Private and Public Security

To begin, I will state that public security and private security need each other to survive in their fields. Unfortunately, public security or state police officers, don't usually have enough personnel nor can they be everywhere all over town. There Just isn't enough man power. Public safety gets paid by taxpayers to patrol their neighborhoods, schools, large banks, airports etc. They don't have the time or people to Just hang around certain neighborhoods all day and night or small businesses. This is where they benefit from public security and their unique responsibilities.Like everything, sometimes these relationships are like a marriage. Some work and some don't, I guess it depends on demographic and education. I know in Miami, Fl where my husband served a couple of years as a private security officer they got a lot of support when they needed to make an arrest (depending on the neighborhood or gig) but when it came to having the police patrol areas that were hot in between shifts , they were virtually nowhere to be seen. This left them with a lot of work load and relying on their training and personal strategies on how to deal with the days work.My husband said the officers who used to patrol the areas he was in would tell him to rely on his weapon because the cops were Jerks and sometimes took too long to show up to a scene. My husband is a social butterfly. He loves to talk to people and make them laugh and become your friend. I'd say he could be an excellent Disney officer! With this being said, he made it his mission to befriend the counties cops and work with them. In less than 3 months, he was friendly with two cops and had personal contact exchanged.He brought them food whenever he got a chance and looked out when he left his shifts and made sure all was good on his drive back home, grocery store, school etc. They became a mini team and my husband felt very supported by the local public officers. I felt comfort knowing they were a team and my husband had backup out in the real world. My husband's security firm was very small and unrecognized but they had very solid clients. Some of these clients included deiced agencies, high end condominiums, high end bars in downtown, and other good paying residential areas.They had contacts with these kind of places. My mom asked him once why such wealthy condos hired them instead of relying on local police. These were after all, higher tax paying individuals' right? If you know Miami, you know that all homes that were worth millions of dollars in neighborhoods like Cutler Bay don't want to live in Caribbean Blvd near the Turnpike. Every ritzy neighborhood whether residential or commercial, had a low class poor neighborhood r high crime neighborhood border lining it. This is where they come in.Some of these areas police department had this annoying habit of not coming to the crime scene immediately even if you did live in the Vicar neighborhood. This is where private security is compensated a nd supported by the communities and public officers. My husband guarded a hospital branch and condominium from pm to Sam 4 days a week. Cops were not always available to come and make a report about a parking lot light that was out, a missing sign, a loud teenager at the pool, a dog whose winner keeps letting them relieve themselves right in front of some front doors.I am sure that my husband being there responding to these tedious little things that may seem insignificant but are actually relieving a burden off the officers. On the other hand, state and local police were tending to the streets, following up on emergencies and minor incidents, traffic violations, domestic calls etc. They relief their workload and works in their favor to have private officers taking care of other issues within the same community/city. Some people are scared and think that privatized security is eke authorizing vigilantism, I actually recently read that somewhere online.This cannot be proven anywhere in the US. In order to secure our neighborhoods, we must be willing to pay. I mean actually pay out of our pockets. If you are not willing to pay, don't complain about the pudgy grandpa that is napping at Bam instead of securing your investment. You get what you give and it can be a perfect harmony in between public and private agencies especially if they're willing to train together and work together as a united force called for different area codes.

Global and regional environmental Essay

People across the globe are being affected by global and regional environmental changes. The drastic environmental problems such ozone layer depletion and climate change are as a result of over consumption, unsustainable life styles and unhealthy patterns of development (Harris, 47). Environmental problems are likely to hit the marginalized and the poor first often with drastic consequences but latter they will also affect the privileged. Unless these environmental problems are curbed they are threatening to cause havoc to the life support systems and the ecosystems. This will therefore lead to an immense and unprecedented crisis for the whole humanity. To achieve sustainable development and the health of the environment it requires drastic changes in the current global order and formulation of the alternative ways of thinking. Within environmental movements there are huge wealth of experiences, ideas and visions of what an alternative environmental sustainable and people oriented societies can look like. Environmental destruction has always been part of the human history (Harris, 48). Throughout time the problems of the environment have been important factors affecting the health of people both at regional and global level. The pressure on the environment has increased enormously as a result of changing scales of the human society increases and development of the technology. This problem is fuelled by the runaway global economic systems which have created over consumption (unprecedented affluence) and enormous level of poverty. The environmental problems now threaten to cause irreversible harm to the ecosystems and increase inequalities on a global scale (Pickering & Owen, 117). Some of the environmental problems are immediate local problems whose their causes can be known and their solutions be identified. On the other hand other environmental problems are incredibly complex and they are often complex to handle. Such environmental problems involve much uncertainty and affect the whole globe and are the result of combined human behavior. These problems are maintained and embedded on the societal structures (Harris, 50). Some critics argue that environmental problems are as a result of the present day population growth especially in the third world countries and natural resources depletion in the highly industrialized countries (Harris, 50). Alarmist argue that the explosive population growth in less developed countries and overexploitation of the non renewable resources by the highly industrialized countries are combining to produce sets of condition which cannot be sustained in the long-run by our finite world. The population problems of third world countries constitute an impediment to social economic development and can pose a threat to depletion of natural resources. However relatively low crude population densities in many third world countries with exception of some few areas they do not produce population pressure on the natural resources (Harris, 52). Most of the third worlds countries have an even population distribution and few urban centers are becoming overcrowded. High rates of population growth in third world countries is as a result of high and constant fertility that have possibilities of reducing mortality due to the improved health facilities. Because of high proportion of children and high patterns of fertility heavy dependence burden is produced within the populations in most third world countries. The heavy dependence implies large expenditures of provision of employment and education for the growing population (Pickering & Owen, 134). Most bureaucrats, economists and political leaders in third world countries especially in Africa argue that third world countries in Africa have abundant resources which have not yet been tapped. They also argue that large area in Africa have not been inhabited and therefore the political question that population growth put pressure on the limited natural resources should not be taken seriously (Harris, 53). There is need for the political leaders, economist and bureaucrats to know the prospect of the third world countries in terms of the resources base that can absorb the population problems of the third world countries (Harris, 54). In comparison to other industrialized countries for example Europe nations the land under cultivation in third world African countries is three times higher per capita, the livestock per capita is two times higher, the grazing land per each unit of livestock is a bout seven times higher while the mineral resources out put of third worlds countries in Africa constitute one tenth of the mineral output of the whole world (Harris, 54). The primary energy resources of the third world countries are enormous which are comprised of natural gas and petroleum product coal and hydro power for example 32 percent of world hydro power which can be exploited, 12 percent of reserves of uranium and 60 percent of thorium reserves are found in Africa third world countries. Despite the abundant resources of the third world countries most countries in Africa are under developed (Harris, 57). It would be a weak argument to suggest that the high population growth in the third world countries is the root cause of their underdevelopment. However the high population growth of the third world countries is an important factor that impedes development. The rapid population growth constitutes pressure on the arable land. Several million hectares of land are being degraded in third world countries (Pickering & Owen, 204). The degradation of land can be linked to population pressure and poverty, values and attitude of people weak tenure systems and land management and drought which often results in over exploitation of the natural resources such as the trees used for fuel wood, overgrazing deforestation and unsustainable agricultural activities. Degradation has decreased land productivity, increased desertification and causes loss of arable land in most third world countries (Pickering & Owen, 206). As a result of degradation in the third world countries there is less food than can be produced in degraded lands and also the availability of biomass is greatly reduced. Land degradation also makes the ecosystems to be less resilient and increases chances of malnutrition and susceptibility of diseases in the local populations. Third world countries like china, Ethiopia, Brazil, Nepal, India and most African countries have caused much of environmental degradation. In recent time the respective government has began to introduce policies to minimize the extensive environmental degradation that their countries are facing (Pickering & Owen, 213). The environmental policies have been developed soon after formation of and applying pressure by several activist groups in the field of environment. Initially before the activist groups applied pressure the governments in the third world countries did not see any needs to develop environmental policies. Environmental degradation is only the problem of the third world countries and most often thirds world countries have make do with what they owns and usually they compete with large populations (Pickering & Owen, 208). Once a natural resource for example water is degraded it become of little use to the people. On the other hand western or industrialized countries have a higher standard of living than third world countries or less developed countries. In developed countries the communities have access to electricity, clean water, housing, employment, refrigeration, clothing, food, heating, hospital, schools, medicines, machinery, manufacturing, communication and road thus in the process they consume much of the resources (Pickering & Owen, 209). The communities of the third world poor countries do not have access to these things and they rely on what they can hunt, gather or grow. People in the third world countries acquire other things if they have surplus produce to sell and therefore are disadvantaged to gain access to power supply, telecommunication, railways and roads thus becomes difficult to access the few schools hospitals etc and therefore third world countries are not degrading the environment as much as the developed nations (Pickering & Owen, 210).

