Scientist Leonardo da Vinci Essay Example | Topics and Well Written Essays - 1000 words

Scientist Leonardo da Vinci - Essay Example Da Vinci's art was an integral part of his science, and a way to enact the scientific discoveries that he was unlocking at the time. Leonardo da Vinci would immerse himself deeply in the observation of nature, and through meticulous study uncover the mysteries behind it. Still, it has been only recently that Da Vinci's scientific work has gained the recognition that it deserves, and the importance of his science continues to be revealed today. Leonardo Da Vinci was many things and had many talents, but when taken together he was first and foremost one of the most renowned scientists in the history of the new world. One of the most important features about Da Vinci the Scientist is that Leonardo considered himself a scientist above all, and all his other endeavors were supporting of his understanding of science. The fact that he considered himself a scientist first can be seen in one of his most famous works of art, the Vitruvian Man. While it is fundamentally a work of art, it combines anatomy, proportion, and geometry in an effort to link man, nature, and science. In Da Vinci's version of the Vitruvian Man, he had "developed an obsession with the infinity of geometric transformation as exhibited by his attempt to square the circle" and the image he created was of a female figure with "many of the traits still deemed ideal" (Papel, Thieme, and Frodel 97-98). The image is still used by the scientific and medical community as a point of reference for form and proportion. In this way, da Vinci had found a scientific expression for the beauty of the human body that has stood the test of centuries. To da Vinci, this was not simply art, but was more importantly a work of science containing a myriad of different disciplines. Understanding the importance of da Vinci as a scientist requires an understanding of how far ahead he was of the scientific thinking of the time. Da Vinci was one of the first and foremost proponents of the scientific method. A recent exhibit of "The Inventions of Leonardo da Vinci" presented at Hampden-Sydney College noted that da Vinci, the scientist, "recorded his observations meticulously and sought explanations by comparing one natural phenomenon with another. He conducted experiments to test and verify his hypotheses, recognizing that observations and experiments had to be repeated many times before generalized conclusions could be drawn" (Hampden-Sydney College). This approach to the study of nature fundamentally changed the ways in which the scientific community approached a problem and sough to gain truth. His careful observation of nature, the application to his inventions, and the revolutionary thinking is evidenced by his flying machines. In 1483 da Vinci designed a compl ex machine capable of hovering that would become a helicopter 500 years later (Castillo, Lozano, and Dzul 4). According to Anderson, "Interest in the 'proper' shape for an airfoil dates as far back as the late 15th century and Leonardo da Vinci's ornithopter designs" (304). These designs reflected da Vinci's scientific understanding of nature, and his drawings were merely his method of modeling and recording the science. In addition to being centuries ahead of the science and the scientists of his day, da Vinci was also one of the most prolific scientists in history. His scientific endeavors covered

Securing and Protecting Information Essay Example for Free

Securing and Protecting Information Essay The specific purpose of this paper is to describe the authentication process and to describe how this and other information security considerations will affect the design and development process for new information systems. The authentication process is a necessity for safeguarding systems against various forms of security threats, such as password-cracking tools, brute-force or wordbook attacks, abuse of system access rights, impersonation of attested users, and last but not least reply attacks just to name a few. In addition, it is imperative that authentication policies are interchangeable with the organizations in which information is being exchanged if resources are being shared between alternative organizations. Authentication in definition is simply proof that something is real or what it is meant to be. Public networks as well as private networks to include the internet use passwords as authentication to authorize logins. Data is required and is filtered through the password database if an effort to ensure that the user is authentic. Also, before anyone is allowed to access an organization’s intranet they must first be registered by someone that has the appropriate credentials to authorize them to gain access. There are plenty of businesses and alternative in the need of additional authentication methods and one method worthy of mentioning is the utilization of digital certificates issued and verified by a Certificate Authority or as commonly used the acronym CA. This process includes the creation of a strong password and an account lockout policy is created, logon hours are assigned, a ticket expiration policy is created, and clock synchronization tolerance to prevent replay attacks is set just to name some of what this process consist of. There are some things that must be taken into  consideration when a new system is design. Securing and Protecting Information When a team is appointed to designs a new system, that team must understand that all systems are not the same and that they all have their own unique attributes in their own way but the thought process must be the same in regards to security. It is quite challenging to insure that the application integration setting functions properly in a way that does not compromise the security needs. Security is especially necessary in applications that require systems in a company to be streamlined. Integration services might lead to security breaches because of the integrated systems and the holes that may exist during the integration process. To try to alleviate this from occurring, data security should be integrated into the System Development Life Cycle (SDLC) from its beginning phase. This focuses directly on the knowledge security sections of the Syetsm Development Life Cycle. First, an outline of the key security roles and responsibilities should be addressed to insure that everyone involved knows what is expected. Second, ample data concerning the System Development Life Cycle is provided to permit anyone who is unfamiliar with the System Development Life Cycle method in order that they may grasp the connection between data security and also the System Development Life Cycle There are several ways exist that could be employed by a corporation to effectively develop a data system. A conventional System Development Life Cycle is known as a linear sequent model. The linear sequent model assumes that the systems are going to be delivered at a point near the top of its life cycle. Another SDLC technique uses the prototyping model that is commonly accustomed to development and understanding of a system’s needs while not really developing a final operational system. Complicated systems need continuous additional constant development models. Securing and Protecting Information Information system policies address security threats that may be harmful to a company. Sadly, there is no way to alleviate the numerous amounts of threats that haunt networks and computers worldwide. The foundation and framework for choosing and implementing countermeasures against them are very important. A written policy is vital in helping to  insure that everyone within the organization understands and behaves in an appropriate manner with regards to the fact that sensitive data and the security of software should be kept safe. When a security policy is developed, it should be well defined and the information in it should be clear and plainly understand and the objectives should be well defined so that there will be no confusion. Conversely, a data system with security policies is probably going to have an assortment of countermeasures that address a range of threats. Policies, standards, guidelines, and coaching materials that are known to be obsolete and not