Thursday, July 2, 2020
HomeFinanceScholarshipsApplying To College Scholarships? Avoid These MistakesThis page may contain affiliate links.Dec 3, 2019This might surprise you, but college scholarship judges are everyday people who want to bless a student with the scholarship money from the company or organization they are representing. Some scholarships result in hundreds, and quite possibly thousands, of applications to wade through, however. So student need to keep in mind that these judges can go nuts when they see these mistakes made by students over and over again. Are you making them? I have interviewed many scholarshipjudges and am one myself for my Savor Summer College Scholarship, and trust me when I say here are three tragic mistakes that really do drive scholarship judges crazy. If you are reading this article, you more than likely want to help you or your student submit the best possible scholarship applications, so take this advice to heart and get one step closer to winning more money for college. 3 Scholarship Application Mistakes to Avoid Required Scholarship Materials Are Missing Required means mandatory, not optional! Students need to use a check-off list to make sure all required materials (letters of recommendation, transcripts, essay, etc) are uploaded or mailed-in per the application instructions. This also means that if ONE letter of recommendation is requested, sending THREE is not going to impress the judges. The easiest way to make sure all materials are included for each scholarship application is to print-out the guidelines and physically cross-out each item as it is uploaded or placed in the envelope for mailing. Students who dont follow directions drive scholarship judges crazy! This also goes for simple directions such as essay word count, eligibility requirements, and G.P.A. levels. Students simply waste their time and that of the judges when they do the work and apply for scholarships in which they do not meet the specific guidelines. Simple Grammar Mistakes Can Be Deadly Students in this day and age really dont have an excuse for submitting a scholarship essay full of grammatical errors. With free writing tools such as spell check and Grammarly, it only takes a few minutes to find out if an essay needs fixing. In addition, having someone else proofread each essay before submitting is just plain SMART. The proper use of paragraphs is also important. Reading one long paragraph of 500-1000 words or more is hard on the eyes because the words tend to run together. As a scholarship judge, reading an essay response that is one giant paragraph causes my eyes to mindlessly drift down the page and frankly, drives me up a wall. Also frustrating is reading an essay full of abbreviated text or SMS language, such as YKWIM? (You Know What I Mean?) Scholarship judges dont have the time to guess or decipher the meaning of what the student is trying to convey, so using this type of wording is not advisable at all. Scholarship essays are not text messages, so students need to treat them like valuable school assignments. Not Answering The Essay Question This one may surprise you, but it is quite common for students to submit one scholarship essay for multiple scholarship applications and while this strategy works in some cases, it will backfire in others. If the essay prompt or question is the same or very similar for several scholarships, students can go ahead and use previously written essays, but those that blindly include the same essay no matter what the question is will not win over any scholarship judges. What students CAN do is adjust each essay response to properly fit each scholarship application that they submit. The same essay prompt might be used for one scholarship with a requirement of 500 words, while the same answer is needed for another application requiring 700 words. For the longer essay, more details can be shared and examples of real-life situations expanded upon. Another fatal flaw in using the same essay over and over is if the student included the name of the scholarship in the body of the essay and forgets to change it for multiple submissions. Yes, this really happens and I have to shake my head in amazement when such an essay crosses my desk. How to Improve Your Scholarship Chances The goal of the scholarship essay is to give the judges a deeper inside look into the personality and strengths of each applicant. They need to learn why that student would best represent their company or organization if chosen as the scholarship winner. Having a great essay does not ensure that the judges will pick that student, however, as following ALL application directions is also extremely important. Driving a scholarship judge crazy will not win anyone any money, so students, pay close attention to all scholarship guidelines and endear yourself to the judges. THAT is how more college scholarship money is won.
Monday, June 1, 2020
In MachiavelliÃ¢â¬â¢s The Prince and Thomas HobbesÃ¢â¬â¢ Leviathan, the philosophers argue theories on the construction and securement of political authority. Both Hobbes and Machiavelli present a view that human nature is motivated by passions such as selfishness and greed and this is the essence on which the political environment is derived. It is these characteristics of human nature that precept war, chaos, and political instability. Political authority must then defuse, in the case of Hobbes, or Ã¢â¬Å"realizeÃ¢â¬ , in the case of Machiavelli, the natural condition of humans in order to maintain political stability. Hobbes argues that the Leviathan, is necessary to defuse the potential of humans natural passions and keep instability and violence out of the Commonwealth. Machiavelli, on the other hand, argues for a prince who uses ethics and violence instrumentally to manipulate citizens into obedience and the rejection of selfishness and greed. This essay will examine both theories, ultimately realizing that HobbesÃ¢â¬â¢ view of political authority is more plausible as a solution to political violence and instability. In Leviathan, Hobbes uses what he terms the Ã¢â¬Ëstate of natureÃ¢â¬â¢ to illustrate the potential of humanÃ¢â¬â¢s natural passions to create instability and chaos. The state of nature describes a condition without common power or authority. Hobbes views human nature as inherently motivated by self-interest and the desire for power; Unrestricted by civil law, these desires create a perpetual state of conflict where humans are in constant competition with one another for resources and survival (Hobbes, Leviathan). This constant competition inevitably leads to the war Ã¢â¬Å"of every man against every manÃ¢â¬ (Hobbes, Leviathan). He goes on to describe life in this state as Ã¢â¬Å"solitary, poor, nasty, brutish, and shortÃ¢â¬ (Hobbes, Leviathan). The importance of the Leviathan is thus derived from HobbesÃ¢â¬â¢ account of what life would be like devoid of a common political authority in which the passions of human nature perpetuate social and political chaos. While humanÃ¢â¬â¢s natural propensity for self-preservation and power