The reaction of Surviving Maximum Security Essay

The reaction of Surviving Maximum Security - Essay Example The officials don't really give a "hand of steel" to the prisoners; they just let the inmates do their own way-that's the problem with democracy sometimes, even behind bars. They just seem content to oversee and control the situation within the prison cells (disturbances and the like) but they don't really make any effort to prevent further violence nor they don't give any chance to or help the prisoners to rehabilitate themselves, or even just to discipline them consistently (if not utterly harshly) and reasonably. From what I understand on this particular report, particularly about the California State Prison in Sacramento, there seems to be no likelihood of rehabilitation, no chance of giving those prisoners a lease of life anew; instead the inmates not just rot there but also have a sure possibility to commit further and graver crimes throughout their lives inhabiting in those "slammers". And in this regard, I see this as no more different than the in other countries' prison situ ations. But having said this, I find prison conditions in America an interesting one, and

Influence of Bhagavad Gita Essay Example | Topics and Well Written Essays - 750 words

Influence of Bhagavad Gita - Essay Example   He further insists Arjuna must do this in devotion to the dharmic order present in the Hindu society. In other words, Krishna is trying to advise Arjuna on the importance of maintaining his commitment to the dharma. Since this is the moral order that upholds individual, society and the heavens. Arjuna is easily compelled by this advice because it makes him believe that when he is detached from the material world, the results of every action he does will not be attached to him. Therefore, there are nearly no fixed morals outside the social hierarchy context. Arjuna simply understands that in order for him to fulfill his sacred duty, he must first consider fulfilling his dharma. Krishna further compels Arjuna by teaching him the essence of embracing the discipline of devotion (bhakti-yoga). Here, Krishna explains that devotion, action, and knowledge are the means through which one can get freedom from samsara. However, Gita seems not to have answers to the crucial questions concern ing the significance of dharma to the â€Å"law† or â€Å"morality† that its etymology can have. One may wonder whether the supposition that Arjuna’s dharma is to conquer his cousins in battle really embedded in nothing more than an incomprehensible system of social ranking. This would simply mean that the origin of war could be established in a conflict of almost any kind. Whatever seems clear is that some of the philosophies adopted in the Bhagavad-Gita are an inadequate basis for the laws of moral conduct; the most considerable concern is the nature of killing (Hershovitz 86). Gita, further has an explanation of what â€Å"Just War† means. In most instances, to kill is simply to put to or to cause suffering to an individual.  

Discussion #5 Business Ethics Essay Example | Topics and Well Written Essays - 250 words

Discussion #5 Business Ethics - Essay Example ltinationals to comply with the laws governing business an operation in other countries since each of them has distinct regulations which apply to them. For instance, the multinationals need to know and accept to adhere with the laws governing importation, exportation, recruitment, employee welfare, Corporate Social Responsibility (CSR) and environmental conservation. Failure to do so might expose them to lots of legal tussles which might in the long run, interfere with their success. On the other hand, it is my considered opinion that these multinationals should offer reasonable and fair salaries and wages to their employees. These can be determined by referring to the local and international labor laws, government policies on wage limits, demands from the trade unions, level of expertise and costs of living. The remunerations offered to each category of employee should be acceptable by all the involved stakeholders. This is the best way through which these multinationals can satisfy their workforce and appeal to the general public as they strive to accomplish their short and long-term

Nonconsequentialist Theories Essay Example | Topics and Well Written Essays - 250 words

Nonconsequentialist Theories - Essay Example The essay "Nonconsequentialist Theories" talks about the Non Consequentialist theories that state that consequences should not find their way into our moral judgments. It means that actions are to be judged good or right in line with other criteria i.e. divine command or intuitions. They are categorized as; Act non-consequential theories and Rule non-consequentialist theories.Rule Non-Consequentialist theories are of the idea that blanket rules should be employed to govern the society since they will introduce a greater good. One of the major examples in Rule Non-Consequential theory is the divine command theory that claims that our only source of morality or moral authority is from a higher source, a spiritual deity like God. On the real world, an example is the adherers of the Catholic Church. Many of these followers base their moral values on what is written in the Bible. They believe whatever the scripture says or its interpretation by the church leaders to be moral. Two examples are the Catholic Church’s opposition to birth control and homosexuality. These stands would never be agreed upon by secular reasoning alone, it takes religion. Act Non-Consequentialist Theories are of the idea that we should not employ general or blanket rules but act on a case by case basis. The theory states that only individual acts and situations count morally. The theory is against generalization since every situation is different. They are based on emotions and intuitions to be able to come up with moral conclusions.

Discussion Board 4-1 Assignment Example | Topics and Well Written Essays - 250 words - 4

Discussion Board 4-1 - Assignment Example Working with a client suffering from learned helplessness can prove to be very challenging and unworkable (Ungar, 2011). Special techniques and approaches have to the present and innovated to help tackle the complex counseling environment usually presented by learned helplessness. One of challenges working with a client suffering from learned helplessness is that they are also reluctant to take advice and counseling. This makes it difficult for counselors to succeed in engaging the clients in negotiation and navigation. Dully, a counselor fails to understand or know about the problems of clients. Another common challenge encountered when working with clients suffering from learned helpless relates to the difficulty to accept changes (Ungar, 2011). Victims of learned helplessness tend to be contented with the little they usually have as well as their contemporary conditions that, however, suffocates them. Counselors may struggle and apply many strategies, but fail to persuade individuals with the condition to adopt normal lifestyle. At sometimes, a counselor may consider transferring a client from one region where abuse erupts to a calm place designated for recovery alone (Ungar, 2011). The clients set to gain such favors may resist and insist on staying in th e same condition for a longer time. Some battered women have refused attempts by law enforcing officers and counselors intending provide them with alternative shelter, or arrest batterers after long time of enduring

Research Paper Essay Example | Topics and Well Written Essays - 3750 words

Research Paper - Essay Example Moreover, in case that an agreement is developed between a firm and an advertising agency, this agreement needs to be aligned with the firm’s culture and aims. Otherwise, the chances for the survival of this agreement would be limited. In the case of General Motors, another aspect of the relationship between the firm and its advertising agency has been given: the above relationship reflects specific interests; if these interests are changed, then the cooperation between the above parties may be ended. In this context, General Motors had to terminate its cooperation with the advertising agency Publicis Groupe SA., almost a month after the above agency replaced Campbell-Ewald (an agency which had the responsibility for the advertising campaigns of Chevrolet since 1919). Indeed, in May 2010, General Motors switched to Goodby, Silverstein & Partners (part of the Omnicom Group) from Publicis Groupe S.A. – a cooperation that lasted – as noted above – for, just, about a month. The decision of GM to switch to Publicis Groupe SA will not particularly analyzed – since it was for an agreement that last for about a month. Rather the reasons for the termination of the firm’s cooperation with Campbell-Ewald – a cooperation, which started in 1919 – and for the development of an agreement with Omnicom Group need to be further analyzed. In accordance with Krisher (2010) the managers of GM did not give particular explanations for their decision to terminate their cooperation with Campbell-Ewald; on the other hand, the managers in GM had noted that there were problems in the performance of Campbell-Ewald – especially regarding ‘advertising and marketing’ (Krisher 2010). In the past, the above agency had significantly supported the expansion of Chevrolet across USA through the well-known ads of ‘See the USA in your Chevrolet’ (Krisher 2010), an ad of 1950s and ‘Like a Rock’ (Krish er 2010) in 1990s. It is suggested that GM should reconsider its decision to change its agency, taking into consideration the success achieved for the firm in the past through the ads of Campbell-Ewald. On the other hand, in May 2010, GM changed its marketing director; the new marketing director of the firm, J. Ewanick, had previously worked in Hyundai; there he managed to achieve a significant increase of the firm’s sales through the Goodby, Silverstein & Partners (Woodall 2010); the first target of J. Ewanick as the marketing director of GM has been the change of the firm’s traditional marketing strategy – which has been characterized as too conservative (Woodall 2010); the switch in the firm’s agency – from Publicis Groupe S.A to Goodby, Silverstein & Partners – should be regarded as part of this effort (Elliott 2010). b. Find examples of advertising and other promotional programs that were developed by the old agency and examples of ads developed by the new agency. Do you think the advertising campaign and messages being developed by the new agency are better and/or more appropriate for the company than those of the old agency? Why or why not? The effectiveness of the two agencies, Goodby, Silverstein & Partners (current agency of GM, from May 2010 onwards) and Campbell-Ewald (agency of GM from 1919 up to April 2010) would be examined by referring to examples of their advertising practices. The examination of the advertising pract

Substance of a transaction Essay Example | Topics and Well Written Essays - 1250 words

Substance of a transaction - Essay Example According to any international standard,financial statements should present fairly the financial position and cash flows of an entity.The substance of a transaction means the reality of an actual event that has taken place which needs to be accounted for. If information is to represent faithfully the transactions and other events that it purports to represent, it is necessary that they are accounted for and presented in accordance with their substance and economic reality and not merely their legal form.It is, therefore, of absolute importance that the actual substance of the transaction is accounted for in order to meet international regulatory requirements for financial reporting as well as achieve fair presentation standards and a higher level of transparency in the books of accounts to avoid any audit objections.The generally accepted accounting principles, more commonly known as GAAP, have evolved as an important term in accounting and signifies all the rules, from whatever sour ce, which govern accounting. These principles may derive from sources like local company legislation, national and international accounting standards, statutory requirements and stock listing requirements yet they are based on the foundations of common principles, namely the going concern assumption, accrual basis of accounting, materiality and substance over form. The GAAP which lays down the concept of substance of transactions is called "substance over form". The underlying principle is that although substance of a transaction may be the same as its legal form, for a number of transactions, the legal form does not indicate the true substance of a transaction and must make economic sense in the financial statements reflecting the reality of an actual event that has taken place. Such may be the case in various sales purchase agreements, leasing, insurance etc. As an example, some transactions may have the form of an outright purchase of capital equipment, whereas in fact the substa nce of the transactions is a lease of (or perhaps an option to purchase) the equipment. Such transaction also attract audit attention and are important from taxation point of view. Thus we always consider the real substance of a transaction instead of its legal form. In this manner, the concept of substance over form plays a dominant role. Accordingly, it delivers the fact whether the financial statements reflect the financial reality of the entity rather than mere legal form of the transactions and events which bring them about. The underlying principle is relevant to management's contentions that the financial statement items are complete, valid and accurate, and in particular that the financial statement items are exact as to presentation and disclosure. The FASB considered that substance over form was redundant because without it have representational faithfulness cannot be achieved. From auditor's point of view, transactions where the substance of the transaction differs significantly from the form are considered vigilantly. In simpler words, auditors try to find a transaction or groups of transactions that do not make economic sense or emerge as they have been made to change the way in which an account balance appears in the financial statements, rather than reflect the reality of an actual event that has taken place. These transactions are commonly recorded around balance date and often appear overly complex. "A well-known example from the past was Enron group's use of over 3000 Special Purpose Entities (SPEs) structured in such a way as to enable the company to avoid including extensive debt in the consolidated financial statements of the group. This has led to suggested/actual revisions to various accounting standards throughout the world. These revisions require SPEs (such as trusts, partnerships and non incorporated entities) to be consolidated when the substance of the relationship between an entity and the SPE indicates