enforced could be dangerous to a corporation due to the data being outdated. As a result, management is basically drawn into thinking that security policies do exist within the organization when actually that is not the case. Counter measures which are outdated does not do an organization any good because without the appropriate patches in place, the organization’s network could have holes which would leave them extremely vulnerable. All organizations need to be compelled to actively put their security systems to the test and in addition they could even go as far as hiring an outside firm to ping the system to see if any holes appear that could leave the company’s system vulnerable. Of course there are preventive roles and measures that could and should be taken. Data security should be a crucial area of concern for small business owners. Knowledge of security compliance is no longer merely an area of financial concern Securing and Protecting Information As more and more data moves out of the file cabinet and into the electronic space, Information Technology departments will play an integral role in complying with all of the security policies. Once you take into account all the necessary information stored from economic records to customers data, it is not difficult to discover why only a single breach could seriously affect a business. With a number of basic steps and a few sensible on-line habits, youll prevent yourself from turning into simply another victim of cyber crime. (Ratha, Connell, Bolle, 2001) Some of the preventive roles and measures mentioned above are as follows: implementing sturdy strong passwords, use a mixture of capital and lower-case letters, symbols, and numbers and create it eight to twelve characters long, acquire  anti-virus/anti-malware software package, and last but not least, ensure your personal computer (PC) is properly patched and updated. It is important to mention that there is very little purpose in installing a very effective software package if it is not going to be properly maintained. As Watchinski explains, â€Å"while applications arent 100% fool-proofs, its necessary to frequently update these tools to assist in keeping users safe. It is also worthy of mentioning that scheduling regular backups to AN external drive, or within the cloud, may be painless thanks to make sure that all of your knowledge is kept safely. It must also be mentioned that it is not uncommon for an unsuspecting worker to click on a link or transfer an attachment that they believe is harmless just to realize later that the link contained malicious software that has compromised the company’s network. It is extremely important to teach your staff to practice safe on-line habits and beieing proactive with defense is crucial. Employees have a crucial role to play to keep your business and its knowledge secure. Securing and Protecting Information To touch on systems and devices in reference to security, security refers to providing a protection system to ADPS resources such as the central processor, memory, disk, software package programs, and most significantly data/information keep within the ADPS. As a part of the data systems security management, there are square measures peripheral devices installed so that the regulated community so to speak will listen. These peripheral devices will create an unseen threat (insider/third party threat). (Workman, Bommer, Straub, 2008) There are certain devices that appear to be harmless but could prove to cause issues such as USB devices (commonly known as flash/thumb drives), USB patch cords with mini/micro connectors, and Electronic notebooks just to name a few. In conclusion, security authentication is extremely necessary and relevant in the protection of an organization’s information. References CMGT/400-Intro to Information Assurance and Security DArcy, J., Hovav, A., Galletta, D. (2009). User awareness of security countermeasures and its impact on information systems misuse: a deterrence approach. Information Systems Research, 20(1), 79-98 Myers, J. G. (1997). Simple authentication and security layer (SASL). Zhu, J., Ma, J. (2004). A new authentication scheme with anonymity for wireless environments. Consumer Electronics, IEEE Transactions on, 50(1), 231- Sandhu, R., Samarati, P. (1996). Authentication, access control, and audit. ACM Computing Surveys (CSUR), 28(1), 241-243. Rocha Flores, Waldo, Egil Antonsen, and Mathias Ekstedt. Information security knowledge sharing in organizations: Investigating the effect of behavioral information security governance and national culture, Computers Security, 2014.

Foreign Exchange Risk Management Analysis

Foreign Exchange Risk Management Analysis Chapter 1 Introduction This chapter will introduce the reader to the subject at hand and why the chosen research area is of interest and relevance for further development. Finally, the chapter includes a problem discussion, which in turn ends up in the research purpose of the thesis. 1.1 Background of the Study The deepening of globalization process has led to an increase in foreign exchange transactions in international financial markets. This has determined a higher volatility of exchange rates, and, implicitly, an increased foreign exchange risk. There are many types of risks, but only few of them can bring losses as large as foreign exchange risk. In these conditions, the development of new modern and effective methods for managing foreign exchange risk becomes a great necessity for the players in international financial activity. Foreign exchange risk management is crucial for companies frequently trading in the international market. Empirical research shows that profits of multinational companies are affected by volatile floating foreign exchange rates. Nevertheless, small firms trading exclusively on their domestic markets also become increasingly exposed to foreign currency fluctuations. Actually, small firms depend on the volatility of the main currencies because many of them out-source their production to foreign countries. This means that they incur costs in a foreign currency (wages, taxes, material, etc.) and they also need to manage this exposure. Other small firms are exposed indirectly given that their strategic position can be affected by volatile FX rates. By definition, all entrepreneurial activities incur risks, and coping with risk has therefore always been an important managerial function. In recent years, however, risk management has received increasing attention in both corporate practice and the literature. This is particularly true for the management of financial risks, i.e. the management of foreign exchange risk, interest rate risk and other financial market risks. A major reason for this is the development of markets for derivative financial instruments. Forward contracts, futures, options, swaps and other, more complex financial instruments today allow firms to transfer risks to other economic agents who are better able, or more willing, to bear them. In 1971, the Bretton Woods system of administering fixed foreign exchange rates was abolished in favour of market-determination of foreign exchange rates; a regime of fluctuating exchange rates was introduced. Besides market-determined fluctuations, there was a lot of volatility in other markets around the world owing to increased inflation and the oil shock. Corporates struggled to cope with the uncertainty in profits, cash flows and future costs. It was then that financial derivatives foreign currency, interest rate, and commodity derivatives emerged as means of managing risks facing corporations. The interest in the potential vulnerability of multinational firms to foreign exchange rate risk is heightened by the wide currency fluctuations experienced during the last few decades and this issue has engendered a considerable amount of research (Muller, A., Verschoor, W.F.C. 2006). In India, exchange rates were deregulated and were allowed to be determined by markets in 1993. The economic liberalization of the early nineties facilitated the introduction of derivatives based on interest rates and foreign exchange. However derivative use is still a highly regulated area due to the partial convertibility of the rupee. Currently forwards, swaps and options are available in India and the use of foreign currency derivatives is permitted for hedging purposes only (Giddy et.al. 1992). 