Analysis of Saudi Arabias Restaurant Industry

Analysis of Saudi Arabias Restaurant Industry Introduction: In this paper we will discuss the restaurant Industry in Saudi Arabia which is growing faster than anywhere else in the region; it is growing at a pace that is exceeding its infrastructure wwith different range of prices and classes, starting form as low as $1.00 USD and going up to $75.00 USD if youre into fancy restaurants  [1]  . The restaurant industry is very divers and large including: cafes/bars, full-service restaurants, fast food, home delivery and street stalls, all types of restaurants have a wide range of food specialization from ethnic, international, and local. There are also three main types of investors: independent owners, international franchise, and local restaurant chains. A restaurant chain is a set of related restaurants, typically with the same name in many different locations either under shared corporate ownership e.g. Al-Baik and Herfy. Typically, the restaurants within a chain are built to a standard format and offer a standard menu. A franchise is a right granted to an individual or group to market a companys goods or services within a certain territory or location. Some examples of todays popular franchises in Saudi Arabia are McDonalds, Subway, and Dominos Pizza. In order to analyze the attractiveness of the restaurant Industry in Saudi Arabia we will employ three different analytical tools, Porter five forces, assessment of the macro market environment known as (PESTLE Analysis), and SWOT analysis. Based on our analysis we will offer an advice to any new firm considering entering the restaurant industry in Saudi Arabia. PESTLE Analysis The effect of the Saudi politics on the restaurant industry Saudi Arabia is ruled by the family of Al Saud who since the establishment of their kingdom declared that it is ruled by the Islamic law. The Al Saud family also affirmed that they are committed to supporting the economic growth and be part of the developed nations. This goal is very challenging to achieve because fundamentalist Muslims refuse the idea of globalization, this lay a moderate political risk on the regime. On the other hand, this political situation affects the restaurant industry positively because the restaurant industry remains the major uncontested method of entertainment among Saudis. Particularly, by law, all restaurants are required to have single-males section separated from the family section to adhere to the tradition and religious requirements. Moreover, The Kingdom of Saudi Arabia is perceived as the leader of the Muslim world, because it is the home town of Makah; which Muslims from all over the world must visit at least once in their life time to complete the fifth pillar of their religion. This makes Saudi Arabia suffers from a tension in its international relationships mainly after the event of 911 because some of the western countries are holding the kingdom partially responsible for 9/11. This political situation is one of the main strength of the restaurant industry in Saudi; with no cinemas or night clubs, eating out becomes the main source of entertainment for most of the population. There is an appetite for new restaurants that exceeds any other region in the world  [2]  . The effect of the Saudi law and Regulation on the restaurant industry The recent ruler of the Saudi Arabia, king Abdullah, is respected internally and internationally for his efforts to fight terrorism and his large amount of public spending on reform plans have helped the country to overcome  [3]  most of its economic obstacles. The kingdoms major step toward reform was the application for membership of the World Trade Organization (WTO) and making consistent legal changes to meet with its requirements, but still there is mistrust from the Privet sectors toward the government, because of the unnecessary bureaucratic practices and inappropriate regulations that are seen as burdensome for the competitive market. Some areas are over regulated while others are under regulated. It takes almost six months to register a company, and the company must give a proof that it has substantial sum of money to invest, not less than $10,000. However, the regulatory changes made in recent years appear to have been of most beneficiaries to those Saudi companies which are seeking to expand through alliances with foreign investors  [4]  . Nevertheless, the law requires foreign investors to have a Saudi partner and the Saudi partner, individual or company, will have the majority of control over the business. Over all, the legal process is very complex and financially risky whether you are opening a small business or a major enterprise. The government should amend these processes to encourage foreign investments. The effects of Saudi economic on the restaurant industry The Kingdom is experiencing accelerated growth due to recent oil price spikes. The positive effect has been a rise in per capita GDP from approximately $8100 (1999) to $9575, or 18%, by 2005. Combine this with the fact that the Kingdom has one of the worlds fastest growing populations (3.5% per year) and you are faced with an expanding market with good disposable income levels. AC Nielsen research reports that the Saudi economy is expected to grow 8.7% this year, mainly fuelled by the high oil prices as well as strong private sector growth  [5]  Saudi remains the largest market in the entire Gulf. Many view Dubai as the showcase but Saudi proves to be the sales room and cash generator. Due to fact that Saudi Arabia is a third world country, it depends on imported goods and technology, the government commitments to the economic expansion creates job opportunities for professional trained foreigners and depend on them to fulfill the countrys ambitious development strategies. According to HSBC Bank Saudi Arabia is classified as the second in the wealth of professional trained foreigners. Saudi Arabia is ranked twenty two among other countries in the tourism sector. Moreover, Saudi Arabia hosts over five million pilgrims yearly from all over the world coming for Hajj and Ummrah. Hajj is one of the five pillars of Islam which all Muslims must perform at least once in their life time. The restaurant industry is one of the major Beneficiaries from such advantage. Therefore, the government has been actively considering to expand what is believed to be billions of dollars worth of income in the tourism sector by attracting international tourists to the Kingdoms historic sites, in the mid-2008, a package of new relaxed visa rules were released allowing many groups from Europe to visit the Kingdom with a group tourist visa, which years before was unheard of. This policy has created a new segment for the Saudi restaurant industry. Also, the large number of foreigners, coming as workers or as tourist and pilgrims, with their ethnic background are considered the back bone for the restaurant industry. The effect the social characteristics on the restaurant industry Tradition and religion encourage Muslims to be hospitable and sociable. Inviting guests and friends to banquet in their home is the norm in Saudi Arabia. In Saudi Arabia Segregation between opposite gender exist in most sectors of public eservices, schools, universities, banks, this segregation unlocked job opportunities for large number of Saudi females. In the last few years it became easier to entertain guests and family to a restaurant for the busy working females or even have the restaurant food and staff to entertain them at home. Dining out became a habit among all social classes in the Kingdom with the lack of other entertainment venues due to religious issues. Therefore the trend of eating out is constantly growing among them.  [6]   This social characteristic will have a blooming and flourishing effect on the restaurant industry in Saudi Arabia where the main entertainment is going out restaurant. Perhaps the most pronounced feature of the demography is its young population where more the 59% are under 24 years of age. And part of the Saudi government or reform is to develop its workforce; to achieve this goal the government sends over one hundred thousand young students to peruse their higher education in highly developed countries every year. These large numbers of young people live abroad for almost five to seven years comes back with food and restaurant likes that they adopted during their scholarship.  [7]  This opened the door widely for international franchise in Saudi Arabia Some of the franchises that are currently present in Saudi Arabia, McDonalds, Hardees, Burger King, Popeye, Chilies, TGI, Fuddruckers, Pizza Hut among many others and are very popular among this young population along with foreign workforce, tourist, and pilgrims. The effect of technology and the environment of the restaurant industry The last of the two macro marketing environment forces are the technological and the environmental: In Saudi Arabia Technology in the restaurant industry is not limited to basic kitchen appliances and tools. However, one may not expect some complex equipments are used in the restaurant industry. Many restaurants are leading the way in regards to credit card processing and point-of-sale technologies, introducing new ways to serve their customers and increase the overall convenience of the dining experience. Of course, restaurants chains and franchise are the main benefactors of this development in communication  [8]   In Saudi Arabia there is no significant awareness from the government or most of the population to the environmental issues. All the restaurants that uses recycle paper or green energy are mostly international franchise applying their Owen corporate policy as part of their responsibility Porters 5 Forces Analysis Threat of New Entrants. The restaurant industry is the easiest to enter basically anyone who can cook, with the minimize capital amount can enter the business. Barriers to enter this industry are mainly in the bureaucratic regulation that might take time but this is not considered a serious barrier. Power of Suppliers. While there are plenty of food supplies, but they depend on imported material because Saudi Arabia is not an agricultural country. The import of food and foodstuffs are estimated to exceed $7 billion annually and the Kingdom remains the leading market in the region. Except for date and milk all other raw materials are imported. There are big numbers of suppliers and prices are controlled by the government. Only international food chains franchise might be obliged to buy its raw material from a certain supplier. Power of Buyers. The balance of power is shifting toward buyers. With so many restaurants the competition is very high. Buyers are always looking for the best quality and price. Going to restaurant is not an essential; people are always ready to try something new. With Variety of products to choose from, local, ethnic, and western couple with intense competition lead buyers seeks lower prices and better services. Disposable income levels and an expanding shopping mall culture are assisting this growth Availability of Substitutes. Substitutes for the restaurant industry in general include alternative form of entertainment like cinemas or night club. The available entertainment substitute is the shopping malls, where people will go shopping, or window shopping. Most fast food chains are showing positive growth and are ever present in all the new shopping malls Competitive Rivalry. Even though there are no figures revealing the size of this lucrative market, a high industry growth rate is intensifying the competitive rivalry the presence of so many available substitutes are a particularly challenging situation for some firms SWOT: Strengths Weaknesses Opportunities Threats The Saudi restaurant industry is weak in economies of scale and labor productivity. Its strength is the ability to attract huge capital and labor with it openness to the world market. The restaurant industry is showing significant growth, on the other hand, this open market has intensified an open competition. The diversified culture of Saudi Arabia is the key to exploit Economies of scope. Also, exploiting the economies of scale is also an opportunity. The consumer preference for differentiated and healthy products is also another opportunity to exploit in enhancing the economies of scope. Although, the anticipated low population growth in the future could be a major threat as it would decrease the quantity of demand coupled with the increase in the retail chain the significant increase in small households and working women will create new opportunities for the restaurant industry. Conclusion and recommendation: In this assignment we carried out an analysis of the restaurant industry competitiveness in Saudi Arabia by employing three different analytical tools, PESTLE Analysis, Porter Five Forces, and SWOT Analysis. Based on our analysis we concluded with the following findings and advices to any new firm considering entering the restaurant industry in Saudi Arabia. The strength of the restaurant industry lies on its ability to attract huge capital and labor with it openness to the world market. The restaurant industry is showing significant growth faster than anywhere in the world. Many factors have contributed to this fast growth as such as the political, economical, and low labor market and other socio-cultural factors. The economical and political outlook for restaurant industry in Saudi Arabia is very encouraging, government shows commitment and support to economic growth which is reflected in its double-digit increase in government expenditures on many aspects that are related to the restaurant business. Furthermore, currently, the government economic plan emphasizes the strengthening the growing private sector business opportunities with focus on increasing the national and foreign investments as public spending has increased by 15.8% the government has increased the budget for new projects by 36%. One of the most promising aspects for the restaurant industry is the social changes in Saudi Arabia. For example, the role of females in the social and economic life is dramatically changing as women are now allowed to enter the work force and have huge impact on the purchasing power and certainly a change in womens lifestyle that is favorable to the restaurant industry. On the other hand, the legal process in Saudi is very complex and financially risky whether you are opening a small business or a major enterprise. The government should amend these processes to encourage further foreign investments. Also, the Saudi restaurant industry is weak in economies of scale and labor productivity. Based on the above findings, we strongly recommend and encourage any firm to enter the Saudi market keeping in mind the following points: The restaurant industry is highly competitive in terms of price, service, location, and food quality and is affected by changes in consumer trends, economic conditions, demographics, traffic patterns, and concerns about the nutritional content of foods. shifting dietary preferences among consumers in favor of alternative foods can open the doors for niche market The growth of the restaurant industry is expected to generally stay the same over the next few years and it can be considered a blue ocean. The restaurant industry is affected greatly by globalization and it will continue to be.

Relationship Between Developed and Emerging Stock Markets

Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi Relationship Between Developed and Emerging Stock Markets Relationship Between Developed and Emerging Stock Markets Introduction Due to inclination towards liberalization and deregulation in the capital and money markets, global markets have tended to become highly integrated in recent times in case of developed as well as developing countries. There are many reasons as to why the linkages among the different stock markets should be studied some of the reasons are emerging markets have attracted a great number of foreign investors, removal of statutory controls over their capital market and foreign exchange, stock prices interconnection due to the global capital movements, regional policy and the presence of economic ties. Specialists of finance have given substantial attention to the linkages and the relationships between different stock markets, to explore and examine the potential benefits from international portfolio diversification. Most of the studies are done taking into account developing and emerging Asian markets. Interest of foreign investors have resulted in several fund management centres concentrating on Asian developing markets not only for the growth and development but also to diversify their risk. The aim of this paper is to study the relationship of developed and emerging stock markets. Literatures on the different prospects of stock market have been studied. Many researchers have focused on the integration among the stock market. While studying the literatures it has been seen that different areas are being covered and focused which includes dynamic linkages among stock market during pre and post Asian financial crisis and Russian financial crisis, effect of linkages on the portfolio diversification, effects of linkages on the daily stock prices and domination of developed markets over the developing markets. Further, examining of the empirical question in the literature on capital market integration between different economies is done. For the empirical analysis, data of twenty year for everyday closing stock prices of six indices have been taken from 3 January 1989 to 8 June 2009. Six indices are New York Stock Exchange (USA), London Stock Exchange (UK), Tokyo Stock Exchange (Japan), Bombay Stock Exchange (India), The Stock Exchange of Thailand (Thailand), Bursa Malaysia (Malaysia). In the econometrics literature, there exist a number of alternative methods to estimate cointegration. Econometrics techniques which are being used in this study are Augmented Dickey-Fuller test, Johansen’s cointegration test and Error Correction test. E-views software is used for the calculating the results. Empirical results obtained from the three test, it was found that time series are non stationary and null hypothesis is not rejected which suggest that they are highly cointegrated and to test whether any variations in one stock exchange can lead to fluctuations in other stock indices. Johansen cointegration test is conduct ed which shows that there is no evidence of cointegration between Indian stock index and other stock