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Medical Malpractice – Wrong Medication
Introduction
Medical malpractice in nursing constitute professional negligence which maybe as a result of an act or omission intended, or unintended by a nurse or a care giver where the treatment received falls below the required or accepted standard of nursing practice in medical community and which may result in death or injury to the patient. The most common medical malpractice in nursing is medication errors.
Approximately 1.3 million patients are injured in the US every year as a result of wrong medication (Conrad & Marks, 2016). Medical Error occurs when preventable events that cause or may lead to wrong or inappropriate medication in the control of a patient’s medical condition.
Medication errors make it mandatory for nurses to follow a defined pattern of administering drugs to patients. Following several incidences of nurses administering wrong medication some hospitals allow nurses to administer certain medical procedures and treatment under the supervision of doctors only (Caron, 2011).
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The scrutiny of academic qualification documents and other professional qualification that are required for nursing practice in the US take a longer period to ensure thorough scrutiny of nurses papers and their backgrounds including the institution of training number of years and the experience gained and the hospitals worked in.
The high rate of medication errors has made it very difficult for nurses to serve patients on their own except under supervision in large hospitals.
The website source from Conrad and Marks (2016) outlines the most common medication errors that are prevalent in the medical spheres. The website defines a wide range of medical malpractices some that originate from the drugs manufacturing companies while others from negligent medical practitioners and care givers including nurses. The source also provides preventive measures that can be applied to reduce medication errors.
The article provides the details of medical malpractice concerning a nurse who mistakenly administered a drug to a patient who later died as a result of the drugs complications from and which later turned out to be that are related to other conditions that
Croke et al (2003) Nurses, Negligence and Malpractice, Uppincott Nursing Center eNews, American Journal of Nursing, AJN, September, Volume: 103, Number (Page 54 -57) retrieved March 21, 2016 from http://www.nursingcenter.com/journalarticle?article_id=423284
The article that first appeared on the American Journal of Nursing details and tracks malpractice in Healthcare Organizations. The article defines malpractice as unethical or improper conduct or unexplained lack of skill among professionals which border on negligence or gross incompetency. The article outlines the different kinds of malpractices that nurses experiences in the normal cause of duty.
Aiken, L.H., Clarke, S.P., Sloane, D.M., Sochalski, D.M. and Silber, J.H. (2002)Hospital nurse staffing and patient mortality, nurse burn out, and job dissatisfaction. Journal of the American Medical Association 288(16):1987–93.
The article suggests that the high mortality rates that have been recorded in US health Institution are mostly related to understaffing among the nurses, burnouts and job dissatisfaction.
American Association of Critical-Care Nurses (2005) AACN Standards for Establishing and sustaining healthy work environments.www.aacn.org. American Nurses Association Code of Ethics Project Task Force .A New Code of Ethics for Nurses. American Journal of Nursing 100 (7):69–72.
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This article that was published by AACN outlines the ethics that guide nurses in their stations of work. The malpractices are having a negative effect on Americans.
Treadwell, H.M., and M.R. O. (2003) Poverty, race, and the invisible men, American Journal of Public Health 93:705–7.Veatch, R.M.2003. The Basics of Bioethics, Seconded. Upper Saddle River, NJ: Prentice Hall.
The journal describes the challenges faced by the poor and their quests for treatment and the basis for Bioethnics which refers to the treatment of such issues like abortion and euthanasia.
Volbrecht, R.M. (2002) Nursing Ethics: Communities in Dialogue. Upper Saddle River, NJ: Prentice Hall. Weston,
The book outlines the new nursing standards in the year and compares them to the current changes in medical fraternity including in such areas as bioethical isssues,
Weston, A. (2002) A Practical Companion to Ethics, 2nded. New York: Oxford University Press.
Weston (2002) describes the various practical ways of ensuring that all interdisciplinary ethical standards are all followed and put into practice to the letter.
Mercy, J.A., Krug, E.G. Dahlberg, L.L. and Zwi. A.B. (2003) Violence and health: The United States in a global perspective, American Journal of Public Health 92:256–61.
The Public health journal traces the sources of violence in health care industry and relates the rate of violence in hospitals as associated with inadequate training, lack of dedication and discipline.
Milio, N. (2002) Where policy hits the pavement: Contemporary issues in Communities, In Policy and Politics in Nursing and Health Care, 4th ed., pp. 659–68.St.Louis, MO: Saunders.
The article describes the difficult situations that the nursing industry has been exposed to and the current challenges facing the situation.
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Case Study: Banner Health care
Banner Health organization is among the biggest non-profit organization in the USA. Its headquarters is at Phoenix, Arizona. It oversees about twenty nine healthcare facilities including home care programs, family health clinics, and long-term healthcare facilities. Banner Health care delivers its services to nine States in the Western and Mid-Western States (Banner Health, 2015).
This organization was established in 1999 through the merging of Samaritan Health Systems and Lutheran Health systems. Currently, the organization has employed about 47,000 people who deliver services to about 300,000 service users (Berlyl Institute, n.d.). This healthcare organization caters for patient’s basic medical costs and emergency healthcare costs.
Additionally, the organization covers for specialized healthcare services such as heart transplants, bone marrow transplants, and psychosocial rehabilitative services. This non-profit organization also covers for life threatening healthcare complications such as spinal injuries and Alzheimer disease. It is approximated that the total worth of the organization as 3.1 billion dollars, with an annual return of 2.6 billion dollar (Kuhn and Chuck, 2015).
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Banner healthcare has focused its resources into delivery of safety and quality of care. This entails establishing stringent measures that detect mistakes such as patient identification errors, which impede delivery of quality services. The coordinated service improves the organization performance and maintains organization’s integrity as well as improving patient satisfaction (Banner Health, 2015).
This has enabled the organization to identify functional areas, which require improvement in order to sustain its performance. This has led to the creation of cross-facility employees, whose role is to deliberate on ideas that ensure new knowledge on organization is gathered and integrated within the organization standards (Armbrister, 2012).
For example, for a very long time Banner health institution overlooked the relationship between organization cultures and its leadership, and ways they influenced the organization performances. The Banner Health organizations works together with other multiple healthcare facilities across the Nation, which makes it challenging to identify a standard policy that would ensure effective delivery of services in each of the healthcare facilities across the miles (Armbrister, 2012).
This is attributable to the fact that each of the healthcare facility are in different geographical location, thus, the sociocultural factors differs from one healthcare facility to another. Thus, applying a common method would lead into more challenges. For this reason, the organization has adopted the integration of culture driven policies that would help sustain the organizations success. The organization culture plays an integral role in shaping the organizations performances (Berlyl Institute, n.d.). This includes identification of management themes that put the interests of the service users as the priority.
The above diagram illustrates the model used at this organization to run its day –to- day practices. The model comprises of four main themes;
a) effective communication of the organization vision,
b) measurable accountability,
c) developing effective leadership and
d) sustaining the success.
The first theme addresses the role of effective communication, which is one of the main hindrances of success in most of the institution. This model ensures that there is effective communication between the employees and their leaders; thus, the employees work to achieve the organization vision, mission and goals (Kuhn and Chuck, 2015).
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The second theme discusses the issue of employee’s responsibility and accountability. The leader’s roles are to ensure that the employee’s accountability is aligned within the organization’s framework. This implies that the leaders acts as role models, and are expected to exemplify the true measure of accountability within their organizations (Armbrister, 2012).
Banner Health has established solid metrics (patient’s satisfaction and experiences) systems, which evaluates the accountability and success each healthcare facility. The applications of score cards ensure that each employee is held accountable of their services. The leaders are expected to guide and provide all the resources needed, and to motivate the employees. This is to ensure that Bander’s health mission and vision are articulated effectively (Berlyl Institute, n.d.).
The third theme involves recruitment process and staffing ratios. The banner health has adopted the habit of recruiting leaders who are proactive and are likely to steer success. This is because active leaders ensure that their employee’s skills are improved through refresher courses and internal programs.
