How Digital Technology Influences Art

How Digital Technology Influences Art Introduction Digital technology has become part of the everyday life in the world. Various sectors such as music industries have faced the problem of responding to the speedy developments in digital technology. In the world of arts, digital technology changes every day especially in media convergence technologies and digitalisation of production.Advertising We will write a custom essay sample on How Digital Technology Influences Art specifically for you for only $16.05 $11/page Learn More Gà ¼ndà ¼z (2012, p. 202) confirms how digital technology factors have become the engine through which the wheels of art and design revolve all across the world. This advancement has made it very difficult for any country in the world to do without digital technology in its arts industry. Various economies have therefore put in place mechanisms to counter the effect of the digital revolution to keep abreast with technological changes. This section of the paper discusses t he impacts of digital technology on the world of arts. It has reduced Expenditure Digital technology has cut down the expenditure of producing art works thus improving accessibility by many people. Just the way the use of cars, motorbikes, and airplanes has increased the speed of travelling, with people reaching their destinations without much efforts, the digital technology has lessened the efforts that people had to put on walking or running to production studios and to areas where artists portray their work. According to Bhattacharjee et al. (2009, p. 140), the art industry, which used to produce its work manually thus using much funds, has increased the speed of production with less efforts and expenses due to digital technology. Since works of art are now produced at a lower cost, it has also become easier for masses to access this work because prices are also lower in the market. Technology reduces production expenditure hence making production expenses cheaper. Constaninides (2004, p. 115) also points out that digital technology has lessened the efforts that producers and consumers put in accessing raw materials and products consecutively. Artists can currently access raw materials for their business from the internet thus cutting on travelling costs. It has expanded the Amount of Artwork that One Artist can do With digital technology in place, one artist can do several activities at the same time. According to Van House (2011, p. 125), an artist can sing on a digital audio recorder, play some digital accompaniments, and dance at the same time. Digital technology enhances efficiency of the whole process of producing artwork.Advertising Looking for essay on art? Let's see if we can help you! Get your first paper with 15% OFF Learn More Writing of scripts, a stage that was very cumbersome to most artwork producers, has been made easy by the inception of digital technology. Constaninides (2004, p. 112) argues that a lot of informati on is available for artists on the internet and other educative media. From such sites, artists learn how to improve their multi-tasking skills. According to Faye et al. (2012, p. 147), reduction of manual work has also enabled the disabled artists to take part in arts through the digital technology. Recording of artwork was also a cumbersome activity in the past. However, with digital technology, an artist can record a multiplicity of episodes in one day. According to Bhattacharjee et al. (2009, p. 140), today, digital cameras, audio devices and recorders, and editing programs are in place. They have improved the quality of the products that come from artwork. Digital technology makes images and pictures clearer, attractive, and clean for the consumers despite having been produced simultaneously. Accessibility of cost effective machines and gadgets for example Digital Versatile Discs players (DVD) and video players though which consumers can access products of art has also enabled the artist to produce more. For artists who involve themselves in drawing and designing, digital technology has enabled them to produce their products in bulk. Digital technology has also improved on the quality of artwork that artists produce. It has improved the Capacity of Artists to show up their expected Designs Digital technology has widened consumer platform. With a wider consumer contact point, artists can access millions of consumers hence providing the right information and impression about their products directly to them. These platforms include televisions channels, cinema, video players, social media, and the internet among others. As the number of platforms increases, the number of audiences that the artists have also increases. It is also possible that digital technology provides more elaborative information about an artist. Consumers are therefore more informed. Hence, they can make the right choices in picking products. Faye et al. (2012, p. 147) affirm that even th e visually impaired artists can display their products through the help of the digital technology.Advertising We will write a custom essay sample on How Digital Technology Influences Art specifically for