Internet Addition Essays - Behavioral Addiction, Internet Culture

Internet Addition Research Paper Theme: Social Impact of the Internet 8 October 1997 ABSTRACT The Internet is the largest source of information in the world today. With its web sites and chat rooms, it is a means of communicating with people in places all over the face of the earth. Since its conception in 1973, the Internet has grown at a whirlwind rate. 51 million adults, were on-line as of the second quarter 1997 in the United States alone. Some say that the Internet is so enjoyable that it is almost addictive. The problem is that researchers are beginning to agree with them. Studies are revealing that there may be an actual form of addiction involved with over-use of the Internet. Identifying which category of addiction the Internet falls into is the problem. There are no real answers yet because research in this area is at the beginning stages. While lost in this so called Cyber Community for long periods of time, people are neglecting other important activities like; time with the family, socializing, work and health concerns. One of the most extensive studies on Internet Addiction to date was conducted by Dr. Kimberly S. Young of the University of Pittsburgh at Bradford. In her study, she revealed concrete evidence supporting the Internet Addiction claim. However, help for web addicts is available. There are several web sites available for the treatment of Internet addiction, as well as counseling centers and clinics. Is it Live, or is it Internet? Internet Addiction The Internet is the largest most versatile source of information in the world today. With its web sites and chat rooms, it is a means of communicating with people in places all over the face of the earth. But with all this power at our fingertips, are there any negative impacts of using this interface? Are we as simple humans capable of interacting with such a powerful communication source. Recent studies are beginning to uncover evidence that would suggest that maybe some of us are not so capable of dealing with this technology. In fact, as more research is conducted, experts are finding that the Internet may even be addictive! Development of the Internet began about 15 years ago. In 1973 the U.S. Defense Research Projects Agency initiated a program to research the techniques and technologies for inter-linking various types of networks.1 The objective was to develop communication protocols that would allow networked computers to communicate transparently across multiple, linked networks. This was called the internetting project and the system of networks that emerged from the research was known as the Internet. Since that time, various other research projects, to include those conducted by the U.S. National Science Foundation and the National Aeronautics and Space Administration, have shaped and tailored this project to give us the Internet as we know it today. (1) The Internet has now grown to include over 4500 Service Providers in the United States alone. A survey by Christian Huitema of Bellcore indicated that there were 26 million host computers on the Internet as of September 1997.2 A survey conducted by Intelli Quest Information Group Inc. showed that 51 million adults, age 16 or older, were on-line as of the second quarter 1997 in the United States alone.3 With such a large portion of the population swimming in this seemingly never-ending sea of information, what is the real impact of the Internet on society? It seems that the majority of society thinks the Internet is the greatest invention since the telephone. This is probably best justified by the whirlwind rate at which the Internet grows. In fact, some say that the Internet is so enjoyable that it is almost addicting! The problem is that recent studies have shown that the Internet may not only be addicting because it is enjoyable, but that a fairly large number of users are experiencing addiction of a clinical form.4 Identifying which category of addiction the Internet falls into is another problem. There are no real answers yet because research in this area is at the beginning stages. A few researchers are comparing the Internets effects to marijuana as a psychostimulant. They argue that the chemicals in marijuana activate the same stimuli as the Internet.5 Most researchers to this date do, however, agree

Stereotyping Essays

Stereotyping Essays Stereotyping Essay Stereotyping Essay Stereotyping has always been viewed as a form of prejudice that interferes with the harmonious relationships of people.   But, there are some groups that view stereotyping as advantageous. During a diversity management session, a manager suggests that stereotypes are a necessary part of working with others. â€Å"I have to make assumptions about what`s in the other person`s head, and stereotypes help me to that,† she explains. â€Å"It`s better to reply on stereotypes than to enter a working relationship with someone from another culture without any idea of what they believe in!† This statement of the manager has some merits, as well as problems. Based on current research, what does stereotyping bring into the work environment? Does stereotyping lead to more advantages than disadvantages? If stereotyping results to negative consequences, how can these be minimized or managed?What is stereotyping?The most definitive definition of stereotyping mu st be assembled from various sources so that any biases in definitions must be removed. In doing so, three important aspects about stereotyping have been discovered. First, stereotyping is based on either initial or early judgment.   Second, stereotyping has basis. This means that physical, social, historical, economic, cultural, geographical, and emotional events create stereotypes. For example, the 9-11 terrorist attacks placed almost all people from the Middle East a member of the Al Qaeda (Wharhaftig 1991).. And lastly, the third aspect of stereotyping has many forms. That is, there can be stereotypes based on gender, age, socio-economic status, religion, and race. In the workplace and within a country, the most common form of stereotyping is based on race. For example, the progressive country of Singapore is composed of the Chinese, the Malays, the Indians, the Eurasians, and other races. Racial stereotyping exists in Singapore (Zhuang 2006). In all three aspects of stereotyp ing, there is no bias towards the negative consequences. It appears that stereotyping may have advantages, especially in the workplace.Why is stereotyping beneficial?In the workplace, stereotyping becomes an important part of decision making, especially when the manager is forced to come up with a decision based on incomplete information.   