The Difference Between International Banking And Global Banking Finance Essay

The Difference Between International Banking And Global Banking Finance Essay To define a banking system as International or Global is quite difficult because there is no clear-defined Bank system model. We can make a certain classification by looking at the way in which foreign assets are funded and liabilities are managed. The international model of banking system relies more in Centralised funding which means that assets funds and liabilities (gathered mostly by bank domestic market) are shared among the main Bank units and then allocated to other member of the banking group. While Multinational or Global Banking has a more decentralised tendency which means that funds and liabilities are local claims. To diminish our uncertainties regarding the banking classification we can see the currency in which rely the bank assets and liabilities. In this way we can see the dependency on foreign exchange of the cross-border funding. International Banking is very dependent on foreign exchange rather than Global Banking which use local currencies and consequently elimi nates transfer and exchange rate risks. Identify five ways in which a bank headquartered in the USA can fund loans to a borrower in Japan, and classify them as examples of international or global banking Real life examples can give us a better understanding of Banking System models. We can take into account a Bank which its main offices are situated in USA. We can distinguish five ways where this bank can fund loans to a borrower located in Japan. Looking carefully the way this funding is done, we can make a certain classification as International or Global Banking. USA customers deposit their money to Bank Head Office which follows these funds to Japan gives them as loans to Japan borrowers. Since this process involves cross-boundary it is considered as International Banking. USA customers deposit their savings to Head Office which in turn deposits these funds at its Bank Unit in Japan. The Bank unit can give these funds as loans to Japan borrowers. This is also an International banking system. Another way to move funds is that Head Office gets Japan deposits and in turn gives loans to Japan borrowers who need financing. So the whole process is done by the head office in USA without involvement of any bank unit or USA saver. This is International Banking classification again for the same reason. If a Bank unit in Japan takes deposits from Japan savers and gives these funds as loans to Japan Borrowers then we are in the same country, so it called Global Banking system. Still we have the same system as the last one when the USA saver deposit their saving to Bank units in Japan and the funds goes for Japan borrowers. The ratio of locally funded foreign assets to total foreign assets is referred to in the reading. What value will this take for a pure global bank? What will be the value for a pure international bank? Use the data provided in you case study to illustrate this. The foreign assets, especially the ratio of cross-border assets to locally funded ones, is the best measurer to classify a banking system as International or Global. Since it is difficult to have a banking system totally Global, this measurer ratio would be, (total local assets)/(total foreign assets)=1. For banking system totally International this ratio would be 0. If we have another measurer ratio such as, (total cross-border assets)/(total foreign assets)=0 for Global Banking and 1 for International banking. These are the sides of the segment and the most of the banks relies between these sides. Identify five reasons for the move away from international and towards global banking since 1980s. According to BIS reporting data at the reference Global Banking System, we can see the movement that banking system had during certain different periods. If we choose a starting point such as year 1980 till now, we can see that Global banks has been expanded more than International ones. Especially US Banks local claims has been increased by 400% instead of the foreign claims which were increased by 55% (Bis Reporting Data table). We can identify some reasons to explain how this shifting is done: Most of Bank strategies tended to increase their assets and liabilities in foreign markets. This goal is achieved by trying to make the saving customers into more credit card holders or mortgage customers. Another reason for the shift was by increasing the market of Bonds and Securities. So, the aim was to increase borrowers of local obligations or local government bonds. The period of 80 is known as Debt Crisis, where most of the banks couldnt pay back their debts (region as Latin America was most hit by this crisis and also other well-developed countries). In such Market Risk, moving toward global banking was a good solution to reduce risk. Also, having different currencies in different countries makes the exchange of currencies very risky for bank transaction and funding. So, having the funds in a country and investing those funds there eliminates this kind of risk. Acquisitions of cross border banks and by expanding existing operations was one of bank strategies that makes banks more and more global. If we look back at 90s the data show an increase of inflows in some developed countries by 21 % (UNCTAD (2001)) and this came by merging and acquisitions. Another reason for expansion of Global Banking are the countries restriction which are becoming more and more easy in the meaning that they are becoming more opening to new financial institutions. Having lots of country boundaries like financial laws or any other restrictions makes the global system quite difficult to enlarge. Why is Europe an exception? use data from you case study Reading through the article Global International Banking, we can see that the regions involved are mostly of USA or Asia. So, Europe its not so much involved in this kind of Globalisation. Even from the data in table 1 ( BIS Report 2001) we can see that Europe countries has a high number on international claims (Europe area shares almost 38.6 %of international claims vs all countries and Western Europe