A Street Car Named Desire Essays

A Street Car Named Desire Essays A Street Car Named Desire Essay A Street Car Named Desire Essay Paper Topic: A Streetcar Named Desire A Streetcar Named Desire, the fanatical need to escape from reality characterizes the hero Blanched Dubos. Frequented by the way that she impelled the self destruction of her young spouse, Blanched can't adapt to what has since happened to her life. She depends on tales and fantasies to remake an all the more socially adequate self. In any case, the hostile connection among Blanched and Stanley Kowalski compromises her dream, as he ceaselessly defies her with the real world and takes steps to break the figments others have about her. Stanley speaks to finish authenticity and Blanched is fantastical and optimistic. Subsequently, the associations between the two are plainly illustrative of the battle among the real world and dream in the play. A battle wherein reality triumphs as Blanched at last gets incapable to separate between reality and her falsehoods. From the earliest starting point of the play, plainly the world Blanched lives in a dream land. A world wherein her careless activities and absence of riches don't influence her status as a refined woman. Blanche means to cover her blurring looks by covering the bulb with a paper light. This could be reminiscent of attempting to cover reality. Blanche says that she despite everything has a feeling of vanity over her looks despite the fact that she knows that her looks are slipping recommending that shes uncertain which would be relatable to the crowd. This is critical as Blanche frequently lies about her age in the play and is depicted as an enthusiastic liar. It presents that Blanche deceives accomplish the suspicion that all is well and good that shes missing. In any case, when the crowd discover that the dull is encouraging, this suggests keeping individuals in obscurity with the goal that she may carry on her fai ade. This all would lead the peruser into maybe shaping an end that you would frame in fai ade in a circumstance where you sense that you dont agreeable as far as the manner in which you are, so by and large build a fai ade to fit in. Anyway you could contend that Blanche does the inverse and this is shown through the manner by which she acts to be better than others around her. Her demonstrations of prevalence are appeared through little signals and when through stage headings the crowd become mindful that shes Fanning herself with a palm leaf and wearing headbands. The way that Blanche has a wide range of qualities makes her possibly progressively genuine in my perspective. Through the idea and thought of vanity that Blanche shows could speak to each lady, which applies much more in the 21st century where obviously vanity and appearance are ordinary significant issues. Through the manner in which she acts by Fanning herself with a palm leaf in that scene demonstrates that she feels significant, which is the thing that everybody at first needs and makes the translator identify. When she recommends that she hasnt put on one ounce in 10 years just like a gigantic achievement it brings out the mediator to reference to magazines articles, particularly womens magazines as they are fixated on weight and their magazine emphatically centers around looking great, however for whom? Another featured subject in the play is male reliance. His is appeared through the way that both the fundamental female characters in the play require a male nearness to accomplish bliss. It is conceivable that Blanche might be attempting to turn into her sister as far as settling down and that the connection among Stella and Stanley causes Blanche to feel sorry for upon herself for not having somebody of her own. This could likewise recommend why Blanche is so expectation on looking great with the goal that she may draw in male admirers. Alluding to Stella likewise being dependant on men is made clear by Williams on the grounds that in numerous scenes Stanley is depicted as genuinely injurious, however Stella despite everything returns to him. Blanche even attempts to persuade her that she can improve Youre not old! You can get out. Be that as it may, Stella despite everything chose to remain with Stanley. From this the crowd get the impression of Stella has picked Stanley over Blanche or Blanches thought and it could be to do with the way that the future that Stanley speaks to is more secure than the one guaranteed by Blanche. Blanche sees union with Mitch as a methods for getting away from desperation. The numerous experiences with men, Strangers have left Blanche genuinely frightened yet in addition with a helpless notoriety. Blanche attempts to conceal this notoriety for being it makes her ugly which is when Mitch discovers he dismisses Blanche by saying I dont think I need to wed you no additionally saying that shes not Clean enough to carry home to his mom. After this bombed endeavor Blanche considers Shep Huntliegh who may protect her. Blanche is so dependant on men that she hasnt understood the objective perspective where she is autonomous and figures out how to save herself. It is obvious that through the course of the play Blanches reliance on the generosity of a more interesting prompts her destruction rather then salvation as it places her destiny under the control of others. Williams could be proposing to get through an ethical instructing through the character of Blanche in the play; dont be excessively dependent. Both Blanche and Stella are emblematic of dependent/dependant ladies. This could have made compelling intense subject matters be raised by women's activist and ladies today, as there is more opportunity. In any case, truly bodes well since the women's activist demonstration didnt come around till the 1960s, so ladies wouldve been dependent for a male provider. Williams features the idea of new versus the old in the play and Blanche herself is representative of old qualities and the feudalist age. She speaks to a framework where there is various leveled structure dependent on status that is accomplished through family notoriety. Blanche is a relic of the old south, the America that was starting to prevailing fashion away. This is uncovered through Blanches desire for her sister when she asks You have a house keeper, dont you? suggesting that in Belle Reeve the DeBois wouldve been recognizable to an actual existence where benefits like house keepers, would be normal. This idea is significant in the play as it shows the steady battle between the Old South attempting to stay alive and turn into a piece of New Orleans which is all things considered a piece of the new Industrialized period. Her battle to keep this piece of her alive is made evident when she states on her birthday that Stanleys normality isnt fundamental when Stanley tosses food, indicating that she is as yet attempting to maintain habits and basic dip which is deficient. On the off chance that Blanche is illustrative of the old America, at that point Stanleys illustrative of the new line of modern workers. In this sense Stanley is representative of the new. He accepts that he is equivalent to Blanche as far as status, maybe much more prominent because of the way that he is alluded to as the new heterogeneous laborer, who work to accomplish all that they has. He expresses that he is 100% American And pleased with it. His recommends that his conduct is because of the way that he accepts that he is illustrative of the genuine America though Blanches portrayal irritates him as it dismisses meritocracy, which drives him into saying everyman is a ruler. This could be to additionally expound the contrast among him and Blanche as she sees herself as sovereignty yet Stanley is really the ruler of the house. Williams introduced the topic of imagination versus reality into the play. This is immensely critical as we see Blanche going mental and suffocating herself in her falsehoods and dreams to a point where shes lost control of her psyche. Clearly Blanche favors her dreams and lies as she makes reference to I dont need authenticity, I need enchantment, which could be her quest for chivalric saint, which she cannot appear to discover. It could likewise be the way that she is better remaining tangled inside her dreams since her past might be seen as damaging; seeing passings, losing her affection, losing Belle Reeve and so on his injury recommends that she looks to be shielded from which is considerably progressively clear when Blanche makes reference to that Mitch is a parted in the stone of the world that I can stow away in. The undertones related with rocks are that they a hard and intense which is representative as far as how life is. On the off chance that Blanche is emblematic of imagination than Stella is representative of the real world. Because of