Organisational Behaviour Assignment - Free Essay Example

Sample details Pages: 4 Words: 1241 Downloads: 6 Date added: 2017/06/26 Category Management Essay Type Research paper Level High school Did you like this example? Organizational Behavior Contents The problems and the hypothesis discussed in the research article: The need for the study: Methodology: Students team critique: Summary and Conclusion: The problems and the hypothesis discussed in the research article: This study analyzes the style of talent management handled by institutional and corporate leaders in the context of Gulf Cooperation Council (GCC). The context is valuable due to the nature of the region which is under-researched and also because the type of variables found further out understanding of TM processes in non-western context. The companies involved in the business process in this region have to sustain their legal legitimacy by abiding by the localization rule, at the same time trying to improve efficiency through selective action to enhance economic sustainability. In the process the companies try to keep the balance of global adaptation and local absorption of human resource for maximum utility to be gained for TM processes. In spite of the demand of business and management scholars for more international research, the area is still fragmented and under developed and the topic still lacks proper definition. The definition of talent management as per businessdirectory .com says the attempt of an organization to recruit, retain and train the most gifted and highest quality staff members that they can find, afford and hire. Talent management gives business managers an especially important role to play in recruiting, developing and retaining desirable staff members. Researchers are doing scholarly which tends to ignore the role of contextual factors in shaping global TM practices. Researchers refer to external forces or drivers, beyond corporate control, that impact the organizational ability to manage the global TM process. For example, as per the trend of globalization of talent migration tendencies, demographic changes, and demand-supply gaps, terming these as à ¢Ã¢â€š ¬Ã…“exogenous driversà ¢Ã¢â€š ¬Ã‚  of global TM challenges. The identification of the barriers as per Schuler, Jackson and Tarique are as of the list given here- a) Dedication of time of senior managers related to TM search, b) Organizational structure, c) Tack of willingness to acknowledge performance variances among employed workers, d) The shortcoming of HR knowledge to address TM challenges, e) Lack of involvement of the middle managers, f) The deficiency of knowledge with application of the managers for proper execution of right decisions related to TM decisions. The above barriers or constraints are important and the strategy to overcome them is the key to successful TM strategy. Yet as the application of TM expands with its theoretical part all over the emerging markets of the world to find the best candidate for the right place, there arise some exogenous barriers or constraints which are still to be noted with the proper organizational response to cope up with them. In the context of Arab and Gulf countries under GCC the research with TM exploration shows some interesting data with the comparison of local and expatriate human resource. Out of total population, the local people contribute only 53% and as per the data, t he labor contribution of 27% of local against the total work force deployed in this region. The excellent unique derivatives of this economically strong region allure the multi-national companies with its natural resources. Right from the inception of GCC in 1981, the MNCs come is huge no. to exploit the natural resources with the excellent infrastructures provided by the countries. But the deployment of man power trend shows the dependence of expatriate in higher side causing serious imbalance problem of the local man power resulting major unemployment problem in the region. As per the Economic Intelligence Unit projection, the growth of GDP in GCC countries will reach US $ 2 trillion by 2020. To meet the growing needs of domestic human resources, GCC has a specific plan to upgrade the local HR by education to meet the demand. But this is not so easy as the plan is long-run will give result after a certain period of time. By the time the increasing demand of HR will be met by ex patriate personnel and the problem will be fiercer in case of local employment. The system of prioritizing local workforce has its own drawback as the companies canà ¢Ã¢â€š ¬Ã¢â€ž ¢t operate under the hypothesis that deployment of work force from any sources canà ¢Ã¢â€š ¬Ã¢â€ž ¢t be smooth without hurdles. The impact of nationalization policies on organizational abilities to attract, develop and retain the right talent, both local and foreign, remained understudied. Don’t waste time! Our writers will create an original "Organisational