St. Augustines Just War Theory And The Persion Gulf War On August 2nd,

St. Augustine's Just War Theory and the Persion Gulf War On August 2nd, 1990 the first Iraqi tanks crossed into Kuwait, as part of an invasion that marked the start of a six-month conflict between the United States and Iraq. These tanks were ordered to invade Kuwait by Saddam Hussein, the ruthless dictator of Iraq. The Iraqi troops looted Kuwaiti businesses and brutalized Kuwaiti civilians. Saudi Arabia began to fear that they may be invaded as well, and on August 7th they formally asked President Bush for US assistance. The US pledged to defend the Saudis, and to remove the Iraqis from Kuwait. Great masses of troops from many different nations were deployed in the Persian Gulf area. At 4:30 PM EST on January 16, 1991, the first aircraft with orders to attack Iraqi targets were launched from Saudi Arabia, marking the beginning of Operation Desert Storm. Dictators like Mr. Hussein cannot be allowed to take advantage of smaller countries like bullies after lunch money. There has to be someone to stop them, or they will gain more and more power and land, just as Adolf Hitler tried to do in World War II. That someone, in the case of Mr. Hussein, was the United States, along with a multinational coalition. The US had just cause in entering a war against Iraq because of Iraq's invasion of the small and defenseless nation of Kuwait. Actions such as that must be repulsed. Iraq had no just cause in invading Kuwait; their reasons were either obscure or for their benefit. The US had to help Kuwait regain their nation. In protecting the Saudis from invasion and removing the Iraqis from Kuwait the US had the right intention. The real reason the US decided to fight the Iraqis was to restore Kuwait's government and to defend Saudi Arabia. There was no underlying reason, such as to receive better prices on oil or to make the Kuwaitis indebted to the US so as to receive favors. Throughout the war, the US made clear their purpose and intent in fighting the Iraqis, and not on ce did they stray from it. Legitimate authority was established when the Congress voted to follow United Nations resolution 678, section two of which "Authorizes Member States co-operating with the Government of Kuwait, unless Iraq on or before 15 January 1991 fully implements, as set forth in paragraph 1 above, the foregoing resolutions, to use all necessary means to uphold and implement resolution 660 (1990) and all subsequent relevant resolutions and to restore international peace and security in the area." The vote to follow the resolution was as good as a declaration of war, as far as legitimate authority is concerned, and is in some ways better. The adoption of the resolution only authorized the use of force to remove Iraq from Kuwait. This limited the ability of our military to completely destroy Iraq's military or to drive Hussein from power. Our authority to remove Iraq from Kuwait was clearly legitimate. The Gulf War was fought with proportionality clearly in the leadershi p's mind. President Bush planned to get Iraq's troops out of Kuwait and then stop. He had no intention of carrying the war further. Although Bush would have dearly liked to have marched US troops toward Baghdad to destroy Hussein's government, he did not, because of the risk of heavy casualties, and because it went against the proportionality idea. The leaders who picked targets for our forces never targeted civilians. Civilians were killed, for sure, but they were not deliberately targeted. Non-combatant immunity is an important part of every war the US has been engaged in. The Iraqis definitely targeted civilians, as was quite evident by their SCUD attacks on Israel and Saudi Arabia. Many civilians and military personnel were killed by SCUDs during the course of the war. Civilians are not responsible for harm done to one's country, and therefore deserve immunity. Upon entering the conflict, The US obviously had a reasonable hope of success. The Iraqis had several hundred thousand poorly trained, poorly equipped, and poorly led troops, while the Allied forces numbered about 800,000. The allied troops were better trained, equipped, and led than the Iraqis. They were St. Augustines Just War Theory And The Persion Gulf War On August 2nd, St. Augustine's Just War Theory and the Persion Gulf War On August 2nd, 1990 the first Iraqi tanks crossed into Kuwait, as part of an invasion that marked the start of a six-month conflict between the United States and Iraq. These tanks were ordered to invade Kuwait by Saddam Hussein, the ruthless dictator of Iraq. The Iraqi troops looted Kuwaiti businesses and brutalized Kuwaiti civilians. Saudi Arabia began to fear that they may be invaded as well, and on August 7th they formally asked President Bush for US assistance. The US pledged to defend the Saudis, and to remove the Iraqis from Kuwait. Great masses of troops from many different nations were deployed in the Persian Gulf area. At 4:30 PM EST on January 16, 1991, the first aircraft with orders to attack Iraqi targets were launched from Saudi Arabia, marking the beginning of Operation Desert Storm. Dictators like Mr. Hussein cannot be allowed to take advantage of smaller countries like bullies after lunch money. There has to be someone to stop them, or they will gain more and more power and land, just as Adolf Hitler tried to do in World War II. That someone, in the case of Mr. Hussein, was the United States, along with a multinational coalition. The US had just cause in entering a war against Iraq because of Iraq's invasion of the small and defenseless nation of Kuwait. Actions such as that must be repulsed. Iraq had no just cause in invading Kuwait; their reasons were either obscure or for their benefit. The US had to help Kuwait regain their nation. In protecting the Saudis from invasion and removing the Iraqis from Kuwait the US had the right intention. The real reason the US decided to fight the Iraqis was to restore Kuwait's government and to defend Saudi Arabia. There was no underlying reason, such as to receive better prices on oil or to make the Kuwaitis indebted to the US so as to receive favors. Throughout the war, the US made clear their purpose and intent in fighting the Iraqis, and not on ce did they stray from it. Legitimate authority was established when the Congress voted to follow United Nations resolution 678, section two of which "Authorizes Member States co-operating with the Government of Kuwait, unless Iraq on or before 15 January 1991 fully implements, as set forth in paragraph 1 above, the foregoing resolutions, to use all necessary means to uphold and implement resolution 660 (1990) and all subsequent relevant resolutions and to restore international peace and security in the area." The vote to follow the resolution was as good as a declaration of war, as far as legitimate authority is concerned, and is in some ways better. The adoption of the resolution only authorized the use of force to remove Iraq from Kuwait. This limited the ability of our military to completely destroy Iraq's military or to drive Hussein from power. Our authority to remove Iraq from Kuwait was clearly legitimate. The Gulf War was fought with proportionality clearly in the leadershi p's mind. President Bush planned to get Iraq's troops out of Kuwait and then stop. He had no intention of carrying the war further. Although Bush would have dearly liked to have marched US troops toward Baghdad to destroy Hussein's government, he did not, because of the risk of heavy casualties, and because it went against the proportionality idea. The leaders who picked targets for our forces never targeted civilians. Civilians were killed, for sure, but they were not deliberately targeted. Non-combatant immunity is an important part of every war the US has been engaged in. The Iraqis definitely targeted civilians, as was quite evident by their SCUD attacks on Israel and Saudi Arabia. Many civilians and military personnel were killed by SCUDs during the course of the war. Civilians are not responsible for harm done to one's country, and therefore deserve immunity. Upon entering the conflict, The US obviously had a reasonable hope of success. The Iraqis had several hundred thousand poorly trained, poorly equipped, and poorly led troops, while the Allied forces numbered about 800,000. The allied troops were better trained, equipped, and led than the Iraqis. They were St. Augustines Just War Theory And The Persion Gulf War On August 2nd, St. Augustine's Just War Theory and the Persion Gulf War On August 2nd, 1990 the first Iraqi tanks crossed into Kuwait, as part of an invasion that marked the start of a six-month conflict between the United States and Iraq. These tanks were ordered to invade Kuwait by Saddam Hussein, the ruthless dictator of Iraq. The Iraqi troops looted Kuwaiti businesses and brutalized Kuwaiti civilians. Saudi Arabia began to fear that they may be invaded as well, and on August 7th they formally asked President Bush for US assistance. The US pledged to defend the Saudis, and to remove the Iraqis from Kuwait. Great masses of troops from many different nations were deployed in the Persian Gulf area. At 4:30 PM EST on January 16, 1991, the first aircraft with orders to attack Iraqi targets were launched from Saudi Arabia, marking the beginning of Operation Desert Storm. Dictators like Mr. Hussein cannot be allowed to take advantage of smaller countries like bullies after lunch money. There has to be someone to stop them, or they will gain more and more power and land, just as Adolf Hitler tried to do in World War II. That someone, in the case of Mr. Hussein, was the United States, along with a multinational coalition. The US had just cause in entering a war against Iraq because of Iraq's invasion of the small and defenseless nation of Kuwait. Actions such as that must be repulsed. Iraq had no just cause in invading Kuwait; their reasons were either obscure or for their benefit. The US had to help Kuwait regain their nation. In protecting the Saudis from invasion and removing the Iraqis from Kuwait the US had the right intention. The real reason the US decided to fight the Iraqis was to restore Kuwait's government and to defend Saudi Arabia. There was no underlying reason, such as to receive better prices on oil or to make the Kuwaitis indebted to the US so as to receive favors. Throughout the war, the US made clear their purpose and intent in fighting the Iraqis, and not on ce did they stray from it. Legitimate authority was established when the Congress voted to follow United Nations resolution 678, section two of which "Authorizes Member States co-operating with the Government of Kuwait, unless Iraq on or before 15 January 1991 fully implements, as set forth in paragraph 1 above, the foregoing resolutions, to use all necessary means to uphold and implement resolution 660 (1990) and all subsequent relevant resolutions and to restore international peace and security in the area." The vote to follow the resolution was as good as a declaration of war, as far as legitimate authority is concerned, and is in some ways better. The adoption of the resolution only authorized the use of force to remove Iraq from Kuwait. This limited the ability of our military to completely destroy Iraq's military or to drive Hussein from power. Our authority to remove Iraq from Kuwait was clearly legitimate. The Gulf War was fought with proportionality clearly in the leadershi p's mind. President Bush planned to get Iraq's troops out of Kuwait and then stop. He had no intention of carrying the war further. Although Bush would have dearly liked to have marched US troops toward Baghdad to destroy Hussein's government, he did not, because of the risk of heavy casualties, and because it went against the proportionality idea. The leaders who picked targets for our forces never targeted civilians. Civilians were killed, for sure, but they were not deliberately targeted. Non-combatant immunity is an important part of every war the US has been engaged in. The Iraqis definitely targeted civilians, as was quite evident by their SCUD attacks on Israel and Saudi Arabia. Many civilians and military personnel were killed by SCUDs during the course of the war. Civilians are not responsible for harm done to one's country, and therefore deserve immunity. Upon entering the conflict, The US obviously had a reasonable hope of success. The Iraqis had several hundred thousand poorly trained, poorly equipped, and poorly led troops, while the Allied forces numbered about 800,000. The allied troops were better trained, equipped, and led than the Iraqis. They were