this r eality there could be a potential agreement framed that Stella is more reasonable than her sister. She understands quickly that Blanche and Stanley don't agree, and are both difficult which leaves her to be the voice of reason. Quickly when things begin turning out badly she makes reference to that individuals must endure every others propensities, she by implication recommends that Blanche likewise needs to become accustomed to Stanleys propensities all together for their family to be continued. Williams has depicted Stella as the normalizing power in the play and shows and features her as a sustaining being particularly towards Blanche. Stella emblematically is a mother figure for Blanche as she expects to ensure her. Despite the fact that Blanches senior than Stella, Stella despite everything makes endeavors to secure her sister since she is completely mindful of her misfortune when more youthful. This could be the explanation that she takes a gander at Blanche with a Pitying look which Blanche has additionally taken note. She knows about Blanches different preferences and accordingly stops at twenty five candles, realizing that she is shaky about her age and developing old. In spite of the fact that Blanche likewise attempts to child her younger sibling, through Stellas eyes it is clear that she is in the need of help, similar to she discloses to Stanley she was delicate and trusting as she was and individuals like you manhandled her. Constrained her to change. This is

Capital Budget Essay

If it's not too much trouble offer your proposals, in view of (a) (b) (c) (d) the recompense time frame strategy; the IRR technique; the professional? tability file technique; and the NPV strategy. 3. Contextual analysis: Randgold Resources plc Randgold assets plc is a London Stock Exchange gold mining and revelation ? rm with practically the entirety of its exercises focused in Africa. This contextual investigation concerns a speculative gold revelation of 300,000 ounces of gold in the Mwanza locale at the north tip of Tanzania. Randgold can just concentrate 50,000 ounces for every year from the Mwanza mine and variable extraction costs are a component of the gold cost. The gold cost is relied upon to advance as follows: 1 Cases and Exercises for Value and Capital Budgeting Year Gold value 1 $1,070 2 $1,120 3 $1,200 4 $1,100 5 $1,000 6 $950 The disclosure goes ahead the impact points of a huge ? ve-year investigation and revelation program that cost $20 million. Despite the fact that the investigation and revelation program has now been finished, the ? rm still need to pay $8 million this year and $5 million one year from now (year 1) as a deferred installment to providers. Randgold should rent the land from the Tanzanian government for $10 million for every annum. Mining hardware and mining quarters (traversing ? ve miles) should be built at the expense of $70 million and this ought to be deteriorated utilizing 20 percent decreasing adjusts over the multi year venture. Accept that the hardware and mining quarters can be sold for just 20 percent of lingering an incentive toward the finish of the task. The workforce will cost $10 million for every annum except 30 percent of the workforce will originate from existing tasks somewhere else in Africa. On the off chance that the Mwanza mine isn't placed into activity, the workforce that originates from existing tasks would lose their positions. Working capital is required to increment by $8 million toward the beginning of the undertaking and this will tumble to zero toward the finish of the task. The compelling assessment pace of Randgold Resources is 28 percent and the suitable markdown rate is 20 percent. (an) Is it beneficial for Randgold Resources to begin creation? Utilize three speculation examination strategies to legitimize your answer. (b) What are the principle chance components confronting Randgold Resources in the mining venture? Talk about these in detail. 4. We are assessing an undertaking that costs ? 896,000, has an eight-year life, and has no rescue esteem. Expect that deterioration is 20% lessening balance strategy. Deals are anticipated at 100,000 units for each year. Cost per unit is ? 38, variable expense per unit is ? 25, and ? xed costs are ? 900,000 every year. The assessment rate is 35%, and we require a 15% profit for this undertaking. (a) Calculate the bookkeeping equal the initial investment point. (b) Calculate the base-case money ? ow and NPV. What is the affectability of NPV to changes in the deals ? gure? Clarify what your answer enlightens you regarding a 500-unit decline in anticipated deals. (c) What is the affectability of OCF to changes in the variable expense ? gure? Clarify what your answer informs you regarding a ? 1 reduction in assessed variable expenses. (d) Suppose the projections given for value, amount, variable expenses and ? xed costs are largely exact to inside  ±10%. Ascertain the best-case and most pessimistic scenario NPV ? gures. 5. The ? rm SENSITIVITY is examining the acknowledgment of a venture of propelling another toothpaste. The Marketing Department demonstrates the accompanying estimations (in a great many euros): Parameter Sales (amount) Advertisement costs Sales Value 1,450 tons 10% of deals 5/ton 2 Cases and Exercises for Value and Capital Budgeting.

Is technology a boon or a bane Essay

Innovation offers us a break to burden and makes work lighter and provocative. By and by, innovation gives me a great deal of advantages. Errands get lighter, separation gets shorter, correspondence gets quicker, to emphasize a few. In my field of work, I use MP3 appended to a speaker to play the melodies I need to show the children; having said that, I generally ensure that I realize the tune truly well that in the event of some specialized challenges like interference of electric force gracefully or void batteries, I can in any case show the tune without utilizing my MP3. Same situation when I’m utilizing PowerPoint Presentation. I generally have reinforcements. In spite of the fact that innovation makes our lives simpler, as an instructor we are still reminded that innovation won't arrive at the internal soul of the youngsters. We have to look at them without flinching while at the same time introducing the exercise through the projector. We have to hold them when we present the feeling of touch. We have to absolute the words to them when we need them to comprehend and genuinely gain proficiency with the exercise. <p

Which APUSH Score Calculators Are Legit

An APUSH score calculator can help you estimate how you’ll do on the real exam. Learn more about how score calculators work and how to find the best ones. Photo by StockSnap How Do APUSH Score Calculators Work? The scoring of AP exams is tricky. You have a test with multiple choice, short answer, and essay questions, each of which is graded separately. Then, somehow, all of that boils down to a single score from 1-5. That’s all you ever get on your score report. You won’t get any information on how many multiple choice questions you got right or how you scored on your DBQ. You’ll just have that single number. Even more frustrating than that can be the fact that there is no set consistent formula that translates your raw scores into the 1-5 scaled score, because the APUSH exam is scored on a curve. This is to account for test variation and to try to keep scores consistent across different tests. But it can make it a little tricky to estimate your score when you don’t know exactly how many multiple choice questions will equal a 5. That’s where APUSH score calculators come in. They use the weighted scales of past AP exams to help you estimate your 1-5 score by inputting the individual raw scores you received on each section. The most important thing to remember about any APUSH score calculator is that it is an estimate. College Board does not release an official score calculator, so test prep companies create their own based on the information available and try their best to be accurate. Where to Find APUSH Score Calculators Practice tests included in the review books of major test prep companies will usually include a score conversion chart, along with the answer key to help you estimate your score. These are created for that particular test and are a helpful tool for estimating your future test performance. These charts, however, should not be seen as exact tools for figuring out your score on other tests. There are also online APUSH score calculators. There are a lot of score calculators out there, so it can be difficult to know which ones to trust. When looking for a reliable calculator, check for the following: Up-to-date test specifications. Does the number of multiple choice points you’re asked to input match what’s currently on the real exam? The APUSH exam format has changed numerous