Hamlet - Intelligent , NOT Insane Essay -- William Shakespeare Hamlet

All through the Shakespearian play, Hamlet, the fundamental character is given the mind-boggling duty of avenging his father’s foul and most unnatural homicide (I.iv.36). Such a weight can gradually drive a man crazy mentally. Along these lines, Hamlet’s attitude is incredibly conflicting and inconsistent all through the play. Now and again he gives indications of wild craziness. At whatever point he associates with the characters he is wild, insane, and plays a moron. At different occasions, he epitomizes knowledge and technique in his frenzy. In cases when he is separated from everyone else or with Horatio, he is cultivated and rational. Hamlet experiences various phases of craziness all through the story, yet his psychotic and doubtful character enhances his persona of appearing to be crazy to different characters. Hamlet concocts the plan to counterfeit franticness in the start of the play so as to confound his adversaries. Notwithstanding, for Hamlet to satisfy his obligation of seeking retribution, he should be absolutely normal. Hamlet’s scholarly splendor cause it to appear to be unreasonably outlandish for him to really be distraught, for to be crazy implies that one is nonsensical and with no sense. At the point when one is unreasonable, one isn't administered by or as indicated by reason. Along these lines, Hamlet is just acting distraught so as to design his vengeance on Claudius. With the end goal for Hamlet to complete his objective of retribution, he must be absolutely rational. In Act I, he is cautioned by the phantom not to go frantic and not to hurt his mom. In the event that Hamlet were really distraught, he would have done numerous strange demonstrations, which would just wreck his arrangement of seeking retribution. There can be nothing of the sort as limited craziness. Hamlet’s mental stability is shown when he doesn't hurt his mom. Gertrude has harmed Hamlet. She sold out his dad by engaging in extramarital relations with Claudius and in the end wedding him. Since Hamlet doesn't slaughter her, it shows he is in full control of his psychological state and that he isn't constrained by his sentiments like most distraught individuals. Another motivation behind why Hamlet isn't distraught is standing out he got away from his anticipated execution in England. Hamlet realized that he was to be sent to England to be murdered on the sets of Claudius. Be that as it may, when he saw an opportunity of break on the privateer transport, he accepted this open door to board the boat, which made him get away from death, therefore delaying his life somewhat more. In the event that Hamlet were really distraught, it would be dicey that he would know about Claudius’ plans,... ...nd not appearing well and good at all. In examination, Hamlet talks in customary sentences, and can chat typically with people around him. With much idea, and cautious arranging, Hamlet scans for proof to decide reality with regards to his dad's homicide. Furthermore, with this close by, he withdraws on a way to retaliate for his dad that is both sensible and sane. While Hamlet probably won't convey the good luck with him all through the play, he unquestionably clutches his psychological trustworthiness and capacity to reason through difficulties. Hamlet pretends frenzy with the goal that he will have the option to effectively seek retribution on Claudius. All together for his arrangement not to be found, he needs to counterfeit franticness so as to lose his adversaries. For his vengeance intend to be a triumph, Hamlet should be totally rational with the goal that he won’t damage his arrangement in at any rate, and to keep himself alive long enough to complete it. Hamlet’s plan on demonstrating Claudius’ blame and whether the apparition is his dead dad demonstrates that Hamlet is too shrewd to ever be frantic. In the event that Hamlet were to be sure frantic, he would be too imbecilic to concoct such an astute arrangement. Book reference: Shakespear, William. Hamlet. Wear Mills HBJ, 1987

Financial Accounting coursework Essay Example | Topics and Well Written Essays - 1250 words

Monetary Accounting coursework - Essay Example In this way the gathering strategy for bookkeeping estimates the position and execution of the organization dependent on the exchanges made over the span of business regardless of the money receipts and installments accomplished for the business exchange. The accumulation strategy for bookkeeping joins the present and expected money inflows and outpourings to decide the solidified budgetary situation of the organization (Sofat and Hiro, 2008, p.36). Imprints and Spencer has utilized the gathering technique to decide the normal estimation of the incomes dependent on the recorded deals returns with the goal that the accumulated figures could be assigned precisely in the budget reports. Suspicions identified with Going-Concern for planning fiscal summaries The suppositions identified with going worry for getting ready budget reports are that the organization would proceed with its business in not so distant future except if the administration chooses to sell the organization or chooses to stop tasks. At the point when the budget summaries are set up by accepting the going worry of a business substance, the benefits and liabilities are assigned with the supposition that if the organization proceeds with its tasks, it is ready to get a similar measure of advantages or would have the option to support a similar measure of liabilities (Bhattacharyya, 2011, p.48). Ex. Imprints and Spencer have arranged their budget reports with the supposition of going worry in the wake of thinking about the hazard and vulnerabilities of the business. The appraisal of the benefits and liabilities for years to come has been done dependent on projections after thought of hazard. Key bookkeeping ideas utilized in readiness of budget reports The bookkeeping strategy is an instrument dependent on which the fiscal summaries are readied and the data given in the budget summaries are intended for the clients. Along these lines the arrangement of fiscal reports includes key bookkeeping ideas wh ich are normalized for the organizations. The key bookkeeping ideas are joined together to shape the sound accounting guidelines (GAAP). The bookkeeping ideas that are utilized in the planning of the fiscal reports are, for example, cash estimation, substance, cost, going concern, objectivity, double perspective, timespan, acknowledgment, conservatism, consistency, coordinating, materiality. The thought of a substance and its qualification from the proprietors is significant for planning of the fiscal reports. The business, deals and receipts in bookkeeping are done as far as cash estimation. The business is considered to carry on its monetary exercises for a manageable timeframe except if the activities stop to exist based on choice of proprietors. This idea shapes the premise of a going worry that is utilized in bookkeeping strategy (Crosson and Needles, 2010, p.52). The bookkeeping estimations contemplates the expense brought about by the organization for maintaining the busine ss. This incorporates the expense of capital, cost of merchandise sold, and so forth. The double perspective in bookkeeping states that the advantages are equivalent to the liabilities of the organization. The objectivity in bookkeeping met

