Nicomachean Ethics Essay

Ancient Greek philosopher Aristotle wrote the Nicomachean Ethics, portraying the significance of studying the realms of ethics and political science. In his work, Aristotle focuses on the theme of how human beings can attain the chief human good—happiness—at which everything aims. Aristotle argues that ethics, the study of moral character, and political science, the branch of knowledge and analysis of political activity and behavior, must be closely studied together in order to fully grasp the meaning of and obtain the good way of life. Aristotle believes that there is only one goal, one ultimate end for every individual—that is eudaimonia, translated as happiness, not as a feeling but happiness as the highest human good or a life full of activity. He claims that a person should live a way of life distinct from the lives of animals, where they only live for the sake of living or pleasure. 1 As human beings, people should use their power of speech to communicate and make rational decisions within a polity, striving to live their lives up to their full potential and to their full capacity for a happy life. 2 The life of politics, the via activa, is thus the key to the chief good or the best life for humans; however, the life of action must be of certain type of quality, in accordance with reason, since different actions may lead to the good or the bad life. In other words, a person’s actions must be in line with arete, with virtue or excellence. 3 Possessing virtue is having the ability to realize the good things, and doing them at the right time and the right way to get things done. Virtues can result to two different ways: a good or bad life. For example, President Lincoln versus Adolph Hitler—both of these men possess the virtue of wisdom, although they have used them disparately, one ending a Civil War in peace and the other manipulating others to killing millions of innocent people. To make it to the good end, Aristotle claims that we must practice virtue by, giving it a certain type of character or ethical quality to our actions. 4 Although human cannot acquire virtue by nature alone, nature allows and gives us the capacity to acquire virtue by learning and through exercising them in our lives. 5 By constantly acting with virtue, we cultivate habituation and ultimately we do not need to be self-controlled to do what is just. Instead, we become accustomed to do what is right willingly and naturally. Activities of good ethics or good moral character are virtues. And so, to best learn and exercise these virtues is by incorporating political science in connection to ethics. Aristotle asserts that the science of politics, the highest master of science combined with many other sciences, must be very well studied, for it is where moral laws are examined and its end, including the ends of other sciences associated with political science, will be the chief human good of all society. 6 Therefore, Aristotle presents the idea that the state must play an important role to aim and shape a society of good citizens, incorporating what the good life is: the life of virtue. 7 The state must look after its citizens morally, creating a type of society that will allow people to have a political life together; consequently, this political life will give them the opportunity and the ability to realize their wide range of capacities and their ideal life. Without the state, humans will not be able to experience the good life, the life of action. They are not self-sufficient enough to work alone, for they need others to be self-sufficient and happy. 8 Having a community will give every individual a chance to experience the struggle within the polity, in which he or she can exercise his or her many virtues, whether it be the ability to be courageous in the face of danger, the ability to make better judgements, or the ability to resist pain in the midst of hard criticism. Consequently, they build up their ethos or character, cultivating them to eventually living a happy life. The life of struggle, of politics, is the life where humans can have the chance to develop their full capacities, abilities, and strengths to overcome many hardships and difficulties. 9 Having a strong state does not achieve full satisfaction; hence, the state must know what eudaimonia is in order to direct and guide its citizens. It is necessary for the state to study and establish what is just and what is ethics. In this way, the state could inculcate what is moral through laws and education. Acquiring the chief good starts at home. Aristotle argues that a good state support an educational system, for a society that promotes morality is the best way of cultivating habituation in young children. 10 Having this strong educational system in the state will successfully encourage parents of each household to train their young children in good principles, abiding by the set of moral laws established in the community; as a result, they will naturally apply their good habits in their daily lives and ultimately gain the perfect virtuous life. Connecting the study of ethics and political science together can bring the whole society into a healthy life of virtue. Ethics is the key in which politics can utilize and produce a good society. By knowing what is righteous and what is ethics, the state can make the ultimate life of happiness possible for its citizens. Political science plays the role of establishing and enforcing good and moral character through an effective system that can guide and habituate every part and class of society. Ultimately, having access to a superfluous life of activity in a way that is in line with reason will let individuals life life to the fullest, of virtue and of happiness.

