The Fear of Miscegenation in Hawthornes The Scarlet Letter - Literature Essay Samples

By the middle of the nineteenth century, the young American establishment appeared to have surmounted the instability of its formative stages. The citizens of what had originated as a disorganized and inefficient alliance of thirteen diverse territories succeeded in cultivating a nationalistic pride in the destiny of their great democracy. A new generation recognized the devastations of a distant Revolutionary War and the subsequent struggles for unity as mere specters of history. However, beneath a surface of harmony and contentment, currents of discord threatened to plunge the United States into ruin and collapse. Racial tensions had rested at the center of public focus for much of the preceding century, commanding widespread attention since the contentious issue of slavery first became a matter of federal divisiveness in 1808. Not surprisingly, the subject of ethnicity functions as a primary topic in a substantial portion of the eras literary canon. The external inevitably rendere d its impact upon human psychology, and numerous works dating to the epoch in question chronicle the interactions between Caucasian settlers and the other peoples who populated to vast U. S. landscape. In many of these narratives, the latterly mentioned individuals hail from African descent, but the prejudices Anglo Saxons harbored toward their black slaves were rivaled by the paranoia white harvested for the American Indian. In policies of forced relocation, the federal government acted on a variety of fears regarding the Native American, chief amongst which was that of miscegenation and the pollution of American culture by the primitive influence of the savage. Nathanial Hawthornes The Scarlet Letter exemplifies the extent to which this obsession of bloodline preservation shaped national ideology and ingrained itself upon the intellectual productions of the 1800s. The undertones of the narrative are evident immediately after the plot commences. A rosebush on the prison exterior fu nctions as the focal point of chapter one. Signifying the elements of passion associated with the inmate, the flower serves to illustrate by contrast the bleakness of the rigidly civilized Puritan community and the encroachment of the surrounding wilderness upon the austerity of the city. Like the dangerous yet alluring plant, the forest and its inhabitants simultaneously attract and repel the sensibilities of the devoutly Christian pilgrims. From the opening paragraphs of the story, the connection between the heroines pregnancy and the sphere of the Indian is clearly delineated. As Hester stands atop the scaffold, her show of defiance is interrupted by the recognition of her long distant spouse at the periphery of the crowd gathered to observe the spectacle. Situated beside an Indian in his native garb stood a white man, clad in a strange disarray of civilized and savage costume (Hawthorne 53). The suspicions regarding the paternity of the Prynne infant are thus projected at the ta les outset onto the man who might and should have been the girls father. The conclusion at which the community has arrived involves a transgression even more serious than that of faith. The potentiality is that Hester, obstinate in her refusal to name the partner in her crime, has ignored the ultimate boundary: that of race. Considering the gravity of the religious felonies in question, the townsfolk cannot know to what extremity the sinners depravity extends. Her infidelity may have been perpetrated with one of the heathens indigenous to the foreign New World. The mysterious physician is the outlet onto which the fantasies and horrors of the pale men find their expression. His heterogeneous garb (53) is an amalgam of the rumors, verities, and terrors that the Salemites in have constructed to satisfy their curiosities and preconceptions concerning the scandal at hand. In much the same way, Hesters movement to the dilapidated cottage is an active advancement toward the primal chaos o f the wilds. The heroine associates herself all the more closely, both in a physical and metaphorical sense, to the lifestyle of the red man. Hesters decision to relocate to the outskirts of the town is not one of independence but one of matrimony, a choice in which she weds herself to all of the dark possibilities and suggestions of the woods. To the societal scrutiny from which she is attempting to escape, such behavior is suspect indeed. The link between the fruits of the protagonists affair and the realm of the nomad extends throughout the entirety of the book. The child is imparted with an array of properties that render her the mortal approximation of the titular seal of shame. Pearl is such an appropriate product of her mothers lawlessness that she, was indeed the scarlet letter in another form; the scarlet letter endowed with life! (91) The little girl is of a red aspect, not only in the fact that she is the emblem incarnate but also in the singularity of her personality. Th e seven-year-old conducts herself with a deportment that vacillates between tantrums and docility: Above all, the warfare of Hesters spirit, at that epoch, was perpetuated in Pearl. She could recognize her wild, desperate, defiant mood, the flightiness of her temper, and even some of the very cloud-shapes of gloom and despondency that had brooded in her heart. They were now illuminated by the morning radiance of a young childs disposition, but, later in the day of earthly existence, might be prolific of storm and whirlwind. (81)This disconcerting strain of unpredictability mirrors the notions that might easily connote the image of the beastlike Indian unable to exert the necessary repressive devices that typify civilized culture. Such a sense of dis-ease is created by the ethereal sprite that, Hester could not help questioning, at such moments, whether Pearl was a human child. (82) The city from which the pariah has been ostracized agrees in totality with this doubtfulness. Pearl ha s no father, but, more importantly, is without a white father. The child lacks the legitimacy of a verifiably Caucasian heritage, and in the absence of racially untainted familial predecessors, she is incomplete. The narrator can consequently refer to her only as an imp of evil (83) and a demon offspring (88). Dimmesdales failure to publicly assume the responsibilities that he shoulders privately reiterates the significance of the effects generated by this mystery of paternity. Until the uncertainties surrounding her lineage can be resolved, Hesters daughter is as unredeemed as the pagans. When the girl declares, I have no Heavenly Father! (87), the statement is unironic. This progression of ideas is underscored by the evolution of Chillingworth. Though initially welcomed by the village, the old physician quickly loses favor with the majority of Salem. Compelled by the same intuitions that reflected the doctors bonds to the dishonored Hester in the third chapter, the members of the congregation begin to view the erstwhile parent in a decisively pejorative context:To sum up the matter, it grew to be a widely diffused opinion that the Reverend