History and Application of Translation

History and Application of Translation  L. Saunders 1. History of interpretation Language is the most significant procedure in individuals s lives either if its composed, spoken or non-verbal. Individuals would not have the option to mingle or connect without language. Over the hundreds of years similarly as individuals constructed scaffolds to connect cities,people utilized language mediators and interpreters so as to fabricated extensions between different societies. What precisely interpretation is? Sonia Colina claims that Translation may allude to an action or an item and the field that reviews both action and item. Interpretation is the way toward moving the importance of composed writings of one language to another dialect. There is a ton of disarray among interpreters and translators, yet the two terms are totally different from multiple points of view. Interpreters take a composed book in one language: email, articles, papers, books or scholastic papers and make an interpretation of it into another dialect by recording it on the paper. It infers time and investigation of the writings while the mediators cooperate with others either for all intents and purposes or straightforwardly or via telephone, web or open gatherings. The extraordinary contrasts among interpreters and translators is that an interpretation can take days, weeks or even months relying upon the length of the content while deciphering is a procedure completed progressively. It is extremely troublesome and exceptionally trying for translators to carry out their responsibility since they should be quick in the two dialects and exact, they have no opportunity to counsel the word reference, a partner. Mediators have extraordinary duty particularly when they decipher in a political setting, one mistranslated word can give incredible political wars. Interpreters then again are increasingly loose having the option to remain in their own condition, have breaks, and utilize their word references or punctuation books. I clarified along these lines the contrast among interpretation and understanding, yet I wonder is Translation a procedure which showed up in the present century or it had existed in the past too? The way toward interpreting or translating began hundreds of years back Along the history we notice that exchanges were made through individuals who had the option to communicate in their one language yet additionally another language.The Bible which was urgent in the eighth century figured out how to be interpreted by the absolute most notable individuals: Martin Luther,St.Jerome William Tyndale and so on. Individuals who didn't approach instruction couldn't comprehend the strict administrations spoken in Latin. In this manner Translation was fundamental all together for common individuals to comprehend the heavenly assistance and to have an increasingly close to home information and approach towards God. With the spread of Christianity, interpretation began to increase another job which was the spreading of Gods word. The Bible of the picked individuals was initially written in Hebrew.When the Persian realm commanded the Eastern Mediteranean bowl, Aramaic turned into the official language of the zone and for strict reasons it was vital for the Jewish to have the Torah OR Pentateuch (the initial 5 books of the Bible) converted into the basic language from customary Hebrew.The result was Targums which made due after the first Hebrew parchments had been lost. By the mid of the third century a.d. Greek was the prevailing language and Jewish researchers began to interpret the Hebrew strict content into that language.Septuagint turned into the Greek rendition of the Jewish Bible. The energy of Christianity required more interpreters of both the Old and New Testament into:Coptic, Ethiopian,Gothic and Latin. Early interpreters St. Jerome In 382 the pope, Damasus, commissionsJerome to give a complete Latin rendition. In his cloister at Bethlehem, tended by blue-blooded virgins, the holy person creates the Vulgate. This in the long run gets built up as the Bible of the entire western church until the Reformation. When the Vulgate is finished (in around 405), the brute Goths likewise have their own form of parts of the Bible gratitude to the bewildering teacher exertion of Ulfilas. William Tyndalale William Tyndale has been known as the missionary of England and one of the best man who ever lived.He was a man cherished by the individuals who adored God yet abhorred and frequented by Rome since he was the main who might interpret the Bible from Greek into English. He was at last sold out by a trustee companion and detained for a period before being choked and consumed to the stake in a spot called Vilvoorde. From the hour of Pope Innocent, it had been pronounced by Rome that As by the old law the brute contacting the sacred mount was to be stoned by death so straightforward and uneducated man were not to contact the Bible or dare to lecture its doctrines(Schaff,History of the Christian Church VI,p723) In Tyndales time,England was as yet a Catholic nation and clerics were conveyed the mass in Latin,a language which couldn't be comprehended by normal and uneducated individuals, that is the reason Tyndale who realized Latin needed to learn Greek hence he contemplated Greek under Erasmus another extraordinary interpreter who offered an interpretation of the new Testament. Tyndale set out to stand upp against the cardinal since he thought about that his disposition towards individuals was oblivious and narrow minded, individuals were poor and disorientated on the grounds that they couldn't see yet what they were advised to do while he was wearing the brilliant rings underscoring his pride and sense of self. William Tyndale was struck to the heart that: it was difficult to set up the laye individuals in any truth㠢â‚ ¬Ã¢ ¦except the sacred texts were obviously layde before their eyes in their mom tongue(William Tyndale) Ulfilas and his letter set: AD c.360 Ulfilas is the primary man known to have attempted a phenomenally troublesome scholarly undertaking recording, without any preparation, a language which is up 'til now absolutely oral. He even devises another letter set to catch precisely the hints of spoken Gothic, utilizing an aggregate of twenty-seven letters adjusted from models in the Greek and Roman letter sets. Divine beings work is Ulfilas reason. He needs the letters in order for his interpretation of the Bible from Greek into the language of the Goths. It isn't realized the amount he finishes, yet enormous segments of the Gospels and the Epistles make due in his adaptation dating from quite a long while beforeJeromebegins take a shot at his Latin content. A confined Bible: eighth fourteenth century AD The aim of St Jerome, converting into Latin the Hebrew of the Old Testament and the Greek of the New Testament, was that customary Christians of the Roman domain ought to have the option to peruse the expression of God. Obliviousness of the sacred texts, he composed, is numbness of Christ. Steadily this discernment is modified. After the breakdown of the western domain, the individuals of Christian Europe talk assortments of German, French, Anglo-Saxon, Italian or Spanish. The content of Jeromes Vulgate is seen distinctly by the scholarly, the greater part of whom are ministers. They like to corner the wellspring of Christian truth, saving for themselves the benefit of deciphering it for the individuals. Interpretation into profane tongues is debilitated. There are exemptions. In the late eighth centuryCharlemagnecommissions interpretation of parts of the Bible for the utilization of his preachers in the drive to change over agnostic Germans. In the ninth century the Greek brothersCyril and Methodius, sent from Constantinople to Moravia at imperial solicitation, decipher the Gospels and parts of the Old Testament into Slavonic. These are evangelist tries, advanced by rulers as a demonstration of government when agnostic Europe is being brought into the Christian overlay. In the later completely Christian hundreds of years there is no proportionate need to give the sacred messages in vernacular structure. Any such drive is currently an extreme interest for the benefit of normal Christians against the congregation chain of command. The most grounded medieval interest for vernacular writings comes in France from an unorthodox organization, the Cathars. The concealment of the Cathars is finished by the mid-thirteenth century. However, in the next century a similar interest surfaces inside standard western Christianity. John Wycliffeand his adherents produce full English forms of the Old and New Testament in the late fourteenth century. At a similar period the Czechs have their own vernacular Bible, along these lines significantly better by John Huss. These interpretations are a piece of the extreme motivation for change inside the congregation. For sure the issue of vernacular Bibles gets one of the petulant subjects of theReformation. An objection by an English contemporary of Wycliffe, the writer Henry Knighton, is a proportion of how far the congregation of Rome has swung on this issue since Jeromes battle against obliviousness of sacred text. Knighton rejects interpretation of the Bible in light of the fact that by this implies the gem of the congregation is transformed into the normal game of the individuals. 2. Sorts of Translation Roman Jakobson portrays three sorts of translation:Intralingual (or revamping an understanding of verbal signs by methods for different signs in a similar language), interlingual (or interpretation legitimate a translation of verbal signs by methods for some other language) and between semiotic interpretation or transmutation-a translation of verbal signs by methods for indications of nonverbal sign frameworks) Jakobson calls attention to the fact that it is so hard to accomplish total identicalness in view of the multifaceted nature of the codes in question. Indeed, even in intralingual interpretation we need to utilize blend of code units to decipher meaning. So even equivalent words can't ensure full equality. This becomes muddled when the SL and TL are unique. Notwithstanding the contrast between two language frameworks, social contrasts additionally present enormous obstructions to interpretation movement. Eugene Nida says: Since no two dialects are indistinguishable, either in the implications given to comparing images or in the manners by which such images are organized in expressions and sentences, it makes sense that there can be no total correspondence between dialects.

Martin Luther King Essay Example for Free

Martin Luther King Essay I have a fantasy was one of the most impressive and powerful addresses ever, it not just made the acknowledgment that the Negro was not free, it convinced that of white individuals to roll out an improvement to help the African Americans. The African American social liberties development was crawling forward yet two people made a more noteworthy environment for the fortification of the development, sure William Wilberforce canceled the slave exchange for Britain in 1807, and that was only the beginning, yet after 203 years the African Americans are currently equivalent. It required some investment yet in any case it occurred. Fundamentally the African American social equality development was Martin Luther king’s dream, and that fantasy has worked out. Martin Luther King, Jr. was conceived on January 15, 1929, in Atlanta, Georgia; He was the center kid from a group of five. Experiencing childhood in Atlanta, King went to Booker T. Washington High School. A canny understudy, he moved on from Morehouse with a Bachelor of Arts degree in human science. The transport blacklist of 1955 was the initial phase in king’s progressive thoughts. The blacklist endured 382 days. After which the Supreme Court of the United States had announced the laws requiring isolation on transports as illicit, Negroes and whites rode the transports as equivalents. During nowadays of blacklist, King was captured, yet after he was discharged, he rose as the Negro head. Ruler originated from an existence where he was a piece of a second rate race, it was this world that expected to change and martin Luther King Jr was the one to begin the progressions that would before long shape the world. The transport blacklist was only the start of his mind boggling commitment. Martin Luther King Jr at that point proceeded to be one of the most persuasive individuals among the individuals who improved the world; he kicked the bucket battling the reason for equity that is presently known as the African American social equality development. Lord needed a superior reality where his kids were not subjects to racial persecution and judged not by their skin shading yet by their character and character, where the hued man was equivalent to the white man, Martin Luther ruler Jr was so roused and enthusiastic about change to come to fruition, and he began the transport blacklist, standing firm for what was honorable. The way that Martin Luther was an African American himself was the same amount of inspiration for his activities and devotion to the African American social equality development. Martin Luther lord Jr comprehended the torment brought about by racial segregation and through understanding this torment direct, caused him to understand that he needed to roll out an improvement and through doing as such, began the transport blacklist in 1955. Martin Luther lord was so motivated to in the end give his most notable discourse which is â€Å"I have a dream†, this discourse changed the African American upset and addressed each individual on the planet, regardless of whether you were a man of shading or not, it despite everything had meaning, he said that we should treat all individuals similarly and not judge somebody by the shade of their skin yet by the substance of their character. He was propelled and turned into a compelling individual for some. John Kennedy originated from a rich and special Irish-American family. All things considered, the family needed to leave Boston, and move to New York. In Boston, the family had been held at arm’s length by those rich families who considered their To be foundation as foul and the family’s riches as lacking ‘class’. The Kennedy’s trusted that the more cosmopolitan New York would permit them to get to high society. This prologue to bias and separation ought to have given Kennedy a sympathetic comprehension of what life resembled for African Americans. Be that as it may, the inverse would give off an impression of being valid. Be that as it may, during the presidential crusade and after he was designated for the Democrats, Kennedy made it understood in his talks that he was a supporter of social equality. Some observed the resistance to the 1957 Act as reasonable from a political perspective. Others have received a progressively skeptical view which is that Kennedy perceived that he required the ‘Black Vote’ if he somehow managed to beat Nixon. Subsequently why he said in his battle addresses that segregation recolored America. Kennedy didn't misuse the African American social equality development as a plan to acquire votes, Kennedy needed the African Americans to be equivalent, so he agreed with their position, He needed a superior existence where blacks and whites were equivalent, through martin Luther lord Jr’s dream, Kennedy likewise had a dream of this fantasy where everybody was equivalent. An existence where everybody isn't equivalent is not really a world by any stretch of the imagination, and john F Kennedy was a supporter of the new world, he was propelled both through getting the dark vote and rolling out an improvement to improve things, with a dream of the new world. Kennedy helped shape the world to what it is today with fairness and agreement through all people regardless of what the race or shading or religion. Inside the three discourses wherein I have decided to break down, there are three principle procedures that each of the three speakers use. These procedures help to give the talks progressively compelling and have a more profound effect. Reiteration is a key point all through every one of these discourses, in martin Luther king’s discourse he continues rehashing about the fantasy he has â€Å"I have a fantasy that one day †, The fantasy is a casing for the future and makes way for the remainder of the words. Dream is ambiguous goal. One day begins to make it explicit. This makes an atmosphere all through the crowd when he starts to share his fantasy, those words â€Å"I have a dream† is continually rehashed with the goal that the crowd recollects his fantasy, and even today it is a conspicuous discourse. In JFK’s discourse he rehashes the expression â€Å"It should be possible† he gives instances of what should be conceivable. â€Å"It should be workable for American customers of any shading to get equivalent assistance in spots of open convenience. †; â€Å"It should be conceivable, so, for each American to appreciate the benefits of being American regardless of his race or his colour† this helps the audience members and watchers to get a thought of the fantasy that both JFK and martin Luther lord Jr share. He features the significance of what is ‘ought’ to resemble to be an American. Besides all speakers utilize emotive language, in martin Luther lord Jr’s discourse emotive language is all over, â€Å"One hundred years after the fact, the Negro is still mulled toward the sides of American culture and gets himself an outcast in his own property. Thus weve come here today to sensationalize a dishonorable condition. † We promptly feel thoughtful to the Negro’s in view of the mistreatment that they face in regular daily existence, martin Luther lord utilizes emotive language in a few events inside his discourse both for impact and to get individuals to acknowledge how cruel negro’s are treated in the public eye. We lecture opportunity around the globe, and we mean it, and we appreciate our opportunity here at home, however are we to state to the world, and substantially more critically, to one another this is a place where there is the free aside from the Negroes† JFK says this with energy as he rehashes martin Luther king’s d ream and message, the negro is as yet not free paying little mind to this inconsistency with the American voice of opportunity. They talk about opportunity and harmony all through the world yet, the Negro is as yet not free, Despite opposing thoughts inside the American open, they are compelled to feel compassion toward the negro in light of these words being expressed. At long last the utilization of individual pronouns inside each of the three talks. Martin Luther lord determines the Negro as his own pronoun, the utilization of the word in his discourse isn't to annoy however to teach that the African American is as yet not free; he tends to the Negro individuals in the group and the world. â€Å"But one hundred years after the fact, the Negro despite everything isn't free. One hundred years after the fact, the life of the Negro is still unfortunately disabled by the wrist bindings of isolation and the chains of discrimination† But in addition to the fact that he addresses these individuals, the discourse is focused on white individuals since they are the oppressors, yet martin Luther lord chooses to address the Negro as his aggregate, everybody who went to that discourse was tended to, martin Luther ruler utilized individual pronouns to convince and prevail upon his crowd and he changed and supported the African American upset to improve things. In JFK’s social equality message he utilizes individual pronouns to prevail upon and side with the crowd individuals. Negro† and â€Å"American† are the two individual pronouns utilized the most all through this discourse. These are utilized so everybody is incorporated inside this discourse, and consequently everybody can be convinced that a change is required in light of the fact that they feel as though JFK is conversing with them, the utilization of individual pronoun inside each of the three addresses is utilized to convince and prevail upon the individuals accepting the talks. â€Å"I trust that each American, paying little mind to where he lives, will stop and inspect his inner voice about this and other related episodes. † This is standing up to all Americans in a manner using an individual pronoun.

