Causes of the Increase in FDI Flows Across Countries

Causes of the Increase in FDI Flows Across Countries Growth literature The significant increase in FDI flows across countries is a clear indication of globalization of the world economies over the past 2 decades. Neoclassical model of growth as well as endogenous growth models provides the basis for most of the empirical work on the FDI-GROWH relationship. According to the neoclassical growth theory, economic growth generally comes from two sources: factors accumulation and total factor productivity growth (Felipe, 1997). Growth is easier to quantity and analyse while difficulties abound in the measurement of the Total Factor Production growth due to the lack of appropriate economic modeling techniques as well as lack of appropriate data. Neoclassical growth projected that based on aggregate production function that relates the total output of an economy to the aggregate amount of the labour, human capital, physical capital and level of technology, poor countries will grow faster than rich countries. Neoclassical growth theory implies that return on cap ital stock should be higher in poor countries than in rich countries. This implies that the impact of FDI is limited to its output growth effect in the short run, with no change in the long run growth rate. On the other hand, the Endogenous growth literature state that FDI can not only contribute to the economic growth through capital formation and technology transfers (Blomstrom et al.1996) but also do so through the augmentation of the level of knowledge through labour training and skill acquisition ( De Mello, 1999). Endogenous growth models emphasize on other channels including human capital accumulation and externalities or spillover effect through which FDI can promote growth in the long run. (Romer 1986, Loungani and Razin,2001). The three channels identify through which FDI affects growth; First, FDI increases capital accumulation in the host country by introducing new inputs and technologies (Dunning, 1993; Blomstrom et al. 1996). Second, FDI may stimulate knowledge transfers, both in terms of labour training and skill acquisition and by introducing alternative management practices and better organizational arrangements (De Mello, 1997).Third, FDI increases competition in the h ost country by overcoming entry barriers and reducing the market power of existing firms. Channels of Growth When a country’s foreign investment increase international production also increase rapidly, and thus investment only contribute towards the expansion of national markets but also larger scale regional and global markets( UNCTAD,1990). It is obvious that FDI will convey many benefits to the host country; one of them is economic growth. Hermes and Lensink(2000) has summarized different channels through which positive externalities related with FDI can arise namely: i)competition channel where increased competition is likely to result in increased productivity, investment in human and physical capital and efficiency. Increased competition may lead to changes in the industrial structure towards more competitiveness and more export oriented activities. ii) Training channel through increased training of labour and administration. FDI can also increase the quality of domestic human capital and improve the knowhow and managerial skills of local firms. (learning by watching effect) ii i) Linkages channel whereby foreign investment is often accompanied by technology transfer. FDI can encourage the adoption of new technology in the production process through capital spillovers. According to De Mello (1997) and OECD (2002), FDI affect growth is likely to depend on the economic and technological conditions in the host country. Therefore, technological spillover is possible only when there is certain minimum or threshold level of human capital available in the host country (Borensztein, et al. 1998) iv) domestic firms imitate the move advance technologies used by foreign firms commonly termed as the ‘demonstration channel’. By adapting new technologies and ideas (i.e. technological diffusion) they may catch up to the levels of technology in developed countries. The use of new technologies may be important in contributing to higher productivity of capital and labour in the host country. Local firms have an opportunity to improve their efficiency by learnin g and interacting with foreign firms. Benefits of FDI The economic rationale for offering special incentive to attract FDI frequently derives from the belief that foreign investment produces externalities in the form of technology transfers and spillovers. Spillover effects may take place when the entry or presence of foreign firms leads to productivity and efficiency benefits in the host country’s local firms (Blomstrà ¶m and Kokko 1998). There are two forms of spillover effects that foreign firms bring to the local industries which are Inter- and intra- industry spillover effects. Horizontal spillover also called intra-industry spillovers correspond to technological externalities associated with