Ict Impact on Accounting Essay

Introduction  The purpose of this commentary is to explore how information and communication technologies (ICT) have forever changed many aspects of business and accounting practice and, as a result, offer new and exciting research opportunities to accounting professionals and academics. In today’s computerized, interconnected, global business environment, the accounting profession must deal with a host of complex issues that never existed in the past—for instance, how to capture and record new business transactions and events, develop value-added business and information processes, create new value-chain and supply-chain opportunities, disseminate useful knowledge to a wide array of information consumers, and provide assurance services across the entire spectrum of economic activities reflect some of the more compeUing topics of interest. Accounting researchers can add value to the profession by investigating these issues, among others, and presenting scientific results in a clear and understandable fashion to practicing accountants. An important message of this commentary is that researchers in accounting information systems (AIS) and other areas of accounting, such as financial, auditing, tax, and managerial, should work together on projects, as each party can learn a great deal from the other. Synergistic relationships arising from such teamwork hold great potential to yield high-quality research results that can have notable impact on the accounting profession. THE NEW BUSINESS AND ACCOUNTING LANDSCAPE Over the past centuries, business practices and accounting procedures developed and matured a great deal, yet at a relatively predictable, slow, and controlled rate. We stand squarely, proudly, and respectfully on the broad shoulders of those who came before us, as their guidance, wisdom, and insight masterfully steered us to this place and time in the profession. However, in the apparent twinkling of an eye, ICT has disrupted our peaceful existence by radically transforming the manner in which ^^ Accounting Horizons/March 2002 business is conducted across the world and alerting us to the many challenges that lay ahead. How Technology Affects Business Practice There is little doubt that ICT has contributed immensely to the magnitude, speed, and acceleration of change in business practice over the past three decades. Rapid changes in the business world place immense pressure on business executives to stay ahead of the competition hy leveraging ICT to dramatically and continually redesign business processes and models. Using ICT to Create a Digitally Integrated Entity Figure 1 depicts an ICT infrastructure that envelopes and permeates the inputprocess-output value chain of a business entity. Encapsulated by this ICT infrastructure, digitally integrated business entities capture economic events as they unfold, process information with instantaneous speed and ubiquitous availability, and disseminate valuable decision-making information and knowledge throughout the organization. The blending of ICT and business process integration manifests itself in enterprise resource planning (ERP) systems, which serve as the foundation for linking multiple, related business entities into integrated supply chains. Using ICT to Integrate the Conventional Supply Chain When related entities link their internally integrated information systems to one another, the value ofthe interconnected network potentially becomes greater than the sum ofthe participating firms* isolated systems. The supply chain illustrated in Figure 2 depicts how a digitally integrated business environment might look, assuming that conventional relationships among upstream and downstream partners remain intact. Suppliers can monitor upcoming production schedules of manufacturers to ensure that the proper amount and mix of raw materials arrive on time where needed. Upon receipt of raw materials, the manufacturer could send electronic payment to the suppliers. Conversely, the manufacturer might look upstream to ensure that primary and secondary suppliers have sufficient capacity to meet its upcoming production demands. Looking  downstream, a manufacturer can monitor inventory balances and movement patterns ofits product hnes to ensure that distributors have sufficient quantities of products on-hand. When new patterns emerge, for instance the activity rate for product A increases significantly for distributor X but decreases for distributor Y, the manufacturer can adjust its production and shipping schedules accordingly. Looking further downstream, distributors can monitor shelf patterns at retail locations, thereby making sure that product stock-outs do not occur. Finally, retailers can monitor changing consumption patterns of customers and adjust product mix and shelf locations correspondingly. Using ICT to Create New Business Models When ICT first arrived on the business scene, managers initially automated existing processes, rather than envisioning how ICT could be used to conduct business in new and innovative ways. Eventually business managers hegan to understand the potential of ICT to support radical changes in internal business practices; hence, they viewed the development and implementation of ERP systems as value-added endeavors for their business organizations. To some extent, business entities are experiencing a similar evolutionary adaptation to ICT in the realm of integrated supply chains. That is, the previous example reflects how business managers are using ICT to automate existing Blending Information and Communication Technology ujitk Accounting Research 67 FIGURE 1 The Digitally Integrated Business Entity Qualitative & Business & information & Quantitative Information Knowledge / Inputs Processes Low Value High Value Value-Chain FIGURE 2 The Digitally Integrated Conventional Supply Chain Suppliers Manufacturers Distributors Retailers Customers supply-chain models. However, ICT further allows new supply-chain and business models to emerge. For example, the hybrid supply chain shown in Figure 3 depicts a scenario where manufacturers deal directly with retailers, thereby bypassing the entire distributor network. For instance, assxime that a manufacturer receives real-time inputsfromretailers, via shelf sensors and cash registers, regarding the shelf location of each product, the rate at which the product is being purchased, the types of discount coupons being redeemed, and the number of units remaining on store shelves. Leveraging on such intelligence 58 Accounting Horizons/March 2002 FIGURE 3 The Digitally Integrated Hybrid Supply Chain Suppliers Manufacturers Distributors Retailers Customers gathering, the manufacturer could monitor stocks and flows at retail stores, and continuously fine-tune its production and shipping schedules. Additionally, manufacturers and retailers could enter into agreements where manufacturers assume stocking responsibihty and retain legal title until the products are sold. A scenario of this nature, often referred to as â€Å"vendor managed inventories,† gives manufacturers greater control over their  products, while reheving financial and human resource burdens heretofore imposed on retailers. Taken one step further, manufacturers might begin to wonder why they use retailers at all, since they can create virtual storefronts on the Web, thus dealing directly with customers and allowing for creation of the virtual supply chains illustrated in Figure 4. Such economic arrangements, legitimatised under terms and conditions specified in â€Å"collaboration partner agreements,† are very efficient, as they reduce the number of layers from suppliers and customers, thereby dramatically increasing the firm’s response time and adaptability. Last, but certainly not least, ICT offers new and exciting business models previously not possible, such as virtual enterprises depicted in Figure 5. Using this type of ecommerce configuration, a virtual enterprise can establish complex interdependencies with suppliers, manufacturers, and customers, thus offering a wide array of goods and services to consumers. The virtual enterprise is organic in nature because the structures, relationships, rules, procedures, and houndaries of business relationships can adapt to ever-changing environmental conditions. ACCOUNTING AND INFORMATION SYSTEMS—SIMILARITIES AND DIFFERENCES The emergence of ICT over the past few decades led to a new business and academic discipline—information systems (IS). Given that the vast majority of business event processing in organizations deals with accounting transactions, it is no surprise that the disciplines of accounting and IS share a high degree of commonality; yet key differences exist between the two disciplines as well. Blending Information and Communication Technology with Accounting Research 59 FIGURE 4 The Digitally Integrated Virtual Supply Chain Suppliers Manufacturers Distributors Retailers Customers FIGURES The Digitally Integrated Virtual Enterprise Similarities between Accounting and Information Systems The input-process-output value chain of a business entity sbown in Figure 1 reflects one area of convergence between the accounting and IS disciplines. For instance, both disciplines examine ways to maximize tbe efficiency and effectiveness of recording economic data, wbere issues sucb as editing and validating input data are of paramount concern. Additionally, botb disciplines investigate various approacbes to automating the immediate capture of economic events at their source as they occur via ^^ Accounting Horizons /March 2002 computer-to-computer interactions, point-of-sale applications, self-service features, and so on. Regarding tbe processing of economic events, botb disciplines seek to integrate ICT into business processes and ensure the security of corporate databases. Tbe accounting and IS disciplines also endeavor to disseminate reliable and timely information to decision makers, and advance understanding witb respect to managing business knowledge tbrougbout tbe organization, Tbe accounting and IS disciplines also seek ways to improve modeling techniques aimed at conveying semantic representations of intra- and inter-enterprise systems. Scbolars wbo engage in intellectual pursuits of this nature categorize tbeir researcb as design science. Such researcb is vitally important to tbe creation of sound â€Å"architectural drawings† and â€Å"engineering plans† for building reliable systems. Tbe accounting and IS disciplines furtber investigate issues tbat fall into the realm of social science. For insttmce, at tbe individual level, researcbers explore various ways to involve users in systems  development and implementation projects, improve decision making via decision-support and group-support systems, and create system interfaces designed to enbance tbe efficiency and effectiveness of human-to-computer interactions. At the organizational level, the ultimate goal is to create information systems tbat best leverage firm resources to maximize profitability and competitiveness, Witb this objective in mind, researchers strive to use ICT in ways tbat support business process (re)design efforts, improve intelligence gatbering, sucb as data warebouses, data marts, and knowledge bases, and produce tbe new business models reflected in Figures 2 througb 5. Differences between Accounting and Information Systems Accounting can be viewed as a specialized information system aimed at recognizing, measuring, recording, processing, and reporting economic events affecting business entities. A noticeable divergence between tbe accounting and IS disciplines centers on the economic implications of business events. Tbe accounting discipline expends a great deal of effort deciding wbicb economic events must be recognized and how they sbould be measured. Economic concerns of tbis nature are not addressed in tbe IS literature, as event and measurement rules are taken as given. Once these important issues are resolved and codified, qualified economic events must be recorded, processed* and reported. As mentioned earlier, botb disciplines investigate similar intra-enterprise issues; however, tbe IS discipline is most concerned witb technical aspects of incorporating ICT into organizations, whereas tbe accounting discipline is most interested in leveraging ICT to improve business performance wbile simultaneously maintaining effective internal controls. With respect to system design matters, accountants help to insure that sound internal controls are developed and integrated into information systems, such as (1) editing and validating input data, (2) tracking the integrity of information tbrougbout processing, storage, and retrieval activities, (3) maintaining reliable audit trails, and (4) securing operating systems, networks, software applications, and databases so tbat only properly autborized individuals bave access to financial information. To the extent tbat internal controls of this nature cannot be incorporated into tbe system, accountants must design compensating controls around the system. Regarding business process (re)design efforts, IS researcbers again tend to focus on tecbnical matters, sucb as how to build  systems tbat are adaptable to various business process models. In contrast, tbe accounting discipline focuses on developing innovative Blending Information and Communication Technology with Accounting Research 61 ways to (re)design business and information processes to improve the reliability, relevance, and timeliness of financial and nonfinancial business reporting. For example, accounting researchers might redesign business processes to incorporate a more comprehensive set offirmperformance indicators, such as balance scorecard metrics, whereas IS researchers concentrate on how to technically capture and process such input. On the output side ofthe value chain, the business vs. technical distinction between the accounting and IS disciplines emerges once again. The accounting discipline takes a â€Å"decision usefulness† approach to reporting business information. Researchers in this area expend a great deal of effort identifying the nature of financial and nonfinancial information needed by decision makers, translating critical business information into knowledge, integrating knowledge bases throughout the organization, and designing individual- and group-level decision support systems. Although the IS discipline is also involved with information dissemination, knowledge management, and decision support, IS research focuses not on content issues, but on the technical aspects of using ICT for such purposes. Business process (re)design efforts cEin extend beyond the intra-enterprise boundary to include inter-enterprise linkages, such as those represented by Figures 2 through 5. Creating and maintaining externalities of this nature beget a host of business and accounting risk issues for trading partners. For instance, because trading partners are concerned about potential business interruptions during the implementation and operation of inter-enterprise systems, contingency and backup plans must be developed and tested. Trading partners also monitor and control external transactions and agreements to ensure that all parties in the inter-enterprise network live up their trading partner arrangements, else a weak link in the chain couid have serious business and financial implications for all interdependent trading  partners. While the accounting discipline focuses on these types of implementing, monitoring, and controlling issues, the IS discipline concentrates on the technical aspects of establishing and maintaining inter-enterprise relationships. Finally, the accounting discipline provides public assurances regarding the extent to which financial statements fairly refiect the financial position ofthe enterprise and the ICT infrastructure is reliable. The information systems discipline is uninvolved with providing such assurances. These similarities and differences between the accoimting and IS disciplines form the basis for the accounting value chain, presented next. THE ACCOUNTING VALUE CHAIN The accounting value chain shown in Figure 6 adapts and extends concepts imbedded in enterprise (Porter and Millar 1985), assurance (Elliott 1994), and information (Elliott 1995) value cbains. Using the accounting value chain as a guide, this section addresses one ofthe most important questions and challenges to the accounting profession. That is, how can accountants add vEilue to business organizations in today’s computerized, interconnected, global business environment? Capturing Economic Events On the low-value end of the spectrum fall the traditioned functions of identifying, measuring, and recording accounting transactions as they pierce the boundary of the entity. Since most of these functions are routine and predictable, cleverly written computer programs can handle most of these activities. Sometimes, economic events unfold that are new or unusual to thefirmand require that a properly trained accountant intervene. 