Compare and contrast Essay Example | Topics and Well Written Essays - 1000 words - 2

Compare and contrast - Essay Example Most of these artists engaged in paintings of beautiful women a character that we see with works from Sharaku and Katagawa. However, landscapes had been given limited attention by most of thee artists hence the reason for Hokusai’s diversion. Most of the critics of Hokusai’s works defined his landscape paintings as the Western paintings since they differed from Japanese paintings in terms of imagination, composition, atmosphere and the natural observation. A good piece of art showing an assumption of Tsunami off the coast of Japan is an ancient art done by Katsushika Hokusai (Nagata and Bester 28). This piece of art was done between 1760-1849. However, many people argue that this piece of art is not a Tsunami but depicts other things. This geometrical piece of art employs the use of circles, lines, and triangles in an artistic manner, which creates a sense of space collapsing. From the picture, there is an indication that the boatmen are not fighting against the huge wa ve but rather using the flow of the wave for their movement. Most of the artist believes that this picture was created as a symbol of his death since this is just one of the pieces of arts Hokusai produced just before his death. The painting is a traditional Japanese piece of art especially by the Japanese writings that are embedded in it. We also find this feature in the other two paintings indicating that these are traditional ukiyo-e paintings. The piece of art also symbolizes Japanese tradition. Hokusai shows symbols of tradition in this piece of art. Mount Fiji is shown from a background and this time is not shown as a huge mountain but just a small one shifting the focus of everyone’s perception. The picture also indicates Japanese anglers in boats struggling with the sea wave. In addition to this, a sense of energy has been created in this picture. Three quarters of the film is the huge sea wave, which consumes the great mount Fiji. This shows that Hokusai wanted to ex press energy in his composition. The technique used in painting of this picture is from the printing of woodblocks a technique that was mostly used by Buddhists in the 17th century. Otanaji Oniji II is a 1794-95 piece of art, which was developed by Toshusai Sharaku. In this piece of art, Sharaku’s great composition depicts a sense of energy, which is displaying realism and beauty. We can compare the theme of energy in relation to Hokusai’s picture in which the sea consumes three quarters of the space. From Sharaku’s picture, we can see that the artist has employed the use of lines triangles, and circles the same way in which Hokusai developed in The Great wave off Kanagawa. However, Sharaku in this piece of art is more real and articulate (Narazaki 79). The face of the picture takes three quarters of the space emphasizing the key area he wanted to expose. When comparing the themes of these two pictures we notice that Sharaku’s picture illustrates a huge s ense of modernity. The person in the picture is beautiful and with lots of energy shown in the face while Hokusai’s picture indicates a deep sense of tradition from the boats and the physical background. In comparison, all these piece of arts were done in the 17th century a time when most of the artists used woodblocks as their main tool for production of their pieces of art. Sharaku also shows a sense of tradition in this portrait. The clothing of the person in the p

Analysis of an organization Assignment Example | Topics and Well Written Essays - 500 words

Analysis of an organization - Assignment Example The major sponsors of Trinity Health are the Catholic Church, under the auspices of the Catholic Health Ministries. This was an organization created for purposes of overseeing the management and administration of Trinity Health, and the healing ministry of the church. One of the tangible assets of the organization is the number of its employees, who are many and diverse. Trinity Health is an organization that employs more than 89,000 people, at different hospitals and health care center operated and managed by the company. This is beneficial to the company, mainly because the people employed are diverse, and they come with different skills, experiences, and culture which may be beneficial to the company (Hernandez, 2012). Furthermore, because of this diversity in its workforce, the company manages to get the right workers, who understand the language preferences, cultural beliefs, traditions, values and health practices of the various communities that the agency serves, and hence use this knowledge to develop policies and services that would help in catering for these needs (Zuckerman, 2009). Because of this diverse workforce, the organization will manage to be innovative, hence develop solutions that can satisfy the needs of the community that it serves (Zuckerman, 2009). For any organization to succeed, and obtain a strategic advantage, satisfaction of the needs of its customers is the key (Moseley, 2009). In the medical and health care field, there is a constant change in the needs of customers, and this is because of the emergence of new diseases, ailments, or medical conditions (Hernandez, 2012). Therefore, the best way of efficiently diagnosing and treating these diseases is through coming up with new medical practices and solutions. It is difficult to achieve this situation without being innovative. An important intangible asset is goodwill. Because of the large size of the organization, the company has