This ensures that employees’ specific skills and talents are improved, and new skills are developed through continuous learning. The organization promotes teamwork. It is through the teamwork that cultural competencies are developed which ensures that the employees respect each other’s values and beliefs which reduces the incidences of office bickering (Kuhn and Chuck, 2015).
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The last strategies used by the organization are by establishing measures that ensures that there are sustainable developments. This ischallenging as the healthcare industry is dynamic. Therefore, the organization has recruited research employees whose work is to identify the changes in market demands so that the organization can change its strategies to align with the market demands.
This increases their competitive advantages as the organization manages to make changes according to the market demands. This ensures that the organization explores new areas and discovers other opportunities that have not been realized by their competitors. These processes sustain its development effectively (Berlyl Institute, n.d.).
From this discussion, it is evident that these strategic measures are only effective if articulated simultaneously. For example, integrating effective communication within the organization ensures that each employee understands the organization’s visions and missions. This also ensures that the employees understand their responsibilities within the organization (Armbrister, 2012).
Working with competent leaders ensures that the team members are committed to achieving the organizations goals. The motivation is transmitted from the top management to employees. The clarity of the organizations directives establishes a foundation that ensures that the employees are held accountable of their actions (Banner Health, 2015).
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In summation, Banner Health has sustained their successes by improving the delivery of services. The Banner Health performances have exceeded the internal targets and are reported in the past years to have achieved stretch targets. The organizations financial capacity has been improved such that it can survive any healthcare dynamic trend. Thus, Banner Health is an established and efficient network concerned with improving the community wellbeing (Armbrister, 2012).
References
Armbrister, M. (2012). Just what is Banner Health planning? Northern Colorado Business Report 18(4) p2B-8B
Banner Health (2015). Banner Health Medtrack company profile. Database Business complete. Retrieved from https://www.medtrack.com
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The Aging Process in Human Beings
Journal Entry
Introduction
There are many theories that attempt to explain the aging process in human beings. They are generally classified as programmed and error prone theories. Both theories attempt to explain the aging process in human beings (Jin, 2010).
Goals and Objectives
The major objectives of this practicum experience are to understand the theoretical components of programmed and error prone theories and identify key components of error prone theories and their application to the aging process. The major goals of this study are to investigate and illustrate error prone theories in people aged more than 60 years and apply the learnt concepts in error prone theories in identifying diseases that affect old people.
Programmed and non programmed theories have been used to base on induction of apoptotic processes while error prone theories are associated with follows cell failure (Goldsmith, 2013). Wear and tear, rate of living theory ,cross linking theory and radicals theory are associated with error processes while programmed theories are dependent on programmed longevity, endocrine theory and immunological theory (Goldsmith, 2014).
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Timeline
All students conducting the investigation will come up with a design study, which follows all principles including seeking consent from the people being investigated. The design should take into consideration the needs of geriatric patients (Jin, 2010). Consent will also be sought from the university. More emphasis will be placed on using medical records of old patients within health care settings. All students are requested to submit their design for analysis in one month.
The research will be done in three months depending on the approval of the design of an individual students. Relevant data will be collected during this period and analyzed for the specifics by solely basing on the design.
Information collected will then be analyzed and evaluated independently by students before their results will be presented through a panel of scientists. All information collected by the students will be utilized to come up with exclusive answers on issues relating to the aging process. This process will take about four weeks. The findings will be evaluated for a period of three weeks. This process will also encompass validating research data.
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Chief Complaint (CC): “I have been experiencing shortness of breath and fatigue in the last two weeks.”
History of Present Illness (HPI): Patient complains of shortness of breath, and general fatigue. Patient has been experiencing swelling of the feet and has been having difficulty in completing tasks that she would normally.
Past Medical History (PMH): measles at age 3, mumps at age 4
Past Surgical History (PSH): None
Family history;
Father died at age 65 y/o due to CAD.
Mother 70 y/o, alive diagnosed with hypertension
Brother (35) alive and healthy
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Personal and Social History:
She is born and raised in this community. She is a college graduate with a diploma in business management. She works as an assistant in one of healthcare facilities within the community. She lives with her daughter. She interacts with the community members. Pt denies smoking, but takes a lot of salt. The pt takes two cups of caffeine. Pt states that she is physically inactive.
Review of Systems:
HEENT: EOMI, PERRL,
CV: RRR, S3 present, m/r/g absent
RESP: breathing symmetrical, SOB, CTAB x mild crackles
Healthy dietary is recommended to boost the immune system
Maintain hygiene to protect themselves from communicable diseases.
Reflections
Congestive heart failure (CHF) is the leading cause for hospitalization in this community. There is no cure of the disease, but can effectively be managed through therapeutic and non-pharmacological measures (Esposito, Bagchi, and Verdier, 2009). My preceptor and I were on the same page in during care delivery and treatment of this pt. From the comprehensive assessment, I learnt that the patient was non-compliant to medication.I was assigned to research on the strategic ways that would be used to educate the patient and to ensure that she adhered to the recommended medication (Bickley, 2013
Esposito, D., Bagchi, A., Verdier, J.M. (2009). Medicaid beneficiaries with congestive heart failure: Association of medication adherence with healthcare use and costs. The American journal of managed care 15(7); 437-445
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Employee Voice in an Organization
Employee voice refers to the worker’s participation in influencing the decision-making the process of an organization. Employee voice has become vital in every organization as it is key to the successful business process. Articulation of the individual dissatisfaction is regarded as the first voice that seeks to address some immediate issues through proper management (Mowbray et al, 2015).
The employee’s voice will simply imply the two-way exchange where the workers air the issues affecting them with the management. Employees can air their concerns and problems indirectly using representatives or directly through some forums. Employee voice can act as a crucial pillar for the better worker’s engagement, better performance and management styles in a given organization (Mowbray et al, 2015).
Employee voice can be attained through various mechanisms for their effectiveness in a given organization. Informal and formal employee voice mechanisms are the commonly used types of the many organizations. Employee voice can also be categorized as either task-centered or power centered depending on the structure of the mechanism adopted (Townsend et al, 2012). All of these mechanisms are always centered on the team working initiatives, empowerment techniques and also the full engagement of the employers (Townsend et al, 2012).
The informal mechanism is the main type of employee voice employed in this paper. Informal type of voice mechanism mostly entails the use of the communication tools that are mainly implemented by the management of a given firm. The type of employee voice mechanism entails the implementation of the social function meetings, communication e.g. through emails and other forums and finding a proper way of receiving the feedback from workers (Townsend et al, 2012).
The structure of the mechanism is a two way-communication type of employee voice employed in the organization. The structure includes the forum for sharing of information between the employees and the employer after the workers are provided with the right information about the businesses (Burris, 2012). Newsletters, notice boards and staff meeting are used by the employer to disseminate the information to the employees.
Intranet and the email are adopted to ensure the information reaches the workers. The meeting structure will allow the workers to seek clarifications about the certain matter from their bosses. Seek feedback and suggestions structure is to be enhanced through the problem-solving groups, surveys and regular meetings. The atmosphere is to be full of trust where the anxiety of the employees is reduced and make sure they freely provide their feedback about the business operations of an organization (Burris, 2012).
The feedback mechanism is part of the structure that encourages the dialogue with the employees. Evaluate and respond mechanism is to be implemented as part of the structure for ensuring the feedback and suggestions provided do not conflict. A structured way of responding to the feedback and the proper evaluation of the input by the workers is adopted in the informal mechanism of employee voice (Burris, 2012).
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There are various ways that ensure the employee voice mechanism adopted is effective in nature and successful in nature. Elimination of the barriers that hinder the efficient communication between the employer and employee is one factor considered in the many organizations (Morisson, 2014). Such a strategy for working on the various barriers can be made possible through the skip-level meeting or having the numerous feedback processes (Morrison, 2014).
Adoption of this strategy ensures the employees are closer to the managers who will impact the success of the employee voice mechanism positively. Proper evaluation of the ideas and opinions of workers by explaining why some suggestions cannot be adopted is offered as a useful forum that influences success. Adoption of this strategy ensures the organization fully benefits from the employee voice mechanism making it a success.
