Impact of Major Sports Events on the Economy

Impact of Major Sports Events on the Economy Introduction The use of sports markets to explore questions of economic interest has a long history as the majority of this literature analyses US sports, notably American football, basketball, baseball, and ice hockey, whilst there is also a considerable interest in soccer, the leading world sport (For example, the 1998 European Short Course Swimming, 1999 European Show Jumping and the 2001 World Half Marathon Championships). Over the past two decades there has been increased competition among cities, regions and countries to host mega sporting events Therefore Government and other proponents of major sporting events usually seek to back up their claims of the event providing an economic boost by commissioning an economic impact statement. For example, Economic Research Associates (1984) study of the Los Angeles Olympics, Humphreys and Plummers (1992) study of the Atlanta Olympics, and KPMG Peat Marwicks (1993) study of the Sydney Olympics. Hosting a sport event has revealed a number of benefits in our communities and of those benefits, some reasons like increasing community visibility, positive psychic income, and enhancing community image are all common and acceptable postulations. Economic impact in sporting events can be defined as the net change in an economy resulting from a sport event and the change is caused by activity involving the acquisition, operation, development, and use of sport facilities and services (Lieber and Alton, 1983)which in turn generate visitors spending, public spending, employment opportunities, and tax revenue. In study of economic impact Expenditures can be categorized as direct, indirect, and induced effects. For example direct expenditure is the investment needed to meet the increased demand of visitors for goods and services. Indirect effects are the ripple effect of additional rounds of re-circulating the initial spectators dollars. Induced effects are the increase in employment and household income that result from the economic activity fueled by the direct and indirect effects (Dawson, Blahna, Keith, 1993; Howard Crompton, 1995). Sports Economics possesses substantial experience in economic consulting to the sports industry, with specific knowledge of the economic impact of facilities, events, and teams so considering the publicity and scrutiny surrounding such studies, it is imperative to select a firm that not only has substantial experience, but also has a reputation for consistently providing an accurate assessment of economic impact. There are following reasons to conduct economic impact studies of sport events and Firstly, because many sport events in our communities were financed by public tax support, economic impact studies continue to be an important public relations tool for city government. Secondly, there is doubt that sporting events may actually help develop a community in relative to its economy therefore, accurate estimates should be proposed and the results should be reported to community members and Thirdly, as sport is not just an entertainment but an industry so the results of economic impact may be a cornerstone to develop many related businesses in communities. Finally, positive or negative economic results of sport events may be an important method to determine communities draft budget for the coming year so as an example in July of 2001, Beijing was awarded the 2008 Summer Olympic Games so most people assume that such an event will bring enormous economic benefits to the host city not just dur ing the event, but for years afterward. The scale of the organization, facilities and infrastructure required for such a huge undertaking are such that the Games cannot but have substantial economic effects (Sydney 2000 Games, p 2) but what exactly are these economic effects, and how do they affect the quality of life of local residents? The relevance of studies for example, it seems logical that a less developed country will have more to gain from long term growth opportunities. Matheson and Baade (2003) argue, however, that the prospects of mega-sporting events are even worse for developing countries and the opportunity costs of providing state of the art facilities are much higher and lack of modern infrastructure requires significant additional investment. This report examines the wider benefits that move beyond the economic impact and proffers the adoption of the balanced scorecard approach to event evaluation. Moreover, the data from the past economic impact studies were used to produce an economic impact forecasting model designed to predict the economic impact attributable to an event prior to it taking place. This Research have been developed by undertaking wider evaluations of some of the events, for example, the 1998 European Short Course Swimming, 1999 European Show Jumping and the 2001 World Half Marathon Championships. Beyond the economic impact generated by an event, these wider evaluations have also examined the public profile achieved by the events and looked in particular at the media value associated with television coverage and place marketing effects linked to such coverage. This Report also provides additional analysis which helps to put IPL event into context by: Outlining the generic economic benefits and return on investment to a countrys economy of hosting a major event such as IPL. Profiling IPL and comparing it to other similar international events in respect of the key elements underpinning economic impact. Identifying regional factors and drivers that may affect the economic impact of IPL in different regions Outlining the possible contribution to a Host Nations Government via taxation, as a result of hosting IPL, investment and cost associated with IPL. Literature Review on Economic Impact Studies Precursor The aim of this literature review is to understand direct and indirect impact of major sports events on economy and understand how major sports can open new dimension in economy. This has been done through referring various journals, articles and magazines; also a survey has been carried out as part of primary research to analyze impact of major sports event on Economy; however validation of data collected is subject to sources and prevailing conditions. Final phase of this study on IPL covers analysis of contribution of IPL to Indian economy, It analyze that how IPL has opened a new dimension for Indian economy to grow and attracts domestic and foreign investors. This phase also covers SWOT analysis of IPL, reasons critical to success of IPL and future ahead. Statement of Purpose Previously many research studies have contributed to understand economic impact of sport and/or recreational events; however most studies are based upon the researchers personal perception and arguable methodology. The purpose of this study was to review previous economic impact studies and to construct framework for conducting an economic impact study. This entire theoretical framework has been tested by analyzing a case study of economic Impact of mega sports events like Indian Premier League on Indian economy. Literature Review To study Economic impact of sports is challenging topic in the field of management fields because estimating the economic impact of sporting events and make some constructive statement is very difficult and subjective. Due to the subjective nature of social science, ideas and methodology vary from person to person for conducting economic impact studies. The main barrier behind conducting social science research is based on the level of competitiveness and belief in understanding of the material. and also social objects are hidden behind a screen of pre-constructed discourses which present the worst barrier to scientific investigation, and countless sociologists believe they are talking about the object of study when they are merely relaying the discourse which, in sport as elsewhere, the object produces about itself, whether through its officials, supporters or journalists (Bourdieu, 1999). Therefore, construction of truly scientific objects implies a break with common representation s, which can notably be effected by taking these pre-notions as the object of study so this report examines the wider benefits that move beyond the economic impact and proffers the adoption of the balanced scorecard approach to event evaluation. This consolidated piece of research builds on the original Measuring Success in 1999 which was based on the premise that major sports events have the potential to achieve significant economic impacts for the host town, city or area but economic impact is now one of the parameters upon which an events success is measured. Major sports events have the potential to achieve significant economic impacts for the host town, city or area, Countries, who host the mega sports event, should make a roadmap for significant investments in sports venues and other infrastructure. It is generally assumed that the scale of such event and roadmap of the preparation for it will create large and long lasting economic benefits to the host country. This would result in huge economic benefits that would have significant economic impact. However unfortunately these studies are constructed around misapplications of economic theoretical framework that virtually guarantee their projections will be large. Ex-post studies have consistently showed no evidence of positive economic impacts from mega-sporting events even remotely approaching the estimates in economic impact studies. For example, in the 2008 Summer Olympic Games in Beijing, China have put up huge investments in infrastructure and facility recreation to a new level. Th e