62 Accounting Horizons / March 2002 FIGURE 6 The Accounting Value Chain Implementing, Monitoring, & Controlling Externalities entifying, . Measuring & Recording Accounting Phenomena Designing. ^ Generating. Integrating \ Managing & Innovating & Integrating Business/Information / / Business Processes // Knowledge Developing, Providing & Reporting Assurance /: Low Value IT Can Perform †¢ Computerized, Interconnected, Global Business Environment High Value IT Can Assist †¢ However, on the whole, data-capturing tasks performed by accountants in the past have been supplanted by infonnation technology. Because real-time event-capturing processes are mature and reliable, accounting researchers have few opportunities in this area to add incremental value to exttint theory or practice. Processing Economic Events The next phase of the accounting value chain deals with converting data into meaningful information streams. As with input activities, computerized processing of accounting transactions is routinely automated. Reliable accounting controls are built into most infonnation-processing systems, hence the integtity of such systems is quite high. For instance, automated checks and balances, coupled with security features, can insure that data are not lost, corrupted, or altered during processing, storing, and retrieving activities. Future research in this area will not concentrate on ICT alone; rather, it will focus on how to leverage ICT to develop and integrate innovative business process models. Disseminating Business Knowledge The high-value side of the accounting value chain deals with generating, managing, and integrating business knowledge. As suggested by Elliott (2001), knowledge leveraging is the most important and distinguishing competency of professional accountants. While many information technology tools exist to assist in this regard, such as database query languages, data warehouses, and data marts, it is humans who ultimately apply reason, judgment, and interpretation to informational patterns—which in turn begets new knowledge. Accountants can play valuable roles in identifying, Blending Information and Communication Technology with Accounting Research 63 processing, and utilizing business knowledge, and disseminating such knowledge to other information consumers inside and outside ofthe organization. Developing Externalities A relatively new arena where accountants can add value to the business organizations concerns the development of external linkages to other firms in the environment. As discussed previously, business networks of this nature allow for the formation of emerging e-commerce models across value and supply chains. However, the creation of externalities evokes a host of implementing, monitoring, and controlling concerns relevant to accountants. For example, when a firm establishes digital connections with another firm, the rules of engagement must be carefully specified. That is, an exchange protocol must be agreed upon and collaborative partner agreements must detail the responsibilities, authorizations, and restrictions of each party. Once external linkages are in place, each party must monitor and control informational flows and exchanges to insure that the privacy, confidentiality, and security rights of affected parties are protected. Since the development of external digital linkages has significant internal control implications, accounting researchers face a host of new opportunities in this regard. Providing Assurance There are many new and exciting opportunities where the accounting profession could add value to managers, investors, and society through an expanded line of assurance services. The most notable, yet traditional, form of assurance is manifest in the auditor’s opinion regarding the fairness offinancialreporting. However, the heavy dependency on ITC within and across business organizations has opened doors to an entirely new line of potential assurance services. For instance, the American Institute of Certified Public Accountants (AICPA) and Canadian Institute of Chartered Accountants (CICA) considered business-to-consumer assurance in the form of WebTrust^†. More recently, the AICPA/CICA rolled out a product called SysTrust^†, which reflects a type of business-to-business assurance. Other assurance services will Hkely emerge over time, such as assurance over the quality and reliability offirms*business and information processes, located in the  middle ofthe accounting value chain, and assurance over knowledge management tools and techniques, located on the upper end ofthe spectrum. Last, but certainly not least, a new breed of e-commerce assurance service opportunities will likely emerge as firms begin to link their internal systems to one another, thereby forming unique and innovative e-commerce models. Synergistic Research Opportunities in Accounting The accounting value chain illustrated in Figure 6 provides a structure for pondering and framing a wide array of research questions for accounting scholars. The more prominent issues investigated by accounting information systems researchers are reflected in an upcoming AIS research monograph sponsored by the Information Systems Section of the American Accounting Association.’ Since most of these issues have been directly or indirectly addressed above, this section identifies representative areas where accounting information systems and other accounting researchers can collaborate on research projects. ‘ Arnold, V, and S. Sutton, Researching Accounting as an Information Systems Discipline, Information SyBtems Section of the American Accounting Association, forthcoming. ^Accounting Horizons/March 2002 Business Reporting Taxonomies The AICPA, among dozens of supporters, is involved with developing a technologybased framework to allow for the automatic extraction and exchange of financial and nonfinancial information across multiple, disparate software applications. Realization of this framework will facilitate many desired goals, such as the creation of global supply chziins, immediate dissemination of financial statements to the public, transmission of regulatoryfilingsto governmental agencies, and so on. The technology behind this framework is called extensible Business Reporting Language (XBRL), also known as the digital language of business. More infonnation about XBRL can be found at httpi/Avww.xbrl.org. In order to realize the full potential of XBRL, each data item in a corporate database must be precisely defined and related to other data items. The end result of this mapping process is called a taxonomy. For example, if all firms engaged in producing widgets agree on a standardized taxonomy for their industry and map their corporate data accordingly, then financial and nonfinancial information could fiow freely across the industry, regardless of the types of software and hardware being used by the firms. Taken a step further, if trading partner firms involved with the industry’s supply chain have access to the taxonomy, then they, too, can easily share business information. This example can be extended to a global setting as well. Research opportunities in this area seek to develop taxonomies to be used for various industries, regulatory agencies, accounting jurisdictions, supply chains, and so on. For instance, AIS researchers could collaborate with financial accountants on the development of XBRL taxonomies focused on financial reporting, including global taxonomies, and with managerial accountants on taxonomies dealing with internal reporting and supply chains. Continuous Financial Reporting In an effort to be more responsive to information consumers, publicly traded companies are considering the merits of providing financial statements on a more frequent basis than the current quarterly reporting period. Many issues and concerns arise with respect to continuous financial reporting, such what is meant by continuous (e.g., monthly, weekly, daily), how to deal with accruals, deferrals, and estimates in a continuous reporting environment, and the impact of continuous reporting on the capital market. Regarding the latter issue, financial and AIS researchers could simulate and compare various reporting frequencies, such as quarterly-to-monthly vs. quarterly-toweekly, and conduct either behavioral or experimental economic studies to investigate the impact of more frequent reporting on stock price valuations and market volatility. Continuous Assurance To the extent that continuous financial reporting becomes a reality, the accounting profession must deal with the concomitant demand for continuous, or at least more frequent, assurance. The potential research issues in this area include: (1) the type of assurance to render—audit or review, (2) the marketplace demand for continuous assurance, (3) the impact of continuous assurance on the audit process, and (4) ways that audit firms can leverage ICT to render an effective yet efficient audit under these circumstances. For example, auditing and AIS researchers could collaborate on projects investigating the efficacy of various types of ICT, such as embedded audit modules, for monitoring client transactions and activity levels and insuring that firms  do not change financial information on their Internet sites eifler the auditors have provided assurance. Blending Information and Communication Technology with Accounting Research 66 Quality of Earnings The possibilities of continuousfinancialreporting and related assurance beget questions concerning quality of earnings. For instance, to what extent will more frequent reporting affect a firm’s ability to manage earnings since accruals, deferrals, and estimates must be more closely tied, in real-time, to related economic events? Could a credit sale transaction captured at a cash register include estimated allowances for doubtful accounts and returned goods based on a percentage ofthe sale amount? Will more continuous assurance affect the nature and extent of earnings management attempts if the firm believes that auditors are more likely to detect such activity in a continuous assurance scenario? AIS and audit researchers can certainly team up to tackle such issues. Market Value of Accounting Systems The impact of ICT on accounting systems has evolved from fairly simple general ledger applications to extremely complex ERP systems. When firms adaptfromone type of system to another, they typically incur huge outlays offinancialand human capital. Questions arise regarding the underlying value of embarking on enormous capital projects of this nature. One aspect of â€Å"value† can be viewedfromthe perspective of investors. For instance, how do investors respond when a firm announces that it plans to adopt an ERP system? While this question deals with investors’ initial beliefs regarding ERP adoption, a follow-up question could focus on the extent to which ERP systems actually improve firm performance over time. Recently, AIS and financial accounting researchers joined forces to examine the first question (Hayes et al. 2001). Reading a study of this nature can help AIS and non-AIS researchers envision the end result of such collaborative efforts. Internal Value of Accounting Systems In a similar vein, researchers could investigate the value of enterprise-wide information systems to internal decision makers and business processes. For example, to what extent do ERP systems improve the timeliness, reliability, and  relevance of decision-making information throughout thefirm?Do enterprise-wide systems offer a realistic framework for creating value-added data warehouses and data marts? To what extent can the firm attribute quality improvements in critical success factors, such as services, products, processes, and morale, to enterprise-wide systems? AIS and managerial accounting researchers could collaborate on these and related issues. Decision Support Systems Advances in ICT facilitate the development of a host of potential decision-support systems at both the individual and group level. For instance, decision-support systems can be developed to help design effective internal control structures, configure optimal business processes, and assess business and audit risks. Issues such as interface design, information content, training value, and user reliance are some ofthe more fruitful areas of inquiry. Depending on the context ofthe proposed decision support system, AIS researchers can work with financial, managerial, tax, and audit researchers. Knowledge Management One of the more promising areas of value creation for oi^emizations is to capture, store, process, and disseminate business knowledge. Firm- and industry-spedfic knowledge is accumulated over time on key issues such as research and development, marketing strategies, customer relations, process quality, and so on. A â€Å"best practices’* knowledge base dealing with topics of this nature can be developed so that institutional 66 Accounting Horizons /March 2002 knowledge can be transferred across persons, settings, and time to facilitate organizational and individual learning and growth opportunities. AIS and managerial researchers can investigate critical design issues in knowledge management systems and ways to encourage employees to rely on such systems as electronic colleagues. Risk Assessm.ent and Management When firms switch from one accounting system to another, say from a traditional general ledger system to an ERP system, the nature and extent of business, internal control, and audit risks can change considerably. For instance, ERP systems are more likely than general ledger systems to cause business interruptions due to the tightly integrated nature of ERP systems coupled with programmed workflow automation from one business process to another. In addition, security risks are often heightened with ERP systems, since corporate information is stored in a relational database and a compromise ofthe database, via viruses, hackers, employees, and the like, can ripple throughout the organization. Company managers and internal and external auditors must be aware of risk differentials across accounting systems and revise contingency strategies, internal controls, and audit plans accordingly. AIS, audit, and managerial scholars can develop projects aimed at delineating risk profiles of various technology-based accounting systems. Once unique risks are identified, AIS and audit researchers can examine the extent to which external auditors are aware ofthe unique risks posed by different systems and how they either do or should adjust audit plans in response to differential risk profiles. A recent study by Hunton et al. (2002) represents an example how AIS and audit researchers are working together in this area. Systems Reliability Assurance The new SysTrust^† assurance service proposed by the AICPA/CICA holds great potential as a revenue generator for CPA/CAfirms.SysTrust^† attests to the rehability of a firm’s information systems. For example, company management would make assertions about one or any combination ofthe following reliability dimensions of its information systems: availability, security, and integrity and maintainability.^ Additionally, management can narrow the scope ofthe system to which the assertions apply, such as accounts receivable only, all financial applications, or the entire ERP suite of applications. Then, independent auditors are hired to test for compliance with stated assertions and offer related assurances to the public in the form of an opinion. A firm could voluntarily request a SysTrust^† engagement to provide comfort to current and potential trading partners, or a potential trading partner might demand that the other partner receive such assurance before entering into a contractual arrangement. AIS, audit, and financial researchers can collaborate on projects designed to investigate various issues, such as (1) the perceived value of placing assurance on various combinations of systems reliabihty dimensions, (2) how companies and audit firms can conduct cost-benefit analyses of SysTrust^† engagements, and (3) risk factors affecting the market demand for systems reliability assurance. These four dimensions of systems reliability represent the four principles of SysTrust^**. Blending Information and Communication Technology with Accounting Research 67 SUMMARY As highlighted throughout this commentary, information and communication technologies have radically transformed the nature of business and accounting practice. Accordingly, the manner in which accountants can potentially add value to economic entities and society is undergoing a metamorphosis. As suggested by the accounting value chain shown in Figure 6, many traditional accounting tasks dealing with recording and processing of accounting transactions can be reliably automated. Thus, accountants add little incremental value to organizations in this regard anymore. Rather, an accountant’s worth is now reflected in higher-order critical-thinking skills, such as designing business processes, developing e-business models, providing independent assurance, and integrating strategic knowledge. Many of the research issues reviewed in this commentary are interlaced with related topics in financitd accounting, auditing, managerial accounting, and taxation. Methodological approaches used to investigate accounting information systems research questions, such as scientific modeling, archival analyses, and behavioral experiments and qualitative inquiries, are also common across accounting domains. Given such complementary interdependences, the academic community would be enriched if AIS scholars were to collaborate on research projects with other accounting reseairchers, where possible, as resulting synergistic relationships will most certainly produce highquality, relevant studies that could drtimatically shape the future of the accounting profession and business practice. REFERENCES Elliott, R. K. 1994. Confronting the future: Choices for the attest function. Accounting Horizons 8 (3): 106-124. , 1995, The future of  assurance services: Implications for academia. Accounting Horizons 9(4): 118-127, . 2001. A perspective on the proposed global credential. Accounting Horizons 15 (4): 359372, Hayes, D,, J. Hunton, and J. Reck. 2001. The impact of ERP announcements on stock prices. Joumal of Information Systems 15 (1) (Spring): 3-18. Hunton, J., S. Wright, and A, Wright. 2002. Unique internal control issues in ERP environments. Working paper. University of South Florida, Tampa, FL. Porter, M. E., and V, E, Millar. 1985. How information gives you a competitive advantage. Harvard Business Review 63 (4): 149-160.

