Nursing Theory Analysis Essay

Introduction As nurses, it is important to have a basic understanding of the nursing practice by reflecting on various nursing theories and principles used across a variety of clinical settings. Nursing theories serve as the foundation or the guiding principle of the nursing profession. In this paper, I am going to discuss two theories – the Health Belief Model and the Social Cognitive Theory – and their relevance to the nursing practice. Health Belief Model The Health Belief Model, commonly abbreviated as HBM, is a psychological model that predicts and explains health behaviors of individuals based on their beliefs and attitudes towards a particular health-related issue. This theory explains that an individual’s beliefs and attitudes about certain health problems, self-efficacy, barriers, and benefits to perceived action help create health-promoting behavior. It was created in the 1950s by US social psychologists Kegels, Rosenstock & Hochbaum in response to the unsuccessful nationwide tuberculosis screening program (Thurmond & Popkess-Vawter, 2003). The core statements and assumptions of the Health Belief Model is that a health-related action should be adhered because it could help prevent the likelihood of negative health conditions, such as chronic illnesses and infectious conditions. Once individuals acquire positive expectations over a specific health-promoting action, they can then avoid the occurrence of negative health con ditions (Potter & Perry, 2006). Application of the Health Belief Model into practice It is believed that the Health Belief Model is the main model used in the nursing process associated with health promotion and education, as well as illness prevention and protection. It has been utilized to describe various health protective activities within the primary, secondary, and tertiary level of health care. This framework serves as the basis for helping individuals engage in primary and secondary illness prevention. For instance, when nurses provide specific instructions to educate individuals that diseases could be prevented, this is part of the primary prevention that is associated with increasing the health-promoting activities of the population. If the nurse, on the other hand, educates an ill patient about how a certain disease should be treated, and the things to be avoided to prevent the disease from getting worse, this is part of the secondary level of prevention that is associated with preventing negative health conditions (Thurmond & Popkess-Vawter, 2003). Accordingly, by providing primary and secondary prevention, the patients’ perceived benefits will likely increase their anticipatory actions and lessen health risks associated with their conditions (Bandura, 2009). Another good example of a Health Belief Model applied into nursing practice, is when a nurse creates a discharge planning education for a patient diagnosed with heart illness. By letting the patient know before discharge the importance of undergoing regular monitoring and follow-up, as well as teaching the patient to reduce risk-taking behaviors, it could help increase a patient’s health awareness and possibly reduce readmissions in the future. But most importantly, the nurse must help the patient become accepting of the belief that discharge health educations could increase self-efficacy and improve the overall quality of life. It is important to note that the Health Belief Model is entirely reliant on the ability of the nurse to produce meaningful interventions to stimulate the cognitive sphere of the patients in terms of their health beliefs and culture (Potter & Perry, 2006). By understanding the patient’s personal values, culture, and family history the nurse could tentatively formulate how the patient views or accepts a disease condition. Finally, nurses must learn to create questions that could help identify or explore the patient’s perception about the illness or disease, so that they could have a more concrete idea about the beliefs and attitudes surrounding health-associated  matters of the patient. With the help of the Health Belief Model, nurses could positively and effectively engage in health education with proper understanding of individual perceptions, values, and attitudes toward a specific disease being addressed. Social Cognitive Theory The Social Cognitive Theory is a learning theory based on the perception that individuals could learn new behaviors or skills by observing others (Sandoval, 2008). These newly learned behaviors can be central to the development of one’s personality or set of skills necessary for his or her profession. While it is believed that the environment in which a person grows up or becomes affiliated to may contribute to the development of learning and behavior, the cognition or the actual learning process is also important for the acquisition of new behaviors and attitudes. Proponents of the Social Cognitive Theory state that people could learn by observing other people, with the help of the environment, and through behaviors as the main factors for influencing human development (Miller, 2005). Application of Social Cognitive Theory into nursing practice In this theory, there are five core concepts including modeling/learning, outcome expectations, development of self-efficacy, self-regulation, and goal setting. Among these five factors, the most important factor for behavior acquisition is the modeling/learning process. That is very important for the nursing profession. According to the Social Cognitive Theory, effective modeling educates strategies and general rules necessary for dealing with various life situations (Bandura, 2009). This is similar to how the student nurses learn nursing skills during their college years. When student nurses started working with their clinical instructors, who are registered and practicing nurses, they are being taught new nursing methods so that they could learn how to deal with different nursing roles and practices in a wide range of health care settings and patient populations (Miller, 2005). The Social Cognitive Theory serves as a guide for student nurses to acquire new nursing skills they could use in their profession. For example, student nurses learn the importance of hand washing and sterile gloving technique before engaging in surgeries from their nurse instructors.  But they could not learn the proper technique of hand washing and gloving if their instructors would not imitate or demonstrate the step-by-step method of doing it (Bandura, 2009). This is a good example of learned behavior through direction observation of another individual, which is one of the core concepts of the Social Cognitive Theory. According to Sandoval (2008), the use of Social Cognitive Theory could effectively help student nurses develop certain skills they need throughout their nursing career. Conclusion The Health Belief Model and the Social Cognitive Theory both play an important role for the professional nursing practice. From the discussions above, we have learned that the Health Belief Model focuses on the ability of nurses to educate patients about health attitudes to help promote quality of life while the Social Cognitive Theory centers on learning or acquiring new skills. Student nurses may learn new nursing skills by observing their clinical instructors about the proper way of doing things (Potter & Perry, 2006). Both of the theories have their respective importance and functions for the nursing profession, and they could be considered as two of the main guiding principles of the nursing practice – one focuses on health promotion and illness prevention and the other focuses on learning skills needed by nurses to address patient needs. When both of these theories are effectively utilized, nurses could have increased confidence and level of education to support patients and become competent in their practice. References Bandura, A. (2009). SOCIAL COGNITIVE THEORY: An Agentic Perspective. Annual Review of Psychology. 52(1): 3–26. Miller, K. (2005). Communication Theories: Perspectives, Processes, and Contexts. NY: McGraw-Hill. Potter, P. & Perry, G. (2006). Fundamentals of nursing. St. Louis, MI: Elsevier Mosby. Sandoval, J. (2008). â€Å"Social Cognitive Theory: A Framework for Understanding Learning in a Nursing Student-preceptor Relationship how nursing students learn by doing In the Presence of a practicing nurse. Southern Nursing Research Society. 19(21): 22-29. Thurmond, V. & Popkess-Vawter, K. (2003). Examination of a middle range theory: Applying Astin’s input-environment-outcome (I-E-O) model to web-based education. Online Journal of Nursing Inf. 7(2).

Interview with Leonardo Da Vinci Essay

The Renaissance began in Italy. While it only a affected a small amount of the population, the â€Å"rebirth† of classical culture is revered today. The general idea of the renaissance is that in Ancient Greek and Roman times we were enlightened, and then lost the light in the â€Å"dark† ages, and then became enlightened again in the rebirth of classical culture. Setting: A stage with comfortable chairs, Leonardo da Vinci sitting in one chair, the host in the other. Host: Welcome to Talk Renaissance Live, I’m here with Leonardo da Vinci, the very definition of a â€Å"Renaissance man†. So tell the audience about yourself Leo. Can I call you Leo? Leo: Um sure. Well honestly I don’t know why people like me so much, I’m a terrible procrastinator. And while I’ve had a few successful paintings, a lot of my works were more of failed experiments. Host: That is still better than most of the population. And your scientific journals still have people wondering today. You had ideas, sometimes even working ideas for things that weren’t even conceived for most of the population until this last century. What was it like working for a commission? Leo: It was ok, once I had plenty of apprentices. Apprentices meant I could spend more time on enquiries of the scientific nature. Host: So why was the Mona Lisa smiling the way she was? Leo: Well now that’s something I swore I would never tell. Host: You’re no fun, and I was wondering. Why didn’t you publish and of the scientific advances you made? Leo: Well it was a different world back then. I had more respect then most people, but if I’d tried to publish my scientific thoughts then I would have been laughed out of the building. Or killed. Host: You mentioned having apprentices later in your career, how was it like being one yourself? And who were you an apprentice for? Leo: Well when I was 14 I apprenticed to the man known as Verrocchio. He taught me many things, both in theoretical and practical fields. Even after I qualified as a master artist I continued to collaborate with him, because he was a fine man. Host: That’s our time, when we come back from the break I’ll be sitting here with Johann Gutenberg. Host: And we’re back, sitting with me is Johann Gutenberg. You may not know who he is, but he was essential to both the Renaissance and what followed. Johann: Hello. Host: How about you explain to the audience about your important contributions? Johann: I brought the printing to Europe. Host: Yes, could you explain how? Johann: Was able to make a printing system that could mass produce books, and have it be economically viable. Host: And was it? Johann: Well it was for everyone except me really. I ended up with an enormous debt and then was sued for â€Å"misuse of funds†. Host: That’s unfortunate, did you win the court case? Johann: Of course not, and he had control of my bible printing press, and half of all bibles printed. Host: And could you explain why the printing press was important? Johann: As I understand it, it meant that books and news traveled to more people, and more quickly. It helped the Renaissance, and later facilitated the Scientific revolution. Host: Wow that was an informative interview, but now we have to go to commercial break. When we come back I will be talking with our final guest. Host: And we’re back! Now as you know with the Renaissance came the appearance of humanism. We have the father of humanism himself with us today, Francesco Petrarca! Petrarca: Hello. Host: As the father of humanism, could you explain to the audience exactly what humanism is? Petrarca: Humanism is a response to the clinical scholasticism. Humanists such as myself want to create a society where are all citizens are capable of engaging civic life, being eloquent of speech and pen. Host: I see, what is scholasticism? Petrarca: It’s something that seems to be prevalent in society today, preparing people to be â€Å"good† jobs such as doctors or lawyers. It emphasizes learning minor and unimportant details for careers that relatively few will partake in. Host: Asides from being the Father of Humanism what else have you done? Petrarca: I’m also a bit of a poet. And I came up with the concept of the Dark Ages, although that seems to have gone out of style as of late. Host: Well the thought as of late is that calling it the Dark Ages is oversimplifying. It portrays the idea that humanity was briefly enlightened, and then lost it’s way, and then was enlightened again- Petrarca: Exactly! That’s exactly the point I’m trying to make. Host: Well it doesn’t agree with what modern historians generally think. They’ve been trying to make an effort to be less Eurocentric, and to try to understand concepts of the past without changing the facts to suite our ideas of what should have happened.