The argument against this reason is that the manager should have obtained all necessary information so that he would not make a prejudiced decision. Unfortunately, some economists find that the benefits of obtaining more information do not exceed the disadvantages of quickly making a stereotypical decision.   Thus, one strong reason for employing stereotyping is economics. In Europe for example, the strict labor laws prevent many employers from firing workers who do not exactly meet their expectations. Thus, the employer uses stereotyping. If an employer does not heed his preconceive notions and hire someone who does not physically appear as capable, perhaps the beard and hair are too long and the clothes are sloppy, in order to give this applicant a chance, the employer may end up with a lazy worker and this is an economic loss to the company (Malek 2006).Aside from economics, stereotyping is also beneficial in the field of anthropological and cultural studies. The way that social scientists classify culture, into high-context and low-context culture, is an example of stereotyping. High-context culture is composed of people who are more group-oriented, such as most Asians. On the other hand, low-context culture is composed of people who are more individualistic, such as North Americans (Burgess 2003). If speaking before a group of people, the lecturer must take into consideration the nature of the audience. Is it high-context or low-context? In doing so, the speaker will be more effective.What problems does stereotyping bring?Stereotyping also presents problems in the workplace especially when it is typically based on wrong assumptions. A female worker, because of a pretty face, will most probably be stereotyped as less intelligent than the other workers. While there are instances when stereotypes are helpful, there are also instances that stereotypes create a hostile environment in the workplace. With a hostile workplace environment, the whole organization cannot function effectively and efficiently. Stereotyping may also lead to lawsuits, especially in countries where there are strict laws against gender, age, and race discrimination (Hoffman Hurst 1990). Thus, even if stereotyping is pervasive in all aspects of human interaction (Parker, Archer Scott 1992), there is a need to take actions that will reduce stereotyping and minimize or manage its negative consequences.How to minimize and manage stereotyping?There are many books and articles that offer various ways of dealing with stereotypes. For example, Burgess (2003) suggests that media must take more responsibility so that stereotyping is not developed easily especially in children. And then, Breslin (1991) suggests that a person must always focus on the individual. But such a method may not be easily implemented, especially when there are cultural differences. It would be interesting to compare two nations and the different ways that they manage racial stereotypes. The United States deal with racial stereotypes by recognizing the uniqueness of each race. Thus, a Chinese-American is aware of his cultural heritage from China. On the other hand, the government of Singapore suppressed open discussion of racial differences. As a result, a Chinese-Singaporean is only knowledgeable about being a Singaporean, but not about being Chinese (Moore 2000). Which method is better? There is no accurate or morally acceptable answer. Therefore, in managing and minimizing the negative consequences of stereotyping, there must be a scientific approach that focuses on how stereotyping or the early pre-judgments of people can change throu ghout time.Allport (1954) described two ways of changing stereotypes: bookkeeping and conversion. In bookkeeping, the manager accommodates new information that does not agree with the original stereotype. It is a slow process but this is the usual path that people take when they have strong stereotypes of others. Conversion, on the other hand, is a radical change of the preconceived image when a contradictory fact is revealed. For example, if an American coworker is stereotyped as arrogant and he showed humility, then the stereotype is removed.   By focusing on these two processes, the management can deal with the negative consequences of stereotyping.ConclusionStereotyping presents advantages from the perspective of economics, effective communication and cultural studies. However, in the workplace, stereotyping will most likely bring about conflict, hostilities, lower production, and even lawsuits. These negative consequences must be minimized. Unfortunately, stereotyping is prev alent and often utilized. Removing stereotypes, therefore, is neither possible nor practical. But the management can help change, not remove, stereotypes by modeling two processes, bookkeeping and conversion. These two processes happen as more information about the workers is revealed and longer working relationships are carried out. Stereotyping Essays Stereotyping Essay Stereotyping Essay Stereotyping has become so prevalent in the business world. It is as if people have created a giant system that categorizes people and groups into classes. In todays international business world, it is commonplace to work with people from different cultures and thus stereotyping will inevitably exist especially when dealing with people from diversified backgrounds. Stereotypes is defined as A fixed impression which conforms very little to the facts it pretends to represent and results from our defining first and observing second (Katz Brady 1935, cited In Schneider 2004, p. 6). American Journalist Walter Lifespan introduced the concept stereotyping In his 1922 book Public Opinion as a means of describing the way society set about categorizing people -stamping human beings with