Requiment Essay

Healthcare United aims to be the number one provider of Healthcare professionals in Australia. Healthcare United is an organisation that currently employs 1,500 Healthcare professionals with two sites, in Victoria and NSW and seeks to expand its operations and open another office in Hobart. As an organisation our vision is to provide: The best qualified and trained human resources available for clients. Up-to-date technology in all services for both clients and staffs. Innovative best practices and procedures from both inside and outside the organisation. Best facilities and procedures in a competitive environment. To address the future needs of organisation, Healthcare United aims to recruit a future 500 or the best possible healthcare professionals available, in three stages, over the next five years. 2. Executive Summary Healthcare United is a healthcare provider and currently employs 1,500 Healthcare professionals with two sites, in Victoria and NSW. They recently developed a new strategic plan that involves opening another office at Hobart. Part of their HR plan is to employ 500 workers in three stages. An analysis and review of Healthcare United’s 2000 and newly developed 2010 policies and procedures for recruitment and selection have been conducted in this report. Conclusions have been made from the comparison between the 2000 Healthcare United recruitment and selection guidelines and the newly developed 2010 Healthcare United recruitment and selection policy and relevant legislation. Recommendations have been made for the changes necessary to improve procedures and the overall process of Healthcare United’s recruitment and selection policies and procedures, based on current research. 3. Purpose of Report The purpose of this report is to review analysis and compare Healthcare United recruitment and selection policies and procedures for the year 2000 and 2010 for the following 5 key areas: Timeframes Personnel involved Documentation Training Monitoring and evaluation Conclusions have been made from the comparison between the 2000 and the newly developed 2010 recruitment and selection policies and procedures. Recommendations have been made for changes to the 2010 policies and procedures to improve the newly developed recruitment and selection policies and procedures at Healthcare United. 4. Analysis and Review: Healthcare United 2000 and 2010 Recruitment and Selection Policies and Procedures The following is the analysis and review of 2000 and 2010 recruitment and selection policies and procedures: Key Area 2000 2010 Timeframe The whole selection process from: analyse the vacant position position description lodge an advertisement short-list applicants interview preparation interview applicants reference checks Total: 35 to 51 days The whole selection process from: analyse the vacant position position description lodge an advertisement short-list applicants interview preparation interview applicants reference checks Total: 14 to 21 days maximum. Personnel Involved HR department will assume major responsibility for the recruitment and selection of staff, the training of required personnel and supporting documentation. Managers will support the managers in role. Managers will assume major responsibility for the recruitment and selection of staff, the training of required personnel and supporting documentation. HR department will support the managers in role. Documentation All vacant and new positions will be advertised internally and externally for ten working days unless special exemptions apply and be advertised online and in leading national newspaper. All positions must first be advertised internally for a minimum of ten working days in the HU newsletter before being advertised externally for a period of ten working days. Training HR department will hold the training for all new employees. Manager will hold the training for all new employees. Monitoring and Evaluation HR department will monitor and evaluate each new employee about their work performance. Managers will monitor and evaluate each new employee and report it to HR department about their work performance. It can be noted from both the 2000 and 2010 Healthcare United’s recruitment and selection policy and procedures make no reference to all relevant legislation for the recruitment and selection processes. However 2010 policy and procedures briefly mention that Healthcare United is an equal employment opportunity (EEO) employer. 5. Conclusions and Recommendations 5. 1 Conclusions It can be concluded from the analysis and review of 2000 ; 2010 Healthcare United policies and procedures for recruitment and selection processes that 2010 policies and procedures are superior to those of 2000 in all key areas in term of efficiency and effectiveness of the recruitment and selection processes. For example, 2010 policy and procedure envisage a timeframe of maximum 3 weeks which is for efficient in selecting the best candidate when compared to the 2000 policy and procedures which specify selection processes requiring 35-51 days. Also, 2000 policy and procedure require participant of a large number of HR personnel when compare to 2010 where only the department managers are principally involved with the HR a support role only at all stages of recruitment and selection processes. 5. 2 Recommendations It is recommended that the newly develop 2010 policies and procedures for recruitment and selection should be adopted by Healthcare United for its recruitment and selection processes for future employment needs. However, the 2010 policies and procedures should include the provisions of legislative Acts, such as Anti- discrimination and the latest individual relation laws and regulations in addition to the EEO laws already included for the recruitment and selection processes.

Importance of education in children’s life Essay

Providing free and quality education to children reflects the fact that every child is entitled to fundamental human rights and is to be treated with dignity. Where children are exposed to poverty, violence, abuse, or exploitation, those rights demand our urgent protection. Primary education supports children at a critical time in their physical, emotional, social and intellectual growth. More broadly, education is a key tool for development, and an invaluable means of addressing structural inequality and disadvantage. Primary education provides children with life skills that will enable them to prosper later in life. It equips children with the skills to maintain a healthy and productive existence, to grow into resourceful and socially active adults, and to make cultural and political contributions to their communities. Education also transmits more abstract qualities such as critical thinking skills, healthy living, resilience, and self-confidence. An educated adult population is vital for strong economic development. It also lays the foundations for greater overall economic productivity, and the full use of new technologies for development. A system of compulsory schooling helps fight child labour. Educated and literate adults are more likely to be informed about sexual risks and better able to protect themselves from HIV/AIDS and other sexually transmitted diseases. A lack of gender parity and equality in education is often a critical factor in underdevelopment. The education of women is a powerful means of sustaining improved health and education in the long term. Figures suggest that children of educated mothers are significantly more likely to be enrolled in school. The education of women also reduces fertility rates and improves the health of women, infants and children. In addition, the education of women may also address entrenched cultural views about traditional female roles as they are empowered and equipped with skills which enable them to make a full contribution to their communities. You can make a difference by entering a partnership, donating or volunteering.

