International Trade Theories Essay Example for Free

International Trade Theories Essay 1. Theory of Mercantilism Introduction: Mercantilism is a trade theory holing that a country’s wealth is measured by its holdings of â€Å"treasure† which usually means its gold. The mercantilists proposed theory of mercantilism. They were a group of economists who preceded Adam Smith. The foundations of economic thought between 1500 and 1800 were based on mercantilism. Mercantilists believed that the world had a finite store of wealth; therefore, when one country got more, other countries had less. Mercantilists restricted imports and encouraged or subsidized exports as a conscious policy to make their citizens better off. Mercantilists judged the success of trade by the size of the trade balance. Mercantilism was a sixteenth-century economic philosophy that maintained that a country’s wealth was measured by its holdings of gold and silver. This required that the countries to maximize exports and minimize imports. The logic was transparent to sixteenth-century policy makers that if foreigners bought more goods from us than we bought from them, then the foreigners had to pay us the difference in gold and silver, enabling us to amass more treasure. With that treasure we could expand the nation’s global influence. Mercantilists pressed for favorable balance of trade (BOT) or balance of payments (BOP) as against the unfavorable one. In a way it is good because your currency appreciates with mounting surplus on the Fore front, and the country can attract more foreign capital infusion further strengthening the country’s economy, infrastructure, etc. Now China and Japan with enormous favorable BOT and BOP get all the benefits envisaged by mercantilists. According To Adam Smith- -Mercantilism is an economic theory popular in the 1500s and was the biggest reason for Europe’s desire to colonize new lands the theory states that there is a certain amount of wealth in the world and it is in a nations best interest to accumulate it through wealth, a nation can achieve power a country achieves wealth through producing and exporting more good then they import this theory was invented to serve the interest of the empire, not the colony Evaluation of Mercantilism Theory: Mercantilist writers have been lauded and criticized in the literature on foreign trade at least since Hume’s Political Discourses in 1752. Mercantilists have been criticized for everything from their views regarding the gains from trade to their self-promotion of the merchant’s role in society as being important. Mercantilist writers assumed that the economy will generally operate at a pace that leaves resources –land and labor – idle, but in reality the economy naturally tends to full employment. This is a â€Å"flaw† in the logical foundation of mercantilist thought. The regime of WTO has moved the world away from mercantilism by pressing for free trade with reduced protectionism. Theory of Neo-Mercantilism: Mercantilism is still in vogue. Mercantilist policies are politically attractive to some firms and their workers, as mercantilism benefits certain members of society. Modern supporters of these policies are known as neo-mercantilists, or protectionists. The neo-mercantilists want higher production through full employment and that every industry produces an exportable surplus leading to favorable BOT. Consciously or otherwise, every country is concerned about increasing export earnings. The merits of surging Fore surplus built through exports speaks well of a country’s capability to cater to world’s needs qualitatively, quantitatively and in varied product/service ranges. Every country does what is possible to meet this end. But the modern trade emphasis is ‘Export more and Import more’. Finally: The main economic system used during the sixteenth to eighteenth centuries. The main goal was to increase a nations wealth by imposing government regulation concerning all of the nations commercial interests. It was believed that national strength could be maximized by limiting imports via tariffs and maximizing exports. This approach assumes the wealth of a nation depends primarily on the possession of precious metals such as gold and silver. This type of system cannot be maintained forever, because the global economy would become stagnant if every country wanted to export and no one wanted to import. After a period of time, many people began to revolt against the idea of mercantilism and stressed the need for free trade. Mercantilism is a theory developed by the merchants; hence the name. It rests on the role of a strong state in supporting (state-granted) monopolies and protecting shipping and trading lanes. Mercantilism encourages exports and discourages imports. Gold and silver are used to keep score of the game played between nation-states, and represent the wealth of the nation. _______________________________________________________________ 2. Absolute Advantage theory Introduction: Adam Smith, in The Wealth of Nations, postulated that under free trade, each nation should specialize in producing those goods that it could produce most efficiently. Some of these would be exported to pay for the imports of goods that could be produced more efficiently elsewhere. Smith ridiculed the fear of trade comparing nations to households. Since every household finds it worthwhile to produce only some of its needs and to buy others with products it can seal, the same should apply to nations: It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy. The Taylor does not attempt to make his own shoes, but buys them from shoemaker What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom. If a foreign country can supply us with some part of the product of our own industry, employed in a way in which we have some advantage. The theory of absolute advantage is based on the assumption that the nation is absolutely better (i.e., more efficient) at production of certain goods than are its trading partners. Smith showed by his example of absolute advantage that both nations would gain from trade. ADAM SMITHS TRADE THEORY OF ABSOLUTE ADVANTAGE: The first classical theory of international trade was propounded by Adam Smith, the founder of classical economics. His theory is known as the Theory of Absolute Advantage. It may be possible for all the countries to produce all the commodities they need, in spite of resource constraint. But, the cost of production of goods for which a country is deficient in its resources would be exorbitantly high. It is better to import such goods rather than produce them. Most Countries therefore tend to specialize in producing commodities in which they have absolute advantage in cost of production. Therefore, most countries export goods which they can produce at a lower cost and import what they can produce at a higher cost. This common sense logic of international division of labor suggested by Adam Smith marks the beginning of modern theories of foreign trade. The theory of absolute advantage states that the basis of trade between the nations is the absolute advantage a country has in producing a commodity over the other countries. In simple words, two countries are able to trade between them because each one of them is able to produce at least one commodity at a comparatively lower cost. Assumptions: The theory of absolute advantage was advanced to buttress Smiths argument that if there was no government involvement in trade, and if each individual was left to do what in his or her own best interest, then there would be more goods and services available, prices would be reduced, and the wealth of each nation, measured as the welfare of the citizens, would increase. Smiths theory was offered to replace mercantilism. The Theory of Absolute Advantage and the Theory of Comparative Advantage rest on very strong assumptions, as follows: Two countries, two commodities assumed in both theories. The theories are obvious for this case. The three-by-three case (and those beyond) cannot be established analytically, and it is not even clear how the principle should be formalized. (See p. 3 of Ronald Jones, The Positive Theory of International Trade, Handbook of International Economics, R. Jones and P. Kenen (eds.), 1984.) Efficiency objective The Absolute and Comparative Advantage theories assume that total world production, and therefore efficiency, is the objective. Efficiency is not always a country goal. Zero Transportation Costs both theories presume that transportation costs between and within countries are zero. Factor Mobility/Immobility both theories presume that resources are absolutely mobile within a country and absolutely immobile between countries. Full employment Both theories assume full employment in each country. Comparative Advantage versus Absolute Advantage: As we can see from the example above, a country can have a comparative advantage in producing a good even if it is absolutely less efficient at producing that good. To understand this more clearly, think of an example of a doctor in private practice: A young doctor opens her own practice, working by herself, and within a few months has developed a substantial clientele. At first, she was performing all her clerical work—filing, typing and answering the phone—by herself. With an ever-busier schedule, however, she realizes that she could spend more time seeing patients, and thus see a greater number of patients, if she hired an assistant. As it turns out, the young professional is not only a brilliant doctor, but is also lightning-fast at typing and filing. She is, in fact, better at doing both jobs than the clerical assistant she hires. In other words, she has an absolute advantage at both tasks: medical diagnosis and clerical work. Does it make sense then for the doctor and her assistant to share both tasks, each spending part of the day diagnosing patients and doing clerical work? The answer is no. By having the assistant perform all the clerical work, the doctor is able to maximize her specialization and see more patients. The patients are undoubtedly better off too. In other words, even though the assistant is worse at performing both tasks, an economist would say that he nonetheless has a comparative advantage at clerical work. As you can see, by working together – trading their services – the doctor and the assistant are able to maximize their skills, making both better off. As these examples show, trade allows countries to specialize in the production of what they do best and make the most efficient use of their resources, thereby decreasing the price of both goods. No matter how inefficiently a country produces every kind of good, it can always be said to have a comparative advantage in at least one of those goods. That is the theory of comparative and absolute advantage. It helps explain what happens in the real world of international trade, and it offers broad guidance to countries as they decide which goods and services to produce and subsequently export, and which, in turn, to import. Trade in Theory and Practice: In reality, of course, trade specialization does not work precisely the way the theory of comparative advantage might suggest, for a number of reasons: No country specializes exclusively in the production and export of a single product or service. All countries produce at least some goods and services that other countries can produce more efficiently. A lower income country might, in theory, be able to produce a particular product more efficiently than the United States can but still not be able to identify American buyers or transport the item cheaply to the United States. As a result, U.S. firms continue to manufacture the product. Finally: The Scottish economist Adam Smith developed the trade theory of absolute advantage in 1776. A country that has an absolute advantage produces greater output of a good or service than other countries using the same amount of resources. Smith stated that tariffs and quotas should not restrict international trade; it should be allowed to flow according to market forces. Contrary to mercantilism Smith argued that a country should concentrate on production of goods in which it holds an absolute advantage. No country would then need to produce all the goods it consumed. The theory of absolute advantage destroys the mercantilist idea that international trade is a zero-sum game. 3. Comparative Advantage theory Introduction: David Ricardo, in 1817, enunciated his refinement of Smiths concept by postulating the principle of comparative advantage (as opposed to Smiths concept of absolute advantage). The theory of comparative advantage states that even if a country is able to produce all its good at lower costs than another country can, trade still benefits both countries, based on comparative costs. His writings demonstrated what has become known as: the principle of comparative advantage: a nation, like a person, gains from the trade by exporting the goods or services in which it has its greatest comparative advantage in productivity and importing those in which it has the least comparative advantage. The key word is comparative, meaning relative and not necessarily absolute. There are gains from trade whenever the relative price ratios of two goods differ under international exchange for what would be under conditions of no trade. In addition, the theory of comparative advantage demonstrates that countries jointly benefit from trade (under the assumption of both goods). With the theory of absolute advantage, Ricardos theory of comparative advantage does not answer why production cost differ within each country and also no consideration is given to the possibility of producing the same goods with different combinations of factors. Assumption: A situation in which a country, individual, company or region can produce a good at a lower opportunity cost than a competitor. This theory that global efficiency gains may still result from trade if a country specializes in those products it can produce more efficiently than