Risk Management and Investment Essay Example | Topics and Well Written Essays - 3750 words - 1

Risk Management and Investment - Essay Example From the report, it is evident that the performance of the firm is better than the performance of other investment funds. Additionally, various risks come along the portfolios. Consequently, the recommendations reside on the basis that adding, modifying, and excluding some of the investment funds in the portfolio with improve the performance of portfolio. The investment portfolio is aimed at maximizing income located in the United Kingdom. The investment fund comprises of Greggs Plc., Tate & Lyle, Domino Printing Services, JD Sports Fashion PLC, Bellway PLC, William Hill PLC, Beazley PLC, RPC, Group PLC, Huntsworth Plc, CSR Plc., and cash worth 5 million pounds. From the stock 10 of them are securities and only one is 5 million pounds on deposit, which will earn, one per cent since the date inception (Markon 2010). The investment fund is a type of income whose main purpose is to maximize return with very low risk. Therefore, the investment fund needs to invest in securities having stable income like fixed income securities, blue chips, and deposit receipts. Although the growth of the securities is not stable, they are not exposed to various risks. The report discusses the past performance of the investment fund. Thereafter, the paper analyses the risk of the investment fund, which may hinder the fund from achieving income maximization (Fama 1970). Finally, the paper outline crucial and helpful recommendation for the investment portfolio to make sure that the aim of the fund is satisfied. Before the third section, it is assumed that the date of inception is 1st January 2012 and cut off date is 3rd Februrary. Secondly, the paper ignores the changes effect, inflation rate, trade cost, and commission, which the factors will be nil. Thereafter, the return of the investment fund will be lower that the return of the investment fund. Consequently, the inter-bank lending rate of one year represents FTSE

Investing Money towards Retirement Essay Example | Topics and Well Written Essays - 1250 words

Investing Money towards Retirement - Essay Example In the United States traditionally parents assume the cost of putting their kids through college. Financing the college education of two kids can become a very expensive ordeal. Like most working adults Sam is struggling to get by, but he realizes he has to start saving towards these two goals or he won’t have enough time left to accomplish his goals. Sam’s master plan entails saving $150 a month for the foreseeable future in order to put his two kids through college and to be able to retire at the age of 60. His two kids are age 3 and 8 years old. Assuming his two kids will start college at the age of 18 like most teenagers Sam will have to start spending money on college tuition 10 years from now. Sam’s plan of saving 150 a month implies he will save $1,800 a year. Assuming he leaves the money in the bank and makes 1% rate on his saving Sam will have 10 years from now $18,919.25. This amount of money is not sufficient to put his elder kid through four years of college. Sam needs to make adjustments to his plan. The simplest way to adjust his plan is by making better investment options that will allow Sam to make a higher return on his investment. Depending on the banking industry for long-range savings is not a wise move due to the extremely low-interest-rate that this industry offers. Typically interest earns on a banking account is not sufficient enough to offset inflation. Mr. Johnson has to start an investment plan that is aligned with his long-term financial goals. Investing money is not a rocket science, but it requires a person to get educated on financial tools such as stocks, bonds, and mutual funds. Common stocks are one of the simplest types of investment options. A common stock is the transfer of a piece of ownership in a company in exchange for cash.  