Deposit Mobilisation in Banks

Deposit Mobilisation in Banks Deposit mobilisation is one of the crucial functions of a conventional financialinstitutions or banks to satisfy one of the requirements of a banking business, i.e.sourcing of funds or borrowing money from customers.Continuous and adequate deposit mobilisation would ensure the bank shall be able tosustain its business of lending and investing, thus incurring profit for future growth.Nevertheless, different types of deposits have different and distinct characteristics andfeatures which in consequence impose different risks and costs to the banks. Therefore, inmany cases, deposit mobilisation strategy relies heavily to the banks asset and liabilitymanagement policy.In a relationship between bank and depositors, the rights and duties for both parties varyaccording to the nature of deposit mobilisation. The ability of the bank to fulfil their duties is an important measure of the banks acceptance by the public, or by far as acomparison yardstick with other banks. Deposit mobilisation of a bank and its importance a. Introduction Banks mobilise deposits as their primary source of funds. Having optimaldeposits level, banks shall be able to lend the funds to generate interest onlending. In addition to lending, the deposits fund can be placed in certaininvestments avenues which suits the banks or the deposits objectives.Deposit mobilisation is a continuous function for a bank to ensure the sumtotal of deposits at any time adequate to maintain the current level of lending and investments especially to compensate the withdrawals madeby depositors. Usually, the deposits level is kept slightly or certainpercentages above the lending and investments level to ensure the bank has adequate cash reserves to meet expected withdrawals and alsorecurring withdrawals. The cash reserves are called Liquidity Reserves.Deposits bring costs to the banks, either on the maintenance of thedeposits and its transactions or on the interest payout onto the depositsupon deposit maturity.b. How Bank Mobilises Deposits Bank receives deposits from individuals, organisations and businesses,initially by opening an account with the bank itself. Based on the types of deposits, minimum initial deposits are set together with the rules andregulations governing the accounts.Subsequent deposits can be made into the accounts, except for timedeposits where the amount is fixed until deposit maturity.Depositors maintain deposits with specific banks due to many factors, butin particular trust and confidence with the banks are the major factors.Once these are established, the banks continuously attract depositors anddeposits by providing convenience banking, quality services, excellentbrand association and higher interest payout.However, there are instances where depositors put their money into thebanks mainly for security purposes, i.e. the banks to protect their moneyfrom loss and theft and also warrant the deposits from investment loss. Assuch in Malaysia the government provides guarantee upon deposits placedwi th commercial banks. 59 http://htmlimg1.scribdassets.com/4mk9wp2tcwe8wo/images/59-b2561607ca.pnghttp://htmlimg1.scribdassets.com/4mk9wp2tcwe8wo/images/59-b2561607ca.png Banks are competing against each other to attract deposits and newdepositors. Normally interest payout rates, locations and services are themain attractions to the mass market. However, some banks are going intothe niche markets and thus providing specific attractions to the targetedmarket segment. One example is the pensioners group, where specificproducts are developed with special features which suit their lifestyles.Sometimes banks do promotions with door-gifts, lucky draw, establishsavings clubs, staff get customers programme and else to ensure thedepositors base and deposits keep growing and to instil loyalty to thedepositors.Some deposits products have also grown from a single purpose deposits tocombined purpose products to meet higher expectations from customers.For example, attachment of insurance scheme, combination with debitcard, etc.c. The importance of deposits Deposits are the primary source of funds for a bank, which facilitates theuses of funds (loans and investments). The higher the deposits amount, thebigger the lending and investments portfolio can be maintained by thebanks to sustain its expansion and future growth.The banks must have adequate deposits to meet the lending volumerequired by the public and at the same time maintain extra cash for withdrawals by depositors. The cash reserve is a component of liquidityreserves which measure the ability of the bank to meet its expectedwithdrawals and recurring withdrawals. The withdrawals made from thereserves are oddly-offset against new deposits which the banks shouldcontinuously mobilise. The inability to get sufficient deposits could resultin negative fund situation.The level of deposits growth also indicates the banks performance inrelation to customers satisfaction on interest payout and servicesrendered.d. Deposits as key liquidity indicator Deposits are made mainly in cash, the most liquid asset for banks. Oncewithdrawal requests are made by depositors, banks must immediatelyprovide cash for that particular purpose. As compared to other liquiditycomponents such as short term investments which take time to beconverted into cash, it is rather wise for a bank to simply get moredeposits beyond the withdrawal amount. 