Arthur Dimmesdale, like many other personages of especial sanctity, in all ages of the Christian world, was haunted either by Satan himself, or Satans emissary, in the guise of old Roger Chillingworth (114).The stress is deliberate when the author informs his audience, Two or three individuals hinted that the man of skill, during his medical attainments by joining in the incantations of the savage priests, who were universally acknowledged to be powerful enchanters, often performing seemingly miraculous cures by their skill in the black art (113). The relationship between the diabolical and the indigenous is thus emphasized to a degree that demands acknowledgement from the participant in the fiction. The contrast between the misconstructions of the mass imagination and reality provides the central conflict of the novel, an d it is this disparity between presumption and fact that propels the climactic scene in which the Reverend takes his place upon the scaffold beside his family. Open confession and abbreviated reunion are preferable to the darkness of that veritable jungle, the home of the redskin: Is this not better, murmured he, than what we dreamed of in the forest? (231) The mystery of paternity is also solved in this scene, and the ramifications are of epic magnitude:Pearl kissed his lips. A spell was broken. The great scene of grief, in which the wild infant bore a part, had developed all her sympathies; and as her tears fell upon her fathers cheek, they were the pledge that she would grow up amid human joy and sorrow, nor forever do battle with the world, but be a woman in it. Towards her mother, too, Pearls errand as a messenger of anguish was all fulfilled (233).The truth of the implications that haunted the seven years of Pearls life has finally been illuminated, and the revelation, however scandalous, is indeed more acceptable in the view of society than any alternative that gossip and rumors might have been allowed to perpetuate. A spotless ancestry has been confirmed, and the child is restored to the purity and blamelessness to which the young are typically elevated. The lives upon which she and her mother embark remain undistinguished by event or misfortune, and eventually assume the quality of normalcy. Yet certain stigmas can never be completely forgotten, and it is for this reason that Hester returns to New England. The heroine will forever be associated with the untamed, the Indian, and finally resigns herself to these associations. Self-perception is largely determined by the influence of exterior opinion, and Hester consequently surrenders to the prejudices that will forever link her to the carnal, the bestial, and the savage.Creative expression is frequently considered a testament to the power of the environment over the individual. The manifestations of ar tistic thought unavoidably bear the telltale signatures, on one level or another, of the atmosphere in which they were conceived. The Scarlet Letter operates as an invented past onto which Hawthorne transferred the fears of miscegenation that dominated the culture of which he was a contemporary. The writers masterpieces illustrates the profound repercussions of ethnic divides in the epoch of such perversely xenophobic policies as the government-endorsed Trail of Tears and underline the subjective component inherent in psychic labor. Works Cited Hawthorne, Nathaniel. The Scarlet Letter.

Effective Ways to Reduce Stress - Free Essay Example

Sample details Pages: 6 Words: 1830 Downloads: 3 Date added: 2017/06/26 Category Psychology Essay Type Narrative essay Did you like this example? As per James E. Loehr corporate people are more of an athlete than any professional athlete because the demands of energy are greater for them as they are expected to work 10 to 12 hours a day while keeping focus, making no mistakes and same routine is expected the following day, which unsurprisingly lead to extensive stress and a manager should be aware of ways to deal with it. According to Spera Lanto (1997), a good way of dealing with the stress is replacing negative thoughts with positive ones. They say that there are four manners of combating the negative feelings: physical activities, talking about your emotions with a friend or counselor, try to solve the conflicts or misunderstandings. All of them can help to release the stress, and these techniques can not only be used to release the own managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s stress but also the employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢. For instance, organizing a physical activity where the employees can relax is a way of app roaching a stressful week or month. Another way of keeping the stress controlled is with positive mental programming (Spera Lanto, 1997). This is a powerful technique which managers can use to control the anxiety. It consists in envisioning the goal or objective achieved, preparing the leader to be calm when is the time to face the situation. For example, if the manager has a big presentation to explain for the CEO the reason for a decision that has been made, visualizing the success of telling it correctly and having the shown alternative accepted can contribute for this to happen. Practicing the assertiveness is another solution to deal with stress presented by Spera Lanto (1997). It consists in stating the opinion in a way that can positively influence the people that are being told. The concept is having the idea approved in a way that the others are willing to follow it. Using other approaches, such as aggressive, may lead to the opposite of what is desired. Hence, the best way of avoiding the stress is state your choice explaining to the employee why it has been chosen and should be followed, eliminating any kind of situation that might generate stress. Managers daily face deadlines. Therefore, being able to manage their time is crucial. Spera Lanto (1997) propose 10 principles that assist to organize the time. The first is planning ahead. Creating a schedule in order to know what is necessary to do will reduce surprises during the development of an activity. However, being able to implement it is essential. Thus, the capabilities of keeping the schedule, either due to the managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s or the employeesà ¢Ã¢â€š ¬Ã¢â€ž ¢ capability, needs to be taken in consideration. The second is schedule leisure activities. No manager is able to keep calm if the job is his or her only activity. Time to relax and have fun out of the work place is needed. Setting dates in a way that the work is able to be finished before is the third principle. Doing this, the manager will have more time to deal with any kind of obstacle that is shown during the process. Moreover, if the project is delivered before the estimated time, the boss and clients will be delighted and surprised, leading to a good impression of the managersà ¢Ã¢â€š ¬Ã¢â€ž ¢ capability. The fourth way is divide the job. If the objective is big, it is easier to accomplish it if breaking it in small goals. This will give to the manager a clearer vision of what needs to be done. In order to manage your time, ità ¢Ã¢â€š ¬Ã¢â€ž ¢s necessary