perpetuates war and violence in the state of nature, the same desire means humans naturally fear death and injury. It is this fear and anxiety that drives human reasoning to seek a more secure and peaceful life. In order to achieve this, Hobbes argues humans willingly give up some of their rights to a common authority in order to gain protection from the constant threat of death and anxiety for the future. Hobbes, believes that moral code is strengthened by the existence of an authority figure. As he states, Ã¢â¬Å"Hereby it is manifest, that during the time men live without a common power to keep them all in awe, they are in a condition which is called warÃ¢â¬ ¦Ã¢â¬ (Hobbes, Leviathan). The Leviathan thus is important because it motivates individuals to adhere to a stronger moral code and reject the natural passions of self-preservation that would normally hurdle them into a state of war. It is for this reas on that Hobbes finds it so necessary to argue for a strong central figure; without it, humanÃ¢â¬â¢s natural passions will lead to radical political instability and total chaos. In Lord of the Flies, we see many parallels to HobbesÃ¢â¬â¢ political theory. Where Hobbes believes the presence of a strong central authority strengthens moral code, we observe the inverse in the film. In the absence of a strong central authority the boys on the island begin to abandon all morality, eventually behaving in brutish, violent ways. They begin to become concerned only with hunting and a Hobbesian survival of the fittest mentality. Additionally, this film reflects HobbesÃ¢â¬â¢ argument that competition of scarce resources and the desire for power will spark conflict. The competition between Ralph and JackÃ¢â¬â¢s group reflects this, as the two battle for authority and power. The rest of the boys ultimately defect to JackÃ¢â¬â¢s group which pursues that which ensures survival. This conflict ends up creating the most violent behavior of the film, such as Simon and PiggyÃ¢â¬â¢s death. Absence of strong central authority and HobbesÃ¢â¬â¢ Leviathan, society and mor ality break down and humans are thrust into the miserable condition that Hobbes anticipates. In The Prince Machiavelli also considers human nature to be inherently Ã¢â¬Å"badÃ¢â¬ . He states: Ã¢â¬Å"For this can be said of men: that they are ungrateful, fickle, liars and deceivers, avoiders of danger, [and] greedy for profitÃ¢â¬ . The nature of man thus results in war, violence, and self-serving political actors. Machiavelli argues that humans naturally bad behavior must be mitigated by a prince whose main goal is to safeguard the state and secure power. By using ethics and violence instrumentally a prince can manipulate the people into obedience and peace. Machiavelli believes that manipulation is the most essential tool to maintain power and control. In chapters 6-9, Machiavelli identifies ways in which a prince can rise to power. The distinction Machiavelli makes of these conditions demonstrate MachiavelliÃ¢â¬â¢s argument that a prince can only be successful in reducing political violence if he has the ingenuity to use ethics and violence properly. That is, that he can first positively manipulate the peopleÃ¢â¬â¢s view of himself and use violence such that his authority is not questioned. One way a prince can rise to power is via being elected by the populace. In this condition, the prince is positively viewed and has the love and support of his people, but his lack of the use of violence means he is not feared. He thus has not guarded against attack by enemies and runs the risk of destruction caused by war Ã¢â¬Å"for a man who strives after goodness in all his acts is sure to come to ruin, since there are so many men who are not goodÃ¢â¬ (Machiavelli, The Prince). A second way a prince can be elected is through cruel and immoral means, relying heavily on violence (Machiavelli, The Prince). In this condition, the prince is feared, but is hated by his subjects. Machiavelli identifies hate as a real danger which causes a lack of loyalty among subjects and alliances and an environment of paranoia. In both conditions, the prince is unsuccessful in maintaining power and controlling for political violence. The most successful prince, according to Machiavelli, is one who is both loved and feared. This means he uses violence in order to deter individuals from challenging his authority, but not insofar that he is hated. It also means that he is Ã¢â¬Å"goodÃ¢â¬ , or manipulates the positive view of himself, to the degree that he gains the support of his subjects. According to Machiavelli, it is essential that the prince uses both these instruments to end the destruction caused by war and greedy, self-seeking political actors. In the film Dangerous Liaisons, one can also see the use of manipulation in acquiring power. Meteuil and Valmont decide to manipulate the people around them for their own personal gain. At first, MeteuilÃ¢â¬â¢s manipulation of Cecil has to do with getting revenge against Bastide. As Machiavelli discusses in The Prince, manipulation ought to have moral content and focus. Rulers should not use deceit erroneously without the purpose of maintaining power and control. He offers Borgia as the quintiessential example for how trickery and manipulation are sometimes necessary in order to gain power. Borgia, with his punishment of the minister, created a spectacle that manipulated his subjects into being both satisfied and scared. The subjects were satisfied because the people believed that he was a just ruler who offered swift punishment, and scared because the violent display made them fearful of his power. Borgia was deceitful, but his deciet had moral content and purpose. However, it soo n becomes clear in Dangerous Liaisons that the motivation for meddling in other peopleÃ¢â¬â¢s lives becomes causing unneccesary destruction around them for their own pleasure and greed. Ultimately, it is this unbridled desire for power over other people and their happiness that leads to the characters demise. Machiavelli would condemn the use of manipulation in this way. Ultimately, I believe HobbesÃ¢â¬â¢ argument for the Leviathan is a more plausible solution to political violence. As we see in Lord of the Flies, and in many instances throughout history, when civilized rule and safety is removed people will often turn to the militant mindset. When people are not protected from the constant fear of death and uncertainty, the integrity of the sovereign is lost and individuals resort to those passions that ensure survival. Once they have resorted to self-preservation, society can no longer function peacefully. However, when the Leviathan is in place, individuals are bound by civil laws and morality that prevent the passions of man from creating conflict and constant war. All participants in the commonwealth agree to give up their own rights to violence and cede to the sovereign. In this condition, they are willingly submitting themselves to the authority of the sovereign because anxiety about the future and the fear of death motivates them to seek pe ace.