shares 62.2%) This is possibly due to the main head offices which are located in Europe, in countries like London, Amsterdam, Zurich and Luxemburg and thus they tend to have more cross-border activities. These activities are also strongly related to Europe money market. The goal is to have cross-border funds in order to strength the position of Euro currency and also to increase local claims in Europe. Also many large business companies tend to have securities and obligations in other countries outside Europe using the funds raised up in Europe in euro currency. Such activity increases the competition between these large companies and tends to avoid main retail transactions in Europe countries. Also there are other factors that exclude Europe from this shifting towards global systems such as, Institutional ones. The existence of Cartel groups makes difficult the shift because of the fear of losing the group value. Also most of the Europe banks are affected by different regulatory systems, differen t tax and labour laws, accounting and reporting systems, and also having different country restrictions in Europe, impede the shifting to global systems. Distinguish between Transfer Risk and Country Risk. How does global banking diminish Transfer Risk? Every banking system, International or Global involves certain kinds of risk such as Country Risk, Transfer Risk and other risks hanged on by the institution itself. Since these systems lay down in different countries, they face the countries restrictions e.g country economic, political, social. From this tendency comes factor such as interest rates, currency evaluation or other issues (not dependant on country economy, such as natural disasters) which may affect a lot the foreign investor. The risk that arises from the country, in which it is being invested, is called country risk. Part of such risk can be considered Transfer Risk. This is due to preclusion of exchanging the foreign currency to the country one to make transactions. The transfer risk is limited to country in the terms of the countrys demand for foreign currency and also to the foreign exchange which could fluctuate in different periods. Investing in one country and using those funds for loans or other possible invest ments, like global banking does, diminish the transfer risk in terms of currency devaluation. International banking involves funds transfer through the countries and in this way the transfer risk is at high levels. During the Argentine crisis, USD deposits and USD loans were treated differently by the Argentine authorities. Deposits remained in USD, while loans could be repaid in pesos at a devaluated exchange rate. What are the implications of this for global banking strategies? Include some data from the case study When a country is in financial crisis, happens that lots of foreign investors move away, inflation goes up, unemployment arises and other effects take presence in that country like Argentina in our case. The Argentine government took a decision to treat bank deposit in USD and loan instalments to be paid in pesos. Having peso currency depreciated, makes that the exchange rate between Dollar and Peso to be high (more peso for one dollar). When the exchange rate is high, the effect it has on interest rate is that it goes down. by keeping at low level the interest rate of the country, more money will be in circulation, and more cash flows for any investment. In this kind of situation, Argentina can be attractive to new investors, especially global banks which operate locally. The government decision has an effect on local claims in local currency. In this way the peso currency gains strength foreign reserve in USD can be kept at the same level as the cash circulation. Since the ratio lo cal claims versus international claims was 34% (table 1, BIS reporting (2001)) the government tented to increase such ratio. Argentina is a good example of shifting from international to global system because such a decision helps global strategies to be developed in this country and to diminish transfer risk. Part Two: Capital Flows in East Asia since the 1997 crisis In what sense can the net capital outflows from East Asia since the 1997 crisis be said to have supported the global economic and financial system in recent years? Explain your answer fully. The 1997 was a year to be remembered for countries like Thailand, Malaysia, Indonesia and other countries that form the East Asia region. Due to lack of financial system and poor governance, those countries were affected by stock market devaluation, asset prices going down and also currency devaluation. Having such financial problems, lots of investors move away causing capital withdraws. But since then, gradually improvements have been made by passing from account deficit to account surplus valued at $88 billion. Current account balance surplus or deficit shows how well the net foreign assets of that region are and in the calculation are included government or private payments of the certain period. The net capital flows from East Asia to other part of the world involved the creation of foreign exchange reserves. Viewing the data (BIS Quarterly Review (2003)) between two references of times 1998 and 2003, we can see that the region reserves has been growing time after time, increasing in this way the global reserve by almost 50%. But the usage of this reserve didnt focus on region domestic investment but to other part of the world. The country, which played a great role in region recovery, was United States. Having current account deficit in the same period, at about $240 billion (BIS Quarterly Review (2003)) United States imported for East Asia region a net value of $116 billion. In other word we can say that United States invested in Asian assets with high risk and the region gradually transferred the risk to global markets which want to diversify their investment portfolios. Despite this growing there are some criticisms regarding how well can this reserve be used on the region itself and not to the rest of the world. But what are the benefits from the yield of the foreign exchange reserve comparing to the investment inside the region. What can be