Effective Classroom Management Essays

Effective Classroom Management Essays Effective Classroom Management Essay Effective Classroom Management Essay Effective Classroom Management When I was an undergraduate, I looked to strengthening my mathematics skills so I could know as much as possible about the subject area I was going to teach. I also knew that I would need other skills to teach in a high school classroom as well. In fact, I felt that in order to be an effective teacher, I needed to have good classroom management skills. The article I read on the subject is titled Effective Classroom Management: Teacher Preparation and Professional Development written by Regina M. Oliver and Daniel J. Reschly from Vanderbilt University. The paper starts out stating that classes with economically disadvantaged students tend to have disruptive behavior as a problem. This is why teachers need to have effective classroom management techniques. Without this, not only do the students described above have low achievement in the classroom but at-risk students fall prey to this as well when the teacher does not have firm control of his or her class. The article goes on to say that ongoing professional development is important for improving classroom management skills. This is a good way to help new teachers get some good ideas for their classes, as well as seasoned teachers who need to improve on their current management skills. There were two recommendations to schools that in theory would best help new teachers with much needed classroom management skills. The first is to provide teachers with instructional approaches through coursework and guided practice with feedback. This involves developing instructional material that students will find educationally relevant, a logical order related to skill development and immediate feedback to the student and to correct any errors the student has during the process of learning in the class. The second recommendation is to address those challenges that teachers face and to create a positive classroom context. This involves clearly stated rules for the classroom that are kept at a minimum, are positively stated, simple and appropriate to the developmental level of the students, and are aligned with school policy. With these rules in place, it is something that students know from the beginning and as long as they are constantly and consistently enforced, the students know exactly whatâ„ ¢s expected of them. They will know the consequences of their actions should they decide to break the rules. In conclusion, this article offered some interesting comments on effective classroom management. It also provided some recommendations for providing new and experienced teachers with professional development to help with their existing ideas on how to have a firm hold on classroom behavior. Another thing I liked about this article was that classroom management did not focus strictly on student behavior, but on the fact that the material being taught as well as the way it is being taught is key to keeping the students involved in the learning process rather than on other distractions. Reschly, Daniel J. Effective Classroom Management: Teacher Preparation and Professional Development. National Comprehensive Center for Teacher Quality Dec. 2007: 13.

Business law Research Paper Example | Topics and Well Written Essays - 1500 words

Business law - Research Paper Example There are tones of organizations turning to the arbitration processes whereby majority are avoiding courts and preferring to solve disputes through an arbitrator. Preference of this method of solving legal disputes has left numerous concerns as to whether all these parties are all for it. This is the basis for the choice for the articles below on arbitration, in order to evaluate the process keenly to eliminate any uncertainties pertaining to it as well as provide a scrutiny of what the legal system requires to do so as to enforce arbitration processes and close loop holes that are manifesting in the mechanism and utilize it properly since despite many encumbrances facing it, it is a cost effective procedure that can be very popular among contracting parties. â€Å"Forced Arbitration: Corporations Opting Out of Justice and Fairness† and â€Å"Delaware Rapid Arbitration Act to Take Effect in May 2015† are two articles of my choice that will help me scrutinize the process of arbitration and the reasons why organizations are preferring this method of dispute resolution. The scrutiny of these articles will enable me understand arbitration especially that which touches on business organizations and its ability to provide justice to the aggrieved parties. This study will also help identify strengths and areas of improvement in the process in the legal system concerning Arbitration. â€Å"Forced Arbitration: Corporations Opting Out of Justice and Fairness† article contends that the contractual agreements giving permission to allow arbitration as a means of resolving conflicts. This contractual agreement is present in many businesses and individuals sign without the knowledge that they have embedded their signature to permit such a process. This is the reason why the article calls the process as a forced arbitration because majority of participant are unaware of

Approach to care Essay Example | Topics and Well Written Essays - 1250 words

Approach to care - Essay Example The extra cells form a mass of tissues which take the shape of a tumor. Apart from a number of preliminary tests, positive diagnosis is made by investigation of a biopsy sample of concerned cancer tissue. Cancer staging is mostly decided by biopsy outcomes which provide definite clues to decide the level of the cancer type and the magnitude of cancer spread. Staging also enables the caregivers to arrive at the conclusion of treatment modes. Staging is also pointer to the aggressiveness and indicator as to how widespread the cancer in the body is. Loss of desire for food or inexplicable weight loss, exhaustion, cachexia, headaches, bone or joint pain, neurological indications, such as wobbly walk or memory loss, neck or facial enlargement, unusual bleeding, hoarseness in voice etc. are the warning signs for the impending attack of cancer. The most important part of the treatment mode is the concerned cancer patient. The treatment protocol must fit into the needs of the individual, on the basis of various reports before the caregiver, including that of biopsy. Generally, more than one cancer specialists are involved in taking the decision about the modalities of treatment. The treatment will include one or all of the following procedures, depending on the stage of the cancer. They are: â€Å"surgery, chemotherapy, and radiation therapy†. (Davis, 2014) At this stage, the caretaker has taken the decision about the nature of cancer and the treatment modalities. Cancer is the unrestrained growth of nonstandard cells anywhere in the body. The causes of cancer are many and some remain unknown till date. The broad, potential cause of cancer is the abnormal development of the body cell/s. Such development may be due to genetic makeup and combination of other factors. Specific enumeration of causes that result in cancer is impossibility. With the details available through scientific research, caregivers now

Multiculturalism in Human Resource Management Essay

Multiculturalism in Human Resource Management - Essay Example I believe that the essence of diversity, cultural or otherwise, is the co-existence of different attributes within a single social environment. For instance, if there are different cultures involved, but each culture is encountered within the context of its own social milieu, then there is multiculturalism but no diversity, because the employees are not members of a minority culture subjected to a dominant culture. On the other hand, if the variety of cultures were encountered within the United States, then one might say that cultural diversity existed. The essence of â€Å"diversity† is pluralism within a single context, â€Å"diversity in the creation of a common society† (McGraw & Formicola, 2005, p. 14). Therefore, if the multiculturalism involved a multinational hiring individuals of different races or cultures in different overseas subsidiaries only because a particular race or culture is prevalent in that particular host country, then diversity did not exist as p lurality because the cultures were dominant in their own locales. The answer to the third question affirms that diversity and inclusion are important in the business environment, but is not clear on why diversity is important. The example given is that diversity draws world customers closer to the organization rather than alienates them. However, culture-sensitive marketing strategy changes consumer perception of the firm, without necessarily transforming the parent corporation into a diverse and inclusive entity (Van Mesdag, 1999). A devolved management approach that employs cultural adaptation in its marketing efforts does not necessarily result in a diverse work force, although a diverse work force may draw customers of different attributes and backgrounds, within the parent company’s environment, closer to it. Response for the post of Student 2 (Brandon Burton) The post points out an important challenge to diversity, that is, how the ideals and theoretical principles of d iversity are actualized so that one may say, â€Å"Our corporation has achieved diversity†. The difficulty in arriving at a cogent description of diversity is underscored by Brandon’s questions: Is it hiring more minorities? Is it seeking minorities who think differently? While these ambiguities are well illustrated, there appears to be something missing in the definition that is arrived at. Diversity in this post is defined in terms of possessing different ideas, personal as well as business experiences, and culture (in what sense is uncertain – culture related to nationality or ethnicity, or culture related to personal upbringing and orientation?). It appears that this definition defeats the concept behind â€Å"diversity and inclusion† because it ignores the sense behind â€Å"inclusion.† â€Å"It is generally accepted that ‘Inclusion’ means inviting those who have been historically locked out to ‘come in’.† (Asa nte, n.d.). The post is correct in stressing that the person with the right qualifications must be hired, but the implicit premise here is that diversity will compel the business to hire one who is not qualified. Diversity and inclusion are specific in that they are initiatives which aim to set straight the historical prejudices that relegated people of certain races, creeds, cultures, and other attributes to cycles of poverty and exclusion. Diversity is â€Å"a moral imperative to ensure justice and fair treatment of all members of society†¦The comprehensive proactive organization focuses not only on the business case for diversity, but also actively on the social justice case and what is ‘the right thing to do’

