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Theoretical Framework
Theoretical Framework
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Theoretical Framework
Gun control in the United States is a debate that has existed for many years. There are people who feel that rules should be enacted to control the use of guns and limit the access of guns in the country. There are other people who have a contrary opinion on the same. Some of the concepts that are common while researching on gun control include; Suicide, homicide and mass shooting. Suicide occurs when people use their guns to take away their lives. On the other hand, homicide occurs when one kills another person using their guns because of disagreements. Mass shooting is a situation where one gets into a public or a private spaces and starts shooting people indiscriminately.
There are various theories that are linked to the issue of gun control. One of the theory that many scholars have tried to prove through their research is that most suicides in the United States are not related to the ownership of guns instead; most of these deaths are related to other underlying factors like the poor economic performance and other social factors. Another theory that has been advanced by scholars is that the rates of homicide in the country has no or little relationship with the ownership of guns. However, many researchers agree that mass shooting in the country is contributed largely by people who own guns and are not fit to be gun holders. This is because of underlying issues like mental illnesses. As a result of these theories that have been advanced by researchers, it is critical that a research is done to establish if they are indeed true and give suggestions on what should be done to ensure that the rate of deaths associated with the misuse of guns in the country is reduced significantly.
Globalization and Economy (negative effects)
Globalization and Economy (negative effects)
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Globalization has been defined in various ways by different scholars. In economic terms, globalization refers to progression of incorporating different isolated national markets of capital, labor and commodities into a single world market which different investors across the globe can exchange ideas (Garret, 2000). It is vital for quick flow of information. It also refers to the integration of diverse countries and economies where the impact of global pressures has a major impact on the international business operations. With respect to political dimension, political globalization can be defined as the integration or synchronization of the world political standards, labor standards, for the purpose of breaking the boundaries with the main object of making governance easier and promoting mutual international relations. Bodies like the United Nations play a defining role in this. Therefore, globalization is multidimensional and can be viewed on various aspects (Mike, 2001).
A global paradigm shift has been evident since the end of Cold War towards the close of 80s. With the introduction of globalization, international business is becoming increasingly popular, environmental advocacy more voiced, cultural aspects being shared more and legal issues being synchronized through the international law. Hence, these aspects are inseparably intertwined. The globalization age came with integration of nations, economies or markets and technologies (Emeriti, 2003). More countries have achieved free market economy and the setup stressed on global culture with power of individuals overriding the power of nations. Over the past, the merits of globalization have been overstressed. However, we should not be slow to note that globalization has numerous disadvantages to various countries and economies (Casson, 1999). Globalization has had a lot of negative impacts on the international economic operations, political relations, cultural aspects and environmental issues. The paper’s intention is to explain how globalization has negatively affected various economies (Garret, 2000).
Many economists have argued that globalization has positive impact to economy and especially to international business investors (Cleo, 2001). The major positive impact of globalization is that it has led to liberalization of international trade. Expansion of international trade has also been enhanced and cross border financial flow has been made possible. The fact that there is enhanced flow of ideas across border has led to intense competition in the international markets however (Mike, 2001). Most of the products from third world countries have not been able to make it to international market due to stiff competition. Some companies as a consequence have been forced to close down. The combined efforts of different countries in the national markets have resulted in good relations among then eliminating the others. These in turn has lead to unfair trade among various countries (Casson, 1999).
Globalization has a lot of impact on the economic performance in countries which are participating in the international business (Benjamin, & Virginia, (2003). Living standards of the people is affected directly due to changes that occur in economic performance in the region. Some of the impacts of globalization include increased competition, new technologies, intensive innovation which accompanies changes in technology and specialization in efficient industries (Edgar, & Dauvergne, 2005). Some Australian industries have been closed down as a consequence. It has also brought about more economic growth which had stagnated especially in most undeveloped countries gets to a point of economic transition. Lastly, there has been a rise of global elite resulting from widening of income gaps due to inability of other countries to attract globalization drivers. Some countries have become poorer (Garrett, & Geoffrey, 2007).