Unknown Bacteria

In order to treat a disease correctly and efficiently, it is important to first identify the microbe that is causing the disease. Isolating the bacteria that is causing the disease and using an antibiotic that specifically targets that microbe, can help prevent or reduce the overuse of broad-spectrum antibiotics-which can lead to antibiotic resistance. When trying to determine the type of microbe that is causing a disease, there are a number of biochemical tests that are administered.The results of these ifferent tests are analyzed against the characteristics of different bacteria and the perpetrator is revealed. Method I subjected my unknown bacteria to 7 different biochemical tests in order to identify it. I first performed a streak plate in order to get an isolated colony that I could inoculate and perform the tests on. The Sulfur, Indole and Motility test (SIM), the Glucose Fermentation test and the Urea test to help identify my unknown bacteria.For the SIM test, I aseptically in oculated the bacteria into a tube of the SIM media and let it incubate until the next class period. I took the tube out of the incubator and irst observed it for the presence of sulfur as well as for motility. I then added 4 drops of Kovac's reagent to the SIM agar deep and observed the reaction. In this test, there are more than one enzyme and substrate involved. The sulfur part of this test the enzymes involved are Cysteine Desulfurase and thiosulfate reductase. Cysteine and thiosulfate are the available substrates that are in the media.If either enzyme is produced by the bacteria being inoculated, Hydrogen Sulfide will be produced and will combine with the Iron in the Ferrous sulfate that is already in the media and will roduce a black precipitate-which is a positive result. No production ofa black precipitate is a negative result. In the Indole part of this test, the enzyme involved is tryptophanase has been produced, I added Kovac's reagent to the media and observed it for a re d color-which would indicate a positive result. No appearance of red would be a negative result.Another test I used to identify my unknown was the Glucose Fermentation test. This test determines whether the bacteria produces an acid, acid and gas or an alcohol. For this test, I inoculated my bacteria into a tube of Glucose broth that contained a Durham tube. If, after incubation, there is a bubble in the Durham tube, that is a positive result for the production of gas. No bubble would be a negative result. The media in this tube contained the indicator Phenol Red. A positive result for fermentation to an acid is a yellow color. A negative result for acid production is red.The Urea test was another test I performed to try and identify my bacteria. For this test I inoculated my unknown into a tube of urea broth. I let them incubate until the next class period. Urease is the enzyme involved in this test that breaks down urea. Phenol red is the indicator used in this test in order to et ect a change in PH. If the pH is less than 7, the Phenol Red is yellow-which is a negative result. If the pH is greater than 7, that indicates the presence of the enzyme urease and the Phenol Red will be hot pink-which is a positive result. Forrest & Elliott, 2012) Results Test/Culture Escherichia coli Proteus vulgaris Klebsiella pneumonia Shigella flexneri Salmonella typhimurium Unknown #9 Sulfur Indole +1- Motility Methyl Red Voges-Proskauer Citrate Glucose Lactose Urea Phenylalanine Deaminase My unknown bacteria did not give off a black precipitate in the Sulfur portion of the SIM test so that was a negative result. It turned a pink color in the Indole portion of the SIM test so that was a positive result. The SIM media was cloudy around the area where I inoculated the bacteria, indicating it is positive for motility.The Methyl Red test produced an orange color, which was a negative result. The VP part of the MR-VP test produced an orange color as well, which is a negative result . There was no growth on the Simmon's Citrate media, indicating a negative result for that test. On both the Glucose and Lactose test, the broth was yellow and there was a bubble, which indicated that the bacteria produced and acid and a gas.

What is Branding Essay Example | Topics and Well Written Essays - 250 words

What is Branding - Essay Example It can therefore be used as a strategy to maintain customers as well as attract others. A strong brand is imperative for the intended purpose to be achieved. If it is a statement or slogan, it should as precise and short as possible. This should be something that target customers can remember at ease. Before branding is done especially for existing companies, it is vital to involve the customers. Constant communication with such people allows the companies know what kind of information or graphics to include. However, branding does not work at all times. In some companies, the introduction of new brands has culminated into loss of customers. For instance, one of the leading on-demand streams faced challenges when a number of its subscribers withdrew. This was caused by the effort of the management to change the logo. Companies which have already become established in the market do not need to have new brands. Some of these companies are price leaders in the market and therefore do not need such branding. Apart from being wastage of time and money, this development may also lead lose of customers. However, in the event a given company would want to develop a new brand, discussing with clients would be

Inspiring Policy on Disease- and Emergency-Related Issues Essay

Inspiring Policy on Disease- and Emergency-Related Issues - Essay Example cy is on the process of being revised as the policy network grapple with the issue of whether routine mammograms for women starts at the age of 40 or 50. This particular issue is dependent on the movements of the current health care reform being undertaken in America. In examining the trajectory of breast cancer policymaking beginning in the 1980s towards the 1990s, one can identify the glaring fact that a single policy could take years to be made. This is demonstrated in Lillquist’s (2001) study on breast cancer policymaking, which mapped out the timeline of the most important legislative achievement to date, The Breast and Cervical Cancer Mortality Prevention Act. Legislative hearings on this policy began in 1984 and this stage in the process took six years before a bill was finally introduced and passed into law in 1990 (Lillquist, p.20). The period taken by the process was, as a matter of fact, short in comparison with the conventional lawmaking since breast cancer as a health problem is considered a special case with special characteristics. According to Lillquist, the breast cancer issue became an amalgamation of environmental, racial, aging and feminist issues (p.24). These characteristics entailed the political leverage that helped expedite policymaking. It must be noted that during the 1980s, the policymakers are lukewarm to the issue, treating breast cancer as part of a wider health policy. Prior position during this period did not consider services as the government’s responsibility (Lillquist, p.19). Kasper and Ferguson pointed out that even when breast cancer has been identified as a social issue since the 1970s, public policy responses were minimal (p.18). But in the course of the legislative process, this changed because of the advocacies of the National Breast Cancer Coalition (NBCC). This group, which was composed of cancer survivors, worked tirelessly to raise the level of public awareness on the issue and get people involved. By the time a

