Letter of Insanitation

Dear Manager, I came into your restaurant for lunch on Saturday, November 2nd, 2013 at approximately 12:30 p. m. Being that your store location is closest to my home and to my work; I dine at your location very frequently with my co-workers and family. This past Saturday, I realized something that I should have always been observant of; however, I made the assumption that it was something that I didn’t need to be concerned about because of the common sense around the issue. I noticed that the man who was making my sandwich was not wearing gloves or a hair net.I realize that most men have short enough hair so that it is not a major issue; however, this gentleman had hair longer than shoulder length. I understand that I came in during the lunch-time hour and that the store was busy, however, these things are not negotiable because of the risks associated with not wearing a hair net or gloves. While I stood at the counter watching my sandwich being prepared, three employees on th e assembly line sneezed within a two minute increment and two of those used their hands to cover their mouths/noses while sneezing.Neither of the two employees left their station to go wash their hands and to clean themselves. They remained working and continued on with making my sandwich, along with the others who were waiting in line. It was not just me who realized what just happened, the man next to me and I both made eye-contact and mumbled a few words to each other regarding the incident. I am sure, that a person in your position knows the magnitude of viruses and diseases that can easily be spread by unwashed hands.Your employees can spread certain germs/microbes like viruses and bacteria by contaminating the objects or surfaces that they are touching. The U. S. Food and Drug Administration (FDA) instructs that hands be washed before making food AND putting on gloves to make food. The FDA also advices that hands be washed after coughing, sneezing and touching your body, howev er, in the case of your store, this was not taken seriously. I was extremely concerned when watching my food being prepared by your employees and the problem could be solved so simply.I received my sandwich and after watching what I saw, I didn’t even eat the food I purchased because I was not willing to take the risk in getting sick because of poor practices on behalf of your employees and stores location. I have a couple recommendations as to how to fix this problem and any future problems in the future at your location with your employees: 1. ) Take an extra 30-45 seconds and thoroughly wash your hands with anti-bacterial soap. 2.)Advise all working personnel that they are required to wear a hair net if their hair is longer than a certain length. Please remind your staff/employees to take the safety of your customers seriously, especially when it involves personal hygiene. I am sure that even the busiest person on the planet would gladly wait an additional 30-45 seconds so that you can wash your hands and so they do not get an illness and become sick. I hope that this problem gets solved because I do enjoy coming into your stores location for lunch/dinner! Sincerely,

Factors and Hazards of Infant Development Essay

Two hazards I find important to avoid are alcohol consumption and addictive drugs. In this paper I will explain the importance of these three factors and hazards. The most important factor in an infant’s development is obtaining early prenatal care. Women should make an appointment as soon as she suspects she is pregnant (Marotz & Allen, 2012). It is not good to rely on home pregnancy tests because they are sometimes not accurate especially in the early days and weeks. A health care provider can determine if you’re pregnant or not on this visit. Also, on the visit any medical issues the mother has can be evaluated and treated (2012). As long as there is no issues mothers can be encouraged to do noncontact exercise. Exercise will help with weight gain, muscles, and believed the help with easier labor and delivery (2012). â€Å"A lack of prenatal care is often associated with an increased rate of medical complications, preterm births, low birth weight infants, fetal death, and disabilities† (p. 52). A very important hazard to avoid in infant development is alcohol consumption. This can have serious consequences for mother and fetus (Marotz & Allen, 2012). â€Å"Mothers who consume alcohol during pregnancy have a greater risk of miscarriages, still births, premature infants, and low-birth-weight infants. The incidence of fetal death is also significantly higher† (p. 58). According to Marots & Allen the mother and infant share a common circulatory system so they   3 both are affected by any alcohol that is consumed. The alcohol remains in the infants system longer than the mothers (2012). â€Å"Heavy or binge drinking is associated with a preventable condition known as fetal alcohol syndrome, which causes mental and growth retardation, behavior and learning problems, poor motor coordination, heart defects, characteristic facial deformities, and speech impairments† (p. 58-59). Another hazard to avoid is addictive drugs. Also chemicals have a major effect on development. Some of these include pesticides, fertilizers, prescriptions, nonprescription, and street drugs (Marotz & Allen, 2012). Some of the side effects of these drugs and chemicals are malformations, fetal death, premature birth, and lifelong behavior and learning disabilities (2012). â€Å"The nature and severity of an infant’s abnormalities seem to be influenced by the timing of exposure during fetal development, the amount and type of substance, the mother’s general state of health, and maternal and fetal genetics† (p. 60). Women should check with their health care provider before taking any prescription or nonprescription drugs to determine if it will be harmful for the infant. In infant development many factors and hazards are important. A woman must be very careful with everything she does. The three topics I discussed are very important to me. Seeking prenatal care will help in so many ways. The doctor can help to make sure you’re on the right track with development and also tell you what hazards to stay away from like alcohol consumption and addictive drugs and chemicals.

Key Attributes of the Transformational Style of Leadership Essay

The key attributes of the transformational style of leadership are as follows: Task versus Relationship Working together in organizations is increasingly the norm, yet the challenges of working effectively are considerable. One challenge is conflict—the process resulting from the tension between team members because of real or perceived differences. Empowerment versus Control The empowerment leadership style calls for delegation and collaboration of the team, while control is about the competitive style of conflict, which is task oriented—taking a firm stand and operating from a position of power. Getting Results versus Building Capacity Getting results and building capacity should work hand in hand but can be at odds as well, depending on strategy and objectives. To gain results, a leader must build capacity of the team; however, building capacity takes time and resources away from getting results. Shared Vision Shared vision is related to the traditional concept of goal-oriented implementation and consensus building in strategy and leadership (related to products, technologies, or markets), and values are developed by strong, charismatic leaders and imbued in the organizations they create. A shared vision is imperative in that it is communicated and developed as the organizational culture. Self versus Team Interests Self versus team interest affects or is highly influenced by the organization’s culture. How does the team or organization achieve its objectives and goals? Does the company promote and incentivize individual effort in lieu of team objectives? With one person excelling and the team suffering, does the entire organization succeed? Many times, individual goals or incentives must be sacrificed for the good of the team. One example of a transformational leader is Sam Walton, founder of Wal-Mart, who often visited Wal-Mart stores across the country to meet with associates to show his appreciation for what they did for the company. Sam Walton gave â€Å"rules for success† in his autobiography, one of which was to appreciate associates with praise (Walton, 1996). Wal-Mart leaders embrace a philosophy called â€Å"servant-leadership,† which simply means that if you are a leader you need to put the needs of your people first. Said another way, company leaders need to serve their employees (associates). When you boil it all down, the secret to Sam Walton’s leadership philosophies is servant-leadership. His belief was that to truly be an inspirational leader, you must serve those whom you lead. In this regard, Sam was as much an amateur psychologist as he was a merchant (Bergdahl, 2004). There are 4 components to transformational leadership, sometimes referred to as the 4 I’s: Idealized Influence (II) – the leader serves as an ideal role model for followers; the leader â€Å"walks the talk,† and is admired for this. Inspirational Motivation (IM) – Transformational leaders have the ability to inspire and motivate followers. Combined these first two I’s are what constitute the transformational eader’s charisma. Individualized Consideration (IC) – Transformational leaders demonstrate genuine concern for the needs and feelings of followers. This personal attention to each follower is a key element in bringing out their very best efforts. Intellectual Stimulation (IS) – the leader challenges followers to be innovative and creative. A common misunderstanding is that transformational  leaders are â€Å"soft,† but the truth is that they constantly challenge followers to higher levels of performance (Riggio, 2009). References Bergdahl, M. (2004). What I Learned From Sam Walton : How to Compete and Thrive in a Wal-Mart World. Hoboken, N.J.: John Wiley & Sons. Retrieved from http://web.ebscohost.com.libproxy.edmc.edu/ehost/detail?sid=2a112ec6-1217-47cc-8f02-3e3e27a41db7%40sessionmgr10&vid=5&bk=1&hid=22&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=nlebk&AN=119365 Kouzes, J. (2007). The Leadership Challenge (4th ed). Jossey-Bass. Retrieved from http://digitalbookshelf.argosy.edu/books/9780470633397/Root/0 Riggio, R. (2009). Cutting-Edge Leadership. Retrieved from http://www.psychologytoday.com/blog/cutting-edge-leadership/200903/are-you-transformational-leader

Not required Essay Example | Topics and Well Written Essays - 1500 words

Not required - Essay Example This cohesion between airline companies results to better perform in relation to customer service as well as the air transport. Although the extent of cohesion varies across alliances, it has been observed that they are more profitable to small airline entities. This essay will look at the three major airline airlines that are recognized on the international platform including Oneworld, Star Alliance and SkyTeam. Additionally, the essay looks into Alaska airline that is a key flyer in the US and other international destinations. Finally, the paper looks into the advantages and disadvantages of global airlines. This is the first airline global alliance that is discussed in the paper. First, it is the smallest alliance that currently has thirteen members; however, this number is expected to rise in the coming years. The alliance was established in 1999 by the airline companies that were competing with Sky Team (Weber and Sparks, 2004). Examples of these members include: Qatar Airways, Malaysia Airlines, American Airlines and British Airways. The alliance has 981 destinations and it operates in 151 countries. The yearly capacity is 475 passengers; it has a fleet of 3,283 aircrafts and 14,244 departures on a daily. The top five members elect airlines that have the highest number of flights include TAM, British Airways, Iberaia, US Airways and American Airlines (The Points Guy, 2014). It can be argued the alliance is undeniably the best in redeeming domestic and global cabin topnotch awards. Six carriers have well-established global first rate cabins including Cathay Pacific, British Airways, American, Cathay Pacific, Malysian Airline, Qantas and JAL. This is the second global alliance in the airline industry. Based on the recent statistics, the alliance has nineteen members. This alliance was formed in 2000. It operates in 178 nations across the globe and has 1024

Analysis of determinate trusses Coursework Example | Topics and Well Written Essays - 2000 words

Analysis of determinate trusses - Coursework Example (Provided the whole truss is in equilibrium, the two parts that have been cut must also be in equilibrium. This results to three equilibrium equations which can be applied to either of the two parts to determine the forces of the members at the section that have been cut. Always assume that the unknown member forces at the cut section are in tension. By doing this, the numerical solution of the equilibrium equation will yield positive scalars for members in tension an negative scalars for members in compression (Dr. G.Saravana Kumar 1) Truss analysis using this method is simplified if members supporting no load are identified. These members maybe be in the truss for stability purposes. They are also used to provide support to the truss if the applied load is changed. From figure 1.0, the members at C are connected together perpendicularly and there is no external force at the joint. The free body diagram at C shows that the force in each truss ember should be zero for equilibrium to be maintained. This method deals with graphical representation of equilibrium for each joint (Asst. Prof. Dr. Cenk Ustundug â€Å"Theory of Structures). This method unifies all the forces resulting the graphical equilibrium of each and every joint into one force. From one vector end, a line parallel to the direction of one of the two forces is drawn, while from the other end a second line parallel to the other direction is drawn. ( Asst. Prof. Dr. Cenk Ustundug â€Å"Theory of Structures