How to Write a Psychology Lab Report

How to Write a Psychology Lab Report Student Resources APA Style and Writing Print How to Write a Psychology Lab Report By Kendra Cherry facebook twitter Kendra Cherry, MS, is an author, educational consultant, and speaker focused on helping students learn about psychology. Learn about our editorial policy Kendra Cherry Updated on February 15, 2020 baona / E / Getty Images More in Student Resources APA Style and Writing Study Guides and Tips Careers A psychology lab report is a paper that describes an experiment organized and written according to the same format used in professional journal articles. These are the essential elements of a psychology lab report and what each should include. Title Page This will be the first page of your lab report. It should include important information such as the name of your paper, your name, and your academic affiliation. Abstract Page two of your lab report will be an  abstractâ€"a brief description of what you set out to find in your research, how you went about it, and a general statement describing your findings. According to the American Psychological Association (APA) style guide, for most lab reports, the abstract should be kept to 250 words.?? However, the specific word count and format of abstract could vary depending on your instructor or the academic journal in which you plan to publish. Introduction Your paper should begin with an introduction that describes previous findings regarding your topic of interest, explains the goals of your current research, and describes your hypothesisâ€"what you expect to discover as a result of your research. In order to provide a thorough and sufficient overview of past research, your introduction will likely be several pages long. Be sure to cite all sources using proper APA style. See How to Use APA Format to Cite Authors, Books, and Periodicals Method The next section of your lab report will be the method section. In this portion of your report, you will describe the procedures you used in your research. Youll include specific information such as the number of participants in your study, the background of each individual, your independent and dependent variables, and the type of experimental design you used. Results In the  results section  of your lab report, youll describe the statistical data you gathered from your research. This section will likely be quite short; you dont need to include any interpretation of your results. Use tables and figures to display statistical data and results. Discussion Next, your lab report should include a discussion section. Here youll  interpret the results of your experiment and state whether your findings support your hypothesis. You also should offer possible explanations for your findings and what they might mean in terms of future research on the topic. References After your discussion section, your lab report should  include a list of the references you used in your experiment and lab report. Remember, all references cited in the text must be listed in the references section and vice versa. All references should be in APA format. Tables and Figures Any tables or figures used to display your results should be included in this final section of your lab report.  For more detailed descriptions and examples of tables and figures, consult the Publication Manual of the American Psychological Association.

Persuasive Technique for Stimulating Product Purchase - 1375 Words

Use of Propaganda by Salesmen as a Persuasive Technique for Stimulating Product Purchase (Essay Sample) Content: Your Name HereEnglish 101Dr. Thom YoungFull Date (12/17/2016)Use of propaganda by salesmen as a persuasive technique for stimulating product purchase..IntroductionThe study of management of exchange relationship in business is referred to as marketing. Marketing has been term as an action of activity of an institution; that involves a process of creating, ensures communication, delivering and providing exchange offering that is of value to customers, the clients and the society as a whole. (Hunt, Shelby 17-25) They are few techniques used in marketing such include target marketing and market segmentation; there is a need also to understand how to influence and relatively control consumer behavior.Marketing provides an efficient link between the society's material need and its economic resources. It is important to describe the type of marketing for a nonprofit organization. This form of marketing has goals of delivering messages about the organization's service and e nsuring that it reaches an appropriate audience. It was important to note that marketing is pertinent to the survival of every organization at such there a need to adopt specific marketing philosophy and ensure that such philosophizes must continually based on the firm propaganda. Marketing propaganda is a communication that provides the promotion of an idea or a way of thinking.The message can contain facts or at times may include deception; the main aim of propaganda is to ensure that audience is persuaded into agreeing with the message of the sender. A company uses propaganda to deliver the message that support is goals and aims to clients; such messages are often based on firms market philosophy. A market philosophy can be defined as a factor used to determine the mission of a business organization, it employs the satisfaction and benefits the organization offers as a tool for getting this done.The focus of marketing philosophy is usually in two-way communication with firm and i ts customer this done so as to enable, a marketing department to have an adequate understanding of the needs of clients more clearly. Marketing propaganda philosophy adopts a longer-term orientation rather just short term. It is of important to also clearly point out that marketing propaganda is based on the five components in marketing philosophy. i.e. The societal marketing concept, successful marketing philosophy: the product concept marketing concept, and the product concept. (Koch at el).The product concept holds that superior competition of product will attract client purchase. The product concept points out that sale increase is closely related to the effectiveness of distribution and production capacities of businesses. The selling concept is a notion that market commitment by the firm is a factor that will stimulate customer purchase. The concept of market philosophy points out that the goals of the organization should be center on the wants and needs of its target market. After giving a clear background for the study. It is important to state that the purpose of this study is to point clearly how marketing propaganda can be used as a technique to shape a person's thoughts, ethics, and belief systems.Marketing propaganda and personal thoughtsThis section of our study will look at how marketing propaganda can be used as a tool to shape the person thought of client, at such stimulating them to make a purchase, one way business all over the world have been able to get this done is by adopting the use of digital strategy. High-level stimulation towards technology is a major characteristic of the current business world. Marketing and communication have adopted the use of digitals integrated campaigns as major components in its advertisement to create desired pictures in the mind of buyer hence influencing their thought patterns and stimulating purchases. This form of campaigns is carried out on platforms such as TVs, existing websites, blogs social media and etcetera this ensures that the firm's target market is reached.Adopting this marketing propaganda is inherent in the knowledge of how to reach online and offline customers. A company must develop its business into a digital world if this must be effective. There is a need for enterprises to identify existing gaps, and communicate fundamentals to clients. Business must adopt a digital strategy to ensure that their messages passed across to both current and potential client. Constant and continuous advertisement by firms on media platform helps to create remarkable and unforgettable images in the minds of customers. This will effectively shape their thought pattern towards having a positive notion for a firm's goods, services and range of product offerings, (Henneberg at et).Marketing propaganda and ethics.At this point, we shall be looking at how market propaganda can be used to shape ethics of buyer and hence stimulation purchase of firm's product offerings. It is important to s tate that ethic and be defined as the way we life. It can so be considered as our view of societal activates. Ethics talks about what is considered right or wrong by a set of people. It is important to note that the ethics of a group of individuals is developed and formed over a period time through constant and continuous reorientation. Since we have already accreted that propaganda is a communication that ensures the promotion of an idea or a way of thinking. Continuous use of propaganda by marketers can be effective in creating shift in thinking pattern toward the use of a firm's product offeringsThe use of propaganda means orienting a target market towards the use of their product. It is important the state that the process is not automatic; a business must be committed regarding the use effort and use of resources. This will ensure that there is a positive view of the firm and its products by target markets and hence stimulating demand. Conclusively, it is important to stress th at propaganda can be used as a tool of influencing and shaping ethics of a target market, this can be done by constant and continuous reorientation, (Laczniak at el).Marketing propaganda and belief systemsFor the purpose of this study, we have been looking at how propaganda can be used by salesmen to shape the belief system of a market and stimulate demand for firms product offering. At this point, we shall take out time to explain the concept of the belief system we shall look at how marketing propaganda can be used to shape the belief system of a market. Belief is can expressly describe as a state of mind in which an individual thinks that something is true and a fact with or without a basis or empirical evidence to prove such claims. It has been seen as a mental representation of a phenomenon; it is an attitude if positive orientation and the likelihood of believing that something is true.If this is the case then it is important to express that salesmen can use marketing propagan da to shape the belief system of the market toward having a positive notion toward the product offerings of a company. This can be done in some ways. First, a propaganda message messages must adopt a persuasive tone this will enable a change of mind and direct a positive notion towards to product. Second, the propaganda ...

