Effects of Online Advertisements on Newspaper Advertisements Essay Example for Free

Effects of Online Advertisements on Newspaper Advertisements Essay Advertisements can either take the form of print advertising through newspapers, magazines, brochures, and fliers or in non-print form such as those found in television, radio, video, and internet. The key purpose of advertisements is to bring to the attention of potential customers the existence of a new product or service. A good advertisement should be able to persuade the potential customers to purchase and keep them motivated to do a certain action (Tolani, 2010). While the function of advertising has not changed from the act of influencing the decision of a potential customer, the form of advertisement has radually evolved with new advertisement media emerging. Radio advertisement emerged with the coming of radios in the 1920s. The number of people who owned radios increased to about 82% by 1940. However, television was introduced in the 1950s, and was soon a common appliance in almost all households. This resulted in the increase of television advertisement expenditure to nearly $1. 5 billion by 1960s. Outdoor advertisement can be traced back to the post World War era to the American Safety Razor Company in 1925 when it advertised a brushless shaving cream on a mega billboard (Tolani, 2010). The advent of video cassette recorders saw a new trend in advertisement during the period between the early 1980s and late 1990s. The video cassette recorders became very popular with viewers, but video advertisement met a major hitch as viewers easily fast-forwarded ONLINE AND NEWSPRINT ADVERTISEMENT 11 through advertisements while watching tapes. This compelled firms to resort to product placement in which their products were used in television shows and films. The latest media development in this field is the use of internet for advertising. There has generally been an increase in computer ownership and the use of internet has rapidly grown. It might not be easy to predict the advertisement media that will be widely used in the future. However, it is an open fact that advertisements will continue to improve and strive to become more useful to businesses and to the consumer (Tolani, 2010). Entrepreneurs and business managers are faced with the challenge of making a choice for an advertising media on a daily basis. This is because the success of their establishments greatly depends on the ability of the entrepreneurs and managers to create product and service awareness, build their firm’s image and reputation, and generate sales leads and revenues. These efforts can only be realized by the use of newspaper and magazine advertisements, radio advertisements, television advertisements, outdoor advertising, web advertising, among many other advertising media. What will determine the final medium choice may vary from one business to another and the various factors that are in play toward meeting the specific business objectives (Patsula Media, 2007). Irrespective of the medium of advertisement that a business chooses to use for its products and services, it is important to note that both the print advertising and online advertising are highly necessary, given that the approaches toward both, the purposes, and even the audiences are very different. It is not very advisable to consider one of these media as more effective that the other on mere basis of seasonal variance because either may overtake the other at some give time. A good number of people also have access to both sources and this makes it ONLINE AND NEWSPRINT ADVERTISEMENT 12 mportant for entrepreneurs and business managers to give due consideration to both (Web Windows, 2010). Thesis Statement Given the increased growth of information that is available over the internet and the subsequent increase in the number of people who tend to spend more time on the internet, companies are turning to advertise their goods and service online so as to capture this newly generated m arket. Emphasis has thus shifted to the possible effects that this emerging trend of online advertisement may have on newsprint advertisement, both in popularity and advertisement revenue. Statement of the Problem Advertisement plays a very important function in the trading processes as it is the only means through which a business can bring to the attention of the consumers about their products, introduce a new product in the market or promote the sales of an existing product or service. All these are core activities—without which, a business setup cannot effectively compete for customers in the already-crowded market. Though there are numerous media through which a business may place its advertisements, the most commonly used medium is the newspaper because of its wide readership and circulation. With the advent and advancement of technology, newspaper publishers have embraced information technology to an extent of presenting their publications both as newsprint and online versions. This advancement means that entrepreneurs have the option of choosing which version of a newspaper through which to place their advertisements. This will mainly be determined by an entrepreneur’s own evaluation of the medium that will best suit the business needs. Lately, there ONLINE AND NEWSPRINT ADVERTISEMENT 13 as been growing debate about the popularity of online newspaper and newsprint. This debate cannot escape the attention of entrepreneurs who significantly rely on these news media for their advertisements. There is general consensus that online versions of newspapers are gaining popularity among readers worldwide. Could this increasing popularity and, to some extent, translate into increased preference by entrepreneurs to place their advertisements online instead of the newsprint version of newspapers? Background of the Problem Given the central role which newspapers play in the advertisement of goods and services by businesses, it is only important that entrepreneurs give special attention and critical evaluation on the volume of readership and scope of circulation of both the online version and newsprint version of newspapers. This would mean that new considerations are factored in when making a choice for advertisement media by business contrary to previous emphasis that focused only on readership and circulation. Ability to access n advertisement by potential customers is a major concern that attracts heated boardroom debates in companies, particularly due to intense competition for the crowded market. The significance of an advertisement media with regard to scope of outreach means that both entrepreneurs and advertisement agencies have a responsibility to adopt the use of advertisement media capable of optimizing market outreach for a product or service. Key aspects for consideration with regard to ch oice of advertisement media are mainly in areas of target audience and access. These entail considerations of readership and circulation which would ensure that an advertisement reaches the highest number of target audience within the shortest duration possible and draws attention in the most appropriate way. ONLINE AND NEWSPRINT ADVERTISEMENT 14 While many entrepreneurs are coming up with several measures of ensuring they significantly save on advertisement costs for their products and services, advertising agencies are of the opinion that optimizing market outreach can best be achieved by choosing a media with huge readership and wide circulation. Key areas suggested by advertisement experts include impact and ability to attract attention among other advertisements. When due consideration is given to these two aspects, an advertisement media will be able to achieve market outreach by approximately 70%, which is equivalent to nearly 5% of the total product market in a crowded environment. It is generally agreed that upgrading of newspapers to online versions can help to significantly improve their readership and accessibility, translating to wider market outreach for online advertisements. Such advancement in technology has for long been credited as significant part of increasing readership, expanding circulation, and making lasting impact in advertisement. The most remarkable gain for online advertisement can be attributed to the increase in number of people owning computers and therefore spending a lot of time on the internet unlike the numbers of people buying newsprint and the time they spend reading it. Justification for the Study Effects of online advertisement toward newsprint advertisement are a welcome topic at this time when there is growing concern that newsprint advertisement is becoming less and less effective in an environment where consumers are increasingly getting their information online and from other non-traditional sources. This belief has also drawn a lot of objection from newspaper advertisement sales agent who insist that newsprint advertising is more effective than online advertising. To them, newsprint advertising is tangible, making it possible for a potential ONLINE AND NEWSPRINT ADVERTISEMENT 15 customer to clip it out, hold in the hand and carry to the store unlike online advertisements, which is only visual. Though online advertisement can cost a business slightly more, it is becoming more popular with consumers and can thus not be simply brushed off. This calls for a strategy that will ensure that this advertisement medium is embraced without jeopardizing the profits of a business. Deficiencies in the evidence The choice of an advertisement media that an entrepreneur or a business opts to use for its products or services are mainly determined by size of business and the target audience— whether they are other businesses, youth, elderly, men or women. The access to an advertisement by these groups of persons is quite varied as all of them have their own preferences of media choices. The youth may be found of internet while the elderly may be accustomed to newsprint. While online advertising may make a big impact among the youth, it may not necessarily do the same with the elderly or housewives. The size of a business will also play a big role in the choice of advertising media. For example, small businesses may not have all the money to invest in certain media which are considered expensive and are therefore a preserve for big businesses. Advertising is an expensive venture and may not be appealing or affordable to all entrepreneurs. This means that the choice of a media may not necessarily be determined by its effectiveness but rather by the investment capacity of any given entrepreneur. Evidence obtained for this study will thus be influenced to a greater extent by individual entrepreneur considerations and not necessarily by the popularity of any given media. ONLINE AND NEWSPRINT ADVERTISEMENT 16 Definition of Terms Advertising Media: refers to means by which an advertising message is carried to potential customers and includes television, radio, internet, magazines, newspaper, and signage Online Advertising: refers to advertising that is done over the internet Newsprint Advertising: refers to placing advertisements on a newspaper Purpose of the Study The purpose of studying effects of online advertisement toward newsprint advertisement is to: 1. Ensure that entrepreneurs are provided with ample information regarding the various advertisement media to enable them make informed choices 2. Ensure that myths revolving effectiveness of either newsprint advertisement or online advertisement are eliminated and substituted with live statistics 3. Ensure that advertisement agencies are able to adjust their media in a manner that will enable businesses reach their target audience in the most effective way and at the least cost possible 4. Ensure that recommendations are made that would help entrepreneurs make a choice on the most effective media for their advertisements. This study is significant because it would help in ensuring that useful information is made available to help entrepreneurs with their advertisement decisions, particularly those focusing on newsprint and online advertisements. It will also ensure that advancements in technology are ONLINE AND NEWSPRINT ADVERTISEMENT 17 embraced and advertising services evolve to best meet the opportunities and challenges of the future with regard to market outreach. Hypotheses The following hypotheses were tested in this study: 1. H01: Advertising plays a central role in business success. HA1: Advertising does not play a central role in the success of a business. 