Enhancing mutuality in the relationship between employees and employers would impact the success of the employee voice mechanism (Morrison, 2014). Use of downward communication and use of the electronic media to ease the process of conveying the relevant information which consequently impacts the success of the employee voice mechanism.
Unions are important as they effectively offer sufficient reasons for their positive effect on productivity. Management behavior is positively impacted by the union where the issues of the employees are handled in the right manner. The union has both the positive and negative impacts on the employee voice mechanism.
Unions offer the collective bargaining for the employee’s voice which is a stronger force that ensures their issues are properly handled thus impacting the mechanism positively (Morrison, 2014). Union presence would lower the effectiveness of the mechanism due to lack of the direct employee involvement which is the major factor in the success of employee voice. Unions with greater monopoly enjoy a more effective employee voice due the pressure they put on the management.
In the formal employee voice mechanism, the employee perspective is mainly reflected in an organization. Reflection on the employee is mainly due to the full workers engagement in the decision-making the process as the main objective of an organization (Morrison, 2014). Formal mechanism aims at ensuring the employees air their grievances in an easier better channel thus making the reflection to be fully in them.
The necessity of the full presentation and the policies that require full safeguarding of the employees makes the employee voice a right that should be accorded to the workers in every organization (Townsend et al, 2012). Employers should grant the workers the freedom to express their opinions especially regarding the matters that affect them as failure to do so is a violation of their privileges.
In this case, the employee voice is a fundamental right that should be provided to the employees by their employers. The privilege of education, training and provision of good meals is a fundamental right identified in the story of Daniel during captivity. The strategy is to acquire as much knowledge as possible through the education rights which impacted his integrity leading to better actions and performances in future (Mowbray et al, 2015). The strategy was to gain during the captivity period and at the end having an uncompromising life full of genuine integrity.
Townsend, K., Wilkinson, A., & Burgess, J. (2012). Filling the gaps: Patterns of formal and informal voice. Economic and industrial Democracy, 0143831X12448442.
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THE ROLE OF CIVIL SOCIETY IN ENSURING A QUALITATIVE EITI REPORT
Introduction
The Extractive Industry Transparency (EITI) was established in 2002 at the World Summit on Sustainable development in South Africa. This brought together several key actors such as companies, the global coalition of governments, and civil society organizations with the aim of getting investors to promote transparency in the receipt and payment of natural resources and revenues.
This essay therefore seeks to examine the role of the civil society in ensuring a qualitative EITI report. This can be seen in the manner in which revenues generated from the minerals and oil is in this case utilized in the transformation of different economies with the aim of reducing poverty and raising the standards of living for different population in resource-rich nations (Sovacool, & Andrews, 2015).
When different states introduce the element of EITI, the governments within these states make a commitment of strengthening the aspect of transparency in its natural resource revenues with the citizens of these states also committing to holding the government accountable in the manner in which these resources are dispensed. This aids in the building of prosperous and stable societies that function in an effective manner in the global economy.
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On the other hand, much of ETI’s development is owed to the civil society. This clearly depicts the fact that without the existence of the civil society, ETI would not be functional. This is attributed to the fact that the civil society makes concerted advocacy approaches that sees the extractive companies publish their payments to the host governments. Consequently, close to 400 civil society organizations have been committed to the participation of governance through the implementation of ETI in resource rich states around the globe (Sovacool, & Andrews, 2015).
ETI in this case provides a governance approach that advances revenue transparency within the gas, mining and oil sector through an approach that stresses the need of multi-stakeholder approach with integrated roles of the civil society, the governments and extractive companies. Thus the key elements of the success of this approach lies in the ability of developing dialogue that fosters the collaboration between different players in the development, monitoring and evaluation of EITI.
The engagement of the civil society occurs in overseeing the implementation of EITI in countries and within the international EITI board. The civil society organizations therefore remains fully involved in the EITI process through the publication of EITI reports and in the use of figures within these reports. This paper therefore seeks to determine the role of civil society in ensuring a qualitative EITI report.
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The EITI Principles
According to Aaronson (2011), the EITI principles were first developed in one of the conferences that were held in London in 2003. During this conference, a diverse group of states, civil society organizations and companies including the investors agreed upon a statement of principles that were develop to ensure there is an increase in transparency over the payments of revenues in the extractive sector. These therefore saw the EITI principles that are considered as the cornerstone of this initiative. Some of the principles that EITI presents include:
EITI believes in the aspect of prudently using natural resources as an essential element for the development of a sustainable economy and development that would in turn impact poverty reduction approaches (Aaronson, 2011). If the proponents of EITI are not fairly management, this would result in a negative economic and social impact.
EITI on the other hand affirms the management of wealth accrued from natural resources to benefit the citizens of a country within the domains of sovereign governments, a factor that needs to be exercised within the interests of national development.
Additionally, EITI affirms that the benefit it’s accrued from the extraction of mineral resources occurs over a revenue stream over a long period of time, a factor that depicts the high dependency on the prices (Aaronson, 2011). In other words, EITI recognizes that there is a need that a public understanding of the revenue generated by the government and expenditures could aid in public debates that inform in the making of public choices and options that are driven for sustainable development.
The process also underlines the essence of transparency by governments and organizations within the extractive industry and the significance of enhancing a public financial management and accountability system through a strategy that focuses in respect of laws and contracts (Aaronson, 2011).
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Benefits for Local Communities and Civil Society Organisations
The general climate of transparency is one that ensures the civil society groups are empowered. An instance of this can be viewed in the implementation of EITI that facilitates the public participation in governance and improves the access to information for civil societies. The local community in this case benefits from the increases in revenues, while the aspect of accountability, justice, good governance and anti-corruption are promoted and reinforced (Aaronson, 2011).
Civil society organizations are also meant to benefit from the improved relations and influence with governments and companies including the increased opportunities that are directed towards building and strengthening different networks with the international organizations and investors, strengthened public institutions, enhanced governance and citizens who are aware of the empowerment.
The Role of Civil Society in Ensuring a Qualitative EITI Report
As argued, a solid participation of the civil society has the capacity to lead the way in the better implementation and a reinforced disclosure of high quality EITI reports. However, the participation of the civil society needs to be observed in the delivery of EITI results that go beyond the principles of dialogue and the dissemination of reports. It is essential to note that the civil society’s engagement role in ensuring a qualitative EITI report occurs both on the international EITI Boards and in the countries that implement the EITI process as part of the multi-stakeholder groups that have the capacity to oversee the EITI (Holden, & Jacobson, 2007).
Civil society organizations in this case are granted the opportunity for involvement in the process of EITI from the preparation to the publication of EITI reports and most essentially in the use of the figures presented in the EITI reports. These groups therefore mirror the structures of the EITI Board in which the relevant stakeholders are considered to play an inherent and valuable role in the determination of governance in the EITI priorities.
The civil society in this case has the capacity to discuss the aspects of revenue transparency and increasingly contribute their experiences and expertise in fostering dialogues with different stakeholders. In some states, the civil society groups are considered to be in the forefront in popularizing EITI. In other regions, the civil society also works to support the legislative process that aims at strengthening and advancing the agendas of resource and revenue transparency (Holden, & Jacobson, 2007).
This clearly depicts that the role of the civil society can be seen in their activities that can be viewed in the monitoring and implementation of national dialogue on the issues that are not covered directly by EITI including the use of revenues that are accrued from the extractive sector.
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Experiences that emerge from the implementation of EITI clearly shows that the civil society groups are bound to face several challenges within a state’s level that include the lack of capacity constraints, the lack of resources and other security issues (Pal, & Pantaleo, 2008). However, the EITI Board has a functionally developed range of policy responses that are determined in the strengthening of the EITI requirements aimed at ensuring the civil society groups are fully interdependent and are provided with the opportunity to get engaged within the stages of EITI process.
Within the context of governance and development, the civil society is considered as a third sector that is distinct from the business and government that are functioning as an intermediary institution in ensuring that the issues that deal with the interests of the public within the public domain are coordinated through advocacy (Pal, & Pantaleo, 2008).
