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Macroeconomics Fall 2013

Macroeconomics Fall 2013

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The following data shows how the Abu Dhabi economy has been fluctuating after the recession of 2008. The data shows that the confidence of the firm and the customers have increased. This is after the great economic meltdown of 2009.

It is important to note that the Emirate of Abu Dhabi’s economic status has been resilience and stable when the world faced economic crisis. This is shown in the following data and the statistical yearbook as shown below.

GDP at Current Prices (Million AED) 620,316

GDP Growth Rate 15.9%

Oil Share in GDP 49.7%

Per Capita GDP (Thousand AED) 315.3

Fixed Capital Formation (Million AED) 177,467

Foreign Direct Investment (Million AED) 278,105.4

Oil, Gas and Oil Products Exports (Million AED), 2009 202,437

Non-oil Exports (Million AED) 11,610.9

Re-exports (Million AED) 10,991.7

Imports (Million AED) 86,574.1

Inflation Rate (%) 3.1%

According to the statistics, the revenue and expenditure of the Abu Dhabi government has been greatly affected by petroleum revenue which constitutes 82.6% of the entire 2010’s revenue. The department’s collections revenue and capital revenues contribute 7.3% and 0.1% in that order of the 2010’s revenue. Present expenditure contributes 61.6% of the entire expenditure in 2010. Present transfers 40.2%, salaries and wages 10.3%, and goods and services constitutes 11.2% about of the total revenue. Total capital expenditure accounted for 38.4% of total expenditures, while capital transfers and development expenditures on government projects and capital expenditure on goods and services contributed 24.8% , 12.5% and 1.2% of the total expenditure in 2010 in that order.

Percentage Distribution of Government Revenues (%)        

Item 2005 2009 2010 2011*

Total 100 100 100 100

Petroleum royalties and tax revenue 85.9 89.2 82.6 90.6

Department collections revenue 11.6 8.1 7.3 6.5

Capital revenue 2.5 2.7 10.1 2.9

Source: Statistics Centre – Abu Dhabi *Preliminary estimates Abu Dhabi economy Expenditure

Percentage Distribution of Public Expenditures

(%) Item 2005 2008 2009 2010*

Total 100 100 100 100

Current expenditures 77.6 64.3 60.8 61.6

Salaries and wages 15.4 11.4 9.8 10.3

Good and services 15.2 10.8 11.2 11.2

Current transfers 47.0 42.1 39.8 40.2

Capital expenditures 22.4 35.7 39.2 38.4

Development expenditures on government projects 12.8 7.2 10.9 12.5

Capital expenditures on goods & services 1.0 0.2 0.4 1.2

Capital transfers 8.6 28.3 27.9 24.8

Source: Statistics Centre – Abu Dhabi *Preliminary estimates Percentage Distribution of Public Expenditures by Type (%) Item 2005 2008 2009 2010*

Total Expenditure 100 100 100 100

Recurrent Department Expenditure 23.7 26.3 27.6 25.3

Development Expenditure 11.8 6.9 10.8 9.1

Contribution to the Federal Government 42.4 31.8 27.5 32.2

Aid and Loans 18.2 28.0 24.7 23.0

Capital Payments 3.9 7.0 9.3 10.3

Source: Statistics Centre – Abu Dhabi *Preliminary estimates Sources of income in US

Business financing is used in many ways by a business entity in the execution of its duties and responsibilities. Business finance is used to account for variable expenses, overhead costs as well as day to day operating expenses. In our case due to the expansion needs of the company, sources of finance will need to be evaluated to find a more suitable option for the company. A company can raise finances in a number of ways including, equity finance, debt finance and quasi-equity finance (Manasseh, 1990).

Equity Finance

Equity finance is the largest source of finance to any limited company. This is because it forms a basis on which other finances can be raised. Equity finance is the sum total of the company’s ordinary share capital and the retained earnings/revenue reserves of the company (Hofstrand, 2013). The directors of the company can use equity finance as a source of finance because it can raise a substantial amount of money that can suit the expansion needs of the company.