set of characteristics ( Nacho Lease 1992, n. P). Stereotypes as deflations are usually link to as offensive: they have negative connotations. Elderly are absent minded, athlete as dumb, mother-in-law as troub le maker. And you can easily fill in many others that are far more offensive. But there are also stereotypes which are costive, Asian Americans are smart and hardworking, Hispanics are family oriented, black is good athletes and women are kind and caring (McCrea, Stanton Weston 1996, IPPP). In an organization context, manager tends to engage In stereotypes because drawing on the cognitive Ideas of Lifespan (1992) and Laptop (1954) that as human beings, we need to simplify and categorize the social world (Hint 2000, p. 20). Machines and Tetravalent (2007) states, It Is Impossible to recall the entire unique characteristic of the employee that they have work with. They do not have much information when hey first meet. Therefore they rely extensively on stereotypes to fill in missing pieces. Negative perception views of employer through stereotypes usually limit the persons ability to contribute to the company (Stanton, 2000). Women in the past have been excluded from specific occupation such as engineering. Studies indicate that females and males hold negative stereotypes about the ability of women to be effective engineers. Likewise, to be a good mother, you have to dedicate a lot of time and energy to It and therefore there is this belief that you have less time and energy for ark and so you cant do a good Job. Thus, a woman who Is a mother Is often denied the opportunity to move forward and that Is detrimental to women. This forms a halo effect If a general Impression Is drawn based on a single characteristic (Robbins et al. 1998 p. 130). Easier since it permits us to maintain consistency. It is less difficult to deal with an unmanageable number of stimuli if we use stereotypes (Robbins et al. 1998, p. 128). For example, if a company is hiring a sales manager, the candidate who is young and a fresh graduate will likely to get the Job compared to a candidate who is older in age, aired and with children. The business manager perceives that it will be easier to engage in people who is y oung and has motivation than people who is more devoted to their family and children than with Job responsibility. This supports the managers statement that it is better to rely on stereotypes than engaging with someone of another culture. Advantages of stereotyping have its limitation. Problem occurs when we inaccurately stereotype especially when we speed read others, drawing incorrect pictures because we see what we want to see resulting in unwarranted conclusions from an ambiguous situation. For example, all accountants are not quiet and introspective, just as all salespeople are not aggressive and outgoing. Stereotype in recruitment interviews will hinder the company of an opportunity to recruit the right candidate when interviewers make instinctive Judgment that are often inaccurate which are based on appearance, racial, gender, education level and age. For example Overweight people are viewed in very negative terms, such as being lazy and undisciplined and lacking in self control, and they face widespread coordination'(Allan 1982, cited in Blaine 2000 p. 144). Inevitably, the interviewer will stifle that individuals imagination, initiative, sense of responsibility, and most importantly, his or her investment in the organization. If stereotyping is put in practice in a diversified management, it will become the biggest hurdle in growing developing talent in the organization by not capitalizing on peoples knowledge and such discrimination crushes entrepreneurial spirit. The organization will suffer because no senior management knows or can do everything. A stereotypical assumption about class kills everything that the company is working towards, including profits. Therein, leaders who are serious about fully engaging and leveraging the knowledge of the work force in the enterprise must be adamant about confronting these ingrained views to ensure the companys success, both in the short and long-term. Singapore is a paper chasing society especially in public sector as it still banks on typical assessment methodologies that rely too heavily on academic grades, degrees from top schools, prior industry experience and subjective interview results. Most Job positions are primarily determined by the academic grades and the working experience of the candidates. Thus, civil servants holding middle management level and above are local university graduates with good academic grades. Women in Singapore today have achieved great improvement in various aspects of men. Unfortunately, at the organizational level, women are still under-represented, facing psychological and corporate barriers as they try to move ahead in their careers. Based on Statistic Singapore workforce, the percentage of male holding the cost of administrative, managerial and professional Jobs are higher than females. Major Jobs for women are still dominantly employed in production and clerical work making them more vulnerable to economic fluctuation and retrenchment, low pay and little chance for advancement. This explains why there is still an income gap between female and male having the same Job scope. In short, Old stereotypes can be hard to change as men by virtue of their gender have higher status than women (Basso 1992 IPPP). Todays workforce (and society) demographics are more complex and hybrid than ever before and there is rarely any such thing as pure culture anymore. Thus, despite the fact that stereotyping is a natural method of classification and has useful functions under certain circumstances, it should not be used a standard platform to assess and rely on when it comes to hiring the right person for the company. An effective recruitment process will reduce the subjective element in interviews, increase the success rate of choosing the right candidate and hence cost saving for the company. References: Bigness. Com/papers/30247/Stereotyping/

Abortion Essay Example | Topics and Well Written Essays - 750 words