1.2 Problem Statement Transaction exposure to foreign exchange risk results from the effect of (unanticipated) changes in the spot exchange rate on the base currency value of foreign currency cash flows (contractual payables and receivables). Financial hedging of transaction exposure is implemented by taking an opposite position (to the spot position) on a currency derivate (such as forwards, futures and options) or by using money market hedging. In some cases, however, financial hedging may not be possible or it may be too expensive. For example, forwards, futures, and options may not be available for some currencies or for long maturities, and it may not be possible to obtain credit lines in certain currencies (which precludes money market hedging). This observation is particularly valid for countries where financial markets are rudimentary. If a firm facing (transaction) exposure to foreign exchange risk cannot indulge in financial hedging, it may resort to the operational hedging techniques of risk sharing and currency collars, which can be implemented by using customised hedge contracts embedded in the underlying trade contracts. Under a risk sharing arrangement, the benefits accruing to one party of a transaction as a result of a favourable change in the exchange rate (which is necessarily an unfavourable change for the other party) are shared by the two parties. A currency collar, on the other hand, is used to set a minimum value for the base currency value of cash flows at the expense of setting a maximum value. Thus, it involves a trade-off between potential loss and potential gain. The unpredictability of forex market may erode or even eliminate the profit margin built into an international sale at the time the sale was carried out, when selling on terms of weeks and even months. Foreign exchange rate keeps on fluctuating and they depend upon the market forces of demand and supply (Platt, G. 2007). Hedging refers to managing risk to an extent that makes it bearable. In international trade and dealings foreign exchange play an important role. Fluctuations in the foreign exchange rate can have significant impact on business decisions and outcomes. Many international trade and business dealings are shelved or become unworthy due to significant exchange rate risk embedded in them. Historically, the foremost instrument used for exchange rate risk management is the forward contract. Forward contracts are customized agreements between two parties to fix the exchange rate for a future transaction. This simple arrangement would easily eliminate exchange rate risk, but it has some shortcomings, particularly getting a counter party who would agree to fix the future rate for the amount and time period in question may not be easy. In India many businesses are not even aware that some banks do provide forward rate arrangements as a service to their customers. By entering into a forward rate agreement with a bank, the businessman simply transfers the risk to the bank, which will now have to bear this risk. Of course the bank in turn may have to do some kind of arrangement to manage this risk. Forward contracts are somewhat less familiar, probably because there exists no formal trading facilities, building or even regulating body. 1.3 Research Objectives and Questions There is a need to identify, quantify, and evaluate a firms risk exposure and to choose appropriate procurement strategies. The general objective of this study is to incorporate procurement and marketing decisions into a single hedging model, considering risk factors typically faced by firms in the textiles and garment industry. There are several reasons to explain why foreign risk management has gained in popularity over the last decades. The most important reason lies in the increased volatility of exchange rates, interest rates, and commodity prices, causing firms cash flows to become more uncertain. Secondly, firms tend to focus more on their core business, which makes them less diversified. As a consequence, the volatility of firms cash flows may increase. A third reason for the growing importance of foreign risk management can be found in the globalization of business activities, in which competition has increased and profit margins have declined. A final explanation we offer is the growing number of opportunities to manage risks. Based on the problem discussion our research objectives are formulated as follows: To review and critically analyse the practices adopt by the Indian exporters to hedge the forex risk. To evaluate the impact of foreign exchange risk on exporters and exports of a country like India To critically compile the issues faced by the Indian exporters in hedging foreign exchange risk. Based on the above stated research objectives the following research questions have been developed: RQ 1: How the export company determines foreign exchange risk? RQ 2: Which level the company can actively manage foreign exchange risk? RQ 3: How it can hedge the forex risk? RQ 4: What techniques are preferred by company in its forex risk management? 1.4 Relevance of Research Currently there is a scarcity of research papers about currency exposure management in companies in emerging markets. Theoretical studies like that of Copeland and Copeland (1999) are usually supported by the findings from developed countries (the USA, Canada, the UK). Therefore, the application of such studies might be complicated in developing markets. Researchers that analyze the foreign exposure management in companies often use large samples and questionnaires to evaluate the derivate use, and are successful in describing countries with well-developed markets. For emerging markets like India such quantitative approaches are extremely rare. Most often the situation with currency exposure management and application of derivatives by non-financial institutions is reflected in the newspapers. Yet, these articles are not academic papers and serve only as descriptions of the situation. Therefore, this study will be distinctive in several areas. First, it concentrates on India and will contribute to the increase in the number of academic studies about emerging markets. Second, it will contribute to the business community , as it will analyze the application of derivatives by exporting companies for hedging currency exposure and reveal the causes higher or lower popularity of derivatives. Third, it will apply the theoretical model which was developed based on the practice in developed countries, and test if the results from model application match the empirical findings in reality in India. 1.5 Outline of the Study This dissertation consists of five chapters (see Figure 1.1). In chapter one, a relative broad description is given in the beginning, providing the reader with a background and discussion of issues related to the problem area. This discussion lands in a specific research problem, which has been broken down into research questions. Chapter two gives a presentation of theories relevant for the research problem. Continuously, a description and justification of the methodological approaches chosen in this thesis is given in Chapter three. In chapter four the received empirical data is presented and contains an analysis of the collected data against the theory. Finally, conclusions and implications are presented in chapter five. Literature Review This chapter reviews the literature theory of foreign exchange risk management include the concepts of foreign exchange risks, its characteristics by different types, and hedge theory of foreign exchange risks. 2.1 Foreign exchange risk Whenever a company is running overseas business, the company is exposed to different categories of risk including commercial risk, financial risk, country risk and foreign exchange risk (Oxelheim 1984). Country Risk Foreign Exchange Risk Financial Risk Commercial Risk Figure2.1 The company risk Source: Oxelheim 1984, p14 Foreign exchange risk is commonly defined as the additional variability experienced by a multinational corporation in its worldwide consolidated earnings that results from unexpected currency fluctuations. It is generally understood that this considerable earnings variability can be eliminated-partially or fully-at a cost, the cost of Foreign Exchange Risk Management. (Jacques, 1981). According to Shapiro (2006), foreign exchange rate exposure can be defined as a measure of the potential changes in a firms profitability, net cash flow and market value because of a change in exchange rates. 