2. H02: Most businesses advertise on newsprint media. HA2: Most businesses do not advertise on newsprint media. 3. H03: Most entrepreneurs prefer to use online advertisements for their products. HA3: Most entrepreneurs do not prefer to use online advertisement for their products. 4. H04: Newsprint advertising is more effective that online advertising. HA4: Newsprint advertising is less effective than online advertising. 5. H05: Online advertising is the future of product advertisement. HA5: Online advertising is not the future of product advertisement. Summary The shift in focus by entrepreneurs and businesses to put more attention on online advertisement instead on the traditional advertisement media is broadly seen as one of the main steps toward technological revolution of the advertising industry. This would go a long way in realizing wider market outreach and increased sales for businesses and publishers who embrace the internet for their publications. This, in essence, would mean increased readership for online version of newspapers, translating into bigger profit margins. ONLINE AND NEWSPRINT ADVERTISEMENT 18 This study has been designed to explore various modes of newspapers as major advertisement media which can be used by entrepreneurs and businesses to advertise their products and services. Special focus has been given to Star Newsprint and Star Online, which are Malaysia’s leading English publications. Chapter two of this work is an extensive literature review on matters relating to online and newsprint publications as well as online and newsprint advertisement. Chapter three is an outline of data collection and treatment while chapters four and five respectively present findings and discussions. Chapter six outlines major conclusions and recommendations. ONLINE AND NEWSPRINT ADVERTISEMENT 19 CHAPTER 2: LITERATURE REVIEW Introduction Newspapers have conventionally played a very significant role in the advertisement of goods and services. This has been mainly attributed to their wide readership and circulation since they can be easily obtained, from the nearest street vendor to the biggest shopping mall in the biggest city. The readership of newspapers also cut across all ages, sexes, and social classes as they normally publish articles that would be useful to all these category of persons in one way or the other,. Newspapers have for long dominated the advertisement scene due to the low costs involved as compared to other advertisement media. Newspaper comes either as newsprint or online. Newspaper publishers have lately resorted to the two kinds of publication to meet the various demands of different readers (Mutter, 2010). The introduction of online version of newspaper has seen a significant drop in the readership of the print newspaper, and this trend is projected to continue into the future. This scenario which is almost inevitable and probably irreversible is generating big concern on the future of printed newspaper as well as newsprint advertisement. The printing of newspaper remains very important for publishers since it is responsible for the biggest volume of revenue for publishers, contributing nearly 90% of the total revenue for a newspaper company. Analyst are quick to point that any attempt to rid of print newspaper would simply through publication companies out of business since the advertising revenue will almost drop to 5%, if not zero (Mutter, 2010). However, the continued survival of print newspaper will to a great extent be determined by consumer demands, good state of an economy, and the interest of marketers to use newsprint ONLINE AND NEWSPRINT ADVERTISEMENT 20 advertising. It is predicted that with the diminishing economic prospects declining advertising revenue, there is a high possibility of a major drop in consumer demand for print newspapers. This is based on the fact that close to half of print newspaper readers are aged population who are statistically likely to pass out with time. The younger population is not found of print newspapers, and this habit will probably accompany them to old age. Unless this readership habit of the younger population changes, it is quite evident that the print newspaper readership will continue to shrink as the aged population slowly makes their exit, leaving the younger population that has already formed a habit of not reading the print newspaper (Mutter, 2010). Evaluation of Print Newspaper Print newspaper has conventionally been associated with a number of advantages, which have probably made it very popular. It is generally agreed that print newspapers have loyal readership, which makes it a powerful advertising tool as compared to internet. Print newspaper is considered very effective when a particular geographic area is being targeted; for example, when you want to notify people of about a forthcoming sporting event. For those who have information to convey, print newspaper is more flexible in terms of space as one is able to determine the size that would best suit his/her needs. Certain print newspapers enjoy many loyal fans, thus increasing their readership (Lad, 2009). On the other hand, print newspapers have certain disadvantages. Print newspaper generally has limited lifespan, meaning they are only available to the public for a single day after which they are withdrawn from sale. Print newspaper may not give a wide reach as compared with internet that has a global audience. Print newspapers have the limitation in terms of the ONLINE AND NEWSPRINT ADVERTISEMENT 21 audience who may actually read it, and certain copies may actually not be available on demand at all times (Lad, 2009). Evaluation of Online Newspaper Online newspapers tend to offer information to the reader much more quickly as compared to the print version. The online version is always available on the internet before the print version is on the streets. Online publications can normally be updated several times in a day with the latest news and happenings. Moreover, while print version is purchased, online newspapers are accessed free of charge. This makes it possible for a reader to use a wide spectrum of newspapers possible. Online versions enable users to make use of links to divide large units of information into more easily digestible portions, and to search information in the newspaper is also automated. Readers of online versions are able to archive articles on the computer, contact editors via e-mail, and use interactive games (Lad, 2009). The disadvantages attributed to online versions included the fact that they do not give detailed reports on all the subjects and tend to omit several sections found in the print version. This limits information available to the online reader. Reading from a computer does not convey the traditional experience of reading a newspaper, which is a key characteristic of print newspaper. During peak times when several users are scrambling to access news, the download times are very long. Online newspapers are characterized by so many links which are quite confusing instead of being useful, particularly the amount of research necessary and the need to constantly check the link address. One gets tired looking at the computer screen and it may take time to get used to them (Lad, 2009). ONLINE AND NEWSPRINT ADVERTISEMENT 22 Case Study: Star Online and Star Newspaper The Star is one of the leading English language newspapers in Malaysia. The statistics issued from the Audit Bureau of Circulation indicate that the print version of this newspaper has a daily circulation of nearly 950,000 copies while the Sunday Star records a readership of nearly 850,000. The publication is mainly owned by the Malaysian Chinese Association. The main competitors of this publication are The Sun and the New Straits Times, which are also published in English. The Star newspaper traces its history back in 1971, when it was first published as a regional newspaper in Georgetown. By 1976, the newspaper had gained national circulation in Malaysia, and established its headquarters at the country’s capital, Kuala Lumpur. The growth in business saw the company relocate to Petaling Jaya, where it is currently based (Star Publication, 2009). The company’s print newspapers, The Star Daily and The Sunday Star are published in five different editions. Two of the editions cover the northern eninsular states of Penang, Kedah, Perlis, Kelantan, and Perak. Two other editions cover the larger country. The Star Daily is divided into sections consisting of the Main Paper, StarBiz, StarTwo, Star Metro, and classified section. The features of the Main Paper are predominantly local and international news. The StarBiz is mainly concerned with trade and reports on market trends, financial reports, and stock market updates. On the other hand, Star Tw o mainly feature articles on entertainment, environment, science, lifestyle, and fashion among several others. Lastly, the content of Star Metro is varied and tends to focus more on the area of circulation (Star Publication, 2009). The continued demand by the publication’s readers saw the emergence of The Star Online, which is an internet version of The Star newspaper. This was in response to the persistent ONLINE AND NEWSPRINT ADVERTISEMENT 23 demand for an online version of the newspaper, and it finally made entry into the market in 2005. The company prides its strengths as a newspaper on the cornerstones of internet and media ventures. The Star Online and its many components are produced, managed, developed, and contributed to by the Star Division, The Star Online and Multimedia Newsdesk teams of The Star’s Editorial Department (Star Publication, 2009). Newsprint Advertisement Advertisement can be traced to the emergence of trading activities from very early days as evidenced by archeological artifacts drawn from different parts of the world. With the invention of the printing press in 1440 by Johannes Gutenberg who was a German Goldsmith, merchants were able to duplicate advertisements for their wares. By the late 19th and early 20th centuries, newsprint advertising had become the primary means for companies to communicate their sales and promotions to the consumers. This was mainly through media such as newspapers, magazines, fliers, posters, and billboards (Walker, 2010). Following the invention of printing press, advertisements became a common place in weekly newspapers and periodical journals. The items, which were mainly featured in such advertisements, included new machines, other print publications or reported the discoveries and inventions of the enlightenment era. The first newsprint to offer advertising space for sale was the French publication La Presse in 1836. This saw this newsprint being sold more cheaply, hence recorded increased readership and profitability. This move inspired other newspapers and magazines across the world to follow suit in this commercial strategy. In the contemporary newsprint, advertising designers are able to visualize highly creative commercials through digital image manipulation in order to make the biggest market impact (Walker, 2010). ONLINE AND NEWSPRINT ADVERTISEMENT 24 Newsprints still remain key advertisement medium for every business to such a point that it is hard to imagine doing business without advertising in a newspaper or a magazine. This is particularly important for small businesses that can hardly afford other media of advertisement. Paid-circulation newspapers have for long dominated the mass media market for advertisement as reflected in advertisement sales volumes. Newspapers are very popular with both multinational businesses and small-scale dealers. This is probably due to the fact that businesses come in three distinct forms namely local, regional, and national newspapers each targeting