you for only $16.05 $11/page Learn More Live recording and presentation programs such as programs on beauty pageants competitions that are televised live are an opportunity for designers to show up their designs (Van House 2011, p. 125). Artists can now televise, record, and sell various works of arts including martial arts as videos. Through digital technology, the artist can now reach almost every person who accesses the new media. The audience has also been empowered through digital technology. Foss (2001) argues that the media has been so active in monitoring the behaviour and conduct of leaders in various nations. Artists have become opinion leaders due to their fame and acceptance as celebrities. Most of the people would want to be achievers in certai n areas just as the artists. When the audience accesses information about immorality or underperformance of their favourite artists on the digital platforms, they are empowered to change their opinions about them and even to stop consuming their products. In fact, digital technology provides a better platform in which the audience can interact, scrutinise, and even criticise the artist. However, uncontrolled access to the websites of these artists can be problematic. Moore argues, â€Å"Identifying and accessing various resources of network system can allow a way into confidential documents or even databases† (2005, p.258). Cyber crimes have intensified with growth in digitalisation. Therefore, digital communication technology has brought the power of people-to-people. Artists have become very powerful and influential across the world. Almost every commercial advertisement, political advertisement, charity, and even religious advertisement is using artists as product ambassad ors thus increasing their platforms. Aghion and Tirole (1997) also affirm that people are also exchanging information through the social networks about how various celebrities are conducting themselves. For example, a gospel artist whom a company has adopted and paid to advertise and become the product ambassador for a product or a program that is sponsored by a beer or cigarette company is likely to be criticised and mocked on the social media. Similar complains and ridicules have been raised on televisions and radios through call-ins from the audience. Digital technology has therefore increased the platform for the audience to monitor the lives of artists. Foss (2001) insists that various artists and art companies have established websites that they post information about themselves and their programs for the citizens.Advertising Looking for essay on art? Let's see if we can help you! Get your first paper with 15% OFF Learn More The consumers of artwork who prefer plays, songs, paintings, and martial arts can also access any information they want from such websites. This possibility is a great response to digital communication exploration in the world today. Digital technology has paved a way for artists to speak to wider spectators Spectators are the target markets for all artists. They can watch the artists live on televisions and on the internet as they perform on stage. According to Marchese (2011, p. 302), although most of the spectators may not be in a position to travel to the venues of the concerts and exhibitions, they can become part of the program through digital communication. As artists display their products and talents, many more spectators are now able to access the proceedings in real time. In fact, some people become spectators and fans through accident. As one scrolls through the channels, he or she is likely to find such a program proceedings. If the work of art is interesting, educative , or entertaining, the audience becomes part of the spectators of such an artist. Digital technology increases the number of spectators. Marchese (2011, p. 302) argues that the response to digital technology in arts that is clearly visible in most countries is the development of e-commerce. E-commerce enables artists to market and sell their products to a wider market. With e-commerce, the artist does not have to meet one-on-one with the customer. All the transactions can be done online. Calvo and Monge (2009, p. 281) argue that many countries of the world have realised that trading in arts especially in the current world of digitalisation cannot escape the impact of modern technology. DRozario and Bryant (2013, p. 9) confirm that the adoption of digital technology by most nations of the world today has made the world of economics a small business village. One can trade and even converse with his or her fans that are in a far continent. Constaninides (2004, p. 112) argues that digit al technology has eliminated the geographical boundaries between trading partners such as artists, their fans, art firms, and their fans hence reducing transport cost and increasing the quality and quantity of information flow between parties. Calvo and Monge (2009, p. 281) argue that, in the United States, a spectator can order for certain products from an artist online and pay for them online and wait for delivery online within no time. The indication is that digitalisation of arts has even enlarged the market to