300 Weapons and Strategies Essay Example for Free

300 Weapons and Strategies EssayThe motion picture 300 is an action movie that takes place in 480 B. C near Greece. It is about the famous difference of Thermopylae that mainly involved both the Persians and the Spartans. The Persian phalanx, led by a king named Xerxes, is in the process of taking everyplace several classic states in Greece. When Xerxes arrives at Sparta to strike a weigh with King Leonidas (Spartan Army Leader) that he forget have power over all of Greece if he will bow down to King Xerxes, Leonidas responds with retaliation against the Persians. King Leonidas assembles 300 of his toughest Spartan soldiers to take on the Persian army at the passage way of Thermopylae.Although earnestly outnumbered against Persias hundreds of thousands of men, King Leonidas and the Spartans hold off thousands of Persians from entering the passage for a few days. Persian King Xerxes lead a Army of well over 100,000. (IMBD) With Leonidas in fight, back at Sparta, Queen Gorgo( Queen of Sparta)desperately tries to persuade council to send more back up to Thermopylae to help King Leonidas. Unfortunately, the Spartans were betrayed by a recently rejected Spartan tryout named Ephialtes, who decides to pay back King Leonidas for his rejection.Ephialtes ultimately destroyed any chances of Sparta defeating Persia by informing Xerxes about an unknown occult Goat Passage that would lead Persia to the backs of the Spartan soldiers. Xerxes and the Persian army soon defeat Sparta nevertheless all in good name. Due to the motivation and fortitude of the 300 soldiers, they inspired all of Greece to go against Persia and fight. Part 2 After watching the movie, it is clear that most of the war tactics and strategies are very sinless to the developed real life battle that we knew.According to 300 Spartans, This unit was produced of 300 Spartiati Warriors who were held in their highest esteem by their fellow citizens in Sparta. (300 Spartans) So repayable to Spartas vastly outnumbered army size, military order was a major factor when battling. Not plainly was the order and position of their army an effective schema, scarce it also helped favor Sparta and gave a competitive advantage when battling enemies who didnt have such order. This was a major contribution to why King Leonidas wanted to battle at Thermopylae, also known as Hot Gates.This was a tiny area that made it favorable for smaller forces. The pass of Thermopylae consisted of trine gates where the land narrowed in a favorable position foe a smaller army. The East and West Gates were extremely narrow, however, the shopping center Gate while a little wider than the other gates is where the Greek warriors set up their defensive positions. (Spartan Warriors) King Leonidas spent a great deal of time focusing specifically on the training of his soldiers so they could be properly ready for battle.As shown in the movie, his formations for battle highly impacted what the effect of the war would be. A repetitive battle formation employ with Sparta was called the Phalanx. The Phalanx is a formation that lined up a small group of men pushing on the backs of the man in front with their shields giving no room for an enemy to slip by and eventually overcome them. right away in actual armed combat, it was a big shoving match with the front lines pushing against the enemy and each subsequent line pushing against the back of the men in front. (Military History)This was make by working his way into fighting in a narrow closed off area in hopes of entangling enemies and causing unexpected chaos. This would ensure the to the full potential of his warriors against Persia. Since Leonidas army was so well trained, they had no problem defeating Persian soldiers head to head. So to enhance battling conditions for Sparta, going between mountains, leaving only a small pathway for minimal enemies to get through at a time was standard and a critical way to fight for the best outcome.Now in the movie there is a small scene that shows Spartan soldiers dispersed and fighting one on one with several enemies. This was not an actual occurrence with Spartans because separating would have engulfed themselves with the multitudes of enemies that surrounded them. In the movie it is not entirely depicted correctly as even mentioned by, allexperts. com, In actual combat, if the fighting stony-broke down into man on man melee like shown in the movie, the Spartans would be easily overcome. (Military History/Spartan Battle Tactics)Another important strategy for Sparta during battle was incorporating suitable terrain for their benefit. The rugged terrain isolated groups and made the use of chariots and cavalry very difficult. (Spartan Military) In reality this only seems to make sense but even in the movie there is a scene where Spartan soldiers are pushing enemy troops off a seaside cliff, thereof incorporating the use of a rough terrain to their advantage. Th e movie 300 was very accurate in displaying these strategies several times exactly how they are described to be used in real life by the Spartans.King Leonidas stands his troops in the center of two mountains with a strong line of soldiers close together for support. With the soldiers in perfect Phalanx order, they could simply replace one another in an instant if a soldier ahead died. Perhaps a crucial land for the use of the Phalanx order in Spartans history and even in the movie, is because back in these ages war was usually fought almost chaotic. Never before has an army seen this kind of developed order on the battlefield which took them by surprise and gave Sparta a huge advantage.Although the Phalanx and the rough terrain were similar in comparison to the movie and actual Sparta history, that can not be necessarily said the same about the weapons used. In ancient history, the Spartans weapons have consisted of a large unwieldy scape called a Dory. This was typically aimed o ut over their large eight-foot hoplite shield, called an Aspis. This was followed by a chest plate and a solid helmet. Even though the Aspis and the light beam were displayed correctly within the movie, a major difference distinguished with the wielded sword.Within the movie is a surplus of swords either called the Spatha or the Kopis. These were typically larger and had a more dangerous appearance to them than the original Lakonian sword. This sword that was actually used in real Spartan history fighting looked almost like a dagger. The reason the Spartans shortened their sword was just that. It was easier to use in tight confines of the Phalanx and the press of men. (Spartan Military) But this makes sense due to the fighting strategies used by them.Not only was the weapons slightly off in the movie, but also the use of them is depicted false. When the small Lakonian sword was used, it would have only been used to stab when an enemy went for a slash. In 300, there are several sce nes showing Spartans slashing and hacking Persians which is incorrect. All in all, the movie 300 is a somewhat spot on movie with how actual Spartan military forces used weapons and battle strategies. Even with a couple obvious differences, one could struggle their similarities.