indices. Further, Error Correction test is conducted which shows that there is poor cointegration between Indian stock exchange index with other stock indices. Indian stock market appear to be least integrated with Malaysia, where as Malaysia stock market is integrated with all the other stock markets. Thailand stock market is seems to be more dependent on Japanese and Indian stock market than other stock markets. Little integration is seen between Japanese stock exchange and USA stock exchange. It is found that UK and USA are highly integrated. To conclude, stock exchanges of the developed economies are better cointegrated as compared to those of developing economies. Background What is stock market? In simple words stock refers to a supply. But in financial market terms, stock refers to the money which a company has raised. And the supply of the money comes from the people who invest in the company in hope that the company will make their money grow. Stocks exist because it enables the company to â€Å"sell† pieces of the business called as stocks (equity securities) in need of long term financing. When stocks are issued by corporations are owned by the public at large which includes both private investors and institution are said to be publicly held. A public place where things are bought and sold is called as Market. And the term stock market refers to a business where stock is bought and sold. Stock market can be splitted into two main sectors; the primary market and the secondary market. The primary market is the one where new issues are offered for the first time and primary market is the one where subsequent trading goes on. There are basically two types of stock namely common stock and preferred stock. A security which represents ownership in a corporation is known as common stock. Holder of the common stock has the power to vote and elect board members. If the company goes bankrupt, the common stockholder will not be paid until unless creditors, bondholders and preferred stockholders are paid their share of the leftover assets of the company. Where as, preferred stock is a stock which is issued when all the common stock has been issued. Preferred stock olders are given dividends. They have a preference that is why they are paid dividend before any dividends are paid to common stock holders. The stock market is not a specific place but still some people use the term â€Å"Wall Street† which is the main street in New York City’s financial district and it is referred to the US stock market. Why companies issue stock market and why people buy it? As every company wants to grow, so some owners build more factories and some develop new product which needs money. A company can actually get loan from the financial institution like banks but companies without going into debt by taking loans issues stock which raise money for the growth of a company. Only Business Corporation can issue the stock which has special legal rights and responsibility. A proprietorship or ownership cannot issue stock. A shareholder invests in a hope that company will grow and so will their money grow because if a company earns money, the shareholders will share the profits. There are different types of gains from the stock such as dividends, capital gains, short selling, risk and rewards for investing. Over the long term bases, investments in stocks have proven to be an excellent way to more than keep pace with erosive effects of inflation. Stock Exchange Stock market is an organised market for trading of stocks and bonds. These markets were originally open to all but now a days only members of the association can buy and sell directly and these members or stock broker can buy and sell for themselves or others by charging the commission for their provided service. A stock can only be bought and sold if it is listed on an exchange. There are stock exchange in all the financial centres of the world. Some of them are stated below; the New York stock exchange since 1792 which had the largest trading in the world of $7.3 trillion in 1998, Tokyo stock exchange, London stock exchange, Bombay stock exchange and NASDAQ. NASDAQ was the first exchange which recognised the role of electronics in stock market. History of the Stock Exchanges Japan In the decade of 1870s, introduction of a securities system initiated the public bond negotiation in Japan which resulted in the need of a public institution for trading and hence in May 1878, the â€Å"Stock Exchange Ordinance† was in enacted followed by establishment of Tokyo Stock Exchange Co. Ltd. On May 15, 1879 and trading began on June 1st. On June 30, 1943, establishment of a quasi-public corporation named the â€Å"Japan Securities Exchange† took place by uniting all 11 stock exchanges throughout Japan. During the Second World War, the trading sessions were suspended on August 10, 1945 but the trading restarted under the management of unofficial group transactions in December 1945. Japan Securities Exchange was dissolved on April 16, 1947. Three stock exchanges in Tokyo, Osaka and Nagoya were founded on April 1, 1949 and trading began on May 16 followed by formation of five additional stock exchanges in July in Kobe (dissolved, October 1967), Hiroshima, Kyoto (merged into Tokyo Stock Exchange, March 2001), Fukuoka and Niigata. In the beginning of the next decade of 1950s, margin transactions were introduced and bond trading started on April 2, 1956. October 1, 1966 observed the first listings of government bonds after the Second World War and in the following year, a new process of auction was put into action and â€Å"Baikai† trades (off-exchange trades) were eliminated. In April 1968, registration system was replaced by licensing system for securities companies and on July 1, 1969, Tokyo Stock Price Index (TOPIX) was launched. Joining the International Federation of Stock Exchanges (FIBV) along with starting of convertible bonds trading and Book Entry Clearing system were the major developments by TSE before listing of Yen-based foreign bonds and opening of Foreign Stock Section in 1973. The next 10 years observed major developments in technical fields such as introduction of Market Information System (MIS) and Computer-assisted Order Routing and Execution System (CORES). From February 1, 1986 to May 23, 1988, a total of 32 securities companies joined the TSE membership out of which 22 were foreign companies. Trading in TOPIX futures, TOPIX options, U.S. T-Bond futures and Japanese government bond futures began by May 1990. Other 10 securities companies including 3 foreign ones joined the TSE membership followed by introduction of Floor Order Routing and Execution System (FORES) by the end of that year. Major happenings in the next decade were: Starting of Central Depository and Clearing System on Oct 9, 1991; Listing of Nikkei 300 Stock Index Listed Fund on May 29, 1995; Initiation of 5-year Japanese government bond futures trading on Feb 16, 1996; Trading in equity options on July 18, 1997; Calculation of new stock price index series on Apr 2, 1998; introduction of ToSTNet and TDnet (Timely Disclosure Network) in 1998; restriction on off-exchange trading for listed securities abolished on Dec 1, 1998; 50th Anniversary celebrations on Apr 2, 1999; introduction of Target (TSE wide area network) on June 1; brokerage commission liberalized in October; establishment of MOTHERS market for emerging companies and growth on Nov 11, 1999; and merging of Hiroshima and Niigata stock exchanges into TSE along with introduction of TSE ARROWS in 2000. Demutualization of TSE resulted in the formation of Tokyo Stock Exchange Inc. in 2001 and later on August 1, 2007, Tokyo Stock Exchange Group, Inc. was established. Tokyo Stock Exchange Regulation was established on October 17th with its commencement on November 1, 2007. Thailand The present Thai market’s origin starts from the early years of 1960s when a private group established a stock exchange in July 1962 as a limited partnership which later turned into a limited company under the name of Bangkok Stock Exchange Co. Ltd. (BSE) in 1963. But BSE was relatively inactive irrespective of its good foundation as its annual turnover values reduced from being 160 million baht in 1968 to an all time low of 26 million baht in 1972, even when turnover in debentures were 87 million baht. So finally, BSE stopped operating in early 1970s and the major reasons behind its failure were limited understanding of equity market among the investors and no government support officially. But, BSE’s concept was able to attract enough attention to form an organized securities market with official support. Hence, a plan to establish a market having apt facilities and regulations for securities trading was proposed by the Second National Economic and Social Development Plan (1967-1971). On recommendation of the World Bank in 1969, the government gained the works of Professor Sidney M. Robbins from Columbia University who studied different methods for the development of Thai capital market. And in the same year, the Bank of Thailand also created a working group for the development of capital market which was given the job of establishing the stock market. After a year of intensive study, Professor Robbins generated an all-inclusive report named â€Å"A Capital Market in Thailand† and this report