the profits in each case? The region main profits on the first case are by balance payments in order to have assets in financial markets at the rest of the world, and this is called risk free global market. The other case is to invest in the region, and in this way to improve the regions financial market. Some critics believe that in the last case there will be much more profits than the first one and makes the reserve less rational. Another critic is done to the net Capital outflows in the sense of externalities involved in the process. As we all now, Externalities are behaviours or any financial decision which dont takes into account the country or region interest. In our discussion we can say that the resources of the region are putting into work for the other part of the world rather then for the private companies or corporate. In what sense have the gross flows of capital into and out of East Asia involved an international exchange of risk that is restoring and strengthening national and corporate balance sheets in the region and rendering the regions economies more resilient? Explain your answer fully. Capital flows have two point of view in which has to be seen, capital inflows or capital entering in the region and capital outflows or capital going out of the region. Both ways of flows involves risk in the process, but this risk involves different counterparties. What is in common, is that Capital flows in East Asia has been influenced by so called, Foreign Direct Investments (FDI) which was the main source of capital inflows in the region and data shows that before the 1997 crisis the region was receiving almost 20% of global FDI. Even after the crisis, the region had some difficulties to attract new investments but still the FDI were at high level, especially in China. The main FDI for the region are USA, Japan and investments between the regions countries. In 2002 East Asia was having 16% of net USA FDIs and 15% of Japan net FDIs. Also, having trade arrangement between regions countries is one of the possible investments flows. Being in an international exchange of capital flow s, it involves risk for sure and it comes in different forms such as, portfolio investments and bank channels. Equities of portfolio in the region went down after the crisis, especially in Thailand (80% between 1996 and 1998 (Graph 5, BIS Quarterly Review (2003)). Gradually region equity market got some strength and local equities versus international equity began to be more correlated. This was due to exports, industrial production and the region economy as a whole. Even, foreign bank lending to the region fell dramatically after the crisis. If we look at graph 6 (BIS Quarterly Review (2003)) we can see that Japanese banks reduce their claims on East Asia. Some of East Asia banks sold their debts to USA investor and other corporate bonds were sold in international market. In contrast to counterparties involved in the inflow of capital process, the outflow process is through bank channels. After the crisis East Asia began to buy securities of US Treasuries, US Agencies and some European and Japanese government debts which we know that they are low risk. Also banks began to have deposits outside the region, in international banks. Paying back low-risk debts and selling its own equities, East Asia was giving to the outside world secure capital and in turn its financial structures, such as corporate balance sheets were getting stronger. But if we compare the yield from capital inflows and the yield from capital outflows, data shows that East Asia during 1997-2002 is getting less than its giving. But, from this exchange of capital the region is getting liquidity. But, how much could East Asia earn if the capital on gross basis have been invested in the region and not to flow outside it. Till now, only USA had more benefit by East Asia, and local market bond of the region has been left behind.

Book Report on Wreck! :: essays research papers

First Entry – Suggestion Number 1 – Page 50 This fiction book is called â€Å"Wreck† and was written by Allan Bailie. The main characters are Ian Foster and Reene Thompson, they are two normal teenagers. Reene was told to baby-sit Ian while his parents are away. During this period a cyclone hits Albatross Beach and they barely survive it. Soon they seek shelter in a rusty old freighter on the beach. After, the cyclone erupts again and sets the boat out to sea. While on the boat they experience many strange happenings and realise they are not alone. Second Entry – Suggestion Number 6 – Page 80 I believe the writer was trying to keep suspense and did this by not giving any extra info and by putting in a few false alarms to keep you on your toes. The writer is also very descriptive which adds greats atmosphere and further suspense. I think the writer has a good imagination to be able to write in such a way. Another skill the author has is, he knows when and when not to be descriptive, that helps because a whole page description on something that has no relevance at all is not necessary Third Entry – Suggestion Number 5 – Page 100 Ian is shy and doesn’t seem very confident in the book; Ian explains it’s probably because of his dad who’s always putting him down because he can’t do something right. There isn’t mush about his interest in the book because the author keeps to the story line most of the time. Ian is afraid that he isn’t to his father’s expectations and that his father hates him. His experiences throughout the book make him a stronger person and I think he’s better for it. Reene also helps shape Ian into a better person. She is responsible, outspoken and strong-willed, Ian picks ups picks up a bit of it. Ian comes out to have a stronger mind, isn’t as reliant on others and isn’t afraid to voice his opinions. Fourth Entry – Suggestion Number 8 – Page 120 To me the ending wasn’t much of a surprise because they were on a boat with an unknown monster, they defeat the monster and are rescued which wasn’t much of an ending. This of course doesn’t mean the book is boring, just predictable. There are also many little things that happen along the way to keep this book interesting enough to keep reading.