The major problem faced by many firms as they globalize is the difficulty in maintaining the original corporate culture. Maintenance of the cultural identity in the global markets is quite difficult. Firms which are globalizing through joint ventures and partnership led firms are forced to adopt the culture of the native and cultures of the diverse people where their clients operate (Casson, 1999). At times maintaining becomes very difficult and they drop. In the same manner, political views are as diverse as the cultural views are. Aligning the political views to reach a balance may not be easy and that is partially why the UN and international bodies like ICCJ face great challenges in the discretion of their sanctioned functions (Cleo, 2001). International firms are also faced with the problem of uncertainty on the extensibility of their business strategies and management networks. They are also faced with the problem of inability to solve problems that concerns project in the new areas (Garrett, & Geoffrey, 2007).
Political risks that are associated with global political change are multifaceted. International investors ought to be careful when dealing with long term assets in the global markets due to the risk of expropriation of these assets whenever there is a change in government. The impact is also felt when the existing government make a lot of changes toward foreign investment (Peterson, 2001). Currency has been a challenge to international business. Currency conversion is so hectic if global markets do not adopt one currency conversion method. The idea behind the inability to convert local currency into hard currency has posed a lot of challenges to international business. All these are in the hands of the government at any given time (Benjamin, & Virginia, (2003). The stance toward hard currency transfer in a nation might influence the proper business operations. Political changes that follows transition of government leads to shortfall in the national currency exchange. New government might introduce laws that lead to changes in currency transfer hence infringing the normal business transaction in the national markets (Edgar, & Dauvergne, 2005).
International politics affect international business through sanctions that some other states might impose on other countries. It is in relation with this that most developed countries impose sanctions on the third countries in the international markets. Political violence that accompanies national elections affects international business operations. This depends on the site of business operations. If in case sites where international business operations are affected by internal conflicts of the country, then there are chances that the facilities are damage leading to interruption of normal business operations (Garrett, & Geoffrey, 2007). This is sometime abrupt that no measures have been put in place to offset such crisis. These are very dangerous to international companies as it can lead to stoppage of business operations if substantial resources are damage during the time of violence. The place where the national markets are located should be a country of political stability to foster efficient and effective business operations. The diversity in the political structures that are presented by different countries also affects international business operations (Mike, 2001).
Globalization has made international traders to be ever cautious on their business operations. Terrorism has also increased due to globalization. International politics (brought by globalization) has a lot of limitations that has a far reaching influence on their operations. Doing business with international countries can lead to downfall of the operations due delays by most governments to settle bills in time (Emeriti, 2003). When a government is a buyer, there are a lot of inefficiencies associated with it. United Nations influence international business operations of a country i.e., it can impose an embargo on countries. This limits their ability to import goods hence markets for the global market goods are reduced. If for example a trader had exported goods to a government, but he later realized that embargo has been impose on that government, it has no option other than to cancel the export license of that trader (Peterson, 2001).
References
Benjamin, B. & Virginia, C. (2003): Globalization in Reshaping the Global Economy, New York: Schuster.
Casson, M. (1999): International Business and Global Integration, New York: Simon & Schuster.
Cleo, P. (2001). Financial Globalization: New York: Cambridge University Press.
Edgar, E. & Dauvergne, P. (Ed) (2005): Globalization and Environmental Protection on the High Seas; International Handbook of Environmental Politics: John Wiley and Sons
Emeriti, L. (2003): Regionalization and Globalization, Australian Journal of World Business
Fennimore, M. (2005): International Politics and International Society, Basingstoke: Macmillan publishers.
Garret, G. (2000): Global Economy and International Politics, Ithaca, N.Y.: Cornell University Press.
Garrett F. & Geoffrey, S. (2007). Partisan Politics in the Global Economy, New York: Cambridge University Press.
Mike, F. (2001). Global Culture: Globalization and Regionalization, New York: Cambridge University Press.
Peterson, G. (2001). The Global Shift and Internationalization, Ithaca, New York: Cornell University Press.