Euro Crisis Essay Example for Free

Euro Crisis Essay The ability of Euro zone countries (countries in Europe that use the common currency called the Euro) to borrow in a common currency poses free-rider problems because there may be an incentive to bailout countries that borrow excessively. How does the original design of the Euro attempt to address this incentive to over-borrow by some countries? The free rider problem refers to when someone is capturing the full benefit of an action while shifting the cost to others. The free-rider problem built into the euro lies into the fiscal structure, since the countries were fiscally undisciplined and also governments were gaining political gain running deficits supported by their euro partner nations. Over borrowing occurred due to the incentive of governments to borrow in a common currency; to address this issue the original design had to solutions. One was the Stability and Growth Pact (SGP) which limited budget deficit to up to 3% of GDP and 60% of stock of public debt, aiming to ensure fiscal discipline; where if a member state was in an excessive deficit situation then the council could impose sanctions. The Second rule is a â€Å"no bailout† clause stating that community shall not be liable for the debt of governments (with some exceptions) The original design of the euro sought to address the over-borrowing. Why were the measures in the original Euro design insufficient in preventing the Euro sovereign debt problems? First it is important to point out that the sovereign debt crisis is significantly tied to the banking crisis and macroeconomic crisis through the entire euro area. The original measure was insufficient because in a way these measures actually worsen the crisis. The sovereign debt crisis can be divided in three phases: pre-crisis period, the financial and sovereign debt crisis and post-crisis recovery. The initial design affected the pre-crisis since in reality it increased fiscal risk due to the increased in the current account imbalances across the euro area and also the dispersion in credit boom, housing prices and sectorial debt levels. Then, during the crisis 2007-2008 the original design actually augmented the fiscal impact since the global financial shock had diverse impacts across the euro area and policies were focus on European Central Bank to address the financial shock, not accounting these policies prompted a worse euro sovereign debt crisis (Especially countries with macro-imbalances). Thirdly, the original measures slowed down the post-crisis recovery period because the stated estrictions of deficit and debt made the recovery stretched, along with the poor political management of countries’ institutions to solve factors involving the crisis. What are the new reforms to address sovereign debt concerns? What makes the new measures superior to the original ones? The new reforms to address the sovereign debt is compounded on a treaty called â€Å" Fiscal Compact Treaty† which requires new fiscal principles to be pose in each country (Jan 2013). These fiscal reforms are based on two principles: a void high public debt since it’s a threat to fiscal stability. Second, the fiscal balance has to be close to zero. The improvement is a structural budget balance less than 1% of GDP when debt is below 60%. Also the country that has higher public debt (off the limit) will have to correct the issue with a timeline. Though this reform is a little more efficient than the original, it still has major implementation problems since it requires adjustments on forecast errors for the structural budget balance. Also it’s difficult to accurately trust the ability of governments to identify and tackle down excessive imbalances.