Child Labor and its Effects Essay -- Child Labor

In today’s world, one would believe that the majority of Americans would oppose supporting a business that exploits the use of child labor to produce its goods. However, the odds are we all have in one way or another supported these businesses the last time we went shopping. Whether it is a toy for a child or a jacket to keep you warm, it was probably was made using child labor in one of the many different parts of the globe. The use of child labor is a major factor of the global economy in today's age of globalization where U.S. companies such as Nike, Reebok, or Wal-Mart have taken control of the market (Calucag). Western civilization has attempted to fight child labor for years now with little to show for it. The main reason has been the failure to come up with reasonable ways to communicate Western values and opinions on practices that should be eliminated and turn them into effective solutions. Third-world countries offer child labor (Low-cost Labor) as competitive advantage in the world market (Qadeer). As a result, companies from the west have let low-cost, high profitability, blind their morality. Consequently, rather than making sure no child labor is involved in the production of their product, companies have embraced it by running their operations in countries that allow it to occur. By doing this, companies are able to keep production costs as low as possible, thus increasing profits. Child labor is the employment of children who are under the legal minimum age. UNICEF defines child labor to be seen as happening along continuum, with exploitation on one end and the development of a strong work ethic on the other side (Stackhouse). When children are forced to work long hours, their ability to attend school or to co... ...izabeth. Child labor in sub-Saharan Africa . Boulder, Co.: Lynne Rienner Publishers Inc., 2004. Basu, Kaushik. Child Labor: Cause, Consequence, and Cure, with Remarks on International Labor Standards. December 1998. 21 11 2010 . Black, Ken. What is bonded labor? 08 september 2010. Burra, Neera. Born to Work. Oxford University Press, 1995. Calucag, Ernesto B. "International trade and labor (Popular Economics)." Business World (2004). Greenhouse, Steven. "Clinton to seek big increase in funds to fight child labor abroad." New York Times 7 february 2000. Qadeer, Mohammed. "why the third world still needs child labor; WORK." The Globe and Mail (Canada) 12 december 1996. Stackhouse, John. "UNICEF report says "child labor condemned hazardous work, betrayal of rights"." The Globe and Mail 12 december 1996.

Interview With The Vampire :: essays research papers

This novel, “Interview with the Vampire';, by Anne Rice, is by far one of the best book I’ve ever read. It started with a young boy interviewing a vampire, and the vampire related him the whole story of his life, how he became a vampire, his thrilling adventures through the centuries and his complex relationships with both the mortals and the immortals. In my opinion, Anne Rice had done the best of jobs. The writing and the detailed descriptions, the composing of this novel, had brought out every emotion of the characters like the flick of a whip. The rage, the love, the hatred, the sufferings, the darkness, the pain and the terror, were all presented so vividly as if in front of my eyes, as if I were really part of the character. I think Anne Rice had created the most successful characters. Throughout the whole book, you can really look at the conflicts between them. They are, somehow, attached or attracted by each other, both the mortals and the immortals. Their love and hate and struggles go to such degrees, and yet limited by their nature, it was almost impossible to understand it at all. I believe Anne Rice had used those characters to express humanity, the whole plot was some kind of an irony. Something like a metaphor, though she exaggerated everything to make it poignant enough. Not only were the characters a success, the time and place details were incredible. The costumes, ways of manner, history and every background changes as the years passed, and she made the backgrounds so realistic that I could almost feel everything surrounding me. Actually I think Anne Rice had done such a great job that this book should be counted as literature.

Drug Addiction Short Paper Essay

There are many myths about addiction whether it be alcohol addiction or drug addiction. One of these myths is that drug addiction is voluntary. Once someone becomes addicted to drugs it can change the person’s brain chemistry and drug use then becomes compulsive and uncontrollable. Another myth is that addiction is a flaw in a person. Once addicted to drugs the person can’t control their want/need for the drug. Another myth is that a person has to want to get help for their addiction in order to stop using drugs. I do believe this myth is only partially correct because I do think that someone needs to at least own up to the fact that they have an addiction problem. A court can order someone to get drug treatment which can help them to kick their habit but they must be willing to make an effort. Another myth is that people who are addicts can stop on their own without any treatment if they make an effort to stop. Most people suffering from addiction can’t stop on their own without getting treatment and if they do it isn’t long lasting. Another myth is that someone can’t be forced into treatment. People can also be coerced and remanded by a court into getting the help they need for their addiction. Many people also believe the myth that people only get treatment once they have hit rock bottom. This is simply untrue as many people get treatment before they have lost complete control over themselves and their actions. Or if they have been made to seek treatment by a court order or been coerced by friends and or family members. Some people realize they have an