to be sure that the progress is on time, being the fifth fundamental. It is more complicated to avert a stressful situation because of time if the schedule is not being followed. Consequently, checking regularly the agenda is important. The sixth rule is delegate whatever you can. This means that the manager can train employees in order to facilitate his work and have some help. Doing this, they can reduce the time of achieving the goal and reduce the probability of facing a stressful occasion that will need an immediate decision. The seventh principle is learning not to work more than it is necessary. In other words, though working overtime brings extra money, it also brings more stress. Consequently, the manager must say no to work longer than the working time. In addition, if working overtime frequently, the managerà ¢Ã¢â€š ¬Ã¢â€ž ¢s efficiency can decrease, being another reason to avoid this. The eighth rule is to make a list of priorities. In this case, the manager will be able to dedicate to what is more important, according to the time that he or she has. The penultimate fundamental is which the manager should direct his or her attention to the most difficult jobs during the time of the day that he or she is more concentrated. Making this, he or she is not going to struggle as much as he or she would if during an unproductive time of the day. The last principle is to keep the eyes on shortcuts. Sometim es, the manager can learn a new way of dealing with a problem in which it can be easier than the one that he or she knows. New techniques might bring some new results, besides decreasing the time to reach outcomes. Now, it is equally important for a manager to help employees to cope up with stress and what a manager does for himself in a stressful situation, he should expect the same for employees as well, meaning à ¢Ã¢â€š ¬Ã…“put yourself in their shoes to understand their issuesà ¢Ã¢â€š ¬Ã‚ . (Lieberman, n.d.) One of the techniques for a manager could be to help subordinates to create a place in their own mind that is an imaginary à ¢Ã¢â€š ¬Ã…“war roomà ¢Ã¢â€š ¬Ã‚  which they should visit before a project, meeting or may be a presentation. The room should be equipped with everything they feel happy about, it may be awards and honors of previous work, images of their family and friends and may be music they found most inspiring. It would reduce their stress levels a bout prospective task and will increase confidence and motivation to perform at maximum for the same task. (Loehr, 1997) At present the corporate world is challenging and competitive, what works today for us may not work tomorrow so is the brutality of corporate world, the competition is unbelievable and the global market is expanding which may be a cause of concern for every subordinate that a manager be supervising. The answer to reduce their concerns is simple and direct à ¢Ã¢â€š ¬Ã…“Train themà ¢Ã¢â€š ¬Ã‚  in order for them to perform best at work, sometimes for employees reason for stress is not knowing about a particular task, (how to perform it in a most efficient way) creates frustration. Training would bring knowledge, efficiency and effectiveness in their work and thereby reducing frustration of them. (Loehr, 1997) David Posen in à ¢Ã¢â€š ¬Ã…“fake work and spinning wheelsà ¢Ã¢â€š ¬Ã‚  chapter 9 of his book à ¢Ã¢â€š ¬Ã…“Is work killing youà ¢Ã¢â€š ¬Ã‚  explains really well the fact that manager should observe to see if the subordinates are overburdened or struggling, if the answer is yes then manager have to see if he can lighten their workload through either assigning work to someone else or deferring it. Additionally sometimes employees are allocated task that may not be of too much importance, here manager could help them to re-prioritize their assignments to save them wasting their efforts on a work which would result in to nothing. Further in last chapter of the same book David suggested some of the solutions to minimize workplace stress for employees such as providing exercise resources, a workout room to allow them to blow off their exhaustion. Moreover providing places of gathering to go on breaks, it increases motivation level and reduces stress levels. Similar experiment was conducted by Elton Mayo in his Hawthorne studies in 1920 whereby he concluded the fact that just financial incentive would not increase productivity , a small time out for a break could even help to increase productivity and reduce frustration of employees. (Boundless, 2015) Moreover above mentioned solutions were also corroborated by John Puerner, publisher at orlando sentinel, what they did is formed a team to propose changes and they got several recommendations of changes to be made, they changed cafeteria menu so that employees can have better balanced meals and nutritious food, further upgraded athlete facilities such as free weights, machines, basketball court and even created their own Olympics. Due to such initiatives the rate of absenteeism went down dramatically and employees were more productive than at any time before. (Loehr, 1997) Nobody more than a manager know about subordinatesà ¢Ã¢â€š ¬Ã¢â€ž ¢ behavior, manager can watch for signs of stress someone who is usually efficient, joyful and well organized and is behaving differently, manager can have a private chat with the person to find out about any possibl e problem and how he could be of assistance to that person. (Posen, 2013) Long working hours are one of the major reasons of stress for employees, a manager try to avoid long working hours and do not ask employees as well except in unusual circumstances, it always helps to keep motivation level up and stress level down or else employees wonà ¢Ã¢â€š ¬Ã¢â€ž ¢t be feeling that they left office ever, particularly it is helpful where employees themselves arenà ¢Ã¢â€š ¬Ã¢â€ž ¢t monitoring their own stress very well or striding themselves. (Posen, 2013) Another suggestion for a manager that could help is to avoid à ¢Ã¢â€š ¬Ã…“last minute-itisà ¢Ã¢â€š ¬Ã‚  meaning it always happens that project run behind schedule and people are chasing down to the wired deadlines, it`s usually because project was not planned well. Planning needs to be proactive and realistic to avoid stressing employees as they move towards finish line such as taking buffer time in to account before start of t he project for unexpected glitches. (Posen, 2013) In addition to this delegation of tasks effectively could reduce stress level, it may include to provide clear instructions it increases confidence, to clarify goals and objectives lack of clarity is stressful, to pick right people for the task, giving them room to work freely and base accountability of them on results and not process as they may do things differently. (Posen, 2013) Lastly one of the most effective way to reduce stress and increase confidence of an employee is to praise them and always say thank you. Employee need to know how they are doing and acknowledgement of a job well done would definitely boost their motivation. (Posen, 2013) References Boundless. (2015). The Human Side: Hawthorne. Retrieved from www.boundless.com: https://www.boundless.com/management/textbooks/boundless-management-textbook/organizational-theory-3/behavioral-perspectives-30/the-human-side-hawthorne-170-8381/ Lieberman, S. (n.d.) . Stress Management in the Workplace: Take Stress for a Ride . Retrieved from https://www.simmalieberman.com/: https://www.simmalieberman.com/articles/takestressride.html Loehr, J. E. (1997). Stress for Success. United States of America: Crown Business. Posen, D. (2013). Is Work Killing You? Ontario, Canada: House of Anansi Press Inc. Spera, S., Lanto, S. (1997). Beat Stress with Strength: A Survival Guide for Work and Life. Indianapolis, IN: Park Avenue Productions. Don’t waste time! Our writers will create an original "Effective Ways to Reduce Stress" essay for you Create order