opportunity for long term economic benefits from the mega sports event like Beijing, critically depend on how well mega sports events related investments in venues and infrastructure can be incorporated into the overall economy in the years following the Games In current scenario economic impact studies have become standard operating procedure for supporters of public funding for sports events. It has led to acceptance of their findings by the government and public due to their prevalence with no critical evaluation. Due to the huge investment involve in such high profile mega sports events, large and positive Economic effects are taken as given; the studies confirm what is already believed. The promise of worldwide exposure and economic gain has made hosting these major and regularly scheduled sporting affairs a lucrative goal for aspiring cities around the world (Short 2000, p. 320). Hosting a mega sport event like Olympic, has exhibited a number of large and long lasting benefits in our communities like enhancing community image, increasing community visibility and positive psychic income are all common and acceptable postulations. However, sport is not just limited to an entertainment, also it act as full fledge industry, the results of economic impact may be a cornerstone to develop many related businesses in communities. Positive or negative economic results of sport events may be a critical factor to determine communities draft budget for the coming year. Mega-events such as the Olympic Games require large sums of public money to be spent on venues and infrastructure improvements. Economic impact studies are often commissioned In order to justify the use of large sum of public money towards invariably large inflows of money that will have a long-term positive effect on the economy by such means as job creation and visitor spending. Scale of the mega sports event which attract large amounts of money from outside a local economy, are forecasted to have economic impacts in the billions of dollars The simple elegance of economic impact studies, injections of money circulating over and over in an economy to create a multiplier effect, has an alluring something for-nothing quality that is hard to refute. However to justify a counter argument can be difficult due to numerous mistakes made in economic impact studies. Critics have focused on numerous subjective areas like: 1) using multipliers that are too large, 2) treating costs as benefits, 3) ignoring opportunity costs and 4) using gross spending instead of net changes. In hosting mega sports event the major part of investment required on constructing stadiums, which to a large degree is spent on hiring construction workers and purchasing materials from local suppliers, is counted as a benefit to the local economy. However It is backward looking and the most egregious error in economic impact studies, which looks on production cost benefit of the project and ignores the effect of the actual consumption of the products on economy. Ex-post studies, however, have consistently found no evidence of positive economic impacts from mega-sporting events even remotely approaching the estimates in economic impact studies. In a study of the impact of Super Bowls on local economies, Philip Porter (1999) found no measurable impact on spending associated with the event. The projected spending and spill over benefits of regional impact models ever materialize (Porter 1999, p. 61) Porters explanation is that capacity constraints in the hotel industry cause room prices to increase with no change in occupancy rates. Higher rates contribute to the crowding out of regular traffic and net spending in areas other than hotel rooms changes little or not at all. Longer term sports programs, usually involving stadium subsidies to attract or keep professional teams, have also failed to deliver on projected economic benefits. Even for cities that usually are considered success stories for sports development strategy, such as Baltimore (Hamilton and Kahn 1997) and Indianapolis (Rosentraub 1994), empirical research does not find evidence of statistically or economically significant positive impacts. Sports economists, on the other hand, have found economic impact studies lacking both in theory and practice. Ex-post studies have consistently failed to find evidence of any economic benefits related to sports teams and facilities. In examining recent retrospective studies, Coates and Humphreys (2003, p. 6) concluded building new sports facilities and attracting new professional sports teams did not raise income per capita or total employment in any US city. A closer look at the methodology of such studies reveals an appealing but fundamentally flawed line of economic reasoning that virtually guarantees a forecast of large economic benefits. The term economic impact analysis refers to rigorous surveys, research, and modeling to estimate the direct and indirect economic effects of an entity or event on the local, county, state, or U.S. economy, as measured by employment, tax revenue, income, or gross product (overall economic output). The impact of an economic event is the summation of direct effects and indirect effects. For example, when a hundred dollars is invested in building a new library in a city, that money (the stimulus) flows through the local economy multiple times as construction supplies are purchased, and as construction workers spend their paychecks at local supermarkets, restaurants, and other retailers, who in turn buy more inventory, and so on. That is, an initial stimulus triggers a chain of spending. This chain of spending is estimated via multipliers. The term economic impact used in isolation can be interpreted in different ways in both the short term and long term. Therefore, in order to be clear what is meant in the context of the sixteen events reviewed in this report, UK Sport has adopted the following definition within its major events strategy: The net economic change in a host community that results from spending attributed to a sports event or facility. Turco Kelsey (1992) The change is caused by activity involving the acquisition, operation, development, and use of sport facilities and services (Lieber Alton, 1983). These in turn generate visitors spending, public spending, employment opportunities, and tax revenue. Specifically, the economic impacts of expenditure are composed of direct, indirect, and induced effects. Direct effects are the purchases needed to meet the increased demand of visitors for goods and services. Indirect effects are the ripple effect of additional rounds of re-circulating the initial spectators dollars. Induced effects are the increase in employment and household income that result from the economic activity fueled by the direct and indirect effects (Dawson, Blahna, Keith, 1993; Howard Crompton, 1995). The initial construction of a $10 million sports facility provides an initial impact of $10 million on the local economy. This is the direct impact. Clearly, the construction of the facility will require concrete, steel, co nstruction workers, and so forth. The money spent on these materials and services comprises the indirect expenditures, or the indirect impacts. (Hefner 1990, pp. 4-5) In high level terms economic impact studies aim to measure the increased economic activity surrounding an event. For sporting events, the key stimulants of activity are the expenditure of spectators, event organisers and other stakeholders, which flow through the local economy to expand total regional and national GDP. The diagram below illustrates the principal components of economic impact. There are three broad areas in which impact will occur, as follows: Core impacts primarily comprising expenditure by, or generated from, international spectators attending sports events from tickets and match day catering; Other direct impacts comprising spending by spectators and other visitors on accommodation, food and beverage, transport and other spending, as well as investment in infrastructure; and Indirect and induced impacts relating to the ripple effect as the direct spending is recycled through the economy. The primary components are indirect impacts, achieved largely by businesses spending on suppliers, and induced impacts, as recipients reinvest money in the economy themselves. In addition, there is also significant expenditure by domestic residents. Domestic spending comprises an important element of the full value of sports event to a Host Nation. Economic impact is based on the theory that a dollar flowing into an economy, that otherwise would not have been spent, is a benefit to the economy. Economic impact studies not only measure economic impact, but are also used to provide information in the decision to publicly fund sports venues or sports commissions/authorities, or to measure the success of events hosted in a local community in generating positive economic outcomes for both the event owners and the locale. Economic impact analysis measures new spending in a local economy due to the presence of, for example, a facility or an event. The change in the economy is measured in terms of total new spending, fiscal impact (total new taxes collected), personal income generated, and jobs created, both directly and indirectly. By increasing the new money in an economy, the economic benefit is serving a greater good by increasing government tax revenue, augmenting business income, and ultimately resulting in more jobs and higher personal income for residents of that economy. In developing the model there are specific regional factors and drivers that will have an influence on the economic impact The diagram below illustrates the key components in determining