other products-regardless of whether other countries can produce those same products even more efficiently. It denotes gains from trade will occur even in a country that has absolute advantage in all products because the country must give up less efficient output to produce more efficient output. Assumptions underlying the concept of comparative advantage Perfect occupational mobility of factors of production resources used in one industry can be switched into another without any loss of efficiency Constant returns to scale (i.e. doubling the inputs in each country leads to a doubling of total output) No externalities arising from production and/or consumption Transportation costs are ignored comparative advantage and international trade: Comparative advantage exists when a country has a margin of superiority in the production of a good or service i.e. where the opportunity cost of production is lower. The basic theory of comparative advantage was developed by David Ricardo Ricardo’s theory of comparative advantage was further developed by Heckscher, Ohlin and Samuelson who argued that countries have different factor endowments of labor, land and capital inputs. Countries will specialize in and export those products which use intensively the factors of production which they are most endowed. If each country specializes in those goods and services where they have an advantage, then total output and economic welfare can be increased (under certain assumptions). This is true even if one nation has an absolute advantage over another country. Worked example of comparative advantage consider the data in the following table: | Pre-Specialization | CD Players | Personal Computers | | UK | 2,000 | 500 | | Japan | 4,000 | 2,000 | | Total Output | 6,000 | 2,500 | After trade has taken place, total output of goods available to consumers in both countries has grown. UKs consumption of CD players has increased by 200 and they have an extra 100 PCs. For Japan, they have an extra 200 CD players and 200 PCs. If businesses exploit increasing returns to scale (i.e. economies of scale) when they specialize, the potential gains from trade are much greater. The idea that specialization should lead to increasing returns is associated with economists such as Paul Romer and Paul Ormerod Determinants regarding comparative advantage: Comparative advantage is a dynamic concept. It can and does change over time. Some businesses find they have enjoyed a comparative advantage in one product for several years only to face increasing competition as rival producers from other countries enter their markets. For a country, the following factors are important in determining the relative costs of production: The quantity and quality of factors of production available (e.g. the size and efficiency of the available labor force and the productivity of the existing stock of capital inputs). If an economy can improve the quality of its labor force and increase the stock of capital available it can expand the productive potential in industries in which it has an advantage. Investment in research development (important in industries where patents give some firms significant market advantage) for more information on this have a look at this page Movements in the exchange rate. An appreciation of the exchange rate can cause exports from a country to increase in price. This makes them less competitive in international markets. Long-term rates of inflation compared to other countries. For example if average inflation in Country X is 4% whilst in Country B it is 8% over a number of years, the goods and services produced by Country X will become relatively more expensive over time. This worsens their competitiveness and causes a switch in comparative advantage. Import controls such as tariffs and quotas that can be used to create an artificial comparative advantage for a countrys domestic producers- although most countries agree to abide by international trade agreements. Non-price competitiveness of producers (e.g. product design, reliability, quality of after-sales support) Criticisms: However, the principle of comparative advantage can be criticized in a several ways: †¢ It may overstate the benefits of specialization by ignoring a number of costs. These costs include transport costs and any external costs associated with trade, such as air and sea pollution. †¢ The theory also assumes perfect mobility of factors without any diminishing returns. The reality may be very different. Output from factor inputs is likely to be subject to diminishing returns. This will make the PPF for each country non-linear and bowed outwards. †¢ Complete specialization might create structural unemployment as some workers cannot transfer from one sector to another. †¢ Relative prices and exchange rates are not taken into account in the simple theory of comparative advantage. For example if the price of X rises relative to Y, the benefit of increasing output of X increases. †¢ Comparative advantage is not a static concept it may change over time. For example, nonrenewable resources can slowly run out, increasing the costs of production, and reducing the gains from trade. †¢ Many countries strive for food security, meaning that even if they should specialise in non-food products, they still prefer to keep a minimum level of food production. †¢ Finally, the principle of comparative advantage is derived from a simple two good/two country model. The real world is far more complex, with countries exporting and importing many different goods and services. Finally: It seems obvious that if one country is better at producing one good and another country is better at producing a different good (assuming both countries demand both goods) that they should trade. What happens if one country is better at producing both goods? Should the two countries still trade? This question brings into play the theory of comparative advantage and opportunity costs. The everyday choices that we make are, without exception, made at the expense of pursuing one or several other choices. When you decide what to wear, what to eat for dinner, or what to do on Saturday night, you are making a choice that denies you the opportunity to explore other options. ______________________________________________________________ 4. Heckscher-Ohlin theory Introduction: the Heckscher–Ohlin theorem is one of the four critical theorems of the Heckscher–Ohlin model. It states that a country will export goods that use its abundant factors intensively, and import goods that use its scarce factors intensively. In the two-factor case, it states: A capital-abundant country will export the capital-intensive good, while the labor-abundant country will export the labor-intensive good. Definition: This theory said that differences in countries’ endowment of labor compared to their endowment of land or capital explain differences in the cost of production factors. Assumption: The critical assumption of the Heckscher–Ohlin model is that the two countries are identical, except for the difference in resource endowments. This also implies that the aggregate preferences are the same. The relative abundance in capital will cause the capital-abundant country to produce the capital-intensive good cheaper than the labor-abundant country and vice versa. Initially, when the countries are not trading: the price of capital-intensive good in capital-abundant country will be bid down relative to the price of the good in the other country, the price of labor-intensive good in labor-abundant country will be bid down relative to the price of the good in the other country.Once trade is allowed, profit-seeking firms will move their products to the markets that have (temporary) higher price. As a result: the capital-abundant country will export the capital-intensive good, the labor-abundant country will export the labor-intensive good. Features of the model: †¢ Relative endowments of the factors of production (land, labor, and capital) determine a countrys comparative advantage. Countries have comparative advantages in those goods for which the required factors of production are relatively abundant locally. This is because the profitability of goods is determined by input costs. Goods that require inputs that are locally abundant will be cheaper to produce than those goods that require inputs that are locally scarce. †¢ For example, a country where capital and land are abundant but labor is scarce will have comparative advantage in goods that require lots of capital and land, but little labor — grains. If capital and land are abundant, their prices will be low. As they are the main factors used in the production of grain, the price of grain will also be low—and thus attractive for both local consumption and export. Labor intensive goods on the other hand will be very expensive to produce since labor is scarce and its price is high. Therefore, the country is better off importing those goods. Factor Proportions Theory: Trade theory, like all of economic theory, changed drastically in the first half of the twentieth century. The factor proportions theory developed by the Swedish economist Eli Heckscher and later expanded by his former graduate student Bertil Ohlin formed the major theory of international trade that is widely is still widely accepted today. Whereas Smith and Ricardo emphasized a labor theory of value the factor proportions theory was based on a more modern concept of production that raised capital to the same level of importance as labor. Factor Intensity in Production: The factor intensity in production theory considered two factor of production, labor and capital. Technology determines the way they combine to form a product. Different products required different proportions of the two factors of production. It is easy to see how the factor proportions of how a product is produced differs substantially among groups of products. For the manufacturing of leather footwear is still a relatively labor intensive process even with the most sophisticated leather treatment and patterning machinery. Other products such as computer memory chips, however although requiring some highly skilled labor require massive quantities of capital for production and development and the manufacturing facilities needed for clean production to ensure the extremely high quality demanded in the industry. The concept of factor proportions is very useful in the comparison of the production processes of goods. According to factor proportions theory, factor intensities depend on the state of technology and the current method of manufacturing a product. The theory assumed that the same technology of production would be used for the same goods in all countries. It is not therefore differences in the efficiency of production that will determine trade between countries at it did in classical theory. Classical theory implicitly assumed that technology or the productivity of labor is different across countries. Otherwise there would be no logical explanation as to why one country requires more units of labor to produce a unit of output than another country. Factor proportions theory assumed no such productivity differences. Factor Endowments, Factor Prices, And Comparative Advantage: If there is no difference in technology or productivity of factors across countries, what then determines comparative advantage in production and export? The answer is that factor prices determine cost differences. And these prices are determined by the endowments of labor and capital the country possesses. The theory assumes that labor and capital are immobile, meaning they cannot move across country borders. Therefore the countrys endowment determines the relative costs of labor and capital as compared to other countries. Each country is defined or measured by the amount of labor and capital that it possesses. If a country has when compared with other countries more labor and less capital it would be characterized as relatively labor abundant. That which is more plentiful is cheaper; so a labor abundant country would therefore have relatively cheap labor. For a country such as China possesses a relatively large endowment of labor and a relatively smaller endowment of capital. At the same time Japan is a relatively capital abundant country with a relatively smaller endowment of labor. China possesses relatively cheaper labor and should therefore specialize in the production and export of labor intensive products. Japan possesses relatively cheap capital and should specialize in the production and export of capital intensive products. Comparative advantage is derived not from the productivity of a country, but from the relative abundance of its factors of production. Using these assumptions, factor proportions theory stated that a country should specialize in the production and export of those product that use intensively its relatively abundant factor. (i) A country that is relatively labor abundant should specialize in the production of relatively labor intensive goods. It should then export these labor intensive goods in exchange for capital intensive goods. (ii) A country that is relatively capital abundant should specialized in the production of relatively capital intensive goods. It should then export these capital intensive goods in exchange for labor intensive goods. Finally: The Heckscher-Ohlin theory states that international and interregional differences in production costs occur because of differences in the supply of production factors: Commodities requiring for their production much of [abundant factors of production] and little of [scarce factors] are exported in exchange for goods that call for factors in the opposite proportions. Thus indirectly, factors in abundant supply are exported and factors in scanty supply are imported (Ohlin, 1933).These simple statements lead to an important conclusion: under free trade, countries export the products that use their scarce factors intensively and imports the products using their scarce factors intensively.