Federal Bureaucracy

The Federal Bureaucracy hires thousands of employees to complete specific goals. Those employed attempt to achieve these goals proficiently, however their goals and procedures are part of a continual struggle for power; which inevitably leads to ineffective behavior known as red tape (Pearson Education). Many have attempted to change the way the federal bureaucracy does business in order to help improve the services provided to the public. The federal bureaucracy falls into many categories – line agencies and staff agencies. Line agencies provide services while staff agencies gather information for the chief executive officer. Line agencies are comprised of executive departments, government agencies and corporations, independent regulatory commissions, and other central agencies and services. It is these line agencies that constrict and regulate the lives of citizens (Pearson Education). For the most part, the executive branch controls the federal bureaucracy; however Congress monitors the bureaucracy to ensure that it acts properly. Many if not all people are affected on a daily basis by the federal bureaucracy some more than others depending on what their daily life consists of. While some of these regulations are excessive the agencies were created as a way to protect lives and the environment. One area that regulates all citizens is taxes. No one can escape this. If property is owned taxes are paid each year to not only the state but also the county in which property is located. Aside from property tax there is also sales tax which people will pay even if property is owned or not. Everyone who works will pay a federal tax at the end of the year on their wages and interest earned. Each household or person will pay taxes based on their marital status, dependent, and gross yearly wage. There are those few select that will not have to pay a federal tax due to the fact that they make a salary that is below the poverty line (IRS, 2008). Aside from the IRS regulating daily living, the Federal Bureaucracy also has a hand in regulating our transportation. The Department of Transportation (DOT) was created by Congress in 1966 and signed into law by President Lyndon Johnson to ensure efficient, safe and prompt transportation for the nation. It was created to provide a convenient transportation system that meets our vital national interests and enhances the quality of life of the American people (DOT 2010). The mission of the DOT is to develop and coordinate policies that will provide a proficient and economical national transportation system while keeping the best interest of the environment a priority. However, with all these new forms of transportation came pollution something that our nation has been and is continuing to struggle with. Just as the United States needs the military to protect issues around the world, it also needs an agency to protect its natural resources at home. President Nixon proposed The Environmental Act in 1970 to fulfill the role of protecting the land, air, and water along with the health of the citizens living in it. The EPA was established not only to reverse years of neglect from industrial growth, but also as a way to ensure that the government, industry and public take better care to protect the delicate balance of nature for upcoming generations. The primary responsible of the EPA is to enforce environmental regulations such as the clean air act. This agency also has the task of helping Congress pass environmental laws and has the power to issue sanctions and levy fines. On a local level the EPA assists state government with their own environmental concerns by providing research grants and graduate fellowships, working with the public on environmental projects helping them get directly involved with the cause. Another area that has regulations on our daily lives is in healthcare. The Department of Health and Human Services (HHS) is the United States Government’s principal agency for protecting the health of all Americans. They represent a quarter of all federal expenditures, and oversee more grant dollars than all other federal agencies combined. The Department of Health and Humans services works hand in hand with state and local governments, and many HHS funded services are provided at the local level by state agencies. This department includes over 300 programs covering a wide variety of different services. Some include financial assistance, head start programs, and child and substance abuse. One service in particular the FDA or Food and Drug Administration has become a well known federal agency and effects the lives of all. The FDA assures the safety of foods and cosmetics, and the safety and effectiveness of pharmaceuticals and medical devices. These products account for almost 25 cents of every dollar in consumer spending. FDA is responsible for advancing the public health by aiding in the progress of speeding up advances that make medicines more effective and affordable. The Food and Drug Administration also has responsibility for regulating the manufacturing, marketing and distribution of tobacco products to protect the public health and to reduce tobacco use by minors. What most are not aware of is that the FDA plays a very important role in the Nations counterterrorism as well. They do this by ensuring the security of the food supply along with helping develop medical products to aide in the response to emerging public health threats. The FDA acts as a watchdog for our society to ensure the companies are complying with standards that are safe and have the patient’s best interest at heart. Without the FDA regulating society doctors would be able to hand out drugs and write prescriptions without knowing what reactions and side effects could happen to the patient. While this is only five federal agencies that affect the lives of many on a daily basis, it is hard to pick one out since each one is very important. The one of most importance would seem to be the Environmental Protection Agency. The main objective of the EPA was to streamline several other programs as a pollution control. The Clean Air Act, Clean Water and Toxic Substance control were all established to control pollution. Currently the EPA is working with the National Highway Traffic Safety Administration (NHTSA) to get regulations on Greenhouse Gas emissions. They are taking appropriate steps to enable the production of a new generation of clean vehicles on light duty vehicles. These steps were presented by President Obama in May 2010. Finally on September 30, 2010 The EPA and NHTSA issued a notice of intent to begin developing new standards for greenhouse gases and fuel economy for light-duty vehicles for the 2017-2025 model years (EPA, 2010). This goes to show that while 2017 seems like a long time the EPA is taking the initiative to make a difference and continue to find ways to help the environment and public health.

School Decision-Making Common Core Paper

Preparing students to be college bound as well as become model citizens are some of the goals Sunshine elementary has for its students. In an effort to achieve these goals there are times in which changes are necessary. Sunshine has decided to implement Common Core Standards beginning the new school year. To discuss the implementation, there is a mandatory staff meeting on Wednesday, December 4, 2013 at 3:30pm in the multi-purpose room. The agenda is as shown: AgendaGrade level reports Grade level chairperson Pre-K – 5th Feedback10 – 15 minutes from staff Introduction of new standardsVelma Johnson – Administration Break-out groups (grade levels) to discuss new standards (10-15 minutes) Shared discussions with staff from break-outs (20 minutes) Problem/ResolutionVelma Johnson – AdministrationDismissalThe implementation of the Common Core Standards will bring expected negative feedback from seasoned teachers; however new teachers are expected to welcome the initiative with open arms. It is this understanding that led to the creation of a team of teachers who will represent both seasoned and new teachers to work together to come to an agreement on how the new initiative can and will prove to be beneficial to everyone: students and teachers. To maintain a positive balance with the teachers as well as a positive environment on the campus, the members selected for this team will be chosen by their colleagues through a silent vote which will be conducted on December 6, 2013. The team will meet at least twice weekly and provide feedback on the progress via email to Ms. Velma Johnson.The objective for the team is to meet with their grade level teaching  partners to bring their concerns to the meetings. Ultimately, these members will review and discuss which concerns are valid and relate to the new initiative. Personal feelings are set aside to achieve whatever is necessary to meet the needs of the students. As educators, one must remember t he focus is on what will work best for the students’ success. There are times when stepping out of one’s comfort zone (the norm) is necessary. At the end of the three week review process, the team is expected to bring to Ms. Velma Johnson a suggested resolution of implementing the new initiative which will be a collaboration of seasoned and new teachers working to achieve a common goal.No one is asking anyone to set aside their beliefs, but it should be clear there are always expected changes in the field of education. The teachers who are there to meet the needs of the students would not have any problems with the implementation of the new initiative. The teachers should understand the focus is on the students becoming more of critical thinkers to be able to gather information, evaluate what was gathered, and to comprehend what is being conducted. The goal is for the students to become purposeful readers and listeners as well as build their content knowledge. The stud ents of Sunshine must receive the support and guidance of all their teachers to be successful. Once the resolution is accepted and approved by Ms. Velma Johnson, there will be a staff meeting to present the final plans.Each staff member will receive a copy of the new initiative which will also reflect expectations. After meeting with the staff, the administrative team will scheduled a meeting with Parent Teacher Organization (PTO) to share the school’s new initiative in guiding the students toward education and personal success. In addition, prior to school being released for the summer break, the new standards will be shared with students and their parents through the school’s monthly newsletter. The parents will be directed to contact the PTO if there are any additional questions. The PTO will forward whatever information necessary to the administration to respond to.ConclusionIn conclusion, while it is necessary to implement the Common Core Standards to better meet the needs of guiding the students toward the goal of becoming at least a high school graduate. The new standards are in keeping with the change in education and meeting the guidelines for No Child Left Behind.  College bound students will receive the start necessary to be successful. Seasoned and new teachers along with the students will work together in a pleasant environment which is full of learning.