turned out to be the master plan required for the Thai capital market development in future. In 1972, the government brought some changes to the â€Å"Announcement of the Executive Council No. 58 on the Control of Commercial Undertakings Affecting Public Safety and Welfare† according to which the government now controlled and regulated the operations related to finance and securities companies. â€Å"The Securities Exchange of Thailand† also known as SET was passed in May 1974 after the amendments were made followed by the amending of the Revenue Code by the year-end. By 1975, the legislative framework was put into action and official trading at SET started on April 30, 1975. January 1, 1991 saw the changing of name from â€Å"The Securities Exchange of Thailand† to â€Å"The Stock Exchange of Thailand†. Malaysia In 1930, Singapore Stockbrokers Association was Malaysia’s first formal securities business organisation establishment and in 1937 was re-registered by the name of Malayan Stockbrokers Association. The public shares trading began after the establishment of The Malayan Stock Exchange in 1960 and the board system was having its trading rooms in Kuala Lumpur as well as Singapore, connected by usage of direct telephone line. The year 1964 saw the foundation of the Stock Exchange of Malaysia but in 1965, the withdrawal of Singapore from Malaysia forced the Stock Exchange of Malaysia to become the Stock Exchange of Malaysia and Singapore. In 1973, the Stock Exchange of Malaysia and Singapore was divided into two separate markets namely the Kuala Lumpur Stock Exchange Berhad and the Stock Exchange of Singapore due to ceasing of interchangeability of currency between Malaysia and Singapore. The Kuala Lumpur Stock Exchange integrated on December 14, 1976 as a company limited by guarantee took over the operations and management of the Kuala Lumpur Stock Exchange Berhad. On April 14, 2004, the demutualization exercise made the name to be changed to Bursa Malaysia Berhad. The main aim of this exercise was to boost competitive position and to act in response to trends in the exchange sector globally by becoming more market-oriented and customer-driven. The listing of Bursa Malaysia on the Main Board of Bursa Malaysia Securities Berhad took place on 18 March 2005. The certifications for conformance to the ISO 9001:2000 Quality Management System and ISO 14001:2004 Environmental Management System standards were received by the exchange on 5 October 2007. Faster processing and execution of orders and providing wider trading functions and features were done by introduction of Bursa Trade Securities as a new trading platform in Dec 2008. United States The New York stock exchange trace back to 172, when twenty four New York City stock brokers and merchants signed the Buttonwood Agreement. At that time five securities were traded in New York City out of which three were government bonds and two were bank stocks. It was agreed that securities will be traded on commission basis on signing the Buttonwood agreement by the brokers. After the war in 1815 securities market in New York began to grow. The New York stock and exchange board was formed on March 8, 1817. The name was shortened The New York Stock Exchange (NYSE) in 1863. More than 2800 companies are listed in NYSE which are having value exceeding $15 trillion. During the period 1824 to 1830 annual trading reached a peak of 380,000 shares. Average volume reached to 8500 shares which show that it increased a 50-fold in seven years. During 1836-1853 NYSEB prohibited trading in the street and in 1837 average daily volume fell down from 7393 in January to 1534 by June. Due to invention of telegraph, brokers and investors broaden the market participation outside New York City. It was a panic period during 1857 when Ohio Life Insurance Trust company collapsed, prices dropped eight to ten percent in the single trading session and there was 45% decline in market value in the beginning of the year. During 1860s first stock ticker came into existence, membership in NYSE became a â€Å"property right†, prohibition of issue of shares in secret known as watering stock and at the end on 24th September 1869, gold speculation resulted in â€Å"Black Friday†. In 1890s NYSE established clearing house, it also recommended that all listed companies will send their shareholder the annual report and in 1896. The Dow Jones Industrial Average was published by the Wall Street journal for the first time, with an initial value of 40.74. During that period DJIA topped 100 for the first time. Federal Reserve System Wall Street became world financial leader. Centralized stock clearing system was established and fraud bureau was established during the period. In the mid of 1929 Black Thursday came when market crashed on volume of over 16 million shares which was the beginning of the Great depression and the Dow finally reached bottom in July 1932. During 1960-1979, International Federation of stock Exchange and daily volume on the NYSE exceeded 4 million shares nearly triple the level immediately following the war. On February 03, 1977 foreign broker were permitted membership on the floor. The Inter market Trading system (ITS) was inaugurated. Taking about 20th century, first Global index was launched in 2000, DJIA experienced its largest one day point gain and new trading room at 30 Broad street was opened. In 2001, NYSE volume topped 2 billion shares. The NYSE is now a for-profit business. It is formed out of the merger of the NYSE and Archipelago Holding, Inc. And the merger is the largest ever among securities up to this time. United Kingdom The London Stock Exchange is one of the world’s oldest stock exchanges and traces its history back more than 300 years. It started in the 17th century in London coffee houses. Exchange grew quickly and became the city’s most important financial institution. John casting began in back 1698 to organise the market in Jonathan’s coffee house through a simple list of stock and commodity prices. The wave of speculative fever known as the south sea bubble burst in 1720. In 1761 a group of stock broker form a club at Jonathan’s to buy and sell shares and then in 1773 they put up their own building in Sweeting’s Alley with dealing room and members named it â€Å"The Stock Exchange†. On 3 March 1801, first regulated exchange comes into existence in London and the business reopens under a formal membership basis and the modern stock exchange was born. First codified rule book was created in 1812 and first regional exchange were opened in Manchester and Liverpool in 1836 and it was rebuilt in 1854. A new deed settlement came to existence in 1876. In 1914 after Great War, the exchange market was closed from the end of July till the New Year. During 1986, there was deregulation of market which is known as ‘Big Bang’. Ownership of member firms by an outside corporation was allowed. Brokers were able to operate in a dual capacity and minimum scales of commission were abolished. Trading was moved to computers and telephones from separate dealing rooms. The exchange became private limited company under the Companies Act 1985. The trading name became â€Å"The London Stock Exchange† in 1991. In 1997, SETS (Stock exchange Electronic Trading System) was launched. In 2003, EDX London was created, a new international equity in partnership with OM Group and later in 2004, LSE moved to new headquarters Paternoster Square. Latest in 2007, LSE merged with Borsa Italiana, creating London Stock Exchange Group. India The Bombay Stock Exchange (BSE) is located in Dalal Street, Mumbai. It was established in 1875 and is one of the oldest stock exchanges in Asia. Around 3600 companies in the country are listed on this stock exchange and have a substantial trading volume. The market capitalization of the BSE is about Rs.20 trillion (US$ 466 billion). The ‘Sensex’ is commonly used market index for the BSE and it is among the five big exchanges in the world in terms of number of transactions. Its history traces back to the time in mid 1850s, when an informal group of 22 shareholders used to trade under banyan tree in the Town Hall of Bombay. The association the native sharebrokers was formally organized as The Bombay Stock Exchange in 1875. The BSE is the oldest stock exchange in Asia and Premchand Roychand used to be the leading sharebroker in that time. He was the one who assisted in setting out procedures and conventions for the trading of stock at BSE. James M. Maclean inaugurated the Brokers Hall in 1899. in 1928, it was shifted to an old building in Town Hall, Bombay and later on the building was constructed on Dalal Street in 1930 where the BSE building now stands. The BSE follows the system of eTrading, which came into use in 1995. In 2000, BSE Sensex was used to open its derivatives market for trading Sensex future contracts, followed by development of equity derivatives in 2001 and 2002 which expanded its trading platform. Stock exchanges by providing a centralized and ready market, facilitates the business for financing through flotation of bonds and stocks. Sometimes speculation in stock can put stress on the instability of an economy. The reality of the Great depression was emphasised by the stock market crash in 1929. Financial Crisis Stock market crash of 1929 After the First World War, there