Calculus Coursework Example | Topics and Well Written Essays - 500 words

Calculus - Coursework Example Their professional backgrounds played a very important role in the way they perceived Calculus and its application. Since Newton was a physicist, his thinking was influenced by physical matter and that is why he applied Calculus to try and explain physical phenomena. Since Leibniz was a Mathematician, Calculus to him was more of a statistical endeavor that required deep analysis. However, both contributed greatly to the discovery and application of Calculus. Newton was responsible for developing the inverse relationship between the integral (area beneath a curve) and the derivative (slope of a curve). Leibniz’s work led him to discover the notations used for taking the integral and the derivative. When both of their work was combined, it led to the formation of Calculus. This view was not always held and there was a dispute as to who, between the two men, actually discovered Calculus. Newton claimed that he had in 1666, at the age of 23, invented Calculus, when he had begun working on a technique known as fluents and fluxions. As for Gottfried, in 1675, due to his fascination with the tangent line, he began conducting research on Calculus. Even though Newton had discovered the principles of Calculus earlier on, he did not publish his findings, unlike Leibnitz who published his in 1684. Therefore, as a matter of public record, some deemed Leibnitz as the person who discovered the principles first. Consequently, this led to the Newton-Leibnitz controversy that continued to rage on centuries later. Newton’s Publication of Principia, in 1687, has also been a source of controversy since it is not entirely known whether he included his workings on Calculus. However, in a 1693 publication, he published part of his work on fluxion notation, but he fully published his work in 1704 (Jahnke 78). Newton seems to have been the one with the earliest breakthrough, but on his own, his work was incomplete. The adoption of Leibnitz notation is very

Human Trafficking Research Paper Example | Topics and Well Written Essays - 3000 words

Human Trafficking - Research Paper Example People smuggling involves providing people, mostly illegal immigrants, with the means to enter into a foreign country or state without following due legal process and for a price. Once the smuggled people reach their destination, they are set free to go and start their own lives in whatever place they choose. Human trafficking is not a new phenomenon as it has its roots in ancient times when civilization was taking form, which is even before the 15th century. In places such as Rome and Greece, the vice was so prevalent and lucrative that the society had accepted it as a normal business, which put almost half of the population in bondage (Williams 36). However, it is only after the 15th century that this form of trafficking took a global dimension as a result of new explorations and establishment of colonies by the Portuguese, Dutch, British and French among others in territories outside their own continent. It is from here that capturing of indigenous people, with the help of collabo rators, began whereby the captured people were driven to work in large farms and plantations in the colonies as well as in Europe and other continents such as the US, which led to widespread transfer of populations. Some races such as African Americans were formed as a result of this atrocity after people from the African continent were procured by US slave masters to go and provide cheap or forced labor in their firms and while at it, the slaves continued to procreate both within themselves and with the indigenous Americans thus their current existence. However, anti slavery movements emerged in the 1770s and consequently several nations outlawed it and it remains outlawed even in the contemporary society most... Human trafficking is the trade of human beings for the purposes of forced servitude. Forced servitude in this context involves; forced labor, sexual exploitation, child labor, bonded labor and military enrollment. It is estimated that there are more than 27 million people world wide in modern slavery, a business which is attracting a lot of illegal money valued at more than $32 billion annually. Third world countries have been noted as the major targets for traffickers, while the developed ones such as the US are the recipients due to their high economic growth and numerous opportunities. Some of the impacts of this trade on Developing countries include and not limited to; depression of wages, high prevalence of STDs, loss of human capital as well as high crime rate. The US, which receives more than 50000 trafficked persons on yearly basis, suffers from unemployment since victims are made to provide cheap labor, insecurity as well as the burden of spending tax payer’s money in combating the above mentioned consequences.

Alan Greenspan Essay Example | Topics and Well Written Essays - 1000 words

Alan Greenspan - Essay Example Both had different ideologies as Greenspan advocated for the deregulation of the financial markets and born propagated for the government regulation. The main source of conflict arose as a result of the Over the counter OTC derivatives that were private contracts between major players on the Wall Street on particular bets. Born cited a high likelihood of fraud taking place. But based on Greenspan he believed that the market would identify the frauds and corrects itself. These sentiments were in line with his core principles of a free market. The assumptions of a free market commonly no government intervention, free flow of information of information, the actions of an individual have no effect on the market and finally, there are no barriers to entry and exit the market. This was the principles that Greenspan stood by up to his retirement but later confessed that the philosophy had major drawbacks. The hedge fund long-term capital management was characterized by large banks secretly investing large amounts of money on the over the counter derivatives at the Wall Street. The hedge fund was additionally invested by a majority of the in the know investors. These dealings were shrouded in secrecy and the government didn’t have any clue about them. They were as a result of the wall stock brokers setting complex mathematical formula that guaranteed the investors of a significant return on their investment. Finally, there was a meltdown as the Wall Street brokers were unable to handle the situation causing a collapse.

Service Product Marketing Essay Example | Topics and Well Written Essays - 2750 words

Service Product Marketing - Essay Example Greece does receive both tourists and business travellers who face such inconveniences. A Spa at the airport would be able to capture this segment through the right marketing approach. This would be a mass marketing approach through the right mix of the seven element of service marketing. It is strongly recommended that the tourism venture should be an airport spa in Greece and the promotion of this spa can be done through innovative strategies such as tie upasana with the airlines and tour operators. Local people can also be attracted to the day spa which would tale care of business during the lean tourist season. Tourism in the 20th century has grown as the world’s largest industry surpassing autos, steel, electronics, and agriculture (Sirgy & Su, 2000). It is undoubtedly a large source of foreign exchange, employment and income and has grown as the business of attracting visitors and catering to their needs The economy of a nation depends on the travel and tourism industry and this is further endorsed by the fact that post September 11, the industry lost $1.36 billion in business because of a dramatic drop in bookings for flights, hotel rooms, car rentals and cruise. However, tourism is a service sector and the success of any tourism product depends on the service delivery. The process of globalization and social changes has transformed the service economy (Lovelock, Wirtz & Chew, 2009). Innovation in the service products stimulated by technology allows the service provider to offer a wider choice to the consumers. In addition, the disposable income in the hands of the people has gone up while their lifestyles have changed as well. This report aims to explore the strategy for marketing day spas in Greece. Greece continues to have the image of the 1960s as ‘island-hopping backpackers and package tourists’ (Mjourney, 1998). To attract the upmarket clients it is very important for Greece

The Formation of Rocks in Ireland Essay Example for Free

The Formation of Rocks in Ireland Essay It is the most widespread type of intrusive igneous rock at the earth’s surface. Igneous rocks form when molten rock is erupted at a volcano and then cools and hardens to form solid rock (Holden, 2012). Granite rock is created when magma is forced between other rocks deep within the earths crust. The magma then cools due to the drop in temperature and crystallizes in caverns deep within the earth. The molten rock cools quite slowly over time, which allows the crystals to grow and develop inside the molten rock. Granite is transported to the surface of the earth by plate tectonics. The collision of continental plates moves the granite from deep within the crust of the earth to the surface. Granite is found in Ireland in the Wicklow Mountains. (http://www. talktalk. co. uk/reference/encyclopaedia/hutchinson/m0015252. html) Granite is distinguished by three features. Firstly, granite is composed of large mineral grains that bind tightly together. Secondly, granite always contains the minerals of quartz and feldspar. (http://www. windows2universe. org/earth/geology/ig_granite. html) These minerals give granite a light complexion, generally a pink or white colour. Thirdly, almost all granite is igneous and plutonic. This is because it formed from a fluid state, which was magma and it formed in a huge, deeply buried body also known as a pluton (http://geology. about. com/od/more_igrocks/a/granite. htm). Basalt Basalt is a common extrusive igneous rock. Basalt is commonly dark in colour. It has a fine-grained mineral texture which is due to the rapid cooling of the molten rock after it is erupted at a volcano. The rapid cooling occurs due to being exposed to the cooling air or water on the surface of the earth. Holden, 2012) Basalt is formed generally in three different environments: Oceanic divergent plate boundaries, oceanic hotspots and at hotspots and mantle plumes beneath continents. Basalt forms at oceanic divergent plate boundaries at mid-ocean ridges. At mid-ocean ridges convection currents pull the plates apart creating a rift valley. This allows hot rock from deep within the earths mantle to melt and erupt onto the seafloor forming bas alt. (Honan, 2011) At oceanic hotspots basalt is also formed. Hotspots are areas in the cente of tectonic plates where hot plumes of magma force there way to the surface. Basalt is formed at these hotspots when an eruption occurs on the ocean floor. If the eruptions are repeated enough times the basalt can build the volcanic cone larger and larger to form an island. The Hawaiian Islands are an example of this. (http://geology. com/rocks/basalt. shtml) Basalt is also formed in a continental environment where mantle plumes or hotspots can deliver large quantities of magma up to the earths surface. These eruptions generally form from fissures or vents and they produce some of the largest basalt flows on the continents. (http://geology. com/rocks/basalt. html) Basalt can be found in Ireland in the Giant’s Causeway in County Antrim. Limestone Limestone is a sedimentary rock. Sedimentary rocks are created by the processes of chemical or physical weathering . The sediment which is created from the processes of weathering can accumulate over time and eventually build up and harden to form solid rock. (Holden, 2012) Limestone in Ireland formed about 300 to 350 million years in warm shallow seas when Ireland lay close to the equator. Over millions of years the bodies of dead marine creatures such as shellfish and coral fell to the seafloor and built up on the seabed. Mud and sand particles from rivers also fell to the seafloor and added to the sediment. Over time the weight of the accumalting sediment compressed the sediment. Water and air was pushed from the pore spaces and calcium carbonate from the sediment binded the rock together. The process by which loose grains of sediment are compressed to form solid rock is called lithification. (Honan, 2011) Chemical weathering and eroison of limestone rock produced unusual landscapes in Ireland called karst landscapes. An example of a karst landscape in Ireland is the Burren in County Clare. Honan and Mulholland , 2007) Sandstone Sandstone is an inorganically formed sedimentary rock. It forms when particles of igneous, metamorphic and other types of sedimentary rocks are transported by rivers and gather on the seafloor or in lakes. The sediment layers then become compacted and over time cemented together by silica to form sandstone rock. (Honan S. , 2011) Sandstone in Ireland was formed 400-350 millio n years ago when Ireland was situated 30 degrees south of the equator. During this period Ireland was experiencing some very dry desert conditions. Many large rivers flowed across the dry landscape carrying the sediments which over time formed Old Red Sandstone which can now be found in the Cork and Kerry Mountains. (Honan and Mulholland , 2007) Schist Schist is a metamorphic rock. Metamorphic rocks are produced from existing sedimentary or igneous rocks usually as a result of partial melting and recrystallization. The changes normally occur where there is high pressure such as under hundreds of metres of bedrock or where rock is crushed at the meeting point of tectonic plates. Many metamorphic rocks have a layered structure due to this intense external pressure. Metamorphic rocks are often harder and more resistant than sedimentary rocks. (Holden, 2012) Schist in Ireland was formed through regional metamorphism. This is when large areas of rock covering many thousands of square kilometres are metamorphsed. Schist in Ireland was formed about 400 million years ago during the Caledonian folding period. The rocks changed due to huge pressure on the rocks created by plate movement. This deformed the rocks and forced them deep into the earth’s crust where they were heated to temperatures up to 1,000 degrees.

