conch, which had called the meetings into place and moreover gave the right to speak in one, clearly represented order and law on the island. â€Å" †¦ The conch exploded into a thousand white fragments and ceased to exist† (p. 181). At that moment, it was not only the conch that ceased to exist, but their society’s remaining stability as well.

Berawan death practices

Death is not only a physical process, but a social and spiritual paradigm infused by a culture's specific ‘beliefs, emotions and activities which give it its distinctive character' (Hertz 1907, p. 197). Facing another culture's beliefs around death can be confronting, often creating ethnocentric reactions and cultural misconceptions. Comparing American and Aberrant death practices highlights how these rites, and the spiritual beliefs underlying them, can appear horrifying when viewed only from the observer's own cultural paradigm.Anthropologist Peter A. Metcalf observed the practices of the Aberrant tribe, found along Borer's north-central waterways, including the tribe's four-stage funeral rites (Metcalf 1993, p. 325). The first stage lasts two to ten days and includes ‘rites performed immediately after death' (Metcalf 1993, p. 325). The second stage, eight months to several years In duration (Metcalf 1993, p. 325), sees the corpse stored on a platform or in the communal residence with the remains contained in a coffin, earthenware Jar or similar vessel (Metcalf 1993, p. 5). During this period the corpse decomposes, allowing the soul's transformation to ‘perfect spirit' (Metcalf 1993, p. 326). However during this period the soul lurks close by, restless and uneasy, spreading the risk of Illness to the living and the possibility of corpse reanimation by an evil spirit (Metcalf 1993, p. 326). During the third stage, which Hertz referred to as the great feast' (Metcalf 1993, p. 326), the remains are brought into the residence and guests celebrate the deceased for six to ten days (Metcalf 1993, p. 325).The bones ay be removed and cleaned in preparation for the fourth stage – the decease's final burial wherein the physical remains are housed in a receptacle of value, such as a glazed Jar or wooden coffin, with that receptacle accommodated in a large mausoleum; safe in the knowledge the soul had transcended (Metcalf 1993, p. 325). American f uneral practices, by contrast, alma to preserve the body appearance (Hertz 1907, p. 201); embalming fluids replace bodily fluids, Injections fatten gaunt corpses, cosmetics enhance skin color, padded coffins give Impressions of a peaceful, endless slumber (Metcalf 1 993, p. 27). The American death,'afterlife transition is perceived as immediate, with little time between death and spiritual judgment (Hertz 1907, p. 197). In contrast, the Brawn's soul must await the body decomposition – and transformation – before beginning its journey to the afterlife (Hertz 1907, p. 202). Only when dry bones remain, is the soul ready (Metcalf 1993, p. 326). American practices offer horrifying outcomes for the Aberrant exemplar.For a body not given appropriate time for full decomposition and a premature final burial, ‘death ill not be fully consummated, the soul will not leave the earth, the mourning of the living will not be ended' (Hertz 1907, p. 204). The American rites suspend the deceased In a limbo between life and death – the period the soul Is most discontent, still with great capacity to affect the living through illness. During this time potential America is a land carpeted with potential zombies', all awaiting reanimation via the evil spirits that exist in Aberrant culture (Metcalf 1993, p. 26). With such a spiritual intent it can be understood why Aberrant are horrified by their belief the American culture traps a soul at the point of greatest unhappiness, dooming them to restlessly wander eternally; the dead never finding peace and the living never progressing past grief and mourning. The Aberrant-American comparison demonstrates that to fully comprehend a culture's significant, spiritual customs one must first seek to understand the social, spiritual and cultural paradigms surrounding those customs.