Negotiating with the emotionally disturbed Essay

Negotiating with the emotionally disturbed - Essay Example Due to these reasons, the affected people become antisocial, depressed and dependant on people that are close to them. The 1992 terrorist attack in Munich affected many people whose family members or friends lost their lives. The press helped a lot but it was too late since the attackers had already accomplished their plan. Bergh and Lipscomb (1904) argue that anywhere that when the press is free, everything is safe. The riot at Attica in 1971 brought about the racial issue of the whites supervising a prison that mast of the inmates were blacks and Hispanic who were from urban areas. The primary grievances by the rioting prisoners were that there were cultural differences and basically lack of clear understanding among the prison warders. The reasons were confirmed and termed as a legitimate problem that could be addressed by the government (Irwin 1980). The Attica riot These factors have led to the increase of minority staff in prisons to prevent more riots in the prison. This is a factor that was sought in the whole country for over thirty years .minority workers are often very reluctant to relocate to rural areas where most of the prisoners have a the same ethnic background or in other cases the prisons are of the same race. Some workers also find it difficult to take jobs that can be viewed as racist given the fact that there is overrepresentation of minority prisoners in the justice system. These obstacles have not stopped the prisons to achieve the success of obtaining the racial balance and good ethnic representation of the workers in various prisons. Many researchers have paid little or no attention to the change in the correctional units and the whole impact of the racial balance when it comes to deploying the workforce in prisons nation wide (Wright and Saylor 1992). What happened at Attica brings about the subsequent realization of putting in mind the representation of the minority staff in all the prisons. In any organization in the world today, tea mwork among the workers in prison is very important for efficiency and very instrumental to attain a safe institution. In addition to that, it is crucial for all the prison officers to work closely with all the inmates to prevent more riots. When correctional officers work as a team putting aside problems like the racial diversities, it brings about effective work thus preventing more riots in future. The 1972 Munich terrorist attack This was a traumatic experience to the Germans. The Olympic Games were underway when terrorists killed many people that the incident was termed as a massacre. The Israeli Olympic team was kidnapped and mercilessly killed by Palestinians. The influence of the massacre to the contemporary culture is that the media has been given freedom to report on anything that can affect the country. In the world today, the media is very sensitive on terrorism matters and how it conveys it to the public. Palestines are viewed as terrorists and the world at large is ver y conscious when dealing with anyone from the east. The Jewish on the other hand are friends to the western countries like the united states and the UK.The effects of the attack is very evident in the contemporary society in that the migration of people from the east especially the Arabs to countries in the western world have been restricted due to the fear of terrorism. People from different continents today antagonize the Arabs especially the palatines because they are termed as terrorists and enemies of Israel. Since the day of the massacre, the Israelites have very good relationships with many countries worldwide. This is because people think that they were attacked for no reasons other than the history between the

Impacts of Keystone Holdings, LLCs Merger with Compagnie de Saint-Gob Assignment

Impacts of Keystone Holdings, LLCs Merger with Compagnie de Saint-Gobain - Assignment Example The Keystone Holdings tried to acquire the Advanced Ceramics Business of Saint- Gobain and thereby eliminate the competitor from the market for alumina wear tile. Government tries to ensure competition in the market and thereby maximum choice and minimum price to the customers. My goal in this essay is to portrait the impact of the acquisition on society and firms. Keystone is the holding company of CoorsTek, Inc. (CoorsTek), which is a leading technical ceramics manufacturer, supplying ceramics based products for use in defense, medical, automotive, semiconductor, and power generation applications, among others. Keystone is headquartered in Golden, Colorado with facilities in North America, Europe, and Asia. Keystone manufactures and sells alumina wear tile for use in high wear applications at its facilities in Golden, Colorado. Saint-Gobain is a highly diversified, multinational company, headquartered in Courbevoie, France. The Advanced Ceramics Business includes ceramic components such as hot surface igniters, electro-ceramic parts for household appliances, ceramic balls for high-performance bearings, automobile water pump seals, special components for the semiconductor industry, agricultural spray nozzles, and other dense alumina components, such as alumina wear tile. Saint-Gobain manufactures and sells alumina wear tile out of its Latrobe, Pennsylvania facility. Oligopoly is a market organization in which there are only a few sellers of a product. So the actions of each seller affect other sellers also. Mergers and acquisitions are mainly a part of the oligopolistic market. The alumina wear tile market in North America can be considered as an oligopolistic market as there are very few firms in the industry. As the alumina wear tile market is an oligopolistic market, any action that the Advanced Ceramics Business takes has an impact on other competitors like Keystone Holdings. If Advanced Ceramics reduces the price of their product, the other players in the market are forced to reduce their prices also.

Heated debate, Article Example | Topics and Well Written Essays - 250 words

Heated debate, - Article Example Rossi-Hansberg of Princeton University in their working paper are wondering whether there are ways of managing the impact of changing weather patterns by moving the location of economic activity. These writers note that about 90% of global production makes use of only 10% of the land available. When that 10% is threatened, activity may at least theoretically shift to bits of the 90% made more hospitable by climate change. Thus Messrs Desmet and Rossi-Hansberg created a model economy and battered it with various temperature rises to gauge its reaction. In this analysis, the two writers allow people to move around as they want in this response. In worst situations, freedom from movement does not make much difference since temperatures lead to a reduction of global agricultural productivity to almost zero, meaning â€Å"the end of human life on earth†. Nevertheless, in more moderate situations, rising global temperatures enhance agricultural productivity in northerly climes. Restrictions on movement on the other hand, dramatically increase the cost of welfare. This model is simplistic and suggests that limits on migration have a huge impact on the global warming costs. Mr. Mathew Kahn (University of California) claims that warming of the climate, will lead to vulnerable areas such as lower Manhattan to become less desirable in relation to rival centres such as New York’s suburbs, Manhattan and Chicago. It is therefore important that rational firms and workers to assess the dangers of floods or such and migrate, so as to raise the productivity of the destination locations as they appear. This move would come with its own costs and investors in places such as lower Manhattan property would for instance suffer big losses. Nevertheless Mr. Kahn argues that there may also be gains as activity shifts from ancient cities to more modernized areas. The conclusion of the article points to government involvement through such things as food flood insurance, for those living

Why The Lahad Datu Crisis In Sabah (Malaysia) Happened Research Paper

Why The Lahad Datu Crisis In Sabah (Malaysia) Happened - Research Paper Example Sabah has been a quota of the Malaysian alliance ever since the early1960s1. However, the Sulu Sultanate, which is situated in southern Philippines, has persistently asserted its historical and exclusive privileges over the zone. Furthermore, the Philippines have nevertheless to publicly descent its assertion that Sabah is a portion of its region. The government of Malaysia had requested the armed Filipinos in Lahad Datu to admit defeat for three weeks now without a success. Unfortunately, on March 5th, the army confronted the group and terminated the livelihood. The clash and subsequent military operations reportedly resulted into the killing of more than fifty people, inclusive of eight associates of the Malaysian police. The Malaysian ministry of welfare was fast to name the armed Filipinos as bombers. The government of the Philippines, which is presently accomplishing a peace treaty with Muslim separaties in the southern portion of the nation, also condemned the livelihood. Remar kably, the prime minister of Malaysia has yet to let go the notion that Malaysian opposition politicians have collaborated with the Sulu sultan in order to undermine the nation and bring down the presiding alliance ahead of the year`s universal polls. This research aims at analyzing the reasons why Lahad Datu crisis in Sabah (Malaysia )happened.... Thus, because of such restriction, the Lahad Datu crisis in Sabah was inevitable. This is because such limitations on travel will likely cause shortages on foodstuffs for the people, which is a dangerous action for people in such area. However, it is feared that the Sabah crisis is most likely to leave problems for both Malaysia and the Philippines for the coming future. Therefore, in order to avoid such crisis from happening, it is necessary that the officials of Malaysia and the Philippines settle for the last time the issue of Sabah. From research, the Philippines preserves a central regional entitlement to eastern Sabah, initially referred to as north Bomeo, through the custom of the Sultanate of Sulu. This claim is based on the idea that the domain of the sultanate has traditionally traversed from the Sulu archipelago into portions of northern Bomeo4. Therefore, because of such claims, the embassy of Malaysia in Philippines gives out a cheque of some amount to the lawful counsel of the beneficiaries of the Sultan of Sulu in maintain the terms of an pact made in 1878. Malaysia views the amount as a yearly cession payment for the disputed nation; however, the progeny of Sultan views it as a lease imbursement. Nevertheless, Malaysia has categorically canceled any Philippine local entitlement to Sabah as it infers the 1878 pact as that of cession and that it supposes that the inhabitants of Sabah had practiced their rights to independence when they decided to join the Malaysia confederation in 1963. Thus, analytically, it is because of such issues that led to the Lahad Datu crisis in Sabah. In addition, another reason for the Lahad Datu

Innovation and Change Essay Example | Topics and Well Written Essays - 1500 words