specific knowledge, such as management strategy and know-how and superior production techniques. Kokko (1996) argue that domestic firms benefits from the entry of foreign firms competition, imitation and workers’ productivity. Local firms will allocate more resources to product development and quality assurance in order to remain competitive. Gorg and Greenaway (2004) state that there are 4 channels through which horizontal spillover might occur Imitation which involves simulation of exclusive technology, management and marketing skills of foreign firms such that it will improve the productivity of local firms( Halpenn and Murakozy,2007) Human capital and labour turnover; Gory and Greenaway (2004) identify two mechanisms through which there is productivity spillover. First a direct spillover to complementary worker, as skilled labour working alongside labour tends to raise productivity of the latter. Second, workers that move carry knowledge with them new technology, new management techniques and consequently can become direct agents of technology transfer. Competition- as competition increase due to foreign firms, domestic firms have to introduce new technology in order to increase their efficiency(Glass and Saggi,2002) Export- local firms can learn penetration tactics which are viewed as essential for the export market. Hence they may experience cost reduction with exportation Recent studies based on micro-level panel data call into question the evidence of positive spillover and find either insignificant or negative intra industry spillovers. Haddad and Harrison (1993) find no significant relationship between the level of FDI and domestic firm’s productivity growth in the same sector for Morocco in late 80s. Aitken and Harrison (1999) find a negative relationship between the two variables for Venezuela manufacturing industries for the period 1970 to 1980. Vertical spillover also known as inter-industry spillovers consists of externalities occurring due to FDI through backward and forward linkages to input market. Usually when MNE make transaction with local suppliers and customers it may lead to the transfer of technology and know-how which subsequently will improve the intermediate product. MNE can increase the demand for the local input as a backward link to intermediate good suppliers hence increasing the productivity of domestic firms. Productivity can also be increase through forward linkages when domestic producers purchase more sophisticated intermediate goods from MNEs. Moran (2001) states that there are case studies which show that knowledge is transferred from downstream foreign affiliates to upstream, training and assistance as well as supervision in implementation of new technologies

Far from the madding crowd Assignment Essay

Gabriel never really liked Troy, as he was able to win the woman that he loved without loving her in return. He feels as though Troy may have used Bathsheba to take over the farm. By meditating he allows himself to escape Troy’s world and to return to being himself. The only reason that the men stay at Troy’s party is because they want to make a good impression and also to ensure a winter’s work. Had any man refused to stay and get drunk with Troy, they would most likely have lost their jobs, and would be stuck through the winter. Had Bathsheba, Gabriel or Boldwood held the party, the men would have been free to come and go as they pleased, without the risk of losing their jobs or fear of letting anyone down. This all goes to show the kind of person that Troy is, the way that he is very conceited and feels that he has the authority to push people around as he is better than them. The weather and setting of the storm clearly projects the feelings and moods of the characters. While Gabriel is outside struggling to secure the farm, the thunder symbolises his anger. It shows how he could erupt at any minute because of Troy, yet the calm, quiet breaks in the thunder shows us that he is calm and tolerant, and the fact that he is risking his life for Bathsheba. The rustic characters are very important to the event of the storm, they give Hardy a background to show us the real person that Troy is. If there were only Gabriel, Boldwood and Bathsheba on the farm it would be very difficult to show Troy’s selfishness as one of them might have stood up to and challenged him. As the rustics are at the bottom of the farms hierarchy they are a lot more responsive to Troy’s orders and suggestions. When Troy holds the party in the barn, he makes the reader think that he is not as bad as they might have first thought, he has gone to the trouble of setting up a big party and has invited everyone that is linked with the farm. It is only when he starts to force the men into drinking more than they can handle, when he becomes too forceful it is then that the reader’s opinion of Troy begins to change. Bathsheba tries to reason with Troy to save the men. She says: â€Å"No-don’t give it to them-pray don’t, Frank! It will only do them harm: they have had enough of everything. † In doing this, Bathsheba clearly knows that