was a growth in industrialisation and new technologies. During 1920s was the time of peace and prosperity because the economy was benefited greatly from the new life changing technologies. Many investors quickly purchased the shares on seeing Dow Jones industrial average surged. Due to the powerful economic boom the stocks were seen very safe to most of the economists. Stocks were purchased by the investors on margin. From 1921 to 1929, the Dow Jones rocketed from 60 to 400 and for every dollar invested; a margin user would borrow 9 dollars worth of stock. But on Thursday October 24, 1929 the Dow Jones Industrial Average fell 38 points to 260, which was a drop of 12.8 percent and across the two days its average fell 23 percent and finally at the end of the period on November 11, there was a cumulative drop of 40 percent. Overvalued stocks, low margin requirements, interest rate hikes and poor banking structure were the few causes of the crash. In total, 14 billion dollars of wealth were lost during this market crash. Stock market crash of 1987 Dow hit a record 2722.44 points on 25 August, 1987 but then the Dow started to head down. And valuation in the United States dropped around 36 percent from the days between October 14 to October 19, 1987. On black Monday October 19, 1987 the Dow Jones Industrial Average plummeted 508 points losing approx 22.6 percent of its total value and SP 500 dropped to 20.4 percent. Reasons for the crash were no liquidity, overvalued stock, program trading and the use of derivative securities software. During the crash half trillion dollars wealth were lost. Stock market crash of 2008 The failures of financial organizations in the USA due to exposure of credit default swaps and subprime loans resulted in a global crisis as banks all over the world failed and the values of shares and commodities fell drastically. The Indonesian Stock Market stopped operating on seeing a 10% drop in a day on October 8. Comparisons were made of this crisis with the one in 1987 but that lasted for just one day whereas the present one lingered on for the whole week. Dow Jones saw its worst ever decline of 18% during the week commenced on October 6. The failure of banks in Iceland devalued the Icelandic Krona and forced the country to the verge of bankruptcy which was saved by an emergency loan from International Monetary Fund (IMF). The main index of Iceland had a 77% decrement. October 24 saw the worst downfalls for many countries whereas Dow Jones industrial average was somewhat better at 3.6%. The value of United States Dollar and Japanese Yen increased whereas that of British Pound and Canadian Dollar was among the major losers. Literature review 1.1 Introduction The competition among different industrial countries markets was witnessed by their respective national stock exchange markets during the late 1980s and the economists observed that linkage or interrelation between the global markets existed. Due to the less restrictive climate towards capital movements, economists actually started thinking that the major financial markets of the world are systematically interrelated. Growth can be seen in reaction towards external developments in macro-economic policies and the world financial environment due to this interrelation. Technological developments in communications, trading system and the innovations of financial products have created global international investment opportunities. Linkages among stock market have important implication and significance for security pricing, trading strategies, hedging and financial market regulations. And also the presence of short term and long term relationship may be used to attain financial gains from international portfolio diversification and to also reduce systematic risk. International Market linkages have been widely investigated. Several studies have been conducted explaining the empirical and theoretical issues on linkages amongst stock market and mainly focused on the co-movement between developed and emerging markets. There is a wealth of literature on stock market interdependence and integration. However, depending on the data, methodology, and theoretical models used there is no clear resolution of the issue yet. Some previous work has have found that international stock markets are integrated and some found that stock markets are not interlinked. Most of the studies on stock market interdependence in emerging markets have been done on geographical groups of markets, such as markets in Central and Eastern Europe  and America  and in Asian countries. Further, I summarize some of the most recent findings. 1.2 Interdependence of Stock Markets A number of studies have examined stock market linkages among emerging stock market and the developed stock markets like Arshanapalli, Doukas and Lang 1995 and Chen, Firth and Rui, 2002. Arshanapalli, Doukas  and Lang (1995) report that after the 1987 crash international market linkages have strengthened in terms of increased number of co-integrating vectors in the post crash period. They investigated in their paper that presence of a common random variable trend between the US and Asian stock market movements during the post October 1987 period. They showed that the cointergating structure which actually ties the stock market together has significantly increased since October 1987. US stock market influence on the other markets was considerably found greater in the post crisis period. Their results indicate that the Asian equity market is more integrated with US equity market than Japan equity market. Where as, Masih and Masih (1997) and Masih and Masih (1999) found cointegration relationship among the equity markets of Malaysia, Thailand, US, UK, Japan, Singapore and Hong-Kong during pre-financial crises period 1987. Number of papers investigates the short term and long term linkages among Central and Eastern Europe (CEE) stock exchanges. Talking about long term relationship, Gilmore and McManus (2002) and Gilmore and McManus (2003) analysed that no long term relationship can be established among the CEE stock markets with the US and Germany stock markets, where as Voronkova (2004) shows the existence of long term linkages among the Central European markets and CEE. Hamao and Masulis (1990), King and Wadhwani (1990), Kasa (1992) and Arshanapalli and Doukas (1993) have found that the equity markets of developed markets are integrated and US equity market leads the other developed market like Japanese equity market, UK equity market and few other European equity markets. Yang, Hsiao, Li and Wang (2005) also examined the long run price relationship and the dynamic price transmission among USA, Germany and four Eastern European emerging stock markets. They paid particular attention to Russian crisis in their study. VAR analysis was conducted. It was concluded that both long run relationship and the dynamic transmission were strengthen among these markets after the crisis and Germany became dominant and noticeable only after the Russian crisis amongst all the Eastern European markets. Syllignakis and Kouretas also examined the short and long term relationship between ten central Eastern European stock markets and two developed stock market i.e US and Germany, they used Gowzalo and Granger method and indicated weak partial integration among these markets. They also indicated that the four big stock exchange market like Republic, Hungary, Poland and Slovenia together with Germany and the US stock market have substantial permanent factor which drives the system of stock market exchange in the long run. Egert and Kocenda (2006) analyse the co-movement and interdependence among three stock markets in Western, Central and Eastern Europe and found no robust cointegration relationship for any of the stock index pairs. Data from 2003 to 2005 for stock indices have been taken and applied wide range of econometric techniques like unit root and stationary tests, cointergration tests, Granger causality test, VAR estimation have been used. Results show that there are signs of short term spillover effects both in terms of stock price and stock return volatility. Granger causality test show the existence of bidirectional causality for both returns and volatility series and limited number of short term relationships using VAR framework. Limited interaction has been found among the market in case of Poland and Hungary by Li and Majerowska (2007) and also showed that emerging markets are weekly linked to the developed markets by using GARCH approach .In this paper linkages between the emerging markets of Warsaw and Budapest with the established market in Frankfurt and US were studied by using four-variable asymmetric GARCH-BEKK model. At the end it was implied that by adding the stock in the emerging markets to their investment portfolio they may benefit from reducing the risk. Further, looking at some more European counties Lucey andVoronkova (2008) examined relationship Russia and other equity markets over the period of 1995-2004 by using number of co-integration approach like Gregory-Hansen test, a stochastic cointegration framework, the non-parametric test for unit root and cointegration and found Russian market does not show strong evidence of increased long run convergence either with regional or developed markets, so therefore correlation is low. They also stated that Russian equity market in the long run was isolated from the influence of international markets and structural break in August 1998 did not alter the long term relationship nature. Ozdemir, Olgun and Saracoglu (2008) examined dynamic linkages between the equity market of US representing the center and emerging market using the Granger causality test as a result showed significant causal relation to all emerging markets and conclude that there is no evidence in the literature suggesting an effect of an emerging stock exchange market to that of large markets like US, Japan and UK. Where as Chinzara, examined to what extent South Africa equity market is integrated into world equity market using cointegration, VECM and VAR model and taking data for period 1995-2007. He fi

