Foreign Direct Investment and Balance of Payments

Foreign Direct Investment is defined as an investment of a resident in a foreign company. The resident should however have a lasting and considerable interest in the management of the foreign company. In most cases, an investor should have more than 10% of the stock value or voting shares.Advertising We will write a custom research paper sample on Foreign Direct Investment and Balance of Payments specifically for you for only $16.05 $11/page Learn More Flows relating to Foreign Direct Investment are chiefly divided into three forms that is, equity capital, intra-companies loan and reinvested earnings. Investors normally invest in the assets of foreign countries hoping that they will benefit from high interest rates, low inflation rates, as well as favorable political environment (Cutler, Zacher, 1992). A transnational Company has a parent company based in home country and one or more foreign affiliates based in foreign countries, commonly referred by sc holars as host countries. Foreign affiliates are further divided into three categories based on the level of interest held by investors. A subsidiary is a direct investment enterprise based in a foreign country in which an investor claims either 50% or more of the direct investment enterprise’s equity. Therefore, a non-resident owning 50% or more of a direct investment enterprise voting shares will most likely have considerable influence on direct investment enterprise management. An associate is a direct investment enterprise based in a host country in which an individual or institutional investor owns at least 10% but not more than 50% of the voting powers of the direct investment enterprise. Voting powers is normally derived from equity shares one holds in a given incorporated enterprise, although at times partnerships and sole proprietorships may have equivalent voting powers. On the other hand, a branch is an unincorporated direct investment enterprise in which an invest or has full control over its operations. A branch, which is located in a host country, operates entirely using the name of its investor. It is put up for one or more years with the intention of producing certain goods or services. A branch is also subjected to income tax and tax exemptions. Strategies used in Entering a Foreign Country Direct foreign investments find their way in the host country economy via diverse strategies such as joint ventures, merger, acquisition, expansion investment, as well as Greenfield investment. A joint venture refers to a situation where two or more parties make a contractual agreement in which they agree to share losses and profits of a business.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They also agree to share capital formation and all costs associated with operating expenses. Joint ventures are normally formed for purposes of accomplishing certain objectives upon which the contract is terminated. In most cases, no new legal entity is created for purposes of undertaking joint activities. Mergers are created by two companies, which agree to operate as a single entity as opposed to operating separately. Acquisition is a transaction that frequently takes place at the market where one firm acquires part or entire assets and liabilities of another firm. The acquired firm becomes either a subsidiary or part of the acquiring firm. For instance, Puma, which is based in France, acquired 25% of Reebok interests. The transaction made Reebok, which is based in Spain, part of Puma’s assets. Another significant strategy for investing in a host country is through investment expansion. Investment expansion means investing assets in a foreign country. A resident might find some convincing reasons such as attractive market or cheap inputs to invest in a foreign economy. Foreign Direct Investments and Market Trends Recent research es indicate that transnational companies significantly participate in economic activities at local and international levels. In particular, they have significantly contributed to international trade, as well as improvement of technology. For several decades, Foreign Direct Investments continue to act as a source of finance for a number of third world countries. From the past trend, it is estimated that the world economy will continue to grow because of increasing level of Direct Foreign Investment, as well as transnational companies. Currently, there are over 60,000 transnational companies worldwide with over 800,000 foreign affiliates distributed across the world. The transnational companies are estimated to account for about two thirds of the global exports in which a third is attributed to intra-firm trading. The third world countries heavily rely on Foreign Direct Investments as their main source of external finance. Categorization of FDI by Purpose FDIs are better categorized t hrough analyzing the motivating factor to invest in a foreign country. Investors spend their capital in a foreign country depending on a number of reasons including adequacy of raw materials, availability of technology, markets among others (Britton, 1996).Advertising We will write a custom research paper sample on Foreign Direct Investment and Balance of Payments specifically for you for only $16.05 $11/page Learn More Natural resources A number of investors are attracted to foreign countries due to the existence of valuable natural resources. The common natural resources that investors tend to search for in foreign countries include oil, gas, minerals, forests and fish. However, other agricultural products attract various investors, both individual and institutional investors. Foreign economies tend to have favorable weather and