Globaleye Insurance Brokerage
Islamic Financial Institutions
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Globaleye Insurance Brokerage
This is an international wealth management and financial management company providing financial solutions to both private and corporate clients; and founded in 1999. The company’s expertise in the area of international financial expertise has enabled it become the first choice for more than 10, 000 clients throughout the world. The company has its head office in Dubai but it also has some other office locations in Abu Dhabi, Shanghai, Kuala Lumpur, Singapore, Hong Kong, Bangkok, Geneva, and Moscow. The company has trained and qualified wealth managers who can deliver according to international standards thereby ensuring that its clients located throughout the world can be offered the best service and advice at all levels (Yudistira, 2004). Globaleye Insurance Brokerage Company has terms and associations with some of the greatest and reputable global financial institutions thereby requiring them to develop procedures and diligence that of very high standards. Its connections with the large and best financial brands around the world also enable the company provide its clients with a range of products across the market. Some f the company’s business partners across the world include Royal Skandia, AVIVA, Zurich, and Friends Provident (Iqbal & Molyneux, 2005).
The company believes that its customers deserve the best existing choice and therefore ensures that all its clients’ needs are satisfied. This has been the company’s secret to success. The company majorly offers advice and services in areas such as Insurance, Financial Planning, Inheritance and Tax Planning, Investments, Pension transfers, corporate protection, Education Fee Planning, Wealth Management, Offshore Banking, International Mortgages, Employee Benefits, and Retirement Planning. The company provides a variety of in-house services, which enables its clients to stay at the top of their finances and also keep track of any development in the financial system (Yudistira, 2004). It offers financial calculators that enables its clients to kick-start their savings and updated systems that ensures that the solutions to its clients’ financial problems are just one step away. As a way of giving back to the society, the company has in the past few years focused on raising money for purposes of charity. It has encouraged all its employees to participate in fundraising activities aimed at supporting local and national charities. The company believes that this not only uplifts the entire community but also strengthens its relationship with its potential clients and also its offices across the world. In recognition of the company’s distinct business model and innovative client based approach, the company has managed to win several awards across the world (Iqbal & Molyneux, 2005).
The company’s wealth managers have developed financial strategies as the life cycle of the company changes thereby maintaining an ongoing relationship with its clients. The company also has unique online services particularly the Globaleye Bulletin Service (GBS), which has in the past proved invaluable to the subscribers since it keeps them informed of any development that may in any way affect them. In addition, the company’s Globaleye Portfolio Service (GPS) also works in such a way that it gives report on a monthly basis concerning the progress of the client’s financial plans (Iqbal & Molyneux, 2005). The report is sent to their clients by delivering the messages to their inbox. Such services, together with the current global market commentaries, and a variety of financial products, have enabled the company keep its clients informed on economic developments that would most likely interrupt their financial planning (Yudistira, 2004).
EMIRATES INSURANCE COMPANY
This is one of the pioneering insurance companies across the world, having been formed in 1982. In United Arab Emirates, Emirates Insurance Company is one of the best established and longest serving insurance companies and it is listed in the securities market in Abu Dhabi. Emirates Insurance Company has issued and authorized shared capital of approximately AED 135 million, with its assets going beyond a value of AED 1.5 billion (Iqbal & Molyneux, 2005). The government is holding approximately 12% of the total shares of the company. Emirates insurance company has its main office in Abu Dhabi, Jebel Ali Free Zone, Al Ain, and Dubai, with its satellite offices in Musaffah, Guwaifat, SILA, and several offices at the traffic departments. The company offers employment to 250 individuals in its 25 0ffices in Emirates. In order to be a leading international force in the industry of insurance, the company aspires to combine professional skills and resources with a strategic focus on its customers in order to deliver a profitable growth. According to Miller & Noulas, (1996), the company also has a mission to expand its national operations to internationally accepted standards.
The company provides several classes of insurance services, which include fire insurance, motor insurance, contractor’s All Risks insurance, Third Party Liability insurance, medical insurance, marine hull insurance, aviation insurance, cargo insurance, fidelity guarantee insurance, life insurance, money insurance, and so on (Isik & Hassan, 2003). The company has very strong management system since it is driven by very experienced leaders. The company’s chief executive officer is called Jason Light who has over 25 years experience in insurance sector. The chief executive officer had previously worked as a CEO in Hemayah insurance company in Saudi Arabia before joining Emirates insurance company. The company also has a chief finance officer called Art Lehmkuhl, who is a qualified chartered Accountant. He also holds a degree in Accounting from a South African university. As a Chief Financial Officer, the person is charged with the responsibility of ensuring financial soundness of the company, managing the department of information technology within the company, maintaining the company’s investment strategy, and maintaining the company’s administration and secretarial (Isik & Hassan, 2003).
