Development of Accounting Systems in China

Development of Accounting Systems in China Abstract This report put the accounting development in China into perspective. Describe the history and changes in the accounting environment of China during the recent economic reforms by using the Greys (1988) accounting value to analyzing the culture impact on accounting systems development in China, and then, illustrate the institutional and environmental factors which driven Chinas accounting system made changes, the reasons of those changes and then describes the major problem in Chinas accounting development as well as to point out whether would be changes in the future. Introduction This report is aim to describe the development of accounting system in China, including the history of Chinas accounting except Hong Kong, the one country, two systems policy allowed Hong Kong remain its market-led capitalist system. Then, it would describe the traditional use of accounting and the factors that influenced Chinas accounting development as well as what the changes it has made what the major problems that China has face in developing the accounting system. Then, it would discuss whether China would have further changes of accounting system in the future in my opinion. There has a conclusion in the end. Country profile China had more than 1.34 billion population at the end of 2010. National Bureau of Statistics (NBS) announced Chinas GDP reaching 39.79 trillion yuan (approximately 6.04 trillion US dollars) over the course of 2010. (Du Xiaodan, 2011 Paul Pennay, 2011) Brief history of  accounting in China According to Zhang Guohua (2005), Chinas economy has undergone three periods of change since 1949: 1949- 1978: a socialist, centrally controlled, planned economy. 1979- 1992: socialist commodity economy. 1992- present: socialist market economy. Chinas accounting system has changed with the economy, almost like the period of the Chinas economy. Development of accounting systems can generally be divided into the four stages: (more detailed information of Chinas accounting history can be found in Appendix 1.) 1949-1978 was the first stage which the uniform accounting system and the 1978-1992, Chinas accounting system has during the transition and the construction. Then, from 1992 to 1997, the construction of a new accounting system has issued. The fourth period is from 1997 to present. The ASC was set up in October 1998 by the Ministry of Finance to oversee the development of a complete set of Chinese GAAP. In order to join in the WTO, Chinas accounting standards made some change to closer to IFRS/IASs. The new Chinese Accounting Standards were adopted by all listed companies from 1 January 2007. Chinese Accounting Standards will continue to be updated in line with IFRS developments. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005 The Institute of Chartered Accountants of Scotland, 2010) Traditional use in China The basic function of financial accounting is to accounting and monitoring. With the founding of the PRC in 1949, all resources of production in the country came under State ownership. Accounting was primarily used for establishing information and reporting system for the implementation of national economic policies and resource allocation in the planned economy. (InterChina, 2009) The objectives of financial reporting system have been stated to serves one user primarily, the government, and then it is stated very broadly to strengthen accounting work of share enterprise, to protect the legitimate interest of investors and creditorsà ¢Ã¢â€š ¬Ã‚ ¦ (Ministry of Finance, 1992).The change in industry and ownership specific accounting system is due to the need of macroeconomic planning require a uniform system. (Tang, Qingliang, 2000) During the developing of accounting system, there are a number of users makes use of accounting in different purpose. Such as Shareholders use accounts to examine the health of business, and the dividends that they can expect to make. The bank may use the account to see how much loan they would provide for the company, and government would see the how much tax the company needs to pay. The main use for accounting is to comply with legal and other requirements, to provide information for stakeholders about financial performance and viability, to provide managers with information for decision making and to provide a structure to business activity based on the careful processing of numerical data. (The Times 100, n.d) The cultural factor that influenced its development The development of accounting was influenced by both cultural and environmental factors. They shape the accounting system in China. As Merino (cited in Carnegie and Napier, 2002) mentioned, All source material must be viewed as a reflection of the culture. The transition from a communist economy to a capitalist market economy can summarize as contributed by the factors as politic, culture, as well as the reform of social and economic or regional and international integration. Before economic reform, Chinas communist culture (See appendix 2) has strongly influence all the means of accounting control, whether accounting plans, balance sheets, and income statements or, in a wider sense, audit techniques. (Cigdem Solas and Sinan Ayhan, 2008) all the surpluses were owned by the state. A table (See appendix 3) summarizes the information on the difference