different audience according to its scope of circulation (Patsula Media, 2007). Advantages There are a number of advantages that print newspaper advertisements have over online advertisements. Print newspapers have very wide circulation as almost every home in the city subscribed to daily access of a printed newspaper. Where the advertisement is intended to reach audience only in a particular geographical region, print newspaper readily permits this. The printed advertisement benefits from both permanence and desired obsolescence. This means that a reader is able to refer back or even cut out a particular advert. Print newspapers have a predictable frequency of publication, either on daily or weekly basis, making it possible for advertisers to target days of wider readership for their adverts (Brassil, 2010). The immediacy that print newspapers have makes it possible for urgent advertisements to be responded fast, thereby producing urgent results. When deadlines are short, it permits quick responses to changing market conditions. Readers are already accustomed themselves to getting advertisements on print newspapers to an extent that a good number buys print newspapers just to read advertisements. At the same time, print newspaper reading has nearly become a habit for ONLINE AND NEWSPRINT ADVERTISEMENT 25 most people. Specific sector adverts can be very easily placed on the various sections of print newspaper such as sports, news, and classifieds to ensure the target is directly hit (Brassil, 2010). Print newspapers give advertisers a lot of flexibility both in size and placement. This means that production changes can be easily responded to whenever the need arises. Advertisements that are placed on print newspapers can be examined at leisure since the exposure is not limited, thus readers are able to take their time going through the message. Since placement on print newspaper can be tailored to a size that suits the budget of the advertiser, it is possible even for small businesses to place their small adverts at low costs. Print newspapers offer wide options to advertisers whether place their advertisements as copy only, copy with graphics, colored, or black and white. Finally, print newspapers features supplements which readers can easily pull out and save (Brassil, 2010). Disadvantages Advertising on print newspaper has not escaped its own set of shortcomings. Because of the large number of advertisements which are featured on the newspaper, any particular advertisement must compete for reader’s attention. This means that readers who only spend a few minutes reading the print newspaper may fail to capture the advertisement. At the same time, there is hardly a guarantee that everybody who reads the print newspaper will read the advertisements placed in it. This is because a print newspaper has several sections and not all readers read every section of the newspaper. The short lifespan, normally daily, that newspapers have forces advertisers to insert multiple advertisements even for a whole week so as to reach a good number of readers. This may be expensive particularly for small businesses (Brassil, 2010). ONLINE AND NEWSPRINT ADVERTISEMENT 26 Online Advertisement The revolution in information and communication technology has come with both opportunities and risks for the business community, particularly from the point of view of the traditionally-established media. Internet as a form of computer aided communication is equally unsure for the print media. The technical potential in advertisement that online newspaper offers surpasses that of the printed newspaper in several ways. Online newspaper is interactive multimedia for providing internal and external networks, while offering a selection of functions, possibility for regular updates, access to archives, rapid access to large number of newspapers, and being paperless, thus ensuring there is no problem of waste disposal (Neuberger, Tonnemacher, Bibl Duck, 1998). Advantages The economic constraints that businesses face on everyday basis often leave enterprises with very little money to spare on advertising. This is more common among the small businesses who often find themselves light in the pocket. It is therefore important to opt for an advertisement medium that give optimum output and minimal costs. Online advertisement is generally seen to be complacent in this line than the traditional newsprint advertisement. When online advertisements are on a pay-per-click basis, an entrepreneur only pays when a potential customer clicks on the advert and ends up on the entrepreneur’s website. This ensures that businesses only pay for leads that end up in their website as opposed to mass messages in the print newspaper that may or may not reach the target audience. There is therefore maximum return on investment for a business using online advertisement (Rogers, 2010). ONLINE AND NEWSPRINT ADVERTISEMENT 27 Online advertisement also works very quickly given the fact that the day that one gets started is the same day that results manifest. There is basically neither waiting period nor long startup process. Once an entrepreneur is ready to get started, he/she can very easily launch a successful advertisement promotion on a number of channels. This tends to produce quick results and the campaign can also be maintained for a longer period of time unlike print newspapers which have daily lifespan. Online advertisement enables businesses to target their markets more efficiently than print newspapers. This can be achieved through the use of social networks that an entrepreneur considers relevant to the campaign. Once these social networks are identified, a business can dig very deeply into their niche, enabling them to produce the maximum results with very little investment (Rogers, 2010). Advertising online has the advantage of giving elaborate and thorough statistics that enables a business to tweak and optimize their campaigns to the maximum. This is a total deviation from newsprint advertising when one can do very little to track the success of one campaign as compared to another. Online advertising avails quite a number of information just at a mouse click. With online advertising, an entrepreneur is able to monitor the number of people who visits the business website, where they come from, what they did once they were there, and many other details. Online advertisement also allows full control and analysis since one is able to manage how many times to show up in the search engines, thus make it possible to gain huge returns for the business (Rogers, 2010). Disadvantages One key disadvantage that is associated with online advertisement relates to advertising overload as there is incredible amount of clutter on most web pages. This arises from the fact that ONLINE AND NEWSPRINT ADVERTISEMENT every advertiser tries to draw the attention of web viewers, making readers have access to too much information which they can hardly digest. Under these circumstances, the web viewers normally choose to ignore the advertisements and this will lead to low rates of return. Also, online advertisement is still a new concept for many advertisement agencies, which simply cannot tell just yet which advertising method works best (Rogers, 2010). 28 ONLINE AND NEWSPRINT ADVERTISEMENT 29 CHAPTER 3: METHODOLOGY Introduction In research undertaking, the methodology section is one of the crucial areas to be tackled in a proposal document because it forms the basis of the results of research findings. A research can be faced with big challenges due to wrong choice of method used. To avoid this, good planning of the method is essential and in order to get reliable results. The issue of reliability establishes that a research should have the ability to show consistency in the results even after a study is repeatedly done by different researchers. Reliability in research study can also be enhanced through good structure of the methodology. When the correct data collection methods are used, proportional samples are collected, and the correct method of analysis is used, a research can achieve validity. Since this thesis is inductive in nature, it prompted the application of a qualitative methodology. This means that the views of newspaper publishers and advertisement experts have been given a lot of weight. This was done by administering both physical and online questionnaires as well as conducting in-depth interviews—each lasting nearly 45 minutes. Those interviewed had to be newspaper publishers, advertisement agencies, and general newspaper readers in Malaysia who have been in the sector for the last five years. Moreover, at the time of the interview, they were actively engaged in related media and general businesses. This ensured very rich data was gathered from persons with a wealth of experience. Data Collection Methods The key purpose of data collection was to ensure that a rich set of description was obtained. To achieve this, the interviews were transcribed in real time by the interviewer. The ONLINE AND NEWSPRINT ADVERTISEMENT 30 responses were then reduced and analyzed by adopting principles of data codification and clustering (Miles Huberman, 1994). This was supplemented by administration of questionnaires as well as comprehensive review of relevant literature. Sources The data gathered for this research is from a wide range of documentary sources relating to newspapers as advertisement medium in general as well as those specifically relating to print newspaper and online newspaper giving special emphasis to The Star Publications. These mainly included policy documents and academic and the non-academic documents. First, journals on newspaper advertisements were searched. Second, electronic databases were searched using key words like ‘newsprint advertisement’, ‘online advertisement’ ‘real The Star newspaper’ and ‘effects of online advertisement on newsprint advertisement. ’ Literature review included both conceptual and empirical works, with about 15 articles reviewed for this study. Interviews The interviews dwelt on the following areas: ? The considerations when choosing advertisement media ? The relationship between newspaper readership and circulation and advertisement impact ? The means of promoting advertisement on both print newspaper and online newspaper so as to enable business reap maximum benefits from these advertisement media ? What the future holds for print newspapers and online newspapers, with emphasis on The Star Daily and The Star Online. ONLINE AND NEWSPRINT ADVERTISEMENT 31 Questionnaires A questionnaire survey of the newspaper publication sector was conducted to understand the aspects of print newspaper and online newspaper advertisements in Malaysia. The survey was explanatory in nature as the objective was to gain insight on the effects of online advertisement on newsprint advertisement. The questionnaire was administered to nearly 100 Malaysia entrepreneurs, 100 Star Publication readers, and over 100 advertisement experts. The set sent to the entrepreneurs and advertisement experts included a cover letter, which explains the purpose and need for the study, the questionnaire document, and a prepaid reply envelope. Letters reminding the respondents of the questionnaires were later sent to those who had not responded within the three weeks duration. Case Study This thesis involves classical use of case studies to gain a deeper insight through the application of a set of ideas. A multiple case study approach helps in developing a theory which is better grounded, more accurate, and more generalized (Eisenhardt Graebner, 2007). Case studies are introduced to test the possible effects that advertising in online newspapers could have on advertising on print newspapers, and the users’ adoption of one over the other. The use of case study is important in practical testing of theories with practitioners in real life situation. The case study organizations are selected based on the idea of theoretical sampling. This is because when it comes to building a theory, theoretical sampling tends to be preferred as compared to generalized concept found in statistical studies. This