The company avails its products in the market by using different distribution channels: The company has a developed marketing and sales structure that enables it provide adequate customer satisfaction and consisting of three distribution channels: 1) Broker channel; which include broker organizations producing big proportions of premium income. Some of the brokers include MEPA Gulf, prime insurance brokers, HSBC, MARSH, and Aon, 2) Direct channel; which include forming direct relationships with corporate individuals and clients. According to Miller & Noulas, (1996), the company has adopted the use of direct relationships because the clients prefer to directly deal with insurance companies, 3) Inward / Indirect channel, which is majorly formed to handle inward business operations within the company. The company is focused at offering value-added services in order to satisfy all its customer needs. It achieves this objective by employing highly educated and trained staff. Emirates insurance company is also committed to upgrade the quality of its products and insurance services by embracing “system-of-the-art” system and offering continual training to its employees in order to attain efficiency in all its operations. According to Miller & Noulas, (1996), for the company to achieve all its financial objectives, the company strives to practice high standards of professionalism and integrity.
In the year 2013, the company experienced a robust improvement in the UAE’s equity market; Dubai’s index increased by 108%, whereas Abu Dhabi’s index grew by 63% in the same year. The company improved its performance in the local shares with the hope that it would upgrade its status to “Emerging Market” and also enable Dubai host the Expo 2020. The company recorded a strong performance in its equity portfolio amounting to AED 210 million in the same year. As much as the year recorded a progressive improvement in its equity market share, it became the most challenging year in terms of bond markets. In 2013, the company’s income bond portfolio fell by 3% compared to 2012, which recorded a double digit return. Although the performance was disappointing to the company, it was however happy with the overall performance of the portfolio since its inception in 2010. In 2013, the investment income according to the profit and loss account was recorded as 33% lower than the 2012 results. However, the company’s total comprehensive income grew by 210% from AED 90 million to AED to 290 million thereby reflecting a positive result in its equity portfolio (Miller & Noulas, 1996).
Compared to 2011 and 2012, the total assets of the company grew by 17% in 2013. This was attributed to the surge in securities market, excellent management of working capital, and better technical results. Towards the end of 2013, the book value in relation to the market share grew by 27% from AED 5.8 to 7.4 and the company has recorded no additional capital in 2014 because its working capital and liquidity is extremely strong. According to Hassan,2006), the company has recorded high standards of risk adjusted capitalization and a good track record of established position and technical profitability in the market of United Arab Emirates. However, the company has a weak investment strategy, which is attributed to its offsetting rating factor. It also has a record of concentrating in the equities and ignoring other very significant sectors of its operations. The company’s risk adjusted capitalization is attributed to the increase in surplus and capital amounting to approximately AED 78O million in 2010. The company’s strong capital position is further supported by its strong reinsurance protection. It should however be noted that capital requirements are heavily driven and controlled by the company’s investment activities (Miller & Noulas, 1996).
It can be noted however that as much as the company’s risk-adjusted capitalization level is significantly strong and can absorb the fluctuation and concentration of investment activities, it will most definitely give rise to volatility in the company’s capital earnings and position (Miller & Noulas, 1996). This therefore calls for the company to carry out a thorough analysis and choose a very prudent capital management system that would ensure it offers the right services to its clients. The efforts made by the company in the last three years can never be underestimated especially its efforts to de-risk investment portfolio (Hassan, 2006). However, it should be noted that the company’s exposure to private investment activities and equities still remain high, which is a cause for concern. Risk-adjusted capitalization levels can be driven by improving on the dividend policy and investment profile. In the recent years, the company has demonstrated a very reputable record of profitability in the technical industry, with profits growing to AED 50 million between 2010 and 2012. The improvement was attributed to careful selection strict underwriting practices in order to attract beneficial business practices in the market environment that is very competitive. In 2010, the company produced a loss ratio that was below 50% with good performances in other business segments. In the same year, the company also became a major player in the general insurance market of the United Arab Emirates with approximate written premiums of AED 630 million, establishing itself to appear in the top five players (Hassan, (2006).