Characteristics of Real Time System

Characteristics of Real Time System ABSTRACT Scheduling refers to the set of policies and mechanism to control the order of work to be performed by a computer system. process scheduling in real time system has almost used many more algorithms like FIFO, Round ROBIN ,Uniprocessor Multiprocessor etc. The choices for these algorithms are simplicity and speed in the operating system but the cost to the system in the form of reliability and maintainability have not been assessed. In this paper we describe the distinguish characteristics of real time system which can be expressed as a function of time. This paper is also described in the form of a time driven model for a real time operating system and also provide a tool for measuring the effectiveness of a real time |system . For this model ,we have generated a real time system in which we measure a number of well known scheduling algorithms. To meet the real time constraints for scheduling the task different algorithms were used. Most of the real time system are designed using prio ty based preemptive scheduling and worst case execution time. INTRODUCTION In computer science ,scheduling is the procedure by which threads, process or given the access to system resources. The scheduling is mainly concerned with these things throughout: Total number of processes that complete their execution per unit time. Response time: when a request was submitted what amount of time takes when first response produced. Turnaround time: total time between completion and submission of process. Fairness: equal time to each process. In real time operating systems like embedded system the scheduler also perform that the process can meet deadline that is necessary for stabling the system. Schedular are sent to mobile devices and managed by an administrative back end. A common characteristic of many real-time systems isthat their requirements specification includes timing information in the form of deadlines. An acute deadline is represented in Figure 1. The timetaken to complete an event is mapped against the valuethisevent has to the system. Here value is loosely defined tomean thecontributionthisevent has to the systems objectives. With the computational event represented in Figure 1 this value is zero before the start time and returns to zero once the deadline is passed. The mapping of time to value between start-time and deadline is application dependent. Scheduling In a general purpose computer system a scheduler is considered good if it is fair and gives execution time to all tasks equally. When scheduling a real-time system what is most important is that all tasks meet their deadlines and are executed so that any task depending on them, meet their deadlines as well. Types of scheduling Network scheduling DISK Scheduling job scheduling Manual scheduling Multilevel queue scheduling First in first out Process scheduling Process scheduling is divided into four main types 1 long term scheduling which determines which programs are admitted to the system for execution and when, and which ones should be exited. Concept of scheduling in real time system 2 medium scheduling: Which determines when processes are to be a suspended and remain. 3 short term scheduling ordispatcher which determine which process have cpu resources and for how long. Process scheduling in computer operating system is instance of extensively studied problem from operation research which in form of producing a sequence of jobs which must a common resource. all decisions should be made dynamically for example all jobs have to be scheduled and processing time requirements are available at the start of sequence time =0 the new job will not come during processing. if it happens the priviouly computed job is invalidated and scheduling must be started overif is maintained. Now process scheduling in real time system can categorized into two categories: 1 periodic 2 aperiodic Periodic processes: which arrive at regular intervals are called periodic process and aperiodic are those which arrive at irregular. the main difference between real time systems and other computer system have not understood. the time to complete a process is important in all computer systems but in real time response time play a cruicial part in the correctness of the application software Real-time systems are divided into two classes: Hard real -time systems and soft real -time systems. Hard real-time systems are those whose deadlines must absolutely be met and system will be considered to have failed whereas soft real-time systems allow for some more deadlines, at least occasionally, to be missed with only adegradation performance but not a complete failure of the system. In judge a number of existing real time systems we study the DMA cycling ,interrupt processing blocking ang non-blocking. The deadline scheduler gives no reasonable control over the choice of which deadlines are delayed and which lead to unperictable failures result to the impact on reliability and maintainability of the real time system. real process completion is handled by step function in which there is no any value in completing the process after its deadline the characteristic of a real-time system is that correctness is determined not only by what is done, but when itis done, we propose to use a representation of a process completion value to measure the algorithms in real time system. Computational model consists a set of processes every process has a request time R ,Time interval c and avalue function R. Its value function become zero or negative. the value function may be negative at R,not rise above zero the request time R may be future time or past time . if request time r is future time then process is not scheduable but attributes in computations asre load in which current scheduling decisions are made classical algorithms are. Deadline:The earlist critical time in process at each decision point FIFO:The longest request set is executed in process at decision point Random:chosen from the request set and executed stack:the process with the smallest stack time is executed in each decision point SPT:The shortest completion time is executed in each decision point. There are many approaches for utilizing a time driven model in real time system. real time operating system support or modify the value for the process or the set of processes during run time. In this way application designr can set and modify scheduling policy for various systems. For describing these processes we assume primtives to creat and kill processes already exist. There are three real time interfaces Time control primitive: The arguments of these operating systems communicate the information needed to implement the model but the issue is the structure of informative that passed to the operating system. In single primitive each parameter would be flexible but in user might set inconsistent parametres. Scheduling policies: In real time operating system it is compulsory to provide a mechanism to express the scheduling model to implentour model. the system should also able to modify these policies to take advantage or flexibility of the system. Periodic policies: There is one way to describe a periodic policies to using optional arguments in a creative process. The creative Process make new instance of process at a specific node 5 ways for scheduling the task in real time systems. Real time system and scheduling techniques Real time scheduling techniques are divided into two main categories. One is called static scheduling techniqueAnd other is called dynamic scheduling technique. Dynamic may be static perioty or dynamic perioty. Static prioty is divided into two types 1 rate monolithic : rate-monotonic scheduling is a scheduling algorithm used in real- time operating systems with a static-priority scheduling class. [2] The static priorities are assigned on the basis of the cycle duration of the job: the shorter the cycle duration is, the higher is the jobs priority. These operating systems are generally preemptive and have deterministic guarantees with regard to response times. Rate monotonic analysis is used in conjunction with those systems to provide scheduling guarantees for a particular application. 