Economic Value Added (EVA) Essays

Economic Value Added (EVA) Essays Economic Value Added (EVA) Paper Economic Value Added (EVA) Paper Name: Tutor: Course: Date: Economic Value Added (EVA) EVA is the most successful performance metric used by their corporations as per a commercial perspective. Despite its popularity attributed to successful marketing by Stern Stewart Co, by financial theory has proven it. It is also consistent with various valuation principles, which is important to investors’ analyses. Today it is one of the most sought after financial tools. It is simple to understand why. Administrators have increased the value of their companies by simply following the rules of EVA. Similarly, equity investors who have used EVA and have identified which companies are using them have gained wealth. Therefore, the decision by leading corporations such as ATT to switch to EVA as a measure of performance is justified. From the article, EVA is simply a metric used to determine a corporation’s profitability relative to its capital cost. Capital cost refers to money used in the purchase of products necessary for the operation’s success. In short, EVA refers to after-tax-profits minus the sum of annual capital costs. As it turns out, most companies are not fully aware of their capital costs and thus they end up covering their costs and adding value to a firm. Despite EVA’s popularity today, it is not the newest idea in corporate finance. The oldest idea in business is earning more revenues than the cost of capital. In 1988, John Snow, CEO of CSX Corp, introduced EVA to his company. CSX deals with freighting goods using its enormous fleet of containers and railcars. On that particular year, the metric pointed at negative $70 million in its Intermodal business. The CEO, therefore, ordered the division to get the EVA up to breakeven point by 1993 or face sale. Since then, Intermodal’s freight volumes have been up while the capital costs have declined. Other major corporations have also embraced the metric with profound success. Briggs Stratton, for instance, has achieved profitability by enforcing EVA on its five divisions. The principle has also enabled Coca-Cola to achieve improved cash flow in its operations (Tully Hadjian 38). Job order costing is a method of allocating costs of manufacturing to individual products. When the manufacturing processes are different from each other, job-order costing is applied. Because of the significant differences in the manufacture of products, the job order costing system will develop a job cost record for every commodity. That record will show the materials used, labor utilized as well as manufacturing overheads spent in each activity. This way, the cost of capital can be determined as per EVA methodology. An instance of a company that utilized this was Briggs Stratton. Before its implementation of EVA, Briggs Stratton lacked a profit centre in the consumer engine business. The company also lacked knowledge of each division’s EVA thus; it suffered high capital costs without knowledge. With implementation, each division knows its EVA regardless of the product made; whether a lawn mower or pump. That knowledge has enabled the company to save a lot of money by outsourcing production of some expensive components. For instance, the company has phased out production of the largest engines for pumps and generators to Mitsubishi. Thus, capital that was previously tied to expensive processes has now been freed up for more profitable ventures by reduction of variable costs. Cost Volume Profit analysis (CVP analysis) is a powerful tool. This is because it enables managers to understand the relationships between cost, volume and profit in their enterprise. CVP takes place by focusing on various interactions. For instance; prices of products and per unit variable cost. Other interactions are; the level of activity, total fixed costs and the mix of sold products. Use of CVP analysis is essential in making of various decisions by managers such as what products to manufacture, pricing to apply and which strategies to implement in marketing. CVP concepts play a critical role in EVA. CVP concepts such as change in variable, fixed and sales costs enable managers to determine costs of capital. Since the application of EVA by CSX Corp, its Intermodal division has been able to track such costs efficiently. The number of containers and trailers used has dropped from 18,000 to 14,000. However, its freight volume has since increased by 25%. Initially, they used to delay at terminals. With EVA, managers at CSX were able to identify them as idle capital. They, therefore, developed means to take the containers to the rails in five days. CSX has also been able to reduce its fleet of locomotives from 150 to 100, representing a $70 million decrease in capital costs. By ensuring higher load capacities in its routes, train use reduced. Segment reporting is the provision of separate accounts of a public corporation’s different divisions. Its purpose is to provide shareholders proper knowledge of the company’s performance in each segment it carries out business. Managers use it to determine profitability and incomes for each division. This is very useful in EVA metrics. Initially, ATT Corporation only provided balance sheets for its six largest divisions. Most