The Comedy of Hamlet - 1827 Words

The Comedy of Hamlet Shakespearean plays are often known for their outstanding entertainment and classic comic conflict. In his masterwork, Hamlet, Shakespeare uses these aspects to serve his thematic purpose. He has used comedy throughout many of his historic plays, but in this play, comedy is the drawing point that makes it fun and entertaining, yet clear and intuitive. Generally, his tragedies are not seen as comical, but in reality, they are full of humor. However, these comic elements don’t simply serve to relieve tension; they have much significance to the play itself. The characters of Hamlet, Polonius, Osric, and the Gravediggers, prove to be very influential characters, and throughout the play, they are the individuals that†¦show more content†¦Osric’s role during the play was to enlighten the intensity in the room and use humor to create a positive atmosphere. As courtier to the king, Osric was not necessarily one of the most influential characters, but he did play a n important role as a servant and â€Å"braggart soldier† (Draudt, 2002). His character allowed a more powerful character (Hamlet), to â€Å"not only make fun of [his] diction, but also deliberately baffle and confuse [him] and thus expose [his] slow wits† (Draudt, 2002). Throughout Act V, Osric isn’t usually the one to offer the humor, but the humor is revolved around him. This type of comedy reflects the meaning of his social class, and as Hamlet ridicules him, it only weakens his reputation. Nonetheless, Hamlet uses this humor to poke fun at Osric and is therefore viewed as comedy. The importance of this action is to show the ignorance of Osric’s character and how easily he can be manipulated by his fellow men and because it highlights his function in society and his class rank. In addition to being mocked, Osric also â€Å"serves as [a] foil to the hero (Hamlet), contrasting with [his] genuine wit†¦ [and] honesty† (Draudt, 2002). As a foil, Osric is the complete opposite of Hamlet, and that can be seen by the way Hamlet treats Osric. This reveals to the audience the differencesShow MoreRelated The Comedy of Hamlet Essay1191 Words   |  5 Pagesthe use of comic relief best contrast the tragedy of Hamlet? In great works of literature a comic relief is used as contrast to a serious scene to intensify the overall tragic nature of the play or to relieve tension. As illustrated in Shakespeare’s tragedy Hamlet, intense scenes are joined with character’s banter and vacuous actions as to add a comic relief. 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Death is sad but the dark humor gives it a different satire to the event. The language of the play is used to create comedy with wit that is meant to be pleasing to the audience and define what kind of characters are in the play. Hamlet the person plays many parts the clown, the fool and the madman. HamletRead MoreEssay on Compare and Contrast Comedy and Tragedy914 Words   |  4 PagesCompare and Contrast Comedy and Tragedy In a comparison of comedy and tragedy, I will begin by looking at narrative. The narration in a comedy often involves union and togetherness as we see in the marriage scene at the end of Midsummers Night Dream. William Hazlitt tells us that one can also expect incongruities, misunderstandings, and contradictions. I am reminded of the play The Importance of Being Ernest and the humor by way of mistaken identity. Sigmund Freud tells us to expect excessRead More tragoed Metamorphosis of the Tragedy in Oedipus Rex, Hamlet, and Desire Under the Elms736 Words   |  3 PagesMetamorphosis of the Tragedy in Oedipus Rex, Hamlet, and Desire Under the Elms Tragedy is considered by many to be the greatest of the genres. Often something goes wrong and exposes something great. Characters generally have more depth as evidenced by Hamlet. Tragedy shows up in the great periods of history: Classical Greece, Renaissance, and the early 20th century. It is a far more complex genre than comedy or romance. It teaches people to think since the storylines never have a simpleRead More Comic Relief Of Hamlet Essay examples1404 Words   |  6 Pages A Portrayal of Humor Within the Tragedy of Hamlet How does humor factor into a tragedy? Shakespeare knew the answer to this question and acted upon it quite frequently. Shakespeare has been known to write comedies and tragedies both but this does not qualify him at to not incorporate a little of each into each other. In the work of Hamlet there are many occasions where Shakespeare uses it for different effects. The main reason for the presence of humor within a tragedy is to keep the reader interestedRead MoreWilliam Shakespeare s Romeo And Juliet, King Lear, And A Midsummer s Night Dream1037 Words   |  5 PagesThe Bard of Avon, commonly known as William Shakespeare is one of the best known playwrights in the (Video). A few of his most famous plays include Hamlet, Romeo and Juliet, King Lear, and A Midsummer’s Night Dream (McArthur). Although he was popular during his time, Shakespeare’s influence continued to grow after his death and today he well known around the world. He added 2,000 words to the English diction ary and he is the 2nd most quoted after the Bible (Video). Shakespeare is one of the mostRead MoreEssay on Hamlet and Tragedy524 Words   |  3 PagesHamlet and Tragedy Hamlet: A Tragedy When you think of William Shakespeare, Hamlet is the first thing most people think of, as his work. Hamlet is also a classic example of a tragedy. In all tragedies the hero suffers, and usually dies at the end. All good pieces of literature written way back when, are usually tragedies. The most important element is the amount of free will the character has. In every tragedy, the characterRead More Hamlets Sense of Humor Essay1391 Words   |  6 Pagesaudience to take, William Shakespeare strategically placed several humorous scenes throughout his masterpiece, Hamlet.   In particular, the character of Polonius fills the role of the comic fool; he is in two essential comedic scenes, one with his own children and then one with Hamlet.   Shakespeares acute ability to weave humor into this very heavy play is noteworthy, as his use of comedy goes beyond merely providing much-needed comic relief.  Ã‚   In fact, the rather numerous comedic scenes serveRead MoreWilliam Shakespeare s The Ghosts 1116 Words   |  5 Pageswere be powerful links between his art and the haunting of spirits (157). The richest and most complex exploitation of the theatrical capital Shakespeare found in ghosts is in Hamlet. The ghost in Hamlet is the specter of Hamlet’s recently deceased father, who claims to have been murdered by Claudius and calls upon Hamlet to avenge him (Shakespeare xi). It is important to grasp how frequently and insistently the figure of the ghost repeats all through his plays. The inquiries the figure raises

Human Breast Milk A Review On Its Composition And...