addiction and chose on their own to seek help before hitting rock bottom. While a lot of people think that there is one certain treatment for all addicts this is not the case. Addictions are different on a case by case basis and have to be tailored to each individual person. It simply would not work to treat every addiction in the same manner. A lot of people with addiction also suffer from some sort of psychiatric illness as well that needs to be treated. If a psychiatric illness is not addressed the person could slip back into addiction. Most drugs and alcohol (including marijuana) can become addictive if used to often. According to the National Institute on Drug Abuse over time marijuana can cause changes in the brain which can lead to addiction. Marijuana can also cause withdraw symptoms when the user stops using the drug. Which can lead to the person becoming irritable; interfere with sleep, and restlessness just to name a few. References: Marijuana. (n.d.). Retrieved May 25, 2015, from http://www.drugabuse.gov/publications/research-reports/marijuana/marijuana-addictive http://www.drugabuse.gov/publications/research-reports/marijuana/marijuana-addictive

Race and Ethnicity Essay

Stereotypes can convey characters and images quickly and clearly, so advertising relies on stereotypes as shortcuts to meaning. The time and space constraints of advertising and any other commercially driven message simply cannot allow for a complete representation of people from any given social group, but stereotypes can clue in to the importance responsibly. Depending on how they are formed and used, stereotypes can present problems. They can be used in functional or dysfunctional way. The functional aspects of stereotypes; stereotype is valuable to create classifications of individuals and serves as conventional characters. So, they are functional when they are accepted as a natural way to guide our expectations. Dysfunctional stereotype, a stereotype in which abnormal or impaired aspects of a culture are emphasized. So, they are dysfunctional when they are used as the sole way to wholly judge individuals incorrectly, seeing them only as part of group. An example of a functional stereotype is that the Germans are punctual, which is correct. On average, they are more punctual than many other peoples. Certainly, the Italians and the Spanish have a different concept of time. For the Spanish, knowledge of this aspect of the German culture means that they can adapt their behavior: when they are expected for dinner, 8 o’clock means 8 o’clock, and not 9 or 10 as it does in Spain. An example of a dysfunctional stereotype is the British saying that the French are dirty, oversexed, and ludicrously obsessed with their culture, and the French saying that the British are cold, uncultivated, hypocritical, and unreliable. Yes, the British are more reserved in the eyes of the French, just like now, Hong Kong people think the mainland people are dirty, low education level, no civic sense and so on — all these are dysfunctional stereotypes. However, it is necessary for the advertisements to consider the fact that the dysfunctional aspects of stereotypes far outweigh the functional aspects. Constant exposure of representation of social identity in stereotypical terms in media discourse can make people experience the dangers in real life. For instance, In 2009 „Coke Brrr side of life? television commercial, racial or national identity are presented in stereotypical terms. Problem arises when Blacks/Africans are more negatively stereotyped than Whites/Americans/Europeans and Japanese/Asians. Negative stereotypes generate negative social meanings or implications. By being depicted as lacking in seriousness in the midst of a serious world conference, the African representatives seem misplaced or misbehaved. The negative social implications of these Sambo stereotypes are that Africans are seen as less civilized and less educated than Europeans and Asians, and thus inferior to them. The negative racial stereotyping is inevitable. It is necessary for the producer of this commercial to exploit the functional aspects of stereotypes—creating classifications of individuals and as conventional characters in popular stories—to achieve their profit-oriented goal. What is more significant for the producer(s) to consider is the possibility of audience?s increasing anxiety that may be triggered by the broadcast of TV commercials with negative stereotypical representations like 2009 „Coke Brrr side of life? and the risk of this anxiety to become audiences and consumers? resistance to the commercial and the advertised product. If resistance happens, it is unlikely that the producer(s) can reach their profit-oriented goal. http://www. youtube. com/watch? v=99PC7AtabVk —

Consequences of China’s One Child Policy

HIST HP 264-002| Consequences of China’s One-Child Policy| | | In the mid 1950’s, China’s population grew rapidly under Mao Zedong. He felt that the only way for China to get back on its feet was to become industrialized and that China would need manpower for this industrialization. â€Å"Even if China's population multiplies many times, she is fully capable of finding a solution; the solution is production,† Mao Zedong proclaimed in 1949. â€Å"Of all things in the world, people are the most precious. † The population grew so dramatically that the country’s resources were becoming scarce. In 1979, just three years after Mao’s death, the â€Å"One-Child Policy† took effect. This law was implemented by Deng Xiaoping to curb the population growth. The original intent for this policy was economically based. There had been a great famine, in which many people lost their lives, and China wanted to prevent this from happening again. There was not enough suitable farmland to provide food for the entire population nor was there enough water. They wanted to reduce the demand for natural resources, maintain a steady labor