2 deadline monolithic : Dynamic prioty is also divided into two types 1)earlist time first 2)least stack time first System and the task model Each type and unit of work that is scheduled and execute the system as a job. ALL the tasks are taken to be periodic. the system knows all the things about arrival time ,periodexecution time. the task are ready to execute if it arrives the system. IN soft real time system each task has a real positive value. The main goal of the task is to obtain a value as much as possible There are the two conditions if the task succeed the system acquire that value if the task is not succeed the ystem gain less value in a special case like soft real systems the task has nothing a vale Basic requirements of schedulars in real time operating system There are five basic requirements of scheduler in real time operating system Multitasking and preemptable In real time operating applications real time operating system should be multitask and preemtable. the scheduler are able to preempt any kind of task in the system and give the resources to task that the system needs it Dynamic deadline identification With the earlist deadline RTOS should be able to identify the task. deadline information may be converted to prioty levels for resource allocation predictable synchronization To communicate multiple threads among themselves in a timely fashionsynchronization mechanism also reqired and also the abiliy to lock or unlock is the resource to achieve dta integrity. Sufficient perioty levels The real time operating systems must also have a sufficient number of priority levels for effective implementation. Namelypurety,inheritance,ceiling protocol need sufficient prioty levels predefined latencies the timing of system call define the following specifications Task awitching latency :time to save the context of a current execution time and switch to another Interrupt latency:the time elaped between first instruction of the handler and execution time of the last instruction of the interrupt task Dynamic scheduling algorithm: Dynamic algorithm at runtime assign perioties based on the execution parametres of tasks the most important dynamic scheduling with puriotysscheduling algorithms are 1 EArlist deadline first algorithm The perioty of each task based on the value of itsdeadlinethe algorithm is simple and preemptive. 2 ACO Based scheduling algorithms. The ACO algorithms are computational models for the collective foraging behavior of ants . Ant is an agent that generate a path. ANT do not need synchronization. ant moves to the good looking neighbor for the crrent node probabaisatically Time Triggered When scheduling a distributed system using offline scheduling the whole system including the communication is scheduled before the start of the system giving a very rbust system but the cost of adding a new node is high, complete rescheduling of the whole system. To schedule a time-triggered distributed real-time system we use the same techniques as we did with the single processor system, but understandably with more complex graphs. For example we might have a precedence graph, where one task is preceded by several tasks on different nodes. Making a schedule that have a task precede by tasks on several nodes requires more of the system then of the schedule, even the best schedule will fail if the nodes time references is not synchronized and tasks are not executed in time. This requires all nodes to synchronize time with each other. This can be done at an application level like in normal distributed systems, with a common time reference with a communication protocol that handles tim e synchronization TTCAN, TTP and FlexRay to namea few. SUMMARY AND CONCLUSIONS We have looked at the most commonly used scheduling techniques and communication protocols used in distributed realtimesystems. When we started this paper we where looking at doing a survey of everything related to distributed real-time systems,but found that to be a to vast and growing field so we narrowed our field to communication protocols and scheduling algorithms used in distributed real-time systems. During our research for this paper we have been looking atschedulers that are created to work better with the FlexRaycommunications bus or in a similar fashion. We have taken a real interest in distributed real-time systems and are looking forward to seeing the advances in scheduling and communication for distributed real-time systems and maybe one day join the research field our selves. With this paper we hoped to introduce the reader to the problem of scheduling real-time tasks in distributed systems. We presented the different interpretations of the problem and the various opti ons available to the solution designers. Our analysis of some of the existing scheduling algorithms tried to focus on the affect of the specific problem on the choices made in the solution. We hope that what we presented provides the reader with a broad understanding of the problem and a range available solutions. This paper was also aimed at providing the reader with a solid foundation for further research on the subject. Finally, we suggested possible future research directions. References 1 ^ Liu, C. L. ; Layland, J. (1973), Scheduling algorithms for multiprogramming in a hard real-time environment, Journal of the ACM 20 (1): 46–61, doi:10. 1145/321738. 321743. 1. N. Audsley, Survey: Scheduling Hard Real-Time Systems, Department of Computer Science, University of York (1990). 2. O. Babaoglu, K. Marzullo and F. B. Schneider, „„Priority Inversion and its Prevention in Real-Time Systems, PDCS Report No. 17, Dipartimento di Matematica, Universita di Bologna (1990). 3. J A. Bannister and K. S. Trivedi, „„Task Allocation in FaultTolerant Distributed Systems, ActaInformatica 20, pp. 261-281 (1983). 4. S. H. Bokhari and H. Shahid, „„A Shortest Tree Algorithm for Optimal Assignment Across Space and Time in a Distributed Processor System, IEEE Transactions on Software Engineering SE-7(6), pp. 583-589 (1981). 5. A. Burns, Concurrent Programming in Ada, Ada Companion Series, Cambridge University Press,Cambridge (1985). 6. A. Burns, Programming in occam 2, Addison Wesley, Wokingham (1988). with time triggered communication. In Proceedings of ICC 2000, Amsterdam, 2000. [1] M. Behnam. Hierarchical real-time scheduling and synchronization. School of Innovation, Design and Engineering, M †alardalen University, 2008. [2] M. Dertouzos. Control robotics: The procedural control of physical processes. Information Processing, 74:807–813, 1974. [3] R. Dobrin and G. Fohler. Implementing off-line message scheduling on controller area network (can). In Proceedings of the 8th IEEE International Conference on Emerging Technologies and Factory Automation, 2001. [4] D. Dolev and M. Warmuth. Scheduling precedence graphs of bounded height. J. Algorithms, 5(1):48–59, 1984. [5] W. Elmenreich and R. Ipp. Introduction to ttp/c and ttp/a. In Proceedings of the Workshop on Time-Triggered and Real-Time Communication, Manno, Switzerland, Dec. 2003. [6] F. Hartwich and et al. Can network [Ati98] Y. Atif and B. Hamidzadeh, â€Å"A Scalable Scheduling Algorithm for Real-Time Distributed Systems,† Proceedings of the 18th International Conference on Distributed Computing Systems, May 26-29 1998, pp. 352-359. [Dar94] S. Darbha and D. P. Agrawal, â€Å"SDBS: A Task Duplication Based Optimal Scheduling Algorithm,† Proceedings of the Scalable High Performance Computing Conference, May 23-25 1994, pp. 756-763. [Dar96] S. Darbha and D. P. Agrawal, â€Å"Scalable Scheduling Algorithm for Distributed Memory Machines,† Proceedings of the 8th IEEE Symposium on Parallel and Distributed Processing, October 23-26 1996, pp. 84-91. [Khe97] A. Khemka and R. K. Shyamasundar, â€Å"An Optimal Multiprocessor Real-Time Scheduling Algorithm,† Journal of Parallel and Distributed Computing, vol. 43, 1997, pp. 37-45.   