The article â€Å"Human breast milk: A review on its composition and bioactivity† was found on the database called CINAHL complete. The terms â€Å"breast milk† and â€Å"health† were used during the search. The abstract of the article is the following: â€Å"Breast milk is the perfect nutrition for infants, a result of millions of years of evolution, finely attuning it to the requirements of the infant. Breast milk contains many complex proteins, lipids and carbohydrates, the concentrations of which alter dramatically over a single feed, as well as over lactation, to reflect the infant’s needs. In addition to providing a source of nutrition for infants, breast milk contains a myriad of biologically active components. These molecules possess diverse roles, both guiding the development of the infants immune system and intestinal microbiota. Orchestrating the development of the microbiota are the human milk oligosaccharides, the synthesis of which are determined by the maternal genotype. In this review, we discuss the composition of breast milk and the factors that affect it during the course of breast feeding. Understanding the components of breast milk and their functions will allow for the improvement of clinical practices, infant feeding and our understanding of immune responses to infection and vaccination in infants.† (Andreas, J. et al., 2015, p.629) This article mentioned the ingredients of the breast milk including the protein compounds, carbohydrates, and others. In addition, itShow MoreRelatedVitamins and Minerals in Modern Society7964 Words   |  32 Pagesand must be obtained from the diet. Thus, the term is conditional both on the circumstances and the particular organism. For example, ascorbic acid functions as vitamin C for some animals but not others, and vitamins D and K are required in the human diet only in certain circumstances. The term vitamin does not include other essential nutrients such as dietary minerals, essential fatty acids, or essential amino acids, nor does it encompass the large number of other nutrients that promote healthRead MoreHuman Kallikrein Related Peptidases ( Klks )8953 Words   |  36 Pageschallenge notably because of intra- and inter-malignant tumor heterogeneity and adaptation/escape of malignant cells to/from treatment. New targeted therapies need to be developed to improve our med ical arsenal and counter-act cancer progression. Human kallikrein-related peptidases (KLKs) are secreted serine peptidases which are aberrantly expressed in many cancers and have great potential in developing targeted therapies. The potential of KLKs as cancer biomarkers is well established since the demonstration

A REVIEW FOR A MULTINATIONAL CORPORATION - Free Essay Example

Sample details Pages: 15 Words: 4547 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Research paper Did you like this example? The Company Ive chosen for the dissertation deals with projects in providing offshore solutions and infrastructure to the Oil Gas extraction companies. As the projects are high investment oriented and needs millions and billions of dollars and other foreign currencies as the firm deals with the countries like Italy, Germany, France, UK and Japan for procurement of inventory materials and the skilled professional to perform and accomplish the objectives of the projects with the maximum customer satisfaction and optimum return to the stake holders. As and when the project progress, the payments have to be made to the suppliers of the materials and the services of the subcontractors that have been ordered and assigned respectively. Don’t waste time! Our writers will create an original "A REVIEW FOR A MULTINATIONAL CORPORATION" essay for you Create order In this stage, the company gets the exposure in to the risk of cash out flow in other foreign currencies such as EURO, GBP, YEN, NOK other than the functional currency USD. The cash flows exposure to the risk factors is the sensitivity of the cash flow to the unexpected changes in the risk factor. The risk factor is the variable such as price, quantity that can change unexpectedly for reasons beyond ones control. Exposure to cash flow to risk factor = change in cash flow per unit change in risk factor. Lest us consider a simple example of purchasing an inventory for EUR 20,000 needs to be paid in due course at the market rate. At the beginning the exchange rate was 1.20 dollar per euro which gives cash out flow of $24,000. But when the real payment has to be made the rate has spiked up to 1.41 dollars per euro ended up in out flow of $28,200 resulting in a loss of $4,200. To eliminate or minimize these risks on the Cash flow of the project, the firm enters into financial agreement with a counterparty called a hedge. A financial position that reduces the risk resulting from exposure to a risk factor called a financial hedge. Here the firm chooses a financial hedge is a forward contract. In the above given example, the firm will enter into a forward contract say with a Bank, with an obligation to serve the contract at a given period of time with an agreed price. Like the firm will agree with the bank to buy ÃÆ' ¢Ãƒ ¢Ã¢â€š ¬Ã… ¡Ãƒâ€šÃ‚ ¬20,000 at the end of 3 month from the date of contract at an agreed price of say $1.32 inclusive of charges and commission. This will minimize the risk of the firm by $1,800, which is a notional gain for the company. The above example is very simple vanilla explanation of a foreign currency exposure in a single cash flow with assuming constant exchange rates, no inflation and no other source of uncertainty. But in actual financial market conditions the firm will face catastrophic uncertainties. This dissertatio n gives a detail study about how the company deals with the cash flow risk through forward hedging and how the various factors affect the pricing of the derivatives. The possibilities of the firm to maintain the effectiveness, the balancing act between the uncertainties and the techniques to overcome the uncertainties. As the risk factor is unlimited in the foreign currency exposure cash flows and the company is not fine tune its practice and procedures to curtail the risk of the firm, then the interest of the stakeholders of the will be in jeopardy. To safe guard the interest of the investor, the regulatory authorities inflict every company to comply with the set financial reporting procedures in relation to every financial aspect of the company. FASB statement No-133 establishes a uniform procedure of accounting for Derivative Instruments and Hedging Activities, and related amendments and implementation issues. Chapter 1 Introduction and Overview Introduction The company that I have chosen is one of the leading worldwide marine solutions companies with fabrication facilities in the Americas, Middle East, Caspian and Asia Pacific. They are the leading provider of engineering, procurement, construction and installation in the global oil and gas industry. It is a project based firm. Companys self description to the market is Challenging Projects. Its What We Do. This company does EPCI Projects (Engineering, Procurement, Construction and Installation). Our major budget is for the procurement (Nearly 60% to 70% for the total budget) of steels, Inconel pipes and valves from various parts of the world. All the three are very highly priced and also have fluctuations in price very often. We need to make huge payments to the vendors who supply these materials according to the achievement of agreed milestones. After the award of the project, the engineering phase will start; followed by procurement as per the specifications drawn by the e ngineers. The procurement functional department with the Project specific Procurement Manager decides the modus operandi and then gets the price quotes from repute vendors and vendors recommended by the Client. In this place the PMT and the functional department decides the vendor to whom the order should be placed; who fulfill the technical and commercial conditions. Simultaneously a detailed procurement plan will be prepared and will be passed on over to the Project Accountant to prepare the cash flow which will be the designated item to hedge. Importance of Topic Project revenues (cash inflows) of almost all the Projects