of the smaller business segments such as the toll-free number services were lumped together as a group. Therefore, managers were oblivious of which segment benefited ATT and which made losses. On adoption of EVA, however, matters have taken a turn. Robert Allen, CEO of ATT encouraged managers to sub-divide their profit centers into several semi-independent entities. As a result, the balance sheet contains all capital costs. Smaller divisions are now required to beat capital costs and contribute to the company’s earnings. Activity based costing (ABC) is useful in implementation of EVA. It enables managers to assign overhead costs in manufacture based on machine hours and returns on investment. The Coca-Cola Company has implemented EVA very successfully by carrying out activity based costing. The company consists of several divisions. However, its most profitable is the soft-drinks business. Under the leadership of Robert Goizueta, the company has focused manufacturing on soft drinks and is slowly moving away from instant tea and other businesses. This is because soft drinks earn 24.9% on capital while the other segments average around 7% returns on investment. With this, the company has averaged a 27% increase in EVA over 5 years EVA has also influenced capital budgeting decisions. Divisional spending is now under control. Useful investments are now been made. An instance of such impact is the Quaker corporation, which manufactures breakfast cereals and other snacks. Previously, the company operated slowly, only to accelerate beyond capacity as the end of a quarter approached. This filled 15 warehouses with finished goods. This practice is to aid the managers trying to load retailers with goods, therefore, improving quarterly results (and their bonuses). Such practices increased costs of operation in several ways. First, more warehouses had to be occupied, and laborers had to work overtime. However, EVA has brought such practices to light. Warehouses reduced to ten and inventories to $6 million. From the above, it is clear that EVA is an important tool in performance and wealth metrics in corporations. For instance, it has enabled identification of non-performing divisions. Therefore, improving profitability of various corporations has improved. In that way, it has also improved transparency in operations of public companies via segment reporting. EVA has influenced decision making in corporations. Investment centers now use differential analysis in the evaluation of business opportunities in order to come up with a solution holding the least capital cost. Tully, Shawn Hadjian, Ani. ‘The Real Key to Creating Wealth.’ Fortune. 20th September 1993: Page 38. Print.

Aphrodite - Goddess of Love and Beauty

Aphrodite - Goddess of Love and Beauty The Greek goddess Aphrodite may have been an import from the Near East where Sumerian and Babylonian goddesses played a part in love, fertility, and war. For the Greeks, Aphrodite was goddess of love and beauty. Although Aphrodite bore children to the messenger and war gods, is considered married to the blacksmith god, and was otherwise engaged in activities suitable to the immortals, she also played an active role in the lives of man. She could be helpful or hurtful with gifts of love and lust, depending. Who Is Aphrodite?: Aphrodite Profile gives you the basics of Aphrodite goddess of love and beauty, including her family and major myths associated with her. Aphrodite Meddles: Aphrodite Meddles in Mortal Affairs identifies the metamorphoses, deaths and marriages caused by Aphrodites interference in mortal affairs. Cupid and Psyche Here is my re-telling of the love story of Cupid and Psyche, the charming romantic story in which the goddess Venus (Aphrodite) plays a villainous role to try to keep her son from the mortal women he loves.   Also see the Bulfinch version of Cupid and Psyche. Bulfinch retells Venus Profile: To the Romans, Aphrodite was Venus, but there were other aspects of the Roman goddess of love. Read about the fertility aspect and rituals associated with Venus. Venus Basics Venus is the Roman goddess of spring whose worship overlapped the Greek goddess Aphrodite. Read the basics on Venus. The Modest Venus There was more to Venus than love and beauty. She was also one of the goddesses in charge of modesty. Love Goddesses: In Love Goddesses, read about the top ancient love goddesses. Beauty (or attraction), promiscuity, fecundity, magic, and an association with death are some of the attributes associated with love goddesses. Surprisingly, warfare was also an attribute of some love goddesses. Adonis: Read the love story of Adonis and Aphrodite, which ends with the death of Adonis, as told in The Metamorphoses of Ovid. Homeric Hymn to Aphrodite: The generally short hymns (called Homeric Hymns, although they were not written by the epic poet Homer) to the ancient gods and goddesses reveal much of what the ancient Greeks thought about them. Read an English translation of one of them, Homeric Hymn to Aphrodite V that reveals which gods were impervious to her charms. Online Resources on Aphrodite Goddess: AphroditeCarlos Parada lists the many mates of Aphrodite and her interventions in human affairs, as well as three versions of her birth, and her offspring. AphroditeAphrodites birth, parents, spouse, and an image.