Edible Oil Market in India Essays

Edible Oil Market in India Essays Edible Oil Market in India Essay Edible Oil Market in India Essay Edible Oil Market in India BACKGROUND Edible oils constitute an important component of food expenditure in Indian households. Historically, India has been a major importer of edible oils with almost 30-40% of its requirements being imported till 1980s. In 1986, the Government of India established the Technology Mission on Oilseeds and Pulses (TMOP) in order to enhance the production of oilseeds in the country. The TMOP launched special initiatives on several critical fronts such as improvement of oilseed production and processing technology; additional support to oilseed farmers and processors besides enhanced customs duty on the import of edible oils. Consequently, there was a significant increase in oilseeds area, production, and yields until the late-1990s. However, in order to fulfill its obligations towards various international trade agreements and also meet the increasing demand-supply deficits, India began to reduce import restrictions on edible oils in the late 1990s; and it was gradually brought under Open General License. This led to a significant slump in the domestic oil seeds market, as edible oil prices fell sharply in line with the low international prices prevailing at that time. Subsequently, the duty structure was modified so as to maintain a duty differential between crude and refined varieties in order to protect the domestic industry. Nevertheless, due to high import dependence, domestic edible oil prices remain highly correlated to international edible oil price movement, and this has resulted in volatility in the key credit metrics of rated edible oil companies. At the same time, edible oil companies with benefits of large-scale integrated operations, multi-product offerings and recognizable branded presence in retail markets have fared better as compared to small/medium-scale domestic oilseed crushers. The demand for edible oils in India has shown a steady growth at a CAGR of 4. 43% over the period from 2001 to 2011. The growth has been driven by improvement in per capita consumption, which in turn is attributable to rising income levels and living standards. However, the current per capita consumption levels of India (at 13. 3 Kg/year for 2009-10) are lower than global averages (24 kg/year). 1 The Indian edible oils market continues to be underpenetrated and given the positive macro and demographic fundamentals it has a favorable demand growth outlook over the medium-to-long term. In terms of volumes, palm oil, soyabean oil and mustard oil are the three largest consumed edible oils in India, with respective shares of 46%, 16% and 14% in total oil consumption in 2010. Given the high price consciousness and varied taste preferences of Indian consumers, ICRA expects these three oils to continue to account for the bulk of edible oil consumption in the country. There has been a significant gap between demand and supply of edible oil because of limited availability of oil seeds and shifting of acreage to other crops in the domestic market. This gap has been met through imports, which account for almost 45-50% of the total oil consumption. In H1OY2010-11,2 edible oil imports were observed to be the lowest in the last three years in view of improvement in domestic oilseed production. Notwithstanding that, ICRA expects the high dependence on imported oils to continue in the foreseeable future due to anticipated domestic supply constraints and the high cost competitiveness of imported oils. Refined and crude palm oil (CPO) have accounted for the major portion of edible oil imports in India (74% in OY2009-10) mainly due to their relatively low prices and ample availability. ICRA expects the dominance of palm oil in imports to continue in the near-to-medium term. The Indian edible oil industry is highly fragmented, with the presence of a large number of participants in the organized and unorganized sectors. This has resulted in severe competition and inherently thin profitability margins. Further, the profitability of market participants has also been vulnerable to risks emanating from weak harvests; commodity price volatility and forex movements. The Government of India has cut down import duties on edible oil since April 2008. The current duty differential between crude and refined oils stands at 7. 5%, which provides protection to domestic refiners against competition from imported refined oils. Going forward, the industry’s profitability is vulnerable to any reduction in this duty differential. In the recent past, the Indian edible oil industry has witnessed organic and inorganic expansion by some of its major participants. Favorable demand outlook for edible oils; underpenetrated market offers significant growth potential: The demand for edible oils in India has shown a compounded growth of 4. 5% over the last 10 years and is estimated at 16. 2 million tonnes for Oil Year (OY) 2010-11. India plays an important role in the global edible oil market, accounting for approx. 10. 2% share of consumption; 7% share of oilseed production; 5% share of edible oil production and 13. % share of world edible oil imports for OY 2009-10. As per USDA estimates, India is the third largest consumer of edible oils (after China and the EU-27 countries); and will account for 11% of global edible oil demand and 16% of global imports in OY 2010/11F. India’s annual per capita consumption has shown a steadily increasing trend from 4 kg in the 1970s to 10. 