Health Policy And The Social Determinants

Health Policy And The Social Determinants INEQUALITIES IN MENTAL HEALTH Introduction and definitions: Mental health is described by the World Health Organization (WHO) as: a state of well-being in which the individual realizes his or her own abilities, can cope with the normal stresses of life, can work productively and fruitfully, and is able to make a contribution to his or her community (WHO 2001a, p.1). According to NHS website every year in the UK, more than 250,000 people are admitted to psychiatric hospitals and over 4,000 people commit suicide (http://www.nhs.uk/conditions/mental-health/Pages/Introduction.aspx , accessed 20-4-2010) Mental health inequality is a long standing problem that has been tackled for decades by epidemiologists, sociologists and health professionals. And because this problem has both strong social and health aspect there is no unified approach to identification and resolution. From Sociologists viewpoint inequality with mental health is a problem that has two main explanations: people are poor because they have mentally illness that makes them unable to keep work probably (social selection), or they become mentally ill under the stress of being poor (social causation). However, in modern psychiatry other factors are believed to involve in the etiology such as genetic factors, diet, and hormonal disturbance which interact with personality disorders or emotional state to produce mental illness. The problem of inequality is not only about serious mental illness but we can expand the definition of mental health inequality to include everyday feelings which is considered by United Kingdom Department of Health to be public health indicator: How people feel is not an elusive or abstract concept, but a significant public health indicator; as significant as rates of smoking, obesity and physical activity (Mental Well-being Impact Assessment ,2009) The table below gives examples of those factors that promote or reduce opportunities for good mental health (DOH 2001): MENTAL HEALTH PROTECTIVE FACTORS INTERNAL PROTECTIVE FACTORS EXTERNAL PROTECTIVE FACTORS EMOTIONAL RESILIENCE physical health self esteem/positive sense of self ability to manage conflict ability to learn CITIZENSHIP a positive experience of early bonding positive experience of attachment ability to make, maintain and break relationships communication skills feeling of acceptance EMOTIONAL RESILIENCE basic needs met food, warmth, shelter CITIZENSHIP societal or community validation supportive social network positive role models employment HEALTHY STRUCTURES positive educational experiences safe and secure environment in which to live supportive political infrastructure live within time of peace (absence of conflict) MENTAL HEALTH DEMOTING/VULNERABILITY FACTORS INTERNAL VULNERABLE FACTORS EXTERNAL VULNERABLE FACTORS EMOTIONAL RESILIENCE congenital illness, infirmity or disability lack of self esteem and social status feeling of helplessness problems with sexuality or sexual orientation CITIZENSHIP poor quality of relationships feeling of isolation feeling of institutionalisation experience of dissonance, conflict, or alienation EMOTIONAL RESILIENCE needs not being met hunger, cold, homelessness/poor housing conditions etc. experience separation and loss experience of abuse or violence substance misuse family history of psychiatric disorder CITIZENSHIP cultural conflict experience of alienation discrimination the negative experience of being stigmatised lack of autonomy the negative experience of peer pressure unemployment HEALTHY STRUCTURES value systems effects of poverty negative physical environment Table 1: factors that promote or reduce opportunities for good mental health What is the evidence on mental health inequalities? Socio-economic status: Community-based epidemiological studies across countries and over time have consistently identified an inverse relationship between Socio-economic status and prevalence rates of schizophrenia .The ratio between the current prevalence (defined as period prevalence up to one-year prevalence) of the disorder among low-SES and high-SES people was 3.4, whereas the ratio for lifetime prevalence was 2.4 (Saraceno et al,2005), and in Britain, twice as many suicides occur among people from the most lower SES (Blamey A et al ,2002). There are five hypotheses to explain this relation (Hudson 2005): Hypothesis 1: Economic stress. The inverse SES-mental illness correlation is a speci ¬Ã‚ c outcome of stressful economic conditions, such as poverty, unemployment, and housing unaffordability. Hypothesis 2: Family fragmentation. The inverse SES-mental illness correlation is a function of the fragmentation of family structure and lack of family supports. Hypothesis 3: Geographic drift. The inverse SES-mental illness correlation results from the movement of individuals from higher to lower SES communities subsequent to their initial hospitalization. Hypothesis 4: Socioeconomic drift. The inverse SES-mental illness correlation results from declining employment subsequent to initial hospitalization. Hypothesis 5: Intergenerational drift. The inverse SES-mental illness correlation is a function of declines in community SES levels of hospitalized adolescents between their  ¬Ã‚ rst hospitalization and their most recent hospitalization after turning 18 Age: In elderly: National Institute for Mental Health in England (NIMHE) has reported the following point regarding mental health problems in elderly : 3million older people in the UK experience symptoms of mental health problems the annual economic burden of late onset dementia is  £4.3 billion which is greater than that for stroke, cancer and heart disease combined dementia affects 5% of those aged over 65 and 20% over 80 10-15% of all older people meet the clinical criteria for a diagnosis of depression these numbers are set to increase by a third over the next 15 years (NIMHE, 2009). Mental health problems in elderly often go unrecognised. Even where they are acknowledged, they are often inadequately or inappropriately managed (DH 2005c). The UK inquiry into mental health and well-being in later life (2006) identified five factors that influence the mental health of older people: discrimination (for example, by age or culture); participation in meaningful activity; relationships; physical health (including physical capability to undertake everyday tasks); and poverty. in children : WHO states, that the à ¢Ã¢â€š ¬Ã… ¾development of a child and adolescent mental health policy requires an understanding of well-being and the prevalence of mental health problems among children and adolescents(child and adolescent mental health policy, 2006) However, there is an evidence that levels of distress and dysfunction during childhood are considerably high between 11 per cent and 26 per cent, while the severe cases that require interventions are around 3-6 per cent of people under 16 years of age (Bird et al.1988; Costello et al. 1988). Emotionally disturbed children are exposed to abuse or neglect in their family of origin, with estimates up to 65 per cent (Zeigler-Dendy,1989). Gender: Women and Mental Health Mental health problems are more common among women than men with higher incidence rates of depressive disorder than men (Palmer, 2003). There are many factors to explain this, first: Socio-economic factors such as poverty and poor housing conditions cause greater stress and fear of future amongst women. lack of confidence and self-esteem may be the results of educational factors such negative school experiences , Living in unsafe neighbourhoods cause stress and anxiety amongst women , dependency on prescription drugs (for depressive and sleeping disorders) often leads to anxiety. Men and Mental Health Men tend to be more vulnerable to mental health problems and suicide than ever before due for a number of reasons including: Men in general are less likely to talk about their problems or feelings or to admit that they have depression. Men are less likely to seek help for mental and emotional health problems. Unemployment has a greater impact on men in general. Some mental disorders are more serious in men for example suicide is the leading cause of death among young men. The rate for young men aged 10-24 years is higher among those from deprived communities compared with those from affluent communities. Men also experience earlier onset of schizophrenia with poorer clinical outcomes (Piccinelli, 1997) Risk groups for mental illness in men include (DHSSPS,2004): Older men: they are less willing to use health services because of the perception that these services are for older women. Divorced men because they have less support available from family , and services designed to meet the needs of this group is particularly. Male victims of domestic abuse -especially boys in rural areas. Gay and bisexual men few services are available to help men deal with problems such as homophobic bullying and harassment. Male survivors of sexual abuse lack of co-ordinated support for adult survivors of abuse Fathers despite examples of good practice, men have comparatively less access to support services than women, to enable them to cope with the stresses of parenthood. Bereaved men lack of appropriate services specifically targeted at men who have experienced bereavement. Men in rural areas particularly isolated in terms of service access. Young offenders inadequate psychological services in juvenile justice centres despite the high proportion of young people entering the juvenile system with a range of mental health problems. Ethnic group: A review by Commission for Healthcare Audit and Inspection,( Count me in, 2009) noted that Rates of admission were lower than the national average among the White British, Indian and Chinese groups, and were average for the Pakistani and Bangladeshi groups. They were higher than average among other minority ethnic groups particularly in the Black Caribbean, Black African, Other Black, White/Black Caribbean Mixed and White/Black African Mixed groups with rates over three times higher than average, and nine times higher in the Other Black group. Employment Status and Mental Health Having a job helps to maintain better mental health than not having one, but this is not always true as many factors involve For example, jobs which are unsatisfactory or insecure can be as harmful to health as unemployment (Wilkinson et al , 2003). Anxiety about job security, lack of job control, perceived effort-reward imbalance, negative relationships in the workplace, including bullying and harassment can have negative mental health consequences. According to OSC Health Inequalities Review (2006) people with a common mental disorder are five times more likely to be unemployed, and if they have work they are more likely to be excluded, people with an identified mental health problem are twice as likely to be on income support and four to five times more likely to be getting invalidity benefits. A person with a diagnosis of a psychotic illness leaves him with only a one in four chance of being in employment. Geographic variation: Studies result on geographic variation of mental illness are inconsistent , for example Hollie has concluded that In mental health problems there is substantial variation at the household level but with no evidence of postcode unit variation and no association with residential environmental quality or geographical accessibility. It is believed that in common mental disorder the psychosocial environment is more important than the physical environment (Hollie et al, 2007) On the other hand, a recent Swedish study of 4.4 million adults found that the incidence rates of psychosis and depression rose with increasing levels of urbanisation (Sundquist K.et al.,2004). Another study by Royal Commission on Environmental Pollution shows that people from densely populated areas had a 68-77% and 12-20% higher risk of developing any psychotic illness and depression respectively when compared to a control group in rural areas. Within urban areas the rates for psychoses map closely those for deprivation and the size of a city also matters; in London schizophrenia rates are about twice those in Bristol or Nottingham (Royal Commission on Environmental Pollution, 2007a, 2007b). Disability and Mental Health: Definition: According to Disability Discrimination Act (1995) (DDA) A person has a disability if he has a physical or mental impairment which has substantial and long-term adverse affect on his ability to carry out normal day to day activities In the light of this definition we can focus on mental health inequality of three groups of people: à ¢Ã¢â€š ¬Ã‚ ¢ People suffer socio-economic disadvantage caused by stigma and discrimination associated with their mental health problems. à ¢Ã¢â€š ¬Ã‚ ¢ People with both mental health problems and physical disabilities. à ¢Ã¢â€š ¬Ã‚ ¢ People with physical disabilities, whose experience discrimination and stigma because of their physical impairment and become mentally ill because of this experience. Disabled people are more likely to experience stress and emotional instability than those who are not disabled. a report by the Equality Commission for Northern Ireland (2003) has found that whilst 34% of those who were not disabled had experienced quite a lot or a great deal of stress in the last 12 months prior to the survey, the percentage rose to 52% for disabled people. Experiences of depression within the last 12 months were higher among women who were disabled (44%) than men (34%). Conclusion: Inequality in mental health is as important as any other form of health inequality, however the interaction between social and personal level in mental illness makes it more difficult to address different kinds of mental health Inequalities associated with it. Question 2 : word count (2000) Tackling inequalities in mental health Introduction: Mental illness, among other