Norman Schwarzkopf :: essays research papers

Norman Schwarzkopf Norman Schwarzkopf and I are alike in many ways. He and I both have family in Germany. His father lives in Germany and my great grandparents live in Germany. He served in Vietnam and so did my grandfather. Norman and I also have many differences. His family has a popular military background and my family does not. He lived his whole life through the military and I am not going to do that. Norman also followed in his father’s footsteps that I am also not going to do. Now you see how many ways Norman and I are alike and different. Norman has accomplished many tasks in his lifetime, which I have not gotten a chance to yet. Norman Schwarzkopf got an education at West Point Military School and at Valley Forge Military Academy in Valley Forge, Pennsylvania. Valley Forge is a historic place known for its forces in the American Revolution. Almost all of Norman's family joined the military. His dad was in the military all of his life just as Norman was. The Schwarzkopfs are very well known in the military. Norman Schwarzkopf made many life choices in his military career. First, he chose to join the military following his father’s footsteps. Second, he chose to go to Valley Forge because the school he was attending, West Point, only taught students up to the tenth grade. One of his most important choices was in Vietnam. One of his fellow soldiers was shot and he carried him to safety when Norman already had four gun shot wounds in him. He was awarded three silver stars and controlled the air, ground, and water forces. I think anyone interested in joining the military, is currently in the military, or is just interested in these kinds of books, should read this biography by Libby Hughes. Others should think that Norman is a hero and that he should be widely known.