Stock Market and Macroeconomic Variables in India

Stock Market and Macroeconomic Variables in India Chapter I: INTRODUCTION Overview Investment is dependent on human behavior. Keynes (1936) elaborates which sort of behavior humans adopt while investing particularly in capital market. Usually people get in use with their â€Å"animal feelings† and â€Å"flock mentality†. Economic and social and political environment also affects the opinion of people and they force them to think several times before investing. This is the reason one cannot forget the fact that the value of economic activities and information nourished to the market is vital. Here we are going to discuss the tendency of animal spirit in India. The propensity of animal spirit in India is very much high-flying. The major reason for this is that only 2% of the population of India participates in such activities. The medium to get knowledge of market and accuracy in information is not available easily. This forces people to act as per their nature rather than their logic. The core theme of this analysis is the study of interrelation betwee n real economic variables and capital market variables. The significance of this relationship has got marvelous recognition in the past due to roller-coaster ride of the BSE. A few academics also claim that it is not greatly shored up by the financial basics. To determine the character of these basics in studying the stock prices, different people have done different researches. Amidst of these thoughts, some fundamentalists have tailored theory of Efficient Market Hypothesis (EMH). This theory was further extended by Fama in 1971 to narrow and categorize such business centers on the foundation of their response and data nourished to them in feeble, partially built and well-built markets. Another theory which is Popular Model Theory shows a different perspective in general. This theory explains the qualitative clarification of price which shows that most of the people proceed inappropriately to the information which they get and easily accessible information is not included in stock market price as Efficient Market Hypothesis verifies which is also much analogous to Keynes model. These days, everyone in the world is running after word money (finance). Nothing is possible without money and economy and other financial operations including growth of this whole world are also dependent on the same. Without finance, no one can turn the wheel of economy at 360 degree, because each and every transaction needs money at its core. Amadou (2007). In the past, there was a system in use, which is barter system. To avoid its complications, ‘money- component of finance was introduced and as then, money has been the most precious thing of the world. It has become a need for every individual to fulfill the requirements. Money is the core object needed to establish a business. The most valuable source of this sort of money is the post laissez-faireization period is stock markets. In todays world, each and every individual can witness the appearance and acceptance of the capital markets in the period of Globalization. This is considered to be highly regarded as an award f or the globalization years to under developed regions to enlarge and reinforce their nitty-gritty as their financial crisis is gratified to an extent by these stock markets. Capital markets are also considered to be a profitable platform for firms to get financing for their new or forthcoming projects and moreover for people as a prospect to invest with chances of risk but huge profits. The establishment of such capital market is the most important aspect for companies and individuals. It is also a valuable state of the prerequisite of economy on the degree required in a contemporary varied economy. The subsistence of such markets persuades the existence of such arguments shaped in the hoisting of money can be transmitted. Current Situation â€Å"Thus if the ‘animal spirits are dimmed and the spontaneous optimism falters, leaving us to depend on nothing but a mathematical expectation, enterprise will fade and die;-though fears of loss may have basis no more reasonable than hopes of profit had before. . . . . . . But individual initiative will be adequate only when reasonable calculation is supplemented and supported by animal spirits. . . . . . . .† Keynes (1936). In the above quote, Keynes (1936) has very bluntly and accurately explained the reasons undercover of the current situation along with the entire humankind is getting exaggerated in our day in 1936 merely in one of his leading models. A few economists have also accepted in an extremely enjoyable method which it is not the object that the worth of our productivity has decreased or lowered but just only the animal feelings are fainted and what we were expecting is that the value of our capital market has boosted is wrong in comparison with the primordial epoch and regard as added rise in actual value improbable. And every financial system requires such â€Å"animal spirits† or the positive behavior along with the estimated threats and reserves to became visible and outshine and development. Since her independence, India was following the socialistic outline for growth, but after the 1990s financial crisis, India had to make some strict financial improvements as proposed by World Bank. The most vital factors of that package were financial liberalization. This financial change cemented a new way for India to boost its economy and make developments and gave India impulsive environment to the financial markets specifically in language of BSE BSE which is supposed to be solitary of the major components of Indias fiscal hike. These days, capital markets has considered to be the most valuable source to transform domestic savings to upcoming productive projects and provides a chance to the country to develop. Brigham (2008) According to a survey conducted in India, around two percent of the general populace is directly caught up in capital markets but when anything happens to such financial markets, it is the whole population which get affected, which clearly shows the correlation, impact and importance of these capital institutions and actual economy not only on the ground intensity but also bottomless within the main rank. In these days, newspapers are bombarded with such sort of news and major newspapers also issue supplement for financial news. Due to such releases, there is a little doubt that the macroeconomic news which is vital to capital market will be affected. In recent years, the whole financial market of the world had crashed and with the recession in capital market, a gap has been established which lead to decrease real economic fundamentals. Consequently, it also boosts the value of this study because the focal point of this downturn is considered to be the capital markets and if we consider it the other way, a nation can become economically strong by considering such markets. So, it can easily be said by any person that it seems to be that the stock prices will go up and would result in the formation of some talented analysts of upcoming values of macroeconomic pointers similar to productivity growth and price increases. If one takes this thoughts then this would definitely result in arose of two more questions that what will make the market create hyper boom and incorporation of capital market with other marketplaces. Agrawal (2008) The most suitable reply to be given to the earliest query is that the flow of information rise which has crowded the market, for instance, media (commerce news channels). Another rebellion that shocked the market is Information Technology. The shortage of skilled people in IT in the US has also become highly required after stocks due to their fantastic dough take home power. The other question which is creating a fuss is regarding the connection of such capital markets with the actual financial system. Different analysts have also studied regarding this theory and worked on this linkage. Ando and Modigliani (1963) developed a theory called life cycle theory which is based on the linkage between stock prices and actual spending. The theory talks about the individuals decisions and states that people mark their expenditure verdicts on the conventional life span earning, division of which might be detained in capital connecting to capital cost variation to variation in using up expenditure. Beck Levine (2001 2008) In the same manner, the linkage between capital costs and investment spending is supported by q theory. The q theory is designed by James Tobin (1969) to analyze the effect of stock prices on investment spending, where q stand for fraction of total retail worth of comapnies to the substitute value of their on hand capital market at recent stock prices. In addition, we had also discussed EMH model. With this research we have concluded that none of these theories fit into the actual and recent image of stock markets. Some fit partially but no one is perfectly related. To analyze such issues, there should be more research to be done on this for better understanding and the below paragraph communicates it in an improved way. â€Å"We should not conclude from this that everything depends on the waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cant depend on strict mathematical expectation, since the basis for making such calculation does not exist, and that it is not innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.† Keynes (1936). Structure of the Dissertation This study is stepped into five chapters and this is to be pointed that the register worth has been taken from all the factors. The first chapter thoroughly gives the overview of the current situation. The second chapter is based on the literatures related to our study. The third chapter comprises of a bunch of points and statistics and method considered in this analysis. The fourth chapter will explain the estimations and result analysis. Chapter five exemplifies the results, policy insinuations and boundaries of this analysis effort. Research Questions What is the relationship between stock market and macroeconomic variables in India? Is there an informal relationship between capital market and real economy? What is the influence of investment on financial health of India? CHAPTER II: LITERATURE REVIEW Introduction The word economics has emerged to be the most powerful word. Each and every individual is running after money and always try to earn as much as the one can within the shortest possible span. Without finance, no one can imagine running any sort of business and it has become an essential which runs the businesses and all the major features begin and finish at it. In recent world, the quickest and trouble-free way to earn money for new and challenging projects is to publicize or to enter into the stock markets where a little investment can make the wise firms accelerate and helps these firms to become giants amongst the other big names. Chauvet (2009) There are around two percent of the entire inhabitants in India which is caught up in stock markets but the whole population in India gets affected either directly or indirectly if anything good or bad occurs in such markets. This clearly shows that Capital Markets and Actual Economy both have strong and vital link on not just only the les ser stage but also on the higher stage. A number of studies and researches have been done in this regard but the outcomes are vague. The reason for this is that most of the researchers have found a tough bilateral linkage among capital markets and actual economy. On the other hand some researches have entirely rejected this analysis that stock markets and real economy are correlated. To study more deeply we can distribute numerous theories in 3 schools of thoughts on the ground of the literature review: first school of thought says that there is no linkage between capital market and real financial factors. The second school of thought has analyzed that there is an informal link among stock market and macro economic variable. The last one which is third school of thought promulgates an unclear belief that there is a relation between the two but not positively in both short and long run. Pindyck (2004) This research is comprised of some on hand literature which has been reviewed relating to the above problems. Below we have discussed the overall findings of different researchers. First School of Thought Chowhan, P.K. et al. (2000) The first school of thought attempted to obtain reasons for hurly-burly in capital market in small period in India considering BSE as the major indicator. In the period from 2008-2000, capital markets in India had shown irregular and unstable activities which does not go with the information provided to them. Due to the severe up and down in the stock prices, the investor confidence resulted in turmoil in the markets. The school of thought tried to explain that what could be the actual causes at the back of instability and what made Efficient Market Hypothesis (EMH) by Fama cant explain the reason. The researchers attempted to find out the reason of such huge rise in BSE stock value. On October 2008, BSE was at 2761 and in February 2000 it went at 6000, which shows 117% appraisal in just 15 months, which is not powerfully maintained by basic financial factors in this era because Indian economy boosted just only 5.9% in 2009-2000. On the other hand, the cor porate profit raised by 32%while the accumulated growth rate for industrial production during Apr-Dec 2009 was reported to be 6.2%. The rate of inflation in September 2008 was 8.8% while in 2009-2000 it has also jumped down to 2.9%. This research shows that long run financial factors such fluctuations in stock prices. Indias GDP in addition did not prove any hike in the past years. Not only India was affected with this situation but also other countries as well. The economists found some reasons to create a boost in Indian stock markets, they are: Information hike; IT impact; Internet fable; Feedback outcome; Cultural alteration. Another economist Sarkar, P. (2007) states that if there exists any significant correlation between growth and capital accretion, they have to use yearly information on numerous financial factors like, insignificant and actual share price, capital market turnover, companies which are stock market members, fixed stock structure and enlargement of actual GDP and production results. Despite, all the researchers tell the same thing from 2000-1951 till 2005, there are no correlation actual and capital market variables neither in short nor in long run. In addition, Sarkar also researched new movements and came to a conclusion that most of the financial variables are unstable and comprised of an upswing movement in mid 1970s. The tactics used in this thesis to get the best possible results is Unit Root tests. These tests are used to obtain a fixed and worthy degeneration analysis. Besides these studies, OLS and MLE approaches are also utilized for determining the sequence of auto-linkage of the remaining and handling with it. To estimate long-term and short-term relationships in a better manner, ECM and Autoregressive Distributed Lag (ADRL) respectively are used in this thesis. Shiller, R. (1990), an economist of University of Yale, had researched and tried to compare the normal meager compound Capital Price Index from 1871-2000. He concluded that the capital price instability is not compared by the profits. Second School of Thought In 2001, Black tried to elaborate the interlinkage between the U.S. capital costs and real economic variables. Black gathered 54 year periodical data and along with it used VAR model supported by hypothetical structure to study relationship between capital prices