Annotated Bibliography Essay Example | Topics and Well Written Essays - 2000 words - 4

Annotated Bibliography - Essay Example According to the authors, the need is to establish a strong link between theory and practice in order to improve the supervision of students’ activities within the classroom. This article also relates to the subject of supervisory principles in education in a sense that it provides an effective framework for supervisors’ training which teachers can use to improve their supervision skills. The purpose of this article as mentioned by the authors is to identify the key empirical and theoretical considerations that should be able to support the need of effective training for educators and supervisors. The authors have explored the content of different training courses to know whether an appropriate model of supervision exists in the field of medicine or not. In this article, the authors argue that if there is no explanatory model in place for training, the training of supervisors should be based on relevant existing information about models of supervision and learning processes. This article is based primarily on the need to improve teacher efficacy and supervision in the education resource-room context. The objectives of the research were to prove the validity of the Gibson and Dembo Teacher Efficacy Scale in the special education context, as well as to examine the association between the use of instructional supervision and teacher efficacy. The authors of this article examined the relationship in order come up with the judgment about the strength of the relationship and its role in improving students’ learning. The article contains a good amount of information on the relationship between teacher efficacy and instructional supervision. In this article, the author discusses the importance of translating the principles of managing human behaviors and organizational activities into successful business practices. The main idea presented by the author is that the

Breast Cancer Essay Example for Free

Breast Cancer Essay Is it true that wearing ‘underwired’ brassieres bring about cancer? Can breast cancer be treated? Are there signs and symptoms that individuals can check to know if breast cancer really occurs in them? These are just some of the essential questions that this paper will attempt to answer. It will also attain to reintroduce breast cancer’s definition, history of recovery, signs and causes, statistical information, diagnosis, breast cancer myths, risk factors, as well as, treatment. Definition   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   A 34-year-old woman, named Susan has been told by the family doctor that she has a breast cancer. When she asked about it, the doctor initially explained it as â€Å"a type of cancer that forms in tissues of the breasts, typically in the ducts or the areas where milk goes through till it reaches the nipple, as well as, the lobules or the glands which produces milk† (National.. n.p.). History of Discovery The doctor also told Susan that the aforementioned disease has been observed in Egypt way back in approximately 1600 BC (Wikipedia n.p.). Back then he stated that, â€Å"tumors of the breasts were addressed or treated by cauterization through an instrument they technically refer to as the fire drill though they openly admitted that there is no cure for such† (Wikipedia n.p.). The doctor also added that, centuries later experts found â€Å"a relationship between the lymph nodes found in the armpits and cancer of the breast, in fact, Jean Louis Petit and Benjamin Bell were the first ones to get rid of the lymph nodes, breast tissue, as well as, a primary muscle in the chest† (Wikipedia n.p.). The doctor, to make Susan stay calm, mentioned that such surgery has been very successful thus it was also done by William Halsted during the next century or 1882 to be exact, in fact, until the 1970’s, this procedure remained to be the most successful surgical procedure to address the aforementioned condition (Wikipedia n.p.). Signs and Symptoms   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Since Susan was complaining about the physical changes in her body that she observed prior to be being diagnosed as having breast cancer, the doctor also told her that the signs and symptoms of breast cancer include the following: First of all, if there is a lump in the breast then there is a possibility that a person has breast cancer (Mayo.. n.p.). Second, there is also a probability that breast cancer may occur if the nipple/s of an individual discharges blood and has a lump that goes along with it (Mayo.. n.p.). Third, there may be an occurrence of breast cancer if there exist a â€Å"retraction, flattening, or indentation of the nipple† (Mayo.. n.p.). Fourth, if the size of the breast and its contours changes, then it is possible that breast cancer is in existence (Mayo.. n.p.). Last but not least, redness of the skin on the breast area may signify breast cancer as well (Mayo.. n.p.). Upon hearing the aforementioned, Susan remembers that she mainly complained about sign symptoms number one in the right breast, something she has been complaining about for about 16 months. Statistical Information   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Susan has been feeling weird and a little scared and so she decided to look into medical and health magazines, internet sites, as well as, books to check if she is going to make it or not, if she’s going to die etcetera and here’s a statistical information that she stumbled upon: 1) â€Å"Deaths brought about by breast cancer already reached forty thousand four hundred sixty (40,460) for females and four hundred fifty for the males (450)† (National.. n.p.); 2) â€Å"Unfortunately, there are new cases reported as well, there are one hundred seventy eight thousand four hundred eighty (178, 480) females and two thousand and thirty (2,030) males now who currently have breast cancer† (National.. n.p.). And the aforementioned is in the United States only (National.. n.p.); 3) â€Å"In the United Kingdom, on the other hand, twelve thousand four hundred (12,400) individuals or more die each year because of breast cancer† (National.. n.p.). In fact, in 2003 alone, there were forty three thousand and seven hundred fifty six women and there were three hundred thirty five (335) men who were diagnosed and reported to have breast cancer (National.. n.p.). Diagnosis   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   During that time, Susan was also in denial that is why she researched on her own. She found out that: Breast cancer may be diagnosed through the following: 1) breast self-examination; 2) clinical breast exam; 3) mammogram including screening mammograms, diagnostic mammograms; 4) computer-aided detection; 5) digital mammography; 6) magnetic resonance imaging; 7) â€Å"ultrasonography†; 8) ductal lavage; 9) molecular breast imaging; 10) diagnostic procedures like ultrasound; 11) biopsy including fine-needle aspiration biopsy, core-needle biopsy, stereotactic biopsy, wire localization, surgical biopsy; 12) estrogen and progesterone receptor tests; 13) staging tests; and 14) genetic tests (Mayo.. n.p.).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   During this time, she was already prepared to believe that she really does not have breast cancer because she had a mammogram performed in March 1989 and again in February 1999, wherein, the results both showed that it is normal. Although, she had to try to accept it or at least entertain that it might be true when an ultrasound was also carried out where it was detected that a fibrocystic lump exists and that it was benign. Breast Cancer Myths After the detection of the fibrocystic lump, Susan began to reflect on her way of life, what could have caused the lump to exist inside of her body†¦she actually thought that it may be because of her use of deodorants, ‘underwired’ brassieres, stress from work, as well as, injury to the breasts which she got from playing basketball when she was in college and still a part of a varsity team. It is not very surprising that Susan thought of those as the primary reasons for the lump since there are so many myths that are related to breast cancer and some of the most popular ones are the following: First of all, some individuals claim that deodorants bring about breast cancer, however, currently, no studies have been carried out yet that may confirm or deny such belief of some people (Breast.. n.p.).   Second, some people think that wearing ‘underwired’ brassieres bring about cancer (Breast.. n.p.). Just like the first myth though, no evidence have been found to conclude such a statement (Breast.. n.p.). Third, there are individuals who think that stress can bring about breast cancer, however, research studies have not yet been able to establish an extremely clear link to conclude that such is really possible (Breast.. n.p.). Fourth, there are people who claim that â€Å"living near electricity pylons cause breast cancer† but no evidences have been presented ever since that breast cancer may be associated to electricity pylons (Breast.. n.p.).    Fifth, some individuals say that an injury to the breast augments the probability that breast cancer may occur (Breast.. n.p.). However, no evidences have been presented to back up such claim (Breast.. n.p.). Sixth, people claim that females who are young are more likely to be detected with breast cancer (Breast.. n.p.). Well, statistical information denies this, in fact, eighty percent of all the cases in the UK occur in females who are already fifty years old and above (Breast.. n.p.). Seventh, there are individuals who believe that if a person feels pain or discomfort in his or her breasts, then it is already safe to say that an individual is suffering from breast cancer (Breast.. n.p.). However, experts explain that there are so many reasons why breasts may be painful, for instance, this may be related to the menstrual cycle (Breast.. n.p.). Eighth, some people say that getting pregnant increases the probability of suffering from breast cancer later (Breast.. n.p.). On the contrary, experts have found evidence linking early pregnancy to breast cancer risk being reduced (Breast.. n.p.). They also reiterated that the more babies a woman gives birth to then the lower the risk of getting such cancer (Breast.. n.p.). In light of the detection of the lump, instead of getting more focused with the myths, Susan should have gotten a second opinion. If in case she did that, and the biopsy results will show that an â€Å"infiltrating lobular carcinoma† already exists and that it is already in stage IIa then a more extensive treatment would be provided to her. Risk Factors   Ã‚   The aforementioned are really just myths, they were never provided with evidences to establish that those are really linked with breast cancer. Susan was told by her doctor that the main risk factors for breast cancer, actually, include the following: 1) age; 2) age of menarche; 3) age at birth of first-born child; 4) biopsies of the breast; 5) family history; 6) occupation; 7) race; 8) hormone replacement therapy, as well as, 9) alcohol (Hales 105). Susan is only thirty four years old, never had any children, used to engage herself in binge drinking during college, and an aunt of hers had breast cancer years ago. As we can see, most of the risk factors are present in Susan’s case. Treatment            According to the experts Susan spoke to, â€Å"Breast cancer may be annihilated and for that to occur: 1) either lumpectomy or mastectomy should be carried out; 2) radiation may also be helpful; 3) drugs like taxol, taxotere, and herceptin may be taken; 4) chemotherapy; as well as, 5) hormonal therapy may be undergone by the patient† (Hales 105). Because her treatment options have been clearly explained to her, she decided to have a â€Å"right modified radical mastectomy† following a reconstruction immediately (Hales 105). During the surgery â€Å"eight lymph nodes were annihilated and the biopsy gave out a negative result† (Hales 105). After which Susan underwent chemotherapy as part of her post-surgical treatment which made her experience side effects including loss of hair and anorexia (Hales 105). Last but not least, she was also made to take in drugs named Cytoxan and prednisone (Hales 105). References       Breast Cancer Care. Statistics and Facts About Breast Cancer. 2004. Cancer Research, UK. 15 June 2007 http://www.breastcancercare.org.uk/content.php?page_id=1730 Hales, D. An Invitation to Health, Eleventh Edition. Boston: Thomson Wadsworth, 2005. Mayo Foundation for Medical Education and Research. Breast Cancer.   29 December 2006. n.a.. 15 June 2007.    http://www.mayoclinic.com/health/breast-cancer/DS00328/DSECTION=2 National Cancer Institute. Breast Cancer. n.d. n.a. 15 June 2007   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.cancer.gov/cancertopics/types/breast Wikipedia. Breast Cancer. 14 June 2007. Wikimedia Foundation Inc., 15 June 2007. http://en.wikipedia.org/wiki/Breast_cancer#History