Directed Research Paper Example | Topics and Well Written Essays - 5000 words

Directed - Research Paper Example president has the authority and powers to remove marshals prior to the expiration of their terms, their appointment must be confirmed first by the Senate. Since the early years of America’s independence, the marshals have been the federal court’s chief law officers (Miller, 2008). They direct the activities of about 4,000 personnel and officers stationed at over the 350 locations across the United States and the country’s territories. It should be noted that even after the establishment of over 50 specialized federal law enforcement agencies during the twentieth century, the US Marshall Services retained the broadest authority and jurisdiction (Green, 1999). Since the earliest period of America’s independence, they have served as the civil authority instruments for all the three organs of the government. They have been involved in most of the major historical events in the history of the United States (Dautrich, 2010). The United States Marshall Services is mandated to carry out a number of responsibilities within their jurisdictions (Collins, 1998). The primary responsibility of the service is to provide protection and support for the federal courts that include security for over 700 judicial facilities and over 2,000 magistrates and federal judges, in addition to the trial participants like attorneys and jurors. Recent years have witnessed increased responsibility because of the dramatic rise of threats against the judiciary members. The Marshall Services also involves operations such as the Federal Witness Security Program whose mandate is to ensure that the safety of endangered government witnesses is guaranteed (U.S. Marshals Service, 2013). They maintain transport and custody of thousands of federal prisoners every year, apprehend majority of federal fugitives, and execute arrest and court orders warrant. In addition, they manage, seize, and sell property that has been forfeited to the gover nment by criminals such as drug traffickers and help the

Invisible racial discrimination in the UK hotel industry Essay

Invisible racial discrimination in the UK hotel industry - Essay Example Among many other calamities, this has resulted in increasingly strict immigration conditions. Although some initiatives have been taken to upgrade the relations with the minorities, the racial discrimination inherent in the social mindset and practices persists. â€Å"The U.K. has one of the highest levels of racially-motivated violence and harassment in Western Europe, and the  problem is getting worse.† (Human Rights, 1997 cited in Shah, 2010). This paper discusses the experience of ethnic minority workers in the hotel and catering industry. Research provides evidence of racism faced by the ethnic minority in Britain in various walks of life in general and the hotel and catering industry in particular. The hotel and restaurant industry is known for its harsh working environment, specifically for the employees who are from ethnic minorities or migrant community, in terms of oral contracts, minimal training, long working hours, late-night working, unpaid overtime, unpaid official leave, delayed salary payments, discriminated recruitment, biased promotions, job insecurity, bullying, insult and abuse. Racism, as practiced in the British society, can take both visible and invisible forms. â€Å"Indirect discrimination is where there is a requirement, condition, provision, criterion or practice which has an adverse impact on  one group disproportionately.   However, such discrimination is not unlawful if it can be justified by the employer.† (PJH Law, 2009). Indirect discrimination can be regarded as invisible racism. It occurs as a result of regulations or practices which have a detrimental effect on people from a certain race. One example of invisible racism is the condition by a hotel HR department to hire only those employees residing within a one-mile radius with the hotel in the center, knowing that the majority of ethnic minority resides outside the defined limits, indirectly avoiding applications from the ethnic

Rabbit Analysis :: essays research papers

In the poem, â€Å"Rabbit,† the topic is rabbits which represent children and how they can be prey for one group and play for another. In addition to the rabbits representing children, I think that the child in the poem represents a parental figure and the dogs represent people in the outside world.   Ã‚  Ã‚  Ã‚  Ã‚  This is supported in the theme which states that children should not be in such a rush to grow up because the outside world can be a cruel place. For example, â€Å"the dogs don’t hate [them], merely want to / taste the cider of [their] blood, watch [their] / fur drift lazily toward October clouds / where geese infuriate them† (11-14). This is a supporting text because it shows that children won’t always be treated fairly and if they are in such a rush to grow up, they could face many problems early in life because they can feel as though they do not belong anywhere. Also, this quotation is descriptive and works well in that it allowed me to paint a picture of how other people could perceive children as helpless and a form of easy bait. To them, children are not just other humans; they are a source of adventure and game. Furthermore, it says â€Å"better that you hop directly back / demand your cage†¦Ã¢â‚¬  (7-8), which maintains that i f the children are not protected and sheltered by their parents, their fate could become as bad as what is described above; they could live a life in which the end of the negative path seems endless. It is saying that the one place a child can feel safe is in or at his/her house where he/she has â€Å"†¦ cedar chips, the water bottle full / and dripping next to wilted greens†¦Ã¢â‚¬  (8-9). It may not be the first place a child would want to go back to when he/she is in trouble but the option will always there. This house is the child’s safe haven and protection from the outside world; a place to feel safe, protected, and nourished. For example, the â€Å"†¦children bring you apples. / They’ll rub your fur and bring / another and another† (19-21). This text shows that no matter what happens the parents will be there to show care and love for their children without asking any questions. I like how the author worded the three quotes from above.