The goal of this is to ensure these issues are addressed and effectively implemented in order to serve the common interest and good of the society. This depicts that the civil society includes and is not limited to institutions and other groups that include the independent media, religious groups, professional associations, student unions, labor unions, community and township union’s, citizen advocacy organizations among others.
The non-governmental organizations in this case through their activities, principled positions and strong beliefs have the capacity of voicing out their principled positions to the sectors of the society through an approach that promotes discussions, debates, and constructive engagements. These roles are developed to enrich the public’s participation in the decision making process thus strengthening good governance, accountability and democratic principles (Frynas, 2010).
It could be argued out that these reasons determine the manner in which the concepts of EITI is built on a multi-stakeholder approach that involves several key players such as the government, the civil society and other companies. These stakeholders therefore play distinct roles in the EITI process. However, the civil society plays an essential role in the streamlining of the processes of EITI even though these roles are considered as unclear in several implementing countries. Some of the roles of the civil society would also include:
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Identification
The civil society organizations beside the aspect of dialogue also share the view that it is their responsibility to identify the key issues that are within the interest of the public and that relate to the mandate of the EITI process that are directed towards extractive revenue transparency, the process of governance and ensure that the identified issues are addressed and brought within the public domain for debate and dialogue (Calland, & Bentley, 2013).
Some of the issues that the civil society organizations clearly focus on include the process of leasing, oil block allocations, bidding rounds, the issuance of mining licenses, physical, financial and process management, the environmental standards and so on. Governance in this case can only be improved in the event that the lapses in the issues that are identified with the civil society organizations are identifies and channeled as tools for advocacy.
Agenda Setting
The civil society is different states consider the aspect of agenda setting as their traditional responsibility and a primary tool of their engagement (Calland, & Bentley, 2013). Under these roles, the civil society organizations identify some of the issues that are related to the EITI mandate and use these issues to set national and international agendas for the publics discourse, debate and engagement with the governments and the extractive revenue companies with the aim of improving the aspect of governance through a transparent process and accountability that is done through the use of EITI frameworks.
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Public Education and Enlightenment
The element of public education and enlightenment in this case is another role of the civil society even though individuals tend to think these needs to be left for the media alone. The civil society therefore makes use of these roles to command influence through the use of both the informal and formal approaches of communication in a language that gives understanding to the people.
This would in some instances call for the development of deliberate staged events that would see the inclusion of conferences, workshops, town meetings and other events directed towards enlightenment and education on the EITI process and extractive revenues (Mejía Acosta, 2013). However, it is vital to consider the fact that where literacy levels are considerably low and the government’s involvement in the organization of programs are viewed with mistrust and suspicion, the achievement of this role may be challenging.
Agents of Social Mobilization and Change
The civil society organizations also make use of the fact that for the process of EITI to secure the public’s interests required within the sector, there is a need of providing a supporting role-that of acting as the agents of social mobilization and change (Mejía Acosta, 2013).
In this case, it is essential to consider that these roles include the sustained mobilization of the opinions of the public with the aim of advancing the course of the EITI process within the areas of legislative processes and policy formulations. These are known and have been considered to come in the form of peaceful protests, resource mechanization and petitions.
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Monitoring and Oversight
It is additionally essential to consider that the civil society organizations are also tasked with the responsibility of monitoring the processes and programs of EITI including the policies and the unfolding events within the extractive sector and ensure that accurate reports and facts are provided with the view of directing the appropriate course of action that can improve the process of governance (Mejía Acosta, 2014).
The monitoring and oversight in this case needs to be community based and people driven, In order to carry out these functions in an effective manner, the civil society organizations, there is a need of adequately equipping the civil society organizations on the issues that are directed towards strengthening the EITI process in discharging its full mandates.
Advisory
Advisory in this case gives the position of the civil society organizations as some of the professionals within this field that offer fair, profound, qualitative and constructive advice to the EITI processes and in the implementation of an effective EITI process (Mejía Acosta, 2014). The EITI Board in this case needs to be open to advices within the areas of their operations and publicly acknowledge the contribution of the civil society within the EITI process.
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Whistle Blowing
The civil society remains in a better position to blow the whistle in the event that extractive revenue transparency functions of the EITI process are not clearly following their mandates. This would therefore see the civil society active is in the exposition of fraudulent practices, process lapses, bribery, corruption, and dishonest dealings with individuals at any stage within the EITI process (Magner, 2015).
The functions of whistle blowing as conducted by the civil society may also be used to attract and draw the attention of the areas that have achieved poor performance and that have been neglected and the failures in the rise of statutory responsibilities (Mejía Acosta, 2014). The use of this tool in advocacy in this case comes in different dimensions. This function keeps the EITI Board involved in solving some of the issues that are raised in order to function in an effective manner. The civil society needs to be equipped with integrity, knowledge and facts within this interest.
Observation
The civil society has the mandate of taking up the roles of being the observers within certain activities in the EITI process in consultation with the Board and the secretariat. These roles also include the formulation of procurement processes for some of the projects, budget preparations, the development of annual work-plans, and meetings held with the public in situations that are advisable (Magner, 2015).
In performing these roles, civil society organizations are considered to have the right to engage in independent reporting of these events and give EITI Board the opportunity to make their final comments on these reports before they are disseminated.
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Feedback
The role of the civil society in providing feedback in this case is considered as essential and desirable within the processes of EITI (Mouan, 2010). Many of the civil society organizations in this case draw from professional groupings, coalitions, and clusters and take up the full charge and role of providing adequate feedback to their states through a process that extends to the larger publics interests with the aim of addressing the issues of interests.
In this case, it is arguable that the civil society besides engaging in dialogue within the EITI process is also engaged in several other processes. The general climate of transparency is one that ensures the civil society groups are empowered. An instance of this can be viewed in the implementation of EITI that facilitates the public participation in governance and improves the access to information for civil societies (Mouan, 2010).
The local community in this case benefits from the increases in revenues, while the aspect of accountability, justice, good governance and anti-corruption are promoted and reinforced. The engagement of the civil society occurs in overseeing the implementation of EITI in countries and within the international EITI board. The civil society organizations therefore remains fully involved in the EITI process through the publication of EITI reports and in the use of figures within these reports. This paper therefore seeks to determine the role of civil society in ensuring a qualitative EITI report.
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Conclusion
As determined in this study, the Extractive Industry Transparency (EITI) was established in 2002 at the World Summit on Sustainable development in South Africa. This brought together several key actors such as companies, the global coalition of governments and civil society organizations with the aim of getting investors to promote transparency in the receipt and payment of natural resources and revenues (Mouan, 2010).
EITI in this case provides a governance approach that advances revenue transparency within the gas, mining, and oil sector through an approach that stresses the need of multi-stakeholder approach with integrated roles of the civil society, the governments and extractive companies. Thus the key elements of the success of this approach lies in the ability of developing dialogue that fosters the collaboration between different players in the development, monitoring and evaluation of EITI.
The solid participation of the civil society has the capacity to lead the way in the better implementation and a reinforced disclosure of high quality EITI reports. This can be achieved when the civil society in this case has the capacity to discuss the aspects of revenue transparency and increasingly contribute their experiences and expertise in fostering dialogues with different stakeholders. In some states, the civil society groups are considered to be in the forefront in popularizing EITI.
In other regions, the civil society also works to support the legislative process that aims at strengthening and advancing the agendas of resource and revenue transparency (Mouan, 2010). Additionally, beside the aspect of dialogue, the civil society also shares the view that it is their responsibility to identify the key issues that are within the interest of the public and that relate to the mandate of the EITI process that are directed towards extractive revenue transparency, the process of governance and ensure that the identified issues are addressed and brought within the public domain for debate and dialogue.
Within the context of governance and development, the civil society is considered as a third sector that is distinct from the business and government that are functioning as an intermediary institution in ensuring that the issues that deal with the interests of the public within the public domain are coordinated through advocacy.