A Study And Report On Social Work

A Study And Report On Social Work Social work has always been considered as a difficult and complex occupation, with a complicated and perplexing framework. This is due to its different settings accompanying different tasks. An inevitable part of social work is its values and ethics and the questions and debates that surround its structure. Although values can be considered as personal and individualistic, it is also possible for a group with the same beliefs to share the same values, such as social work. It is important to acknowledge that values continually shape our actions and it is of the opinion of Ronnby (1992) â€Å"that someone becomes a social worker because they have the same ethics and values and attach them to the position†. Biestek developed traditional values in the late 50s. (Biestek, 1961). His principles outlined the basics of traditional social work and were constructed of a seven-point scheme. The principles consisted of 1. Individualism.2. Purposeful expression of feelings. 3. Controlled emotional involvement. 4. Acceptance. 5. Non-judgmental attitude 6. User self-determination.7. Confidentiality, Many of Biestek beliefs were very traditional and were criticised for their diversity in their interpretation. Controversies relating to different principles caused many problematic conclusions e.g. individualisation and confidentiality. Individualisation could not be possible in the fast moving modern world, people lose their identity and individualisation is not respected. Confidentiality has its limitations to be enforced e.g. If a user divulges information where someone will be harmed, the social workers duty is to share it as a right to other individuals. It was clear these key issues had to be developed and advanced to help social workers. It was considered that there must be guidance on values and ethics for social workers, as they play a major part in their work Central Council for Education and Training in Social Work was a significant part in the development in education for social workers. It is also acknowledge by (CCETSW, 1998) that it is a necessary part as the title suggest, that social workers must gain an understanding of ethical awareness as part of the professional practice. Skill development gave social workers a range of skills that are needed to ensure that social work is a high quality profession. The CCETSW set out details of a number of competencies that they should be able to cover in their work. It is considered that there are two main ideologies within social work, social justice and personal caring. These were considered to be benefit for social workers as they exercised anti-oppressive practice. They produced a list that social workers had to identify with. This stated that a social worker: . Should be committed to: Respect and value of individuals Promote peoples rights to choice privacy protection and confidentiality, while looking at the rights and demands The right of individuals to make choices Strengths and skill embodied local communities Right of protection for those at risk Social workers should be able to do: Develop awareness of inter-relationship of the process of structural oppression, race, class and gender Understand and counter act the impact of discrimination from poverty, age, disability and sectarianism Demonstrate an awareness of individual and institutional racism Understand gender issues and demonstrate anti-sexism in social work practice Promote policies and practices which are non- discriminatory and anti- oppressive Demonstrating these skills in learning, acknowledge that they had competence in practice. The Central Council for Education in Social Work stated that ‘practice must be founded on, informed by and capable of being judged against a clear value base (CCETSW, 1995). This knowledge base was very important, but it did not give ready-made answers as to how social workers should continue in any particular situation. However it gives lots of insight and clues about situations that social workers may face, it also enabled them to have an appropriate response for any particular predicament. Never the less it is still down to the individual social worker to acquire and expand their knowledge base for practising in social work. The range of skills that can develop from learning will be responsible for an established and high quality in the service that are offered to service users. There are professional ethical standards that are relevant to social workers in practice. These allowed social workers to work at a professional standard and to behave professionally. These standards concern ethical responsibilities to clients, colleagues, social work profession and responsibilities to the broader society. Some of the standards are guidelines for professional conduct, such as the code of ethics for social workers. For social work the code of ethics plays a major role in its training, policy making and its professional literature. These guidelines provide a framework for making sense of the practice in social work. The code of ethics for social workers (BASW 1996) was put in place in 1975 to ensure that social workers had a set of guidelines for professional activities. The primary objective of the Code of Ethics is to make these pragmatic principles clear for the protection of clients and other members of society. Its principal objectives are to ensure that the professional social workers were recognised as a non-bias worker. The code covered two main areas, including principles and practice, The statement of principles covers social workers understanding and identifying of the values and dignity for every human being, irrespective of origin, race, status, sex, sexual orientation, age, disability, or religious belief. Social workers are expected to prevent and eliminate exploitation and discrimination against any person, group, or class on the basis of race, ethnicity, national origin, colour, sex, sexual orientation, age, marital status, political belief, religion, or mental or physical disability. Millerson (1964) argued that the code of ethics could become irrelevant, as it was difficult to use, as it could not be dominated by one specific area within social work. Millerson noted that there were many areas of specialist including child protection, community care, mental health and family therapy, that it becomes more difficult use the code as a principal source of moral guidance. Ethical awareness is a necessary part of the professional practice of any social worker. His or her ability to act ethically is an essential aspect of the quality of the service offered to clients. It has been thought that the code of ethics was set in place to allow social work to be recognised as a professional occupation. Social workers were expected to Identify and interpret the basis and nature of individual, group, community and social problems. Illustrating their ability to recognise professional and personal limitations, and refrain from any behaviour that may damage the profession. The uncertainty of day to day practice brings with it many ethical dilemmas, which are a challenge for many social workers. The complexities of ethical dilemmas arise when a social worker has two or more possible undesirable conclusions that go against their own moral principals, these dilemmas cause a battle because they have to make a choice and they dont know which one is right. Professional service shall assist clients to take responsibility for personal actions and help all clients with equal willingness. Social work is a decision making occupation that can lead to many problems, the feeling of guilt and blame for the outcome of many decisions that they have been involved in. This may cause much stress and strain for social workers in having to make major decisions and choices, but also to take responsibility for any outcomes that may go wrong. This essay has described the value base of social work in its development and education, also looking at its effect and consequences. Learning base work can give possible solution as to how social workers should proceed in a situation; it can also give lots of insights into fields that they have no experience in. The codes of ethics standards were explained and considered it has been argued of its effect and purpose, its usefulness and its guidance for the profession of social workers. How we deal with them will always be a challenging and stimulating process for all social workers. There are many instances in professional social work where simple answers are not available to resolve complex ethical issues. A case study has been discussed and analysed, showing anti-oppressive practice. It is shown that power and oppression of all kinds must be regulated and resisted, we must acknowledge that power and oppression is always present in individuals and within society. In conclusion social work can be a challenging subject and one that will actively push the boundaries of all social workers on a personal level and professional level. It is agreed within social work that ethics, morals and values are all an inescapable part of professional practice and ‘Ethical awareness is a necessary part of practice of any social work (IFSW, 1994). Values and ethics are not simply reasonable matters that we can unravel through logical arguments; they are a combination of thoughts and feelings closely linked to action. There must be distinctions on how to apply social work values and ethics into their professional work, without causing personal conflict. //////////////////////////////////////////////////////////////////////////////////////////////////////////// Moreover, the Social work values emphasises that the social workers should â€Å"identifies and question their own values and prejudices, and their implication of practice;†¦ and they should â€Å"Respect and value uniqueness and adversity†¦.and identify (discrimination), analyse and take action to counter discrimination, racism, disadvantage, inequality and injustice using strategies appropriate to role and context† (CCETSW, paper 30 referred in UB. 2002: 6). Therefore, the social work value gave people a direct power to clients by letting them choosing and decide for themselves and social worker are advised to â€Å"promote opportunities for people to use their own strengths to make decisions for themselves (CCETSW, paper 30 cited in UB. 2002: 4). In other words, social work has widened the concept of ‘freedom and ‘toleration by being considerate for all members of the community, which is now-a-days known as ‘anti-discrimination, freedom of choice and ‘equality. //////////////////////////////////////////////////////////////////// There are also issues regarding to social workers practice e.g. practicing in ‘traditional way due to personal prejudices, which has oppressed the clients and has stigmatized the social work itself. Thompson (1997: 11) emphasise that the â€Å"†¦social work practice which does not take account of oppression and discrimination can not be seen as ‘good practice†¦.†. The ‘bad practice is portrayed through the media but the good practice is not awarded and neither praised by media. The social work constantly reviews the policies to encounter prejudices and emphasises high on anti-discriminatory practice. /////////////////////////////////////////////////////////////////////////////////////// The concise oxford English dictionary defines â€Å"values† as â€Å"principles or standards of behaviour†. Personal values can very dependent on our social, cultural and religious background. Although being inherent these values can change as we develop and mature and become less dependent on the values that are important to our parents, family and peers. David Howe (1999) advises that â€Å"values are important because they help to guide action† (Study Unit 1, p.18) he also suggests â€Å"values spell debate and trouble† (Study Unit 1, P.18), values can cause conflict and tensions which need to be reflected upon. I come from a large family and lived on a council housing estate where family and neighbours â€Å"looked out† for one another. I have six brothers and one sister and, although we were disciplined, our parents always showed their love for us. Within my immediate and extended family there was a feeling of security in that we all knew we ha d people who cared for us and who would always be there for us no matter what. It was inherent in us to care for each other and I perhaps made the assumption that most families had the same values as ours. I think I considered people who did not have these values to be untrustworthy, unreliable and uncaring and at that time I did not realise that this was a preconceived opinion based on no actual experience. It was not until I started to work in residential childcare that I began to question my prejudices. I realised that not everybody was brought up with the same values as I had been and that my values and beliefs would change and grow through my experiences within my work. I worked with many children and young people from varied cultural, religious, racial and social backgrounds with a wide range of emotional and behavioural difficulties. I saw how little some parents/carers valued their children and how badly they treated them. As parents/carers have such a big influence over a c hilds life this meant that the children themselves had very little self worth or value, with low self- esteem and feelings of social isolation. They found difficulty in forming relationships, having been subjected to various levels of physical, emotional and sexual abuse. Through this experience I achieved a greater sympathy and understanding of how peoples life history can affect their future. People have individual life experiences and because of this their values and beliefs are very often different from our own. The speakers on tape one (K111 Side 1 Band I) state that we should â€Å"reflect on our own prejudices and not skip over them and we should be willing to accept others beliefs†. I have learned through experience that we cannot impose our own personal values and opinions on others; we must constantly re-evaluate our thoughts and actions. Ian Parr PI M5564134 K111 TMA02 Page 2 An experience with one of the young people in the Childrens Residential Unit where I worked illustrates how my values have been called into question and reflected upon. The young person had only had contact with his mother, who was white and had never met his father, who was black. His father had a long troubled history involving drug and alcohol abuse. When he was 9 years old, the young person chose to make contact with his father, against the wishes of his mother and siblings, who were born to a different father. They thought that contact would split the family even further and this put a lot of pressure on the young person. The father at first offered consistency but this was short lived and there were problems with his lack of basic parenting skills. To alleviate these problems it was necessary to build a working relationship with the father to improve the lack of support given to the young person. Whilst dealing with