are in US Dollars. Hence, when these huge procurement orders are being placed with Vendors from Germany, UK and Japan, the MNC has to pay them in their currency. THE COMPANY faces the foreign currency exposure at this juncture. To protect the firm from adverse/unfavorable changes in foreign currency exposure, Firm enters into forward contracts to hedge the EURO and GBP cash flows. In other words, the Firm hedges its cash flow of the currencies other than its base currency in order to reduce the volatility (ÃÆ' Ãƒâ€ Ã¢â‚¬â„¢) of the Cash flows. A Hedge is a position in a hedging instrument (here its Forward Contract) put on to reduce the risk resulting from the exposure to a risk factor. Statement about Problem The predicament our company faces is the cash flow forecast of the EURO and GBP as it being keeps on roll over due to non-achievement of milestones by the vendors. The payments of such milestones keep on delaying month by month. In this circumstance, the hedge becomes ineffective. Hedge Effectiveness reflects the degree to which changes in the performance of an underlying risk exposure, i.e., underlying hedged item, in respect of a designated risk are offset by changes in the performance of a designated hedging instrument. Effectiveness clearly depends upon the specific hedging objectives which are reflecting on two key factors: The specific performance metric being used, The designated risk being hedged If there is lack of offset between the hedging instrument and the hedged item then the hedge is said to be ineffective. The range of offset is 80 120 percentages. Dissertation Outline This study visualizes the following: Analyze the currency exposure and cash flows Understand the current approach of hedging other currency cash flows. Identify the other possible ways of hedging the risk Make Models and run using historical data Find and recommend the company better solutions to minimize risks. Ill work on the data available within The Company and The Reuters Bloomberg for the Spot and Forward rates. The research methodology would be worked out using the knowledge acquired on hedging strategies through the EMBA Curriculum and the work experience. The final outcome will have the following: Information on EURO GBP Cash flows Identification of risks in the deployment of EURO and GBP Use of Forwards, Futures or Options to minimize risks or rather make profit. Build and evaluate models and demonstrate its benefits Testing the Models Final Recommendations. Summary AASB-139: The Cash flow hedge is hedge of exposure to the inconsistency or volatility in cash flows that are attributable to a particular risk associated with a recognized asset or liability or a forecast transaction Examples of circumstances to which cash flow hedges may be appropriate include: Hedge of future foreign currency exchange risk associated with an unrecognized contractual commitment to purchase stocks (inventory) or commodity for a fixed foreign exchange amount; or Hedge of change in price of inventory stock or commodity relating to an unrecognized commitment to purchase at a fixed price with payment in the domestic currency; or Use of a swap to change a floating rate debt into fixed rate debt. This dissertation narrates about the first point noted above. Cash Flow Hedging Example Company ABC Limited is an American retail company with USD as its functional currency. It has projected to order EUR 3,000,000 new game consoles for the Xmas period to be delivered in December 20xx. Payment is due to occur in January 20xy in EUR. In January 20xx the company management decides to hedge the foreign currency risk arising from the projected purchase. ABC Limited has determined the transaction is highly probable and the company has entered into a forward contract to buy EUR against USD. Assume hedges have been effective prospectively and retrospectively The fair value and movement in the fair value of forward contract and the fair value of the hedged item i.e. hypothetical derivative are set out below for each measurement date. 1 Jan xx USD $ 000 30 June xx USD $ 000 31 Dec xx USD $ 000 Fair value of hypothetical Derivative 0 (190) 55 Change in value of Hypothetical Derivative (190) 245 (55+190) Fair Value of derivative 0 200 (50) Change in Fair Value of derivative in period 200 (250)=(-50-200) Entries at 1 Jan xx No entry required for the derivative as it was entered into at market rates and no cash was exchanged. Fair value of derivative at inception is nil Entries at 30 June xx Derivative DR 200,000 Unrealized Gain Cash Flow Reserve CR Unrealized Gain Other Income CR To record clean fair value of the derivative post cash flow hedge reserve entries Entries at 31 Dec xx Unrealized Gain Cash Flow Reserve DR 250,000 Derivative CR Unrealized Gain Other Income DR 10,000 Cash Flow Reserve CR To record clean fair value of the derivative post cash flow hedge reserve entries Cash Flow Reserve DR 50,000 Inventory CR To record transfer of the balance of the cash flow reserve to inventory on the physical receipt of the inventory Inventory DR 3,500,000 Accounts Payable CR To reflect the receipt of Inventory Entries at 31 Jan xy Derivative DR 50,000 Cash CR To record settlement of derivative Cash Flow Hedge Reserve Reconciliation 30 June xx 31 Dec xx Opening Balance 190,000 Gain/(Loss) on Derivative 190,000 (250,000) Transfer from prior period PL 10,000 Balance 190,000 (50,000) Transfer to inventory 50,000 Final Balance 190,000 0 Profit Loss 10,000 (10,000) When calculating or obtaining (from bankers) fair values of derivatives or hedged items the clean fair value should be used. The clean fair value excludes accrued interest. The dirty fair value is the fair value including accrued interest. The use of clean values in effectiveness testing results often results in less ineffectiveness than the use of dirty values. With cash flow hedges as there is no hedged item to perform effectiveness testing and generate accounting entries it is necessary to use a proxy derivative or hypothetical derivative. The hypothetical derivative can be derived by selecting a derivative that is similar to the expected cash flows. Alternatively the fair values of the cash flows being hedged can be used as the hypot hetical derivative. Hedge accounting is discontinued and the balance of the hedge reserve is transferred straight to profit and loss when the firm commitment or forecast transaction is no longer expected to occur. Hedge accounting is discontinued and remains in equity until the firm commitment or forecast transaction occurs: Hedged instrument is sold , terminated or expired; or The hedge no longer meets hedging criteria for hedge accounting; Chapter 2 Research Methodology Introduction Forecasting the cash out flow arises out of payments of the foreign currencies or exchange can be difficult, as the exact timing of future payments is often unpredictable. Firms have cash flows that are stochastic and wish to hedge them. When the exchange rates fluctuate, this uncertainty makes managing cash flow and maintaining the precincts even more challenging. So, if optimizing cash flow is critical to your business, Forward Contracts may be just the tool you need to gain control over foreign payments. What is a Forward Contract? It is a foreign exchange instrument or may be a derivative agreement for purchasing a set amount of a foreign currency at a fixed rate for distribution over a predetermined length of time. It provides a range of days a window of time for settling the contract at a previously agreed price. Forward Contracts are often used when you expect to make foreign payments, but payment dates are uncertain. You benefit from greater flexibility, certainty a nd convenience because you establish your exchange rate in advance and pay invoices as they become due. In addition, Forward Contracts do not require upfront funding. Payment is required only when the contract is drawn down and only for the amount you need. Therefore, you have access to funds, and your cash in hand will continue to earn interestÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦all while establishing your foreign exchange costs in advance. If a firm has undertaken a cash flow hedge, it has to demonstrate that this hedge is Effective. If