Sports and Development: An Economic Perspective Essay

ntroduction The relationship between sports and development can be analyzed from different angles – some of these have received quite a bit of attention in the literature, others less. An important share of the literature focuses on football (soccer), baseball, and basketball because these sports are played most widely and because of the large economic interests. It is important to first define â€Å"development†. Sports obviously affects a person’s physical development, and also his or her social and psychological development,1 all contributing to the wider â€Å"development† of society, a reason why the United Nations organized the International Year of Sport and Physical Education in 2005, and incorporates sports into its programs and policies (UN sport for development and peace, 2006). Another definition of sports development refers to the creation of a sports infrastructure and a sports competition in developing countries. The basic principle behind this perspective is the universal right of all people to play and sport. This paper takes a specific view by focusing on the relationship between sports and economic development, in particular income growth and poverty alleviation. We focus mainly on the causal effect from sports to development.2 In Europe and North America, sports are increasingly important to the economy. About 2 million people are employed in the sports economy in the 15 member countries of the European Union – that is, 1.3 per cent of overall EU employment. And the sports economy is growing. In Europe, in the early 1970s, the ratio of overall sport expenditures (for goods and services) to GDP was around 0.5 per cent. In 1990, the ratio ranged between 1 and 1.5 per cent of GDP in most European countries (Andreff and Szymanski, 2006). In the UK, the contribution of the sports economy to GDP is currently  estimated at more than 2%. As a comparison: this is three times as high as the current contribution of agriculture to GDP in the UK. Sports teams have become large commercial – and often multinational – enterprises. For example, the value of Manchester United is estimated at 1.4 billion dollars, which equals approximately the total annual output (GDP) of a country like Sierra Leone. The richest US baseball team, the New York Yankees, is valued at more than 1 billion dollars; and the average US football team is worth more than 0.5 billion dollars. However, comparable and representative data on the economic value of sports are not available, especially for developing countries. In this paper we focus therefore on two specific issues which seem particularly relevant for the impact of football on economic development in the context of the South African World Cup. The first is the impact of sports/infrastructure investments on development; the second is about migration of sports players and development. The Impact of Infrastructure Investments Bids placed by candidate cities or countries to host a mega-sports event, such as the World Cup, have tremendously increased over time. This increase in bids is caused by the law of supply and demand. The supply of mega-sports events remains constant while the number of candidate organizing countries and cities increases. One reason for this is that emerging and developing countries are increasingly competing with rich countries for hosting such events. An important argument that candidate governments put forward for hosting a mega-sports event is the perceived economic benefits that the event creates (Porter, 1999). They typically claim that events, such as the World Cup, give a stimulus to business resulting in economic benefits which are larger than the costs, including public funding, from organizing the event (Noll and Zimbalist, 1997). Governments or sports entrepreneurs often hire consulting agencies to draft an economic impact report (Johnson and Sack, 1996). Irrespective of the mega-sports event, such reports from consulting companies always claim a huge positive economic impact. However, there is a lot of critique in the academic literature on the validity of these economic impact studies. Matheson (2002; 2006) points out that many (event-sponsored) studies exaggerate the economic impact on local  communities and Porter (1999) states that the predicted benefits of public spending never materialize. One problem with many of these impact studies by consultants is that they use input-output analyses, which have been heavily criticized in the academic literature. Such input-output analyses start from the assumption of no capacity constraints, implying infinitely elastic supply curves. As a consequence, there is no crowding out and an increase in demand will always result in positive indirect effects only. As pointed out by Matheson (2006), exactly this omitted crowding out effect (next to the substitution effect and leakages) is a primary reason why ex ante studies overestimate the economic impact of mega-events. Moreover, the multipliers used by these input-output analyses are doubtful and inaccurate because they are based on the normal production patterns in an economic area. However, the economy may behave very differently when hosting a mega-event, rendering the ‘normal’ multipliers invalid (Matheson, 2006). Another problem is that these studies are always prospective (Coates and Humphreys 2003). Prospective studies need to be compared with retrospective econometric studies to see, in hindsight, whether they were correct. However, retrospective studies are often not executed because governments or bidding organizations have no incentives to order such