Behaviour Assignment" essay for you Create order The need for the study: The situation of conflict between the local and foreign workers is getting worst day by day. As per the need of the situation, the foreigners are getting priority for their skill and talents. The up gradation of the local people through specific education, plan system is initiated but the result is expected after long time. In this case, the proper research is necessary to understand where the system of up gradation is lacking. The class-bound education with enough practical implication will make the local people ready to meet the demand of the country. It is not admirable that one side the percentage of expatriate workers will increase and the local people sit idle without employment. Hence the proper research is to be done applicable for this region to ensure the parity in employment with the local vis-ÃÆ'  -vis foreign man power, with the objective of minimizing the foreigners by replacing them with local people with same standard as the situation arises. For this purpose the MBA students have to play a vital role with their study, research and analysis to find the right track of this program. The GCC and UAE, with their enormous requirement of man power will find one day that the work force is dominated by the foreigners and this is totally an unhealthy situation so far the employment market is concerned. To find the suitable solution of this problem, the MBA students should take active part to show the road towards future employment policies with the backup of proper enhancement of educational system in those countries. Methodology: The methodology employed in this study is hypothetical backed by data analysis. Nobody knows what will happen in future but with the best possible intellect to analyze the result of the research and thus conform the probability of success of the project of TM. There are many constraints come out with the process of research and those are to be solved with the practical application with the best possible solution which is backed by the best presence of mind. Students team critique: The research on TM is good enough with the result of future process featured. The assumptions are based on the facts and the limitations are minor. The success of this research will be seen when the proper step of evaluation of local people in the context of replacing the expatriates will be observed with the help of proper education and practical application of the theories. Summary and Conclusion: The present crisis of TM in GCC and allied countries will get critical if the same is not emphasized right now. The scope of TM in the region is bit difficult due to its nature of under studied. The research work is to be continued with further development in this area will soon find UAE and GCC countries to replace the foreign man power with high level of education, practical application and execution to the utmost demand. And thus the research work of TM in UAE and GCC will prosper with the basic objective to be fulfilled.

Diabetes A Serious And Deadly Disease - 2251 Words

Diabetes is a life risking sickness initiated abundant amounts of glucose in the blood. This illness is caused when the body is unable make insulin, which can be found in the pancreas. Insulin is a hormone that controls the level of a person’s blood. Diabetes disturbs the way a person’s body uses blood sugar. Diabetes has took many lives in the Delta and the rate is surprisingly increases over the years. The Delta has many diabetes patients, more than one can imagine. Most patients in the Delta are dumbfounded when it comes to the symptom and causes of this particular disease. Diabetes has several symptoms such as repeated urination, extreme thirst, bigger appetite, and weight loss. It also affects people s lives and their family, and†¦show more content†¦Two hundred and ninety-three adults in the Delta region died from type II diabetes. 12.1% of adults in the Delta region reported being diagnosed with type II diabetes† (System). Over the past years, case s of both Type I and Type II Diabetes have increased exponentially due to food production companies. The government needs have some regulations on the practice of fast food companies to ensure a healthier and less risky life of people. Diabetes comes in two types, type one and two. Type one diabetes is normally called â€Å"Juvenile Diabetes†. According to The Mayo Foundation for Medical Education, â€Å"Type 1 diabetes was formerly called juvenile diabetes or insulin-dependent diabetes, because seventy percent of diagnoses occur before a person reaches the age of 30. However, it can be diagnosed at any age. Only 5 percent to 10 percent of those diagnosed with diabetes have this type. With type 1 diabetes, the pancreas produces little to no insulin† (Davidson). A person may have to take insulin multiple times a day depending on if the appropriate foods are consumed. If a person is to consume the wrong types of food with too much sugar, it would cause their blood level to increasing which would require the injection of insulin. â€Å"Type I Diabetes is one of the most common chronic disorders of childhood. Unfortunately, it is increasing in incidence, particularly in young children. The reason for this is unknown,