Essay about Land Without Bread - 1391 Words

Land Without Bread by Luis Bunuel There are numerous ethnographic surrealist films that have an intriguing relationship to aesthetics and politics. A film that exemplifies this relationship is â€Å"Las Hurdes: Tierra Sin Pan† (Land Without Bread). This film is only 27-minutes and is directed by the infamous Luis Bunuel in 1933. Bunuel was a Spanish filmmaker of the 1920’s to the 1970’s. He is often attributed to being one of the major contributors to the surrealist movement of the 1920’s. â€Å"Ethnographic surrealism is a utopian construct, a statement at once about past and future possibilities for cultural analysis.†(Clifford, 119) ‘Land Without Bread’ has a clear connection between politics and aesthetics. It uses many techniques, specifically†¦show more content†¦The opening sequence of the film introduces and defines the genre (a filmed essay in human geography) and the setting (a sterile and inhospitable area in Spain). The expedition begins in Alberca with the watching of a strange and barbaric ceremony. Once the people of the town are drunk with wine, the expedition continues to an uninhibited monastery. Afterwards, we move on to the first village of Las Hurdes, where numerous young girls eat bread dipped in the water of a small stream. At the local school, starving children study geometry and educational moral lessons. Arriving in another village, the expedition meets a choir of idiots and then finds a young girl ill in the street. Land Without Bread then surveys the Hurdanos diet of potatoes, beans, pork, and honey. The scene where a goat falls off a mountain and a donkey is covered and killed by bees is staged unbeknownst to the viewer. A short-lived essay on mosquitoes and malaria leads into a portion on illness and dwarfism, caused by hunger, by lack of hygiene, and by incest.. As the camera pans across some graves marked with crosses, we hear that, despite the great misery of the Hurdanos, their moral and religious ideas a re the same as in other parts of the world. We tour a luxurious church before visiting the inside of a Hurdano home. As the family prepares for bed, an elderly woman walks the darkened streets, chanting of death. The expedition abruptly ends. It isShow MoreRelatedEssay about David Ricardo the Comarative and Absolute Advantage1173 Words   |  5 Pagesknown as the law of diminishing marginal returns. One of the most famous laws of economics, it holds that as more and more resources are combined in production with a fixed resource—for example, as more labor and machinery are used on a fixed amount of land—the additions to output will diminish. Ricardo also opposed the protectionist Corn Laws, which restricted imports of wheat. 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America´s Interest in Communist Cuba Essay - 597 Words

When it comes to politics and power, countries tend to side with whatever is at their best interest. As long as someone is scratching their backs and their pockets are filled, politicians turn a blind eye to unjust rulings. For years now, America has gone above and beyond to try to bring Cuba down and in the process Fidel Castro. The American government’s determination over the years to hinder the growth of Cuba’s economy is ever so apparent. However Mugabe has been deteriorating Zimbabwe’s resources for three decades now and the American government or any other powerful country have yet to step up and put an end to his autocracy. I can’t help but assume that the reason why no one has yet to put an end to Mugabe’s ruling is because there†¦show more content†¦Everybody knows that unfortunately America is a sore looser, and until they’ve had the last word the argument is not over. From their end, Cuba has surprised many around the worl d for striving against such barriers. â€Å" The main driver of the Cuban economy is agriculture. The country is a major producer of several crops but sugar and tobacco are the big money products. Despite not being able to export their products to the United States Cuba has become a major exporter of agricultural products. There has been an attempt on the part of the Cuban government to diversify their economy and it looks like natural resources will be one way that they can do this. The country has become a major nickel producer and this has quickly become one of their largest exports. There is also the potential for Cuba to become a major oil producer. There are large reserves of oil in the Caribbean that are in Cubas territorial water. It is very likely that in the near future they will take advantage of these reserves in order to help diversify the economy.† As a way to diversify their economy, the Cuban government has become more lenient with their strict regime. Theyâ⠂¬â„¢ve launched a tourist campaign to attract more revenue through the tourism industry. With the U.S. Embargo still in place it has been difficult, but Cuba’s efforts is showing though the growing numbers of tourist from Canada,Show MoreRelatedCold War Influence in Latin America1616 Words   |  7 PagesCold War Influence in Latin America The United States and the Soviet Union competed against each other during the Cold War in the second half of the 20th Century like a chess game, with the world as their chessboard and countries as pawns in their game. For the Russians, a critical part of the chessboard was Cuba and Latin America. 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Eisenhower and president John F. Kennedy. While President Eisenhower originally approved the plans to invade Cuba drafted by the Central Intelligence Agency (CIA) along with the U.S. National Security Council (NSC) on March 17, 1960, once in office President Kennedy allowed these plans to continue. It wasn t until April 4, 1961, that the legitimate Bay of PigsRead MoreEssay on United States Foreign Policy Following World War II1221 Words   |  5 Pagesforeign affairs. A counselor in the United States Embassy in Moscow, George Kennan, introduced the policy of containment which said that America needed to stop the spread of communism and that it would eventually die out so long as it did not broaden. Not only were the American people scared of the spread of communism, but the United States government believed that communist nations would spread like falling dominoes if even one country in a region beg an enacting socialist policies. 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Analysis of four types of conflict in John Steinbecks...