Illegal immigrant Essay Example | Topics and Well Written Essays - 750 words

Illegal immigrant - Essay Example With the downfall of the United States economy, finding jobs has become a difficult and almost impossible task for many people. Many businesses are unable to afford to take on new workers, or potential employees are either under-qualified or overqualified. Illegal immigrants, on the other hand, are finding no problems whatsoever in obtaining employment, finding the few jobs that are willing to pay employees regardless of their citizenship. Since these immigrants are illegal, they are either using fake identification cards to get their job or are else being paid under the table, and therefore are not contributing to state or federal taxes. If a legal resident of this country were in that job, the money they would make would be going to taxes, which is part of being an American. These taxes also help the state of the economy. Furthermore, when these illegal immigrants take on these jobs, they are taking away job opportunities for people that legally have a right to be working in this c ountry. Numerous news broadcasts have revealed that many places are hiring illegally, despite the fact that there are many legal people in this country who need a job just as bad as the person who obtained the employment illegally. Children of illegal immigrants have also shown to put a great strain on legal Americans in the school systems because of their inability to speak the dominating language of the classroom, which is English, and this can slow down the progress of the classroom. When young illegal immigrants enter this country, they usually do not know how to speak, read, or write in English. This has caused school systems to put these children in a level of immediate priority, slowing down the progress of the rest of the class so that those children can catch up. They are unable to keep up with the rest of the class, and instead of seeking help outside of the classrooms; teachers must use class time to ensure that those non-English speaking students understand what it going on. This slows down the rest of the students, and it is all for the sake of just a couple of students. Instead of learning the language of the country that they are immigrating to, they instead make it difficult for the rest of the students to learn as they attempt to grasp what they are being taught. In a few of my classes, the lessons would have to be stopped so that the non-English speakers would be given the chance to either have the information translated for them or explained in a way, usually through a combination of English and sign language, so that they may understand what is being said. Similarly, colleges have begun to pay special attention to the citizenship status of students, though not in a way that benefits legal residents. Unable to afford schooling, which is something that many people can currently relate to, illegal immigrants are given the scholarships and grants that should rightfully be given to the students that legally reside in this country. Many American college-hopefuls have found it to be increasingly difficult to obtain the money they need to attend school because someone else is receiving it. More often than not, that someone else is illegal and should not be receiving government funds. Finally, illegal immigrants are depleting the resources and opportunities that are reserved for legal residents. Some of

Foundation for marketing Assignment Example | Topics and Well Written Essays - 2500 words

Foundation for marketing - Assignment Example To the contrary, marketing is a financial investment with the customers being the Return on investment and is also a time investment where you only spend on it after learning well about your market (Grewal & Levy, 2010). In launching of a new product there a number of things that is vital to start with. You need to learn about the products or services chain and who the competitors are. This means you need to take a good market research in the industry which will help you determine whether the idea is viable. It will also help you identify your target market, analyse it and your capabilities. While researching, you could ask direct questions from the consumers or you could take your own research from existing information. Communication is a vital part of marketing as without it customers will just be aware but will actually not buy. You should have a unique selling proposition, unique features and benefits and a marketing message with a great image. You should be daring to be different. When you stand out and do things differently to attract attention and dare to go beyond any other business in your product or service line, you will definitely launch and sell your product or service with an agility y ou never imagined. In Claudio Vignali’s article, ‘McDonald’s: â€Å"think global, act local†-the marketing mix’, the author takes us on a journey of how the McDonald’s restaurants were established and how they came to grow through market mixing. After founding the restaurant in1937, the brothers Richard and Maurice McDonald were later joined by Ray Kroc, a milk-shake salesman giving him exclusive rights in 1954. The success made it rise in worth to become one of the greatest companies in the world’s history. The key to its international success according to the author was the use of franchising. They franchised to