2.2 The existing classifications of foreign exchange risks In the recent literature of foreign exchange exposure management, the types of exposures are usually summarized and simplified into three categories, translation, transaction, and economic ( Cowdell, 1993; Girnblatt and Titamn, 1998; Eitman et. al.,1998 and Shapiro, 2006). It is conventionally stated that the exposure to currency risk is categorized into three factors; seen below in figure 2.2. Figure 2.2 Types of currency risk exposure Source: Eun et al.,2007 Transaction Exposure The transaction exposure concept concentrates on contractual commitments which involve the actual conversion of currencies. A firms transaction exposure thus consists of its foreign currency accounts receivables and payables, its longer-term foreign currency investments and debt, as well as those of its foreign currency cash positions which are to be exchanged into other currencies. Until these positions are settled, their home currency value may be impaired by unfavorable parity changes. There exist four possibilities by which transaction exposure may arise (Eiteman 2007): When prices are stated in foreign currencies and the firm decides to purchase or sell goods or services. When borrowing or lending funds while contractual agreements on repayment are to be make in a foreign currency. When becoming a party to an unimplemented foreign exchange forward contract. When incurring liabilities or acquiring assets which are denominated in foreign currencies. The total transaction exposure consists of quotation exposure, backlog exposure and billing exposure, see figure 2.3: Figure 2.3 The life span of a transaction exposure Source: Eiteman et al., 2007 2.2.2 Economic Exposure The economic exposure, also called the operating exposure, measures any change in the present value of a company resulting from changes in future operating cash flows caused by unexpected changes in currency exchange rates. The analysis of economic exposure assesses the result of changing exchange rates on a companys own operations over coming months and years and on its competitive position in comparison with other companies. By measuring the effects on future cash flows related to economic exposure, the goal is to identify strategic moves or operating techniques that a company might wish to adopt in order to enhance its value in the face of unexpected exchange rate changes (Eiteman et al., 2007). Loderer and Pichler (2002) assert that firms often manage economic exposure by lending and borrowing in foreign currencies. He cites the following reasons for not hedging economic exposure: firms are unable to measure the size and the currency of future expected cash flows with much confidence, firms already hedge transaction exposure, firms consider that in the long term currency fluctuations offset each others. Surprisingly, the cost of hedging economic exposure is not an obstacle. 2.2.3 Translation exposure By consolidating its financial statements, a parent company with foreign operations must translate the assets and liabilities of its foreign subsidiaries, which are stated in a foreign currency, into the reporting currency of the parent firm. Basically, foreign subsidiaries must restate their local currency into the main reporting currency so the foreign values can be added to the parents reporting currency denominated balance sheet and income statement. The translation is usually used for measuring a subsidiarys performance(McInnes, 1971), providing accurate information for decision makers and investors (Ross, 1992; Bartov, 1995), and for both internal and external users (Sercu and Uppal, 1995). The common reason for translation from a foreign currency into the home currency is to meet the requirements of accounting regulations of home countries. External Hedging Methods As it is shown, the exposure to currency risk may involve current business transactions, future business transactions as well as financial statement translations. However, as there are factors or risk, so are there strategies for dealing with them. For companies, there are a number of external methods to use for the management of currency risk, namely the use of financial derivatives. The name derivative arises from the fact that the value of these instruments is derived from an underlying asset like a stock or a currency. By using these instruments it is possible to reduce the risks associated with the management of corporate cash flow, a method known as hedging. Financial market hedging instruments include (Butler, 2004): Fig 2.4: External Hedging Techniques 2.3.1 Foreign Exchange Forwards A foreign exchange forward is an agreement to buy or sell one currency at a certain future date for a certain price with a specific amount. It is the most common instrument used to hedge currency risk. The predetermined exchange rate is the forward exchange rate. The amount of the transaction, the transaction date, and the exchange rate are all determined in advance where the exchange rate is fixed on the day of the contract but the actual exchange takes place on a pre-determined date in the future. In major currencies, forward contracts can be available daily with maturities of up to 30, 90 or 180 days (Bodie Marcus 2008). A survey by Belk and Glaum (1990) indicates that the most common method used to hedge exchange rate risk is the forward contract. An empirical study of Pramborg (2002), also demonstrates that firms can be fully hedged with forward contracts. 2.3.2 Currency Futures In principle, a futures contract can be arranged for any product or commodity, including financial instruments and currencies. A currency futures contract is a commitment to deliver a specific amount of a specified currency at a specified date for an agreed price incorporated in the contract. The futures perform a similar function to a forward contract, but it has some major differences. Fig 2.5 Currency Futures The specific characteristics of currency futures include (Pike et.al., 1992): They are marketable instruments traded on organized futures markets. Futures can be completed (liquidated) before the contracted date, whereas a forward contract has to run to maturity. They are relatively inflexible, being available for only a limited range of currencies and for standardized maturity dates. The dealings occur in standard lot sizes, or contracts. They require a down-payment of margin of about 5 percent of the contract value, whereas forward contracts involve a single payment at maturity. Futures are usually cheaper than forwards contracts, requiring a small commission payment rather than a buy / sell spread. Table 2.1 provides a clearer summary of the major differences between forward and futures contracts. Table 2.1: Major Differences between Forward and Futures Contracts Forward Contracts Futures Contracts Customized contracts in terms of size and delivery dates Standardized contracts in terms of size and delivery dates Private contracts between two parties Standardized contracts between a customer and a clearing house Difficult to reverse a contract Contract may be freely traded on the market Profit and loss on a position is realized only on the delivery date All contracts are marked to market- the profit and loss are realized immediately. No explicit collateral, but standard bank relationship necessary Collateral (margins) must be maintained to reflect price movements Delivery or final cash settlement usually takes place. Contract is usually closed out prior to Maturity Source: Hull (2006), Moffett et al (2006) and Solnik and McLeavey (2004). 