In John Steinbecks The Grapes of Wrath, the journey of the Joad family is riddled with conflict. The family experiences all of the four major types of conflicts: man vs. himself, man vs. society, man vs. nature, and man vs. man. In the case of The Grapes of Wrath, man represents the Joad family as a single unit. They experience conflict within the family itself, with the society they are coming from as well as the one they are going to, and with nature and the elements. The man vs. man conflict is usually just a more specific example of one of the other areas of conflict. The most prevalent conflict in the novel is man vs. society. The first example is the Joads being forced off their land in Oklahoma. The corporations are becoming†¦show more content†¦The next big loss the family suffers is Noah leaving while the family is staying at the river. Ma, I got somepin to tell ya. Noah-he went on down the river. He aint a-goin on (294). This solidifies the solid decline of the family state of the Joads. Familys fallin apart (294). The final place the man vs. himself conflict arises is in the case of the blacklist. Toms natural instinct is to become a leader, and lead the people to revolt against the way the society is working in the west. When the man Tom meets at the camp tells him that if he does that, he will be blacklisted, in which case he wont be able to get work anywhere, and his family could quite possibly starve. Well, you jus open your trap about us folks getting together, an youll see. They take your pitcher an send it all over. Then you cant get work nowhere. An if you got kids-- (336). This represents a man vs. himself conflict because Tom has to resist his instincts to start a revolt, and just lay low. The man vs. man conflict is usually a representations of a different conflict. In The Grapes of Wrath, the people the Joad family has conflicts with are usually some sort of personifications of another area of conflict, for example, society. When the Joads are staying at the hooverville, and Tom and Jim Casy attack the police officer, they arent attacking him because they have a disagreement with the man himself as much as because that police officer

Oil and Gas Exploration and Production

Question: Discuss the issues concerning the process of negotiation and mission and Vision of the Government in relation to Negotiation? Answer: Introduction Nations that are rich in natural resources tend to use these resources to obtain funds. The governments of these resource-rich nations enter into oil and natural gas contracts with the international oil companies. The international oil companies is thereby enabled to develop and explore these resources. These negotiations are very challenging in the present times. The negotiation process is a very challenging aspect as a lot is at stake, and a lot of research, knowledge and technical knowhow is required to get a good bargain at these negotiation processes. The oil-rich nations regard the oil and gas resources to be the assets of the nation as a whole and not the property of individual members of the society, irrespective of the rights over the surface land. Oil-rich nations are eager to involve the participation of the international oil companies for the exploration of their natural resources. These oil companies are well equipped for exploiting and marketing the said resources. The governments faces many problems while negotiating the terms of the contract. This is owing to the fact that oil companies have high knowledge regarding the exploration processes and also they are highly experienced in negotiating these contracts. The oil companies generally get a good bargain on these contracts. The oil companies approach these contracts in a cynical, aggressive nad inflexible manner (3 oil gas contracts for Aker Kvaerner, 2007). In this paper, we will evaluate the various aspects of oil and gas negotiations between the governments and the international oil companies and would emphasize the significant areas of these contracts which the governments should keep in mind while negotiating the oil and natural gas contracts (Ario et al., 2013). Issues concerning the process of negotiation The oil contracts emerge out of the direct negotiation between the parties, and various complex issues are involved in these types of contracts. The various factors that the governments must keep in mind while undergoing a process of negotiation for oil and natural gas contracts may be summarized as follows; Time Factor Time plays a very important role in the negotiation process of the oil and gas contracts. These contracts are to a great extent dependent on time responsive factors, like, the economic and political situation which is prevalent in the host country and the possibility of variation of such factors in future; the present market price of oil as oil prices vary considerably. Keeping these factors in mind the oil contracts are supposed to be drafted. The terms of the contract must be such that they end up surviving the challenge of time (Babusiaux, 2004). Such survival is only possible if the terms of the contract are responsive to the foreseeable as well as unforeseeable changes and demands. The only solution to the problem of dealing with the ever changing circumstances is to make the contracts responsive to such changes and not static. The drafting of the terms of the contracts must be such that in case, the rules and regulations governing exploration or the laws of the host country change, the government should compensate the oil companies (Bantekas, 2009). Interests of the Indigenous Communities The oil contracts are entered into between the oil companies and the governments, but there are many stake holders of these contracts. For instance, the indigenous communities, the surface land owners. These groups of individuals are not part of the formal negotiation process, but their interests have to taken into consideration while entering into these contracts. The government has to make sure that the demands of the indigenous communities are met through the process of negotiation. Mostly the indigenous communities demand jobs and compensation. Since, many-a-times the oil companies make commitments but do not meet the commitments, the governments should take steps to ensure that such commitments are met (Bath, 2012). Transparency The negotiators must conduct the negotiation process in a transparent manner. In fact, transparency of the negotiation process is one of the aspects which ensures that the contracts are acceptable to the public. By transparency, we mean that the terms of the contract and the consideration involved must be disclosed to the public at large. Transparency is a mode by which corruption may be controlled. If the government officials are aware that the terms of the contract are susceptible to being criticized by the public, they will deter from incorporating such terms in the contract (Bindemann, 2000). Conflict of Interest Conflict of interest is a common feature of these contracts. On the one hand, the government is acting as a business entity with the motive of profit maximization out of the negotiations on the other hand the government has to act as a protector of the interests of the public and attempt to magnetize the participation of the oil companies (Bret-Rouzaut and Favennec, 2011). So the government has to play dual roles of acting as a successful business negotiator, and also it must keep in mind public good. Negotiators The team that would negotiate the contracts on behalf of the government must be chosen very carefully. The process of negotiation is an art. A good negotiator is capable enough to segregate the negotiable factors, such as compensation from the non negotiable ones like giving importance to the concerns of the oil companies. The oil companies has an upper hand in these negotiation processes because of their experience, technical knowhow, and financial stability. Since the governments of the host countries generally lack these resources they must hire skilled negotiators having expertise in all the aspects that are involved in an oil contract. The negotiators ought to keep in mind that the purpose of the negotiation is to reach a mutually agreeable point that serves the inertest of both parties concerned. Better bargain in a negotiation process would not be possible without expert advice (Contracts. Future Prices and Their Duration Left to Negotiation, 1923). Contractual Framework The form of contract which would be adopted to give effect to the negotiations is one of the critical decisions that the parties have to take. The government and the oil companies may decide to enter into any of the following types of contracts; Licensing or Concession Agreements These agreements are in vogue since the beginning of the 1900s. Under this type of agreement, the oil companies acquires exclusive rights for exploring, developing and selling the oil or the minerals for a specific period. These are single ended contracts. This is one of the commonly used modes of contracting by the oil companies and the governments of the oil-rich nations. The host companies receives lump sum bonus from the oil companies as consideration of granting the exclusive rights (Crump, 2011). These contracts are very advantageous for the governments of developing countries. This is a straight forward mode of contracting between the parties. In fact, the extent of advice and support required for entering into this type of contract is far less. But this type of contract is not free from disadvantage. The commercial aspect of the negotiation process is a disadvantage to the developing countries when entering into this type of contract. Joint Venture Agreement A joint venture agreement is entered into between parties when the parties are consensual about entering into a joint venture with respect to oil exploration. While entering into a joint venture, the parties concerned must possess adequate knowledge about the interest, business