WordPress Pingbacks and Trackbacks Explained + Why to Disable Them

If you’re a perceptive user, you may have noticed a setting in your dashboard relating to WordPress pingbacks and trackbacks. However, there’s a good chance you have no idea what these techniques are, or why they’re controversial.In a nutshell, pingbacks and trackbacks are technologies that notify other websites when content has been published that their users might find interesting. While this sounds pretty good in theory, there are also a number of downsides to using both strategies, which is why we recommend that you disable them.In this article, we’re going to start out by explaining what WordPress pingbacks and trackbacks are and discussing their pros and cons. Then, well show you how you can disable both on your own website. Let’s take a look! What are trackbacks?A trackback is a notification that WordPress sends to an external site when you link to it in your content. Let’s say that you’ve just published a new blog post on dog t raining tips, which includes a link to another website that contains some solid advice for your readers.In this scenario, you could send a trackback ‘ping’ to that site, in order to get the owner’s attention. That person could then choose to approve the trackback. This would display an excerpt of your post and a link to your site in their comments section.What are pingbacks?Pingbacks in WordPress have a very similar goal, but they work a little differently. In fact, they were actually created to be a better version of trackbacks, in order to resolve some of the problems with the technique (which we’ll look at shortly).The key thing to understand is that while trackbacks are sent manually, pingbacks are automatic. To illustrate this, we’ll go back to our earlier example. Let’s say you have pingbacks set up on your blog, and you just published that article about dog training tips (linking to the same external website as before).In this case, a pingback would immediately be sent to the site you linked to – as long as it also has pingbacks enabled. That site would then automatically check to verify that the pingback originated from your post (and wasn’t some type of spam), before displaying it as a simple link in the comments section. In most cases, pingbacks won’t include an excerpt from the post in question, though this depends on the theme that a site is using.From your perspective, the trackback and the pingback work in a very similar way. The most vital differences are ‘under the hood’ – the communication technologies used are different. However, it isn’t necessary to understand all the technical details in order to get a sense for the advantages and drawbacks of using these techniques.An example of what pingbacks/trackbacks look likeThe pros and cons of using WordPress pingbacks and trackbacks on your siteIn order to understand why we recommend that you disable pingbacks and trackbacks, lets discuss the pros and cons.Pros 👠It’s easy to see why so many people have used both pingbacks and trackbacks in the past. The potential benefits of these technologies include:Increasing backlinks to your own site, driving traffic your way and improving your Search Engine Optimization (SEO).Making connections with related sites, and encouraging them to share your content by showing your willingness to promote theirs.Offering more value to your readers, by introducing them to other content they may find useful.Cons 👎The biggest issue with trackbacks is that they soon became used to send huge amounts of spam. As trackbacks can be sent manually to any site, spammers use them to get their links posted on as much content as possible.Keeping these spam trackbacks off your site requires manually checking each one since there’s no other way to verify that they aren’t fake. Naturally, the time spent moderating these trackbacks could be better used elsewhere. It also makes them a lot less valuable than they could be in a theoretical sense.As we mentioned earlier, pingbacks were designed mainly to resolve this spam problem. That’s why they work automatically, and require verification before they can be posted. In addition, they won’t even be sent unless both blogs have enabled pingbacks.However, pingbacks soon fell victim to the same downsides as trackbacks. Many spammers were able to easily overcome the protections put into place. That resulted in a lot of fake and malicious pingbacks. Again, this means that sites with this feature enabled generally have to spend a lot of time moderating the resulting comments.In addition, you can end up with something called ‘self-pings’. If you link to another post or page on your own site, the pingback feature will send a notification (as though you were linking to an external source). This isn’t very useful and can quickly become an annoyance, although you can eliminate this problem with a free plugin like No Self Pings.Most sites should disable WordPress pingbacks and trackbacks (heres how to do it)There’s been a lot of controversy over the years as to whether using pingbacks and trackbacks is worth the downsides. These days, however, its widely recommended that you avoid both techniques.At the end of the day, using WordPress pingbacks and trackbacks tends to result in a lot of spam and wasted time. Even if they can provide a few benefits, there are better ways to drive traffic to your site.In addition, very few people actually use these technologies in a legitimate way at this point. This means that, more so than in the past, you’re likely to get a lot more fake pingbacks and trackbacks than legitimate ones.Fortunately, disabling both on your own site is a simple matter. In your WordPress dashboard, you can navigate to Settings Discussion:Here, you’ll want to deselect the first two options:Attempt to notify any blogs linked to from the articleAllow link notifications from other blogs (pingbacks and trackbacks) on new articlesThis will prevent your site from creating and receiving pingbacks and trackbacks. As a result, you should have an easier time keeping your comments section under control. Plus, youll free up time that can be devoted to more effective audience-building strategies.Skip the pingbacks and trackbacks!Pingbacks and trackbacks do have benefits in theory, but there are plenty of reasons why they’re rarely used these days. Ultimately, the downsides of both outweigh the potential for a slight boost to traffic and visibility.Keeping WordPress pingbacks and trackbacks active on your site is likely to result in a lot of spam coming from people who just want to get a link of any sort posted on your content. The good news is that you can quickly disable both options in your WordPress Settings screen.Have you ever used pingbacks and trackbacks on a WordPress site , and what was the result? Share your experiences with us in the comments section below! #WordPress pingbacks and trackbacks explained, plus why you really should just disable them

Mesolithic era Essay Example

Mesolithic era Essay Example Mesolithic era Paper Mesolithic era Paper It is thought too that the women, while the males were out hunting the animals- collected berries and other wild shrubs to cook with the meal as part of their diet. Thus, Mesolithic eating habits would not have had a significant impact on the landscape of Ireland. In contrast, Neolithic people are known as the first farmers in Ireland. It is wrong to think that Mesolithic people discovered farming and then became Neolithic people; rather Neolithic ways of life began to spread to Ireland from settlers across the sea and brought this new way of life with them. Neolithic folk were involved in cultivating the land they lived on and grew crops and vegetation as a food source, they still hunted and gathered in berries and nuts but now their diet was supplemented on a regular basis by the produce of their crops, and by the domesticated animals they kept such as pigs, sheep, cattle and hunting dogs. Evidence from Cashelkeelty, County Kerry, suggests that this happened between 3900BC and 3000BC wesleyjohnston. com/users/ireland/past/pre_ norman_history/neolithic_age. html. Findings around Neolithic sites, which have been excavated, have provided evidence of a new technology as described by J. P. Mallory T. E. McNeill; they go on to say There was also a new technology that has been especially developed for this new agricultural economy. The first farmer colonists introduced their own variety of polished stone axes for clearing away forests, flint tools for harvesting their crops, grinding stones for processing the cereal, and pots made from clay to assist in cooking and serve as containers. Even the tools used for hunting changes as these early farmers brought their own type of flint arrowheads and javelins, and now that there was easy access to animals whose hides were particularly useful to man, we begin to find abundant evidence for flint scrapers. (1991. P. 30. ) Such dramatic changes to diet brought would have brought about significant changes to the physical landscape of Ireland; people were now starting to cut away areas of woodland so they could cultivate the land for farming and building their settlements. The effects of this are evident today, with the creation of blanket bogland throughout Ireland and particularly around areas where Neolithic artefacts are discovered. Ireland has 12,000 kmi of bogland, consisting of two distinct types, blanket bogs and raised bogs. Blanket bogs are the more widespread of the two types. They are essentially a product of human activity aided by the moist Irish climate. Blanket bogs formed on sites where Neolithic farmers cleared trees for farming. As the land so cleared fell into disuse, the soil began to leach and become more acidic, producing a suitable environment for the growth of heather and rushes. The debris from these plants accumulated and a layer of peat formed. http://en. wikipedia. org/wiki/Geography_of_Ireland#Bogs. The continuous falling debris has caused these bogs to grow and an example of the height to which they have grown is all too evident in the Ceide Fields, located in North County Mayo. Thus, most of Irelands upland peat bogs (although not the lower ones are actually features inadvertently created by Neolithic farmers). In relation to housing Mesolithic people did not build permanent settlements, this was due to their way of life, being from a hunter-gatherer culture, these individuals tended to be nomadic, moving from season to season, going where the food was. During the summer and early autumn months it is thought that these people settled beside coastal areas- were it was cooler and throughout the winter and spring they settled more inland, taking refuge and protection from the weather amongst the dense woodland. There is no absolute evidence for these assumptions however; tools from the Mesolithic era have been located around or close to coastal areas. The Curran (Near to present day Larne, County Antrim) is a raised beach where archaeologists have found thousands of flint tools, and in County Offaly, archaeologists uncovered evidence of a Mesolithic settlement at Lough Boora. Neolithic peoples contributed to the changing of the landscape through the settlement dividing which are evident in the Ceide Fields of northern County Mayo. The Ceide Fields are a series of stone field boundaries discovered preserved under peat on the edge of a cliff in Mayo. At the time, they were made; the climate would have allowed them to grow crops there, although today it is a bog. It would be on this land, beside that which they cultivated that their dwellings would be built. Neolithic settlers built more structured and permanent buildings for settlement than the Mesolithic. A Neolithic house was rectangular and made either from tree trunks sunk vertically into the ground or from woven branches covered with mud. A large beam leaning against the ridge of the roof supported the gables at each end. The roof itself was made from timber beams with reed thatch covering it. A small hole in the roof allowed smoke to escape because, unlike the Mesolithic Irish, the Neolithic farmers lit their fires and cooked indoors. We know what these houses looked like because, although most of the wood itself has gone, the post-holes have survived and engineers can thus determine the houses structure. wesleyjohnston. com/users/ireland/past/pre_norman_ history/neolithic_age. html.