the potential economic impact : Event Economic Effects/Impacts (Pre-event Post-event phases) Economic growth (GDP) and impact Targeted growth in economic relevant sectors Direct and indirect employment created Direct, indirect and induced impacts (Multipliers Analysis) Economic-social Net Present Value Touristy flows (visitors economy) Olympic legacy (stadia infra-structures) Globalization (Global branding exposure) Sports Economics possesses substantial experience in economic consulting to the sports industry, with specific knowledge of the economic impact of facilities, events, and teams. Considering the publicity and scrutiny surrounding such studies, it is imperative to select a firm that not only has substantial experience, but also has a reputation for consistently providing an accurate assessment of economic impact. Sports Economics methodology is sound and defensible, and we are qualified to and capable of affirming our results to any audience necessary The benefit in economic terms to a host economy is defined according to the additional expenditure by visitors to that economy which is directly attributable to the staging of the event. These visitors can come from elsewhere in the same country or from overseas. If the visitors come from elsewhere in the same country, any economic impact is actually a redistribution of money around that countrys economy and is not necessarily new money to the economy. Visitors from overseas actually provide new money in the form of invisible exports and potentially a net export effect on overall GDP. One might argue that the quality of economic impact can be gauged according to the net export effect associated with an event, namely the extent of any new money brought into the UK economy from overseas visitors (and other sources) as a result of staging an event. However, this may be of little concern to local organisers who do not care whether any additional expenditure is attributable to someone fro m for example the USA or elsewhere in the UK, hence redistribution is not an issue. The main point of note is that only some people are eligible for inclusion in the economic impact calculations i.e. visitors to the host city or area specifically as a result of an event being staged. The remainder live locally and their expenditure would have been made regardless of a specific event taking place, hence such expenditure is termed deadweight and not eligible for inclusion in the calculations. Obtaining a value for the initial impact of a team or event is the first step in any economic impact study. The initial impact is then magnified through the use of a multiplier, based on the idea that money brought into a local economy will be respent over and over, becoming income for others in the economy. In this way a multiplier also magnifies the errors made in calculating initial impact, especially by once again failing to recognize opportunity costs. The multiplier is applied to any new spending in the economy regardless of the source. If the multiplier does not depend on the spending source, then it is useless in the comparison of alternative projects. The multiplier effect accounts for the overall economic impact of a sport event. The multiplier effect demonstrates the process through which initial spending in a region generates further rounds of re-spending within the region. The ripping process of subsequent re-spending is the multiplier effect. The basic principle of the multiplier effect begins with an initial spending as an increased income into an economy. A portion of the increased income is spent and further re-spent within the region (Archer, 1984; Crompton, 1995; Wang, 1997). In summary, there are three elements that contribute to the total impact of visitor spending: Direct impact (the first-round effect of visitor spending), Indirect impact (the ripple effect of additional rounds of re-circulating the initial visitors dollars), and Induced impact, which is further ripple effects caused by employees of impacted business spending some of their salaries and wages in other business in the host community (Howard Crompton, 1995). A variety of multiplier used modeling techniques are available: TEIM (Travel Economic Impact Model), RIMS (Regional Input-output Modeling System) (Donnelly, Vaske, DeRuiter, Loomis, 1998; Wang, 1997), TDSM (Tourism Development Simulation Model) (Donnelly, et al., 1998), RIMS II (Regional Input-output Modeling System, version II) (Wang, 1997), ROI (measuring financial Return On Investment) (Turco Navarro, 1993), and IMPLAN (Impact Analysis for Planning) (Bushnell Hyle, 1985; Dawson, Blahna, Keith, 1993; Donnelly, et al., 1998; Howard Crompton, 1995; and Wang, 1997). Of those modeling techniques, IMPLAN is one of popular methods. The IMPLAN model was developed by the U.S. Forest Service and Engineer Economics Associates, Inc. The IMPLAN develops input-output models for all states and counties in the United States. This model was used to estimate the employment, income, and net sales and adopted as the regional impact analysis program-of-choice. Another often-used model is RIMS, whi ch was developed by the U.S. Department of Commerce, Bureau of Economic Analysis (BEA). This model also offers input-output tables down to the country level (Turco Kelsey, 1992). Also, a lot of simple formulas were developed to conduct economic impact study of sport events by local sport commission companies. In addition to the standard projections of economic impact, Olympic studies also include longer term benefits sometimes referred to as the Olympic Legacy. These legacy effects, derived from positive publicity from the Games, include increased tourism after the Games, attraction of business, and infrastructure investments that improve the urban environment. Legacy impacts are generally not incorporated into the economic impact numbers, but rather offered as an additional, unquantifiable benefit. The lack of any ex post study that finds improvements in economic growth or living standards due to mega events should cast some suspicion on the legacy effects of Olympics, or at least the ability of such effects to be transformed into real economic benefits to the local economy. Baade and Matheson (2002) found the evidence suggests that the economic impact of the Olympics is transitory, onetime changes rather than a steady-state change (p. 28). Empirical Analyses of Economic Impact Statements It is one thing to point out bias that could potentially be introduced in impact studies. It is another thing altogether to examine whether actual economic impact studies are, in practice, truly flawed. One tool that can be used to determine the accuracy of economic impact studies is ex post comparisons of predicted economic gains to actual economic performance of cities hosting sporting events. Empirical studies have been conducted on the observed economic impacts of large sporting events as well as on the construction of new sport facilities. On the sport facility side, numerous researchers have examined the relationship between new facilities and economic growth in metropolitan areas (Baade Dye, 1990; Rosentraub, 1994; Baade, 1996; Noll Zimbalist, 1997; Coates Humphreys, 1999). In every case, independent analysis of economic impacts made by newly built stadiums and arenas has uniformly found no statistically significant positive correlation between sport facility construction and economic development (Siegfried Zimbalist, 2000). This stands in stark contrast to the claims of teams and leagues, who assert that the large economic benefits of professional franchises merit considerable public expenditures on stadiums and arenas. On the events side, nearly every national or international sporting event elicits claims of huge benefits accruing to the host city. For example, the National Football League typically claims an economic impact from the Super Bowl of around $400 million (National Football League, 1999), Major League Baseball attaches a $75 million benefit to the All-Star Game (Selig et al., 1999), and the NCAA Final Four in Mens Basketball is estimated to generate from $30 million to $110 million (Mensheha, 1998; Anderson, 2001). Multi-day events such as the Olympics or soccer World Cup produce even larger figures. The pre-Olympics estimates for Atlantas Games in 1996 suggested the event would generate $5.1 billion in direct and indirect economic activity and 77,000 new jobs in Georgia (Humphreys Plummer, 1995). In many cases, variation in the estimates of benefits alone raises questions about the validity of studies. A series of economic impact studies of the NBA All-Star game produced numbers ranging from a $3 million windfall for the 1992 game in Orlando to a $35 million bonanza for the game three years earlier in Houston (Houck, 2000). The ten-fold disparity in the estimated impact of the event in different years serves to illustrate the ad hoc nature of these studies. Similarly, ahead of the 1997 NCAA Womens Basketball Final Four, an economic impact of $7 million was estimated for the local economy in Cincinnati, while the same event two years later was predicted to produce a $32 million impact on the San Jose economy (Knight Ridder News Service, 1999). Such increases cannot be explained by changes in general price levels or growth in the popularity of the tournament. Instead, they are explained by the fact that economic impact studies are highly subjective and vulnerable to significant error as well as manipulation. In further cases, the size of an estimate can strain credulity. The Sports Management Research Institute estimated the direct economic benefit of the U. S. Open tennis tournament in Flushing Meadows, NY, to be $420 million for the tri-state area, more than