a study (PriceWaterhouseCoopers, 2004). If conducted, most ex-post studies state that the evidence that mega-sports events generate economic benefits is weak, at best. Thus, these few ex post analyses generally confirm that ex-ante studies exaggerate the benefit of mega-sports events.6 Siegfried and Zimbalist (2000) review several econometric studies and all these studies find no statistically significant evidence that building sports facilities stimulates economic development. Baade and Dye (1990) find evidence that the presence of a new or renovated stadium has an uncertain impact on the level of personal income and even possibly a negative impact on local development relative to the region. Another frequently made comment is that, even if hosting a mega-event creates benefits for the organizing region, the question should be posed whether financing su ch an event is the most efficient use of public money. Kesenne (1999) argues that for example the World Cup should only receive public funding if there are no alternative projects that yield higher benefits. However, as Kesenne (1999) admits, it is impossible to assess all alternatives, although it remains important to  calculate opportunity costs. A study which is highly relevant for the present paper is that of Brenke and Wagner (2006) who analyze the economic effects of the World Cup 2006 in Germany. The authors find that expectations that the World Cup would significantly increase spending on employment and growth were overestimated. Additional employment was generated only temporarily. The infrastructure and promotion costs in hosting the World Cup boosted overall economic performance by approximately 0.05% (estimates vary between 0.02 percent and 0.07 percent). The main beneficiaries of the World Cup were FIFA (187 million Euros) and the German Football Association DFB (21 million Euros). Economic Impact Assessments of the World Cup 2010 in South Africa In July 2003, Grant Thornton Kessel Feinstein issued the results of their economic impact assessment, ordered by the South African company that submitted the bid to host the football World Cup to FIFA in September 2003. In their report (Grant Thornton, 2003) they predict that the event will lead to direct expenditure of R12.7 billion; an increase of R21.3 billion (1.2%) in the gross domestic product (GDP) of South Africa; 159,000 new employment opportunities (3.5% of South Africa’s unemployed active population); and R7.2 billion additional tax revenue for the South African government. More recently, Grant Thornton estimated that the event will contribute at least R51.1 billion (2.7%) to the country’s GDP because more tickets will be available for sale (Gadebe, 2007). These results have been widely disseminated through the media. In the light of the foregoing literature review, there is reason to be sceptical about these predictions. A closer look into the numbers and the methods provides serious reasons to believe that these results are overestimations. First, Grant Thornton (2003) includes domestic residents’ expenditures at the event as direct benefits. However, this is merely a reallocation of expenditure and does not add to the GDP of a country (see e.g. Baade, 2006; Johnson and Sack, 1996). Second, according to Bohlmann (2006), the use of multipliers in the report is questionable and overly optimistic. Third, the report estimated that R1.8 billion would have to be spent on upgrades to stadia, and R500 million on infrastructure upgrades. However, a site published for the International Marketing Council of South Africa (2008) reports much higher investment costs: R8.4 billion for building and renovating ten World Cup stadiums (five have to be renovated and five have to be built). For example, the Durban stadium and the Cape Town stadium that have to be built cost respectively R2.6 billion and R2.85 billion. The cost of upgrades on the infrastructure, for example, upgrades of airports and improvements of the country’s road and rail network, is estimated now at R9 billion. Fourth, there are problems with the interpretation of the announced 159,000 new employment opportunities. The Local Organising Committee (LOC) plans to recruit volunteers, ordinary people as well as specialists, to work at the World Cup. These volunteers are not paid, which sheds a different light on the interpretation of â€Å"employment opportunities†. Moreover, many of the jobs will only be temporarily. Because of the troublesome economic situation in Zimbabwe, and because of the announcements of the numerous job vacancies, there is a huge migration flow of skilled and semi-skilled construction workers from Zimbabwe to South Africa (Sapa – AFP, 2007). These migrants may take up a considerable share of this employment. Do Impacts Differ with the Level of Development of the Host Country ? The most obvious point of reference when assessing the likely impact of the South Africa World Cup is to compare it with the most recent World Cup in Germany. However, important differences in the level of income and development between Germany and South Africa complicate such comparison. Thus we cannot merely transpose the economic impact of the World Cup in Germany to South-Africa (Matheson and Baade 2004). An important difference relates to the costs of infrastructure investments.7 First, investment requirements in South Africa are larger. While South Africa has to build several new stadiums, Germany had (most of) them already, and investments were limited to upgrading. Possible even more importantly, the general infrastructure, for example related to transport, requires much more investment in South