The Gilded Age Essay Example | Topics and Well Written Essays - 750 words

The Gilded Age - Essay Example During the so called Gilded Age, the economy of America went up significantly by more than 400% between 1860 and 1900. During the same time, the United States Patent office gave out up to twelve times more patents than it had been the case in the past 70 years. There was also a notable increase in the productivity of the agricultural sector due to invention of farm machinery; â€Å"In 1872, the vast majority of Americans equated logging trees, plowing prairies, grazing grasslands and mining mountains with progress.† The same advancement was made in the factory sector. The business communication sector made a step with the invention of Alexander Graham Bell’s telephone which was developed on February 14th, 1876. The lighting of homes and the power required by the various factories in carrying out several of the operation were made possible by Thomas Edison. This was as from 6th December, 1977.Still on the American economy, the growing industrial sector made available the goods needed for the upcoming urban markets. This led to a shoot in the number of the urban dwellers due to migration of individual to urban centers, most of who came from Europe. As a percentage, those living in urban areas represented 40% of the total American population. This was an increase from the initial 20%. The immigrants wanted to get jobs in the expanding manufacturing sectors, and also to have a taste of the city-life.However, there is an irony regarding this economic development of the gilded age.The growing of this economy came with weighty negatives.

The Nurses Role in Tackling Coronary Heart Disease Essay

The Nurses Role in Tackling Coronary Heart Disease - Essay Example There are about 17 million who die from cardiovascular diseases on a yearly basis (WHO, 2011). Most of these deaths are attributed to coronary heart disease and cerebrovascular diseases. Physical inactivity, unhealthy eating habits, and smoking are just some of the causes of these diseases. In 2009, about 5000 died from coronary heart disease in Wales with about 118,000 people having had a heart attack at some point and about 120,000 more suffering from angina. This disease also cost the NHS about 3.2 billion pounds with about 9 billion pounds cost to the entire UK economy (BHF, 2011, p. 2). The trends in the incidence of CHD are largely based on social patterns with mortality rates higher for the deprived areas, as compared to the least deprived areas. The rates of CHD in Wales are slightly higher as compared to the rest of England with male incidence rates higher than 10% as compared to the rest of England. Behaviours commonly attributed as causes for CHD include smoking, unhealthy eating, physical inactivity, and heavy intake of alcohol (BHF, 2011, p. 2). Obesity, increased cholesterol, high blood pressure and diabetes are considered risk factors for the development of coronary heart disease. Coronary heart disease, also known as coronary artery disease is said to affect about 14 million men and women in the US (Singh, 2010). It develops when fatty materials, calcium, and scar tissue accumulates in the arteries supplying the heart with blood. These arteries are arteries crucial to the efficient functioning of the heart with such heart muscles being supplied with oxygen and nutrients to enable heart functions (Singh, 2010). This plaque narrows the arteries and as a result, the heart does not get an adequate supply of oxygen-filled blood. With narrowed blood vessels, the blood flow to the heart becomes slower and causes chest pain or angina (Singh, 2010). With continued plaque formation, complete blockage of arteries may result, causing a heart attack (myocardial infarction) or disturbance in heart rhythms leading to sudden cardiac arrest. From years of its earliest development, the inner linings of the coronary arteries are very smooth and this allows the smooth and easy p assage of blood through the different systems of the body. As a person gets older, the cholesterol and calcium content in the arterial walls accumulate, making them thicker (Singh, 2010). The plaque formation on the arterial walls is primarily caused by unhealthy diets, including one which is high in fats and cholesterol. Smoking and limited activity or exercise can increase the plaque formation. This process is known as atherosclerosis or the hardening of the arteries (Singh, 2010). This plaque forms like a firm shell, but has a soft inner core where cholesterol is stored. When blood hits such plaque

Critical Analysis of A Mother in Dubliners Essay Example for Free

Critical Analysis of A Mother in Dubliners Essay In the short story, A Mother, James Joyce highlights four different aspects: Theme, Style, Language used, and the Characteristics of the Characters. There are five different themes highlighted in the story. The first one is Paralysis, which is the central theme for all the stories in Dubliners. In this story, paralysis is shown with the storys main character, Mrs. Kearney, who is constantly relying and depending on her daughter, providing her with a very good education and making her follow a career in music. Paralysis could also be seen with Kathleen Kearney, who was forced by her mother to follow a musical career, and the way some people eventually say that she has no future in music whatsoever. The second theme, marriage, deals with the way it is portrayed in a negative way. Mrs. Kearney got married out of spite, and there isnt much romance in the relationship between her and her husband, although this doesnt suggest that she has completely given up her romantic ideas. We also see the portrayal of husbands and wives, or family life in general, in a negative way. See more: how to write a good critical analysis essay The third theme is class distinction. This is to do with how Mrs. Kearney keeps on bragging to her friends that her husband is taking her and her daughter to Skerries and they spend their money on Kathleens education and music lessons, to help prepare her for the concerts. Another aspect that highlights this theme s Ms. Kearnys use of language, which is that of an upper class, and this shows that she received an education that was as good as her daughters. The fourth theme is culture and religion. Certain aspects of culture are highlighted when we are told about the grand concerts, which are part of the Irish revival. Also, we see the way the Irish language is kept alive, like the way Mrs. Kearney and her friends say good-bye in Irish. As for religion, we find out that Mr. Kearney was very religious and he often went to church by himself. The final theme is materialism. This is to do with the way Mrs. Kearney is opportunistic, and how she is persistent with her daughter receiving money for all her performances. Joyce uses a satirical writing style in this story. This means that he is making fun of the characters indirectly/subtly. For example, the narrator refers to the concerts as grand, when in reality they are a failure, and the way Mr. Holohans friends call him Happy Holohan. Also, the way he refers to the artists in the concert as artistes. Another aspect of Joyces style is impressionism. This is to do with how the narrator just tells us about the story (gives us a feedback) without revealing anything to us. For example, the narrator tells us the story through the way he sees it. He does not state his opinion, but instead he leaves us with what information we received from him to come up with our own conclusions of the characters. Naturalism is another aspect of Joyces style. He uses real places and real names in the story to give the reader a sense of place. The language Joyce assigned to the narrator is simple and flamboyant. For example, People said she was very clever, a very nice girl and a believer in the language movement (p. 155). There are two forms of language spoken by the narrator: Speaking about the characters and providing information (Miss Devlin had become Mrs. Kearney out of spite She was educated in high-class convent ), and speaking on behalf of the characters (People said she was a very nice girl ). When reading the story, we reach a few conclusions about the characters. Mrs. Kearney is revealed as a snob, conceited woman living in middle-class Dublin, and received a high-class education. We see that she has a harsh and cold attitude (Her ivory manners were admired She sat among the chilly circle of her accomplishments). Mr. Kearny is a pious and sober man, he does not have a romantic relationship with his wife (not enough love), but he is always there to help and support his wife. Mr. Fitzpatrick represents the negative side of the male characters. Because of him, the concert ended in failure. In this story, Joyce has highlighted many aspects, ranging from themes to style, and he elaborated on them with detail, which helps the reader understand the way he portrays real life in Dublin.