and macro financial variables. With the lime light on actual results and considering current value approach, Black found that the basic price-output ratio and the basic capital price in the light of various suppositions relating to time variation of income, and to contrast such values to the real data. Black studies 3 situations, in the first one, he initiated supposing that the individuals expect fixed return as being the wealth holder and then support this supposition by first, permitting the undisruptive rate to differ in due course and next the risk payment to be time changeable. Although there is a variation in models results, most mean that the capital market has comparatively been overestimated in comparison with its value expected from growth rates. According to reports, the ratio of stock market capitalization with GDP has boosted to be thrice as compared to last twenty five years in the US. From this figure, in mid 1970s less than 30% and in 1990s it was 80%. The point which is to be noted here is that it does not only seem that the capital market has risen in 1990s but its link with the actual finances has turned out to be well-built and due to which it got accredited. As per the records, capital market has been associated with actual financial variables by numerous tech niques, out of which one of them is asset costing perception in which Arbitrage Pricing Theory is second-hand as structure to analyze the impacts of actual economic measures on capital costs concentrating on the question that will the risk allied with a few real financial variables is replicated in probable asset takings. On the other hand, there also exists expenditure-CAPM study of expenditure which deliberates on a particular real factor power. There are other researches also conducted to analyze the relation between capital prices and investment when stock prices hide the actual economy which can be doled out with. In recent times, a lot of researches have aroused analyzing the mutual linkage between capital worth and actual financial factors with VAR models as the structure, devoid of any particular hypothetical formation. Bulmash (2003) has done a very distinctive analysis to elaborate the interaction between company investments and stock markets. He also studied that how investments affect stock markets and vice versa. This theory also reflects how investments respond faster than customers in capital markets. In his previous researches, Bulmash showed that what makes one capital market to get boosted just by the difference in returns of economies. And finally results in unity of this income fetch the stock into association in the long term. It has also been proved that what makes these stock markets covert into analysts of the future financial flows. It has also showed the linkage between capital investment markets and actual financial variables through a system that value of capital market will boost when: Firms increase their investment to enlarge their operations which will increase the GDP. With the increase in capital, actual capital also amplifies because buyers also raise their expenses which accelerate GDP. Such points will result in worth formation which will lead to real economy. Third School of Thought A renowned economist, Mustafa in 2007 has done an analysis on the linkage between capital market and actual financial market in Pakistan. For his study, he took a number of economic variables like, per capita GDP, productivity growth and capital market liquidity, volume of capital market highlighting the financial Market. He took up co-amalgamation and Error Correction Model method to set up the pragmatic link, if any among the two from 1980-2004. The probable outcomes points that the activities in the capital market of Pakistan elaborate the per capita GDP and productivity growth for small period only. On the other side, financial growth variables elaborates capital market factors in nearby as well as in long term which shows that the enlargement of capital market relies on by and large development of economy in Pakistan. The economy of Pakistan had not been affected by the acceleration in Karachi Stock Exchange which signifies that the elevated instability is not out of the ordinary of the up-and-coming stock markets. The previous theories related to this subject used stock prices as capital market movement sign and utilization, price rises, industrial output, financial flow, rate of interest as real financial factor. Mustafas theory is quite different from others work because the variables are different as used by others. The analyst have come to a conclusion on the basis of empirical results that in Pakistan the stock mark et is way behind and it needs to develop to be vital in the economy of Pakistan with the help of other financial institutions. In any nations economic growth, capital markets play an important role but capital market is inactive in the growth of a nation unless it is in its emergent stage. Another big name amongst economists is Hussain, F (2010). He also studied about the linkage among stock price and actual economy of Pakistan. He gathered data from 1959 till 2004 or 2005. After getting data, he distributed it in 2 halves, which are pre and post liberalization and with the help of this activity he analyzed the linkage between stock price and actual economy by applying different econometric tactics like ECM, Engle-Granger co- integrating regressions and Augmented Dickey Fuller (ADF) Unit Root tests. The delay period was decided in all the cases on the foundation of the two, i.e., Final Prediction Error and Akaike Information Criteria (AIC). By applying such techniques Hussain examined that there exists long term linkage between capital worth and actual financial factors. On the subject of the causal section, he has brought into being unilateral grounds from actual market to stock costs. This highlights that the stock markets in Pakistan are yet in a developing stage. They have not got developed to influence the actual variables of economy and because of that they cannot be considered as most important sign of the monetary activity. It means that Government of Pakistan can utilize actual sector to power the capital market. Another study observes that in India, the incorporation between Foreign Exchange and Stock market in liberalization period. The researchers tried their level best to find out the link flanked by Foreign Exchange and Stock market by using goods market approach and portfolio balance approach. To narrow the research, they have used a number of econometric techniques Grangers causality test in VAR structure, which is supported by F-Test to test this theory; and to examine such chains for immobility, ADF Unit Root Test is useful. One more econometric test is applied which is Gwekes Measures for the degree of business center amalgamation. But the point is that this study gave new outcomes which are totally different. The previous examinations reveal that there exists an informal linkage among income in foreign exchange and stock markets. While as per the final analysis, there is a high extent of assimilation among foreign exchange and capital markets and there is still two dimensional as w ell as simultaneous informal linkages between foreign exchange and stock markets. Figlewski (2001) Out of one of the many various kinds of papers written by Brenner, M., et al. (2010) have studied the nearby prevision and reaction of U.S. stocks, treasury bonds, and commercial bond places to the initial public announcement of major macroeconomic bulletin on employment, inflation, and interest rates. Four essential set of queries have been examined under this study. These are listed below: Whether these traded assets in the markets are more responsive to instability prior to release of these public announcements or less impulsive in nature afterwards? Are various asset class influenced in a different way by these public announcements? Is the prevailing degree of correlation between various assets being affected by these macroeconomic announcements? Do the influences of such public announcements occur solely due to their unanticipated mechanism or is the reaction happening in congruence to the predictable information? In response to the above stated queries, they have under taken a number of day to day, incessantly compounded surplus waiting-phase profits on the three major asset categories, namely; stocks, reserves bonds, and shared bonds. Koutsoyiannis (2004) What differentiates this research in contrast to the prior researches of its various types is the investigation of impact of major macroeconomic news on the cooperative allocation of returns in three different financial souks. Surveys and potential data have also been used to dig out the unforeseen mechanism of this information. Furthermore affect of these news bulletins on both the profits generated out of the three categories of assets, as well as their instability and connection is also a part of the analysis. To understand the flexibility of univariate GARCH model instead of containing the intricacy of the multivariate GARCH model, Dynamic Conditional Correlation (DCC) model by Engle (2002) has been taken under study. In view of this research they have come up to the conclusion that the information pertaining to the macroeconomic bulletins is considered to have a rather statistically momentous and economically considerable influence over the financial markets of US. Also this significant impact differs to a great extent across asset categories. Therefore it analyzes a multifaceted picture of interaction between the returns on asset in propinquity of public announcements or bulletins. In short a powerful correlation exists amid the actual economy and money markets of the U.S. With the help of a bivariate GARCH framework, Sarkar, A., et al. (2009), have been able to analyze whether the possibility of positive provisional relationship exists among capital profits and spending or not, even though the existence of absolute correlation is not evident in the case of G7 countries. A monthly statistics of approximately forty years have been considered for the United States and for other countries, quarterly data has been taken into consideration. They have witnessed strong evidence with respect to the existence of positive and considerable uncertain link among advancement in spending increase and capital profits. The hypothesis could not be verified and have been disregarded incase of 6 of the G7 countries as the correlation appears to be constant in nature for them. In relation to the above they have reached to a conclusion which proposes that the response of the policy incase when the stock markets performance is signifying better results than expected, may need to have a stronger policy than the usual. But when the market conditions turn out to be on the extreme that is either in a positive condition or a negative one, additional effects on the policy shouldnt have an impact by them.In this manner they have worked hard to establish a signifying linkage among capital market and actual economy and what effect does the capital market has on the actual economy. Another economist, Chauvet, M. (2009), has compiled his work upon establishing an active linkage among capital market variations and the trade cycle. It is of the believe that the movements in the stock market is being reflected by the various positions held up by the participants of the market on the basis of their assessment pertaining to the present condition of the economy. With the help of the on hand financial variables, in this thesis, the researcher has tried to explore the likelihood of envisaging the key rotating spots of the business series. A model has been proposed by Chauvet (2009) that facilitates in generating the predicted key rotating spots of the business series with the help of the trade cycle factor. It also assists in anticipating these predicted turning points pertaining to the trade cycle with the help of the stock market factor. The author; Chauvet, M. (2009) also suggests in this paper, an indicator of the stock market named as the stock market indicator (SM I). With the help of various series of financials, the stock market indicator (SMI) financially assists in the anticipation of essential rotating spots of the business series better in comparison to its individual components. This indicates that the SMI model is by far a better alternative to be used as a tool in anticipating the essential turning points of the trade cycle. Besides that, SMI can also be evaluated by the month end, which highlights the latest information for that particular month of the year. In contrast the CLI model only highlights information pertaining to the preceding month. Therefore the underlying structure suggested by Chauvet, M. (2009), is utilized to study and explore the characteristics of the stock market activities in predicting the trade cycles, particularly the beginning of the recession as a result of which it establishes a strong correlation and one way causal relationship between stock market and the real economy. Monthly data has been taken into c onsideration by the author from 1954-1994, in studying the economic and financial variables. The name of the economic variables used is: industrial production, manufacturing and trade sales from 1982, non-agricultural civilian employment, and the sum of individual income minus the transfer of payments from 1987. The author has taken into account a number of other variables for the stock market factor, these variables reveal general facts and figures pertaining to the current situation of the financial environment, for example; the amendments in the SP 500 PE ratio, surplus stock returns, 3-month Treasury bill rate and SP 500 dividend yield. A two state Markov process has to b followed by each of the factors discussed above. These factors depict various phases of the trade cycle. All of the factors are of the permission to change asynchronously in due course of time. Brenner, M., et al. (2010) throughout writing this paper have analyzed and examined the deep seated roots that are linked to the financial markets and the real economy. They have also examined the first public news pertaining to information of US macro economy to the short term anticipation and reaction of US stock, Treasury and Corporate Bond. The focus has been primarily placed upon studying the influence of these announcements on not just only on the different levels of those asset returns, but also upon the unpredictability and cooperative changes of those asset returns. The procedure of how the price arrangement takes place in relation to the macroeconomic news for the three major segments of the market that is stocks, government bonds and corporate bonds nad has also been explored by them. While carrying out the research on the underlying variables they have come across 4 important issues: In relation to the first release of the announcements, what impact would these announcements have on the asset returns and the volatility of these asset returns? Does the affect of these announcements differ in their impact in different ways for the various asset classes? Is the current degree of correlation that exists between different asset classes are significantly affected by this news? Is the reaction to the predicted information or the unexpected components of these news driving the impact created by these news releases? Having the flexibility of univariate GARCH model as opposed to the complex nature of the multivariate GARCH specifications, DCC Stock Market and Macroeconomic Variables in India Stock Market and Macroeconomic Variables in India Chapter I: INTRODUCTION Overview Investment is dependent on human behavior. Keynes (1936) elaborates which