Innovation and Change - Essay Example It is therefore very important that knowledge on these important areas is effectively imparted on the people working for organizations and beyond. As such, this module has been a great source of very relevant knowledge and information on some of the contemporary issues that characterize innovation practices across the world. As realized in the readings, the essence of innovation is basically to provide efficient means and ways through which operations in the organization can be bettered. In the same way, innovation is normally geared towards increasing the productivity of the organization through improved production methods and efficiency. It was learnt that a very important aspect in the innovation process involves sourcing for the innovative ideas. In this regard, organizations are encouraged to develop a culture of innovation within the organization through inculcating the imperatives of innovation on the minds of the employees (Cooper & Edgett, 2010). Indeed, employees are the gr eatest assets any organization can effectively use to improve its innovation processes. It was realized that some of the greatest organizations like FedEx and Apple have successfully managed to become market leaders in their respective areas of operation courtesy of innovation. These organizations realized the importance of innovation from an early age and thereby developed very elaborate innovation infrastructure within them. As such, a culture of innovation is very essential in creating the positive change that is much important in the present competitive business environment. However, in addressing the sources of innovation in the organization, it becomes important to realize that some of the assumptions in the module might not always reflect the real picture on the ground. Creating an innovative culture within a particular organization is not really an easy undertaking. In order to create a culture of innovation within an organization, a lot of time is actually needed coupled wi th sufficient financial resources to invest in the innovation process. In any case, the realization of these needs is normally high for most organizations. It therefore implies that smaller organizations might find it much difficult to compete against much bigger organizations which can effectively funds their innovation processes. Without doubt, the success of any innovation process depends upon the proper implementation of the innovation strategy for the organization. The module also highlighted the concept of open innovation and how it can benefit organizations aspiring to benefit from innovation processes. Open innovation is normally the practice whereby organizations are encouraged to go beyond their borders and seek ideas for innovation from other organizations. Indeed, the imperatives of open innovation cannot be overemphasized. The process is very critical as a great source of ideas for organizations operating in very competitive environments. Knowledge never exists in isola tion. The growth of innovative knowledge therefore depends upon that sharing and developing of other innovative ideas from outside the organization. However, despite the seemingly important role of open innovation as captured in the module, it is realized that some organizations have always failed in their innovation processes through the aspect of open innovatio

Case Study - Writing a Management Consulting Letter to client Amanda

- Writing a Management Consulting Letter to client Amanda - Case Study Example Expansion should thus depend on social and economic factors such as consumer tastes and preferences. Through planning, Amanda and his workers can describe what they want to achieve and how they want to achieve it by providing a detailed description of how the objectives will be realized. Organizing human, physical and financial resources Amanda should develop and evaluate procedures that support the mission of the business and address specific needs. Failing to determine the best way to organize resources including personnel and resources may be a recipe for organizational failure. She should apply accepted management principles and practices that relate to personnel, financial and operational issues that directly affect the business. Having a well-written policy helps the business to address the procedures that support the needs of the business and its programs (Siobham, Morley & Forley, 2013). Human, physical, and financial resources are needed by this young firm in order to achiev e its vision and they should be strategically aligned in such a manner as to meet the organization's goals. She should realize that human, capital, and financial resources are transformational tools to an institution and enable it to achieve its functions. People who manage the business are an important component of its success and they should distinguish themselves with diligence, innovation, and dedication to the mission of the business (Robbins & DeCenzo, 2010; Shuck & Wollard, 2009). Each person should have his duty clearly defined and targets set within required timeframes to avoid laxity within the business. He should also share and develop the mission statement each time they are in a managerial meeting (Taylor, 2010). Perhaps the most difficult aspect of the organization is to handle the financial resources since there are several key components that need to be considered (Raja & Palanchamy, 2011). Leadership skills Leadership and management must go hand in hand since they a re linked together in business even though they are not the same (Perkins, 2008). Any effort by a business whether big or small to separate the two functions of a business is a recipe for failure and more problems for the business. As a manager, Amanda should plan, organize, and coordinate all the activities of the business and the same time acts as a leader by inspiring and motivating the employees of his small firm. Employees of today look at their manager as a leader and he should not assign trust but define for them a purpose in their jobs (Jackson, Meyer & Wang, 2012). She should organize workers to maximize efficiency and to nurture, develop talent and inspire results and this will ensure that the company remains effective and profitable with time (Wollard & Shuck, 2011). A leader should be in a position to provide feedback to the concerned people to avoid any mistake that is likely to occur in the course of management (Carter and Greer, 2013). Amanda should make his employees provide him with feedback concerning the nature of their duties and he should also provide them with feedback on how he manages the business. Management should clearly define goals of his team to ensure that they know what they are working to achieve and by what means and to enable them prioritize their workload. Recruitment process should be conducted in a slow but sure