times in recent years. Make sure you’re looking at the most current information. The test version the calculator is based on. A good score calculator will tell you which year of the real APUSH exam it used to create its formula. Consistency. It never hurts to check one score calculator against another. Be sure you’re comparing the same year, and then put in the same numbers to see what score you get on each. If one is giving you a wildly different score than the others, you probably shouldn’t trust it. With that in mind, AP Pass and Exam Owl have APUSH score calculators worth checking out. Tips for Using an APUSH Score Calculator 1. Use it to grade practice tests. An APUSH calculator can give you a good idea of where you are likely to score on the exam. A lot of students will just check how many multiple choice questions they got right or see how their essays stack up to the rubric. Taking the extra step of estimating your 1-5 score with an APUSH score calculator can give a clearer idea of how you will stack up on test day. 2. Play around with it. After you get your practice test score, play around with the score calculator. See how many more multiple choice questions or free response points it would take you to go from a 3 to a 4, or a 4 to a 5. This gives you a better sense of the impact of each question and each question type. It can also help you to set goals that will be manageable and most helpful. 3. Use it more than once. If you try one practice test, put your scores into an APUSH score calculator, and get a 5, you may be tempted to stop there. Don’t! Getting a 5 once is awesome, but you should be aiming for consistency. What happens when you come across a test with a less familiar essay topic? Would you still be able to get a 5? You should try (and score) several full practice tests over the course of your studying to make sure that you are able to handle anything that may come up on the exam. 4. Remember that it is only an estimate. APUSH score calculators are useful tools, but none of them are 100% accurate. Use them to help guide your studying and goal-setting, but don’t rely on them too heavily. Remember that the AP grades on a curve, so getting 45 multiple choice questions right might get you a 4 on one exam and a 3 on another. To give yourself some wiggle room, set your goals at the high end of the range for the score you want.

Analysing the various Numerical Methods for Real Options - Free Essay Example

Sample details Pages: 19 Words: 5630 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? According to Mun(2006), Real Options(RO) is a systematic and comprehensive method used to value real tangible assets. The term RO, first used by Myers(1977), refers to the application of financial options theory to investment decisions made by firms (Krychowski and Que ´lin, 2010). RO has been of growing interest to the academic community as a promising approach to supporting investment decisions under uncertainty. Don’t waste time! Our writers will create an original "Analysing the various Numerical Methods for Real Options" essay for you Create order Pioneering scholars such as Trigeorgis(1996) and Copeland(2001), have contributed valuable work to topics on real option such as the RO value in resource allocation and capital budgeting. At the same time on the empirical side, RO analysis has been applied widely in a range of industries such as pharmaceutical drug development, oil and gas exploration and production, and the like. A survey of 4,000 CFOs published in 2001 by John Graham and Campbell Harvey found that 27% of the respondents claimed they always or most always used some sort of options approach to evaluating and deciding upon growth opportunities (Copeland Tufano, 2004). Compared with the traditional discounted cash flow methods which assumed that the future cash flows can be discounted by a single fixed rate, Real option analysis enjoys the merit of being highly flexible. Real option analysis incorporates the managers ability to actively respond to the unfolded uncertainties. It is noted by Hall (2005) that approximate ly 30 percent of the value of high-growth, high volatility firms can be attributed to the value of embedded options. Generally speaking, there are three main methods which are used as the tools to value the embedded RO. They are the Black-Scholes Model, the Binomial Model and Monte Carlo Simulation. Each of the method requires certain assumptions and can be best applied under specific situations. Primarily motivated by the usefulness of RO, after doing a general research on its background, I did further reading on approaches employed to value the embedded options. In this paper, my work can be divided into three parts. In the first section, a background on the real option analysis is presented. This includes an overview of typical categories of RO, the classical methods employed to value the RO and also the industrial practices of applying the RO Analysis. Additionally, a brief comparison between the traditional methods and RO is also presented. In the second section, I demonstra te the three methods in detail with elaboration on their assumptions and steps of analysis, as well as examples of application. In the final section, I conclude with a discussion of these numerical methods, including their merits and limitations as well as responses to some of the critics that RO analysis has incurred. I hope that this paper could serve as a motivator for further research. Literature Review Managers nowadays are facing a rather volatile environment because of the mixed effects of globalization, deregulation and technology break through (Krychowski and Que ´lin, 2010). RO helps them to make use the advantages of uncertainty and their flexibility. It has been crucial in the way that it helps the firm to identify, understand, value, prioritize, select, time, optimize and manage strategic investment and capital budgeting decisions (Mun, 2006). Similar to the financial option models, RO is useful both to evaluate an investment project and to determine the optimal investment timing (Krychowski and Que ´lin, 2010). The most common forms of RO, based on the division given by Copeland and Antikarov(2001) and Mun (2006), are : option to abandon, option to expand, option to switch, option to defer and sequential compound options. In detail, for example, an option to expand enables the management to expand into different markets, products, and strategies or to ex pand its current operations under the right conditions (Mun, 2006, p19). Multiple methodologies and approaches are used in RO to calculate the embedded options value. These range from using closed-form equations like the Black-Scholes model and its modifications, Binomial Models (for example, binomial lattices and binomial trees) and Monte Carlo simulations and other numerical techniques. Since this will be the main part of this paper, it will be illustrated in detail in the next section. Primarily used as a tool for strategic decision making in natural resource companies, in the recent decade, RO has been applied in a broader ranges of industries, including pharmaceutical drug development, oil and gas exploration and production, manufacturing, IT infrastructure, e-commerce and e-business, technology development, private equity, and the like ( Mun,2005). The following are some of the industry examples of applying RO. Equity According to Berger, Ofek and Swary (1996), a cons iderable proportion of equity value should be attributed to the equity holders abandonment option. They prove a median 11.5 percent difference between equity market value and the present value of cash flows for 7102 firm over a 6-year period horizon. By running a series of regressions the authors find an interaction between the market value/present value premium and variables which should be linked to higher values for the abandonment option. Natural resource When evaluating the investment projects for natural resource, Brennan and Schwartz (1985) isolate the disadvantages and inadequacies of the traditional DCF approach. Particularly, they point out that obvious deficiencies are due to the neglect of the stochastic nature of output prices and of possible managerial reactions to price changes. Price uncertainty is of central importance in many natural resource industries where price swings around 30 percent per year are usual. Under such circumstances the evaluation results obtai ned through replacing distributions of future prices by their expected values is likely to be misleading. Oil By extending the financial option theory, Paddock, Siegel and Smith (1988) develop a new method for the valuation of claims on a real asset, an offshore petroleum lease. The authors show us how to utilize an explicit model of equilibrium in the market for the underlying real asset, i.e. the developed