Eroupean business Essay Example | Topics and Well Written Essays - 2500 words

Eroupean business - Essay Example Along with this evolution of humans and territories, the political setup, which ruled villages, also evolved and new political setups came into being, to rule cities, provinces or states and importantly countries. With the evolution and formation of countries, the political setups also evolved, with countries governed by different political setups including democracy, monarchy, Theocracy, Despotism, etc. This evolution and establishment of many countries with different political setups have necessitated the formation of an overseeing or conglomerate organization. The role of ‘conglomerate’ organization is manifold as it provides a forum to discuss as well as solve many important issues apart from aiding unison of countries. This paper will focus on one such organization, European Union. European Union is a conglomeration of countries in the continent of Europe. But, that conglomeration or integration has not been fully actualized, as certain older member states particularly United Kingdom opposing it and mistrusting it. So, this paper will first analyze why certain member states particularly UK is mistrusting European integration, and then will discuss the changes particularly in stitutional structure and economic changes that might reinvigorate the process of European integration. United Kingdom is regarded as one of the most dominant countries in the world history, as it strengthened its sovereignty as well as spread its influence all over the world in the earlier centuries. But, in recent times or in recent decades, citizens think that its supremacy and importantly sovereignty is being challenged by external issues or organizations, with which UK is voluntarily associated. That is, some actions of external bodies like European Union (UK holds membership of it) and its court is undermining the powers as well as the laws issued by the UK Parliament, thereby UK’s sovereignty. According to majority of the

The Epic of Gilgamesh OR a biography of one of the Roman Emperors by Essay

The Epic of Gilgamesh OR a biography of one of the Roman Emperors by the Roman historian Suetonius in his Lives of the Caesars - Essay Example Gilgamesh heard about him from a hunter who had spotted him at the river taking a bath. The hunter or trapper as they were best known went and told his father, who eventually send him to Gilgamesh so that he would give him a temple prostitute who would seduce Enkidu. He returned with Shamhat. The following day they waited for Enkidu to reappear so that they would send the prostitute who seduced him eventually. On his reappearance, the prostitute seduced him and they made love for six days and seven nights. In the end the animals in the wilderness did not accept him again. Shamhat made a preposition to him to accompany her to Uruk. Enkidu accepted especially since he was curious of who this Gilgamesh is. He and Shamhat set to leave for Uruk the following day On their way there the following day they were shocked at Gilgamesh‘s ways. At the camp they stopped over, Gilgamesh was to sleep with the bride on the eve of her wedding before her husband slept with her. Enkidu was enraged by this act of inhumanness towards people by Gilgamesh. He was now determined to stop Gilgamesh and his acts. In the meantime Gilgamesh was having dreams of the arrival of Enkidu. So he was well prepared for him on his arrival. When the two met up a fight broke out well as expectedGilgamesh triumphed over Enkidu, but this was a changing moment for him. He finally became friends with Enkidu. Enkidu in return tells Gilgamesh about a beast in the cedar forest (McCaughrean, 110). They went to forest together with the god of the sun they defeated the beast. On their way back. Gilgamesh met Ishtar. Ishtar was a spiteful lover. Gilgamesh learnt this and rejected her eventually. She was offended and asked Anu to punish him for that. Sorrow descended upon the peopl e of Uruk as hundreds of them died in the hands of The Bull of Heaven. Both Gilgamesh and Enkidu joined hands and killed the beast. In the end Gilgamesh went to mount Mashu in pursuit of immortality. While there he was told that

Operation Management Essay Example | Topics and Well Written Essays - 2750 words

Operation Management - Essay Example Operations management must be strategized to enable competitiveness. Such can be achieved if the entrepreneurs proficiently practice financial management, customer care satisfaction, operation risk management, innovation and creativity in business management, as well as regular monitoring or evaluation of performance using standard index of measure. Other than protecting capital and investments from foreign exchange losses, it is also essential to undertake strengthening activities to improve organizational performance and to critically understand the market trend using behavior-analysis for them to nurture change adaptability especially when foreign exchange rate in the market is reel to fluctuate. Slack et. al. pointed that performance is improved if an organization is adherent to total quality control to do what is right to maintain an effective and quality operation that is cost-efficient; do functions and roles efficiently to effectively deliver services; perform jobs timely to nurture reliance in the delivery of goods and services; and to practice flexibility in the production of goods or delivery of services based on supply and demand situation in the market. 2.2 Operations performance for efficiency and competitive advantage Learn from experiences. Tardiness doesn’t favor business. Business must be dealt with efficiency thus, it is important for the organization to maintain effective operational technology to spare procedural dysfunction or breakdown; strengthen time utilitization as against absenteeism; and optimization of quality standards of job performance to develop a culture of efficiency in the workplaces. In so doing, entrepreneurs should produce goods with quality standards in accordance to policies and scale or context of economies. The organization must also prefer highly-skilled and well-trained human resources who are willing to out-perform other competitors in the market. As such, other than their inherent capacities, workers should be measured with their actual output as against goals and of key results as against the period of time allotted for the perfection of production or delivery of service. This is very significant in supply chain management of the retail industry. 2.3 Suppl y chain management in retailing Supply chain management (SCM) refers to the mechanism adopted by retailers in the performance of their business operation which specifically deal with the transport of goods and services from its production or site to its consumers (Kavcic, 2006). Retailing is the significant last step in this system where entrepreneurs match goods with consumers needs within the context of supply and demand relocations. SCM enhances organization’s performance to enable the integration and interaction of internal and external relations between suppliers, retailers, customers, or buyers.

Leadership in Nursing Assignment Example | Topics and Well Written Essays - 1000 words

Leadership in Nursing - Assignment Example This study will be aimed at addressing the scope and need for development in United Healthcare with the intention to suffice the growing requirements for quality assured medical services within the next decade. Contextually, the study will also exhibit a strategic plan taking into account the aspects of network growth, nurse staffing, resource management and patient satisfaction in order to assist United Healthcare to deliver adequate support to the growing needs of the population. Strategic Planning for United Healthcare United Healthcare has been much concerned towards enhancing its performances by continually delivering proper and effective services to the clients (Patients), especially in the form of health insurance programs. As the organization aspires to improve the quality standards and effectiveness of the medical facilities being rendered to Americans, it becomes highly significant for the company to continually enhance its performances on the basis of particular strategic guidelines. Hence, to meet the rapidly increasing demand of global customers, the organization will need to redesign its strategies in regard to network growth, nurse staffing needs and procedure, management of the resources and quality standards (United Healthcare, 2013). ... However, since the health care needs of the population in America are increasing at a rapid pace, the organization would need to spread its operations or network to a wider extent. In this regard, the unit can establish some more hospitals under its umbrella, especially in the interior parts of the country where lesser numbers of quality health care service providing operators are available. This will further enable the organization to convert its aim of providing quality services to almost every citizen of the country into reality. Furthermore, adding more and more hospitals and health care professionals within its operations will further lead to an enhanced reputation of the organization throughout the country. Spreading its network in the interior regions of the United States, where there are lesser numbers of health care units, will also portray the responsiveness of the organization towards the societal needs; thus, sufficing its vision of responsiveness (United Healthcare, 2013 ; Lighter, 2011). Nurse staffing Nurses are quite a vital part in health care business. As a matter of fact, even though doctors are perceived to be bestowed with the primary role in any of the health care organization or service system, the role and the responsibility of nursing staff are irreplaceable. Nurses are often considered as the ultimate pillars in regard to acquiring maximum customer satisfaction. As stated earlier, with the increase in the demand of the customers for quality services in this sector, the health care units in America are in need to revise their nurse staffing strategies in order to develop an effective set of nursing team that would be able to meet the requirements of the customers with diversity and efficiency. United

Nature and nurture Research Paper Example | Topics and Well Written Essays - 1000 words

Nature and nurture - Research Paper Example When one speaks of nature, they are referring to heredity, the genetic structure of an individual passed down to them by their parents. A few examples of inherited traits or nature include a person’s IQ, height/weight, behavioral patterns, general appearance and disposition, all of which significantly impact a child’s development. The environment or nurturing influences that a child experiences while growing up also significantly impacts their development but how much outside stimulus can affect or counteract genetic predispositions continues to be studied and varies at least to some extent in each individual. Some fundamental nurturing dynamics, nutrition for example, have been revealed to play an integral role in determining a child’s development. Other external factors such as fears experienced by a child can become ingrained and manifest into any one of many maladies surfacing throughout that child’s lifetime. Nurturing activities such as behavioral te chniques taught by disciplinary measures and observations is an important aspect of child development as well. Proper behavior will not develop if not learned as a child. Behavior has been proven to be dependant more so on nurture than nature. (Blanz, 1991 pp. 939–950) To better understand the extent nature, or genetics, has on the development of children; researchers have conducted many studies involving twins who were raised in differing environments, by different types of parents. One study involved the ‘Jim twins’ a set of identical twins who were raised apart. Though they had never met, the brothers and researchers discovered many similarities between the now 40 year olds. The conclusion that no credible explanation existed for the similarities except nature plays an important role in child development. â€Å"The Minnesota twin study concluded that on multiple measures of personality and temperament, occupational and leisure-time interests and social attitu des, mono-zygotic twins reared apart are about as similar as are mono-zygotic twins reared together† (Flanagan). Researchers have also examined adopted siblings within the same family, in other words children who share nurturing circumstances but are not related biologically to their parents or siblings.   A study conducted by the Texas Adoption Project concluded that there was â€Å"little similarity between adopted children and their siblings, and greater similarity between adopted children and their biological parents† (Flanagan). This study showed that nature indeed plays a pivotal role in how a child will develop therefore predictions can be made as to how to best accommodate positive outcomes. An example would be if biological parents have a particular learning disability, their children are more likely to develop the same condition and steps can be taken early on to address it. (Rowe, p. 55) Much of how we develop our personalities is thus shaped by the way in which we are treated by our parents and caregivers and affected by the education we receive, the culture we are raised in and the social adherence to these cultural norms we encounter. The things that happen to us throughout our lives also affect the way our personalities develop. Major events such as a death in the family, a significant move, changes in the family order (through divorce, remarriage, new births,