environments, with many natural resources. Market A range of foreign investors target markets that are appealing to their pr oducts. Due to globalization, it has become easy for various firms to identify attracting markets for their products. Presently, emerging markets such as Asia has attracted a good number of foreign investors since the market is adequate for various products. The European market is as well luring several reputable investors. Efficiency in production Growing levels of technology in the contemporary world is encouraging many companies to produce goods since relevant technology for its production processes is available. Companies are dividing their production in accordance to comparative advantages existing in different regions. Technology enables a company to produce goods at relatively low operational costs. Such companies consider exporting their products at a comparatively cheap price in relation to their rivals. Strategic assets such as brand names Strategic assets that mostly attract individual and institutional investors include unique technology available at the market, specific brand name, specialized competencies, among other assets. To access such assets, companies will always form mergers with reputable foreign companies. Alternatively, they utilize other techniques such as thorough acquisition of small firms to penetrate foreign markets.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Benefits associated with inward FDI FDI provides an economy with a source of external financing. As a nonprofessional may put it, when there is high numbers of Foreign Direct Investments, it is possible that an economy would benefit from high sources of external financing. Host countries also benefit from transfer of both hard and soft technology. Soft technology is related to managerial skills and other organizational skills while hard technology refers to expertise associated with production processes. Host countries stand a good chance of benefiting from increased level of employment for its citizens, thus reducing the rates of unemployment (Vladimir, 2008). Foreign companies help in promoting skills of the local residents through training. Apart from introducing new products, foreign investors also improve the quality of domestic goods and services. With the presence of foreign companies, the level of competition is likely to stiffen, which would encourage high levels of efficie ncy. Domestic firms stand a chance of benefiting either directly or indirectly from foreign companies. For instance, they might use technologies used by foreign companies in manufacturing their products. Other foreign investors might provide direct financial assistance to local entities through partnerships and contracting. With regard to foreign markets, direct investment enterprises enable a country to access international markets given that foreign enterprises manufacture brands that are exported to other nations. Disadvantages of inward FDI A hosting country is subjected to the risk of facing troubles associated with Balance of Payments. For instance, foreign direct enterprises normally import high levels of foreign inputs for their various projects, which pose threats associated with imbalanced accounts. There also chances of crowding out local entities in which domestic entities would appear to face unfair market competition. Unfair competition is caused by efficiency and bett er performance depicted by foreign direct enterprises as opposed to local companies. A host country is also exposed to problems associated with the use of foreign inputs greatly. Host economies at times face environmental degradation and employment devastation, especially when mergers and acquisitions take place (Holloway, 2006). Although a country expects to benefit from transfer of both soft and hard technology, it becomes contradicting that transfer of technology is limited in most cases. FID mostly uses incentives to acquire market shares, which poses a threat to local companies since they fail to compete equally with the foreign companies. In addition, foreign enterprises embrace practices that hinder fair competition at local and foreign markets. FDI have contributed meager taxes locally as result of their transfer pricing. Balance of Payments Balance of Payments generally records all types of fiscal transactions between a given country and its trading partners within a specif ied period. It includes payment of imports and receipts of exports. A state recurrently exports and imports merchandise, services, fiscal assets and monetary transfers. Balance of Payments accounts are prepared in domestic currency. Sources of funds for any country such as receipts of loans including investments, as well as exports are recorded as surplus. On the other hand, use of funds such as investment in foreign countries and payment of imports are recorded as deficits. For a nation to maintain a Balance of Payment, summation of deficits and surplus should be zero. An imbalance however, occurs with capital and current account but hardly happens with reserves account. In a fixed exchange rate regime, the government would buy foreign reserves in an economy or provide foreign reserves to foreign exchange markets to maintain favorable exchange rates. Current account indicates factor income, cash transfers and balance of trade. The balance of trade relates to the difference between exports and imports whereas factor income shows the difference between income earned from foreign investments and payments made to foreign investors. Capital account is concerned about recording adjustments as regards to ownership of foreign assets. Capital account covers reserve account, investments