THE SHARJAN ISLAMIC BANK
Historical Development and Background Information
This is an Islamic bank having its headquarters in Sharjan located in the United Arab Emirates. The bank was formed in 1976 and it was later converted into a fully compliant Shariah bank. The bank was established in order to offer commercial banking services to individual clients and companies. The bank was originally established as a Sharjahn national bank and it was the first bank across the world to convert to an Islamic bank in 2002 (Smola and Mirakhor, (2010). Such a change to Islamic bank meant a significant turning point for the bank. Not only were modern and specialized services and products devised for its customers but all the bank’s information and accounting systems were changed to be in line with the Islamic regulations. Employees were also trained in order to assimilate and adapt to the new system in order to provide its customers with the best services.
Industrial Competitiveness of the Sharjan Islamic Bank
The company has been experiencing tremendous growth since the year 2010 and the recent announcement of cash dividends for the year 2014 is a factor to be relied on. In 2014, Sharjan Islamic Bank announced cash dividends of 10% of the nominal share value that is equivalent to AED242.6 million and this can be attributed to the competitive nature of Sharjan Islamic Bank in the global market (Smola and Mirakhor, 2010).
The financial report released by the chairman, HE Abdul Ramathan indicated a significant increase in the company’s financial resources, for example, there was a substantial increase in the total assets growth rates, net receivables, liquid assets and bank’s diversified financial portfolio. The report further indicated an increment in the shareholders equity and total customers deposits for the year 2013 trading period, and this provided a good base for measuring the bank’s competitiveness in the market. In his speech, the chairman congratulated his deputy for the outstanding efforts over the past 18 years; a period the bank has achieved a spiral of achievement and successes enabling the bank to receive various local, regional and international awards and accolades. The management of Sharjan Islamic Bank has embarked on diversified financial portfolio to enable it compete effectively in the economic sectors and this has bore the fruits of sound financial maintenances and liquidity availability within the banking sector (Smola and Mirakhor, 2010).
In analyzing the financial position of the firm for the last three years, total assets have increased by 18.6% that is equated to AED21.7 billion for the year 2013, showing a net increase of AED34 billion compared to the 2012 financial report. In the same year Sharjan Islamic Bank realized AED5.1 billion in liquid assets and that represent an increase of 23.6% in liquid assets while the year 2011 achieved an increment of 8%. Net receivables for the year 2013 was AED12.5 billion with a positive figure of 16.5% compared to 2012 while the company liability increased by 5% for the same financial period. The shareholders equity increased by the value of 20.9% and that reflected a strong financial position of Sharjan Islamic Bank (Beck, Dermiguc-Kunt, & Merrouche, 2013), The bank has also been successful in terms of capital adequacy; in the year 2013, capital adequacy increased by 31% showing compliance with Basel III capital requirements and this has facilitated expansion of the strategic goals of the bank. The competitive growth for the last three years can be summarized by looking at the company’s profits or net return. SIB attained a profit of AED 307.1 million for the year 2013 resulting in a 12.9% increase (Beck, Dermiguc-Kunt & Merrouche, 2013). All the above mentioned factors have facilitated the expansion of markets hence increasing the market share of Sharjan Islamic Bank in the global market.
Other factors considered in benchmarking are the performance of the management of a given firm. According to Allen & Rai (1996), it is therefore prudent to elude the success of the SIB with the managerial performance. Due to the excellent work of the managers of the company, the bank scooped most of the wards of prestigious Sheik Khalifa Excellence Award to appreciate the company for the good work done in the banking sector. The recognition of the prestigious award is a clear indicator of how competitive Sharjan Islamic Bank is in the global market. It is noted that SIB has experienced a substantial growth from 1995 to 2012 under the tenure of Sheikh Sultan bin Mohammed, where the total assets grew from AED775 million in 1995 to AED 18 billion in 2012. The company has also increased the number of services they offer to their clients for the last three years, whereby they advise their clients to take loans of various categories (Allen & Rai, 1996).