Troy has gone too far, she can tell that the men can not handle any more alcohol. At this point Troy is only getting started, he does not care for his men, and he just wants to have a good time. In fear that Bathsheba could do something to ruin his party he immediately orders all of the women and children to leave so that he can get the men as drunk as he wishes. Troy shows a typical Victorian male attitude to women by making them all leave the barn, by doing so he shows his true power and ability to manipulate people to suit himself. The majority of Victorian men see women as lower than themselves, not as equals. Troy knows that he has the ability to make them do what ever he wishes. The morning after the storm Gabriel meets Boldwood on his detour back to the farm, Boldwood seems very distant as he struggles to hear and understand what Gabriel is saying to him. Gabriel is shocked to find that the wise and experienced farmer Boldwood has overlooked the ricks on his farm, they been left unprotected and vulnerable to the storm throughout the night. It can clearly be seen that Boldwood is not himself by his reply to Gabriel asking whether his ricks had been protected: â€Å"O yes. ‘ Boldwood added, after an interval of silence: ‘What did you ask, Oak? ‘ I agree that the characters are judged by each other and by the reader through their devotion to the land as the most devoted characters prevail in the end. Gabriel Oak, the most respected and caring of the land, has the trust of the whole farm, the reader and nature. Bathsheba, a caring and devoted businesswoman, is only looking for the opportunity to manage her own farm and to look after the crops. She is again liked by all and obsessed by Boldwood, in the end she too prevails as she ends up in love with a man who truly cares for her, her feelings and the farm. Boldwood, a very mature and experienced farmer who cares dearly for his farm, is lead astray by a joke valentine’s, after he discovers that Bathsheba sent the card he becomes obsessed with her and loses all care for his farm and land. Troy, an untrustworthy, lying, selfish and conceited soldier who only has time for himself ends up in the worst possible position, he has no love for the land and does not even care about the farm, he is hated by almost all of the characters and eventually by his own wife. At the end of the novel his sinful lifestyle takes its toll as he is brutally murdered by Boldwood. Boldwood who lost what little devotion he had also ends up dead, though his ending does not come as a result of a sinful life, but an obsession that drove him to madness, and finally to the grave.

Essay on Twelfth Nights Reflection Upon Women - 710 Words

Twelfth Nights Reflection Upon Women When Shakespeare wrote the play Twelfth Night in about 1602, women were generally thought of inferior to men meaning they were lower class. Shakespeare does no accept this idea. He shows this when he was asked by Queen Elizabeth 1 to write a play with love and comedy, the two main characters are very strong women and the male characters are very weak. Olivia is rich, noble and very emotional and very strong in character. In act 1 scene 2 we learn that Olivia’s brother and father have recently passed away, Olivia has a very strong love for her brother because of this she made some extreme vows: she will not show her face at ample view, â€Å"but like a†¦show more content†¦She has also fallen in love with Cesario/Viola who is a servant, which was not thought of as appropriate for noble women, Olivia did not care what other people thought, again, showing her strength of character. Olivia refused Duke Orsino’s love, this would have been very hard to do as Orsino is the duke of Illyria, he is the perfect husband as he is noble, of great estate, valiant, gracious, physically good looking, learned and free, he would have been what every women was looking for, but not Olivia, Olivia knows what she wants and is strong enough to find this for herself. Olivia lets her true feelings show, she does not hide them away. As the vows that Olivia made were very extreme and almost impossible to keep, she decided to break some of them showing her strength and realisation of this impossible task. She had now fallen in love and although she had vowed never to show her face in public, whilst mourning for seven years, love had forced her to change her mind showing her love for Cesario/ Viola was stronger than her love for her brother. Viola is a very noble, intelligent lady who was very witty and clever in speeches which isn’t what women were normally like showing that Viola is a strong women compared to other women, who has been shipwrecked alone and has lost all of her belongings; this takes a very strong character to be able to cope with thisShow MoreRelatedWisdom in Twelfth Night Essay2738 Words   |  11 PagesBeyond Seriousness to Wisdom in Twelfth Night      Ã‚  Ã‚  Ã‚  Ã‚   Shakespeare seems preoccupied with madness and folly in Twelfth Night. The word fool and its variants (foolery, foolish, and so forth) appear eighty times in the play, and the word folly