Dissertation On International Public Relations Education - Free Essay Example

Sample details Pages: 14 Words: 4206 Downloads: 3 Date added: 2017/06/26 Category Statistics Essay Did you like this example? Introduction The main theme of the dissertation is internationalisation of public relations education. It is quite a broad topic and can be reviewed and discussed from different points of view. In this regard the selected literature first examines international public relations concepts and secondly an impact it has on public relations education. Therefore, literature review has been divided into the following major themes: International public relations (IPR) and International public relations education (IPRE). The chapter will begin by presenting the main debates about international public relations and its concepts alongside with a brief overview of factors influencing it. It will be followed by a section presenting state of research on IPR. The discussion will then move to section two international public relations education, exploring the requisites and challenges for internationalisation. Finally the chapter will summarise the key themes and points identified. The major part of the literature review focuses on contemporary research, defined as 1989-2009. Don’t waste time! Our writers will create an original "Dissertation On International Public Relations Education" essay for you Create order International PR A growing number of publications document the development and challenges of the public relations in every major continent and region of the world (Nally, 1991, Moss et al., 1997, Moss et al., 2003, Sriramesh and Vercic, 2003b, Van Ruler and Vercic, 2004, Freitag and Stokes, 2009). This research refers term global PR to globalisation of the profession, which is being practises and recognised in more countries throughout the globe, while International PR refers to the planning and implementation of programmes and campaigns carried out abroad or for international audience. Hence international PR education refers to the process of adopting professional training to International PR concepts and demand. Public relations is still relatively new concern for management, even though its modern origins can be traced to the end of the last century (White, 1991). According to (Cutlip, 1994), a key researcher in the history of public relations in the U.S., the first international public relations agency à ¢Ã¢â€š ¬Ã‹Å"The Hamilton Wright Organizationà ¢Ã¢â€š ¬Ã¢â€ž ¢ was founded in 1908. International communities of professionals and scholars are increasingly interested in transferring knowledge, experiences, and best practices from national to transnational scenarios. This advancement is generated by the increasing role of public relations which is driven largely by the influence of new information technologies and globalisation (Flodin, 2003). Drawing upon this, DiStaso et al. (2009) discussed the effects of globalisation, that began with the Maastricht Treaty and NAFTAA in 1992, the WTO in 1994 and claiming it had great impact on the public relations industry. According to Szondià ¢Ã¢â€š ¬Ã¢â€ž ¢s (2009, p.115) International public relations is the planned communication activity of a (multinational) organisation, a supra- or international institution or government through interactions in the target country which facilitates the organisation (or government) to achieve its policy or business objectives without harming the interests of the publics. There have been papers which presented international PR to be simply about how to overcome barriers that are created by other cultures, including language, laws or cultural issues, which are often indentified as problems (Wilcox et al., 2001), rather than opportunities or the manifestation of diversity. The most frequently referenced paper which stands against IPR has been Angell (1990) asserted that the variance between local countries was so great as to preclude any possibility of globalisation. A much different study, also highly referenced, has been provided by Pavlik (1987), who as early as the 1980s considered IPR one of the most rapidly growing areas of the profession, and one of the least understood. The problem with defining difference between domestically and internationally done public relations is that there is not enough research or critical assessment. While basic principles do not change, the way they are carried out from culture to culture and country to country, and the attitudes and values embedded within those different cultures or countries, are different (Wakefield, 2007b). A similar study was conducted by Botan (1992, p. 157), who argued that international public relations is always intercultural. The existing public relations body of knowledge, and public relations curricula around the world, have a U.S. bias (Sriramesh, 2002). U.S. paradigm, however, strikes with the idea of that European or non-U.S. perceptions of public relations become more of value in the twenty first century. A US professor and professional Robert Wakefield (2007b), who have been practicing and researching in the area of IPR for almost two decades, believes that principles and practices of PR in Europe, emphasising social role of public relations, are more promising for effective PR in the multinational than the American-based PR-as-marketing-tool approach. He, alongside the majority of new PR schools, supports paradigms of PR incoming out of places other than the U.S. Therefore, need and call for the elsewhere theories and concepts was also a factor for a research in international/global PR. Ovaitt (1988, p.5) made an interesting suggestion saying that it was not a popular idea with marketing and advertising experts when they started thinking about internationalisation decades ago and it was not popular with public relations practitioners back to late 1980s. The idea is that what these professionals do for a living might be done on a global basis à ¢Ã¢â€š ¬Ã¢â‚¬Å" global in the sense of achieving some significant level of standardisation, not only of what is offered to customers, but also how it is presented and promoted. Public relations as a profession is not necessarily understood and practised in the same manner all around the world. This is not news per se, as several scholars (Sharpe, 1992, Vercic et al., 1996, Taylor, 2000, Rhee, 2002, Valentini, 2007) for many years have underlined that public relations requires a global understanding of cultural differences. Different studies (Kent and Taylor, 1999, Lee, 2005) show that public relations practitioners are increa singly required to be able to communicate with different international publics, no matter the size of the organisation they are working for, or whether it is private or public, including non-profit organisations. After the International Association of Business Communicators (IABC) Excellence Study yielded a review of normative principles (Grunig, 1992), Vercic et al. (1996) explained the importance of identifying five contextual variables that influence the practice of the normative principles. Vercic, Grunig, and Grunig (Vercic et al., 1996) proposed a global theory of public relations that was elaborated by Sriramesh and Vercic (2003a, 2003b, 2009) in their Global Public Relations Handbook and by Sriramesh (2009) in a special issue of PRism. Their global public relations theory attempted to answer the question of whether public relations theory and practice should be unique to each country or culture or whether it should be practiced in the same way everywhere. Authors answered this question by theorising that global public relations should fall in the middle between standardisation and individualisation (Grunig, 2009). The theoretical framework of Sriramesh and Vercic (2003) has been used to assess the status of public relations in countries around the world. Contextualised studies are the core component of the global public relations concept. As Vercic (2009) reported, international PR practices should represent the best practices anywhere because of their necessary complexities and reach. Global theory is not a positive theory, which describes a type of public relations that currently is practiced everywhere in the world. Research, such as that reported in Sriramesh and Vercic (2003, 2009), does show that there are many idiosyncrasies in public relations practice around the world that reflect cultural differences. It also shows that the one worldwide universal in public relations practice is what is J. Grunig have called the press agentry/publicity model (Grunig et al., 1995)à ¢Ã¢â€š ¬Ã¢â‚¬ the least effective of the models. Rather, their global theory is a normative theory that argues that public relations will be most effective throughout most parts of the worl d (Grunig, 2009, p.2). Emphasising cross-cultural effects on reputation in multinational organizations Wakefield (2007b, 2008) argues that there still is an important distinction between global and domestic public relations practices, and that understanding those differences will contribute to better global practice. More specifically, recent research has also called into questions of need to understand how culture affects public relations. There are numbers of key researches (Grunig et al., 1995) who have written papers specifically on the subject. A similar study was conducted by Neff (1991), who has indicated that economic development is leading public relations firms down a path requiring knowledge of culture and language in addition to public relations. Perhaps one of the most influential recent publications on multiculturalism in public relations education was produced by Sriramesh (Sriramesh, 2002, Sriramesh, 2003). He has also reported that public relations education has not kept pace with the rapi d globalisation that has occurred since 1992 (Sriramesh, 2002). Sriramesh (2009) called for a need for a more thoughtful representation of many of the à ¢Ã¢â€š ¬Ã‹Å"generic principlesà ¢Ã¢â€š ¬Ã¢â€ž ¢ of public relations practice to suit the à ¢Ã¢â€š ¬Ã‹Å"local environmentà ¢Ã¢â€š ¬Ã¢â€ž ¢, so that the body of knowledge is more holistic and relevant to global demands. However, there still is a room for an assumption that not all the practitioners require international training and international perspective. RESEARCH / CRITICS: Since the advent of the Internet, it is even more tempting to view PR practice as the same anywhere, and therefore it decreases attempts to produce research or principles that need to view à ¢Ã¢â€š ¬Ã…“cross-border PRà ¢Ã¢â€š ¬? as differentà ¢Ã¢â€š ¬? (Wakefield, 2007a). Despite the numerous calls for research, reviewed works and studies on global (national) public relations released in the 2000s (see table 1) (Portugal, United States see table) have recorded that this area of research is underrepresented. Despite global trends underlining increased internationalisation, these results can be interpreted to indicate that Researchers have not paid enough attention to the international perspective. An important indicator is the place international public relations occupy in the list of priority research topics. One recent example is a à ¢Ã¢â€š ¬Ã‹Å"Study of the Priorities for Public Relations Researchà ¢Ã¢â€š ¬Ã¢â€ž ¢ conducted by Deputy Dean of Media School of Bournemouth Univ ersity (UK) Tom Watson (Watson, 2008, Watson, 2007)[1].He sent 26 public relations topics to a Delphi study panel and the Top Ten PR research topics were identified, however, international perspective was excluded from the list. A US professor and professional Robert Wakefield responded critically to Watsonà ¢Ã¢â€š ¬Ã¢â€ž ¢s Delphi study: First, I was surprised in finding that the topic fell all the way out of the top ten. After all, arenà ¢Ã¢â€š ¬Ã¢â€ž ¢t PR issues and challenges, along with its overall scope of practice, becoming more international with each passing year?(2007a, p. 6) Nonetheless he added: à ¢Ã¢â€š ¬Ã…“There really are no more studies being done on international public relations now than have been done over the course of the last three decades. Those that are being published are increasingly making such statements as à ¢Ã¢â€š ¬Ã…“there is no such thing as local PR anymore,à ¢Ã¢â€š ¬? or à ¢Ã¢â€š ¬Ã…“today, everything is global.à ¢Ã¢â€š ¬? Well, if this represents what academics and practitioners are thinking, then it would stand to reason that no real different research needs to be doneà ¢Ã¢â€š ¬Ã¢â‚¬ that ANY PR principles, even if they are all traditionally domestic in nature, would suffice for research or practice anywhere in the worldà ¢Ã¢â€š ¬? (2007a, p.7). The seminal critique in this area is also by Sriramesh (2009, p.6), who argues: à ¢Ã¢â€š ¬Ã…“When scholars think of, and discuss, public relations, the global perspective is often overlookedà ¢Ã¢â€š ¬?. Srirameshà ¢Ã¢â€š ¬Ã¢â€ž ¢s (2009) critique of Mackey (Mackey, 2003), who claimed to introduce the various contemporary theories of public relations in the inaugural issue of Prism is also indicative: à ¢Ã¢â€š ¬Ã…“The author attempted to review à ¢Ã¢â€š ¬Ã…“the changing vistas in public relations theoryà ¢Ã¢â€š ¬?, there was not a single mention of any advances in global public relations theorising in that piece even though by 2003/that time there were several advances worth reportingà ¢Ã¢â€š ¬?(2009, p.8). Another example is Distasso (2009). Authors surveyed 312 public relations executives and educators to examine how well practitioners and instructors perceive public relations students to be prepared for the practice, the content and value of public relations curricula and, the future of public relations education in the United States. Even though scholar mentioned globalisation as a factor increasingly influencing public relations practice he had not included it in the questionnaires or research questions. Somewhat it contrast are papers from the annual International Public Relations Research Symposium Bledcom, which reflect the diverse and up-to-date research traditions amongst scholars working in the field of public relations both within the USA and Europe (Moss et al., 1997, Newman and Vercic, 2002, Moss et al., 2003, Sriramesh and Vercic, 2003a, Sriramesh, 2004, Van Ruler and Vercic, 2004, Van Ruler et al., 2008, Sriramesh and Vercic, 2009). These are scholars, who systematically examines the priorities for PR research and determine international agenda These differences in research agenda are reflected/explained, to some degree, in the/by Scholars like Sriramesh, Vercic, Wakefield and others highlighted the important point that an issue of international public relations is not reflected enough in the research questions. International public relations education (IPRE) As a corollary to the process of globalisation has been the recognition of the need to make public relations education more internationally focused and future public relations professionals more internationally and interculturally competent (Lane DiStephano, 1992) / Huthcings et al., 2002 There have been numbers of calls for new public relations curricula aimed at educating staffs that can understand and meet increasing international social, economic and political complexities and challenges. (Pratt and Ogbondah, 1994, p. 13). The International Association of Universities (1998) supported the need for business schools to be more international in their strategy, claiming higher education must integrate an intercultural dimension into its teaching and research, if it is to fulfil its role and maintain excellence. (Hutchings et al., 2002, p. 58). Another rationale for an international public relations course is the accelerating pace of societal and technological change today. These cha nges call for adaptations in academic curricula and professional development programs. There were written dozen papers on justification of international public relations education based on research in the different areas. Some went radical claiming that à ¢Ã¢â€š ¬Ã…“any curriculum that excludes international public relations courses is ineffective in addressing student and practitioner needs, particularly in the next centuryà ¢Ã¢â€š ¬? (21 century).