Tuesday, May 26, 2020
What To Do Before You Start Writing Your War Essay SampleThere are many sites that offer valuable tips on writing great War Essay samples. However, you have to be careful about which site you go to. The good news is that there are some sites out there that provide some superb resources. Here is what you should do.First of all, consider a sample from a great War Essay sample. Look at the site's top pages and read the articles that are relevant to your field. Even better, take a look at the site's resources. This will help you to find out more about how to use the site's resources properly.If you don't have any sample to look at, consider looking at an already published article. Many sites out there offer pre-written essays that you can simply fill in. This makes it easy for you to see how it should look and what information is needed to finish it.Next, look at the resource that you are going to use. How do you know if the resource is great? Consider using samples that have been publis hed and review it thoroughly. If you see something that has stood out, you might want to check it out further.Last, look at the sample resource that you like. Take a closer look at the sample. Be sure to read all of the material provided. This is very important, as you will be writing your own essay.Once you have completed the War Essay samples that you like, you should look at the resources again. Once you have checked it out, then you can start to apply what you learned to your own essay.Remember, not all sample resources are created equal. You will need to know which ones provide you with helpful information and which ones aren't worth your time.
Tuesday, May 19, 2020
Sample details Pages: 3 Words: 755 Downloads: 8 Date added: 2019/08/06 Category People Essay Level High school Tags: Andrew Jackson Essay Did you like this example? Many events have shaped the United States. They carved our society, laws, and beliefs. For starters, before Europeans and other peoples set foot on American soil, it was inhabited only by Native Americans, or Indians. DonÃ¢â¬â¢t waste time! Our writers will create an original "Andrew Jackson and the Removal of Native Americans" essay for you Create order These indigenous people built towns, hunted, and some even farmed. However, when the Spanish, Europeans, and others broadened their horizons into America, the Native Americans were forced to conform to the ways of others, or die. Andrew Jacksons decision to remove these humble peoples, via the Indian Removal Act, exemplifies that statement. At the age of 13, Andrew Jackson quit school and became a soldier. During the war, he was captured. Jackson went on to become the first president to be a prisoner of war. He was known to have a temper from the time he entered the military and throughout his presidency. During one account it is stated he engaged in brawls, and in a duel killed a man who cast an unjustified slur on his wife. Although his ambitious nature was a good contributing factor in his time of leadership, it caused him to make quick and biased decisions. As stated before, Jacksons decision to remove the Native Americans of North America was ignorant and immature in some ways. The Native Americans were humble people. They submitted to other people for years. Very few times did they get involved with war, and when they did it was only to protect themselves and their tribe. Andrew Jackson created the Indian Removal Act during the 1800s and pushed it through several government systems for ratification. One of these systems was Congress. Jackson met with many of the Native American tribes before making his decision. In one document he even referred to the Native Americans as friends and his red children. However, even though Congress voted against the removal of the humble natives Jackson still signed the document to have them removed. In Jacksons eyes, removing natives was the key to success. He belived them to be infirior to whites. He stated,under the protection of the Government, and through the influence of good councels, [will cause them] to cast off their savage habits, and become an interesting, civilized, and Christian community. In the letter from the secretary of war it is even mentioned that they would erect new building as soon as possible where the Native Americans homes once were. In enacting the the Indian Removal Act, Andrew Jackson consequently created the Trail of Tears. This historical event was the march of thousands of Native Americans out of their territory and into a new, government appointed, territory. The Trail of Tears included approxamately 4,000 indian men, women, children, and elders. These people were forced to march several miles with barely any rest. In addition to this, when they did rest, their brief breaks were in shabby makeshift tents. Other indians were put onto boats with similiar, horrid conditions. This tragic historic event has forever marred the United States of America as a very ignorant, gruesome, and harsh occurence. It shall forever provide an example of why differences should be respected and embraced. The Indian Removal Act and the Trail of Tears has contributed to the lesons taught to Americans about equality for all. Bibliography Primary Sources United States War Department, 1770?-1843 Sequoyah, Thomas Loraine McKenney, and United States Bureau Of Indian Affairs. Report of the Secretary of War.On Indian affairs. [Washington, 1826] Pdf. https://www.loc.gov/item/08036496/. Alfred Balch to Andrew Jackson, January 8, 1830. Alfred Balch to Andrew Jackson. January 8, 1830. In Image 4 of Alfred Balch to Andrew Jackson, January 8, 1830. Accessed November 13, 2018. https://www.loc.gov/resource/maj.01074_0281_0284/?sp=4. Andrew Jackson to John Pitchlynn, August 5, 1830. Andrew Jackson to John Pitchlynn. August 5, 1830. In Andrew Jackson to John Pitchlynn, August 5, 1830. Accessed November 12, 2018. https://www.loc.gov/item/maj012027/. Secondary Sources Primary Documents in American History. Planning D-Day (April 2003) Library of Congress Information Bulletin. March 27, 2018. Accessed November 10, 2018. https://www.loc.gov/rr/program/bib/ourdocs/indian.html. Indian Removal Timeline. Digital History. 2018. Accessed November 15, 2018. https://www.digitalhistory.uh.edu/active_learning/explorations/indian_removal/removal_timeline.cfm. President Andrew Jacksons Message to Congress On Indian Removal (1830). Our Documents Interstate Commerce Act (1887). Accessed November 15, 2018. https://www.ourdocuments.gov/doc.php?flash=falsedoc=25. Andrew Jackson. The First March From Selma. Accessed November 12, 2018. https://www.americaslibrary.gov/aa/jackson/aa_jackson_subj.html. Andrew Jackson. The White House. Accessed November 8, 2018. https://www.whitehouse.gov/about-the-white-house/presidents/andrew-jackson/. Cherokee Trail of Tears. About North Georgia. 1994-2018. Accessed November 15, 2018. https://www.aboutnorthgeorgia.com/ang/Cherokee_Trail_of_Tears.