rate, and reduce unemployment caused by surplus labor. China’s justification for this policy was based on their support of the Marxist theory of population growth. This policy has been called the largest population control effort in history. The policy is very controversial mainly due to the way enforcement has been carried out. While the policy itself has achieved its main goal, by preventing over 400 million births from 1979-2010, the long-term consequences for China will be great. The one-child policy has many regulations. China maintains that this a voluntary policy but the enforcement of the policy has proven otherwise. I will touch briefly on a few of the most important points of the policy. The policy states that both the husband and wife must both practice birth planning. Birth outside of marriage is not allowed. Couples are permitted to have one child. Late marriage and late births are encouraged. Couples who follow the policy and have only one child will be given a certificate to receive rewards and preferential treatment. Those who refuse to follow the policy and give birth to a second child will be fined from the month that the child is born. The wages or annual income of both husband and wife will be decreased by ten to twenty percent for seven years. Regarding pregnancy not adherent to the plan, both husband and wife will be imposed a fine monthly during the period of pregnancy. If the pregnancy is terminated, the fine imposed will be returned. China’s system in caring for the elderly after retirement is simple. The eldest son is generally responsible. In earlier days, this was not such a terrible burden. However, with China’s one-child policy, many families find themselves in quite a predicament when their one child is a girl. A girl is traditionally groomed to be married. When the time comes for her to marry, she leaves her family and becomes a part of her husband’s family. She then becomes responsible for helping her husband care for his aging parents. Thus, her own family will be left without support and care. Even in cases where the family’s only child is a son, the â€Å"4-2-1 Problem† is often created. There is an increased burden on the one child to provide for his aging parents and grandparents, in addition to his immediate family. (The 4-2-1 policy refers to 4 grandparents, 2 parents, and 1 child. If personal savings, pensions or state welfare fail and the single child cannot care for the older adult relatives, the older generations would face a lack of resources and necessities. This is just one possible consequence to China’s one-child policy. When mothers become pregnant for the first time, some manage to have an ultrasound to determine the sex of the baby. This is i llegal in China but still happen none-the-less. If the parents learn that this first child is a girl, it is sometimes aborted. This is due to China’s preference of boys. There are many reasons that Chinese families prefer boys. One reason is an old religious link to Confucianism that prefers sons over daughters. Another reason is that a son is believed to be stronger and better able to help the family with farm work. Also, as I stated earlier, a son will support his parents in retirement and take care of them. A daughter would leave her family and become a part of her husband’s family. Sex-selective abortions are leading to a decline in the female population, which will also have long-term consequences as well. In China, boys are considered to be so important culturally, that a family is looked down on if they do not produce a boy. Therefore, having a boy is a source of great pride for a family. As if they can control their baby’s gender, wives are often threatened to be sent back home to their own families if they cannot produce a boy. When a woman is sent back to her own family, it is considered to be very shameful for both she and her family. Also, she would now be seen as a burden to her own family. They would have another mouth to feed and would have to support her as well. This would create further hardships for her family. Another consequence is the danger associated with enforcing the policy. In the early years of the policy, there were drastic measures taken to ensure that the policy was enforced. Population control workers were hired to enforce the policy strictly. Forced abortions were common amongst these enforcement procedures. Portable ultrasound devices were used to identify candidates who were carrying second children in remote villages. Some mothers who were eight and a half months pregnant were forced to abort their babies. This was often carried out by injecting a saline solution directly into the mother’s stomach. If mothers did not go to the clinic willingly to have the abortions, they were dragged there by force. There have even been reports of mothers who were already nine months pregnant, and in labor, having their babies killed while they were still in the birth canal. This not only harms the unborn child but also puts the mother’s health at risk with the possibility of hemorrhaging, infection, or even death. After these forced abortions, these mothers were subjected to forced sterilization as well. This means that if the government ever changes their mind and retracts the policy, these mothers will have no chance of having another child. Often, a mother becomes pregnant with a second child and manages to keep it a secret from the authorities for fear of forced abortions. If the family is wealthy, they are sometimes allowed to keep the baby if they pay large monetary fines to the government. The amounts of the fines are based on the statistics of the particular area where they are located. They can also have their houses and land taken away as a penalty. They can be denied bonuses at work or may lose their jobs altogether. Parents with more than one child are not given the same benefits as parents of only one child. They must pay for both children