(Pratt and Ogbondah, 1994) p.9 Factors what influence the development of IPRE are mostly the same, however they have different interpretations. The need for international courses in public relations is demonstrated further by the growing global recognition of public relations degree programs and education, a phenomenon that Cantor (1984) predicted more than twenty years ago. And indeed, previous investigation has established that the call for internationalisation of public relations education has been there for a long time and comes from both industry and academia sectors (Neff, 1991, Cottone et al., 1985). However, disagreements between practitioners and educators on a blueprint for international public relations education have also been documented (Pratt and Ogbondah, 1994). A decade old survey of U.S. public relations educators and practitioners that explored the state of curricula and content in public relations education found that both practitioners and educators perceive need to incorporate courses and cont ent that will prepare future practitioners for the global landscape (Neff et al., 1999). A Public relations is a multidisciplinary area of study and practice that must change as rapidly as the context and society in which it exists (Baskin, 1989, p. 35). As public relations continues to be a globalised profession, curriculum should be updated to reflect the practice. Ten years later similar study has recorded, that having a global perspective and experience with a variety of cultures are necessary but lacking skills for advanced level practitioners (DiStaso et al., 2009, p.269). An important consideration in providing students with some skills in achieving cross-cultural understanding is the recognition that, as future business professionals and leaders, they will live in a society increasingly characterised by international labour mobility and multiculturalism. The international manager or employee will be an individual who will spend their working lives in several distinct job areas working for several organisations as well as making several sojourns to various international postings. This means that the new style employee will need to be cosmopolitan, multilingual, multifaceted and what Schneider Barsoux (1997, p. 157) refer to as a capacity to operate à ¢Ã¢â€š ¬Ã…“across national borders somewhat like James Bondà ¢Ã¢â€š ¬?. Public relations education at all levels and in both communication and MBA programmes should educate students to practise public relations globally (Grunig and Grunig, 2002). However, not only do students need to be trained and p repared for this mobility, but even those who do not move to another nation face the recognition that the domestic work environment also requires some responsiveness to differing cultures (Hutchings et al., 2002, p. 69). Sriramesh (2009, p.6) makes a reasonable argument that even textbooks in the US and the UK should contain more à ¢Ã¢â€š ¬Ã‹Å"globalà ¢Ã¢â€š ¬Ã¢â€ž ¢ cases and interpretations so as to give their own students a more international and holistic education, thus broadening their horizons. It is indicated that authors of universityà ¢Ã¢â€š ¬Ã¢â€ž ¢s level public relations textbooks have not yet realised the growing importance of international public relations and thus deal marginally with it. The International Public Relations Association (IPRA) has drawn on its international membership to research and recommend standards for public relations education and has established the results of its work in two à ¢Ã¢â€š ¬Ã‹Å"Gold papersà ¢Ã¢â€š ¬Ã¢â€ž ¢ in 1982 and 1990 (IPRA (1982) Gold paper No. 4, A Model for Public Relations Education for Professional Practice, and (1990) Gold Paper No.7, Public Relations Education à ¢Ã¢â€š ¬Ã¢â‚¬Å" Recommendations and Standards). (White, 1991) p.184-185 Not much has changed since that time. WAYS: Number of general papers were designed in response to the need for public relations education to produce well-trained, culturally sensitive practitioners (Miller, 1992, Ekachai and Komolsevin, 1998, Burbules and Torres, 2000, Bardhan, 2003, Dickerson, 2005, Tuleja, 2008). With the increasing importance of international communication, some educators had considered creating a course dedicated to international public relations (Pratt and Ogbondah, 1994, Taylor, 2001). In a special edition of Public Relations Review on developing teaching related materials, Taylor (2001) offered guidance to public relations educators on how to develop an international public relations curriculum because: à ¢Ã¢â€š ¬Ã…“New communication technologies and global communication processes create more frequent international communicationà ¢Ã¢â€š ¬? (Taylor, 2001, p.2). Nevertheless, some of the Taylorà ¢Ã¢â€š ¬Ã¢â€ž ¢s conclusions sounded far too decisive: à ¢Ã¢â€š ¬Ã‹Å"The most comprehensive way to intern ationalize the public relations curriculum is to offer a course dedicated to international public relationsà ¢Ã¢â€š ¬Ã¢â€ž ¢ (p. 74). Creedon and Al-Khaja (2005) analysed how adding cultural competency to the list of skills and competencies required in educational programs presents an opportunity to educate a generation that will accept difference and value a global culture separate from national identity. Then again the study was rather limited the authors conducted a survey of accredited programs to determine whether or not a history course was required of their majors. Another empirical-based study argued that just talking about the importance if IPR in the classroom is not sufficient, students have to be able to live international public relations in order to understand its relevance (Bardhan, 1999, p. 19). An important portion of literature on international public relations education suggests the necessity for students to learn about other countries through immersion. According to Porth (Porth, 1997, Tuleja, 2008) the international study tour course may be a legitimate answer to critics of education who urge business schools to à ¢Ã¢â€š ¬Ã…“go globalà ¢Ã¢â€š ¬? and to create stronger ties with the international business and academic communities. More specifically, recent research has also called into question the assumption of studying internationally. For instance, Hutchings et al. (2002, p. 58)suggests that the challenge for the education is how to devise a short-term study program that is effective in exposing international concepts to the student. Yet, foreign travel alone is not the panacea for internationalising PR education because it is difficult to manage even if having resources. Hutchingsà ¢Ã¢â€š ¬Ã¢â€ž ¢ study is focused on going abroad, even so it may make some contri bution to understanding of global consciousness characterised as moving towards a recognition and appreciation of increasingly global diversity and interdependence. Arguments about which is the best approach to international public relations education, courses and its numbers, or changing the context with its live experience and observations, largely missed the important point that methods have to be fit for their purposes. For some purposes, this is the best, and in other cases the choice will be this and that. Furthermore, although those approaches rest on very different use of resources and possibilities, they can be complementary in the hands of future research and need to be incompatible. Many studies would benefit from mindfully using each approach for different purposes at different stages of the internationalisation. Fuller discussions of this are to be found in some public relations papers, including (Neff, 1991, Dibrova and Kabanova, 2004, Peterson and Mak, 2006, Chung, 2007/8, Dolby and Rahman, 2008). CHALLENGES/BARRIERS: Authors such as Kalupa and Carroll Bateman (1980) have suggested that public relations educators have failed maintain the currency of the teaching in relation to the practice. On the other hand, Holbrook (1985, 1995) has been one of the most prominent critics of the idea of selecting research topics based on what is of interest to practitioners. He has argued that such an orientation tarnishes the purity of the academic endeavour. Amongst other challenges Bardhan (1999) recorded that educators feel unprepared at present to handle the task effectively and lack of interest among students. Falb (1991, 1992) has claimed that because of putting public relations curriculums in either Mass Communications or Journalism public relations has been inhibited in its growth in academic and professional areas. Similar study was conducted by (Pincus et al., 1994), who argued that communication topics do not rate high in MBA programs: à ¢Ã¢â€š ¬Ã…“If public relations faculty do not champion the recognition of public relations topics in MBA programs, the profession will never realize entry to the highest levels of corporate decision makingà ¢Ã¢â€š ¬? (1994: p.55) . Making an analogy, this statement might be extended by claiming that If public relations faculty do not champion the recognition of international public relations concepts in Postgraduate programs, the profession will lack behind present state of research and practice. This statement finds a reflection in recent research as well. Papers like Sriramesh (2002) claim that it is time for educators to integrate experiences from other continents into the PR body of knowledge, thereby building PR curricula that contribute to training truly multicultural PR professionals. CONCLUSION: Sriramesh and Vercic (2003) underlined the compelling need for a text describing and explaining public relations practices and body of knowledge in different parts of the world. Their call for research has been taken up and largely because it proposed a framework, which made it easier to facilitate global research. Thereby, by critically examining the framework scholars in different countries enrich international public relations body of knowledge and provides prove or counter-arguments to the Global theory. Nonetheless, it might be argued that among those five factors, which have been put forward by Sriramesh and Vercic (2003), one is missing à ¢Ã¢â€š ¬Ã¢â‚¬Å" professional PR training. In this regard it can be concluded the following. Firstly, such indicator as level of professional training can be considered as a sixth factor influencing practicing public relations in country. Secondly, on the basis of a global concept can be developed a similar concept and subsequently applied to the study of international public relations education. Thirdly, basing on data provided from the five factors, it allowed to determine the degree of standardization vs. localization of IPR programs and courses and to identify barriers and obstacles. Achieving internationalisation of public relations education is concluded to be important for three reasons. First, because many graduating students will be finding employment internationally and benefit from having been educated to be effective in differing cultural settings. Second, because rapid changes in national immigration policies have meant that many more nations are considerably more multicultural than they have been in the past and citizens need to be more conscious of diversity in their national and organisational surroundings. Third, because the pace of changes in the international political economy necessitates that people must be responsive to international economic and business forces. Thus, students who receive an internationally focused public relations education should be more culturally and socially aware and prepared to cope with the demands of rapid international economic, political and social change (Hutchings et al., 2002). Professional education and training are one of the major issues in every country in which public relations is practised. Even the US, where there are hundreds of public relations education are frequently expressed, and senior practitioners rise questions about the value of existing public relations education programmes (White, 1991, p. 184). Sommerness and Beaman (1994) found only few offerings of university courses emphasising international public relations across the United States at that time. However, most recent study has shown that some authors (Hatzitos and Lariscy, 2008) report an increased interest in scholarly research in international public relations and an effort to internationalise the public relations curricula at many U.S. universities. Despite the fact that significant gaps were found between desired outcomes and those actually found in the opinions of both practitioner and educators, certain surveys (Neff et al., 1999) have revealed strong agreement between educator s and practitioners regarding the training, experience and expertise outcomes needed for career development in public relations. Thus, while the goals of public relations education to certain extent seem clear, the means of achieving those goals, including curriculum, pedagogy, and assessment, may not be as clear. However, studies such as examining perception, asking whether or not IPR should be emphasised à ¢Ã¢â€š ¬Ã¢â‚¬Å" doesnà ¢Ã¢â€š ¬Ã¢â€ž ¢t really contribute anymore as the concept have solidly grounded. There have been dozen papers reporting that call for a development. What more valuable for this particular research is the fact that international public relations education requires to be integrated into global PR perspective. International experiences, approaches and cases must be studied and shared between international academic societies. The literature review recorded a substantial gap in international public relations education research elsewhere than U.S. Therefore there is a need in further researching and describing development in IPRE globally. This particular study will explore perceptions and state of IPR education in two countries à ¢Ã¢â€š ¬Ã¢â‚¬Å" the United Kingdom and Russia.