any other sporting or entertainment event in any city in the United States; this sum represents 3% of the total annual direct economic impact of tourism for New York (United States Tennis Association, 2001). It is simply impossible to believe that 1 in 30 tourists to New York City in any given year are visiting the city solely to attend the U. S. Open. Similarly, the projected $6 billion impact of a proposed World Cup in South Africa in 2006 would suggest that soccer games and their ancillary activities would represent over 4% of the entire gross domestic product of the country in that year (South Africa Football Association, 2000). As in the case of sports facilities, independent work on the economic impact of mega-sporting events has routinely found the effect of these events on host communities to be either insignificant or an order of magnitude less than the figures espoused by the sports promoters. In a study of six Super Bowls dating back to 1979, Porter (1999) found no increase in taxable sales in the host community compared to previous years without the game. Similarly, Baade and Matheson (2000) found that hosting the Super Bowl was associated with an increase in employment in host cities of 537 jobs, for a total impact of approximately $32 million, less than one-tenth the figure trumpeted by the NFL. In a study of 25 Major League Baseball all-star games held between 1973 and 1997, Baade and Matheson (2001) found that, in the case of three all-star games in California (1987, 1989, 1992), the events were correlated with worse-than-expected employment growth in host cities and were furthermore associated w ith an average reduction in taxable sales of nearly $30 million. Finally, Baade and Mathesons examination (1999) of the Olympic Games held in Los Angeles in 1984 and Atlanta in 1996 found total observed increases in economic activity of $100 million and of $440 million to $1.7 billion, respectively. While the range of the economic impact for Atlanta exhibits a great deal of uncertainty, even the most favorable figure is only one-third of the amount claimed by the host committee. Tax impact With its large economic footprint, long duration and significant international visitor numbers, mega sports event delivers substantial tax revenues to a Host Nations government. This section outlines the potential types of tax revenue that can accrue to a sport event host government and an indication of the possible levels of such tax revenue. In summary, the tax revenues to the government of the Host Nation include: Sales t

Petrozuata Case Study

Petrozuata Case Study Petrolera Zuata, Petrozuata C.A. Voilis Athanasios 1) Introduction – Case Study In 1976, after nationalization of the domestic oil industry a stated owned enterprise Petroleos de Venezuela S.A. (PDVSA) was established for the purposes of managing the country’s hydrocarbon resources and promoting economic development. It was the world’s second largest oil and gas company with reserves in Venezuela and refineries across the Europe, United States, and the Caribbean. Domestically, PDVSA provided 78% of Venezuela’s export revenues, 59% of the government’s fiscal revenues, and 26% of nation’s GDP and had a reputation of being one of the best managed national oil companies. In 1990, PDVSA started an ambitious long-term project, which main aim was to double its domestic production and expand international markets. For the implementation of this venture, the company needed to raise investments for approximate amount of USD$ 65 bn. At that time neither PDVSA nor Venezuelan government had the possibility to finance the underlined expansion. As a solution, it was decided to establish a strategy called â€Å"La Apertura†, which opened the Venezuelan oil sector to foreign companies through profit sharing agreements, operating service agreements, and strategic joint ventures associations. Unfortunately, such initiative overlapped with political instability and economic turmoil in the country. Only in the early 1990s two failed military coups and the impeachment of President Perez took place. In late 1993, because of the severe crisis in the banking system, the administration suspended a number of constitutional rights, imposed price control on basic goods and services, and took direct control over most of the banking system. Moreover, the foreign exchange markets were closed and began rationing foreign currency to the private sector. Few years later, by the time of the deal closing, due to an economic and social reform program of President Caldera, the economy had begun to recover, but with coming presidential elections, public tension was also growing. All in all, the feasibility of the project was under the pressure of  the sovereign risk. The rating agencies were considering three principal risks: possible government action, currency market volatility, and Venezu elan business conditions. The first development project of reopening Venezuelan oil sector to foreign investments was Petrozuata. It is a USD$ 2.424 bn joint venture between Conoco and Maraven as a part of PDVSA. Conoco was the petroleum subsidiary of one of the largest chemical producer in the world E.I. du Pont de Nemours and Company (DuPont). That time Conoco recently completed projects in Russia, Norway, USA and was a recognized leader in refining technology and project development. Underlined parties started feasibility studies and negotiations for a joint project in 1992. After four years of planning, Conoco and Maraven had made a mutual decision to finance this deal on a project finance basis, because of financial and organizational benefits provided by such structure. PDSVA could not have built the project alone because of its lack of specialized assets needed to extract and upgrade syncrude oil. On the other hand, foreign ownership of domestic hydrocarbon resources is prohibited by law, closing all ways for a sole expansion by Conoco. In terms of ownership structure, it was strategically decided that PDVSA subsidiary contributed less than 50% of the total equity amount but, through its preferred shares, would retain voting control. Because PDVSA would be the minority shareholder, the company would be classified as private. As a consequence, it would not consolidate into PDVSA’s balance sheet and, more importantly, they would not be bound by legislation for public companies (public procurement bidding procedure, excessive accountability, etc.). Final association agreement had a term of 35 years beginning once production started in 2001. The equity ownership contributions were set up in such way that Maraven had 49.9% of shares and 50.1% for Conoco. After accomplishing of the agreement, Conoco has an obligation to transfer its shares to Maraven at no cost. Also, to give incentive to the project, the government agreed to decrease the royalty rate during early operation years and the Congress agreed to lower the income tax rate from 67,7% to 34%. The sponsors agreed to use USD$ 975 mn of equity and USD$ 1.45 bn of debt to finance the project, which corresponded to 60% of debt-to-equity ratio. Such high percent of equity contributions to the project were chosen to show the sponsor’s commitment to the project. In 1996, for the beginning of the project, sponsors contributed USD$ 79 mn of paid-in capital. Additional contributions including contingency fund were projected to infuse in the following 4 years for the total amount of USD$ 366 mn. For the outstanding sum of USD$ 530 mn, shareholders chose a risky plan to use cash flows from the sale of early production crude, after completion of the oil fields and pipeline in August 1998. It is necessary to mention that risks peculiar to underlined financial mechanism were mitigated through a good execution plan and strong sponsor guarantees. Concerning the sources of debt financing, Petrozuata raised USD$ 450 mn as a loan from commercial banks with loan guarantees from bilateral and multilateral agencies, such as U.S. ExIm Bank, Export Development Corporation of Canada, OPIC and IFC. Those agencies would mitigate Venezuela’s political and economic instability by providing political risk insurance. However, the major funding source of the project was the American private placement market. Petrozuata received USD$ 1 bn of debt from the Rule 144A market. These bonds were chosen because of the additional advantage of speed and less onerous disclosure requirements imposed by the Securities and Exchange Commission. Petrozuata project had three main components: a series of inland wells to produce the crude, a pipeline system to transport the crude to the coast, and an upgrader facility to partially refine the crude. It was unusual and a highly complicated to finance multiple component projects on a standalone basis. A special system of contracts and commitments were designed and implemented to make the project feasible. A detailed scheme of contracts and commitments is provided in Figure 2. For instance, sponsors mitigated the incentive problem and managerial inefficiency by creating a small board of directors comprised of two directors from each sponsor, and using compensation contracts for managers that were linked to the project performance. Also was realized the major benefit of project finance: public-sector management was substituted for private-sector. The construction risk was allocated to sponsors. Conoco and Maraven agreed to provide funds for any cost overruns prior to completion. Also, the parent companies guaranteed these obligations. The guarantee has a unique structure in terms of the difference in ratings between parties – DuPont (AA-) and PDSVA (B). The parties agreed to include severe penalties for failing to meet their obligations and incentives