Ordinary Share Capital

Ordinary share capital refers to finance that is contributed by the ordinary shareholders of a business entity. This finance is contributed by the real owners of the company, because it is raised through the sale of the company’s ordinary shares. It is a permanent source of finance for the company and is only redeemable if the company is liquidated (Manasseh, 1990). Ordinary share capital forms a base and security upon which other money can be raised. This form of finance can raise a substantial amount of money to finance the company’s expansion needs.

Retained Earnings (Revenue Reserves)

Retained earnings are a source of finance which comes about as a result of the company’s undistributed profits. It is a cost free source of finance. This helps in the constitution of growth in the amount in equity for the company. It is referred to an equity cost because it can be declared as a bonus issue in future or as extra dividends (Hofstrand, 2013). The directors could also consider using the company’s retained earnings as a source of income because it is cost free. It is considered the largest source of internal source of finance without any cost to the business. It increases the company equity base by ensuring that the gearing levels of the company are minimized making it possible for the company to get debt finance in good terms (Manasseh, 1990). Once it is capitalized it becomes a permanent source of finance to the business entity and the company can use it for long term investments. It can also be used to lower gearing levels by using retained earnings as redeemable preferential shares. It can enhance creditor’s confidence levels in the prospects of the company’s growth levels. Retained earnings can be used to finance fixed assets whose amount could not be financed using other sources of finance.

Quasi Equity

Quasi-equity combines features of both equity finance and debt finance. It is also referred to a preference share capital because it is accorded preferential treatment in comparison to ordinary shareholders. This source of finance is contributed by quasi-owners or preference shareholders (Hofstrand, 2013). Preferential shareholders are accorded preferential treatment in the following events. Liquidation of the company. In the sharing of dividends, preference shareholders receive dividends before ordinary shareholders. Selling preferential shares does not affect the control of the company, because they do not have voting rights. It can be used without restrictions or preconditions compared to debt finance. This source of finance is never secured by tangible assets. The cost is temporary for redeemable preference shares, hence is not a perpetual cost. It has a fixed sum of dividends paid regardless of the profits made by the company. The issuing company can also take advantage of preference shares by redeeming preference shares at par, when their market values exceed the par value because it can issue others and gain from share premium (Manasseh, 1990).

References

Hofstrand, D. (2013). Types and sources of financing for start-up businesses. IOWA State University Extension and Outreach.

Manasseh, P. (1990). A textbook of business finance. Nairobi, Kenya, McMore Accounting Books.

Ray, S. (2012). Effectiveness of green shoe option as a technique of price stabilization in India. Advances in Applied Economics and Finance (AAEF) 281, 2(1), 2012, 2167-6348.

Alturas, Dr. Economic Contribution of Wyoming’s Community Colleges. Web. Mar 2011. 16 Apr 2013 <http://www.caspercollege.edu/impact/downloads/2011_statewide_full_report.pdf>.

Shields, Michael P. Why Should State Government Invest in College Education? An Equilibrium Approach for the US in 2000. Web. Jun 2008. 16 Apr 2013 <http://ftp.iza.org/dp3569.pdf>.

A RUMOR OF WAR

A RUMOR OF WAR

A rumor of war is a book which was written in 1977 by Philip Caputo. He talks about his life in the United States Marine Corps (USMC), in the early periods during the war of the Vietnam. He states that his book is not about history nor is it about any historical accusations, but it is about his personal experience. This book is divided into major three parts: The splendid Little War,

The splendid little war

This section describes Philip’s personal reasons for joining the USMC, training which followed after he joined and then his arrival in Vietnam. Caputo was a member of the Expeditionary Brigade of the USMC, which was the first troop unit sent to take part in the Vietnam war at a place called Da Nang. Their major function was merely a defensive one. They were supposed to set a perimeter around an airstrip to ensure that arrival and departure of military goods and personnel is safe. They first encountered a North Vietnamese Army and the Viet Cong which made them believe that their earlier thinking that the Vietnam War was small and unimportant was not justified.