60 http://htmlimg4.scribdassets.com/4mk9wp2tcwe8wo/images/60-3465843250.png However, the percentage of the cash reserves must be kept at optimumlevel. Idle cash does not create profit, but in fact, brings additional costs interms of storage and insurance. Therefore, by maintaining cash reserves atoptimal level enables bank to generate maximum profits from lending andinvestment activities.The costs for cash reserves are mainly on the storage and insurance. Thestorage of cash reserves involves the requirement for adequate vaultrooms, cash in-transit security and cash handling at branches. Theinsurance costs are to cover the amount of cash available anytime atbranches or in-transit from loss, fire and theft. It generally covers themaximum cash amount allowed at branches or in-transit

Queen Elizabeth the First Essay -- essays research papers

Queen Elizabeth 1 The reign of Queen Elizabeth I is often referred to as "The Golden Age" of English history. Elizabeth was an immensely popular Queen, and her popularity has waned little with the passing of four hundred years. She is still one of the best-loved monarchs, and one of the most admired rulers of all time. She became a legend in her own lifetime, famed for her remarkable abilities and achievements. Yet, about Elizabeth the woman, we know very little. She is an enigma, and was an enigma to her own people. Elizabeth was the daughter of King Henry VIII and his second wife, Anne Boleyn. She was born on 7 September 1533 at Greenwich Palace. Her birth was possibly the greatest disappointment of her father's life. He had wanted a son and heir to succeed him as he already had a daughter, Mary, by his first wife, Katherine of Aragon. He had not divorced Katherine, and changed the religion of the country in the process, to have only another daughter. Elizabeth's early life was consequently troubled. Her mother failed to provide the King with a son and was executed on false charges of incest and adultery on 19 May 1536. Her marriage to the King was declared null and void, and Elizabeth, like her half-sister, Mary, was declared illegitimate and deprived of her place in the line of succession. The next eight years of her life saw a quick succession of stepmothers. There was Jane Seymour who died giving birth to the King's longed for son, Edward; Anne of Cleves who was divorced; Catherine Howard w ho was beheaded; and finally Catherine Parr. For generations, historians have debated whether the constant bride changing of her father was responsible for Elizabeth's apparent refusal to marry. It is certainly possible that the tragic fates of Anne Boleyn and Catherine Howard impressed upon her a certain fear of marriage, but there may have been other reasons for the Queen's single state, such as a fear of childbirth, which claimed the lives of a significant number of women in this period. Even if the Queen had no personal reservations about marriage, there were political problems with almost every contender for her hand. Religion was a major divisive issue, and there was also the problem of whether Elizabeth would have to relinquish any of her royal powers to a husband in an age when the political sphere was exclusively male. As a child, Elizabeth wa... ... claim the English throne for himself and not for her. In the summer of 1588 he sent his mighty fleet against England. But by superior tactics, ship design, and sheer good fortune, the English defeated them. Elizabeth's popularity reached its zenith. It was also another personal triumph as she had proved that she, a woman, could lead in war as well as any man. Elizabeth was dedicated to her country in a way few monarchs had been or have been since. Elizabeth had the mind of a political genius and nurtured her country through careful leadership and by choosing capable men to assist her, such as Sir William Cecil and Sir Francis Walsingham. Elizabeth was a determined woman, but she was not obstinate. She listened to the advice of those around her, and would change a policy if it were unpopular. In appearance she was extravagant, in behavior sometimes flippant and frivolous, but her approach to politics was serious, conservative, and cautious. When she ascended the throne in 1558, England was an impoverished country torn apart by religious squabbles. When she died at Richmond Palace on the 24th March 1603, England was one of the most powerful and prosperous countries in the world.