to cover the other party’s shortfalls. It was a good example of how project finance could substitute the lack of development in emerging countries. After construction would be completed, together with major risks, the sponsor guarantees would also end and the project would become non-recourse to the sponsors. Figure 2: Petrozuata contracts and commitments Source: (Esty 1998) 25 Secondly, sponsors considered within the budget, a USD$ 38 mn contingency for upstream facilities, a USD$ 139 mn contingency for downstream facilities, and sufficient funds to pay premiums on a construction all risk insurance policy covering up to USD$ 1.5 bn of physical loss or damage. Another risk allocation mechanism in the current project was the use of an off-take agreement with the guarantee from the parent company DuPont. According to this agreement, Conoco took an obligation toward Petrozuata to purchase the first 86.6% of Petrozuata’s syncrude, for the whole 35-year life of the project, based on the market price. Moreover, the project company had the right to sell the syncrude to third parties if it could get a higher price. Such scheme eliminate ex post bargaining costs, and deter opportunistic behavior by providing incentives to both sponsors to act in the project’s best interest in the area where contracts would have been costly or impossible to write. Also, with an arrangement authorized by the Venezuelan government the project had a prioritization of cash flows as a main element of the contractual agreements. Petrozuata’s customers would deposit their dollar-denominated funds from the purchases into and offshore account maintained by Banker Trust, governed by the law of New York. Afterwards, the Trustee would disburse the money according to a payment hierarchy. First, the Trustee would make the transfer to a 90-day operating expense account; second, to service the project’s debt obligations; and, third, make deposits to a Debt Service Reserve Account as needed to maintain six months of principal interest. Finally, the project implemented a â€Å"cash trap† basically meaning that if the project maintains an one-year historical and one-year projected Debt Service Coverage Ratio of 1.35X, then the Trustee would transfer any remaining funds to Petrozuata for distribution to its equityholders. To sum up, Petrozuata is an example of the effective use of project finance in developing countries. The adverse circumstances following financial closure provide further evidence of the durability and merits of the project finance structure. The deal set numerous precedents in the bank and capital markets. For these

Oliver North :: essays research papers

	In October and November 1986, two secret illegal U.S. Government operations were publicly exposed. In addition to naming other people as illegal operatives, the scapegoat of it all was Lieutenant Colonel Oliver L. North. Only months before he was being heraled in the New York Times as "President Reagan's Man of Action", and now North was being handed the blame of all guilty of illegally negotiating deals with Iran and Nicaragua. As the Iran-Contra Scandal was led into the national spotlight, so was Oliver North. But while in that spotlight, North pleaded the Fifth Amendment, the right to not incriminate yourself. With doing so, he also saved the reputations of many who turned their backs on him. For this and many other achievements, Lt. Col. Oliver L. North is an American hero. 	Oliver L. North was born in San Antonio, Texas. His age and date of birth are being withheld due to security reasons. He attended school in Philmont, New York and later enrolled into the United Sates Naval Academy in Annapolis, Maryland. As graduation neared, North chose the path of being a Marine Corps leader. He was later called into duty in Vietnam, where he was station with K Company of the Third Battalion, Third Marine Regiment, Third Division from December 3, 1968 to August 21, 1969. During his service, North led many covert operations, and was awarded a Silver Star, a Bronze Star, and two Purple Hearts. He was a "marine's marine", and was a one-of-a-kind leader. 	While in Vietnam, he was assigned to counterinsurgency operations in which he met General Singlaub and General Secord, then lieutenant colonels. After coming back from Vietnam, he served as a planner in the Marine Corps headquarters in Washington, D.C. After being promoted to Major in the Marine Corps, North led a detachment of Marines who were to assist the rescuers of the aborted mission to free U.S. hostages in Tehran. A little more than a year later, while North was studying at the Naval War College in Providence, he came to befriend Navy Secretary John Lehman. Lehman helped North get a spot on the National Security Council. Among several military officers sent to the National Security Council, North was the youngest. He was described as a "bright articulate officer with a gung ho spirit who saw the world in sharply etched blacks and whites." His role was to draw up plans, to get them approved, and to see that they are carried out. Oliver North :: essays research papers 	In October and November 1986, two secret illegal U.S. Government operations were publicly exposed. In addition to naming other people as illegal operatives, the scapegoat of it all was Lieutenant Colonel Oliver L. North. Only months before he was being heraled in the New York Times as "President Reagan's Man of Action", and now North was being handed the blame of all guilty of illegally negotiating deals with Iran and Nicaragua. As the Iran-Contra Scandal was led into the national spotlight, so was Oliver North. But while in that spotlight, North pleaded the Fifth Amendment, the right to not incriminate yourself. With doing so, he also saved the reputations of many who turned their backs on him. For this and many other achievements, Lt. Col. Oliver L. North is an American hero. 	Oliver L. North was born in San Antonio, Texas. His age and date of birth are being withheld due to security reasons. He attended school in Philmont, New York and later enrolled into the United Sates Naval Academy in Annapolis, Maryland. As graduation neared, North chose the path of being a Marine Corps leader. He was later called into duty in Vietnam, where he was station with K Company of the Third Battalion, Third Marine Regiment, Third Division from December 3, 1968 to August 21, 1969. During his service, North led many covert operations, and was awarded a Silver Star, a Bronze Star, and two Purple Hearts. He was a "marine's marine", and was a one-of-a-kind leader. 	While in Vietnam, he was assigned to counterinsurgency operations in which he met General Singlaub and General Secord, then lieutenant colonels. After coming back from Vietnam, he served as a planner in the Marine Corps headquarters in Washington, D.C. After being promoted to Major in the Marine Corps, North led a detachment of Marines who were to assist the rescuers of the aborted mission to free U.S. hostages in Tehran. A little more than a year later, while North was studying at the Naval War College in Providence, he came to befriend Navy Secretary John Lehman. Lehman helped North get a spot on the National Security Council. Among several military officers sent to the National Security Council, North was the youngest. He was described as a "bright articulate officer with a gung ho spirit who saw the world in sharply etched blacks and whites." His role was to draw up plans, to get them approved, and to see that they are carried out.

The Future :: Argumentative Persuasive Science Papers

The Future It is by following clues that we make discoveries, not by reasoning inductively. Now some people would accept this view but nevertheless argue that in science we cannot avoid reasoning inductively. For , , they say, suppose we have discovered a law of nature—let us say the law that all metals expand when heated. Now in saying that this is a law of nature we are saying that it holds not only in the past but also in the future. If it is a law of nature that all metals expand when heated, then metals will expand when heated not just today but also tomorow. But how do we know they will expand tomorow? Tomorow has not yet come. If we know, we can only know by reasoning inductively (they say). The law has held in the past; therefore it will hold in the future. Reasoning from the past to the future is inductive reasoning. In this paper I want to respond to this argument. My point will be, there is no need to reason inductively even in science. To help make my point I will draw on three examples. Example 1: Station A Suppose you crack ciphers. You have been intercepting messages from a radio station which you have called Station A. The messages transmited by Station A are encrypted by a cipher which you have already broken, a cipher which for your own convenience you have called Cipher X. Because you have already broken Cipher X, for the past six months you have been able to read every single message sent out by Station A. This morning you have intercepted another message. You have not deciphered it yet ... How are you going to decipher your new message? Are you going to decipher it by using Cipher X, the cipher you have broken and which Station A has been using these past six months? I think you are likely to say, 'Of course! ' So you will decipher the new message using Cipher X, as I too if I were in your position. Let us now go over the situation again. You have broken Cipher X. You have been deciphering all messages from Station A using Cipher X. You are now about to decipher this newly intercepted message by using Cipher X. Now considering what you have done and what you are about to do, can we infer that you are reasoning inductively?