UK Sportswear Industry Analysis Essay Example for Free

UK Sportswear Industry Analysis Essay There exists a separate sportswear sector which is spiritually owned by few colossal players in the market. In the recent trends sportswear are being used as a mean of fashion rather than for a specific function or performance and very few are used for sports purpose. During the last one year those parents who have less than 15 years of age children as compare to those who do not have children are 50% more likely to purchase sportswear, equipments and sports clothing. The research entails that consumer spending has increased because majority of the sportswear are being used as casual wear and the increased endorsements of celebrities and world-class players has heightened the sales to the peak specifically in case of sports clothing. Unfortunately majority of the retailers get crowded towards those areas which seem emerging and profitable and it results in worst scenario of price competition. UK Sportswear Industry Analysis: Current Size and Value of the Sportswear Sector: They perform as stimuli for majority of the consumers and lead buyers. Different festivals are organized which amplify demand all through summer. The entire economy is dealing with a critical situation where there exist credit crunch which has immensely affected the consumer behavior. During the economic upheaval consumers remained highly cautious and spending pattern has changed drastically. During 2009 major cut-back can be seen in non-essential spending specifically in case of sports footwear, sports casual and sports clothing. Furthermore the episode of FIFA World Cup in 2010 imposed fierce price competition among major retailers of UK where each one of them consistently focused on in-store revenue generation and profit maximization. It has been anticipated that the upcoming Euro and London Olympics in 2012 will surely boost the sales across diverse sports (like golf, skates, tennis, water sports, fishing and many more) and will create opportunities for major businesses operating the sports sector. It was also highlighted that the market share of sports clothing sector will amplify due to upcoming different festivals and events and new generation is also inspired by modern fashion trends. It was also highlighted sports clothing and performance wear had outshined sports casual wear and important performance wears like Nike footwear for football games remained preeminent as compare to casual Nike T-Shirts. According to Report Linker (2007) consumers spent 9. 7 billion pounds in the sportswear sector during the year of 2006. The amount was spent on diverse sports comprising of footwear, equipment, subscriptions, clothing and even participating in live sports events. The intact amount represents just 1. 2% of the consumer overall spending. Moreover it has gradually declined since 2002. One of the important facts reveals that the overall expenditure on sportswear sector is much higher as compare to consumer spending where government provides subsidies to the sector so that less well off customers can effectively participate. The government along with DCMS (department for culture, media and sports) give funding to local authorities and different sports councils. It also invests in schools, parks, leisure areas and pools. National lottery has also contributed a major amount in the industry. It has been estimated that just half of the population of adults dwelling in UK effectively participate in competitive sports otherwise majority of them simply perform general activities in order to keep them healthy and fit. Previously during 1970s and 1980s general activities comprise of swimming, aerobics, gyms and jogging. Later on expensive health clubs were formulated which provided collective service at one place. However the market is gradually moving towards saturation. Very few prefer challengeable and competitive sports like football and golf. Diverse specialized firms are providing services in the category of outdoor games. It has been estimated that the consumer expenditures on sportswear will gradually increase in 2011. According to Mintel (2009) sportswear was at the boom during 1990s however in the recent days the market is being consolidated. Most of the well known brands are being used for fashion and casual wear. The market is getting polarized and businesses are left with performance wear, fashionable cloths and comforting cloths while others are facing wobbly circumstances and challenging phase. However several opportunities have been highlighted and London Olympics is being considered as emerging golden days. During the period specialized businesses like Lyle Scott are continuously making efforts to sustain and further expand across the emerging markets and few firms are also highlighting the importance of heritage and nostalgia. It has been found that the consumer economy will boost and spending will increase towards performance sportswear which seems to provide prosperous environment in case of major retailers. Notwithstanding with the recent economic upheaval, the market value of the sports good industry accounts for 5,646 million pounds in 2010 as compare to 5,600 million pounds during 2006. It has been estimated that the market will grow at 4-6% from 2011 onwards. According to Verdict (2008) the intact sportswear market of United Kingdom faced sudden decline in the recent years. The key constituent of the overall market include outdoor equipments, sports gears and bicycles. The consumption pattern has decreased and majority of consumers are concerned about finances. They purchase cost effective outdoor equipments in order to sustain health fitness. Moreover bicycle buyers considered it as an effective mean of transportation. During the last five years sports footwear and clothing has increased from 4. 7% to 4. 9% however the market share of sports clothing sector has declined from 35. 2% to 32. 9% during 2003-2008. The government has introduced a green transport plan where it has provided tax incentives on bicycles. Consumers can save up to 50% of the price of bicycles through national insurance saving and unique tax programs. Moreover major sports events like World Cup, Ashes and Olympic stimulate the sales during seasonal purchases. Throughout the year sports events contribute a lot in reaching sales troughs and peaks. The sales forecast entails that the market growth rate in sports sector during 2008-2013 will sustain between 14. 7% and 13. 8%. In comparison to USA, dwellers in UK prefer own brands a lot. Due to prevailing adverse market conditions more and more buyers have opted own brands casual wears due to which retailers also decided to place their own brands in the retail stores. Prior to the economic upheaval, profit margin was high on own brands nevertheless due to the recent increase in the price of electricity and fuel sudden decline can be seen in the profit margin as well. Unfortunately the discretionary nature is too less and retailer cannot cut back on branded products. Moreover the level of competition is so intensive in own brand market of casual wear due to the oversupply from retailers of fashion based clothing therefore retailers have to rely on unique collections of branded sportswear in order to create a point of difference. Trends Analysis: Infomat (2008) presented the following trend analysis of UK Sportswear market: †¢ A move towards mid-prize market: More and more customers are moving towards the budget end of the market. †¢ Designs and Outlets: Discount retailing is gaining prominence in UK. In USA businesses gives discounts for 30%-50%. Although the concept is still immature in UK and it has been forecasted that as soon as specific brands like Gap, Marks and Spencer will expand in UK, the price competition will further get intensive. Moreover branded sportswear will be more preferred in UK in the upcoming years. †¢ Informality: Although there continue strict dress code policy in corporations, restaurants and other sectors even then management and subordinates believe that the policy must be eradicated and reflects that the entire industry is gradually moving towards informality. †¢ Sportswear: Slowly and gradually consumers understand the importance of sports and are moving towards sports sector. It is being considered as a leisurewear market and it is tending toward informality. The UK sportswear will expand as USA key players like Foot Locker and others have entered the market. †¢ Brand Extension: As businesses are introducing own brands, meanwhile they are also opting for brand extension to further extend the product width. †¢ Textile preference: More and more customers opt for textile garments due of comfort, and durability. It has forecasted that major technological changes in the textile sector are taking place and price will also increase in the nearest future. †¢ Prominence across fashionable sportswear: The younger generation gives more importance to trendy clothing and fashionable sportswear. It has been estimated that majority of the retailers will combine both function and fashion in order to meet the needs and requirements of potential customers. Global Analysis: Just-Style (2009) instigated that instead of uncertainty in workplace consumer showed positive attitude towards performance sportswear. They actively participated in soft sports. The research examined the magnitude impact of economic downturn on the industry and found that for the consecutive 4-years from 2003-2007 the market growth rate was 9. 4% where athletic footwear market contributed the major portion. In comparison to this fact, the worth of the industry declined from $144. 91 billion in 2007 to $142. 13 billion in 2009. The sales declined by 2. 2% from 2007 to 2009 in the category of athletic footwear. Worst situation was faced by North America, Europe, Korea and Japan and key analyst forecasted that the industry will gradually recover during 2009-2012. It has been assumed that the industry will further improve as the demand for sports trainers will gradually increase. The brief analyses of supply chain management in sportswear industry reveals that China owns the leading position in the export of textile and clothing. However Bangladesh is competing face to face with weekly wage rate half of that of China. About 40% of the world’s sportswear market and athletic market is captured by Nike and Adidas. Moreover globalization, preference towards casual wearing and observing sports at television will further boom growth in number of developing countries. Key Players in the Sportswear sector: According to Biz Ed (2004) all the way through finest streets of UK major changes have been made during the past 20 years. New names became prominent and dissolved however several brands successfully accepted change management and exist in the country as the major retailers in the sportswear industry. The top notch players in the retail sportswear business are as follows: †¢ JJB Sports plc: JJB Corporate (2010) acknowledged that the business was started in 1971 by John Broughton. Afterwards it was purchased by JJ Braddock which later on sold to JJ Bradburn. Subsequently David Whelan purchased the business and decided to keep the prior name of JJB. It owned 4 stores in 1976 which expanded into 120 stores till 1994 and meanwhile the company got listed in London Stock Exchange. During 1998 JJB Sports opted for the acquisition of a separate sports division and finally transformed into the biggest sports retailer across the country. Today it owns 250 different stores in UK and has further expanded into republic of Ireland. The average selling space ranges to 13,000 sq ft which resembles a large superstore involving finest layout management tools. The product portfolio comprises of bicycles, footwear, equipment, accessories, textile, golf and many more. The key proposition remains with quality brand and leisure services. It also stocks well known brands like Nike, Adidas, Reebok, Under Armour, New Balance, Speedo, Puma, Asics and many more. The business caters for Men, Women, juniors, Children and Infants as well. The business provides encrypted e-commerce platform for the convenience of its customers. One can also customize the color of the chosen brand online. †¢ John David Group plc: According to JD Sports (2010) the business was established in 1981 by John David. In 1996 it got listed in London Stock Market and at that time it owned 56 retail stores across different areas of the country. It is well known for its innovative visual sportswear collection. In 2002 it further expanded into 200 retail stores through different acquisitions which later on transformed into JD Sports. The corporation acquired 70 major stores from All Sports and provides finest casual and fashionable sportswear. The firm deals in both UK as well as in Ireland. It also acquired Scotts and Bank Fashion in 2004 and 2007 which provides online services to potential customers. The business also owns 57% share in Pentland Group. Today it operates 400 mega stores in UK and Ireland. It caters for Men, Women and Junior. They deal in clothing, footwear, stocks well known brands and many more. †¢ Pentland Group: Pentland (2010) instigated that the business was started in 1932 as a Liverpool Shoe Company which sold fashionable footwear’s. In 1973 it got listed in London Stock Exchange and during the same year it was renamed as Pentland Industries Limited. During 1984 it owned 55% share of the International Reebok and during 1989 the name changed to Pentland Group plc. In 1991 it sold all the shares of Reebok and acquired major UK brands like Berghaus, Speedo, KangaROOS, Mitre, Brasher, Red or Dead and Ellesse. Later on it also purchased Franco Sarto, Lacoste, Ted Baker, Box Fresh, One True Saxon, Hunter Boot, Radcliffe and Gio-Gio. It specifically caters for men, women and children. †¢ Blacks Leisure Group plc: According to Black Leisure (2010) the business was founded in 1985 by D Crawford Black. It was a dream of Thomas Black, the grandfather of D Crawford Black, who had a gold fever and entered into a ship building industry. Thomas Junior started the trading business. It gradually acquired major businesses like City Camp and Sports, Jackson and Warr and Milletts. The business later on merged with Greenfields and introduced Blacks Leisure Group plc. In 1988 the corporation acquired Alpine Sports. Today it owns 313 stores both in UK and republic of Ireland. The business specifically caters for adults. As per 2002, the worth of UK Sportswear market was calculated as 4. 05 billion pounds out of which sports clothing accounted for 2. 9 billion pounds and footwear accounted for 1. 15 billion pounds. The market is dominated by chief brands comprising of Nike, Adidas and Reebok. Moreover other specialized brands like Pentland, Hi-tech and Umbro also reflect prominent position in the potential market. For the past 10 years competition has further intensified and major players faced financial problems. In the last 20 years business operations have been further complicated and it has been estimated that major changes will place in the sportswear industry as trends are continuously changing and businesses need to consistently update and control business processes and operations.