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Calland, R., & Bentley, K. (2013). The Impact and Effectiveness of Transparency and Accountability Initiatives: Freedom of Information. Development Policy Review, 31s69-s87. doi:10.1111/dpr.12020
Frynas, J. (2010). Corporate Social Responsibility and Societal Governance: Lessons from Transparency in the Oil and Gas Sector. Journal of Business Ethics, 93163-179. doi:10.1007/s10551-010-0559-1
Magner, A. L. (2015). Drilling for Disclosure: Resource Extraction Issuer Disclosure and American Petroleum Institute v. SEC. Journal of Corporation Law, 40(2), 521-537.
Mejía Acosta, A. (2013). The Impact and Effectiveness of Accountability and Transparency Initiatives: The Governance of Natural Resources. Development Policy Review, 31s89-s105. doi:10.1111/dpr.12021
Mejía Acosta, A. (2014). The Impact and Effectiveness of Accountability and Transparency Initiatives: The Governance of Natural Resources. Development Policy Review, 31s89-s105. doi:10.1111/dpr.12021
Mouan, L. C. (2010). Exploring the potential benefits of Asian participation in the Extractive Industries Transparency Initiative: The case of China. Business Strategy & the Environment (John Wiley & Sons, Inc), 19(6), 367-376. doi:10.1002/bse.687
Pal, N., & Pantaleo, D. C. (2008). From Strategy to Execution: Turning Accelerated Global Change into Opportunity. Berlin: Springer.
Sovacool, B. K., & Andrews, N. (2015). Does transparency matter? Evaluating the governance impacts of the Extractive Industries Transparency Initiative (EITI) in Azerbaijan and Liberia. Resources Policy, 45183-192. doi:10.1016/j.resourpol.2015.04.003
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Benefit and Cost of Expansion of Soybean Farming and Grazing in Brasil
The dual process of mixed farming that the Brasilians are shifting towards in the expansion of their soybean farming and grazing is bound to promote economic growth and provide better living conditions for citizens. Expanding soy field will boost soil fertility and offer the animal alternative protein feeds and animal manure used for the soy plants. This helps reduce soil infertility and use of chemical fertilizer that would have severe consequences for environment pollution (Merten & Minella, 2013).
Expansion of soy farming could also be beneficial in attaining environmental sustainability by controlling hydrological regime, soil erosion, and biodiversity in the region. However, increased expansion is bound to impact the environment in a significant manner through deforestation as well as pollution from soy processing industries.
Weighing benefit and cost of changes
The local Brasilians will benefit through attaining sustainable alternative to manure, which helps boost soil fertility. They will use organic systems of farming to control issues like soil infertility and ecological sustainability. The Brasilians will also have a cheaper alternative method of controlling soil erosion like the use of cover crops. The use of organic fertilizer will subsidize the cost of chemical fertilizer boosting soil composition and hydrological circulation in the region.
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Advise to the Brasilians as US Ambassador
In order to adopt a sustainable environment and economy, it is advisable for the Brasilians to use eco-friendly farming and grazing practices. They should increase their soil covers, adopt soil conservation programs and promote water quality. They should invest in sustainable practices such as building of greenhouses in their farms and practice modern farming techniques to avoid soil erosion and land degradation.
It would also be appropriate if they practiced mixed farming by applying the organic method of farming such as using manure instead of importing fertilizer and feeding their animals with natural protein from legumes rather than buying animals feed. This will be effective in sustain cost of production and environment conservation by the farmer and the country.
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Madison Plc Funding Analysis
Introduction
Organizations are usually formed with an objective of gaining profit and attaining growth. This means that the management of an organization is always aimed at ensuring that operations are in the right order for such to happen. This calls for various processes to be initiated for the purpose of proper operation. Firstly, proper strategic planning has to be carried out.
Secondly, the finances of an organization have to be organized so that the reported results may be impressive. To understand better, company analysis is necessary since it gives a brighter picture of an organization’s financial status. This report will focus on Madison Plc for analysis. It will give a detailed explanation of the various funding sources that Madison Plc can have for its expansion plans.
Additionally, the advantages and disadvantages of each source of funding identified will be explained deeply. For better understanding, the report will also focus on the ways that Madison Plc can manage the sources of funding for better results. In the main part of this report, matters related to management of working capital will also be highlighted.
For better understanding of this company’s investment options, analysis of different options will be highlighted and implications outlined properly. Additionally, the report will show ratio analysis of two companies that it is aiming at acquiring; thus getting an opportunity to make a choice. In the conclusion part of this, a summary of the main point will be indicated for better understanding.
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Funding
For most organizations, getting adequate funding is one of the major challenges of being in business (Johnson, Scholes & Whittington 2007, p. 12). This is because resources are usually scarce, and money is part of scarce resources. Madison Plc has to seek more funding for the purpose of expanding its operations across the globe as planned. This means that the company has to look for the sources of more money. The different sources of funding that Madison Plc can utilize are explained below.
Debt financing
Debt financing refers to raising capital for a business through getting loans or credit facilities from lenders (Gupta 2011, p. 43). This means that an organization may go ahead and apply for financing in some of the known lenders. Interestingly, companies are known to rely on lenders as a means of accessing more capital for its operations (Kaplan & Norton 2004, p.98).
Therefore, Madison Plc can move ahead and approach some of the available lenders for funds to push forward its expansion agenda. This may be done through various arrangements; Madison Plc may get into an agreement with lenders regarding the percentage amount of gain to share. Secondly, the parent company and Madison Plc may agree on the payment period for any more financing granted.
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Advantages of debt financing
Debt financing is associated with various benefits. One of the advantages of using debt financing is that the risk associated with giving some ownership to new investors is reduced. With debt financing, an organization obtains money from lenders who do not need any part of the company. As a matter of fact, debt financing connects the lender and an organization through the periodic payments.
Secondly, it does not subject an organization to divided control as is the case with equity financing. This means that decision making organ of the organization keeps on functioning normally. The third benefit of debt financing is that an organization is able to have more money as retained earnings. It has been observed that despite the fact that the company pays interest on debt, the amount of money spared which would have gone to additional investors witnessed in equity financing.
Disadvantages of debt financing
One disadvantage of debt financing is that the company bears the burden of debt management. Having taken financing from loans, an organization has to ensure that the facility is properly management (Kaplan and Norton 2006, p.89). The burden of following up on the repayment records is tedious and a burden to an organization. Additionally, debt financing involves more cost for an organization. According to Arnold (2009, p.24), going for debt financing means that an organization has to pay interest to cover the cost of getting the credit facility.
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Equity financing
Equity refers to the shares of an organization. Therefore, Madison Plc can use equity as to fund its operations. Through equity, this company can invite interested investors to purchase some shares in the company. This will make the investors shareholders while the company benefits from the money paid for the shares.
Advantages of funding through equity
One advantage of equity financing is that it creates a possibility of meeting people who are beneficial to an organization. Having investors purchase the shares of a business may create the benefit of having knowledgeable people form part of new investors. The benefits may also come as a result of having new investors who have more resources to lend to the organization. Having more able people get in the ownership of a business is always very important.
This is because the new investors may extend more money for use in the operations of an organization. Additionally, the new shareholders may be able to give the organization beneficial business connections. According to Hill and Jones (2007, p.19), new owners of a business may bring about the much needed network in the business community.
The second benefit of equity financing as a source of capital is that there is no burden involved in management of credit facilities. It is worth noting that whenever an organization gets into debt, there is always need to have proper credit management, something which is not experienced with equity financing. The burden of extra cost incurred through payment of interest is not experienced with the use of equity financing.
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Disadvantages of equity financing
Equity financing is known to have various disadvantages to an organization. The first disadvantage is that the new investors will have to get part of the company’s profits. According to Neale and McElroy (2004, p.16), important to note that shareholders are usually motivated by the share of profit that they get from an investment. This means that the profit of an organization will end up being divided among the increased number of shareholders. The second disadvantage of going for equity financing is that the management of an organization becomes more divided.
Equity financing is known to divide the control in management of an organization (Debarrshi 2012, p. 98). With shared control of the business, decision making process becomes complicated. Finally, equity financing is disadvantageous in that unnecessary disagreements may arise. This becomes more complicated if some of the new shareholders are not team players.