a cash flow hedge is effective, the derivative qualifies for hedge accounting treatment. The effectiveness of the hedge requires the hedge to meet a standard set by the Company as to how the gains of the hedge offset the changes in cash flows being hedged. This standard has to be set at the time the derivative position is entered. If the standard is no longer met at some point during the life the hedge, the firm looses the use of the hedge acc ounting. The effective part of the gains and losses of the derivative that offset the changes in cash flows being hedged. The gains and losses of the derivatives flow through Other Comprehensive Income rather than earnings and hence do not affect earnings as long as the gains and losses of the hedged cash flows are not recognized. When the gains or losses on the hedged cash flows are realized, the gains and losses that went through Other Comprehensive Income are used to offset the gains or losses on the hedged cash flows. Research Background Research Questions Though the firms core competency is building projects, the ultimate mission and goal is to increase the shareholders wealth and satisfaction. So it is very important to tap the opportunities wherever available to make or realize revenues and enhance the earnings of the company. Hence to accomplish the aphorism we need to analyze the following positions with the available facts, figures and the extensive learning. Is Insurance a Proper hedge for OR? The discussions about the appropriateness of insurance to protect against the operational risk have dominated the topic of operational risk hedging. The mains issue is that the definition and classification of operational risk varies significantly. Therefore insurers fear being held liable for losses that have not be factored into their premium calculations. As a result, insurers generally word policies very carefully in order to exclude risks that are not definite in amount, time, place or cause. Consequently this may lead to gaps in the available cover, preventing the insurance of all risks encompassing OR (although some business risk types, which are not included in regulatory capital, might be included). In addition, where policies have not been properly worded there is the possibility of lengthy disputes over whether a loss really is covered or not. This can at best lead to long delays in the payment of claims. Decision making on whether to opt the hedging for the disbursement of the cash flow or not How to make the Hedging function as profit centre of the business Research Objectives The main purpose of this dissertation is to gain an understanding on the value implications of the cash flow hedging. In other words how the corporate hedging affects the value of the firm. What are the merits and demerits of Cash out flow hedging? Is Hedging Model gives maximum returns or gains while reducing the uncertainty of the cash flows that are stochastic? Research Approach Analyze the foreign currency cash flow of a corporate at a given period for their potential risks and the way to eliminate them through derivative trading and come up with the appropriate hedging model to maximize the earnings. Research Methodology Problem Definition As the firms core competency of the firm is not Derivative trading, the company is not considering handling derivatives innovatively. They are just concentrating on developing, improvising, competing and sustaining the existing industry of building projects. This dissertation is to analyze and prove that the treasury also be a profit centre that being regarded as a supportive or service unit. This is to indulge the intrapreneurship upon the internal stake holders that they can also be part of the earnings of the Company and their ultimate mission and goal should align with the companys mission to increase the shareholders wealth and satisfaction. Research Design Plan (Data Sources etc) Refer APPENDIX-1 for the design or nomenclature followed by the company to enter into a derivative forward contract. All the data are supplied or collated through Secondary Data sources which are very much from the internal and confidential. The data are consciously maneuvered to maintain the confidentiality of the firm, without affecting the objective of this thesis submission. The Other secondary sources are https://www.oanda.com, https://www.x-rates.com, https://www.bloomberg.com. Qualitative Data Analysis The Research methodology is purely qualitative as the analysis is based on the content of the collected data. The data collected were the cash flows in other foreign currencies other than the Companys functional currency US Dollars. To be specific the cash flows are the EURO and GBP payments forecasted to pay the vendors who have supplied the inventory for various projects. As already mentioned, the analysis is about how to decide upon whether the cash flow has to be hedged or not with objective of eliminating the uncertainty of the cash flows that are stochastic. The company is mainly deals with the Foreign currency Forward Contracts. A forward exchange contract (or forward contract) is a binding obligation to buy or sell a certain amount of foreign currency at a pre-agreed rate of exchange, on a certain future date. To take out a forward contract you need to advise us of the amount, the two currencies involved, the expiry date and whether you would like to buy or sell t he currency. It can be possible to build in some flexibility to allow the purchase or sale of the currency between two pre-defined dates rather than a single maturity date. Consider a Forward contract where you agree on 1st of March to purchase EUR 1,000,000 on 1st of June at a price of F. The price of the deliverable asset for Spot Delivery would be SJune-1 at the maturity of the Contract. The pay off of the Contract at maturity is 1,000,000 (SJune-1 F). To create a replicating portfolio for the forward contract, Ive to purchase an asset on 1st of March that pays EUR 1,000,000 on 1st of June. I can purchase today an amount of EURO such that on 1st of June Ive EUR 1,000,000 by buying EUR T-bills for a face value of EUR 1,000,000 maturing on 1st of June. The EUR T-bills maturing 1st of June must have equal value to the present value of the forward price. Pricing formula for a foreign exchange currency forward contract St = Spot Price at a given date (t) rFX = Interest rate on Foreign Currency (EURO) Treasury Bill maturing at (t+i) i = Maturity date of the Forward Contract r = Interest rate on a US Treasury Bill maturing at the same date. F = Forward price of the Foreign currency (EURO) Assuming with the confidence level of 99%, the replicating portfolio has zero value at initiation, the formula being generalized as: St e-rFX ÃŽ i ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â€š ¬Ã‚ ¢ Fe-r ÃŽ i = 0 This formula implies that the forward price must be: F = St e(r-rFX) The equation represents that the hedge ratio is one because the firm goes short one EURO forward for each EURO of exposure. The hedge ratio is the size of the hedge for a one-unit exposure to a risk factor. The key to pricing the Forward contract is that they can be replicated by the underlying asset and financing the purchase until the maturity of the contract. This allows the traders to price the contracts at arbitrage. This means that we can price a forward contract without having a clue as to the expected value of the underlying asset at maturity. To price a forward contract on a currency, we ÃÆ' ¢Ãƒâ€¹Ã¢â‚¬  Ãƒâ€šÃ‚ ´, dont need to know anything about the determinants of changes in the exchange rates. The Forward price depends upon: the interest rate that has to be paid to finance the purchase of the underlying asset; the cost to store it and the benefit from holding it. TREND SENITIVITY ANALYSIS OF EUR/USD: EUR/USD EXCHANGE RATES USED IN BID Rate Txn Value Project-A 0.763 9,472,124 Project-B 0.763 13,788,450 Project-C 0.763 40,540,186 SENSITIVITY ANALYSIS Rates Proba-bility Values Low Avg High Low Avg Project-A 0.841 0.736 0.660 50% 11,265,609 12,867,111 Project-B 0.841 0.736 0.660 35% 16,399,203 18,730,489 Project-C 0.841 0.736 0.660 67% 48,216,206 55,070,551 59% 75,881,017 86,668,151 Sensitivity due to change in rate (7,697,977) 3,089,156 TREND