these problems it was important to work in a non-judgmental wa y as there were issues that whilst they may have seemed adequate to some, I did not totally agree with. This taught me that it was important to allow the young people choices, and to respect those choices, and to allow them to take control of their lives. Empowering a young person will give them â€Å"more control over their lives, to have a greater voice in institutions, service and situations which affect them†(Bray Preston-Shoot, 1998:48 cited in set book Adams, Dominelli and Payne, p.38) There were also issues surrounding the fathers race. The mother and the siblings were all white and lived in a white environment and this caused some strain between the children. By using positive encouragement and working in an Anti-Oppressive (seeking fundamental change in power structures and exploitative relationships which maintain inequality and oppression)(Bray Preston-Shoot 1995 cited in Study Unit 1, Part A, p.77), Anti-Racist and Anti-Discriminatory (challenging unfairness or inequity)(Bray Preston-Shoot 1995 cited in Study Unit 1, Part A, p.77) way I managed to alleviate some of the problems. This made me reflect on how important a persons culture is to their identity and I have learned not to discriminate on the grounds of race, religion, culture, language, social status and life-style. In â€Å"identifying and questioning my own values and prejudices†(CCETSW 1996 p.18 Aids to Practice Cards) I am constantly re-evaluating my thoughts and actions through reflection. During my past experience I have also become aware that â€Å"our professional values may sometimes conflict with those of organizations for whom we work† (Aids to Practice Card, Valuing). I took care of two young brothers who, when they were placed in the residential care home where I worked, had serious attachment disorders, behavioural problems and mental health issues. My colleagues and I worked closely with them in conjunction with other relevant agencies, which included Child and Adolescent Psychiatry, in order to enable them to gain trust and establish relationships with us. The children were thriving in our care and had stopped self-harming but, after two years of working with them, the funding local authority decided, because of lack of funding, to remove the boys from their placement and return them to a facility in their hometown. This was done against their wishes and against the advice of the mental health team. Ian Parr PI M5564134 K111 TMA02 Page 3 The childrens right to choice was disregarded. As social workers are challenged to be advocates for those who are unable to advocate for themselves and â€Å"all the social workers efforts should be directed towards removing the obstacles which enable the service user to take control of their own life†(Aids to Practice card Advocacy Empowerment) the decision was contrary to my personal and professional values and a difficult one to accept. This experience made me reflect that there will be times during my practice when my values will conflict with others but difficult decisions will always have to be made. I hope I can learn from past mistakes within the system and continue to practice within my professional code as described in the course reader, â€Å"will respect their clients as individuals and will seek to ensure that their dignity, rights and responsibility shall be safeguarded† (BASW 1986 Set Book Adams, Dominelli, Payne, p.34) Describe your current understanding of professional social work values and how you have arrived at this understanding. Outline those issues which you find problematic and want to work on during your present placement. Professional social work values as listed in the course material (K111 stage 1 p.20) are part of the core competencies. The K111 aids to practice card (valuing) defines these as â€Å"having a clear set of values which actively informs your social work practice, particularly concerning promoting the intrinsic ‘worth or ‘value of another human being†. These are values that need to be inherent within any professional and indeed hopefully within each worker on a professional and a private basis. My own understanding of professional social work values has changed and evolved over time through my own past experiences. I feel that, fundamentally, respect for other people is the most important value as ultimately you should treat people the way that you would wish to be treated yourself â€Å"There is a long tradition in social work that emphasises the importance of ‘respect for people'(Study Unit 1, Part A, P.76). Bisteck, 1961 (as cited in K111 study unit 1 p.76) listed â€Å"seven principles of casework which included acceptance, self-determination, confidentiality, individualisation and a non-judgemental attitude. These are grouped together under the umbrella of ‘respect for persons†. I feel that I have learned to build on my respect for others through past contact with service users, especially in residential care where the majority of children and young people had little or no self-respect. Valuing something means that we know its worth. â€Å"This is essential in social work precisely because many service users are seen as ‘undeserving by society, or as worthless. Indeed, some service users have this view of themselves†(Aids to Practice Card, Valuing). Treating them as individuals, each with their own identity, and not as part of a homogenous group, helped me to understand how important self-identity, self-awareness and self-worth is. Ian Parr PI M5564134 K111 TMA02 Page 4 I have been able to reflect on this and bring it into my practice. Although I did not necessarily agree with or approve of the values and behaviours of the families of some of the young people it was imperative that I was guided by the ‘values of social work (CCETSW 1996 p.18, Aids to Practice Card, The Values of Social Work) and that I communicated a non-judgmental attitude toward them. Acceptance of others and a belief in the worth and dignity of every human being are values that are conveyed through non-judgmental behaviour. To be able to respect another persons privacy and safeguard confidentiality affirms that persons worth and dignity. I presently work with children from areas that are classed as â€Å"disadvantaged†; these areas have a high transient population from all over the country, including the travelling community. This makes for a wide range of cultures, religions, social status, ethnic minorities and to treat people as individuals and â€Å"respect and value uniqueness and diversity†(Aids to Practice Card, The Values of Social Work) is essential when practising in such diverse social settings. The travellers who I have worked with have views which are very different to my own. They believe that girls do not need to be educated at all and that boys only need formal education until the age of ten. Because this goes against my personal values I sometimes find it difficult to promote peoples right to choice in such situations but I do recognise the need to â€Å"work with individuals and families from backgrounds and cultures of which I may have little direct experience in a way which is sensitive to this diversity† (Study Unit 1, Part A p.19). I try to recognise that changes must come from within the service user and that we cannot impose our standards and values on them. However, I am always conscious of the need to be aware of any child protection issues and the need to â€Å"assist people to increase control of and i mprove the quality of their lives, while recognising that control of behaviour will be required at times in order to protect children and adults from harm†(Study Unit 1, Part A, P.20) I am constantly learning about myself and other people and re-examining my own attitudes and prejudices. The K111 Aids to Practice card Valuing, informs us that â€Å"the assumption is that the values which inform training will come to influence practice† and perhaps more importantly, â€Å"having a set of principles to apply to the practice of ‘valuing the existence and contribution of another human being, of respecting them and upholding their rights and responsibilities, is seen as essential to accountable social work†. The values that are central to social care should affect all aspects of my working practice. My current understanding is that the profession of social work centres on the improvement of quality of life for people and the enhancement of human potential for full, productive participation in society. If we let our own personal values be guided by the â€Å"values of social work†(Aids to Practice Cards, The Values of Social Work) then we woul d allow everyone that we come into contact with to try and develop their full potential whilst also giving them the choice of and responsibility over their own actions. Ian Parr PI M5564134 K111 TMA02 Page 5 References: Adams. R, Dominelli. L, Payne.M, 2nd Edition Social Work: Themes, Issues and Critical Debates, Palgrave K111 Social Work Practice Learning, Stage 1, 2002, Aid to Practice Cards, The Open University, Milton Keynes K111 Social Work Practice Learning, Stage 1, 2002, The Open University, Milton Keynes. K111 Social Work Practice Learning, Stage 1, 2002, Tape 1, Bands E-I Pearsall. J, The Concise Oxford English Dictionary (2002), 10th Edition, University Press /////////////////////////////////////////////////////////////////////////////////////////////////// Day 2: Users expectations of social workers The main points that I felt were reiterated during the sessions led by the service users were; an expectation that the partnership with their social worker would possess the positive qualities of any good relationship. The focus was on an open and equal attitude, mutual trust and respect. Empowerment was crucial to the service user as it addresses their feelings of impotence within society; this can be achieved by being informative e.g. sign posting to other agencies for support and empowerment and assisting with direct payments so that service users can make their own decisions regarding their care. I learned that it was the positive qualities of any good relationship that were most appreciated such as a personal and friendly approach; practical offers of practical help i.e. useful phone numbers and keeping to appointment times and agreed timescales and these made the difference between a good working partnership and a poor one. One service user felt that, because she presented as v ery articulate and independent, she had not been offered assistance with filling in forms for direct payments, which highlighted to me that a positive assumption can lead to needs not being met. (193) Day 3: Carers expectations of social workers One of the key things that I learned from the meeting with carers and my own experience within my family was the emotional rollercoaster of the 24hour commitment involved. One of the case studies we looked at during the module highlighted how the focus of support is mainly directed at the service user and the needs of the carer are often overlooked. One point that stood out from one of the lectures was how personality has some influence on what care is appropriate for that person. The example given was a service user whose mental health problems sometimes conflicted with the delivery of care for his physical health problems adding extra stress for the partner and carer. As a family carer myself I identified with how good sign posting from the social worker can assist with the frustrating process of trying to gather knowledge of how and where help can be accessed. I also identified with other carers experiences of the need for the professionals involved with our family members care to respect our family members individuals needs e.g. her religion and her food preferences to maintain dignity. Maintaining good interprofessional relationships was highlighted, to maintain cohesion and continuity of care and to be prepared to advocate on behalf of the carer and service user. (217) Day 4: Cultural competence Cultural, ethnic, linguistic, and economic differences impact on how individuals and groups access and use health, education, and social services. They can also present barriers to working in partnership in health care interventions particularly when practitioners stereotype, misinterpret, make faulty assumptions, or mishandle with insensitivity their encounters with individuals and groups viewed as different in terms of their backgrounds and experiences. Adopting an anti-oppressive approach by admitting and reflecting on personal biases, stereotypes, and prejudices is the starting point of developing cultural competence, the next stage is to be sensitive to cultural norms, attitudes, and beliefs; in fact valuing the diversity of cultural difference. Other important ways in which you may become more culturally competent and avoid potential pitfalls would be in learning verbal and nonverbal cues of other cultures, becoming more comfortable in cross-cultural situations by assessing wha t works and what does not. By assessing how the beliefs and behaviours of the cultural group affect the service user, their interaction with services offered, learning to negotiate between the persons beliefs and practices and the culture of your profession, cultural competence can be achieved. I am valuing the opportunities this course is affording me in developing my cultural awareness by learning from and with people from a variety of different cultural and social backgrounds. (214) Day 5: Social workers use of power and authority My concerns about using professional authority are about finding myself in situations that require careful judgement due to the consequences for both service user and myself because of my own actions or non-actions. I can ensure that I acquire up-to-date knowledge of the values and principles of the British Association of Social Workers Code of Ethics for Social Work and work by them at all times. Other sources of help in verifying that I was not using the powers and authority invested in me appropriately would be talking to line managers, referring to the General Social Care Council codes of practice and referring to the National Occupational Standards for Social Work. Other ways of seeking assistance would be to discuss dilemmas and reflect upon similar case studies weighing up the consequences of certain courses of action. Seeking help from other professionals and agencies may give a fresh perspective, however, it is a case of balancing personal and professional judgement in the c ontext of codes and guidelines of the profession and treading the thin line between safe holding and violation. (178) PART 2 The personal impact of the learning that took place on the topic of cultural competence was that it gave me greater understanding of how everybody differed in their own individual perceptions of their culture, background and religion. This realisation has increased my self-awareness of my own cultural identity and how that has shaped my own values and opinions. I am aware that in society we often group people according to their cultural background, based on appearance or religion, when what real