spectators and artists (Garcà ­a Whittinghill 2011, p. 309). Another good example is the use of digital technology to purchase ringtones for mobile phones and even to download videos. During live concerts, artists pause to take the audience through a process of prompting downloads of ringtones and videos over the mobile phones and iPods. In such a forum, artists gain a lot of money instantly since most of the fans buy their products online as prompted by e-commerce. Acc ording to Bonsu and Darmody (2008, p.356), e-commerce has empowered consumers in the world of business to undertake their roles. Customers of the products of arts have become more informed in making choices between products. DRozario and Bryant (2013, p. 10) argue that the roles played by buyers and sellers in the US before the inception of e-commerce have drastically been changed. The time of passive customers and over active sellers has been eliminated in the American economy through digital technology. According to Gronroos (1994, p.9), quick evolution of e-commerce has made consumers of art products active players in the whole transaction. Customers have an opportunity to choose from an assortment of goods and services advertised online. In the same way, consumers can trade with the artist that they consider the best according to the information posted on their websites. Gronroos (1994, p.9) also argues that e-commerce has made many economies turn from 12 hours to 24-hour workin g economies. According to Constaninides (2004, p. 112), increase in the number of hours for doing business in many nations has also increased the number of online customers and audience for artists. Largely, this case increases the market since most people can access the products of the work of art that the artist places in stalls. Such is the economy of the United States. Gronroos (1994, p.9) believes that customers and artists can carry out exchange transactions at any time of the day or night via the internet. Garcà ­a and Whittinghill (2011, p. 309) affirm that artists in the economy of United States have become very powerful and influential across the world. Conclusion In conclusion, digital technology has had a big influence on art. The world has become a global village today due to digital revolution. Gà ¼ndà ¼z (2012, p. 202) affirms that as the economy of the world grow, its cultural aspects must also grow with it. Growth in digital technology has cut down the expenditur e of producing artworks hence improving the accessibility of artwork by many people. Digital technology has extended the array and amount of artwork that one artist can do in a given period. Artists can produce many products in a short period and even in real time. The paper concludes that digital technology has improved the capacity of artists to show up their expected designs though various digital platforms such as the internet, social media, televisions, videos, and mobile phones. References Aghion, P Tirole, J 1997, ‘Formal and Real Authority in Organisation’, Journal of Political Economy, vol. 105 no. 1, p. 29. Bhattacharjee, S, Gopal, D, Marsden, R, Sankaranarayanan, R 2009, ‘Re-tuning the Music Industry -Can They Re-Attain Business Resonance?’, Communications of the ACM, vol. 52 no. 6, pp. 136-140. Bonsu, A Darmody, A 2008, ‘Co-creating Second Life: Market- Consumer Cooperation in Contemporary Economy’, Journal of Macromarketing, vol . 28 no. 4, pp. 355-368. Calvo, E Monge, J 2009, ‘New Technologies in Central American Contemporary Art: A Partial Archaeology and Some Critical Appreciations from the Institutional Realm’, Third Text, vol. 23 no. 3, pp. 281-292. Constaninides, E 2004, ‘Influencing the Online Consumers Behavior: The web Experience’, Emerald Research Journal, vol. 14 no. 2, pp. 111-126. DRozario, D Bryant, K 2013, ‘The Use of Dead Celebrity Images in Advertising and Marketing- Review, Ethical Recommendations and Cautions for Practitioners’, International Journal of Marketing Studies, vol. 5 no. 2, pp. 1-10. Faye, W, Selvadurai, C, Smithwick, Q, Cain, J, Cavallerano, J, Silver, P, Goldring, E 2012, ‘The Seeing Machine Camera: An Artistic Tool for the Visually Challenged Conceived by a Visually Challenged Artist’, Leonardo, vol. 45 no. 2, pp. 141-147. Foss, K 2001, ‘Organising Technological Interdependencies: A Coordination Perspective on the Firm’, Industrial and Corporate Change, vol. 10 no. 1, p. 151. Garcà ­a, E Whittinghill, D 2011, ‘Art and Code: The Aesthetic Legacy of Aldo Giorgini’, Leonardo, vol. 44 no. 4, pp. 309-316. Gronroos, C 1994, ‘From marketing mix to relationship marketing: Towards a paradigm shift in marketing’, Management Decision, vol. 32 no. 2, p. 9. Gà ¼ndà ¼z, U 2012, ‘Digital Music Format Mp3 as a New Communications Technology and the Future of the Music Industry’, Scientific Journal of Humanistic Studies, vol. 4 no. 7, pp. 202-207. Marchese, T 2011, ‘Conserving Digital Art for Deep Time’, Leonardo, vol. 44 no. 4, pp. 302-308. Moore, R 2005, Cybercrime: Investigating High Technology Computer Crime, Bender Company, New York. Van House, A 2011, ‘Personal photography, digital technologies and the uses of the Visual’, Visual Studies, vol. 26 no. 2, pp. 125-13.