disorders, is widely considered as a significant determinant of both health and social outcomes and many studies have spotted mental health disorders as both consequence and cause of inequalities and social exclusion. Mental health diseases have two distinct characteristics as a public health problem: first very high rates of prevalence; secondly : onset is usually at a much younger age than for other health problem , Mental health diseases effects all areas of peoples lives : personal relationships, employment, income and educational performance. (Friedli and Parsonage , 2007; McDaid , 2007) Who is at risk for mental health problems? Defining risk groups enables policies makers to determine how to manage available resources to achieve better health equality. Furthermore, these groups are the main targets for health equality promotional programs. A review of recent evidences on mental health inequalities can help to define the large groups at risk: à ¢Ã¢â€š ¬Ã‚ ¢ People living in institutional settings: such as care homes or those in secure care or subject to detention. à ¢Ã¢â€š ¬Ã‚ ¢ People living in unhealthy settings and who may not be reached by traditional health care such as veterans or the homeless. à ¢Ã¢â€š ¬Ã‚ ¢ People with physical and/or mental illness, people misusing drugs, people with alcohol problems, people who are victims of violence and abuse. à ¢Ã¢â€š ¬Ã‚ ¢children whose parents have problems with alcohol or with drugs, children whose parents have a mental illness and looked after and accommodated children, à ¢Ã¢â€š ¬Ã‚ ¢ People from groups who experience discrimination. Key policies: These policies can be long term policies focusing on deep change over long period or short term seeking fast results such as health promotion. Long term aims: Inequalities in mental health are not only about equality of access, but also about quality of access. In the year 2009 Mental Health Foundation has published a report on resilience and inequalities in mental health (Mental Health, Resilience and Inequalities ,2009) This report mentioned four priorities for action: 1-Social, cultural and economic conditions that support family life: This can be done by reduce child poverty , parenting skills training and high quality preschool education , increasing access to safe places for children to play, especially outdoors, inter-agency partnerships to reduce violence and sexual abuse. 2- Education that helps children both economically and emotionally by: schools health promoting programs, involving teachers, pupils, parents and supporting parents to improve the home learning environment (HLE) support social, sports and creative achievements, as well as academic performance 3- Reduce unemployment and poverty levels and promote and protect mental health by: Supporting efforts to improve pay, work conditions and job security. Facilitate early referral to workplace based support for employees with psychiatric symptoms or personal crises to prevent employment breakdown. 4- Tackle economic and social problems, which cause the psychological distress. Such as housing/transport problems, isolation, debt, beside that art and leisure centres can help to reduce stress too. However, these strategies take long time to be effective, that means the need for more rapid actions or short term aims. Short term aims: Mental health promotion: To build an effective strategy to promotion for health equality the following points should be achieved: à ¢Ã¢â€š ¬Ã‚ ¢ Comprehensive: Mental Health promotion is not only the responsibility of health services alone; other sectors of society should join that effort. à ¢Ã¢â€š ¬Ã‚ ¢ Based on evidence à ¢Ã¢â€š ¬Ã‚ ¢ Based on the needs of the local communities, and with the agreement of these communities. à ¢Ã¢â€š ¬Ã‚ ¢ Subject to evaluation: The strategy should be subject to critical evaluation and can be changed when necessary. A good example of such strategy is the Mental health national evidence based standards which have been issued by The National Service Framework for Mental Health (DOH 1999). The purpose of these standards is to deal with mental health discrimination and social exclusion associated with mental health problems. And that can be achieved by promotion: promote mental health for the whole society, working with individuals and communities Stop discrimination against individuals and groups with mental health problems, and take steps towards better promotion for their social inclusion. Tackling inequalities for special risk groups: The Suicide prevention strategy: One of the best example is the strategy based on work by (DOH 2002) and The NSPSE (National Suicide Prevention Strategy for England), the report was the result of literature review of suicide prevention programs around the world and has reached the following goals: 1. To reduce the risk in key high-risk group. 2. To promote mental well-being in the wider population. 3. To reduce the availability and lethality of suicide methods. 4. To improve the reporting of suicide behavior in the media. 5. To promote research on suicide and suicide prevention. 6. To improve monitoring of progress towards the target for reducing suicide. Women and Mental Health: Preventing: The results of UK-based survey (Williams, 2002) shows that mental health services for women: Do not meet womens mental health needs. Can replicate inequalities. Can be unsafe for women. Can be insensitive to the effects of gender and other social inequalities, such as race, class and age However, in their response to a survey conducted in England and Wales, women said that they wanted services that: à ¢Ã¢â€š ¬Ã‚ ¢ Keep them feel safe. à ¢Ã¢â€š ¬Ã‚ ¢ Promote empowerment, choice and self-determination. à ¢Ã¢â€š ¬Ã‚ ¢ Place importance on the underlying causes and context of their distress in addition to their symptoms. à ¢Ã¢â€š ¬Ã‚ ¢ Addressee important issues relating to their roles as mothers, the need for safe accommodation and access to education, training and work opportunities. à ¢Ã¢â€š ¬Ã‚ ¢ Value their strengths, abilities and potential for recovery. (DH, 2002a) These points are important to build a need-based action plan for better equality in health services. Men and Mental Health: Preventing: The Equal Minds conference workshop which had special focus on men and mental health listed five service design features targeted at mens mental health and well-being (equal minds, 2005): à ¢Ã¢â€š ¬Ã‚ ¢ Accessibility and flexibility of services regarding time, location. For example, Select places familiar for men, Men Only sessions run by male staff, make use of some activities, such as sport and physical activity programmes. à ¢Ã¢â€š ¬Ã‚ ¢ Holistic approach, works on the person as a whole, not just on mental health. à ¢Ã¢â€š ¬Ã‚ ¢ Early intervention to prevent anxieties and concerns build up, especially in stress and anger management. à ¢Ã¢â€š ¬Ã‚ ¢ Trust and confidence are important to solve problems of identity and role that can underlay mens anxieties and self-perceptions or lack of self-esteem. Ethnicity and Mental Health: Preventing: The main problem in this field was the barriers to access services. Barriers include: à ¢Ã¢â€š ¬Ã‚ ¢ Language. à ¢Ã¢â€š ¬Ã‚ ¢ Stereotyping. à ¢Ã¢â€š ¬Ã‚ ¢ Lack of awareness or understandings of mental illness. The report Inside Outside (Sashidharan, 2003) which addresses mental health services for people from black and minority ethnic communities in England and Wales. Suggest that patients from all minority ethnic groups are more likely than white majority patients: à ¢Ã¢â€š ¬Ã‚ ¢ To follow aversive pathways into specialist mental health care. à ¢Ã¢â€š ¬Ã‚ ¢ To be admitted compulsorily (there are differences also between ethnic groups at all ages). à ¢Ã¢â€š ¬Ã‚ ¢ To be misdiagnosed. à ¢Ã¢â€š ¬Ã‚ ¢ To be prescribed drugs and Electroconvulsive therapy (ECT), more than talking therapies. à ¢Ã¢â€š ¬Ã‚ ¢ To have higher readmission rates and stay for longer periods in hospital. à ¢Ã¢â€š ¬Ã‚ ¢ To be admitted to secure care/forensic environments. à ¢Ã¢â€š ¬Ã‚ ¢ Their social care and psychological needs are less likely to be addressee within the care planning process. à ¢Ã¢â€š ¬Ã‚ ¢ To have worse outcomes. A strategic approach in Ethnicity and Mental Health: In England and Wales a framework have been developed for action for delivering race equality in mental health (DH, 2003b) The framework focuses on three building blocks which are essential to improved outcomes and experiences of people from black and minority ethnic communities: à ¢Ã¢â€š ¬Ã‚ ¢ Information of better quality and more intelligently used. à ¢Ã¢â€š ¬Ã‚ ¢ Services which are more appropriate and responsive. à ¢Ã¢â€š ¬Ã‚ ¢ Increased community engagement In other words any approach should take in consider both quality of health services and the socio-economic disadvantages experienced by people from ethnic communities. Some suggested steps for this approach may include: Providing interpretation and translation services beside mental health service to insure highest possible quality. Adopting equalities practice in mental health services, that mean better understanding for cultural identity, the impact of racism, and culture differences in expression of mental distress. Developing assessment and diagnostic tools that can better assess patients from different backgrounds and ethnicities. Ensuring that services understand and respect spiritual requirements for different cultures. Ensuring access equality to culturally appropriate services including, counseling, psychotherapy and advocacy. Addressing common problem for people from black and minority communities, such as housing, employment, welfare benefits, and child-care. Disability and Mental Health: people with disabilities may experience high levels of socio-economic disadvantage due to discrimination and stigma , this group need a special interest regarding mental health services , they are liable for what Rogers and Pilgrim (2003) described :inequalities created by service provision. Mental health services for disable people should be customized to their needs, some recommendations for such services may include: Promotion for mental health, well-being and living with disability. Early intervention: for people who show symptoms for possible mental illness. Personalised care based on individuals needs and wishes Stigma: work for better social inclusion and tackling stigma and discrimination associated with some disabilities. Elderly and mental health: In order to achieve better equality for this group, policy makers should insure better access to mental health services on the first place. In the year 2005 the Department of Health published a report titled Securing Better Mental Health for Older Adults to launch a new programme to bring together mental health and older peoples policy in order to improve services for older people with mental health problems. The National Directors for older people and mental health promoted the dual principles of: à ¢Ã¢â€š ¬Ã‚ ¢ Delivering non-discriminatory mental health and care services available on the basis of need, not age and à ¢Ã¢â€š ¬Ã‚ ¢ Holistic, person-centred older peoples health and care services which address mental as well as physical health needs Here, it is essential to emphasis the importance of specialist mental health service for older adults. Sexual Orientation and Mental Health: In this group health promotion plays a great role to address the mental problems associated with sexual orientation. PACE organization has drawn up a set of practice guidelines for working with lesbian, gay and bisexual people in mental health services (PACE guideline.2006). The guidelines suggest promoting services and resources specifically for LGB people, including services such counselling and advocacy provided by LGB organisations. In response to these guidelines and studies about LGB such as (McNair et al, 2001). Mental health services for LGB people should: Reflect upon the homophobia and heterosexism that LGBT people may experience within mental health services. Enhance awareness of LGBT people problems, and the forms of discrimination and social exclusion they may face. Consider the nature of a culturally competent for LGBT people Preventing in Mental Health Problems: people with mental health problem are in need for resilience factors that enable them to recover from mental distress and to fight the effects of discrimination and stigma, we can name some of these factors such as confiding relationships, social networks, self-determination, financial security, however, support health services are essential for individual recovery and to achieve socially inclusive accepting communities (Dunn, 1999). Examples for these services can be found in report on Mental Health and Social Exclusion which has been published by Social Exclusion Unit. The report included a 27-point Action Plan aimed at tackling stigma and discrimination, focusing on the role of health and social care in addressing problems of social exclusion, unemployment, and supporting families and community participation through ensuring access to goods and services such as housing, financial advice and transport (SEU,2004). Beyond this report, it is important that policy makers be aware of connection between inequalities and mental health as a result and a cause, this will encourage more holistic approach that aim prevention on the long run. Conclusion: It is essential to put the different recommendations on mental health inequalities into everyday practice , for example a recent study by Glasgow Centre for Population Health found that policies are not driving practice for reducing inequalities in mental health within primary care, and the primary care organization studied is not conducive to addressing inequalities in mental health. (Craig, 2009). For that reason, it is the responsibility of government, health services and health professionals to put these strategies and plans into action to insure a better and healthier society.