occurs seven times. There are, in addition, other means of indicating foolishness such as Marias Now, sir, thought is free (1.3.67). As Feste suggests, Foolery ... does walk about the orb like the sun; it shines everywhere (3.1.39-40). Read MoreWilliam Shakespeares As You Like It As a Study of Perception and Misperception2315 Words   |  10 Pageslabour under the false impression that something you have seen, heard or become aware of is unequivocally correct. Applying this to plays such as Twelfth Night, King Lear, Macbeth, Othello and, of course, As You Like It, it becomes clear that the themes of perception and misperception are central to their plots. In Twelfth Night, Viola disguises herself as Cesario, a young man, with the objective of gaining admission into Olivias court. King Lear has the concept of blindnessRead MoreA Picatrix Miscellany52019 Words   |  209 Pagesthe power of the degrees with that of the planets (pp.12-14). Some passages are related to the Kità ¢b al-Baht of Jà ¢bir, which is laid under such heavy contribution later in The Aim of the Sage. Chapter 4. Since the successful use of talismans depends upon their being used in conjunction with the correct constellations, this chapter is devoted to the latter. The author gives a descriptive list of the twenty-eight mansions of the moon, according to the â€Å"Indian† system, and assigns to each its correctRead MoreLogical Reasoning189930 Words   |  760 Pagesauthor endorse you or your use of the work). (2) Noncommercial You may not use this work for commercial purposes (for example, by inserting passages into a book that is sold to students). (3) No Derivative Works You may not alter, transform, or build upon this work. An earlier version of the book was published by Wadsworth Publishing Company, Belmont, California USA in 1993 with ISBN number 0-534-17688-7. When Wadsworth decided no longer to print the book, they returned their publishing rights toRead MoreExploring Corporate Strategy - Case164366 Words   |  658 PagesWashington Post, 11 February (2005). ECS8C_C02.qxd 22/10/2007 11:53 Page 613 THE GLOBAL PHARMACEUTICAL INDUSTRY 613 BOX 2 Globalisation or US dominance? Biotechnology companies are ‘born global’: from their inception they draw upon a global pool of collaborators and investors, rather than growing from small domestic beginnings. Here once again the US dominates: publicly traded biotechs employ over four times more people in the USA than the EU, with a similar ratio for RD spend

The Significance of Childhood and Teen Depression - Free Essay Example

Sample details Pages: 2 Words: 678 Downloads: 4 Date added: 2019/03/13 Category Sociology Essay Level High school Tags: Childhood Essay Did you like this example? The Significance of Childhood and Teen Depression Everyone encounters moments when they feel gloomy or unhappy. These are normal emotions that are a part of being a human. It is difficult, however, for people to notice the difference between feelings of sadness and feelings of depression. Don’t waste time! Our writers will create an original "The Significance of Childhood and Teen Depression" essay for you Create order Depression is a self-destructing, unhealthy disorder that produces a lot of harm to ones mind that affects every aspect of a persons life- the way they feel thinks, and behave. To differentiate the difference between being sad or being depressed, there are many signs and symptoms that can help people see if they are depressed. Common traces of depression are shown in people that have a loss of energy, mood swings, or suicidal thoughts. When children or teenagers demonstrate behavior of increased anxiety in a relationship, the effects are emotional health, withdrawal, and suicidal thoughts that are alarming signs that they have depression. Emotional health is a necessary part of a persons overall well-being. Emotionally healthy people are focused, flexible, and creative during good and bad times because they can recognize and appropriately express their emotions (Heather). People that have a poor emotional health are most likely struggling with depression. Everyone goes through rough times in life; however, the difference between those that have a good emotional health verses those who have depression is how they act during those times. Some of the many signs known to insure if a child or adolescent has depression are frequent sadness, decreased interest in favorite activities, and increased irritability (AACAP). Mental and emotional health is an important part of children and teenagers overall health. Everyday it is worsening that in a five year period, rates of severe youth depression have increased and of those with severe depression, 76% of youth are left with no or insufficient treatment (The State of Mental Health in America). Access to treatments are provided for this serious mental illness, yet many still choose to not get the help they need. Some of the main reasons for this can be because of fear, shame, and hopelessness. These barriers prevent people from seeking care to relieve their affliction. (Add a transition sentence) Children