Commodity Futures and Markets

Commodity Futures and Markets Chapter 1 Introduction to Commodity Market What is â€Å"Commodity†? Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines â€Å"goods† as â€Å"every kind of movable property other than actionable claims, money and securities†. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices. Etc. What is a commodity exchange? A commodity exchange is an association or a company or any other body corporate organizing futures trading in commodities for which license has been granted by regulating authority. What is Commodity Futures? A Commodity futures is an agreement between two parties to buy or sell a specified and standardized quantity of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract on the commodity futures exchange. The need for a futures market arises mainly due to the hedging function that it can perform. Commodity markets, like any other financial instrument, involve risk associated with frequent price volatility. The loss due to price volatility can be attributed to the following reasons: Consumer Preferences: In the short-term, their influence on price volatility is small since it is a slow process permitting manufacturers, dealers and wholesalers to adjust their inventory in advance. Changes in supply: They are abrupt and unpredictable bringing about wild fluctuations in prices. This can especially noticed in agricultural commodities where the weather plays a major role in affecting the fortunes of people involved in this industry. The futures market has evolved to neutralize such risks through a mechanism; namely hedging. The objectives of Commodity futures: * Hedging with the objective of transferring risk related to the possession of physical assets through any adverse moments in price. Liquidity and Price discovery to ensure base minimum volume in trading of a commodity through market information and demand supply factors that facilitates a regular and authentic price discovery mechanism. * Maintaining buffer stock and better allocation of resources as it augments reduction in inventory requirement and thus the exposure to risks related with price fluctuation declines. Resources can thus be diversified for investments. * Price stabilization along with balancing demand and supply position. Futures trading leads to predictability in assessing the domestic prices, which maintains stability, thus safeguarding against any short term adverse price movements. Liquidity in Contracts of the commodities traded also ensures in maintaining the equilibrium between demand and supply. * Flexibility, certainty and transparency in purchasing commodities facilitate bank financing. Predictability in prices of commodity would lead to stability, which in turn would eliminate the risks associated with running the business of trading commodities. This would make funding easier and less stringent for banks to commodity market players. Benefits of Commodity Futures Markets:- The primary objectives of any futures exchange are authentic price discovery and an efficient price risk management. The beneficiaries include those who trade in the commodities being offered in the exchange as well as those who have nothing to do with futures trading. It is because of price discovery and risk management through the existence of futures exchanges that a lot of businesses and services are able to function smoothly. 1. Price Discovery:-Based on inputs regarding specific market information, the demand and supply equilibrium, weather forecasts, expert views and comments, inflation rates, Government policies, market dynamics, hopes and fears, buyers and sellers conduct trading at futures exchanges. This transforms in to continuous price discovery mechanism. The execution of trade between buyers and sellers leads to assessment of fair value of a particular commodity that is immediately disseminated on the trading terminal. 2. Price Risk Management: Hedging is the most common method of price risk management. It is strategy of offering price risk that is inherent in spot market by taking an equal but opposite position in the futures market. Futures markets are used as a mode by hedgers to protect their business from adverse price change. This could dent the profitability of their business. Hedging benefits who are involved in trading of commodities like farmers, processors, merchandisers, manufacturers, exporters, importers etc. 3. Import- Export competitiveness: The exporters can hedge their price risk and improve their competitiveness by making use of futures market. A majority of traders which are involved in physical trade internationally intend to buy forwards. The purchases made from the physical market might expose them to the risk of price risk resulting to losses. The existence of futures market would allow the exporters to hedge their proposed purchase by temporarily substituting for actual purchase till the time is ripe to buy in physical market. In the absence of futures market it will be meticulous, time consuming and costly physical transactions. 4. Predictable Pricing: The demand for certain commodities is highly price elastic. The manufacturers have to ensure that the prices should be stable in order to protect their market share with the free entry of imports. Futures contracts will enable predictability in domestic prices. The manufacturers can, as a result, smooth out the influence of changes in their input prices very easily. With no futures market, the manufacturer can be caught between severe short-term price movements of oils and necessity to maintain price stability, which could only be possible through sufficient financial reserves that could otherwise be utilized for making other profitable investments. 5. Benefits for farmers/Agriculturalists: Price instability has a direct bearing on farmers in the absence of futures market. There would be no need to have large reserves to cover against unfavorable price fluctuations. This would reduce the risk premiums associated with the marketing or processing margins enabling more returns on produce. Storing more and being more active in the markets. The price information accessible to the farmers determines the extent to which traders/processors increase price to them. Since one of the objectives of futures exchange is to make available these prices as far as possible, it is very likely to benefit the farmers. Also, due to the time lag between planning and production, the market-determined price information disseminated by futures exchanges would be crucial for their production decisions. 6. Credit accessibility: The absence of proper risk management tools would attract the marketing and processing of commodities to high-risk exposure making it risky business activity to fund. Even a small movement in prices can eat up a huge proportion of capital owned by traders, at times making it virtually impossible to payback the loan. There is a high degree of reluctance among banks to fund commodity traders, especially those who do not manage price risks. If in case they do, the interest rate is likely to be high and terms and conditions very stringent. This posses a huge obstacle in the smooth functioning and competition of commodities market. Hedging, which is possible through futures markets, would cut down the discount rate in commodity lending. 7. Improved product quality: The existence of warehouses for facilitating delivery with grading facilities along with other related benefits provides a very strong reason to upgrade and enhance the quality of the commodity to grade that is acceptable by the exchange. It ensures uniform standardization of commodity trade, including the terms of quality standard: the quality certificates that are issued by the exchange-certified warehouses have the potential to become the norm for physical trade. Chapter 2 History of Evolution of commodity markets Commodities future trading was evolved from need of assured continuous supply of seasonal agricultural crops. The concept of organized trading in commodities evolved in Chicago, in 1848. But one can trace its roots in Japan. In Japan merchants used to store Rice in warehouses for future use. To raise cash warehouse holders sold receipts against the stored rice. These were known as â€Å"rice tickets†. Eventually, these rice tickets become accepted as a kind of commercial currency. Latter on rules came in to being, to standardize the trading in rice tickets. In 19th century Chicago in United States had emerged as a major commercial hub. So that wheat producers from Mid-west attracted here to sell their produce to dealers distributors. Due to lack of organized storage facilities, absence of uniform weighing grading mechanisms producers often confined to the mercy of dealers discretion. These situations lead to need of establishing a common meeting place for farmers and dealers to transact in spot grain to deliver wheat and receive cash in return. Gradually sellers buyers started making commitments to exchange the produce for cash in future and thus contract for â€Å"futures trading† evolved. Whereby the producer would agree to sell his produce to the buyer at a future delivery date at an agreed upon price. In this way producer was aware of what price he would fetch for his produce and dealer would know about his cost involved, in advance. This kind of agreement proved beneficial to both of them. As if dealer is not interested in taking delivery of the produce, he could sell his contract to someone who needs the same. Similarly producer who not intended to deliver his produce to dealer could pass on the same responsibility to someone else. The price of such contract would dependent on the price movements in the wheat market. Latter on by making some modifications these contracts transformed in to an instrument to protect involved parties against adverse factors such as unexpected price movements and unfavorable climat ic factors. This promoted traders entry in futures market, which had no intentions to buy or sell wheat but would purely speculate on price movements in market to earn profit. Trading of wheat in futures became very profitable which encouraged the entry of other commodities in futures market. This created a platform for establishment of a body to regulate and supervise these contracts. Thats why Chicago Board of Trade (CBOT) was established in 1848. In 1870 and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Agricultural commodities were mostly traded but as long as there are buyers and sellers, any commodity can be traded. In 1872, a group of Manhattan dairy merchants got together to bring chaotic condition in New York market to a system in terms of storage, pricing, and transfer of agricultural products. In 1933, during the Great Depression, the Commodity Exchange, Inc. was established in New York through the merger of four small exchanges the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange. The largest commodity exchange in USA is Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and New York Coffee, sugar and cocoa Exchange. Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, India, France, Singapore, Japan, Australia and New Zealand. Chapter 3 India and the commodity market History of Commodity Market in India:- The history of organized commodity derivatives in India goes back to the nineteenth century when Cotton Trade Association started futures trading in 1875, about a decade after they started in Chicago. Over the time datives market developed in several commodities in India. Following Cotton, derivatives trading started in oilseed in Bombay (1900), raw jute and jute goods in Calcutta (1912), Wheat in Hapur (1913) and Bullion in Bombay (1920). However many feared that derivatives fuelled unnecessary speculation and were detrimental to the healthy functioning of the market for the underlying commodities, resulting in to banning of commodity options trading and cash settlement of commodities futures after independence in 1952. The parliament passed the Forward Contracts (Regulation) Act, 1952, which regulated contracts in Commodities all over the India. The act prohibited options trading in Goods along with cash settlement of forward trades, rendering a crushing blow to the commodity derivatives market. Under the act only those associations/exchanges, which are granted reorganization from the Government, are allowed to organize forward trading in regulated commodities. The act envisages three tire regulations: (i) Exchange which organizes forward trading in commodities can regulate trading on day-to-day basis; (ii) Forward Markets Commission provides regulatory oversight under the powers delegated to it by the central Govern ment. (iii) The Central Government- Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution- is the ultimate regulatory authority. The commodities future market remained dismantled and remained dormant for about four decades until the new millennium when the Government, in a complete change in a policy, started actively encouraging commodity market. After Liberalization and Globalization in 1990, the Government set up a committee (1993) to examine the role of futures trading. The Committee (headed by Prof. K.N. Kabra) recommended allowing futures trading in 17 commodity groups. It also recommended strengthening Forward Markets Commission, and certain amendments to Forward Contracts (Regulation) Act 1952, particularly allowing option trading in goods and registration of brokers with Forward Markets Commission. The Government accepted most of these recommendations and futures trading was permitted in all recommended commodities. It is timely decision since internationally the commodity cycle is on upswing and the next decade being touched as the decade of Commodities. Commodity exchange in India plays an important role where the prices of any commodity are not fixed, in an organized way. Earlier only the buyer of produce and its seller in the market judged upon the prices. Others never had a say. Today, commodity exchanges are purely speculative in nature. Before discovering the price, they reach to the producers, end-users, and even the retail investors, at a grassroots level. It brings a price transparency and risk management in the vital market. A big difference between a typical auction, where a single auctioneer announces the bids and the Exchange is that people are not only competing to buy but also to sell. By Exchange rules and by law, no one can bid under a higher bid, and no one can offer to sell higher than someone elses lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do. Since 2002, the commodities future market in India has experienced an unexpected boom in terms of modern exchanges, number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which crossed $ 1 trillion mark in 2006. Since 1952 till 2002 commo dity datives market was virtually non- existent, except some negligible activities on OTC basis. In India there are 25 recognized future exchanges, of which there are three national level multi-commodity exchanges. After a gap of almost three decades, Government of India has allowed forward transactions in commodities through Online Commodity Exchanges, a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities. The three exchanges are: National Commodity Derivatives Exchange Limited (NCDEX) Mumbai, Multi Commodity Exchange of India Limited (MCX) Mumbai and National Multi-Commodity Exchange of India Limited (NMCEIL) Ahmedabad.There are other regional commodity exchanges situated in different parts of India. Legal framework for regulating commodity futures in India:- The commodity futures traded in commodity exchanges are regulated by the Government under the Forward Contracts Regulations Act, 1952 and the Rules framed there under. The regulator for the commodities trading is the Forward Markets Commission, situated at Mumbai, which comes under the Ministry of Consumer Affairs Food and Public Distribution Forward Markets Commission (FMC):- It is statutory institution set up in 1953 under Forward Contracts (Regulation) Act, 1952. Commission consists of minimum two and maximum four members appointed by Central Govt. Out of these members there is one nominated chairman. All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. National Commodities Derivatives Exchange Limited (NCDEX) National Commodities Derivatives Exchange Limited (NCDEX) promoted by ICICI Bank Limited (ICICI Bank), Life Insurance Corporation of India (LIC), National Bank of Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSC). Punjab National Bank (PNB), Credit Ratting Information Service of India Limited (CRISIL), Indian Farmers Fertilizer Cooperative Limited (IFFCO), Canara Bank and Goldman Sachs by subscribing to the equity shares have joined the promoters as a share holder of exchange. NCDEX is the only Commodity Exchange in the country promoted by national level institutions. NCDEX is a public limited company incorporated on 23 April 2003. NCDEX is a national level technology driven on line Commodity Exchange with an independent Board of Directors and professionals not having any vested interest in Commodity Markets. It is committed to provide a world class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. NCDEX is regulated by Forward Markets Commission (FMC). NCDEX is also subjected to the various laws of land like the Companies Act, Stamp Act, Contracts Act, Forward Contracts Regulation Act and various other legislations. NCDEX is located in Mumbai and offers facilities to its members in more than 550 centers through out India. NCDEX currently facilitates trading of 57 commodities. Commodities Traded at NCDEX:-  · Bullion:- Gold KG, Silver, Brent  · Minerals:- Electrolytic Copper Cathode, Aluminum Ingot, Nickel Cathode, Zinc Metal Ingot, Mild steel Ingots  · Oil and Oil seeds:- Cotton seed, Oil cake, Crude Palm Oil, Groundnut (in shell), Groundnut expeller Oil, Cotton, Mentha oil, RBD Pamolein, RM seed oil cake, Refined soya oil, Rape seeds, Mustard seeds, Caster seed, Yellow soybean, Meal  · Pulses:- Urad, Yellow peas, Chana, Tur, Masoor,  · Grain:- Wheat, Indian Pusa Basmati Rice, Indian parboiled Rice (IR- 36/IR-64), Indian raw Rice (ParmalPR-106), Barley, Yellow red maize  · Spices:- Jeera, Turmeric, Pepper  · Plantation:- Cashew, Coffee Arabica, Coffee Robusta  · Fibers and other:- Guar Gum, Guar seeds, Guar, Jute sacking bags, Indian 28 mm cotton, Indian 31mm cotton, Lemon, Grain Bold, Medium Staple, Mulberry, Green Cottons, , , Potato, Raw Jute, Mulberry raw Silk, V-797 Kapas, Sugar, Chilli LCA334  · Energy:- Crude Oil, Furnace oil, Thermal Coal, Brent Crude Oil, Natural Gas, Gasoline, Heating Oil Multi Commodity Exchange of India Limited (MCX) Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutulized exchange with permanent reorganization from Government of India, having Head Quarter in Mumbai. Key share holders of MCX are Financial Technologies (India) Limited, State Bank of India, Union Bank of India, Corporation Bank of India, Bank of India and Cnnara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures market across the country. MCX started of trade in Nov 2003 and has built strategic alliance with Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors Association of India, pulses Importers Association and Shetkari Sanghatana. MCX deals wit about 100 commodities. Commodities Traded at MCX:-  · Bullion:- Gold, Silver, Silver Coins,  · Minerals:- Aluminum, Copper, Nickel, Iron/steel, Tin, Zinc, Lead  · Oil and Oil seeds:- Castor oil/castor seeds, Crude Palm oil/ RBD Pamolein, Groundnut oil, Mustard/ Rapeseed oil, Soy seeds/Soy meal/Refined Soy Oil, Coconut Oil Cake, Copra, Sunflower oil, Sunflower Oil cake, Tamarind seed oil,  · Pulses:- Chana, Masur, Tur, Urad, Yellow peas  · Grains:- Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley,  · Spices:- Pepper, Red