petroleum reserves, with option-pricing technique to derive the value of a real option. At the same time, they specify a valuation problem in sufficient detail by using the oil leases as an example. This allows close reviewing of the many theoretical and practical issues involved in applying financial option valuation theory to RO. Gold In 1998, Kelly adopts an eight period binomial option approach to determine the value of a discovered but not yet developed gold mine, Lihir Gold Limited. In particular, she compares the value derived from the option model to what was obtai ned from the traditional method. The option approach appears to provide a more useful and reasonably accurate technique to assess the value of the gold mine. In 2002, Moel and Tufano conduct a research on the opening and closing events of 285 gold mines in North America from the year of 1988 to 1997. Strong evidence is found to support the conclusion that, compared with other methods, real (switching) options provide better explanations for the decisions on openings and closings of the gold mines. Manufacturing Newbhard, Shi and Park (2000) use a case-study to motivate the theoretical and applied research needed to support a real option framework for system changes in four major manufacturing transitions which are launch of new product, commercialization of RD product, site selection of new plant and restarting production of existing commodities. By presenting a framework, they quantify manufacturing changes, develop a real option model for these activities, value the options, identify the best scenarios and integrate these elements in order to monitor and manage the overall process. They also propose a general model for optimizing real option valuation based on typical RO models such as the Black-Scholes Option Model, the Binomial Option Model. They conclude that a model that incorporates flexibility and economic factors could effectively enhance companies manufacturing strategy. Unlike the traditional valuation approaches, such as the discounted cash flow (DCF) method which bases itself on a static environment, real option analysis takes into account the potential for possible future gains and incorporates active decision making. Thus it tackles uncertainty in a better way. Specifically, deterministic models such as DCF method bases itself on some rather flawed assumptions. It assumes that all the future outcomes are fixed and can be evaluated as individual cash flows. Even more unreasonable, it seems to give a Once for All solution which assumes on ce initiated, all projects are passively managed. RO, on the contrary, accepts the facts that projects are correlated and can be actively managed through its life path. By taking the fluid environment and managerial flexibility into account, RO provides value-added insights to decision making (Mun, 2006). Numerical Methods As I have mentioned in the previous section, multiple approaches have been employed by researchers and practitioners in RO. This part will introduce the readers to three common types of methods in RO, namely, the Binomial methods, the Black-Scholes Model and Monte Carlo Simulation, from the origins of them to present application examples. More specifically, a step-by-step binomial approach is used to analyzing a compound option problem in the case study with two different techniques, so as to offer a deeper understanding for the readers. As for the Black-Scholes and Monte Carlo Simulation, due to the word limit and time constraint, I used two simplified examples from Newbhard et al (2000) and Damodaran( 2005) in the hope that the readers could have a general sense of how the two methods work. Binomial approach Work by John Cox, Steve Ross, and Mark Rubinstein has led to the creation of binomial, or lattice, models that are built around decision trees and are ideally suited to real-option valuation. As it noted by Copeland and Tufano (2004), RO dont have to be a black box. Binomial methods, with its advantage of easy math and apparent illustration has make Real option analysis a more practical tool for manager in the new era. According to Brandao et al (2005), a binomial lattice may be viewed as a probability tree with binary chance branches, with the unique feature that the outcome resulting from moving up(u) and then down (d) in value is the same as the outcome from moving down and then up. This probability tree, also referred as decision tree, can be used in modeling managerial flexibility by incorporating the decision nodes which represent decisions the managers can make to optimize the value of the project. A three-step binomial tree is illustrated below in figure1. Before enterin g details about how to use the binomial method, it is worthwhile to make certain clarifications on the assumptions behind this approach. In their book RO, Copeland and Antikarov (2001) made the marketed asset disclaimer assumption (henceforth MAD) that the market value of a project is best estimated by the present value of the project without options. Additionally, if the movements in the value of the project without options are then assumed to change over time according to a geometric Brownian motion (GBM), then the value of options can be obtained through traditional option pricing methods. Generally, there are three essential steps that need to be gone through when a binomial approach is adopted. Step1 Calculating the expected present value of the project at Time0 Step2 Obtaining estimates of the standard deviation of returns (or volatility of the project) by using a Monte Carlo simulation. Step3 Constructing a binomial tree to model the dynamics of the project value using the estimated parameters of the second step and add the decision nodes to model the projects RO. No matter what real option model is of interest, the basic structure almost always exists, taking the form: Inputs: S, X,, T, rf, b u= and d== P= Source: Mun, 2006 The basic inputs are the present value of the underlying asset(S), present value of implementation cost of the option( X), volatility of the natural logarithm of the underlying free cash flow returns in percent(,time to expiration in years(T), risk-free rate or the rate of return on a riskless asset(rf), and continuous dividend outflows in percent(b). In addition, the binomial lattice approach requires two additional sets of calculations, the up and down factors ( u and d). The up factor is simply the exponential function of the cash flow returns volatility multiplied by the square root of time-steps or stepping time (.The volatility measure is an annualized value; multiplying it by the square root o f time steps breaks it down into the time steps equivalent volatility. The down factor is simply the reciprocal of the up factor. In addition the higher the volatility measure, the higher the up and down factors. This reciprocal magnitude ensures that the lattices are recombining signs. The second required calculation is that of the risk-neutral probability, defined simply as the ratio of the exponential function of the difference between risk-free rate and dividend, multiplied by the stepping time less the down factor, to the difference between the up and down factors. In order to give the readers a more clear understanding on this, below is a case study of a sequential compound option problem. It represents a simplification of the real-world decision-making and its purpose is to illustrate the process by which a RO valuation is conducted using a binomial approach. Case Study A chemical company is considering a phased investment in a plant. There are three periods. In the beginning of year one, an initial outlay of $50 million is required to cover the cost of permits and preparation. At the end of that year, the firm has the choice to pay a commitment of $200 million to enter into the design phase. Once the design is finished one year later, the firm is believed to have a two year window during which to make the final investment in constructing the plant for $400 million. If the firm chooses not to make any investments during these two years, it can no longer to build the plant. For managers who think from the real-options perspective, this phased investment opportunity is a sequential compound option, for the execution and value of future strategic options depend on previous options. Clearly, the initial payment of $50 million allows the firm to have the option to go on with the project for one year. At the end of year one, it again faces the choice of whether or not enter the stage of design by investing an additional $200 million. As the result, the execution of the design phase gives the firm the option to construct the plant at the end of year three or at the end of year four for $400 million.The firm estimates that if the plant existed today it would be worth $550 million by using non-option