Case Study On Euro Land Foods Finance Essay

Case Study On Euro Land Foods Finance Essay The company was founded in 1924 by Theo verdin a previous as a subsidiary of his dairy business. His keen attention to product Development and grew business steadily over the year .the company went public in year 1979 and by 1993, was listed on trading in the London and Germany exchanges. In January 2001, the senior management of Euro land foods was to draw the firm’s one year capital budget and up for new 11 major projects are imposed to spending limit on capital of 120 million pound. Investment at that rate would be representing a major increase in the firm’s current assets base on 965 million pound. The senior manager challenge of Euro land foods to allocate funds among a range of compelling project, new product introduce and preventive maintenance, safety and pollution control. As a matter of policy, investment proposals at Euro land foods were subject to two financial test, payback and internal rate of return. NET PRESENT VALUE (NPV) The net present value (NPV) re quires cash flow discounting by making use of the so-called risk-adjusted cost of capital, which serves the purpose of accounting for risk. A widespread model employed for computing the cost of capital is the capital asset pricing model (CAPM). Rubinstein (1973) and other scholars in the late 1960s and 1970s have provided the link between CAPM and capital budgeting decisions: in their classical contributions they show that, if the CAPM assumptions are met, then the cost of capital is a function of the systematic risk, which is given by the beta of the project. The latter depends in turn on the cost of the project, which implies that it is a disequilibrium beta. The corresponding NPV is therefore disequilibrium NPV. If†¦ It means†¦ Then†¦ NPV > 0 the asset would add value to the definite the venture may be acknowledged NPV < 0 the asset would take from value as of the firm the plan should be unwanted NPV = 0 the asset would neither gain nor misplace value for the firm We should be uncaring in the conclusion whether to accept or refuse the project. This plan adds no monetary value. Decision should be base on other criteria, e.g. designed position or other factors not evidently included in the calculation. Formula: Npv =CFo+ ___CF____ ( 1+k) n Example:- Year Cash flow Present Value 0 100,000 1 22,727 2 20,661 3 18,783 4 17,075 5 15,523 Internal rate of return:- It is a different economical cash flow practice which takes report of the extent and time of cash flow. Formula: – IRR=LOWER RATE+ npv at lower rate x (HIGHER RATE -LOWER Rate) Npv at lower rate -NPV at higher rate Example 1. If a speculation may be given by the chain of cash flows: Year (n) Cash Flow (Cn) 0 -4000 1 1200 2 1410 3 1875 4 1050 Then the IRR  r  is given by . In this case, the answer is 14.3%. 1. Project with NPV and IRR:- The research on the resource-constrained project scheduling problem is focused mainly on two types of objectives: objectives based on time and obje ctives based on cost. Both of these factors, i.e. time and cost, are indispensable in practical applications. Year

Final Exam Essay Example | Topics and Well Written Essays - 750 words

Final Exam - Essay Example Word documents are acceptable by the system, uploaded documents can not be graded automatically and thus create major problems. Save the attachment (.doc) or copy and paste the quiz and the answer sheet to your word processor. Enter your answers directly  into your word processor version. When you have finished entering your answers, save your answers to your computer (always keep a copy of your work).   To submit your exam, please go to your Assignments Folder and click on the tab for FINAL EXAM. Copy and paste your exam answers into the text box and click on "Submit For Grading." (Attachments are acceptable but try copying and pasting first, let attachments be your last resort). Using the Rich Text Editor (RTE) will help preserve the formatting of your answer sheet; consult the Help Desk if you need help with installing or using the RTE. (In the upper right-hand corner of your screen, see Options, then Account Preferences to enable the RTE.) If you have any questions please con tact WebTycho support line! Q. 1 – 40: Objective-Type Questions (1 point per question) Please use alphabet answers where applicable. 1. D 2. D 3. A 4. C 5. D 6. B 7. B 8. E 9. C 10. B 11. A 12. B 13. C 14. D 15. D 16. A 17. A 18. C 19. A 20. D 21. A 22. A 23. C 24. E 25. D 26. A 27. D 28. B 29. D 30. A 31. L 32. J 33. C 34. N 35. D 36. H 37. I 38. M 39. F 40. K Essay Questions (10 points each). Choose and answer only six (6) essay questions. If you answer more than six, only the first six will be graded. Essay # 2 A)- Five structures present in a human knee joint are; i- Patella ii- Bursae iii- Meniscus iv- Articular Cartilage v- Joint Cavity B)- Two types of arthritis are described below: Osteoarthritis, also called degenerative joint disease, usually occurs in elderly people because of normal wear and tear. Although it appears to be a natural result of aging, such factors as obesity and repeated trauma can contribute to the disease. Osteoarthritis occurs mostly in joints us ed in weight bearing, such as the hips, knees, and spinal column. It involves breakdown of cartilage