and loans between a given nation and other trading partners. With capital account, interest payments and earnings on both loans and investments are excluded. In many cases, reserves account is always recorded below capital account and therefore, it might be perceived as not forming part of the capital account. It is always expected that combination of current account and capital account will result to a balanced Balance of Payments, thus avoiding surpluses and deficits. Current account + capital account = balancing Item Effect of Foreign Direct Investments on Economy from a Balance of Payments Perspective Foreign Direct Investments and Loan It is a common event that Parent Company at ti mes loans a subsidiary or a subsidiary loans a parent company. This is sometimes called inter-company loaning. If a subsidiary receives a loan from Mother Company, the host country will treat the transaction as receipt of funds and will be recorded in a capital account leading to increase in capital accounts. In contrast, a drop will be recorded in the capital account of the parent company’s country. If the subsidiary loans the parent company, the host country will record a decrease in the capital account as a result of outflow of cash (Safarian, 1985). The mother country will record an increase in capital account because of receipt of foreign reserves. The impact of loan on Balance of Payments accounts will depend on the size of the loan. Foreign Direct Investments and Interest Rates Dividends and interest earned on both loans, as well as equities affects the Balance of Payments current accounts. The Parent Company always charge a given interest for loans granted to its subs idiaries. Similarly, subsidiaries also impose interests on loans given to the Mother Company. Interest imposed by a subsidiary on loan offered to the Mother Company is treated as a positive figure against the host country current account. The mother country treats the similar interest as negative figure against its current account given the fact that the Parent Company has to pay the foreign affiliate relevant interest imposed on the loan. This transaction is therefore favorable to the host country and unfavorable to the mother country in relation to the current account. Conversely, if the parent company gives a loan to its foreign affiliate and charges a certain interest, a host country current account will decrease while the mother country current account will increase relative to the size of the loan, as well as the level of the interest rate charged. Foreign Direct Investments and Dividends Either an individual who owns preferred or ordinary shares of an incorporated company div idends is commonly paid shares of an incorporated company. Foreign affiliates have preferred and ordinary shares as well. For instance, an associate company has investors with a shareholding of between 10% and 50% while subsidiary has investors with a shareholding of 50% or more. Dividends affect the current account of the Balance of Payments. Payment of dividends by a subsidiary to its investors based in mother countries leads to a reduction of the current account of the host country. The mother country treats payment of investors’ dividends by subsidiary as an increase in the current account. It is therefore unfavorable for a host country to allow Foreign Direct Investments to engage in business considering that payment of dividends to foreign investors leads to decrease in its current account. However, it is more beneficial to the mother country since receipt of dividends by its citizens leads to increase in the current account. Foreign Direct Investment and Capital Flight Capital flight merely affects capital account. Capital flight has various definitions but the most appealing definition is the transfer of securities from a foreign country back to the home country or elsewhere due to fear of political risks or specific-country risks within the host country. Investors who find host country policies unfavorable for their investments such as imposing high taxes on foreign assets find it prudent to invest elsewhere. High inflation rates, poor returns on assets, as well as unappealing exchange rates may force investors to transfer their capital elsewhere. Capital flight leads to reduction of host country capital and thus reduction in the host country capital account. If an investor transfers capital back to his home country, the mother country will benefit through increased level of capital account. However, the mother country capital account will likely remain at the same level considering that returns that were earned on capital while being invested in the foreign country will hardly be realized. It therefore affects the current account negatively. On the other hand, although the host country will lose part of its capital account, it will not experience reduction in the current account since payments to foreign investors will have ceased. Foreign Direct Investment and Reinvested Earnings Parent companies have a variety of foreign affiliates ranging from subsidiaries to associates and branches. Parent companies sometimes find it prudent to allow foreign affiliates to invest back earned profits. As mentioned above, earnings of subsidiaries affect the current account. A host country would gain from reinvestment by subsidiaries given that its Balance of Payments will increase. Conversely, reinvested earnings do not affect the Balance of Payments of the mother country. Transfer of profits to the home country would lead to an increase in the Balance of Payments of the mother country’s current account. Foreign Direct Investment and Equity Capital Individual and institutional investors in many circumstances