The History of Ideology

The History of Ideology Its easy to say that ideology is something that belongs to mind, or to words that are easier to understand than to think. Thinking is what we do every day; this is the way I answered the question related to ideology. So in this essay, I will take a deeper look at the term ideology in of Marxism and why his idea is famous in anti-capitalism. Ideology is a system of perspectives, ideas, and these built on a philosophical foundation through a consistent worldview and methodology. They represent the will and aspirations of a class, people, formed by individual practices, and back to direct the training, to improve reality. Any thought is due to the physical conditions of life, the social order and the reflection of the material situation of the secular regime. Since the emergence of private ownership and associated with it the division of society into classes: domination and power, oppression and oppression In social consciousness also began to appear and constantly develop ideas expressing the opposition of interests, the struggle between classes. I will refute this view as follows: as I cannot point to any person and say I have no idea. Maybe the thoughts in his head did not form a scholastic system, or it consisted of the fragmented parts of different academic theories. But not so that I was entitled to say that he has no idea at all. For example, when it comes to accepting a particular set of problems A B C D E, he only resolves to take AB, but refuses to recognize C D, and ignores E; Then we say that he has conservative thoughts. Apparently, thinking has been transformed into action that does not exist in the literary form anymore. Thus, one can say that thought not only exists in the shape of educational theoretical systems but that it only makes it easy to approach thought. Zizek has explained his idea of ideology through a trash can or can understand that a system, he explained that ideology let us be controlled inside a system (Japhy, 2017, 3/2). But he also emphasized the importance of ideology that they give human motivation a reason to exist in life. Later, major ideas in the world were used to highlight the two great ideas capitalist, and communist. Its the model that states in the world are doing. And through propaganda activities in all forms such as the media, no matter what the issue is, is a message to make sure that the ideology is still favored by the people while under control. (Japhy, 2017, 3/2) Zizek also explained the vitality, the existence of the capitalist economy on how to promote such strength. He argues that it is the competitive market that is a free market, so firms will always want to reach out to and serve the consumer. That this product is better than the competitors product. It is the consumers appetite that creates a circulation for the developed market when the consumers desire is endless. The more you drink, the thirstier you get. This has created an impetus that invisibly promotes the market in creating jobs for the working-class. Ideology is to be understood as fetishism. It is used as a material to control human thinking and their beliefs. And that is the origin of capitalism. It gives money power to control people. They are willing to do everything to get it. Because of the obvious truth, the human is living in the secular age. That everything can be traded together. And that is one of the features of capitalism when it raises the issue of a free market where labor is cashed (Japhy, 2017, 10/2). But Marx also posed a problem that was the imbalance of capitalism. Smith argued that the individuals pursuit of self-interest would lead to an outcome beneficial to all, whereas Marx argued that the pursuit of self-interest would lead to anarchy, crisis, and the dissolution of the private property-based system itself. . . . Smith spoke of the invisible hand guiding individual, self-interested agents to perform those actions that would be, despite their lack of concern for such an outcome, socially optimal; for Marxism the simile is the iron fist of competition, pulverizing the workers and making them worse off than they would be in another feasible system, namely, one based on the social or public ownership of property (Roemer 1988, 2-3). But Marx also posed a problem that was the imbalance of capitalism. Because life is not balanced, there is a difference in class. Marx argues that this difference is due to the capitalist class, or the em ployer, who values the labor force, not in proportion to what the worker pays. On the contrary, the products are sold at high prices beyond the affordability of employees. And then the question is why the money is just a symbolic, unrealistic value that is represented by the numbers on paper but is so influential in human life. After Marx pointed out the basics of capitalism, launched the world workers movement, through the struggles of workers, of national liberation movements, Capitalism had self-correcting, economic and political theories born in the twentieth century have significantly contributed to changing the face of capitalism. In 1990 at a Paris symposium on Marx, the invited President stated that Marx was the savior of capitalism for pointing out its fundamental errors. Actually, about form, capitalism has changed a lot. But the nature of capitalism cannot be modified. That nature is a profitable, profitable way, including the adoption of political and military activities. Instead of forming a direct domination, capitalism creates an entirely democratically controlled state that is completely dependent on the political economy. Karl Marx argues that communism will be the final stage of history, achieved through a proletarian revolution. In communist society, decisions about what to produce and pursue policies are democratically chosen, allowing all members of society to participate in decision-making in both areas, political and economic. The production and distribution of wealth are reasonably made among citizens. Karl Marx never described in detail how communism would function as a socio-economic system, but it was understood that a communist economy would be based on the idea of equal share among its citizens. Marx asserts that the only way to solve these problems is by the working class (proletarians), who according to Marx are the main force that produces material wealth in society and are privately owned. The exploitative (bourgeois) empire stands up as a ruling class in place of the bourgeoisie to establish a free society, regardless of class or race. The state representing workers who have been orga nized into the dominant class will control the means of production for the benefit of society. Marx does not create what is now called communism. But the idea of producing and distributing wealth equitably carried out among citizens gives each other confidence in the proletariat or labor. Which it goes against the concept of capitalism at that time. Marxism became more popular and viral after Lenin successfully applied his theory and his idea. Marxism-Leninism was widely acknowledged in socialist countries such as the Soviet Union or China and Vietnam today. When Leninism-Stalinism suddenly adopted the term proletarian ideology in the late 1920s in order to designate not the distortion of proletarian consciousness under the pressure of bourgeois ideology but the very subjective driving force of proletarian revolutionary activity, this shift in the notion of ideology was strictly correlative to the reinterpretation of Marxism itself as an impartial objective science' (Zizek, Mapping Ideology 9). At the time of Marx, due to the influence of the revolutions in Europe and the Americas, people resorted to violent means of seizing power to deal with socio-economic problems without seeing the power. A lot of peaceful solutions by compromise and dialogue. Marx criticized and denied utopian socialism for its failure as a testimony to the need for socialist revolution. Violent revolutionary measures can give a very immediate result when the public is motivated to stand up for the revolution. But it will endure massive social losses for a long time, and When it is necessary to restrain the revolution and bring it back to a peaceful and friendly state, it is tough and time-consuming and enormous loss. Nonviolent peace measures, though slowly and seemingly ineffective, can, in fact, resolve the conflict once the conflict is ripe because society is the totality of communal forces. Assembly and forces are in need of each other, so they can adjust themselves to deal with conflicts. After t he death of Marx, the world has changed profoundly, and there have emerged effective methods of peaceful struggle through institutions such as unions, social organizations, social media, and religion. As one bitter critic put it, In the name of human progress, Marx has probably caused more death, misery, degradation and despair than any man who ever lived (Downs 1983, 299). 1487 words Bibliography Downs, Robert B. 1983. Books That Changed the World. 2d ed. New York: Penguin. Roemer, John E. 1988. Free to Lose. Cambridge, MA: Harvard University Press. Skousen, Mark. The Big Three In Economics. 1st ed. Armonk, N.Y.: M.E. Sharpe, 2007. Print.