means that the cases are chosen for theoretical and not for statistical reasons (Schroeder, Linderman, Liedtke Choo, 2008). An analysis has been developed on how the use of online advertisement is steadily gaining popularity among entrepreneurs in Malaysia, and particularly the use of The Star Online. ONLINE AND NEWSPRINT ADVERTISEMENT 32 Survey Analysis From the nearly 100 questionnaires that were mailed to entrepreneurs, 85 were returned. This represented an 85% response to the questionnaires. However, those that contained usable data were only 70, thus a satisfactory response rate can be said to have been reasonably attained. From the 100 questionnaires administered to advertisement experts, 80 were duly completed and handed over. From these about 74 contained usable data representing nearly 80% response rate which can be considered satisfactory. Ninety-five out of the 100 readers of both versions of The Star duly responded to the questionnaires and all had useful data. Chart 1 Treatment of Data In research, the data collected need to be synthesized in order to make sense with regard to what is being studied. The data from the questionnaires in this research were analyzed extensively to retrieve the information contained in them (Zikmund, 2003). The triangulation method for data analysis and interpretation was used to interpret the data collected, basing arguments on grounded theory (Dick, 2000; Knafl Breitmayer, 1991). In addition, the information obtained from the case study were analyzed individually and thereafter, a comparison was made between the different data sources. ONLINE AND NEWSPRINT ADVERTISEMENT 33 Research Limitations The main limitation that may be pointed out in this research is the use of a single case study. However, it is also true that online advertisement is still a recent concept that has not gained much popularity among entrepreneurs. At the same time, the single case approach has weight in the sense that it allows the achievement of a comprehensive analysis. Some of the information have also not been validated through multiple case analyses so as to provide a solid and practical basis for understanding the effects of online advertisement on newsprint advertisement. Rigor, Validity, Reliability, and Ethics The four categories of quality management in research were highly considered. These include validity, reliability, ethics, and rigor (Zikmund, 2003). Reliability of a research is its ability to demonstrate consistency in results; this was achieved through the control of sample by stratifying the population to get a more representative sample. On the other hand, validity is the ability of a scale to measure what it is intended to measure but not going beyond the topic of the study. The triangulation method was used to control this aspect in the thesis. Ethics involves adherence to the norms accepted in gathering of information and this has been ensured by providing secrecy on the information collected from the entrepreneurs. Lastly, the rigor of the research was directed toward efficient sample size in a critical facet in any investigation. The main purpose that a researcher utilizes a sample is to reduce the charges and to collect important data faster (Zikmund, 2003). ONLINE AND NEWSPRINT ADVERTISEMENT Human Rights Protection The people who were interviewed were assured of their confidentiality. In addition, the information gathered ensures the people’s privacy. The entrepreneurs and their businesses will have their rights protected. Research Schedule/Timeline This research took a period of eight weeks. This is considered an ideal timeframe given the busy schedule of some of the subjects who were to be interviewed and have granted appointments at later dates. A detailed summary of the work plan for the research has been tabulated below: Table 1: Work Plan Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Research proposal Preliminary literature review search Literature review and writing Interviews Case study collection Interview editing, coding and interpretation Report interpretation Report writing and presentation 34 ONLINE AND NEWSPRINT ADVERTISEMENT 35 CHAPTER 4: RESULTS Research findings indicate that The Star Online is not yet well explored as regularly as The Star Daily print version. According to the survey, only 41% of the users of The Star Online read it daily, as opposed to the 60% who read The Daily Star daily. Chart 2 Seventy percent read The Star Online edition several times a week, while 80% read The Star Daily several times a week. Only 5% of online users say they never read a print version. Online newspapers are read less frequently and also for shorter periods than printed newspapers. Four out of five users (81%) spend less than an hour reading The Star Online on days when they read it. Only 35% of print readers spend such a short time on it. About one-third of the readers of both The Star Online and The Star Daily were unwilling to pin themselves down to a particular time of day for reading the paper. One in four (25%) said they read The Star Daily between 5 and 9 a. m. The main time for reading The Star Online is around 6 p. m. (38%)—this is the time preferred by users of the online edition, which can be read ONLINE AND NEWSPRINT ADVERTISEMENT 36 on the evening before the printed version appears or which are updated several times in the course of the day. In The Star Online version, the classic sections of the newspaper are the most frequently used. The section Local News is also highly popular. One in three readers of the online version uses the archive frequently (32%) and only about one-third of users did not read the small ads (37%). Items with entertainment value or with feedback possibilities were not very popular. Clear differences emerged between the different kinds of versions, and this only shows that preferences are transferred from the print media to their online equivalents. Proof of this is the strong interest in Local/Regional Affairs of Internet users of local and regional newspapers or the importance attached to up-to-date information on politics and business matters. A number of questions dealt with the comparison of the information content of The Star Online compared with The Star Daily. Compared with the print version, the online newspaper was rated 45% of the respondents as providing more expanse of information, while only 30% voted in favor of the print version on this criterion; 20% rated both versions on this count. The smaller size of The Star Online compared with The Star Daily may be the reason that the print newspaper was rated by considerably more respondents as providing greater scope of information. Chart 3 ONLINE AND NEWSPRINT ADVERTISEMENT 37 Regarding finding information in the paper, the position is more positive for The Star Online: 50% of users stated that they could find their way around just as well as in The Star Daily, while 20% were able to find their way around the online version better. With regard to entertainment value, 40% of users found The Star Online just as good as print version, 35% of users rated print version better and 27% favored online version. What about reader loyalty? About 65% would have chosen The Star Daily and just fewer than 30% would have preferred The Star Online, if only one of the versions had been available. The decision in favor of the print version was based on its portability, while the advantages of the online version were seen as being its accessibility from outside the normal circulation area and the avoidance of unwanted paper. The main advantage, however, in the eyes of the respondents was that online newspapers are normally provided free of charge. It is therefore not surprising that only 35% of users would be prepared to accept a charge. Out of these, 80% stated that they would only be willing to pay for online newspapers if they were cheaper than print newspapers. Only 1% of those users willing to accept a charge could imagine paying more for online newspapers. Apparently, then, users are not willing to pay for the advantages of online newspapers. ONLINE AND NEWSPRINT ADVERTISEMENT 38 CHAPTER 5: DISCUSSION The case study of Star Publications shows that online newspaper users base their activities and/or expectations on the print newspaper and use or design their product accordingly. The online user knows what to expect of a site as the online version retains the name of the printed version, use a similar layout, and similar contents. Moreover, the positive image of a paper can be transferred to the internet. On the other hand, too strong orientation toward the printed original could mean that the possibilities offered by internet technology are not fully exploited—that copy is simply lifted from the printed version. Given such trends toward the future consumption of newspapers, it is clear that online newspapers are steadily taking over the readership of print newspapers. This has the potential of influencing the choices of advertisement media, which entrepreneurs will be making regarding print newspapers or online newspapers. The concern for newspaper publishers would be about the timeframe for which their print newspaper audience would be big enough to justify such huge investment toward publication and distribution of print newspapers. Similar concern would be to entrepreneurs and businesses which still rely heavily on print newspaper for their advertisements. Are they likely to continue using print newspapers for their advertisements or the trend would most likely shift toward online newspapers? The introduction of charges for use seems scarcely possible—at least not as long as the same or similar information is available on the Internet free of charge. The doubts of the advertising industry may evaporate as the Internet becomes increasingly widespread and commonly used (Mutter, 2010). ONLINE AND NEWSPRINT ADVERTISEMENT 39 CHAPTER 6: CONCLUSION AND RECOMMENDATIONS Major Conclusions It would be quite wrong and misleading to rule out the future of print newspapers as advertising media just because of the increased use of online advertising. The reality is that paid circulation newspapers like The Star and Sunday Star still remain very popular advertising media for both local and international businesses. Print newspapers are the most aged forms of mass media, and will thus continue to be dominant in this field, recording big volumes of advertising revenue. Multinationals and local convenience store will continue to depend on print newspapers for their advertisements. Print newspapers are found in each and every community worldwide and readers are very fond of them (Brassil, 2010). Both online and newsprint advertisement have their characteristics which show strong and weak points. This explains why despite the perceived decline in readership of print newspapers, a scan through a print newspaper will reveal a number of businesses that continue to place their advertisements on daily basis. The continued presence of advertisements on newsprint clearly indicates that it still works as a very effective advertisement medium. Although printed newspaper no longer enjoys exclusive monopoly as the predominant source of news, it is clear that they still remain a strong factor in their specific sphere of influence, and online advertisement is not about to edge it out (Brassil, 2010) Recommendations 1. Entrepreneurs should highly consider using both print and online newspapers for their advertisements since both have reasonable number of loyal readers. ONLINE AND NEWSPRINT ADVERTISEMENT 2. When placing advertisements on online newspapers, designers should avoid putting a lot of emphasis on feedbacks since readers rarely give them attention. 3. Advertisements on both versions of newspapers should be critically placed on segments that are frequented by readers so as to attract their attention with ease. 4. Links placed on online newspapers should be more easy to use so that readers can easily navigate through the paper. 5. Most advertisements that target younger persons should be preferably placed on online newspapers while those targeting older people should be placed on print versions.