invest in foreign equity capital. An investor who invests in equity capital benefits from either capital gains or dividends payment. Dividends are paid in a quarterly, semiannually, yearly basis or as per the agreement. A host country always encourages foreign investments since various entities are equipped with sufficient capital to expand their operations, as well as upgrading their systems. Increase in foreign investments means increase in foreign reserves and therefore increase in the host country capital account. The mother country will record a transfer of capital from its home country to the foreign country as a decrease in its level of capital account. Conclusion It is important for a nation to have a Balance of Payments that does not have deficits. Nonetheless, a Balance of Payments that has surplus would indicate that an economy is strong. To maintain a strong economy, a country should encoura ge inward Foreign Direct Investment. This would expand its economy through advanced technology and increased employment, which favors the Balance of Payments. In addition, it should also encourage outward Foreign Direct Investment. This would permit its citizen to earn better incomes on assets invested in foreign companies. Increased earnings lead to increase in the level of the current account. It is further concluded that foreign direct investment has both advantages and disadvantages. References Britton, N. (1996). Canada and the global economy: the geography of structural and technological change. Montreal: McGill-Queen’s Press. Cutler, C., Zacher, M. (1992). Canadian foreign policy and international economic regimes. Vancouver: UBC Press. Holloway, S. (2006). Canadian foreign policy: defining the national interest. Toronto: University of Toronto Press. Safarian, E. (1985). Foreign direct investment: a survey of Canadian research. Montreal: IRPP. Vladimir, K. (2008). Sho w Me the Money: Access to Finance for Small Borrowers in Canada. York: International Monetary Fund. 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Why buy when you can build essays

Why buy when you can build essays Computers have revolutionized the world, as we know it. They have been of means of improvement of life from Aeronautics to Zoology (A Z), and a plethora of other fields as well. Computers have been the backbone of technological advancement and organization necessary for this knowledge explosion of the 21st century. However, what do we owe most of the driving force behind the eruption in computer advancement? Would you guess the video game? Thats right the good ole video game. Could you have ever guess that Ataris pong would be a major contributor to the rapid acceleration in computer technology. I began to get into computers in 1995 and paid a sum of $1500.00 for my first custom built PC. If I recall it was a 486 DX2 80 IBM Clone with 16 Megs of Ram, I even splurged with a luxurious 15-inch monitor, all built by a 16 year old high school student. I couldnt believe it but he brought it to my house and set it up and I was off on my journey. I purchased my next pc from the not so beloved Best Buy department store, where the sales reps where quick to tell me that the unit I wished to purchase was fully upgradeable, they failed to tell me however that it was limited to the memory only. All other components were integrated (built onto the motherboard). Realizing that the only way I could know what was going on, was to jump off into this process of building my own system. The purpose of this paper is to inform you that it is possible for you the reader as well. Let me wet your appetite, that in building your own personal computer you can save hundreds of dollars at least that was the case 5 or so years ago. Now companies like Dell and Compaq can offer complete systems for less money. This is what the experts of PC Mechanic have to say: If you go to buy a pre-built PC by HP or Compaq, they are fine. But, keep in mind that, often, PC manufacturers reduce price by using lesser quality parts....

Ethics Essay Example | Topics and Well Written Essays - 1250 words - 5

Ethics - Essay Example The public expects professionalism and ethical conduct from those in the criminal justice system. The discipline of ethics focuses on the issue of what comprises appropriate or inappropriate behavior. A prominent specialist on ethics, Dr. Sam S. Souryal, gives a specific definition of ethics for corrections officers (Cronkhite, 2013, 304): Ethics has come to mean behaviors as they relate to a profession. Thus, there are medical ethics, legal ethics, and correctional ethics. All corrections professionals must follow basic ethical guidelines. Ethics boils down to making a choice between right and wrong, and doing what is right. In general, you can use your conscience as a guide. If you use sound reasoning, act in good faith, do your job fairly and honestly, respect the rights of others, and follow the rules and regulations of the agency, you will avoid most ethical problems. As argued by Whisenand (2005 as cited in Cronkhite, 2013, 304), ethics in the criminal justice system involves m oral obligations and how individuals should act with regard to both objectives and behavior. The criminal justice system is an inherently service-oriented field that assesses its people and behavior merely in terms of the actual exercise of power and the realization of objectives. Codes of Ethics and Ethical Dilemmas Therefore, codes of ethics fulfill two main functions. First, they serve as ethical or moral rules for those working in criminal justice. They lay down moral responsibilities that must be fulfilled and moral features that must be followed. Moreover, codes of ethics establish