sort of behavior humans adopt while investing particularly in capital market. Usually people get in use with their â€Å"animal feelings† and â€Å"flock mentality†. Economic and social and political environment also affects the opinion of people and they force them to think several times before investing. This is the reason one cannot forget the fact that the value of economic activities and information nourished to the market is vital. Here we are going to discuss the tendency of animal spirit in India. The propensity of animal spirit in India is very much high-flying. The major reason for this is that only 2% of the population of India participates in such activities. The medium to get knowledge of market and accuracy in information is not available easily. This forces people to act as per their nature rather than their logic. The core theme of this analysis is the study of interrelation betwee n real economic variables and capital market variables. The significance of this relationship has got marvelous recognition in the past due to roller-coaster ride of the BSE. A few academics also claim that it is not greatly shored up by the financial basics. To determine the character of these basics in studying the stock prices, different people have done different researches. Amidst of these thoughts, some fundamentalists have tailored theory of Efficient Market Hypothesis (EMH). This theory was further extended by Fama in 1971 to narrow and categorize such business centers on the foundation of their response and data nourished to them in feeble, partially built and well-built markets. Another theory which is Popular Model Theory shows a different perspective in general. This theory explains the qualitative clarification of price which shows that most of the people proceed inappropriately to the information which they get and easily accessible information is not included in stock market price as Efficient Market Hypothesis verifies which is also much analogous to Keynes model. These days, everyone in the world is running after word money (finance). Nothing is possible without money and economy and other financial operations including growth of this whole world are also dependent on the same. Without finance, no one can turn the wheel of economy at 360 degree, because each and every transaction needs money at its core. Amadou (2007). In the past, there was a system in use, which is barter system. To avoid its complications, ‘money- component of finance was introduced and as then, money has been the most precious thing of the world. It has become a need for every individual to fulfill the requirements. Money is the core object needed to establish a business. The most valuable source of this sort of money is the post laissez-faireization period is stock markets. In todays world, each and every individual can witness the appearance and acceptance of the capital markets in the period of Globalization. This is considered to be highly regarded as an award f or the globalization years to under developed regions to enlarge and reinforce their nitty-gritty as their financial crisis is gratified to an extent by these stock markets. Capital markets are also considered to be a profitable platform for firms to get financing for their new or forthcoming projects and moreover for people as a prospect to invest with chances of risk but huge profits. The establishment of such capital market is the most important aspect for companies and individuals. It is also a valuable state of the prerequisite of economy on the degree required in a contemporary varied economy. The subsistence of such markets persuades the existence of such arguments shaped in the hoisting of money can be transmitted. Current Situation â€Å"Thus if the ‘animal spirits are dimmed and the spontaneous optimism falters, leaving us to depend on nothing but a mathematical expectation, enterprise will fade and die;-though fears of loss may have basis no more reasonable than hopes of profit had before. . . . . . . But individual initiative will be adequate only when reasonable calculation is supplemented and supported by animal spirits. . . . . . . .† Keynes (1936). In the above quote, Keynes (1936) has very bluntly and accurately explained the reasons undercover of the current situation along with the entire humankind is getting exaggerated in our day in 1936 merely in one of his leading models. A few economists have also accepted in an extremely enjoyable method which it is not the object that the worth of our productivity has decreased or lowered but just only the animal feelings are fainted and what we were expecting is that the value of our capital market has boosted is wrong in comparison with the primordial epoch and regard as added rise in actual value improbable. And every financial system requires such â€Å"animal spirits† or the positive behavior along with the estimated threats and reserves to became visible and outshine and development. Since her independence, India was following the socialistic outline for growth, but after the 1990s financial crisis, India had to make some strict financial improvements as proposed by World Bank. The most vital factors of that package were financial liberalization. This financial change cemented a new way for India to boost its economy and make developments and gave India impulsive environment to the financial markets specifically in language of BSE BSE which is supposed to be solitary of the major components of Indias fiscal hike. These days, capital markets has considered to be the most valuable source to transform domestic savings to upcoming productive projects and provides a chance to the country to develop. Brigham (2008) According to a survey conducted in India, around two percent of the general populace is directly caught up in capital markets but when anything happens to such financial markets, it is the whole population which get affected, which clearly shows the correlation, impact and importance of these capital institutions and actual economy not only on the ground intensity but also bottomless within the main rank. In these days, newspapers are bombarded with such sort of news and major newspapers also issue supplement for financial news. Due to such releases, there is a little doubt that the macroeconomic news which is vital to capital market will be affected. In recent years, the whole financial market of the world had crashed and with the recession in capital market, a gap has been established which lead to decrease real economic fundamentals. Consequently, it also boosts the value of this study because the focal point of this downturn is considered to be the capital markets and if we consider it the other way, a nation can become economically strong by considering such markets. So, it can easily be said by any person that it seems to be that the stock prices will go up and would result in the formation of some talented analysts of upcoming values of macroeconomic pointers similar to productivity growth and price increases. If one takes this thoughts then this would definitely result in arose of two more questions that what will make the market create hyper boom and incorporation of capital market with other marketplaces. Agrawal (2008) The most suitable reply to be given to the earliest query is that the flow of information rise which has crowded the market, for instance, media (commerce news channels). Another rebellion that shocked the market is Information Technology. The shortage of skilled people in IT in the US has also become highly required after stocks due to their fantastic dough take home power. The other question which is creating a fuss is regarding the connection of such capital markets with the actual financial system. Different analysts have also studied regarding this theory and worked on this linkage. Ando and Modigliani (1963) developed a theory called life cycle theory which is based on the linkage between stock prices and actual spending. The theory talks about the individuals decisions and states that people mark their expenditure verdicts on the conventional life span earning, division of which might be detained in capital connecting to capital cost variation to variation in using up expenditure. Beck Levine (2001 2008) In the same manner, the linkage between capital costs and investment spending is supported by q theory. The q theory is designed by James Tobin (1969) to analyze the effect of stock prices on investment spending, where q stand for fraction of total retail worth of comapnies to the substitute value of their on hand capital market at recent stock prices. In addition, we had also discussed EMH model. With this research we have concluded that none of these theories fit into the actual and recent image of stock markets. Some fit partially but no one is perfectly related. To analyze such issues, there should be more research to be done on this for better understanding and the below paragraph communicates it in an improved way. â€Å"We should not conclude from this that everything depends on the waves of irrational psychology. On the contrary, the state of long-term expectation is often steady, and, even when it is not, the other factors exert their compensating effects. We are merely reminding ourselves that human decisions affecting the future, whether personal or political or economic, cant depend on strict mathematical expectation, since the basis for making such calculation does not exist, and that it is not innate urge to activity which makes the wheels go round, our rational selves choosing between the alternatives as best we are able, calculating where we can, but often falling back for our motive on whim or sentiment or chance.† Keynes (1936). Structure of the Dissertation This study is stepped into five chapters and this is to be pointed that the register worth has been taken from all the factors. The first chapter thoroughly gives the overview of the current situation. The second chapter is based on the literatures related to our study. The third chapter comprises of a bunch of points and statistics and method considered in this analysis. The fourth chapter will explain the estimations and result analysis. Chapter five exemplifies the results, policy insinuations and boundaries of this analysis effort. Research Questions What is the relationship between stock market and macroeconomic variables in India? Is there an informal relationship between capital market and real economy? What is the influence of investment on financial health of India? CHAPTER II: LITERATURE REVIEW Introduction The word economics has emerged to be the most powerful word. Each and every individual is running after money and always try to earn as much as the one can within the shortest possible span. Without finance, no one can imagine running any sort of business and it has become an essential which runs the businesses and all the major features begin and finish at it. In recent world, the quickest and trouble-free way to earn money for new and challenging projects is to publicize or to enter into the stock markets where a little investment can make the wise firms accelerate and helps these firms to become giants amongst the other big names. Chauvet (2009) There are around two percent of the entire inhabitants in India which is caught up in stock markets but the whole population in India gets affected either directly or indirectly if anything good or bad occurs in such markets. This clearly shows that Capital Markets and Actual Economy both have strong and vital link on not just only the les ser stage but also on the higher stage. A number of studies and researches have been done in this regard but the outcomes are vague. The reason for this is that most of the researchers have found a tough bilateral linkage among capital markets and actual economy. On the other hand some researches have entirely rejected this analysis that stock markets and real economy are correlated. To study more deeply we can distribute numerous theories in 3 schools of thoughts on the ground of the literature review: first school of thought says that there is no linkage between capital market and real financial factors. The second school of thought has analyzed that there is an informal link among stock market and macro economic variable. The last one which is third school of thought promulgates an unclear belief that there is a relation between the two but not positively in both short and long run. Pindyck (2004) This research is comprised of some on hand literature which has been reviewed relating to the above problems. Below we have discussed the overall findings of different researchers. First School of Thought Chowhan, P.K. et al. (2000) The first school of thought attempted to obtain reasons for hurly-burly in capital market in small period in India considering BSE as the major indicator. In the period from 2008-2000, capital markets in India had shown irregular and unstable activities which does not go with the information provided to them. Due to the severe up and down in the stock prices, the investor confidence resulted in turmoil in the markets. The school of thought tried to explain that what could be the actual causes at the back of instability and what made Efficient Market Hypothesis (EMH) by Fama cant explain the reason. The researchers attempted to find out the reason of such huge rise in BSE stock value. On October 2008, BSE was at 2761 and in February 2000 it went at 6000, which shows 117% appraisal in just 15 months, which is not powerfully maintained by basic financial factors in this era because Indian economy boosted just only 5.9% in 2009-2000. On the other hand, the cor porate profit raised by 32%while the accumulated growth rate for industrial production during Apr-Dec 2009 was reported to be 6.2%. The rate of inflation in September 2008 was 8.8% while in 2009-2000 it has also jumped down to 2.9%. This research shows that long run financial factors such fluctuations in stock prices. Indias GDP in addition did not prove any hike in the past years. Not only India was affected with this situation but also other countries as well. The economists found some reasons to create a boost in Indian stock markets, they are: Information hike; IT impact; Internet fable; Feedback outcome; Cultural alteration. Another economist Sarkar, P. (2007) states that if there exists any significant correlation between growth and capital accretion, they have to use yearly information on numerous financial factors like, insignificant and actual share price, capital market turnover, companies which are stock market members, fixed stock structure and enlargement of actual GDP and production results. Despite, all the researchers tell the same thing from 2000-1951 till 2005, there are no correlation actual and capital market variables neither in short nor in long run. In addition, Sarkar also researched new movements and came to a conclusion that most of the financial variables are unstable and comprised of an upswing movement in mid 1970s. The tactics used in this thesis to get the best possible results is Unit Root tests. These tests are used to obtain a fixed and worthy degeneration analysis. Besides these studies, OLS and MLE approaches are also utilized for determining the sequence of auto-linkage of the remaining and handling with it. To estimate long-term and short-term relationships in a better manner, ECM and Autoregressive Distributed Lag (ADRL) respectively are used in this thesis. Shiller, R. (1990), an economist of University of Yale, had researched and tried to compare the normal meager compound Capital Price Index from 1871-2000. He concluded that the capital price instability is not compared by the profits. Second School of Thought In 2001, Black tried to elaborate the interlinkage between