Drug Prohibition :: essays research papers

Drug Prohibition There are no panaceas for the world's drug problems, but legalizing drugs, un-clog the court system, and free prison space for real criminals. comes as close as any single policy could. Removing legal penalties from the production, sale and use of "controlled substances" would not create a "heaven on Earth," but it would alleviate many of the nation's social and political problems. Legalization would reduce drug-related crime, save the U.S. billions of dollars In 1984, a kilogram of cocaine worth $4000 in Columbia sold at wholesale for $30,000, and at retail in the U.S. for some $300,000. At the time, a Drug Enforcement Administration spokesman noted that the wholesale price doubled in six months "due to crackdowns on producers and smugglers in Columbia and the U.S." The consequence of this drastic factory-to-retail escalation is a rise in crime. Addicts must pay hundreds of times the costs of their habit, and often turn to crime to finance their addiction. Also, those who deal in the selling of the drugs become prime targets for assault for carrying extremely valuable goods. The streets become battlegrounds for competing dealers because a particular block or corner can rake in thousands of extra dollars a day. Should drugs be legalized, the price would collapse, and so would the drug-related motivations to commit crime. A pack of cocaine becomes no more dangerous to carry than a pack of cigarettes. The streets would be safer to walk, as criminal drug dealers are pushed from the market. Legalization would also deflate prison overcrowding. Out of 31,346 sentenced prisoners in federal institutions, drug law violators were the largest single category, 9487. By legalizing drugs, there would be no more drug offenders to lock up. Since many drug users would no longer be committing violent or property crimes to pay for their habits, there would be fewer real criminals. This decrease in inmates would bring the overflowing federal prison system down to its rated capacity. The excessive efforts now used against drug activity and drug related-crimes by police would then be put to use more effectively for catching rapists, murderers, and the remaining criminals who commit crimes against people and property. It takes a month to bring a person accused of a crime to trial. It's even slower for civil proceedings. There simply isn't enough judges to handle the ever-increasing caseload. By legalizing drugs, thousands of cases would be wiped off the courts permitting the rest to move faster. Prosecutors would have more time to handle cases, and judges could make more considered decisions. Better decisions would lead to fewer grounds for appeals, reducing the huge

Stephen in A Portrait of the Artist by James Joyce Essay -- James Joyc

Stephen in A Portrait of the Artist by James Joyce Stephen Dedalus, the main character in most of James Joyce's writings, is said to be a reflection of Joyce himself. In A Portrait of the Artist as a Young Man, the reader follows Stephen as he develops from a young child into a young artist, overcoming many conflicts both internally and externally, and narrowly escaping a life long commitment to the clergy. Through Joyce's use of free indirect style, all of Stephen's speech, actions, and thoughts are filtered through the narrator of the story. However, since Joyce so strongly identifies with Stephen, his character's style and personality greatly influence the narrator. This use of free indirect style and stylistic contagion makes Joyce's use of descriptive language one of his most valuable tools in accurately depicting Stephen Dedalus's developing ideals of feminine beauty. As a very young child Stephen is taught to idealize the Virgin Mary for her purity and holiness. She is described to Stephen as "a tower of Ivory" and a "House of Gold" (p.35). Stephen takes this literally and becomes confused as to how these beautiful elements of ivory and gold could make up a human being. This confusion is important in that it shows Stephen's inability to grasp abstraction. He is a young child who does not yet understand how someone can say one thing and mean something else. This also explains his trouble in the future with solving the riddles and puzzles presented to him by his classmates at Clongowes. Stephen is very thoughtful and observant and looks for his own way to explain or rationalize the things that he does not understand. In this manner he can find those traits that he associates with the Blessed Mary in his pro... ...human desires and realizes how beautiful love, passion, and devotion can be from an artist's perspective. Stephan Dedalus's transformation into a "priest of the arts" is parallel to the early life of James Joyce. Both struggle to deal with the conflicts of childhood and adolescence to find a balance in which they can happily live. Since A Portrait of the Artist as a Young Man is written in third person, yet employs the characteristics of the protagonist, Stephen Dedalus, the use of descriptive language is essential to the reader's understanding of the novel as a whole. James Joyce excellently uses his talent to successfully communicate Stephen's feelings so that we, the reader, can understand the development of his attitudes and ideals about feminine beauty. Works Cited Joyce, James. A Portrait of the Artist as a Young Man. New York: Penguin Group, 1977.

Psychological Theory And Research And The Foxwood Inclusion Education Essay

â€Å" Inclusive instruction is concerned with all scholars, with a focal point on those who have traditionally been excluded from educational chances – such as scholars with particular demands disablements, kids from cultural & A ; lingual minorities, and so on ( UNESCO, 2001 ) † This is an inclusion which was set out by the guidelines for learning. With that being the instance it is difficult to grok why some students with SEN, who â€Å" attend mainstream † school, are frequently still separated from their typically developing equals. This is known as integrating and was identified to hold 3 types ; location, societal or functional- ( Warnock, 1978 ) . . It can be seen by the survey of students with SEN who attended categories in a particular unit- Sinclair Taylor ( 1995 ) . Here it was found that these pupils, even though they had SEN, were cognizant of how others around them thought about them and knew they were non like the remainder of their typically developing equals due to this separation. The classification of those with SEN is based on medical rules and factors which Belanger ( 2000 ) researched and schools frequently abide by this theoretical account prior irrespective of their consent or want. What features can be identified that are consistent with the recommendations from psychological theory & A ; research? Inclusive instruction is centred on the human right to instruction, which was asserted in the Universal Declaration of Human Rights in 1948: â€Å" Everyone has the right to instruction†¦ † ( art.26 – Universal Declaration of Human Rights ) From the present article it was addressed that the really word picture of what inclusion is to each individual needs to be addressed in articles environing this subject, an as Booth and Ainscow ( 2002 ) pointed this out as being â€Å" cardinal † to inclusion but which is frequently left out, The present survey does a good occupation to turn to their conceptualization of what inclusion is early in the article. From the Education Act ( 1981 ) and the Education ( NI ) Order ( 1986 ) the authorities had been be aftering a steady patterned advance towards inclusion. This entails that all kids should hold entree to a basic but good quality education- ( Frederickson & A ; Cline, 2002. ) There is grounds that kids can do appropriate advancement in a mainstream scene if specific course of study distinction and instruction schemes are employed ( Manset & A ; Semmel, 1997 ) . In the Foxwood inclusion, this was adhered to as the single plans were developed for the demands of each kid alternatively of them seeking to suit into a stiff plan or course of study that would non function their best involvement. Pupil diverseness is something which needs to be accounted for in order for successful inclusion to happen. Wedell ( 1995 ) besides reported that stiff learning methods and regulations that merely cater for typically developing pupils may do issues for pupils with SEN. Local instruction governments ( LEAs ) are now draw a bead oning to