SENITIVITY ANALYSIS OF GBP/USD: GBP/USD EXCHANGE RATES USED IN BID Rate Txn Value Project-A 0.637 19,940,303 Project-B 0.637 35,273,919 Project-C 0.637 9,632,902 SENSITIVITY ANALYSIS Rates Proba-bility Values Low Avg High Low Avg Project-A 0.702 0.640 0.592 70% 28,392,856 31,142,125 Project-B 0.702 0.640 0.592 55% 50,226,283 55,089,675 Project-C 0.702 0.640 0.592 47% 13,716,221 15,044,358 Total 64% 92,335,360 101,276,157 Sensitivity due to change in rate (9,474,624) (533,827) Statement on Research Findings Limitations Reliability The decision of going forward and place a forward contract hedging relies on two major factors: Trend line of the Exchange rate fluctuation or movement Cash flow of the Foreign currencies (i.e) Underlying asset To have reliable derivative instrument to protect the underlying asset from affecting the bottom line of the firm, we need to have a consistent and scientific way of structuring the cash flow through which its stochastic nature could be eliminated. The firm has a huge exposure and limitations on the reliability upon the formulation of cash flows as it involves various decisive factors. Some of them are: Approval of drawings and its documentation Approval/Passing of Quality check and the specifications of raw materials Delivery of the Product Submission of documents as per the contract Validity Risk is costly to export onto the business. Consequently if hedging has no cost, the firm chooses it to minimize the risk. To determine whether and how to hedge the cash flow it is essential to measure Value at Risk (VaR), Cash Flow at Risk (CFaR) and Volatility, so that the firm can determine how much of that risk it wants to bear. We consider the risk-minimizing hedges of a foreign currency position when risk is measured by volatility, VaR and CFaR. Value at Risk measures the potential risk or loss anticipated (worst case scenario) on an investment or an asset or portfolio over a defined time period for a given level of confidence. The notion of the VAR is simple the maximum sum that you can lose in any investment over a particular period with a specified probability. CFaR measures the expected maximum decrease in the expected cash flows resulting from the adverse movement of the market, over a defined period for a given confidence interval. To calculate CFaR the fol lowing steps are performed: Setting time horizon and confidence interval. Cash flow mapping. Identifying risk factors. Simulation of risk factors. Revaluation of cash flows. Constructing the probability distribution of cash flows. Reading the value of the particular quartile of the cash flow distribution based on the confidence level. There are different methodologies of calculating at-Risk measures: Variance-covariance methodology (delta-normal) Historical simulation Monte Carlo simulation (Being used to evaluate the risk) Volatility-minimizing hedge of cash position, when the returns are identically independently distributed: Cov [r(cash).r(hedge)] ÃŽ Cash Position Var [r(hedge) This equation makes clear that the risk-minimizing hedge depends on the size of the cash position. As the cash position increases, the volatility-minimizing hedge involves a larger dollar amount short in the hedge instrument. Summary With the detailed study, its evident that the Forward Contract can have substantial default risk. As financing and storage become more expensive, the forward price increases compared to the current price of the underlying asset. But the systematic risk reduces the forward prices to compensate the financing and storage risk. The important factors to consider while entering into forward contract is that measurement of VaR, CFaR and the Volatility of the underlying asset and also the basis risk (I,e) the determination of relation between the forward price and the spot price. Apart from these the other important factor is the market condition which is the systematic risk, which plays a vital role in the decision making. So the firm has to always watchful to take right decision on right time about when to enter the market and when to exit the out the hedging position. Chapter 3: Analysis and Interpretation Results on Findings Analysis After the detailed review of the firms role play in the field of Cash flow hedging I found that there cash flows are stochastic and they could not capitalize on the due the various factors that had been listed out in Statement of Research Findings. There is no access provided in the measurement of VaR, CFaR and the volatility which is the most important criterions in deciding upon the hedging instrument. I find there is no much need as the firm opts only forward contracts and not any other hedging instrument. As mentioned earlier, there is no need to fear the risk if you make sure that hedge ratio does not fall beyond control. But in this case, I found that due the major deviation in the cash flows, the ratio could not be managed and the forward contract could not be replicated by an underlying asset to purchase at the time of maturity, which resulted in the ineffectiveness of the hedge. Chapter IV: Conclusion Recommendation Due to the lack of proper system, it is very difficult for the firm to have a control on the cash flows and to round up the problems that are resulting in the ineffective cash flow. As a result of this dissertation, it was evident that the firm has to improve the status of the cash flow to have efficient and effective decision making on selection of the hedge instrument. And the same has been recommended to the Company along with other considerations on measuring the risk related to the Cash flow and Volatility, so that the firm can find other better options of derivative instruments rather sticking onto the Forward Contract alone. APPENDIX-1 Foreign Exchange Transaction Process Counter Party Bank Trading Desks access Misys/CMS via Internet and provide confirmation of FX transaction details Bank trading Desks offer Forex Rates to the treasury via Telephone or Bloomberg Corporate or Other Subsidiary Treasury Treasury sends Transaction confirmation to the subsidiary Treasury reviews Misys/CMS for confirmation of FX transaction details Treasury contacts Banks for the quotes via Telephone or Bloomberg Treasury proceeds with the txn and loads details into quantum or Bloomberg loads quantum automatically Forex Txn details automatically gets loaded into Misys /CMS for matching confirmation with Bank counterparties MISYS/CMS Quantum (Treasury Work Station) Subsidiary provides the Hedge request to the Treasury

Fate in William Shakespeares Romeo and Juliet Essay

Fate in William Shakespeares Romeo and Juliet The tragedy of Romeo and Juliet, written by the ever-famous William Shakespeare, is an eloquent story of passionate love between two teenage individuals of a time long ago. These individuals, Romeo and Juliet, fall helplessly in love with each other, in spite of the fact that their families, both upper class, have been enemies for generations. The two lovers therefore strive to maintain their ardent bond with each other in secret. They also encounter various obstacles along the way and suffer serious consequences, such as Romeos banishment to Mantua and the obligatory marriage of Juliet to Paris. In efforts to overcome such hindrances to their love,†¦show more content†¦Romeo, for the first time, senses his portentous fate and perceives it as perpetually hanging in the stars. This supports the fact that, like stars, fate emanates from the heavenly realm and is indelibly etched into time. Through later events such as Romeos banishment, Romeo becomes convinced that fate is against him and that it wants to keep him apart from his love, Juliet. Consequently, upon hearing of Juliets death, Romeo utters, ...