Abortion - Essay Example This discussion exposes these untruths that have been reported and are widely perceived as facts. There is little freedom of choice for women who are experiencing an unwanted pregnancy. The women themselves usually wish to bring their baby to full term. Other powerful influences in her life such as husbands/boyfriends, parents and friends are generally the forces that exact pressures on her to terminate the pregnancy. â€Å"Eight out of 10 women surveyed after abortion said they would have given birth if they’d had support and encouragement from family and friends† (Reardon, 2002). It’s the abortion that, in many cases, is unwanted by the woman, not the baby. Most often, the father of the child, not wishing to accept responsibility, may beg or even threaten a woman until she agrees to the abortion. â€Å"In 95 percent of all cases the male partner played a central role in the decision† (Zimmerman, 1977). This and other studies have illustrated clearly that most women decide against their own conscience. Legal abortion enables fathers to force their wi ll on mothers. Some women resort to abortion in desperation because they fear continued abuse. That fear is substantiated as women who refuse to abort have been subjected to serious abuses which have escalated to murder if the women still persists in her refusal. Murder is the leading cause of death for pregnant women and for what other motive could there be? â€Å"64 percent of women surveyed report being pressured by others into unwanted abortions† (Reardon, 1992).   Ã‚  Immediately following an abortion, the one(s) coercing the decision are relieved and seldom, if ever, give the inconvenient issue another thought. Women, on the other hand, suffer long afterwards, racked by overwhelming guilt and agonizing over their irreversible decision. This pain may last a lifetime as they are never able to forgive themselves

Discussion of Three Wishes for Cinderella and other filmed versions Essay

Discussion of Three Wishes for Cinderella and other filmed versions - Essay Example The portrayed glass slipper has critical and intensive meaning and denotation by consideration of varying aspects. They symbolize or infer the prestige of the princess due to the large price paid to acquire one and also represent the delicateness of the prince. The prince has physically light and elegant appearance to be able to put fittingly on the shoes without even destroying or shattering them. The final symbolism presented by the glass slipper indicates of Cinderella ability to comfort to wear and dance with the grace. This action presents a picture of mettle as normally glass slipper is typically uncomfortable. The Godmother features on few versions of the Cinderella and thus he is uncommon character in the Cinderella narrative as elaborated by Perrault’s version of the account. With reference other varying versions of Cinderella, possibly in other cultures, frequently the heroine acquires aids from the deceased mother or even nanny. The fairy godmothers account is relat able to the in Western lifestyle as Perrault elaborates and even the following accounts from Disney. The figure functions of the portrayed versions all presents miraculous and feel-superior fantasy that brings together the community and appeals to every generation. The film â€Å"Three Wishes for Cinderella† informs of historic and classic Cinderella tale disregarding a hint of irony. Cinderella is played by Libuse Sanfrankova. This lady lives in a quaint village securely hidden into a wintry bush adjacent to a local castle. Her stepmother and sister green-eyed of her beauty, happiness and good-nature, try to saddle her with a life of drudgery. Their worst torture is to dispense two types of seeds on the ground for Cinderella to separate. Though it is tedious and random, the underprivileged maiden calls on affable doves to assist. The movie is typically a live action and is cool to see birds

Majority-Minority Question in the Writings of Gandhi and Jinnah Essay Example for Free

Majority-Minority Question in the Writings of Gandhi and Jinnah Essay Two major political leaders stand out in early twentieth century history of India. These two men are Mahatma Gandhi and Mohammed Ali Jinnah. In the lead up to the demand of Indian political leaders for independence from British colonial rule, a major political party was formed, and named ‘The Indian Congress Party’. All areas of British colonial India was represented in the Congress party. British colonial India was made up of people of many religions; the two major ones being Hinduism and Islam. Hindus were in the majority, while Muslims were in the minority, though a sizable minority. Both Gandhi and Jinnah were members of Congress Party. The initial push for independence from British colonialism was supported by people of all religions and from all regions. Of the main actors in the Indian independence movement, Mahatma Gandhi advocated a single united India composed of people of all religions in a secular constitutional democracy. Mohammad Ali Jinnah on the other hand, wanted an India made up of two states of equal parity, Pakistan and Hindustan. Hindustan would be ruled by the majority Hindus while Pakistan would be ruled by the minority Muslims, not as a democracy, but as an Islamic state. His difference of opinion with other Congress Party leaders like Gandhi, led Jinnah to leave Congress Party and to join ‘The Muslim League’. The inability of the two different and extreme positions to reach a consensus, eventually led to the division of British colonial India into two different countries at independence in 1947: India and Pakistan. Gandhi’s Position on Indian Independence Mahatma Gandhi was first and foremost a Hindu. When Gandhi entered Indian politics by joining the Indian Congress Party, he had three major objectives in view. The first was to unite all the people from diverse regions and religions into one united, indivisible India. The second was to awaken in all Indians a sense of nationalism and moral rearmament. The third was to use non-violent civil disobedience to force the British colonialists to grant India both political and economic independence. His speeches and writings were tailored towards these three objectives. Prior to Gandhi’s entry into Indian politics, there had been agitations for political