The second part of the book talks about the officer in charge of the dead.

Lt. Caputo is assigned from his rifle company to go and work in the desk job documenting on the causalities. This promotion in the joint staff did not impress him because Capito was comfortable working in the rifle company duties such as in commanding infantry. Capito noticed that in his work as a senior officer were so much worried about trivial matters and not on strategy. He witnessed movies being played at night, risking the potentiality and devastating mortar attacks. He also witnessed corpses being treasured as hunting trophies and shown off to the major generals.

In the third part of this book, it talks about the in death’s grey land.

In this part, Caputo is reassigned to the rifle company. He noticed that the North Vietnamese Army and the Viet Cong were very brutal and they were skilled fighters who had earning a grudging respect of American soldiers. He described his fellow marine officers as a having stopped for the epic World War II and they had learned to detect booby traps to counter snipe and comb the jungle in searching for enemy bunkers and their rations. He did this work until one day when the troops who were under his command shot two suspects deliberately, he had to assume full responsibility and faced the court martial. He was relieved his command and the charges were dropped later and then reassigned to another trooping camp in North Carolina from where he received an honorable discharge from the service.

In the epilogue, which took almost ten years after the end of his duty, Philip returned to Vietnam as a war journalist for the newspaper. He still remembers his experience and the every bit of the story floods in his mind when especially he witnessed the fall of the great Saigon to the North Vietnam. Caputo Philip left Vietnam on April twenty ninety of nineteen seventy five. A postscript which was published in 1996 gives the details of the whole experiences and anxieties Caputo went through while writing his memoir, and the difficulties he had in handling his fame and the notoriety after his publication.

From the way most people who read this book comment, we discover that AS rumor of War is one of the elite pantheon books in the Vietnam War along with Michael Herr’s Dispatches, Tim O’Brien’s going after Cacciato and the Things They carried. He books generally talks about life of Lt. Caputo, and the things which led him to elsit in 1965 so as to satisfy his romantic ideas about the war.

BODY AS A KEY SITE OF DOMINATION AND RESISTANCE

BODY AS A KEY SITE OF DOMINATION AND RESISTANCE

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Body as a key site of domination and resistance

Having been born in the year 1745 Equiano was arrested by the colonial masters at 11 years of age, he Equiano was first taken to the African master slaves, and with time he was taken to the white masters through whom he traveled to West Indies, where he was deployed as a slave. When he arrived, he stayed in Virginia for a short time, and even though he enjoyed this, it did not last, and then, he was taken to the British navy vessels, whereby he spent most of his time during the time of slavery. Henry Pascal was the man who gave him the slave name, which was ‘Gustavus Vassa.’. This was the name which he used most of his life. In 1763 he was purchased by Robert King, who was a Quaker merchant. He became happy after he was purchased as these Quaker merchants were known for being benevolent to their slaves; he is given a bit of leniency in how he was treated and generally how he interacted with them.

This made him, with time, arrive at a position where he could buy himself from slavery and live a virtually free life. Apart from the Quakers, the king was also benevolent, and it can be said that they were following in his way of life and how he did his activities. Therefore Gustavus Vassa, even though he experienced terrible things on his way up the ladder from poverty to the level of being able to purchase himself, still has some appreciation for slavery. This is because it helped him get to the level of traveling the world in such an excellent manner. He was a Nigerian, and through slavery, he traveled so much. After he bought himself from slavery, he also traveled a lot, and this was in order to call for the world to stop slavery and look for a better way to get their labor done in their farms in other places where there was needed labor.

From his writing, we realize that it is essential for individuals to realize their worth and rethink the place of slavery in society and its benefits and weaknesses. Even though he does not explicitly disagree with the concept of slavery, he disagrees with how slaves are treated and suggest that it is essential for slaves to be treated better. The idea of the body also comes up whereby Equiano discusses this as a state of being in a conflicting situation whereby a person wishes to be white. Therefore they do all crazy things to stop being black since blackness is associated with slavery, and it is one of the things the blacks hated.