2 kg in the late 1990s to current le vels of ~13. 5 14 kg. However, it still ranks well below the world average of around 24 kg (per capita figures including consumption of bio-energy), thereby signifying the high growth potential of the industry. Domestic production lags demand growth, thereby leading to heavy reliance on imports As compared to demand growth for edible oils, the domestic oil and oilseed production has remained largely stagnant on account of low productivity in under-irrigated areas and shifting of acreage from oilseeds to other crops. This has resulted in a significant demand-supply gap, which has been met through imports which have been further incentivised by a sharp cut in import duties. In the period from 2001 to 2008, import duties on crude soyabean oil / palm oil were in a prohibitively high range of 40%-90%. In order to curtail inflation, GoI revised these protectionist tariffs downwards to 7. 5% for refined palm / soybean oil and 0% for crude palm / soyabean oil in April 2008, resulting in a surge in volumes of imported oils that currently meet almost 45-50% of domestic consumption requirements. Reduction in import volumes witnessed for the first time in the last three years during H1OY2010-11; nonetheless, high dependence on imported oils is expected to continue Edible oil imports witnessed a sizeable 21% y-o-y reduction in H1 OY2010-11 (November 2010- April 2011), as can be observed in Chart 4. This has largely been on account of relatively higher domestic oilseed availability (~29-30 MT expected for OY2011 as against 24. 9 MT for OY2010) and consequently higher domestic oil production. The high crude palm oil prices (trading almost at par with soya during December 2010- February 2011), following concerns over production estimates in Malaysia, also resulted in lower imports, as edible oil players resorted to running down of inventory levels. The subsequent improvement in estimates of palm oil roduction has led to some correction in prices, which coupled with forthcoming festive demand is likely to revive import volumes in H2OY2011. Considering the current year domestic edible oil supply of 8. 0-8. 5 million tonnes per annum and factoring a normal growth of 2%-3% (through moderate expansion in cultivated area and yield improvements) in supply, ICRA expects the significant gap between domestic demand and supply to persist; and result in continued import dependence for at leas t 45% of consumption requirements, notwithstanding the dip in imports seen in H1OY2011. Apart from price, consumption is also influenced by regional preferences; palm, soyabean and mustard oil are the three major edible oils An important characteristic of the Indian edible oil consumption pattern is the variation in preferences across regions, driven by taste and availability. For instance, soyabean oil is mainly used in northern and central regions of India due to the local availability of soyabeans. Mustard oil is largely consumed in north-eastern, northern and eastern regions of India, as its pungency is a desired and inherent part of the local cuisine. Palm oil has increasingly become the oil of choice in southern India due to the warmer climate (palm oil gets a cloudy appearance in colder climates) and easy availability from South-east Asia. The increased health awareness also determines the consumption pattern with mustard and soya considered healthier than palm oil, which has higher levels of saturated fats. Oils like rice bran and olive are also gaining popularity due to their superior health properties, although their consumption remains fairly low in absolute terms. Further, price economics also have an important role to play in determining consumer choice, given that expenditure on edible oil constitutes a significant portion of the household budget. In terms of volume, palm, soyabean and mustard/rapeseed oil are the three major edible oils consumed in India and together account for 75% of the total edible oil demand, as indicated in Chart 5. While mustard oil is almost entirely produced within the country, soyabean oil is imported in significant quantities (about 45%-50%). Palm oil is entirely imported in crude form for refining in port-based refineries while some quantities are also imported in the refined form. Given the cost economics and taste preferences of consumers, ICRA expects these three varieties of edible oil to dominate the consumption mix. Accordingly, companies with an exposure to these oil varieties stand to benefit. Given the inherent volatility in prices, ICRA believes that participants with a diversified presence across edible oil categories would be better placed than participants focused on a single variety of oil, due to the flexibility to modify product portfolio in line with market parity and maintain optimum capacity utilisation levels High fragmentation and competition put margins of domestic participants under pressure: The edible oil industry in India is characterised by intense competition and fragmentation, with the presence of a large number of units attributable to low entry barriers such as low capital and low technical requirements of the business and a liberal policy regime (SSI reservation for traditional oilseeds and sales tax incentives by various state governments). While a number of inefficient units closed down after reduction of high import tariffs on imported edible oils, the average capacity utilisation rates of Indian oilseed processors remain very low (at ~30%-40%), with many of them operating only for a