and teenagers have an urgency to isolate themselves from people when struggling with depression. They slowly lose interest in activities they used to love causing them to discontinue doing the things they used to enjoy. The three common types of social isolation include emotional withdrawal, social withdrawal, and colleague withdrawal. Emotional withdrawal is seen in children and teens that pull away from family members or close friends. They do this because they feel worthless and misunderstood by people. Emotional withdrawal ties in with social withdrawal because they both lead up to an individual having a lack of social interaction. Colleague withdrawal is specifically targeted towards teenagers or adults with jobs. Signs of this behavior is shown when workers are present at work but are not contributing any effort in conversations with coworkers. (add more detail here). It is common for individuals to get confused on the key difference between social isolation and loneliness. Loneliness associates with people who feel sad or distress about being by themselves by feeling disconnected from the world around them. Social isolation occurs when a person is physically separated from other people and their environment (Loneliness and Isolation). While both loneliness and isolation differ, they are both associated with the increased risk of depression. (Add a transition sentence) When children and teenagers go through str essful events in their lives, it is usual to encounter suicidal thoughts. When undergoing these thoughts, individuals feel lonely and isolated- two emotions associated with increased suicide risk. In America, over 50 percent of all people who die by suicide suffer from major depression (AFSP). The most common signs of people that are considering taking their own lives are seen in people who have a change in personality, aggressive behaviors, or drastic mood changes. Suicide and depression are related but not everyone diagnosed with depression will attempt suicide. Both of these issues are mental disorders that can be treated with proper treatment plans.

The Different Aspects Of Quality Curriculum - 838 Words

The different aspects of quality curriculum include being â€Å"coherent, interesting, time-worthy, standards aligned, (and) differentiated† (Erickson, 2007, p. 86). This unit incorporates all aspects of the type of quality curriculum that Erickson has defined which â€Å"strives for student engagement, liveliness, challenge, and support† (Tomlinson et al, 2009, p. 37). Throughout the unit, the Virginia State Standards in Earth Science are being addressed to ensure that the students are prepared for the EOC test. My lessons enable the students to act like a practitioner while learning about space and their objects through their own interests. This is not done in a manner that is strictly astronomy, rather the students are making connections between other disciplines which ultimately allows them to delve deeper into remembering a particular topic (Erickson, 2007, p. 38). Each lesson starts off with a pre-assessment and a â€Å"hook† to get students interested in the topic. By having this, I am able to promote curiosity in students, while helping to maintain the meaning that is central to the unit (Tomlinson et al, 2009, p. 47). Then the lesson follows depending upon the topic (space objects, experiments, or space probe creation) with the students being required to use and process the information while they also have to perceive and manage it mentally (Tomlinson et al, 2009, p. 52). These lessons range from the students having to work in groups (large and small) to alone, whichShow MoreRelatedCritically Discuss A Major Global Issue Facing Your Own Country1630 Words   |  7 PagesCritically discuss a major global issue facing your own country (1500 words) Quality of higher education in Vietnam 1. Introduction In the 21st century, education continuous keep the key role in development and consequently, the attention of public to quality of education are risen highly, especially to higher education. 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Most importantly, the finding in the papers shows that the quality of education are caused due to economic developmentRead MoreThe National Quality Standard Requirements For Early Childhood Education1196 Words   |  5 Pageseducators have to keep in mind the aspect of life where the children has to interact with the immediate environment and and sensory awareness. Moreover, the children has to learn to take responsibilities of their actions therefore, the educators role has expanded as there is a more complex and diverse society. â€Å"In December 2009, all Australian governments, through the Council of Australian Governments (COAG), agreed to a partnership to establish a National Quality Framework for Early Childhood EducationRead MoreCurriculum and Syllabus Design1684 Words   |  7 Pages1 DISCUSSION A. DEFINITION 1. 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Native Language Support Free Essays