That Was Then :: Writing Education Essays

That Was Then ...Oh. It's you. Hi... ...O.k., well, here's the thing. I was looking at this paper that I had written a long time ago... ...Well, it seems like a long time ago. Anyway, as I was saying, I was reading this paper and I said to myself, I said self, what's up with this? I mean it was so obvious to me that I had no clue as to what to write about... ...Why is it obvious I had no clue? Well that's easy. I have no clue as to what I was trying to say and I wrote the thing. I mean I read it over a couple of times and tried to understand it, I just couldn't. The only thing I could get from the thing is that I most likely wrote it at the last minute and made it up as I went along. It's like I didn't put any thought into it at all. I mean come on - college is like a chair?... ...Why is that bad? Because I claimed to be able to sit on my college education if all else fails. What the hell did I mean by that?... ...Try to analyze it all you want. The fact remains that it even fell one paragraph short of the perfect theme paper. The only thing I can say is that it sounds like I am tired of writing papers... ...O.k. Maybe I am being a little hard on myself. After all, it was the beginning of the quarter and I had no idea as to what type of writing I could get away with. I mean, for so long now I have had to write to fit the criteria that was expected by a particular teacher/professor. I was limited as to what I could say and how I could say it. Now suddenly I'm supposed to believe that a professor is going to accept my writing in the manor in which I choose to write? Yeah right. I would guess I basically took the safe rout on that paper. I should have gone with a metaphor of Jeopardy. I know I could Have been more creative with that. It's kind of funny reading the paper again after so much time has passed. It sounds like I was trying to convince myself that I believed what I was writing along with trying to convince a professor.

Otheloo

Race in Othello Race is one of the most prominent themes in William Shakespearean Othello. The titular character is a black man in a predominantly white society and one of the first black heroes of English literature. At the time the play was written, black people were treated poorly by white people and were referred to as â€Å"moors† as they were considered to be barbaric and brutal Just like the area of the moors in northern England. The main character is one of few exceptions to this as he is a high ranking officer in the Venetian army.However, this does not prevent indirect discrimination Enid his back. The theme of race and racism is displayed using annalistic imagery, allusions to the occult and straight out racist language. It is not only black people discriminated against in the play, women and even different Italian nationalities are discriminated against. At the time of the play this would have been acceptable but in today's society this mind-set is not politically correct. Othello is the plays primary protagonist. However, because he is black he is the subject of a lot of the characters ridicule.At the beginning of the play, Abrogation is angered that his aught, Desman, is about to marry Othello. Interracial marriage would have been frowned upon at the time. Abrogation describes this as â€Å"too true an evil† expressing his anger at it. However the thing that sets Othello apart from the other Moors is his military background. He serves in the Venetian army which makes him superior to other people of his race. His military service leads people to see him as as opposed to other moors. Despite this, he is not spared from the discrimination of other characters.Ago frequently refers to him as â€Å"black Othello†. This singles him out from the others. At that time black would have also been associated with sin and evil, another reason why the moors were looked down upon by others. This imagery of the occult is linked into the contex t of the play. Abrogation makes references to Othello being involved with black magic many times. He believes that because of his exotic origins, Othello has links to Satan and the dark arts and that he used this magic to win over his daughter. â€Å"Against all rules of nature and must be driven to find out practices of cunning hell. Abrogation does not like the idea f having mixed-race grandchildren and uses many absurd excuses as to why his daughter fell for Othello. At the time, races such as black people and Jews were accused of working with the devil using black magic. In reality these were Just stories fabricated from rumor and legend to spread fear into people. Othello is even compared to the devil himself numerous times. At one point, Ago says that Desman will soon grow tired of being married to a moor. He says â€Å"Her eye must be fed and what delight shall she have to look on the devil? † He is comparing Othello o the devil himself.He later goes on to say â€Å" have you not hurt your head? † This may initially seem like an innocent comment but he is actually suggesting that Othello has horns beginning to grow from his forehead. As the play progresses, Othello becomes more paranoid and has evil tendencies. The metaphorical horns growing represent his growing internal evil and the stereotype of moors being evil monsters. Othello himself fears that he will succumb to this evil and says â€Å"a horned man's a monster and a beast. † By the end of the play, Othello has almost become the stereotypical or feared by white people.A violent murderer blinded by vengeance and insanity. This demonic imagery can be closely linked to the beastly imagery in the play. Another racial stereotype towards moors was their supposed annalistic tendencies. They were thought to be a beastly race and along with the previous satanic imagery, there is a lot of beastly imagery as well. Early in the play, Ago says to Abrogation that â€Å"an old black ram i s tipping your white ewe. † He uses the word â€Å"black† to put emphasis Othello race and provoke Abrogation by telling him that that he andDesman are making â€Å"the beast with two backs. † Ago knows that a black man having sex with his daughter will enrage him so he chooses his words carefully to full fill his motives. Later on Ago describes Othello transition into the stereotypical annalistic moor. He says that â€Å"he foams at the mouth and by and by breaks out to savage madness. † This is almost like a savage animal that foams at the mouth and snarls which represents what Othello has become. Towards the end of the play, Othello beats his chest in a similar fashion to a gorilla.This is a prime example of his ruinations from a noble general to the fear that had been pumped into the white population at the time. He is now the physical manifestation of what people think of his kind and is reinforcing the racial stereotype of moors. As you can see, blac k people were perceived as barbaric monsters that practiced black magic at the time the play was written. Although initially he was nothing like this, Othello slowly becomes this image of the typical moor. Racism towards black people is evidently the predominant example of race in the play. However, it is not the only example.Venetians regarded themselves very highly at the time of the play so practically any sort of ‘outsider' was discriminated against. Michael Cassia is a Florentine and at the time, people from Florence were regarded as academics and scholars. This gives Cassia a reputation as such. Ago says that Cassia â€Å"never set a squadron in the field† which makes him out to be meek. He also says that Cassia displays â€Å"mere prattle without practice† meaning that he is all talk without actually acting on his words. The typical stereotype for Florentine at the time was that they were not made for fighting UT for being scholars.However, later in the pl ay Cassia goes on to disprove this stereotype when he gets in a drunken brawl. This display of violence is a contradiction of the Florentine stereotype and makes people see Cassia in a different light for the rest of the play. Women are also frequently discriminated against in the play. There are three female characters in the play and at the end of it all of them have been referred to as a â€Å"where† at least once throughout its course. At the time of the play women were expected to obey and serve their husbands and treat them tit the utmost respect regardless of how they were treated.Emilie and Desman are both beaten by their respective husbands at least once and Bianca is mocked frequently by Cassia. He calls her a â€Å"poor caitiff' and even a â€Å"monkey'. She appears to love him yet he only uses her for his sexual desires. He brags to Ago about how â€Å"she falls thus about (Caddis) neck† and they both laugh at her. Emilie is aware of how women are mistrea ted and is a feminist of sorts amongst the more submissive female characters. She says â€Å"(men) are all but stomachs and we all but food to eat us angrily and when they are full they belch us. This shows she is aware of how men used women at that time and how she opposed it. In reality, the