Risk and Return Analyis and Portfolio Management of Indian Automobile Companies

PSG INSTITUTE OF MANAGEMENT FINANCIAL SYSTEMS A PROJECT REPORT On RISK AND RETURN ANALYSIS & PORTFOLIO MANAGEMENT Of INDIAN AUTOMOBILE COMPANIES Submitted by, G. Abirami(9UTB02) M. Kamalam(9UTB13) N. Nirupa(9UTB18) P. Srilakshmi(9UTB32) INDEX CONTENTS PAGE NO. Acknowledgement Statement of Problem Introduction: Industry overview Company profiles Objectives Scope & Limitations Literature Review Research Methodology Analysis & Interpretation Findings Suggestions Conclusion Bibliography (i) (ii) 1 1 3 13 13 14 18 20 33 36 37 38 ACKNOWLEDGEMENT First of all we thank the Almighty for having bestowed upon us the sufficient potential with which we are able to complete whatever work we undertake successfully. We feel a heart full of gratitude to our Director Mr. R. Nandagopal for encouraging us regarding all our curricular activities which take place at PSGIM. We also extend our thanks to our co-ordinator Mrs. V. Srividhya for being a constant support throughout and keeping us guided along the right path always. We also wish to thank our teacher for Financial and Management Accounting Mr. P. Varadharajan for having given us this opportunity in taking up this project and for his constant support and guidance throughout the course of the project. We also like to thank our parents who have carved a bright future for us by placing us in such a spectacular and prestigious institution where we could see ourselves as what and as whom we dream to become. May be the last but not the least people to thank are our friends. Thanks is a word not to be shared among friendship but it should be felt for the presence of their soulful support throughout our life. (i) STATEMENT OF PROBLEM Automotive Industry has significantly increased its contribution to overall industrial growth in the country. By 2030 India will be the third largest car market in the world after China and Japan. This coupled by the purchasing power of the ultra rich makes India a top destination for manufacturers of luxury cars Investment by foreign companies in automobiles implies a bright future for the auto industry India. This will lead to the creation of jobs, and a wider range for consumers to choose from. It will also give Indian companies a chance to compete globally for clients. This will greatly benefit the auto component and ancillary industry that will get access to the latest technology and manufacturing practices. According to Commerce Minister Kamal Nath, India is an attractive destination for global auto giants like BMW, General Motors, Ford and Hyundai who were setting base in India, despite the absence of specific trade agreements. Current Scenario On the cost front of Indian automobile industry, OEMs are eyeing India in a big way, investing to source products and components at significant discounts to home market. Overview By 2010, India is expected to witness over Rs 30,000 crore of investment. Maruti Udyog has set up the second car with an investment of Rs 6,500 crore. Hyundai will bring in more than Rs 3,800 crore to India. Tata Motors will be investing Rs 2,000 crore in its small car project. General Motors will be investing Rs 100 crore and Ford about Rs 350 crore. Ashok Leyland and Tata Motors have each announced over Rs 1,000 crore of investment. (ii) ________________________________________ ________________________________________ INTRODUCTION In India there are 100 people per vehicle, while this figure is 82 in China. It is expected that Indian automobile industry will achieve mass motorization status by 2014. Industry Overview: Since the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favourable. The liberalization policy and various tax reliefs by the Govt. of India in recent years have made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford. A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the ‘canvas' of Indian economy. Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles. Snippets: The first automobile in India rolled in 1897 in Bombay. India is being recognized as potential emerging auto market. Foreign players are adding to their investments in Indian auto industry. Within two-wheelers, motorcycles contribute 80% of the segment size. Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%). Tata Motors dominates over 60% of the Indian commercial vehicle market. 2/3rd of auto component production is consumed directly by OEMs. India is the largest three-wheeler market in the world. India is the largest two-wheeler manufacturer in the world. India is the second largest tractor manufacturer in the world. India is the fifth largest commercial vehicle manufacturer in the world. The number one global motorcycle manufacturer is in India. India is the fourth largest car market in Asia – recently crossed the 1 million mark. 1 Segment Knowhow: Among the two-wheeler segment, motorcycles have major share in the market. Hero Honda contributes 50% motorcycles to the market. In it Honda holds 46% share in scooter and TVS makes 82% of the mopeds in the country. 40% of the three-wheelers are used as goods transport purpose. Piaggio holds 40% of the market share. Among the passenger transport, Bajaj is the leader by making 68% of the three-wheelers. Cars dominate the passenger vehicle market by 79%. Maruti Suzuki has 52% share in passenger cars and is a complete monopoly in multipurpose vehicles. In utility vehicles Mahindra holds 42% share. In commercial vehicle, Tata Motors dominates the market with more than 60% share. Tata Motors is also the world's fifth largest medium & heavy commercial vehicle manufacturer. 2 COMPANY PROFILES ASHOK LEYLAND In 1948, The Company was incorporated on 7th September, at Chennai. The Company Manufacture Comet chassis and Leyland `Tiger' and `Titan' Chassis and Leyland diesel engines. In 1955, the name of the Company was changed from Ashok Motors Ltd. , to AshokLeyland Ltd. in July. Ashok Leyland Motors Ltd. , are the associates Of the company In 2006, Ashok Leyland gets ISO/TS 16949 corporate certification In 2010, Ashok Leyland, the flagship company of Hinduja group, unveiled the Country’s first electric plug-in CNG hybrid bus, HYBUS, at the Delhi Auto show. Company Background Name Auto LCVs/HCVs House Name Hindujas Group Year of Incorporation 1948 Board of Directors: R J Shahaney Chairman / Chair Person D J Balaji Rao Director Ramachandran R Nai Director Shardul S Shroff Director V Sumantran Director Vinod K Dasari Whole Time Director J N Amrolia Executive Director S Balasubramanian Executive Director R R G Menon Executive Director M Nataraj Executive Director Rajive Saharia Executive Director 3 EICHER MOTORS In 1982, The company was incorporated on 14th October, and the Certificate of commencement of business was obtained on 28th March, 1983. It was promoted in the joint sector by Eicher Goodearth Ltd. Mitsubishi Corporation, Japan, Mitsubishi Motors Corporation Japan and Madhya Pradesh Audyogik Vikas Nigam Ltd. In 2005, Eicher Motors entered into definitive agreements with TMTL on May 27, In 2006, Eicher Motors Ltd (EML) on Feb 20, announced Mr. Siddhartha Lal as its new Managing Director designate. Eicher joins hands with Wipro to source hydraulic kits In 2007, Eicher Motors Ltd has informed that the Board of Directors of the Company in its meeting held on October 22, 2007 approved appointment of Mr. Rajesh Arora as Company Secretary as well as Compliance Officer of the Company. Company Background: Industry Name Auto LCVs/HCVs House Name Eicher Group Year of Incorporation 1982 Board of Directors: S Sandilya Chairman / Chair Person Priya Brat Director Prateek Jalan Director Siddhartha Lal Managing Director & CEO 4 ESCORTS In 1947, After partition the registered office of the Company was shifted from Lahore to New Delhi. The name of the Company was changed from Escorts (Agents) Pvt. Ltd. , to Escorts Ltd. upon its conversion into a Public company. In 2005, Escorts win . 5-m tractor order from Ghana Escorts Ltd has acquired its Polish joint venture partner, Farmtrac Tractors Europe Escorts' US subsidiary teams up with SAME Deutz-Fahr Italia In 2006, Escort India is set to manufacture tractors in Bangladesh through a Joint venture with the Nitol-Niloy group. Company Background Name Auto Tractors House Name Nand Year of Incorporation 1944 Board of Directors: Rajan NandaChairman and Managing director M G K MenonDirector P S PritamDirector Nikhil NandaJoint Managing Director 5 HERO HONDA In 1984, The Company was incorporated on 19th January, at New Delhi. The Company Manufacture motor cycles up to 100 cc capacity. The Company Was promoted by Hero Cycles (P) Ltd. (HCPL). In 2005, New product launches widen HHML's product portfolio Two-wheeler major Hero Honda on October 5 announced launch of its First scooter ‘Pleasure' Hero Honda rolls out 150-cc motorcycle Achiever. In 2006, Hero Honda announced the launch of two new variants the new ‘Glamour' and ‘Passion Plus' limited edition. In 2007, Hero Honda Motors Ltd. has appointed Mr. Yutaka Kudo as Director and Whole-time Director of the Company in the category of Executive Director w. e. f. April 1, 2007. Company Background: Industry Name Auto 2 & 3 Wheelers House Name Hero Year of Incorporation 1984 Board of Directors: Toshiaki Nakagawa Joint Managing Director Masahiro Takedagawa Non Executive Director Pawan Munjal Managing Director and CEO Takashi Nagai Non Executive Director Pradeep Dinodia Non. Exe. Independent Director 6 HMT In 1953, The Company was incorporated in Bangalore. The Company was converted into a Public Limited Company on May 13, 1977. The main objects of the Company is Manufacturing of the Machine tools, metal forming presses and press brakes, pressure die, casting machines and automatic plastic injection molding machines, automatic plastic injection molding machines. In 1998, HMT International Ltd, a wholly-owned subsidiary of HMT, has bagged a Rs. 3-crore order for setting up an Entrepreneur Technical Development Centre (ETDC) at Dakar in Senegal. In 2010, HMT Ltd has informed that Shri Harbhajan Singh has been appointed as Part-time Official Director on the Board of the Company with Effect from January 11, 2010 Company Background: Industry Name Auto Tractors House Name Public Sector Year of Incorporation 1953. Board of Directors: Rajiv BansalDirector S G SridharDirector (Operations) S BehuriaDirector Sourabh ChandraDirector K KipgenDirector Prakash SharanExecutive Director Harbhajan SinghPart Time Official Director 7 MARUTI SUZUKI In 2000, The Company was awarded the Highest Exporter Award in New Delhi. ICRA has assigned `LAAA' rating to the Rs. 200-crore Long-term non-convertible debenture program and `A1+' rating to the Rs. 100-crore commercial paper program of the company. In 2002, The government on May 14, 2002 set into motion big-ticket disinvestment in 2002-03 by announcing a two-stage process to exit from Maruti Udyog Ltd, a joint venture with Suzuki Motor Company. In 2007, Maruti Udyog Limited has informed that Mr. Tsuneo Kobayashi, a Non-executive director, has been appointed as Whole-time Director designated as Senior Joint Managing Director. The Board of Directors in their meeting held on 22nd January, 2007 has approved the above. UTI Bank and Maruti have joined hands for giving car finance. Company Background: Industry Name Auto Cars & Jeeps House Name MNC Associate Year of Incorporation 1981 Board of Directors: R C BhargavaChairman / Chair Person Amal GanguliDirector Keiichi AsaiDirector Osamu SuzukiDirector Davinder Singh BrarDirector 8 TATA MOTORS Tata Motors Limited is India's largest automobile company, with consolidated revenues of Rs. 70,938. 85 crores (USD 14 billion) in 2008-09. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's second largest bus manufacturer. The company's 24,000 employees are guided by the vision to be â€Å"best in the manner in which we operate, best in the products we deliver, and best in our value system and ethics. Established in 1945, Tata Motors' presence indeed cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads, since the first rolled out in 1954. Company Background Industry Name Auto LCVs/HCVs House Name Tata Group Collaborative Year Of Incorporation 1945 Board of Directors: Ratan N TataChairman / Chair Person N A SoonawalaDirector R Gopalakri shnanDirector S M PaliaDirector S BhargavaDirector V K JairathDirector 9 TVS MOTORS TVS has been at the forefront in bringing a revolution in the way personal commutation was happening, way back in the 1980s. Beginning with launching a simple, easy-to-use moped for the middle class in India in the 1980s to launching 7 new bikes in a single day (first time in the history of the automotive industry in the world), TVS has often taken the unbeaten path to innovation. The Group's principal activity is to manufacture and sell motor cycles and components. The Group operates in two segments: Automotive Vehicles and Automotive Components. Automotive Vehicles include motorcycles, mopeds, ungeared scooters and three wheelers. The products of the Group include TVS Apache, TVS Scooty, TVS Fiero, TVS Super XL, TVS Victor, TVS Centra, TVS Star etc. It's plants are located at Hosur, Tamil Nadu , Mysore, Karnataka and Solan, Himachal Pradesh. Company Background Industry Name Auto 2 & 3 Wheelers House Name TVS Group Year of Incorporation 1982 Board of Directors: Venu Srinivasan Chairman and Managing director T Kannan Director K S Bajpai Director Prince Asirvatham Director 10 MAHINDRA AND MAHINDRA: Mahindra embarked on its journey in 1945 by assembling the Willys Jeep in India and is now a US $6. 