The Overuse Of Internet Surfing Media Essay

The Overuse Of Internet Surfing Media Essay We use the internet for our own favor and interest. It depends what we enjoy the internet surfing for; some like using instant messaging and face book. Now they are the most excessively used internet programs. Sometimes people do that in order to solve some mental disorders. Such as feeling isolated, or having lake of self-confidence. Meeting people over the internet and not having to meet them in person, solves their feeling of insecurity. Others are addicted to gaming on the internet, such as playing poker and chess. They are real life addictive games and having the opportunity to have them online, causes the same effect on them as they are in real life. There are many of internet addiction types like mental disorders cause people to reflect their sickness to their desired object of addiction. Some people are addictive to shopping, games, or drugs. In our case, the people addicted to the internet and computers have a lack of self-confidence and a tendency to feel shy in public. They are not capable to make a circle of friends as normal people do in their lives. So they choose making friends online, which is a much easier way for them to pursue their need. Also they use the internet as an escape from life troubles; whether its problems they face at home or outside in their daily life routines. Maybe playing some games or shopping online gives them the feeling of security within them. And helps them overcome their mental struggles. Basically, it makes them forget about their outside world and focus their attention to the inside wide world of the internet and computer use. This type of internet addiction, when people tend to gain their self-confidence through its usage is the most dangerous type of all. It could harm people, who are tending to get to know strangers through the internet chatting, It could lead to crimes such as theft and sexual harassment. It also causes them to neglect their outside world of communication and only feel secure while using the internet. Meaning they will tend to be more sociable and feel lively only while being on their computer; when this is the negative way of pursuing their careers and social life. The more time they spend online, the more they gain their self-esteem. Its like standing in front of a mirror before leaving their homes to go out, this way they make sure they look good and confident enough before they leave. Its the same for the internet use, after they get the security feeling within themselves. They feel completely relieved. The general causes of internet addiction are divided to certain categories; which lets us understand where the overuse of internet comes from. First thing we face generally is curiosity. Usually some of us are eager to know a lot about the technology which grows every day now. And most of these people are in their 40s and 50s. The ones who doesnt have enough information and practice with the internet use; so their curiosity drives them to start surfing the internet and learning the different ways of the computer use. Such as googgling (Google), chatting online or even gaming for the elders. The next category is the development and renewal of self. Exploring the internet is actually a self-development step; learning about it makes you in hold of everything in the world now. Connected is how you feel when you go through the internet. Its everything we use around the world now; nothing can go on without it. You can find anything concerning the subject of your interest easily and with full information about it. You need to update your look, you surf the internet. Or if there is a piece of information youd to like expand your understanding about. Certain types of food youd like to cook. Everything you need youll find through the internet, and especially if its a self-development and renewal situation. Surfing the internet made it easier for people who make researches and always in need of books to help them fulfill their search. Your desired book of interest can easily be found on the internet now. You no longer need to go to a library and search through the books to find your desired information to complete a research. Now you can go online, search the name of the book, and easily find quotations for it and a full biography about it and its author. You can even find the whole book to read instead of buying from a book store. The same goes to magazines and newspapers; if you have missed a weeks newspaper edition or a magazines issue. You can simply find it online, read it all and maybe save the needed pages for your record. The internet has made it so easy for people around the world to pursue their lives and careers outside or even from inside their homes. It has made everything easily accessible and far simpler. But that doesnt mean that it is the most trusted source of informat ion of all. Technology is definitely the reason why our lives are growing rapidly, and its why the world is connected to one another. Its the only way we get better at what we do, renew ourselves and explore what is around us. But we must still be wary of the Internet as it can be addictive and that is unhealthy. Its the reason why we ignore our lives, routines, and activities. Moving away from causes, this paper will now discuss the effects of Internet addiction The first effect of the internet addiction is obviously the amount of time wasted on it. Its usually more than the normal time that should be spent online. It used excessively, and sometimes out of control. Usually its used a lot when not needed at all; like when using face book more than 8 hours a day isnt necessary but you always feel the urge of needing to use it. When its nothing beneficial in the end; same for chatting online; some people have got a purpose of using it. Maybe to stay connected to their families overseas. But some others just go online all day long for the fun of it. They make new friends, or maybe just stay online because they feel like they need to be. Our second effect would be lack of sleep; since they use the internet excessively this way they are losing the feeling of sleep. The need of it isnt as important to them anymore. The computer symbolizes a huge importance in their lives now that taking care of their health is totally ignored. Also the location of the computer is a huge aspect of why you feel the urge to use it frequently. For example if you place it in the bedroom, it causes a big percentage of lack of sleep. Since its always there in front of you and it gets to be irresistible to use. The third effect would be a low job performance and having poor grades in school. People tend to be online more frequently at work, since they are always in access with their computers. Also some of them arent as busy so they use the computer as a way of entertainment. But the majority loses their focus on doing their jobs at work because of chatting too much online while attempting to do their required assignments. Teenagers tend to ignore their studies and prefer to stay online; therefore they get poor grades in school. Neglecting social relationships and activities is our fourth effect. While were staying online, there could be an important event or gathering going on and were not even paying attention to attend it. It could be a family gathering or even a friends birthday. Those things are important for us to participate in as they create our social relationships and shape our personalities. It also shows us the quality of life in some way or another. While gathering with people and sharing activities with them you tend to build your qualities and know your strengths and weaknesses within yourself. You start to recognize the outside world and its nature. Anger is a main symptom and effect of the internet addiction. Its usually obvious when someone starts to question your time spent online and then you start getting angry. Also it appears when youre offline and tense for not being online during the day. It shows on all of your actions during the day and effects your family and friends interactions. The feeling of the need to be online all the time gets you frustrated and it applies to all your daily activities. Giving away details to strangers is the most dangerous and common problem we face through internet addiction. The more you stay online and intend to make new friends and enter new networks; the more you stop thinking of the consequences which will occur later on. Strangers you get to know online could be criminals of any kind; such as sexual harassers, thieves or even drug dealers. The last symptom and effect of internet addiction is changes in your diet and eating speed. Being online too much makes you lose your appetite to food. Sometimes its the complete opposite; the more they stay online the more eat faster and with more quantities. Its like when youre watching television; you get caught in the movie or anything youre watching and keep eating. Thats how most overweight people get fatter. They are not conscious of their action while being caught in their addictive act. Internet addiction seems as uncontrollable and hard to get over. But there are several steps we should follow as our solutions to fixing the addictive act .They are very simple and easy steps to control all our previous symptoms and effects stated above. First of all we need to admit the problem were facing and our excessive use to the internet and the computer. Knowing that you have a problem and you need to work on it gives you an inner peace. It also gives you the push to be able to pass this phase of addiction and think of ways to work it all out. Or at least keep doing what you love most but still in a healthy way. The change of the location of your computer is a must. Its one of the main solutions for the addiction; as we stated before having it in your bedroom makes it feel irresistible to using the computer. You need to locate in a place which is uncomfortable for you. This will make you only use it for the needed purpose and for a short period of time and then go to your favorite place at home. For example, the living room to watch a movie or read a book in your small library. A password for your computer is very important to be able to decrease your use of the internet. Let you spouse or a family member change the password to only something they know. And only sign you in when you need to and for a specific calculated period of time. This way you will be able to control your usage wisely. Also you could have a Timer; which will control your time of usage. So if you use the internet for more than five hours a day, then decrease it to three hours for instance by using your timer. The last solution we should actively do is getting involved in several activities such as social clubs or fitness exercises. This way youre substituting your addiction with a healthier aspect which will involve you in a more sociable environment. And this will make you gain more confidence by time and make a circle of friends the right way. To conclude, there are no obvious reasons for way people are getting addicted to the internet but there are a lot of things drives us to use the internet .internet just a tool some people use it as skipping from life struggles and the things that made some people getting addicted to the internet could be general causes as use the internet for more knowledge, searching for anything that they need and also for making friends from all over the world, and there are some things considered as mental disorder like feeling lonely, depressed or feeling stress. But there are many effects caused by the internet addiction, lose the family sense, lack of sleep and caused back pains and headache also decreasing the social relationships. but there are some solutions the person who are addicted to the internet have to admit that he is addicted and know that very well (admitting that he have a problem) and start change computer location and put it in place that you dislike it ,never put it in sleepin g rooms because you will prefer playing or chatting then sleeping . And finally the person should make a specific hour for using the internet. Human have to know that they are the creditors of the technology so they shouldnt let the machines control them because machines doesnt have brains like human.so just if you use it smartly it wont ever effect you negatively.

Fukyama V huntington Essay -- essays research papers

Francis Fukuyama and Samuel Huntington are two of the most controversial and influential modern political theorists of our times. Fukuyama’s book, The End of History and the Last Man, and Huntington’s book, The Clash of Civilizations and the Remaking of World Order, pose two very conflicting theories on international relations. In this paper I will summarize and compare/contrast the two theories. Both theories, written since the fall of communism and updated since the first gulf war, have been widely read, taught, praised and criticized The End of History and the Last Man is a book in which Francis Fukuyama argues the controversial thesis that the end of history, a time when class distinctions no longer exist, believing them to be the cause of the evolution of everything that has existed in society up in till that point, is among us. "What we may be witnessing in not just the end of the Cold War, or the passing of a particular period of post-war history, but the end of history as such: that is, the end point of mankind's ideological evolution and the universalization of Western liberal democracy as the final form of human government." Fukuyama’s thesis consists of two main elements. Firstly, Fukuyama points out that since the beginning of the nineteenth century democracy is the only intellectual expected system of government. Secondly, Fukuyama sees history as consisting of tension between two classes: the one in control and the one being controlled. Ultimatel...