Business Feasibility Study†Seventh Heaven Café Essay Example for Free

Business Feasibility Study seventh paradise Caf Essay seventh Heaven Cafe is not only a coffee shop, or rather a place for relaxation. It sells different kinds of coffee, desserts, books and flowers. Customers bring them back or just jazz them in my shop. Besides, I am unplayful at dealing with problems of Organizational Behavior. I also have great expertise in human psychology and marketing. Therefore, I have the abilities to operate this shop. Seventh Heaven Cafe targets at white collar community and some companies which need flowers to decorate the site of activities. Therefore, it is located at the street corner with soignee environment near transnational commercial corporations in Suzhou.Seventh Heaven has to confront or avoid a number of threats, especially some unwavering competitors, such as Starbucks, UBC Coffee and DIO Cafe. However my shop has powerful competitive advantages to face the challenges. Additionally, our market-oriented mission is make people happy a nd relaxed in the Seventh Heaven Cafe by provide savory coffee, warm fragrant memories and dreams from books. The primary finance objectives are to get first-year sales revenue of 1 trillion yuan, and break even early at least achieve 3 million RMB in second year.After on track, shop scale and economical benefits will increase year by year. To achieve this goal, we should make sustaining efforts on marketing strategies, such as promotion strategy and price strategy. This new cabal coffee shop will be successful and this personal credit line idea is worth pursuing. Section 1 Personal Skills, Qualities and Experience I have obtained an MBA detail from the Liverpool University five years ago. After that, I have worked in a local company for four years. Then I came back to my country and think to do pioneering work.So I have some basic abilities and work examine to operate this coffee shop. I have learned many recyclable skills and valuable knowledge from university. Firstly, the Organizational Behavior Study covers three levels of analysis, but intertwined, such as individual, group formation and decisions making. So it is practical for me to do the business. Secondly, I was interested in the course of Marketing when I am a student. It has huge effect on my occupational career. However, these courses just are foundation. My work experience background is a critical element for later entrepreneurial career.Nevertheless, I still need some other outside help. About initial capital, it comes from my own(prenominal) savings (1. 5 million RMB) and my parents investment (0. 5 million RMB). In addition, recruitment and selection of good employees is vital part of success. My mother was a cured accountant before, so she could help me manage finance matters. Besides, I also need a first-class barista and a pastry cook, a waitress and a waiter with good looking, as well as a professional purchaser. Section 2 The Business Idea and Market AssessmentProduct and ser vicing Before making decision to start business, I used questionnaire to get and analysis customers demand. So Seventh Heaven Cafe is not only a coffee shop, or rather a place for relaxation. It sells different kinds of coffee, desserts, books and flowers. Customers bring them back or just enjoy them in my shop. My coffee shop called Seventh Heaven, this name represents happy, pleasure and relaxed. I want to my customers get out of the pressure and tiredness, enjoy the release of soul and physical relaxation in Seventh Heaven. quiet can bring comfortable feeling to you and have benefits to your health. When you come in the Seventh Heaven, you will feel the music in the air washing your intuitive feeling and smile of waiters warming your heart. The flowers tinged the air with their light fragrance. At spare time, you could read a good book alone and drink a cup of delicious coffee, or talk with your good friends with some scrumptious snacks. Owning good books, intimate friends and a serene heart, that is a perfect lifestyle. This is something I want to provide to people, enjoy life, and live in the moment.Target market and customers One of our target markets is white collar employees with middle or higher(prenominal) income. These people pay more solicitude on quality of life and have a good consumption level. Another is business customers, which need flowers to decorate the site of activities, parties, events or meetings. Competition However, there are some strong competitors in this market, especially Starbucks. It is the worlds largest coffee shop chain from America. Starbucks enjoyed a higher reputation and strong brand effect in China.There are about 31 Starbucks in Suzhou alone, but some problems are observed in the course of rapid extension. For instance, single and boring of the stable products and service is a big weakness. To the contrary, Seventh Heaven Cafe provides a combination service and products to customers. It is a novel and creative for m to attract people. Besides, high quality service and elegant environment are our powerful points of attraction. Sales and marketing strategy To gain more customers, the price of our products is slightly below the Starbucks. lucre advertising and posters are effective for publicity. Furthermore, we use push money and allowance to motivate my employee to increase sales. Critical risk factors Despite of these, some risks still exist, for example some people are reluctant to try something new, or we make losses at early stage. All of budgets are based on the business feasibility study, but there are so many unpredictable changes in the reality, the cash flow may be not enough. Moreover, the shortage and bounce of talent in related field are hidden trouble for the business.

Importance of Database Security

impressiveness of Database SecurityTo be able to manage a bulky amount of data effectively and firm, a well organized formation is needed to build. It will also need to store and retrieve data easily. Generally, a database trunk is designed to be used by m whatsoever users simultaneously for the specific collections of data. Databases are classified based on their types of collections, such as images, numeric, bibliographic or full-text. Digitized databases are created by using management placement to involve, store, maintain or search the data. Oracle, MS SQL and Sybase servers are mostly used in companies, agencies and institutions for their contrary purposes of the assets.On the one hand, internetworking techno put downy provides the assets efficiently and effectively among cooperation but it also gives opportunities to hackers or lawbreakers to make profits. So, database hostage becomes the most important issue and all related agencies bring forth to focus on the availa bility of their data to the authorized users only. The bulwark of data from unauthorized disclo indisputable, alteration or destruction is the main purpose of the database shelter process.Database security is the system, processes, and procedures that protect database from unintended activity that lot be categorized as authenticated misuse, malicious attacks made by authorized individuals or processes. Databases have been protected from orthogonal connections by firewalls or routers on the network perimeter with the database environment. Database security rotter begin with the process of creation and publishing of appropriate security standards for the database environment.Particularly database systems in E-commerce, can access the database for exchange and retrieval of schooling from web applications. As many layers consisted for web application access, it is needed to make sure the security of each(prenominal) layer.In this paper, we are making an attempt to present how to make secure database in each layer of database system of ecommerce in details.Importance of Database SecurityIn this information technology age, it is compulsory for all types of institutions or companies to make avail their information assets online al inwardnesss through databases. However, they must have a policy to divide the take aims of users with to which extent they can asset the information. It is vital not to give opportunities to mischievous intruders. Databases are used to provide personnel information, customer information, realization card numbers, financial data and business transactions, etc. The information is very sensitive and highly confidential and must be prevented from disclosure by different competitors and unauthorized persons.The security of data is crucial not only in business but also in even home computers as private files, details of bank accounts are difficult to replace and potentially unsafe if they will be in wrong hands. Data destroyed by ha zards equal floods or fire is just lost but handing it in unethical person will have severe consequences. Other threats will be include human errors and espionage. therefore, the data security starts with strategies of identifying the area of exposure which will be affected. It is important to define who can access what data, who is allowed and who is restricted, whether passwords are used and how to maintain it, what clear of firewalls and anti-malware solutions to use, how to train the staff and to enforce data security. Furthermore, the backup continuity plan should be laid out so that even though the systems fail, the business can be carried out without delay.While constructing the infrastructure security of a company, database security should be well considered. Database is very crucial to most enterprises at present geezerhood the damage of database will have tragic impact on it. Unsecured systems will make hurt both the company itself and its clients.Based on the seek t hrough with(p) by American National Infrastructure Protection Center (NIPC) in 2000, the continuous attacks on U.S. e-commerce system are increasing. The most interrupted system is Microsoft Windows NT systems, but UNIX based run systems have also been maltreated. The hackers are utilizing at least three identified system weaknesses to be able to achieve felonious access and download information. Even though these vulnerabilities are not freshly innovated and the mischievous activities of hackers had been in progress for quite long before the sufferer became find of the intrusion.The insecurity of the database can affect not only the database itself, but also the new(prenominal) running systems which have the relationship with that database. The process of an intruder can be first to get access to the poorly safe database, then use strong built-in database characters to get admission to the local operating system. In this substance, other trusted systems connecting with that da tabase will be easily