Africa. Second, regarding the costs, one should look at differences in cost of capital and cost of labor. The aforementioned (opportunity) costs of capital are typically higher in developing countries. Money spent on the event is money not spent in other areas, such as the  health system. However, wages are comparatively low in developing countries which can lower the operating and infrastructure costs. Labor opportunity costs may also be low in developing countries with large unemployment. The post-World Cup use (return) of the investments differs as well. Concerning the stadia, these are well used in Germany with a large attendance in the Bundesliga. It is more uncertain what the demand for the football stadia will be in South Africa after the World Cup. In general, one would expect that the demand for these facilities is lower in developing countries, as sport is a luxury good, albeit that South Africa is a very specific country. There appears strong (and high income) demand for other sports (rugby) while less (and low income) demand for football. The extent of use of the stadia for these different demands will certainly affect the benefits. Low use and high maintenance costs may even lead to a negative ‘legacy’ of the World Cup. Evidence from the post-World Cup 2002 effects in South Korea and Japan indicates that concerns about the low use and high maintenance costs of the stadiums were justified (Watts, 2002). Regarding general infrastructure investments, one would assume that the potential effects would be large in South Africa. Its infrastructural deficiencies are often cited as a constraint on growth, and improving this because of the World Cup requirements could provide a major reduction in costs and provide a productivity boost to the economy. Sports Migration Possibly more than in any other economic activity, migration is important in sports. The share of migrants in the main sports leagues in Europe and North America is large by average economic sector standards, in particular for the top leagues. There are cases where teams in first divisions in Europe have played with 100% migrants, hence without a single native player. The pattern of migration varies considerably across sports. For example, in (ice) hockey, the main migration pattern is from Eastern Europe to the US and Canada; in baseball from Central America to the US and Canada; in basketball, some European and Latin American players play in the US NBA; at the same time, many US players who cannot make it in the NBA play in European leagues; and in football (soccer) the main migration is from the rest of the world to Europe, and among countries within Europe. Migration of  African football players to Europe has grown exponentially over the past decades. Studies on the impact of these migration patterns can be classified into different groups. Most of the literature on migration of athletes or sports players emphasizes and focuses on what are claimed to be negative implications. One negative implication could be referred to as the â€Å"muscle drain† (analogous to the literature on the â€Å"brain drain†): it refers to the negative effects on education and the competitiveness of the local sports system. Related negative effects are argued to be low wages for developing country players, the illegal nature of the migration and transfers, and the lack of transparency surrounding it (e.g. Andreff, 2004; Magee and Sugden, 2002), inducing some to refer to this as a â€Å"modern form of slavery†. While there appears to be considerable ad hoc evidence on these effects (including on illegal activities and lack of transparency in international transfers),8 there is in general little representative evidence on these issues. In contrast, an extensive literature on the development and poverty impacts of general migration, which is generally based on much better data and evidence, suggests very different effects of migration. First, international remittances have in general a positive impact on development (Adams, 2006). Remittances reduce the level, depth and severity of poverty in the developing world, because a large proportion of these income transfers go to poor households, although not necessarily the very poorest (Adams and Page, 2003, 2005). Remittances also have a positive impact on investment in education and in entrepreneurial activities and can help raise the level of human capital in a country as a whole (Edwards and Ureta, 2003; Yang, 2005; McCormick and Wahba, 2001; Page, Cuecuecha and Adams, 2008). While very little is known about the impact of remittances from sports remuneration, there is no ex ante reason to believe that these effects would be very different. Second, migration affects the level of human capital (in a broad interpretation) in the origin country in both positive and negative ways, what is sometimes referred to as the â€Å"brain drain† and the â€Å"brain gain† (Ozden and Schiff, 2005). Recent studies (not focusing on migration in sports) come to the conclusion that, although international migration involves the movement of the educated, international migration does not tend  to take a very high proportion of the best educated, aside from a few labor-exporting countries. Hence the brain drain is generally limited (Adams, 2003). In fact, migration of the educated from a developing country may increase the incentive to acquire education, resulting in a brain gain. In other words, the dynamic investment effects reverse the static, depletion effects of migration on schooling (Boucher et al, 2005). Hence, in summary, taking into account dynamic incentive effects, the net impact seems to be a