Saturday, May 16, 2020
Sample details Pages: 3 Words: 827 Downloads: 4 Date added: 2019/02/15 Category Career Essay Level High school Topics: Employment Essay Did you like this example? The National Multiple Sclerosis Society (as cited in Bishop Rumrill, 2015) states that the debilitating disease of multiple sclerosis (MS) impacts 2.3 million individuals around the world. This particular disease is considered chronic and typically worsens in severity over time, leading to an array of diverse symptoms that primarily diminish physical and cognitive abilities (Finlayson, Garcia, Cho, 2008). As a result of these impaired abilities, employment is one of the most prominent areas of daily life impacted (Bishop Rumrill, 2015). DonÃ¢â¬â¢t waste time! Our writers will create an original "The Impact of Multiple Sclerosis on Employment" essay for you Create order In fact, McFadden et al. (as cited in Bishop Rumrill, 2015) affirms that merely 20% of individuals with MS maintain their employment positions for 10 years post-diagnosis. This circumstance is troubling for individuals with MS due to the fact that employment is a significant aspect of a prosperous and fulfilling life (Institute of Medicine as cited in Bishop Rumrill, 2015). A thorough examination of the etiology and nature of deviation regarding MS will be conducted to identify how specific impairments are correlated to difficulties with employment maintenance. Etiology and Nature of Deviation MS is categorized as a disease of the central nervous system (CNS) marked by sporadic, repetitive occasions of inflammation (Lee Dunn as cited in Bishop Rumrill, 2015). In the beginning of disease onset, individuals with MS typically experience alternating periods of disease progression and regression (Cameron Klein, 2010). However, as time elapses, some individuals with MS experience an increase in symptom severity as inflammation heightens (Cameron Klein, 2010). The inflammation ultimately engenders demyelination of neuronal axons throughout various areas in the CNS including the brain, spinal cord, and optic nerves (Lee Dunn as cited in Bishop Rumrill, 2015). Myelin is composed of lipids and functions as an axonal covering that promotes enhanced speed and efficiency of electrical impulse conduction (Schapiro as cited in Bishop Rumrill, 2015). When the myelin covering is diminished and damaged through the presence of inflammation, electrical impulses sent between commun icating neurons decelerates (Bishop Rumrill, 2015). As a consequence of this impulse deceleration, the communication of information between neurons loses efficiency and can ultimately obstruct an array of physical, cognitive, sensory, and psychological processes in the body (Schapiro as cited in Bishop Rumrill, 2015). The exact etiology of MS is not factually declared (Bishop Rumrill, 2015). However, biological and environmental components present possible explanations regarding the likelihood of acquiring this disease (Bishop Rumrill, 2015). In addition, the bodyÃ¢â¬â¢s immune system may also contribute to the development of MS (Pakenham as cited in Bishop Rumrill, 2015). Pakenham (as cited in Bishop Rumrill, 2015) states that individuals with MS tend to have immune system responses that trigger T cells to attack the myelin of axons in the CNS. Impairment The symptoms that manifest from MS fluctuate between impacted individuals (Herndon as cited in Bishop Rumrill, 2015). Herndon (as cited in Bishop Rumrill, 2015) explains that the reason for symptom diversity within this population involves the differences in location and severity of the CNS damage. For instance, damage to the frontal and parietal lobes of the brain typically lead to psychological issues, while damage to the brainstem and spinal cord engender diminished physical abilities of the bodily limbs (Fraser, Clemmons, Bennett as cited in Bishop Rumrill, 2015). Two prevalent impairments resulting from MS involve cognitive dysfunction and fatigue (Bishop Rumrill, 2015). Chiaravalloti and DeLuca (as cited in Bishop Rumrill, 2015) state that cognitive dysfunction is found in up to 70% of individuals who suffer from MS. Although the degree and type of cognitive dysfunction differs from person to person, typical problems include challenges with memory recollection, atten tive abilities, and executive skills (Pakenham as cited in Bishop Rumrill, 2015). Fatigue, on the other hand, is present in 92% of individuals with the condition of MS (The Multiple Sclerosis Coalition as cited in Bishop Rumrill, 2015). The Multiple Sclerosis Council for Clinical Practice Guidelines (as cited in Andreasen, Stenager, Dalgas, 2011) explains that the presence of fatigue results in the diminished ability to execute functional activities of daily life. Therefore, individuals with MS who specifically possess cognitive impairments and fatigue struggle to preserve the physical and cognitive abilities required to execute employment duties and maintain occupational positions (Bishop Rumrill, 2015). In addition, these particular individuals face environmental hinderances that cause the maintenance of employment to be challenging to an even greater degree (Duggan, Fagan, Yateman as cited in Bishop Rumrill, 2015). As a result of these impairments, employment positions can be lost (Bishop Rumrill, 2015). This particular circumstance is difficult for this population since employment provides a sense of purpose, leads to essential social engagement, and secures financial means (Institute of Medicine as cited in Bishop Rumrill, 2015). Both cognitive dysfunction and fatigue represent only two out of many MS impairments that can lead to the loss of employment (Bishop Rumrill, 2015). Conclusion The globally-prevalent disease of MS leads to the diminishment of physical and cognitive abilities required to complete daily functional tasks (Finlayson, Garcia, Cho, 2008). As a result of functional limitations, employment becomes challenging for this population to maintain (Bishop Rumrill, 2015). This circumstance ultimately lessens the quality of life present within this particular population, eliminating an essential component of daily routine (Schiavolin et al. as cited in Bishop Rumrill, 2015).