attacked by the intruder.Database Security in E-commerce databaseDatabase system cannot stand alone and it needs to depend on many other systems. Hence, database security is a combination of many other associated and correlated systems are included as well. The following figure is a normal schema of E-commerce Company. In figure 1, the four basic layers are existed in order to defend a database system. These systems are the functioning system on which the database system runs. Firewall is a ordinarily applied mechanism to obstruct the interruption from the external network. Web server and web application offer numerous services to the end user by accessing the database. Network layer is the medium in which the data is transmitted.Operating system layerOperating system security is a very important feature film in database administration. Some dominant features of database systems will possibly be a crack for the underlying operating system. Thus, the responsib le person should very thoroughly watch the relations between a feature of database and it is operating system.According to Gollmann, there are five layers in Information Technology system. These layers are application, services, operating system, os kernel and hardware. Each layer is constructed on top of other fundamental ones. As the database system is at the service and application layer, it is existed in above the operating system layer. If the weaknesses of the operating system platforms are identified, then those weaknesses may lead to illegal database access or manipulation. Database configuration files and scripts are at server level resources and they should be sheltered severely to ensure the reliability of the database environment. In many database environments, membership in Operating system group is authorized full advocate of controlling over the database. To keep away from mistreatment and exploitation of the membership, those users membership and access to the data base should be warranted frequently.One of the responsibilities of Administrator is to organize the settings of the operating system or to castigate the size of the buffer and the ageout period, so as to avoid the rejection of service attack stated previously. Most operating system vendors supply system patches generously and fast if any vulnerability has been detected on the system. Another weakness which is often ignored by the administrator is to bring up to date the operating system with the latest patches to abolish the newest revealed holes of the system.Network layerData has to be transmitted through the network including local LAN and Internet when web applications communicate with database or other distributed components. The two major network transmissions are from user to web server, and from the web application to web database server. All these communications must be exclusively protected. Although the administrator can secured the network in local domain, the global internet is unmanageable.Encryption is another influential technology. It is set aside not only the encroacher cannot interrupt but also the encrypted data is unreadable and tremendously hard to presume or decipher. The matching key can only be to decrypt the cipher text. The two means to apply encryption in database system are of the one way to use the encryption options provided by database products and another way to obtain encryption products form trusted vendors. In addition, one more approach for a safety device connection is practicing the secured protocols above TCP/IP, for example, the technology of Ipsec and VPN (Virtual offstage Network).The personal traffic in the course of the public internet by means of encryption technology can be provided by VPN. In generally, SSL (secure sockets layer) can be used as another way for cryptography on top of TCP/IP. Safe and sound web sessions can be obtained by Netscape. SSL has newly developed into Transport Layer Security (TLS) t hat make certain no other invasion may snoop or interfere with any communication. Utilization of SSL can help to validate and protect web sessions, but the computer itself cannot be safe.Web serversThere are dissimilarities in functions of Web programs and customary programs in area of safety. The major reason is safety for Web application program as the flaw is not easy to perceive. Web server that keeps the external disturbances is located in the middle of the application server and firewall. It can be applied as intermediary to get the data that we approved to be available.For the time being, the software commonly used in web applications is CGI (Common Gateway Interface). The web server can do a different function in easier way as it is uncomplicated. It is user-friendly as a web page counter. Moreover, for example as reading the input from the remote user, it can be used as multifarious to access the input as uncertainty to a local database. CGI proceeds the outcome to the use r after retrieving the database. On the other hand, it is also dotty since CGI scripts permit software applications to be carried out inside the web server. The well-known language for CGI scripts is Perl since it is simple to build applications and parse the input from the user. Nevertheless, Perl can be victimized by wicked users as it grants some forceful system commands.The invader can simply demolish the system if CGI was weakly executed by web server. This may be a huge hazard to the system as someone can easily eliminate the classified files from Web server as effortless to contact. To get rid of the intimidations, there are several ways to prevent these. The CGI scripts should be prohibited by abuser to write, and the arrangement should be done to CGI program that can be performed as a single way of directory. It should also be cautious in writing the CGI script. No more bimestrial usage of CGI applications such as sample applications should be disposed as these are appro achable to Web server and major intentions for invaders since older CGI samples have safety gaps.Without comprehensive handlings, default settings of Web application server can be a huge imperfection of the system if the database system networks with CGI. There need to make sure the system for which extent of operation is unapproved to the clients when a use logs into the database. Web serve with verification methods built in CGI is the most precious way which means to prepare a CGI script with login name and password to prevent the files. By doing this, the files are protected to the web server apart from readable only. The safety gaps should be checked firmly and regularly to all the scripts even though these are obtained by self-developed, downloaded or bought from vendors.FirewallsThe major significant layer to slab the external interruption of the system is Firewalls. Packet filter and proxy server are the two types of firewall mechanism. The attached data between the applica tion and database are divided into packets which consist of much information in its headers, for examples, sources, destination address and protocol being used. A number of them are cleaned as with which source addresses are unbelievable to access to the databases.The arrangement of firewall should be done to access only one or few protocols which is helpful for application queries such as TCP whereas the other packets are choked-up firmly. Accordingly, the smallest amount of risks is retained for the vulnerable system. Moreover, the ping of fatal loss will be kept systematically if the firewall is constructed to abandon the approached ICMP demand.The potential invaders should be marked out by reserving log files at the firewall. There are two connections in Proxy server. The first one is the connection between cooperations database and proxy server. Another one is the connection between proxy servers also provided the log and audit files. On the other hand, there are very hard to build up strong firewalls, and also to a fault huge and tough to investigate the audit tracks.Database serverDatabase servers are the fundamentals and essentials of greatest values in each and every sector of Education, Health, Military, Manpower, Economics, Modern arts and Sciences, Information Technology, Electronic Businesses, Financial Institutions, Enterprise Resource Planning (ERP) System, and even universally comprised of sensitive information for business firms, customers, marketers and all stakeholders.The functions and purposes of Database servers are highly depended on the users of their particular intentions for applying the services provided by the operating systems. Some good safety practices for Database servers are touse multiple passwords to access multi-functions of a server such as using one password to access the single system for administrationapply a different password for another operationbe audited for each and every transaction of the databaseutilize appli cation specific user name and password and should never use a default user name or passwordback up the system thoroughly for late re superlativey in case of accidentally break downAllowing to know the end-user for the name and stead of database is very worthless. In addition, exposing physical location and name of every database can also be a huge danger to the system. To cover up these issues, we should weaken practice the service names and pseudonyms. The several copies should be done for the important files which control the accessibility to the database services. Each and every copy should be also connected to a meticulous user group. Moreover, the members of each group should be allowed to access only the relevant documents concerning them.ConclusionThe institutions, organizations and business firms mainly stored their important information and valuable assets as digital formats in online related excellent databases. The safety and security issues of Databases become strongly an essential role in the modern world for enterprises. To alleviate from harm of database is to prevent the companies untouchable information resources and digital belongings. Database is the multifarious system and very complicated to handle and difficult to prevent from invaders.Last, but not the least, database protection is also to be taken significantly to the confidentiality, availability and integrity of the organizations like other measures of the safety systems. It can be guarded as diverse natures to cover up. Although auditing is critical, but analysis is also very tough while potential analytical tools will be an enormous contribution to protect the online rationality of database system. There should be reinforced to the corporate safety and security issues. Means of verification and encryption will play the essential role in modern database direction and safety system.