3 billion Indian multinational. It employs over 1,00,000 people across the globe and enjoys a leadership position in utility vehicles, tractors and information technology, with a significant and growing presence in financial services, tourism, infrastructure development, trade and logistics. The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate brand image. Mahindra is the only Indian company among the top tractor brands in the world and has made an entry in the two-wheeler segment, which will see the company emerge as a full-range player with a presence in almost every segment of the automobile industry. The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global business and information technology services company, Satyam Computer Services. The company is now known as Mahindra Satyam. Mahindra's Farm Equipment Sector is the proud recipient of the Japan Quality Medal, the only tractor company worldwide to be bestowed this honour. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. The US based Reputation Institute recently ranked Mahindra among the top 10 Indian companies in its Global 200: The World's Best Corporate Reputations list. Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its first Sustainability Report for the year 2007-08. Company Background: Industry Name Auto -Cars & Jeeps House Name M & M Year of Incorporation 1945 Board of Directors: Keshub Mahindra Chairman / Chair Person Deepak S Parekh Director M M Murugappan Director A S Ganguly Director Anupam Puri Director 11 BAJAJ AUTO Bajaj Auto Ltd. is the largest exporter of two and three wheelers. With Kawasaki Heavy Industries of Japan, Bajaj manufactures state-of-the-art range of two-wheelers. The brand, Pulsar is continually dominating the Indian motorcycle market in the premium segment. Its Discover DTSi is also a successful bike on Indian roads. 2010 – Bajaj Auto launched a 135 cc Pulsar, priced at Rs 51,000, pushing the Pulsar brand into the mass segment. Company Background: Founder Jamnalal Bajaj Year of Establishment 1926 Industry Automotive 2 & 3 Wheelers Business Group The Bajaj Dominant presence in Sri Lanka, Bangladesh, Columbia, Guatemala, Peru, Egypt, Iran and Indonesia. Joint Venture Kawasaki Heavy Industries of Japan Board of Directors: Rahul Bajaj Chairman / Chair Person Rajiv Bajaj Managing Director D S Mehta Director Shekhar Bajaj Director J N Godrej Director Suman Kirloskar Director 12 ________________________________________ ________________________________________ OBJECTIVES Primary Objective: Construction of optimal portfolio using Sharpe Index Model To analyze the risk and return of Indian automobile companies. Secondary Objectives: To understand the Sharpe's Portfolio Selection Model over the Standardized Index Portfolio called Market portfolio in respect of stock market perations in India. It also involves the estimation of Beta for each potential asset; these estimations are obtained based on past data and using statistical methods in order to obtain future Beta. To understand the current scenario of Indian automobile industry. SCOPE & LIMITATIONS Scope: To get overview outline about the selected Indian automobile company, their performance comparison, market share, potential and their volatility. Serves as a source of information for investors in identifying the risk averse and risk seeking shares (more return and less risk)of selected automobile industry. To get insight about the application of Sharpe index model in risk and return analysis of portfolio management. Limitations 1. Only selected industries in Indian automobile sector. 2. The data obtained and collected are only approximate and not more accurate. 3. Market fluctuations in share price of the selected industries. 4. Application of Sharpie index model alone. 13 ________________________________________ ________________________________________ LITERATURE REVIEW â€Å"The Accounting Review†: Elgers, Pieter T. Murray, Dennis ( Apr 1982) published that a measure of investment risk-the systematic risk of the Sharpe-Linter capital asset pricing model (CAPM)-is now widely employed. The relationship between beta estimates and various accounting risk measures (ARMs) have been extensively studied by accounting researchers, but results have led to different inferences about the usefulness of ARMs. The impact of the choice of market index on inferences concerning the usefulness o f ARMs in explaining and predicting beta is investigated. The association of ARMs and beta tests are always joint tests. Beta reflects the expected co variation between the returns of a given security and those of the market portfolio of all risky capital assets. The market portfolio, however, is not observable. Empirical evidence showed: 1. that the stability of beta estimates over time are quite sensitive to the market index employed, 2. that the ability of ARMs to explain differences among betas for a cross-section of firms is highest when the betas are estimated using the CRSP equal-weighted index, and 3. that the ability of ARMs to improve upon market-based forecasts of beta depends upon the choice of market index and the error metric employed. The Journal of Finance†: Kwan, Clarence C. Y (Dec 1984) published that a simple common algorithm that is applicable to 7 models is suggested for optimal portfolio selection disallowing short sales of risky securities. The 7 models considered are: 1. Sharpe's (1963) single index model, 2. Cohen and Pogue's (1967) multi-index models in diagonal and cova riance forms, 3. Two multi-index models with orthogonal indexes, and 4. Two constant correlation models. The proposed algorithm successfully bypasses the requirement of explicitly ranking securities that is essential in previous research on the topic. Because of this feature, the algorithm is especially useful for the 2 multi-index models with orthogonal indexes where there are problems in establishing a ranking criterion. An illustrative example is provided showing the results of all the iterative steps. It is demonstrated in a simulation study performed on the 5 models with multiple groups that the procedure involved in the search for optimality requires only small numbers of simple iterative steps. Thus, the method can enhance the usefulness of these index models and constant correlation models in portfolio analysis. The Journal of Portfolio Management†: Gressis, N. , Vlahos, G. , Phillipatos, G. C. (Spring 1984) published that the recent establishment of stock index futures markets has opened up a variety of new investment opportunities that should improve the performance of both secondary markets and individual investor portfolios. Trading in stock index futures has been proposed as an effective hedge against investment risk. A technique based on the capital asset pricing model (CAPM) framework is here developed to identify the profit opportunities of stock index futures trading. With this technique, the systematic risk of a stock index futures contract can be identified for the investor buying on margin, along with the abnormal returns that can be expected from the contract and its equilibrium price. The technique is demonstrated in application to the Standard & Poor's 500 Index futures. It is shown that the risk of a stock index futures contract declines with the length of the investment horizon. However, the degree of abnormal performance and the deviation of the equilibrium price of the contract from the market price increases with time to maturity. The Journal of Portfolio Management†: French, Dan W. , Henderson, Glenn V (Winter 1985) published that the investment portfolio performance measures based on the capital asset pricing model are examined under ideal conditions that work around the problems that their critics have discovered. These problems include Miss specified independent variables, omitted variables, errors in variables, and unstable p arameters, all of which are basically beta problems. A database is constructed by simulating 60 portfolios or security return series, each containing 3 random variants having their own distribution. Regression analysis results show that winners cannot be distinguished from random performers, and that winners cannot even be labelled as such unless they are remarkably successful. If random noise is the only contaminating factor in performance evaluation, then the 4 currently popular performance measures rank in an internally consistent fashion and rank portfolio performance correctly â€Å"The Journal of Portfolio Management†: Peters (Summer 1985) published that Evidence is presented suggesting that early mispricing of stock index futures was due to market inefficiencies, but that the markets have become more efficient over time. This growing efficiency is the result of more experienced traders and the increasing availability of accurate valuation models. This evidence is derived from a test of market efficiency done using a cost-of-carry valuation model. The test is limited to the Standard & Poor's 500 and the New York Stock Exchange Composite indexes. The theoretical value for each future contract over the period June 1982-December 1983 is computed using data from CE/ICD's ANALYSTICS database. Results indicate that both index futures markets have become more efficient with time. If it is assumed that investors are rational and that expectations of the index value are not considered in valuation, it can further be assumed that dividend stream estimation is the major source of market inefficiency. Portfolio managers can now use index futures for hedging with greater confidence. 15 â€Å"The Journal of multinational financial management†: Javier Estrada and Ana Paula Serra (July 2005) published that the proper identification of the risk variables that explain the cross-section of returns in emerging markets has many and far-reaching implications for both companies and investors. We examine this risk–return relationship by focusing on three families of models, over 25 years of data, and over 1600 companies in 30 countries. We perform a statistical analysis that seeks to identify the variables that should be incorporated into the calculation of required returns on equity, and an economic analysis that seeks to determine the variables that produce the most profitable portfolio strategies. We find rather weak statistical results that prevent us from strongly recommending a given family to estimate required returns on equity. And we find somewhat stronger economic results that show that a variable belonging to our downside risk family, the global downside beta, is the one that has the largest impact on returns when portfolios are rebalanced every 5 years. â€Å"University of Mannheim – Department of Business Administration and Finance† : Alen Nosic (March 6, 2007), published that the determinants of investors' risk taking behavior. We find that investors' risk taking behaviour is affected by their subjective risk attitude and by the risk and return of an investment alternative. Our results also suggest hat consistent with previous findings in the literature objective or historical return and volatility of a stock are not as good predictors of risk taking behavior as subjective risk and return measures. Moreover, we illustrate that overconfidence or more precisely miscalibration has an impact on risk behavior as predicted by theoretical models. However, our results regarding the effect of var ious determinants on risk taking behavior heavily depends on the domain the respective determinant is elicited. We interpret this as an indication for extended domain specificity. In particular with the Markets of Financial Instruments Directive (MiFID) coming into effect we believe practitioners could improve on their investment advising process by incorporating some of the determinants we argue to influence investment behavior. † European Journal of Operational Research†: Xiang Li, Zhongfeng Qin, Samarjit Kar (April 1, 2010) published Numerous empirical studies show that portfolio returns are asymmetric, and investors would prefer a portfolio return with larger degree of asymmetry when the mean value and variance are same. In order to measure the asymmetry of fuzzy portfolio return, a concept of skewness is defined as the third central moment in this paper, and its mathematical properties are studied. As an extension of the fuzzy mean-variance model, a mean-variance-skewness model is presented and the corresponding variations are also considered. In order to solve the proposed models, a genetic algorithm integrating fuzzy simulation is designed. Finally, several numerical examples are given to illustrate the modeling idea and the effectiveness of the proposed algorithm. Banking and Finance†: Cheol S Eun, Jinso Lee (April 2010) published that the risk-return characteristics of our sample of 17 developed stock markets of the world have converged significantly toward each other during our study period 1974-2007, and (ii) that this international convergence in risk-return characteristics is driven mainly by the declining ‘country effect', rather than the rising ‘industry effect', suggesti ng that the convergence is associated with international market integration. Specifically, we first ompute the risk-return distance among international stock markets based on the Euclidean distance and find that the distance thus computed has been decreasing significantly over time, implying a mean-variance convergence. In particular, the average risk-return distance has decreased by about 50% over our sample period. We also document that the risk-return characteristics of our sample of 14 