Retained profits financing
Retained profit is the other source of capital that Madison Plc can have. With retained profit as a source of capital, an organization usually ploughs back some of the earned profit. This means that instead of the profit being allocated for other purposes such as payment of dividends, the company uses it to carry out capital operations.
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Advantages of funding through retained profit
One advantage of financing the operations of a business through retained earnings is that the level of debt in the organization does not increase. With retained earnings, the business does not incur any cost such as interest on loans as is the case in debt financing. This means that an organization does not reduce its net profit as a result of financing expenses.
The second benefit of financing through retained earnings is that an organization maintains its independence. This means that the management of an organization is not diluted as a result of new investors in the shares of an organization. This means that the decision making process in the organization does not become complicated and unnecessarily long. Additionally, conflicts in the organization do not increase as would be the case with equity financing.
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Disadvantages of funding through retained profit
One disadvantage of using retained earnings as a source of capital is that it takes a long time before a considerable amount of money is ploughed back. It is worth noting that retained earnings reduce the speed with which an organization can grow through more investments. It is usually a very slow source of revenue. Secondly, retained earnings as a source of capital reduce the liquidity of an organization.
Using retained earnings to expand or have more investments means that cash for the business is reduced. This risks crippling other business commitments that require cash. Additionally, the use of retained earnings as a source of financing denies an organization an opportunity to gain from new members of the organization as is the case in equity financing.
Efficient working capital management in improving cash flow
It is worth noting that proper management of the working capital of an organization is very important (Gray, Salter & Radebaugh 2011, p. 34). This is because it contributes in shaping the well being of an organization. Madison Plc can do away with some of the non-current asset. Additionally, for proper management of the working capital of Madison Plc, long-term debt financing can be sought.
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Break-even analysis as a tool for decision making
Break-even analysis is a tool used in determining the level of operation in which an organization will be able to just cover its costs. At the break-even point of an organization, there is no loss or profit made from operations in place (Keller & Price 2013, p.56). Break-even point is usually indicated through showing that the income generated equals the total cost involved. For Madison Plc, break even analysis can be helpful in deciding which software to produce. This can be done through looking at the cost that would be covered by the returns.
Break-even point in terms of money= (1.57 units) × ($5,500) = $8,635
Therefore, the breakeven point is at the point where the sales stand at $8,635.
Profit=Sales-Total cost
=Total cost=$7,515
=$8,635-7,515=1,120
Madison Platform:
Assuming that the fixed cost = $8,500
And variable cost = $1,847 per unit
The price per unit of output=$6200
P × Q = Vc × Q + Fc
6,200 *Q = 1847Q + 8,500
6200 Q = 1847 Q + 8,500
6200Q – 1847Q = 8,500
4,353Q = 8,500
Q = 8,500 / 4,353
Q = 1.95 units
The BEP in units= 1.95 units
Break-even point in terms of money= (1.95 units) × ($6,200)
= $12,090
Therefore, the breakeven point is at the point where the sales stand at $12,090.
Profit=$12,090-Total cost
Total cost=$10,347
=12,090-10,347=$1,743
Loss
From the break-even points of the two options, Madison Plc should invest in Madison Platform since profit at the break-even point is higher than that of Madison Super.
Other factors a firm may take into account when making investment decisions
Making of investment decisions are usually very sensitive for an organization. This is because they determine the future of an organization. Investment decisions should be done with care since any mistake may lead to poor performance of organization. The other factor that Madison Plc may take into consideration when making investment decisions is the payback period of each investment option.
The payback period of an investment refers to the duration that an investment will take before the initial capital used is recovered. Therefore, Madison Plc should go for investment options that have the shortest payback period. According to Boddy (2005, p.80), an investment that has a short payback period is the best for an organization. A short payback period of an investment means that in a short while, an organization will start enjoying profit without considering the capital employed.
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The other factor that Madison Plc should consider when making investment decisions is the accounting rate of return. According to Proctor (2012, p.21), rate of return refers to the amount an investment pays back to the organization with regard to the capital involved. It is important for Madison Plc to go for investments with the highest accounting rate of return.
Ratio analysis of Puteaux France and Melia Portfolio Research Spain for consideration by Madison Plc
Financial ratio analysis is a tool used in analyzing the performance of an organization. Financial ratios are usually useful in scrutinizing various aspects of a business. For the purpose of decision making regarding the company that Madison Plc should invest in, the profitability, liquidity and efficiency ratios of Puteaux digital France and Melia Portfolio Research Spain will be calculated.
Liquidity ratio
Liquidity ratio measures capability of an organization to handle short-term commitments through the use of its short-term assets (Hermanson& James 2012, p.16). Some of the liquidity ratios for two companies are as calculated below.
The current ratio
Current ratio = Current assets
Current liabilities
Puteaux digital France
Short-term assets
Liabilities (short-term)
Current Ratio
2011
3,879
2,184
1.78
2012
4,457
1,490
2.99
2013
8,330
1,693
4.92
Melia Portfolio Research SpainCurrent AssetsCurrent LiabilitiesCurrent Ratio 2011 3,879 9,834 0.39 2012 4,457 13,490 0.33 2013 8,330 17,687 0.47
From the current ratios calculated above, Puteaux is seen to have the best relationship of current assets with current liabilities. The current assets are seen to cover the existing assets in more than 1 time. Under this ratio, Madison Plc should go for Puteaux digital France. According to Collier, (2009, p. 17), current ratio should not be too high.
Quick ratio
Acid test ratio = Current Assets – Stock
Current Liabilities
Puteaux digital France
Current Assets – stock
Current liabilities
Quick Ratio
2011
3,879
2,184
1.78
2012
4,457
1,490
2.99
2013
8,330
1,693
4.92
Melia Portfolio Research Spain
Current Assets-stock
Current Liabilities
Quick Ratio
2011
3,879
9,834
0.39
2012
4,457
13,490
0.33
2013
8,330
17,687
0.47
From the quick ratios calculated above, Puteaux is seen to have the best relationship of current assets with current liabilities less stock as indicated by the quick ratio, which is more than 1. The current assets are seen to cover the current assets in more than 1 time without consideration of the inventory. Under this ratio, Madison Plc should invest inPuteaux digital France.
Profitability ratios
Net-profit margin
Net profit margin Net profit x 100
Sales
Puteaux digital France
Net Profit before Tax
Sales
%
2011
1,658
9,406
17.63
2012
2,197
10,812
20.32
2013
2,395
11,516
20.80
Melia Portfolio Research Spain
Net Profit
Sales
%
2011
-1,387
15,529
-8.93
2012
-1,595
17,849
-8.94
2013
-1,833
20,516
-8.93
Considering the net profit margin, Madison Plc should invest in Puteaux digital France. This is because it has a high net profit margin compared to Melia Portfolio Research Spain. A high net profit margin indicates that an organization has a higher growth capability than another one whose net profit margin is low.
Return on Capital Employed
This is a measure of the gain realized in comparison with the capital invested.
Return on capital employed=Operating profit x 100
Capital
Puteaux digital France
Net Profit before Tax
Capital
%
2011
1,658
7,873
21.06
2012
2,197
10,069
21.82
2013
2,395
12,464
19.22
Melia Portfolio Research Spain
Net Profit before Tax
Capital Employed
%
2011
-1,387
4,910
-28.25
2012
-1,595
3,315
-48.11
2013
-1,833
1,482
-123.68
The return on investment of the two companies shows that Puteaux has a better return. This means thatPuteaux has been able to realize more gain on the capital invested. Therefore, Madison Plc should invest inPuteaux digital France since it has a higher net profit margin than Melia Portfolio Research Spain.
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Efficiency ratios
Asset turnover ratio
Asset turnover ratio measures the extent to which an organization’s assets have been utilized.