Foreign Direct Investment (FDI) Inflow In Pakistan

Foreign Direct Investment (FDI) Inflow In Pakistan CHAPTER 1 Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to your country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before (Larkins and Dan, 1998). Foreign direct investment can affect the countrys economy in different ways. It can affect the GDP rate, exchange rates and government policies in different ways; the effects of foreign direct investment at GDP are very significant. In many countries it constitutes at higher percentages of GDP rates. When foreign investment comes to the country it means that the business activity flourishes in the economy. There will be more production taken place and more goods and services produced by whether incorporated or unincorporated companies, or individual firm or it can be group related to enterprises but in any case there will be more provision of goods as heavy investments are taking places in form of foreign direct investment. GDP is actually refers to the production of more goods in compare to the last year results so a countrys GDP will surely increases by foreign direct investment. Total output of the economy will be increased which increases the GDP level (Hoshi, Takeo, Anil, and Da vid, 1991). 1.2 Problem Statement To identify the relationship between interbank exchange rate, real GDP and Dummy variable with foreign direct investment inflow in Pakistan. 1.3 Research Hypothesis: H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. 1.4 Outline of the study Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. There will be more job opportunities as in developing countries like Pakistan unemployment is a basic problem too which will be solved by the inflow of foreign direct investment. There will be not be only the employment of people but all factors will be employed if foreign investment will come. Many countries like China, Singapore, South Korea and Malaysia are depending on this foreign direct investment and are moving towards the development quickly. Factor employments will create income generation and through the multiplier effects the round of spending will make the economy proper and developed. There are many nations who are poor and they cannot carry out some of the plans needed in their country like extracting of some natural resources which is very expensive and needs heavy machinery. Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. 1.5 Definitions Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). CHAPTER 2 LITERATURE REVIEW Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment also comprises of multinationals which open there operating branches in your countries and perform their business operations like production of goods and services so in USA inflow from multinationals also helps in creating trading activities like surpluses can be exports to outside countries to earn good amounts of foreign exchange which will appreciate your currency. Foreign direct investment resulted in 30% of the jobs in the manufacturing sectors. Inward FDI also led to the capital flow in USA which means higher productivity and living standards (Jaffee, Dwight, and Thomas, 1996). India is the second largest destination of FDI after China. It is been stated by the surveys of UNCTAD that India has been facing massive growth through Transaction Corporation. The areas which has been strengthen through the inflow of foreign direct investments are, telecommunication, information technology and other major areas like chemicals, apparels, auto components, jewelry and pharmaceuticals. There are high investments from Mauritius mainly due to the routing international funds through the country giving significant capital gain tax advantages; as tax will be treated between India and Mauritius so double taxation will be avoided. On the other hand Mauritius is capital gain tax heaven so there will be zero tax in FDI channel (Hoshi, Takeo, Anil, and David, 1991). FDI inflows into India reached a record $19.5 billion in fiscal year 2006-07 (April–March), according to the governments Secretariat for Industrial Assistance. This was double of US $7.8bn in the previous year. In 2008 FDI was more than $35bn. Government of India has created many incentives for the investors. The areas which need more relaxations were civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining. Due to the foreign direct investment the economy of India is getting prosperous, economic growth is coming into effect. The potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India. FDI is also hitting the country of Morocco with its affects. It is ranked among 4rth in foreign direct investment ranking, according to the United Nations Conference on Trade and Development. Other 72 projec ts were also been approved in 2008 as statistics have shown. FDI increases the job opportunities to 40,023 which were direct and stable. Morocco is making many steps in making it clear destination for foreign direct investment which is really good for its economy and its people overall. Though there was a decline in foreign investment of 29% in 2008 due to the economic downturn but after then it will raised up to the level where it gets god image. The major investors of Morocco are European Union with France (1.86bln), Spain (783mln). Arab countries also invest in Morocco. In terms of sectors, tourism has the biggest share of investment with $1.55bln, which is 33% of the total FDI, followed by the real estate sector and the industrial sector, with respectively $930mln and $374mln (Harris and Ravenscraft, 2008). The best thing which is hit by foreign direct investment is the opportunity for the citizen of host country that is of employment and skills development. Through investment by companies of abroad business activity taken place in the country, more goods will be demanded so there will be more need of factors of production so that the demand will be meeting up. For this purpose more people will be employed by those companies and in return people enjoy good wages and higher living standards. Secondly to make the product internationally acceptable and of great quality many training programs are also been conducted which enhance the skills of the employees and their efficiency level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant. Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training. FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative adv antages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase. If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit (Harris and Ravenscraft, 2008). Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does not generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Froot and Stein, 1991). Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industrializes encourage foreign direct investment (Campa and Goldberg, 1995). It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. Foreign Direct Investment (FDI) has emerged as the most important source of external. Apart from exchange rates and GDP level inflow of foreign direct investment also effects your democratic government; like how they reshape their policies and incentives. Like if you investors are investing in your country they also will need some of the free hands incentives which will more attract them to invest. For this purpose the government of host country will be reshaping their policies somehow like low corporate and income tax rates, tax holidays will be given to them, special economic zones will be created, export processing zone will be come into existence, financial subsidies, infrastructure subsidies, RD supports and many other things to relax them so that they will invest more (Rodriguez, 1998). Besides all these foreign direct investment will be having great impact on GDP level. Local output will increase as more production of gods will be taken place. More production means that your country is having more number of commodities ever than before so real output is increasing means GDP level. Increase in GDP will surely have good effects on your economy. Economic growth will come into effect. More employment will be there and factor payments will lead to the multiplier effects which means more and more income generation and economy will reaches to its equilibrium level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training (Huang and Walkling, 1997). FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative advantages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase (Itagaki, 2000). If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit. Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does nohat generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Craine, 1999). Economic growth may mean that we are using are scarce resources swiftly so that they can depleted. Oil, coal, metals other natural resources are in limited supply and can be run out if we use them so quickly. If they do run out then there can be no more capital goods, food supplies may diminish and the population of world may suffer but this can be control through conservation process. Conservation means that you saved up some amount of scarce resources for our future generation rather than consuming it all at once for present people so by it we can save for the upcoming people of the country (Klein and Rosengren, 1994). Foreign direct investment if comes in the country so that will be definitely mean that more and more factories will be opening in the host country or if it comes for the existing factories like extracting of some natural resources etc so that means expansion of those factories. More and more factories and business sites means that there is though more land is available to produce more goods and services but less for other activities like recreational activities or parks etc. these can also destroy the plants and animals. The solution to this problem is that government should restrict the areas where these factories can be located and only allow there to operate. Those areas should be keeping away from residential locations so that normal citizens should not get affected. Factories should be more on barren land and regions so that fertile lands and animals would not get affected too. Growth also comes with many benefits so government cannot stop it. The best thing in this situation go vernment tries to do is to achieve sustainable growth. Sustainable growth means that along with the foreign investment, which is coming into the country government should try to minimize the harmful effects and should maximize the benefits so that resources and further things can be secured for the upcoming generations too (Hartman, 1992). There are also some of the negative aspects of foreign direct investment. There are some issues which are related like operation, distribution of the profits made on the investment and the personnel.economic backward section is always get effected of the host country when foreign direct investment is negatively affected. It is the responsibility of the host country to limit the effect of the foreign direct investment. They should make sure that countries which are making foreign direct investments should abide all the laws relating to environmental, governance and social regulations that are laid down country. However there can be some negative effects of economic growth too, means higher and higher GDP can affect your economy and people in it in a different manner too. There can be an opportunity cost of growth; economic growth may achieved by producing more capital goods but at the expense of less consumer goods like television, fashionable clothes etc but this can be in short run as in long run people will be enjoying more and more consumer goods and higher living standards due to the sustainable growth which has been achieved (Baldwin and Krugman, 1999). CHAPTER 3 RESEARCH METHOD This chapter explains the methodology used for this research study. This study focused on finding the factors affecting inflows of foreign direct investment in Pakistan. A method is a tool that can help solve problem and research new knowledge. This chapter also gives the methods to evaluate validity and reliability of the research for the factors associated with direct investment in Pakistan. 3.1. Data used: This research was carried out through Secondary Data. 3.2. Method of data collection: Data of Foreign Direct Investment and Real GDP is collected through State Bank of Pakistan, website and from Economic Survey of Pakistan and Data for Interbank exchange rate was collected through different websites like www.Oanda.com and www.indexmundi.com. 3.3. Sample size: Sample data of last 39 years is to be taken. Data has been taken from the year 3.4. Statistical tool used: In order to measure the relationship between the To Identify the relationship between Interbank Exchange Rate, Real GDP, and Dummy variable with Foreign Direct Investment Inflow in Pakistan. Regression is used as a statistical tool in this research. SPSS software is used to evaluate the relationship between the variables. CHAPTER 4 RESULTS 4.1. H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.1.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable set will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.1.2 From the above table the beta value of the exchange rate is -4011.980 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.1.3 For resolving the issues of autocorrelation and multi co-linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.1.4 From the above table the beta value of the exchange rate is -0.31 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.2. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.2.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.2.2 From the above table the beta value of the real GDP is 4243.439 means that there is a positive relationship exists among the real GDP and the FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.2.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.2.4 From the above table the beta value of the real GDP is -.438 means that there is a negative relationship exists among the real GDP and FDI therefore hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.3. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.3.