autonomy by Indians. Many of these agitations had turned violent. The British on their part forcefully put down these violent protests, with consequent heavy loss of life of protesting Indians. Gandhi institutionalized non-violent protests as an effective method of forcing British colonialists to grant, first economic concessions and later political self determination to Indians. One of Gandhi’s most quoted famous speeches is one address to all Britons and given in 1942. Leave India to God. If that is too much, then leave her to anarchy. (Gandhi, May 1942) ‘†During the struggle for freedom, Gandhi had written this speech as an appeal To Every Briton to free their possessions in Asia and Africa, especially India†Ã¢â‚¬â„¢ (Philips and Wainwright, 567). In order for both Gandhi’s Indian Congress Party and the Muslim League to present a common front to the British for a unified Indian independence, Gandhi had meeting with Jinnah on many occasions. However, because of their diametrically opposed positions on the majority/minority issue, their talks yielded no positive results. While Gandhi and his Congress party wanted a unified India with a secular constitutional democracy, Jinnah and his Muslim League wanted a two state structure with the Muslim minority being granted political parity with the Hindu majority. Thus the stage was set for division of India into two separate political entities, one secular and the other religious. Jinnah’s Position on Hindu/Muslim Parity The stance of the Muslim minority of British colonial India was articulated by Jinnah in his speeches and talks with British colonial administrators and Gandhi. ‘In 1940 Jinnah said So far as I have understood Islam, it does not advocate a democracy which would allow the majority of non-Muslims to decide the fate of the Muslims’ (Quaid-e-Azam, Vol II) ‘†Also in 1940 Jinnah spoke of how the Muslims constituted not a mere minority, but a nation and must have their own homeland. (Gwyer and Appadorai, 1957) Hence from his speeches and writings, Ali Jinnah left no room for meaningful compromise with those like Gandhi, who wanted a unified independent India, with a secular democratic constitution. Jinnah and the Muslim minority in India feared that the Hindu majority would dominate them and subjugate them in reprisal for the way the Muslim rulers of pre-colonial India had subjugated the Hindu populace which they ruled. In the words of Burke, ‘†At best, Jinnah and his colleagues were apprehensive of the intentions of the Hindu-dominated Congress towards the Muslims, and its ability and willingness to provide for and facilitate the progress and well-being of the minorities. In short, they were seeking to â€Å"escape the yoke of the more numerous Hindus. †Ã¢â‚¬â„¢ (Burke, 1973) NOTES 1. Philips and Wainwright, eds. The Partition of India: Policies and Perspectives 1935-1947. Cambridge, MA: MIT, 1970. 2. Speech delivered at Aligarh, March 6 1940, Speeches, Statements and Messages of the Quaid-e-Azam, Vol II, Khurshid Yusufi, Bazm-i-Iqbal, Lahore 3. Speech at Lahore Session of the All India Muslim League, March 22, 1940,Speeches and Documents on the Indian Constitution 1921-47,Vol II, Gwyer and Appadorai, 1957 4. Burke, S. M. Pakistan’s Foreign Policy: An Historical Analysis (London: Oxford University Press, 1973) p. 65. Bibliography 1. Burke, S. M. Pakistan’s Foreign Policy: An Historical Analysis (London: Oxford University Press, 1973) p.65. 2. Philips and Wainwright, eds. The Partition of India: Policies and Perspectives 1935-1947. Cambridge, MA: MIT, 1970. 3. Speech delivered at Aligarh, March 6 1940, Speeches, Statements and Messages of the Quaid-e-Azam, Vol II, Khurshid Yusufi, Bazm-i-Iqbal, Lahore 4. Speech at Lahore Session of the All India Muslim League, March 22, 1940,Speeches and Documents on the Indian Constitution 1921-47,Vol II, Gwyer and Appadorai, 1957 Internet Sources 5. Gandhi, May 1942, quoted in â€Å"The Partition of India† http://www. english. emory. edu/Bahri/Part. html

How The Product Will Be Marketed :: Business and Management Studies

How The Product Will Be Marketed The trainers will have to be repositioned in my adverts to appeal more to elderly people, which will mean finding the areas of current trainer adverts that are targeted at younger people and replace them with alternatives which are more aimed at older people. This should be done but I must make sure that the product is still represented how I want it at the end of my advert. I would like my product to be seen by older folks as something that can give them more speed, balance, and a physical advantage, whilst still being comfortable and with a smart appearance for a pair of trainers. Associating the product with these characteristics can do this. The Nike trainer advert I described in the introduction was of two sportsmen beating a man in a fight due to their amazing speed, given to them by their Nike footwear. If I was to make this appeal to over 60s then I would have to replace the two Nike-endorsing athletes with older alternatives, and to complete all my aims in general I would have to add something about how the trainers give you a more sophisticated look. Also my questionnaire revealed that 44% of elderly people believe that inflexibility in a shoe is the worst characteristic so this must be avoided and overcome. For my TV advert I have decided to have the camera focus the viewers on a man who is working out hard and training for a race, and he is talking how it has taken him so long to get here and how he's devoted his life to it. Then in the race an old man wearing Donaldsons trainers beats him. This links Donaldsons to achievement and success, and will appeal to older people because it shows how Donaldsons trainers can make them do things they could only do when they were young. Next in the advert the man is at a press conference in a suit still wearing the trainers, and he praises the shoes and claims they are why he won. This scene relates the brand to elegance and having a smart appearance, if a famous, successful man is wearing the Donaldsons with his suit. Also when he claims the Donaldsons made him win it shows that it doesn't matter how much physical ability you have beforehand, Donaldsons can make you amazingly good.