Stock Market Performance and the Real Economic Activity

carry Market Per smorgasbordance and the Real stintingal military actionWhether national thriftiness is traveling the expect grocery or early(a) way round? A lot of studies view d peerless on the past(a) what argon affinityship of these variables. In my hold I consume apply co consolidation and farmer designer method to find step up the kindred surrounded by the downslope world power charge and Economic maturation indicator gross domestic product.IntroductionThe debate of whether con letter food grocery store place is associated with sparing branch or the job food grocery empennage be served as the frugal indicator to predict succeeding(a). According to many economists pedigree market fag be a ground for the future(a) deferral if thither is a huge decrease in the melodic phrase price or vice versa. However, at that place be turn step up of controversial issue most the ability of portent from the pains market is not reliable if in th at location is a situation like 1987 stock market crashed followed by the scotch recession and 1997 pecuniary crises. ( declivity market and sparing growth in Malaysia reason sort).The aim of the news report is to find the comparison amid the stock market per categoryance and the true(a) frugalal activity in depicted object of four countries The UK, The ground forces, Malaysia and Japan. With my limited knowledge I gain tried to find bring stunned the role of monetary cultivation in stimulating sparing growth. A lot of economists have different view ab discover stock market discipline and the economic growth.If we focus on some related literature published on this topic one question arisesIs economic increase is affected by stock market exploitation?Even though at that place argon lots of debate on some argon dictateing that stock market green goddess help the thrift but the effect of stock market in the economy especi in ally in the economy is very forge tful. Ross Levine suggested in his constitution published in 1998 that fresh evidence suggested stock market provide really give a boom to economic growth. (REFERENCE)It is not really likely to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the positions of growth in gross domestic product. A lot of things washstand cause in the growth of stock market like changes in the banking system, foreign participation in the in the fiscal market may participate plasteredly. App atomic number 18ntly it examinems that these increments can cause development of stock market followed by the good economic growth. besides to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not?In my work I have tried to find disclose the co integrating kinship amongst Stock price and gross domestic product and tried to check if there is a unyielding behave and short run kinship surrounded by the stock price and gross domestic product.The method used for the studies is Engle farmer co integration method. To do this I have used ADF (augment impaired Fuller try on) to check for the nonmoving behavior of the variables and thusly I have performed the Engle sodbuster Engle husbandman co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd coif Engle Granger co integration method.To check the causative effect of the four countries stock market and economic growth I used Granger Causality Method. In this piece of music I have reviewed some studies of scholars which I have discussed on the literature review part. This melodic theme contains louvre partsPart deuce is about the literature based on the past wok of scholars. Part Three discussed about the information. Part four is about the methodology, Results are discussed on part ato mic number 23 and part six is all about the summary and conclusion of the whole take in.In my work I have lay outed there is no long run relationship amidst stock market and economic growth in all four countries. In addition there is no causal relation mingled with stock index yield and the national economy growth rate. The trial-and-error government issues of the thesis concludes that the possibility of seemingly aberrant relationship between the stock index and national economy of these for countries.Literature ReviewStock market contributes to economic growth in different slipway either directly or indirectly. The functions of stock market are nest egg mobilization, Liquidity creation, and Risk diversification, keep control on disin bourneediation, information gaining and deepen inducing for corporate control. The relationship between stock market and economic growth has become an issue of extensive summary. There is always a question whether the stock market directl y find out economic growth. A lot of query and expirations shows that there is a strong relationship between stock market and economic growth. Evidence on whether pecuniary development causes growth help to reconcile these views.If we go back to the memorize of Schumpeter (1912) his studies emphasizes the cocksure influence on the development of a countrys financial do principal(prenominal) on the take aim and the potential jeopardize of losses caused by the adverse selection and moral hazard or transaction cost are argued by him how requisite the rate of growth argues that financial sectors provides of reallocating big(p) to minimize the potential losses.Empirical evidence from king and Levine (1983) show that the level of financial in statusediation is good forecaster of long run social club of growth, capital accumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with high investment.An some other interrogation from Levine and Zervos (1996) utilise the data of 24 countries found that a strong positive coefficient of correlation between stock market development and economic growth. Their expanded guide on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other.Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the supply leading shot. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprises by the large efficient banks.Related research was do for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical subject byMing Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent brachydactylous relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese gross domestic product with the structure of its stock market, role play by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causation see, the boilersuit finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper).An member by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some information about the followence of long run stalls relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger fountain aft(prenominal) using twain the Engle-Granger and Johansen technique. In her study she found GDP is co- integrate with financial depth, Volatility in the stock market and GDP growth is co integrate with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani).Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal canvas for causality by C.J. Granger and yearly Malaysia data for the arrest 1977-2006. The result from the study explain that future prediction is possible by stock market.A study cogitate on the relationship between stock market mathematical operation and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the befriend draw in and a one(a) (Turkish paper)An international time serial publication analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998)The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect two the variables has positive effect on economic growth. International integration and volatility is not properly effected by capital stock market. And private sustain saving rates are not at all affected by these financial indicators. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (Levine and Zervos 1998)Belgium Stock market study with economic development shows the positive long run relationship between twain the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is much focused between the period 1873 and 1935 basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more prono unced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market increment and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005)Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets A Spur to economic growth on the impact of development. Less doubtful investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As, they can sell it quickly when they need access to their nest egg, and if they want to alter their portfolio. though many long consideration investment is requ ired for the profitable investment. But reluctance of the investors towards long full term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic growth. (Levine. R A spur to economic Growth)A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 developed and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such(prenominal) as bank-accounting-disclosure standards, banking crises, insider trading rightfulness enforcement and government ownership of banks.(Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of rude(a) South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006 accepted 26 July 2007Available online 21 September 2007)Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that two stock price and economic activity are integrated of tack together one and Johansen-Juselias Coin-integration renders for this study found one co integrating sender exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by healthful developed stock exchange and vice-versa.( TitleThe nexus between stock market and economic activity an empirical analysis for India Author(s) Purna Chandra Padhan Journal International Journal of Social Economics Year 2007 Volume 34 consequence 10Page 741 753 inside 10.1108/03068290710816874 Publisher Emerald Group Publishing Limited)Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation 23 Jul 2003 Tried to find out the importance of the causal relationship of Financial dev elopment and economic growth. The findings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest alike(p) results.A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not infixed for economic growth.However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time serial publication data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship between financial development and economic growth in Iran only the economical growth leads to financial development.Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization.(Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences MAM nary(prenominal)ember 2004 Economic Development Financial Market Working Paper No. 2 )DataThe empirical analysis was carried out using the quarterly data for The UK, The U SA, Japan and Malaysia. The data were collected from the DataStream for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the plan regression in high society to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the offset quarter of 1993 and the fourth quarter of 2008. alone the data has been extracted from the data stream and expressed in US$. The data for Japan helping price is from Tokyo Stock Exchange. Malaysias portion price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index.The nature of the Data is serial publication used for the time series regression.List of VariablesUGDPUK GDPUSPUK portion priceLUGDPlog of UK GDPLUSPLog of UK g rant priceUSGDPUSA GDPUSSPUSA (DOW Jones) Share priceLUSGDPLog of USA GDPLUSSPLog of USA Share priceMGDPMalaysia GDPMSPMalaysia Share priceLMGDPLog of Malaysia GDPLMSPLog of Malaysia Share priceJGDPJapan GDPJSPJapan Share PriceLJGDPLog of Japan GDPLJSPLog of Japan Share priceMethodologyCointegration long term common random crusade between non unmoving time series. If non- nonmoving series x and yare both integrated of same frame and there is a linear combination of them that is stationary, they are called co integrated series. A common stochastic propensity is overlap in Cointegration. It follows that these two series willing not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-term equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses.Meanwhile, cointegration does not imply high correlation two series can be co integrated and yet have very low correlations. Coint egration seeks allow us to determine whether financial variables of different national markets function together over the long run, while providing for the possibility of short-run conflict. The starting signal step in the analysis is to test each index series for the comportment of social unit base of operationss, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009)Series Stationary TestIn this study I have used Augmented Dickey Fuller Test (ADF) to test the stationary of variables. The unit pedigree test is usually used to confirm stationary of a series. The ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being jilted by the null hypothesis (level of significance). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationary or not. ADF test is based on the estimate of the following regressionis in this case variable of interest = , is the differencing operator,t is the time crook and is the stochastic component of zero mean and constant variance.The parameters to be estimated are Null and substitute hypothesis of unit root test are,()()Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative dispersion of the ADF statistics by showing that if the work out ratio of the coefficient is less than the precise foster according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The cointegration test can only be performed if both the sequences are all integrated of order I (1).Cointegration TestEngle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series.Cointegration Long term common random trend between non stationary time series. The linear combination of both the non stationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They baron deviate from each other but in the long run but eventually the will revert back in the long run.If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointe gration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there capability be a divergence in the short run.The first step in the analysis is check each index series whether the series for the comportment of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met.According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method).So from the above method we can find the equationBy regressing withAnd after that and is denoted as the estimated regression coefficient vectors. After that I saved the residual from the above equation.Then,= is representing the estimated residual vector. If the residua l is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dickey fuller test on the residual series on level look on with take hold of only of each country.An in this situation (1, -) is called co-integrating vector if the series is stationary.Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and.Granger causality testGranger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables.In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And thi s is strong relationship.Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline working(a) definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely.Granger causality approach (1969), lets turn over the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past determine of y and x than from the lagged determine of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a open bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the ground of the following bivariate regressions of the form(1)(2)Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption.From the equation one it can be said that current GDP is related to lagged measure out of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP.Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the peg hypothesis and F test is carried out for the null hypothesis of no Granger causality.The formula of f statistic isLagged term is define here by m number of parameter is defined as k.Test result for Unit RootAugmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary.Variableslevel/ world-class deviationAugmented Dickey Fuller Statistic(ADF) test Japant statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%5%GDPLevel -2.653258-3.522887-2.901779-2.588280-2.693600-4.088713-3.472558 foremost Difference-9.053185-3.524233-2.902358-2.588587-9.003482-4.090602-3.473447Share PriceLevel-2.116137-3.522887-2.901779-2.588280-2.203273-4.088713-3.472558 first Difference-6.899295-3.524233-2.902358-2.588587-6.844396-4.090602-3.473447Table 01 Unit root test for stationary JapanIf we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with bar and with check and trend in level and first deflection. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first diversion LnGDP is integrated with order one. In ca se of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. The unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value in all level and they are integrated in order one.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test Malaysiat statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%5%GDPLevel-1.195020-3.522887-2.901779-2.588280-1.933335-4.088713-3.4725581st Difference-5.951843-3.524233-2.902358-2.588587-5.923595-4.090602-3.473447Share PriceLevel-1.900406-3.522887-2.901779-2.588280-1.891183-4.088713-3.4725581st Difference-7.842122-3.524233-2.902358-2.588587-7.779757-4.090602-3.473447The unit root test result for LMGDP and LMSP values presented in born(p) logarithm. And the level values with intercept and with intercept and t rend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with intercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order one.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test UKt statisticvalueWith Trendt statisticvalueWith trend andIntercept1% 5%10%1%5%GDPLevel-0.690866-3.522887-2.901779-2.588280-2.377333-4.088713-3.4725581st Difference-7.474388-3.524233-2.902358-2.588587-7.439027-4.090602-3.473447Share PriceLevel-1.711599-3.522887-2.901779-2.588280-1.261546-4.088713-3.4725581st Difference-7.254574-3.524233-2.902358-2.588587-7.391821-4.090602-3.473447The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is 0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. However, the 1st difference value of log natural share price is -7.254573 and -7.391821 with intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test USAt statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%Stock Market feat and the Real Economic ActivityStock Market Performance and the Real Economic ActivityWhether national economy is affecting the stock market or other way round? A lot of studies have done on the past what are relationship of these variables. In my work I have used cointegration and Gr anger Causality method to find out the relationship between the stock index price and Economic growth indicator GDP.IntroductionThe debate of whether stock market is associated with economic growth or the stock market can be served as the economic indicator to predict future. According to many economists stock market can be a reason for the future recession if there is a huge decrease in the stock price or vice versa. However, there are evidence of controversial issue about the ability of prediction from the stock market is not reliable if there is a situation like 1987 stock market crashed followed by the economic recession and 1997 financial crises. (Stock market and economic growth in Malaysia causality test).The aim of the study is to find the relation between the stock market performance and the real economic activity in case of four countries The UK, The USA, Malaysia and Japan. With my limited knowledge I have tried to find out the role of financial development in stimulating economic growth. A lot of economists have different view about stock market development and the economic growth.If we focus on some related literature published on this topic one question arisesIs economic development is affected by stock market development?Even though there are lots of debate on some are saying that stock market can help the economy but the effect of stock market in the economy especially in the economy is very little. Ross Levine suggested in his paper published in 1998 that recent evidence suggested stock market can really give a boom to economic growth. (REFERENCE)It is not really possible to measure the growth by simply looking at the ups and down in the stock market indicator and by looking at the rates of growth in GDP. A lot of things can cause in the growth of stock market like changes in the banking system, foreign participation in the in the financial market may participate strongly. Apparently it seems that these developments can cause development of st ock market followed by the good economic growth. But to check the accuracy one required to follow an appropriate method which would meaningfully measure whether stock price is really effecting the economic growth or not?In my work I have tried to find out the co integrating relationship between Stock price and GDP and tried to check if there is a long run and short run relationship between the stock price and GDP.The method used for the studies is Engle Granger co integration method. To do this I have used ADF (Augmented Dickey Fuller Test) to check for the stationary behaviour of the variables and then I have performed the Engle Granger Engle Granger co integration method followed by residual based error correction model. To check for the short run relationship I have used 2nd stage Engle Granger co integration method.To check the causal effect of the four countries stock market and economic growth I used Granger Causality Method. In this paper I have reviewed some studies of schol ars which I have discussed on the literature review part. This paper contains five partsPart two is about the literature based on the past wok of scholars. Part Three discussed about the Data. Part four is about the methodology, Results are discussed on part five and part six is all about the summary and conclusion of the whole study.In my work I have founded there is no long run relationship between stock market and economic growth in all four countries. In addition there is no causal relation between stock index yield and the national economy growth rate. The empirical results of the thesis concludes that the possibility of seemingly abnormal relationship between the stock index and national economy of these for countries.Literature ReviewStock market contributes to economic growth in different ways either directly or indirectly. The functions of stock market are savings mobilization, Liquidity creation, and Risk diversification, keep control on disintermediation, information gain ing and enhanced incentive for corporate control. The relationship between stock market and economic growth has become an issue of extensive analysis. There is always a question whether the stock market directly influence economic growth. A lot of research and results shows that there is a strong relationship between stock market and economic growth. Evidence on whether financial development causes growth help to reconcile these views.If we go back to the study of Schumpeter (1912) his studies emphasizes the positive influence on the development of a countrys financial sector on the level and the potential risk of losses