women have the ability to bring the men to their knees. Othello spiral into insanity at the thought of Adhesion's infidelity is a prime example of this. Although they are mistreated and seen as mere objects by most men they have the potential to manipulate men to cater to their every need. Race is evidently an important theme in Othello. At the time, people tended to be slightly narrow-minded or prejudice towards people whom hey perceived as different.Different races or genders are heavily discriminated against by other races or genders using crude metaphors and absurd stereotypes. However, the play seems to contradict these stereotypes. The black character was initially more civil and moral than the others and the women indirectly bring down many of the male characters. It shows how looks can be deceiving and how stereotypes and race can affect our Judgment of people. Even in today's society this can be seen. Othello is a prime example of how Judging people by their race can be wrong. Otheloo Race in Othello Race is one of the most prominent themes in William Shakespearean Othello. The titular character is a black man in a predominantly white society and one of the first black heroes of English literature. At the time the play was written, black people were treated poorly by white people and were referred to as â€Å"moors† as they were considered to be barbaric and brutal Just like the area of the moors in northern England. The main character is one of few exceptions to this as he is a high ranking officer in the Venetian army.However, this does not prevent indirect discrimination Enid his back. The theme of race and racism is displayed using annalistic imagery, allusions to the occult and straight out racist language. It is not only black people discriminated against in the play, women and even different Italian nationalities are discriminated against. At the time of the play this would have been acceptable but in today's society this mind-set is not politically correct. Othello is the plays primary protagonist. However, because he is black he is the subject of a lot of the characters ridicule.At the beginning of the play, Abrogation is angered that his aught, Desman, is about to marry Othello. Interracial marriage would have been frowned upon at the time. Abrogation describes this as â€Å"too true an evil† expressing his anger at it. However the thing that sets Othello apart from the other Moors is his military background. He serves in the Venetian army which makes him superior to other people of his race. His military service leads people to see him as as opposed to other moors. Despite this, he is not spared from the discrimination of other characters.Ago frequently refers to him as â€Å"black Othello†. This singles him out from the others. At that time black would have also been associated with sin and evil, another reason why the moors were looked down upon by others. This imagery of the occult is linked into the contex t of the play. Abrogation makes references to Othello being involved with black magic many times. He believes that because of his exotic origins, Othello has links to Satan and the dark arts and that he used this magic to win over his daughter. â€Å"Against all rules of nature and must be driven to find out practices of cunning hell. Abrogation does not like the idea f having mixed-race grandchildren and uses many absurd excuses as to why his daughter fell for Othello. At the time, races such as black people and Jews were accused of working with the devil using black magic. In reality these were Just stories fabricated from rumor and legend to spread fear into people. Othello is even compared to the devil himself numerous times. At one point, Ago says that Desman will soon grow tired of being married to a moor. He says â€Å"Her eye must be fed and what delight shall she have to look on the devil? † He is comparing Othello o the devil himself.He later goes on to say â€Å" have you not hurt your head? † This may initially seem like an innocent comment but he is actually suggesting that Othello has horns beginning to grow from his forehead. As the play progresses, Othello becomes more paranoid and has evil tendencies. The metaphorical horns growing represent his growing internal evil and the stereotype of moors being evil monsters. Othello himself fears that he will succumb to this evil and says â€Å"a horned man's a monster and a beast. † By the end of the play, Othello has almost become the stereotypical or feared by white people.A violent murderer blinded by vengeance and insanity. This demonic imagery can be closely linked to the beastly imagery in the play. Another racial stereotype towards moors was their supposed annalistic tendencies. They were thought to be a beastly race and along with the previous satanic imagery, there is a lot of beastly imagery as well. Early in the play, Ago says to Abrogation that â€Å"an old black ram i s tipping your white ewe. † He uses the word â€Å"black† to put emphasis Othello race and provoke Abrogation by telling him that that he andDesman are making â€Å"the beast with two backs. † Ago knows that a black man having sex with his daughter will enrage him so he chooses his words carefully to full fill his motives. Later on Ago describes Othello transition into the stereotypical annalistic moor. He says that â€Å"he foams at the mouth and by and by breaks out to savage madness. † This is almost like a savage animal that foams at the mouth and snarls which represents what Othello has become. Towards the end of the play, Othello beats his chest in a similar fashion to a gorilla.This is a prime example of his ruinations from a noble general to the fear that had been pumped into the white population at the time. He is now the physical manifestation of what people think of his kind and is reinforcing the racial stereotype of moors. As you can see, blac k people were perceived as barbaric monsters that practiced black magic at the time the play was written. Although initially he was nothing like this, Othello slowly becomes this image of the typical moor. Racism towards black people is evidently the predominant example of race in the play. However, it is not the only example.Venetians regarded themselves very highly at the time of the play so practically any sort of ‘outsider' was discriminated against. Michael Cassia is a Florentine and at the time, people from Florence were regarded as academics and scholars. This gives Cassia a reputation as such. Ago says that Cassia â€Å"never set a squadron in the field† which makes him out to be meek. He also says that Cassia displays â€Å"mere prattle without practice† meaning that he is all talk without actually acting on his words. The typical stereotype for Florentine at the time was that they were not made for fighting UT for being scholars.However, later in the pl ay Cassia goes on to disprove this stereotype when he gets in a drunken brawl. This display of violence is a contradiction of the Florentine stereotype and makes people see Cassia in a different light for the rest of the play. Women are also frequently discriminated against in the play. There are three female characters in the play and at the end of it all of them have been referred to as a â€Å"where† at least once throughout its course. At the time of the play women were expected to obey and serve their husbands and treat them tit the utmost respect regardless of how they were treated.Emilie and Desman are both beaten by their respective husbands at least once and Bianca is mocked frequently by Cassia. He calls her a â€Å"poor caitiff' and even a â€Å"monkey'. She appears to love him yet he only uses her for his sexual desires. He brags to Ago about how â€Å"she falls thus about (Caddis) neck† and they both laugh at her. Emilie is aware of how women are mistrea ted and is a feminist of sorts amongst the more submissive female characters. She says â€Å"(men) are all but stomachs and we all but food to eat us angrily and when they are full they belch us. This shows she is aware of how men used women at that time and how she opposed it. In reality, the women have the ability to bring the men to their knees. Othello spiral into insanity at the thought of Adhesion's infidelity is a prime example of this. Although they are mistreated and seen as mere objects by most men they have the potential to manipulate men to cater to their every need. Race is evidently an important theme in Othello. At the time, people tended to be slightly narrow-minded or prejudice towards people whom hey perceived as different.Different races or genders are heavily discriminated against by other races or genders using crude metaphors and absurd stereotypes. However, the play seems to contradict these stereotypes. The black character was initially more civil and moral than the others and the women indirectly bring down many of the male characters. It shows how looks can be deceiving and how stereotypes and race can affect our Judgment of people. Even in today's society this can be seen. Othello is a prime example of how Judging people by their race can be wrong.