and narrowing of the joint space, with growth of bone spurs at the edges of the joints. The disease can be avoided by staying active and getting exercise to help maintain the joint and overall movement. Rheumatoid arthritis is a crippling condition characterized by joint swelling in the hands, the feet, and elsewhere as a result of inflammation and overgrowth of the synovial membranes and other joint tissues. The articular cartilage is gradually destroyed, and the joint cavity develops adhesions so that the joints stiffen and ultimately become useless. The exact cause of rheumatoid arthritis is uncertain. However, the disease shares many characteristics of autoimmune disorders, in which the immune system attacks the body’s own tissues. The role of inherited susceptibility is clear. Successful treatment includes rest, appropriate exercise, medications to reduce pain and swellin g, and suppression of the immune response. Essay # 4 A)- The nephron is the basic urine forming unit of the kidney. The nephron regulates the proportions of urinary water, waste, and other materials according to the body’s constantly changing needs. B)- The five parts of nephron are; i- Afferent Arteriole ii- Proximal Convoluted Tubule iii- Distal Convoluted Tubule iv- Loop of Henle v- Collecting Duct C)- The above mentioned parts are located in the following sections of the kidney; i- Afferent Arteriole -- is located in the renal cortex. ii- Proximal Conv

Pharmacology in nursing-Psychiatric disorder Assignment

Pharmacology in nursing-Psychiatric disorder - Assignment Example On the other hand, FGAs have less efficiency and adverse side-effects characterized by extrapyramidal side-effects. In spite of their efficiency, SGAs also have their own side-effects such as weight gain and the ability to increase vulnerability to diabetes. As such, treatment of depression and psychosis requires careful consideration of various factors, such as age, pre-existent conditions, and polypharmacy among many other factors before making a choice of the treatment drug. In addition to making a choice on the antipsychotics applicable, medical practitioners also have to consider the possibility of incorporating non-pharmacologic approaches such as psychotherapy for youth with difficult-to-treat depression. Additionally, issues of patients using herbal medications, such as St. John’s Wort, have to be advised appropriately to avert potential harm and side-effects from polypharmacy. This paper critically reviews the use of antipsychotics in the treatment of psychosis and de pression. It also briefly highlights the use of psychotherapy and alternative medicine-St. John’s Wort. ... that vary in severity, and these may include schizophrenia, bi-polar disorder, schizoaffective disorder, drug-induced psychosis and psychotic depression. Psychosis affects approximately 3% of the United States (U.S) population, with 1% of the cases being schizophrenic (Lehne, 2012). On the other hand, depression is a mood disorder condition characterized by feelings of sadness, anger, loss, frustration and aversion of activity. These are common feelings, but actual clinical depression is a situation in which these feelings occur often and cause interference on day-to-day activities. The condition may also elicit other behaviors such as overeating, which could finally lead to obesity. Epidemiologic statistics show that depression is prevalent in the most developed nations, with U.S. being the leading nation. Lifetime prevalence differs greatly from 3% in Japan to as high as 17% in the U.S. Populations in most nations experience depression at a rate ranging between 8% and 12% (Lehne, 2 012). The treatment of psychosis and depression has for a very long time relied on antipsychotics as the first line of treatment. In addition to the pharmacological approach, family and cognitive behavioral therapies have also been recommended for long-term treatment. The use of antipsychotics has in the past presented mixed reactions among users and still continues to present a dilemma in the treatment of psychosis and depression. Notably, the challenge appeared in 2004 and 2005 when the Federal Drug Administration (FDA) recommended a â€Å"black box warning† on antidepressants used to treat depressed and psychotic adolescents (Ho, 2012). A â€Å"black box warning† is any alert that appears on the insert of any prescription and warns against adverse effects of using a certain drug. In the

Playboy Of The Western World: Discovering Reality Essay -- essays rese

In order to counter the unreality of Ibsen and the bleakness of Chekhov, John M. Synge has chosen a seemingly unbelievable story to create his realist masterpiece, The Playboy of the Western World. Its realism comes from two unlikely sources: joy and a far-fetched tale. Yet, as Synge identifies himself in the preface, these elements in combination are extremely effective in showing the life of the peasantry; more so than any bleak or so-called "real" story (in the manner of Ibsen) could.The problem with showing the peasant class in a bleak manner is that, by virtue of their position, the audience knows their life is bleak in terms of money. By featuring a peasant class, it would be redundant to make a movie about their lack of finances, intelligence, or other virtues not usual...