Discuss the theory of purchasing power parity, by considering its Essay

Discuss the theory of purchasing power parity, by considering its various forms and examining critically its assumptions and the - Essay Example The rate of exchange between two currencies can be termed as equilibrium when there is an equivalence in the purchasing powers of these countries at the domestic level (Taylor & Taylor 2004, p. 135). The theory of Purchasing Power Parity The formula for calculating purchasing power parity is as follows: S=P1/P2, where S refers to the rate used to exchange currency one with currency two, P1 is the price that good â€Å"x† costs when purchased in currency 1, and P2 is the price at which good â€Å"x† sells when purchased in currency 1. Based on the Purchasing Power Parity, there is an adjustment in the exchange rate in order to ensure that similar goods in two countries can be bought at the same price when the same currency is used to express the value of the good. There tends to be various forms that the Purchasing Power Parity takes. Some of the most common forms that this theory takes include the absolute Purchasing Power Parity and the Relative Purchasing Power Parity (Apte et. al., 2001). The concept of Absolute Purchasing Power Parity holds that the rate of currency exchange between two countries remains the same as the price level ratio in these countries. The absolute PPP borrows from the law of one price. Based on one price law, the cost of a certain product should remain constant across several countries. The similarity in price should be  in accordance to the currency value in the economies of both countries. This should take consideration of all other prices, such as trade regulations and other factors affecting market demand and supply, which should remain the same between these countries. The absolute Purchasing Power Parity also holds that there the purchasing power of the foreign and the domestic policy should remain the same. This means that there should be no variation in price when a consumer wants to exchange a foreign currency for a domestic currency, or a domestic currency for a foreign currency (Almas 2012, p. 1093). In orde r to meet the premises for the absolute Purchasing Power Parity, several conditions have to be fulfilled. One condition that must be met is free trade of the goods from each country in the international market. The other condition is that there ought to be a compromise of the price index of the price index for each of the two countries, which will be involved in the exchange of goods. Absolute PPP can result from the differences that exist in weighing, regardless of the fact that the law of one price can hold for certain goods across nations. While determining the absolute purchasing power parity, there is a tendency to examine the changes taking place in the level of the prices, which can be calculated easily (Apte et. al., 2001). Relative purchasing power parity can also be regarded as another form that the theory of PPP takes. Relative PPP focuses on the changes in the inflation rates, which may be anticipated, in relation to changes in the exchange rates between countries. The r elative purchasing power parity explores the change and variations in prices that take place between two countries. Relative PPP posits that there tends to be a change in the exchange rates in order to ensure that the variations and differentials, which inflation causes, can be compensated for and covered (Almas 2012, p. 1097). In the relative purchasing power parity, the formula that explains the relationship is as follows: S1/S0= (1 +

Philosophy of Law Essay Example | Topics and Well Written Essays - 3250 words

Philosophy of Law - Essay Example "What philosophy is, or should be, is itself a philosophical question that philosophers have understood and treated differently through the ages." (Wikipedia Philosophy p1). Philosophy can also be defined as a "doctrine: a belief (or system of beliefs) accepted as authoritative by some group or school; the rational investigation of questions about existence and knowledge and ethics; any personal belief about how to live or how to deal with a situation." (Princeton WordNet p1). The second of the above definitions lends itself to our thesis. 'Some group or school' could be analogous to the legal profession; 'doctrine' could be analogous to the law; 'personal belief about how to live' could be analogous to an individual's virtue, morality, and ethics; and 'deal with a situation' could be analogous to entering into a negotiable instrument such as a contract. This second definition mentions most of the issues that have given rise to a wide ranging concatenation of philosophical treatise and thought concerning the philosophy behind and used in the creation of a body of laws meant to guide the individual in their dealings both in rem and in persona. The philosophy of law could be said to trace its origins back before Plato and Aristotle established what contemporary society defines as virtue ethics (Wikipedia Philosophy of Law p1). ... Some of these social contracts could probably even fit today's UCC definition as "negotiable instruments" (Yovel 7). Whether these early contracts fit the Uniform Commercial Code (UCC) is not the question. The question is whether engaging in the philosophy of law is more than just a mental exercise. Hence we must first become familiar with what is currently thought of as the philosophy of law and then use some specific case examples to validate the premise that it has relevance and should not be disparaged. Wesley Newcomb Hohfeld's analysis originally published as two articles in the Yale Law Journal in 1913 and 1917 and are "...now a standard part of legal thinking" (Walker, Oxford Companion to Law 575) is a starting point that appears to provide a reference plane from which we begin our familiarization with the philosophy of law. Hohfeld believed that philosophically, there were co-dependent and inter-related fundamental legal concepts. In his two papers he enumerated eight entities called jural correlates and jural opposites. "Hohfeld maintains that legal analysis is frequently muddled and inconsistent because of an improper understanding of the fundamental legal conceptions. His stated goal is to catalogue and clarify these conceptions. He asserts that there are eight such entities: right (claim), privilege (liberty), power, and immunity along with their respective correlates of duty, no-right (no-claim), liability, and disability. In addition, each fundamental conception is a jural opposite to another: privilege (liberty), right (claim), power, and immunity are the respective jural opposites of duty, no-right (no-claim), liability, and disability" (O'Reilly p1). Can the

Branding for the UK Youth Market Research Proposal

Branding for the UK Youth Market - Research Proposal Example A degree of understanding with regard to their broad interests in relation to how they spend their money will also need to be appreciated. In particular whether there is a holistic group product awareness and market for brands like Nike or Sprite etc. Within this research framework questions relating to how the prevention of product consumerism like tobacco and alcohol work effectively or whether campaigns for drink and smoking awareness prove ineffective for most young people. This should conclude whether current marketing is acting responsibly, towards the needs of young people as well as what the real motivators and trends of the average young person are where branding is concerned. This will provide a comprehensive definition of what is meant by branding and outline the general position of the current youth market in comparison to fifty years ago. This section will provide an overview and a context for the chapters ahead. The literature review will demonstrate the types of sources that were utilised for the purposes of researching and demonstrating the findings presented within the dissertation. This will include a comprehensive analysis of all the key references that have been used to argue the points under discussion within this thesis. As a means of setting the context withi... issertation will use a variety of resources including text books, research papers, journals, relevant articles and web resources in order to support the arguments for discussion. Total length for the Literature Review should represent 25% of the dissertation As a means of setting the context within which a changing market has evolved and is still developing Bill Osgerby's innovative Youth Media. This text explores Youth culture and the media, the 'Fab Phenomenon', representations, responses and effects of the media on young people. It also focuses on lifestyle, culture and identity. The Journal of Consumer Behaviour offers a number of useful and relevant volumes that provide primary research findings, including Uncovering the links between brand choice and personal values among young British and Spanish girls by Anne Dibley and Susan Baker. Their paper presents empirical research relating to specific areas of branding, including how snack brands can satisfy particular young female values amongst 11-12 year-old British and Spanish consumers. Links between brand choice and personal values amongst the young are analysed and proved legitimate; particularly in relation to associations with fun, excitement and friendship. The Art of Digital Branding By Ian Cocoran, is a very up to date text discussing the art of digital branding for the benefit of contemporary audiences. It looks at how different colour schemes, site maps and menu formats can work effectively at engaging with different people to satisfy different needs and comments on the challenges of the changing morals of youth. Similarly Matt Haig looks at the phenomena of modern methods of marketing to the young in Mobile Marketing: The Message Revolution Which essentially discusses the powerful and direct method