When examining sociolinguistics views relating to whether or not children should have support in their native languages, there are surprisingly several theories. With each article and author, with each study, a new idea is formed. Likewise, non-linguists responded the same way. We will write a custom essay sample on Native Language Support or any similar topic only for you Order Now For the interviews, I interviewed Isaac, Betty, and Chantelle. All thought that support came from the family and they had various reasons why they thought so; when it came to potential problems, social factors were the answer. Native Language Support Betty believed that there should definitely be support for native language speaking. This support should be centered around the home and around family. She elaborated: â€Å"What does it look like? Well, I would say that the more interaction with the parents and family, the better. Sit down and talk. Read, write, just use the language. That’s supporting it. Practice is support. † She believed that the government should not pressure English only at home. They have no authority to have influence what is spoken at home at all. Isaac was eerily similar in his viewpoints: he thought children should be able to speak to their parents and family in their native language. They could easily be supported in this by having TV channels accessible, by having movies, books, a strong community tie with others speaking the same language. He stressed that he had TV while growing up and international channels that helped him learn fluent Spanish that sounded more native than the broken Spanish he would have spoken with no contact with other people speaking the language. Today, he’s able to speak with others with no issues, and has no issues with English, either. Chantelle was of slightly different opinion. She thought it was definitely better to use some English at home, along with the native language. Parents should be able to use some English to make sure that their children know and understand the language that they need to use in the outside world. To her, there should be a balance between the two. Essentially, yes, children should be supported in their native language, but not to the same extent as Betty and Isaac want. She also adamantly refused that the government have anything to do with languages, interestingly enough. Why? Why Not? Children can focus on their native language at home because they have more than enough opportunities to learn and practice their English outside of school. They naturally tend to utilize extracurriculars and media to assimilate or adapt to the mainstream culture. Isaac and Betty both explained these points and mentioned that speaking a native language is a freedom that the US has no right to meddle with. â€Å"English is not the official language, and we do not need to speak it in the privacy of our homes. † When asked why support should come from family, Betty said, â€Å"where better than to get a sense of self than from family? Where else to get someone speaking with you than your own community? However, this view establishes a sort of dichotomy between home life and school, and it may hinder progress, according to Mushi (2010). The government shouldn’t have much to do with the languages because â€Å"it’s like the freedom of religion. It gives others reason to discriminate. The country should not be biased against a certain group and language counts in this category. † This idea really contrasts with Wil ey said about the role of English. Its important to note that English functions as if it was the official language, even if it is not official. Therefore, according to the article, it is functionally important, and relevant to emphasize English learning. Chantelle’s government position consists of a rejection that the government is capable of handling such a sensitive subject. â€Å"I disagree with English only rules, I think it’s completely insensitive. The government indirectly forces you to learn languages, and that’s wrong. It’s as personal as your own belief systems. † Problems with the Approaches Isaac saw â€Å"no serious problem with someone speaking their language at home. Maybe now the kids will grow up knowing how to curse in a whole bunch of languages. This was the extent of his issues. For government interactions, though, he pointed out that the government did not interfere with languages to help diversity; it interfered for it’s own gains, own political and international agenda. There really is not as strong an incentive for people to learn other languages. Thus, the g overnment helping to support native languages would not be effective. Filmore points out in one of the points made, that the government supporting bilingual education would enable more students to pass high school as opposed to dropping out. This has no self centered motives, but a desire to have more multilingual speakers have an education (2004). Chantelle and Betty were similar in that they both recognized that some parents are unwilling to support native tongues. Some parents are not able to. Sometimes, the children themselves reject the native language. Each family and case is a