Globalization of the U.S. Subprime Mortgage Crisis Essay

The U. S sub prime Mortgage Crisis upset the world financial markets. The economy of the United States of America could combat the mortgage foreclosures for its efficiency. The global investors were wary of the fact that the sub prime mortgage crisis is a symptom of some unknown problems that the US economy is suffering from. In 1994, an almost insignificant less than 5% of all the mortgages in the U. S were sub prime. However by 2005, the figure had risen drastically to 20%. Sudden changes in the banking system were responsible for this increase. Earlier, mainly commercial banks were used to serving the American societies and they mainly offered fixed charge mortgages. In Detroit and in Boston this figure was 24. 6% and 15% respectively, whereas in California this figure was 14%. After a long period of stable interest rates with only a small downward trend, the rates started increasing. This decreased the demand for homes and hence causing a decrease in home prices. There was competition between the mortgage finance companies and mortgage brokers and the traditional banks in offering some new products. This growing competition produced a number of mortgage products and choices like sub prime loan of different varieties for the American consumers. Homeowners could not combat the increases in payments or even sell their homes because of market price depreciation. Almost 77% of the homes were overvalued in big cities like California (Enoch & Charles, 2007). Causes of the current U. S sub prime mortgage crisis. There seems to a common consensus that periods of rapid credit growth are accompanied by loosening lending standards. The former Federal Reserve Chairman Alan Greenspan pointed in his speech to the Independent Community Bankers of America in 2001 that there was an unfortunate tendency among bankers to lend aggressively at the peak of a cycle and noted that this aggressive kind of lending could result to bad loans. This therefore means that the credit boom in America had a hand in causing the current sub prime crisis. Indeed more of the major banking crisis in the last a quarter a century occurred at times that there was an extremely fast credit growth. However not all credit booms are immediately followed by a banking crisis. For instance in a study by Barajas et al (2007), of the 135 credit booms that were identified, only 23 of them preceded a systematic banking crisis with this proportion increasing to 31 if the non-systemic episodes of financial distress are included. However almost half of the banking crisis were preceded by a credit boom. Larger and longer-lasting credit booms and those that have coincided with higher inflation and lower growth are more likely to end up in a crisis. Booms associated with fast rising assets and real estate prices are also more likely to lead to a crisis. The increase in home prices in early 2000 was completely unrealistic and made the homeowners believe that home prices will continue increase and make future refinancing and subsequent mortgages quite profitable. The loose standards made them believe that in buying expensive homes than they could have afforded with the traditional fixed rates loans and more expensive than they can afford now with their adjustable mortgage loans resetting. Most of the players in the mortgage market contributed to the crisis. Homeowners, brokers, lenders, rating agencies regulators, investors and central banks all played a role in the crisis. The homeowners ran into flexible loans with no understanding of them and even some lied on stated income loan applications (Giang, & Anthony, 2007, p. 39). The lenders hurriedly offered riskier loans to borrowers as loan products with adjustable rates transfer great part of a risk from the lender to the borrower. This risk transfer is the reason was the main contributing factor as to why the offered higher commission to brokers if they sold adjustable loan. Brokers were also controlled by greed and started offering adjustable mortgages to borrowers who would qualify for prime loans. However, lenders never expected such huge foreclosures and extreme flooring of house prices. Central banks and other huge investors have experienced significant losses as a result of mortgage asset devaluation. The risk of investing in securities backed by mortgage never came to realization as should have been. The investor mainly relied on investment grade ratings applied to mortgage backed securities by rating agencies. Historical data backed models are mainly used by rating agencies to provide investment rating. Mortgage backed securities have excellent historical date whereas adjustable mortgage loans and their innovative variations being new products on the mortgage market have no historical data. The regulators missed to prevent the crisis through legislation that would regulate higher lending standards. They can play a great role in prevention of an