â€Å"brain gainâ₠¬ . These findings seem to conflict with arguments that the ‘muscle drain’ in sports undermines the sporting capacity of developing countries. It is said to divert the most talented sportsmen, leaving the developing countries with the costs of their education without the possibility of regaining this investment in human (or athletic) capital. This muscle drain is also argued to erode the capacity of the home country to use its most talented athletes in international competition, explaining the â€Å"poor performances of developing countries in world sport events† (Andreff, 2004). However, the empirical evidence to support these arguments does not appear to stand up to a rigorous analysis, such as taking into account selection bias. Moreover, the analyses ignore any dynamic effects which seem to occur in developing country sports sectors where investments in local training facilities have grown with the increased success of developing country players in rich country sports leagues, although there is no systematic evidence on this. Moreover, developing countries seem to have done better, not worse, since the start of substantial migration from their players to rich country competitions. For example, African teams have performed increasingly well in the past three decades in the World Cup. Third, the creation of sports schools with the explicit objective to prepare local players for playing in rich country sports leagues is the subject of much debate. While some of these schools are quite successful, the models are criticized for an unequal distribution of the gains (with the, often European, owners argued to capture a disproportionate share of the financial benefits), and for leading to a decline in education enrolment, and for creating social problems (Darby, Akindes and Kirwin, 2007). Fourth, the search for African players by European football clubs is argued to be an example of wage dumping (Poli, 2006). These arguments are very similar to the issues in the general migration literature with migrants taking over jobs at lower wages in the host country – an issue well studied in other sectors of the economy. Interestingly, one of the world’s leading experts, George Borjas of Harvard University claims that there is no clear evidence either way; and that despite massive immigration from poorer countries in recent decades studies show very little impact on wages in the US (Aydemir and Borjas, 2007). Finally, while across the globe remittances are a very important source of capital, and particularly so in some developing countries, it is unclear whether remittances of migrated sports players are sufficiently bulky to have a significant impact on the development of a country or a region. On the one hand, the number of players migrating is very small compared to total employment. However, sports migration has grown rapidly and incomes are generally much higher in Europe or the US than at home, where incomes are considerably lower. However, there is no substantive evidence here; one can only speculate or draw on ad hoc cases. Impact of the World Cup Given these potential effects of migration, how is the World Cup likely to affect these? Several changes may occur, some with opposing effects. If the World Cup gives a long-term boost to football in South Africa, either by creating facilities in areas of the countries or for parts of the population where football is popular, or by drawing in new parts of the population (and their incomes) into football, this may increase the demand for players from other African countries; and thus in-migration of players. Another possible effect is that the World Cup may inspire young South Africans to become international players or may induce much needed investments in youth football and training facilities in South Africa. This could lead to a surge in football academies in South Africa. This is what was observed in Senegal after the exceptional performance of the national team in the 2002 World Cup. This could then result in an increase in out-migration of football  players from South Africa to the rest of the world. Concluding comments: Money is not everything. This paper has reviewed several potential economic effects of the World Cup. The arguments discussed so far seem to suggest that the economic impact of the World Cup in South Africa is likely to be less than argued by the consulting reports, but that there may be substantive benefits from improvements in the general infrastructure that result from the World Cup organization. However, money, of course, is not everything. There is a growing economic literature on the connection between happiness (or subjective well-being) and income. Within a society, studies find that, on average, persons with a higher income are happier than poor people (see e.g. Frey and Stutzer, 2002; Graham and Pettinatio, 2002) but that after a certain threshold level of income, higher income does not seem to make people happier. Several reports also point out that benefits are not always tangible or cannot be expressed in financial terms, such as the increased confidence and pride of the population of the host country. Szymanski (2002) argues that organizing the World Cup will not boost economic growth although the government expenditures do improve the overall well being of its citizens because of these intangible effects. The study of Brenke and Wagner (2006) on the economic effects of the World Cup 2006 in Germany comes to a similar conclusion, i.e. that the economic effects were minor but that there was a positive effect on society for other reasons. The World Cup showed a positive image of the country and, as they say: â€Å"it was great fun, nothing more, nothing less.