the U.S. capital costs and real economic variables. Black gathered 54 year periodical data and along with it used VAR model supported by hypothetical structure to study relationship between capital prices and macro financial variables. With the lime light on actual results and considering current value approach, Black found that the basic price-output ratio and the basic capital price in the light of various suppositions relating to time variation of income, and to contrast such values to the real data. Black studies 3 situations, in the first one, he initiated supposing that the individuals expect fixed return as being the wealth holder and then support this supposition by first, permitting the undisruptive rate to differ in due course and next the risk payment to be time changeable. Although there is a variation in models results, most mean that the capital market has comparatively been overestimated in comparison with its value expected from growth rates. According to reports, the ratio of stock market capitalization with GDP has boosted to be thrice as compared to last twenty five years in the US. From this figure, in mid 1970s less than 30% and in 1990s it was 80%. The point which is to be noted here is that it does not only seem that the capital market has risen in 1990s but its link with the actual finances has turned out to be well-built and due to which it got accredited. As per the records, capital market has been associated with actual financial variables by numerous tech niques, out of which one of them is asset costing perception in which Arbitrage Pricing Theory is second-hand as structure to analyze the impacts of actual economic measures on capital costs concentrating on the question that will the risk allied with a few real financial variables is replicated in probable asset takings. On the other hand, there also exists expenditure-CAPM study of expenditure which deliberates on a particular real factor power. There are other researches also conducted to analyze the relation between capital prices and investment when stock prices hide the actual economy which can be doled out with. In recent times, a lot of researches have aroused analyzing the mutual linkage between capital worth and actual financial factors with VAR models as the structure, devoid of any particular hypothetical formation. Bulmash (2003) has done a very distinctive analysis to elaborate the interaction between company investments and stock markets. He also studied that how investments affect stock markets and vice versa. This theory also reflects how investments respond faster than customers in capital markets. In his previous researches, Bulmash showed that what makes one capital market to get boosted just by the difference in returns of economies. And finally results in unity of this income fetch the stock into association in the long term. It has also been proved that what makes these stock markets covert into analysts of the future financial flows. It has also showed the linkage between capital investment markets and actual financial variables through a system that value of capital market will boost when: Firms increase their investment to enlarge their operations which will increase the GDP. With the increase in capital, actual capital also amplifies because buyers also raise their expenses which accelerate GDP. Such points will result in worth formation which will lead to real economy. Third School of Thought A renowned economist, Mustafa in 2007 has done an analysis on the linkage between capital market and actual financial market in Pakistan. For his study, he took a number of economic variables like, per capita GDP, productivity growth and capital market liquidity, volume of capital market highlighting the financial Market. He took up co-amalgamation and Error Correction Model method to set up the pragmatic link, if any among the two from 1980-2004. The probable outcomes points that the activities in the capital market of Pakistan elaborate the per capita GDP and productivity growth for small period only. On the other side, financial growth variables elaborates capital market factors in nearby as well as in long term which shows that the enlargement of capital market relies on by and large development of economy in Pakistan. The economy of Pakistan had not been affected by the acceleration in Karachi Stock Exchange which signifies that the elevated instability is not out of the ordinary of the up-and-coming stock markets. The previous theories related to this subject used stock prices as capital market movement sign and utilization, price rises, industrial output, financial flow, rate of interest as real financial factor. Mustafas theory is quite different from others work because the variables are different as used by others. The analyst have come to a conclusion on the basis of empirical results that in Pakistan the stock mark et is way behind and it needs to develop to be vital in the economy of Pakistan with the help of other financial institutions. In any nations economic growth, capital markets play an important role but capital market is inactive in the growth of a nation unless it is in its emergent stage. Another big name amongst economists is Hussain, F (2010). He also studied about the linkage among stock price and actual economy of Pakistan. He gathered data from 1959 till 2004 or 2005. After getting data, he distributed it in 2 halves, which are pre and post liberalization and with the help of this activity he analyzed the linkage between stock price and actual economy by applying different econometric tactics like ECM, Engle-Granger co- integrating regressions and Augmented Dickey Fuller (ADF) Unit Root tests. The delay period was decided in all the cases on the foundation of the two, i.e., Final Prediction Error and Akaike Information Criteria (AIC). By applying such techniques Hussain examined that there exists long term linkage between capital worth and actual financial factors. On the subject of the causal section, he has brought into being unilateral grounds from actual market to stock costs. This highlights that the stock markets in Pakistan are yet in a developing stage. They have not got developed to influence the actual variables of economy and because of that they cannot be considered as most important sign of the monetary activity. It means that Government of Pakistan can utilize actual sector to power the capital market. Another study observes that in India, the incorporation between Foreign Exchange and Stock market in liberalization period. The researchers tried their level best to find out the link flanked by Foreign Exchange and Stock market by using goods market approach and portfolio balance approach. To narrow the research, they have used a number of econometric techniques Grangers causality test in VAR structure, which is supported by F-Test to test this theory; and to examine such chains for immobility, ADF Unit Root Test is useful. One more econometric test is applied which is Gwekes Measures for the degree of business center amalgamation. But the point is that this study gave new outcomes which are totally different. The previous examinations reveal that there exists an informal linkage among income in foreign exchange and stock markets. While as per the final analysis, there is a high extent of assimilation among foreign exchange and capital markets and there is still two dimensional as w ell as simultaneous informal linkages between foreign exchange and stock markets. Figlewski (2001) Out of one of the many various kinds of papers written by Brenner, M., et al. (2010) have studied the nearby prevision and reaction of U.S. stocks, treasury bonds, and commercial bond places to the initial public announcement of major macroeconomic bulletin on employment, inflation, and interest rates. Four essential set of queries have been examined under this study. These are listed below: Whether these traded assets in the markets are more responsive to instability prior to release of these public announcements or less impulsive in nature afterwards? Are various asset class influenced in a different way by these public announcements? Is the prevailing degree of correlation between various assets being affected by these macroeconomic announcements? Do the influences of such public announcements occur solely due to their unanticipated mechanism or is the reaction happening in congruence to the predictable information? In response to the above stated queries, they have under taken a number of day to day, incessantly compounded surplus waiting-phase profits on the three major asset categories, namely; stocks, reserves bonds, and shared bonds. Koutsoyiannis (2004) What differentiates this research in contrast to the prior researches of its various types is the investigation of impact of major macroeconomic news on the cooperative allocation of returns in three different financial souks. Surveys and potential data have also been used to dig out the unforeseen mechanism of this information. Furthermore affect of these news bulletins on both the profits generated out of the three categories of assets, as well as their instability and connection is also a part of the analysis. To understand the flexibility of univariate GARCH model instead of containing the intricacy of the multivariate GARCH model, Dynamic Conditional Correlation (DCC) model by Engle (2002) has been taken under study. In view of this research they have come up to the conclusion that the information pertaining to the macroeconomic bulletins is considered to have a rather statistically momentous and economically considerable influence over the financial markets of US. Also this significant impact differs to a great extent across asset categories. Therefore it analyzes a multifaceted picture of interaction between the returns on asset in propinquity of public announcements or bulletins. In short a powerful correlation exists amid the actual economy and money markets of the U.S. With the help of a bivariate GARCH framework, Sarkar, A., et al. (2009), have been able to analyze whether the possibility of positive provisional relationship exists among capital profits and spending or not, even though the existence of absolute correlation is not evident in the case of G7 countries. A monthly statistics of approximately forty years have been considered for the United States and for other countries, quarterly data has been taken into consideration. They have witnessed strong evidence with respect to the existence of positive and considerable uncertain link among advancement in spending increase and capital profits. The hypothesis could not be verified and have been disregarded incase of 6 of the G7 countries as the correlation appears to be constant in nature for them. In relation to the above they have reached to a conclusion which proposes that the response of the policy incase when the stock markets performance is signifying better results than expected, may need to have a stronger policy than the usual. But when the market conditions turn out to be on the extreme that is either in a positive condition or a negative one, additional effects on the policy shouldnt have an impact by them.In this manner they have worked hard to establish a signifying linkage among capital market and actual economy and what effect does the capital market has on the actual economy. Another economist, Chauvet, M. (2009), has compiled his work upon establishing an active linkage among capital market variations and the trade cycle. It is of the believe that the movements in the stock market is being reflected by the various positions held up by the participants of the market on the basis of their assessment pertaining to the present condition of the economy. With the help of the on hand financial variables, in this thesis, the researcher has tried to explore the likelihood of envisaging the key rotating spots of the business series. A model has been proposed by Chauvet (2009) that facilitates in generating the predicted key rotating spots of the business series with the help of the trade cycle factor. It also assists in anticipating these predicted turning points pertaining to the trade cycle with the help of the stock market factor. The author; Chauvet, M. (2009) also suggests in this paper, an indicator of the stock market named as the stock market indicator (SM I). With the help of various series of financials, the stock market indicator (SMI) financially assists in the anticipation of essential rotating spots of the business series better in comparison to its individual components. This indicates that the SMI model is by far a better alternative to be used as a tool in anticipating the essential turning points of the trade cycle. Besides that, SMI can also be evaluated by the month end, which highlights the latest information for that particular month of the year. In contrast the CLI model only highlights information pertaining to the preceding month. Therefore the underlying structure suggested by Chauvet, M. (2009), is utilized to study and explore the characteristics of the stock market activities in predicting the trade cycles, particularly the beginning of the recession as a result of which it establishes a strong correlation and one way causal relationship between stock market and the real economy. Monthly data has been taken into c onsideration by the author from 1954-1994, in studying the economic and financial variables. The name of the economic variables used is: industrial production, manufacturing and trade sales from 1982, non-agricultural civilian employment, and the sum of individual income minus the transfer of payments from 1987. The author has taken into account a number of other variables for the stock market factor, these variables reveal general facts and figures pertaining to the current situation of the financial environment, for example; the amendments in the SP 500 PE ratio, surplus stock returns, 3-month Treasury bill rate and SP 500 dividend yield. A two state Markov process has to b followed by each of the factors discussed above. These factors depict various phases of the trade cycle. All of the factors are of the permission to change asynchronously in due course of time. Brenner, M., et al. (2010) throughout writing this paper have analyzed and examined the deep seated roots that are linked to the financial markets and the real economy. They have also examined the first public news pertaining to information of US macro economy to the short term anticipation and reaction of US stock, Treasury and Corporate Bond. The focus has been primarily placed upon studying the influence of these announcements on not just only on the different levels of those asset returns, but also upon the unpredictability and cooperative changes of those asset returns. The procedure of how the price arrangement takes place in relation to the macroeconomic news for the three major segments of the market that is stocks, government bonds and corporate bonds nad has also been explored by them. While carrying out the research on the underlying variables they have come across 4 important issues: In relation to the first release of the announcements, what impact would these announcements have on the asset returns and the volatility of these asset returns? Does the affect of these announcements differ in their impact in different ways for the various asset classes? Is the current degree of correlation that exists between different asset classes are significantly affected by this news? Is the reaction to the predicted information or the unexpected components of these news driving the impact created by these news releases? Having the flexibility of univariate GARCH model as opposed to the complex nature of the multivariate GARCH specifications, DCC