part of the year, that is, during the local harvest season of raw materials. As a result of this high competition and fragmentation, margins in the edible oil business tend to be thin. Further, they are exposed to risks of commodity price volatility and forex movements. Notwithstanding the above, the market includes some large industry participants like Marico Limited, Cargill India Private Limited, Adani Wilmar Limited, Ruchi Soya Industries Limited and KS Oils Limited, which have a diversified product portfolio; multiple manufacturing units and operate on a pan India basis mainly in the branded segment. ICRA believes that the larger manufacturers by virtue of their scale enjoy certain advantages like access to cheaper working capital credit and savings in cost of production, which make them relatively better positioned to withstand margin pressures and difficult industry conditions. Strong linkage between domestic and international edible oil prices: The domestic edible prices are directly linked to the prices of imported palm and soyabean oil due to heavy reliance on imports and substitutability amongst oil varieties. Given the high volatility in international edible oil prices, domestic participants are exposed to the risk of unexpected squeeze on margins due to pricing mismatches between raw materials (which are linked to domestic factors) and final product prices (affected by global factors). The nternational prices of edible oils increased sharply and reached their peaks around June 2008, driven by high crude oil prices that led to the diversion of edible oilseeds to bio-fuel usages apart from other shortages in supply. In August 2008, edible oil prices in local and international markets fell by more than 50% (month-on-month) because of a drop in crude oil prices; falling demand on account of global recession and healthy production figures. The prices remai ned volatile during FY10 with only a marginal recovery but remained lower than the peak average of FY09 on an overall basis. In recent months, edible oil prices have shown significant recovery, following increasing crude oil prices; anticipated increase in bio-fuel demand; expected production shortages for CPO production in Malaysia/Indonesia and growing demand. There is also a noticeable trend of reduction in differential between palm oil and other edible oils, especially soyabean and rapeseed oils. Given the likelihood of sustained high crude oil prices in the near term, ICRA believes that edible oil prices would continue to remain firm. Industry remains vulnerable to the risk of narrowing import duty differential: Beginning 2007-08, there has been a progressive reduction in import duties on crude and refined edible oils. Most of these policy changes have been made in order to comply with foreign trade agreements entered by India with other countries and associations such as ASEAN apart from meeting shortfalls in domestic supplies and curtailing inflation. In the last round of changes in duty structure (April 2008), the duty on crude palm oil was made ‘nil’ while that on refined palm oil was made 7. % (7. 7% including education cess), with the net duty differential being maintained at 7. 5% to protect the domestic industry3. Going forward, the reduction of import duty differential remains a key regulatory risk for the industry. Branded oil sales, although currently low in India, are expected to grow due to renewed thrust by major players Given the presence of a large number of unorganised participants in the Indian edible oil market, the share of branded product sales has remained low with most low-income consumers opting for cheaper oils sold in loose form. As per industry data, only about 31% of urban households and about 9% of rural households consume branded edible oils, with the national average at 16%. Given the low penetration of branded oils; increasing affluence levels and quality consciousness of the Indian consumers, there is a significant growth potential in the branded segment. Amongst the major edible oils consumed, palm oil is still largely traded as a commodity and sold mostly in loose form, with packaged sales accounting only for 15%-20% of total sales. Sunflower and soya oil, on the other hand, have a high proportion of packaged sales estimated at around 70% and 55% of total sales. The major participants in the organised sector, namely, Ruchi Soya, Adani Wilmar Limited (AWL) Cargill India, have a strong presence in the branded segment, with branded sales accounting for 38%, 58% and 60% of total edible oil sales of these companies respectively. Moreover, a few mid-sized, regional edible oil companies such as Mantora Oil Products Ltd, Modi Naturals and Tara Health Foods Ltd have also been striving to establish their brands. From a credit perspective, ICRA considers high share of branded sales as a strength, given the favourable outlook for growth; relatively high margins; stability of offtake and better pricing power as compared to the bulk market. Nonetheless, since branding activities entail high upfront outlay while sales volumes may take time to scale up, profitability margins of companies undertaking large-scale branding efforts are likely to come under pressure during the interim gestation period. Some trends of consolidation visible in the industry; large-scale integrated players leading the capacity addition process through expansion as well as acquisition/consolidation The edible oil industry in India in the recent past has witnessed both organic as well as inorganic expansion by some