Pan pacific hotel vancouver Essay Example | Topics and Well Written Essays - 1250 words

Pan pacific hotel vancouver - Essay Example Pan pacific is a brand name and has many branches in different continents. In 1976, Sari Pan Pacific Jakarta debuted; it was the first pan pacific hotel (Boella, & Turner, 2013). Since then the san pacific brand has extended its branches as they are located in America and the Asian continent. The pan pacific hotels can be found in Australia, Bangladesh, Canada, China, Indonesia, Philippines, Singapore, Thailand and the United States. This article will narrow into one of the pan pacific hotels, the Pan Pacific Vancouver (Boella, & Turner, 2013). The pan pacific Vancouver is located in Canada place in Canada Vancouver. The hotel has been rated among the leading hotels in Canada. Its location is also very strategic having been placed at Vancouver’s waterfront. The Pan Pacific Vancouver has an excellent Canada view, for example the mountains, coal harbor and the city’s skyline. This makes Pan Pacific Vancouver edge out competition as it is on a place of its own. The strategic location also makes Pan Pacific Vancouver more than just a hotel known for food. It makes business meetings, group tourists and conferences perfect and on point. This is because the hotels proximity to banking halls, shopping malls, leisure places like theatres, parks, clubs and the marina is a stone throw away (Boella, & Turner, 2013). In addition to being near the main facilities that are needed for tourists, business people, and groups, there is a sea wall which goes around Pan Pacific’s waterfront, then to the Stanley park and then to the hotel, this is often used as sport for sports lovers since people can bike, run, they can have relaxation walks or skate board back to the hotel. The location is not only suitable for physically active people as the elderly and conservative people can sit and watch cruise liners from their rooms. The view is refreshing and superb. The Pan Pacific Vancouver has a number of quality service offered to its customers apart from food.

Entrepreneurial Marketing Business Plan Essay Example | Topics and Well Written Essays - 1000 words

Entrepreneurial Marketing Business Plan - Essay Example OZ Tube operates exclusively in the south-east Queensland and Brisbane. In this regard, most of the contents are meant for the local population. OZ Tube directs all its hospitality content to the youth population in these two areas. OZ Tube productions works articulately with hospitality premises and other recreational destinations in producing tailor-made video content that responds to the preferences held by the youth (Tunji, 2011). In addition, OZ Tube website provides updates on a 24/7 basis on what is happening within the local hospitality venues and any other related recreational event. All the promotional programs and videos produced by this company changes swiftly with times due to changes in the required content of the advertisement episodes in videos and in the internet. At this juncture, we can appraise the context of a dynamic process whereby OZ Tube is planning to create a new TV program named The Pulse (Tunji, 2011). Just like any other video programs hosted by OZ Tube, The Pulse carries the contents of hospitality and tourism events and venues. This is one of the contemporary TV programs aimed at facilitating delivery of promotional contents to the target generation. The Pulse will revolve around the aspect of entertainment, travel ways and recreational places. Video contents covered in the episodes aims at highlighting the main messages regarding these places at any given time. This TV program still targets the youth population of Brisbane and south-east Queensland. In this regard, the program communicates the major events happening in entertainment places and recreational facilities to the local population and in a timely manner (Frederick, 2009). In the context of entertainment, this TV program covers contents relating to any local entertainment events happening within a certain timeframe or even which theatres show whichever blockbuster movie in the market at that time. In this regard, the company’s management behind the creation and i mplementation of The Pulse requires a business plan. This business plan will serve as an indicator of the present and future state of affairs with respect to the company’s business expectations on the plan. The plan also serves to indicate fundamental aspects like financial forecasts and risks involved in the process (Frederick, 2009). Just like any other business activity, The Pulse will undergo a financial evaluation meant to test the project’s feasibility. A project is feasible if the expected results conform to the subject company’s objectives. In order to ascertain the feasibility of the project with respect to financial terms, it is necessary to carry out a comprehensive financial analysis. In addition, the feasibility decision will be backed up by information concerning risk evaluation of the underlying project. One of the financial statement the will serve as a appropriate tool in the project’s financial analysis is the balance sheet. The companyà ¢â‚¬â„¢s balance sheet reflects the current assets and liabilities that pertains the business and financial statements of the underlying project. This balance sheet guides the interested stakeholders, especially external financers like the sponsors in availing funds to the Pulse. The pulse aims at producing 13 weekly episodes. Therefore, successful production of these episodes need substantial amount of finances. Financial ratios

Individual case study Example | Topics and Well Written Essays - 1000 words

Individual - Case Study Example urship and innovation challenges faced by the founder and the co-founder at the initial stages of operation and the strategies adopted by them to expand their business in the international markets (Stokes and  Wilson, 2010, p.65). Jeroen Glabeek and Gilbert Gooijers, the founder and the co-founder were classmates and shared same interest in academics during their college days with the activity of radio broadcasting as a commercial business. Glabeek and Gooijers considered the proposal of their customers to send ringtones and sms to the overseas European markets such as Spain and tying up with the telecom service providers in those countries. In the course of their step towards innovation and entrepreneurship, they also considered their failed venture in the past in Poland. Taking into account the prospects of the international markets, the company considered at the development of software in the mobile phones of the customers all over the world (Kumar, 2008, p.57). In order to attr act customers, they started to make their customers aware of the wide reach of the sms service and the response of the people after reading their sms. The clients of CM were able to send the plan of their activity to their customers and the overwhelming response of the customers led to the increase in sms traffic over the years as shown in Exhibit 1. The increase in the sms traffic and the growth of business reflected in the financial statements of the company. From the time the company started in 2000, the company has moved from a net loss position in 2000 to a net profit position of â‚ ¬1233602 in 2009. The income statement of CM over the years has been given in Exhibit 2. The decision criteria for success and sustainability of CM’s business are the analysis of the entrepreneurial and innovative measures in the business of sms service. The success and sustainability is decided by the impact of measures taken to meet the challenges in the competitive industry, the impact on the

Operations Management Essay Example for Free

Operations Management Essay The case at hand is hinged on the efficiency of operations in the different facilities of Canbide Corporation. With all the pressing problems, the system of operations in the company needed to be re-designed to answer the problems in every area that needs attention. The four concerns of Mr. Iwani, which are: 1. There is a need to put up a distribution facility in the Pacific Northwest; 2. There are quality problems at a facility in Nebraska; 3.  Customer Service problems; 4. There are inventories / materials handling problem at Newark facility, could actually be consolidated as problems of Aggregate Planning. In the case of Pacific Northwest, which locates the plant S facility, where inventory problems and shipping concerns abound, the root causes of which is the not so good facility location planning. The expansion of the company was not able to be considered over the initial planning stage. Hence, some strategic solutions would be available for each of the facilities which could be centrally based on the Japanese’s â€Å"Just-In-Time (JIT) system which uses the Kanban and Lean Management System† First, on the Denver Facility, the production queuing model should be revised as to the process whether one â€Å"Work-In-Process flow†. When a customer had to pick up a product, it should be centrally ordered on one building alone and have to wait on a lounge until the orders are ready to be picked up on a central loading plant. The products are thus carried over to the central loading station for customers. This will eventually solve the problem of traffic inside the facility. Parking should be organized to be able to serve the first customers first. Further solutions would include the proper â€Å"facility lay-outing of future building plans† Secondly, on the Problem in the Oregon facility, the production process should be already automated since the increasing demands require such facility. In this way, using the Kanban system of the Japanese Toyota system or the Just-In-Time system which forge strong linkage over its suppliers and order system is placed in attention when inventory is kept at low. With this system, the storage facility could be converted into production facility because stocking of materials needed would be minimized or even eliminated through the use of the system. Also, this system will be beneficial to the firm because it would drive down the cost of materials especially in the value loss of inventorying at its warehouses. Problems on shipping inventories would also be minimized. Thirdly, on the issue on the Copier Rehab Facility near Charleston, the management should focus its attention on Knowledge Management and Information System. This would require an in-depth analysis on the problems of the copiers being brought in for repair and the time spent and behavior analysis of every customer. If this would be done, then the management would be able to note the materials needed to be inventoried in the rehabilitation center. The turnaround rate of seven days would even be minimized, and not just targeted. The Materials Requirement Planning would thus be needed by the company to cope up with the demands of the products to be repaired. In summary, the Oregon facility problems could thus be solve through re-structuring with the inception of the JIT system in each plant and revising the process workflow to ensure on time production and ensure the quality of the products made. Warehousing costs would also be minimized if not totally eliminated with the Kanban System, which is also hinged on the Just-In-Time system of the Toyota Company in Japan.