Chili, Jeera, Cardamom, Cinnamon, Clove, Ginger,  · Plantation:- Cashew Kernel, Rubber, Areca nut, Betel nuts, Coconut, Coffee,  · Fiber and others:- Kapas, Kapas Khalli, Cotton (long staple, medium staple, short staple), Cotton Cloth, Cotton Yarn, Gaur seed and Guargum, Gur and Sugar, Khandsari, Mentha Oil, Potato, Art Silk Yarn, Chara or Berseem, Raw Jute, Jute Goods, Jute Sacking,  · Petrochemicals:- High Density Polyethylene (HDPE), Polypropylene (PP), Poly Vinyl Chloride (PVC)  · Energy:- Brent Crude Oil, Crude Oil, Furnace Oil, Middle East Sour Crude Oil, Natural Gas  · Whether:- Carbon (CER), Carbon (CFI) National Multi Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-mutualised Electronic Multi Commodity Exchange in India. On 25th July 2001 it was granted approval by Government to organize trading in edible oil complex. It is being supported by Central warehousing Corporation Limited, Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. It got reorganization in Oct 2002. NMCEIL Head Quarter is at Ahmedabad. Chapter 4 INTERNATIONAL COMMODITY EXCHANGES Futures trading is a result of solution to a problem related to the maintenance of a year round supply of commodities/ products that are seasonal as is the case of agricultural produce. The United States, Japan, United Kingdom, Brazil, Australia, Singapore are homes to leading commodity futures exchanges in the world. The New York Mercantile Exchange (NYMEX):- The New York Mercantile Exchange is the worlds biggest exchange for trading in physical commodity futures. It is a primary trading forum for energy products and precious metals. The exchange is in existence since last 132 years and performs trades trough two divisions, the NYMEX division, which deals in energy and platinum and the COMEX division, which trades in all the other metals. Commodities traded: Light sweet crude oil, Natural Gas, Heating Oil, Gasoline, RBOB Gasoline, Electricity Propane, Gold, Silver, Copper, Aluminum, Platinum, Palladium, etc. London Metal Exchange:- The London Metal Exchange (LME) is the worlds premier non-ferrous market, with highly liquid contracts. The exchange was formed in 1877 as a direct consequence of the industrial revolution witnessed in the 19th century. The primary focus of LME is in providing a market for participants from non-ferrous based metals related industry to safeguard against risk due to movement in base metal prices and also arrive at a price that sets the benchmark globally. The exchange trades 24 hours a day through an inter office telephone market and also through a electronic trading platform. It is famous for its open-outcry trading between ring dealing members that takes place on the market floor. Commodities traded:- Aluminum, Copper, Nickel, Lead, Tin, Zinc, Aluminum Alloy, North American Special Aluminum Alloy (NASAAC), Polypropylene, Linear Low Density Polyethylene, etc. The Chicago Board of Trade:- The first commodity exchange established in the world was the Chicago Board of Trade (CBOT) during 1848 by group of Chicago merchants who were keen to establish a central market place for trade. Presently, the Chicago Board of Trade is one of the leading exchanges in the world for trading futures and options. More than 50 contracts on futures and options are being offered by CBOT currently through open outcry and/or electronically. CBOT initially dealt only in Agricultural commodities like corn, wheat, non storable agricultural commodities and non-agricultural products like gold and silver. Commodities Traded: Corn, Soybean, Oil, Soybean meal, Wheat, Oats, Ethanol, Rough Rice, Gold, Silver etc. Tokyo Commodity Exchange (TOCOM):- The Tokyo Commodity Exchange (TOCOM) is the second largest commodity futures exchange in the world. It trades in to metals and energy contracts. It has made rapid advancement in commodity trading globally since its inception 20 years back. One of the biggest reasons for that is the initiative TOCOM took towards establishing Asia as the benchmark for price discovery and risk management in commodities like the Middle East Crude Oil. TOCOMs recent tie up with the MCX to explore cooperation and business opportunities is seen as one of the steps towards providing platform for futures price discovery in Asia for Asian players in Crude Oil since the demand-supply situation in U.S. that drives NYMEX is different from demand-supply situation in Asia. In Jan 2003, in a major overhaul of its computerized trading system, TOCOM fortified its clearing system in June by being first commodity exchange in Japan to introduce an in-house clearing system. TOCOM launched options on gold futures, the firs t option contract in Japanese market, in May 2004. Commodities traded: Gasoline, Kerosene, Crude Oil, Gold, Silver, Platinum, Aluminum, Rubber, etc Chicago Mercantile Exchange:- The Chicago Mercantile Exchange (CME) is the largest futures exchange in the US and the largest futures clearing house in the world for futures and options trading. Formed in 1898 primarily to trade in Agricultural commodities, the CME introduced the worlds first financial futures more than 30 years ago. Today it trades heavily in interest rates futures, stock indices and foreign exchange futures. Its products often serves as a financial benchmark and witnesses the largest open interest in futures profile of CME consists of livestock, dairy and forest products and enables small family farms to large Agri-business to manage their price risks. Trading in CME can be done either through pit trading or electronically. Commodities Traded: Butter milk, Diammonium phosphate, Feeder cattle, frozen pork bellies, Lean Hogs, Live cattle, Non-fat Dry Milk, Urea, Urea Ammonium Nitrate, etc Chapter 5 How Commodity market works? There are two kinds of trades in commodities. The first is the spot trade, in which one pays cash and carries away the goods. The second is futures trade. The underpinning for futures is the warehouse receipt. A person deposits certain amount of say, good X in a ware house and gets a warehouse receipt. Which allows him to ask for physical delivery of the good from the warehouse. But some one trading in commodity futures need not necessarily posses such a receipt to strike a deal. A person can buy or sale a commodity future on an exchange based on his expectation of where the price will go. Futures have something called an expiry date, by when the buyer or seller either closes (square off) his account or give/take delivery of the commodity. The broker maintains an account of all dealing parties in which the daily profit or loss due to changes in the futures price is recorded. Squiring off is done by taking an opposite contract so that the net outstanding is nil. For commodity futures to work, the seller should be able to deposit the commodity at warehouse nearest to him and collect the warehouse receipt. The buyer should be able to take physical delivery at a location of his choice on presenting the warehouse receipt. But at present in India very few warehouses provide delivery for specific commodities. Following diagram gives a fair idea about working of the Commodity market. Today Commodity trading system is fully computerized. Traders need not visit a commodity market to speculate. With online commodity trading they could sit in the confines of their home or office and call the shots. The commodity trading system consists of certain prescribed steps or stages as follows: I. Trading: At this stage the following is the system implemented- Order receiving Execution Matching Reporting Surveillance Price limits Position limits II. Clearing: This stage has following system in place- Matching Registration Clearing Clearing limits Notation Margining Price limits Position limits Clearing house. III. Settlement: This stage has following system followed as follows- Marking to market Receipts and payments Reporting Delivery upon expiration or maturity. Chapter 6 Investments in Commodities How to invest in a Commodities? With whom investor can transact a business? An investor can transact a business with the approved clearing member of previously mentioned Commodity Exchanges. The investor can ask for the details from the Commodity Exchanges about the list of approved members. What is Identity Proof? When investor approaches Clearing Member, the member will ask for identity proof. For which Xerox copy of any one of the following can be given a) PAN card Number b) Driving License c) Vote ID d) Passport What statements should be given for Bank Proof? The front page of Bank Pass Book and a canceled cheque of a concerned bank. Otherwise the Bank Statement containing details can be given. What are the particulars to be given for address proof? In order to ascertain the address of investor, the clearing member will insist on Xerox copy of Ration card or the Pass Book/ Bank Statement where the address of investor is given. What are the other forms to be signed by the investor? The clearing member will ask the client to sign a) Know your client form b) Risk Discloser Document The above things are only procedure in character and the risk involved and only after understanding the business, he wants to transact business. What aspects should be conside Commodity Futures and Markets Commodity Futures and Markets Chapter 1 Introduction to Commodity Market What is â€Å"Commodity†? Any product that can be used for commerce or an article of commerce which is traded on an authorized commodity exchange is known as commodity. The article should be movable of value, something which is bought or sold and which is produced or used as the subject or barter or sale. In short commodity includes all kinds of goods. Indian Forward Contracts (Regulation) Act (FCRA), 1952 defines â€Å"goods† as â€Å"every kind of movable property other than actionable claims, money and securities†. In current situation, all goods and products of agricultural (including plantation), mineral and fossil origin are allowed for commodity trading recognized under the FCRA. The national commodity exchanges, recognized by the Central Government, permits commodities which include precious (gold and silver) and non-ferrous metals, cereals and pulses, ginned and un-ginned cotton, oilseeds, oils and oilcakes, raw jute and jute goods, sugar and gur, potatoes and onions, coffee and tea, rubber and spices. Etc. What is a commodity exchange? A commodity exchange is an association or a company or any other body corporate organizing futures trading in commodities for which license has been granted by regulating authority. What is Commodity Futures? A Commodity futures is an agreement between two parties to buy or sell a specified and standardized quantity of a commodity at a certain time in future at a price agreed upon at the time of entering into the contract on the commodity futures exchange. The need for a futures market arises mainly due to the hedging function that it can perform. Commodity markets, like any other financial instrument, involve risk associated with frequent price volatility. The loss due to price volatility can be attributed to the following reasons: Consumer Preferences: In the short-term, their influence on price volatility is small since it is a slow process permitting manufacturers, dealers and wholesalers to adjust their inventory in advance. Changes in supply: They are abrupt and unpredictable bringing about wild fluctuations in prices. This can especially noticed in agricultural commodities where the weather plays a major role in affecting the fortunes of people involved in this industry. The futures market has evolved to neutralize such risks through a mechanism; namely hedging. The objectives of Commodity futures: * Hedging with the objective of transferring risk related to the possession of physical assets through any adverse moments in price. Liquidity and Price discovery to ensure base minimum volume in trading of a commodity through market information and demand supply factors that facilitates a regular and authentic price discovery mechanism. * Maintaining buffer stock and better allocation of resources as it augments reduction in inventory requirement and thus the exposure to risks related with price fluctuation declines. Resources can thus be diversified for investments. * Price stabilization along with balancing demand and supply position. Futures trading leads to predictability in assessing the domestic prices, which maintains stability, thus safeguarding against any short term adverse price movements. Liquidity in Contracts of the commodities traded also ensures in maintaining the equilibrium between demand and supply. * Flexibility, certainty and transparency in purchasing commodities facilitate bank financing. Predictability in prices of commodity would lead to stability, which in turn would eliminate the risks associated with running the business of trading commodities. This would make funding easier and less stringent for banks to commodity market players. Benefits of Commodity Futures Markets:- The primary objectives of any futures exchange are authentic price discovery and an efficient price risk management. The beneficiaries include those who trade in the commodities being offered in the exchange as well as those who have nothing to do with futures trading. It is because of price discovery and risk management through the existence of futures exchanges that a lot of businesses and services are able to function smoothly. 1. Price Discovery:-Based on inputs regarding specific market information, the demand and supply equilibrium, weather forecasts, expert views and comments, inflation rates, Government policies, market dynamics, hopes and fears, buyers and sellers conduct trading at futures exchanges. This transforms in to continuous price discovery mechanism. The execution of trade between buyers and sellers leads to assessment of fair value of a particular commodity that is immediately disseminated on the trading terminal. 2. Price Risk Management: Hedging is the most common method of price risk management. It is strategy of offering price risk that is inherent in spot market by taking an equal but opposite position in the futures market. Futures markets are used as a mode by hedgers to protect their business from adverse price change. This could dent the profitability of their business. Hedging benefits who are involved in trading of commodities like farmers, processors, merchandisers, manufacturers, exporters, importers etc. 3. Import- Export competitiveness: The exporters can hedge their price risk and improve their competitiveness by making use of futures market. A majority of traders which are involved in physical trade internationally intend to buy forwards. The purchases made from the physical market might expose them to the risk of price risk resulting to losses. The existence of futures market would allow the exporters to hedge their proposed purchase by temporarily substituting for actual purchase till the time is ripe to buy in physical market. In the absence of futures market it will be meticulous, time consuming and costly physical transactions. 4. Predictable Pricing: The demand for certain commodities is highly price elastic. The manufacturers have to ensure that the prices should be stable in order to protect their market share with the free entry of imports. Futures contracts will enable predictability in domestic prices. The manufacturers can, as a result, smooth out the influence of changes in their input prices very easily. With no futures market, the manufacturer can be caught between severe short-term price movements of oils and necessity to maintain price stability, which could only be possible through sufficient financial reserves that could otherwise be utilized for making other profitable investments. 5. Benefits for farmers/Agriculturalists: Price instability has a direct bearing on farmers in the absence of futures market. There would be no need to have large reserves to cover against unfavorable price fluctuations. This would reduce the risk premiums associated with the marketing or processing margins enabling more returns on produce. Storing more and being more active in the markets. The price information accessible to the farmers determines the extent to which traders/processors increase price to them. Since one of the objectives of futures exchange is to make available these prices as far as possible, it is very likely to benefit the farmers. Also, due to the time lag between planning and production, the market-determined price information disseminated by futures exchanges would be crucial for their production decisions. 6. Credit accessibility: The absence of proper risk management tools would attract the marketing and processing of commodities to high-risk exposure making it risky business activity to fund. Even a small movement in prices can eat up a huge proportion of capital owned by traders, at times making it virtually impossible to payback the loan. There is a high degree of reluctance among banks to fund commodity traders, especially those who do not manage price risks. If in case they do, the interest rate is likely to be high and terms and conditions very stringent. This posses a huge obstacle in the smooth functioning and competition of commodities market. Hedging, which is possible through futures markets, would cut down the discount rate in commodity lending. 