Another view of the body from his writing is that muscular bodies were selected to become slaves, and there was a sharp comparison between the strong-bodied and the weak-bodied. This was because only the strong ones were selected, and to some extent, it made the people think that it would have been better if they were weak rather than healthy and well build. The final tenet of the body is the issue of women and men. Even though they all had bodies, they were treated differently. This meant that men did more hard jobs than ladies. However, the ladies were mistreated and were given less freedom. In some cases, they even became sex slaves, and for the lucky ones, they got to be loved by their masters, and they enjoyed better living standards than the everyday slaves.

In the first view about slavery, Equiano tries to wash his face to be the same as his playmate; Mary, but it cannot happen; therefore, he cannot understand why they are so different. This is the first instance of the body being discussed, and in this, we see that he begins to have questions about why he is different from mary, which brings conflict in his mind. We can also say that he has been made to believe that the whites are superior, and therefore this is what makes him wish to look like Mary and does not want Mary to look like him. This is always the first mistake in comparing the two races, whether in the everyday daily life or in slavery, as was the case for Equiano. Therefore the comparison here is of a bitter realization of the truth that they can never be the same, and therefore Equiano has to deal with his challenge of not accepting himself as he is. From this instance, we realize that the body became a fundamental concept of domination and resistance in that the qualities and characteristics of the whites’ bodies and those of the blacks were different, and it is this that brought out the differences in who dominated and who resistant. It is clearly shown that the whites dominated at the time of slavery while the blacks were always resisting being captured as slaves. Still, in the end, they do not get any benefit from this, and therefore they have to accept the fact that they are slaves and to accept to work for their masters as of that time who were the whites. Apart from the body color, which was a very crucial distinction between the whites and the blacks, we also get to realize that in the black population, there was a struggle between who was captured to become a slave and who was not.

The concept of body strength and health or strength is a concept that was always considered during the time of getting the slaves, and it was an intriguing issue. This is because families could think of how to survive without the man in the house if they were taken to be slaves. The mothers turned to be the replacement of fathers in the place who were brought to be slaves, and this was one of the most challenging kinds of shifts that had to happen most of the time. This made the African culture and way of life change excellently as the healthy people, and those believed to be the pillars of the society were taken away. This left a weak association, and it went ahead to create a better community in the west. Therefore this served as a critical component of resistance in that the men who were taken away always thought about their families and how they can make their families feel safe, yet they have been taken away. It was one of their most challenging periods as they tried to give hope to their families, but it was impossible.

The other concept of body is a comparison between the women and the men who were slaves. This comparison comes up in that women were likely to be lucky and get the attention of their masters, who in some instances even could give them less work and have mercy on them. This rare situation mostly happened whereby the ladies were pretty, and the masters had a desire to use them sexually. Therefore it was a two-way kind of consideration. It was not always perfect for the ladies, especially those who, after sexual relations with their masters, became pregnant and were unaccepted due to their offspring. Therefore, we can say explicitly that the people who arrested the body’s concept were highly abused during this period.

Apart from the issue of men leaving their families and society which they were protecting, they were also exposed to harsh conditions which made their lives in danger of sicknesses and other effects from the extreme environments in which they used to work in. This can be seen in the market for slaves, whereby most of the slaves who were being sold were stripped on their chest area to display how strong they were. This was done even though sometimes it was freezing, and this affected the slaves. Apart from this, their respect as human beings was never valued, and they were chained, which hurt them a lot whereby some of the slaves had to be thrown into the waters in case it was realized they could no longer make it to their destination.