Theories of Foreign Direct Investment Free Essays

Theories of Foreign Direct Investment Foreign Direct Investment, or FDI, is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor. Foreign direct investment has many forms. Broadly, foreign direct investment includes â€Å"mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intracompany loans†. We will write a custom essay sample on Theories of Foreign Direct Investment or any similar topic only for you Order Now Foreign direct investment incentives may take the following forms: †¢ low  corporate tax  and individual  income tax  rates †¢ tax holidays †¢ other types of tax concessions preferential  tariffs †¢ special economic zones †¢ EPZ  Ã¢â‚¬â€œ Export Processing Zones †¢ Bonded Warehouses †¢ Maquiladoras †¢ investment financial subsidies †¢ soft loan  or loan guarantees †¢ free land or land subsidies †¢ relocation expatriation †¢ infrastructure subsidies †¢ RD support †¢ derogation from regulations Once firms have decided to enter a foreign market, they have to choose the best mode of entry. Firms can use six different modes to enter foreign markets: 1. Exporting, being a temporary strategy is like a stepping stone in the international expansion process for most firms. In the past, Seagate was a well know example which concentrated its manufacturing operations in one location enables it to move down the experience curve and achieve location economies. 2. Turnkey projects, are popular because firms can continue with normal business operations while the contractor handle the time consuming and resource intensive projects for a foreign client. Singapore shipyard is reputable for handling sophisticated turnkey projects regardless of is complex requirements and other considerations. This industry is well known in the economic development for the last 40 years and will continue to play the critical role in our economy in order to achieve the goal for Singapore to become a leading international maritime link. Another example would be Sitra Holdings (International) Limited, the international producer of integrated wood based products and turnkey services, secured several turnkey design and build contracts in November 2009. Amongst these contracts, the single largest contract is worth S$3. 24 million at the Marina Bay precinct. 3. Licensing, enables a firm to gain access into new markets otherwise inaccessible, hence to facilitate the growth of licensing activities in Singapore with additional focus on brand licensing, character licensing and know-how licensing, the Franchising and Licensing Association (FLA) aims to encourage the adoption of licensing as a growth strategy by producing a report to raise the awareness of how licensing can translate to income stream for companies. 4. Franchising, in Singapore has grown tremendously and is a preferred strategy for SMEs, as it involves minimal investment and staff, thus reducing costs. Local entrepreneurs have successfully made their mark internationally through franchising like BreadTalk, Charles Keith, and OSIM. Larger companies can also make use of the networks of their established franchise partners to grow globally. 5. Joint ventures enable firms to share the benefit of the work process from a local subsidiary’s knowledge of the host country such as the competitors, culture, political and business systems and access to greater resources including staff specialized in technology, finance, and so on. In November 2009, QATARQatar Petroleum International (QPI) and Shell Eastern Petroleum Pte Ltd have sealed agreements in which QPI takes stakes in two Shell Chemicals joint ventures in Singapore. The deal, to be completed in December, Shell will sell its existing shareholdings in two companies to a new joint venture called QPI and Shell Petrochemicals (Singapore) Pte Ltd. 6. Establishing new wholly owned subsidiaries would be best adopted by firms pursuing the global and transnational strategies, for instance, Temasek Holdings (Private) Limited invested approximately S$900 million in Fraser Neave Limited (â€Å"FN†) through its wholly-owned subsidiary Seletar Investments Pte Ltd1 in December 2006. The investment would represent approximately 15 % of the total shares outstanding of F on a fully-diluted basis. This investment marks Temasek’s most substantial investment in the food and beverage space in recent years. Temasek Holdings Limited (2006)   Country Focus – political economy and cultural factors of Singapore Political and economic systems of Singapore The Government of Singapore (GOS) is substantially consigned to maintaining an open economy and taking a leadership role strategize Singapore’s future economic development. The government does that by adopting a free enterprise, open door policy to attract foreign investors from all types of services sector involving finance, business, tourism, telecommunication and consultancy services. As such, Singapore has exports hitting 186% of 2008 GDP. While Singapore’s stock of foreign direct investment (FDI) increased by 23. 