Geothermal Energy is the Solution to the Energy Crisis Essay examples -

Geothermal Energy: A Solution to the Energy Crisis Abstract So far, scientists have not found a successful substitute for fossil fuels that can handle both the large demand for energy and solve the global warming problem. I propose that geothermal energy is a clean, widely available, and renewable alternative to the usage of fossil fuels. In this paper, I will explain how use of geothermal resources can be energy-efficient, environmentally clean, and cost-effective. I believe that the US government should increase funding for geothermal energy research. This may be the solution to our present energy crisis and global warming. Introduction There is a call of action to solve today’s energy crisis. What we need urgently is a clean, abundant, and reliable source of energy. Geothermal energy may be the solution. Geothermal energy does not produce CO2 and is inexpensive compared to the unbelievably high gas prices. This type of energy is also renewable so it can continue to feed the growing population of the world. â€Å"New [geothermal] facilities can produce electricity for being between 4.5 and 7.3 cents per kilowatt-hour, making it competitive with new conventional fossil fuel-fired power plants.† (Union of Concerned Scientists, 2) This shows that if there is more research focused onto this topic, geothermal energy may become the solution to our energy crisis. Current Energy Consumption Currently, the energy consumption has been increasing exponentially. Energy consumption increases by 2% each year causing a doubling in only 35 years. As of 2003, the energy consumptions in quadrillion BTU (British Thermal Unit= 1055.06 Joules) are: North America- 118.3, Europe- 127.4, Asia- 120.2, Middle East- 19.6, Central/South America- 21.9, ... ...y source." 22 Jan. 2007. 27 June 2008 . Moore, Bill. "Sustainble Iceland: Geothermal Wonderland." 25 July 2008 . Sandoval, Steve. "Valles Caldera Geothermal focus of talk Thursday at Laboratory's Bradbury Science Museum." 26 July 2008 . Solar4Scholars. "Geothermal Energy." 25 July 2008 . Union of Concerned Scientists. How Geothermal Energy Works. 21 July 2008 . World Chancing Team. ""Hot Rocks" for Home Energy." Tools, Models and Ideas for Building a Bright Green Future. 21 July 2008 .

Review Article †Rheumatoid Arthritis & Il-6 Essay

Introduction Rheumatoid arthritis (RA) is an inflammatory autoimmune condition principally causing synovial joint inflammation and cartilage erosion. The pathogenesis encompasses intricate cellular and humoural manifestations, and vascular reactions that result in the infiltration of the synovium by white blood cells, of which release inflammatory mediators, inclusive of Interleukin-6 (IL-6). IL-6 serum levels of RA patients as shown by Capell et al. (1993) displayed a median of 55 IU/ml, as compared to that of healthy controls of 10 IU/ml. With a wide-ranging pleiotropy endorsed by both a membrane-bound (IL-6R) and soluble (sIL-6R) receptor, and by the relative omnipresence of the trans-membrane protein gp130, IL-6 endorses a pro-inflammatory effect via its influence on numerous cell types and signalling-pathways. As a result, heightened levels of IL-6 aids in the promotion of osteitis, sequential joint damage, pain/discomfort and impaired function in RA patients. Pleiotropy of IL-6 Interleukin 6 exerts effects on numerous pathways contributing to the pathophysiology of RA. IL-6 as it is called today has been known by several names that exemplify its pleiotropy for example, hepatocyte-stimulating factor known to cause the induction of C-reactive protein (CRP); due to IL-6 association with synovial fibril aggregation has been known as Amyloid protein; a thrombopoietin; both B-cell differentiation and stimulating factor 2; plasmacytoma growth factor; and cytotoxic T-cell differentiation factor. It also causes the differentiation of Th17 cells; is a causative factor in adhesion molecule expression on the surface of endothelial cells, and is involved in the differentiation to mature from precursor osteoclasts cells (REF!!). IL-6 Recptor binding IL-6 implements its influence via a protein complex primarily comprised of a membrane bound IL-6R and a glycoprotein comprised of two intra-cytoplasmic transducer sub-units, gp130. When IL-6 binds to membrane bound IL-6R (mIL-6R) it causes homo-dimerisation of the gp130 sub-units, of which triggers intra-cytoplasmic signal transduction. Whilst expression of gp130 is relatively omnipresent upon the surface of the body’s cells (Akil, et al., 2008), IL-6R is most prominently located on hepatocytes, macrophages, monocytes, neutrophils and select lymphocytes. However, (sIL-6R) of which is systemic also binds IL-6, and just as mIL-6R, can also engage with gp130 for sIL-6-gp130 trans-signalling (REF!). Synoviocytes, for example do not express mIL-6R but do express gp130. Raised levels of IL-6 in the synovium is a characteristic biomarker of RA (Attar, et al., 2010), and Kim, et al. (1996) states enhanced IL-6/sIL-6R in synovial fluid increased the risk of joint destruction, as IL-6 stimulates endothelial cells to express adhesion cytokines and other molecules of which attract inflammatory cells to synovial membrane (Romano, et al., 1997) thus could contribute to exemplifying the significance of sIL-6R in RA pathophysiology. sIL-6R is formed by either an incomplete proteolytic enzymic dissection of mIL-6R or alternative splicing of mRNA (REF!!). With the aforementioned ubiquitous nature of gp130, mIL-6R and systemic sIL-6R, increasing evidence REFERENCES SEE NOTES!! shows that a non-membrane bound, systemic, soluble gp130 (sgp130) found in higher circulatory concentrations than that of sIL-6, also binds IL-6/sIL-6R, thus functioning as a redundency factor inhibiting the cytoplasmic signal-transducing potential of mgp130 REFERENCES SEE NOTES!!, (IL-6/IL-6 receptor system and its role†¦) thus serving as a natural inhibitor of IL-6 signalling (IL-6/IL-6 receptor system and its role†¦). Intracellular signalling gp130 dimerisation brings Janus Kinases (JAKS), a receptor-associated protein complex, into close proximity causing a trans-activation of the two molecule types. Auto-phosphorylation of JAKS occurs, of which causes intracellular signal transduction by recruiting signal-transducers and activators of transcriptions (STAT) that form either hetro or homo dimers and migrate to cell nucleus effecting target gene transcription of various physiological processes (REF). IL-6 can be detrimental to human physiology (REF!), thus expression of proteins known as the suppressors of cytokine signalling (SOCS) function as a negative-feedback system, and are activated by STAT’s. The regulation of the JAK-STAT signalling pathway by SOCS is more specifically down-regulated by SOCS 3 (REF!). SOCS 3 binds JAK’s causing negative-regulation thus functioning as an auto-regulatory mechanism, by inhibiting JAK activity. IL-6 and the Adaptive Immune System The trans-signalling of IL-6 is known to cause the induction of pre-B-cell-colony-stimulating factor (PBEF) in fibroblast cells of the synovium (Bryant, et al., 2006), and since PBEF upon its discovery was considered a B-cell differentiation cytokine(McNiece et al., 1994), it could be considered plausible that IL-6-induced PBEF and the IL-6 maturation of B-cells, collectively contribute to RA. It has been found the effect of IL-6 on plasmablasts indirectly induces the production of B-cell antibodies by assisting elements of CD4+ T-cells (of which act upon activated B-cells) due to elevated IL-21 production (Bond, et al., 2009), thus IL-6 may potentially be a co-adjuvant to humoural immunity enhancement (Bond, et al., 2009). Enhanced levels of the RA associated Rheumatoid Factor are located in the IgA, IgG and IgM isotypes (Ahmed, et al., 2010), and citruline antibodies located in serum and joints, can be linked to the plasmablast-induced antibody production of IL-6 (Ahmed, et al., 20 10). IL-6 enhances T-cell proliferation where they have been mitogen stimulated (Mihara, et al., 2002). IL-6 also impacts T-cell development (Mihara, et al., 2002). Along with transforming growth factor (TGF)- ÃŽ ², IL-6 contributes to Th 17 differentiation, an effector T cell with pro-inflammatory elements, and is further compounded by Th 17 production of the pro-inflammatory cytokine IL-17 (Bettelli, et al., 2007). Interestingly, without IL-6, TGF- ÃŽ ² induces Treg production, of which are Th 17 cell suppressors (Hirota, et al., 2008). CD4+ Th cells have been considered Th 1 and Th 2 based upon their cytokine-producing characteristics (Diehl and Rincon, 2002). Th 1 and Th 2 produce IFN-á µ § and IL-13 respectively, of which are both pro-inflammatory molecules, however whereas IL-6 bolsters IL-4 induced differentiation of Th 2, it causes the inhibition of IL-12 induced differentiation of Th 1 (Diehl and Rincon, 2002). Acosta-Rodriguez, et al. (2007) found that in vitro levels of IL-1ÃŽ ² – induced Th 17 polarisation of naà ¯ve human CD4+ T-cells were heightened by IL-6 involvement. More research however, is required to make clear the full extent of IL-6 role in human Th 17 cell development, in vivo. During inflammation, neutrophils of which are essential inflammatory mediators, systemically increase substantially, resulting in relative neutrophilia. Endothelial cells, macrophages and monocytes all emit IL-6. Neutrophils are directly affected by IL-6 due to the expression of IL-6R. Filer, et al. (2005) found that co-cultured endothelial cells and fibroblasts extracted from synovial fluid of RA patients caused an increase in IL-6 and neutrophil recruitment. Adhesion molecules, of which it has been shown in the work of Woodfin et al. (2010) to be required in the transmigration of neutrophils, are augmented by IL-6 such as vascular cell adhesion molecule – 1 (VCAM) and intracellular adhesion molecule – 1 (ICAM) of which produce chemokine production. Thus neutrophils being the most numerous and systemic of leucocytes have a strong initial synovial presence and is bolstered by the amplification of the inflammatory cascade, contributing to the inflammatory escalation during acute-phase response; and findings from animal and human studies revealed that the blockade of IL-6 caused a reduction in neutrophil levels at inflamed sites (Hashizume, et al., 2008), as well as a reduction in systemic neutrophil counts in RA patients (Deguchi, et al., 2003 and Broll, et al., 2006),thus indicating a prominent role for IL-6 in neutrophilia. IL-6: Acute to Chronic Farnarier, et al. (2003) suggests the transition from acute to chronic inflammation as emphasised by a shift of biomarker from neutrophil to monocyte, is influenced by IL-6. It was found that if stimulated for a number of hours by inflammatory cytokines, neutrophils switched from the production of IL-8 and transitioned to monocyte chemoattractant protein-1 (MCP-1) (Yamashiro, et al., 1999). sIL-6R is released from neutrophils of which in turn causes the chemokine release of endothelial cells, thus Romano, et al. (1997) suggests the IL-6 – sIL6R complex contributes to the release of MCP-1 from endothelial cells. As earlier discussed, neutrophil-count was found to be directly associated with the blockade of IL-6R?!; and endothelial cells expressing the gp130 but not the IL-6R, thus reliant upon the IL-6 – sIL6RÃŽ ± complex for induction of MCP-1 release, i.e. the release of monocyte, not neutrophil specific chemo-attractants (Gres, et al., 2001), it would appear IL-6 tran-signalling plays an integral role in the transition from acute to chronic inflammation via neutrophil and endothelial cells. *CHART SHOWING CELLS THAT RELEASE IL-6!!