Analysis of Derivatives and the Perception of Investors

Analysis of Derivatives and the Perception of Investors Chapter 1: Introduction 1. Introduction: The stock market is characterized by volatility, which creates uncertainty in the market and makes predictions regarding future exchange rates difficult, both in the short and long term. However, it is these constant fluctuations in the stock market that make it possible for companies or individuals to take advantage of the movements in exchange rates through speculative activities. These fluctuations also pose a threat for any importer/exporter trading in the global marketplace as international businesses are naturally exposed to currency risk. This necessitates the adoption of hedging strategies to mitigate risk. The volatility in the stock market needs to be dealt with in a proper, prudent and timely manner. Otherwise, adverse currency fluctuations can inflict painful lessons on a company or individual. Later in this thesis we will investigate in detail the volatility of the stock market and the potential risk exposure faced by all market participants. People enter into the stock market for various reasons and the above mentioned potential for profit is a very important motivation. Indeed, some traders who come with the intention of making profit by taking advantage of market fluctuations engage in speculative activities in the stock market and accept the risks involved, while others attempt to protect themselves from volatility by engaging in hedging activities. Traders in this first category are commonly known as speculators, whereas the latter are known as hedgers. Speculators enter the market, in effect, by placing their â€Å"bets† on the market movements. Should their prediction come true, they make profits; if their predictions are not realized, they suffer losses. Hedgers enter the market with the intention of insuring themselves against any adverse market movements they may encounter in their business operation. Hedging involves the creation of a position that offsets an open position occurring in their business operations; so that the gain i n the business (hedge) position will offset the loss of the hedging (business) position. There are various financial instruments used for trading in the stock market. The most common are spot contracts, forward, futures, options, swaps and various money market instruments. Forward, futures, options and swaps are derivatives instruments. Commonly used instruments in the money market include (but are not limited to): Treasury bills, Eurodollar, Euro yen, Certificate of deposit (CD), Commercial paper In fact, the money market represents most of the financial instruments that have less than twelve months maturity. This margin is also known as the leverage ratio and can range from twenty to two hundred, depending on the financial institutions involved. If the given leverage ratio is twenty, the trader using a leveraged spot contract can have access to a credit line twenty times larger than his/her initial margin (collateral). Clearly, the leveraged ratio allows traders (both speculators and hedgers) to trade at a significantly lower capital requirement when compared to the spot market. The general mechanism of each of these markets (forward, futures, options, swaps and money markets) will be explained in detail in this thesis. 1.2 Research Context: The selection of the particular research approach depends on the kind of information required. Qualitative research collects, analyzes, and interprets data that cannot be meaningfully quantified, that is, summarized in the form of numbers. For this reason, qualitative research is sometimes referred to as soft research. â€Å"Quantitative Research† calls for very specific data, capable of suggesting a final course of action. A primary role of quantitative research is to test hunches or hypotheses. These suggest that qualitative approach is a soft research approach in which collected data cannot be meaningfully quantified and more importantly in this approach non-structured research is conducted. But so far as quantitative research approach is concerned, through this approach structured research is conducted with approaching larger respondents and the collected data can be meaningfully quantified. Research data can be collected either in the form of secondary or primary or both. This assumption is obviously not realistic. With the aim to close this gap between theory and practice, a new model is developed in this thesis using the assumptions that the interest rate definitely changes according to economic conditions or policies and that the exchange rate movement follows the pattern of a random walk, which is a stochastic process. Moreover, during the course of our research, we did not encounter any literature that dealt with leveraged spot contracts as both speculative and hedging instruments. It is obvious that the leveraged spot market is relatively less commonly used by financial derivatives traders, compared to traditional instruments such as forward, futures, options, swaps, and the money market. Our objective is therefore to develop a model using leveraged spot contracts as an effective financial instrument that can be used for both speculative and hedging purposes. 1.3 Research Objective: * Analysis of Derivatives and the perception of investors† 1.4 Research Questions: Illustrate how the leveraged spot market can be utilized both as a speculating as well as a hedging tool. Derive insights into how real world data will affect the optimal number of contracts that a trader should trade (or invest) at any given time. Present a Black scholes model for speculation using leveraged spot contracts based on Krugmans model of exchange rate dynamics within a target zone. Demonstrate how a trader can hedge an open position in the leveraged spot market with a simultaneous position in the forward market to generate profit. Explain how a hedger can hedge an existing business transaction exposure using options. 1.5 Research Boundary and Scope: This thesis is organized into chapters/sections. The first chapter is an introduction to the thesis. Next chapter provides a view on hedging and the volatility of the Stock market. These two parts: the first part covers a background of hedging and explores the common applications and techniques of hedging; and the second part covers the volatility of Stock market movements, providing a brief background on the economic fundamentals of exchange rate determination and dynamics, exchange rate systems, international financial markets, and government policies affecting exchange rate systems. How the leveraged spot market can be used as a speculating tool. We have adapted model of exchange rate dynamics within a target zone, we assume that the exchange rate movement follows the pattern of a random walk and we develop a model showing how the leveraged spot contract can be used as a superior financial tool when compared to forward and spot contracts under certain circumstances. However, before developing this model illustrates the mechanism of trading in the leveraged spot market with a numerical example. This describes how to eliminate the risk which arises from speculative leveraged spot transactions using a forward contract. Moreover, several numerical examples are used to illustrate how companies can utilize leveraged spot contracts as a hedging tool. We show in this chapter that the leveraged spot contract, when used in conjunction with a forward contract, can indeed derive risk free profits for its users. The effectiveness and profit generated from using leveraged spot contracts depends on the leverage ratio and the interest rate differential between the home and foreign countries. Chapter 2: Literature Review The financial world has witnessed several major catastrophes in the last dozen years. The first catastrophe was the collapse of Barings Bank in Britain in 1995. The banks collapse was a direct result of Nick Lessons aggressive trading in the futures and options markets. Between 1992 and 1995, the self proclaimed â€Å"Rogue Trader†1 accumulated losses of over  £800million. In February 1995, the 233 year-old Barings Bank was unable to meet the Singapore Mercantile Exchanges (SIMEX) margin call. The bank was declared bankrupt and was bought by the Dutch Bank, ING, for only  £1. The second catastrophe was the Asian financial crisis in 1997. Much literature had been written about the crisis as the financial world tries to understand what went wrong that led to the crisis. Some authors claimed that the crisis was triggered by the run of panic investors on those economies as well as depositor on banks which led to the burst of a bubble economy; while others blamed the crisis on the moral hazard in the Asian banking (financing) systems. We believe that the Asian financial crisis was due mainly (but not limited) to the structural imbalance in the region, caused by large current account deficits, high external debt burden, and the failure of governments to stabilize their national currencies. These problems were worsen by the poor prudential regulation of 1 Nick Lesson wrote an autobiography called â€Å"Rogue Trader† detailing his role in the Barings scandal while imprisoned, the Asian financial system during the 1990s. The combination of these factors contributed to the long-term accumulation of problems in fundamentals, such as large amount of ‘over-lending and bad loans in banking systems which led to the bankruptcies of large firms/banks in the economy, and eventually destroyed the confidence of investors and triggered the panic run of both investors and depositors of the Asian financial system. As part of the efforts, governments tried ente ring the derivative markets to stabilize their currencies. The Thai Government, for instance, utilized the forward market. However, as the world witnessed the collapse of several Asian currencies during the course of the 1997 financial crisis, it was obvious that these stabilizing efforts were not successful. As the Asian countries continued their recovery efforts, Enron collapsed in 2001 as