† One could even hypothesize on the economic implications of this. There is evidence from the psychology literature that happier people perform better in general and also earn more income. Graham et al. (2004) find that factors such as self-esteem and optimism that affect happiness also have positive effects on people’s performance in the labor market. This effect of happiness could be particularly relevant for the World Cup in South Africa, because the study of Graham et al (2004) also shows that these factors matter more for the poor. In this view, the extent to which the World Cup stimulates a positive attitude among poor people in South African society  matters especially. Hence, ensuring poor local people access to the games is important. In this light the initiative of the FIFA and the local organizers to make tickets more easily and cheaper available for local residents is a step in the right direction. References Adams, R.H.J. & J. Page (2003). â€Å"International Migration, Remittances and Poverty in Developing Countries† World Bank Policy Research Working Paper 3179. Adams, R.H.J. & J. 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Essay on William Faulkners A Rose for Emily - 1539 Words

William Faulkners A Rose for Emily As any reader can see, A Rose for Emily is one of the most authentic short stories by Faulkner. His use of characterization, narration, foreshadowing, and symbolism are four key factors to why Faulkners work is idealistic to all readers. The works of William Faulkner have had positive effects on readers throughout his career. Local legends and gossip trigger the main focus of his stories. Considering that Faulkner grew up in Mississippi, he was very familiar with the ways of the South. This award winning author has been praised by many critics for his ability and unique style of writing. One of Faulkners most popular works, which also was his first short story nationally published in†¦show more content†¦Another prime example of Faulkners effective writing is his use of narration. Of course, in most stories the narrator is a key asset. In :A Rose for Emily Faulkner uses the narrator not only as a story teller, but as an observer from the crowd as well. The narrators point of view, which is third person, had a positive effect on the way a reader views the story. Through out the story the narrator uses we instead of I revealing to us the way the townspeople judge Emily (Madden 1988). The narrator thinks b ack in time throughout the story remembering particular events that occurred in the past. This is important to the reader in that it helps aid the understanding of how the townspeople viewed Emily. The narrator as one of the townspeople viewed Miss Emily as impervious, tranquil, and perverse. If the story had been narrated by anyone else, it may not have been as easy for the reader to completely understand. With this spectator as the narrator, describing the events of the story through his eyes, one can detect a general impression of Emily (Madden 1987). The view of the narrator is beneficial in understanding the things that Emily goes through. Also toward the end of the story the narrator gives the reader a feeling if sorrow and pity for Emily. It is apparent Faulkners use of narration is critical to the enhancement and clarification of the A Rose for Emily. After analyzing theShow MoreRelatedWilliam Faulkners A Rose for Emily1600 Words   |  7 Pages William Faulkners A R ose for Emily  is set in the small southern town of Jefferson during the early decades of the twentieth century . At this time, vast and cardinal changes were being made by the upcoming new south to conceal and move from the horrid truths that were a part of the towns history. In lieu of this, Jefferson was at a turning point in which they were having difficulty coming to terms with these changes . 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In â€Å"A Rose for Emily†, William Faulkner explores an unorthodox relationship between an aristocratic southern lady named Miss Emily Grierson, and a blue-collar northern fellow named Homer Barron. The narrator, who likely represents the townspeople, describesRead MoreWilliam Faulkners A Rose for Emily Essay1382 Words   |  6 Pages Emily’s Downward Spiral: An Analysis of â€Å"A Rose for Emily† In William Faulkner’s short story â€Å"A Rose for Emily,† the main character of the story is Miss Emily Grierson. To analyze and examine her character, it is almost impossible not to look at the psychological aspect of it. Through the narrative of Faulkner’s â€Å"A Rose for Emily,† Miss Emily’s behavior and character is revealed as outright strange from any average standard of characters. 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The story begins at Emily’s funeral, and all the villagers in the town come to see the inside of the abandoned building (nobody has entered the house for at least ten years). The story flashes back decades before the funeral, Emily’sRead MoreDiagnosing Miss Emily in William Faulkners A Rose For Emily 918 Words   |  4 PagesIn William Faulkners A Rose For Emily there is more than enough evidence to determine that Miss Emily is mentally ill. Most of the clues and hints are subtle, but when they are all pieced together the puzzle becomes clear. Not saying it is clear as too what Miss Emily was suffering from, the only way to know that for certain would be if the author or narrator told us in the text. We can conclude, however, she was suffering from some form of mental illness. 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