-Then I defy you, stars-! revealing his attempt to challenge fate. This quote also reveals the metaphorical similarity between fate and its vehicle, stars, in that both supremely control from the heavens. In addition, Romeo states immediately before his death,O, here / Will I set up my everlasting rest / and shake the yoke of inauspicious stars / from this world-wearied flesh!... Again, fate is replaced with stars to strengthen the meaning of fate and create a mental image of it, as well. Truly, Shakespeare cleverly reinforces the theme of fate through the motif of stars. As the motif of stars represents the theme of fate, so does the character of Friar Lawrence. The friar soon begins to recognize the haplessness of the situation, finding ways to work around fate. He states, ...FearShow MoreRelatedEssay on Fate in William Shakespeares Romeo and Juliet1 096 Words   |  5 PagesFate in William Shakespeares Romeo and Juliet When William Shakespeare wrote ‘Romeo Juliet’ he told a tale of â€Å"A pair of star crossed lovers†. The role of fate plays an important role in the play. The themes of conflict, love, revenge, religion destiny all tie in with the role of fate. Romeo Juliet were both born into and â€Å"ancient grudge† fuelled by two formidable families, the Capulets and Montagues. Fate plays a very important role in the play, and at theRead More Fate in William Shakespeares Romeo and Juliet Essay1094 Words   |  5 Pagesnbsp;nbsp;nbsp;nbsp;nbsp;Fate, for better or worse, interrupts everyone’s daily life, whether he/she chooses to acknowledge it or not. Thinking about fate conjures up different feelings for different people; some people believe strongly in it, some people think of fate as ridiculous, and some do not care one way or the other. However, in many instances, such as in William Shakespeare’s The Tragedy of Romeo and Juliet, far too many coincidences occur to be strictly coincidental. Fate creates a powerfulRead More The Role of Fate in William Shakespeares The Tragedy of Romeo and Juliet2378 Words   |  10 PagesThe Role of Fate in William Shakespeares Romeo and Juliet Romeo and Juliet, the first romantic tragedy was based on a poem translated from the French Novella (1595). Romeo Montague, who is in love with Rosaline, goes to a party in an attempt to take his mind off her. At this party he meets Juliet Capulet and immediately falls in love with her. Later he finds out that she is a Capulet, the rival family of the Montagues. He decides that he loves her in spite ofRead MoreWilliam Shakespeare s Romeo And Juliet987 Words   |  4 Pages William Shakespeare’s Romeo and Juliet is centered around the tragic story of two â€Å"star-cross’d lovers†. A tragedy is a dramatic story that chronicles the downfall or death of a tragic hero. Tragedies usually depict the causes of a tragic hero’s downfall, which are most commonly a tragic choice or a tragic flaw. There is often some sort of greater power at play in tragedies, like fate. A key aspect of tragedies is both fate and free will leading to the downfall of a tragic hero. In William Shakespeare’sRead More Theme of Fate and Choice in Shakespeares Romeo and Juliet Essay782 Words   |  4 PagesThe Theme of Fate and Choice, in William Shakespeares Romeo and Juliet In William Shakespeares tragic play Romeo and Juliet, there are four quotes about fate and choice. The characters in the play choose their own fate, it happens because of their choices or actions. First, in the beginning of the play Romeo and Juliet are referred to as a pair of star-crossed lovers (Romeo and Juliet, Prologue). Second, Romeo explains to Mercutio how he has a dream that if he goes to the Montague party heRead MoreThe Tragedy of Romeo and Juliet by Shakespeare713 Words   |  3 PagesSome people may not consider that fate is something that truly occurs in the world. Others believe that each event is prearranged and set out before them like a roadmap to life; in other words, fate. The faith stems from a common belief from William Shakespeares time that the points of the stars determined someones fortune. Shakespeares play, Romeo and Juliet, depicts fate as an exceptionally vital force. Because of fate, the play becomes immensely thrilling and it is exactly what manages theRead MoreWilliam Shakespeare s Romeo And Juliet979 Words   |  4 Pagesthe play Romeo and Juliet by William Shakespeare, a literary canon, supplies its audience with knowledge and understanding. Shakespeare’s mix of romance, tragedy, and comedy makes Romeo and Juliet a definite worthy read. The play gives knowledge to audience members about family dynamics, and Shakespeare’s rendition of themes. Furthermore giving an understanding about the illusions Shakespeare’s canon planted and nurtured in the literary world and others perception. Romeo and Juliet, the firstRead MoreWilliam Shakespeare s Romeo And Juliet1264 Words   |  6 Pagesattention, with the majority of his works circling tragedies, one being Romeo and Juliet. William Shakespeare s Romeo and Juliet speaks to the timeless appeal of star-crossed lovers. Their love in the beginning borders upon a reality of maturity and immaturity, eventually becoming something of authenticity. Themes running throughout the play address the issues and consequences of immature blind passion, hatred, and prejudice. William Shakespeare was rumored to have been born on April 23 1564; howeverRead MoreShakespeares Romeo and Juliet Essay672 Words   |  3 Pagesplay, Romeo and Juliet, by William Shakespeare, Romeo and Juliet are portrayed as star-crossed lovers. In the opening scene, the chorus states that Romeo and Juliet are two young lovers from opposing families who were destined to fall in love and eventually die together. Juliet’s parents have the perfect life planned for Juliet. She has the perfect fiancà ©, she was going to have a great family, and live happily until the day she died. But then it was love at first sight for Romeo and Juliet. TheyRead MoreThe Role of Fate in Shakespeares Romeo and Juiliet807 Words   |  3 PagesFate. Who would have guessed that this four letter, one-syllable word would play such a big role in Shakespeares Romeo and Juliet? Many people believed that it was free choices that led to the tragic ending of Shakespeares Romeo and Juliet, but it was rea lly fate. When looking up fate using dictionary.com, it says that fate’s something that unavoidably befalls a person; fortune, but in Romeo and Juliet, fate is reality. Perhaps the biggest and most overlooked example of fate was in the Prologue

How To Find A Job Effectively Free Essays

Everyday someone is looking for a job. Whether that person is a recent graduate, a person laid-off from work, or a person that wants a different job, their diligent search turns into a carefully planned search for employment. It is important that a person knows how to search effectively for a job. We will write a custom essay sample on How To Find A Job Effectively or any similar topic only for you Order Now There are three effective ways to look for a job: use a variety of resources, do a resume, and go on interviews. One way a person can look for a job effectively is to use a variety or resources, such as the newspaper, the Internet, or the local Job-Service Agency. The newspaper can be used to help find a job by looking at the job listings in the classified ad sections. The job listings in a newspaper vary depending on what is listed. One can find the classified ads by using the newspaper s index, which is located in the front of the newspaper. Another resource that can be used is the Internet. The Internet contains many search engines that can be used to find a specific job. One can even apply for jobs over the Internet. A person can also use the local Job-Service Agency to find a job. A Job-Service Agency can help the unemployed person find a job in the area where he or she lives. The Job-Service Agency tries to match ones skills with the jobs that are available. Generally, when a person writes a resume, he or she should avoid using the words I and My; be meticulous; and be able to keep track of where one submits his or her resume. Since a resume is about ones work history, the words I and My should not be used. Writing the words I and My for every statement is repetitious and clutters the resume with unnecessary words. It is perfectly acceptable to write a resume with incomplete sentences. A person must also be meticulous and look for errors in the resume. A resume should never be submitted with typos and other blatant mistakes. When a person sends a resume with many mistakes, this implies that one does not pay attention to details or has poor communication skills. In addition, when submitting resumes, it is important to keep track of where they are sent. This is a good idea, so that