Sample details Pages: 11 Words: 3366 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Did you like this example? Hedging is a risk management tool to offsetting the risk inherent of price in any cash market position by taking an equal but opposite position in the futures market. Hedging activities protect futures contract holder from fluctuations in the underlying assets price. Investors are benefit if the price of underlying asset moves in the same direction as what investors expected (Hedge Fund, 2009). DonÃ¢â¬â¢t waste time! Our writers will create an original "The risk of hedging in the banking world" essay for you Create order Short hedge is a short selling by borrowing underlying asset such as commodity, security or financial instruments from a broker and selling it by using the future contract. It then later bought back at lower price and returned to the broker. Short hedge is used by investors as a technique to capture the profit or protect losses from the falling price of the underlying asset. If the price is moves as investors expectation of going down, the investors are then buy at lower price and sell at the higher pre-determined agreed price. Thus, the investors gain from the differences of buying at lower price and selling at higher price. Furthermore, short selling can increase the liquidity in the market as investors can sell short the underlying asset without holding any stock (Short Hedge, 2010). For example, the price of corn is $3.50 per bushel at today. A producer of corn expects that the price of the corn will be dropping in six months later. Thus, the producer short sells the corn b y using future contract and lock in the price at $3.50 per bushel. Six months later, the price drops to $3.00 per bushel. The producer then buy the corn at $3.00 per bushel in cash market and sell the corn at $3.50 per bushel which is pre-determined agreed price in the future contract. Thus, the producer gained $0.50 per bushel by using the short hedging. Furthermore, producer is also protected from the losses of reducing in the price of corn by just locked in the selling price when enter into a contract. However, producer is making losses if the expectation of producer goes wrong. In the event of corns price rises to $4.00 per bushel six months later, the producer have to buy at $4.00 per bushel in the cash market and sell it out at pre-determined agreed price of $3.50 per bushel. From here, we know that the producer is making losses. A long hedge involves buying futures contracts with the intention of receive delivery of the underlying assets by locking the price of the asset. Investors will only enter into a long hedge contract when there is expectation of increase in prices of the underlying asset in the future. Long hedge is also enables investors to hedge and protect against the volatility and uncertainty of future price. A long hedge is beneficial for the investors who worry about the increasing of the underlying assets price in the future. Thus, long hedge allows investors to lock in the purchase price. In the event of the underlying assets price going up later, the investors are protected from the increasing in price by just paying the asset at the lower pre-determined agreed price (Long Hedge,2010). For instance, the seller of corn enters into the contract when he wants to purchase a certain amount of corn from the producer but is worrying about the rises in the price of corn in future. Let says corn price is $3.50 per bushel today and the seller locked in the price at $3.50 per bushel. If the price rises to $4.00 per bushel in six months later , the seller is protected from the rising of the corns price because the price is locked at $3.50. The seller is gained $0.50 per bushel from the long hedge. Same situation applies to long hedge when the price moves unfavorable for the seller. When price drops to $3.00 per bushel, the seller is facing losses. This is because the seller has to pay $3.50 per bushel instead of the actual market price is $3.00 per bushel after the six months period. b) The cost of jet fuel is an important issue for airline companies because it affects the profitability of the firms. This paper explores the hedging fuel costs strategies, implication of accounting rules for driving hedging strategies in United States. Besides, authors also conducted an industry survey to examine current hedging strategies and its benefits in United States business aviation. Cobbs and Wolf (2004) pointed out that there are three type of contracts utilized for fuel hedging purposes: over-the-counter instruments, exchange-traded-futures, and notÃâÃ hedging. Over-the-counter contracts entered by airlines are swaps, options and combinations of options such as collars structures. Despite of illiquid market and insufficient quantities available to hedge jet fuel consumption, many airlines still prefer over-the-counter instruments because of its customisation feature. Southwest successfully used this hedging strategy to implement its dynamic hedging program. It all ow the airlines to lock in prices at a lower point in the oil price cycle assuming that oil price cycle is a mean-reverting process. For examples, fixed swaps are used at the low point of oil price cycle because of the likelihood of price appreciation than price declines. Then, the airline can use swap contract to lock in at a lower price. Giving up potential savings from price decrease whilst hedging against further increases, airlines use collar to lock in a specified range of prices in the mid-range of the price cycle. Peak prices are more likely to require caps in the form of straight calls to allow company benefit from price depreciation and prevent losses from further appreciation. A substantial amount of monitoring is required for this strategy. United States do not have exchange-traded derivatives on jet fuel, therefore a similar hedge are set up such as between the price of heating oil and crude oil which highly correlated with jet fuel. These commodity future contrac ts result basis risk because of imperfectly correlation (contracts are based on an underlying asset other than jet fuel). Some airline companies employ another strategy- not hedging. There are two conditions should be met for this strategy to work: Firstly, other competitors also do not hedge jet fuel cost. In fact, this condition hardly is met, because hedging airlines have a competitive position (stable cash flow and better cash flow planning) over non-hedging airlines though aviation is not an actively hedging industry. Secondly, increase air fare and pass the change in fuel prices to passengers. It is more difficult for airlines to transfer additional fuel cost in highly competition nature of industry because being competitive on price was the key to any airlines survival and success. As such, aviation businesses in United States use various hedging strategies ranging from not hedging to fully hedging using a combination of instruments. Parties involved in hedging need som e accounting standards knowledge since it has great implication in adopting hedging instruments and enable the firms to receive preferable accounting treatment. Industry survey reveals that fuel costs is the second-largest expense for airlines which account for 16% of the carriers operating costs. To