different situation, and it’s sensitive enough not to be generalized. Some individuals may not like their culture or language, either, so the support systems definitely has it’s flaws. And this view makes sense, because because Filmore (2004) states:â€Å"for many, English is not just a language. It’s synonymous with being American. † Conclusion Overall, I did not get the reactions I was expecting. Most people seem to view language as a private and personal thing, almost like their religion. They don’t want government interference typically, but only do when it benefits them. One thing Filmore pointed out was that the public thinks the use of languages other than English in school and everywhere else means that the speakers of those language don’t change or learn English (2004). All of the responses from the public contradicted this linguistic thought, however. It may be that the more people one interviews, the more the linguistic idea will be supported, but in this case, the public did not think there was a correlation between these two ideas. The public thought it was perfectly acceptable to speak another language at home, and speak English outside, in the workforce, and be multilingual. They didn’t think the lives would be dichotomous, but it would blend out of necessity. It would ultimately become, as cliched as it sounds, the best of both worlds. How to cite Native Language Support, Essay examples

Management and Behavior

Question: Case study about the Management and Behavior. Answer: Identify the main issues that Jack needs to consider and provide evidence from the case study to support your answer In the case study, it has been found that Glasshouse Avocados is a fruit company that is operating from last seven years. Jacks father Errol started the business. He quickly made progress and started to grow avocado crops within five years. He was also at the time producing passion fruit and custard apple. His determination was to improve the productivity continuously of his firm. It was going nicely (Preiser 2013). Jack was taking care of the business after the demise of his father. Then he groomed his daughter in the business too. Avocados were doing business well with other fruits like Passion fruits and Custard apple. One occasion Jack sensed something was going wrong. It was an environmental changes coming up. Downward since 1985 (3000 tones) there had been many factors in play (Rippen et al. 2013). The supermarket business in Queensland had become increasingly consolidated, new boutique operators had set up on the Sunshine Coast targeting the local organic market with high qual ity product and receiving a premium price; and then there were the cheap overseas imports. This competitive environment was exacerbated by growers from further north in the state working with food processers to put avocado in a tube. These forces were driving oversupply of product and lower prices at the farm gate for the local producers like Glasshouse Avocados (Langford et al. 2014). 2014/15 1850 2013/14 1700 2012/13 2000 2011/12 2300 It can be seen that there was a sudden change in the production. The downfall started from the year 2012. Aside from these competitive forces, the challenge as Jack saw things was the increasing cost of maintaining irrigation equipment and managing root rot in the plants around the orchard (Lereboullet Beltrando and Bardsley 2013). The summer months seemed to be getting hotter and longer, and this was affecting the size and quality of the avocados. Jack was concerned at the trend of yields and had seen some of his farming neighbors scaling back production due to rotation and harvesting problems. Jack could see they were not focused on key success factors of nutrition management for the trees, correct irrigation techniques and ensuring the avocado pickers were well trained in contemporary harvesting techniques. The business was fortunate in some ways there were alternatives that could be made due to access to capital resources and skilled personnel (Langford et al. 2014). Explain how Jack would benefit from applying the rational decision-making process to address the issues identified in question one Decision-making is a skill. The leaders should be good if they use proactive decision-making skills. A leader has to belief in his intuitions before taking a decision. The subordinates usually depends on the leader of they face any difficulties. They look to their leaders for the solution (Rekhy and McConchie 2014). Rational decision-making skills help to find solutions by justifying the situation by proper analysis. Jack did not want to think about this but wondered to himself if it had merit. Elias suggested it might be time to look at alternative revenue streams to keep the family business viable for decades to come (Dominiak and Ekman 2013). Elias had handed his Father an insert from the local paper it was an information evening hosted by The Sunshine Coast City Council and sponsored by a local Real Estate Agent. They were looking for landholders to attend a seminar to hear industry information concerning local land