How Islamic Banking Has Gained Momentum - Free Essay Example

Sample details Pages: 18 Words: 5419 Downloads: 5 Date added: 2017/06/26 Category Statistics Essay Did you like this example? In the last quarter a century, Islamic banking become as hot issue in both Muslim and non-Muslim World and gained momentum. Many studies have been conducted on commercial Islamic banking but nothing up to date has been done on integrating Islamic banking system with its conventional counterpart. Islamic banking is steadily moving into an increasing number of conventional financial systems. It is expanding not only in nations with majority Muslim populations, but also in other countries where Muslims are a minority, such as the United Kingdom or Japan. Similarly, countries like India, the Kyrgyz Republic, and Syria have recently granted, or are considering granting, licenses for Islamic banking activities. In fact, there are currently more than 300 Islamic financial institutions spread over 51 countries, plus well over 250 mutual funds that comply with Islamic principles. Over the last decade, this industry has experienced growth rates of 10-15 percent per annum -a trend that is expected to continue. Don’t waste time! Our writers will create an original "How Islamic Banking Has Gained Momentum" essay for you Create order Despite this rapid expansion, in most conventional banking systems, Islamic finance is still uncharted territory for most practitioners and policy-makers. Since current trends indicate that Islamic banking will continue to increase its penetration of conventional systems, policy-makers and practitioners need to become acquainted with this process and its implications for financial supervision. CHAPTER 1 INTRODUCTION 1.1 Overview The Islamic financial system has a century-old history (Chapra and Khan, 2000). From the very early stage in Islamic history, Muslims were able to mobilize resources and facilitate productive activities and consumer needs without interest. The system worked well during the early days of Islamic civilization. However, as the forces of economic gravity shifted activities over to the western world, western financial institutions became dominant and the Islamic tradition took the back stage and remained dormant. In recent years, there has been a significant revival of interest in developing a modern version of the historic Islamic financial system, in the wake of Muslims cry to stay away from interest, which is prohibited according to the Islamic sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah. Some countries are however trying a complete elimination of interest in the financial system while others have allowed the establishment of interest-free banking along side the conventional banks. The Islamic financial system is based on a number of principles found in the Islamic law (Sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah) as well as other jurisprudence or rulings known as fatwa. The central distinguishing feature of the Islamic financial system is the absolute prohibition of interest charges. Although, Islamic finance relies on the equitable risk-sharing, it rejects the concept of pre-determined interest rate but permits an uncertain rate of return based on trade and profits. The financial sector of the economy encompasses financial instruments, financial institutions, and financial markets. Financial instruments are traded on financial markets by financial institutions. However, over the time, some participant will find it necessary or profitable to acquire more worth of goods and services than they currently produce and give in exchange. Under the modern financial system, interest and enterprises based on interest occupy a prominent position, the whole banking system rest on interest, but the Islamic financial system differs from its conventional counterpart. Islamic banking is steadily moving into an increasing number of conventional banking set-ups. It is expanding not only in Muslim majority countries but also where Muslims are minority such as United Kingdom and Japan. An important principle of Islamic finance is the desire to maintain the moral purity of all transactions. The funds intended for sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah compatible investments should not be mixed with those of non-Islamic investments. In this sense, when a conventional bank opens an Islamic window, it is only establishing a separate entity from the rest of the bank. The aim of this chapter is to lay down the objective, aims, importance, methodology, and hypotheses of the research. An overview of evolution of financial systems and a survey of chapters covered in this research will follow. 1.2 Research Objective This study will attempt to explore the concepts of Islamic financial principles which relate to the integration of Islamic banking with the conventional financial system at the present time. So much, however, has been written on the theoretical side that it might be asked whether a further study can contribute to our understanding of the subject or not. Nevertheless, this research is using HSBC Amanah as a case study with an evaluation of its operations and performance in order to try and answer the following questions to reach this objective: Can conventional banks legitimately offer Islamic financing facilities given their involvement with interest-based finance? Are both conventional and Islamic banks converging or becoming increasing distinctive? How can conventional banks offer Islamic financing facilities? Do the functions of the Islamic banks differ significantly to that of the conventional banks? 1.3 Significance of the Study Islamic finance is emerging as a rapidly growing part of financial sector in the world. It is growing at such a rapid pace that Islamic financial institutions are present today in over 51 countries (Sole 2009) Despite this consistent growth, many supervisory authorities and finance practitioners remain unfamiliar with the process by which Islamic banks are introduced into a conventional system. This work attempts to shed some light in this area by describing the main steps in the integration process, and by flagging some of the main challenges that countries could face as Islamic banking is integrated into conventional institutions. 1.4 Methodology This research work was carried out using a deductive reasoning approach. To ensure validity and reliability of the research, HSBC Amanah was used as the case study. Data was collected from HSBC Amanah head office in Dubai, UAE, Islamic Bank of Britain in Birmingham to act as the control data as well as libraries across London such as The British Library in Kings Cross and London School of Economics and Political Science Library. In more details, the methodology of the research is as follows: 1) A literature review of the western financial system is completed to enable comparisons between the western and the Islamic financial system to be undertaken. 2) The operations of conventional banks are reviewed. 3) Having established acceptable Islamic financial principles, the operations of an Islamic bank are examined in the context of conventional banks. 4) To evaluate the performance of the HSBC Amanah, historical data available in the annual reports was studied and analysed. The Islamic Bank of Britain is taken as a model for comparison. 5) To provide a more comprehensive evaluation of HSBC Amanahà ¢Ã¢â€š ¬Ã¢â€ž ¢s performance questionnaires were distributed to collect more information to confirm or otherwise the findings of the financial analysis under 4 above. 1.5 Main Hypotheses The main hypothesis of the research is that the Islamic financial system model differs from that of conventional financial system. This hypothesis will be examined in the light of 1) The theory of Islamic finance as perceived in the Islamic economic and financial literature. 2) A case study of HSBC Amanah. 3) The opinions of those operating or Governing HSBC Amanah and Islamic Bank of Britain CHAPTER TWO LITERATURE REVIEW 2.0 Introduction The importance of the financial system cannot be overemphasized. Before the introduction of the money based economy, the barter system of trade prevailed; this involves the direct exchange of goods for goods in a simple market transaction without the intermediation of money as a medium of exchange. The main problem with the barter economy is that it is considered primitive and if there is no financial system based on money, there would be no reason to hold money but rather to accumulate physical assets. This chapter discusses the literature that provides the foundation for the research. It explores the theoretical concepts used in the later analysis and identifies the gaps in the literature that led to the study. 2.1 The Financial System The financial system consists of financial markets, instruments, institutions, business firms and government in financing the acquisition of goods and services, capital investments and in transferring ownership of securities (Schall and Haley, 1991). Financial systems are never static but changes over the time as new products and instruments are developed. The influence of the financial system is not limited to investments or borrowing but rather changes in the value of financial assets or the rate set for other financial variables can affects the whole level of activity in an economy. Financial system is important in any economy for the following reasons: 1- It provides an efficient means of bringing the surplus units and the deficit units together in order to make transactions quicker and cheaper. 2- The financial system includes the secondary markets which facilitates the buying and selling of outstanding securities. This makes it easy for a firm to raise external debt or equity capital. 3- The value of a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock can be easily determined through the market forces of demand and supply. 2.2 Roles of the financial system The key roles of the financial system are not specific to conventional or Islamic based system. Financial systems perform most of their everyday operations so quickly and smoothly that their importance is not always well readily recognized. A well functioning financial system performs its principal roles of effecting payments, facilitating the investment of accumulated wealth, making funds available to finance viable new projects and providing risk management facilities. Parts of the financial system operate to make the system for payments in the economy as smooth as possible. It thus helps money to perform its function as a medium of exchange. The financial institutions predominantly involved in the monetary system are the à ¢Ã¢â€š ¬Ã…“clearing banksà ¢Ã¢â€š ¬?. They assist with the payment mechanism by offering current accounts against which the account holder can write cheques or use debit cards to pay for goods. In the absence of such facilities, people would need to carry sufficient cash in order to make payments. The role of financial intermediation requires providing mechanisms for saving and borrowing so that agents in the economy can alleviate budget constraints. This involves creating a variety of financial assets and liabilities with different characteristics that appeal to different savers and borrowers. Financial assets (equity and debt) are the basic products of the financial system (Schall and Haley, 1991). The role of financial intermediation requires providing mechanism for savings and borrowing so that agents in the economy can alleviate budget constraints. This involves creating a variety of financial assets and liabilities with different characteristics that appeal to different savers and borrowers. The conventional banks provide the mechanism for savings and borrowings on the basis of rate of interest on both the assets and liabilities side. In any particular period, some people in an economy will wish to spend more on goods and services than their income earned in the period allows, and at the same time, other people will have income more than they wish to spend and will want to save the surplus for spend in the future periods. The role of the financial system is to create a wide variety of instruments and incentives for an efficient allocation of scare financial real resources between competing ends. An efficient allocation of resources requires an accurate assessment and efficient pricing of risk. The price of finance needs to include an allowance for the risk involved. The role of financial system as provider of risk management facilities is often regarded as having emerged in the 1970s and 1980s (Neave, 1998). That view stems primarily from observations of the very rapid growth of risk trading during those decades. Risk management became more popular as the financial environment became more turbulent. Market trading of such risk management instruments as derivative securities is based on the same considerations that led insurance companies to write liabilities and commodities traders to purchase futures. 