valuation techniques such as the DCF. In applying Binomial method, basically there are two techniques. The one is the decision tree approach the other is the replicating portfolio technique. I will use both of them to analyze the above case and give some comments on these two techniques. Decision Tree Analysis Prior to analyzing this problem, we must make some assumptions concerning the uncertainty in the future value of the project. A common assumption regarding stock prices is that current prices already incorporate all relevant information available at this point in time, known as part of the efficient market theory. At the same time, future changes are the result of random and unpredictable shocks, which are modeled as a random walk. This assumption and other arguments facilitate the use of a Geometric Brownian Motion (GBM) to model the dynamic uncertainty associated with stock prices (Hull, 2003). The key parameters required to model the GBM are the initial value, $550 million in this example, the risk-free interest rate r, assumed to be 6% per year, and the volatility, denoted as, which is the annualized percentage standard deviation of the returns and is given as 18.23% here. The idea behind the calculation of the parameters used in the binomial approximation of the stochast ic process is relatively simple. If the value of the project is assumed to follow a GBM, then the estimate of its value at any point in time has a lognormal distribution. By equating the first and second moments of a binomial and a lognormal distribution, we can calculate the corresponding values of u and d, and thus Vu=Vu and Vd=Vd, for each branch of the binomial approximation to ensure that the discrete distribution approximates its continuous counterpart in the limit as t becomes small. Adding the convenient specification that u = 1/d to the equations for matching he mean and variance of the GBM yields u=. We then obtain the risk-neutral probability p ==. In this example, we model three periods and choose t = 1. Therefore, u = 1.2, d =0.83, and p =0.673. We emphasize again that only three parameters are needed to specify this discrete approximation to the GBM estimate of the evolution of the uncertain project value over time: the estimate of the current value of this project, th e volatility of the returns from the project, and the risk-free rate. For details associated with this binomial approximation, see Hull (2003). The same parameters can be used in a decision tree with binary chance nodes to yield an equivalent binomial tree for the project value, as shown in Figure 2 below. The value of the project is calculated via Vi,j =V0ui-jdj.For example in the right top scenario, the value of the project is $798 million which equates $550 million multiplied by 1.23. (Note: Values shown at each node in the tree are discounted Year 3 values, instead of the actual values at each point.) After approximate the project value according to the GBM, now we are going to value the Value of the Option to invest in this project. As you can see from the Figure3 below, we use the decision tree to model the option value in different time periods. Decision tree analysis works in the way that it models managerial flexibility in discrete time by constructing a tree with decision nodes. These nodes represent choices the manager can make to optimize the value of the project as uncertainties are resolved over the projects life. Note: represents a chance node in which the project can either move up or down with the probabilities of up=0.673, down=0.327 represents a decision node in which the firm can chose to invest or not denotes the termination of one possible case the line in bold shows the optimal investment strategy in different cases Lets suppose that at the end of year3, we arrive at the best scenario in which the project value is $798 million (See Figure2). If we choose to invest the extra $400 million, we will have an income of $223 million. Otherwise we will lose what we have paid for the preparation and design, say, $239 million. Rational managers will of course choose to invest. The same calculation applies in the scenario with the increase in first two years and a decline in year3. By multiplying the values obtained from the decision nodes with their up and down probabilities, we arrive at the option value in year2. Using this rollback method, finally we obtain the value of option at year0, which is $31million. Replicating portfolio technique Using the binomial model which adopts replicating portfolio technique also requires two main steps. First, we need to figure out the full range of possible values for the underlying asset, in other words, draw the event tree, as shown in figure4. Figure4 (It has to be noted that, unlike the numbers for the binomial tree which have been discounted to present value, the numbers I used here are the value in that specific period.) Secondly, our task is to calculate the possible values of the project as an option at each stage. It is a backward working process and we have to begin from the end. If we abandon the project, its value is zero. Otherwise, the value at the end of that year, year three, for example, is the difference between the value of the plant at the end of year three and the expense of building it. As you can see from the figure5, we have got three potential scenarios in which the projects incremental value at the end of year three is positive and one in which the costs of the project exceed the plants value, so the project value is zero. We now work back from the end of year three to determine the projects potential values at the end of year two. The decision rule is that in each scenario, the value will be the lar ger of the value of exercising the option by building the plant at that point for a cost of $550 million and the value of keeping the option window open-deferring the decision until the next period. The steps can be summarized in the followings and Figure5 serves as an illustration of the results. Step1: Calculate the potential final project values by subtracting the $400 million cost (from the event tree of Figure5). For the $314 million scenario at the bottom right of the event tree, the projects value is zero due to the cost is greater than the plant value. Step2: Obtain the potential end-of-year-two project values by comparing two calculation results. One is the value by exercising the project immediately, the other is the value if the project is kept alive by applying the replicating portfolio technique. Step3 ¼Ãƒâ€¦Ã‚ ¡Similar to step2, yet the number used to be compared with the value derived from replicating portfolio technique is $200 million, since immed iate exercise of the project is not possible. Step4: Calculate the starting project value of $81million. Since the initial required investment is $50 million, the project is profitable. The option value is the same as what is derived by the decision tree method, which is $31 million. Figure5 Some comments: As we can see from the above, the results obtained from Binomial Decision Tree and Replicating portfolios Techniques are largely similar. It is worthwhile to compare them briefly. The binomial approach is suggested by Copeland and Antikarov(2001), they emphasize the use of binomial lattices and replicating portfolios while Brandao et al( 2005) believe that the use of binomial trees is more intuitive appealing. The replicating approach bases itself on traditional option pricing methods, requiring that markets be complete. An important advantage of this approach to valuation is that the value of option can be calculated from market data. This eliminates the necessity of trying to estimate the probability q of an up move in the stock price. However, this approach is complicated by the fact that, for most projects involving real assets, no such replicating portfolio of securities exists, so markets are incomplete. Additionally, it is criticized for its computational cumbersomenes s especially in a multi-stage project. Black Scholes model With their article from 1973, Fisher Black, Myron Scholes, and Robert Merton were the first to give a closed form solution for the equilibrium price for a European call option, the Black Scholes Model (BS model). It has since been the basis for numerous studies and papers about the pricing of options and empirical testing hereof. In essence, the model is a special case of the binomial model where the underlying asset is assumed to follow a continuous stochastic process instead of a discrete. Otherwise, it is based on the same underlying assumptions of no arbitrage and market replicating portfolio and that the movement of the underlying asset follows a lognormal distribution ( Copeland Antikarov, 2001) It has to be noted that variants of the BS model have been made, which relaxes some of these assumptions. BS