The asset turnover ratio = Sales Revenue
Net Assets
Puteaux digital France
Sales
Net assets
Asset turnover ratio
2011
9,406
7,873
1.19
2012
10,812
10,069
1.07
2013
11,516
12,464
0.92
Melia Portfolio Research Spain
Sales
Net assets
Asset turnover ratio
2011
15,529
4,910
3.16
2012
17,849
3,315
5.38
2013
20,516
1,482
13.84
From the calculations above, Melia Portfolio Research Spain is seen to be having a higher asset turnover ratio. This means that Madison Plc should be interested in putting his money on Melia Portfolio Research Spain than Puteaux digital France.
Upon analysis of the several ratios for two companies, most ratios are in favor of Puteaux digital France. Therefore, Madison Plc should confidently go for Puteaux digital France as the best investment option.
Recommendations
It is always important for organizations to ensure that actions that are fundamental in performance improvement are done in the earliest time possible. Therefore, it is significant for the management of Madison Plc to guarantee that all what is required for the purpose of making the investment plans successful is done early enough. Firstly, the management of this company should ensure that the source of financing for new investment is identified as soon as possible.
With several sources of finances being in place, it is reasonable to go for the option that gives the organization optimal results. Additionally, the company should look for the option that upholds the independence of the company. With this in mind, Madison Plc should go for debt financing as the source of finance for its projects.
Working capital management is a very fundamental aspect in business. Madison Plc should ensure that there is proper management of working capital for the purpose of creating sustainability of the current position of the organization. It is important for the company to guarantee that the best ways of improving the working capital of the organization are employed. Disposal of some long term assets should be done on time to create better current health in the organization.
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Conclusion
From the ratio analysis, it is evident that the company has been able to have a good performance. This means that ratio analysis should be carried out regularly to ensure that the various aspects of Madison Plc are understood well. Madison Plc should also ensure that proper working capital management takes place. This is important since it safeguards that the company improves its current health. Madison Plc should certify that there is good choice of investments.
According to Angwin (2007, p.46), investment decisions should always be made in such a way that encourages good performance and optimal performance. To succeed in making good investment decisions, the organization should use the available investment analysis tools. With this done, it will be possible to make all decisions regarding investments.
In terms of financing, the company should ensure that it goes for debt financing. This is good for this company since it will guarantee that there is independence in management. Additionally, debt financing will increase the value of retained earnings for the company.
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Globalization Effects on the International System
PART II
Introduction
Globalization refers to an approach that engages people, business entities, companies and governments from different regions in freely interacting with each other in an effective manner. It is essential to consider the fact that the element of interaction between people from different regions is enhanced by particular parameters that are an international system. These parameters include information technology, international trade, infrastructures, engagement in business activities, the ideal of exploiting different resources from various regions and social media (Mehrabanfar, 2015).
These factors therefore remain the main elements that drive people from different contexts to cross borders with the sole aim of engaging in activities geared towards the promotion of a common approach to life. The second part of this paper therefore seeks to determine the manner in which globalization affects the key actors of an international system.
In particularly, this essay examines the way in which globalization affects the main actors in the international system. The essay does so through analysis and critique of the subject matter and not just by describing the topic, as well as through the use of pertinent real-life examples in illustrating the arguments made in the essay. Some of the key actors in the international system as far as globalization is concerned include people, national governments and multinational corporations that have their business operations in multiple countries globally.
This essay also explores the topic further by analyzing the impacts and implications of globalization on different countries globally. Globalization as evident in the present day has largely been driven by policies implemented by countries in the international system which have served to open economies internationally as well as domestically (Zhang, 2015).
A lot of countries have espoused free-market economic systems that have significantly enhanced their productive potential and brought a wide range of opportunities for global trade and investment. In addition, countries have negotiated considerable decreases in barriers to trade and have created transnational agreements that are aimed at promoting trade in services, goods as well as investment. This essay will also clearly describe how this is affecting the main actors in the international system in globalization today.
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How Globalisation Affects the Key Actors in the International System
According to Mehrabanfar (2015), the process of globalization has been determined to influence different human development, cultures, and environments, including political and economic systems. It is essential to understand the process of globalization and its effects on the key actors within an international system. This gives a clear depiction of the manner in which the world is constructed by several changes in the social and economic lives of people (PP.24).
In this, it is therefore essential to determine that globalization is a powerful tool that enhances the course of the new worlds systems that represent the forces that are responsible describing the future of the planet. Globalization is in this case concerned with the economic, political, environmental, security, culture and health of different nations with emphasis placed in the status of different states (Qureshi & Jalbani, 2014).
It is however significant to consider that there are scholars who have different reactions in the interpretation of globalization, a factor that has seen some policy makers considering globalization as an essential element in the advancement of the world’s economy while other believe that this element places negative energy and serious danger upon the world’s economic systems (Baylis, John & Steve, 2001). In as much as globalization can be viewed as a contributor of conflicts, it has several benefits both at the state and individual levels.
Many observers allege that globalization is accelerating with these factors prevalent in the manner in which similar cultural practices have been created and the uniformity of markets. It is therefore important to consider that globalization effects are very strong that they undermine the powers of international and national governance (Popa, 2014).
This element therefore assumes that societies are strongly connected in this dispensation as compared to the past and that change emanates from a single center that is then radiated outward through a uni-directional fashion (Nederveen, & Dasgupta, 2009).
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Impacts of Globalisation
There are several effects that emerge from globalization which impacts different economies of the world. The production of goods and services is affected by different elements of globalization. This has also seen the development of different approaches of production such as capital and other inputs and labor that are primarily dependent on the levels of globalization.
Additionally, competitiveness as seen in producing a good or service has resulted in the diffusion of technology that has resulted in the initiation of nations to other developed cities (Gaur, 2015). Having considered this, globalization is therefore ascribed as the force behind the efficiencies that have been experienced in affecting investment opportunities of different organizations within different nations and markets.
Investments are known to play a central role in technological transfer, formation of global investment and in industrial restructuring which have an effect in the national level (Luković, 2015). New technological advancements in different economies additionally remain an essential factor in globalization that stimulate competition and enhances the diffusion of nations through foreign direct investments.
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International Commercial Transactions
One of the implications of globalization is increased rise of international commercial transactions that have opened opportunities for cross border trade on both small and large scale. Over the past, it is essential to consider that it was challenging to find developed economies engaging in trade with the developing countries. This was centrally because different economies were considered as superior to others, a factor that saw this economies gain big percentages in trade.
According to Francioni, Musso and Vardiabasis (2013), the manner in which organizations engage in international commercial transactions as that has seen the inclusion of electronic buying and selling depicts the manner in which globalization has affected trade in the entire world, a factor that depicts the impact of globalization (PP.240).
It is therefore essential to note that the perception of international commercial transactions also known as international trade can be viewed as an approach that offers a variety of business services to different market on both a small and large scale (Bourguignon, 2016). This concept has therefore been changed with the advent of technological developments, availability of social media, infrastructural development including the development of information communication technologies.
This has therefore transformed the manner in which people conduct their business functions and other affairs that relate to trade (Vadlamannati, 2015). Improvements in the way individuals move from one area to the other have also been enhanced by globalization, a factor that has seen the elimination of various barriers in the market.
Globalization as detailed by Faulconbridge (2008) has provided a clear guideline in the manner in which people from different regions integrate across different markets with each other through the development of an established law system also known as commercial law (PP.185). This according to the author depicts the fact that there are procedural laws that have been created as a result of globalization that regulate the levels people can interact for the sole purpose of ensuring that safety and the protection of the wellbeing of these parties that engage in international and commercial transactions are adhered to the latter.
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It is however essential to consider that Williams and Martinez (2012) believe that this approach does not create the element of free trade since it provides some restrictions through the developed laws that hinder international commercial trade to occur.
In as much as the element of commercial law remains paramount in regulating trade, it is essential to consider the fact that free trade opens different boarders that allows trade interactions and different activities that promote these practices (PP.79). In my view, I however believe that commercial laws are essential since they specify certain activities that promote trade and the manner in which individuals interact in this process.
States have additionally turned out to be interdependent through the implementation of free-trade that has seen the opening of national boarders for the purposes of trade. As a result of globalization, companies now have an easier way of setting up branches and different production sites in other nations where the market conditions remain favorable for a company (Westermann, Rehbein, & Fort, 2015).