Components Of A Computer System Cpu Information Technology Essay

Components Of A Computer System Cpu Information Technology Essay The central processing unit is the serving of a computer system that carries out the instructions of a computer program. It is main part carrying out the computers roles. The central processing unit transfers out each instruction of the program in order, to perform the basic arithmetical, logical, and input/output operations of the system. The CPU has many different purposes which can be moving data from one location to another, building decisions and jumping to a new set of orders based on those decisions. The CPUs speed is a measure of MHz (megahertz) or more recently GHz (gigahertz). A chip with a megahertz rating of 900 MHz would be able to complete 900Million cycles every second. The types of CPU: AMD (Advanced Micro Devices) Intel Celeron RAM (Random Access Memory): RAM is a memory facility which provides space for your computer to read and write data to be accessed by the CPU (central processing unit). When people mention to a computers memory, they usually mean its RAM. The programs and data that we use are stored in the RAM temporarily so that the processor can access them fast. RAM is used to load and run programs or applications on a computers are operating system. Extra RAM means more applications and programs can be run simultaneously. The speed is measured in MHz, (or megahertz). The capacity of RAM is measured in bits, bytes, kilobytes, megabytes, gigabytes, terabytes and the typical capacity of RAM in a PC is 512MB to 8GB. There are other types of RAM which are; SDRAM (synchronous dram) DDR(double data ratter) Rambus Dram (RDRMM) ROM (Read Only Memory): Is a class of storage media used in computers and other electronic devices. Data stored in ROM cannot be modified, or can be modified only slowly or with difficulty, so it is mainly used to distribute firmware. The BIOS software is built into the PC, and is the first code run by a PC when powered on (boot firmware). The primary function of the BIOS is to load and start an operating system. BIOS software is stored on a non-volatile ROM chip built into the system on the mother board. The first job for the BIOS is to initialize and identify system devices such as the video display card, keyboard and mouse, hard disk, CD/DVD drive and other hardware. These are the types of ROM: Mask-Programmed ROM (MROM) Programmable ROM (PROM) Erasable-Programmable ROM (EPROM) Electrically Erasable PROM (EEPROM) Input devices: Input devices are any piece of computer hardware equipment used to provide data and give in information to the computer. They allow us to enter the information and data into the computer.E.g. Mouse: Is an input device which inputs information by clicking the mouse and being able to move the arrow in the monitor by using the mouse. Mouse can display mainframe data records that contain a leading 4 byte record length counter. With proper options, mouse can add carriage returns to fixed length records. Types of mouse: laser mouse mechanical mouse cordless mouse KEYBORAD: The set of typewriter like keys that enables you to enter data into a computer. Computer keyboards are similar to electric-typewriter keyboards but contain additional keys. It control the computer and purposes includes a plurality of sets of two or more keys arranged for receiving the tips of the finger of a hand of an operator, the keys of each set have such a small superficial touch area and are clustered together. So as to be substantially comprehended and selectively operated by a single finger tip of an operator. There different types of keyboards: Ergonomic Keyboards Wireless keyboards Illuminated keyboards Output Devices: Output Devices are used to communicate the outcomes of data processing carried out by information to the computer to the outside world. Which we get information out of the computer. E.g. Printers will print anything that in on that is on the monitor onto paper. This can be pictures, words and numbers. Monitor Monitor is a device that displays images or symbols generated by computers, an output device that is a part of your computer display system. They Serve as the visual display to help you navigate your computer. Also to display text and graphics, produced by a computer. The resolution is the measurement of the number of pixels that a computer displays, also called a computer monitor, can show at one time. Monitors that display more pixels offer a sharper, brighter image. Monitors are measured in inches, diagonally from top left to bottom right. Types of monitors: CRT (Cathode Ray Tube) Monitor LCD (Liquid Crystal Display) Monitor Printers: Printer is a peripheral which produces a text and/or graphics) of documents stored in electronic form, usually on physical print media such as paper or transparencies. It lets you to get a hard copy of a document, or picture. DPI (dots per inch) most printers print 600 dpi printers print 600 tiny little dots across one inch and 600 dots vertically for one inch. The higher the resolution of your printer or image setter, the greater detail you can print and the better appearance of your output. The speed of printers is measured in print-per-minute (PPM) for example, laser printer ratings range from 6 to 15 ppm, inkjets are rated 4 ppm and up for black text, and photo-quality inkjets range from 0.3 to 12 ppm, depending on the job. Types of printers: Laser printers Ink-jet printers Dot matrix printers Disk Storage devices (Backing store) Disk Drives are used to record information from the computer onto a floppy disk or CD. Hard Disk Drive: Hard disk drive (HDD) main storage used to permanently store all including the operating system, data, files and programs on the computer. Most hard drives are permanently stored in an internal drive bay at the front of the computer. Capacity per HDD increasing from 3.75 megabytes to greater than 1 terabyte. The typical capacity of hard disk in a PC is uses a 400 to 500 GB drive. Types of Hard Disk: Desktop Hard Disk Types: 3.5, IDE and Sata Interfaces Laptop Hard Disk Types:2.5, 1.8, IDE, Sata, SCSI Server Hard Disk types:3.5 Sata, SCSI Optical Disk Storage CD/DVD/Blu-Ray CD Disk: A Compact Disc (CD) is an optical disc used to store digital data. It was originally developed to store sound recordings exclusively, but later it also allowed the preservation of other types of data.It is used to store data, video or music. So that makes it a storage device. A standard CD has a capacity of about 74 minutes of standard CD audio music. There are extended CDs that can actually exceed this limit and pack more than 80 minutes on a disk. CDs are capable of storing up to 700 mb. The types of CDs are: CD-ROM is a pre-pressed compact disc that contains data accessible to, but not writable by, a computer for data storage and music playback. CD-R a CD-R (Compact Disc-Recordable) is a variation of the Compact Disc invented by Philips and Sony. CD-R is a Write Once Read Many (WORM) optical medium, though the whole disk does not have to be entirely written in the same session. CD-Rewritable disk, a type of CD disk that enables you to write onto it in multiple sessions. One of the problems with CD-R disks is that you can only write to them once. DVD Disk: DVD (Digital Video Disc) is an optical disc storage media format, which are of the same dimensions as compact discs (CDs), but are capable of storing almost seven times as much data. The storage capacity of a DVD is approximately 4.7 GB (gigabytes). A dual layer doubles the storage but requires a dual-layer DVD player/recorder to use the dual-layer media. The types of DVDS: DVD-R DVD-RW DVD-ROM Blu-Ray Disk: Blu-ray Disc is an optical disc storage medium designed to supersede the DVD format. The format defines as its standard physical media a 12Â  cm (same as DVDs and CDs), 25 GB per-layer optical disc, with dual layer discs (50 GB) the norm for feature-length video discs and additional layers possible later. The capacity of Blu-ray disk is 25Â  GB (single-layer) 50Â  GB (dual-layer). USB Memory Stick USB flash drives are computer devices that inputs information that is saved on the USB and inputs it in to the computer when you insert the USB. Also typically removable and rewritable, and physically much smaller than a floppy disk. USB drives range in capacity from megabytes up to 256GB and offer much more storage than writable CDs and DVDs. Operating system Is software, containing of programs and data, which runs on computers and manages the computer hardware and runs common services for active carrying out of various application software. Operating systems are responsible for everything from the control and allocation of memory to recognizing input from external devices and transmitting output to computer displays. They also manage files on computer hard drives and control peripherals, like printers and scanners. An operating system also has a vital role to play in security. Its job includes preventing unauthorized users from accessing the computer system. Examples of operating systems: Windows Vista Windows 7 Task 2: Types of computers: Desktop PC (personal computer) Is a personal computer any common-purpose computer whose size, capabilities, and original sales price make it useful for individuals and which is planned to be operated directly by an end user with no principal computer operator 3 common applications of desktop PC: Access the internet Most time used in offices e.g. Microsoft office used to alto of things: like writing letters, posters etc. Starting your own home business, e.g. selling items through online auction websites. Laptop A laptop computer or simply laptop, is called a notebook, is a small personal computer designed for portability. Usually all of the interface hardware needed to operate the laptop, such as USB ports, graphics card, sound channel, etc., is built in to a single unit. Laptops hold high capacity batteries that can power the device for general periods of time, attractive portability The main purpose of a laptop computer is to be portable. 3 common applications of Laptop: Can be used away from an outlet using a rechargeable battery. Connect to any network, including wireless network Answer email on the train, plane, or passenger seat of a car Palmtop A computer small enough to hold in one hand and operate with the other. Also called a hand top, these ultra-small computers may have particular keyboards or keypads for data entry applications. 3 common applications: Send an email Create text message Access internet Network Server A network server is a computer planned to process requests and carry data to other computers over a local network or the Internet by using the same network. 3 common applications: Web server a static content to a Web browser by loading a file from a disk and serving it across the network to a users Web browser. Chat Server enables a large number of users to exchange information in an environment similar to Internet newsgroups that offer real-time discussion capabilities. Fax Servers a is an ideal solution for organizations looking to reduce incoming and outgoing telephone resources but that need to fax actual documents. Supercomputer A supercomputer is a computer which performs an amount of speed which is far above of other computers. Known constantly changing the world of computing. Supercomputers are used for highly calculation-intensive tasks such as problems involving important physics, weather forecasting, climate research, molecular modelling .A particular class of problems, known as Grand Challenge problems, are problems whose full solution requires semi-infinite computing resources. Task 3 Diagram flows around a computer system: Backing store (Disk storage devices) CPU Central Processing Unit Main memory (RAM) Output devices Input devices When clicking on the mouse or typing on the keyboard its sends information to the CPU. Once the information is recognise on to the CPU, The CPU sends informations on to the output device and will appear either on the printer or monitor When the PC is turned on the RAM sends information to the CPU and sends information to the backing store When you save work on to the PC the backing store saves it sends the information to the CPU then to the main memory and is saved there