ESSAY-Seven leadership traits Essay Example | Topics and Well Written Essays - 500 words

-Seven leadership traits - Essay Example courage of initiative and action which entails making first attempts, pursuing pioneering efforts and stepping up for the task no matter the situation. The second one is the courage of confidence in others. This often involves not controlling situations or outcomes, having faith in other people and being open to change. The third type is the courage of voice and is marked by raising difficult issues which need to be addressed and providing the feedback needed at a particular time. Courage will help me attain major goals in my life because I will face it no with no fear or intimidation. As a leader I am able to communicate my vision to the other people. This involves painting a picture with the words such as speak it, write it, draw it and touch it. Communicating my vision openly with my close associates helps me correct some of the many mistakes I would have done if I did not talk to anybody about it. In this sense I try re-evaluating my vision from time to time so that it stays connected with the changing times. The vision is my ultimate desired goal and I always work hard towards it. Passion for my set goals has inspired me to actually take on new and dangerous challenges head on. I let my passion and vision shine through the activities I undertake daily. My passion is framed in such a way that it goes hand in hand with my vision so that I can be able to reach my set goals at the end of the day. If I am passionate of my undertakings, it means I love what I am doing and there is no day I will be bored. I always know of the next action to take while performing my duties. While I have a goal to meet, I have a plan so that I can manage time properly. I will usually do activities at the allocated time and avoid giving excuses or blaming other people about my failures. I know this will help me a long way after college because I need to be punctual on assignments given to me at my working place and other personal activities. The impact is the overall outcome of my

Family Business in India Coursework Example | Topics and Well Written Essays - 9250 words

Family Business in India - Coursework Example India being a country with people who has rich shared values and communication within the family, will ever like to allow such family feuds. This is the prime area of the current research to identify the attitude and circumstances with family firms after the reported major family feuds. Hence the study has considered a case analysis as well as quantitative analysis to identify the factors aided for such feuds as well to observe the trend in the remaining family firms. The study was conducted with the family firms who are in first, second and third generation of transition. Very few cases include successors after 4th and 5th generation also. The study found a remarkable preparedness among the family firms with high professionalism and education. More than half percentage of the studied family firms is executing the succession plan, by training and communicating the succession plan with the successors. Though a minor part of the study group exhibited conflict and sibling rivalry, still they feel the need for a smooth succession plan. The remaining considerable amount of study group is in the stage of preparation of succession plans. The study found that education and communication are directly influencing the preparedness of the successors. With this knowledge, the r esearch found out that Indian firms are acknowledging the need for succession planning and are developing preparedness for succession management. Introduction: Most of the Indian Economy is amassed from the Family businesses. It is estimated that 95 per cent of the registered firms are family businesses. The success of these Family firms has attained from the rich family culture and values nourished through out generations.Family business is a dominant organization form worldwide. According to Steven family is not only a viable factor of economy, but is in many ways its the exemplary form of business. He writes: "The family business is being rediscovered as the embodiment of management practices and business values needed to help the nation's industries regain their competitive edge" (I991).1 Though there are many papers observed the scenario in the past, the current trend is to be observed with variable factors involved in causing the trend. Most family businesses, though relatively small in scale, involve highly complex interrelationships between two analytically separate but inextricably linked social systems: the family and the business. (Lansberg, 1983)2. In the recent times, the globalization factor made it to many Family businesses to attract many Foreign Investments. And the recent Industrial scenario in India presents some cases where the Family

Sustainable Energy and Power Systems Coursework

Sustainable Energy and Power Systems - Coursework Example The advantage of Gauss’s law over Coulomb’s law lies in the facts that, in a faraday cage, the electric field inside get demonstrated. The law makes use of Ampere’s law dealing with magnetism. On the other hand, Coulomb’s law requires not only Gauss’s law in its derivation but also makes use of other Maxwell’s law (Fleisch 3). 3. Given that relative permittivity =3, and radius r3=2 cm. And permittivity of vacuum=8.85 pF/m, the potential difference between the surface of the conductive cylinder and the outer surface of the dielectric cylinder can be determined as follows  ; This refers to an electrical device designed to transmit power through the barriers of electrical apparatus. This apparatus may include transformers and circuit breakers. Also, be defined as an insulator, which refers to a barrier preventing conduction of electricity from one device to the other. Any bushing designed must be able to withstand high voltage generated by the electric power. In addition to this quality, the bushing must also be capable of withstanding mechanical forces and seal the conducting parts of a conductor well. As the current flows through a conductor, high electrical stresses act on the conductor and these can lead to breakdown in the electrical insulation (Fleisch 16). There exist different shapes of bushings with varying sizes and designed in different techniques. Two of the types include solid bushings and capacitance graded. The solid bushing consists of a cylinder made of an insulating material, for example, porcelain or rubber. At the centre, a ground barrier covering the conductor with a high voltage exists and its attachment done to the ground. The figure below shows the arrangement of the bushing explained above. The cylinders, which conduct the electric current, spread out the change in voltage evenly. The distribution of voltage in the conductor varies depending with the material. The graded capacitive voltage in bushings,