7. Improved product quality: The existence of warehouses for facilitating delivery with grading facilities along with other related benefits provides a very strong reason to upgrade and enhance the quality of the commodity to grade that is acceptable by the exchange. It ensures uniform standardization of commodity trade, including the terms of quality standard: the quality certificates that are issued by the exchange-certified warehouses have the potential to become the norm for physical trade. Chapter 2 History of Evolution of commodity markets Commodities future trading was evolved from need of assured continuous supply of seasonal agricultural crops. The concept of organized trading in commodities evolved in Chicago, in 1848. But one can trace its roots in Japan. In Japan merchants used to store Rice in warehouses for future use. To raise cash warehouse holders sold receipts against the stored rice. These were known as â€Å"rice tickets†. Eventually, these rice tickets become accepted as a kind of commercial currency. Latter on rules came in to being, to standardize the trading in rice tickets. In 19th century Chicago in United States had emerged as a major commercial hub. So that wheat producers from Mid-west attracted here to sell their produce to dealers distributors. Due to lack of organized storage facilities, absence of uniform weighing grading mechanisms producers often confined to the mercy of dealers discretion. These situations lead to need of establishing a common meeting place for farmers and dealers to transact in spot grain to deliver wheat and receive cash in return. Gradually sellers buyers started making commitments to exchange the produce for cash in future and thus contract for â€Å"futures trading† evolved. Whereby the producer would agree to sell his produce to the buyer at a future delivery date at an agreed upon price. In this way producer was aware of what price he would fetch for his produce and dealer would know about his cost involved, in advance. This kind of agreement proved beneficial to both of them. As if dealer is not interested in taking delivery of the produce, he could sell his contract to someone who needs the same. Similarly producer who not intended to deliver his produce to dealer could pass on the same responsibility to someone else. The price of such contract would dependent on the price movements in the wheat market. Latter on by making some modifications these contracts transformed in to an instrument to protect involved parties against adverse factors such as unexpected price movements and unfavorable climat ic factors. This promoted traders entry in futures market, which had no intentions to buy or sell wheat but would purely speculate on price movements in market to earn profit. Trading of wheat in futures became very profitable which encouraged the entry of other commodities in futures market. This created a platform for establishment of a body to regulate and supervise these contracts. Thats why Chicago Board of Trade (CBOT) was established in 1848. In 1870 and 1880s the New York Coffee, Cotton and Produce Exchanges were born. Agricultural commodities were mostly traded but as long as there are buyers and sellers, any commodity can be traded. In 1872, a group of Manhattan dairy merchants got together to bring chaotic condition in New York market to a system in terms of storage, pricing, and transfer of agricultural products. In 1933, during the Great Depression, the Commodity Exchange, Inc. was established in New York through the merger of four small exchanges the National Metal Exchange, the Rubber Exchange of New York, the National Raw Silk Exchange, and the New York Hide Exchange. The largest commodity exchange in USA is Chicago Board of Trade, The Chicago Mercantile Exchange, the New York Mercantile Exchange, the New York Commodity Exchange and New York Coffee, sugar and cocoa Exchange. Worldwide there are major futures trading exchanges in over twenty countries including Canada, England, India, France, Singapore, Japan, Australia and New Zealand. Chapter 3 India and the commodity market History of Commodity Market in India:- The history of organized commodity derivatives in India goes back to the nineteenth century when Cotton Trade Association started futures trading in 1875, about a decade after they started in Chicago. Over the time datives market developed in several commodities in India. Following Cotton, derivatives trading started in oilseed in Bombay (1900), raw jute and jute goods in Calcutta (1912), Wheat in Hapur (1913) and Bullion in Bombay (1920). However many feared that derivatives fuelled unnecessary speculation and were detrimental to the healthy functioning of the market for the underlying commodities, resulting in to banning of commodity options trading and cash settlement of commodities futures after independence in 1952. The parliament passed the Forward Contracts (Regulation) Act, 1952, which regulated contracts in Commodities all over the India. The act prohibited options trading in Goods along with cash settlement of forward trades, rendering a crushing blow to the commodity derivatives market. Under the act only those associations/exchanges, which are granted reorganization from the Government, are allowed to organize forward trading in regulated commodities. The act envisages three tire regulations: (i) Exchange which organizes forward trading in commodities can regulate trading on day-to-day basis; (ii) Forward Markets Commission provides regulatory oversight under the powers delegated to it by the central Govern ment. (iii) The Central Government- Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution- is the ultimate regulatory authority. The commodities future market remained dismantled and remained dormant for about four decades until the new millennium when the Government, in a complete change in a policy, started actively encouraging commodity market. After Liberalization and Globalization in 1990, the Government set up a committee (1993) to examine the role of futures trading. The Committee (headed by Prof. K.N. Kabra) recommended allowing futures trading in 17 commodity groups. It also recommended strengthening Forward Markets Commission, and certain amendments to Forward Contracts (Regulation) Act 1952, particularly allowing option trading in goods and registration of brokers with Forward Markets Commission. The Government accepted most of these recommendations and futures trading was permitted in all recommended commodities. It is timely decision since internationally the commodity cycle is on upswing and the next decade being touched as the decade of Commodities. Commodity exchange in India plays an important role where the prices of any commodity are not fixed, in an organized way. Earlier only the buyer of produce and its seller in the market judged upon the prices. Others never had a say. Today, commodity exchanges are purely speculative in nature. Before discovering the price, they reach to the producers, end-users, and even the retail investors, at a grassroots level. It brings a price transparency and risk management in the vital market. A big difference between a typical auction, where a single auctioneer announces the bids and the Exchange is that people are not only competing to buy but also to sell. By Exchange rules and by law, no one can bid under a higher bid, and no one can offer to sell higher than someone elses lower offer. That keeps the market as efficient as possible, and keeps the traders on their toes to make sure no one gets the purchase or sale before they do. Since 2002, the commodities future market in India has experienced an unexpected boom in terms of modern exchanges, number of commodities allowed for derivatives trading as well as the value of futures trading in commodities, which crossed $ 1 trillion mark in 2006. Since 1952 till 2002 commo dity datives market was virtually non- existent, except some negligible activities on OTC basis. In India there are 25 recognized future exchanges, of which there are three national level multi-commodity exchanges. After a gap of almost three decades, Government of India has allowed forward transactions in commodities through Online Commodity Exchanges, a modification of traditional business known as Adhat and Vayda Vyapar to facilitate better risk coverage and delivery of commodities. The three exchanges are: National Commodity Derivatives Exchange Limited (NCDEX) Mumbai, Multi Commodity Exchange of India Limited (MCX) Mumbai and National Multi-Commodity Exchange of India Limited (NMCEIL) Ahmedabad.There are other regional commodity exchanges situated in different parts of India. Legal framework for regulating commodity futures in India:- The commodity futures traded in commodity exchanges are regulated by the Government under the Forward Contracts Regulations Act, 1952 and the Rules framed there under. The regulator for the commodities trading is the Forward Markets Commission, situated at Mumbai, which comes under the Ministry of Consumer Affairs Food and Public Distribution Forward Markets Commission (FMC):- It is statutory institution set up in 1953 under Forward Contracts (Regulation) Act, 1952. Commission consists of minimum two and maximum four members appointed by Central Govt. Out of these members there is one nominated chairman. All the exchanges have been set up under overall control of Forward Market Commission (FMC) of Government of India. National Commodities Derivatives Exchange Limited (NCDEX) National Commodities Derivatives Exchange Limited (NCDEX) promoted by ICICI Bank Limited (ICICI Bank), Life Insurance Corporation of India (LIC), National Bank of Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSC). Punjab National Bank (PNB), Credit Ratting Information Service of India Limited (CRISIL), Indian Farmers Fertilizer Cooperative Limited (IFFCO), Canara Bank and Goldman Sachs by subscribing to the equity shares have joined the promoters as a share holder of exchange. NCDEX is the only Commodity Exchange in the country promoted by national level institutions. NCDEX is a public limited company incorporated on 23 April 2003. NCDEX is a national level technology driven on line Commodity Exchange with an independent Board of Directors and professionals not having any vested interest in Commodity Markets. It is committed to provide a world class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency. NCDEX is regulated by Forward Markets Commission (FMC). NCDEX is also subjected to the various laws of land like the Companies Act, Stamp Act, Contracts Act, Forward Contracts Regulation Act and various other legislations. NCDEX is located in Mumbai and offers facilities to its members in more than 550 centers through out India. NCDEX currently facilitates trading of 57 commodities. Commodities Traded at NCDEX:-  · Bullion:- Gold KG, Silver, Brent  · Minerals:- Electrolytic Copper Cathode, Aluminum Ingot, Nickel Cathode, Zinc Metal Ingot, Mild steel Ingots  · Oil and Oil seeds:- Cotton seed, Oil cake, Crude Palm Oil, Groundnut (in shell), Groundnut expeller Oil, Cotton, Mentha oil, RBD Pamolein, RM seed oil cake, Refined soya oil, Rape seeds, Mustard seeds, Caster seed, Yellow soybean, Meal  · Pulses:- Urad, Yellow peas, Chana, Tur, Masoor,  · Grain:- Wheat, Indian Pusa Basmati Rice, Indian parboiled Rice (IR- 36/IR-64), Indian raw Rice (ParmalPR-106), Barley, Yellow red maize  · Spices:- Jeera, Turmeric, Pepper  · Plantation:- Cashew, Coffee Arabica, Coffee Robusta  · Fibers and other:- Guar Gum, Guar seeds, Guar, Jute sacking bags, Indian 28 mm cotton, Indian 31mm cotton, Lemon, Grain Bold, Medium Staple, Mulberry, Green Cottons, , , Potato, Raw Jute, Mulberry raw Silk, V-797 Kapas, Sugar, Chilli LCA334  · Energy:- Crude Oil, Furnace oil, Thermal Coal, Brent Crude Oil, Natural Gas, Gasoline, Heating Oil Multi Commodity Exchange of India Limited (MCX) Multi Commodity Exchange of India Limited (MCX) is an independent and de-mutulized exchange with permanent reorganization from Government of India, having Head Quarter in Mumbai. Key share holders of MCX are Financial Technologies (India) Limited, State Bank of India, Union Bank of India, Corporation Bank of India, Bank of India and Cnnara Bank. MCX facilitates online trading, clearing and settlement operations for commodity futures market across the country. MCX started of trade in Nov 2003 and has built strategic alliance with Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors Association of India, pulses Importers Association and Shetkari Sanghatana. MCX deals wit about 100 commodities. Commodities Traded at MCX:-  · Bullion:- Gold, Silver, Silver Coins,  · Minerals:- Aluminum, Copper, Nickel, Iron/steel, Tin, Zinc, Lead  · Oil and Oil seeds:- Castor oil/castor seeds, Crude Palm oil/ RBD Pamolein, Groundnut oil, Mustard/ Rapeseed oil, Soy seeds/Soy meal/Refined Soy Oil, Coconut Oil Cake, Copra, Sunflower oil, Sunflower Oil cake, Tamarind seed oil,  · Pulses:- Chana, Masur, Tur, Urad, Yellow peas  · Grains:- Rice/ Basmati Rice, Wheat, Maize, Bajara, Barley,  · Spices:- Pepper, Red Chili, Jeera, Cardamom, Cinnamon, Clove, Ginger,  · Plantation:- Cashew Kernel, Rubber, Areca nut, Betel nuts, Coconut, Coffee,  · Fiber and others:- Kapas, Kapas Khalli, Cotton (long staple, medium staple, short staple), Cotton Cloth, Cotton Yarn, Gaur seed and Guargum, Gur and Sugar, Khandsari, Mentha Oil, Potato, Art Silk Yarn, Chara or Berseem, Raw Jute, Jute Goods, Jute Sacking,  · Petrochemicals:- High Density Polyethylene (HDPE), Polypropylene (PP), Poly Vinyl Chloride (PVC)  · Energy:- Brent Crude Oil, Crude Oil, Furnace Oil, Middle East Sour Crude Oil, Natural Gas  · Whether:- Carbon (CER), Carbon (CFI) National Multi Commodity Exchange of India Limited (NMCEIL) National Multi Commodity Exchange of India Limited (NMCEIL) is the first de-mutualised Electronic Multi Commodity Exchange in India. On 25th July 2001 it was granted approval by Government to organize trading in edible oil complex. It is being supported by Central warehousing Corporation Limited, Gujarat State Agricultural Marketing Board and Neptune Overseas Limited. It got reorganization in Oct 2002. NMCEIL Head Quarter is at Ahmedabad. Chapter 4 INTERNATIONAL COMMODITY EXCHANGES Futures trading is a result of solution to a problem related to the maintenance of a year round supply of commodities/ products that are seasonal as is the case of agricultural produce. The United States, Japan, United Kingdom, Brazil, Australia, Singapore are homes to leading commodity futures exchanges in the world. The New York Mercantile Exchange (NYMEX):- The New York Mercantile Exchange is the worlds biggest exchange for trading in physical commodity futures. It is a primary trading forum for energy products and precious metals. The exchange is in existence since last 132 years and performs trades trough two divisions, the NYMEX division, which deals in energy and platinum and the COMEX division, which trades in all the other metals. Commodities traded: Light sweet crude oil, Natural Gas, Heating Oil, Gasoline, RBOB Gasoline, Electricity Propane, Gold, Silver, Copper, Aluminum, Platinum, Palladium, etc. London Metal Exchange:- The London Metal Exchange (LME) is the worlds premier non-ferrous market, with highly liquid contracts. The exchange was formed in 1877 as a direct consequence of the industrial revolution witnessed in the 19th century. The primary focus of LME is in providing a market for participants from non-ferrous based metals related industry to safeguard against risk due to movement in base metal prices and also arrive at a price that sets the benchmark globally. The exchange trades 24 hours a day through an inter office telephone market and also through a electronic trading platform. It is famous for its open-outcry trading between ring dealing members that takes place on the market floor. Commodities traded:- Aluminum, Copper, Nickel, Lead, Tin, Zinc, Aluminum Alloy, North American Special Aluminum Alloy (NASAAC), Polypropylene, Linear Low Density Polyethylene, etc. The Chicago Board of Trade:- The first commodity exchange established in the world was the Chicago Board of Trade (CBOT) during 1848 by group of Chicago merchants who were keen to establish a central market place for trade. Presently, the Chicago Board of Trade is one of the leading exchanges in the world for trading futures and options. More than 50 contracts on futures and options are being offered by CBOT currently through open outcry and/or electronically. CBOT initially dealt only in Agricultural commodities like corn, wheat, non storable agricultural commodities and non-agricultural products like gold and silver. Commodities Traded: Corn, Soybean, Oil, Soybean meal, Wheat, Oats, Ethanol, Rough Rice, Gold, Silver etc. Tokyo Commodity Exchange (TOCOM):- The Tokyo Commodity Exchange (TOCOM) is the second largest commodity futures exchange in the world. It trades in to metals and energy contracts. It has made rapid advancement in commodity trading globally since its inception 20 years back. One of the biggest reasons for that is the initiative TOCOM took towards establishing Asia as the benchmark for price discovery and risk management in commodities like the Middle East Crude Oil. TOCOMs recent tie up with the MCX to explore cooperation and business opportunities is seen as one of the steps towards providing platform for futures price discovery in Asia for Asian players in Crude Oil since the demand-supply situation in U.S. that drives NYMEX is different from demand-supply situation in Asia. In Jan 2003, in a major overhaul of its computerized trading system, TOCOM fortified its clearing system in June by being first commodity exchange in Japan to introduce an in-house clearing system. TOCOM launched options on gold futures, the firs t option contract in Japanese market, in May 2004. Commodities traded: Gasoline, Kerosene, Crude Oil, Gold, Silver, Platinum, Aluminum, Rubber, etc Chicago Mercantile Exchange:- The Chicago Mercantile Exchange (CME) is the largest futures exchange in the US and the largest futures clearing house in the world for futures and options trading. Formed in 1898 primarily to trade in Agricultural commodities, the CME introduced the worlds first financial futures more than 30 years ago. Today it trades heavily in interest rates futures, stock indices and foreign exchange futures. Its products often serves as a financial benchmark and witnesses the largest open interest in futures profile of CME consists of livestock, dairy and forest products and enables small family farms to large Agri-business to manage their price risks. Trading in CME can be done either through pit trading or electronically. Commodities Traded: Butter milk, Diammonium phosphate, Feeder cattle, frozen pork bellies, Lean Hogs, Live cattle, Non-fat Dry Milk, Urea, Urea Ammonium Nitrate, etc Chapter 5 How Commodity market works? There are two kinds of trades in commodities. The first is the spot trade, in which one pays cash and carries away the goods. The second is futures trade. The underpinning for futures is the warehouse receipt. A person deposits certain amount of say, good X in a ware house and gets a warehouse receipt. Which allows him to ask for physical delivery of the good from the warehouse. But some one trading in commodity futures need not necessarily posses such a receipt to strike a deal. A person can buy or sale a commodity future on an exchange based on his expectation of where the price will go. Futures have something called an expiry date, by when the buyer or seller either closes (square off) his account or give/take delivery of the commodity. The broker maintains an account of all dealing parties in which the daily profit or loss due to changes in the futures price is recorded. Squiring off is done by taking an opposite contract so that the net outstanding is nil. For commodity futures to work, the seller should be able to deposit the commodity at warehouse nearest to him and collect the warehouse receipt. The buyer should be able to take physical delivery at a location of his choice on presenting the warehouse receipt. But at present in India very few warehouses provide delivery for specific commodities. Following diagram gives a fair idea about working of the Commodity market. Today Commodity trading system is fully computerized. Traders need not visit a commodity market to speculate. With online commodity trading they could sit in the confines of their home or office and call the shots. The commodity trading system consists of certain prescribed steps or stages as follows: I. Trading: At this stage the following is the system implemented- Order receiving Execution Matching Reporting Surveillance Price limits Position limits II. Clearing: This stage has following system in place- Matching Registration Clearing Clearing limits Notation Margining Price limits Position limits Clearing house. III. Settlement: This stage has following system followed as follows- Marking to market Receipts and payments Reporting Delivery upon expiration or maturity. Chapter 6 Investments in Commodities How to invest in a Commodities? With whom investor can transact a business? An investor can transact a business with the approved clearing member of previously mentioned Commodity Exchanges. The investor can ask for the details from the Commodity Exchanges about the list of approved members. What is Identity Proof? When investor approaches Clearing Member, the member will ask for identity proof. For which Xerox copy of any one of the following can be given a) PAN card Number b) Driving License c) Vote ID d) Passport What statements should be given for Bank Proof? The front page of Bank Pass Book and a canceled cheque of a concerned bank. Otherwise the Bank Statement containing details can be given. What are the particulars to be given for address proof? In order to ascertain the address of investor, the clearing member will insist on Xerox copy of Ration card or the Pass Book/ Bank Statement where the address of investor is given. What are the other forms to be signed by the investor? The clearing member will ask the client to sign a) Know your client form b) Risk Discloser Document The above things are only procedure in character and the risk involved and only after understanding the business, he wants to transact business. What aspects should be conside