AD scholarship essay

I had this mindset that I would never be able to survive off of my medicine, and I came to see them as a necessity to function properly in this world. I succeeded in community college by getting into the Honors Program, and was able to graduate as an Honors Scholar. It wasn't until I got into a university that my academic abilities and character as a pre-allied health major was tested. I made the ingenious decision to handle my ADD without any pharmaceutical help, whatsoever.Exercise and dietary choices are my main method f treatment, along with sheer willpower and self-discipline. Not only was I able to lose about twenty-five pounds of fat, I got physically, and mentally stronger as well. I developed a better mindset, which lead to a stronger body. I started to learn a lot about myself, and how the brain actually works on its own. I learned that Is It Indeed possible to channel my â€Å"hyper-focusing† abilities when I need to, and It Is especially easy to hyper-focus when I want to! As a Sinology major, my classes are science- heavy.I learned that when I'm In a class that I am passionate about, the ability to focus seems to get easier. I started reading a lot of books about ADD living, and I started to make my life more ADD friendly, which meant simplifying my life. Working with my ADD, rather than against It, seems to work out better In my favor. I started studying in ways that would make my ADD symptoms seem to go away. I utilized color, mnemonics, and videos to understand concepts that most students would understand through a lecture.Honestly, I wish It were easier living with ADD, and I sis I didn't have the difficulties that come with It, specifically the Inability to naturally filter out extrasensory Information. However, the gifts that come from a hyper-creative brain often outweigh the more annoying aspects of living with the disorder. People with ADD aren't stupid; we Just process things differently. In many careers, that can be a massive asse t! Eventually, I want to go to graduate school to pursue a career as a Physical Therapist. I figure that this would be a good career that utilizes the creative and hyperactive ADD brain.I decided I would never succeed In a monotonous desk Job, and as a physical therapist, my workplace would be a gym– which Is something that I would absolutely love! ADD scholarship essay By Shelby-Piper about myself, and how the brain actually works on its own. I learned that is it indeed possible to channel my â€Å"hyper-focusing† abilities when I need to, and it is especially heavy. I learned that when I'm in a class that I am passionate about, the ability to with my ADD, rather than against it, seems to work out better in my favor.I started understand through a lecture. Honestly, I wish it were easier living with ADD, and I wish I didn't have the difficulties that come with it, specifically the inability to naturally filter out extrasensory information. However, the gifts that come from a pursue a career as a Physical Therapist. I figure that this would be a good career that utilizes the creative and hyperactive ADD brain. I decided I would never succeed in a monotonous desk Job, and as a physical therapist, my workplace would be a gym— which is something that I would absolutely love!

Import Substitution vs. Export Promotion

Import Substitution vs. Export Promotion Econ 240 Term Paper Group (19) Members: Amjad Hussain (13020031) Awais Javed (13020529) Fahd Mukaddam (13020407) Haider Shah (13020528) Hassan Jamil (13020023) Muhammad Bilal Ayub (13020413) Words (using page 2): 371*7 = 2597 IS vs. EP 2 How do the strategies of international trade affect growth? Why at times countries adopted different strategies of international trade? How does Import Substitution Industrialization weigh against Export Promotion as a trade strategy?How does the empirical evidence help us understand this? Trade strategies are classified into two broad strategies, outward-looking development policies and inward-looking development policies. Outward-looking development policies encourage free trade and free movement of the factors of production. While inward-oriented development policies encourage greater self-reliance and restricted trade. Within these two broad approaches lies the debate between Import Substitution (protectio nism) and Export Promotion (free trade).Import substitution (IS) is a well tested way to industrialization which has been followed by most of the currently developed and industrialized countries. Alexander Hamilton’s â€Å"Report on Manufactures† (1791) argued in favor of tariffs to protect American manufacturers from inexpensive imports from Britain. In the mid 19th century, Germany, Russia and Japan also practiced protectionism to develop their domestic industries. After the great depression of 1930’s, LDCs particularly Latin American and some Asian economies started practicing ISI and in 1960’s IS became a dominant strategy for development.However in the next decade, when industries protected through import substitution failed to achieve targeted productive and allocative efficiencies, countries switched to export promotion strategies. Hong Kong, South Korea, Taiwan and Singapore were among the first to adopt the export promotion strategy. Later, Chile , Thailand and Turkey also joined in. Over the years, the stance of countries has shifted from protectionism to free trade and globalization. So we will