The Innovative Islamic Products, Solutions, and Services
Sharjan Islamic bank offers a wide variety of services to its customers and investors, however, the services are pegged under sharia compliant trading tools. The guiding principles of the company are based on sharia adherence and practices and this has given the company a competitive advantage over other financial institutions within the Arab countries. To promote customer satisfaction and customers’ evaluation, the company has introduced Seven Star Award that is given dedicated employees for the good work they have done to enhance customers’ satisfaction (Ahmad Mokhtar, Abdullah, & Alhabshi, 2006). The award is given to branches and individuals that have performed extremely good or those with outstanding performance within the firm hence the term ‘star’, for example, individuals with outstanding ability in sales, finance and others. The major goal of the award is to improve quality of services offered by Sharia and its branches and also to encourage a competitive business environment thereby promoting efficiency in service delivery to customers (Ahmad Mokhtar, Abdullah, & Alhabshi, 2008). The essence of the award is to motivate the employees that it leads to a better customer relation within the firm. The annual award encourages employees to develop new ideas in their field of operation and also to create conducive environment where customers are the boss and customers needs and preferences come first before anything. This practice has facilitated service delivery within the company hence promoting customers’ satisfaction in the company. In line with customers’ satisfaction, the bank carries out regular training and workshop programs to enable their employees meet the needs of various customers and to guarantee their satisfaction.
Massive information and technology has been integrated within the company to promote efficient and quick delivery of services to customers (Ahmad Mokhtar, Abdullah, & Alhabshi, 2006). With the integration of IT, Mohammed Abdulla, the CEO, was quoted saying that,”Sharia Islamic Bank prides itself on being a frontrunner for positive change in the financial sector” and this has led to the current customer centric within the company. The IT enables the company to offer unique and differentiated services to all its customers hence enhancing customers’ satisfaction. Innovation of IT has facilitated 24hour working within the company and also has led to automation of most of the operation hence promoting efficiency and urgency of service delivery (Miller & Noulas, 1996).
References
Ahmad Mokhtar, H. S., Abdullah, N. & Alhabshi, S.M. (2006), “Efficiency of Islamic Banking in UAE: A Stochastic Frontier Approach”, Journal of Economic Corporation, 22 (2), 37-30.
Ahmad Mokhtar, H. S., Abdullah, N. & Alhabshi, S.M. (2008), “Efficiency and Competition of Islamic Banking in UAE”, Humanomics, 24(1), 28-48.
Allen, L. & Rai, A. (1996), “Operational Efficiency in Banking: An International Comparison”, Journal of Banking and Finance, 20, 655 – 672.
Ariss, R. T. (2010). Competitive Conditions in Islamic and Conventional Banking: A Global Perspective. Review of Financial Economics, 19, 101-108.
Ataullah, A. & Le, H (2006), “Economic Reforms and Bank Efficiency in Developing Countries: The Case of Indian Banking Industry”, Applied Financial Economics, 16, 653 – 663.
Beck, T., Dermiguc-Kunt, A. & Merrouche, O. (2013), “Islamic vs. Conventional Banking: Business Model, Efficiency and Stability”, Journal of Banking & Finance, 37, 433-447.
Hassan, M. K. (2006), “The X-Efficiency in Islamic Banks”, Islamic Economic Studies, 13 (2), 49 – 78.
Iqbal, M. & Molyneux, P. (2005), Thirty Years of Islamic Banking: History, Performance and Prospects, Palgrave Macmillan, England.
Isik, I. & Hassan, M. K. (2003b), “Financial Disruption and Bank Productivity: The 1994 Experience of Turkish Banks”, The Quarterly Review of Economics and Finance, 43, 291 – 320.
Miller, S. M. & Noulas, A. G. (1996), “The Technical Efficiency of Large Bank Production”, Journal of Banking and Finance, 20, 495-509.
Mostafa, M. M. (2009), “Modeling the Efficiency of Top Arab Banks: A DEA-Neural Network Approach”, Expert Systems with Application, 36, 309 -320.
Smola, E. and Mirakhor, A. (2010), “The Global Financial Crisis and Its Implications for the Islamic Financial Industry”, International Journal of Islamic and Middle Eastern Finance and Management, 3, (4), 372-385.
Sufian, F. (2006 and 2007), “The Efficiency of Islamic Banking Industry: A Non-Parametric Analysis with Non-Discretionary Input Variable”, Islamic Economic Studies, 14 (1&2), 53 – 86.
Yudistira, D. (2004), “Efficiency in Islamic Banking: An Empirical Analysis of Eighteen Banks”, Islamic Economic Studies, 12 (1), 1 – 19.