rules of professionalism vital to the organization’s interests (Chipman, 2000). The purpose of such rules is to hold the professionals accountable to the utmost performance level and encourage them to be committed to the rules of integrity, loyalty, and obligation. Second, codes of ethics establish professionalism in the criminal justice system. When employees abide by a code of ethics, the o utcome is a setting favorable for excellence. Employees know how to carry out their duties without too much supervision. They feel a sense of commitment and fulfillment in their work. They behave with respect and acceptance toward one another and in relationship to their fellow workers and clients (Chipman, 2000). They are capable of surpassing ‘petty behaviors’ like backstabbing, distrust, and envy and learn to avoid and detest inappropriate behaviors like favoritism, prejudice, and insensitivity. All codes of ethics aim at promoting two major qualities, namely, professionalism and public service. These are natural virtues, essential and fixed (Pollock, 2011). Without these codes of ethics, an organization loses its moral standing and faces serious ethical dilemmas. So how do people confront ethical dilemmas? Scholars explain that people initially exercise intuitive moral thinking when they confront ethical dilemmas. Intuition gives people quite simple rules learned fr om previous experiences (Braswell, McCarthy, & McCarthy, 2010). Another method of confronting ethical dilemmas is critical thinking. Contrary to intuitive thinking, critical thinking uses rules provided by moral and philosophical doctrines. In making moral choices when confronted with ethical dilemmas, people may at first exercise intuitive thinking, using their intuition to determine potential decisions or

Should biotechnologies replace traditional agricultural in the future Essay

Should biotechnologies replace traditional agricultural in the future - Essay Example as come to affect the manner through which agriculture is conducted and it has brought about a situation where there has been widespread debate concerning whether these technologies should replace traditional agriculture. Biotechnology should not be allowed to replace traditional agriculture because it will result in more harm than good. One of the reasons why biotechnology should not replace traditional agriculture is that it will neither benefit the farmers in the developed world nor those in the developing world. This is mainly because biotechnology is profit driven and does not have the interests of farmers at heart. As a profit driven industry, biotechnology can be considered to be a means through which major agricultural corporations are attempting to increase the dependence of society on industrial products to the almost total exclusion of products from traditional farmers. The intensification of farmers’ dependence on industrial products through the adoption of biotechnology would ensure that they end up having to endure restrictions based on intellectual property rights owned by major biochemical corporations. The enforcement of these rights would mean that farmers would be denied the right to not only reproduces, but also to share and store the seeds that they have purchased. Such conditions would b e highly detrimental to farmers and would force them to have to purchase expensive industrial products in order to continue practicing agriculture. It should be noted that without the much needed capital in order to purchase biotechnological products, most traditional farmers would be forced out of business, with the market being almost completely dominated by large corporations that are profit driven. Therefore, if biotechnology were to replace traditional agriculture, it would create a situation where it would be difficult for a significant number of people employed in the latter industry to survive the new market conditions. There would be an increase in

Week 4 Student Blog Post Assignment Example | Topics and Well Written Essays - 250 words

Week 4 Student Blog Post - Assignment Example The primary collections in this museum include the history of Philadelphian Africa Americans back in the twentieth century and showcases about the city and episodes of the black panthers to sports paraphernalia (Macdonald 34). Upon visiting this museum, I will compose a song. The lyrics of my song will be driven mainly by the rich African American culture that I will find stored in the museum. In addition, the art of politics of the Philadelphian Africa Americans, which will be easily read from the scriptures, will heavily influence the choice of my song. Articles and publications, lectures, tours, outreach programs and workshops, so far provided in class, will be of great help for my assignment. Nevertheless, previous studies in anthropology and history will greatly enhance my ways of attacking this assignment as they provide an individual with interpretive skills. Visiting Philadelphian Africa Americans museum will greatly improve my ability to tackle the assignment as it this will offer me an opportunity for gaining practical skills and at the same time give more rooms for innovations and

Meritocracy in UK Education: Bernstein and Bourdieu