New Products :: essays research papers

Chapter 1 Intuition has no place in the scientific process of new product- False Major obstacle of innovation is fear of change and certainty it brings- True Strategy and the identification is the first stage- True Basic task of a business is consumer satisfaction / profit Newness of a product is determined by consumer Product includes: All of the above Short Answer: 1)  Ã‚  Ã‚  Ã‚  Ã‚  What is a new product and who decides if a product is new? a.Good or service that is perceived b the target market as different and better than others- the consumer decides if the product is new. When the product has sold enough, made enough profit, established a strong toehold in a new market, and effectively thwarted a particular competitor. Chapter 2 New product development process ends at the evaluation process- True Best ideation comes from identifying problems for business and consumers - True Comprehensive business analysis emphasizes profitability- True Benchmarking as guidelines – True Every new product starts out as a concept The development phase is concerned with all of the above Important consideration with product development must be the consumer 1)  Ã‚  Ã‚  Ã‚  Ã‚  Why must the marketing department’s new product efforts be supported by the firm’s corporate strategy? a.  Ã‚  Ã‚  Ã‚  Ã‚  Make sure the product fits the company’s mission- make sure they are going in the same direction Chapter 3 Platform concept cannot be used successfully with services or brands- False PIC - allows delegation, permits financing, and calls for personal assignments- True Core compacies serve as a logical starting point- True Technology is the single most important factor in new product development- False Goals are long term targets, objectives are short term – True The PIC should flow from and be consistent with mission statement McDonalds uses golden arches in order to add tangibility PIC utilizes all the following except employment policies Which of the following categories would a firm want to dominant its portfolio- pearls 1)  Ã‚  Ã‚  Ã‚  Ã‚  What’s the purpose and value of product platform planning? Chapter 4 Common thread in providing a unique safe environment where criticism is not allowed- T New product only comes into being when it’s successful- True Technology is always a starting point for new product- False An inventor tends to be all of the above New product is born when successful in the market place Marketing perspective, new product development efforts should be begin- benefit Useful development in user orientated ideation involves identifying lead users 1)  Ã‚  Ã‚  Ã‚  Ã‚  Who are lead users and why are they important? a.  Ã‚  Ã‚  Ã‚  Ã‚  Out in front, trendsetters- at the leading edge of the trend, have the best understanding of the problems faced, and expect to gain significantly from solutions to those problems.