The Role of Fdi in India

FDI Policy in India FDI as defined in Dictionary of Economics (Graham Bannock et. al) is investment in a foreign country through the acquisition of a local company or the establishment there of an operation on a new (Greenfield) site. To put in simple words, FDI refers to capital inflows from abroad that is invested in or to enhance the production capacity of the economy. [3] Foreign Investment in India is governed by the FDI policy announced by the Government of India and the provision of the Foreign Exchange Management Act (FEMA) 1999.The Reserve Bank of India (‘RBI’) in this regard had issued a notification,[4] which contains the Foreign Exchange Management (Transfer or issue of security by a person resident outside India) Regulations, 2000. This notification has been amended from time to time. The Ministry of Commerce and Industry, Government of India is the nodal agency for motoring and reviewing the FDI policy on continued basis and changes in sectoral policy/ sect oral equity cap. The FDI policy is notified through Press Notes by the Secretariat for Industrial Assistance (SIA), Department of Industrial Policy and Promotion (DIPP).The foreign investors are free to invest in India, except few sectors/activities, where prior approval from the RBI or Foreign Investment Promotion Board (‘FIPB’) would be required. FDI Policy with Regard to Retailing in India It will be prudent to look into Press Note 4 of 2006 issued by DIPP and consolidated FDI Policy issued in October 2010[5] which provide the sector specific guidelines for FDI with regard to the conduct of trading activities. a) FDI up to 100% for cash and carry wholesale trading and export trading allowed under the automatic route. ) FDI up to 51 % with prior Government approval (i. e. FIPB) for retail trade of ‘Single Brand’ products, subject to Press Note 3 (2006 Series)[6]. c) FDI is not permitted in Multi Brand Retailing in India. Entry Options For Foreign Players prior to FDI Policy Although prior to Jan 24, 2006, FDI was not authorised in retailing, most general players had been operating in the country. Some of entrance routes used by them have been discussed in sum as below:- 1. Franchise AgreementsIt is an easiest track to come in the Indian market. In franchising and commission agents’ services, FDI (unless otherwise prohibited) is allowed with the approval of the Reserve Bank of India (RBI) under the Foreign Exchange Management Act. This is a most usual mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route. 2. Cash And Carry Wholesale Trading 00% FDI is allowed in wholesale trading which involves building of a large distribution infrastructure to assist local manufacturers. [7] The wholesaler deals only with smaller retailers and not Consumers. Metro AG of Germany was the first significant global player to enter India through this route. 3. Strategic Licensing Agreements Some foreign brands give exclusive licences and distribution rights to Indian companies. Through these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees.Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd 4. Manufacturing and Wholly Owned Subsidiaries. The foreign brands such as Nike, Reebok, Adidas, etc. that have wholly-owned subsidiaries in manufacturing are treated as Indian companies and are, therefore, allowed to do retail. These companies have been authorised to sell products to Indian consumers by franchising, internal distributors, existent Indian retailers, own outlets, etc.For instance, Nike entered through an exclusive licen sing agreement with Sierra Enterprises but now has a wholly owned subsidiary, Nike India Private Limited. FDI in Single Brand Retail The Government has not categorically defined the meaning of â€Å"Single Brand† anywhere neither in any of its circulars nor any notifications. In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note 3[8] that (a) only single brand products would be sold (i. . , retail of goods of multi-brand even if produced by the same manufacturer would not be allowed), (b) products should be sold under the same brand internationally, (c) single-brand product retail would only cover products which are branded during manufacturing and (d) any addition to product categories to be sold under â€Å"single-brand† would require fresh approval from the government. While the phrase ‘single brand’ has not been defined, it implies th at foreign companies would be allowed to sell goods sold internationally under a ‘single brand’, viz. Reebok, Nokia, Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would not be allowed. Going a step further, we examine the concept of ‘single brand’ and the associated conditions: FDI in ‘Single brand’ retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required.If granted permission, Adidas could sell products under the Reebok brand in separate outlets. what is a ‘brand’? Brands could be classified as products and multiple products, or could be manufacturer brands and own-label brands. Assume that a company owns two leading inte rnational brands in the footwear industry – say ‘A’ and ‘R’. If the corporate were to obtain permission to retail its brand in India with a local partner, it would need to specify which of the brands it would sell.A reading of the government release indicates that A and R would need separate approvals, separate legal entities, and may be even separate stores in which to operate in India. However, it should be noted that the retailers would be able to sell multiple products under the same brand, e. g. , a product range under brand ‘A’ Further, it appears that the same joint venture partners could operate various brands, but under separate legal entities Now, taking an example of a large departmental grocery chain, prima facie it appears that it would not be able to enter India.These chains would, typically, source products and, thereafter, brand it under their private labels. Since the regulations require the products to be branded at the manufacturing stage, this model may not work. The regulations appear to discourage own-label products and appear to be tilted heavily towards the foreign manufacturer brands There is ambiguity in the interpretation of the term ‘single brand’. The existing policy does not clearly codify whether retailing of goods with sub-brands bunched under a major parent brand can be considered as single-brand retailing and, accordingly, eligible for 51 per cent FDI.Additionally, the question on whether co-branded goods (specifically branded as such at the time of manufacturing) would qualify as single brand retail trading remains unanswered. FDI in Multi Brand Retail The government has also not defined the term Multi Brand. FDI in Multi Brand retail implies that a retail store with a foreign investment can sell multiple brands under one roof. In July 2010, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce circulated a discussion paper[11] on allowing FDI in multi-brand retail.The paper doesn’t suggest any upper limit on FDI in multi-brand retail. If implemented, it would open the doors for global retail giants to enter and establish their footprints on the retail landscape of India. Opening up FDI in multi-brand retail will mean that global retailers including Wal-Mart, Carrefour and Tesco can open stores offering a range