Meritocracy in UK Education: Bernstein and Bourdieu ‘Education policy in the UK now contributes to a more meritocratic society. Discuss the various explanations that sociologists have offered for differences in educational outcomes Introduction Many policy developments regarding education have had as their express aim the need to make the education system fairer (including the 1870 and 1944 Education Acts and the 1988 Education Reform Act, which introduced the National Curriculm): that is, to achieve a position in which educational achievement reflects children’s innate ability.[1] However, despite these manifest aims the basic pattern of educational achievement remains stratified along lines of class, race and gender: in general, children from middle and upper class families (as defined by the occupational grouping of the father) tend to achieve both a longer and more qualified education (see Douglas, 1964 or Halsey et al, 1980). Similarly, race differentials of attainment are also evident (see Orr, 2003). Finally, educational outcomes, despite successive attempts to overcome them, remain gendered: girls tend to be concentrated within the ‘feminine’ subjects such as English, whilst boys tend to do bette r in mathematics and the sciences (see Thomas, 1990). However, the largest factor affecting educational outcomes in the UK remains class: this is not to say that all working class children fail educationally; however, there remains a strong correlation between social class and achievement levels. Thus, despite a widespread belief in the meritocratic nature of modern western society this belief may in fact be little more than a legitimating ideology: it is therefore the unequal educational outcomes of children with similar ‘natural’ abilities that social theorists have sought to explain. However, as many theoretical approaches have been utilised in this attempt as the number of theorists so involved: theorists with liberal, conservative, feminist and socialist leanings may further show actor-centred, structuralist or functionalist tendencies to their explanatory schemas. In this essay I have decided to concentrate on the work of two theorists, Pierre Bourdieu and Basil Bernstein, my reasoning is threefold: firstly, space limitations negate the feasibility of a broader survey; next, though Bernstein was previously influential within educational theory, it is the work of Bourdieu that now appears ascendant and to have wider applicability; finally, whilst both Pierre Bourdieu and Basil Bernstein have been associated with class-based analysis, it is that of Bourdieu that has subsequently been more widely adopted, therefore they provide neatly contrasting explanations of educational differentials. In the next section I outline the educational theory of Basil Bernstein; in the following that of Pierre Bourdieu. In the conclusion, I critically asses both approaches, arguing that, whilst at first glance they appear similar in that they both aim to account predominantly for the class-based dimension to educational differentials, in fact it is the more subtle and nuanced theory of Bourdieu that is better able to account for educational differentials of a wider type: those based on gender, race, and class. Basil Bernstein: The Elaborated and Restricted Codes Basil Bernstein (1925-2000) initially developed his account of the elaborated and restricted codes during his time teaching young men motorcycle repair in the 1960s. It was then that he noticed the different ways in which language was used by the tutors and pupils, leading him to conclude that it was in fact two different forms of language that were being used: the restricted and elaborated codes. He defined the ‘restricted’ code as being inherently context bound, emotion based and reliant on condensed symbols: ‘restricted codes are more tied to a local structure and have a reduced potential for change’ (Bernstein, 1972: 164). In contrast, the ‘elaborated’ codes ‘orient their users towards universalistic meanings’ (Ibid.) and are defined by Bernstein as utilising rationality and logic; ‘elaborated’ codes are thus described by Bernstein as being context-free; it is the elaborated code that Bernstein takes to be dominant within education. Bernstein believed that the elaborated language code is the norm for the middle classes, whilst the restricted code is usually used both within working-class and middle-class families, with differences the result of the ‘cultural transmission’, via socialisation, that turns the biological infant into a cultural being (Bernstein, 1972: 162). He argued that the process of socialisation naturalises the social order and occurs via social institutions such as the family and school. He identified two family types: the ‘positional’ and the ‘person-centred’, and these are likely to utilise specific modes of interaction (Bernstein, 1972: 170). Arguing that all children have access to the restricted code, Bernstein believed that it is only those from the person-centred family type (the middle-class families) who are likely to have had regular contact with the imaginative and interpersonal language of the elaborated code outside of formal education, giving them an advantage within education: Historically and now, only a tiny percentage of the population has been socialised into knowledge at the level of meta-languages of control and innovation, whereas the mass of the population has been socialised into knowledge at the level of context-tied operations (Bernstein, 1972: 163). In short, the language used within the home gives middle class children an advantage at school; they ‘speak the same language’ as the teachers. Bernstein does not argue that either mode is better than the other, his aims to be a descriptive, rather than a prescriptive, account; instead he argues that it is the educational system itself that favours one code above the other and thus privileges the children of one group, middle-class children. Pierre Bourdieu: Cultural Capital Similar to Bernstein, Pierre Bourdieu (1930-2002) developed his theory of cultural capital as part of an attempt to explain the class-based educational differentials between children with similar natural