to go to school and pay for the entire family’s healthcare. Most families are not able to pay these fines nor are they able to survive without the significant benefits that are normally provided. This leads to families living in poverty and even death due to starvation or lack of proper healthcare. Another consequence of China’s one-child policy is the rate of female infanticide. Parents often panic when their baby is a girl and either kill the baby themselves or abandon the baby. Babies are abandoned in many ways. Sometimes they are taken to remote places and left to die. Other times they are left in public places, with or without notes, so that they can be found and taken to an orphanage. If the child is not found immediately, they can often be malnourished or in poor health when arriving at an orphanage. When this is the case, and a baby is beyond help, some Chinese orphanages have what are called â€Å"dying rooms†. These rooms are horrific. Babies are strapped to a chair with a hole in the seat that collects the baby’s waste. The babies in these rooms are left there, with no nourishment or care, to die. In the cases where the babies are abandoned and someone finds them rather quickly, they are taken to an orphanage to be cared for or are sent to a foster family. The lucky children are adopted internationally. Others can spend their whole lives in the orphanage. In China there are around 1,000 orphanages. Only 250 of those will send children out of the country to be adopted. Officially registered adoptions increased from 2,000 in 1992 to 55,000 in 2001. Many more were adopted informally without registration. In 2005, around 7,900 children were adopted into the United States. In reality, only about 5% of children in Chinese orphanages are adopted at all. Many babies put up for adoption have not been abandoned by their parents but confiscated by family planning officials. The one-child policy has also had a negative effect on the children legally born to couples. Parents tend to over indulge these children. This epidemic has created the name â€Å"little emperors† for these children and the condition created is being called â€Å"little emperor syndrome†. These children are spoiled. Because there was once a great famine in China, the parents want to give these children what they were deprived of. They want to ensure that they have plenty to eat and overindulge them. The children have become fat. There is now an initiative in China to stop obesity in children. There are clinics where parents and children are educated about healthy eating and exercise. Some children are even receiving acupuncture to curb their appetites. The fact that children are becoming overweight is not the only problem with the â€Å"little emperors†. They also suffer from poor social communication, poor cooperation skills and lack of self-discipline. They often struggle with strong personality disorders. In March 2007, the Chinese People’s Political Consultative Conference (CPPCC) called on the Chinese government to abolish the one-child rule. Ye Tingfang, a sponsor of the proposal, argues that â€Å"It is not healthy for children to play only with their parents and be spoiled by them. The one-child limit is too extreme. Children in our country may not even be blessed to have cousins which is a serious handicap to their nature and may lead to personality flaws. It violates nature’s law and in the long run, this will lead to Mother Nature’s revenge. Because of the one-child policy, families who desperately want to have a second child often take on a foster child. This can temporarily fill a void of desire for more children. These families become very attached to the babies that they care for and love them just as if they were their own. When these babies are adopted, the foster parents are devastated and become deeply depressed and are forced to cope with the los s. This emotional strain is equally felt by the birth parents, who were forced to either abandon the baby or surrender it by force, as well as the foster parents who have cared for the infant. The one-child policy has affected the population significantly. In some areas, there has been a negative population growth. This means that the deaths of a region have outweighed the births. Also, the Chinese population is aging. This is when the median age of a country or region rises. The elders are now becoming greater than the younger generation. This will surely pose a tough strain on the younger generation to care for their older family members with no help from siblings. Another potential problem will arise as the preferred boys reach the age to marry and procreate. There will be a major shortage of women to fulfill the need. In recent studies, the ratio of men to women is 117:100. It is estimated that in the year 2020, there will be 40 million more men than women. This will have extreme consequences. These consequences include social instability, courtship motivated emigration, and forced marriages. Another tragic consequence is prostitution which can also lead to a rise in human immunodeficiency virus infection and other sexually transmitted diseases. Already there has been a problem with abduction of women. Women are being kidnapped and sold to men in other provinces. They are being raped and treated badly. If they try to scape, they are beaten severely. This are all consequences of the gender imbalance created as a result of China’s one-child policy. There have been a few exceptions made to the policy over the years. In rural areas, parents can apply to have a second child if the first is a girl. Other circumstances that would allow consideration for a second child would be if the first child s uffers from a physical disability, mental illness or mental retardation. When this special permission is granted, the parents are subject to birth spacing. This means that the parents must wait a specific amount of time before having the second