between capitalist and communist systems, and issues raised for examination regarding their reflection in accounting. The transitions of the culture and economy reform were both influence the accounting system in China. For example, the concept of profit is meaningless under communist culture due to the panned economy which the surplus goes to government. In capitalism culture, the economic entity would need to have a certain type of boundary; the profit is one of its results. Particular rules for payment of the various parties involved would also be required, and monetary assessments of economic flows registered would have to be at least partly based on market mechanisms. Its status as a measurement of a single entitys performance presumes that there is a capacity for free enterprise do not existing in communist economic structures. Greys (1988) model derived accounting values from studies of societal value dimensions by Hofstede (1984), and Greys model has been used to analyse the cultural impact on accounting development in China. Professionalism V Statutory Chinas accounting system is strongly controlled by state rather than professional. The state closely controlled all enterprises by centralized plans. The profession is also still relatively new, small and powerless and it is currently occupied with the problems involved in meeting the new audit requirements. And it is unlikely to give up this power to a professional body so far. (Roberts, Weetman and Gordon, 2008) This is mainly because the strong power distance in China. In China, power is unquestioned, no matter it is right or wrong, the accountants in China cannot rely on their professional view. Uniformity V Flexibility Due to the special circumstances, China has a dual approach which retained a uniform accounting system in the Accounting System for Business Enterprises (ASBE) while also developing accounting standards based on IFRS. Enterprises have no judgment at all on how to account for particular transactions or events according to the uniform system. (Roberts, Weetman and Gordon, 2008) It is just as the same as the statutory in China, the accountants has been regulated by the uniform accounting regulation, they have to do as the regulation told to. Conservatism V Optimism The accounting system in China is conservatism rather than optimism. The Accounting System illustrate that an enterprise should fulfill the requirements of the prudence concept. Including, an enterprise should not overstate assets or revenue, or understate liabilities or expenses. It should not provide for any hidden reserve. (Roberts, Weetman and Gordon, 2008) which means Chinas accounting system has high level of uncertainly avoidance. Chinese government likes to plan everything in advance just the five years plan, they do not want to see something happen unexpected due to the complex situation. Secrecy V Transparency Chinas accounting system has highly secrecy due to the large power distance and strong uncertain avoidance. The collectivist culture of China require the enterprise offer their information to the society but within a range of narrative disclosure which stated in ASBE 2001. (Roberts, Weetman and Gordon, 2008) only related people can see the accounting information such as the managers, shareholders and the government officers. This feature is due to Chinas prudent culture, it is different as the western country but it is totally consistent with Chinas situation. Problems for using the Greys model There have some problems by using either Hofsteade model or Greys model to analyzing Chinas situation. Those models has been stated many years ago, in addition, China is rapid development in every aspects those years, therefore, the model may not be 100% appropriate with the situation nowadays. Another problem is China is really big; there has huge gap between west area and east area no matter in economy or culture. Institutional and Environmental factors There are several environmental factors which influence accounting system in China. Economic and enterprise reforms have influence the financial reports by change of the contents, format and uses. Enterprises in China are no longer relying on fund appropriation instead of independence in their operational and financing activities. Banking and financing system has restructured, therefore, the role of the state as a source of funds has been reduced. (Tang, Qingliang, 2000) Furthermore, various forms of business combinations with joint ownership have emerged (Tang et al, 1992). The rigid, fund-orientated and industry/ownership specific financial reporting system and practices are no longer well-matched the changing business environment. As a result, a universal and user-oriented financial reporting system is necessary to meets the needs of the economic reform. Due to the economic factors, the Objectives of Financial Reporting has made some change as well as the Industry and Ownership Specific Accounting System. Furthermore, foreign investment started to influence Chinas accounting system since the open-doors policy. The increasing of foreign direct investment and international business transaction driven China change its accounting system close to international accounting and report standard. (Tang, Qingliang, 2000) The legal factors have been influenced by other factors. The government system is one of the legal factors. The new accounting