begin our paper by analyzing the arguments in favor and against ISI policies.Then we will discuss the benefits and drawbacks faced by the countries that switched to the export promotion strategy. The paper also explains the reasons for this transition. Finally, it concludes by giving empirical evidence of the real world regarding the effects of these strategies. It has always been in the vested interest of the economies to protect country’s large and strategic markets from foreign competition so that the local industry not only becomes self sufficient but also is in a position to induce industrialization led economic growth.In order to accomplish such goals, trends have shown (as mentioned above) countries’ increased dependence on Import IS vs. EP 3 substitution policies. Government plays a vital role in the implementa tion of these policies by imposing tariffs and quotas or altering the exchange rate and interest rate, using macroeconomic policies, to shield its local industries from the competitive foreign producers. Simultaneously, the foreign direct investments (FDIs) are expected to fill the gaps in technology and technical skills between the domestic and foreign industry.The introduction of IS policy can be attributed to the Infant Industry Argument (Import Substitution In General Equilibrium can be used to demonstrate that how the IS works in infant industry) 1, which favors the protection of domestic industry from international competition. The aim is to remove distortions between the out-dated locally produced goods and the industrialized high quality imports of similar products. Policies which governments adopt includes introduction of tariffs 2; discouraging cheaper import and at the same time encouraging production of the same goods domestically.Mostly consumer goods are produced under this strategy which ensures that the country is capable of meeting its basic necessities. Moreover, these types of goods require considerably less advanced technology, making the policy easier to adopt. Aristotle has said â€Å"What we have to learn to do, we learn by doing†; import protection is the best way to initiate this learning process because the economy is now producing goods that it previously imported – a process of development and learning by doing sets up. The economy can then move towards higher efficiency.This eventually improves the balance of payments as fewer consumer goods are now imported. It is essential that the learning process is followed by accumulation of capital. This requires the manipulation in Interest rates so as to encourage savings, and these savings can then be invested back in the protected industry. There are some macroeconomic gains associated with this policy, including reduced unemployment and increased tax revenue for the govern ment; increased local production is expected to generate job opportunities and at the same time, tariff on imports become a source of income for the government. See Appendix 1. 4. 1 & 1. 4. 2 See Appendix 1. 2 2 IS vs. EP 4 However, the IS policies have been criticized by economists for various reasons. According to them, the protection provided to the industries makes the industries inefficient because the firms start to rely on the provision of subsidies. They have no incentive to cut down costs to achieve minimum efficient scale of production and to increase productivity. Bhagwati in â€Å"Import substitution – a survey of policy issues† said that, â€Å"†¦such sheltered monopoly positions in import substituting industries are the prime cause of low productivity†.Also, the government protection to infant industries is for a limited time period, in which most industries that lurk behind the wall of tariffs never grow up. In import substitution, main focus is on the consumer goods, and therefore the prospects of economic growth are relatively short-lived. For countries to achieve long term economic growth, structural shifts are required towards the production of capital-intensive goods.However according to Jaleel Ahmad, the protection requires normally zero or low tariff on import of capital goods, hence discouraging development of forward linkages – manufacturing of the capital goods by local industries. Also for Import Substitution to be successful, according to Hirschman, forward and backward linkages need to be well-developed for the industries. This shows that for a country to have a manufacturing sector free from international dependence, it will need to develop other industries in consumer durables, non-durables, intermediate and capital goods.Another argument against ISI strategies is that it leads to the worsening of Balance Of Payments (BOP) due to the overvaluation of exchange rate, causing the prices of exports to rise but at the same time lowering the prices of imports. As a consequence, producers of exportable goods become less competitive in world market, causing a negative impact on the BOP. Keeping in mind the undesirable impacts of IS policies, economists felt the need to revise the trade strategies.Trade theorists therefore attempted to elucidate as to why nations engage in international trade, what combination of goods and services they trade, and how firms and consumers gain or lose from trade. It was observed that numerous international trade models rely primarily on the theory of Comparative Advantage (Appendix 1. 