Biography of William Edward Burghardt DuBois :: Biographies Pan-Africanist Racism Essays

Biography of William Edward Burghardt DuBois William Edward Burghardt DuBois, to his admirers, was by spirited devotion and scholarly dedication, an attacker of injustice and a defender of freedom. A harbinger of Black nationalism and Pan-Africanism, he died in self-imposed exile in his home away from home with his ancestors of a glorious past—Africa. Labeled as a "radical," he was ignored by those who hoped that his massive contributions would be buried along side of him. But, as Dr. Martin Luther King, Jr. wrote, "history cannot ignore W.E.B. DuBois because history has to reflect truth and Dr. DuBois was a tireless explorer and a gifted discoverer of social truths. His singular greatness lay in his quest for truth about his own people. There were very few scholars who concerned themselves with honest study of the black man and he sought to fill this immense void. The degree to which he succeeded disclosed the great dimensions of the man." His Formative Years W.E.B. DuBois was born on February 23, 1868 in Great Barrington, Massachusetts. At that time Great Barrington had perhaps 25, but not more than 50, Black people out of a population of about 5,000. Consequently, there were little signs of overt racism there. Nevertheless, its venom was distributed through a constant barrage of suggestive innuendoes and vindictive attitudes of its residents. This mutated the personality of young William from good natured and outgoing to sullen and withdrawn. This was later reinforced and strengthened by inner withdrawals in the face of real discriminations. His demeanor of introspection haunted him throughout his life. While in high school DuBois showed a keen concern for the development of his race. At age fifteen he became the local correspondent for the New York Globe. And in this position he conceived it his duty to push his race forward by lectures and editorials reflecting upon the need of Black people to politicized themselves. DuBois was naturally gifted intellectually and took pleasurable pride in surpassing his fellow students in academic and other pursuits. Upon graduation from high school, he, like many other New England students of his caliber, desired to attend Harvard. However, he lacked the financial resources to go to that institution. But with the aid of friends and family, and a scholarship he received to Fisk College (now University), he eagerly headed to Nashville, Tennessee to further his education. This was DuBois' first trip south. And in those three years at Fisk (1885–1888) his knowledge of the race problem became more definite.