However, it is significant to consider the fact that these have seen an increase in competition between different nations considering the fact that each of them would want such establishments made in their own economies. The element of free-trade has therefore seen countries turn out to be dependent on one another in order to present attractive markets for multinational corporations that seek to expand their operations in different markets.
Free-trade was to develop market conditions that would define the manner in which different states would conduct trade freely and with the presentation of equal opportunities with other states (Andreeska, 2015). However, the achievement of this objective was met by different reactions that alluded to the fact that such terms may not favor all nations in an equitable manner. This is because some nations had the capacity to export cheaper raw materials and labor as compared to others and are likely to be trade-partners.
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In this case, some countries needed to implement quotas and tariffs to protect their national economies in dealing with this element. This has therefore seen several states affected by other states tariffs and quotas in effectively trading in the markets (Seitan, 2014). This therefore implies that some states may not be in a position to trade particular goods with other countries considering the fact that meeting these requirement’s may turn out to be detrimental to their functions.
Globalization has in this contemporary time made international trade easier by incorporating online business transactions, a factor that has made it simpler for people to transact (Schelhase, 2008). Commercial laws have therefore been enhanced to cover several aspects within the business spectrum that involves the transfer of funds, accounting, marketing, operational management, book keeping and sales.
It is however essential to consider that the undeveloped nations that may not have access to internet as a result of various factors such as the lack of resources and underdevelopment also have the opportunity to interact with the traders from different regions through enhanced approaches of movement that involve different transport modes (Castro Pereira, 2015). These modes have therefore made movement. Globalization has impacted the transport modes with this making it easier to move from one region to the other without difficulties a factor that impacts international trade.
It is also essential to determine that an essential role was also played when various Inter-Government entities (IGOs) gained significance in the element of globalization. Before the advent of globalization, several states were in pursuit of approaches aimed at promoting their national interests. This therefore saw states primarily concerned with their own interests and safety that developing a global approach to security (Antonelli, & Fassio, 2016). This clearly indicates that states were primarily concerned with their own ways of dealing with their problems at a state level rather than inn an international level.
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Currently, it is essential to establish that issues and challenges have escalated with these affecting states on a global level, a factor that has seen several states unable to protect its citizens (Schelhase, 2008). States have therefore been incapacitated in dealing with these issues by their own means, with this therefore requiring the development of collective action plans with other states through the IGOs.
Through a joint effort, states are in a position to relinquish their sovereignty to a single body that collectively manages the decisions of other member-states (Taylor, et.al.2014). It is essential to consider that these joined sovereignty never existed, a factor that gives the impression that states are obligated to comply with the laid down decisions by the majorities and are in most times affected by such actions considering that this may be against their governance approaches.
States therefore depend upon the aid of other nations who are partisans of the decision making process with the aim of achieving their goals as depicted in the case of UN Security Council. This entity therefore ensures that member states needing to pass resolutions depend on their parameters (Kilic, 2015). Considering the fact that this entity holds veto-powers, they have the capacity to stop a state’s resolution even in the event that these resolutions are passed in their favor.
Another implication that has been noted in these IGOs and the manner in which they relate with members-states remains in the laid down obligations to act under defined circumstances (Verma, & Singh, 2010). In accordance to this, member states of NATO as agreed under Article 5 of the North Atlantic Treaty who lodge armed attacks against other states that reside within North America or Europe are bound to have an attack against them.
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It is also passed that in the event of such armed attacks each of the member-states in exercise of the rights accorded to them recognized by Article 51 of the Charter as described by the United Nations will take full responsibility in assisting the parties affected by taking part in actions as deemed fit that include the use of their forces in order to restore and ensure the security of such a nation (Bassens, & van Meeteren, 2015).
With this example it is therefore essential to note the manner in which member states belonging to NATO remain dependent on one another and are in most cases affected by the happenings in other member states (Bassens, & van Meeteren, 2015). This therefore ensures that the United States of America is required as described under Article 5 of this treaty to send its military forces to assist the European member states when attacks are lodged against them in as much as the US has nothing to do with the issues that arise and are not closer to the attacked states in any way.
This factor therefore implies the fact that in this contemporary society, events have turned out to be borderless, placeless and distancless, a factor that ascertains the fact that states remain unaffected by issues that arise in other nations but may be affected in a way (James, & Steger, 2014).
Another element that can be noted in the manner in which smaller numbers of nations my impact the whole world is in relation to the Organization of Petroleum Exporting Countries (OPEC). In the year 1970, OPEC raised the prices of oil considerably which affected many countries in the world. During this period, OPEC only had 12 member states with their decisions held intact with more states.
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It is also essential to consider the fact that it is not only IGOs and other member states that increase the dependence of other states on others. A Trans-border trade connection that occurs between different locations in different nations has also seen a similar impact as a result of globalization. It is therefore critical to determine that the developed bodies that are given the mandate of run these connections are the makers of decisions with their constituent regions taking the required actions which then impact the manner in which these systems are run globally (James, & Steger, 2014).
This has seen the development of regulatory bodies such as the Assembly of European Regions and the European Union’s Committee of the Regions that influence the manner in which trade is conducted in member-regions. This has therefore seen states turn out to be independent not by their own actions but due to the regions that form part of a regional organization.
On the other hand, it is also significant to note that another development that has been spurred by the element of globalization is in relation with the interconnections of different states within the modern international systems (Schaeffer, 2009).
This has therefore seen the unity of private sector institutions and other entities such as the International Federation of Stock and Exchange that were incorporated in 1961 with the sole purpose of making decision and taking the required actions in addressing issues such as food pricing and credit rates that have significantly impacted different economies over the world.
It is also important to consider the element of fusion of national capital markets and the development of integrated global economies as another factor that is augmented by globalization in the development of interdependent states (Schaeffer, 2009).
Considering the fact that states do not have control over their own economies, it is essential to point out that they primarily rely on a collective approach to governance by different bodies for instance International Monetary Fund (IMF) and the World Bank so as to develop effective approaches of regulating the international financial markets.
These dependencies have seen different member-states provided with protection in an even where their economies are troubled with financial difficulties. It is therefore essential to consider the fact that the element of interconnectedness may also have its negative effects as this can be determined in the recent economic crisis (James, & Steger, 2014).
This therefore gives an impression of the fact that the advent of a global economy may increase the risks of states being affected by different issues which may begin in a single country and stretch to different nations with this affecting the manner in which functions are conducted. Additionally, a countries economy may also be affected as a result of this crisis.
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It is therefore essential to determine that the element of globalization has overally impacted the international systems in a significant way by making states turn out to be interconnected through trade and independent. This therefore determines the fact that this contemporary society is not concerned with the independence of a single state but takes a collective responsibility in uniting the whole states for different purposes (Nederveen, & Dasgupta, 2009).
The issues that affect different nations are therefore solved through a collective approach rather than the engagement of individual states in finding solutions to those issues. It is significant to point out to the fact that intergovernmental organizations, global financial institutions, and the private sector organizations are the products of globalization and take the roles of solving the challenges that different economies and nations face in the development of a global market.
Conclusion
Globalization refers to an approach that engages people, business entities, companies and governments from different regions in freely interacting with each other in an effective manner. It is essential to consider the fact that the element of interaction between people from different regions is enhanced by particular parameters that include information technology, international trade, infrastructures, engagement in business activities.
The ideal of exploiting different resources from various regions and social media.it is therefore imperative to consider the fact that one of the implications of globalization is in its increased rise of international commercial transactions that have opened opportunities for cross border trade on both small and large scale.
Over the past, it is essential to consider that it was challenging to find developed economies engaging in trade with the developing countries. Globalization has therefore seen States turning out to be interdependent through the implementation of free-trade that has enhanced the opening of national boarders for the purposes of trade (Nederveen, & Dasgupta, 2009).
As a result of globalization, companies now have an easier way of setting up branches and different production sites in other nations where the market conditions remain favorable for a company. Additionally, globalization has also in this contemporary time made international trade easier by incorporating online business transactions, a factor that has made it simpler for people to transact.
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