emerging markets have been converging rapidly toward those of developed markets in recent years. This development notwithstanding, emerging markets still remain as a distinct asset class. Lastly, we show that the convergence in risk-return characteristics has exerted a negative impact on the efficiency of international investment during our sample period. â€Å"Journal of investment management†, Lisa R Goldberg, Michael Y Hayes (first quarter 2010) published that a practical and effective extension of portfolio risk management and construction best practices to account for extreme events. The central element of the extension is (expected) shortfall, which is the expected loss given that a value-at-risk limit is breached. Shortfall is the most basic measure of extreme risk, and unlike volatility and value at risk, it probes the tails of portfolio return and profit/loss distributions. Consequently, shortfall is (in principle) a guide to allocating reserve capital. Since it is a convex measure, shortfall can (again, in principle) be used as an optimization constraint either alone or in combination with volatility. In principle becomes in practice only if shortfall can be forecast accurately. A recent body of research uses factor models to generate robust, empirically accurate shortfall forecasts that can be analyzed with standard risk management tools such as betas, risk budgets and factor correlations. An important insight is that a long history of returns to risk factors can inform short-horizon shortfall forecasts in a meaningful way. 17 ________________________________________ ________________________________________ RESEARCH METHODOLOGY Sources of data: We selected the companies based on the market capitalisation and for this we referred money control. om from where we sorted out the top ten automobile companies in India based on the market capitalisation value given as of March 1, 2010. Then the opening and closing stock price of the top ten automobile companies for the previous five financial years (2005-2006, 2006-2007, 2007-2008, 2008-2009, 2009-2010) was downloaded from NSE website(nseindia. com). The overall index return price was also downloaded from the same website for the same period. Top ten automobile industries selected based on market capitalisation are: Company nameMarket Capitalisation(Rs. Crore) Tata Motors43,388. 97 Maruti Suzuki 42,705. 24 Hero Honda38,218. 19 Tech Mahindra31,398. 74 Bajaj Auto 27,698. 93 Ashok Leyland 7,183. 83 HMT 6,307. 10 TVS Motor 1,800. 58 Eicher Motors 1,685. 52 Escorts 1,387. 46 Market capitalization (often market cap) is a measurement of the size of a business enterprise (corporation) equal to the share price times the number of shares outstanding of a public company. As owning stock represents ownership of the company, including all its equity, capitalization could represent the public opinion of a company's net worth and is a determining factor in stock valuation. Tools used: We used certain formulae to study on the risk and return of the companies and the portfolio management based on the Sharpe – Index model. The calculations were done in a spread sheet to make it easier. The formulae of the elements used in the spread sheet are as follows: Sum of Individual Stock returns – Ri and Market return – Rm. 18 Stock return – Y and Market return – X: = ((Today’s price – Yesterday’s price) / Yesterday’s price)*100. Mean of stock return – Y? , Mean of market return – X?. Y? = (sum of Y)/ total number of days X? = (sum of X)/ total number of days Standard deviation of Stock return – ? , Standard deviation of market return – ? x. Correlation = Covariance/(? y * ? x) Risk factor ? = Covariance *(? y / ? x) Return indicator ? = Y? – ? (X? ). Unsystematic risk – ? ei?. Cut off point Ci: n Ci = ? m? * ? ((Ri-Rf)? )/ ? ei? ) i =1 n 1 + ? m? * ? ( / ? ei? ) i=1 where , ? m = market variance. Z value = Zi/ ? _(i=1)^n-Zi where, Zi = ? /? ei? ( Ri-Rf)/? – Ci X value = Zi / Z. Tables and bar graphs are drawn for average values of important parameters like ? , ? x, ? y, X? , Y? , for each company for all five years. Outcomes are represented diagramaticaly) A table for all companies’ cut-off point, Z value, X value is also drawn. Population & Sample size: There was a total of about 16 automobile companies registered in NSE website out of which we selected top 10 companies based on the market capitalisation as mentioned before. Total population in NSE = 16. Sample size = 10. (Specific yrs. 2005-2010) 19 ________________________________________ ________________________________________ ANALYSIS AND INTERPRETATION Ashok Leyland Interpretation: Average Stock return Y? is largest during the year 2009(approximately 0. 6) and lowest during the year 2008 (approx. -0. 4). Risk factor ? is more during the year 2010 and low during the years 2006, â €™07, ’08. Highest deviation is seen in the year 2008 and least is seen in 2005. 20 Eicher Motors Interpretation: The company experiences the highest average stock return during the year 2009 (approx. 0. 5) and the lowest during the year 2010(approx. -0. 25). Risk factor ? is below 1 for all the years except 2010. But the average value for the five years stays below 1. Highest deviation is seen in the year 2008 and least deviation one is seen in 2005. 21 Escorts Interpretation: The company has a highest stock return in 2009 and less stock return in 2008. Average stock return is very low which is near to 0. 053. ?eta value is high in the year 2005 and low in the year 2009 and all the beta values are above 1. Deviation is seen high in 2008 and less in 2010. 22 Hero Honda Interpretation: Beta value is seen to be above 1 during the years 2007 & 2010. Average beta value of the company is seen to be below 1. Stock return is high during the year 2009 and negative during the years 2006 & 2007. Deviation is high in the year 2008. 23 HMT Interpretation: The company has a good stock return during the years 2005 and 2010 and negative during the year 2008. The deviation is very much high for the company here. Average deviation of 4. 5 is seen here. Average beta value is more than 1. 24 Maruti Suzuki Interpretation: Stock return is highest during the year 2009 and less during 2008. Beta value is less than 1 after 2007 and more than 1 before 2007. Deviation is large during 2008. 25 Tata motors Interpretation: Stock return is high in the year 2009 and has gone negative in the previous year. Beta value is less 1 from 2007 and >1 in 2005 & 2006. The deviation is more in 2009 and 2008. 26 TVS Motors Interpretation: Stock return high in 2009and very low in 2008. Beta value is less than 1 in all cases than in 2006. Deviation is supposed to be high in 2009. 27 Tech Mahindra Interpretation: The stock return is very high during the year 2006 and very less(negative) during the year 2008. Deviation is almost high for all the years. Average beta value is < 1. 28 Bajaj Auto Interpretation: The company has shown a good stock return of positive value during the years 2009 & 2010. Beta value is less than 1 for all the years. Deviation is high during the year 2008. 9 Table- Summary of Calculations Market return vs. Individual stock return Figure – 1 30 Comparison of Unsystematic risk and cut off points Figure – 2 Systematic Risk Figure – 3 31 Interpretation from Summary of Calculations: Table Figure – 1: HMT has the highest stock return and is greater the market return(about 170) Second comes the Maruti Suzuki followed by Hero honda. (about 150) TVS Motors has the lowest stock return of all the 10 companies and is less than the market return. (about 70) Figure – 2: Unsystematic risk is high for HMT (approx 19) and second Escorts. (approx 18) Hero Honda has the lowest unsystematic risk. (approx 5) Bajaj Auto has the highest cut off point whereas Ashok Leyland has the lowest cut off point. Figure – 3: Escorts has highest systematic risk (approx. 1. 36) HMT has the second higher risk value(approx. 1. 09) Bajaj Auto has the lowest risk value (approx. 0. 65) 32 ________________________________________ ________________________________________ FINDINGS Ashok Leyland: The ? value gives us a stock’s risk profile. Here we can take the average beta value and interpret and comment on the overall risk for the five years taken by the concern. Average beta value = 1 which means it is neither stable nor unstable. It is a neutral share and is expected to follow the market. From the table when we look at the ? value its average value is . 01233 which means that the minimum riskless return is 1. 23%. The company’s earnings from stock investment has reduced in the year 2010. We get a positive correlation value which implies that a 0. 5% in the market return will affect a company’s stock return by 0. 5% in the same direction. Eicher Motors: The company’s earnings from stock investment has reduced in the year 2010 from 2009. Here ? he company expects less volatility and less risk and therefore less returns. These are called defensive shares and will generally experience smaller than average gains in a rising market, will generally experience smaller than average falls in a declining market. From the table the average ? value 0. i6691. The minimum risk free return is 16. 69%. Mahindra is having high risk free rate so it is safe to hold this stock. Correlation value = 0. 44% 0. 44% of change in market return affects the stock return by 0. 44% in the same direction. Bajaj Auto: The return on stock investments is good during 2009 & 2010 when compared to the year 2008. Since beta value < 1. The company expects a stability, less risk and less returns. These are called defensive shares and will generally experience smaller than average gains in a rising market, will generally experience smaller than average falls in a declining market. Alpha From the table the average ? value 0. 24715. The minimum risk free return is 24. 715%. Bajaj is having the highest risk free retun in all the ten companies so it is very safe to invest. Correlation value = 0. 46% 0. 46% change in Rm = 0. 46% change in Ri in the same direction. 35 Summary of calculation: HMT is having high stock return because they are using stock investments efficiently in the business The low cut-off point is good which implies less payback. Ashok Leyland has minimum payback whereas Bajaj has maximum payback. Escorts involves in high risky projects expecting more returns rather Bajaj is not involving in risky projects. SUGGESTIONS Hero Honda is having low risk and high return. So it is good for the investors to invest in this company. (for investors) HMT is taking high risk and provides decent returns. So next to Herohonda, HMT is a good company to invest. (for investors) Bajaj is having a low return at a medium risk so the company have to indulge in risky projects to get good returns in the future. (for company) HMT and Escorts have high unsystematic risk, so they can go for product diversification to reduce the unsystematic risk. (for company) (Product diversification helps the companies to reduce the unsystematic risk because even if they lose in one of the products they can make up their revenues by some other product) Cut off point is the point at which the required rate of return is worth the expense. If it is high then that company is going to take a long time to repay its initial investment. In our case Ashok Leyland will be able to recover the money invested in the project as soon as possible than others. Ashok Leyland might serve as the best company to invest to get their investment back whatever the return may be. Based on the stock return, risk and the cut off point, Herohonda is a good company to invest because they have an optimum return at an optimum risk level. TVS motors has a high cut off point, less stock return at a high risk. They can reduce their risk level, because it might involve large sum of investment. 36 ________________________________________ ________________________________________ CONCLUSION According to our findings we suggest that Hero Honda is the best Automobile company in India to invest and the investment can range up to 42% as per our analysis. Although India has been much discussed in recent years, and has been the recipient of major foreign investment in its automotive industry, it has in many ways not received the attention of the world’s other major developing country, China – but this is about to change. With the world’s second largest and fastest-growing population, there is no denying India’s potential in both economic and population terms and the effect it will have on the auto industry in the years to come. The country is already off to a good start, with a well-developed components industry and a production level of one million four-wheeled vehicles a year, plus a further five million two- and three-wheelers. India also has substantial strength in mass production techniques and is particularly well served in the fields of research and development and software design. Therefore, as always, the question is when will expansion occur and to what level? The implications, market drivers and scope of a future massive Indian vehicle market are covered in the India Strategic Market Profile, a brand-new forecast of Indian automotive and related activity to 2020. 37 BIBLIOGRAPHY Robert A. Strong, year, Portfolio Management, 82-85,123-131. Jeff Madura, 2009, Finance Markets and Institutions, 243-283. Dr. G. Ramesh Babu, 2007, Portfolio Management Including Security Analysis, 577-647. www. nseindia. com www. moneycontrol. com www. springerlink. com www. proquest. com www. sciencedirect. com www. jstor. org www. informaworld. com 38