one does not submit his or her resume more than once at the same place. Being organized is a crucial step in writing and submitting resumes. When going on an interview, attire, body language, and manners count. First impressions are very important. Ones overall appearance is the first thing that an interviewer notices. A person should dress neat and in a professional manner. In addition, one should be aware of his or her body language. Being alert and answering questions in a timely and polite way is important. The tone of voice, posture, and gesture gives clues about ones manners. A positive attitude along with good manners can have a lasting impression. Manners count. No one wants to work with someone who is rude and disrespectful. In summary, if a person uses a variety of resources, do a resume, and go on interviews this will help one effectively find a job. It is essential that a person know how to effectively find a job, so that one becomes successful in his or her search. When a person does know how to find a job effectively, it will be hard for them to find a job. This will often lead to a person not finding a job at all. Therefore, if one uses these three effective ways to search for a job carefully, he or she will have no problem finding a job. How to cite How To Find A Job Effectively, Essay examples

Belize Essay Example For Students

Belize Essay IINTRODUCTION Belize, independent state, northeastern Central America, bounded on the north and northwest by Mexico, on the east by the Caribbean Sea, and on the south and west by Guatemala. Belize, until 1973 known as British Honduras, became independent in 1981 and is a member of the Commonwealth of Nations. The total area of Belize is 22,965 sq km (8867 sq mi). IILAND AND RESOURCES The northern half of Belize consists of lowlands, large areas of which are swampy. The southern half is dominated by mountain ranges, notably the Maya Mountains, which rise to a maximum elevation of 1120 m (3675 ft) atop Victoria Peak. The Caribbean coastline is fringed by coral barrier reefs and numerous cays (islets). The principal streams are the Belize River; the R?o Azul, which forms much of the boundary with Mexico; and the Sarst?n River, which forms the southwestern boundary with Guatemala. The climate of Belize is subtropical, moderated by sea breezes along the coast. The average annual temperature is about 26? C (about 79? F). The total annual rainfall increases from north to south and averages about 1800 mm (about 71 in). A rainy season extends from May to February. Some 86 percent Belize is covered by forests. Deciduous trees are found in the north; tropical hardwood trees predominate in the south. Principal species include the commercially important mahogany, cedar, and rosewood, as well as pine, oak, and palms. Mangrove swamp vegetation is found along the coast. Wildlife includes jaguar, deer, tapir, and numerous species of birds and reptiles. IIIPOPULATION AND EDUCATION The majority of the population of Belize is of mixed racial descent. The largest group is of black or partly black ancestry. Other groups include Native Americans, principally Carib and Mayan, located in the north and west; people of European descent, mainly English and Spanish; and people of mixed Native American-European descent. The population of Belize is 224,663 (1997 estimate). The overall density of 10 persons per sq km (25 per sq mi) is the lowest in Central America. Population is concentrated in a few principal urban centers, of which Belize City (population, 1988 estimate, 49,671) is the largest; it is also the principal port. Belmopan (1988 estimate, 3694), a newly constructed city, supplanted Belize City as the official capital in 1972. English is the official language; other languages spoken include Carib, Mayan, Spanish, and a Creole dialect of English. More than half the people are Roman Catholic, and most of the remainder are Protestant. Education is compulsory for children between the ages of 5 and 14. In the 1994-1995 school year 51,377 pupils were enrolled in primary schools, and 10,147 students were enrolled in secondary schools. Higher education is available at colleges in Belize City and Corozal. The literacy rate of 91 percent is one of the highest in Latin America. IVGOVERNMENT Belize is governed under a constitution that became effective at independence in 1981. The British sovereign is head of state and is represented by a governor-general, who has little power. Executive power is mainly exercised by a cabinet of ministers, led by a prime minister. The bicameral National Assembly consists of a Senate of 8 appointed members and a House of Representatives of 28 members elected by universal suffrage to terms of up to five years. The prime minister must have the support of a majority of the members of the House. The leading political parties are the Peoples United Party (1950) and the United Democratic Party (1974). VECONOMY The main economic resource is Belizes arable land, although only 3 percent of the total land area is under cultivation. Agricultural exports include sugar, citrus fruits, and bananas. Rice, beans, and corn are grown as subsistence crops. Lumbering, formerly the chief economic activity, has declined in importance. Major manufactures are processed food, wood products, and clothing. A road network of 2248 km (1397 mi) links the major urban centers, but some areas remain inaccessible. An international airport serves Belize City. The unit of currency is the Belize dollar (2 Belize dollars equal U.S.$1; 1996 fixed rate). In 1995 exports earned $139 million, and imports cost $258 million. The governments budget included $133 million in revenue and $180 million in expenditure in 1995. .ud50d9f3812e23865ee80d18d2493364c , .ud50d9f3812e23865ee80d18d2493364c .postImageUrl , .ud50d9f3812e23865ee80d18d2493364c .centered-text-area { min-height: 80px; position: relative; } .ud50d9f3812e23865ee80d18d2493364c , .ud50d9f3812e23865ee80d18d2493364c:hover , .ud50d9f3812e23865ee80d18d2493364c:visited , .ud50d9f3812e23865ee80d18d2493364c:active { border:0!important; } .ud50d9f3812e23865ee80d18d2493364c .clearfix:after { content: ""; display: table; clear: both; } .ud50d9f3812e23865ee80d18d2493364c { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ud50d9f3812e23865ee80d18d2493364c:active , .ud50d9f3812e23865ee80d18d2493364c:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ud50d9f3812e23865ee80d18d2493364c .centered-text-area { width: 100%; position: relative ; } .ud50d9f3812e23865ee80d18d2493364c .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ud50d9f3812e23865ee80d18d2493364c .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ud50d9f3812e23865ee80d18d2493364c .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ud50d9f3812e23865ee80d18d2493364c:hover .ctaButton { background-color: #34495E!important; } .ud50d9f3812e23865ee80d18d2493364c .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ud50d9f3812e23865ee80d18d2493364c .ud50d9f3812e23865ee80d18d2493364c-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ud50d9f3812e23865ee80d18d2493364c:after { content: ""; display: block; clear: both; } READ: IT IS A CONTROVERSIAL SUBJECT ON NATURE OR NURTURE HAS A MORE PROFOUND EssayVIHISTORY In pre-Columbian times Belize was part of the territory of the Maya. It was included in the viceroyalty of New Spain in the 1500s, and sometime later English woodcutters from Jamaica established a settlement on the Belize River. During the wars between England and Spain in the 1700s, Spain failed to dislodge the British from the area. In 1836, after the emancipation of Central America from Spanish rule, the British claimed the right to administer the region; it was declared a British colony, subordinate to Jamaica, in 1862 and an independent crown colony in 1884. Long-range constitutional reforms were initiated by the British in 1954, resulting in a new constitution ten years later. Progress toward independence, however, was hampered by an old Guatemalan claim to sovereignty over the territory. When Belize finally attained full independence on September 21, 1981, Guatemala refused to recognize the new nation; about 1500 British troops remained to protect Belize from the Guatemalan threat. Prime Minister George Price of the United Party, who had led the country to independence, was replaced by Manuel Esquivel when Belize held its first national elections, on December 14, 1984. Price returned to power after the elections of September 1989. In May 1993 the United Kingdom announced that it would end its military involvement in Belize. All British troops would evacuate the country by October 1994. Esquivel regained the prime ministership in June 1993 elections. In July Esquivel announced the suspension of a pact reached with Guatemala during Price s prime ministership, claiming Price had made too many concessions in order to gain Guatemalan recognition. The pact would have resolved a 130-year-old border dispute between the two countries. Geography