a result of imprudent use of financial derivatives. It had been reported that Enrons management engaged in questionable transactions in the options market, in an attempt to keep the true economic losses of various investments off Enrons financial statements and to try to conceal the actual financial situation of the company. The consequences of these catastrophes were devastating. They impacted not only on the governments and companies directly involved in the events, but also their stakeholders, such as shareholders, employees and ordinary citizens. Many studies examining international financia l markets have been designed to prevent the future occurrence of a similar catastrophe. Most of these studies are still attempting to learn from past mistakes through analyzing what exactly triggered such catastrophic events. Amongst those many studies, some have been undertaken to assist companies to minimize their exposure to fluctuations in the currency market, and to implement better techniques and supervision of corporate risk and management. As a result, topics such as currency exposure, hedging strategies and prudent, ethical company practices have become mainstream issues in international financial markets. This thesis is concerned with hedging techniques in relation to the risk faced by companies and individuals of currency fluctuations. We will point out the limitations and strengths of common hedging techniques and then derive a new technique for hedging. This new model aims to minimize or eliminate the limitations of existing hedging techniques. The importance of understanding the underlying economic and financial fundamentals, which were possibly responsible for the 1997 Asian financial crisis, is noted. This chapter begins with a background discussion of hedging and explores the common applications and techniques of hedging. It continues by addressing exchange rate volatility through providing a brief background of the economic fundamentals of exchange rate determination and dynamics, and government policies. Globally, operations in the foreign exchange market started in a major way after the breakdown of the Bretton Woods system in 1971, which also marked the beginning of floating exchange rate regimes in several countries. Over the years, the foreign exchange market has emerged as the largest market in the world. The decade of the 1990s witnessed a perceptible policy shift in many emerging markets towards reorientation of their financial markets in terms of new products and instruments, development of institutional and market infrastructure and realignment of regulatory structure consistent with the liberalized operational framework. The changing contours were mirrored in a rapid expansion of foreign exchange market in terms of participants, transaction volumes, decline in transaction costs and more efficient mechanisms of risk transfer. The origin of the foreign exchange market in India could be traced to the year 1978 when banks in India were permitted to undertake intra-day trade in foreign exchange. However, it was in the 1990s that the Indian foreign exchange market witnessed far reaching changes along with the shifts in the currency regime in India. The exchange rate of the rupee, that was pegged earlier was floated partially in March 1992 and fully in March 1993 following the recommendations of the Report of the High Level Committee on Balance of Payments (Chairman: Dr. C. Rangarajan). The unification of the exchange rate was instrumental in developing a market-determined exchange rate of the rupee and an important step in the progress towards current account convertibility, which was achieved in August 1994. A further impetus to the development of the foreign exchange market in India was provided with the setting up of an Expert Group on Foreign Exchange Markets in India (Chairman: Shri O.P. Sodhani), which submitted its report in June 1995. The Group made several recommendations for deepening and widening of the Indian foreign exchange market. Consequentl y, beginning from January 1996, wide-ranging reforms have been undertaken in the Indian foreign exchange market. After almost a decade, an Internal Technical Group on the Foreign Exchange Market (2005) was constituted to undertake a comprehensive review of the measures initiated by the Reserve Bank and identify areas for further liberalization or relaxation of restrictions in a medium-term framework. The momentous developments over the past few years are reflected in the enhanced risk-bearing capacity of banks along with rising foreign exchange trading volumes and finer margins. The foreign exchange market has acquired depth. The conditions in the foreign exchange market have also generally remained orderly. While it is not possible for any country to remain completely unaffected by developments in international markets, India was able to keep the spillover effect of the Asian crisis to a minimum through constant monitoring and timely action, including recourse to strong monetary measures, when necessary, to prevent emergence of self-fulfilling speculative activities. 2. Financial Derivatives Markets: With the ever increasing total notional value of derivative contracts outstanding worldwide, it is little wonder that there has been continuous interest in unlocking the â€Å"mystery† of hedging using financial derivatives. Studies have shown that in 1994, the total value of hedging was USD 18 trillion. This is more than the combined total value of shares listed on the New York Stock Exchange and the Tokyo Stock Exchange. The amount exceeded USD 55 trillion in 1996, and in 1998, the figure had already reached USD 70 trillion, which is almost four times more than in 1994. Moreover, according to Bureau of Information Statistics (2005), from 1995 to 1998, spot foreign exchange transactions increased by 15%, reaching a total of USD 600 billion-a day, while over-the-counter currency options doubled to a total outstanding daily value of USD 141 billion. According to the Central Bank Survey 2004, the average daily turnover in foreign exchange derivatives contracts rose to $1,292 bil lion in April 2004 compared to only $853 billion in April 2001 (IBS, 2005). Table 2.1 shows that outright forward and foreign exchange swaps hold the record as the most popular derivatives traded over the counter. As such figures continue to climb strongly, it is important to understand the mechanism of the foreign exchange derivatives markets, including what motivates companies to enter the market, and how corporations utilize the market as a hedging mechanism. According to an author Robert W. Kolb, â€Å"a derivative is a financial instrument based upon another more elementary financial instrument. The value of the financial derivative depends upon, or derives from the more basic instrument. The base instrument is usually an underlying asset, as cash market financial instrument, such as a bond or a share of stock†. The underlying instrument can also be based on movements of financial markets, interest rates, the market index, commodities, or a combination of these assets. F or example, consider the derivative value of oil, which indicates that the price of an oil futures contract would be derived from the market price of oil, reflecting supply and demand for the commodity. In fact, as oil prices rise, so does the associated futures contract. It is noted that in order for the derivative market to be operational, the underlying asset prices have to be sufficiently volatile. This is because derivatives are risk management tools. Hence, if there is no risk in the market, there would be no need for the existence of any risk management tool. In other words, without manageable risk, the use of derivatives would be meaningless. Derivatives commonly used as hedging instruments include the foundational form of: 1. forward contracts 2. futures contracts 3. options contracts, 4. Swaps, which involve a combination of forward and spot contracts or two forward contracts. However, with the rapidly changing business environment, many hedgers have also given increasing attention to other more sophisticated and â€Å"exotic† derivatives which evolved from these basic contracts and often consist of a combined use of two or more foundational contracts, such as Options Futures. Global OTC Derivative Market Turnover, 1998-2007 Daily Averages in April, in billions of USD Description 1998 2001 2004 2007 Foreign Exchange Power 688 959 853 1,292 Outright forwards and foreign Exchange Swaps 643 862 786 1,152 Currency Swaps 4 10 7 21 Options 41 87 60 117 Other 1 0 0 2 Interest Rate Turnover 151 265 489 1,025 FRAs 66 74 129 233 Swaps 63 155 331 621 Options 21 36 29 171 Other 2 0 0 0 Total Derivatives Turnover 880 1,256 1,385 2,410 Memo: Turnover at April 2004 exchange rates 825 1,350 1,600 2,410 Exchange traded derivatives 1,221 1,382 2,180 4,657 Currency Contracts 17 11 10 23 Interest Rate Contracts 1,204 1,371 2,170 4,634 The 2004 survey is the sixth global survey since April 1989 of foreign exchange market activity and the fourth survey since March/April 1995 covering also the over-the-counter (OTC) derivatives market activity. The survey includes information on global foreign exchange market turnover and the final statistics on OTC derivatives market turnover and amounts outstanding. 