Is Globalization Good or Bad?

Is Globalization Good or Bad? Globalisation is a wildly popular subject of discussion in todays literature. It is a phenomenon which has many different dimensions, which include economic, cultural, environmental and political issues. There is a wide spectrum of different opinions about its origins, present effects and future outcomes. Moreover, almost every globalisation aspect is a subject of a very heated academic debate. The topic is so debatable that there is no one conventional definition of globalisation. Nevertheless, it can be narrowly defined as the international integration of markets in goods, services and capital. Thomas Friedman defines globalisation as that loose combination of free trade agreements, the Internet and the integration of financial markets that is erasing borders and uniting the world into a single, lucrative, but brutally competitive marketplace. Whereas Dicken defines globalisation as a more advanced and complex form of internationalization which implies a degree of functional integr ation between internationally dispersed economic activities (Dicken, P. 2003). There are many different ways to approach the issue of globalisation. Most generally the academic debate on the topic of globalisation can be divided into three distinct camps: hyperglobalists (Ohmae, Friedman, Giddens), sceptics (Hirst and Thompson, Ruigrok and van Tulder, Sachs and Warner) and realists (Dicken). While hyper-globalists accept globalisation as a fact and generally perceive it as a beneficial process, sceptics argue that the characteristics of the phenomenon have already been seen at other moments in history and that it is largely negative in its effects. Realists hold the middle ground between these opposing views and support the idea that benefits can arise from globalisation, however it is also critical to establish some sort of regulation. Nevertheless, before considering any theoretical frameworks or any high level academic analysis, I would like to think about a hard socio-economic evidence on which most of the above thinkers arguments are based. In the main body of my work I would like to consider negative and positive outcomes of globalisation which will be dominantly structured around six main socio-economic factors, which include: effects on employment, growth in inequality, environmental damage, international institutions, power of governments and foreign direct investment (FDI). Employment. In regard of employment many sceptics argue that the process of globalisation leads to relocation of work to developing countries from developed, which in effect increases unemployment in the developed world and leads to greater exploitation of workers in the countries to where re-location takes place. To elaborate on the above argument I can say that it was certainly true at the early stages and in many instances still is that there are many places in the world, like South-East Asia, where conditions created by large multinational companies are generally inhumane. Notoriously famous production sites of Nike in Vietnam and China are not as appalling as they used to be, however most developed country workers would still consider them as unacceptable. It also true that many thousands of workers in countries like Britain, Germany and US keep on loosing their jobs to more cost effective sites elsewhere. A good example would be Dysons and Black and Deckers relocation from Britain to lower cost centres in the far east and central Europe. Also there is another frightening aspect in changes of the global employment patterns, which is fall in the real wages. This trend shows up especially strong in the US labour market. Arguably it happens because of increase in wage bargaining powers of large multinational enterprises, which now can use excuse of relocation and increased international competitiveness to ditch an additional pay rise. On the other hand, it can be argued that the conditions provided by multinational companies in developing countries most of the time are a long step ahead of local businesss and keep on improving. One needs to consider a notion of the opportunity cost to see the true picture of what is going on. If a so be employee of the Nike factory would not take a job at the factory he would most likely end-up working for a much lower wage in worse conditions or being forced to supply the black market with any personal services they could, which in most cases arent of the most pleasant nature. One study found wage premium associated with FDI of 12% for blue collar and 22% for white collar workers. It can also be argued that the sweatshops are just a step in the process of industrialisation, which helps to eradicate uncertainties related to the agricultural societies. An example of South Korea can serve as a good illustration. In 1960s the country was twice as poor as North Korea, however due to t he policy of openness adopted by the South Korean government the country experienced a breathtaking period of economic growth; it is now as rich as Portugal and a member of OECD. South Korea also begun as a supplier of basic services like clothe manufacturing, and now it is the biggest shipbuilder, steel producer and provider of broadband internet in the world. (other employment arguments: labour costs are determined by the amount of labour used, as well as by prevailing local wages. Whereas, the price of a Nike shoe is set according to what consumers are willing to pay for it. We have chosen to leave in democratic societies based on the principles of capitalism and free market economy, so learn to live with consequences of your choice or move to North Korea. As well arguments like the workers at the factory would not be able to afford even to buy a one pair of shoes they make with their monthly wages. SO WHAT, employees at Ferrari factory cant afford to buy Ferraris or chambermaids at Ritz Hotel London cant afford to stay at Ritz. The underline is that people do not work in order to consume what they produce). Inequality. Another major aspect of globalisation is its affect on world inequality. There is no greater problem facing the world at the beginning of the 21st century than that of world poverty. One in five of the worlds 6 billion people live on less than a dollar a day, almost half on less than on 2 dollars a day. Nearly a billion do not have access to clean water, 2.4 billion to basic sanitation. Eleven million children under five die each year from preventable diseases. (HERE YOU CAN ARGUE BOTH WAYS: EITHER START ATTACKING GLOBALISATION OR SAY THAT IT IS THERE TO HELP). There are many largely contradictory studies on the issue. I also suspect that some of the findings produced by globalisation supporters and sceptics alike can be a subject to data-mining. Nevertheless, it is argued that the growth in absolute income differentials between North and South becomes wider. For instance, 1990-2001 gap between average GDP per head rose from $16,100 to $19,100. On the other hand, two French economist s at Delta, a research institute in Paris Francois Bourguignon and Christian Morrison have chartered the change in the global inequality since 1820. They found that world inequality increased steadily between 1820 and 1980 the gap between the typical persons income and the average widened from around 40% to around 80% but that between 1980 and 1992, inequality fell a little. Another way to measure inequality is to look at what has happened to people living in extreme poverty. Between 1987 and 1998, the share of the worlds population living on less than a dollar a day fell from 28% to 23% (not much if you think about how much profit multinationals made in the same time period). * Strong relationship between openness and growth, which contributes to reduction in the world poverty and inequality e.g. Singapore, South Korea, Taiwan since 1960s. India and China recently. * Effects on skilled and semi-unskilled workers in the US. (WORLD BANK) Figure 4 suggests that there is no simple association between changes in trade openness and changes in inequality. Certainly there are many well known cases of countries where inequality has risen as they became more integrated into the world economy. Wages of high school educated males in the U.S. fell 20 percent between the mid 1970s and mid 1990s. Income inequality increased in countries such as Argentina, Chile, Colombia, Costa Rica and Uruguay after they liberalized trade at different times in the last three decades. China, one of the fastest integrating countries, also experienced one of the largest inequality, however this was from a situation of very high levels of economic equality prior to integration. Growth was still fast enough to massively reduce poverty. Global Economic Prospec2004 found the number of people living on less than $1 a day in China fell from 361 million in 1990 to 204 million in 2000. But, as Figure 4 suggests, there are also about as many ca ses where inequality fell with more trade openness. Environment. Another very important feature of globalisation is its impact on the environment. According to Thomas Bode (Greenpeace): The modern economy is a fire-breathing vampire of petroleum which is slowly cooking our planet. It is a well known fact that globalisation is linked to increase in pollution levels, which is largely caused by increased travel and more intense use of earths resources. In the post Second World War era, the globalization of environmental degradation has been massively accelerated by a number of factors: fifty years of extraordinary resource-intensive, high-pollution growth in the OECD; the industrialisation of Russia, Eastern Europe and the ex-Soviet states; the breakneck industrialisation of many parts of the South; and a massive rise in global population. In addition, we are now able to perceive risk and environmental change with much greater depth and accuracy. Humankind faces an unprecedented array of truly global and regional environmental problems, the reach of which is greater than any single national community (or generation) and the solutions to which cannot be tackled at the level of the nation-state alone; these include, most obviously, global warming, ozone depletion; destruction of global rainforests and loss of biodiversity; oceanic and riverine pollution; global level nuclear threats and risks. Over the twentieth century these transformations have been paralleled by the unprecedented growth of global and regional environmental movements, regimes and international treaties. However, none of these institutions has as yet been able to amass sufficient political power, domestic support or international authority to do more than limit the worst excesses of some of these global environmental threats. There is an urgent need for some world-wide enforceable regulation which would eliminate opportunities for the large multinational to cut corners in complying with the World environmental standards. (Use examples: Union Carbide in Bhopal India; European forestry companies in south America; Shell and Brent Spar). On the other hand, It should be noted that argument against globalisation can be considered as an argument against economic growth in general. It is true, however, that growth in developing countries is accompanied by severe environmental degradation. However, recent evidence suggests a more subtle and complex relationship between economic development and environmental protection. The environmental impact tends to decline with economic growth of a country. A 1998 World Bank study of organic water pollution found that pollution intensity fell by 90 per cent as per capita income rose from $500 to $20,000, with the fastest decline occurring before the country reached middle income status (Figure 6. Hettige, Mani and Wheeler, 1998). Average air quality in China has stabilized or improved since the mid-1980s in monitored cities, especially