models are based on calculus of stochastic differential equation which is highly complex. So unless one can find a modified BS model that fits one own specific situation, t he process of deriving a BS model that does is very cumbersome and complex. Benaroch and Kauffman(1999) provides a formal theoretical grounding for the validity of the Black-Scholes option pricing model in the context of the spectrum of capital budgeting methods that might be employed to assess IT investments. They also demonstrate why the assumptions of both the Black-Scholes and the binomial option pricing models place constraints on the range of IT investment situations that one can evaluate that are similar to those implied by traditional capital budgeting methods such as discounted cash flow analysis. Most importantly, they present the first application of the Black-Scholes model that uses a real world business situation involving IT as its test bed. In Yankee 24s case, Benaroch and Kauffman chose to use a procedural model called Blacks approximation because using the standard Black-Scholes model is not possible since Yankee possessed an American option on a dividend paying asset. Blacks approximation assumes the existence of an American call option that matures at time T, where the underlying asset pays a dividend D at time t, 0tT. To analyze the investment decision Yankee faced in 1987, they used interview data from senior managers to obtain specific the parameters needed by the Black-Scholes model such as the range of potential revenues, the distribution of revenues and the perceived variance or volatility of potential revenues. Their results of analysis are supportive of the decision Yankees senior executive made at the time-deferring the entry for three years. With option pricing as an analytical tool to evaluate the project, for the first time, the result of the quantitative analysis paralleled the actual decision made by Yankee. The Black Scholes model is a so called closed form solution, meaning that a value can be found with an equation using a set of inputs. The inputs in the BS model are the same as the binomial model, with dividend as t he one exception. The value of a call option( C) is calculated as: Source: Copeland Antikarov, 2001,p.106 Where and is the cumulative normal probability of unit normal variable and respectively. They are calculated as: ; Source: Copeland Antikarov, 2001, p.106 Other than the assumptions also applying to the binomial model mentioned above, the BS model has several other restrictive assumptions embedded (Copeland Antikarov, 2001 and Mun, 2002) which are: The option can only be exercised at maturity-it is a European option There is only one source of uncertainty It can only be used on a single underlying risky asset; ruling out compound options No dividends on the underlying asset The current market price and stochastic process of the underlying asset I known (observable) The variance of the underlying asset is constant over time The exercise price is known and constant over time No transaction costs To illustrate more clearly, below I used a simplified version of the example presented in Brennan and Schwartz(1985), applying option pricing theory to value a gold mine. Option to delay for a Gold Mine Consider a gold mine with an estimated reserve of 1 million ounces and a capacity output rate of 50,000 ounces annually. The price of gold is expected to grow 3% a year. The firm owns the rights to this mine for the next 20 years. It will costs $100 million to open the mine and the average variable cost is $250 per ounce; once initiated, the variable cost is expected to grow 5% a year. The standard deviation in gold prices is 20%, and the current price of gold is $375 per ounce. The riskless rate is 6%. The inputs to the model are as follows: Value of the underlying asset = Present Value of expected gold sales = $ 47.24 million Exercise price = Cost of opening mine = $100 million Variance in ln(gold price) = 0.04 Time to expiration on the option = 20 years Riskless interest rate = 6% Dividend Yield = Loss in production for each year of delay = 1 / 20 = 5% Based upon these inputs, the Black-Scholes model provides the following value for the call: d1 = -0.1676 N(d1) = 0.4334 d2 = -1.0621 N(d2) = 0.1441 Call Value = $ 3.19 million The value of the mine as an option is $ 3.19 million which is recognized as the mines embedded option. Monte Carlo Simulation : Because of the difficulty in obtaining the needed parameters for analytical models such as the Black-Scholes model, researchers find an alternative way to value RO by using an approximate numerical method such as Monte Carlo simulation. Monte Carlo simulation, named for the famous gambling capital of Monaco, is a very powerful methodology. For the practitioner, simulation opens the door for solving difficult and complex but practical problems with great ease. Monte Carlo creates artificial futures by generating thousands and even millions of sample paths of outcomes and looks at their prevalent characteristics. When modeled correctly, Monte Carlo simulation provides similar answers to the more mathematically elegant methods. Monte Carlo, in its simplest form, is a random number generator that is useful for forecasting, estimation, and risk analysis. A simulation calculates numerous scenarios of a model by repeatedly picking values form a user-predefined probability distribution, su ch as the normal, uniform and lognormal distributions, for the uncertain variables and using those values for the model (Mun,2005,p317-318). Boyle (1977) was among the first to propose using Monte Carlo simulation to study option valuation. Since then many researchers have employed Monte Carlo simulation for analyzing options markets (Figlewski (1989), Hull and White (1987),Johnson and Shanno (1987), Scott (1987), and Fu and Hu (1995)).What distinguishes this approach is its generality in being able to model imperfect market conditions which are difficult to be captured in other models. The Monte Carlo method proves to be most effective in situations where it is difficult to proceed using a more accurate approach (Boyle, 1977). Researchers share a common emphasis on the need for investigating practical issues related to efficiently approximating various option models via Monte Carlo simulation and including sensitivity analysis and Quasi-Monte Carlo simulation approaches (Boyle,1 977; Fu and Hu,1995; Birge 1994; Newbhard, Shi and Park ,2000 ). Example: For a manufacturing company A, market research revealed a demand for a new product. This new product will be sold for $100 each. The initial monthly demand for this product is 1,000 units with a standard deviation of ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢ = 0.33. The product will be introduced over a four month period (T = 4). The monthly interest rate is constant at 1%. Suppose we let S= X = $100*1,000 = $100,000. To simulate the path followed by the state Variable S, we divide the life of the variable into four intervals If ÃÆ'Ã… ½Ãƒ ¢Ã¢â€š ¬Ã‚ t is the length of one interval, then the relation between the S values is given by Source: Newbhard, Shi and Park , 2000 Conducting 1,000 Monte Carlo runs of this equation gives an option value of $8,203, which is quite similar compared to the value of $8,155 obtained using the Black-Scholes method. Discussion The use of algebra distinguishes binomial models and enables the models to be built using standard spreadsheet software such as EXCEL. Binomial models can also be easily customized to reflect changing volatility, early decision points, as well as multiple decisions (Copeland, 2004). Another practical advantage is that because the transparency of the model, it could be understood and used by managers without very strong mathematical background. Binomial lattices, compared with close-form solutions, are easy to implement and easy to explain. Lattice can solve all types of options. They are also highly flexible but require significant computing power and lattice steps to obtain good approximation. It is important to note, however, that in the limit, results obtained through the use of binomial lattices tend to approach those derived from closed-form solutions. Managers might be skeptical about this method since the approximation to the value of project over time is based on GBM ass umption and the volatility was just among one of the parameters for this problem. It is reasonable to cast doubt on the derivation of the volatility in practice. As the BS model is a closed form solution and was developed for valuing financial option, many of the underlying assumptions I bound to be violated when dealing with RO. RO are more specific than financial options and need individual specifications. This is one of the binomial models most distinguished advantages and is therefore easier done using