Emotions as a Motive Essay

Introduction Introductions for at least two historical theories of emotion and arousal as they relate to human motivation. In social interactions emotions play an essential role, (Russell, Bachorowski, & Fernandez-Dols.2003; Scherer, 2003; Sanderel al, 20050. Your perception and facilitate rational decision-making and the brain within the human body. It is difficult to perform important regulatory and utilitarian functions. (Damasio, 1994). Perception and human cognition is the importance of emotions. And this is evidence from recent neurological studies underlines, (Picard, 2001). The discipline that studies human computer interactions, the affects and gain understandings of these phenomenon interactions have only recently started to investigate this. (Julien Mc Kecknie, & Hari, 2005; Picard, 1997; Nahl & Bilal, 2007). Affective systems are developing and some progress has been made in the subject. Pleasurable and computer interaction experiences more effective and the ultimately making, human’s emotions are capable of recognizing and appropriately and responding to it. (Picard, 1997). In this field of emotion is still young with rapidly developing. The specific research objectives, has been to present this existing methodologies, so are readers will be able to evaluate these approaches against specific research objectives. In their opinion the reviewed methods have had a similar level of exposure and validation by our peers. They are what make life worth living and sometimes ending it. No aspect of our mental life is more important to the quality and meaning of our existence than emotions. Covered by the word â€Å"emotions† perhaps because the sheer variety of this phenomena. What is so surprising is that much of the 20th century philosophers and psychologists tend to neglect them. Economics, evolutionary biology. Neurology, particularly  psychology disciplines, it is no longer useful to speak of the philosophy of emotion and isolation from the approaches of others, between different emotions as well.as some of the ways in which they have envisaged in relation, I began by outlining the different ways that philosophers have conceived the place of emotions and the two pagraphy of the mind. In their relation to particularly in their relation to bodily states, to this starts of motivation, to a beliefs and desires as well as some of the ways in which they envisaged that relation to the contents of life offered a number of theories of emotion and stressing their function. Be said to be rational. Morality and relations between emotions this results in a particularly ambivalent. I will conclude with a brief survey of some recent trends by the neighboring disciplines in which the studies of the motion had become increasingly prominent, Historical Theories of Emotion According to Deckers (2010), â€Å"psychological arousal is one of the expressive channels for emotion† (p. 325). Also changes in different psychological variables are also important in determining what emotion the person is feeling. An assumption regarding physiological arousal is that the arousal is the cause for the emotion. Another hypothesis is that the arousal is the stimulus accompanying and deciphering the environment, resulting in the emotional reaction (Deckers, 2010). Lastly a third assumption is arousal and subjective feelings happen together and arousal provides preparation for the reaction (Deckers, 2010). James-Lange theory â€Å"The James-Lange theory refers to a hypothesis on the origin and nature of emotions and is one of the earliest theories of emotions within modern psychology† (Lang, Peter J., 1994. The Varieties of Emotional Psychology. The theory was developed by William James and Carl Lange and the basic concept of this theory is that the physiological arousal reveals a specific emotion. Instead of the body feeling an emotion and the body using its responses, this theory shows that the physiological change is first, and emotion is then kicked in when the brain reacts to all the information given and received by the nervous system. The James –Lange theory shows how most and all emotion is presented at the presented at the basis of a natural  stimulus, which shows a physiological response. The responses produced from this could be a rise in one’s heart rate, sweating and dryness of the mouth and sometimes fatigue. When dealing with and understanding the James- Lange theory an object that has an effect on a sense relays and the message to the cerebral cortex. At that point the brain sends that information and message to the body’s muscles and the viscera, in return they both respond to the signals. James showed that the response comes first, followed by an emotion and them instantly followed by a reaction. The James- Lange theory relies and uses the foundation of impulses from the periphery to account for many emotional experiences. â€Å"The main concepts of the Cannon- Bard theory is that the emotional experiences result from stimulation of the dorsal thalamus† (James, W; 1922. The Emotions). Many times the physiological changes and feelings of a particular emotion as part of the response to a natural stimulus which are independently aroused and can often occur before emotion happens. This theory is based on research and studies that use the brain, physiological responses and feelings in an emotional situation. The most important factor in the Cannon- Bard theory is that the body changes with different emotional experiences and situations. Cannon summarizes this theory with the understanding that the thalamic region is the coordinator and operation center for emotional reactions. Research Methods Uncovering emotion is an ongoing process. Researchers work diligently to find ways to measure how human emotions occur. In the Little Albert experiment, Albert was not afraid of white rats until it was paired with a loud clinging noise. This experiment demonstrated how fear can be produced in a human being. This research was done in 1920 by John B. Watson and Rosaline Rayner, the purpose was to prove fear is a learned behavior. Although this research method demonstrated how a behavior is created, it also added insight into human emotions. Observer method Research methods have since then evolved into understanding how emotions can be measured. One research method used by psychologist is called the observer method. In this method a person is given several tasks to perform, which are observed by a researcher. The researcher is looking for facial expressions,  body language or gestures, and also speech. This method is widely used in psychology research of different disorders as well as emotions. Although the participant may fake some of the emotions during the process, this method has been instrumental in aiding the psychologist reading emotions. Analyzing the data from the observer research method can be somewhat skewed; and therefore, the information may not be as accurate if the person is afraid to show his or her true emotions. However the observer method is a good method to consider. Self-report Method Another type of research is called a self- report, where the participant is given a questionnaire or an interview in order to understand how a person responds. Using self – report method, participants may be asked to keep an honest journal of how they feel. Journal writing may be one of the most effective ways to uncover emotions because it gives an honest account of how a person feels at any given time. The self – report method may prove to be more accurate in terms of understanding human emotion. Participants are more likely to answer a questionnaire truthfully especially of it is anonymous. If a research method does not single out a person, then probably he or she will provide honest responses. When a person is interviewed it is possible he or she will be honest with the interviewer, which can further the research on emotions. There are others methods used to uncover emotions, however self – report perhaps is the best way to unlock the mysteries of human emoti on. Facial Feedback Hypothesis Facial expressions are an individual’s way of letting others know how he or she feels. Facial expressions provide an insight to the person basic emotions. Because facial expressions are a connection to the person’s emotions, it is safe to say that a smile simply means he or she is happy and a frown means a person is sad, unhappy. A hypothesis regarding facial expressions is that emotion and an experience are in relation to each other, however they do not share a connection or cause each other. A stimulus is the cause for an emotion and experience that are presented through facial expressions. Another hypothesis is that the affective experience and emotions are in direct cause of one another. This means that a person will show emotion through facial expressions only based on an experience, such as  watching a sad movie and showing sad facial expressions, watery eyes etc. The event-appraisal-emotion sequence is how an individual concludes the reason for someone’s emotional or sentimental response. An example of this sequence process is a person’s first date. A person will evaluate the date, and if the date seemed successful the person may feel happy, at ease, excited for possible future dates, and a possible long term relationship. Therefore, evaluating a situation based on the emotions that are being felt about it can lead to other emotions based on that experience. Both the facial feedback hypothesis and the event-appraisal-emotion sequence are based on a person emotions and experiences with other people. Despite the events that take place and the emotions that evolve due to these events all situations end in the same way, people ending up with a variety of emotions (Deckers, 2010). Conclusion Throughout this class we have learn so much about motivation and emotion gaining a good understanding about the influences our motivation and emotions how we can influence them. Motivation research and there theory are so importance so we can understand why we do what we do and why we act the way we do. All of these theories are in a way correct with interplay the different drives that motivating us in different times. Many theories have been done and they suggest psychological drives of autonomy competence or socialized drives for achievement affiliation and the power to motivate us. Hunger and sex are biological drives witch motivate us and many theories have been formulated which suggest this. When trying to increase my own motivation I found information on intrinsic versus extrinsic motivation really resonated. If what we are support to seen as enjoyable or interesting then we will be motivated to do them. To increase motivation sometime if you have an explanation about what it means or the importance of the task this will also increase the person’s motivation. To keep you motivate on a task you can break down into tasks that you can achieve and goals is also very motivated as positive reinforcement. Overall this class has help me to understand motivation and apply it to everyday life in this case I will need a lot more motivation.it has also taught me to understand how to go for it and inprove these situations so I can get move motivation. References Deckers, L. (2010). Motivation: Biological, psychological, and environmental (3rd ed.). Boston: Pearson/Allyn & Bacon. Lottridge, D., Chignell, M., & Jovicic, A. (2011). Affective interaction: Understanding, Evaluating and Designing for human emotion. Human Factor and Ergonomics Society, 7(197). Retrieved from http://www.sagepublictions.com http://effectivepapers.blogspot.com/2010/12/research-paper-on-emotions.html http://www.antiessays.com/free-essays/Psy-355-Sources-Of-Motivation-Paper-164233.html http://prezi.com/wytlsxre8y9l/motivation-and-emotions/ http://www.peoi.org/Courses/Coursesen/psy3/contents/frame10a.html http://allpsych.com/psychology101/motivation.html References: Lang, Peter J. (1994). â€Å" The Varieties of Emotional Experience: A Meditation on James- Lange Theory†. Psychological Review 101 (2): 211-221. James, W. ; C.G. Lange ( 1922). The emotions. Baltimore: Williams and Wilkins Co.