4% from $370. 5 billion in 2006 to $457. 0 billion in 2007. United States, Netherlands, United Kingdom, and Japan were the top sources of FDI in Singapore. Evidently, the high FDI index reflects Singapore’s role as a manufacturing base for foreign multinationals (MNCs) and as a financial, transportation, logistics, and trading hub. Also, with high real growth rate and low inflation played a great role in shaping the Singapore economy. Singapore is one of the most enterprising and dynamic economies in the world. In this section, we compare Singapore’s recent trade performance with its performance in past crises, namely the 1997-1998 Asian Financial Crisis where many countries and industries were affected by the deep fall of exports during the recession and the 2001-2002 Dot-Com Bust where IT industries around the world were affected by the large scale cancellation of electronic orders due to the over-investments by IT firms. In 2008 till present, Singapore is experiencing a slow down in the economy due to the US subprime crisis. The main issue is that the US Subprime Market is generating an extension of recessions in some economies and accelerating global recession in a way. Thus, Singapore’s total output of the country has decreased and the export of electronics goods has reduced significantly. Background to Singapore’s FDI strategy Singapore’s assertive efforts to attain FDI for more support of its economic strategy have enabled the country to develop into a basis for multinational corporations (MNCs). Singapore’s investment promotion agency, the Economic Development Board (EDB), focuses on obtaining major investments in highly valued services and/or manufacturing activities, deepening its industrial and export structure, using selective interventions to capture cross-industry externalities and move away from labour intensive to capital-skill and technology-intensive activities, by acquiring and upgrading the modern technologies in highly internalized forms. From Ijaz Nabi and Manjula Luthria. (2002). This strategy allowed the country to concentrate in specific phases in the production process, depriving from the flow of innovation and investing lesser in its own innovative effort. Singapore’s FDI policies were based on liberal entry and ownership conditions, easy access to expatriate skills and generous incentives for the activities that it was seeking to promote. The EDB was mainly set up to synchronize policy, offer incentives to lead foreign investors into targeted activities, acquire and construct industrial estates to attract MNCs. The public sector played an important role in launching and promoting activities selected by the government, acting as a catalyst to private investment or entering areas. Often it was the efficiency, effectiveness and flexibility of government response that gave Singapore the edge over competing host countries. The importance of inward FDI to Singapore FDI has played a crucial role through the years in accelerating the economic development in Singapore. Being a small country with no natural resources, Singapore had depended on leading international companies not only in bringing in capital funds to broaden her economic base, but also in upgrading the technology and skill content of her industries. Since FDI is one way that Singapore can tap foreign technology, therefore a substantial amount of capital is required to help generate GDP. Furthermore, exchange rate will also play a role in determining GDP. A slow appreciation of the currency will increase the confidence of those who are investing in Singapore and help to attract more investment. The Singapore dollar appreciation will also curb imported inflation. The importance of FDI in Singapore is reflected in the country’s ratio of inward FDI stock to GDP: at 72%, the ratio is the highest in the world. From Wendy Dobson Chia Siow Yue (1997). That importance is also reflected in the fact that 90% of value added in Singapore’s electronics industry (remarkable growth in exports and income) is accounted for by foreign investors, and that FDI accounts for fully two-thirds of equity capital in the country’s manufacturing sector. From Wendy Dobson Chia Siow Yue (1997). In addition, Singapore’s productivity increased fastest in those industries in which FDI was concentrated. The rank correlation coefficients between increases in value added per worker and increases in FDI share and FDI level were . 2 and . 