modes and goals of each other (Ghandi and Lin, 2014). If the parties are not consensual on these aspects, the joint venture would not be a success. Owing to the open-ended nature of the joint venture agreements neither the governments nor the oil companies are very keen to enter into this type of agreements. The only advantage that the government can get by entering into joint venture is that it would be able to count on the expertise of the companies and would not have to make decisions on its own. The government is in a position to share profits with the oil companies under this type of agreement. There is also a risk associated with the process of profit sharing. The government will have to share the associated risks and costs along with the oil company. This type of contract engages the direct participation of the government of the host country. Production-Sharing Agreements (referred to as the PSA') The peculiar aspect of this type of agreement is that the citizens of the host country are in fact the owners of the oil and minerals and not private entities. The responsibility of operating and managing the oil resources lies with the oil companies. The PSA is similar to a licensing agreement in many aspects. In both these agreements, the government of the host country receives a signing bonus. The expenses of operation are to reimbursed by the government to the oil companies. Current expenditure must be reimbursed immediately, and reimbursement of capital expenditure may be done over years. The oil companies under this agreement have to pay taxes applicable under the laws of the host country but in most cases the government tends to waive the taxes and the amount is included in the profits of the government. If the existing legal system in the host country is not accurate, a PSA would not be successful (Jennings, 2002). This type of agreement is very advantageous for the governments as all associated risks with oil exploration are vested on the oil companies. The only expenditure of the host government is the cost that it has to incur for proper negotiation. Even in case of failure of the exploration project, the government would not have to incur the losses. The governments of the host countries have an opportunity of earning profits with this type of contract without making the investment (Sas, 1989). The fact that A PSA is an inclusive document is a disadvantage if this type of contract for the government. Service Agreements In addition to the above-stated types of contracts, the parties may as well enter into service agreements. In essence, this type of agreement allows disbursement. This agreement does not prove to be a useful one in the long run (Mabadi, n.d.). Terms of Contracts There are certain provisions that may form a part of all the types of contracts and agreements described in the above section. These include the following; Parties When the government enters into the contract, the direct party to the contract must be chosen very carefully keeping in mind that if the government, itself, becomes a party to the contract then it would be directly responsible and the liability of the government would be unlimited. But on the other hand if one of the enterprises of the government is a party then this liability would be limited (Martin, 2009). Stabilization Stabilization clauses are not of much benefit to the governments as it has the effect of making the laws of the host country inapplicable and as a consequence the oil companies may demand compensation from the government (Mosburg, 1983). Work Plan The government of the host countries must insist on such a work plan that clearly provides the circumstances under which an exploration project may be shelved or delayed. This is essential because the oil companies have a tendency of setting aside or delaying projects that are not very profitable. Termination The provisions regarding termination must be clearly laid down in the contract. All instances under which a contract may be terminated must be exhaustively laid down (nawawi and rahayu, n.d.). Mission and Vision of the Government in relation to Negotiation The prime reason owing to which the governments of the host countries are keen to enter into these oil and natural gas contracts is securing funds for the development of the country. The governments earn huge profits out of these contracts which it an utilize for developing the infrastructure of the country. The oil companies try to maximize their profits out of the negotiation process but the government must keep in mind the development of the country. If the government fails to secure its interests in the negotiation process then the oil companies would take up the maximum share of the profits and the country would not be able to gain anything out of the contract (Oil and gas exploration and production: reserves, costs, contracts, 2005). Thus, the government must put forward certain terms before the companies. These terms should encompass the following; Corporate Social Responsibility (also referred to as CSR) During the process of negotiation, the government may compel the international oil companies to abide by its CSR while carrying on the exploration project in the host country. The government may require that al the rules applicable to the domestic companies with regard to CSR would be applicable to the oil company as well during the tenure of the project (OIL AND GAS: New Contracts, 2008). If the government does not emphasize this point, there is every possibility that the company would evade the obligation of CSR and the coutry would lose an opportunity of development. Job Oil projects involve a lot of capital and man power. The government may require the oil company to provide jobs to the people of the indigenous communities. If the unemployment prevailing in the host country can be taken care of, the country would be able to strengthen its financial standing. These clauses are profitable for the companies as well because they get local labor and do not have to get labor from outside. Sustainable Development Sustainable development is a very important concept in the present times. Ecological balance can be maintained by way of adopting sustainable development techniques. The government may require the oil company to maintain the sustainability of the environment (Soyer and Tettenborn, n.d.). Oil and natural gases deplete with continued usage. Thus, the companies should take care that such quantity is extracted which is capable of being restored. Thus, the permitted quantity for extraction must be specified by the government to the oil companies so that they do not extract above the specified level. Development of the Country The government may also require the oil companies to make endeavor for the overall development of the country (Thornton, 1992). These may include, setting up hospitals and schools, developing the roadways, providing funds for development of sectors like, health care and education, etc. Conclusion From the above discussion, we may conclude that there are several aspects which the government must take care of while negotiating the terms of a contract of oil and natural gas with the international oil companies. The oil companies are profit oriented and thus it is the responsibility of the government to make sure that such terms are entered in the contract which in the long run would be beneficial to the country as a whole. Since a lot is at stake the governments should make sure that the negotiation is done in a proper manner so as to be able to get a better bargain. The good negotiation would enable the government to maintain the economic, social and environmental well being of the country. References 3 oil gas contracts for Aker Kvaerner. (2007). Pump Industry Analyst, 2007(8), p.3. Ario, A., Reuer, J., Mayer, K. and Jan, J. (2013). Contracts, Negotiation, and Learning: An Examination of Termination Provisions. Journal of Management Studies, 51(3), pp.379-405. Babusiaux, D. (2004). Oil and gas exploration and production. Paris: Editions Technip. Bantekas, I. (2009). Oil and Gas Production Contracts. The Journal of World Energy Law Business, 2(3), pp.263-264. Bath, D. (2012). India Legal aspects of oil and gas projects for foreign investors. ac, 1999(21). Bindemann, K. (2000). The response of oil contracts to extreme price movements. Oxford: Dept. of Economics [Oxford University]. Bret-Rouzaut, N. and Favennec, J. (2011). Oil and gas exploration and production. Paris, France: Editions Technip. Contracts. Future Prices and Their Duration Left to Negotiation. (1923). Columbia Law Review, 23(8), p.783. Crump, L. (2011). Negotiation Process and Negotiation Context. International Negotiation, 16(2), pp.197-227. Ghandi, A. and Lin, C. (2014). Oil and gas service contracts around the world: A review. Energy Strategy Reviews, 3, pp.63-71. Jennings, A. (2002). Oil and gas exploration contracts. London: Sweet Maxwell. Mabadi, A. (n.d.). Transfer of Technology in Oil and Gas Contracts. SSRN Electronic Journal. Martin, T. (2009). Oil and Gas Exploration Contracts. The Journal of World Energy Law Business, 2(2), pp.173-174. Mosburg, L. (1983). Contracts used in oil and gas operations. Oklahoma City, Okla.: Institute for Energy Development. nawawi, a. and rahayu, s. (n.d.). Sharing Revenue of Oil and Gas Industry between Center and Local Government from Legal Perspective. SSRN Electronic Journal. Oil and gas exploration and production: reserves, costs, contracts. (2005). Choice Reviews Online, 42(07), pp.42-4042-42-4042. OIL AND GAS: New Contracts. (2008). Africa Research Bulletin: Economic, Financial and Technical Series, 45(3), pp.17792B-17792C. Sas, B. (1989). Legal Aspects of Risk Management and Forward Oil Trading: The Forward Oil Markets and their Contracts. Journal of Energy Natural Resources Law, 7(1), pp.1-33. Soyer, B. and Tettenborn, A. (n.d.). Offshore contracts and liabilities. Thornton, W. (1912). The law relating to oil and gas. Cincinnati: W.H. Anderson.