2.3.3 Currency options A foreign exchange option which is different from currency forward contracts and currency futures is to give the holder of the contract the right to buy or sell a certain amount of a certain currency at a predetermined price (also called strike or exercise price) until or on a specified date, but he is not obliged to do so. The seller of a currency option has obligation to perform the contract. The right to buy is a call; the right to sell, a put. There is option premium needed to pay by those who obtain such a right. The holder of a call option can benefit from a price increases (profit is the difference between the market price and the strike price plus the premium), while can choose not to excise when the price decreases (locked in loss of the option premium). Vice versa is for the holder of a put option. For the advantages of simplicity, flexibility, lower cost than the forward, and the predicted maximum losswhich is the premium, the currency option has become increasing popular as a hedging devise to protect firms against the exchange movements. Whenever there is uncertainty in the size of cash flows and the timing of cash flows, currency option contracts would be superior to traditional hedging instruments such as forward contracts and futures contracts. Grant and Marshall (1997) examined the extent of derivative use and the reasons for their use by carried out surveys in 250 large UK companies, found that a widespread use of both forwards and options(respectively 96% and 59%). The pointed that comparing to the primary reasons for the use of forwards were company policy, commercial reasons and risk aversion, a good understanding of instrument, and price were prominent while the primary reasons to use option for company management. 2.3.4 Currency Swaps Currency swaps are a hedging instrument for which two parties agree to swap a debt denominated in one currency for that in another currency. For example, an agreement between two firms to swap their debts of which one is denominated in Euro and that in US dollar (Leger and Fortin, 1994). In order to explain the use of currency of swaps, a Japanese firm that has exports to Australia is given as an example. The Japanese firm wants to protect its Australian-dollar receivables by using currency swap to match inflows in one currency with outflows in a foreign currency (natural hedging). Assuming the Japanese firm is not well recognized in the US financial markets, it may obtain funds from a domestic bank to swap with another firm that has dollar-denominated debt. This process is carried out by the swap dealers (usually banks) as an intermediary. The common objective of this type of transaction is that firms want to alter various future currency cash flows in its schedules into a particular currency for which its future revenues will be generated (Eiteman et.al 1998). The preference of particular currency is caused by several factors, such as, capital market segmentation, differences in regulation governing investment by institutional investors and asymmetry in the tax treatment of interest income and capital gains/losses (Jacque 1996). Although there are other types of swaps involving foreign currencies, such as, foreign currency forward swaps, plain vanilla, and a three-way back-to-back currency swap, they are designated primarily for hedging interest rate exposure. 2.4 Internal hedging methods For the reason that external hedging techniques with derivatives to manage foreign exchange exposure are often costly, many multinational firms would rather turn to consider using internal hedging devices such as Michael (2006): Currency matching, which involves pairing suitably a multinational firms foreign currency inflows and outflows with respect to amount and timing Currency netting, which involves the consolidated settlement of receivables, payables and debt among the subsidiaries of a multinational firm Invoicing in domestic currency, which reduces transaction risk primarily related to exports and imports. 2.5 Fundamental Philosophy behind Hedging We have presented that authors embrace hedging as insurance, and hedging as a value-enhancing tool. We believe the common view of hedging can be summarized as follows: Hedging is one of the three most fundamental reasons for the existence of the financial market, alongside speculative and arbitrage activities (JÃ ¼ttner, 2000). The hedging industry is evolving just like the rest of the business world. In fact, there is no definite set of tools or technique that can define hedging. As the world changes, new hedging mechanisms are derived; and as time passes, these mechanisms are refined and evolve into something new that can be better applied to the contemporary commercial marketplace (Batten et al, 1993; Faff and Chan, 1998; Alster, 2003;). Hedging is not a way of making money, but to assist management in better managing corporate revenue through reducing the corporate exposure to volatility in the foreign currency markets (Nguyen and Faff, 2002, 2003a; Anac and Gozen, 2003; Alster, 2003; De Roon et al., 2003; and Dinwoodie and Morris 2003). When used prudently, hedging can be effective insurance as well as a value-enhancing exercise for corporations. Effective hedging programs have been proven to allow corporations to minimize or transfer their foreign currency exposure. The diminished exposure to foreign currency fluctuations allows more stable and predictable cash-flows, notably in terms of revenue. As a result, firms are then capable of making more comprehensive financial plans, including more reliable estimations on tax, income after tax and dividends payable to shareholders. It is believed that a dividend payout is often of significant appeal to long-term, current or prospective shareholders (Nguyen and Faff, 2002, 2003b; Alster, 2003; Anac and Gozen, 2003; De Roon et al., 2003; and Dinwoodie and Morris, 2003). The three main questions surrounding hedging: when, what and how to hedge are shown in Figure 2.2 below as a decision tree. How to Hedge? Hedge Ratio 10% 50% 100% OR Any Ratio between 0.1%-99.9% What to Hedge? When to Hedge? Financial Tools Forward Futures Options Swap Hedge Under Currency Risk Exposure Non-Financial Tools Leading Lagging Fully participating market movements No Hedge Fig 2.7 Generic Hedging Decision Tree The question to hedge or not to hedge is a complex and controversial one in financial risk management. Natural hedges carry no explicit out of pocket cost and intrinsically form a better offset to economic exposures and so generally are preferred to synthetic hedges. Synthetic hedging can be likened to insurance, where the company incurs an explicit cost to reduce the risk or volatility inherent in its business results. The cost must be weighed against the risk-reducing benefits of the transactions, taking into account their precision and effectiveness. The real drivers of any hedging decision are 1) what is the risk tolerance of the company; and 2) what cost is acceptable for entering into transactions to reduce or eliminate the risk. Foreign currency-denominated activities engaged by Indian Exporters Expected payments of foreign exchange from trade Expected receipts of foreign exchange from trade Liabilities Assets Debt Debt Equity Net trade foreign exchange exposure (before derivates) Net balance sheet foreign exchange exposure (before derivatives) Foreign exchange Derivatives Net foreign exchange exposure (after derivatives) Fig 2.8: Decision to Hedge Foreign Currency Exposures Some managers feel strongly that hedging either should always be done or never done, and their approaches vary tremendously. Indeed, there is an academic perspective that hedging is never appropriate since risks like FX exposure represent diversifiable risks from the shareholder perspective, and thus, the cost is wasted effort for shareholders. Some managers share this view, but most multinational businesses of significant size engage in some financial hedging transactions. Major arguments for and against hedging are displayed in Table 2.2 Table 2.2: Theoretical Arguments on Hedging For Against Managing earnings volatility for FX risk can reduce a firms potential cost of financial distress. PPP and CIP imply compensating levels of FX rates and prices. Firms in financial distress face higher contracting costs with customers, suppliers, and employees. FX rates even out over time. Firms that hedge and reduce their earnings volatility pay less taxes over the long run if tax rates increase the income levels. With transactions costs, hedging is a losing bet on average. Managing FX risk and smoothing earnings volatility has a positive effect on stock price and shareholder value. Shareholders can diversify their own portfolios to compensate for FX risk.