Scm Test Questions Essay Example for Free

Scm Test Questions Essay

Sources Of Stress Among Teachers Psychology Essay

Sources Of Stress Among Teachers Psychology Essay Stress is a psycho-physiological process which arises out from the intercommunication of the individual with the environment (Muhammad et al, 2010) and (luthans, 1998) which ends up in disturbances and manifestations depending on the individual characteristics such as health status or psychological process such as attitude (Muhammad et al, 2010).As reported by Ingrid (1997) adapted from Hans Selye (1982), few people would be able to give the definition of stress or even attempt to give a clear cut definition due to the huge number of causes which can contribute to stress. Stress can be defined as a charismatic situation in which a person is affront with an event, constraint or appeal related to what he desires and for which the result is perceived to be both ambiguous and vital (De Cenzo, 1998) whereas Hans selye simply said that stress is the expansive response of the body to any appeal made upon it. It is to be noted that stress can be classified into eutress and distress whereby e ustress is a positive psychological response to a stressor and distress is the negative response (Geraldine, 2011). An example of eustress is an opportunity or a challenge which will lead to a promotion and for distress if any tension, worry or frustration. This study will be focusing mainly on distress. Stress is experienced by nearly all people in their life; however occupational stress is more present in the daily life of worker. As stated by Smith (2000) occupational stress is widespread and can be a major cause of ill health. 2.2 OCCUPATIONAL STRESS Jobs have always been a little stressful however over the last few years the workplace has become increasingly stressful. As per the report of National Institute for Occupational Safety and Health 75% of workers believe that todays workers experience more work stress than the prior generation. In 1992, the United Nations in its report even qualified job stress as the 20th century disease (Bob, Rollin, and Bruce, 1997). The World Health Organization (WHO) has characterise job-related stress in countries that are developing as a modern hazard in a traditional working environment and it is not to be forgotten that Mauritius as well is a developing country. Due to the important metamorphosis in company organization, change in nature of work, and technological advances, stress affect employees of all hierarchical level. Work-related stress can be said to be experienced when the appeals from the work environment exceed the employees ability to cope with (or control) them. It is not a disease, but it can lead to problem of ill health in areas like mental and physical health. Occupational stress is a sign of a problem within the organization, not individual weakness (European Agency 2000a, 2002a). It is to be noted that in this study, the term work related stress and the term occupational stress has been used interchangeably however they are distinguished from each other(Health and safety executive,2006) work related stress includes cases where work may have aggravated the stress experienced hence work may be a contributory factor but not necessarily the sole cause whereby the term occupational stress refers to cases where work is the sole cause of the stress experienced and associated symptoms of ill health. The Health and safety executive defined work related stress as the unfavorable reaction people have to increasing pressures or any types of request on them at work. Those reactions, people have to cope with a great number of demands, trying to cope with their duties and responsibilities concerned about their job and they have difficulty in doing so. On an individual level, it is often the fact of not being able to cope with the work load and environment with an associated negative manifestation. In comparison with other professions, teaching is considered as a high stress occupation. (Lambros, 2006) and (Mc and Von, 2005). 2.3 MODELS OF OCCUPATIONAL STRESS A stress model helps to better understand the various stages, and therefore can help people to better cope with the stress. The main model of stress is discussed below: 2.3.1 HANS SELYE MODEL OF STRESS Selye (1977) developed the general adaptation syndrome model .The general adaptation syndrome can be defined as the sum of whole expansive, systemic reactions, of the body which arise due to continuous and prolonged exposure to stress. When a person emits symptoms of not being in good health, it may surely be due to the fact that he is stressed. He identified that stress gather up in the body and if the relevant stressor is not removed, the person body will go through predictable phases as shown in Figure 1. Hans selye talked of three phases: ALARM STAGE This is the stage whereby the body recognize that there is a danger and prepare to deal or not to deal with the threat which is also known as the stressor, this situation is often called the fight or flight response. The stress hormone, adrenaline, is secreted and give the person the energy to fight or flight the stressor. RESISTANCE STAGE In this stage the body tries to return to a situation of psychological tranquility by resisting the alarm due to the fact that the threat still exists. The body remains activated however on a lesser extent than in the alarm stage but sufficient to cause an increase in the metabolic rate and consequently it may enter the third and final stage EXHAUSTION STAGE Exhaustion takes place when one or more target organs shows sign on dysfunction, this happens when the body can no longer meet up with the demand places upon it and start to dysfunction. This is the state whereby a disease is diagnosed which shows that a disease is the consequence of the related stressor. This can result in having serious consequences even death of the organ or the organism as a whole. http://210.9.134.6/zinecmt/templ/aipc/ezineimages/stress.gif Diagram 1: graphical evolution of the three stages of general adaptation syndrome. (Source: Carlson et al,(eds) (2007). Psychology: The Science of Behaviour (6th Ed). Boston, USA: Allyn and Bacon-Pearson) The above theory has been a basis for later research work to be carried out, however there are some issues with it, as it has been carried out on rats, and to extend it to humans may not be that clever, considering the emotional content of the stress perceived which may alter the way a human will react to the stress. Also as the name of the theory state, selye claimed it to be general irrespective of any nature of stress, however different type of stressors may act differently and hence different responses may be observed. 