International Economics The World Bank Economic Review

Questions: The Standard Trade Model extends the theories of Absolute and Comparative Advantage to incorporate the importance of increasing Opportunity Costs in international trade. The Heckscher-Ohlin Theory extends these models further by seeking to explain the underlying determinants of Comparative Advantage. (1) Explain briefly the main features of each of the concepts or theories highlighted in bold and italics above and how they are related to each other. (2) Evaluate whether these theories are sufficient to adequately account for why countries engage in international trade and the benefits that such trade can yield for them. (3) With reference to your own home nation, or any other nation known well to you, examine the extent to which that nation actively engages in international trade or practices restrictions upon such trade. Answers: Introduction International economics uses the same fundamental methods of analysis like other domains of economics. This is because; the motives and the behaviour of the participants are same in the international trade as they are in domestic exchange. This paper will briefly explain some concepts of international economics, like, standard trade model; absolute advantage; comparative advantage and Heckscher-Ohlin Theory. It will also evaluate whether these theories are sufficient to understand why countries are engaged in international trade. Moreover, one nation will be selected to examine its engagement in international trade and its restrictions upon such practices. Theories of Trade Absolute Advantage and Comparative Advantage Absolute advantage and comparative advantage are two fundamental ideas in international trade. Here, the discussion will be made based on two countries and two commodities. Absolute advantage implies the capability of the country to produce a certain good more efficiently than other country. The capability is measured by comparing the resource engagement to produce that good. This means that, the country is said to have absolute advantage in producing a product, when it can produce the particular good with less of a given resource than its competitor nation. In other words, the cost of production of one country is less than the other one. Therefore, the absolute advantage compares the productivity of different countries. According to this theory, the country will produce that commodity, which they can produce by engaging less resource (Krugman, Obsfeld and Melitz 2015). However, the limitation of this concept is that, it might happen that a country is resourceful and has absolute adv antage in all commodities. However, one country will not produce all the goods if it has option for trade. Therefore, it has to decide which good it should produce and import to another country. Hence, the concept of opportunity cost arises. Opportunity cost is the cost that arises due to shifting its resources from one good to another. Suppose the country can allocate its resources in goods, clothes and food. To produce one extra unit of clothes the country has to sacrifice some units of food. The forgone amount of food is the opportunity cost of the one unit of extra clothes. The country has a comparative advantage in producing a good if the opportunity cost of producing that good is lesser than the other country. According to this theory, the country will produce and trade that commodity whose opportunity cost is less, i.e. in which it has comparative advantage. The difference between opportunity costs provides the chances of a mutually beneficial rearrangement of the world production (Feenstra 2015). This solves the problem of absolute advantage, because even if the country has absolute advantage in all goods, the different countries have different comparative advantages. When the countries produce the good in which they have comparative advantage, both of them benefit from trading. This is because each of them will get the commodity at a price that is lower than its own opportunity cost of producing that particular good. This drives the country to specialize in that good, which has the lowest opportunity cost. Standard Trade Model The Standard Trade Model extends the absolute advantage and comparative advantage theory by incorporating the importance of opportunity cost. In presence of Autarkic situation, the equilibrium occurs when the community indifference curve is tangible to the Production Possibility Frontier. The slope of the tangent gives the equilibrium relative price. This slope also indicates opportunity cost of producing one good in terms of forgone amount of another good (Gandolfo 2014). The standard model of trade is driven by the differences in the opportunity cost. The following diagram (Figure 1) represents the autarkic situation in two countries. The nation 2 has less opportunity cost in producing cloth, reflected by the flatter slope (Green Line). Hence, it will specialize in Cloth. Similarly, the nation 1 will specialize in Food production. The Figure 1 represents an autarkic situation. Figure 1: Autarkic Situation Now the trade has taken place between these two countries. The movement of production due trade will change the point of production along the PPF curve. At the new point of production, the countries will be able to trade and produce more of the commodity in which it has less opportunity cost. The community indifference curves of the both countries will shift to the higher position. The following Figure 2 represents the trade of the two nations. At point , the export and import of both nations matches with each other. Heckscher-Ohlin Model Figure 2: International Trade The resource of the country influences the trading pattern. The Heckscher-Ohlin model uses the concept of comparative advantage. It shows that the resources influence the comparative advantage. The abundant factors of production and the intensity of the factors used, determines in which the country has comparative advantage. This model assumes that, there are two countries and two commodities; the two factors of production are capital and labour (Van Marrewijk, Ottens and Schueller 2012). Suppose the two goods are A and B respectively. The cost of production depends on the factor price. If the wage, the cost of labour, rises then price of the good whose production uses labour will also rise. However, how much the factor price influences the commodity price depends on how much of that factor is involved to produce that good. The For example, if the production of commodity A uses few labours then a rise in wage will not have much effect on the price of the commodity. In contrast, if the production of commodity B requires more number of labours, then a rise in the price of factor will lead to significant rise in the price of the good B. Hence, there is one-to-one correspondence between wage-rental ratio and the ratio of price of good A to that of B (Krugman et al. 2015). The major components of Heckscher- Ohlin Model are: Rybczynski Theorem; Factor Price Equalization Theorem; Stolper- Samuelson Theorem (Guillo and Perez-Sebastian 2015). Sufficiency of the Trade Theories How both countries are benefitted from trade can be explained by utilizing the concepts of theories of trade discussed above. The countries are different from each other in terms of factor abundances. When the trade is taking place between two countries the relative price tends to converge. The country produces and trades the goods in which it has comparative advantage. By this way, the country can send one commodity to foreign country and receives another commodity, at lower price than