Play It Again Sam Analysis Essay

Sam is an excellent production, by far one of Woody Allen’s best movies. It tells the story of Allan Felix, a neurotic New York film critic who is left by his wife, since according to her he is an ‘observer, not a doer’. This devastating event makes him fall into a deep depression; consequentially, he gets corporal aid from his married friends, Linda and Dick. However, this help appears not to be enough, Allan’s love life seems going nowhere until he creates a special connection with Linda, which leads him into her arms. My opinion about this movie being excellent is based on several facts, which can be easily appreciated when watching this extremely controversial film. The word ‘controversial’ should be emphasized when analyzing this movie, considering that the topics discussed in it were not commonly discussed or confronted in the mid nineties, time in which this film was released. This movie is considered polemic due to the obvious critiques towards the American’s daily life, which is achieved by mentioning different subjects such as, dependence. This theme is represented in a different way depending on the character we focus; with Allan, this topic is represented by the deep depression he falls into, which follows him though all the film. When focusing in another character, Linda in this case, her dependence is shown by her pill addiction. Finally Dick, he is a workaholic, his dependence takes him to the point when he starts comparing his love to his wife with an ‘economical investment’. These characters decide to depend on something so it is easier for them to be secure and comfortable, ignoring the problems surrounding them and escaping from reality. Stereotyping is another main theme in this movie. When Dick asks Allan how he liked women, he describes a model type ‘Skinny, blond, good breasts’. This stereotype of perfect women is a consequence of the idol worshiping so characteristic of us, human beings. We all have someone we follow. An actress, singer, model, etc. someone we relate ourselves with or because we want to overcome something we don’t like about ourselves, we always use someone as a reference and Allan is not the exception. Allan’s character is a Humphrey Bogart-obsessed film writer that has abundant imagination. Bogart himself appears as an apparition to give Allen advices. Allan: I can’t do it. How does it look? I invite her over and then come on like a sex degenerate. What am I, a rapist? Bogart: You’re getting carried away. You think too much. Just do it. Allan: We’re platonic friends. I can’t spoil that by coming on. She’ll slap my face. Bogart: Oh, I’ve had my face slapped plenty of times. Allan: Yeah, but your glasses don’t go flying across the room. The reason why Woody Allen sets the title ‘Play it again, Sam’ is because it is originally a quote from the film Casablanca, and as I already said before the main character is obsessed over this movie (Casablanca) and the main character of it. Not only the apparitions of imaginary characters and dependence on drugs and self unconformity but how music is applied to the film shows how Allan is trying to escape from reality and place himself in a romantic Bogart movie. Every time he has a date, he turns on the music volume really loud so that the atmosphere is more movies like or factionary. We can appreciate this all over the movie and mostly at the end when he quotes the ending of Casablanca. Finally, trying too hard is the last main topic. Allan is always trying too hard for everything, making things tougher for himself and being clumsy. This is a quote from the movie demonstrating what I just stated, Allan: What are you doing Saturday night? Woman: Committing Suicide. Allan: What about Friday night? This character is always trying to fit in, we can appreciate in a scene on the movie the night after his wife leaves him that he goes to a pub and takes a drink but he doesn’t really likes it, he is juts doing what most of the men do trying to be normal. In conclusion, I believe this is a great movie, considering that it is not only hilarious; but it is fascinating how the different elements used by the film director Herbert Ross such as, music, effects, lights and place set; creates a perfect atmosphere for each of the scenes. Also, the actors chosen were all brilliant choices and how every character has its own meaning, contributing a special and unique theme to this classical film. This movie is one of my favorite oldies.