The context of Equiano slavery can be termed as good and better in the last part of it as compared to the first part, which was not good. When he is captured at the age of eleven, Equiano is worried and does not know what to do since he is still a very young boy who wanted to live and be like other men. He had desired to be a young Nigerian strong man who could defend and protect his people and his reputation as a man. However, with the coming of slavery, he finds himself in a difficult situation as he is taken captive along with the other slaves who were captured and who included women, children, and men to be taken to be servants to the whites. Slavery took place between the 15th century to the 19th century. When he got his freedom, he wrote about his life as a slave and detailed everything that happened during those years, from the time he was captured at the age of 11 years and what it made him become when he was a free man.

The writing is a historical one and history, in this case, is of very great significance to the reader. This is because the history of slavery communicates to us and tries to tell us who we are and what kind of people existed before us. It helps us understand one another and at the same time focus on the future in a more positive desire to heal the wounds afflicted on the different blocks of people due to past offenses done to either of the blocks. This is because the effects of slavery are too many and affect a person to their most profound beings and the generations that come after them. This can be seen from the example of Equiano, who has changed his nationality and almost the whole of his life and belonging as a result of slavery.

The context in which this book is written shows us that life was tough for Equiano in the first part of him as a slave. Life was difficult because he could not enjoy the goodness of life as it was when he was a free boy in the Nigerian land where he got his family’s love, care, and protection. When he is taken a slave, this is abruptly cut off, and he becomes a member of another group of sufferers who never understand themselves and the context in which they find themselves. This is so because they get many issues at hand which they have to deal with. One of the most intriguing issues they cannot comprehend is the reason behind their fight and struggle, yet they have done nothing wrong. They struggle to understand why being themselves is being considered unsuitable, yet they are themselves. These are the questions that keep on arising in their minds, and a few of the naïve slaves tend to discuss this with their friends, and it difficult for them to understand.

The process of being captured into slavery goes from being captured freely by the black men who used to serve their white masters to the point whereby the white masters come in and buy the slaves. Most of the time, there was an exchange of slaves by buying and selling them. The reason why a person could sell their slaves was the fact that he or she never pleased the master or they did not have the qualities the masters wanted. After the capture on the mainland, the slaves were taken to the sea, whereby the significant means of transport in those times was through the water. Therefore the slaves were brought to America mostly, and a few of them were taken to Europe. The voyage was a nightmare to most slaves since, at any time, a slave could be thrown into the waters if they tried to resist, or they came up with issues that were not pleasant to their masters. Therefore at this point, the slaves had to behave in a particular manner that made them lovable by their masters to avoid risking too much for their lives still mattered to them.

Upon arrival at the destination, the slaves were always first shocked by the new way of life and the very many white people they encountered. Therefore the culture shock and the pressure for them to perform in anything they are being told to do makes them vulnerable and susceptible to be weakened from the different things they were going through. Their culture and social life are completely changed, and in their new places, they were almost of no origin because they had been cut off entirely from their people. Other parts of their lives which are changed are the social aspects, religious beliefs, clothing, social class, among other aspects of their lives.

Their religious beliefs are changed from the African traditional faith into Christianity which is so much stuffed with concepts to please the whites and never considered the blacks. Therefore religion was used to mistreat the slaves. This was especially true when the whites told them that the bible says that slaves should obey their masters; however, at the same time, it says that God created man and women equal, and there was no one above the other. This comes out as a contradiction, and it later brought revolutions due to the black people’s desire to be free of the rule of the white man. However, religion is also seen to make it possible for slaves to bear the issue they experience. When they encounter difficulties, they turn to God just like Equiano did and get their comfort by trusting and hoping that God will be available and make everything perfectly okay..

In conclusion, we can say that the purpose or the reason why Equiano wrote this text is mainly considered to be that he wanted to show the world how unjust the world is. He primarily focuses on slavery, which he suffered and which changed his life in so many ways, some of which he is unable to explain. Therefore he tries to show how society has always been unjust. Therefore, by focusing on this concept of injustice, the people should be able to rethink and bring about new ways to end it and make everyone equal in society. This means giving people autonomy to manage them and, through this helping them be who they are.