1), which describes trade patterns under assumptions of static conditions that hold the factors of production in fixed supply (Perkins). Theory of comparative advantage principally asserts that every country irrespective of its size can benefit from trade. Trade driven through exports of goods in which the country has aIS vs. EP 5 comparative advantage, benefits the count ry the most. Therefore an export promotion trade strategy involving goods that require raw material, that are abundant in supply, will allow a country to grow more rapidly as stated by the Hecksher-Ohlin model. Proponents of EP mainly argue that free trade utilizes previously unused resources such as land and labor, creates a vent for surplus of unused resources and allows a country to operate on its Production Possibility Frontier (PPF). In contrast, before the opening up of the economy, the market is constrained to the domestic consumers only.Once a country engages in free trade it acquires the opportunity to earn a global market share, thus earning higher revenues. As the market of local industries expands, demand for labor increases which raises the employment level in the country. This increase in exports stimulates domestic investment (an injection in the circular flow of the income of the country) which gives a multiplied effect on the Gross Domestic Product (GDP) of the econ omy. Furthermore, the enhanced exports will lead to a greater demand of domestic currency in the exchange market leading to currency’s appreciation (given the floating exchange rate mechanism).According to the Marshall Lerner condition, which states that the sum of price IS vs. EP 6 elasticity of demand of exports and imports is lesser than 1 in short run, a currency appreciation will lead to an increase in the Balance Of Trade (BOT). 3 This relationship of BOT and time is shown through J-curve. An additional argument presented by the trade optimists states that the foreign exchange earned by selling different goods and services will relax the constraints of availability of financial capital or in other words, will fill the foreign exchange gap.This also helps in relieving the pressure on foreign exchange reserves built by the import of heavy machinery and capital goods. A further extension of export promotion policy is the process of export development. It involves innovatio n (of new export products) and penetration into new markets. Learning process is instituted and hence increased productivity is observed. This initiates a process of transfer of technology and foreign investment from developed countries, helping the industry to become efficient and gain the economies of scale through mass production – lowering costs and increasing profits.The increased profits of the industry promote higher savings and as the Harrod-Domar Model suggests, an increase in savings will lead to an increase in the growth rate of the economy. The Export promotion strategy is not free of criticisms as one might expect. The leading criticism of opponents of export promotion strategy is the sluggish growth in the demand of the primary goods. As developing country relies mainly on the export of primary goods, the sluggish growth enhances the volatility in the earnings of the economy. The Prebisch Singer Hypothesis explains this phenomenon in terms of income elasticity a nd price elasticity of demand.The thesis postulates that the price elasticity and income elasticity of primary goods are both inelastic i. e. less than 1. As the national income of the developed countries increases, the demand for the primary goods does not increase proportionately. This is also stated by Engel’s Law. A decrease in the prices of the exports will not lead the quantity traded to increase by the same percentage, thus resulting in fall of the exports revenue. This fall in exports revenue leads to a deterioration of Terms of Trade (TOT) of the country.Other factors that explain the slow growth in primary goods exports include the development of synthetic substitutes and protectionist measures taken 3 See Appendix 1. 3 IS vs. EP 7 by the developed countries. The population growth of developed countries being at replacement level translates into a stagnant demand for primary exports. Empirical evidence shows that heavy reliance on the export of the primary product m ay actually result in a phenomenon known as the Dutch disease; a country rich in natural resources actually suffers from slower growth as a result of that rich endowment.This is one of the often repeated facts of history when criticizing the strategy of export promotion. It was mentioned earlier that an appreciation in a country’s currency will lead to an increase in BOT, but this will only remain true for the short run. In long-run the sum of elasticity of demands of exports and imports becomes greater than 1 which consequently causes a fall in the net exports. Therefore the aforementioned argument is valid in the short-run only as in long-run it balances out its own effect on BOT 4 as shown below with the aid of diagram.In addition to the criticism mentioned earlier, Export Promotion strategy may lead to higher budget deficit. It is a usual practice of the governments to subsidize the exporting industries. These subsidies will be financed either by an increase in taxes or b y reducing the expenditure on public and merit goods such as health, education, infrastructure, national defense and other social services. Due to this practice, the development side of the country is often sidelined or overlooked.Example of China can be the best evidence for our claims about Export Promotion here. China was a closed economy until the 1970s. Nicholas R. Lardy in his article, Trade liberalization and 4 See Appendix 1. 