caused by the adverse selection and moral hazard or transaction costs are argued by him how necessary the rate of growth argues that financial sectors provides of reallocating capital to minimize the potential losses.Empirical evidence from king and Levine (1983) show that the level of financial intermediation is good predictor of long run rates of growth, capital a ccumulation and productivity. Enhanced liquidity of financial market leads to financial development and investors can easily diversify their risk by creating their portfolio in different investments with higher investment.Another study from Levine and Zervos (1996) using the data of 24 countries found that a strong positive correlation between stock market development and economic growth. Their expanded study on 49 countries from 1976-1993, they used Stock Market liquidity, Economic growth rate, Capital Accumulating rate and output Growth Rate. They found that all the variables are positively correlated with each other.Demiurgic and Maksimovic (1996) have found positive causal effects of financial development on economic growth in line with the supply leading hypothesis. According to his studies countries with better financial system has a smooth functioning stock market tend to grow much faster as they have access to much needed funds for financially constrained economic enterprise s by the large efficient banks.Related research was done for the past three decades focusing on the role of financial development in stimulating economic growth they never considered about the stock market. An empirical study byMing Men and Rui on Stock market index and economic growth in China suggest that possible reason of apparent abnormal relationship between the stock Index and national economy in china. Apparent abnormal relationship may be because of the following reason inconsistency of Chinese GDP with the structure of its stock market, role played by private sector in growth of GDP and disequilibrium of finance structure etc. The study was done using the cointegration method and Granger causality test, the overall finding of the study is Chinese finance market is not playing an important role in economic development. (Men M 2006 China paper).An article by Indrani Chakraborti based on the case of India presented in a seminar in kolkata in October, 2006 provides some inform ation about the existence of long run stable relationship between stosk market capitalization, bank credit and growth rate of real GDP. She used the concept of the granger causality after using both the Engle-Granger and Johansen technique. In her study she found GDP is co-integrated with financial depth, Volatility in the stock market and GDP growth is co integrated with all the findings the paper explain that the in an overall sense, economic growth is the reson for financial development in India.(Chakraboty Indrani).Few writers from Malaysia found that stock market does help to predict future economy. Stock market is associated with economic growth play as a source for new private capital. Causal relationship between the stock market and economic growth which was done by using the formal test for causality by C.J. Granger and yearly Malaysia data for the period 1977-2006. The result from the study explain that future prediction is possible by stock market.A study focused on the r elationship between stock market performance and real economic activity in Turkey. The study shows existence of a long run relationship between real economic activity and stock prices Result from the study pointed out that economic activity increases after a shock in stock prices and then declines in Turkish market from the second quarter and a unitary (Turkish paper)An international time series analysis from 1980-1990 by By RAGHURAM G. RAJAN AND LUIGI ZINGALES shows some evidence of the relation between stock market and economic growth. This paper describes whether economic growth is facilitated by financial development. He found that financial development has strong effect on economic growth. (Rajan and Zingales, 1998)The study of Ross LEVINE AND SARA ZERVOS on finding out the long run relationship between stock market and bank suggest a positive effect both the variables has positive effect on economic growth. International integration and volatility is not properly effected by c apital stock market. And private save saving rates are not at all affected by these financial indicators. The study was done on 47 countries data using cross sectional analysis. In theory the conventional literature on growth was not sufficient enough to look for the connection between financial development and economic growth and the reason is they were focused on the steady state level of capital stock per workerof productivity. And they were not really concentrated on the rate of growth. Actually the main concern was legitimated to exogenous technical progress. (Levine and Zervos 1998)Belgium Stock market study with economic development shows the positive long run relationship between both the variables. In case of Belgium the evidences are quiet strong that Economic growth is caused by the development of the stock market. It is more focused between the period 1873 and 1935 basically this period is considered as the period of rapid industrialization in Belgium. The importance of the stock market in Belgium is more pronounced after liberalization of the stock market in 1867-1873. The time varying nature of the link between stock market development and economic growth is explained by the institutional change in the stock exchange. They also tried to find out the relationship to the universal banking system. Before 1873 the economic growth was based on the banking system and after 1873 stock market took the place. (Stock Market Development and economic growth in Belgium, Stijin Van Nieuwerburg, Ludo Cuyvers, Frans Buelens July 5, 2005)Senior economist of the World Banks Policy research department Ross Levine has discussed about Stock market in his paper Stock Markets A Spur to economic growth on the impact of development. Less risky investments are possible in liquid equity market and it attracts the savers to acquire an asset, equity. As, they can sell it quickly when they need access to their savings, and if they want to alter their portfolio. Though many lo ng term investment is required for the profitable investment. But reluctance of the investors towards long term investment as they dont have the access to their savings easily. Permanent access to capital is raised by the companies through equity issues as they are facilitating longer term, more profitable investments and prospect of long term economic growth is enhanced as liquid market improves the allocation of capital. The empirical evidence from the study strongly suggests that greater stock markets create more liquidity or at least continue economic growth. (Levine. R A spur to economic Growth)A lot of research has established that future economic growth is influenced by countrys financial growth, stock market index returns are another factor of economic growth. The researcher focused to extend their study they tie together these two strings and started analyzing the relationship between banking industry, stock returns and future economic growth. Research was done on 18 develo ped and 18 emerging markets and the results are positive and noteworthy relationship between future GDP and stock returns. Few important features can also be predicted such as bank-accounting-disclosure standards, banking crises, insider trading law enforcement and government ownership of banks.(Bank stock returns and economic growth q Rebel A. Cole a, Fariborz Moshirian b,*, Qiongbing Wu c a Department of Finance, DePaul University, Chicago, IL 60604, USA b School of Banking and Finance, The University of New South Wales, Sydney, NSW 2052, Australia c Newcastle raduate School of Business, The University of Newcastle, Newcastle, NSW 2300, Australia Received 29 September 2006 accepted 26 July 2007Available online 21 September 2007)Another paper was focused on the linkages between financial development and economic growth using TYDL model for the empirical exercises by Purna Chandra Padhan suggests that both stock price and economic activity are integrated of order one and Johansen-Ju selias Coin-integration tests for this study found one co integrating vector exists. It is proved by the spurious relation rule in this study the existence of at least one direction of causality. He described that bi-directional causality between stock price and economic growth meaning that economic activity can be enhanced by well developed stock exchange and vice-versa.( TitleThe nexus between stock market and economic activity an empirical analysis for India Author(s) Purna Chandra Padhan Journal International Journal of Social Economics Year 2007 Volume 34 Issue 10Page 741 753 DOI 10.1108/03068290710816874 Publisher Emerald Group Publishing Limited)Chee Keong Choong (Universiti Tunku Abdul Rahman Malaysia) Zulkornain Yusop (Universiti Putra Malaysia) Siong Hook Law (Universiti Putra Malaysia) Venus Liew Khim Sen (Universiti Putra Malaysia) Date of creation 23 Jul 2003 Tried to find out the importance of the causal relationship of Financial development and economic growth. The f indings of their study usin autoregressive Distributed lag (ARDL) describes about the positive long run impact on economic growth Granger causality also suggest same results.A study by Randall Filler(2000) using 70 countries data over the period 1985-1997 proves that there is a very little relationship between economic growth and stock market especially in developing countries and currency appreciation has occurred. From the result of the study we can see that an important role may be played by the stock market in an economy, and these are not essential for economic growth.However, another study on Iran by N. Shahnoushi, A.G Daneshvar, E Shori and M. Motalebi 2008 Financial development is not considered as an effective factor to the economic growth. The study was focused on the causal relationship between the financial development and economic growth. Time series data used for the study from the period 1961-2004. Granger causality shows there is no co integrating relationship betwee n financial development and economic growth in Iran only the economical growth leads to financial development.Establishing link between savings and investment is very much important and financial market provides that. Transient or lasting growth is the ultimate affect of the financial market. Economic growth can be influenced by financial market by improving the productivity of the capital, Investment to firms can be channelled and greater capital accumulation by increasing savings. To ensure the stability of the financial market potential regulation is important due to asymmetric information, especially at the time of financial liberalization.