Nathaniel Mackeys Bedouin Hornbook Essay -- Nathaniel Mackey Bedouin

Nathaniel Mackey's Bedouin Hornbook A Bedouin is a nomad and a nomad a wanderer. Nathaniel Mackey seems to wander far and away in his Bedouin Hornbook, a series of fictional letters addressed to an â€Å"Angel of Dust† and signed by the ambiguous â€Å"N.† N. interprets passages of improvisation, analyzing others’ musical expression in surprising detail to the point that his unquestioning sincerity and self-assurance are almost laughable. That N. can glean meaning from music in such a direct and certain manner is problematic because his tone implies that there is only one correct interpretation of music. In addressing the issue of how music conveys meaning, Mackey seems to wander in two disparate directions. After asserting each seemingly contradictory view, first that music and speech are simply ends in themselves and second that they are means to a separate end, Mackey reconciles the question through his motivic discussion of absence and essence. In the first passage, Mackey draws out the nuances of this problem by directing two characters to argue over the meaning of a particular musical piece. He focuses on the style rather than the content of the dispute, suggesting that its value lies in the graceful unfolding of the argument itself. In the subsequent passage, N.’s lecture on â€Å"The Creaking of the Word† uses metaphor in such a way as to highlight the explosive possibility of words and music to transmit meaning. During the first episode, Mackey uses the same style of writing when N. repeats another character’s speech as when he reiterates another’s musical ideas, which confuses the boundary between music and speech. N. uses the same tone when retelling the verbal dispute between Lambert and Aunt Nancy as when interpreting La... ... Bottle’s] lecture/demonstration, as far as Djamilaa was concerned, would take the form of a serenade† (206). Here the forms of music and speech converge as one, signaling a convergence of their parallel roles throughout the novel. That the speech is an â€Å"after-the-fact† version, or a re-interpretation, is evidence of Mackey’s commitment to artistic evolution. The book ends in relative confusion: a phone rings repeatedly with no answer and Djamilaa wistfully dreams of a potentially shared blocked opera (208). Despite lacking a concrete conclusion, by raising and resolving numerous contradictions, the novel offers a complex and layered understanding of how meaning is conveyed through and in art. Mackey shows through words that music may be both a means and an end. Ultimately, Bedouin Hornbook pays homage to the wandering man and his wandering sport, improvisation.

The Benetton Supply Chain

THE BENETTON SUPPLY CHAIN – CASE STUDY Retail operations – main objectives Benetton? s core business is in the manufacturing, production and sale of casual and sportswear, which accounts for 95% of total revenues (Camuffo et al, 2001: 47). The company has a market presence in over 120 countries and has consistently generated revenues exceeding $2 billion throughout this decade (Industry profile, 2007: 15). It has 5,000 retail outlets around the world, the vast majority of which are run by independent managers as part of a franchise arrangement whereby the licensee? of those outlets sell products which carry the Benetton brand name (Skjott-Larsen et al 2007: 94). A key objective of Benetton HQ (based in Treviso, Italy) has always been to retain overall control on every aspect of product sales, thereby ensuring that the Benetton â€Å"total look† is adhered to. The company is renowned for having a distinctive philosophy which is espoused through controversial adver tising techniques (Dapiran 1992:8).Its global network of sales agents each holds responsibility for their own geographic area. They work closely with franchise operators in the sale and distribution of its goods, as well as overseeing all aspects of merchandising (Camuffo et al 2001: 47). A global information system unites every link in the supply chain. Stiff competition has forced Benetton to radically change its retail strategy (Economist: 9 November 2004). To that end it has introduced over 100 „mega-stores? nd, whilst the majority remain under the franchise system, the company has decided to take direct ownership and control of a few as it seeks to form a closer relationship with its clientele; the logic being that this will facilitate a deeper understanding of customer preferences (Camuffo et al 2001:50). One expert has stated that Benetton – a former market leader – is lagging behind its competitors, not through any defects in its supply chain, but more be cause it is â€Å"less good at seeing the opportunity†, inferring that the franchise system is to blame because it creates a barrier between company and customer.Zara, on the other hand, is proving to be far more successful because of it has adopted „agile? supply chain practices (Cane 2007:1). Diversifying into new product ranges such as the sportswear market, as well as an added emphasis on its lifestyle branding is a key pillar of the new approach. Its Fabrica, Killer Loop and Playlife brands are all geared towards capturing a large slice of the youth market (FT: 9 May 2003). As the Managing Director explains, â€Å"we want the market to know that Benetton is about more than just colourful sweaters.It? s a lifestyle concept† (HargraveSilk 2003:1). The Asian markets are vital to Benetton? s future retail operations objectives, recording a 35% profit rise in Russia and 50% rise in India in 2007 (Women? s Wear Daily: 14 November 2007). Although Europe remains Ben etton? s largest market it has recently refocused its attention towards building brand awareness in the emerging markets of Asia, the Middle East and the Far East (Evans 2004:1).One insider sums up the Benetton retail philosophy, when (s)he states that â€Å"we do not want to start with high prices to attract people later on with high discounts, but we want our customers to appreciate every time of the year that there is the right ratio between quality and price† (Evans 2004:1). Physical distribution operation –main objectives The company describes itself as „vertically de-integrated? , meaning that its core functional activities such as design and global strategy are still centralized.Nonetheless it is willing to outsource those activities where it is unable to achieve in-house economies of scale. Its logistics operation has always been directly controlled, in large part owing to the integral part it plays to the companies overall success. Key to effectiveness i s the rapid flow of market intelligence between customer and factory. This is achieved through maximising the benefits of EDI technology which facilitates direct flow of communication between the agent networks representing the 5000 retail outlets.EDI information allows Benetton manufacturers to delay the dyeing process up until a clear understanding is reached on market requirements. This eliminates the build up of wasteful inventories, thereby reducing costs, slashing cycle times and maximising efficiencies. Once this information is relayed to the centre, Benetton is able to arrange bulk delivery of products from its regional distribution centres which are highly automated and thus able to cope with demand.The company describes their strong track record in distribution as being down to its „360 degree vision; in other words a recognition from the outset as to the strategic importance of logistics through integrating suppliers, manufacturers and retailers in a value chain tha t thrived on speed, efficiency and flexibility (Dapiran 1992:9-11). Factory & suppliers – main objectives Benetton? s manufacturing processes are characterised by strong upstream vertical integration which entails significant output at its own production entres (22 in Italy and 10 abroad), as well as outsourcing the more labourintensive tasks such as tailoring and ironing (Camuffo et al 2001:49). The Treviso HQ has overall control over design activities. CAD technology is fully utilised to maximise opportunities for the speedy