economic crisis (Eric, 2008). Global Spread of the U. S sub prime mortgage The recent volatility in the global financial markets due to the US sub prime mortgage has not spared banks throughout the world. In Saudi Arabia, banks have been able to absorb only minimal exposure to distressed loans. For instance, Saudi Basic Industries Corporations have faced some constraints. Superficially, the happenings of the global market seems little unaffecting to Saudi Arabia. However since the peaking of the US stock markets, the Tadawul All-share Index has been maintaining an upwards trend. For instance, strong demand meant that investors accepted a lower yield than previously indicated for a SABIC bond in the month of July 2007. In this case, the bulk of demand came from Middle East and mainly from Saudi Arabia. Other bonds issued by the Gulf Cooperation council suffered and a greater caution could likely have had an impact on investor perceptions of Saudi Arabia risk. Higher credit spread had increased the cost of borrowing even after taking into consideration any reduction in the Federal funds rate. Even though the costs of borrowing were not high to deter borrowing, the prospect of issuing debt had deteriorated forcing the companies to revise their plans. This placed an opportunity to large Saudi investors who are not reliant on new or foreign borrowing and therefore were better positioned to acquire foreign assets, generally at lower prices than prior to recent market moves. Saudi Arabia has been developing its mortgage market though the mortgage law is still to be approved, the housing finance industry is beginning to take off and there are loans available for homeowners to secure. However with the legal and regulatory infrastructure not in place, the crisis in the US has slowed the growth. The crisis in the US also hit demand and thus prices for other commodities produced by Saudi Arabia such as plastics. Lastly, due to the exchange rate peg, the interest rates were cuts further and this further the riyal weakened along with the dollar (Gerry & Paul, 2007). European country such as the United Kingdom and Spain faces an even larger housing problem as lenders are becoming more cautious. This implies that consumer spending in Europe is also experiencing the crunch of the US sub prime crisis. The current slowdown impacts on all parts of the chemical industry as housing is a key source of chemical demand. Sectors that directly supply the housing and automotive sector in the West are hardest hit. In the United Kingdom, though there are different circumstances, the effect of the US sub prime mortgage crisis are being experienced. First, there are fewer mortgages given to people of less credit worthiness compared to the other mortgages in the market in the UK whereas in the US this proportion is significantly large. In addition, about half of the borrowers in this proportion of sub prime mortgage in the UK do not have a history of significant payment problems. Secondly, the interest rates in the UK have been relatively stable compared to the US where there had been rapid rises in interest rates. Thirdly, in the UK, the house prices have been booming compared to the Us where the house prices have been decreasing leaving borrowers mired in negative equity and unable to sell their homes in order to service their loans. Finally, the lending criteria in the UK are much stricter than in the US that have been loose. However, despite all these the effect of the US sub prime mortgage crisis is being felt in the UK with the Bank of England taking a warning of then dangers of bailing out institutions that had taken reckless lending decision for profits. It also leads to the Bank of England cutting interest rates at the start of 2008. The US sub prime mortgage crisis has an impact on the Germany economy where the hardest hits are the German banks. The Industrial bank in Germany managed a fund that had invested in credit portfolios, which included US sub prime real estate loans. Commerce bank, which is the second largest bank in Germany, reported that the US subprime mortgage market had cost it 80 million euros in the second and last quarter of the financial year 2007. In the financial years 2007/2008, IKB expects that the crisis will influence negatively on its projected earning of 280 euros (Christopher, 2008). References Christopher B. L. (2008). The Next Slum, The Atlantic Monthly.New York: Oxford university press. Enoch and Charles. (2007). Rapid Growth in Credit: Endless Boom or EarlyWarning? New York: International Monetary Fund and Palgrave. Eric Janszen. (2008). The next bubble: The markets for tomorrow’s big crash. London: Harper’s press. Gerry, G. & Paul, F. (2007). A House of Cards: from fantasy finance to global crash. London: Lupus Books. Giang, H. and Anthony. (2007). â€Å"The Varying Effects of Predatory Lending Criteria on Mortgage Applications†, Reserve Bank of St. Louis Review 89(1), pp. 39-59.

Marine Biology Terms