2.3.2 THE PERSON- ENVIRONMENT FIT MODEL The person-environment fit model is one of the well known among others, whereby it lays emphasis on the interaction between the peculiarity of the individual and that of the situation. One important aspect of this interaction is that occupational stress is the extent to which the individual will fit to his working environment, in other words, according to the person-environment fit model , the extent to which the person will face occupational stress depend on how much can he fit the workplace and the demands of the work thereof. Other factors can be motivation, ability and productivity. Â  If the person-environment fit turn out to be wrong, it can cause serious problems in any work environment. Occupational Stress and lack of productivity are natural conflicts related to the fact of a failure between a person fit into their workplace environment. This model can be highly related to occupational stress as it is important for the person to feel his importance in the work place and to fit the working environment so that later on, the problem of occupational stress dont arise, this was confirmed by Edwards and Ship (2007) whereby the study he did confirmed that the misfit between the person and the environment can lead to people having stress. As well as not being able to meet up the demands, the person-environment fit can also failed due to different motives of the individual and the work respectively which will surely lead to occupational stress. Person-environment fit theory argues that stress effects may arise when threatening job demands lead to disequilibrium in the interaction between an individual and the work environment. Although influential, the model is considered to have some drawbacks .There remains confusion over the notion of fit and its measurement (Edwards Cooper, 1990) and also difficulty to conceptualise the notion of fit (Julian and john, 2010) 2.3.3 THE KARASEK DEMANDS- CONTROL MODEL The demand-control model was developed by Karasek in 1979 and it focuses on the job demands and control at a work place situation whereby the employee is faced with a heavy work load/demand and at the same time , is given little control over the work. Hence any job which has a very high demand and very little or simply no control is given to the employee will end up in the employee facing stress, as confirmed by Doi.Y (2005), this is also known as the strain hypothesis. Demands can be in terms of various work activities, such as a close deadline to submit a particular work, too much responsibilities to handle, conflicting roles at work, not having the right to share views in decision making among others and control can also be in terms of the decision making of the employee and the way how he want to carry his job, this model divide the employees in four categories. The first category is the one who have high control over the high demands are known as active employees, second category, those who have high control but low demand, as low strain category of employees. Third category, those with low demands and low control are known as the passive category and finally the one with low control and high demands, as the high strain category (D Overgaard et al, 2004). The most common criticism is that the demand -Control model is too simple. Peter, Arnold B., Ad de (2001) and Johnson (1989) has argued that job control is not the only resource available to coping with job demands and proposed that social support from colleagues or superiors may also function as a mediator of the relationship between job demands and Stress reactions which agrees with the study done by Cristina et al (2012) who said that this model does not apply equally to all individuals and various factors, such as personality can act as a moderator or a buffer. 2.4 TEACHERS STRESS In the field of education, it is not easy to define teachers stress; however Kyriacou (2001) defined the latter as the involvement by a teacher of abhorrent, negative emotions, such as anger, Anxiety, tension, frustration or depression, resulting from some aspect of their work as a teacher. Since the late 1970s, many research work has been done to analyse teacher stress. The wealth of research published over the last years shown that there is a big problem concerning teachers and they do face stress. Compared to other professions, teaching is considered to be high stress occupations (Mc Shane and von Glinow, 2005), which therefore results to higher stress level among teachers consequently leading to poor performance, staff health problems and higher job dissatisfaction (Williams and Gersh, 2004).Occupational stress did had a negative effect on the job performance of the teachers in a secondary school which in turn may result in poor teaching to the students (Mohammad Aklaq et al, 201 0). A survey carried out by Karl Peltzer et all (2008) proved that teachers do have a high level of stress as well as job stress were associated with most stress- relating illnesses such as hypertension, mental distress, tobacco and alcohol abuse which agrees with the study of Wang pei and Zhang Guoli (2008) who deducted from their study that the negative effect of occupational stress on teachers health are significant. Teachers stress can have various consequences therefore it is important to manage it and one way of managing it , is by knowing the sources which stress the teachers most and deal with it directly. 2.5 MANIFESTATIONS OF STRESS AMONG TEACHERS Sign and symptoms of stress among teachers can be seen as manifestations when they face a threshold of stress that they cannot control or deal with. It can differ individually as some may be more prone to certain symptoms than others. Sign and symptoms of stress or those manifestations need to be identified as soon as possible so that it doesnt end up in serious consequences or even fatalities. These can be categorized into three main areas: first of all, the mental symptoms, for example depression and anxiety, secondly, the physical symptoms such as indigestion, palpitations and stomach cramps, and finally the behavioural symptoms which may be in terms of alcohol abuse, using prescription drugs etc. Despite being exposed to same level of stress, secondary school teachers may react differently and have different symptoms to that stressor, some teachers may exhibit depression whereas others may have back ache (leung et al, 2009).Mental symptoms/emotional symptoms tend to be most prese nt and among the first reaction to stress from the teachers. A study carried out in the George region in south Africa showed that teachers stress manifest itself mainly on a mental or emotional level as well as but to a much lesser extent in terms of physical level (M.A.J Olivier, D.J.L and Venter, 2003).In the study carried out by Kyriacou.C and J. Sutcliffe (2011) they found that, the most frequent symptoms of stress reported were tiredness and feeling frustrated 2.6 SOURCES OF STRESS AMONG TEACHERS The sources or causes of stress are also known as stressors. Stressors vary in severity and duration, some situations maybe stressful for everyone but in other situations, individuals may react differently. What is a stressor for a particular individual may not be a stressor for the other one. For some teachers, not being able to cope with the classroom indiscipline maybe a source of stress whereas for others, this may be easily tacked with and not a source of stress hence despite every one of them are teachers; sources of stress may vary from people to people, from organization to organization as well as from situation to