large ones the same period during which China has experienced both rapid economic growth and increased openness to trade and investment. Moreover, openness to trade and investment can provide developing countries with both the incentive to adopt, and the access to, new technologies, which may provide a cleaner or greener way of producing the good concerned. For example, much foreign investment is for export markets. The quality requirements in those markets encourage use of the latest technology, which is typically cleaner than old technologies. A World Bank study of steel production in 50 countries found that open economies led closed economies in the adoption of cleaner technologies by wide margins, resulting in the open economies being 17 percent less pollution-intensive in this sector than closed economies (Wheeler, Huq and Martin 1993). Another concern relates less to environmental outcomes and more to environmental regulation. It is argued that increased international competition for investment will cause countries to lower environmental regulations (or to retain poor ones), a race to the bottom in environmental standards as countries fight to attract foreign capital and keep domestic investment at home. However there is no evidence that the cost of environmental protection has ever been the determining factor in foreign investment decisions. Factors such as labor and raw material costs, transparent regulation and protection of property rights are likely to be much more important, even for polluting industries. Indeed, foreign-owned plants in developing countries, precisely the ones that according to the theory would be most attracted by low standards, tend to be less polluting than indigenous plants in the same industry. Most multinational companies adopt near-uniform standards globally, often well above the local government-set standards (Dowell, Hart and Yeung 2000; Schot and Fischer 1993). International Institutions, decline in power of governments and growth in power of multinationals . There are many different critiques published on the topic of globalization, however one of the most effective ones according to my view are on the inefficiency of large international governing bodies, which supposed to direct the process of globalization towards the greater good. Our national leaders tell us that top-down corporate globalization is an inevitable, naturally-occurring phenomenon. But the terms of globalization have been defined by a few powerful organizations that operate without transparency or democratic oversight. There never was economic evidence in favor of capital market liberalization. There still isnt. It increases risk and doesnt increase growth. Youd think [defenders of liberalization] would say to me by now, You havent read these 10 studies, but they havent, because theres not even one. There isnt the intellectual basis that you would have thought required for a major change in international rules. It was all based on ideology. Joseph Stiglitz, former Chief Economist of the World Bank The World Trade Organization is the most powerful legislative and judicial body in the world. By promoting the free trade agenda of multinational corporations above the interests of local communities, working families, and the environment, the WTO has systematically undermined democracy around the world. In the eight years of its existence, WTO panels composed of corporate attorneys have ruled that: the US law protecting sea turtles was a barrier to free trade; that US clean air standards and laws protecting dolphins are too; that the European Union law banning hormone-treated beef is illegal. According to the WTO, our democratically elected public officials no longer have the rights to protect the environment and public health. Unlike United Nations treaties, the International Labor Organization conventions, or multilateral environmental agreements, WTO rules can be enforced through sanctions. This gives the WTO more power than any other international body. The WTOs authority even e clipses national governments. Created after World War II to help avoid Great Depression-like economic disasters, the World Bank and the IMF are the worlds largest public lenders, with the Bank managing a total portfolio of $200 billion and the Fund supplying member governments with money to overcome short-term credit crunches. But the Bank and the Fund are also the worlds biggest loan sharks. When the Bank and the Fund lend money to debtor countries, the money comes with strings attached. These strings come in the form of policy prescriptions called structural adjustment policies. These policies-or SAPs, as they are sometimes called-require debtor governments to open their economies to penetration by foreign corporations, allowing access to the countrys workers and environment at bargain basement prices. Structural adjustment policies mean across-the-board privatization of public utilities and publicly owned industries. They mean the slashing of government budgets, leading to cutbacks in spending on health care a nd education. They mean focusing resources on growing export crops for industrial countries rather than supporting family farms and growing food for local communities. And, as their imposition in country after country in Latin America, Africa, and Asia has shown, they lead to deeper inequality and environmental destruction. International trade agreements such as NAFTA (the North American Free Trade Agreement) and GATT (the General Agreement on Tariffs and Trade) were written by representatives of large corporations and they function in the interests of large corporations. For example, detailed studies by Public Citizen and other watchdog groups have shown that in the seven years of NAFTA, transnational corporations from the three signing countries (Canada, USA, Mexico) have benefited while the middle classes and working classes of these countries have suffered. More jobs have been lost due to NAFTA than have been created. Several decades of the GATT have lowered corporate taxes by the trillions of dollars, thus helping to bankrupt governments around the world and make them dependent on borrowing from the World Bank, International Monetary Fund and the private banks. This indebtedness then gives immense policy influence to the bankers, who are mainly interested in the money cycle not the life cycle. The power of influence over governments in shaping the global economy in the corporate interest is of immense value to global corporations. Some argue that globalisation erodes the ability of governments to: raise taxation, regulate markets and manage currencies. That it becomes the race to the bottom. Governments are told to follow two paths. First, deregulate and privatise. This has been pursued in over 90 countries through structural adjustment policies of the World Bank and International Monetary Fund. The bitter legacy is growing poverty in all regions of the developing world, except China. Second, leave business to regulate itself. Corporations have promised to adopt voluntary ethical standards in response to growing public concern over social and environmental damage. But these have often been a public relations exercise to deflect criticism and the few companies that are implementing these standards compete at a disadvantage to the majority of companies that dont. (can use eg. Case study ERM 1992 UK and Italy had to devalue their currencies. Central banks are powerless in trying to control international speculators George Soros is a GANGSTER). On the other hand, there is a substantial evidence that governments did not become more constrained; in some cases there was an increase in their relative powers. For instance, there is a systematic increase in the tax burden in the OECD (Organisation for Economic Co-operation and Development) countries. (CANT FIND ARGUMENTS TO SUPPORT ABOVE STATEMENT think of something yourself). As well, growing power of multinationals is not such a bad thing after all. It can become a new form of international governance. Multinational companies have very strong financial incentives to behave ethically. If companies will not pay attention to the issues of CSR (corporate social responsibility) their share price can decline, which than leaves than vulnerable to hostile take-overs. There is a growing concern among consumers in the World in favour of support of ethical policies, eg. Fare Trade Policies Starbucks claims to be an avid supporter of fair trade policies. Therefore, corporations may face consumer boycotts, whereas governments are pretty much immune to short-run fluctuations in the popular opinion. Also, some theories of internationalisation argue that MNCs must have higher efficiency than other firms and governments. According to classical economic theory government spending is highly inefficient, because civil servants lack appropriate motives to search for the best possible use of available resources. Government spending also leads to out crowding of finance available to the private sector, which means that the companies have to face a higher cost of borrowing if they want to increase their spending. Governments are more corruptible (MAYBE ). Just think about it our governments collect in most cases nearly half of their countries GDP, half of all the income generated by the economy during the year. And what they do with it?! Spend on defence or some doomed governmental projects largely oriented to stir public opinion in their favour in order to win next general election. Think about all that money which is being wasted because of bureaucracy. US government only collects 30% of GDP in taxes and US is the richest country in the world. Multinationals are great innovators: (e.g. Dunning and ownership specific advantages, Rugman and the flagship firm). + can link to multiplier effect and wage premium. FDI (foreign direct investment) / Trade. As expressed in percentage of the global gross domestic product (gdp), the share of the combined inward and outward foreign direct investment (fdi) stocks rose from 19.2% in 1990 to 34.0% in 1999 and an estimated 38.2% in 2000. (Im sorry but Im too bored to write in detail about trade or FDI). Basic argument is the fact that most of the trade and FDI happens between Japan, US and Europe. 69% of FDI goes to developed countries. Some continents are marginalised, eg. Africa only receives 2% of global FDI. However, to my opinion it is absolutely normal. These are the largest economies in the world. GDP of US is over 12 trillion, whereas GDP of Japan (second largest economy) is over 6 trillion, GDP of EU is about 7 or 8 you cant expect these countries to invest most of their money in Eastern Europe, Africa or South-East Asia. Combined economies of these are dwarfs compared to economies of developed countries. Huge spending in these countries will breed inefficiencies, which than can be followed by another Asian crises (1997) or Russia defaulting on its payments. The cost of finance should reflect its true market value. From the business stand point money should only be invested if they can generate greater wealth, if there are not enough lucrative opportunities to go around de veloped countries should not be competing with each other by providing cheap loans, but concentrate on their regions. Undervalued finance create slack attitude, breads bureaucracy, corruption and have a great potential of destroying dynamic efficiency of developing world (can compare to governments supporting national champions). (VERY CAPITALISTIC VIEW). Nevertheless, developing countries are net recipients of foreign direct investment anyway. e.g foreign firms invest more in Africa than Africa firms invest elsewhere. Conclusion. (use your own depending on which view you support). (Can contrast different theoretical standpoints check the end of International Business lecture hand-out, week 3 A BIT BORRING BE ORIGINAL).