regulation system (See Appendix 3) is being developed towards a legal one. The National Peoples Congress issued the first tier accounting law in 1985 and revised in 1993 and 1999. It is the basic law of accounting in China as well as the basis of Chinas accounting work and other related accounting regulations. The State Council and Ministry of Finance formulated second tier- the executive regulations which form conceptual framework and general principles of accounting. The third tier authorized by the PRC Accounting Law and formulated by the Ministry of Finance. (Zhang Guohua, 2005) The legal framework for Chinas accounting system and reporting standards have changed step by step to fulfill the need of economy development. Another driving force for the accounting change is the development of capital market. In 1990 and 1991, the Shanghai Stock Exchange and Shenzhen Stock Exchange were established. The development of capital market has influenced Chinese accounting change toward to a capital market-oriented system. Therefore, the structure, content, format, and disclosure of financial information have been significantly influenced by the needs of the capital market. (Tang, Qingliang, 2000) Problems occurred in development There also appeared some problem during the Chinas accounting systems development and transition into international accounting standard. First is that Chinese accounting system and IAS requiring different practices; for example, inventory must be valued at historical costs under Chinese GAAP, but at the lower of cost and market (LOCAM) under IAS. Another example is accounting for long-term investment. Chinese GAAP offers companies a free choice between cost and equity methods if their investments in shares do not exceed 50 percent. But in other words, differences between Chinas accounting system and IAS can be reduced by changing accounting standards. (Charles J. P Chen, Ferdinand A. Gui and Xijia Su, 1999) Second, to implementation of IAS requires professional judgment from management as well as auditors. Professional independence and implement of standards have been identified as the two critical issues in international auditing. (Stamp and Moonitz, 1982) The severe shortage of qua lified accountants and auditors in China delay the development of professional auditing (Winkle et al. 1994; Graham 1996) Further changes The development of Chinas accounting system needs to fit Chinas special circumstance. It is impossible to expect independent/professional auditing to be achievable in China in the future. This implies that the proposed accounting standards will have to operate without independent/professional auditing. It is likely that the flexibility in the detailed accounting standards will provide opportunities for managers to engage in aggressive earnings management, reducing, even eliminating the probability of showing a true and fair view. Therefore, the lack of independent/professional auditing can neutralize the objective of prudence and turn the flexibility into a land of opportunities for earnings exploitation. (Bing Xiang, 1998) In my opinion, there has a trend, which the Chinas accounting system would slightly change towards to the international accounting system in the future, but would never be exactly the same with the international accounting system because of Chinas special circumst ance like one-party policy, different situation in different area, huge power distance and not so easy to managing the big land of China. Conclusion In conclusion, China has undergone profound changes in recent years, not only the economic system but also the accounting standards. China has moved from a system of public ownership of all enterprises to a mixed system with increasing private ownership of both small and large companies. There have many factors such as cultural and institutional factors which led to those changes as well as some problem which hold the change back, but Chinas accounting system would still change towards to the IAS due to the requirement of economic development. References Bing, X., (1998) Institutional Factors Influencing Chinas Accounting Reforms and Standards. Accounting Horizons. 12(2) pp: 105-119. Carnegie, G.D. and Napier, C.J., (2002) Exploring Comparative International Accounting History, Accounting, Auditing Accountability Journal, 15(5). pp 689-718. Chen, J. P., Gui, A.F., and Su, X., (1999) A Comparison of Reported Earnings Under Chinese GAAP vs. IAS: Evidence from the Shanghai Stock Exchange. Accounting Horizons. 13(2) pp: 91-111. Chiapello, E., and Ding,Y., (2005) Searching for The Accounting Features of Capitalism: An Illustration with Economic Transition Process in China, SASE, Budapest. Chow, L.M., Chau, G.K. and Gray, S.J. (1995) Accounting reforms in China: cultural constraints on implementation and development, Accounting and Business Research, 26(1): 29-49. Du, X., (2011) China has 1.34 billion populations by 2010. [WWW] Xinhua NEWS. Available from: http://english.cntv.cn/20110228/109748.shtml [Assessed 1/3/2011] Graham, L., (1996). Setting a research agenda for auditing issues in the Peoples Republic of China. The International Journal of Accounting. 