abilities. Two concepts are central to this schema: those of cultural capital and cultural reproduction. In the first, culture is viewed as similar to power (Bourdieu, 1986: 243) because, like money, one is able to inherit it and it can be translated into other social resources, including wealth and status (Bourdieu, 1986: 244-5). It is this transferability of cultural capital that leads to the second key concept, that of cultural reproduction: for in this schema the class that dominates economically is also able to dominate culturally and ideologically; thus, similarly to Bernstein, schools play a key role in socio-cultural reproduction by valuing middle-class culture more highly than that of the working-classes. Bourdieu isolates three distinct types of cultural capital, embodied, objectified and institutionalised: the first describes the way that cultural capital becomes incorporated into the very body of the individual (Bourdieu, 1986: 244-5); the second refers to artefacts which may be inherited (Bourdieu, 1986: 246); whilst the third refers to those academic qualifications which allow an individual access to economic capital via the job market (Bourdieu, 1986: 247). In this way schools, along with other institutions, help to both naturalise and perpetuate inequality. Like economic capital for Karl Marx, for Bourdieu cultural capital has the capacity to reproduce itself ‘in identical or expanded form’ (Bourdieu, 1986: 241). In short, for Bourdieu education plays a key role in legitimising and naturalising social inequality; for if all children are believed to have equal opportunities to succeed according to their ability then any failure must be a result of differences in their level of ability: it must be their own fault rather than the fault of the system as a whole. Bourdieu posits the educational shortcomings of the working classes on their situational constraints in two ways; firstly, the objective class position of the children’s family is used to provide the basis for assumptions regarding the kind of cultural resources they therefore hold; secondly, their social position limits the amount and type of capital an individual is likely to accrue and pass on to their children. Within Bourdieu’s theory, each economic class is thus assumed to have developed a ‘class culture’, or way of both acting in and perceiving the social world, and in this way social inequality is intern alised or embodied as it is also naturalised. Analysis and Conclusion The two approaches appear similar at first glance; both concentrate on the class-based aspects of educational inequality, and, as such, both are open to the criticism that they fail to account for other educational differences, such as those resulting from race or gender (McCall, 1992: 851). Further, both approaches are liable to be criticised for their economic determinism: John Frow has argued that with Bourdieu’s approach the cultural resources of an individual are merely assumed from their class position (Frow, 1995: 63) and this criticism might equally be applied to Bernstein. Finally, both approaches entail the idea that differential educational achievement is best explained with references to ‘barriers’ to achievement: both posit the way that society is organised, the education system in particular, as itself limiting the ability of some children to succeed. However, Bernstein’s theory has been criticised empirically, theoretically and ideologically; first, little empirical is cited to support his hypothesis and he conducted no participation observation of either middle or working class family homes (Rosen, 1974: 10). Theoretically, Bernstein utilises a crude conception of class analysis which ignores the ruling class entirely whilst also concentrating solely on the unskilled section of the working class (Rosen, 1974: 6). He fails to address the relations between the two classes (Ibid.), further, by concentrating on the role of the family his theory fails to acknowledge other institutions or the role of peer groups or the media (Rosen, 1974: 7). Finally, he fails to acknowledge the effect that the attitude of the teacher toward their students may have on their education. Whilst there is a ‘grain of truth’ to his argument, in that there are differences in the language use of the various social classes, by attributing t he failure of working class children solely to their language-use Bernstein misses the point: it is not the language that inherently contains power, but rather it is the broader education system that, by imposing middle-class culture via pedagogic authority, limits the ability of working class children to succeed. Although he aims to only describe the differences between the two language types, Bernstein himself falls into the ethno-linguistic trap of believing his own language use to be the superior form (Rosen, 1974: 6). Finally, as Deborah Cameron states: ‘the theory of codes could be boiled down to a political truism, those who do not speak the language of the dominant elite find it difficult to get on’ (Cameron, 1985: 159-160). Bourdieu’s approach is more subtle; although he agues, similarly to Bernstein, that language plays a key role in the under achievement of the working classes, Bourdieu’s explanation involves many other factors, including the development of a specific habitus, or set of predispositions, and the social, cultural and economic capitals. Thus Bourdieu does not point to language as the sole cause of working-class children’s educational failure, but instead describes a complex process that not only attempts to account for this failure but also its internalisation. Indeed, Bourdieu’s theory is supported by in-depth participation-observation, rather