bringing to market of mass produced garments. This is achieved through the effective usage of 500 subcontractors who work in the vicinity of the companies HQ and production base.The sub-contractor group, often themselves former Benetton managers, organise the second tier of small factories who undertake the labour-intensive processes (Skjott- Larsen et al 2007: 95-96). A pyramid analogy has been used to describe the hierarchical nature of this relations hip, with Benetton at the apex, the sub-contractors forming the second tier and the army of small workshops forming the bottom layer (Harrison 1993: 160) Benetton directly controls the supply of raw materials thereby achieving cost savings in supplier overheads.It has a very close relationship with the subcontractor base, thus ensuring that the factories under their control are able to satisfy market trends at short notice. This is a distinct advantage to their competitors who do not enjoy such flexibility and are hampered with fixedcost overheads (Skjott-Larsen et al 2007:97). Consider the following statistic: in 1990 90% of Benetton garments were produced in Italy. Now it is only 30% and within a few years it is expected to fall to only 10% (Economist: 8 February 2007).Such is the dramatic impact of globalisation. Benetton has responded by remaining true to its philosophy of tight central control by replicating its Treviso production model on a global basis. For instance Benetton Hungary has production oversight of 7 countries within the region (Camuffo et al 2001: 49). This is in keeping with the underlying company philosophy of creating global brands which transcend national boundaries. How well do these three interconnecting sets of operations fit together?For decades Benetton has consistently demonstrated that getting the right mix of the 3 supply chain functions is critical if market success is to be achieved. Its franchise network has proved to be adept at communicating critical market trend information via its EDI system to HQ who alerts the manufacturing side to the real-time needs of the market. Use of sophisticated CAD/ CAM technology has enabled Benetton to gain the upper hand on its competitors by being quick and flexible at this point in the production process (Dapiran 1992:9-10.Benetton has successfully exploited I. T. advantages from an early stage. Its Geis global integrated network has enabled agents to forward customer order details to the 500 sub-contractors based in the Veneto heartland where the company manufacturing capability has historically been located. Within days they are able to receive multiple orders from various country agents and rapidly set in motion the manufacturing work by fully exploiting the vast network of sub-contracted labour.The system is also connected to Benetton manufacturing plants worldwide (Johnston 1994: 2-3). Benetton is famous for using „postponement? tactics at the actual sequencing point of the production process, whereby dying of the garments is not completed until the agent network have provided market intelligence on what particular products are in demand in which locations. Tang points out the advantages of postponement when declaring that it has â€Å"proven to be a costeffective mass customisation tool to handle regular fluctuations under normal circumstances† (Tang 1996: 38).Camuffo has demonstrated that in recent years Benetton has successfully risen to a more c hallenging market environment by opting for a strategy that involved increasing its overall ownership and control of supply chain assets and only outsourcing those areas where the company was not in a position to achieve economies of scale. He points to the paradox of tighter centralized control over the whole supply chain, yet at the same time being able to achieve sufficient flexibility to rise to market challenges (Camuffo et al 2001: 52).There can be no doubt that Benetton prefers quite rigid control over processes, despite the tendency to opt for sub-contracting relationships with suppliers. It remains to be seen whether or not Benetton can sustain its competitive edge, particularly in the emerging markets of Asia, where much of its energy is now focused. The early signs are good, however it has been shown that competitors who are able to display more „agile? working practices can edge out established brands in a very short space of time. Zara is a case in point. SUPPLY C HAIN DIAGRAMHQ, Treviso Agent network EDI system Production hubs (32 worldwide; 22 in Italy) Outsourced factory production Global distribution system Franchise operators Mega stores 5000+ Retail outlets References Camuffo, A. , Romano, P and Vinelli, A (2001) „Back to the future: Benetton transforms its global network? , Sloan Management Review Volume 43(1) Cane, A. , „Agility: flexibility takes over from planning? Financial Times 20 November 2007. Available from http://ft. com [Accessed 15 February 2008 Dapiran, P. , (1992) „Benetton- Global logistics in action?International Journal of Physical Distribution & Logistics Vol. 22, Issue 6 Available from: http://www. boku. ac. at [Accessed 16 February 2008] Evans, D. , „Benetton in Greater China push to build brand awareness? , Media: Asia's Media & Marketing Newspaper, 16 January 2004, Available from Business Source Premier [Accessed 15 February 2008] „Growth in India, Russia spurs Benetton profits? , Wom en’s Wear Daily, 14 November 2007, Vol 194, Issue 104. Available from: Business Source Premier [Accessed: 15 February 2008] Hargrave-Silk, A. „Benetton overhauls HK stores' strategy? , Media: Asia's Media & Marketing Newspaper,9th May 2003, Available from: Business Source Premier [Accessed: 14 February 2008] Harrison, B. , (1993) „The emergence of hierarchy within a district based production network: The United Colors of Benetton? in ‘The Italian industrial districts and the crisis of the cooperative reform: Part II’ European Planning Studies, Vol. 2, Issue 2 Infantswear industry profile: Italy, December 2007. Available from Business Source Premier [Accessed: 16 February 2008] Johnston, M. „Electronic commerce speeds Benetton business dealings Benetton Group SpA's use of General Electric Information Services' valueadded network services? Software Magazine, January 1994, Available from: http://www. //findarticles. com/ [Accessed: 15 February 2008 ] Skjott-Larsen T. , Schary P. B, Mikkola J. H & Kotzab H. , (2007) ‘Managing the Global Supply Chain’ Copenhagen Business School Press. Available online: http://www. google. com/books [Accessed 15 February 2008] Tang, C. S. (1996), „Robust strategies for mitigating supply chain disruptions?International Journal of Logistics: Research & Applications, Vol 9, Number 1 „The other colours? , Economist, 9th November 2004, Vol. 372, Issue 8392 Bibliography Benetton company website (Press release section) Available from: http://www. production. investis. com/ben_en/releases/2006-07-20/ [Accessed 15 February 2008] Kaiser, A. , „Benetton? s abrupt exists: CEO, CFO both depart, shares fall 8. 5 percent? , Women’s Wear Daily, 14 November 2006, Vol 192, Issue 102. Available from: Business Source Premier [Accessed: 15 February 2008] Kouvelis, P. Chambers C. , & Wang, H. , (2006) „Supply chain management research and productions operation management: re view, trends and opportunities? Production and Operations Management, Vol. 15, No. 3 „Material fitness? , Economist, 25 February 2006, Vol. 378, Issue 8466 Slack, N, Chambers, S. and Johnston, R. (2007) Operations Management, London, FT Prentice Hall Thomas, D. ,„Benetton takes lead on RFID? , Computer Weekly, 20th March 2003. Available from Business Source Premier [Accessed: 14 February 2008] END OF PAPER

Psy Analysis