binomial model. Closed-form solutions are models like the Black-Scholes, where there exist equations that can be solved given a set of input assumptions. They are exact, quick, and easy to implement with the assistance of some basic programming knowledge but are difficult to explain because they tend to apply highly technical stochastic calculus mathematics. They are also very specific in nature, with limited modeling flexibility. Closed-form solutions are mathematically elegan t but very difficult to derive and are highly specific in nature. Although managers today are facing a more volatile environment, most of them still rest their decisions on deterministic methods such as the discounted cash flow method, which is static in nature (Krychowski and Que ´lin, 2010). In the end, RO are different from financial options. RO have problems in the implementation sector and empirical evidence shows that it is little used in practice. Whereas about 75% to 85% of firms use NPV for their investment decisions, only about 6% to 27% of them use RO1 analysis. Empirical studies on the implementation of RO are still rare, and research remains relatively silent on how to concretely apply RO theory (Krychowski and Que ´lin, 2010). More recently, the literature has warned about the limits of RO. These include three main shortcomings: Firstly, the framework does not apply to all investment decisions because not all investment decisions can be framed as op tions. Four main conditions have to be fulfilled in order for a decision to be appropriate for real option logic: irreversibility, uncertainty, flexibility, and information revelation. Secondly, it raises serious implementation issues. The identification and the valuation of RO both raise difficulties. The option theory has developed a vast variety of option valuation models, which rely on a number of implicit hypotheses and can lead to different results (Borison, 2005). Thirdly, it does not take into account behavioral and organizational biases. RO rests on the assumption that managers will follow a strict optional discipline, from the project inception to its implementation or abandonment. Identify and Define RO (1) Quantify Activities Related to Changes Related to Changes (2, 3) Choose Solution Method Binomial Model Underlying change is a binomial (discrete) process Black-Scholes Model Underlying change is a lognormal (continuous) process Monte Carlo Simulation When parameter Estimation is needed REAL OPTION ANALYSIS Source: Newbhard H. B., Shi. L, Park .C (2000) Conclusion

Scientific Management Fast Becoming Dated - 1520 Words

In todays modern era of business, with its exploding technological advances, easier access to materials and a much more skilled and specialized labor force the ideology behind using scientific management is fast becoming as dated a method as the industries that still heavily rely upon its principles to function efficiently. Considering that the fundamental principles of scientific management consist of breaking down manufacturing into its constituent parts allowing unskilled, simple minded, untrained workers to do any one of the multiple tasks that produce a product. This method functions in a manner that maximizes laborers potential and thus company profits by using an assembly line type system. Under this system only management however†¦show more content†¦The more lateral freedom an employee has the more room they have to excel rather than stick to a certain quota, as well as innovate and generally help improve the company in not only culture but productivity as well. Thi s need for more specialized and skilled employees rather than more mindless cogs in a machine is what will move the industrial and business world to the next level from the one at which we stand now, a level that is based on century old and fast dissipating model of doing things. Taylor’s method rested on a few key things, with employees it was their intelligence that came into play, in no way is it possible to tell an educated man that he must do one thing a certain way all day long when there may be an easier or more efficient way to go about it and this is where there is the biggest split between old era scientific management and todays evolving model. 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Changing Business Environment International Trade â€Free Samples

Question: Discuss about theChanging Business Environment for International Trade. Answer: Introduction: The proliferation of international trade can be traced back to ancient times when explorers set sail for discovery of new horizons and inaccessible parts of the earth were subject to the mavericks of business. International trade flourishes on the sole proposition of improving economic as well as cultural diversity (Adeleye et al., 2015). The interaction among different cultures facilitated by international trade is an indicator of substantiating a common course of action for bringing nations close to each other. Financial benefits are not the only benefits which international trade can provide. Intercultural exchanges are beneficial for organizations to apprehend the possible opportunities and setbacks in a different cultural background and implement the observed outcomes in the context of new international markets. Despite the multitude of benefits presented by international trade, the scope of economic and cultural diversity has created barriers for managers in the form of ethical issues. Addressing the business ethics for a short period of time is generally perceived as a contributor to the rise in costs for business (Botha, Kourie Snyman, 2014). Therefore, ethical standards fail to integrate with the short term objectives of an organization. On the contrary, long term objectives of the organization such as sustainability in an international market can be realized only through compliance with ethical standard. International business managers have to face many issues related to ethical practices in international trade such as corruption, employment practices, industry espionage, moral obligation and human rights (Bennett, 2014). These issues can be found in varying intensities in different market environments and hence each of the issues has to be addressed through an appropriate understanding of the source of the issues and the role of managers as well as employees in the development as well as remedy of the issue (Chapin, Sala Huber, 2013). This objective can be derived through illustration of literature related to ethical issues in international trade and present a critical reflection on the literature to obtain realistic measures for countering the selected issues. Major Ethical Issues in International Trade: Business ethics is a wide ranging concept which includes references to the different business situations, decisions and activities which can provide an insight into the validity of certain practices (Livingstone Bovill, 2013). The concept includes organization, society, state as well as individuals and is applicable for everyone. Furthermore, business ethics is concerned with the entities in an organizations business which cannot be included in the jurisdiction of law. The outcomes of globalization have resulted in intertwining of many legal considerations with respect to disparities in legal frameworks of host and home country. Therefore, business organizations opting for globalization had to opt for a standardized guideline of determining the validity of certain activities, decisions and policies implemented by an organization in foreign jurisdictions (Keppler, Olaru Marin, 2015). Ethical issues can be considered as the first hand resultants of the conflict between an organizatio ns social performances in an international business environment and its economic performance. The three major issues identified as formidable influences on the scope of international trade have been described below in order to draw a critical evaluation (Rajendran, 2015). Corruption: The first issue which business organizations face in international trade is corruption. Corruption in international trade is directly associated with bribes, indirect payments and superfluous endowments. For example, if an international organization has to pay a certain amount of bribe to a governmental clerk for approving the documents for employing local labor force, then it faces an ethical issue (Smith, 2014). Though the organization can perceive corruption as a passive contributor to the overall growth of the host society through improvisation of organizational efficiency, the activity itself is unethical. On the contrary, it has been observed that foreign business organizations in developing or underdeveloped countries assume corruption as an integral aspect of the business cycle. Corruption is implemented by such organizations as a necessity to stay ahead