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.3.2 From the above table the beta value of the dummy variable/democratic government is -17128.3 means that there is a negative relationship exists among the dummy variable/democratic government and FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.3.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.3.4 From the above table the beta value of the dummy variable/democratic government is -.107 means that there is a negative relationship exists among the dummy variable/exchange rate and FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. CHAPTER 5 DISCUSSION,CONCLUSION, IMPLICATIONS, AND FUTURE RESEARCH 5.1 Conclusion: There were number of positive and negative effects of this foreign direct investment. The positive effects of foreign direct investment are; the investment means that foreign currency is coming into Pakistan. Whenever any company may be multinational invested in this country in terms of direct investment it means that they invested their currency into the country. It increased the foreign exchange reserves which are good for host country as they can be used in payments of debts or any kind of imports etc. Secondly more goods and services have produced and which can be exported to outside countries; so more foreign exchange can be earns through it. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industria lizes encourage foreign direct investment. Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before. New technologies in shape of new capital equipments and software which can make factories totally automated will lower all the average costs and make it more efficient that it ever can be. Besides all of these sometimes local firms can also be squeeze out of the market due to the inferior equipment and much smaller resources than the large giants with foreign investments. This is the work of government that how they reshape their policies to bring in foreign direct investment into your favor and not letting down the overall economic conditions. Profits which may earn here can also be sent back to the base country rather than kept for the re investment in the host nations. Some multinationals also impose their cultures in the people of the host country. To avoid all this state should interfere with all the consumer protection laws, unfair competition, laws for employee protection, environment protection and also of location of industry. 5.2 Discussion and implication: Apart from these things when foreign investment comes into the country so then means that new opportunities could be created for many other firms too like they supply components and other things to the companies who are operating over here and has invested which will generate more employment and income for the citizens. Local firms can also be motivated to bring their quality up to the international standards as if they are supplying components to the multinationals. This thing will improve their productivity and it is good for the country so foreign direct investment is very beneficial. Foreign direct investment will bring in investments and hot inflow of money and capital along with the tax revenues for the government even after some exemptions. Companies or individuals who operate in your country after investment will pay some taxes to the government too. Government can re invest those revenues in other sectors for the welfare of the general public like in health or education sectors etc. 5.3 Future research: For future research, there are many advantages of high GDP rate like people can have more goods and services to consume; it will raise their living standards, secondly excess goods can be exported to outside countries so that foreign exchange can be earn through it. Higher GDP will give good image to the country in terms of many things; more and more foreign investors will come with their investments. People will be earning more so they can afford more other goods to purchase and secondly more incomes means more taxation for the government which it can spend on many other projects like schooling, health, defense, crime control etc. growth should result in improved standards of living in the country and higher profitability for the business. Foreign Direct Investment (FDI) Inflow In Pakistan Foreign Direct Investment (FDI) Inflow In Pakistan CHAPTER 1 Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to your country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before (Larkins and Dan, 1998). Foreign direct investment can affect the countrys economy in different ways. It can affect the GDP rate, exchange rates and government policies in different ways; the effects of foreign direct investment at GDP are very significant. In many countries it constitutes at higher percentages of GDP rates. When foreign investment comes to the country it means that the business activity flourishes in the economy. There will be more production taken place and more goods and services produced by whether incorporated or unincorporated companies, or individual firm or it can be group related to enterprises but in any case there will be more provision of goods as heavy investments are taking places in form of foreign direct investment. GDP is actually refers to the production of more goods in compare to the last year results so a countrys GDP will surely increases by foreign direct investment. Total output of the economy will be increased which increases the GDP level (Hoshi, Takeo, Anil, and Da vid, 1991). 1.2 Problem Statement To identify the relationship between interbank exchange rate, real GDP and Dummy variable with foreign direct investment inflow in Pakistan. 1.3 Research Hypothesis: H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. 1.4 Outline of the study Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. There will be more job opportunities as in developing countries like Pakistan unemployment is a basic problem too which will be solved by the inflow of foreign direct investment. There will be not be only the employment of people but all factors will be employed if foreign investment will come. Many countries like China, Singapore, South Korea and Malaysia are depending on this foreign direct investment and are moving towards the development quickly. Factor employments will create income generation and through the multiplier effects the round of spending will make the economy proper and developed. There are many nations who are poor and they cannot carry out some of the plans needed in their country like extracting of some natural resources which is very expensive and needs heavy machinery. Foreign direct investment helps here those countries in carrying out their plans like Pakistan got assistance in running its steel mill operation etc. in this way foreign direct investment helps a lot third world countries. 1.5 Definitions Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). CHAPTER 2 LITERATURE REVIEW Foreign direct investment refers to the amount of participation that inflows from country a to country b like in many developing countries it comes from developed countries or it can also come in developed country as net property income from abroad. Foreign direct investment can be positive or negative which then results to the inflow of direct investment. It does not include investments which are done on purchase of shares. Investments can be come from wealthy individuals, public or private companies, government bodies, group related enterprises etc (Herring and Richard Willett, 1999). Foreign investment also comprises of multinationals which open there operating branches in your countries and perform their business operations like production of goods and services so in USA inflow from multinationals also helps in creating trading activities like surpluses can be exports to outside countries to earn good amounts of foreign exchange which will appreciate your currency. Foreign direct investment resulted in 30% of the jobs in the manufacturing sectors. Inward FDI also led to the capital flow in USA which means higher productivity and living standards (Jaffee, Dwight, and Thomas, 1996). India is the second largest destination of FDI after China. It is been stated by the surveys of UNCTAD that India has been facing massive growth through Transaction Corporation. The areas which has been strengthen through the inflow of foreign direct investments are, telecommunication, information technology and other major areas like chemicals, apparels, auto components, jewelry and pharmaceuticals. There are high investments from Mauritius mainly due to the routing international funds through the country giving significant capital gain tax advantages; as tax will be treated between India and Mauritius so double taxation will be avoided. On the other hand Mauritius is capital gain tax heaven so there will be zero tax in FDI channel (Hoshi, Takeo, Anil, and David, 1991). FDI inflows into India reached a record $19.5 billion in fiscal year 2006-07 (April–March), according to the governments Secretariat for Industrial Assistance. This was double of US $7.8bn in the previous year. In 2008 FDI was more than $35bn. Government of India has created many incentives for the investors. The areas which need more relaxations were civil aviation, construction development, industrial parks, petroleum and natural gas, commodity exchanges, credit-information services and mining. Due to the foreign direct investment the economy of India is getting prosperous, economic growth is coming into effect. The potential to be an economic superpower is going to depend on how the government can create incentives for FDI flow across a large number of sectors in India. FDI is also hitting the country of Morocco with its affects. It is ranked among 4rth in foreign direct investment ranking, according to the United Nations Conference on Trade and Development. Other 72 projec ts were also been approved in 2008 as statistics have shown. FDI increases the job opportunities to 40,023 which were direct and stable. Morocco is making many steps in making it clear destination for foreign direct investment which is really good for its economy and its people overall. Though there was a decline in foreign investment of 29% in 2008 due to the economic downturn but after then it will raised up to the level where it gets god image. The major investors of Morocco are European Union with France (1.86bln), Spain (783mln). Arab countries also invest in Morocco. In terms of sectors, tourism has the biggest share of investment with $1.55bln, which is 33% of the total FDI, followed by the real estate sector and the industrial sector, with respectively $930mln and $374mln (Harris and Ravenscraft, 2008). The best thing which is hit by foreign direct investment is the opportunity for the citizen of host country that is of employment and skills development. Through investment by companies of abroad business activity taken place in the country, more goods will be demanded so there will be more need of factors of production so that the demand will be meeting up. For this purpose more people will be employed by those companies and in return people enjoy good wages and higher living standards. Secondly to make the product internationally acceptable and of great quality many training programs are also been conducted which enhance the skills of the employees and their efficiency level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant. Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training. FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative adv antages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase. If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit (Harris and Ravenscraft, 2008). Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does not generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Froot and Stein, 1991). Foreign direct investment is basically the inflow of capital or investment from outside countries whether in shape of any kind of assistance or full operations like multinationals etc. foreign direct investment produce positive productivity effect on host countries. The main importance of this direct investment is that the adoption of the foreign technology, and gets to knew about many things through licensing agreements, imitation, employee trainings, process innovation, and link between foreign and domestic firms. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industrializes encourage foreign direct investment (Campa and Goldberg, 1995). It affects the economic growth by stimulating domestic investment, increasing human capital formation and by facilitating the technology transfer in the host countries. Foreign Direct Investment (FDI) has emerged as the most important source of external. Apart from exchange rates and GDP level inflow of foreign direct investment also effects your democratic government; like how they reshape their policies and incentives. Like if you investors are investing in your country they also will need some of the free hands incentives which will more attract them to invest. For this purpose the government of host country will be reshaping their policies somehow like low corporate and income tax rates, tax holidays will be given to them, special economic zones will be created, export processing zone will be come into existence, financial subsidies, infrastructure subsidies, RD supports and many other things to relax them so that they will invest more (Rodriguez, 1998). Besides all these foreign direct investment will be having great impact on GDP level. Local output will increase as more production of gods will be taken place. More production means that your country is having more number of commodities ever than before so real output is increasing means GDP level. Increase in GDP will surely have good effects on your economy. Economic growth will come into effect. More employment will be there and factor payments will lead to the multiplier effects which means more and more income generation and economy will reaches to its equilibrium level (Dewenter, 2008). Resource flows to developing countries over the 1990s and has become a significant Part of capital formation in the developing countries despite their share in global distribution of FDI continuing to remain small or even declining. The role of the foreign direct investment (FDI) has been widely recognized as a Growth-enhancing factor in the developing countries. The potential advantages of the FDI on the host economy are it promote the use and Exploitation of local raw materials, it enhances modern techniques of management and marketing, it eases the access to new technologies, hot capital inflow could be used for financing current account deficits, finance flows in form of FDI do not generate repayment of principal and interests (as opposed to external debt), it increases the stock of human capital via on the job training (Huang and Walkling, 1997). FDI allows you to access the use of raw materials of the host country which means that it will promote its usage, a country can get absolute and comparative advantages on the basis of it natural resources or any kind of material which can give it an edge. Secondly due to the foreign direct investment it is very sure that new technologies will be transfer to the host country and will make them more efficient and up to the international standards. Often multinationals carried out the training programs for the workers of host countries so in this case their expertise will be enhanced and their productivity will increase (Itagaki, 2000). If a country is facing current account deficit which means that its balance of payment position is worse and imports are higher than exports so here foreign direct investment plays an important role in financing your current account deficit. Hot inflow of money will offset your current account deficit with the flow of capital comes from outside countries in shape of inflow of foreign direct investment. That is how it affects your current account. The advantage of foreign direct investment is that it does nohat generate any interest payments or the return of principal amounts as opposed to the external debt. So in total foreign direct investment effect your GDP level, current account balance and your democratic government in different ways and mainly positive. Some negative effects of foreign direct investment are also here but that is depends on host government rules and regulations that how they strictly maintain the foreign direct investment into their favors (Craine, 1999). Economic growth may mean that we are using are scarce resources swiftly so that they can depleted. Oil, coal, metals other natural resources are in limited supply and can be run out if we use them so quickly. If they do run out then there can be no more capital goods, food supplies may diminish and the population of world may suffer but this can be control through conservation process. Conservation means that you saved up some amount of scarce resources for our future generation rather than consuming it all at once for present people so by it we can save for the upcoming people of the country (Klein and Rosengren, 1994). Foreign direct investment if comes in the country so that will be definitely mean that more and more factories will be opening in the host country or if it comes for the existing factories like extracting of some natural resources etc so that means expansion of those factories. More and more factories and business sites means that there is though more land is available to produce more goods and services but less for other activities like recreational activities or parks etc. these can also destroy the plants and animals. The solution to this problem is that government should restrict the areas where these factories can be located and only allow there to operate. Those areas should be keeping away from residential locations so that normal citizens should not get affected. Factories should be more on barren land and regions so that fertile lands and animals would not get affected too. Growth also comes with many benefits so government cannot stop it. The best thing in this situation go vernment tries to do is to achieve sustainable growth. Sustainable growth means that along with the foreign investment, which is coming into the country government should try to minimize the harmful effects and should maximize the benefits so that resources and further things can be secured for the upcoming generations too (Hartman, 1992). There are also some of the negative aspects of foreign direct investment. There are some issues which are related like operation, distribution of the profits made on the investment and the personnel.economic backward section is always get effected of the host country when foreign direct investment is negatively affected. It is the responsibility of the host country to limit the effect of the foreign direct investment. They should make sure that countries which are making foreign direct investments should abide all the laws relating to environmental, governance and social regulations that are laid down country. However there can be some negative effects of economic growth too, means higher and higher GDP can affect your economy and people in it in a different manner too. There can be an opportunity cost of growth; economic growth may achieved by producing more capital goods but at the expense of less consumer goods like television, fashionable clothes etc but this can be in short run as in long run people will be enjoying more and more consumer goods and higher living standards due to the sustainable growth which has been achieved (Baldwin and Krugman, 1999). CHAPTER 3 RESEARCH METHOD This chapter explains the methodology used for this research study. This study focused on finding the factors affecting inflows of foreign direct investment in Pakistan. A method is a tool that can help solve problem and research new knowledge. This chapter also gives the methods to evaluate validity and reliability of the research for the factors associated with direct investment in Pakistan. 3.1. Data used: This research was carried out through Secondary Data. 3.2. Method of data collection: Data of Foreign Direct Investment and Real GDP is collected through State Bank of Pakistan, website and from Economic Survey of Pakistan and Data for Interbank exchange rate was collected through different websites like www.Oanda.com and www.indexmundi.com. 3.3. Sample size: Sample data of last 39 years is to be taken. Data has been taken from the year 3.4. Statistical tool used: In order to measure the relationship between the To Identify the relationship between Interbank Exchange Rate, Real GDP, and Dummy variable with Foreign Direct Investment Inflow in Pakistan. Regression is used as a statistical tool in this research. SPSS software is used to evaluate the relationship between the variables. CHAPTER 4 RESULTS 4.1. H1: Inter Bank Exchange Rate has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.1.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable set will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.1.2 From the above table the beta value of the exchange rate is -4011.980 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.1.3 For resolving the issues of autocorrelation and multi co-linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.1.4 From the above table the beta value of the exchange rate is -0.31 means that there is a negative relationship exists among the exchange rate and the FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.2. H2: Real GDP has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.2.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.2.2 From the above table the beta value of the real GDP is 4243.439 means that there is a positive relationship exists among the real GDP and the FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.2.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.2.4 From the above table the beta value of the real GDP is -.438 means that there is a negative relationship exists among the real GDP and FDI therefore hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. 4.3. H3: Democratic Government has a positive impact on Foreign Direct Investment Inflow in Pakistan. Table 4.3.1 The adjusted R Square value of the above table is 0.944 or 94.4% it means that the one unit change in the independent variable sets will bring out the 94.4% change in the variation of dependent variable. Form the above Durbin Watson value it seems that there is a presence of the auto correlation in the data set lag generations or transformations would be resolve this issue. Table 4.3.2 From the above table the beta value of the dummy variable/democratic government is -17128.3 means that there is a negative relationship exists among the dummy variable/democratic government and FDI therefore, our null hypothesis is not rejected. The VIF values indicate that there is also a presence of multi co linearity in the data set. Table 4.3.3 For resolving the issues of autocorrelation and multi co linearity suitable transformations were applied on the data set in order to prepare the appropriate results. After applying the transformations the adjusted R Square value of the above table is -0.061 or -6.1% it means that the one unit change in the independent variable sets will bring out the -6.1% change in the variation of dependent variable. Form the above Durbin Watson value it seems that after the application of the transformation the problem of auto correlation in the data set has been resolved. Table 4.3.4 From the above table the beta value of the dummy variable/democratic government is -.107 means that there is a negative relationship exists among the dummy variable/exchange rate and FDI therefore, our null hypothesis is not accepted. After the application of transformations the problem of multi co linearity in the data set is also resolved. CHAPTER 5 DISCUSSION,CONCLUSION, IMPLICATIONS, AND FUTURE RESEARCH 5.1 Conclusion: There were number of positive and negative effects of this foreign direct investment. The positive effects of foreign direct investment are; the investment means that foreign currency is coming into Pakistan. Whenever any company may be multinational invested in this country in terms of direct investment it means that they invested their currency into the country. It increased the foreign exchange reserves which are good for host country as they can be used in payments of debts or any kind of imports etc. Secondly more goods and services have produced and which can be exported to outside countries; so more foreign exchange can be earns through it. Foreign direct investment directly linked with the economic development of the host country and it also give benefit to the base country as they can access raw materials, can avoid trade barriers, will be near to the markets, can take advantage of cheap labors and lack of rules in host countries. Due to benefits host countries and industria lizes encourage foreign direct investment. Foreign investment proved as very important for the developing countries. In poor nations it is proves as significant driver of development. FDI provides many of the developing countries with great benefits which helped them in achieving their economic growth. Through foreign direct investment there will be many things which are coming to the developing nations. There will be inflow of foreign capital and funds which you can term as hot money coming to country. This capital can be invested into your business sectors to make it more worthy and profitable. Secondly there will be transfer of skills and technical expertise as if their entrepreneurs will come into your country and combine all the factors of production so then after results will be greater and larger than before. New technologies in shape of new capital equipments and software which can make factories totally automated will lower all the average costs and make it more efficient that it ever can be. Besides all of these sometimes local firms can also be squeeze out of the market due to the inferior equipment and much smaller resources than the large giants with foreign investments. This is the work of government that how they reshape their policies to bring in foreign direct investment into your favor and not letting down the overall economic conditions. Profits which may earn here can also be sent back to the base country rather than kept for the re investment in the host nations. Some multinationals also impose their cultures in the people of the host country. To avoid all this state should interfere with all the consumer protection laws, unfair competition, laws for employee protection, environment protection and also of location of industry. 5.2 Discussion and implication: Apart from these things when foreign investment comes into the country so then means that new opportunities could be created for many other firms too like they supply components and other things to the companies who are operating over here and has invested which will generate more employment and income for the citizens. Local firms can also be motivated to bring their quality up to the international standards as if they are supplying components to the multinationals. This thing will improve their productivity and it is good for the country so foreign direct investment is very beneficial. Foreign direct investment will bring in investments and hot inflow of money and capital along with the tax revenues for the government even after some exemptions. Companies or individuals who operate in your country after investment will pay some taxes to the government too. Government can re invest those revenues in other sectors for the welfare of the general public like in health or education sectors etc. 5.3 Future research: For future research, there are many advantages of high GDP rate like people can have more goods and services to consume; it will raise their living standards, secondly excess goods can be exported to outside countries so that foreign exchange can be earn through it. Higher GDP will give good image to the country in terms of many things; more and more foreign investors will come with their investments. People will be earning more so they can afford more other goods to purchase and secondly more incomes means more taxation for the government which it can spend on many other projects like schooling, health, defense, crime control etc. growth should result in improved standards of living in the country and higher profitability for the business.