31(1). pp: 19-37. InterChina, (2009) Accounting in China. InterChina Consulting. The Institute of Chartered Accountants of Scotland, (2010) Chinese accounting reform: Towards a principles-based global regime. ISBN: 978-1-904574-62-0. Edinburgh: Technical Policy Board of the Institute of Chartered Accountants of Scotland (ICAS). Ministry of Finance, Chinese Government, (1992). Accounting system for foreign investment enterprises. Pennay, P., (2011) Chinas GDP Increased by 10.3% in 2010. [WWW] the Economic Observer online. Available from: http://www.eeo.com.cn/ens/homepage/briefs/2011/01/20/191877.shtml [Assessed 1/3/2011] Roberts, C., Weetman, P., and Gordon, P., (2008) International Corporate Reporting: A Comparative Approach. 4th ed. FT Prentice Hall. Stamp, E., and Moonitz, M., (1982). International Auditing Standards: Part I. CPA Journal. pp 24-32. Solas, S., and Ayhan, S., (2008) The Historical Evolution of Accounting in China (Novissima Sinica): Effects of Culture (2nd Part). Spanish Journal of Accounting History. No.8 pp: 138-163. Tang, Q.L., (2000) Accounting Reforms in China: A Transition from State Plan and Control-Oriented System to Capital Market-Oriented System. Managerial Finance. 26(5) pp: 80-99. Tang, Y., Chow, L., and Cooper, B., (1992). Accounting and Finance in China: A review of current practice. Hong Kong: Longman. The Times 100, (n.d.) Accounting Functions. [WWW] The Times 100. Available from: http://www.thetimes100.co.uk/theory/theoryaccounting-functions111.php [Assessed 2/3/2011] Wang, B.Z., Huang, J.Y., Wang, B.Q., (2009) Change of Accounting System Review. Communication of Finance and Accounting à ¢Ã¢â€š ¬Ã‚ ¢Ãƒ ¢Ã¢â€š ¬Ã‚ ¢ NG. Issue6. Winkle, G., Huss, H., and Chen, X., (1994). Accounting standards in the Peoples Republic of China: Responding to economic reforms. Accounting Horizons. Issue: 8. pp: 48-57. Zhang, G., (2005) Environmental factors in Chinas financial accounting since 1949. Netherland: Erasmus University Rotterdam. Appendix 1 History of accounting systems development in China Chinas accounting history can be traced back 2000 years ago. The word accounting first appeared in Western Zhou Dynasty à ¯Ã‚ ¼Ã‹â€ 11th century BC to 770 BCà ¯Ã‚ ¼Ã¢â‚¬ °. During the Tang Dynasty (AD 618-907), Account book appeared for recording the annual fiscal revenues. The basic traditional Chinese accounting theory such as the scientific bookkeeping method and the four pillars accounts was created in Song Dynasty (AD 960-1279). A new method called Long Men Zhang which is similar to the double-entry bookkeeping method has created in Ming Dynasty (AD1369-1644). Single-entry bookkeeping has been used in prior to 1911. (Zhang Guohua, 2005) Since 1949, Development of accounting systems can generally be divided into the four stages: First stage is from 1949 to 1978: 1949-1952 a unified accounting system of affiliated enterprises was developed by the central government. 1958-1959, the accounting system has been severely damaged by the scholasticism thinking, some people claimed to simplify the accounting system. 1960 to 1966, due to economic development, people realized the importance of accounting. Critical theorists illustrated the error approach of simplify the accounting system, then, the accounting system design work has received attention. Furthermore, the industry-specific regulation has been issued. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) Second stage is from 1978 to 1992: Chinas accounting has undergone drastic changes due to the opening-up and beginning of reform. 1979-1922, Enterprises started to issue equity shares in 1984. The number of Sino-foreign joint venture has increased; Ministry of Finance has issued the Laws on Sino- foreign Joint Venture to solve the problem of difficult of foreign staff in accounting and use the accounting information. These included a joint venture income tax law and laws on contracts and foreign exchange. Accounting Regulations for Sino-Foreign Joint Ventures and Charts of Account and Accounting Statements for Industrial Sino-Foreign Joint Ventures has issued in 1985 which is the first accounting system reference to international conventions to satisfy the new accounting system in China. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) Third stage is from 1992 to 1997: Ministry of Finance and the National Committee of Economic Structure Reform jointly promulgated Accounting Regulations for Share Enterprises in 1992. Furthermore, Accounting System for Business Enterprises (ASBE) issued in November 1992. The ASBE was a major attempt both to unify the accounting systems used by different industries and to move financial accounting towards international accounting practices. Because of the development of foreign exchange markets, these regulations which made in 1985 were replaced by Accounting Regulations for Enterprises with Foreign Investments and Charts of Accounts and Accounting Statements for Industrial Enterprises with Foreign Investments in 1993. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005) The fourth stage is start from 1997 to present: the Accounting Standard Committee issued to establishing a complete set of accounting standard. The Accounting Law of the PRC which revised in 2000 is the highest level of authority which replaced the pervious law of 1992. (Gray et al, 1995 Wang Baozhong et al, 2009 Zhang Guohua, 2005)

Siddhartha and The Razor’s Edge Essay -- Essays Papers