45. Moreover, because foreign direct investors’ profits and outward remittances have tended to move in close tandem with the general performance of Singapore’s economy and the health of its balance of payments, while the economic risk taking function is also borne by those investors, time and again Singapore’s exceptional reliance on FDI has ef fectively cushioned its economy from the balance of payments and debt crises that have hurt many other developing economies. David M, Marchick Matthew J. Slaughter (2008) Host Country policies FDI is attracted to Singapore mainly due to Singapore’s favourable investment climate and strategic geographical location. Some other reasons include non-fiscal advantages, Singapore’s small domestic market combined with no tariffs on most imports and low corporate tax rates have made Singapore into a popular low-risk high-return FDI destination. In general, corporate taxes, or taxes imposed on corporate income, is an important determinant of MNCs’ location decisions, just as individual income tax rates is an important determinant of where a person decides to work and live. Theoretically, other things equal, MNCs would prefer countries with lower corporate tax rates over countries with higher rates. Furthermore, a wide range of new incentives have been added over the years to promote FDI inflows. Burdensome regulations and performance requirements for FDI can offset a generous package of tax incentives. However, in Singapore’s case, the restrictions and regulations governing both the entry and operation of foreign enterprises and personnel are minimal. Overall, foreign investors are subject to the same government regulations as local investors, and both have a lot of freedom in pursuing their profit objectives. In addition to the general absence of performance requirements, Singapore has also signed a large number of avoidance of double taxation agreements, which mutually protect countries for a specific time against war and non-commercial risks of expropriation and nationalization. The four areas of Singapore’s government regulations in different areas relevant to foreign investors are the foreign exchange regime, equity ownership, performance requirements and human resources. First, the foreign exchange regime is highly liberal and freely allows repatriation of capital and remittance of profits, dividends, interests, royalty payments and technical licensing fees, as well as the free importation of goods and services for consumption, investment and production purposes. Second, foreign participation is permitted in most sectors of the economy except for some limitations in the monetary sector, areas of trained and skilled personnel. However, 100% foreign equity ownership is readily permitted. Third, there are no performance requirements for foreign investors such as domestic value-added content and local sourcing of inputs, no restrictions on borrowing from the domestic capital market, and no regulations and restrictions governing the transfer of technology. Fourth, there are only minimal restrictions on the recruitment of foreign personnel; employment passes are required but the government issues these quite liberally. However, the government does encourage foreign companies to hire local managerial and technical personnel. Singapore’s non-fiscal advantages for foreign investors include strategic location, physical and financial infrastructure, human resources, political and social stability, good governance and a foreign investment policy that is liberal, comprehensive and well co-ordinated. Singapore’s location astride major sea and air routes and in the heart of Southeast Asia – an economically dynamic region rich in natural resources – gives it a significant locational advantage in trade and investment. Singapore’s highly liberal trade regime has further reinforced its natural locational advantage and turned it into Southeast Asia’s undisputed trade hub, which, in turn, facilitates the export and import activities of foreign firms locating in Singapore. In addition, Singapore’s time zone advantage, straddling East Asia and Western Europe, enables its financial markets and institutions to perform transactions with Japan, Europe and the US within its working hours. Singapore had reinforced and exploited its strategic geographical location through large investments in physical infrastructure. Comprehensive air and sea transport and telecommunications link the city-state with the rest of the world. The domestic land transportation network is also well-developed and efficiently connects the airport and sea port to the business and financial districts. Singapore’s airport and sea port are world-class facilities that are consistently ranked as among the best in the world. Its advanced telecommunications infrastructure facilitates business transactions with the outside world. Singapore has achieved world-class status in information and communications technology (ICT), while the government