than the assumption and anecdote of Bernstein, reflecting his recognition of the complexity of the causes of unequal educational achievement. In recent years Bernstein’s theory, though once influential, has fallen out of favour within educational sociology, as a quick survey of recent articles reveals, whilst the theory of cultural capital has become increasingly influential (Burkett, 2001). Whilst at first glance the theories appear similar, in fact it is the theory of Bourdieu that is better able to account for educational differentials of a wider type: those based on gender, race, and class and many theorists have sought to thus extend the theory to account for these wider differentials (see, for example, McNay, 1999; Reay, 2004). Indeed, Ben Fine has argued that academia has been gripped by a kind of ‘capital’ mania (in Burkett, 2004: 234), in part, at least, attesting to the strength of the explanatory schema. Bibliography Bernstein, Basil (1972) ‘Social Class, Language and Socialisation’, Language and Social Context: Selected Readings, Giglioli, Pier Paolo (Ed.), London: Penguin Education, pp. 157-178. Bourdieu, Pierre (1986) ‘The forms of Capital’ in Handbook of Theory and Research for the Sociology of Education, Richardson, J (Ed.), London: Greenwood Press, pp. 241-258. Burkett, Paul (2001) ‘Book Review: Social Capital versus Social Theory: Political Economy and Social Science at the Turn of the Millennium’ by Ben Fine, London: Routledge, Historical Materialism, Vol. 12, No. 1, pp. 233-246. Cameron, Deborah (1985) ‘Beyond Alienation: An Integrational Approach to Women and Language’, Feminism and Linguistic Theory, London: MacMillan, pp 134 – 161. Douglas, J.W.B (1964) The Home and the School: A Study of Ability and Attainment in the Primary School, London: MacGibbon. Frow, John (1995) ‘Accounting for Tastes: Some Problems in Bourdieu’s Sociology of Culture’, Cultural Studies, Vol. 1(No. 1), pp. 59-73. Halsey, A.H; Heath, A Ridge, J.M (1980) Origins and Destinations: Family Class and Education in Modern Britain, Oxford: Clarendon Press. McNay, Lois (1999) ‘Gender, Habitus and the Field: Pierre Bourdieu and the Limits of Reflexivity’, Theory, Culture and Society, Vol. 16, No. 1, pp. 95-117. Orr, Amy (2003) ‘Black-White Differences in Achievement: The Importance of Wealth’, Sociology of Education, Vol. 76, pp. 281-304. Piper, David Warren (1984) ‘The Question of Fairness’, Is Higher Education Fair to Women?, Acker, Sandra and Piper, David Warren (Eds.), Guilford: SRHE and NFER-NELSON, pp. 3-24. Reay, Diane (2004) ‘It’s all Becoming a Habitus’: Beyond the Habitual use of Habitus in Educational Research’, British Journal of Sociology of Education, Vol. 25, No. 4, pp. 431-444. Rosen, Harold (1974 [1972]) Language and Class: A Critical Look at the Theories of Basil Bernstein (3rd Ed.), Bristol: Falling Wall Press. Thomas, Kim (1990) ‘The Question of Gender’ and ‘Feminism and Education’ in Gender and Subject in Higher Education, Buckingham: SRHE Open University Press, pp. 1 – 23. 1 Footnotes [1] See David Warren Piper (1984) for a discussion regarding the feasibility of attaining true ‘fairness’ in education.

Love in Pre-1914 Poetry :: Poetry Poems Love Emotions Essays

Love in Pre-1914 Poetry Compare and contrast the ways in which writers’ present ideas about love in a selection of pre-1914 poetry Poetry is usually used to convey strong feelings and emotions which may be difficult to express in any other form. Poems are especially good at portraying feelings of love because they have set rhythms which can flow better than ordinary speech; poetry can also be good at expressing anger as the rhythms are capable of being very harsh. From times pre-dating the Tudors, poetry has been used by men to win the affections of their prospective mistresses because, by using verse, they could show emotion without embarrassment. The technique of using poetry to woe was used by Andrew Marvell in his poem ‘To His Coy Mistress’. The traditional, model woman, particularly in the 17th Century, was supposed to maintain a state of coyness until after she was married off to a suitor who met with her fathers’ approval. Andrew Marvell’s ‘To His Coy Mistress’ speaks of the passage of time moving on and of a man’s frustration at his mistress’s coyness. â€Å"Had we but world enough, and time, This coyness, lady, were no crime.† (Lines 1-2) In the above the man is telling the lady that if they had ‘all the time in the world’ then her coyness would be fine and he would not mind it at all. These first two lines of the poem are the beginning of the ‘if’ section. Marvell goes on in this section to say: â€Å"Thou by the Indian Ganges’ side Should’st rubies find: I by the tide Of Humber would complain. I would Love you ten years before the flood: And you should, if you please, refuse, Till the conversion of the Jews.† (Lines 5-10) The Ganges is an exotic river and, especially in the 17th Century when travel to India was rare, it was the source of much fascination. By saying that she is by the Ganges and yet he is by the Humber, a very unexciting river, he is flattering her. She is worthy of a glamorous river whereas he is not. Marvell writes that he would love her even before the two rivers are joined in a second Biblical flood. He also says that she could refuse to heed his advances until the â€Å"conversion of the Jews† this, like the second flood, is a very unlikely event. The poem then continues with Marvell writing of a â€Å"†¦vegetable love†¦Ã¢â‚¬  (Line 11) This love would continue to grow with time and the man and woman’s platonic relationship would carry on without hindrance if only they had the time. If the man had forever then he could take the time to