development opportunities. The basis for this was the establish ment of a new high school and town centre close to Glasshouse Avocados. Elias thought that a portion of the farm could be developed for townhouse living. It was evident that the local council would be looking to adjust local zoning laws to make this feasible. Elias said that he could be a potential project manager of the residential development and this would future proof the business in the face of threats to the crop production. Jack glanced down at the local paper spotting the phone number to register for the seminar. His hand rested on his phone and he contemplated whether he should make the call (Haider 2013). Describe the different resources that are available to Jack and Provide evidence from the case study to support your answer Jack had different resources to choose from. He believed in his own skills and thrived on his brothers knowledge to find solution at the time of difficulty (Langford et al. 2014). Jacquis brother Elias had majored in Marketing and Creative Industries, moving to Sydney and working for Unilever Australasia for the past three years. Elias had worked on the Flora brand and witnessed first-hand the benefits of focused capability in food processing, packaging and marketing. Elias had returned to the Glasshouse Avocados now and this was making for an interesting dynamic in the family business. Elias had taken on the role of Business Development Manager, and had communicated to his sister and his dad, his thoughts concerning the future. Elias felt that it required deeper consideration (Aziz et al. 2016). Elias had put forward some ideas concerning developing or expanding into specialty niche markets such as Macadamias or Kiwi Fruit in order to further increase capacity and yield across the g rowing seasons. Elias agreed with his Father - the competition from cheap imports was driving down prices and influencing profits of Avocados. Elias argued that they were relying too much on this revenue stream and failing to act now would lead to catastrophic outcomes in the future (Cloney et al. 2014). Identify, Explain and apply one of the organizational strategy frameworks that Jack might find helpful as he considers the future of Glasshouse Avocadoes. Jacks father laid a solid foundation up on which he could build a big venture. Errol worked hard developing local networks to distribute his produce on the Sunshine Coast and within a few years had grown to the point where he harnessed local connections to transport excess stock to the Rocklea markets in Brisbane. Jack knew his Father was ahead of his time. Jack admired the way Errol developed relationships with other growers in order to share transport costs and overheads, achieving economies of scale to reach bigger markets. At the same time, Errol was fine-tuning his techniques for planting, irrigation, pruning, yield management and pest control (Dominiak and Ekman 2013). Errol knew that these factors had to be continually improved in order to leave behind a sustainable business for his children. Jack continued the legacy of his father. Jack was aware that Errol was ahead of his time. He had a sharp business brain. He was building trust and channeling his staffs according to the m arket needs. Jack had rightly mentored his daughter to secure her in the line of business. He believed in the extension of the learned skills and techniques (Rekhy and McConchie 2014). At the time Elias struggled to make the business run Jack could have enter the scene. He depended on Elias but Elias could not secure the company from the danger zone. Elias said they should offer the Sunshine Coast City council about their land. That might help him to become the new general manager of the project. He said it would help them to counter future threat coming from the crop fields. Jack could have used the 7S model for organizational development (Cloney et al. 2014). Hard Elements Soft Elements Strategy Structure Systems Shared Values Skills Style Staff Hard and soft values are there to be categorized. The hard processes are the formal processes and the soft processes are more difficult to describe. They are less tangible and more influenced by the culture. These two types of elements can lead the organization to success (Rekhy and McConchie 2014). Strategy Networking strategy and customer relationship strategy Structure Family business structure based on hierarchy Systems Decision were taken by the general manager and the directors of the company Shared Values high quality produce was critical for success in achieving the vision Style Rational decision-making style Staffs Sufficient staffs Skills The organization had skills like intelligence and making marketing channels by relationship build up (Ross and Boje 2015). References Aziz, S.A., Olival, K.J., Bumrungsri, S., Richards, G.C. and Racey, P.A., 2016. The conflict between pteropodid bats and fruit growers: species, legislation and mitigation. InBats in the Anthropocene: Conservation of Bats in a Changing World(pp. 377-426). 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