Benefits of Education for Society

Benefits of Education for Society Benefit of the education: Education a tool for progress Abstract This document shows us some educative system that change social status of the society and how the education is a perfect mechanism for finding the economic stability of a country. This research is based on fact of countries that had suffered key change using to the education how way for building a competitive civilization. Moreover, Finn educative system has been the best of the world without pressures to students. When they choose subjects, class schedules with the purpose of having brilliant students that supply their knowledge at the community. It decreased the levels of poverty in developing cities. So, this country focused in creating groups people working together for finding big profits on an environment complex. In addition, government have implemented extreme laws as free education since the first education years until university. In this nation, all is free including educative material, meal and transport producing big result as the first country in innovation. Besides, time moderns had put on evidence that the world continually modify different aspects as educational, economic and social.   It has seen the need of finding other solutions based in the creativity and the innovation that request to progress with the time. So, technology is the result of people who look for show their investigations through constant experiments. Nowadays, it serves as support material for creating an easy learning to students that allow them development their thought creative. Education: A tool for progress The educational systems influence in the student dynamics facilitating the learning with techniques that allow the development mental and psychological of the students. However, obsolete educational models is ending with the critical thought of the youth. Due to, classes are not interactive between professor and student or student and student getting a level low of learning in comparison of other countries. It connects the real world with the imaginary established possibilities for the progress where the only benefited has been the humanity. It has meant a halted society in the past without future. However, could new educational methods serves as a window to successful? Challenges of the human being are strategic approaches designs depending on the necessities that turn around of our environment. In other words, it means our world is created on base of people who has seen and thought of a way different. So, some countries adopt at the education as a form for the progress and create new policies on profit of the knowledge until get a stability economy of a country on development process. Then, it allow to develop scientist mind through experiments based experience accumulations that in an unexpected moment appearance and transformed our life. Therefore, we have to mention to the creativity and at the innovation as resources of development on a future closer. The Knowledge Builds Cities The researcher spirit is inside of each person like a faded diamond that only need to polish for having a shine. It means that the people since they are children need to have more attention and a correct education for developing a set of ideas in front of any event. It will allow them improving to generate big solutions in look for excellent. But, in the traditional educative systems, students go to the classes for staying in their seat and do not interact in the classes. At the result, that country stays in the past. The humanity requests changes constants on educative models and at the same time a dedication about effects produced on the youth. However, countries advance to big step that decrease its resources until cause damage irreversible. Here, the education is an important role because, it creates mechanics that help to eradicate problems with simple solutions based on idea rains according to a think way. Educative institutions are held to Government laws apply their form of leading a nation. In this situation, the new mechanics tend to lose their figure on the development model technologic and industrial. But, there are countries where the public sectors have their space. So as, Hancock (2011) explain that In 1963, the Finnish Parlia-ment made the bold decision to choose public education as its best shot at economic recovery. Finland recently has been the attention center at worldwide level on education because this country has the best educative system of the world. This change began 40 years ago when they used at the education as only possible of thriving on the economy. This program takes many time until on 2000 year was the first evaluation done by Programme for International Student Assessment (PISA) with a standardized test showing that Finland had the best readers of the world, on few time after they was the best in math. In 2009, PISA put to Nordic state on second place in science, in third place in reading and six place in math. So, they performed that education is the key of the successful. Due to, government post at the education as a mechanism for leaving of the poverty and compete worldwide. This system is success on two important aspects: Educative Model The education is free for all Finn with any economic levels receive the same knowledge and children begin school life at 7 years old. The primary education has a length of six years during this time, they have classes with the same professor each subject. They attend at the school few hours each student learns to think in the different educative levels are integrated in one only body. In other words, there is not a transition since initial education, school primary, college until university. Professor It is the career more difficult because the students must study hard for getting excellent grades. The major of students want to follow a teaching career because it has big prestige and is a respectable figure. Although, the professor salary is not high as others professions, it has huge petition in society. This carrier is enough demanding for the students but each university admits only 10% of the total of candidates. In addition, duration of this university career is five years, three years they study for a bachelor ´s degree and two years for a specialization obligatory on master. When students finish his teaching career, majority of graduate choose the childhood as the resource of knowledge on a society in building. In short, they consider that the childhood is starting point for future changes of their country. Also, children have curiosity for learning and know things that are around. All Finland people trust in the knowledge of their teachers and usually need them help about something that they do not know. Because, the community knows that students with excellent qualifications access to the teaching. Innovation and Creativity The innovation is the source of the wealth on setting of the creativity, a transition that breaks the traditional diagrams below the light of fresh ideas promoting  Ãƒâ€šÃ‚   the art of thinking.   So as, Robinson (2010) explain that In fact, creativity which I define as the process of having original ideas that have value more often than not comes about through the interaction of different disciplinary ways of seeing things. Then, the tactic discipline puts on evidence creation of a right behavior directed interchange of ideas between people. Occasionally, the scientists use simple ideas like hypothesis for arriving to a general idea (thesis) in middle of these two points exist innumerable experimental processes. So, there are great creations start with simple answer and follow a sequence logical of thoughts until get a purpose. For instance, the technology since its creation on the century XXI has united borders and has destroyed obstacles on the field social and on construction of new knowledge. Nowadays, the professors and students have benefit on the learning and the teaching through computational programs orient to create more invent in basing of invent created. However, it needs economic investment of local governments and contribution of private companies for an excellent educative level. That is to say, the better investment is in the education. In addition, some invents serve like experimental models for the next generation. It attracts attention of the students and possibility of creating a revolutionary idea. Creativity designs a path of chances on crisis times. Creative uses passion as the motor to develop an activity and involving the imagination in the prediction about something that will happen or happened. Humans are the only with capacity compose, create, invent, build cities and buildings. We live in an imaginary world where everything around us is the end product of an idea that someone had. So, if we put our neurons to work we are able to advance, progress, start our projects and face new challenges. Although, sometimes we have possibility of making mistakes, this not must be impediment because stumbling leads to a good idea. Therefore, we all have capacity to create and to imagine but we must learn to develop it in the same way that we learn to read. Senegal (2016) said that Technology is progressively replacing manual labour and pervading how we live and work. So, the creativity revolutionizes the learning and changing the social status of a generation that advances continuously using new methods on the education. Modern methodologies offer a variety of solutions with the building of investigation centers. It has gotten good profit and the quote of investigators for the modern world. In conclusion, this research have found important aspects that is changing the world since human beings use their physical abilities or intellectuals for creating something. However, some people is following old methods that do not allow developing a creative though with activities focused to future world. On the other hand, new study techniques propose radical changes in the behavior mental in front of challenges of a society that search getting an equilibrium social and economic. So, each epoch marks the end and the beginning of something new where creativity plays an important role in the advance or deterioration of a civilization. References Compton, A. (Direccià ³n). (2012). The Finland Phenomenon [Pelà ­cula]. Hancock, L. (- de 09 de 2011). Smithsonian.com. Obtenido de Smithsonian.com: http://www.smithsonianmag.com/innovation/why-are-finlands-schools-successful-49859555/ Ossola, A. (12 de 11 de 2014). The Atlantic. Obtenido de The Atlantic: http://www.theatlantic.com/education/archive/2014/11/the-creative-scientist/382633/ Robinson, K. (2010). Ted Ideas Worth Spreading. Obtenido de Ted Ideas Worth Spreading: https://www.ted.com/talks/ken_robinson_says_schools_kill_creativity?language=en Segal, S. (20 de 5 de 2016). World Economic Forum. Obtenido de World Economic Forum: https://www.weforum.org/agenda/2016/05/a-case-for-disruption-in-latin-america-s-classrooms/