Conflict and Natural Resources Relationship to Growth

Conflict and Natural Resources Relationship to Growth Is the incidence of Conflict and an abundance of Natural Resources in African States  correlated with Economic Growth? Table of Contents (Jump to) Chapter 1: Introduction 1.1 Aims and Objectives 1.2 Overview Chapter 2: Literature Review 2.1 The â€Å"Resource Curse† economic theory 2.1.1 The African Link 2.2 The causes of the â€Å"Resource Curse† 2.2.1. The â€Å"crowding out† cause 2.2.2. Quality of institutions 2.2.3. The â€Å"Dutch Disease† model 2.2.4 Other theoretical economic arguments 2.3 Civil war and economic growth 2.4 Natural resources role in Civil war Chapter 3: Influence of natural resources on economic growth 3.1 The cause of â€Å"the resource curse† 3.2 Is â€Å"the recourse curse† relevant to Africa? 3.3 Other influential factors Chapter 4: The role of conflict Chapter 5: Empirical evidence Chapter 6: Conclusion References During the course of the past two or three decades many economists and academics have been endeavouring to discover why a proliferation of natural resources, which is normally considered to be a wealth generating sources often have an adverse effect upon emerging economies, slowing rather than increasing the pace of development (Rodriguez and Sachs 1999, p.277 and Isham et al 2005, p.1). Other studies, concentrating particularly upon emerging nations is areas such as the African continent, have also claimed that there is a link between the proliferation of natural resources and political unrest and conflicts, which manifest themselves in â€Å"civil wars† (DiJohn 2002, p.1). A number of theories have been advanced in an effort to offer an explanation for this phenomenon. These include the â€Å"resource curse† theoretic model promoted by Gelb (1988) and Sachs and Warner (1997); the â€Å"rent-seeking† and â€Å"Dutch Disease† models referred to in research carried out by Torvik (2001 and 2002) and DiJohn (2002), whilst others link the causes more directly to the institutions and political conditions pertaining to the individual nation (Mehlum et al 2005 and Isham et al 2005). However, other researches have suggested that such models should be treated with caution. For example, Stijins (2005, p.3), suggest that earlier â€Å"resource curse† models have limitations, and this view is echoed in the works of Rosser (2007, p.39) and others. There have been similar divisions across the academic divide regarding the link between the level and treatment of natural resources and the propensity for civil unrest and violence, which culminates in most cases in civil wars. Whilst many observers view the cause of this unrest as being linked to natural resources and the political environment (Keen 2005, p.12) and the â€Å"difference in quality of institutions† (Mehlum et al 2005, p.3), others, including Rosser (2007, p.40), suggest that the level of strategic importance of the location of the individual nation may also be a determining factor, if not in the causality of civil war then in its potential longevity and likelihood of its reoccurrence. In addition, as Collier (2003, p.6), the globally perception held in many areas, that â€Å"nothing can be done† to end such disputes, add to the problem. The divergence of views and research results indicated previously does raise questions regarding the efficiency and effectiveness of any action that may be taken to resolve the issues outlined, either within an individual nation or when addressing a specific geographical area. For example, whilst addressing the â€Å"resource curse† or â€Å"Dutch disease† may have some positive impact on the economic growth and development in emerging economies, it could follow that without a simultaneous response to address the issue of political structure, institutions and civil war, such benefits would be negated by other influences. 1.1 Aims and Objectives The intention of this paper is to evaluate whether there is a common denominator that can be found to link the entire multitude of research together into one cohesive argument. Using the African states as a basis for this research it is felt that the conclusion of the paper could add to the continuing research into finding a unique theoretical model that will provide a format for improving the economic growth and development of poorer nations, particularly those that have not been seen to have gained economic growth and development benefits from their natural resource levels and capabilities. Thus, to identify a fundamental aim for this paper, it is considered that the conclusion of the study will be intended to seek an answer to the following question: â€Å"Is the incidence of Conflict and an abundance of Natural Resources in African States correlated with Economic Growth?† Furthermore, in order to provide a structure that will assist with the achievement of a conclusion to this conundrum, the author has set four main objectives for the research, which in concise terms can be identified as: Providing an assessment the relationship between a country’s economic growth and its dependence upon the export of natural resource products. Evaluating the claim that there is a link between civil war and economic growth and seek to distinguish the key elements that pertain to that link, which might include institutional and political performance. Assessing the level of probability of civil war resulting from a nations dependence upon natural resources. Reviewing the impact of strategic location, or lack of, and the potential influence this has upon internal conflict that might exist within the development process of an individual national or regional economy. 1.2 Overview For ease of reference the paper has been organised in the following manner. Following on from this introduction, in chapter two a critical review of recent theoretical literature relating to the subject being studied will be conducted. This will include an overview of the theories relating to natural resource impact and dependency, the relationship between civil war, natural resources and economic growth and other arguments that have been expounded upon in recent literature. Chapter three includes a discussion on the influence that natural resources has economic growth and political unrest and this is followed in chapter four by a more detailed analysis of the role of that conflict plays economic performance of nations who have these resources. In chapter six we provide and analyse the empirical evidence as it relates to the nations of Africa. This structure will enable us to reach a conclusion in chapter sever regarding the question set for the study (see page 5). A bibliography of sources and appropriate appendicles follow the conclusion of the research. As stated in introduction to this research, there has been a considerable amount of research carried out in regards to the influence that a wealth of natural resources has upon the economic growth of the poorer and emerging countries, as well as the relationship this has upon civil war and political unrest or imbalance. Within this review it is intended to focus upon the main economic and conflict theories that have been developed and discussed in recent decades. 2.1 The â€Å"Resource Curse† economic theory It is the negative or reduced economic growth patterns that have been experienced by nations that have significant natural resources, which has given rise to the term â€Å"resource curse,† and which has given rise to a considerable amount of literature and research since the late 1980’s, amongst the foremost of which is that conducted by Gelb (1988), Sachs and Warner (1997), Rodriguez and Sachs (1999) and Sala-i-Martin, and Subramanian, (2003, p.833), although there has been a proliferation of other works. The starting point and motivation for much, if not all of the research and literature relating to the â€Å"resource curse†, resulted from the significant difference that had been found to exist between the real economic growth performance of manufacturing and natural resource exporting countries over the years, as measured by the movement of GDP[1]. One of the latest examples of an analysis of this differential can be found in the review carried out for the World Bank by Isham et al (2005), which compared growth rates over a 40-year period (see figure 1). When converted into graphical format (see figure 2), the extent of the deceleration of national resource exporters and the differential between these and manufacture becomes more obviously apparent. As can be seen from the analysis (figure 1) in the first half of the period, when natural resources were being discovered and exploited, the GDP gap between these exporting nations and the manufactures exporters was more than halved, in fact in some periods the growth rate for natural resource rich countries was outperforming other areas (Le Billon 2005, p.13). But this improvement saw a dramatic reversal between 1975 and 1997. This performance has been directly linked to the movement of the natural resource revenue in other research, for example that conducted by Rodriguez and Sach (1999), where a similar pattern is revealed to be linked to the production of petroleum (see figure 3). However, taking the period in its entirety, as the figures and graph show, whilst the GDP for those countries that did not have a significant level of natural resources (the manufacturing exporters) grew by 1.02 %, even the best performing growth rates for natural resources elements, being diffuse at -0.43%, reveals a growth rate gap of 1.45%. At the extreme end of the scale according the Isham et al (2005, p.12) that gap exceeds 3.5%, which explains why when taken as a whole the differential between the two types of exporters increases to 3% by the end of the period being studied. 2.1.1 The African Link The majority of the research that has explored the â€Å"resource curse† has determined that this phenomenon has been particularly noticeable in the case of poorer and developing nations where, despite their high levels of natural resource and reserves, growth levels have been low or even regressed, in stark contrast to the performance of other nations that do not have the luxury of natural resources (Rodriguez and Sachs 1999, p.277 and Sach and Warner 2001, p.828). For example, Mehlum et al’s (2005) research concludes that many African countries with such resource levels have been afflicted by the curse, particularly those in the Sub-Saharan regions, which include Nigeria, Zambia, Sierra Leone and Angola. In support of the link between the â€Å"resource curse† and the African nations, researchers have used data from a variety of sources as evidence to support their hypotheses, most of which is based upon the analysis of GDP. For example, using a similar period to Isham et al (2005) (see figure 1 on page 8), the World Bank â€Å"World Development Indicators† show that, although rich in resources to a similar if not better level than other developing countries, the Sub-Saharan regions of Africa have fared much worse than others (see figure 4), Similarly, long-term patterns, dating back nearly two centuries (see figure 5), are used to support the fact that the curse is caused by factors outside of the possession of the resource itself. 2.2 The causes of the â€Å"Resource Curse† In investigating the cause of the â€Å"resource curse,† current literature has a divergence of views relating to the economic, political and other elements that conspire to create this environment. Various researchers have identified a number of different factors as being the root causes of, or significant contributory reasons for the â€Å"resource curse.† 2.2.1. The â€Å"crowding out† cause Of the most widely cited research, which includes the studies of being Sachs and Warner (2001) and Gelb (1998), describe the main issue as a effectively being a â€Å"crowding out† situation, whereby the concentration upon the natural resource has led to a situation where other exportable resources, such as manufacturing and production exports, which are considered to be important elements in a nations economic growth process, are at worst effectively neglected, or at best considered to be of reduced importance. This theory is supported by other research. Torvik (2002, p.455-456) acknowledges that this â€Å"crowding out† theory works on the premise that â€Å"an increased amount of natural resources then lowers productivity in all [other] sectors† of the economy. One popular variation of this model that has been developed is known as the â€Å"Rentier† state model (Torvik 2002, p.455). Torvik (2002, p.456) explains that in this case the negative impact on growth is generated by the fact that as powerful groups are attracted to the natural resource, they create an overcrowding within the natural resource sector, which again has the effect of contributing to the lowering growth rates. Sachs and Warner (2001, p.833) suggest that the major elements of â€Å"crowding out† are the fact that perceived and actual increase in wealth generated from the resource increases demand and leads to higher prices throughout the economy, thus making manufacturing less competitive, particular in respect of international trade. In addition (Ibid, p.835) the research also suggests that another contributory factor is the loss of â€Å"knowledge† available to manufacturing and other sectors caused by the profit attraction of the natural resource sector, which adds to the diminishing of the competitiveness of these sectors. Innovative entrepreneurs will be attracted to take their resources away from production and into the natural resource sectors, which offers them a higher level of profit and return at a relatively lower costs. In comparison therefore, the manufacturing areas are seen to be unproductive (Mehlum 2005, p.5), which is bad for economic growth. This explanatio n concurs with the results of Sala-i-Martin and Subramanian (2003, p.15 and Le Billon, 2005, p.5), which indicates that the movement of labour away from agriculture to natural resources has contributed to a near halving of this sectors share of GDP in many countries, as evidence in Nigeria. 2.2.2. Quality of institutions Other research, in dissimilarity to the popularity of the popular Sach and Warner view (Mehlum et al 2005, p.5), promotes the theory that the causes of â€Å"natural resource curse† are more closely related to the political and institutional failure to deal with the revenue, or â€Å"Windfall Gains† as Dalgaard and Olsson (2006, p.1) and others describe them. Sala-i-Martin and Subramanian (2003, p.8) findings in a study of the economic growth situation in Nigeria suggest that natural resources are â€Å"detrimental to institutional quality.† However, their research does find that this adverse effect of institutions appears to be more significant with oils and minerals than other natural resources and that once there is control within these institutions, the negativity impact ceases (Sala-i-Martin and Subramanian 2003, p.12), a view that Isham et al (2005, p.21) takes further by suggesting that the type of resource will â€Å"play a large role in shaping what kin ds of institutional forms exist and persist.