2.3 Financial system organisation This describes how a typical financial system is organised. It was mentioned earlier that the principal role of the financial system is to channel funds from surplus units to deficit units. The financial system is composed of a collection of financial institutions, financial instruments, and market trading. 2.3.1 Financial institutions Some financial institutions are involved in direct lending and borrowing of funds. Example includes banks and building societies in the UK. The other category of financial institutions is the à ¢Ã¢â€š ¬Ã…“investing institutionsà ¢Ã¢â€š ¬?. These institutions channel funds to deficit units in the economy by acquiring financial securities. Investment trusts are institutions which attract money from individuals and then invest it in larger amounts in securities issued by companies or public bodies requiring funds. Although there is a split between lending and investing institutions, there are increasing overlaps between the two. Banks have traditionally been involved in taking deposits from people who wish to save and lending to those wish to borrow. But of recent, banks are also actively trading financial securities which make it difficult to distinguish between banks and investing institutions. 2.3.2 Financial Markets A financial market is considered to be a forum for the exchange of financial products, represented in some cases by a physical location. But in others by a common information system sharing data on prices, and volumes transacted, and where a number of professional take an active part in the process of the market (Fell, 2000). Financial markets exists in most capitalist markets economies for the trade of company shares and short or long-term borrowing securities. The two major components of financial markets can be termed the money and capital markets. The difference between the two lies in that in the money market, money is exchanged for other financial assets having a maturity of one year or less while the capital markets exchange, involves claims with a maturity greater than one year. Financial Institutions Deficit Units Financial Markets Surplus Units Figure 2.1: Financial System 2.4 Functions of the Financial System There are three broad functions performed by the financial system. First, it should provide a smooth and efficient transfer of funds from surplus units to deficit units. This transfer of funds can occur either directly through money and capital markets or indirectly through the Intermediation market via financial institutions. Efficient transfer and flow of funds mean it Should be accomplished at the lowest possible cost Secondly, it should maintain a reasonable degree of soundness between financial institutions and markets in case of adverse economic conditions. Soundness of the financial system here means that institutions and markets maintain an efficient-transfer and flow of funds between SUs and DUs even in cases of adverse economic events such as inflationary and recessionary periods or avoidance of inflation and a lack of confidence in the financial system. Thirdly, it should be flexible and adaptable to the continuously changing needs of the economy resulting from economic growth and to any new conditions facing the financial system either externally or internally. If all of these functions (efficiency, soundness and adaptability) have been attained, then it will have a stable financial framework to support a rate of growth consistent with the resource base and technology of the economy, (Cargill, 1986). This stable financial framework must be accompanied by a stable monetary framework which means there must exist methods to allow money and credit to grow at sufficient rates to support economic growth at non inflationary levels, 2.5 Principles of Transferring Funds in the Financial System There are two methods for transferring the funds from SUs to the DUs which constitute the basic nature of the financial system. The two methods are through direct and indirect finance. 2.5.1. Direct Finance A direct transfer of money occurs when the DU which wants to acquire money, issues a financial asset (debt or stock) and sells it to the SU which has money available. The financial asset which is issued in this process is a piece of paper to indicate the nature of the asset which meets the legal requirements for establishing the claims (debt or stock). In this method of finance the SUs and DUs deal either directly face to face or indirectly through the services of specialized brokers, dealers, or agents. Those brokers, Dealers or agents match the SUs and DUs; they do not actually own the financial assets, rather, they only charge a commission for their services. Here the consumption units must sell their factor services to the production units for which they will receive income payments as wages and salaries. At the same time the consumption units or the households will purchase the goods and services produced by the production units or the non-financial business firms and will receive the household current expenditure payment as a price for these goods and services. The consumption units usually save part of their income and they are considered SUs and at the same time the production units usually need funds for investment and are as a result DUs. Production units do not have sufficient income to cover their current expenditures and purchase of new capital equipment and building. Since the SUs have income left over after all their spending has been completed, the DUs can use that income under the condition and willingness to pay interest to the SUs for the use of their savings. Thus, the DUs will issue IOUs to the SUs for their borrowed funds which will be used for the DUs investment and they will pay back to the SUs both the principal and the interest cost. In the direct financing method the needs of the SUs and DUs must coincide before direct financial relationships can occur. Both the SUs and DUs have to be satisfied simultaneously for the transfer of funds to occur. Hence, there are several conditions necessary fore direct finance between SUs and DUs can occur, they are as follows: a) The amount of the transfer of funds from the SU must be consistent with the spending plans of the DU. b) The time horizon (the length of the time period) the SU wants to lend must equal the time horizon of the DU who wants to borrow. C) The degree of risk the SU has to carry may be high, while the DU carries no risk, the SU must be willing to assume the risk of lending to the DU. These conditions create limitations for direct finance to take place and this provides the opportunity for indirect finance to emerge. 2.5.2 Indirect Finance The indirect finance method overcomes the limitations of the direct finance method. This method separate the SUs and DUs to such an extent that neither one is aware of the others existence (Cargill, 1986). The indirect finance method involves the introduction of a financial intermediary between the SUs and DUs. The flow of funds will be advanced from the SUs to the financial intermediaries and in turn will flow to the DUs when demanded. Also, as the figure shows, exchange involves the surplus funds being transferred for an IOU drawn on the financial institution. This financial institution deals with many SUs and will accumulate a large volume of funds which in turn can lend too, many DUs spreading not through the diversification of assets. The DUs will issue in turn IOUs to the financial intermediaries where they received loans. The financial intermediary will assume the risk of the DUs and the SUs only assumes the risk of the lending certificate (IOU) issued by the financial institution. The transfer of funds, therefore, between SUs and DUs will reallocate the burden of risk. A financial intermediary acts as a middleman between those who have funds which they do not wish to exchange for goods, and those who do not have funds, but do wish to purchase goods. They provide an indirect means of transferring funds from savers to borrowers. The process of intermediation combines two basic and vital functions-First, it provides an opportunity for savers to deposit their savings, and earn a return on them, thereby mobilizing funds which otherwise may be hoarded. Second, it transfers risk from the lender to the intermediary and/or to the borrower. Individuals with available savings may be reluctant to invest themselves, or lend directly or to take equity in a borrowers project. Those individuals may not want to take the risk, they may not be able to asses the risk, and they may not know how to protect themselves legally and financially if things go wrong. An intermediary takes these risks away from individuals and in many cases transfers them to the borrower by taking security, (Kitchen, 1986). Savers must have confidence in the intermediary; otherwise they would not place funds with them. This means intermediaries cannot mobilize funds unless savers have confidence in them. In the case of indirect finance, the excess lending over borrowing of the SUs will be represented by increases in the certificates owed by financial institutions. At the same time, the excess of borrowing over lending of the DUs will be represented by an increase in outstanding certificates held by the financial institutions. Indirect financing methods have several significant advantages for the SUs, DUs and the intermediary. Advantages to the surplus unit 1. The surplus unit can purchase any kind of investment (short or long term) and any amount (small or large) of IOUs from financial institutions. 2. Financial institutions can diversify their financial assets to a greater extent than can any single SU does by itself 3. The IOU of a financial institution which pays the same interest return will involve a smaller degree of risk for the SU than IOU drawn directly on a DU, (Cargill, 1986). Advantages to the deficit unit 1. The DU can borrow large amounts from the financial institution which has a large accumulation of funds from several small SUs. 2. The search costs of the DU in finding a suitable lender will be reduced with the existence of the financial institutions when compared with direct finance. 3. The financial institutions can offer other services to the DU such as market analysis and investment opportunities, (Cargill, 1986). The financial intermediary, it receives compensation for the services it is providing to the lenders and the borrowers which are achieved through profits generated by the difference between what the financial intermediary pays its depositors and what it charges its borrowers, (Thygerson, 1993). The following section discusses and examines the role and functions of financial institutions and their importance to the economy. 