Siddhartha and The Razor’s Edge The book Siddhartha and the movie The Razor’s Edge are two similar yet different stories. Each these two works explore man’s search for truth, self, and life’s true meaning. The main characters of these stories are very different people, yet they are in search of similar goals. The main character of Siddhartha is Siddhartha. The main character of The Razor’s Edge is Larry Darryl. Larry and Siddhartha go through several stages of their lives, which range from rich to poor and back again. Siddhartha was a Brahmin’s son, of the upper class in India. He is loved throughout his community. He is revered by all that knows him. He spends his day in meditation and thought. He brings joy to all, but in his heart & soul he isn’t happy. He feels that he can learn any more from the wise men of his village because he has acquired all of their knowledge and they don’t know everything. Most importantly they do not know Atman. A group of Samanas enters his village and intrigues him. He decides to leave his village to become a Samana. He tells his best friend Govinda and he decides to come too, but first Siddhartha must tell his father. He goes one day to tell his father, but his father won’t allow it. Siddhartha stands in his father all night until his father lets him go. When Siddhartha and Govinda join they began to learn their â€Å"tricks.† Siddhartha lived without possessions or a home. He learned to fast, think, and wait. He began exiting his body through meditation and entering objects and animals. Soon he realizes that he must leave because they are only learning to escape pain (Self), and they can’t teach him any more. When he and Govinda leave Govinda tells Siddhartha of Gotama (the enlightened one) and they go to see him. When Govinda leaves he tells the leader of the Samanas and he becomes angered. Siddhartha hypnotizes (a trick that he learned from the Samanas) the leader and he allows them to leave. They find Gotama and all of his followers in Jetavana grove. They are taken by his enlightened aura. After hearing him speak Govinda swears allegiance to Gotama. Siddhartha takes everything that Gotama says to heart, but realizes that he must follow his own path. Siddhartha begins to look at the world differently. He isn’t concerned with the other realm he begins to focus on the world as it is. ... ... you live your life there is no earthly reward, he then goes back to America. Each story is it’s own yet the same. Larry wants to feel fulfilled in life and he is searching for a way to do so. Siddhartha wants to become enlightened. Each trekked through India searching for answers. Larry and Siddhartha were both of the upper class. Both men were loved by all who came into contact with them. They both forged special relationships with women living unholy lives. Each walked out on their respective lives in search of truth. Both men reduced their living standards by freewill at one point in their lives. Certain teachers/guides have helped them find enlightenment. Each man learned and practiced a form of meditation. The two men were very similar and were after similar goals, they just took different paths. The Razor’s Edge and Siddhartha are two works that take you on life journeys. I really didn’t see any similarities the first time I saw the movie, but the next time I watched it I really noticed the similarities. In the end they both found enlightenment in some way. Larry realized there were no rewards in life and Siddhartha became Buddha.

India on its way to become manufacturing hub

India as WorldS Manufacturing Hub For long, Taiwan and China have been at the outsourcing manufacturing boom in Asia. So much so, that 80% of toys sold in the US are made in China. But things are slowly working in favor of India. India is on its way to become a major contract manufacturing hub. There is a huge opportunity In manufacturing waiting to be tapped. A new India Is transiting from a third world country status to a league of developed nations. It Is the world's third-largest repository for foreign direct investment (FDA), after China and America. Goldman Sash's Report (Brazil, Russia,India, and China – BRICE major players), projects India as a potential winner ahead of China and would overtake U. S. A. And China by 2025 in terms of Real GAP. India- Past & Present The ass's, ass's and ear ass's: There was dominance of Public Sector across industry. The market was mainly governed by sellers with limited competition. There existed closed Economy with negligible presence of multinationals. GAP growth was below 4% (Hindu rate of growth) and primarily agriculture based. India post 1991 and counting: 100% FDA in most sectors has seen Pepsi, Coke, Shell, Ford, GM.Suzuki.. Toyota, Ames, Citibank, GE, Microsoft, Pfizer, Innovation, ASK, Merck operation in India (availability of world class products). A new India is transiting from a third world country status too league of developed nations. Current Scenario: Indian's manufacturing sector Is gaining momentum and has been ranked fourth In terms of textiles, tenth in leather and leather products etc. Government of India, to promote exports and make India a manufacturing hub, has taken various initiatives including the development of Special Economic Zones.Major global companies have already invested in India to name a few like Samsung, LAG, Suzuki, Soda Auto, Philips re among the some who have already invested and most of the global giants have stated the process to enter In India STRENGTH: The country has become a manufacturing outsourcing destination because of cheap