of the major players. AWL has added 1090 TPD of installed capacity for refining and 5050 TPD of installed capacity for seed processing during CY 2010-11 by acquiring five operational plants and undertaking expansion at three out of its four existing plants. AWL has also additionally taken over the operations of other Wilmar associates in India (like Acalmar Oils Foods Limited) so as to consolidate its pan-India presence. Sanwaria Agro Oils Limited has added 1000 TPD crushing capacity in 2009 through acquisition of two plants. KS Oils has set up new facilities at Kota, Ratlam and Guna, totaling 3400-3600 tpd, and acquired a refining unit at Haldia. Further, some edible oil manufacturers have also undertaken backward integration to strengthen their overall business model. KS Oils has acquired 1,38,000 acres of palm plantations in Indonesia while Ruchi Soya has access to 1,75,000 hectares of agricultural land with palm plantations across different Indian states. While ICRA considers this consolidation and capacity expansion trend as a favourable development due to the benefits associated with large scale of operations, on the flip side, the adverse impact of such activities on the capital structure; profitability and return metrics of the concerned companies, particularly during the gestation period, presents a downside risk. Financial Profile of Key Edible Oil Companies Operating margins have been at moderate levels; some brand-focused players have managed slightly superior margins: Due to the low value addition in the business, operating margins (EBITDA level) for edible oil manufacturers have inherently been in a thin to moderate range. However, some brand-focused manufacturers such as Marico and KS Oils have achieved higher margins due to high brand penetration and pricing premium. Refer Chart 7 for EBITDA margin trend. High proportion of trading revenues enhances the business risk of participants: ICRA has observed that many domestic edible oil companies have a high exposure to trading activities (in some cases as high as 30-40% of total sales). Given the low value addition and margins in the processing/refining business, promoters of some companies resort to opportunistic price-based trading in crude edible oils/seeds and maintain high levels of inventory in anticipation of price increases. ICRA notes that this aggressive trait of certain companies exposes them to the risk of losses in the event of sharp price fluctuations such as those seen in 2008-09. RoCE of edible oil players witnessed a downward trend due to capacity additions and sub-optimal utilisation levels: Given the low capital intensity of the business, the return on capital employed for edible oil manufacturers has remained in an adequate range despite thin profitability. Over FY 09- FY 10 (Refer Chart 8), however, some pressure on RoCE was sighted due to a spate of capacity additions, wherein optimal capacity utilisation could not be achieved in the year of commissioning. Business continues to be characterised by high working capital intensity: Working capital intensity (as measured by Net Working Capital/Operating Income) in he edible oil industry tends to be high because of high inventory holdings, given the seasonality in raw materials (that is, availability of oil seeds). Higher prices and higher inventory holdings had an upward effect on the working capital intensity of most participants in 2009-10 (Refer Chart 9) and resulted in higher financial costs, thereby st raining their net margins. Moderately high gearing levels: The gearing levels of edible oil companies remain moderately aggressive due to high working capital intensity and debt-funded capex activities (Refer Chart 10).

Description of the American economy of the 1920s

Description of the American economy of the 1920s Darrell WhiteEnglish 101January 26, 2003What Goes Up must come DownWe've all heard the phrase "What goes up must come down". This phrase also described the United States economy of the 1920's. The first World War made the U.S. a world power. While other countries were rebuilding the U.S. has overseas territories, plentiful resources, and began to lend money overseas s the American economy expanded.After the war ended, the economy dipped briefly. This occurred due to high unemployment among soldiers returning home from war. The stagnation didn't last long though soon the economy revived and the roaring twenties were born.United StatesThe auto industry was the engine that ran the American economy. Auto sales tripled in the 1920's, and the moving assembly line made it cheaper than ever to buy a car. The car companies also started the installment plan in the 1920's that made cars affordable for all Americans. An American could buy a Model T in any color as long as it was black.Automobile Production's effect spread far beyond car factories. It spurred the steel, rubber, and petroleum industries. It also began the trend of moving away from the cities and to the suburbs. People could now live farther away from their place of employment and drive on new roads and highways to work. During this time of economic prosperity energy use tripled, home appliances were invented including: the first automatic washing machine, the electric iron, vacuum cleaner, telephone, and radio. The income of the average American worker rose to new heights. With more money to spend you even began to see the invention of the chain store.As I stated earlier What goes up must come down. This was true in the case of the economy in the 1920's. The stock market...