Marla is a 42-year-old Hispanic female who comes to the mental health clinic complaining of having trouble sleeping, feeling â€Å"jumpy all of the time,† and experiencing an inability to concentrate. These symptoms are causing problems for her at work, where she is an accountant. Resources: Appendix A, Fundamentals of Abnormal Psychology, and the Faces of Abnormal Psychology Interactive application at the McGraw Hill Higher Education Web site Write a 1,400- to 1,750-word paper analyzing Marla’s disorder. Address the following:Decide which disorder Marla may have using the information in the Faces of Abnormal Psychology Interactive Application at http://www. mhhe. com/socscience/psychology/faces/#. The profile introduction will match more than one of the disorders found in the application. You must choose one of the disorders and complete the profile. Include the 10 question from the week Four CheckPoint. Summarize the disorder using the information provided in the inte ractive application. Explain the origin of the disorder and any potential treatments by using one of the models of abnormality found in Ch. of Fundamentals of Abnormal Psychology. * * 1. Tell me some basic information about yourself†¦ Name, age,etc Marla, 42 Hispanic female 2. What brings you in to see me? Having trouble sleeping, feeling jumpy, lack of concentration, affecting her accountant job 3. Why do you feel that you need a clinical interview? For the larger part of her life she has been fighting depression, suicide thoughts, 2 attempts of suicide, self mutilation period 4. How do you feel most days? Worthless, low, no energy 5. Is there anything that makes you more happy/sad?Shopping, spending money to make she appear nicer, looks 6. How long have you been experiencing these feelings? Most of her life but in the past couple of years it has gotten worse 7. How is your relationship with your parents? Father knows him but has never been around, molestation, â€Å"she was never his son† had son straightened up but Marla wasn’t worth it Mother a drunk in bed at 7, cheated, and raised her by herself and new husband 8. How often do you go out and socialize? Homebody 9. Have you noticed anything specific that triggers your moods?Anything, everything, stupid people, people in general 10. Is there anything else you feel like sharing with me? My life sucks and my wife says that my moods suck and I go from on top of the world to being underneath it in. 1second After meeting with Marla and doing my initial interview with her, where Marla revealed that she has been clinically diagnosed with depression. Marla has much more mental disorders than just depression. She has lived her life trying to be enough for her dad, mom, everybody else in her life. Marla was never taught love, acceptance.I am diagnosing Marla with Bipolar disorder with ADHD with anger tendencies. Marla has a feeling of jumpiness and lacks concentration, which is affecting her accou nting job. Marla informed me in our interview that she knows her father but he was never really around. He tried to buy her love and gave her a lot of empty promises. Marla’s father use to tell her that she was not his son, that he always wanted a son and that she was not. She had animosity towards her father for straightening his life out once his son was born. This left her with feelings of not being enough for his love.Carrying this feeling her entire love grew to anger as an adult. Her father did not matter anymore but that pain she felt as a child she turned into anger. Marla’s mother raised her but she was a drunk. Her mother married a new husband, showed Marla how to cheat on this man. When that marriage failed lived with another who made fun of Marla for being a lesbian. Her mother cheated on him with who would become her husband now. Marla has periods of mania more often than she is happy. Marla went through more serious and long periods of mania where she wen t through self mutilation phases.During these times Marla has attempted suicide many times, two times she was hospitalized. When Marla is feeling low, she has realized that she likes to shop to make her appearance appear pricier. I came to my diagnoses of Bipolar with ADHD with severe anger tendencies due to the following facts. ADHD’s symptoms include difficulty staying focused and paying attention, difficulty controlling behavior, and hyperactivity (over-activity). Bipolar Disorder is a condition in which people go back and forth between periods of a very good or irritable mood and  depression.The â€Å"mood swings† between mania and depression can be very quick. Bipolar individuals go from manic to mania in a split second or in some cases over lap each other. The manic phase may last from days to months. It can include the following symptoms: * Easily distracted * Little need for sleep * Poor judgment * Poor temper control * Reckless behavior and lack of self cont rol * Binge eating, drinking, and/or drug use * Poor judgment * Sex with many partners (promiscuity) * Spending sprees * Very elevated mood * Excess activity (hyperactivity) * Increased energy * Racing thoughts Talking a lot * Very high self-esteem (false beliefs about self or abilities) * Very involved in activities * Very upset (agitated or irritated) These symptoms of mania occur with bipolar disorder I. In people with bipolar disorder II, the symptoms of mania are similar but less intense. The depressed phase of both types of bipolar disorder includes the following symptoms: * Daily low mood or sadness * Difficulty concentrating, remembering, or making decisions * Eating problems * Loss of appetite and weight loss * Overeating and weight gain * Fatigue or lack of energy Feeling worthless, hopeless, or guilty * Loss of pleasure in activities once enjoyed * Loss of self-esteem * Thoughts of death and suicide * Trouble getting to sleep or sleeping too much * Pulling away from frien ds or activities that were once enjoyed There is a high risk of  suicide  with bipolar disorder. Patients may abuse alcohol or other substances, which can make the symptoms and suicide risk worse. Sometimes the two phases overlap. Manic and depressive symptoms may occur together or quickly one after the other in what is called a mixed state. (http://www. ncbi. nlm. nih. ov/pubmedhealth/PMH0001924/) Some individuals may be diagnosed with both ADHD and bipolar disorder. Unfortunately, some are misdiagnosed because the symptoms of the two disorders can overlap or look similar. In mania, individuals may appear distracted, always moving and restless, which may look similar to symptoms of hyperactivity. Also, individuals with ADHD may demonstrate some mood symptoms, but not to the extreme necessary for a diagnosis of bipolar disorder. It is important to ensure that an individual meets the criteria for both of the disorders, rather than just demonstrating symptoms that could be constru ed as both. http://www. livestrong. com/article/252912-adhd-bipolar-disorder-in-adults/). The treatments for these disorders are medications such as, Adderall, and or Vyvance, there are also non stimulant medications such as Strattera. With the stimulation medications most individuals are put on a sleeping agent to bring them down such as Clonodine. Medications for Bipolar can include Abilify, and or Cymbalta. Most Bipolar individuals take an anxiety agent as well. Individuals such as Marla may be prescribed Adderall, Clonodine, Abilify, and Depokote.The disorder ADHD originated in 1902, there is the first documented disorder relating to impulsiveness. This was in Britain, and the doctor who diagnosed the impulsive disorder was named Dr. Still. He called this disorder â€Å"Defect of Moral Control† and he believed that the diagnosed individual had a medical disorder beyond their control. (http://ezinearticles. com/? History-of-ADHD&id=217254). Bipolar disorder is perhaps one of the oldest known illnesses. Research reveals some mention of the symptoms in early medical records. It was first noticed as far back as the second century.Aretaeus of Cappadocia (a city in ancient Turkey) first recognized some symptoms of mania and depression, and felt they could be linked to each other. His findings went unnoticed and unsubstantiated until 1650, when a scientist named Richard Burton wrote a book, The Anatomy of Melancholia, which focused specifically on depression. His findings are still used today by many in the mental health field, and he is credited with being the father of depression as a mental illness. (http://www. caregiver. com/channels/bipolar/articles/brief_history. htm).