labor, talented and knowledgeable workforce, supportive governmental policies, improved quality control measures, world-class technology and consistent economic growth. The most promising sectors for India are auto components, pharmaceuticals, electronic hardware, apparel, foot ware, toys and specially chemicals.Cost of employing engineers – essential to manufacturing services – is en-third to one-fifth lower in India than in industrialized nations such as the UK and the US There is adequate availability of manpower and skills. WEAKNESS: India is growing by leaps and bounds but there is a major problem of unemployment. There is an immediate need to generate 10 million Jobs per year. And above all, due to multi party rule, India need to accommodate political ideology with economic reality (reservation, labor law reforms). Growth has been urban centric.Rigidity in labor laws is also contributing to higher ca pital intensive. Population increase of about 100 million in last 5 years, which has seen about 50 lion new Jobs, is largely in the unrecognized sector. Transaction costs are high due to capacity constraints at ports resulting in delays. Opportunities: India has become a growth destination for several global companies. Organizations are becoming increasingly competitive on the efficiency and flexibility of their supply chains and not merely on their product features and quality.They have realized that being technology driven and updated is the key to compete in the global market. Fastest growing sectors: Automotive: The Indian automobile sector currently generates revenues of $34 billion a year; Auto sector could grow to $145 billion by 2016. India has gradually become a sourcing hub for auto companies worldwide. Among the companies outsourcing from India are General Motors, Ford, Daimler Chrysler, Handy, Fiat, Toyota, Delphi, Invariants, Visited, Cummins and Caterpillar.Healthcare & Pharmacy: Indian's Pharmacy market ranks 4th in the world in volume and 13th in domestic consumption value. Indian pharmacy market estimated at US$ 3. 8 billion ranks 12th in value terms and accounts for around 1% of the global market. Expected to grow at 12-14% p. A. , as against the global average of 6-8%. At the current pace of growth, IIS$ 2 billion industry by 2012. Construction: The Indian construction industry grew by 5. 5 % to reach a value of $35 billion in 2006. The sector will continue to grow at a CARR of 6. 5% to reach $38 billion by 20011 representing an increase of 35. % since 2004. India accounts for 4. 7% of the Asia- Pacific construction and engineering market. Retail: Indian retail industry ranked second most attractive retail destination by AT Carney. The total domestic retail market is currently estimated to be over IIS$ 330 billion and is growing at a rate of 4-6 % in real terms. Organized sector accounts for Just 2 % of he market (I. E. IIS$ 4 billion)- expe cted to grow four-fold to IIS$ 15 billion by 2012. There are 12 million retail outlets in India out of which 9 lack are in the organized sector.Computer hardware: The rapid growth of software exports has attracted thousands of people into the industry and has stimulated the demand for computers. Sales of personal computers rose by 20% in 2004-05, to MN. Import liberation's and the entry of foreign manufacturers has transformed this industry, which, until five years ago, was tiny and dominated by a few Indian manufacturers. The ease of importing components as nurtured hundreds of unbranded assemblers, which command 62% of the market. Biotechnology: Huge potential from large base of skilled technical personal and the lower costs.Number of biotechnology firms in India has increased exponentially over the years. Developing biotech based therapeutic products takes 10-15 years and costs $ 500 million to $1 billion. Similar product development cost in India is $ 250 million or even lower. Opportunity for new investments is estimated to be in the $ 1. 5 to $ 2 billion range. Food processing: India – One of the largest food producers of the world. Output of the organized segment – IIS$ 34,827 million. Marine and Spices together contribute more than 70% of export earnings. Investment requirement is around IIS$ 15 billion.The Indian scientific and research talent – a knowledge source that can be tapped for advantage. Steel: India produced 31. Mm tones of crude steel in 2004-05, making it one of the ten largest steel producers in the world. Landscapes demand from China as well as strong domestic demand, particularly by consumer -durables and automotive manufacturers and the construction sector are the key drivers of production growth. Around 40% of output is produced in integrated steel plants; the remaining comes from mint-plants, of which over 180 exist, almost all in the private sector.Light Engineering: The size of Indian Light Engineering industr y is estimated at US $ 7 billion. In India, the light engineering industry has a diverse industrial base with significant unrecognized market. The exports from the light engineering industry in India mainly consists of structured steel products; motorcycles, cycles and auto components; machine tools; fans, filters and pumps; and metal machine tool parts. The products veered under the engineering industry are largely used as input to the capital goods industry. Textiles: Textiles account for around one -fifth of total export earnings.Because