has ensured a reliable supply of power and water. Charles Oman (2000)   Industrial estates, business parks and science parks provide ready access to land and factory/office space and industrial, commercial and research facilities and amenities -reduces the capital investment requirements of foreign investors, enables quick start-ups, and promotes external economies of industrial clustering. Singapore is a major Asia-Pacific financial centre, and its well-developed financial markets, large inflows of capital, and abundance of national savings all contribute to the low cost of capital. Charles Oman (2000) . The government’s human resource policy focuses on improving the productivity of the labour force through education and training. Singapore has adopted one of the most liberal immigration regimes in the world in order to expand its quantity as well as enhancing its quality. In terms of education, the government emphasizes technical and vocational education below tertiary level to provide a growing pool of technically competent workers, along with rapid expansion of engineering, business and computer science education at the tertiary level. Women were also encouraged to enter the workforce in a bid to boost the female labour force participation rate. Another major selling point of Singapore for foreign investors is its well-known socio-political stability and good governance. Its political background is well-secured and there is no history of incidents concerning politically motivated damage to foreign investments in Singapore. Not to mention that Singapore ranks as one of the least corrupt country in the world. Singapore has, and dynamically enforced, strong and solid anti-corruption laws. Political stability and an honest and effective political leadership and government have always been key elements in Singapore’s favourable business environment. A pro-business government policy environment and high-quality civil service complements Singapore’s excellent infrastructure and public capital. A remuneration system of paying relatively high salaries to civil servants attracts a constant stream of talented individuals to work for the government. World-class infrastructure and world-class government combine to offer a highly favourable environment for doing business. Singapore is consistently ranked among the most competitive countries in the world terms of providing a sound business environment. According to the World Competitiveness Yearbook (WCY) 2005 by the Institute for Management Development (IMD), which ranks nations’ business environments by analyzing their ability to provide an environment in which enterprises can compete effectively, in 2005 Singapore ranked 3rd among the sample of 60 major industrialized and emerging economies. The FDI has increased and better enhanced the quality of Singapore’s entrepreneurial, managerial, marketing, technological and manpower resources. FDI had significantly contributed to higher exports and economic growth. However, further investigation also suggests that continuing large inflows of FDI may not be fully absorbed by the economy due to the scarcity of land and shortage of labour. This may lead to crowding out of domestic entrepreneurs. In order to overcome this problem, more domestic entrepreneurs are needed to emerge and invest outward so as to reduce the reliance on FDI. The outcomes of Singapore’s strategies at attracting inward FDI Recent FDI Since 2003, one of the most active sectors in attracting FDI is the chemical sector. Through its subsidiary Faci Asia Pacific Private Ltd. , Faci SpA, has invested approximately US$5 million in a second metal stearate plant on Jurong Island, Singapore’s chemical complex. And in 2006, GlaxoSmithKline (GSK) has developed a special relationship with the country, opening a number of ventures, with its investment in an antibiotics plant in the Tuas Biomedical Park. Not to mention, the Integrated Resorts have unnoticeably boost the foreign investments scene in Singapore and the many efforts made by the government to attract and sustain FDI such as, the revamping of Orchard Road for reportedly $40 million and establishing of the Circle line to facilitate travelling which completes just in time for the Youth Olympic games in 2010. Conclusion For Singapore to attract and sustain FDI in all aspects, the structure that supports innovative activities must be further reinforced such as increasing research ability in public and private sectors, the availability of skilled human resources, policies to strengthen RD infrastructure and so on, so as to foster innovation and local development. Although Singapore’s education system and its no tariffs on most imports and low corporate rates are its main elements of attraction, there is always room for improvement. Summing up, the study of the strategies adopted by Singapore to attract inward FDI, the challenges that occurred, results and future directions