reduce the volatility of operating expenses and maintain bottom line profitability, airlines choose to hedge fuel prices. Study showed that Southwest and JetBlue are the industry leaders. Cobbs and Wolf (2004) indicated that there is a positive relationship between fuel hedging and the value of the firm by illustrating price/revenue ratio and hedging ratio of airlines. This study also suggests that airlines that are hedged have a competitive advantage over the non-hedging airlines. This paper concluded that a sophisticated hedging program can create a comparative advantage, overweight the costs and enhance firm value. c) Industry survey was conducted based on 13 United Stated domestic airlines. Survey shows that hedging jet fuel costs brings benefits to airlines. This result is supported by theory that hedging increases firm value. Cobbs and Wolf (2004) indicate that fuel costs is the second-largest expenses for airlines which account for about 16% of the carriers operating expenses after personnel expenses in year 2003. At least 80% of fuel costs were bear by each of the airlines in this industry survey. Aviation businesses average airfare pricing (available seat mile) decrease by 0.1%; airlines faced a compounded annual rise of 25.9% in fuel costs from 2001 to 2003. Few airlines have tried to transfer the rises in fuel costs to passengers by charging surcharges or increase in airfares during the period February to May 2004. However, it was an unsuccessful attempt because rival companies choose to not pass additional costs to their customers. Same case for United who also doubt on the decisi on of increase the pricing as Continental gives up the price increasing after a week due to the reason of other carriers are not responded to do so. This paper repeats the Carter et al. (2002) results: fuel hedging airlines trade at a premium. Cobbs and Wolf (2004) also suggest a positive correlation coefficient between fuel hedging and the firms value by illustrating price/revenue ratio and hedging ratio of airlines. Southwest is the largest fuel hedger who is hedged 82% of the fuel price and the price to revenue ratio is above 1.00. The second and third largest hedger is JetBlue and Airtran Holdings who are also having price to revenue ratio more than 1.00. Both United and Continental are remaining unhedged for the fuel price. Thus, their price to revenue ratio is relatively low. United is only achieving 0.01 while Continental is below 0.10. For EPS estimation in 2004, Southwest and JetBlue have positive value because both are the largest hedgers. Based on the findings from ind ustry survey, hedging is creating value which is like higher price to revenue ratio, lower price, positive EPS. Non-hedging airlines fuel cost were at or above the average spot fuel price. Southwest, JetBlue and Delta were the largest fuel hedgers in United Stated domestic airlines in 2003. Their actual fuel cost were in-line or below the average spot price of New York Harbor and U.S Gulf Coast. According to Southwests CEO statement, Southwest would face $8million loss due to rising in fuel prices if they not hedged their position. Southwest uses a combination of call options, collars, and fixed price swap agreements to hedge its jet fuel exposure. Whereas, JetBlue hedge its fuel consumption through swap agreement and crude oil option contracts and outsources its fuel management services. Dynamic hedging strategies enable Southwest and JetBlue- the industry hedging leader to save on fuel expenses and create competitive advantages compared to other carriers. Although hedging in creases firm value, there are still involves significant amount of hedging costs. For example JetBlue and Southwest limit their hedging operations in the past three years due to the reason of insufficient cash flow to finance the futures margin deposits and option premiums. Delta forced to close the positions of the fuel price hedging as to generate cash are needed for operations. In addition, many airlines (American, Continental Northwest and United) have to deal with liquidity issues which limit their ability to fully hedge their jet fuel consumption and protect themselves from oil price fluctuations. d) Jet fuel prices have been substantially volatile throughout the last decade. It drive airlines to hedge their fuel consumption to protect themselves from fuel price rising. For instance, the impact of fuel price changes drove United Airlines entered into options contracts to protect against increases in jet fuel prices (Carter et al., 2002). Jet fuel hedging is valuable for airline companies according to previous literature studies: US airlines which engage in fuel hedging activities increase in firms values (Carter et al.,2002; Cobbs and Wolf, 2004; Lin and Chang, 2008); Kvello and Stenvik (2009) study on European airlines hedging also has consistent results with US airlines. In the study of Carter et al. (2002), regression analysis is using to test whether there are hedging premium for the airlines that are using derivatives to hedge exposure of jet fuel price. The result showed 12%-16% statistically significant that hedging is creating vale for a firm. Fuel cost is one of the largest costs for airlines. It is more volatile than other courier expenses (Cobbs and Wolf, 2004). Hedging is considered as one of the ways to protect the airlines from the unfavorable price movements. For examples, in 2003, Korean Airlines entered into forward fuel contract which reduce their average fuel price paid by 34% and reported a gain of Won 282 million. Through dynamic hedging activities, Qantas offset 73% of their 2003/04 increased fuel price paid (Morrell and Swan, 2006). Thus, hedging activities is a tool to stabilize overall costs and reduce the volatility of profitability. Then, firms future expenses and earnings are able to predict, resulting in a more stable airlines financial markets. Investors are more confident to the stock price of airlines after hedging as earnings of airlines are more volatile if there is no any hedging activity. Carriers may face threat of bankruptcy if fuel prices keep increasing. For examples, Legend Airlines and National Airline s seek for insolvency protection because of rising fuel cost in 2000 (Cobbs and Wolf, 2004). Hedging aids in reducing the cash flows or accounting profits volatility, minimize risks, diminishing the probability of bankruptcy (Kvello and Stenvik, 2009). In 2003-2005, rise in fuel prices drove several airlines into bankruptcy. However, SouthwestÃâÃ was able to weather the changes in fuel prices by using extensiveÃâÃ fuelÃâÃ hedgingÃâÃ program (Ingrassia and Fleischer, 2006). Trempskis (2009) study note that Southwest and JetBlue Airlines- the industry leaders in fuel hedging strategy never has filed for bankruptcy, thus investors perceived them as more stable firm. Hence, fuel hedging would increase investors confidence and valuation of firms. During economic downturn period or fuel prices are very high, financially troubled airlines would sale its assets (e.g. aircrafts) below market prices (Carter et al.,2002). In this context, hedging airlines are allowed to take advantages buy these assets or acquire that carrier at prices below fair value (Pulvino, 1998; Cobbs and Wolf, 2004; Kvello and Stenvik, 2009). Kim and Singal (1993) implies that typically higher fare environments are created upon completion of the acquisition. By fuel hedging, airlines reduce cash flow volatility, improve its cash position thus enhance its flexibility in investment policies during economic downturns. Froot et al., (1993) analyze that hedged-airlines have sufficient internal funds and rely less on external sources of funds to complete this profitable capital expenditures or favorable investment opportunity. For example, American Airlines acquired Trans World Airlines by utilizing its available cash and assumption of Trans World Airlines debt in 2001 (as cited it Carter et al., 2002). Involving in positive net present value investment would strengthen hedged-airlines competitive position and increase firm values. Rob Fyfe, Air New Zealand chief executive c ommented that fuel hedging not only trying to remove volatility and also provide airlines ability to compete against its rivals. Fuel hedging makes sure airlines have some parity in fuel costs with competitors and prevent competitors from undercut on prices (in case rivals obtained a lower fuel cost). Fyfe statement is illustrated with a real case scenario. Qantas Airways fuel strategy successfully enhanced its competitive advantage and obtained cheaper fuel cost, resulting in captured some market share from rivals (Ballantyne, 2009). Fuel hedging is a complex business. Unless those airlines are able to maintain a long term and consistent hedging strategy through all stages of oil price cycle, airlines wouldnt be able to benefit from hedging. In fact, many airlines hedging losses in fuel hedging have been reported. For example, Air New Zealand had a loss of $134million from fuel hedging, other airlines to suffer include China Eastern Airlines ($908million), Air China ($994million ), Taiwans China Airlines ($629million), EVA Air ($267.8million), Malaysia Airlines ($755million) and Singapore Airlines ($223.5million). Besides, it becomes more difficult and more expensive for airlines to arrange hedging deals. Many banks and finance houses that heavily involved in past hedging have either bankrupted or in financial difficulties, e.g. Lehman Brothers. As a result, many airlines hedging deals collapsed and the remaining players are nervous (Ballantyne, 2009). However, most industry leaders and airline chiefs insist that hedging is the only way to smooth out the peaks and troughs of fuel price. This exercise will continue to be an important risk management tool in their strategy (Ballantyne, 2009). e) This study found that there is a positive relationship between fuel hedging and the value of the firm. This leads our attention to the aspects of reasons for hedging and which theory supported the finding. Theory that supported the finding Source of added value from jet fuel hedging is related to the underinvestment problem. Numerous literature studies supported for the underinvestment theory (Bessembinder, 1991; Froot et al., 1993; Stulz, 1996; Carter et al., 2002; Lin and Chang, 2008). Froot et. al (1993) developed a theoretical framework for hedging and value. He indicates that airlines facing financial distress will choose to underinvest. Underinvestment cost is one of the important indirect costs of financial distress (e.g. Stulz, 1996) thus hedging activity is a tool to alleviating the problem of underinvestment. When firms have profitable capital expenditures, the external cost of fund is more expensive than the internal funds (pecking order theory), so hedging can lower the variability of internal funds and ensure airlines have sufficient internal cost of capital to complete profitable investment opportunities (Bessembinder, 1991; Froot et. Al, 1993; Mello and Parsons, 2000). Based on Froots framework, Carter et. al (2002, 2006) and Kvello and Stenvik (2009) further proved that airlines main benefit of jet fuel hedging as it comes from reduction of financial distress cost and underinvestment costs. Their studies result show that positive relation between hedging and value increases in capital investment, while higher fuel costs are consistent with lower cash flow. Hedging add value to shareholders by aiming airlines avoid underinvestment and make value-creating investment. Reasons for hedging Probability of bankrupt is easily affected by non-systematic risk and thus levies costs. This probability of bankruptcy can be defined as financial distress costs which are included direct and indirect costs. Direct costs are costs incurred in the bankruptcy while indirect costs are derived as stakeholders perceive a realistic chance of future bankruptcy. These costs are defined the performance and market value are directly linked to volatility. (Haushalter, 2000). Hedging is allowed company to hedge against the fluctuation of the cash flow or accounting profit. Thus, it will reduce the probability of going to bankruptcy. Hence, the costs are lower and value of company is increasing. In the exhibit 5, Jet fuel price of Southwest, JetBlue and Delta are lower than average spot price of New York Harbor and U.S Gulf Coast. Thus, the findings are showed the hedging lowering the costs which are consistent with the theory of financial distress costs. Based on agency costs theory, agenc y conflicts arise when there is the divergence of interest of principal and agent. Thus, company should go for hedging to reduce the costs and increase the value of the company. Dobson and Soenen (1993) concluded that hedging reduce the fluctuation of cash flows and leads to probability of uncertainty also reducing. Consequently, the costs of external financing become lower. Furthermore, cash flow is more smoothing through exchange risk hedging when the firm is leverage. Based on the findings, the airliness value are enhancing after the hedging. In the theory of incentive structures, Smith and Stulz (1985) compensation scheme is influencing the managers choices in hedging. Managers are acted in the interest of shareholders who are always maximizing the wealth of shareholders. Managers manage the risk is to reduce the agency costs. However, interest rate risk and currency risk are not able to manage and control. Thus, managers are not likely to engage in hedging even though there are compensation scheme. Yet, the hedging may reduce the other unrelated financial risks of the company value. Indirectly, this is strengthening the relationship between share price and management performance. In the market imperfections, the external financing is more costly and cause the risk to the companies. This is consistent with the study of Froot et. al. (1993) suggested that market imperfections is explained why external funds are more high costs as compared to internal costs. In addition to internal financing, the companies are highly dependent to the external financing to funds their investments. Froot et. al. (1993) also concluded that the costs are higher when a company is facing difficulty to finance funds from external and this will result in the shortfall of their cash flow by assuming other things equal. Thus, the companies should go for hedge to prevent the fluctuation or shortfall of their cash flow. Company that facing market imperfection is more likely to hed ge against the risk in their companies and this theory is supported by Haushalter (2002).