The Reform Of Schools :: essays research papers

The Reform of Schools   Ã‚  Ã‚  Ã‚  Ã‚  The government of Ontario proposes there is a need to make universally accepted rules in the school system. For students to be more disciplined, the government needs to achieve new province wide standards. If the new school standards will not discipline the students, and if each school entails its guidelines, then the government's province wide code of conduct will fail. Moreover, the intervention of the government will not enforce the students to become more disciplined. While the arguments for producing new rules are unrealistic, more powerful arguments can be made supporting the current code of conduct.   Ã‚  Ã‚  Ã‚  Ã‚  With the government's proposition to create a new code of conduct, the students will receive more disciplinary action. Just as the law governs society, the province wide guideline governs the student body. Since the rules will be explained, and since the students will understand the consequences of their actions, then the students will follow these rules. Due to the thoroughness and strictness of the outcomes, there will be fewer problems in the school system. Moreover, to separate schools means to separate students. Since the new code of conduct produces equality, and since it sets forth equal status among individuals, then the students will have a standard that the entire province takes part in. Now, the schools are going from each one entailing their code of conduct. To treating all schools as equals. For example, if a student in Ontario skips out of class, and if the student receives a punishment (making up that class on their time  ® weekends), then the students in other provinces will not skip out of class. Overall, the new bill will make the students who do not want to be at school the school's choice, not the students.   Ã‚  Ã‚  Ã‚  Ã‚  In opposing this proposition, the intervention of the government will not solve schools individual problems. Since discipline is taking place in schools, and since certain schools acquire more disciplinary action from others, then the current code of conduct exemplifies self-discipline and respect towards authority. Purpose for multiple codes of conduct allows the school system to punish the students accordingly. If there was a new province wide standard, there would be one punishment to distribute; however, with the current system, teachers are allowed to fluctuate the punishment according to the severity of the crime. In addition, punishments and discipline play an active role in a student's development. It is essential in determining respect for themselves and authority.

Literary Merit of John Gunthers Death be not Proud :: essays research papers

Death Be Not Proud by John Gunther is a classic work of literary merit. The genre of the memoir is one that will never die. The life of young Johnny Gunther takes place in the 1940’s, but the courage and wisdom he portrays can be understood forever. The message Johnny sends will endure the test of time. Johnny Gunther goes through countless surgeries, hospital visits, and painful illness. Yet, despite his troubles, Johnny is surprisingly upbeat and optimistic. It is not that he is naive, it is simply that he does not want to show his anguish to the people around him. His fortitude shines through him and surrounds every one he meets. Gunther uses light in various ways in his memoir. When Johnny is at home, with friends, or studying the light is always present. This symbolizes him getting to be him with out a single thought of the disease, in essence his happiness. When Johnny is getting worse, or more bad news is brought forward the room always seems dark or full of shadows. Even though it is dark there always seems to be a little light. For example a crack in the door with light beaming through, the moon hitting his face, the sun lighting up a corner of the room. This symbolizes even in the worst of times Johnny finds a shred of hope. Instead of using his energy for self-pity he uses it constructively. He is a very bright young man and when school was no longer an option he was crushed but instead of letting it get him down, he wrote all his teachers and pleaded for tutors. Despite concerns for his doctors he took test, studied, and constructed lengthy science experiments. Even though Johnny knows death is inevitable it does not stop him from learning as much as he can while he can. He even takes his college entrance exam and is accepted into Harvard University. Johnny shows bravery in the worst of circumstances. Just as Johnny’s courage shines through so does his fast maturity from child to adult. His childhood was stolen away from him by his illness but instead of sulking he pulls himself together. He takes every difficulty in stride, and gets through them. Even when he is feeling down he hides it for he does not want anyone else to feel his pain. Being a seventeen year old boy he wants to do the things all other seventeen year old boys do.

Advanced Medical Technology Solution Essay

Would you, as Mr. Winter, recommend a loan to AMT? If so, on what basis? As Mr. Winter, I would recommend a loan to Advanced Medical Technology Corporation (AMT). There are several reasons why I would recommend a loan to AMT. The biggest factor is this company is still in the growth / infancy stage of its life cycle. They have invested large amounts of capital into the research and development, and marketing of its products, and it is too soon to see the rewards from these investments. Some of the changes that need to be made in order for a loan to be approved for AMT include improving manufacturing efficencies, short-term loans, operations, and managing their accounts recieveables. The manufacturing operations of AMT can be streamlined which will enable AMT to see greater profits. Right now they are building in ten to twelve week lot sizes, and they are not always making the products they need. With the investment into a information system, they can streamline this process. This was installed in 1984, and they are making progress. I would recommend reshuffling some positions (i. e. , MRP, planning, master data) in order to obtain the full benefit of the information system. They can build larger lot sizes of some products which will cut down on the direct labor costs for the materials. Making only the products they know they have demand on will minimize the excess and obsolesnce amount they have to reserve for each quarter. AMT can also improve its accounts receivable days outstanding ratio by having more control over it’s A/R. Having someone do background checks on new customers instead of granting all new customers the same 30 days. Some customers with poor credit history should be given no credit, and must pay COD or before the products are shipped to minimize risk of default. Well-known customers or customers with great credit can be given more than 30 days. Also, collection of past-due accounts should be pursued more aggressively. Based on the criteria mentioned, and the financial statements, I would give AMT the full $8 million line of credit. The company has had great growth in its revenues. Although this company has not been profitable over the last three years, if it had to turn a profit, it could do so by eliminating research and development. Just by selling existing products, it would have had a net income of $3. 8 million in 1985 if it did not have the research and development expense. I am not advising the removal of R&D, I am just providing a worst case scenario for the company. Ending the R&D department would cause no new products, and new improvements to existing products in an ever changing evenronment. This company has the potential to become profitable in 1986, and pay down significant amounts to its debt by the end of 1987. And they need to pay down some debt in order to improve their working capital which was fine in 1983, but because of expenses (possibly related to the installation of the information system) in 1984 its working capital has soured.

Personal Statement Accounting and Finance Essay

With the character of composure, steadiness and fortitude, I never give up. During middle school, I wasn’t deeply attracted to accountancy until having read the book _Corporate Finance_ written by Stephen A. Ross. It brought me to a completely new world with many different ways and modes of thinking, making me feel wonders of the major’s macro-function and micro-details. Consequently, my damnedest and savvy sent me to the commercial college of Renmin University of China in which my specialized field was accountancy. Three years of professional study has inspired my strong and unique sense of accounting, not to mention how prudential and careful I am in pursuing my bachelor degree. The enormous pressure in this first-class campus with fierce competition stimulated me to strive for a better future instead of keeping stagnant. Without compromising to difficulties, I made every effort to improve and strengthen myself in all aspects. Active participation in class and plenty of time spent in the library finally earned for me the â€Å"Excellent Student†Ã£â‚¬ Ã¢â‚¬ Second Prize Scholarship† and so on. Apart from my personal effort, as monitor, I also attempted and organized many class activities, such as mock interview where I divided my classmates into two groups, one group acting as the interviewer, the other as interviewee. During my ï ¼Å'I coordinated different parts of our class, our class gained the honor of University-level Excellent Class in 2013. The advanced accounting courses will strengthen my foundation in accounting and help to prepare me for my future career in company controllership. The outstanding faculty, along with the excellent selection of courses available within your program will equip me with the latest accounting theories and practices and allow me to obtain my professional goals. I know that I am now fully qualified and prepared to take on this challenge. I strongly believe that my passion in the accounting and future career, my courage in facing challenges and my strong ability to adapt and solve problems have fully prepared me for your esteemed university.