it would have charged given the goods were produced in the home country. However, it is important to verify whether the both countries are gaining from trade. When the relative price of a commodity is greater than the opportunity cost of producing that good, then the country specializes in that commodity and exports it to foreign market . The country can produce a particular good more efficiently and indirectly produce the other good in the foreign market. Similarly, the foreign country indirectly pro duces the good in which it is inefficient. Hence both are gaining from trade. Moreover, the benefits of both countries can be verified by countrys new possibility of consumption. This is represented in the following Figure 3. Figure 3: Gains from Trade (comparative advantage) Moreover, the countries are involved in trade due to resource scarcity. Since, the country produces commodity that requires resources in which the country is rich in, it can still avail the good that uses the scarce resources, without involving those resources. Therefore, each countrys consumption possibilities are expanded through trade. The economy as a whole consumes more of both good. This can be illustrated through the following diagram, Figure 4. In this diagram, two countries relative price and PPFs have been represented. It can be seen that due to nations participation in trade, both countries have shifted to higher indifference curve. This indicates that the two countries are consuming more of both commodities than the autarkic situation (Rosnick 2013). Figure 4: Gains from Trade (H-O Model) United Kingdoms Participation in International Trade Restriction With the growing development in the poor countries and due to the effect of globalization, the developed countries like United Kingdom have lost market share in exporting goods. However, the country has maintained its exports of service sector. United Kingdom is the sixth largest trader in the world and third largest exporters of service. The exports and imports of goods and services totaled 1256 billion USD. The share of UKs service export peaked in 2004; however, it fell down in 2007 and continued till 2010 (Gov.uk, 2012). On the other hand, the goods exports of UK declined in 2010. This country accounts for 22.8 % financial services export but only exports 2.6% of construction service export . The pharmaceutical export is significantly large. UK constitutes 3.3% of Singapores export (Gov.uk 2012). The growth in trade performance of this country within 2002 to 2008 was faster than the trade growth in the 1990s. However, the growth of international trade was halted during the global crisis. During this time the exchange rate depreciated by 25%. This made the export of this country more competitive and made import much costlier (De Propris 2013). Though it has helped the country expand its volume of export but could not reduce the demand for import. As a result of this the net trade balance is negative for this country. Moreover, the trade balance of this nation is still negative due to large gap in export and import (Inman 2016). United Kingdom has comparative advantage in Creative Industry; Tidal industry and Robotics and Autonomous Systems. This country has become efficient in generating knowledge and information. They are more developing their culture through their creativity. A creative economy comprises of art, crafts, fashion; Design; film etc. Human capital is the ultimate source of this industry (Ganotakis 2012). It is also global leader in marine energy. The research and development of advanced machineries might lead this country to become a leader in robotics industry. UK is a part of the harmonized trade system of European Union and it follows export and import regulations of EC Commission. The services can be imported and exported freely in UK. However, there is some exceptions, such that, restrictions on technology with significant military application. In this case, an export license is required. Objects like cultural interest, such as, artwork, old manuscript etc. also requires license from Arts Council (Gov.uk, 2012). Since, the creative industry is contributing significantly in the nations GDP, the UK government aims to protect this industry and hence, has imposed import restrictions. In order to protect the originality of this industry, the country is strengthening the intellectual property rights (Flew 2014). A custom duty relief is given when this country re-import EU goods that has been previously exported to EU for processing. The profits made by UK enterprises through exports are taxed like any other profits made in domestic market (ni businessinfo.co.uk, 2016). If a person is going abroad for export his services, then also the UK National Insurance Contribution needs to be paid by that person (Borchert, Gootiiz and Mattoo 2013). Various business culture; legal environments and languages create confusion when engaging in international trade. Therefore, the country tries to formulate rules and restrictions in such a way that cannot create any further confusion and considers the interest of both parties. UK is a member nation of WTO, hence it enjoys benefits from it. In short it can be said that United Kingdom practices free trade internationally. The authority has made few restrictions on import. However, it has some restrictions on exports. However, the restrictions are imposed for the purpose of well-being of the people as a whole. The depreciated sterling has made the exports more attractive to the international market. Moreover, the export of Creative industry is growing and contributing significant benefits to the net trade balance. The export in services is growing unlike the export of goods by UK. Conclusion From the above discussion, it can be said that countries engaged in international trade gains from trade. The paper has theorized some important concepts of international trade. It has discussed whether countries are benefitted from trade and the theories are sufficient to explain these benefits. At the end, the paper has taken United Kingdom to analyze the performance of the international trade and regulation practice in the country. It has identified some industries that has comparative advantages, and the country is specializing in it to gain more benefits from trade. References Borchert, I., Gootiiz, B. and Mattoo, A., 2013. Policy barriers to international trade in services: evidence from a new database.The World Bank Economic Review, p.lht017. De Propris, L., 2013. How are creative industries weathering the crisis?.Cambridge journal of regions, economy and society, p.rss025. Feenstra, R.C., 2015.Advanced international trade: theory and evidence. Princeton university press. Flew, T., 2014. Creative industries: a new pathway.InterMEDIA,42(1), pp.11-13. Gandolfo, G., 2014. Introduction to International Trade Theory and Policy. InInternational Trade Theory and Policy(pp. 3-7). Springer Berlin Heidelberg. Ganotakis, P., 2012. Founders human capital and the performance of UK new technology based firms.Small Business Economics,39(2), pp.495-515. Gov.uk. (2012).Creative and cultural: international trade regulations - Detailed guidance - GOV.UK. [online] Available at: https://www.gov.uk/guidance/creative-industries-complying-with-import-and-export-regulations [Accessed 1 Apr. 2016]. Gov.uk. (2012).Import and export of manufactured goods - GOV.UK. [online] Available at: https://www.gov.uk/government/collections/import-and-export-of-manufactured-goods [Accessed 1 Apr. 2016]. Gov.uk. (2012).Import and export of manufactured goods - GOV.UK. 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