Middle School vs. High School Essay

Waking up on the morning of the first day of high school felt like butterflies took over my stomach. I had to put together an impressing outfit, fix my hair, and put on appealing makeup. Knowing that in about an hour I would be entering a totally different school environment than what I’m used to frightened me. Within every period of the school day, the butterflies started to flutter out of my stomach and into my new learning atmosphere. Although students tend to fear high school and think it is a nightmare to transition from middle school to the next level, attending high school is not much of a dramatic change. Before beginning high school, you are required to pick levels that you feel comfortable with that correspond with the school-picked courses. You also have to choose three elective classes. Any of these classes could include Art, Chorus, Intro to Family and Consumer Science, Accounting, Graphic Presentations, and many more. All of your chosen classes receive a letter grade, just like middle school, but the required classes are picked according to your academic capability. For example, if you are the type of student that does not do well scholarly, you would choose a level three class. This option is a great way to do better in school. Also in high school, there are more extracurricular options. High school offers a numerous amount of clubs and sports. From soccer and swimming to ping pong club and French club. If any of the extracurricular activities don’t interest you, you even have the opportunity to create your own club with the help of a teacher. In middle school, your classes are already selected and you cannot change them. These classes are mandatory, just like high school, but everyone learns at the same level. This can be a disadvantage for students who take longer to process than others. Also, in middle school, you cannot create your own clubs. The sports and clubs the school provides are your only selections. Transitioning to high school is a big eye opener especially because of the people. Guys have facial hair and girls are more matured. High school goes hand in hand with many different kinds of people and different types of cliques as well. Some examples are jocks, nerds, populars, druggies, and gays. In middle school, there were less people making everyone familiar with each other. Some being naive and inexperienced, they are not used to seeing different types of people. Overall, high school is a lot bigger. Not only is there a downstairs, but an upstairs as well and there are many more hallways. Even though classes are farther apart, there is more time in between classes. In fact, three minutes more than middle school. This allows time to go to your locker before a class and you can even stop to talk in the hallways. Since middle school allowed only two minutes in between classes, you had to be quick with exchanging books. In high school, you can take your time and arrive to class on time. The transition to high school is a big step in education, but it does not have to be a feared one. A new environment brings with it new challenges and worries, however, after awhile you will realize it wasn’t much of a striking change as you thought.

Booker T. Washington vs. W.E.B Dubois Essay

Booker T. Washington and W.E.B Dubois were two famous African American leaders during the late 19th and early 20th centuries. They were both activists and wanted blacks to have an education; they also wanted to end discrimination towards blacks. These leaders both wrote great speeches which clearly specified what they thought was right for African Americans. Even though Washington and Dubois focused on the same social, political and economic issues, they strongly disagreed on strategies of achieving their goal of equality. The first African American leader that changed America forever was Booker T. Washington. Booker T. was one of America’s greatest African American leaders who believed that blacks deserved to be equal. Booker T. mainly focused on education, he wanted blacks to concentrate on their education and not equality. He believed that if blacks mainly focused on getting equality, than blacks are wasting their time because racism and hatred will always be a part of everyday life from now and even in the future for all different kinds of races, cultures and religious beliefs. Booker T. wanted blacks to have something called â€Å"Industrial Education†, and this certain type of education provided the skills needed for jobs that were available to the majority of African Americans. Since he was mainly focusing on blacks in the south, he wanted blacks to  master and be advanced at agriculture and farming skills. Booker T. stated  that overtime, whites will see that blacks have responsibility and commitment of being an American citizen. This will earn respect and equality from whites and accepted as citizens of the United States of America. Booker T. Washington was recognized as being a great speaker. He gave many motivational speeches to black people saying not to let whites control them because as American citizens you are free to do whatever you want. He told blacks to think positive and stop hiding from people that are trying to put you down in society and defend yourself on what you think is right. He told white people that you are underestimating blacks for what they could accomplish in society; you are being disrespectful to blacks just because of their skin color. The second African American leader that changed America forever was W.E.B Dubois. He focused on the exact opposite things that of Booker T. Washington. Dubois was also mainly focused on education as Booker T. Washington was, but he believed that blacks should be book smart and be as well educated as a white person, this was called the gradualist political strategy. Dubois realized that Booker T. Washington was accommodating white interests in his speech called the Atlanta Compromise, this made many people shocked on how Washington was basically saying that you can treat blacks as unequal’s and discriminate us as long as we get a decent education. Dubois and his supporters responded to this speech by establishing the Niagara Movement. The Niagara Movement was a group of African-American civil rights activists including W.E.B Dubois; they wrote a speech that demanded for equality and to cease discrimination. The speech claims that as American citizens, we have rights and by not giving these rights to us, you have made no accomplishment on what you founded this land for. Dubois does not believe in violence but believes that sacrifices had to be made in order to get African Americans to be seen as equals. He labels his speech in numbers from one through five and in each request; he explained each of his demands in a very  aggressive tone. He sought for an immediate change and will not be satisfied by the little changes that will be made over time. Both Booker T. Washington and W.E.B Dubois both had great arguments and philosophies for trying to get African Americans to have futures of being seen as equals, but I felt like Booker T. Washington made more sense at the time. Booker T. understood that blacks would never be seen as equals and he accepted it. Booker T. preached that being equal is not all that important but as time goes by, we will get accepted in to this nation as equals. He said this to blacks because he didn’t want blacks lose faith on ever being seen as equals but instead, blacks started focusing on themselves and lived their daily lives without anyone putting the down in society. There are still many people that are racist but now they have learned to accept it and carry on with their lives. Booker T. Washington’s theory will always be a part of our nation and other countries all around the world. Booker T. Washington and W.E.B Dubois were two famous African American leaders during the late 19th and early 20th centuries. They were both believed that blacks deserved equal rights as being an American citizen. These leaders both wrote great speeches which clearly specified what they thought was right for African Americans.