explicate 1why a kid ‘s demands can non be met in mainstream schools if they have SEN, 2 why inclusion can non be achieved without the intervention to other kids ‘s instruction 3and why inclusion puts emphasis on resources portraying it to be complicated to supply schools with resources. Some have implied that the impression of inclusion extends further than simple integrating. It is people ‘s revised thought that has led to a re-conceptualisation of â€Å" particular demands † . If troubles had by the students are recognized, it makes advancement more likely. Communication between those involved in the kid ‘s integrating into the new school was recognised by the Foxwood inclusion programme as being imperative. Mainstream categories, predating and during the first phases of debut of students from the SEN school, were provided with a equal readying bundle. This included workshop activities which were held by an inclusion squad member and besides the category instructor. This provided the pupils with information to help their supportive interactions towards the kids with SEN. The kids with SEN wore the same uniform as the remainder of the kids in the Foxwood inclusion strategy. This brought a sense of integrity and belonging to the kid as they were visually granted the sense of adjustment in and being the same as the other pupils. This characteristic has been given more attending in the US than the UK. What farther developments could be suggested? In a survey carried out by El-Ashry ( 2009 ) the relationship and attitude of instructors towards kids with a disablement and their inclusion into mainstream schools was investigated. This showed a negative attitude from the instructors towards these kids. However, instructors that reported a relationship with one of the kids with a disablement spoke more favorably of their inclusion. This could hence be implemented in schools and reversed to happen out the attitudes of kids with SEN towards their instructors and in add-on, the instructors ‘ attitude towards them. It could give penetration into the possibility of the kid with SEN picking up on the instructors ‘ attitude towards them and their ideas on inclusion, whether it is negative or positive. Conveyance to and from school would necessitate to guarantee the obliteration of a seeable barrier implemented between mainstream and SEN. If kids with SEN are required to utilize â€Å" particular conveyance † this is a seeable separation of them from their equals e.g. â€Å" The xanthous coach. † Goodman and Burton ( 2010 ) used â€Å" Semi-structured interviews to analyze instructors ‘ experiences and attacks to including pupils with BESD in mainstream instruction † . They stated that they found this difficult â€Å" due to a deficiency of resources and degree of proficiency † . Their work showed that although the sum of work done was extended and hence a assortment of schemes for working with pupils with BESD identified, they were still concerned that instructors still raised by issues resembling those recognized in policy over 20 old ages ago. This would propose that despite the alterations that have been made ; already established obstructions to guarantee inclusion have yet to be addressed. There would necessitate to be more schoolroom helpers available to help the instructors every bit good as the pupils. Wedell ( 2000 ) really stated that for effectual inclusive instruction at that place needs to be a greater alteration than is presently acknowledge d. Educational psychologists have a cardinal function to play, nevertheless the assorted demands placed upon them raises issues as to how they can concentrate on inclusion to accomplish a coveted result every bit good as support from specializer instructors ( Takala & A ; Aunio, 2005. ) Therefore once more at that place needs to be more resources and services available in any inclusion scene, nevertheless, the Foxwood inclusion did demo grounds of this. Information and communications engineering has potential for larning among students, as has the development of equal tutoring. This could advance the sense of belonging and credence for kids with SEN every bit good as a sense of duty towards them from their equals, which in bend may turn out to decrease the extent of intimidation. Class Wide Peer Tutoring, ( CWPT ) was used to heighten the spelling public presentation and societal interactions of three typical pupils and three pupils with mild disablements in an probe by Sideridis ( 1996. ) The consequences showed a addition in the truth of spelling of all pupils, an addition of pupils ‘ continuance of positive societal interactions and eventually the satisfaction of pupils and instructors showed an addition besides. Another survey showed the same consequences, although somewhat less clear cut, with regard to kids with autism ( Ward and Ayvazo 2006, Mc Donnell et Al 2001. ) If this was incorporated it could demo success and advance coveted emotional and societal success for both the kids with SEN and their equals. In such scenarios, learning and larning becomes a collaborative activity. How might the undermentioned facets be investigated: the societal competency & A ; affectional operation of the kids with SEN, and the attitudes & A ; behavior of their schoolmates towards them? Gresham et Al ( 1997 ) described this, societal capableness, as â€Å" multidimensional concept made up of societal accomplishments, adaptative behavior and equal relationship variables. † There are multiple ways in which societal competency or ability can be investigated. A technique which could be used would be the Roster and Rating Scale. It provides the kids with a record of all those being targeted for the intent of the consequences, i.e. , their schoolmates. The numerical graduated table is explained and the kid rates each kid in conformity with this. Forced Choice Group Preference Record is besides one which can be used. Connolly ( 1983, cited by Frederickson & A ; Furnham, ) emphasized the hazards of recognizing unpopular kids, yet, Fredrickson and Furnham ( 2004 ) argue that this fact-finding method is suited for mensurating societal inclusion and besides noted that few researches supported Connolly ‘s claim as small grounds was found to reenforce it. Frederickson & A ; Graham ( 1999 ) reported dependability and cogency with respects to the information which the method produced. The present survey investigated some of these facets by analyzing the relationship between strong-arming and exploitation between kids with SEN and their equals. In a reappraisal by Gresham ( 1997 ) it was concluded that kids with mild disablements had poorer societal accomplishments and besides displayed more clogging job behaviors. They were unsuccessfully accepted or discarded by equals. However, it is Important that the instruction proviso giv es extra attending to warrant that kids who have SEN are non subjected to severe societal rejection since they lack expertness in cardinal societal and emotional countries. Dodge et Al ( 1982 ) illustrated that kids with SEN experienced troubles in certain societal state of affairss as they found it hard to construe these state of affairss in the manner that their equals could. The â€Å" Guess who † societal behavior, bully and victim steps developed by Frederickson & A ; Graham ( 1999 ) was used in the Foxwood inclusion strategy and is utile for the indicant of the pupils sentiments to give an penetration into the attitudes towards the kids with SEN. Some worried that if kids with SEN were incorporated into a schoolroom or school with typically developing kids, that the typically underdeveloped kids would be disrupted. However research by Kalmabouka et Al ( 2007 ) found there to be no unfavorable effects for the first initial pupils when SEN kids were included in the school. In the Foxwood inclusion article, it was reported that Trends in equal studies of strong-arming suggest that there is no room for complacence and that ongoing monitoring is required. Humphrey ( 2008 ) worryingly admitted that after their research for including kids with SEN among their equals that â€Å" none of the schemes outlined here or elsewhere are likely to be successful unless they are underpinned by nucleus values and attitudes that include regard for ( and jubilation of ) diverseness. † Decision of inclusion The current Foxwood inclusion strategy made usage of bing research and schemes, every bit good as guidelines for successful inclusion. The students were good supported and accepted contrary to Warnock ‘s ( 2005 ) uncertainnesss. The equal readying bundle may be responsible for the differences among the consequences of credence. They admitted more research would be insightful. In order for the concerns of intimidation and credence within the schoolroom, the literature could be farther examined to set into topographic point any suggested which may farther better the state of affairs. Combined work on inclusion along with the hereafter developments discussed supra could hopefully retroflex the consequences shown by the Foxwood strategy except on a more cosmopolitan graduated table. The inclusion of a kid would normally come about by the petitions of the parent or the kid ; therefore it is the figures in the educational system, pupils and parents etc to guarantee the kid ‘s e xperience is worthwhile.