of competitors. The general guidelines for validating the possibility of corruption practices in an organization specify pr ecise indicators which show that an organization has adopted illicit measures for promoting trade and thereby the organization could be accountable for penalization (Silberberg Lmmel, 2014). The foremost indicator of corruption is the provision of monetary payments to political and public service authorities, political candidates, clerks or any political party in order to gain competitive advantage. Other indications towards corruption in international trade imply the provision of monetary incentives which are intended for illegal activities or inclusion in inappropriate funds. However, the necessity of corruption in certain business environments is realized through certain legislations which allow controlled payments to people in influential positions (Smith, 2014). The monetary payments made to clerks, political parties and candidates are meant to be limited within a specified range and the consistent monitoring of the payments is ensures so that corruption can be inhibited in in ternational trade (Shah, 2013). In some cases, the multinational corporations are liable to address the financial requirements of local officials and government authorities in order to satisfy the implications of local customs and the preservation of human rights. Industrial Espionage: Industrial espionage is another profound inclusion on the list of ethical issues prevalent in international trade. Multinational organizations prefer industrial espionage due to the minimal requirement of resources and ease of gathering information on business activities of competitors. Industrial espionage emerged as an unorthodox solution for international business managers to realize competitive advantage in a new market which is studded with formidable competition. The use of procedures which are not conclusively validated by the law for acquiring details of competitor activity accounts for industrial espionage (Taipale-Ervala, Heilmann Lampela, 2014). The ethical issue associated with industrial espionage is the unpermitted acquisition of confidential details pertaining to competitors which in turn can be accounted as stealing. The example of Procter Gambles industrial espionage incident throws adequate light on the intensity of the issue and its possible impacts on an organiz ation. The competition analysis team of PG utilized the services of external agencies to collect information related to production process of the competitor, Unilever (Shah, 2013). The activity was rebuked by the senior management of the company and the move was annulled immediately with disclosure of the issue in public by the General Manager of PG, John Pepper. The decision was also reflective of employment of an impartial auditor in order to ensure permissible collection of information. Therefore, it can be concluded that industrial espionage can appear to be providing a reasonable opportunity for business growth with the nascent implications of a maligned brand image in cases when the espionage activities are revealed (Taipale-Ervala, Heilmann Lampela, 2014). Human Rights: The conjunction of human rights and employment practices serve as the next prominent ethical issue in international trade. International trade is preceded by numerous considerations and planning for distribution and implementation of resources. Human resources are known as the foundation for an enterprise in a foreign market since an organization cannot move its workforce from home country to host country (Livingstone Bovill, 2013). The working environments, payment for employees, trade unions in host country and working hours for employees changes invariably for distinct international market environments for a specific organization. Even though the hostile workplace environments are preferred in a host country, an organization must assume it as an ethical issue of violation of employment laws. Multinational corporations also face to accommodate the scope of human rights diversely in their practices. General issues observed in human rights include limitation on free speech, movement , assembly and freedom (Rajendran, 2015). The source of human rights issues can be derived from the disparity in home and host country cultures which indicates that practices favored by an organization in its home market environment could be perceived as hostile by employees from the host nation. Therefore, managers associated with the domain of transnational business have to be fluent while apprehending the cultural background and individual necessities of employees in order to address the ethical issues well before their origin. Negligence for employment laws and human right are ethical issues which can create distinct setbacks for an organization in international trade as the sustainability of the organizations activities would be at risk due to the lower involvement of employees (Shah, 2013). Critical Reflection: The three ethical issues in industrial trade which have been illustrated above with references to literature show that ethical issues can vary in complexity and intended for the benefits of an organization to some extent. The outcomes of the unethical activities such as industrial espionage, corruption and human right and employment practice violation have also been found out to be excessively impactful on the reputation of the company as well as the costs to the organization (Smith, 2014). The effects of unethical activities can be illustrated in the form of a linear progression starting from the initiation of unethical practices in an organization. The violation of ethical principles requires the organization to invest resources in order to cover up the unethical practices. Thereafter, the organization loses its reputation in the market and subsequently valued clients and business partners (Livingstone Bovill, 2013). Addressing each of these issues through legally verified framewo rks would be minimally helpful as the necessity for introducing ethical practices has to be considered from the situational and organizational perspective. The definitions of ethical behavior in international trade have to be diversified according to the contexts of varying industries in order to obtain functional remedies to ethical dilemmas. Conclusion: The essay highlighted three major issues laid out for organizations involved in international trade. Organizations have to assume the wider concepts of ethical behavior and study the literature associated with ethical issues (Silberberg Lmmel, 2014). References to past cases of unethical behavior in multinational organizations could help in generating a comparative view and hence formulate convenient measures for addressing the issues. References Adeleye, I., White, L., Ibeh, K., Kinoti, A. (2015). The Changing Dynamics of International Business in Africa: Emerging Trends and Key Issues. InThe Changing Dynamics of International Business in Africa(pp. 1-12). Palgrave Macmillan UK. Botha, A., Kourie, D., Snyman, R. (2014).Coping with continuous change in the business environment: knowledge management and knowledge management technology. Elsevier. Bennett, W. L. (2014). Press-government relations in a changing media environment. InThe Oxford Handbook of Political Communication. Chapin, F. S., Sala, O. E., Huber-Sannwald, E. (Eds.). (2013).Global biodiversity in a changing environment: scenarios for the 21st century(Vol. 152). Springer Science Business Media. Livingstone, S., Bovill, M. (Eds.). (2013).Children and their changing media environment: A European comparative study. Routledge. Keppler, S. B., Olaru, M., Marin, G. (2015). Fostering Entrepreneurial Investment Decision in Medical Technology Ventures in a Changing Business Environment.Amfiteatru Economic,17(38), 390. Pittenger, L. M., Perelli, S., Somers, T. (2012, June). IT professionals: maximizing engagement in the rapidly changing business environment. InTechnology Management Conference (ITMC), 2012 IEEE International(pp. 248-256). IEEE. Rajendran, M. M. A. (2015). Changing Business Practices in Current Environment.Journal of Research in Business, Economics and Management,2(2), 87-88. Smith, S. S. (2014). The expanding role of CPAs in a changing business environment.The CPA Journal,84(6), 13. Silberberg, R., Lmmel, U. (2014). Structuring Project-Based Executive Education to Address the Opportunities of a Rapidly Changing Business Environment.Scientific and organising committee, 256. Shah, S. (2013). Human resource management in the changing business environment of the Indian construction industry: a case study.Emerald Emerging Markets Case Studies,3(6), 1-17. Taipale-Ervala, K., Heilmann, P., Lampela, H. (2014). Survival competence in Russian SMEs in a changing business environment.Journal of East-West Business,20(1), 25-43.