of household items and grocery directly to consumers in the same way as the ubiquitous ’kirana’ store. Foreign Investor’s Concern Regarding FDI Policy in IndiaFor those brands which adopt the franchising route as a matter of policy, the current FDI Policy will not make any difference. They would have preferred that the Government liberalize rules for maximizing their royalty and franchise fees. They must still rely on innovative structuring of franchise arrangements to maximize their returns. Consumer durable majors such as LG and Samsung, which have exclusive franchisee owned stores, are u nlikely to shift from the preferred route right away.For those companies which choose to adopt the route of 51% partnership, they must tie up with a local partner. The key is finding a partner which is reliable and who can also teach a trick or two about the domestic market and the Indian consumer. Currently, the organized retail sector is dominated by the likes of large business groups which decided to diversify into retail to cash in on the boom in the sector – corporates such as Tata through its brand Westside, RPG Group through Foodworld, Pantaloon of the Raheja Group and Shopper’s Stop.Do foreign investors look to tie up with an existing retailer or look to others not necessarily in the business but looking to diversify, as many business groups are doing? An arrangement in the short to medium term may work wonders but what happens if the Government decides to further liberalize the regulations as it is currently contemplating? Will the foreign investor terminate t he agreement with Indian partner and trade in market without him?Either way, the foreign investor must negotiate its joint venture agreements carefully, with an option for a buy-out of the Indian partner’s share if and when regulations so permit. They must also be aware of the regulation which states that once a foreign company enters into a technical or financial collaboration with an Indian partner, it cannot enter into another joint venture with another Indian company or set up its own subsidiary in the ‘same’ field’ without the first partner’s consent if the joint venture agreement does not provide for a ‘conflict of interest’ clause.In effect, it means that foreign brand owners must be extremely careful whom they choose as partners and the brand they introduce in India. The first brand could also be their last if they do not negotiate the strategic arrangement diligently. Concerns for the Government for only Partially Allowing FDI in Retail Sector A number of concerns were expressed with regard to partial opening of the retail sector for FDI.The Hon’ble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on ‘Foreign and Domestic Investment in Retail Sector’, laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included: It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector.Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, hat the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere.Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. LIMITATIONS OF   THE PRESENT SETUP Infrastructure There has been a lack of investment in the logistics of the retail chain, leading to an inefficient market mech anism. Though India is the second largest producer of fruits and vegetables (about 180 million MT), it has a very limited integrated cold-chain infrastructure, with only 5386 stand-alone cold storages, having a total capacity of 23. 6 million MT. , 80% of this is used only for potatoes.The chain is highly fragmented and hence, perishable horticultural commodities find it difficult to link to distant markets, including overseas markets, round the year. Storage infrastructure is necessary for carrying over the agricultural produce from production periods to the rest of the year and to prevent distress sales. Lack of adequate storage facilities cause heavy losses to farmers in terms of wastage in quality and quantity of produce in general. Though FDI is permitted in cold-chain to the extent of 100%, through the automatic route, in the absence of FDI in retailing; FDI flow to the sector has not been significant.Intermediaries dominate the value chain Intermediaries often flout mandi nor ms and their pricing lacks transparency. Wholesale regulated markets, governed by State APMC Acts, have developed a monopolistic and non-transparent character. According to some reports, Indian farmers realize only 1/3rd of the total price paid by the final consumer, as against 2/3rd by farmers in nations with a higher share of organized retail. Improper Public Distribution System (â€Å"PDS†) There is a big question mark on the efficacy of the public procurement and PDS set-up and the bill on food subsidies is rising.In spite of such heavy subsidies, overall food based inflation has been a matter of great concern. The absence of a ‘farm-to-fork’ retail supply system has led to the ultimate customers paying a premium for shortages and a charge for wastages. No Global Reach The Micro Small & Medium Enterprises (â€Å"MSME†) sector has also suffered due to lack of branding and lack of avenues to reach out to the vast world markets. While India has continued to provide emphasis on the development of MSME sector, the share of unorganised sector in overall manufacturing has declined from 34. % in 1999-2000 to 30. 3% in 2007-08[12]. This has largely been due to the inability of this sector to access latest technology and improve its marketing interface. Rationale behind Allowing FDI in Retail Sector FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of single-brand retail was adopted to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India.FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196. 46 million under the category of single brand retailing w as received between April 2006 and September 2010, comprising 0. 16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloon Retail (India) Ltd ended 4. 84% up at Rs 441 on the Bombay Stock Exchange.Shares of Shopper’s Stop Ltd rose 2. 02% and Trent Ltd, 3. 19%. The exchange’s key index rose 173. 04 points, or 0. 99%, to 17,614. 48. But this is very less as compared to what it would have been had FDI upto 100% been allowed in India for single brand. The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner – foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow.By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate India’s intentions in liberal ising this sector in a phased manner. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country & its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers.It would also help bring about improvements in farmer income & agricultural growth and assist in lowering consumer prices inflation. Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade.Lastly, it is to be noted that the Indian Council of Research in International Economic Relations (ICRIER), a premier economic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of ‘big’ money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers.In light of the above, it can be safely concluded that allowing healthy FDI in the retail sector would not only lead to a substantial surge in the country’s GDP and overall economic development, but would inter alia also help in integrating the Indian retail market with that of the global retail market in addition to providing not just employment but a better paying employment, which the unorganized sector (kirana and other small time retailing shops) have undoubtedly failed to provide to the masses employed in them.Industrial organisations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of In dia (RAI) and Shopping Centers Association of India (a 44 member association of Indian multi-brand retailers and shopping malls) favour a phased approach toward liberalising FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with.The international retail players such as Walmart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Walmart, Germany’s Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalisation of FDI rules on multi-brand retail for some time. Thus, as a matter of fact FDI in the buzzing Indian retail sector should not just be freely allowed but per contra should be significantly encouraged.Allowing FDI in multi brand retail can bring about Supply Chain Improvement, Investment in Technology, Man power and Skill development,Tourism Development, Greater Sourcing From India, Upgradation in Agriculture, Efficient Small and Medium Scale Industries, Growth in market size and Benefits to government through greater GDP, tax income and employment generation. Prerequisites before allowing FDI in Multi Brand Retail and Lifting Cap of Single Brand Retail FDI in multi-brand retailing must be dealt cautiously as it has direct impact on a large chunk of population.Left alone foreign capital will seek ways through which it can only multiply itself, and unthinking application of capital for profit, given our peculiar socio-economic conditions, may spell doom and deepen the gap between the rich and the poor. Thus the proliferation of foreign capital into multi-brand retailing needs to be anchored in such a way that it results in a win-win situation for India. This can be done by integrating into the rules and regulations for FDI in multi-brand retailing certain inbuilt safety valves.For exam ple FDI in multi –brand retailing can be allowed in a calibrated manner with social safeguards so that the effect of possible labour dislocation can be analyzed and policy fine tuned accordingly. To ensure that the foreign investors make a genuine contribution to the development of infrastructure and logistics, it can be stipulated that a percentage of FDI should be spent towards building up of back end infrastructure, logistics or agro processing units.Reconstituting the poverty stricken and stagnating rural sphere into a forward moving and prosperous rural sphere can be one of the justifications for introducing FDI in multi-brand retailing. To actualize this goal it can be stipulated that at least 50% of the jobs in the retail outlet should be reserved for rural youth and that a certain amount of farm produce be procured from the poor farmers. Similarly to develop our small and medium enterprise (SME), it can also be stipulated that a minimum percentage of manufactured prod ucts be sourced from the SME sector in India.PDS is still in many ways the life line of the people living below the poverty line. To ensure that the system is not weakened the government may reserve the right to procure a certain amount of food grains for replenishing the buffer. To protect the interest of small retailers the government may also put in place an exclusive regulatory framework. It will ensure that the retailing giants do resort to predatory pricing or acquire monopolistic tendencies. Besides, the government and RBI need to evolve suitable policies to enable the retailers in the unorganized sector to expand and improve their efficiencies.If Government is allowing FDI, it must do it in a calibrated fashion because it is politically sensitive and link it (with) up some caveat from creating some back-end infrastructure. Further, To take care of the concerns of the Government before allowing 100% FDI in Single Brand Retail and Multi- Brand Retail, the following recommendat ions are being proposed :- Preparation of a legal and regulatory framework and enforcement mechanism to ensure that large retailers are not able to dislocate small retailers by unfair means.Extension of institutional credit, at lower rates, by public sector banks, to help improve efficiencies of small retailers; undertaking of proactive programme for assisting small retailers to upgrade themselves. Enactment of a National Shopping Mall Regulation Act to regulate the fiscal and social aspects of the entire retail sector. Formulation of a Model Central Law regarding FDI of Retail Sector Important highlights of Economic Outlook 2011-12 Agriculture grew at 6. 6% in 2010-11. This year’s monsoon is projected to be in the range of 90 to 96 per cent, based on which Agriculture sector is pegged to grow at 3. % in 2011-12! Industry grew at 7. 9% in 2010-11. Projected to grow at 7. 1% in 2011-12 Services grew at 9. 4% in 2009-10. Projected to grow at 10. 0% in 2011-12 Investment rate pr ojected at 36. 4% in 2010-11 and 36. 7% in 2011-12 Domestic savings rate as ratio of GDP projected at 33. 8% in 2010-11 & 34. 0% in 2011-12 Current Account deficit is $44. 3 billion (2. 6% of GDP) in 2010-11 and projected at $54. 0 billion (2. 7% of GDP) in 2011-12 Merchandise trade deficit is $ 130. 5 billion or 7. 59% of the GDP in 2010-11 and projected at $154. 0 billion or 7. % of GDP in 2011-12 Invisibles trade surplus is $ 86. 2 billion or 5. 0% of the GDP in 2010-11 and projected at $100. 0 billion or 5. 0% in 2011-12 Capital flows at $61. 9 billion in 2010-11 and projected at $72. 0 billion in 2011-12 FDI inflows projected at $35 billion in 2011/12 against the level of $23. 4 billion in 2010-11 FII inflows projected to be $14 billion which is less than half that of the last year i. e $30. 3 billion Accretion to reserves was $15. 2 billion in 2010-11. Projected at $18. 0 billion in 2011-12 Inflation rate would continue to be at 9 per cent in the month of July-October 2011.The re will be some relief starting from November and will decline to 6. 5% in March 2012. Foreign direct investment; net (BoP; US dollar) in India The Foreign direct investment; net (BoP; US dollar) in India was last reported at 11008159606. 75 in 2010, according to a World Bank report released in 2011. The Foreign direct investment; net (BoP; US dollar) in India was 19668790288. 40 in 2009, according to a World Bank report, published in 2010. The Foreign direct investment; net (BoP; US dollar) in India was reported at 24149749829. 71 in 2008, according to the World Bank.Foreign direct investment is net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This series shows total net, that is, net FDI in the reporting economy from foreign sources less net FDI by the reporting economy to the rest of the world. Data are in current U. S. dollars.This page includes a historical data chart, news and forecast for Foreign direct investment; net (BoP; US dollar) in India. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Services are the major source of economic growth, accounting for more than half of India's output with less than one third of its labour force. The economy has posted an average growth rate of more than 7% in the decade since 1997, reducing poverty by about 10 percentage points. Total 933. 2 100 2705. 0 100 231530. 1 100