Supply of Homes in Sydney and Melbourne †Myassignmentehlp.Com

Question: Discuss About the Supply of Homes in Sydney and Melbourne? Answer: Introduction The article titled Kochie takes aim at the government to fix housing affordability by David and Libby Koch on 21st March 2017 talks about the demand and supply of houses in two largest Australian cities, Sydney and Melbourne. Compared to other cities in the Australian, these two major cities are facing housing affordability crisis. The demand for dwellings in these towns is high than the supply a scenario that has led to the price hike. As a result, many individuals are unable to own a home in Sydney and Melbourne. Several factors cause a high demand for houses. For instance, high immigration levels in Sydney and Melbourne has increased the population and hence a strong demand for dwelling units. Moreover, investor activity, from both local and foreign buyers has increased the demand for houses. Statistics shows that the foreigners especially from China, United Kingdom, and India buy approximately 10% of the homes(David; Libby Koch; News Corp Australia Network 2017). David and Libby Koch criticizes some of the government actions of addressing housing affordability as unbalanced since they tend to increase demand and price pressure in real estate market. Instead, the management argue the government to focus on measures that will subdue the demand and at the same time increase in the supply of houses to solve the housing unaffordability in the main Australian cities. Article Analysis Demand for Houses Both Melbourne and Sydney are currently facing high demand for homes compared to other regions in Australia. Population increase is one the factors that can be used to explain this situation. There is high influx of persons both from oversea countries and within Australia to the major cities in search of opportunities a situation that put pressure on accommodation units. Reduction in the cost of borrowing for homes in Australia in the recent years made individuals to increase their demand for houses and hence shortages. Additionally, the investor demand facilitated by the availability of tax concessions has resulted in increased speculative demand among the investors in anticipation of capital gains(Rahman 2010, p. 579). The investors buy houses and retain them waiting for prices to rise to make more profits. Retrieved from Australian Bureau of Statistics On the chart above, it is clear that property prices are high in Melbourne and Sydney. In September- December quarter of 2016, the house prices in these cities rose by 5.3% and 5.2% respectively. The annual price increase in Melbourne and Sydney were also higher than other cities, that is, 10.8% and 10.3%(Australian Bureau of Statistics 2017). Quantity As noted earlier, several factors have contributed to the high demand for dwellings in Melbourne and Sydney. This scenario can be demonstrated by the use of demand and supply model. On graph one above, growth in demand for homes is shown by the shift of demand curve towards right from D1 to D2. The change leads to price hike, from Pe to P1 as well as the number of dwellings required from Qe to Q1. Supply of Homes Shortage of housing units in Australia is a clear indication that the supply is unable to put the rising demand in check. Several factors impede the provision of dwelling units in Australia. Foremost, inadequate provision of essential infrastructures such as roads, water, energy, and sewerage reduces the supply of well-located land to facilitate the delivery of additional homes(Gurran Phibbs 2013, p. 382). The bureaucracy involved in constructions of homes is another hindrance to supply of dwellings. The planning processes and approval of structures are very complex. This situation does not only raise the costs of developing houses but also discourages potential market entrants to the housing industry. Furthermore, zoning and other land use policies introduce compliance costs thus increasing the burden on the property developers who are often faced with financial constraints(Haslam McKenzie Rowley 2013, p. 374). Quantity The decline in the supply of homes in Melbourne and Sydney due to the factors Accounting above is depicted by the change in supply curve leftward from S1 to S2. As the supply shifts, the number of homes provided drops from Qe to Q1. The prices also increase from Pe to P1. Recommendations to the Government Rise in housing unaffordability in the main Australian cities is a sign of market failure. The substitute for owning a house is renting. However, the rents are also on the increase and thus subjecting the consumers to suffering. The low and mid-income families are most the disadvantaged by this market failure. Such individuals will eventually find it hard to leave in the cities they work and even end up residing in substandard shelters. Therefore, the intervention of the government will be essential in making the homes affordable to many in the society. Increasing the supply of homes should be the first step the government should consider since it has control over most of the supply-side factors. For example, the state needs to ensure fair and adequate supply of core infrastructure to facilitate the constructions of new homes. Equal provision of infrastructure and other social amenities will minimize the number of persons moving to Sydney and Melbourne. In the presence of better roads, water and sewerage facilities, the property developers will have an incentive to build more houses. Bureaucracies involved in building planning process should be eliminated to accelerate the constructions approvals. Moreover, tax concessions should be limited to restrict investor activities that increase demand pressure. Conclusion Australian major cities, Sydney and Melbourne, are facing housing affordability crisis. The increase in demand for houses and the incapability of the supply to respond to the rising demand has led to the higher price of dwellings. The demand for homes has been fueled by the low cost of borrowing, elevated levels of immigration and investor activity. On the other hand, the supply is hindered by the complicated planning process, stringent land utilization policies, and inadequate supply of core infrastructure. Since the government has control over the demand and supply side factors, its intervention will be essential in correcting this market failure. Sufficient provision of infrastructure, limiting tax concessions, relaxing land use policies and eliminating bureaucracies are some of the measures that can be used to restore housing affordability. References Australian Bureau of Statistics 2017, Residential Property Price Indexes: Eight Capital Cities, Dec 2016, viewed 11th May 2017, https://www.abs.gov.au/ausstats/abs@.nsf/0/510D8915596EEFE9CA257F1B001B0107?Opendocument. David; Libby Koch; News Corp Australia Network 2017, News.com.au, viewed 11th May 2017, https://www.news.com.au/finance/david-and-libby-koch/kochie-takes-aim-at-government-to-fix-housing-affordability/news-story/4e9793b1fdd8ed4ea02ebdaff4719a4d. Gurran, N Phibbs, P 2013, 'Housing supply and urban planning reform: the recent Australian experience, 20032012', International Journal of Housing Policy, vol 13, no. 4, pp. 381-407. Haslam McKenzie, FM Rowley, S 2013, 'Housing Market Failure in a Booming Economy', Housing Studies, pp. 373-388. Rahman, MM 2010, 'The Australian housing market - understanding the causes and effects of rising prices', Policy Studies, pp. 577-590.