* IL-6 induces a disintigrin and metalloproteinase with thrombospondin motifs (ADAMTS) and matrix metalloproteinase (MMP) proteinases of which are pivotal in the degradation of extracellular matrix. IL-6 more specifically, has been shown to induce ADAMTS-4 and MMP’s 1, 2 and 13 production in cells lining the synovium and chondrocytes (Hashizume and Mihara, 2009; Hashizume, et al., 2010; 2012). However, it has been suggested the IL-6 – sIL-6R complex has bearing on the extracellular matrix turnover, as it causes generation of tissue inhibitors of MMP’s (TIMP’s) in synovium fibroblasts and chondrocytes (Dayer, et al., 1998 and Hashizume, et al., 2012). The drug tocilizumab (TCZ), an IL-6 inhibitor reduces MMP-3 blood serum levels of RA patients (Garnero, et al., 2010), and has been show to restore biomarkers associated with cartilage turnover (Dayer, et al., 1998). Thus, in RA patients the reduction of IL-6 activity appears to be a mediatory factor in sustainment of healthy joint cartilage. Angiogenesis is a key process in the local inflammatory process. Neovascularisation of the synovium and other angiogenic processes such as hyperplasia of synovial cells and permeation by inflammatory cells are characteristic processes in pannus development and RA pathology (Ballara et al., 2001). In addition to notable constituents of the inflammatory process such as monocytes and T cells, both of which as stated previously have affiliations with IL-6 expression (CITATION OF A FEW), levels of a key angiogenic specific growth factor Vascular Endothelial Growth Factor (VEGF) has also been associated with systemic levels of IL-6, as demonstrated in the work of Hasizume, et al., 2009 and Hagihara, et al., 2003 revealing IL-6 induces VEGF production from synovial cells. VEGF induces proteins that contribute to the breakdown of endothelial basement membrane, including MMP’s, of which increases the permeability of blood vessels, thus allowing enhanced infiltration of inflammatory constituents (Delisle, et al., 2010). VEGF levels accordingly, have been shown to coincide with the articular severity of RA (Hagihana, et al., 2003), and has shown a reduction in response to TCZ (Hagihana, et al., 2003), of which correlates with findings of a semi-quantitative assessment by Akoi, et al. (2011) using ultrasonography that found TCZ responsible for a marked reduction in RA neovascularisation. Bone Remodelling Bone remodelling is a highly regulated process in which mature bone tissue is removed by osteoclasts and formation by osteoblasts. The pathogenesis of RA favours bone loss (resorption) via the excessive production of osteoclasts. Anecdotal evidence by Kazuto et al. (1996) revealed synovial fluid highly +ve for IL-6 –sIL6R complex from RA patients, stimulated increased formation of osteoclasts in mouse co-culture of osteoblast and bone marrow cells. This study coincides with research by Balena, et al. (1994) of which indicated that mice deficient in IL-6 displayed no significant changes in gross or trabecular bone structure. In human studies, biopsies of RA patients revealed that peri-articular bone loss was found to correlate with local excessive presence of IL-6 (Sugiyama, 2001), and work by Garnero et al. (2009) showed the administration of TCZ to RA patients in a multi-centre double-blind placebo-controlled study yielded an increase in bone-formation markers, with a decrease in bone-resorption markers. Collectively, research suggests IL-6 has a negative effect on bone mass. Acute-phase response Acute-phase response is an innate immune reaction in which IL-6 is notably involved via the stimulation of hepatocytes, and is a key inducer of the acute-phase protein CRP. CRP is considered a dependable biomarker of inflammation and RA activity as serum half-life remains constant due to its inflammatory-induced, hepatic-stimulated production being the exclusive systemic determinant and due to its noted increase in RA serum levels (Hirshfield and Pepys, 2003). Anaemia Approximately 1-in-4 RA patients will suffer symptoms of anaemia within the first year (Figenschau, Nikolaisen and Nossent, 2008). The hormone hepcidin, produced in the liver and integral in stemming the metabolism of iron, has been shown in vitro to increase in presence due to IL-6 stimulation of hepatoma cells (Ganz, 2003). This study correlates with Gabayan et al. (2004) in which IL-6 induced patients experienced a 7.5 fold increase in hepcidin production. Anaemia in RA patients, as a result of a hepcidin-IL-6 axis, has limited but supported credence. Osteoporosis has also shown a correlation with IL-6. As mentioned earlier, healthy bone metabolism requires adequate regulation of osteoclasts and osteoblasts, in which excessive IL-6 expression and the Th17 derived IL-17 (Gillespie, et al., 1999) both contribute to excessive osteoclast formation (Campbell et al., 2005). This has also been found to be the case in transgenic mice (De et al., 2006; and Choy and Dayer, 2009) in which bone formation was reduced, and negative ossification was reported. As shown, there are comparable cross-over aspects of IL-6 pathology between RA and osteoporosis. Treatment As highlighted throughout this review, IL-6 plays a pleiotropic pathophysiological role in RA, thus would make an ideal therapeutic target. The most promising and note-worthy of treatments at present, TCZ interrupts IL-6 induced trans-signalling. Numerous studies have shown promising results including a phase III clinical trial in 2005 using the ACR (American College of Rheumatology)* RA activity measure, which had improvement measures of 89, 70 and 47% at ACR’s of 20, 50 and 70 respectively at 52 weeks, in patients treated with TCZ. This multicentre, double-blind placebo-controlled trial by Hashimoto et al. (2004) showed bone resorption and joint destruction could potentially be completely prevented (Kishimoto, 2010), as exemplified when a culture of patient synovial and peripheral mononuclear cells, extracted from the same patients showed that osteoclast generation was completely prevented (Hashimoto et al., 2004; Kishimoto, 2010). At 6 weeks within this study, it was also found that IgG, CRP and serum amyloid A levels all normalised. It has also been suggested that TCZ aids in Th17 differentiation, hence IL-17 production, thus aids in the improvement of RA symptoms (Kimura and Kishimoto, 2010). Other notable studies such as the SAMURAI (Study of Active controlled Monotherapy Used for RA, an IL-6 Inhibitor) and LITHE (TociLIzumab safety and THE prevention of structural joint damage trial) served to enhance conscensus. This humanised, monoclonal antibody has now been approved in many countries^^. 286 With a wide-ranging pleitropy, IL-6 has the most profuse SF and systemic cytokine presence in RA pathophysiology, and coincides with cartilage erosion and disease activity. It has a role in elements of B-cell differentiation and increasing evidence suggests a definite yet ambiguous role in Th17 differentiation. IL-6 has several key positions in immune and inflammatory processes (recruitment, permeation and adhesion of inflammatory elements), and bone and joint degradation, of which over-expression causes adversity, such as release of hepcidin and CRP from the liver contributing to anaemia and inflammation, osteoporosis and pannus development. It plays a key role in the cross-over from acute-to-chronic disease. 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JetBlue Case Analysis Essay

External Environment To evaluate the external environment of JetBlue airways we will use the PESTEL analysis. PESTEL analysis stands for â€Å"Political, Economic, Social, Technological, Environment and Legal analysis†. Political Factors How and to what extent the government does intervenes in the economy. Political factors can be tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors that are found in the JetBlue case are: Government monitors the airline industry more scrupulously as a result 60% of airline industry is unionized Heightened sense of consumer information privacy Airport slot/gate allocations Security considerations since 2001 attacks Bankruptcy Economic Factors These factors have major impact on how businesses operate and make decisions. They include economic growth, interest rate, exchange rates, and inflation rates. Economic factors that are found in the case are: 1978 Airline Deregulation Act created intense rivalry between airlines Downturn in airline travel after 9/11 2001 affected most airlines – JetBlue reported 18 consecutive quarterly profits IT Spending continued post 9/11 Fuel costs spiraled, aggressive competition and increased operating costs Availability of venture capital Interest Rates Legacy Airlines exiting bankruptcy and streamlining operations Strategic Alliances Fair Pricing is an important competitive factor JFK Expansion Social Factors Trends in social factors affect the demand for a company’s products and how  the company operates. They include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Social factors that are found in the case are: 2001 Terrorist attacks in US negatively affected airline industry Anxiety about safety at airports Travel has become inconvenient due to safety precautions Internal Culture at JetBlue – Management is hands on – a great place to work Technological Factors The technological factors determine barriers to entry, minimum efficient production level and influence outsourcing decisions. They include ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. Technological factors found in the case are: Aging fleet Diffusion of Technology Digital Revolution – internet does away with ticket agents but allows price comparison Customer service working from home reduces operations costs Environmental Factors These factors include weather, climate, and climate change. Environmental factors that are found in the case are: War, Political Turmoil and Natural Disasters drive fuel prices from $30/bbl. in ‘03 to $60/bbl. in ‘05 Airport slot/gate allocations Security conditions build barriers to ease of travel Legal Factors These factors can affect how a company operates, its costs, and the demand for its products. They include discrimination law, consumer law, antitrust law, employment law and health and safety law. Legal factors that are found in the case are: 1978 Airline Deregulation Act eliminated government control over fares and routes Airport and FAA density regulations Security laws since 9/11 Porter’s Five Forces In order to understand Jet Blue’s external environment, Porter’s 5 forces are a helpful tool in order to evaluation the company’s competitive environment and the degree of rivalry amongst competitors within the aviation industry. The competitive environment will be evaluated in terms of 4 different aspects, namely the bargaining Power of customers and suppliers, the threat of new entrants and new substitutes. The bargaining power of customers within the aviation industry is rather high as there are standard products and services that are less unique and can be easily imitated by competitors. Furthermore, there are only low switching costs incurred for the buyer in general, meaning that there is usually a lower degree of customer loyalty towards one single company and that customers can compare offers easily especially due to the option to purchase tickets online. Suppliers generally have a moderate to high bargaining power within the industry due to the limited number of suppliers which forces aviation companies to choose from the number available and accordingly to accept their prices. In fact, fuel is the second highest cost for aviation companies. There are highly depended on supplier’s prices and the availability which indicates on a relatively high bargaining power of suppliers. In addition, there are high switching costs which are strongly in favor of the suppliers and means that the company experiences an increase in operating costs when switching to another supplier as flying another type of aircraft leads to additional costs (maintenance, training etc.).Aircrafts are vulnerable to delays due to the location of gate locations which leads to a decrease in utilization and therefore to an increase in costs. In terms of the threat of substitutes there are not a lot serious threats and alternatives to products within the aviation in dustry, therefore the threat can be rated as medium. However, private aircrafts can be seen as a substitutes within the industry. Within the transportation industry there are more alternatives for substitutes such as trains, buses, cars and boats. The threats of new entrants is very low as there are certain barriers to entry such as a high amount of investments that are required and it is rather difficult to build up a reliable and trustworthy from scratch as the industry is already dominated by several  competitors. In conclusion it can be said that there is a medium degree of rivalry within the aviation industry due to a rather high degree of bargaining power of customers and suppliers and a rather low threats of new entrants and substitutes within the industry. One of the remedies to avoid high bargaining power of customers would be to try to differentiate from competitors by building a unique and favorable image on the market. On the other hand companies could use the strategy of backwards integration and acquire their suppliers in order to avoid the bargaining power of suppliers. However, those investment decision are always highly dependable on the company’s financial budget, priorities and goals in general. Financial Analysis The following graph is an evaluation of JetBlue Airways and Southwest Airlines based on financial information found on the companies’ income statements, balance sheets, and cash flow statements: Jet Blue As you can see, JetBlue is consistently below Southwest on the ratios. JetBlue’s liquidity ratios have decreased over the last three years and could be considered worrisome. However, we know that the fleet is aging and the company is making investments to replace the old fleet and expand the fleet. This is a very reasonable cause for the decrease in these ratios. JetBlue’s equity multiplier is higher than Southwest. At first, you might think this is better. However, a higher equity multiplier is not a good thing. A high equity multiplier means that a company finances a larger portion of