Aircraft Winglets Essays

Aircraft Winglets Essays Aircraft Winglets Paper Aircraft Winglets Paper Aircraft  Winglets Many of us who fly regularly have most probably seen a so-called winglet or wingtip device at the end of the wing of an airliner at least once. It is showing up more and more often on more and more types of aircraft, thus we felt it’s time to give an overview to our readers about these sometimes funny, sometimes cool and stylish looking aircraft parts. History, Reason and Benefits The initial theoretical concept goes back to times before even the Wright Brothers first took to the skies in 1905, but it was picked up and developed by Richard T. Whitcomb of NASA after the 1973 oil crisis – in order to reduce fuel consumption. The first tests were carried out in 1979/80 in cooperation with the U. S. Air Force. At almost the same time, but independent of any U. S. military organization, a private jet producer, LearJet exhibited a prototype in 1977: the LearJet 28 that featured the first winglets on a jet and a production aircraft. Flight tests made with and without winglets showed that the winglets increased range by about 6. 5 percent and also improved directional stability for the LearJet- these two factors are the major reasons behind using this facility at any fixed wing aircraft ever since. A winglet is a (near) vertical extension of the wing tips. The upward angle of the winglet, its inward angle as well as its size and shape are critical for correct performance – this is why they can look quite different. Air rotating around the wing strikes the surface of the winglet that directs it in another direction – thus creating an extra force, basically converting otherwise wasted energy to thrust. This is a small contribution but can save a lot for an operator in an aircraft’s lifetime. Another potential benefit of winglets is that they reduce the strength of wingtip vortices, which trail behind the plane. When other aircraft pass through these vortices, the turbulent air can cause loss of control, possibly resulting in an accident. Winglet Types In general any wingtips that not end the wing simply horizontally are considered as some kind of a winglet. Even though in strictly technical terms Wingtip Fences are not real extensions of the wing, and Raked Wingtips do not have a vertical part, they are still widely considered as winglet variants. WINGTIP FENCES are a special variant of winglets, that extend both upward and downward from the tip of the wing. Preferred by European plane-maker Airbus, it is featured on their full product range (except the A330/340 family and the future A350). The Airbus A300 was actually the first jet airliner to feature this kind of solution by default, but it was a very small version of the tool. Provided that most of the Airbus planes (including all A320 family jets) feature such wingtip fences, this may be the most seen and most produced winglet type. Even the new Airbus A380 double-decker features wingtip fences. Airbus Winglets as seen from the outside Airbus Winglets as seen from onboard BLENDED WINGLETS (the real â€Å"Winglets†) are the most popular winglet type, leveraged by Airbus, Boeing, Embraer, Bombardier but also by Russian Tupolev and Iljushin. Blended winglets were first introduced on the McDonnel Douglas MD-11 aircraft in 1990 with launch customer Finnair (it also features a smaller winglet at the bottom side of the wing). In contrast to Airbus who applies the wingtip fences by default on most of their aircraft (and the winglets on the A330/340 family), lended winglets are considered by Boeing for example as an optional extra feature on their products, except for the Boeing 747-400. For some of the older Boeing jets (737 and 757) such blended winglets have been offered as an aftermarket retrofit, these are the newer, tall designs and do not connect to the tip of the wing with a sharp angle, but with a curve instead. These winglets are popular among airlines that fly these aircraft on medium/long haul routes as m ost of the real fuel savings materialize while cruising. Longer flights  mean longer cruising, thus larger fuel savings. And they also server as marketing surface for airline logos or web addresses usually. Just recently the Boeing 767-300ER has received 3. 4 m high (! ) winglets produced by Aviation Partners Inc. with American Airlines as the launch-customer with Air New Zealand and Hawaiian Airlines following with orders of 5  and 8 aircrafts respectively. 141 shipsets have been pre-sold  already as the forecasted fuel savings  range  around  4%-6% for medium/long-range flights. Airbus earlier tested similar blended winglets designed by Winglet Technology for the A320 series, but determined that their benefits did not warrant further development and they stayed with the wingtip fences instead. Aviation Partners Boeing  claims that winglets on 737s and 757s have saved a collective 1. 2 billion gal. of fuel since they were introduced and 11. 5 million tonnes of CO2 while reducing those types’ noise footprint by 6. 5%. It has sold winglets to 140 airlines and 95% of all 737NGs are fitted with them. It is working on four winglet concepts for the 777 and hopes to finalize a design for that aircraft type by December, 2008. Blended Winglets on Several Aircraft Types RAKED WINGTIPS are the most recent winglet variants (they are probably better classified as special wings, though),  where the tip of the wing has a higher degree of sweep than the rest of the wing. They are widely referred to as winglets, but they are better described as integrated wingtip extensions as they are (horizontal) additions to the existing wing, rather than the previously described (near) vertical solutions. The stated purpose of this additional feature is to improve fuel economy, climb performance and to shorten takeoff field length. It does this in much the same way  as â€Å"traditional† winglets do. In testing by Boeing and NASA, raked wingtips have been shown to reduce drag by as much as 5. 5%, as opposed to improvements of 3. 5% to 4. 5% from conventional winglets. Airliners to use raked wingtips: Boeing 747-8, Boeing 767-400ER, Boeing 777(-200LR; -300ER; and freighter versions) plus the new Boeing 787 Dreamliner and the Airbus A350. The 747-8, the 787 and the A350 will have special, new kind of wings, which do not have a separate winglet, but have raked, and blended wingtips integrated   without a sharp angle between the wing and the winglet. Raked Wingtips on the new Boeing 787 and Airbus A350 As you can see, wingtips/winglets have developed and changed very much over the last 30 years, but are becoming the standard, which is not proven better by anything else than the wing designs of future aircraft by the largest airplane-makers that feature a built-in winglet at the tip of their new, evolutionary wings. Raked wingtip Boeing 787 Dreamliner rollout showing raked wingtip Raked wingtips are a feature on some Boeing airliners, where the tip of the wing has a higher degree of sweep than the rest of the wing. The stated purpose of this additional feature is to improve fuel efficiency and climb performance, and to shorten takeoff field length. It does this in much the same way that winglets do, by increasing the e ffective aspect ratio of the wing and interrupting harmful wingtip vortices. This decreases the amount of lift-induced drag experienced by the aircraft. In testing by Boeing and NASA, raked wingtips have been shown to reduce drag by as much as 5. 5%, as opposed to improvements of 3. 5% to 4. 5% from conventional winglets. [16] While an equivalent increase in wingspan would be more effective than a winglet of the same length, the bending force becomes a greater factor. A three-foot winglet has the same bending force as a one-foot increase in span, yet gives the same performance gain as a two-foot wing span increase. [27] For this reason, the short-range Boeing 787-3 design called for winglets instead of the raked wingtips featured on all other 787 variants. Raked wingtips are installed on, or are planned to be installed on: * Boeing P-8 Poseidon * Boeing 747-8 Freighter * Boeing 747-8 Intercontinental * Boeing 767-400ER * Boeing 777-200LR * Boeing 777-300ER * Boeing 777 Freighter * Boeing 787-8 Boeing 787-9 Anyway The performance of a commercial transport airplane is typically measured in terms of mission capability and operating costs. Mission capability can be improved by reducing airplane drag during takeoff climb and cruise, and by utilizing designs that minimize structural weight. Operating costs can be reduced by reducing airplane cruise drag (hence, resulting in less fuel burn and less fuel costs) and by utilizing designs that are inexpensive to manufacture and maintain. Further, for commercial operators, higher profits can be achieved by being able to transport more customers and/or goods for a given flight. Because the additional payload increases takeoff weight, it is even more desirable to reduce takeoff drag for takeoff-climb-limited missions. nothing new here right ? The objectives of reducing drag, reducing weight, and reducing complexity (hence manufacturing and maintenance costs) are often in conflict. Adding a wingtip extension member can reduce the drag of a given airplane, but this will usually require increasing structural weight IE winglets bend the hell out of wing roots because of the increased moment arm therefore you need to beef up the wing judiciously on shitty wing designs the weight increase can washout the efficiency increase by additing a winglet in the first place.. Sooooooo Weight increases are due to the weight of the wingtip extension member and also due to strengthening required of the existing wing structure in order to support the increased bending moments exerted by the wingtip extension member. Additional weight penalties can also occur if the extension exacerbates flutter. IE if you fiddle with ANY WING design after flight test you change its natural resonance IE it becomes a new tuning fork heaven forbid it will like to resonate at cruise mach IE flutter.. 747 has a speed advantage over the A340 because of flutter the old crusty 747 hauls ass the A340 could haul ass if it didnt like to shake itself apart at VMO.. ( my personal opinion based on 2nd hand info .. This conflict between the benefits of reduced drag and the disadvantages of increased weight has motivated designers to find an optimal balance between the two when designing a wingtip extension member. One such attempt is described in U. S. Pat. No. 5,039,032, incorporated herein by reference. The 032 patent describes a number of wingspan extensions termed High Taper Wing Tip Extensions. These are also known as raked wingtips. Raked wingtips are generally characterized by leading-edge sweep angles that are g reater than the main wing sweep angles and are significantly tapered (i. . , the chord length decreases in the spanwise direction. ) Raked wingtips offer several advantages, some of which are outlined in the 032 patent. These advantages include the aerodynamic benefit of drag reduction due to increased wingspan, and a number of weight-reduction advantages (relative to simply extending the wingspan of an existing conventional main wing. ) Two weight advantages are attributed to the wingtip taper. At high-load-factor structural design conditions, the smaller chords are subjected to less load and they result in less induced loading on the outboard main wing. These are both factors that reduce the bending moment that the inboard wing must support. Two more weight advantages are attributed to leading-edge sweep. The leading-edge sweep of a raked wingtip results in the center of pressure being located further aft than for a simple extension of an existing conventional main wing. At the high load-factor structural design conditions, this relative aft-movement of the center of pressure causes the sections of the main wing adjacent to the raked wingtip to be twisted more leading-edge-down, thus reducing the loading on these sections and the bending moment that the inboard wing must support. The relative aft-movement of the center of pressure also acts to attenuate flutter. The raked wingtips described in patent 032 range from moderate span extensions (e. g. , 6% increase in span) to large span extensions (e. g. , 12% increase in span). It is the large span extensions that offer the greatest benefits. Regardless of these benefits, there are challenges in implementing raked wingtips on some aircraft. For example, on aircraft designed to operate at high subsonic Mach numbers (i. e. , at or greater than about 0. 0) there is a tendency for the boundary layer on the upper surface of each raked wingtip to separate under high-lift conditions (such as during takeoff climb or landing). This boundary-layer separation has the potential to increase drag and to generate premature buffet. The primary motivation for adding a wingspan extension is to increase the lift-to-drag ratio (primarily by decreasing drag), both during cruise and takeoff climb. If there is a significant drag incre ase due to large-scale boundary-layer separation under takeoff climb conditions, part or all of the takeoff-climb improvement is lost. When the raked wingtip boundary layer separates, there is also a possibility of unsteady aerodynamic forces strong enough to vibrate the airplane structure and to be perceived by the airplane pilot as buffet indicating the onset of aerodynamic wing stall. If this form of buffet occurs prematurely (that is, within what would normally be the operating envelope), stall speed must be declared at a speed significantly higher than the aerodynamic wing stall, thus degrading airplane performance. The 032 patent acknowledges the tendency of the boundary layers on raked wingtips to separate under high-lift conditions. In the 032 patent, raked wingtips are categorized into two groups, one group with leading-edge sweep angles between 40 and 50 degrees and another with leading-edge sweep angles between 50 and 60 degrees. For the first group, the 032 patent indicates that some form of a mechanical leading-edge high-lift device (such as a slat) is required in order to avoid premature low-speed buffet. The addition of a mechanical leading-edge high-lift device avoids premature boundary-layer separation, alleviating the buffet problem, but it adds profile drag, weight, complexity, and cost. Under some circumstances, these disadvantages may outweigh the benefits of the raked wingtip. For the second group, the 032 patent indicates that the wingtip leading-edge sweep is great enough to trigger the formation of a stable leading-edge vortex, and that therefore premature buffet will not occur and no high-lift mechanisms are required. The inventors herein have discovered that under some circumstances, leading-edge sweep angles of 50 to 60 degrees may not be adequate to ensure the formation of a stable leading-edge vortex when conventional transonic airfoils are used for the raked wingtip geometry. As used herein, transonic airfoils are those designed to operate at high subsonic freestream Mach numbers, with significant regions of locally supersonic flow. Additionally, even if the presence of a stable leading-edge vortex prevents premature buffet, such a vortex may result in higher drag than if the majority of the raked wingtip boundary layer could be kept attached over the range of typical operating conditions. Further, the technical viability of any raked wingtip would be improved greatly if there was no requirement for a leading-edge high-lift mechanism. Thus, the evolution of the improved raked wingtip, particularly for use with aircraft that operate at high subsonic Mach numbers. The ideal raked wingtip would provide the aerodynamic benefits of an increase in wing span, while avoiding premature boundary-layer separation under high-lift conditions. Further, the optimal arrangement would not add significantly to wing weight or wing complexity. Both the raked wingtip ; the blunt raked wingtip are Boeing inventions. Airbus A330/A340 uses the 747-400 winglet. The A320 family of airplanes uses the AIRBUS ( opps BAE UK developed ) delta winglet that has an opposite plan-form camber on the upper ; lower half of the winglet to gracefully control the direction of the vortices comming off the top ; bottom of the wings to kinda mesh them together non distructively a clever design by a company with a fine British aircraft heritage .. god save the queen .. All that being said winglets on business jets regardless of eficiency increases are for sex- appeal ..