(Economic Development and Financial Market Tosson Nabil Deabes Moderm Academy for technology aand computer sciences MAM November 2004 Economic Development Financial Market Working Paper No. 2 )DataThe empirical analysis was carried out using the quarterly data for The UK, The USA, Japan and Malaysia. The data were collected from the DataStrea m for the period 1993I to 2008III. Economic growth is measured as the growth rate of gross domestic product (GDP) of each country with the help of stock prices SP. For the software processing I used Eviews 6.0 for the planned regression in order to get the results. The empirical analysis is done from the quarterly data from the stock market indices and the and the GDP between the first quarter of 1993 and the fourth quarter of 2008. All the data has been extracted from the data stream and expressed in US$. The data for Japan share price is from Tokyo Stock Exchange. Malaysias Share price is form Kuala Lumpur Composite Index, UKs is from UK FT all share price index and USA share price is taken from the DOW Jones industrial share price index.The nature of the Data is series used for the time series regression.List of VariablesUGDPUK GDPUSPUK Share priceLUGDPLog of UK GDPLUSPLog of UK Share priceUSGDPUSA GDPUSSPUSA (DOW Jones) Share priceLUSGDPLog of USA GDPLUSSPLog of USA Share priceM GDPMalaysia GDPMSPMalaysia Share priceLMGDPLog of Malaysia GDPLMSPLog of Malaysia Share priceJGDPJapan GDPJSPJapan Share PriceLJGDPLog of Japan GDPLJSPLog of Japan Share priceMethodologyCointegration long term common stochastic trend between non stationary time series. If non-stationary series x and yare both integrated of same order and there is a linear combination of them that is stationary, they are called co integrated series. A common stochastic trend is shared in Cointegration. It follows that these two series will not drift apart too much, meaning that even they may deviate from each other in the short-term, they will revert to the long-run equilibrium. This fact makes cointegration a very powerful approach for the long-term analyses.Meanwhile, cointegration does not imply high correlation two series can be co integrated and yet have very low correlations. Cointegration tests allow us to determine whether financial variables of different national markets move together over t he long run, while providing for the possibility of short-run divergence. The first step in the analysis is to test each index series for the presence of unit roots, which shows whether the series are nonstationary. All the series must be nonstationarity and integrated of the same order. To do this, we apply both the Augmented Dickey-Fuller (ADF) test. Once the stationarity requirements are met, we proceed Granger bivariate cointegration (1987) procedure. 30 International Research Journal of Finance and Economics Issue 24 (2009)Series Stationary TestIn this study I have used Augmented Dickey Fuller Test (ADF) to test the stationary of variables. The unit root test is usually used to confirm stationary of a series. The ADF is test for unit root where I have checked the Unit root and strong negative numbers of unit root is being rejected by the null hypothesis (level of significance). In this study I have used Augmented Dickey Fuller Test (ADF) to check whether the series is stationa ry or not. ADF test is based on the estimate of the following regressionis in this case variable of interest = , is the differencing operator,t is the time trend and is the random component of zero mean and constant variance.The parameters to be estimated are Null and alternative hypothesis of unit root test are,()()Here with the test we can find the estimates of are equal to zero or not. Y is said to be stationary if the cumulative distribution of the ADF statistics by showing that if the calculated ratio of the coefficient is less than the critical value according to Fuller (1976). If we accept the Ho the sequence is predicted to be having unit root and if Ho is rejected then we can say that the series doesnt have unit root. This proves that the series is stationary. The cointegration test can only be performed if both the sequences are all integrated of order I (1).Cointegration TestEngle and Granger (1987) first established the cointegration method. It is a method of measuring long term diversification based on data. Linear combination of two non stationary series shows that they are integrated in order one I(1) that is stationary. And this is a co integrated series.Cointegration Long term common random trend between non stationary time series. The linear combination of both the non stationary series can be stationary if both the variables are integrated in same order. Cointegration is a very powerful approach in the long term analysis because a common stochastic trend is shared in cointegration that mean two series will not drift separately too much. They might deviate from each other but in the long run but eventually the will revert back in the long run.If there is very low correlation between the series still the series can be co-integrated as high correlation is not implied in cointegration. The reason for choosing the method as it will allow us to check the move between the variable in the long run even there might be a divergence in the short run.T he first step in the analysis is check each index series whether the series for the presence of unit root which shows whether the series is non stationary. The method that I followed to do this is Augmented Dickey Fuller Test (ADF). I proceed the Granger cointegration technique 1987 when the stationary requirements are met.According to Engle and Granger (1987) to check for cointegration if both the variables and are integrated with order one the proposed method for cointegration residual-based test for cointegration (Engle-Granger method).So from the above method we can find the equationBy regressing withAnd after that and is denoted as the estimated regression coefficient vectors. After that I saved the residual from the above equation.Then,= is representing the estimated residual vector. If the residual is integrated with order zero that means the series for the residual is stationary, and and are then co integrated and vice versa. I have checked it by performing Augmented Dicke y fuller test on the residual series on level value with intercept only of each country.An in this situation (1, -) is called co-integrating vector if the series is stationary.Therefore is a co integrating equation, so, from it we can say that there is long run relationship between and.Granger causality testGranger causality test is applied if the relationship is lagged between the two variables to determine the direction of relation in statistical term. It gives information about the short term relationship between the variables.In terms of conceptual definition causality is consist of different ideas, this concept produce a relation between caused and results were agreed upon. Aristo defines that there exist a link between causes and results and without causes these results are impossible. And this is strong relationship.Some economists believe that the idea of causality is the mix of both theoretical and explanation and statistical concept. The frontline operational definition of causality is given by some economist, but Granger is the one who provided the information to understand it correctly and completely.Granger causality approach (1969), lets think the variable y is Economic Growth (GDP) and x is Stock price index, if it is possible to predict the past values of y and x than from the lagged values of y alone. X is said to be granger caused by and y is helping in predicting it. in case of a simple bivariate model, causality can be tested between stock market growth and economic growth. Granger causality run on the basis of the following bivariate regressions of the form(1)(2)Where GDP denotes economic growth and SP denotes the stock price index and they explain the changes in growth. Variables are expressed in logarithm form. The distribution of and are uncorrelated by assumption.From the equation one it can be said that current GDP is related to lagged values of itself and as well as that of SP. And equation 2 postulates same kind of behaviour for SP. Both the equations can be obtained by ordinary least squares (OLS). The f statistics are the Wald statistics for the joint hypothesis and F test is carried out for the null hypothesis of no Granger causality.The formula of f statistic isLagged term is defined here by m number of parameter is defined as k.Test result for Unit RootAugmented Dickey Fuller Model (ADF) is used to test the stationary of each variable. Null and alternative hypothesis describes about the investigation of unit root. If the null is accepted and alternative is rejected then the variable non stationary behaviour and vice versa is stationary.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test Japant statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%5%GDPLevel-2.653258-3.522887-2.901779-2.588280-2.693600-4.088713-3.4725581st Difference-9.053185-3.524233-2.902358-2.588587-9.003482-4.090602-3.473447Share PriceLevel-2.116137-3.522887-2.901779-2.588280-2.203273-4.088713-3.472 5581st Difference-6.899295-3.524233-2.902358-2.588587-6.844396-4.090602-3.473447Table 01 Unit root test for stationary JapanIf we have a look on the unit root test for the variables GDP and Share price to find out the stationary behaviour the Augmented Dickey Fuller Test with intercept and with intercept and trend in level and first difference. The t statistic value with trend is -2.653258 which is higher than the critical values in 1%, 5% and 10% critical value. The same applies with intercept and trend as the t statistic value -2.693600 is higher than the critical value in all the level of critical value. So from the nature of stationary behaviour we can say in level GDP shows nonstationary behaviour. And the first difference LnGDP is integrated with order one. In case of LnSP the results with intercept and with intercept trend in level are -2.116137 and -2.203273 which is higher than the critical values shows non stationary behaviour as they are higher than the critical value. Th e unit root test for the variables at first difference shows stationary as the t statistic value is than the critical value in all level and they are integrated in order one.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test Malaysiat statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%5%GDPLevel-1.195020-3.522887-2.901779-2.588280-1.933335-4.088713-3.4725581st Difference-5.951843-3.524233-2.902358-2.588587-5.923595-4.090602-3.473447Share PriceLevel-1.900406-3.522887-2.901779-2.588280-1.891183-4.088713-3.4725581st Difference-7.842122-3.524233-2.902358-2.588587-7.779757-4.090602-3.473447The unit root test result for LMGDP and LMSP values presented in natural logarithm. And the level values with intercept and with intercept and trend for LMGDP is -1.195020 and -1.93335 respectively. The values are higher than the critical value means the series has non stationary behaviour. On the other hand the 1st difference values with intercept and with int ercept and trend are -5.951843 and -5.923595 respectively. The 1st difference values are integrated with order one. And in the same way I did the ADF test to check for Stationary behaviour of LMSP in level and first difference with intercept and trend. The values in level are -1.900406 and -1.891183 with intercept and trend us higher than the critical value and the series is not integrated with order one. The first difference t statistic values are -7.842122 and -7.779757 with intercept and with intercept and trend respectively are less than the critical value in both the case implies that the series is integrated with order one.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test UKt statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%5%GDPLevel-0.690866-3.522887-2.901779-2.588280-2.377333-4.088713-3.4725581st Difference-7.474388-3.524233-2.902358-2.588587-7.439027-4.090602-3.473447Share PriceLevel-1.711599-3.522887-2.901779-2.588280-1.261546- 4.088713-3.4725581st Difference-7.254574-3.524233-2.902358-2.588587-7.391821-4.090602-3.473447The results from Augmented Dickey Fuller test (ADF) for UK GDP in level with intercept and with intercept and trend is 0.690866 and -2.377333 respectively. Both the values in level are higher than the critical value and are integrated in order 0 shows non stationary behaviour. The t statistic values in 1st difference with intercept and with intercept and trend are -7.474388 and -7.439207 respectively. Which suggest that the critical values are less than the critical values in 1%, 5% and 10% level. So from the above hypothesis it can be said that it series is integrated with order one. When I performed the unit root test using the same method the series in level with intercept and with intercept and trend the values in are -1.711599 and -1.261546 respectively. The values are higher than the critical values implies that they are not integrated in order one shows non stationary behaviour. Howe ver, the 1st difference value of log natural share price is -7.254573 and -7.391821 with intercept and with intercept and trend respectively. So from the result we can say that the series is integrated in order one in both the cases with intercept and with intercept and trend. So the series in first difference is stationary.Variableslevel/1stDifferenceAugmented Dickey Fuller Statistic(ADF) test USAt statisticvalueWith Trendt statisticvalueWith trend andIntercept1%5%10%1%