Impacts Of Tourism On Natural Environment Tourism Essay

Impacts Of Tourism On Natural Environment Tourism Essay How is tourism related to the natural environment? Discuss ways in which environmental conservation can be enhanced through tourism. Tourism and Environment: An Introduction Before elaborating the relativity of Tourism and Environment, it is necessary to understand both terms individually. Relativity is to distinguish contrast and characterise between two different values for understanding their dependability upon each other. Tourism: Tourism is now a phenomenon, not just a simple holiday activity. It also has to be considered that tourism and tourist are two different characteristics. Approaches differentiate accordingly and it can be defined according to both understandings: It [tourism] is a human activity which encompasses human behaviour, use of resources, and interaction with other people, economies and environments. Bull, 1991:1 cited in Holden, A. (2008). From mentioned definition tourism is mainly focused on natural or social aspects, where author has examined tourism on the basis of environmental characteristics. Another understanding could be from the perspective of a visitor or tourist, again I would like to mention a definition from Holdens writing; where he used another authors definition to differentiate from the previous point of view. Tourism as: an attitude to the world or a way of seeing the world, not necessarily what we find only at the end of a long and arduous journey Franklin, 2003:33 cited in Holden, A. (2008). This definition is from the perspective of a tourist as a single entity and more individualistic. Here personal experience is more valuable for a consumer. Tourism is not a very old study for world but travel defiantly is. Tourism is more of gaining an exceptional experience than a regular living, while travel can consists of various reasons behind it. But according to Hunter and Green (1995, pp: 1) There is no universally accepted definition of tourism. This is not surprising, since what constitutes a tourist and the tourism industry are still matters of debate. Environment: In terms of tourism, Environment is always understood as a nature or atmosphere of a destination or a place which is used for tourism. Nature consists of mountains, water resources such as sea side, sea, rivers, waterfalls etc. Green environment includes plants, forests, parks, rainforests, safaris etc. when elaborated to wilderness it consists wild life, animals, forest species and so on. Socially; heritage sites or cultural uniqueness is also a part of an environment. In environmental studies it has commonly been assumed that there exists a fundamental connection between a societys management of natural resources and its perception of nature. Brunn and Kalland (1995:1) cited in Holden, A. (2008). Environmental studies and explanations are vast and distributions of its characteristics are crucial. If we look at it from a different perspective it seems environment consists of whole world (living or non living beings) including humans, animals, plants and resources. From evolution humans are using environmental resources. When observed this use or loss, it is categorised as Environmental study. Resistance and Resilience are two distinctions in this study, where Resistance is tolerance of the site (while getting used and still being undisturbed) and Resilience is the ability to recover from the happened loss or change. Some sites have either qualities or some not. Hence due to its characteristics, Hunter and Green (1995) stated that environment can be subdivided into three components as the physical environment or a biotic environment which includes solar energy, soil, water and climate. Tourism and Environment are interdependent: Tourism is based on the environment; Tourism has and will always devour the natural resources. Tourism is the main factor carrying out the natural environment in both positive and negative aspect. Even simplest form of tourism like visiting a zoo consumes environmental resources such as animals, birds or plants. Such a kind simple form of tourism also renders constructive as well as unconstructive effects. The negative effect cases might be the capturing animals from their natural habitat and keeping them in a zoo, whereas positive aspect can be that by capturing the animals they are getting protected against hunters and other environmental conditions that can be critical to them. In various other smaller or greater impressions tourism has both negative and positive effects, but more important is to understand the actual destruction or refurbishments causing from tourism towards environment. It is understandable that human involvement with environment tend to use the resources, if it cant help to make them grow at least they can be saved from future damages by use of intelligent human behaviour. Study of tourism environment is about understanding the cause and effect rule and to imply theories to protect the environmental loss due to mass tourism. It is also significant that Tourism should place along with the higher quality of environment and environment shall get benefit from it not the damage. No doubt every human action has its own pros and cons and fragility of nature resources must not be seriously harm by it. Tourism is without a doubt among the worlds highest profitable industries (whether on the cost of environment) and relationship between tourism and environment can get equilibrate if financial profits gets used for the conservation programs or environmental sustainability. Impacts of Tourism on environment: All activities consume resources and produce waste, possibly all these activities has a potential to spoil the environment, and in same context Tourism is no exception. Tourism has developed as a largest industry and any activity happens at a mass level definitely leaves its positive and negative impacts, such as tourism did in the past. Although not the case that every environmental problem is produced by tourism but still being a mass industry it affects on a wider platform. Negative Impacts: The harmful impact of tourism can destroy the natural environment when the negative impacts on the environment are sufficiently intensive and extensive. Such as damaging biodiversity of particular areas which includes holiday retreats, clearing of vegetation for constructing resorts and hotels or other tourism facilities, and also many rare species have been brought to the verge of disappearance due to non-tourism nuisance which are directly related to tourism. Habitat devastation brought by unrestrained and ill planned tourism is the prime cause of extinction of species which eventually destroy the natural balance, but destruction of biodiversity can have far reaching effects than this. Another negative impact is the depletion of natural resources like water, land and resources like food, energy or raw materials etc. which are already in short supply. Degradation of land resources like wood or plantations is another example of the negative impacts of tourism on the natural environme nt. Solid waste littering is more common in the case of trekking, rock climbing or hiking tourists. Tourism also pollutes the tourism sites with noise and air pollutions, problems are more compounded in countries or regions which lack or does not have the ability to effectively treat such forms of pollutants generated from tourism activities. Tourism development is more or less responsible for most of the harmful impacts that tourism has on the natural environment. The cutting down of forested areas, changing the landscape etc all have negative impacts on the ecological balance of the tourism destination, whereas levels of impact may vary from site to site, but the negative impacts of tourism on the environment cannot be ignored. The negative impacts are intensely visible in ecologically fragile environments. Whether from generating a new site or a heritage site used for different prospective, somehow environment is getting a hard time by this. By pollution, numbers of persons using limited resources, behaviour of tourists while on holidays and so on are some of the causes which directly or indirectly affects environment. It may include both physical and cultural aspects. Unless managing at all level it is difficult to provide specific consideration to each resource and this is how this becomes a negative aspect towards tourism, environment has to pay such cost by loss to the natural settings to beaches, coral reefs or heritage sites. Effluence caused by tourism main concerns faced by tourism trade today. The sewage waste from tourist resorts are drained into the rivers causing pollution in the river water and eventually to sea bed, it highly affects the marine life. Extreme use of natural resource that is fossil fuel to generate energy for tourist activity, the activities of overfishing, unnecessary use of ground water resources, are only few of problems which are created by tourism industry which in turn causes the reduction of the resource. As tourism grows, it also give hands to increased littering, various forms of pollution e.g. noise, water, air. Sewage and waste got increased sometimes to uncontrollable levels. Alongside need for transportation gets high and number of vehicles produces numerous gases and noise in air. In areas where resources are limited, tourism develops a sense of competition, leading to all sorts of degradation. Such harmful impacts are majorly brought by poor management or lack of proper conservation mechanism in place. Positive impacts: However with all these harmful effects, the environment is also gaining the optimistic outcome of tourism. Tourism is moving towards a sustainable side by helping and preserving the natural resources for the future generation. Various nations and its conservative organisations are implementing strict plans for conserving their flora and fauna and protecting their natural resources. We should not only see at the dark side of the moon if tourism has its costs, its pays back as well, as tourism grows it definitely encourage several other industries to rise side by side. Whenever a destination is selected to develop as a tourism destination government and planning sources put efforts for the regeneration of the place. It consists of revitalisation of an area or a site and beautifies the local environment. Thus this process brings new colours to the site. Any vital site when comes under tourism perspective, its natural resources gets special attention from the managing bodies, where as educated tourism developers knows the value of a natural resource and keeping this in mind they prevent any misuse or damage to it. According to Swarbrooke (1999) the term sustainable tourism can be defined as the approach towards tourism in which more focus is shown in preservation of the natural resources in a way that they can be consumed by the present generation and can be preserved for the future generation as well. Tourism can therefore no longer be seen as a harmful factor to environment. Economically, many areas in the world have benefitted from tourism and conservations are taking place on a higher level in many countries. There is an urgent need to understand the relationships between tourists, tourism and the environment. Many new forms of tourist consumption revolve around environmental quality and the respect for nature. One more reason for the negative picture of tourism might be that it is difficult to disentangle the impact of tourism from other forms of economic activity in certain destination areas. Shaw g., Williams A.M. (2002) Numerous examples and case studies are available where tourism has proven a saviour to drowning economies, along with economical benefits; it is helpful in urbanisation of dead towns. Due to tourism many businesses develop and people get employed, on a social level tourism keeps all communities together and connected. Any tourists social involvement and habits are