child. This time period is generally from three to five years. Exceptions have also been made if both parents are only children. This would relieve the burden of the â€Å"4-2-1 problem† on just one child. Special considerations have also been made when the father is a disabled serviceman who will not be able to care for his own aging parents. Official permission is sometimes granted in cases such as the 2008 Sichuan earthquake, where children perished and in other cases where the child is deceased. Finally, there are exceptions made in affirmative action cases such as with Han Chinese who are considered to be minorities. Although the one child policy seems like an extremely harsh and controversial method of controlling the population, it isn’t as harsh as it may seem at first. It depends on which area of the country you live in as to how much it affects you. In some areas which have a low population, the policy is somewhat lenient, whereas in Sichuan, the policy is strictly adhered to in both rural and urban areas because it is overpopulated. As nearly 50% of China’s population live in the countryside, many are permitted to have two children because for the majority of places, the policy is more strictly enforced in urban areas. Typically, the power of enforcement is given at the provincial level. In March of 2011, the policy was reviewed by the Chinese government. Some officials expressed the need for consideration to allow couples to have a second child. The government announced that the policy will remain unchanged through at least 2015. China’s one-child policy has had many benefits. It has greatly reduced the severity of some major problems that come with overpopulation such as epidemics and slums. It has also helped out the issues with overwhelmed social services such as healthcare, education and law enforcement. The policy has helped reduce China’s ecological footprint by decreasing the abuse of fertile land and reduced the production of high volumes of waste. It has, in recent years, provided better health service for women. There has been a reduction in the risks of death and injury in pregnancy and women receive free contraception and prenatal classes. China in recent years, for the most part, has maintained a steady labor rate with reduced unemployment. With families having to spend less money on multiple children, they have more to invest for retirement. Finally, with fewer children, women can invest more time in their careers, increasing their personal income. With all of the benefits that have come from the policy, sometimes all the money and material possessions in the world cannot compare to the love of a child and the freedom to choose how large your family can be. In conclusion, China’s one-child policy was a drastic measure taken over thirty years ago to control a growing population problem. While it has succeeded in lowering the population and improving the economic situation, the long-term emotional and physical effects felt by families will continue to be unbearable for generations. Losing a child due to natural causes is hard enough but being forced into abortion, sterilization and abandonment has to be so much worse. BIBLIOGRAPHY Fitzpatrick, Laura. â€Å"China’s One-Child Policy,† Time, posted July 27, 2009, http://www. time. com/time/world/article (accessed April 9, 2011). Buckley Ebrey, Patricia. Chinese Civilization: A Sourcebook. 2nd ed. (New York: The Free Press, 1993), 478-481. Hesketh, Therese, Ph. D. â€Å"The Effect of China’s One-Child Policy after 25 Years,† The New England Journal of Medicine 353, no. 11 (2005): 1171-1176. Lost Girls. DVD, directed by David Royle (2005; Washington, DC: National Geographic, 2005). Phillips, Michelle. â€Å"Women forced to abort under China’s one-child policy,† The Washington Times, posted June 2, 2010, http://www. washingtontimes. com/news/2010/jun/2 (accessed April 9, 2011). Mosher, Steven W. â€Å"A Mother’s Ordeal: One Woman’s Fight Against China’s One Child Policy,† (MN: Park Press, Inc. , 1993), 56-60. Hays, Jeffrey. â€Å"One-Child Policy in China,† http://factsanddetails. com/china. php (accessed April 9, 2011). Scott, Joan. â€Å"Child Adoption in Contemporary Rural China,† Journal of Family Issues, March 27, 2006: 301-340. Consultative Conference: â€Å"The government must end the one-child rule,† AsiaNewsit. com, March 16, 2007 (accessed April 9, 2011). Sina English, â€Å"Advisors say it’s time to change one-child policy,† Shanghai Daily, March 15, 2007. http://english. sina. com/china/1/2007/0315/ (accessed April 9, 2011). ——————————————– [ 1 ]. Laura Fitzpatrick, â€Å"China’s One-Child Policy,† Time, posted July 27, 2009, http://www. time. com/time/world/article (accessed April 9, 2011). [ 2 ]. Patricia Buckley Ebrey, Chinese Civilization: A Sourcebook. 2nd ed. (New York: The Free Press, 1993), 478-481. 3 ]. Therese Hesketh, Ph. D, â€Å"The Effect of China’s One-Child Policy after 25 Years,† The New England Journal of Medicine 353, no. 11 (2005): 1171-1176. [ 4 ]. Steven W. Mosher, â€Å"A Mother’s Ordeal: One Woman’s Fight Agains t China’s One Child Policy,† (MN: Park Press, Inc. , 1993), 56-60. [ 5 ]. Lost Girls. DVD, directed by David Royle (2005; Washington, DC: National Geographic, 2005). [ 6 ]. Michelle Phillips, â€Å"Women forced to abort under China’s one-child policy,† The Washington Times, posted June 2, 2010, http://www. washingtontimes. com/news/2010/jun/2 (accessed April 9, 2011). 7 ]. Jeffrey Hays, â€Å"One-Child Policy in China,† http://factsanddetails. com/china. php (accessed April 9, 2011). [ 8 ]. Patricia Buckley Ebrey, Chinese Civilization: A Sourcebook. 2nd ed. (New York: The Free Press, 1993), 478-481. [ 9 ]. Lost Girls. DVD, directed by David Royle (2005; Washington, DC: National Geographic, 2005). [ 10 ]. Joan Scott, â€Å"Child Adoption in Contemporary Rural China,† Journal of Family Issues, March 27, 2006: 301-340. [ 11 ]. 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