3 IS vs. EP 8 its role in Chinese economic growth, states that around 1970s, China’s export goods had no comparative advantage and at the same time, high level of control on imports was also imposed. Hence quoting from the article, â€Å"China’s share of world trade dropped markedly, from 1. 5 percent in 1953 to only 0. 6 percent in 1977†.However, during the 1980s the process of trade liberalization began and by the time china entered WTO in 2001, her structure of trade policy was completely changed. China fully realized the signifi cance of the comparative advantage principle and concentrated on export of goods that were labor intensive in production, as the article states that â€Å"China’s fastest growing exports have been labor-intensive manufacturers— textiles, apparel, footwear, and toys. Between 1980 and 1998, export of these items rose more than ten-folds, from $4. 3 billion to $53. 5 billion†.Due to the trade liberalization, China experienced high rates of economic growth. Empirical evidence strongly suggests that pragmatism and eclecticism rules over any other single purpose approaches to trade. Thinking just in terms of an all out import substitution or an export promotion strategy can pose as an impediment to one’s clear understanding of the relationship between these strategies and growth. In future it would be better to avoid labels and to construct strategies from the components of either of these trade policies that seemed to have worked.Import substitution with its d ivorce of production decisions from market conditions seems to have lost its modern day relevance. In contrast, export promotion with its orientation towards world markets appears to be in line with the new phenomenon that is globalization. No single optimal prescription in terms of trade policy can be devised for the countries at large due to the dynamism of international trade. No strategy can be concluded as the best strategy for a country but what can be said is its relevance to a country at a point in time.Although empirical evidence shows that export promotion has helped countries like China to grow rapidly and improve its trade positions but we can also find other countries which developed after adopting import substitution policies like Latin American countries. This suggests that country have to adopt a trade strategy which is most compatible for their country at that time so that they can achieve maximum gains from trade. IS vs. EP 9 Appendix 1. 1 Comparative Advantage The ory: The concept of comparative advantage, attributed to David Ricardo, refers to the ability of a country to produce at a lower opportunity cost.It is the ability to produce the most efficient product as compared to other countries. It is best explained by a two-good, two country framework where countries differ in particular factor productivity or factor endowments. This theory explains that it is welfare enhancing for both countries to specialize in one good and import the other. The conclusion drawn from this theory is that each country gain by specializing in the good where it has comparative advantage and trading that good for other. 1. 2 Trade protectionism and Tariffs:Government impose trade restrictions in form of tariff in which it collects tax on goods imported by the people, thus discouraging the people to import goods and encouraging the local industries to produce good quality substitute goods. Introduction of tariff increases the world price, which reduces the amount of imports and increases the amount of locally consumed products. IS vs. EP 10 1. 3 Inverted J-curve for revaluation of currency: The inverted J-curve refers to the trend of a country’s trade balance following a revaluation or appreciation of the currency.A revalued currency means that exports are more expensive for the foreign countries, but as in the short run demand for the more expensive exports remain price inelastic so the quantity demanded for exports remains same although foreigners are paying higher prices. This leads to the improvement of balance of trade. Over the long term, as the foreign consumers are able to switch to the other goods, the quantity demanded for exports becomes price elastic so reduction in the export volume and hence export revenues.This leads to the deterioration of balance of trade and the gains in the short run are off-set by the losses in the long run. In case of devaluation of currency, there are opposite affects. IS vs. EP 11 1. 4 Infant In dustry Argument(ISI in general equilibrium) : IS vs. EP 12 From diagram 1. 4. 1 it can be seen that before the imposition of tariff the country was producing at point A while consuming C amount of goods under world terms of trade (favorable to its export).But after the imposition of tariff, production moves towards point B where more of the importable and less of exportable goods are being produced. Assuming that this does not affect the world prices, trade will take place at same TOT. So the new consumption is indicated by point E along the line BD (parallel to line representing world TOT). Initially, by practicing ISI polices, both consumers and trade welfare has fallen due to lower consumption and fewer imports and exports (BE