controlled by the behaviour in which s/he is coming from and an insight can be developed in order to gain positive response from tourists. Appropriate educational information system towards environment is rising as very useful tool. How tourism can enhance environmental conservation- If tourism destroys the environment with negative impacts, it also plays a very big role in the preservation of the natural environment of the destination areas. As tourism industry benefits from the tourism sites, it should be its morally responsible to take a pivotal role in the conservation of the natural setting from which it gets benefits. An appropriate and well managed tourism approach can reduce the pessimistic impact of tourism on the natural environment. Appropriate use of earned revenue- Though the profits earned from the tourism conduct is the major contribution of the tourism trade to the efforts of preservation of the environment, educating the tourist is also an essential aspect in the effort of conservation of the natural environment. The revenue earned from various tourist activities brings in the wealth which enables organisations to focus on the conservational efforts. Without the money, conservation process is nothing. Though, concern must be taken to see that the managers of such destinations or sites are not tempted to enlarge the visitation upper limit as the money starts to flow, thinking that the money thus earned from tourist activities like entry fees will be enough to address the very issues caused by the increased visitation. If this persuasion is not overlooked, than the natural environment will suffer more thereby negating the effective use of money from tourism for the conservation of the environment. The conser vationists who have the expertise and authority should make an effort to take control and focus on the maintenance of the environment. Developing eco-tourism- Another most important method is to bring a change from the basic idea of mainstream conventional tourism. This can be achieved by propagating the initiative of sustainable tourism and eco-tourism which are far more environmental friendly and aims at nourishing both the external and the internal environment of the destination. Adopting the idea of such forms of tourism plays a significant role in the conservation of the natural environment. Fundamental principles of these forms are inclined towards reducing the ill effects of tourism on the environment without compromising the value of experience that the visitors can get from visiting the sites. In further part of this essay I have mentioned and elaborated how this alternate tourism is developing these days. Sound planning- Sound environmental management of tourism amenities like resorts and hotels can enhance the benefits to natural areas; requirement is careful planning of tourism development which is based on the environmental resources existing in the destination area. For example clearing of vast areas of vegetation or forest to build resorts, holiday retreats, etc and changing of the landscape to appear more appealing to the tourist. While doing this, the natural environment or to be precise the biodiversity or the ecology of the area is being affected. So care should be taken to see that tourism development causes least impact on the environment. This again can be done by creating eco friendly resorts or buildings which will have the least impact on the surroundings. Tourism also has the potential of raising awareness of the environmental problems among the people by bringing them into close contact with the surroundings. Tourism cannot be sustainable if the surroundings or the en vironment of the destination is not sustainable in itself. Developing awareness among tourists- Conservationists should offer means by which people using the particular destination, both locals and tourists can be made aware of the importance of maintaining the environment. In fact they can encourage the people to contribute towards maintaining the environmental balance. Conscious effort to transform and develop the destination should be the aim of the environmentalists and the development projects, keeping in mind the positive possibility as well as the downfall of the environment with extreme tourism. A way in which tourism can contribute to the conservation process is by having an appropriate mechanism for the dealing with pollution and sewages generated from tourism activities. Various means can be used to minimise the impact of tourism on the environment. Appropriate interpretation can remove negative facts of the site and educate and inform the tourist on the diverse aspects related to the environment. This can lead to the visitors gre ater understanding of the environment and thus act in a more responsible manner and hence minimise the impact caused by them. Implementation of visitation limits, proper rules regulations and mentioning the environmental issues caused by tourism at its early stage can imply a big difference in the conservation of the natural environment. Helping wildlife preservations- Tourism also plays a vital role in the preservation and protection of various species of endangered species which is a vital part of the natural environment. Nature loving tourists visit wildlife reserves and in doing so contribute to the conservation process. Tourism can play major role in the conservation process in various other ways. The tourism industry can also organise campaigns to raise awareness of the environmental issues affecting nature or wildlife and in doing so can also built up a good image which has been often criticised in the last few decades for the negative impacts it has caused to the wildlife destinations. Alternate tourism is developing- A new breed of tourists is developing called eco-tourists and sustainability came in light in 80s due to previously happened mass destruction in environmental resources. Sustainable Development concept came in attention from 1980s and in March 1980, World Conservation Strategy (WCS) was prepared. IUCN, UNEP, WWF, FFO and UNESCO joined hands for worlds living resources. WCS was a conservation strategy where ecosystem degradation-destruction, deforestation, desertification, pollution, soil erosion and genetic diversity and extinction of species and many related issues were in discussion. The relationship between economic development and the conservation and sustenance of natural resources is concept of sustainable development. Though these thoughts were already in air from many years at that time but WCS discussed many drastic changes happening to environment and WCS was proven as a bridge between prior thoughts and later actions. Another major outcome was establishment of WCED (World commission on environment and development) in 1983, Gro Harlem Brundtland (PM Norway) was appointed chairperson for this commission and in 1987 he publicised a report known as Brundtland Report (Our Common Future) in which Sustainability were originally popularised- Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs (According to WCED 1987:43) cited in Hall, C.M. and Lew, A.A. 1998 Certainly sustainability consists of strategy making, preservation of ecological processes, protection of heritage and biodiversity, futuristic focused productivity and balance between social behaviour and environment. Along with the global acceptance of International tourism, sustainability also got recognised as a key element towards long term beneficial policies along with saving limited resources. Destination areas have developed to accommodate all these travellers, and receiving them and catering their needs has also become part of a daily routine. Development is a highly contested concept and since the Second World War debates over what it is, and how to achieve it, has gone through a number of phases. International tourism has been a global phenomenon from centuries, but that packaging of tourism for mass consumption dates back to the mid-19th century, when a specific service sector devoted to the mass consumption of travel emerged, roughly parallel to the development of mass production in the industrial sector. Harrison, D. (ed.) (2001) As people are not tends to be flexible when it comes to implementing rules and regulation, especially when visitors are on holidays, Author B Wheeller describes in his words. And what sort of touristic approach is needed is Tourism at one with nature; non-consumption, non-exploitative, avoiding degradation and destruction of the environment, but rather tourism in harmony, in balance with nature Wheeller, B. (1994) Conclusion Based upon the statements and codes-of-conduct developed by tourism stakeholders, that the environment has been placed on the outline as a major concern of how tourism is to be developed potentially. Thus all these negative and positive effects of tourism on the environment, brings us to a conclusion that tourism can be treated in negative as well as positive aspect in regards to the environment. The negative impacts can be reduced by taking initiative towards conserving natural resources. There are various tools that can be used to protect the environment like collecting income in the form of taxes. All these examples however show us a positive picture about how the tourism industry and the environment are co-dependent to each other for their mutual existence. Though there are many negative aspects to tourism, we can still say that tourism has the tools to protect, preserve and enhance natural resources and the environment. Therefore Tourism and natural environment can both co-exist and be mutually beneficial to each other if the tourism industry has the willingness to pull in full support to the conservation efforts of the natural environment. In doing so, it can help maintain the environment and also recover from the negative image that it has built up for itself during the last few decades. Proper and efficient planning and management accompanied by strict implantation, strict rules and regulations, proper interpretation, propagating the idea of sustainable consumption, well planned eco tourism and sustainable tourism and educating the tourist and making them aware of the impacts of their actions which may have negative impacts on the environment are some of the few ways in which tourism sector can contribute in the conservation process of the natural environment. There cannot be a limit to the extent tourism can contribute to the process and there cannot be an end to its contribution towards environ mental conservation because as long as tourism exists, the negative impacts of tourist will be evident on the natural environment. There is no doubt accepting the fact that tourism brings in money. But even then, care must be taken to make sure that the economic growth brought by the tourism industry must contribute to the natural environment processes and the sustainable use of natural resources. Academic References: Brunn and Kalland (1995:1) cited in Holden, A. (2008) Environment and Tourism (2nd edition), Routledge) Bull (1991:1) cited in Holden, A. (2008) Environment and Tourism (2nd edition), Routledge) Franklin (2003:33) cited in Holden, A. (2008) Environment and Tourism (2nd edition), Routledge) Hall, C.M. and Lew, A.A. 1998. The geography of sustainable tourism development: an introduction. Harlow: Longman. Harrison, D. (ed.) (2001) Tourism and the Less Developed World: Issues and Case Studies. Wallingford: CABI. Ch. 1. Holden, A. (2008) Environment and Tourism (2nd edition), Routledge. Hunter, C. and Green, H. (1995) Tourism and the Environment: A sustainable relationship? Routledge, London. Shaw G., Williams A.M. (2002) 2nd ed. Critical issues in tourism: a geographical perspective: Oxford. Swarbrooke, J. (1999) Sustainable Tourism Management. CABI Publishing, Wallingford. Wheeller, B. (1994) Egotourism, sustainable tourism and the environment: a symbiotic, symbolic or shambolic relationship? in A.V. Seaton et al., eds. Tourism: The State of the Art, Wiley, Chichester.