2.4.2 Types of Players in Derivatives Markets: There are three categories of players in a functioning derivatives market: 1. Hedgers 2. Speculators 3. Arbitrageurs While each of these players use the market with varying intention, their combined and balanced influence ensure the market liquidity and volatility that allows the derivatives market to operate. It is easy yet important to differentiate the varying motives of these players. In terms of their level of risk aversion, arbitrageurs are by definition highly risk intolerant (risk averse individuals) who only trade in risk-free transactions; whereas speculators are on the other side of the spectrum (risk-seeking individuals), as they make profit by taking risk; hedgers are risk neutral individuals, as they choose their strategies by ranking the expected value of any given strategy. Based on their varying attitude towards risk these players tend to engage in the derivatives market with very different transaction patterns. More specifically, an arbitrageur who seeks risk-free profits will simultaneously take up a position in two or more markets, for instance, simultaneously buy spot and sell forward the INR, in an attempt to exploit mis-pricings due to a market that is not in equilibrium. However, such price differentials are almost non-existent in a well-functioning market, mainly because supply and demand tends to rapidly restore market equilibrium. As opposed to the arbitrageur, a speculator seeks profit by taking risk. For example, speculators who anticipate an appreciating INR will put their â€Å"bets† on the rising INR. They can do so by buying the INR at a lower value, and then selling it when the value is higher should the prediction come true. A hedger enters derivatives markets mainly with intention to insure against price volatility beyond their control. Based on this intention, it is not surprising that hedgers are mostly acting on behalf of corporations. The mechanism of hedging mainly transfers risk to others who are willing to accept the risk. Indeed, the risk is never nullified but merely transferred from one party to another. In most cases, spec ulators are those who absorb the risks transferred by hedgers. It is perhaps due to these notions that some have referred to the derivatives market as the ‘zero-sum game market, where the gain of one party is exactly equal to loss of another party. Over the last decades, the foreign exchange markets have experienced explosive growth. Indeed, according to the Central Bank Survey 2004, the average daily turnover in traditional foreign exchange markets rose to $US 1,880 billion in April 2004 compared to $US 1,200 billion in April 2001. 2.1 Option Market: Similar to futures markets, options markets provide impersonal transactions between two participants in an organized, orderly and cost-efficient open outcry auction market. Examples of these markets are the Chicago Mercantile Exchange (CME), the New York Mercantile Exchange (NYMEX) and the Australian Stock Exchange (ASX). An options contract gives the contract holder the right but not obligation to buy or sell an asset at a will be specific price and delivery date. For a currency options contract, that asset will be a currency. The contract holder is also known as the options buyer. The counterparty of a contract holder is known as the contract writer or contract seller, who is obligated to respond to the contract holder. In other words, if the contract holder chooses to exercise the contract, the writer is obligated to respond. Call Options Right and Obligations Buyer (holder) Seller (writer) Has the right to buy a futures contract at a predetermined price on or before a defined date. Grants right to buyer, so has obligation to sell futures at a predetermined price a buyers sole option. Expectation: Rising prices Expectation: Neutral or falling prices Put Options Right and Obligations Buyer (holder) Seller (writer) Has the right to sell a futures contract at a predetermined price on or before a defined date. Grants right to buyer, so has obligation to buy futures at a predetermined price a buyers sole option. Expectation: Falling prices Expectation: Neutral or rising prices The Options markets offer two styles of contracts: the American and the European. The style of an options contract dictates when it can be exercised. The American options contract gives the buyer (holder) the right to exercise the option at any time between the date of writing and the expiry date; the European options contract, on the other hand, can only be exercised on its expiration date, but not before the expiry date. In Australia, the Australian Stock Exchange (ASX) only offers standardized options contracts. Overseas options markets do offer options contracts in two forms: customized and standardized. The customized options contracts are also known as the over-the-counter (OTC) options. It is usually written by banks for US dollars against the British pound sterling, Swiss francs, Japanese yen, Canadian dollars and the euro. These customized options contracts can be tailored to suit individual needs, in terms of delivery dates, contract size and strike price. The contract size of these over-the-counter options contracts can reach $1 million or more with maturity of up to one or two years. The standardized option contracts are also known as exchange traded options (ETOs). These standardized options contracts were first introduced in the United States by the Philadelphia Stock Exchange (PHLX) in December 1982. Other markets such as the Chicago Mercantile Exchange later followed suit. Like the futures contracts, these exchange traded options are settled through a clearinghouse. The clearinghouse acts as the middleman and handles both sides of an options transaction. Acting as the counterparty of all options contracts, the clearinghouse guarantees the fulfillment of these contracts. Until this time, currency options contracts are still not available for trading through many of the Stock Exchanges. In fact, the Australian Stock Exchange only offers equity options and index options. For traders wanting to speculate or hedge using currency options contracts, th ey can utilize overseas options markets that offer currency options contracts, for example the Philadelphia Stock Exchange (PHLX). The exchange traded currency options offer standardized features such as expiration months and contract size. The following Table 2.8 consists of some of the standardized features of an exchange traded currency options contract as listed by the Philadelphia Stock Exchange (PHLX). Features of Exchange Traded Currency Option Contracts AUD GBP CAD Euro Yen Swiss Franc Contract Size 50,000 31,250 50,000 62,500 6,250,000 62,500 Position and Exercise Limits 200,000 200,000 200,000 200,000 200,000 200,000 Base Currency USD USD USD USD USD USD Underlying Currency AUD GBP CAD EUR JPY CHF Exercise Price Intervals (for 3 nearest months) 1 ¿Ã‚   1 ¿Ã‚   0.5 ¿Ã‚   1 ¿Ã‚   0.005 ¿Ã‚   0.5 ¿Ã‚   Exercise Price Intervals (for 6, 9 or 12 months) 1 ¿Ã‚   2 ¿Ã‚   0.5 ¿Ã‚   1 ¿Ã‚   0.01 ¿Ã‚   1 ¿Ã‚   Premium Quotations Cents per unit Cents per unit Cents per unit Cents per unit Hundredths of cents per unit Cents per unit Minimum Premium Change $.(00)01 per unit = $5.00 $.(00)01 per unit = $3.125 $.(00)01 per unit = $5.00 $.(00)01 per unit = $6.25 $.(00)01 per unit = $6.25 $.(00)01 per unit = $6.25 Expiration Months March, June, September, December + two near-term months March, June, September, December + two near-term months March, June, September, December + two near-term months March, June, September, December + two near-term months March, June, September, December + two near-term months March, June, September, December + two near-term months Exercise Style American and European American and European American and European American and European American and European American and European 2.2 Future and Forward: 2.2.1 Forward: In 1982, a study had been conducted based on the random sampling of the Fortune 500 companies. In that study, it had been found that the extensive adoption of forward contracts amongst Fortune 500 companies that were involved in currency hedging, it is by far the most commonly adopted hedging instruments. This popularity is perhaps due to the long history of usage, dating back to the early days of civilization and the trading of crop producers. Forward contracts were the first financial derivatives derived from those early â€Å"buy now but pay and deliver later† agreements. In contemporary business world, forward contracts are commonly known as over-the-counter transactions between two or more parties where both buyer and seller enter into an agreement for future delivery of specified amount of currency at an exchange rate agreed today. They are generally privately negotiated between two parties, not necessarily having standardized contract size and maturity. Both parties in the forward contracts are obligated to perform according to the terms and conditions as negotiated in the contracts even if the parties circumstances have changed. In other words, once a forward contract has been negotiated, both parties have to wait for the delivery date to realize the profit or loss on their positions. Nothing happens between the contracting date and delivery date. Indeed, a forward contract cannot be resold or marked to market (where all potential profits and losses are immediately realized), because there is no secondary market for a forward contract. Although, technically, the forward contract can be re-negotiated with the original counterparty, it is usually practically too costly to proceed with. In fact, the counterparty is not obliged to proceed with the renegotiation. Forward contracts have one obvious limitation: they lack flexibility, and therefore do not allow companies to react in a timely manner to favorable market movements. This disadvantage is wide ly acknowledged and often criticism by authors and hedgers. So, why are forward contracts still the most popular hedging instrument? We believe this is mainly because forward contracts allow the hedging of large volumes of transactions with extremely low costs. Indeed, the parties involved in negotiating a forward contract are typically companies that are exposed to currency risk and their nominated banks. The nominated bank typically charges a service fee, of less than 1% of the face value of the hedge amount, for acting as the counter-party in the transaction. So it is the nominal service fee that is the low cost. 2.2.2 Futures Markets: Futures contracts are the first descendant of forward contracts. Futures contracts were derived, based on the fundamental of forward contracts, but with standardized quality, quantity, time (maturity), as well as place for delivery. Like other financial derivatives, futures contracts were initially designed for commodity trading, but as commercial trading continually evolved, the initial de