Importance and Role of Leadership in Globalization

Importance and Role of Leadership in Globalization Leadership is a word whose definition cannot be vividly explained. Many books have been written on this topic Businesses, counselors and motivational speakers have also contributed in this debate. However, the need to find a definition doesn’t require one to look for a specific definition that can be accepted by everybody, but rather a definition that tries to explain what leadership should be in totality.Advertising We will write a custom essay sample on Importance and Role of Leadership in Globalization specifically for you for only $16.05 $11/page Learn More The reason for choosing a working definition is to enable the debate of its role and importance on globalization to be understood. According to Kouzes and Posner (3), â€Å"Leadership is ultimately about creating a way for people to contribute making something happen.† Lussier and Achua (4) argued that, â€Å"Leadership is really a crock; it is about manipulating people to get them to d o something they don’t want to do, and there may be anything in it for them.† Leadership can be considered to be the provision of a vision to the people whom one has authority over and pushing through the understanding of the vision and the achievement of its goals for the benefit of the institution one is leading. Grint (4) on the other hand, looks at leadership from different perspectives. He describes leadership to be a position, a person, a result or a process that gets things done Some of the popular people in the world have been known to be leaders depending on how one views leadership. The enthusiasm a person has while heading a company, country or an organization will obviously give him/her credit based on the success of that institution. If that is the case, then, there are a number of renowned leaders in the world. Bill Gates for instance, is a famous and popular multi billionaire. Credit is given to him as the leader and brain behind the Microsoft Corporation . His contribution to the field of Graphical User Interface computing and desktop is a great idea developed by him. Another remarkable leader in the Information and communication Technology Industry is Steve jobs who despite dropping out of school, managed to lead Apple Computers to success and production of Tech Savvy gadgets. Indeed, it is the zeal with which they steered their ideas that led to their success. Other types of leaders can be drawn from politics, religion and education. Lussier and Achua (7) argue that all managers perform a leadership rolse among their four activities including planning, organizing and controlling. Leadership and skills are very essential in the success of an organization. The kind of a leader an organization has determines the pace at which it will grow if it is growth focused. Some people say that leaders are born while others say leaders are made. Whichever side one may be in, the fact is that an individual has to learn leadership skills in order to lead. For a business to prosper, it would need more strategic leadership rather than leadership itself. This is because business thrives in a market with many environmental variables which affect the output of the business. It should be strategic because the environment constantly change and the business policies and ideas must change with it.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Globalization Globalization is the main point discussed in this paper. Steger (2) states that globalization is the â€Å"shrinkage of time and space†. It can also be defined as the linkage of world economic, cultural, political, and technological advancements. It has a tremendous importance to the seven billion plus people in the world. The prevailing tone concerning globalization is that, people are optimistic towards its intentions and outcomes. Incomplete globalization causes unde sirable problems along the way though the ultimate goal of global peace and prosperity is considered to be achieved at the end. Not only will globalization bring world economy into efficiency, but it will also provoke political and social fields to overcome national barriers. The first and foremost benefit of globalization is economic efficiency. Not only have countries been able to focus on their primary industries and save budgets from developing inefficient ones, but they have also been provided with a wider range of products to select from. Globalization has also laid out the groundwork for free trades which contributed largely to the bigger market. Reasons for globalization Globalization is making the market accessible to everybody in the world. In fact, the concept of globalization has made the world to be a global village whereby, one can be able to buy a commodity from one continent and within two days, the commodity is shipped to the buyer. There are various reasons why the world has to embrace the concept of globalization. Globalization has enhanced food security in a number of ways. Food security is a situation whereby, producers produce enough food and sell at a fair price while consumers find enough food at fair prices all times. It is expected that no one should control the free flow of food while farmers are paid well from their produce without exploiting their customers. Food security is a major world concern because without food, everything is in a mess. There are many ways that globalization can enhance food security. The discovery of food biotechnologies that enhance the growth of faster growing, drought resistant and disease resistant plants has been a great milestone that has been shared throughout the world. Through this initiative, food production has been enhanced throughout the world for those who have embraced it. The fact that food can be sold freely in the world market with minimum or no barriers, it has also contributed greatly tow ards food security. McDonald (39) indicates that, â€Å"modern globalization brings new opportunities for improving human livelihoods and well being. In addition, it also brings greater recognition of the persistent sources of human insecurity from threats such as a lack of sufficient food.†Advertising We will write a custom essay sample on Importance and Role of Leadership in Globalization specifically for you for only $16.05 $11/page Learn More The contribution of globalization to food security is so great that a person in Africa can eat chicken from the United States of America with as much enthusiasm as that of their home. The Kentucky Fried chicken company is able to transport its chicken reared in America to the capital city of Kenya in Africa and still make reasonable sales fetching profits from their sales. The fact that food can move all the way from America to Africa is a big contribution to food security in the region. Food security can si mply be defined as availability of food at the right time and place and at affordable rates for the population. Globalization of culture is also a big idea that enhances world peace and integration. Integration improves relations between countries thereby embracing common values that make people understand each other. Therefore, they are able to live with each other peacefully. Ismail (3) states that, â€Å"globalization is currently enhancing the world’s atmosphere and is familiar to people from a diversity of civilizations†. Globalization is beautiful to world peace but it can be ugly in different dimensions. The fact that countries can trade freely with each other can be misused to for instance, sell weapons to countries that may be in dispute. This is used by countries that produce weapons hence, encouraging war between the countries that are at war. This is mainly used so that the country selling the weapons gains from the sale without taking the responsibility of the actions of the buying country. This is one of the undesirable effects of globalization. This however, should be controlled by international bodies and the big brother countries like the United States of America in achieving world peace. Globalization and technology have enhanced each other in different ways. Through free movement of technology in the world, the globe has been made like the size of a village. For instance, one can send an email to another within few seconds in a different continent. Through technology, communication has been enhanced and this has consequently enhanced integration through intermarriages and other unions. Over the past two decades Papageorgiou and Jaumotte (6) argue that, â€Å"income growth has been positive for all quintiles in virtually all regions and all income groups during the recent period of globalization, however, income inequality had increased mainly in middle and high income countries.†Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is contributed slightly by patent rules and regulations. For instance, people argue that through patent, the Microsoft Corporation has ensured monopoly over the years. This is so because the company produces products that cannot be used in other platforms and as well they discourage other people from making similar products. Technology has enhanced globalization greatly both positively and negatively. Through technology, revolutions have been experienced in the Arab world, it is said that a single ‘tweet’ spreads across the world in seconds. Depending on the message it carries, the results may be detrimental. A case that was experienced in the year 2011 is one that indicated that people receiving calls from a red number ending with triple 6 will die immediately after receiving it. This was a panic message that went viral and circulated very fast through mobile gadgets. In addition, giving tornado or any other disaster warnings to the populace is fast through techno logy. This is a great idea in globalization because now, people can communicate easily. This can influence leadership in the world in general. Previously, it was very difficult to express your views to the president. However, in the world today, it is very easy to drop a message to president Obama in a second. This has been able to put leaders on the spot, backing up the efforts of the media in the pushing of the political leaders to be responsible. Religion and globalization is also an area that influences each other and the leaders of these religious groups. Laguerre (17) indicates that, â€Å"a religion is global when it defines itself as a multinational, multicultural, and multiethnic faith based community project as reflected in its demographic composition.† Something is said to be global when it includes everybody or everything in the wider set. Globalization of culture, trade, technology, leadership, and socialization and other factors has enhanced the growth of religi ons and religious beliefs. For instance, through the internet, people are able to learn through correspondence and get to know much about the religion they want to join or learn about. Communication has been made easy so that people can criticize their leaders in their faiths positively. Another way through which globalization has impacted on religion is by enhancing its growth through free movement of the ambassadors of religion. The believers can be able to meet anywhere in the world and congregate and share what they belief in common. Through satellite Television, televangelism has led to expansion of religious institutions because people get ‘converted’ easily as it is easy to reach them at the same time. However, there is nothing that has only the best, there are shortcomings of globalization. Some of the religious leaders have ended up duping their followers into contributing money for projects that do not exist. The money obviously, ends up in their pockets. Thes e are some the undesirable effects of globalization of religion. Impact of leadership on globalization The phrase ‘think globally but act locally’ is not a clichà © in the leadership realm. It emphasizes the need to consult widely before acting. It is very important just like in construction of software’s, there are variables that will be used by ‘everybody’ and there are those that will be used by specific methods only. The programmer has control of all programs, thus, he/she should be able to coordinate them so as to achieve the best results. The paper has concentrated on globalization on the global sense hence, it is proper to look at how leadership has affects especially the growth of globalization. We first concentrate on leadership and globalization of religion. For a religious group to become global, it has to be multinational, multiracial, multicultural and multilingual. To achieve that, the group must define a strategy in which they will re ach different kinds of people. They should be able to devise a means through which they will reach the people and capture their attention. For that to be effective, it will depend greatly on the leaders. In an economy, the executive and the legislative arm of government make decisions which will affect the economy directly. They will have to make a decision on whether to concentrate the income of the economy like development of infrastructure as opposed to food production or education for a particular period of time. According to Laguerre (68), â€Å"developing infrastructural sign posts throughout the globe as a result of the missionary system that fuels its geographical expansion.† In fact, the local churches are units of the global network in different national territories worldwide. This is a brilliant idea that can only be implemented by the leadership of the church. Those who think locally can never go local but those who think global and act local do so by acting local in different locations. The result is a global network which essentially enhances globalization. Thus, brilliant leadership is the catalyst of religious globalization in this context. Think of a spiritual leader who thinks that people who are his/her friends are the only ones who should congregate with him. This leader is deemed to fail and the conclusion is that, his/her leadership is not remarkable. This will definitely leave people in their cocoons and they will not learn anything but have squabbles within themselves. The leadership of the ‘church’ then must be aggressive and change with time as well. They should also be able to devise new ways of attracting people to their congregation in the process of globalizing the church. In any case, a leader who cannot see the way, no one will guide him or her. The clichà ©, a blind man cannot lead another blind makes a lot of sense here. It is very important for the leadership of an organization to show and lead the way to the truth. Hence, for religion to become global, the leadership of the religion must be able to design policies that can encourage the followers. Otherwise, the ‘church’ or ‘mosque’ will not be in a position to go global but will just belong to a certain region. Leadership’s economic effect on globalization can be considered a great topic to discuss. Thompson and Reuveny (74) indicate that, â€Å"leadership change affects the Northern economy more than the Southern economy.† This clearly indicates that, leadership is pivotal to the economy of the world in general. The leadership basically makes decisions that affect the movement of products, knowledge and goods within an economy. This is so because if the leadership is clear in their mind, they are supposed to formulate policies that encourage investments from other countries (foreign investment) because they will do so within their means. An example is a third world country that is developin g which has to concentrate on particular issues than others. For instance, it is clear that education, medical care and shelter are very critical in the development of the country. But then, it is fair for the leadership to think outside the box and develop infrastructure that will enable private and foreign investors to invest in the country so that they generate jobs. The jobs so far generated will then make the lives of the employees better and the government will collect taxes that they would divert to education, medicine and other areas of development. Changing leadership technically affects globalization. For instance, there is something called friendship of nations. Once governments change, the concept of giving tenders to quality is not abided to rather, it is directed to nations that seem to be friendly to the sitting leadership. This is experienced in developing countries in the world. In America, the effect is usually felt by the party having presidency when it changes be tween the republicans and the democrats. The push to accept ideologies of either party greatly affects where to invest in the world and what to invest in. This directly affects the concept of globalization. According to Thompson and Reuveny (80), â€Å"it is consistent in our expectation that systematic leadership and long waves of economic growth are drivers of systemic phenomena such as economic globalization.† The economy of a country purely depends on government policies. These policies may be made in a way that will encourage or discourage foreign investors. If they encourage foreign investments, it is possible for people from all parts of the world to have a share of the local market. And this is what is known as economic globalization. It is clear that the leadership greatly impacts economic globalization a great deal. Leadership directly dictates the policies formulated, this is what will either encourage or discourage globalization. Political impact on globalization is very evident in the world. The latest incidences are coup staged in West African countries. Once the politicians cause instability in a country, any foreign agent in that country runs back to their country. Each country hosts ambassadors from countries it thinks have common interests. In most countries, the ambassadors are supposed to sell the good things about their home government. However, sometimes the big brother countries try to influence the politics of developing countries so that they can benefit from it. Prechel (3) wrote, â€Å"Advocates of this ‘global neoberalism’ believe it is necessary to sub ordinate states and politics to requirements of capital accumulation. This is clear because it affects globalization directly. In a matter of fact, the concept of globalization was born by political leaders because it must be steered ahead by the same political leaders who embrace the idea. Those who did not like the idea will keep fighting it to the end. Somethi ng good and beneficial to the masses will always go viral and the many that like it will make good use of it. The world bodies like the World Bank, United Nations, and International Monetary Fund are influenced by political leaders. The decisions made by these bodies directly affect politics of other parts of the world. This is something to think about in globalization. The politicians of a certain country may be backed by the UN while the opponents are not backed. This may because a major drift will either affect globalization positively or negatively. In the case of Muhamar Gadhafi who was ousted in Libya by the Transitional Government Fighters backed by NATO, is a good example of the effect of politics in globalization. It is said that the former Libyan leader was ruling with an iron fist hence, discouraging democracy and the immigration of foreigners into the country. Thus, he was discouraging globalization. Someone may conclude that after his regime, the country opened up and t here is free flow of information into and out of the country. Recommendation and Conclusion Globalization is real and helpful in the world today. It is of prime importance that people embrace togetherness making the world like a global village. If globalization is used objectively, it will enhance world peace, food security and international cohesion. Leadership has the biggest role in it. It is clear that if the leadership of various countries doesn’t enact proper government policies that encourage international business, international culture, and international relations then globalization cannot prevail. Leaders must remember that they must have a vision and work for the dream tirelessly. Sometimes they have to go an extra mile so that their dreams of a prosperous nation can be realized. The clichà © a blind man cannot lead another blind man is true in the sense that leaders must be brilliant people who are informed and ready to work in a vision that they have. Thinking g lobally and acting locally is a great quote for all leaders because local makes global. Leaders must factor in all global factors before implementing any action locally. The fact that human beings have common basic needs is a clear driver of why people should share the world resources through globalization. The reason for this assumption is that, globalization makes it possible to sell or buy commodities that one cannot produce in his/her country. Grint, Keith. Leadership: A Very Short Introduction, 1st Edition. New York, NY: Oxford University Press, 2010. Print. Ismail, Mohamed. Globalization and New International Public Works Agreements in Developing Countries, 1st Edition. Farnham Surrey, UK: Ashgate Publishing Limited, 2011. Print. Kouzes, James M. and Posner, Barry Z. The Leadership Challenge, 4th Edition. San Francisco, CA: John Wiley Sons, 2007. Print. Laguerre, Michel S. Network Governance of Global Religions, 1st Edition. New York, NY: Routledge, 2011. Print. Lussier, Rob ert N. and Achua, Christopher F. Leadership: Theory, Application, Skill Development, 4th Edition. Mason, OH: Cengage Learning, 2010. Print. McDonald, Bryan L. Food Security, 1st Edition. Malden, MA: Polity Press, 2010. Print. Papageorgiou, Chris and Jaumotte, Florence. Rising Income Inequality: Technology, Or Trade and Financial Globalization? 1st Edition. New York NY: International Monetary Fund, 2008. Print. Prechel, Harland. Politics and Globalization, 1st Edition. San Diego, CA: JAI Press, 2007. Print. Steger, Manfred. Globalization. 1st Edition. New York, NY: Sterling Publishing Company, 2010. Print. Thompson, William R. and Reuveny, Rafael. Limits to Globalization: North-South Divergence, Volume 21. New York, NY: RoutledgeTaylor Francis, 2010. Print.