Wednesday, May 6, 2020
Bolivar returned to fight another day in 1813. He declared a Ã¢â¬Ëwar to the deathÃ¢â¬â¢ against Spain. He gained support from Colombia and drove the Spanish out of the Magdalena River area and amassed himself a large army. Civilian leaders in Cartagena then gave him permission to liberate western Venezuela. He did so and continued to take Caracas in August of 1813. This was known as Simon BolivarÃ¢â¬â¢s Ã¢â¬Å"Admiral CampaignÃ¢â¬ . He went on to declare a second republic and assumed his role as a military dictator. Ã¢â¬Å"The Second Republic collapsed within a few months, however, because Bolivar had failed to win the support of the non-white, many of whom were instead recruited to fight with those loyal to the king.Ã¢â¬ What also led to the fall of the Second Republic was the Ã¢â¬Å"Infernal LegionÃ¢â¬ that consisted of skilled lancers claiming to give back to the poor and loyal to Spain. Led by Thomas Boves they fought the patriots, under General Jose Felix Ribas, at the battle of La Puerta where Boves won. General Ribas was able to keep him out of Caracas until the second battle of La Puerta June 1814 where the patriot army was in disarray and devastation. Boves took Valencia and then Caracas bringing a fall to the Second Republic of Venezuela. After the defeat, Bolivar returned to New Grenada until 1815. Under the Second Republic Bolivar and his Ã¢â¬Ë war to the deathÃ¢â¬â¢ killed any Spaniard he came across if they were not active on the patriot side creating the bloodiest part of this revolution. ThereforeShow MoreRelatedMorelos, Bolivar and Latin American Independence Essay943 Words Ã |Ã 4 PagesNation to justify his ideals concerning a democratic state that was heavily theocratic in manner. BolÃ var, in contrast had a more efficient plan. In his Address Delivered at the Inauguration of the Second National Congress of Venezuela, BolÃ var supports the idea of governing Latin America as a republic. The Sentiments of the Nation is a defensive piece that lays the groundwork for MorelosÃ¢â¬â¢ Constitutional Decree for the Liberty of the Mexican America. The article has twenty-three points all of whichRead MoreSimon Boliver : The Revolutionary Leader912 Words Ã |Ã 4 PagesBolÃ var was seeking the support of Britain. There, he met Francisco de Miranda and invited him back to his homeland to participate in his young republic government. Unfortunately, when BolÃ var returned from Britain, he discovered that a civil quarrel was happening between the patriots and the royalists. This laid the groundwork but the First Venezuelan Republic in 1811. This voted for complete independence, plus dropping loyalty to the King. Adding to the string of unfortunate events, a massive earthquakeRead More Simon Bolivar Essay603 Words Ã |Ã 3 Pagesdiplomatic mission. It was a failed attempt to gain an alliance. He returned to Venezuela in 1811 and won a battle in Valencia. Quickly he looses the port of Puerto Cabello to the Royalists during the First Republic. However he was able to recoup his troops in 1813 and institute the Venezuelan Second Republic with himself as the ruler. By this time Bolivar had not fully established himself as a leader from the warlords and other patriots. Without their support he was chased out of Venezuela. He took refugeRead More The Role of President Hugo Chavez in Venezuela Essays4884 Words Ã |Ã 20 Pagesfor Venezuelas oil. Political History In 1958, the first popularly elected president to complete his term, Romulo Betancourt, implemented a crude form of democracy that guaranteed economic distribution to all classes. From 1958 until the end of Andres Perezs first term in 1978, Venezuelas economic performance was characterized by steady growth. Oil rents provided a stable flow of income, which was distributed by the state to promote national development and to meet the extensive welfareRead MoreRevolutionary Changes in the Atlantic World, 1750Ã¢â¬â185010951 Words Ã |Ã 44 Pagesonly to a minority of the adult male population and which protected slavery. The French Revolution, 1789Ã¢â¬â1815 A. French Society and Fiscal Crisis 1.French society was divided into three groups: the First Estate (clergy), the Second Estate (hereditary nobility), and the Third Estate (everyone else). The clergy and the nobility controlled vast amounts of wealth, and the clergy was exempt from nearly all taxes. 2.The Third Estate included the rapidly growingRead MoreAbortion6774 Words Ã |Ã 28 Pages Andes Mountains D. Tropical rainforest climate E. None of the above 21. In 1808: *A. Rio de Janeiro became the seat of the Portuguese Empire B. Napoleon threatened to take over SÃ £o Paulo C. Brazil began its dominance of the Spanish republics, making them the equivalent of colonies D. the Spanish began to make inroads into Brazilian territory E. the Amazon River basin was lost to former leaders of the Incan Empire Cultural Fragmentation 22. Which of the following is not a