2.8 Financial Institutions The financial system consists of markets trading, financial instruments and financial institutions. These two aspects of the system are very hard to separate and in many cases it is financial institutions which create the market. In this section, the role and functions of financial institutions are examined. All financial institutions serves intermediaries to facilitate the transfer of funds from the surplus unit to the deficit units, financial institutions differ among themselves primarily in the magnitude of their operations and the services they handle to the SUs and the DUs concerning the sources and uses of funds. The financial institutions (financial intermediaries) come between SUs or suppliers of funds and DUs or demanders of funds. Financial intermediaries or institutions accept savings from SUs and in return these suppliers of funds acquire claims against the intermediaries. Intermediaries make loans or investments to the DUs or demanders of funds. The suppliers of funds expect some return in the form of interest or cash dividends as a reward for entrusting saving to the financial intermediaries, (Pinches, 1987). Financial institutions are divided into two groups- depository financial institutions and Non-depository financial institutions. 2.9 Depository Financial Institutions The depository financial institutions have a unique role in the financial system. First, they deal with every type of surplus and deficit unit in the economy. Second, they have a very important role in the money supply process. The liabilities of depository institutions classified as transaction deposits represent the major part of the money supply measured as M1 (Cargill, 1986). These depository institutions have the ability to destroy and create Money because their transaction deposits are subject to a fractional reserve requirement. This means that for every unit of reserve, depository institutions can support several units of transaction deposits. Transaction deposits are created or destroyed during the lending investment activities of depository institutions, (Cargill, 1986). Any loan made by the depository financial institutions represents a creation of that amount in transaction deposit. According to the multiplier function each unit of reserve will support several units of loans and hence transaction deposits. The same outcome occurs if the bank purchases a security. The securities purchase of the bank involves a payment which will be a transaction deposit under the name of the seller, and so on. The whole operation will be repeated and more transaction deposits will be created and more money supply will be created. The reverse process of destroying transaction deposits during the lending and investment process can also take place by paying off the loan which means drawing down the transaction deposit. In this case if the bank does not make a new loan to replace the paid-off loan this means transaction deposits will be lowered. In the case of the financial investment activity, if the bank sells a security and holds on to funds then it means transaction deposits are destroyed. From the previous discussion it can be seen that the ability of depository institutions to expand or contract transaction deposits depends on the level of reserve requirements. Any changes in the monetary base will lead to multiple changes in transaction deposits and, hence, the money supply, (Cargill, 1986). When reserve requirements decrease then the depository institutions will be able to increase lending and investment activities. Transaction deposits and the money supply; and vice versa. Depository Financial Institutions are divided into two types: banks and non-bank financial institutions. The primary difference between these two typesà ¢Ã¢â€š ¬Ã¢â€ž ¢ institutions is that: the banks dominate the issuance of demand deposits and demand deposits are considered the largest single component of the money supply. For this reason any changes in demand deposits represent significant changes in the money supply. The non-bank financial institutions do not have that impact on the level of money supply and they do not have the check-clearing mechanism for payments like banks do. In general banks are considered the first to be affected by any change in monetary policy which in turn will affect the entire financial system. The non-bank financial institutions are only indirectly affected. 3.1 Islamic Financial System It must be understood from onset that Islam is a comprehensive way of life that has its own broad and flexible economic policies which allows its followers their choice of economy irrespective of time and place (Siddiqi, 1970). Islamic finance can however be described as the operating financial system which is based on the financial teachings and practices of Islam. It can also be described as a means through which money flow from one unit to another in return for either equity or rights to share in future business profits. It could also be in form of delivery of goods and services in return for the repayment of the value I a later date. DeLorenzo (2005) described it as actually part of a Muslimà ¢Ã¢â€š ¬Ã¢â€ž ¢s practice of his or her religion. To understand the theories and ideas of Islamic financial system we need to understand the rules of Sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah from which the idea of the Islamic financial system had been drawn. 3.2 What is Sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah? Sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah is an Arabic word meaning the path to be followed (Kettel, 2008). Literally it means a way to a watering place. It is believed by Muslims that the path to Aljanah has been ordained by Allah through his messenger, Prophet Muhammad (PBUH) for whoever wishes to follow the path. Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an 2:4; à ¢Ã¢â€š ¬Ã…“And who believe in that which is revealed to you (Muhammad) and that Which was revealed before you, and are certain of the hereafterà ¢Ã¢â€š ¬? The fundamental principles governing the Islamic faith are firmly based upon sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah and are in the interest of the people. The sources of the sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah law are categorized into four; The holy Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an The sunnah or the doings and practices of the Prophet Muhammad The ijma, consensus of opinion of the Ulama-learned in the society. The Qiyas, analogical reasoning or deductions. 3.3 Tenets of Islamic Finance: i) Prohibition of Interest: The central tenet of Islamic finance is the prohibition of interest. This was mentioned in four different revelations in the Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an, the first revelation emphasizes that interest deprives wealth, of Godà ¢Ã¢â€š ¬Ã¢â€ž ¢s blessing, Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an 2:275 à ¢Ã¢â€š ¬Ã…“Those who swallow usury cannot rise up except as he arises whom the devil has prostrated by (his) touchà ¢Ã¢â€š ¬?. The second revelation condemns it, Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an 2:276 à ¢Ã¢â€š ¬Ã…“Allah has destroyed usury and made almsgiving fruitful. Allah loves not the impious and guiltyà ¢Ã¢â€š ¬? The third revelation enjoins Muslims to stay clear of it Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an 2:278 à ¢Ã¢â€š ¬Ã…“O you who believe! Observe your duty to Allah, and give up what remains (due to you) from usury if you are (in truth) believersà ¢Ã¢â€š ¬? and finally a clear distinction is made between interest and trade and also enjoined Muslims to take principal and forgo debt if the debtor is unable to pa y. Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an 2: 280 à ¢Ã¢â€š ¬Ã…“And if the debtor is in straitened circumstances, then (let there be) postponement to (the time of) ease; and that you remit the debt as almsgiving would be better for you if you did but knowà ¢Ã¢â€š ¬? Although there have been discussion among Muslim scholars on the reason for the prohibition of interest, it is obvious from the above quotations that it is considerations of equity and protection of the poor that lie behind the strong condemnation. There have been arguments that a system in which interest is not allowed is unlikely to work efficiently in the short run and in the long run, this will result in the eventual dry-up of savings and investments. These views tend to reflect a basic confusion between the terms à ¢Ã¢â€š ¬Ã…“rate of interestà ¢Ã¢â€š ¬? and à ¢Ã¢â€š ¬Ã…“rate of returnà ¢Ã¢â€š ¬?. Islam clearly forbids the rate of interest but rather encourages trade and profit (Khan, 1986). ii) Profit and Loss sharing: The principle here is that the lender must share in the profit or loss arising out of the business enterprise that the money was lent. It is thought that one needs to invest its money and become partner in order to share profits and risks in a business rather than become creditors. In order to ensure investments are made into productive enterprises, Islamic financial system encourages investment in which the society at large benefits. It does not give room for people who are not willing to take risk but intend to hoard their money or deposit it in a bank and earn interest for no risk. It encourages the notion of higher risk and higher returns. The whole objective is to encourage investment and production to provide a stimulus for the economic growth. Under Mudarabah for example, the provider of fund suffers the loss in a business enterprise where as the entrepreneur suffers his loss by not receiving wages for his endeavors. Due to the nascent experience with economy-wide profit and loss sharing system in the Muslim states, it is not possible to state with confidence that such a system will function as well or better than the conventional interest-based system. iii) All financial transactions are asset backed: The idea of making money out of money is not acceptable in Islam. Money itself has no value and is only a medium of exchange, and should not be allowed to generate more money. Money only become capital when it is put into a productive venture, that is, invested in business. iv) Acceptance of only sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah compliant products: In Islamic financial system, everyone needs to work within the moral value system of Islam. All financial products and services developed needs to be approved by the international sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah board for the high end of the market. This gives it a wider market acceptance and the mitigation of sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah risk for similar products or services. v) Sanctity of contracts: Islam places all economic relations on the firm footing of contracts. The freedom to enter into contracts, designed within the framework of the sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah and the obligation to remain faithful to their stipulation has been deeply emphasized in Islam. vi) Role of the State: The stateà ¢Ã¢â€š ¬Ã¢â€ž ¢s role in the Islamic economy relates to ensuring that, firstly, everyone has equal access to natural resources and means of livelihood. Secondly, each individual has equal opportunity including education, skills and technology to use these resources. Third, that market is supervised to ensure justice in exchange, and finally, the distributive justice is assured for the next generation through the implementation of the laws of inheritance. The state is empowered within the framework of sharià ¢Ã¢â€š ¬Ã¢â€ž ¢ah to design any economic policy that is required to guarantee the attainment of these objectives and to meet the necessary expenditure associated with the performance of its duties through taxation and utilization of natural resources.