were critically analyzed and supported with references and findings. Although Singapore is a very attractive destination of FDI, it still has a few areas where improvements can be made in order to maximise economic growth, profits and strategic development. So long as Singapore keep up with trends in the shift towards services, develop cross cultural literacy to avoid being ill informed, sustain its competitive advantage, ensure accessibility of government information to foreign investors and continue to invest in the up and coming, biotechnology industries, it will continue to prosper. REFERENCES: Ijaz Nabi and Manjula Luthria. (2002) Building competitive firms, incentives and capabilities, Washington, DC, The World Bank. Wendy Dobson Chia Siow Yue (1997) Multinationals and east Asian integration, Canada Singapore, International Development Research Centre. David M, Marchick Matthew J. Slaughter (2008) Global FDI Policy, correcting a protectionist drift, USA, Council on foreign relations. Temasek Holdings Limited (2006) announces investments in Fraser Neave Limited URL:http://www. temasekholdings. com. sg/media_centre_news_releases_081206. htm Charles Oman (2000) Development centre studies, Policy competition for foreign direct investment, A study of competition among governments to attract FDI, USA, OECD. Abraham A. Azubuike. (2006) Accessibility of Government Information as a Determinant of Inward Foreign Direct Investment in Africa, ECA Library, United Nations Economic Commission for Africa Addis Ababa, Ethiopia URL:http://ifla. queenslibrary. org/IV/ifla72/papers/100-Azubuike-en. pdf SPRING, franchising and licensing association (Singapore). URL:http://www. spring. gov. sg/EnterpriseIndustry/LEAD/Pages/lead-fla. aspx WINDS, Multilateral Agreement on Investment, URL:http://www. apfn. org/THEWINDS/archive/economy/mai11-97. html How to cite Theories of Foreign Direct Investment, Essay examples

Game Theory Wireless and Communication Networks

Question: Discuss about theGame Theoryfor Wireless and Communication Networks. Answer: Part B The game is being played by two people James Dean and Buzz Gunderson. The first person is declared as chicken and the last person is a hero. The objective of two people is to get the favour of Judy. In order to play the game, they have to take life risk. The payoff matrix shows the outcome of each strategy taken by James and Buzz. If James chooses to be chicken, Buzz will choose to be rooster as will give higher payoff (50,100). The person jumps later from the car, will be the hero. If both of them choose to get out of the car at the same time, they will get the equal payoff of (70, 70). If nobody comes out of the car, both of them will be loser to get (0,0) and life will be in danger. A strategy is become dominant, when a player chooses a strategy every time, irrespective of what the opponent chooses. A player has always the highest payoff or utility from the dominant strategy compared to any other strategy (Myerson 2013). At the start of the game, both think to be a hero in order to get favour of Judy and to get the highest payoff of 100. If James chooses to be chicken, he is better off if Buzz is also choosing chicken. If James chooses to be rooster, his payoff will be the maximum if Buzz chooses to be chicken. Chicken is the dominant strategy for both the player as (70, 70) is the optimum strategy for both of them. This is the weakly dominant strategy as for other options, there is risk of losing. (70, 70) is as good as any other strategy. This strategy is not strictly dominant; there is an internal desire of being a hero making the opponent fool. (50,100) and (100, 50) are therefore dominated strategy. Buzz Chicken Rooster James Chicken 70 , 70 50 , 100 Rooster 100 , 50 0 , 0 The above payoff matrix shows the outcome of different strategies. As (70, 70) is the dominant strategy, other strategies are dominated strategy. Choosing Rooster is the dominated strategy for both James and Buzz. As (70, 70) is the dominant strategy for both of them, Buzz assumes that James never plays Rooster and the Buzz also thinks the same. Therefore, from the view point of James, the payoff matrix will be Buzz Chicken Rooster James Chicken 70 , 70 50 , 100 James also thinks that Buzz will never wish to become rooster, as there is life risk. The payoff matrix from the view point of Bazz is Buzz Chicken James Chicken 70 , 70 Rooster 100 , 50 Given opponents expected payoff, both are likely to maximise their own payoff, which is at least as good as other payoffs. Hence, both are likely to choose to be a chiken and will end up to (70, 70) outcome. This is the outcome in the elimination process of dominance. As there is a life risk and both James and Buzz feel the endangered at the same time, they choose to be the chicken before plunge to the rocks. Hence, the optimum outcome would be (70, 70). This is the weak dominance strategy. If James chooses chicken, there