† An efficient, effective or strong institution or government can be modeled largely on the western demographic models, where this is a large degree of interaction and connection between the political forces and the citizens, with transparency and accountability being an integral part of the institutions structure (Moore 2004, p.313). Similarly, in cases where strong institutions exist, he likelihood is that the natural resource will be owned by the people, (albeit it through shares in corporations), rather than the state itself. The only connection between state and resource will be through the taxes that it levies on the commercial profits made from that resource. Weak institutions tend to be less democratic, in some cases being controlled by dictators and military juntas that pay little heed to the needs of the citizen, preferring simply to concerns themselves with the needs of their power and personal wealth. Mehlum (2006, p.5) studies also confirm the institutional quality as being an important influence, in this respect leading to their conclusions that the â€Å"resource curse† is more prevalent in countries that have weak or poor quality of institutions, being those that are undermined by ethnic or non-democratic processes (Le Billon 2005, p.24). They describe these weak institutions as being â€Å"grabber friendly† A survey carried out during the course of their research found that out of 87 countries examined, only 15 were considered to have level and quality of institutions necessary to be effective in avoiding the affects or the curse. As with the earlier discussion on GDP, Isham et al (2005, p.13), again provides us with data support of the institutional influence (see figure 3). If we look at the top half of this list, which represents the elements of weak institutions, we see that whilst manufacture exporters still achieve a growth pattern, albeit small, resource exporters are afflicted with negative growth. Conversely, with the stronger elements of institutions in place, the natural â€Å"resource curse† is not apparent, with the resource exporters showing all the signs of reasonable levels of economic growth. Whilst agreeing with the principle that, particularly in Africa, institutions and the political structures are weak and therefore at risk from the â€Å"resource curse,† Dalgaard and Olsson (2006, p.4) add another element to the discussion, claiming the â€Å"windfall† element of the resource rent, added together with the level of Aid the country receives, exacerbate the problem of â€Å"resource curse.† Likening the resource windfalls to a lottery win Dalgaard and Olsson suggest that, faced with this relatively sudden new found source of wealth, the institutions are not sufficiently experienced in being able to administer it effectively and this produced a negative effect in institutional areas such as the rule of law and levels of corruption (Dalgaard and Olsson 2006, p.25). This is evidenced by the fact that â€Å"An IMF report on Angola, for example, suggests that close to $1 billion disappeared from the state coffers in 2001 alone, due to corruption, while fiscal discrepancies over the previous several years represented between 2 and 23% of the country’s GDP† Ross, 2003, p.9). 2.2.3. The â€Å"Dutch Disease† model To the extent that the â€Å"Dutch Disease† model relates to the potential for a reversal of industrialisation Sach and Warner (2001) favour the â€Å"Dutch Disease† model, although they do not support the element of this argument that suggest an increase in workers wages in all areas of the economy (Sach and Warner 2001, p.836). As the term indicates, the â€Å"Dutch Disease† theory was based upon the events experienced by the Netherlands following the discovery of natural â€Å"gas† resources within the country’s national waters in the mid 1950’s (Gylfason 2001, p.2). The elements of this theory rest upon three main areas. Firstly, the fact that the upward movement of the currency for a particular country following the discovery of resources exacerbates the manufacturing and servicing sectors, in that it reduces their price competitiveness (Gylfason 2001, p.2 and Sach and Warner 2001, p..834). As Torvik (2002, p.2) indicates, because it is because â€Å"changes in the composition of production that determines the level or the growth rate of productivity,† that the upward movement of currency prices has such a negative impact on internal production and welfare. Secondly, historically is has been noted that the global prices of resource materials is subject to a high level of fluctuation, which is caused by changes in the stocks, both in the resource rich country and other areas of the world (Gyflason 2001, p.3) For example, in the case of Norway, if other gas resource rich nations run out of supplies, the Norwegian resource will increase in value. Finally, the combination of the two previous elements causes financial exchange rate instability (Sach and Warner 1997 p.358 and Gyflason 2001, p.4). Gfylason suggests that this has an adverse effect on other areas such as foreign investment. Nevertheless, irrespective of these factors, in the case of Norway, their effect was limited and this is an element that Gylfason concentrated his efforts on discovering why this country’s economic performance did not perform in the same adverse way that other â€Å"OPEC† countries experienced as a result of the discovery of natural resources, which included nations located in Africa, nor did it have the same longer term effect. The discovered differential relied upon two main elements. Firstly, that Norway had been a developed nation for some years prior to the discovery and, secondly, as a result of the development position financial, social and political institutions in Norway were more â€Å"mature† (Gylfason 2001, p.10), therefore more likely to be able to avoid the adverse effects of the â€Å"resource curse,† which was not the case with other OPEC countries. These results reinforced the conclusion of other researchers in regards to two areas, these being that there is a relationship between â€Å"weak institutions† and the curse of natural resources and that the negative elements of the â€Å"Dutch disease† is essentially only a major issue for such institutions. 2.2.4  Other theoretical economic arguments Recently, economists and observers have sought to further clarify the theoretical argument relating to the â€Å"curse† of national resources by looking at other potential theoretical arguments, which would both support and potentially extend the existing literature on the subject of the â€Å"resource curse.† For example, Dalgaard and Olsson’s (2006, p.25) research indicated that there might be a connection between foreign aid and the resource curse, particularly in African nations that are the recipients of such aid. Whilst stopping short of agreeing with Burnside and Dollar’s (Quoted in Dalgaard and Olsson 2006, p.13) conclusion on this subject, this being the â€Å"aid only stimulated growth if accompanied by sufficiently sound macro-economic policies: e.g. low inflation and budget balance,† it was felt that further research into the systems and processes used for the distribution of aid was needed, as the likelihood of a connection with the eco nomic performance of a recipient nation could not be discounted. Another argument that has been put forward as elements of cause for the â€Å"resource† curse is the impact of an individual nation’s culture and geographic position. Dalgaard and Olsson (2006, p.19 and 20) believe that these issues should not be discounted. They point out that culture has been found to have a direct link to the level of corruption that exists within a nations political institution. In terms of geographical position, Dalgaard and Olsson’s study promote two arguments to support this being a classed as a source. The first of these is related to size, where it is argued that the greater the size of the country, the more extensive will be its institutions and, therefore, if the culture has a high corruption level, this will be increased (Dalgaard and Olson, 2006, p.19). Secondly, there is a potential for a historical link between geographical and institutions (Dalgaard and Ollsson 2006, p.14). In this case, the study sets the case for arguing that, because of the problems associated with areas such as the tropics, which includes high mortality rates and tropical climates, the early influence of Western institutional structure did not expand into these areas of the world as they had in others. As an example, they cite the colonial spread, which was not as widespread in the African continent as it was in places like India. Thus, this element of the theory is based upon the fact that those countries who had a foundation of good western institutions being better able to escape the â€Å"resource curse.† Phenomenon. However, other researchers do not agree with this scenario. Sach and Warner (2001, p.2 and 3) argue that using these determinates within the resource curse studies would lead to anomalies id data, with some countries appearing to be â €Å"high-natural resource† economies simply as a result of the inadequate or negative performance of other area of their economies, and visa-versa. In this regard they hold that â€Å"geography and climate variables do not eliminate the natural resource variable.† Sach and Warner 1999, p.5). Finally, but not totally unconnected with other arguments, is the argument relating to the problem of managing sudden excess. Referred to within Dalgaard and Olsson (2006, p.1) as the ineptitude of institutions at managing â€Å"windfall gains,† other reason it is the false perception of security that accompanies natural resources, which effectively provide â€Å"people with a false sense of security and lead governments to lose sight of the need for good and growth-friendly economic management, including free trade, bureaucratic efficiency, and institutional quality† (Gylfason 2001, p.7). Taking a slightly different tangent, although with a similar vein, Rodriguez and Sach (1999, p. 278), define that these countries are effectively â€Å"living beyond their means.† The view here is that resource rich countries are consuming the revenue from this resource without taking into account the fact that, unlike other areas of production, the stock of these resources can not be produced or expanded as quickly, therefore creating an increasing gap between revenue and expenditure, which eventually lead to a situation where the nation will reach a point where future revenue may have to be mortgaged to meet current expenditure. In summary, perhaps Gyflason (2001, p.8) puts it succinctly when he states that, irrespective of which argument one supports or how the individual may qualify it in academic terms, the core agreement is that â€Å"an abundance of natural capital may erode or reduce the quality of social, human, and physical capital, and thus stand in the way of rapid economic growth.† 2.3 Civil war and economic growth Irrespective of the divergence of views expressed within the literature outline in the previous sections of this chapter, one area that almost all are agreed upon is that in addition to the lack of economic growth resulting from the â€Å"resource curse,† this growth can also be adversely affected by the political stability of the nation, particularly where conflict and civil war is involved. The common definition of civil war is that conflict which leads to one thousand deaths or more. Similarly, the popular western perception is that the causes of such conflicts are caused by racial or religious tensions (Collier 2000, p.95-96). Whilst this may be true in terms of the sides taken in internal power struggles (Keen 2000, p.24), in most cases these are fuelled by a struggle to control resources. To this extent there is an economic element (Keen 2000, p.22 and Berdel and Malone 2000, p.28). Mehlum (2003, p.275) and Keen (2000, p.29) reinforce this viewpoint with the findings that those involved with these conflicts include elements from all aspects of society, such as rebels, military, political and commercial factions. In other words, particularly in countries with weak political controls â€Å"a war may be seen as continuation of economics by other means† (Keen 2000, p.22) rather than a simple clash of ideologies. Methlum et al (2005, p.6) confirm this argument, showing that in a country that have institutions and governments deemed to be weak, which is the case in many African states, this results in a situation where â€Å"the government is unable to provide basic security.† They conclude that such a situation creates an environment that fuels an increase in violence and civil wars, with control of natural resources being the main success target of the conflict and, ironically, used to finance many of these activities. Providing evidence of this in his study relating to the phenomenon of conflict diamonds, Olsson (2004, p.3) states that in countries with rich resources and weak institutions, natural resources can often lead to a triangular conflict environment of â€Å"a ruler (the prey) in control of a flow of natural resource rents, and a rebel (the predator) who might choose to prey on the ruler’s natural resource,† with the ordinary person in between these, that can create an adverse economic effect. Because the rebel wants to appropriate the natural resources, this forces the ruler to invest resources in defence, thus lessening the resources available for production and reducing the potential for economic growth. As is indicated later in this same research (Olsson 004, p.14), this situation of fuelling conflict and lining the pockets of dictators is not just limited to diamonds, but extends to a number of other natural resources. Other literature has confirmed the connection between the potential for conflict and economic growth. Rodrigueaz and Sach (1999, p.19) commenting upon the aspect of nations living beyond their means, found that, in the case of Venezuela, this leads to unrest and conflict. Dalgaard and Olsoson (2006, p.8) also identified that the high level of natural resources, when combined with weak government and low productivity in areas of production not related to natural resources, produced a â€Å"higher risk of potential conflict.† Both of these studies concluded that these conflicts served to deepen the adverse effects on economic growth. As Rodrik (1998, p.3) showed in his research, the biggest falls in GDP rates post 1975 occurred in countries that were socially divided and unable to manage conflict and these countries, more often than not, were those with high levels of natural resources (Wagner 2007). Thus it is concluded that civil war can serve to significantly damage economic growth (Rodrik 1998, p.3). 2.4 Natural resources role in Civil war One of the recurrent themes in the literature relating to natural resources, as has been identified within the previous sections, is the impact that natural resources and economics has upon social unrest and conflict. For example, Le Roux’s (2004, p.3) research suggests that as