the government discriminated for decades against integrated textile mills, with the aim of helping cottage handloom, most mills closed down. Production in the textile industry is based on a decentralized system with continuing small-scale reservation for many items. The industry has a natural competitive advantage in terms of a strong and large multi-fiber base, abundant cheap skilled labor and presence cross the entire value chain of the industr y ranging from spinning and weaving to the final manufacture of garments. Threat: India faces competition from other developing countries, especially China.Continuous Quality Improvement is need of the hour as there are different demand patterns all over the world. Presence of Quota system leads to rigidity in Export Demand. International labor and Environmental Laws do not strike trade-off between demand and supply. Power crises and the virtuous growth cycling manufacturing sector needs immediate attention. Large informal sector, poor irking condition and low wages pose equal threat to the growth of economy in India. Inclusion of social (Labor) issues in trade dialogues generally found in exports (e. G. Child labor). High corruption and inadequate environmental safety norms affect sustainability. INDIAN'S PROSPECTS: The nations who are competitive with India are facing some or the other predicaments. Brazil is uncomfortable with force inflows and so has given its manufacturing base . Its reluctance was evident in the imposition of a 2 per cent transaction tax on capital flows. Russia is a basket case and unless oil recovers to tuning heights, internal demand is unlikely to resurface any time soon; hence, it has very little potential to attract firms to set up shop.China is not a trusted partner; investors have learnt that China makes it easy to get in but difficult to operate. The lack of protection of hard-earned PR is a major issue in China. Restrictions on borrowing from local banks for working capital can also work as a disadvantage. Reason for optimism of the world towards Indian market: Large intellectual capital base Annual additions to the stock of science and engineering graduates Demand side – Expanding domestic market Total number of households to increase from 188. 2 million in 2001-02 to 221. Million by 2009-10 Benefits to Indian people due to the changing industrial scenario: Enterprises In Wealth Creation Government In Revenue And Employm ent Employees In Development And Increase In Standard Of Living Customers – Value For Money (Choice, Affordability And Speed) From an Indian industry perspective, the emerging situation may drive three trends. Within the next year or two, India should witness growth in demand and hence capacity in manufacturing. The driver will be higher internal demand and, in a short while, the needs of customers overseas.In three or five years, India will have to develop contract manufacturing skills. A supplier must be able to make the components he or she is good at, source components and parts, assemble and test to deliver directly to the manufacturer. This cannot happen in China as the reliability of many firms, except those that have moved with their partners form Singapore or Malaysia, is suspect. In the long term, Indian manufacturers will have to develop and build, design and development partnerships. Many entrepreneurs are considering investments in small power plants to beat the lack of electricity.

Clinton v. Jones essays

Clinton v. Jones essays The basic idea that is raised in this case is separation of powers. To be more specific we can ask ourselves one question: Is the president of the United States of America immune to civil cases involving the personal life of the president? The two parties in the case Clinton v. Jones are William Jefferson Clinton and Paula Corbin Jones. William Clinton at the time of the incident was the governor of Arkansas. Paula Jones was an employee of the state of Arkansas. Jones claimed that Governor Clinton had made sexual advances toward her which she rejected. Following the continued rejection of Governor Clinton, Jones was punished by her supervisors. The case first went to District Court. In District Court, Clinton wanted to suspend the case totally on the grounds of Presidential Immunity. The judge declared that the case shall be put on hold until after Clinton finished his term. The case was appealed. At the Eighth Circuit Court of Appeals, the court agreed with district court but reversed its decision to postpone the case because it would be an unlawful use of Presidential Immunity. The case proceeded to the Supreme Court of the United States of America with one question: Is the president allowed immunity from civil cases in events that occurred before he or she took office? The United States of America during this time was in a state of awe as the Pathfinder landed on Mars, the comet Hale-Bob is seen, the Heavens Gate Massacre occurs, sheep are cloned, Mother Theresa dies, Princess Dianna is killed in a horrible car wreck, Taiwan is returned to China, there is peace in Chechnya, and Pol Pot finally goes on trial. The case came as a surprise to the world as all of these things were happening. The funny thing is that Paula Jones filed the case just before the deadline for filing a civil case was over. Across America, this case led to the investigation of President Clintons personal life by Kennet ...