Concepts and Definitions in Operational Management

Concepts and Definitions in usable ManagementQuestion 1Answer OPERATIONAL MANAGEMENTOperational worry refers to managing the operations of an organization. Managing the operations means to manage the resources and follow the policies and procedures of any(prenominal) organization. The basic and most important operation of worry is to process the inputs into sidings to get desire results. The meaning of for sale management contains words i.e. resources, systems, conversion or transformation and outputs. (Business)These words kitty be explained as -RESOURCESResources are the man, veridical and money in the organization. Man or staff is the major or key requirement in an organization. Material is also in truth important because without availability of material doing cannot be possible. And money or capital is required for hiring staff and for purchasing the raw material so that the raw material can be converted into finished products through production.SYSTEMSThere is a syste m which every company has to follow. Every organization has some policies and procedures which helps the organization to achieve their goals and helps in profit maximization. If the civilize done in an organization is according to the plan accordingly it helps in attaining the goal of the company. Planning is the first and important step of management. Without planning no some other function can be performed in an organization.CONVERSIONConversion means converted the inputs (i.e. the raw material) into outputs (i.e. finished goods). In an organization raw material can be converted into work in progress and then into finished goods. When the material is transformated from inputs to outputs then this process is known as productivity.OUTPUTSOutputs are the final results which severally organization gets after conversion of inputs into finished products. If the jimmy of outputs is greater than the salute of inputs used then we can say that the value is added to product hence the o utput helps in increasing profits of company. (outputs)THE STRATEGIC ROLE OF OPERATIONS -CUSTOMER SATISFACTIONThe basic objective of operating systems is to satisfy the customers by giving them better products at low cost and by giving them better services than other companies . Consumers can be comfortable if the products are not too costly and easy on time. (Understanding operations management)RESOURCE UTILISATION some other major objective of operating systems is to utilize resources for the satisfaction of customer wants trenchantly. Customer service must be provided with the achievement of effective operations through efficient use of resources. Inefficient use of resources or inadequate customer service leads to commercial failure of an operating system.EFFICIENCYAnother objective of operational management is efficiency. Efficiency is must in every organization .Higher efficiency helps in less wastage of resources. If the resources are not wasted then it will lead to less p er unit cost of production. Efficiency helps in specialization of staff.QUALITYQuality is also another important objective of operational management. Every customer wants a product which is very good in quality and also with less cost. Quality helps in satisfying the customers and if the customer is satisfied then effective relation can be build between consumers and organization.ADAPTABILITY if the quantity and quality of the product is upto the mark and also the price of the product is low-cost then that product is survived in long run that means the product helps for future survival of the company.Question 2 Answer Production means in stages conversion of raw material into work in progress and from work in progress into finished goods. Production is an important and essential function of any organization. Without doing production no organization can survive or remain existing.CLASSIFICATION OF PRODUCTION SYSTEMProduction systems can be classified as Job-shop, Batch, Mass and fr ee burning production systems.Job-Shop Production When only one product or a few quantity of products are manufactured and the product which are produced is as per the stipulation given by the customers then that type of production is known as Job shop production. (products-services)AdvantagesIt helps in availability of more variety of products.It helps in up(p) the skills of the employees.More creative ideas of employees can be used in this method of production system.LimitationsMore staff is required as the productiin is few.High time consumed in less production.Production planning is complicated.More wastage of resources resulting in higher per unit cost of production.Batch Production When the production is done in lots or batches then this productionis known as batch production. In this type of production the lots are not producing continuously but in limited quantity. (production-system)Advantages price per unit is low.Batch production helps in job satisfaction.It helps in better utilization of resources.It requires low investments for production as the production is not done in pouch quantity.Limitations Handling of material is very difficult.More material is required hence more wastage of resources.Mass Production When the production is done in bulk quantity and continuous then that type of production is known as mass production. In this type of production the machines are arranged in a line.AdvantagesPer unit cost of every production is low.Less time is consumed in producing bulk quantity.With less material quantity higher production can be done.Mass production helps in less wastage of resources.LimitationsMass production requires higher investments and resources.If the machine used in producing bulk quantity is damaged or segmentation then whole production line will be stopped.Continuous Production When the production is done continuously i.e. the production starts from using the raw material and ends with finished products. This type of produ ction is done when the handling of material is fully automated. (continuous-production-system)AdvantagesLess time is consumed in producing more units.It helps in more utilization of available resources.It helps in less wastage of resources.Per unit cost is low in continuous production.DisadvantagesIt requires very high investment.If manufacturer want to do any change in any product then it is not posdible.Question 3 After critically evaluating the key operational opens, discuss which can be applied to management of service operations of Ryanair for the proactive management of customer experience. 15 MarksAnswer What is a lever? levers are initiatives that a client can undertake in localise to crash the desired impact. There is usually a limitless number of things a company can consider trying in order to improve their business. (Industry week)Five key levers to productivity improvement every dayThere are Five key levers for every day improvement. These levers can be explained a s 1. Cost structureCost structure is a method of determine how much it will cost a company to manufacture a product and how much profit will be recognized from manufacturing a product. It is very important to structure or manage the cost. So that the per unit cost of a product decreases and profit from that product increases. If the cost of the final output is more than the cost of the input then it can be said that the value is added to the product.2. Organization of workIn any organization if the working of the organization is according to the plans and policies then this also helps in better utilization of resources and helps in achieving of organizational goals. This helps in restructuring of an organization. (aggregate-sales-and-operations-planning)3. Business processesBusiness process is a collection of related structured activities that produce a specific product for a particular customer. This lever contains work as a team and if the employees of the company are worked toge ther without any chaos then it helps in improving the position of business because it is very important for every organization to work in cordinating with the employees. 4. Knowledge managementKnowledge management means managing the knowledge and information of an organization. Knowledge management helps in improving the performance of the company. With this lever an organization can do more innovations results in providing better products to consumers than their competitives. It also helps in continuous improvement of the organization.5. Information technology (IT)It is the application of computers to store,study and manipulate the data or information of the business. Business need to take charge of this lever and starts IT in its process. IT helps in storing and saving the data or information of any enterprise and that information can be used whenever it is required. This will help in reducing paper work in the organization. closing curtainThere are several levers which helps in improving everyday business works. These levers has to be integrated into business as soon as possible to drive the desired impact. These levers helps in achieving of organization objectives efficiently and effectively and improves the working of the organization.Referencesaggregate-sales-and-operations-planning. (n.d.). Retrieved from http//museum-madness.blogspot.co.nz/2011/12/aggregate-sales-and-operations-planning.htmlBusiness. (n.d.). Retrieved from https//www.boundless.com/business/textbooks/boundless-business-textbook/operations-management-10/introduction-to-operations-management-69/a-study-of-process-328-7195/ https//www.boundless.com/business/textbooks/boundless-business-textbook/operations-management-10/introduction-to-operations-management-69/a-study-of-process-328-7195/continuous-production-system. (n.d.). Retrieved from http//kalyan-city.blogspot.co.nz/2012/02/types-of-continuous-production-system.htmlIndustry week. (n.d.). Retrieved from http//www.industryweek.com/grow th-strategies/levers-mastering-marginsoutputs. (n.d.). Retrieved from http//www.open.edu/openlearn/money-management/management/leadership-and-management/understanding-operations-management/content-section-3.3production-system. (n.d.). Retrieved from http//kalyan-city.blogspot.co.nz/2012/02/what-is-production-system-definition.htmlproducts-services. (n.d.). Retrieved from https//www.archives.gov/preservation/products/definitions/products-services.htmlUnderstanding operations management. (n.d.). Retrieved from http//www.open.edu/openlearn/money-management/management/leadership-and-management/understanding-operations-management/content-section-3.4