China a Development Miracle

Abstract This paper focuses on the development of China’s Economy. It discusses the transformations that China experienced to move forward and become the world’s fastest growing economy. China’s development occurred mainly because they began to focus on manufacturing and exporting. Growth also occurred due to borrowing technology and the skilled and cheap labor force. INTRODUCTION A Development Miracle China China, officially know as The Peoples Republic of China, is the world’s most populous country with a population of over 1. billion people. The capital of China is Beijing and the president is Hua Jinato. China currently has the world’s fastest developing economy, and it is estimated that from 1978 to 2008 China has grown at a constant rate of approximately 9% a year. In the year 2008, GDP per capita was five times the amount than it was in the year 1978. The People’s Republic of China is also responsible for the most dramatic reduction in poverty, from 53% in the year 1981 to 8% in 2001; about 400 million fewer people are living in extreme poverty(TODARO 2012).This growth miracle has occurred due to the transformation into a market-oriented economy and also as a result of improving their technology. BODY There have been many speculations as to how China has developed at such a rapid rate and also many conclusions. The case of China is one that is very interesting as there is no particular school of thought or specific development policy that is responsible for rapid growth but rather a combination.China is a very good example of how policies that implement trade, markets and globalization are highly beneficial as manufactured exports are China’s primary area of focus. Since the 1980’s when china began its transformation into a market-oriented economy it was a very poor country with a per capita income of US $182 and a trade dependence ratio of 11. 2 %; since then China has mad a dramatic transformation . China now has a per capita GDP of US $3,688 and in the year 2009 China became the world’s second largest economy and also the world’s largest exporter of merchandise (LIN 008). Prior to the 1980’s China’s economy was very traditional; only after the liberalization reforms and cultural counter- revolution in the late 1970’s under Deng Xiaoping we begin to see improvement in China’s economy. Rapid growth began in 1980 due to rural township and village enterprises, which had quasi- cooperative and quasi- municipally, owned character. China’s ability to reform its economy very rapidly to become more efficient has also been one of the key factors responsible for rapid growth.As the industrial revolution began, the catalyst occurred that transformed China from an agrarian society where over 80% of its labor force worked in traditional agriculture, into a society that focused on nonagricultural sectors and manufacturing (LIN 2010). Investo rs were first attracted to China as they had cheap labor, with high skills and good work habits for its low-income level. In the beginning the manufacturing sector was mainly labor-intensive but later with the introduction of advanced technology it became more capital- intensive.Since the 1980’s the service sector has dominated and this structural change has been constant. The manufacturing industry is what transformed China, due to external investors. The more producers located in China the greater the benefits for an increasing number of suppliers. Another advantage that China had over other developing nations was the ability to borrow technology. China did not have to invent technology or industries; they simply had to be innovators. The state was able to borrow technology, industries and institutions at low risks and costs from more advanced countries.Due to globalization and technological advance, there were more market incentives. These market incentives increased trade and GDP. Industrial policies that were implemented helped to ensure that exports of increasingly higher skill and technology content. Accompanying this change in the industrial structure was an increase in the scale of production, the required capital and skill, the market scope, and also the risks (LIN 2008). To be efficient the Chinese had to effectively use technology and labor to reduce the transaction costs.Some economist claim that the Chinese quasi-capitalism economic model is much more effective than that of the American Laissez- faire model, due to China’s extraordinary growth. However, a major source of China’s growth comes from an influx of capital and the mobilization of labor (THE ECONOMIST, 2009). As more capital, labor and technology is being added to any economy, there is sure to be growth. China’s economy continues to experience tremendous growth as a result of global consumers and also the worldwide demand for products.CONCLUSION An important question always asked is if whether of not other developing countries can follow China’s footsteps and experience massive growth. Each developing country differs from others but as long as they are capable of borrowing technology from more advanced countries, they will be able to advance their industries and experience growth. As long as resources such as capital, labor and technology are used effectively growth is sure to occur. There are many claims as to why China has seen massive economic growth and development.The main reason for China’s growth is due to its shift from a country focused on agriculture to one that is export-oriented and focused on manufacturing. Another important factor that assisted was the ability to borrow technology from other countries also helped to spark the industrial revolution, which lead to the transformation. China also developed as they had a skilled labor force with very good work habits for its low-income level. What occurred in Chin a is nothing short of a miracle however, as long as the proper policies are implemented at the right time, economic growth and development are sure to occur.References Todaro , P. & Smith, C. (2012). Economic Development. Eleventh Edition. Pearson enterprises. New York, city. Lin, J. (2010). China’s Mircale. Retrieved from: http://blogs. worldbank. org/africacan/china Lin, J. (2008). China’s Miracle Demystified. http://siteresources. worldbank. org/DEC/Resources/ChinaMiracleDemystified-Shanghai. pdf The Economist (2009). China’s Growth Miracle. Retrieved from: http://www. economist. com/blogs/freeexchange/2009/05/chinese_growth_miracle Centre for Policy and Development Systems (2012). China’s Growth: Assessing the Implications.