is a fear that Buzz may choose rooster. As there is no negotiation between them, everyone thinks about the worst situation of getting nothing. Hence, both want to minimise their risks. Therefore, (70, 70) is the optimum strategy for both James and Buzz. This is the pure strategy Nash equilibrium of this game as this more likely to happen compared to other strategy. The game is played through maxi-min strategy. Everybody wants to maximise the payoff among the minimum as the payoff matrix is the combination of both good and bad outcome. In the view of Colman (2014), this is the low risk strategy. The logic behind this game is to get something instead of nothing. Therefore, the minimum expected payoff from both the player is the optimum outcome as the game strategy is risk reduction. In this game, it is better to save life instead of getting favour of Judy. One-Shot Simultaneous Game Firm 1 has three options, while firm2 has only two options. There is no dominant strategy for any of the firm. From the view point of firm 1, it chooses offer discount if firm2 chooses advertising campaign. If firm2 does nothing, advertising campaign is the optimal strategy for firm1. Now, from the view point of firm2, it chooses advertising campaign if firm1 does advertising or offer discount. However, its strategy changes if firm 1 does nothing. Doing nothing would give firm2 the higher payoff. No firm has strictly dominant strategy. Do nothing is the dominated strategy for firm1. The dominated strategy for firm1 is (0,0) and (3,5). Do nothing is the dominated matrix of firm2. For both the firms, this is the weakly dominated strategy as no one has strongly dominant strategy. The payoff matrix of by dominance is Firm 2 Advertising campaign Firm 1 Advertising campaign 1,2 Offer discounts 2,2 Firm2 has only option of advertising campaign, while firm1 has two options such as advertising and offer discounting. Given this framework, firm1 chooses offer discount to maximise its payoff. Hence, (2, 2) is the equilibrium outcome by dominance. If firm2 chooses advertising campaign, firm1 tries to maximise its outcome by choosing offer discount. If firm2 chooses do nothing, firm1 chooses advertising. When, firm1 chooses advertising or offer discount, firm2 chooses advertising. When firm1 chooses do nothing, firm2 will do nothing. The pure strategy Nash equilibria are (2, 2), (4, 1) (1, 2), (3, 5). Outcomes in (a) and (c) differs as the first one is based on pure Nash equilibrium strategy. The second one is based on the elimination of dominated strategy. Two methods are different. In the first case, the player considers all the strategy of the opponents and plays the game. In the second case, the dominated strategy is completely ignored by the player. Financial Literacy Summary of the Video The central idea of the video is risk diversification. It has been argued that people should not investment all the money in a single stock of a company or in a single share. If the company loses for any financial crisis or downfall in business, all the shareholders lose at the same time as they share both the profit and loss. Hence, the right way to diversify the risk is to put the savings in a portfolio, which consists of both risk free and risky assets and shares of different companies (Dresher, Shapley and Tucker 2016). It has been argued that investment in human capital, education is necessary to have a better life in future. However, more saving and less spending has negative effect on the economy in short run (Aumann and Brandenburger 2016). This is termed as paradox of thrift. Hence, people need to balance between saving and investment and need to choose right investment strategy to shape their life. The interesting topic in this video is paradox of thrift. As per general saving investment theory in long run, all savings are assumed to be invested. However, in much economy in Europe, it has seen that GDP has fallen despite having high saving rate (Han 2012). When people save more, they reduce their consumption expenditure. Therefore, aggregate demand falls in the economy. Excess supply creates in the market in the short run and hence, aggregate supply reduces and investment in the economy falls. Therefore, it is argued that excessive saving is not beneficial for the economy. Is paradox of thrift can sustain in long run? References Myerson, R.B., 2013.Game theory. Harvard university press. Colman, A.M., 2014.Game theory and experimental games: The study of strategic interaction(Vol. 4). Elsevier. Dresher, M., Shapley, L.S. and Tucker, A.W. eds., 2016.Advances in Game Theory.(AM-52)(Vol. 52). Princeton University Press. Han, Z., 2012.Game theory in wireless and communication networks: theory, models, and applications. Cambridge University Press. Aumann, R.J. and Brandenburger, A., 2016. Epistemic conditions for Nash equilibrium. InReadings in Formal Epistemology(pp. 863-894). Springer International Publishing.