its assets through its debt. Therefore, southwest has a better equity multiplier. While JetBlue’s net profit margin is slightly lower than Southwest’s, it is in line with the industry average of 3.2%. JetBlue’s return on equity is also in line with the industry average of 8%. JetBlue has a high capital intensity ratio which is okay because, as an airline, they require a large amount of capital to operate. Overall, the financial ratios are lower than Southwest’s but they don’t show any problems that don’t make sense. The net profit margin, return on assets, and return on equity have all improved over the last three years. The cash coverage ratio is also improving. The finances seem to show that the company is improving and is stable. Strengths When we look at the case JetBlue shows several strengths. One of the most important is customer satisfaction; they satisfy their customers by being a low-cost airline but at the same time offer excellent experience (the  JetBlue Experience). They have new airplanes (that keep the operational costs low) with inflight entertainment systems, their customers get a drink and a snack and their employers are involved and motivated. JetBlue is an innovative company, for example they were the first North-American airline company that used electronic ticketing and they introduced the first paperless cockpits. Weaknesses When analyzing the company internally we also see several weaknesses. From the case it became clear that the company had problems with facing mass cancellation; a weak reservation system and also no baggage handling systems. The company got high debts because of the rising fuel prices, and also because of the compensations that they gave their customers after making mistakes. Currently the baggage handling system works properly and their online reservation systems are also improved. Another weakness of JetBlue is that is focusses on the middle class of society, therefore they do not have many high class people that are willing to spend more. Opportunities The company is also influenced by external factors, and we will first discuss the opportunities for JetBlue. The case made clear that JetBlue is getting more and more interline agreements with other airline companies. Due to this fact JetBlue will have more destinations to fly to and they can also make reservations under each other’s names. It is therefore wise that JetBlue keeps making new interline agreements with the bigger airline companies. Another opportunity for JetBlue is technological improvements, since JetBlue is an innovative company they like to try new things out such as they did with the paperless cockpit. Also the deregulation of international air travel and loosening laws and regulations are opportunities for JetBlue. There are a lot of regulations around air travel, especially after the terroristic attacks on 9/11 and also the tax laws influence the company. Whenever these will become looser the company will have less expenditures. Threats When we evaluate the external factors that are influencing the company we also find several threats. One of the biggest threats for the airline  industry are fuel prices, since they are the biggest costs for an airline company. Another threat for the airline industry are terroristic attacks, after 9/11 the customers got afraid of travelling by plane. Also all the safety procedures make travelers rather want to use another way of transportation, such as the car or train. Financially the high user taxes and currency changes also influence the airline industry. TOWS Analysis After evaluating the SWOT analysis we can now look at the externally-focused TOWS analysis. The TOWS analysis matches external opportunities and threats with internal strengths and weaknesses. Maxi-Maxi Strategy How can you use your strengths to take advantage of the opportunities? If we compare the strengths and opportunities of JetBlue, some of the strategies they could implement are: Focus on the technology improvements; JetBlue is an innovative company and they like to try out new technologies. They can make the JetBlue experience even better than it already is. Focus on the interline agreements; when JetBlue has more interline agreements with other airline companies their customers will have more choice of countries where they want to go, it will also be easier for them to make a reservation. Lower the operating costs; whenever the law and regulations will be in favor of the airline industry the company can lower its operating costs and therefore also lower their prices. Maxi-Mini Strategy How can you take advantage of your strengths to avoid real and potential threats? The strengths that JetBlue could use to avoid real and potential threats are: Focus on technological developments; again they should focus on this for example they could maybe develop new security check machines that are easier to use and also safer to avoid terroristic attacks Develop the JetBlue experience; there is intense competition in the airline industry, however JetBlue should differentiate itself by improving the JetBlue experience which is already known for excellent customer service, friendly personnel, new planes, entertainment systems etc. If they improve this experience and keep focusing on being a low-budget company they will win  more customers. Mini-Maxi Strategy How can you use your opportunities to overcome the weaknesses you are experiencing? There are several opportunities that JetBlue could use to overcome the weaknesses that they are experiencing, such as: Loosening laws and regulations; whenever the regulations will be looser the turnaround process of the airplanes will be easier and faster. New technology; the new technology could help the company to improve the online presence. The online presence was in the case really bad but currently they already improved this. However E-business and M-business is getting more and more popular so it is always wise for a company to keep on track with this by improving their online systems. Mini-Mini Strategy How can you minimize your weaknesses and avoid threats? The strategies that JetBlue should use to minimize its weaknesses and threats are: Improve the systems; some of the weaknesses are weak baggage handling systems and online presence. Also in the case it became clear that JetBlue faced problems with mass cancellation. This could all be improved by implementing ERP systems so that it is clear what is exactly going on in the company. For online presence they should have an IT department that focusses on that. Improve safety systems: there are a lot of safety procedures because of the fear of terroristic attacks. The airplane industry should invest in have safer and easier systems to improve the safety of its travelers. Differentiate itself from other airline companies; there are a lot of airline companies and this causes intense competition. However if JetBlue makes sure that they offer their product in an exclusive way the company will win customers. Balanced Scorecard In the following we will establish a balanced score card for Jet Blue by collecting and analyzing data on the company’s current performance. The overall goal of the balance scorecard is to analyze the gathered data and compare it to the desired performance and strategic goals. Furthermore it is a helpful tool to align business activities to the company’s current mission and vision. At large, there are 4 major perspectives that are analyzed during the balanced scorecard which are the customer, internal business,  innovation& learning, and financial perspective. In terms of the internal Business Perspective it becomes clear that Jet Blue has one of its major core competencies in quick turnarounds. One of the main reasons for this is the â€Å"paperless cockpit† innovated and introduced by Jet Blue itself. In fact, the paperless cockpit ensures faster takeoffs by reducing paperwork which eventually leads to quicker turnaround rates, as well as higher aircraft util ization. Jet Blue’s high completion rate is another significant competence of the company’s business operation (rate of 99.6 % compared to 98.3% at major airlines). Furthermore, the Jet Blue would keep operating costs low by integrating a less costly plane, the A 320, which is significantly less costly than the Boeing 737. In addition, the A 320 is more fuel-efficient, requires less maintenance costs, and training costs are kept at a lower level which leads to an overall decrease in operating costs and enables the company to offer less costly tickets to the end-customer. However, Jet Blue aims at renewing its fleet expansion in 2012. The airline planes to purchase the A321s and A320neo. Besides, the company had to deal with major system issues in regards to the baggage-handling system, online rebooking system, the sabre airline solution applications which caused significant delays in daily operations and lead to dissatisfaction among customers. Another perspective of the balanced scorecard that needs to be analyzed is the customer perspective. The company markets its service package as the â€Å"Jet Blue experience† which includes the new aircraft, variety of TV channels& movies, leather seats and more leg room. Furthermore, Jet Blue adds value to its customers by offering services such as priority boarding. The company, in fact positions itself as a low-price company, but focuses strongly on customers services (the ‘Jet Blue experience’) as well. This strategy enables the company to differentiate themselves from their competitors and adds unique value to their products. However, after the operations meltdown of 2007, customers lost trust in the company. For the future, significant changes are needed to restore customer’s trust. In terms of the company’s financial perspective it can be said that company’s liquidity ratios have been decreased over the past 3 years and could be considered worrisome, however, as Jet Blue plans to replace its fleet there is a reasonable cause for the decrease. Furthermore, Jet Blue’s equity to debt ratio is still below the average which indicates  on a lower amount of equity financed by banks and is therefore favorable. Jet Blue’s return on equity and net profit margin are in line with the industry average and therefore refer to stability. The net profit margin, and return on equity have all improved over the last three years which indicates on the profitability of the company. The cash coverage ratio has improved as well which refers to Jet Blue’s liquidity. Also the return on assets ratio has been improving and is above the industry’s average (3% compared to 2.46 % in 2013) which refers to a preferable efficiency of the company. The finances seem to show that the company is improving and is stable. Regarding the innovation& learning Perspective it becomes obvious that Jet Blue launched several solutions and systems. The paperless cockpit, for instance, that has been explained in a paragraph above is one of the innovations that Jet Blue launched on the market. In addition, less-congested airports reduced the airline’s turnaround time. Other innovations that facilitated operations and made services more customer-friendly are the tickets and mileage statements that do not require paper anymore. According to the article ‘Jet Blue airlines: getting over the blues ‘, ‘†¦innovation has been everywhere.’ Subsequent to the operations meltdown and the financial breakdown of the company in 2007, Jet Blue attempted to initiated strategic changes within the company by significant capital reduction from 2010 to 2011, a change of the CEO, a renew in flight expansions, partnering up with former competitors, and selling $42.6 of common stock to the German carrier (Lufthansa). Generally, measurable key performance indicators need to be established in order to evaluate the company’s performance. The financial ratios are the means within the balanced scorecard to evaluate the company’s perspective. The customer perspective could be evaluated in terms of market share, customer satisfaction scores, and customer loyalty scores. The internal business perspective can be measured in turnaround rates and completion rates for instance. Number of innovations, an improvement index, or number of employee suggestions can be used to put the innovative& learning perspective into tangible terms. As a result, the company needs to restore customers trust and loyalty, improve on internal operating systems in order to regain former financial strength in the future. Especially, the reliability of the company’s operating system needs to be secured in order to avoid another  major meltdown in the future. Furthermore, the company needs to find adequate strategic changes in order to ensure compliance with Jet Blues current mission, â€Å"Bring humanity back to air travel† which is currently pursued by a low-cost strategy in combination with a strong focus on customer-services and compare current performance to desired performance, however the company’s goals and targets do not become clear from the case.