Pocahontas, Powhatan, Opechancanough

Introduction:Take that part of the history, when the first interactions between the native Indians and the British settlers. Mostly, it began with the initial hesitation, mutual distrust, pitched battles ensued, lots of bloodshed resulted with loss of human lives on either side, the true and noble emotions of the human beings played their part, love episodes between the white man and black beauties happened. Did it help to smooth the relations between then tribes and the settlers, or worsened the situation resulting in more mistrust and bloodshed. Many constrains come in the path of writing the history of the sixteenth century and what really happened in Jamestown, in the absence of authentic historical records   as for the conditions and contributions of the native Indians. British historians have sidetracked many facts, according to Helen Rountree and she has tendered archeological evidences to prove her findings.The Lives Changed:Pocahontas is regarded as the most famous Native American who ever lived, hailed from the native tribes. But as documented by the historians, during the process of settlement of Jamestown and for two subsequent centuries, the great Tribal Chiefs, Powhatan and Opechancanough took the front seats. Pocahontas demanded lots of attention for different reasons. Opechancanough captured the British captain John Smith. To save his skin and perhaps his life from his unpredictable captor, John Smith came out with certain original ideas to impress his captors in that land of uncertainties for the early adventurous settlers.He gave his captor a compass, and told him the details about a spherical earth which revolved around the sun. He had apprehensions whether his captor was a cannibal in which case Smith’s life was in danger. That was a wrong assumption– he was no cannibal but he ‘knew’ that the earth was flat. John Smith was duly presented before the paramount chief Powhatan. The meeting had positive results as for John Smith. He got an opportunity to meet Powhatan’s daughter Pocahontas. Thinking him to be a good individual and believing that he had a firm ally, he released Smith from captivity. Within the next few decades his people were the subjects of the British Crown.The 400th anniversary of Jamestown’s founding:Helen Rountree is a nationally renowned scholar of Native Americans. Historians could not get much of the events that shaped the lives of Powhatan or Opechancanough, but Rountree’s book fills up this lacuna.  Ã‚   Pocahontas steals the limelight as for the remarkable life that she lived. All the three historical figures have been adequately covered in the book. The initial introduction, the interaction period and the final confrontation between the natives with the English settlers have been taken into account. An interesting turn to the events of the era was the intriguing diplomacy following     the marriage of Pocahontas and John Rolfe. This personal event was against the social traditions then practiced by the tribal. During Opechancanough’s reign the native sovereignty came to an end.The essential difference between the writing and recordings of the British Historians and Helen Rountree:The book written from the ethno-historical angle, Rountree has utilized two important tools required for honestly constructing historical facts—anthropology and written records. The writers among the white settles did their own job. Their writings remained unchallenged, whether right or wrong, because there was not another writer, who could tell facts. By no account English can be termed as heroes. They were Tassantassas (strangers), squatters and invaders. The truth must be told, feels Rountree and she has constructed her recordings in an authentic manner on the basis of facts and evidences.When romance scores over history:History is an interesting subject; history with romance is very interesting. Historical fiction novels are good playing ground for the imaginative movies to sprout. For one thing, the historical characters lay quietly in their graves and they are not likely to challenge your version of their romance. John Smith, known in his day as a bad boy, would not have done anything good for the fifteen years young Princess Pocahonas, the daughter of Chief Powhatan. Did she play a role to save John Smith’s who was imprisoned by the Tribal Chief—can’t say but her contribution to lessen the tension between the colonists and the natives was noticeable and mentioned prominently by the historians. She married Jon Rolfe, a British nobleman. She learned to speak English. She adopted the Christian religion.She moved to London and became a lady. In the meantime, Powhatan tried and did his best for unity between the natives and colonists. He seemed to have succeeded for a while but later the conflicts resumed.The systematic and scientific approach to writing by Helen Rountree:Rountree wri tes without any prejudice, and calls spade a spade. She has termed the British settlers as invaders and rightly so. The book intensely covers the period from 1607 to 1644.She has highlighted three important points, a) Virginia Company’s settlement in Jamestown, b) deterioration of relations between colonists and natives and c) the wars of 1622 and 1644. She has given detailed description about the pre-invasion life of the tribes, highlighting the importance of  Ã‚   rituals in their life. She has mentioned the different lifestyles and environments, and shown how values were entirely different. The contents of the book give the overall picture of the founding of Jamestown from the Indian point of view.â€Å"Jamestown's founding approaches, nationally renowned scholar of Native Americans, Helen Rountree, provides in a single book the definitive biographies of these three important figures. In their lives we see the whole arc of Indian experience with the English settlers â⠂¬â€ from the wary initial encounters presided over by Powhatan, to the uneasy diplomacy characterized by the marriage of Pocahontas and John Rolfe, to the warfare and eventual loss of native sovereignty that came during Opechancanough's reign.† (Three†¦.)  Rountree, with her scholarly approach gives facts about seventeenth-century Powhatan culture. It is being appreciated by the scholars for the wealth of understanding it brings.   The lay readers like it for the personable prose and lively narrative structure. Her interpretations are backed up by careful, acceptable research-based reasoning and extensive knowledge.To get the truth, sieving the biased and none-sided approach of the British historians is a tough task and Rountree has managed her job well, despite hard constrains. Powhatan lacked a written language. She has relied upon evidence derived from archaeology. She has highlighted Powhatan’s own vocabulary of seasons linked to different forms of food g etting. One feels of getting the other side of the story—the real story! â€Å"In particular, the three main subjects of the book all begin to emerge—Powhatan and Openchancanough from their relative obscurity, and Pocahontas from the myths that have surrounded her since at least the nineteenth century. Just in time for 2007, they appear with all of the complexity of character and motivation that the history books have typically reserved for only a few of the â€Å"strangers† like John Smith.† (Virginia†¦.)Hollywood portrayals:â€Å"When Disney Studios released the 1995 movie, Pocahontas, Dr. Rountree subsequently devoted many interviews to debunking the myths surrounding the young girl who, today, plays such a pivotal role in the American imagination.† Recently Hollywood movie â€Å"The New World† is released. This movie is an adult version of the Pocahontas and John Smith romance.  Ã‚   The four hundredth anniversary of Jamestownâ₠¬â„¢s founding was inaugurated, May 2006, that will last for 18 months.Conclusion:Helen Rountree’s credits and achievements through this book can be summed up thus. She has thrown fresh light on the life and culture of the native Indians. One is able to understand Jamestown in a better perspective. The indigenous voices are heard. She has shown how important are the lives of Pocahonas, Powhatan and Openchancanough to understand what happened in and to Jamestown in the sixteenth century.References Cited:Rountree, Helan C. Book: Pocahontas, Powhatan, Opechancanough: Three Indian Lives Changed by Jamestown. Publisher: University of Virginia Press; Edition (June 15, 2006) ISBN-10: 0813925967: ISBN-13: 978-0813925967Article: Three Indian Lives Changed by Jamestown. Target.comwww.target.com/gp/product/0813925967) Retrieved on 17th September 2007.Virginia Magazine of History and Biography: Article: Powhatan, Opechancanough: Three Indian Lives Changed by Jamestown...www.vahistorical. org/publications/review_rountree.htm – 9k – Retrieved on 17th September 17, 2007