situation. Factors such as the mental state of the individual, degree of stress coping, experience of teaching and other demographic variables may play a vital role in deciding if a specific problem can be a cause of stress or not. The research conducted by Brown Ralph (1992) concluded the following most Prevailing work-related factors leading to stress among teac hers, which gave us a better Idea and knowledge on teachers stress: Students-An absence of discipline or disruptive students, students motivation and their respective attitude towards the class and their teachers, the size of the class and their ability to cope and preparing the students for examination purposes. Stressors such as disruptive students may endanger the mental health of the teachers as confirmed by (Nurrul Izzah Abdul Samad et al , 2010) and the national union of teachers in UK(2009) Changes- A lack of information and the necessary resources to smoothen or make changes easier as well as more changes than the demand by the teachers which end up in stress among the teachers. This agrees with the study of kyriacou.(2001) whereby change itself is implicated in teachers stress and could be a problem thereof The management of the school -There is poor cooperation in terms of decision making process and no required training is given to meet the job new demands which keep increasing day by day, an example can be new and latest technological demands, the latter may as well be a potential source of stress for teachers (Olivier and Venter, 2003). Interpersonal relationships- poor social interactions among colleagues and lack of team spirit which may result in interpersonal conflicts. Reviews studies have identified interpersonal conflicts as a major source of teachers stress.( lambros lazuras , 2006) Parents and the community-parents pressure on the teachers to make their children achieve good results and accommodate unrealistic expectations. A study done by G.M steyn and G.D.Kamper (2006) shown that Parents pressure do cause educators to experience stress and the community poses a serious hindrance to learning. Another modern problem nowadays is a particular type of role ambiguity as often the teachers have to nurture, counsel or be mother and father of certain students due to family shift work factors or simply divorce factors.(Nhundu,T,J, 1999) which was confirmed by Joachim Stoeber and Dirk Rennert( 2008). In short, the most common sources of stress for teachers mentioned above are poorly motivated pupils, ill discipline, organizational culture, poor working conditions and poor collegiality. Jarvis (2002) in his critical review of more recent findings on teacher stress focus on three ample causative factors for this: (1) Factors intrinsic to teaching, (e.g., working condition, work under load/overload, repetition and boredom) (2) Cognitive factors which affect the teachers (e.g., time pressures, role conflict and role ambiguity), and (3) Systemic factors operating at the institutional and managerial level (e.g., appraisal system, Non-managerial support, reward system) Holmes (2005) stated that several scholars researching on teachers stress and stress management have categorized some situations that caused stress as follows: (1) Stress resulting from anticipation: fear of whats to come, worry and anxiety. (2) Stress as a response to a current situation: its happening now, and you have to react. (3) Stress from the past: it happened a while ago, but is still lingering in your mind and seemingly impossible to let go. (4) Chronic stress: its an on-going situation, or reaction to a specific event, the impact of which is lingering. Career development can also be a major source of stress (G.M steyn and G.D. kamper, 2006),which agrees with the study done by Ahlam b el shikieri and Hassan A. musa (2012)These can be classified into three main categories namely, job security, performance appraisal and professional training whereby the threat of losing one job is a potential source of stress (M.A.J Olivier and Venter, 2003).Any possibility of demotion may also lead to stress( Rout and Rout,2002).the performance appraisal system can also be a major source of stress for the individual especially if the outcome may influence any promotion or the latter salary.( Rout and Rout, 2002).Required training programme is needed to meet new demands and challenges of the education sector. 2.7 FIMIAN TEACHER STRESS INVENTORY In the present study, we have followed the Fimians teachers stress inventory with minor adaptations to suit the local context in Mauritius. This model explains the teacher stress in a ten factor theory, whereby five consist of sources of occupational stress and the other five about manifestations of stress. According to fimian, when those stressors are present, teachers do have stress and it becomes evident in terms of psychological, behavioural and other type of symptoms. It should thus be possible to identify one array of events that acts as sources of stress and other array of stress that acts as manifestations of stress. Teachers stress is related more to environmental events and the perception of these events, than it is to personal or professional variables such as teacher age, gender, age, education level and number of years of teaching. The factors described in the inventory are time management, work related stressors, professional distress, discipline and motivation, profess ional investment, emotional manifestations, fatigue manifestations, cardiovascular manifestations, gastronomical manifestations and behavioural manifestations. A study carried out by M.A.J Olivier(2003) using the fimian teachers stress inventory concluded that teachers stress manifest itself mainly on an emotional level as well as on a physical level and the most significant source of stress among them was professional investment however the results cannot be generalized as the limited scope of the investigation. In 2009, the study carried out by Victoria sanderlin hand in New Orleans, among novice secondary school teachers, using the fimian teacher stress inventory found that time management, along with discipline and motivation, were the two highest sources of stress for novice teachers moreover Fatigue manifestation and emotional manifestation were the most apparent manifestations of stress, novice secondary teachers may not have those experience to tackle with stress and it may have been different sources or manifestations if they were not novice. Another study carried out by Rubina hanif, Sadaf tariq and Masood nadeem (2011) using the same inventory concluded that teachers shows highest level of stress at work related stressors and fatigue manifestations was the most common one, however this study was carried out in Islamabad, the capital of Pakistan, and the teachers of Islamabad may not be facing same problem as small town or cities teachers are facing, hence the sample is not well represented. 2.8 SUMMARY OF LITTERATURE REVIEW

Relationship Between Developed and Emerging Stock Markets

Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi Relationship Between Developed and Emerging Stock Markets Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi