Birth Order

This paper ought to review and study the possible connection between child order and personality, with respect to the theory as proposed by Alfred Adler. The paper would take a look at what the theory is all about and whether there are enough evidence that could support Adler’s claim.Alfred Adler has been one of the pioneers of psychoanalysis, although he ventured away from some of Sigmund Freud’s theories.   It was due to their difference in ideas and contextual analysis that the separation from the Psychoanalytic school happened.   Adler created his own school of psychology which he called â€Å"Individual Psychology†. In this group, the concern focused on the so-called inferiority complex that humans possess (Ansbacher, 1964).With respect to Adler’s theory, humans are originally weak and helpless. Humans are born without knowledge and must always be guided by those who are â€Å"superior† or by someone who is older (Ansbacher, 1964).Because o f this, children strive to learn further and try in every way to exceed or at least achieve the same level as those people whom they perceive to be superior to them. This is what Adler speculated as the â€Å"inferiority complex†, the driving force that fuels a human’s emotions, actions and reasons (Mosak, 1999).According to Adler those people who strive to become the best or those who try in every way to succeed are people who have very high inferiority complex, while those who are easy-going are more likely less affected by the inferiority complex (Mosak, 1999).However, a very strong inferiority complex might also have a negative effect on a particular person, most specifically when the person has failed in most of his/her endeavors. These experiences might leave the person feeling wrecked, hopeless and unmotivated to strive towards future goals because of the overwhelming failure that the person has encountered.Adler supported Freud’s hypothesis concerning th e effects of parenting styles on the life of the person. Adler hypothesized that there are two parenting styles, pampering and neglect, which affect the life of adult person.Pampering would be the process in which the parent gives too much attention to the child and protects the child, so that the child is presented with an ideal world.   This does not help the child develop into a full social individual. Due to this kind of treatment, the child might develop a severe inferiority complex and might be shocked when faced with the realities of life on their own. (Drescher & Stone, 2004)  The child might not be able to perform well on his/her own because he/she was used to the experience of having his/her parents on his/her side whenever problems arose. Also the child would be doubtful not only of his/her abilities but also of the decisions that he/she makes.With regards to the neglectful parenting style, the child is said to be exposed to all the extremes and problems that the worl d can offer.   Since the child was left alone, he/she might be force to struggle on his/her own which leads to his/her mistrust to the people around him/her.   Because of this, the child reared under a neglectful parenting style finds it very hard to create or build relationships with other people especially with his/her peers. (MacDonald, 1971)Therefore, Alfred Adler believed that parents shall make sure that the child was protected from the evils of the world at the same time the parents are obligated to present to the child the harsh realities of life. (Stein, 2007) Simply put, the child must be protected but that does not mean that the parent would deny them the knowledge and opportunity of knowing how to solve problems independently.Aside from parenting, another aspect that greatly affects a child’s performance in his lifetime according to Adler is his/her birth order. Indeed, this assumption has since garnered criticism and support from psychologists and social scie ntists.According to this â€Å"theory†, the birth order of the child determines how he views himself as a person with respect to how the child is treated in his family. It is also the factor which is responsible for the behavior and personality of the person in his adult life. (Stein, 2007)The Firstborn:According to Adler’s theory, the firstborn of the family is treated with outmost care and spoiled before the other siblings arrived. The situation for this child starts out with excited parents and the child usually has everything he/she needs. When the younger sibling is conceived there is a sudden shift of attention of the parents. The new baby now receives more attention that the firstborn child. Thus the firstborn, in Adler’s theory, tries his/her best to regain this attention. The child desperately seeks the return of his/her parents’ full love and interest. (Stein, 2007)Most firstborns feel dethroned by their younger siblings because they now have to share everything with the next child; thus, a firstborn learns to share. Also, the firstborn are given more responsibility than the other children, since they are the eldest; this could cause them to develop an authoritarian persona. (Mosak, 1999)  The parents’ expectations for the firstborn are usually very high; they are pushed into the situation of being responsible and setting an example for their younger siblings. These experiences might led the first born child to develop the qualities of a good leader, although usually firstborn children have lower self confidence than other children. (Stein, 2007)The Middleborn:Middle children do not encounter the same expectations and are not spoiled as the firstborn; however, they still get a portion of the attention that the firstborn child enjoys. What makes being the middle child interesting is that they not only experience a drive to be superior to the first child, but also must compete for attention and status among the youn ger siblings. These experiences could cause inferiority with reference to their older siblings but superiority with reference to their younger siblings. (Stein, 2007)

Social Science

SOCIAL SCIENCE THEORY ESSAY Most of the things we know about human? s behaviour has come out because of the different psychological theories. We may question why there are so many different psychological perspectives, which one is right and which one is wrong. Most Psychologists nowadays would say that none of the theories are correct. However, in the early days, the Psychologists would agree that all the theories were the only truly scientific one. Psychology is a science dedicated to the study of our mind and behaviour. There are different ways of understanding the human mind and behaviour, those ways are called perspectives.A perspective is basically a point of view or a way of considering how some things are linked together and their importance. Sigmund Freud known as the father of psychoanalysis was a famous physiologist, medical doctor and an influential thinker of the early twenties. Freud was the one who created a new method to understand the human personality. He had one of the most provocative minds of the last century. Freud was the one that improved the theory of psychodynamic psychology and the famous treatment known as psychoanalysis.Freud was one of the most brilliant thinkers in the last century, he brought public attention by his ideas of we usually are not conscious of the aspects of ourselves. He believed that what people are conscious of is symbolized in our minds, memories and feelings. Freud believed that the things we experienced in the past are part of our mind that he called the unconscious. However, we are not able to access the contents in our unconscious, they often appear in our dreams. Freud described the unconscious mind has an iceberg where only a very small part of it is accessible to awareness.The part of the unconscious that he believed it can be accessed very easily he named the pre-conscious. The importance of an early experience is evidently illustrated by Freud’s development theory of psychosexual development. He de scribed that each stage of our life concentrates on a part of the body that is relevant at that stage. If the needs of the individual are achieved on that stage, the he or she was ready to go into the next stage. However, if the individual struggles to achieve that stage then he or she becomes stuck in this stage.Freud believed that these results are the ones that we carry through into the adulthood and it can possibly explain our behaviours later in life. Stretch and Whitehouse (2010) The early stage of an individual is called the oral stage. The focus on this stage is on the mouth and activities like, sucking, licking and biting. Freud believes that there could be two reasons for fixation. If the infant was discouraged two early, It could make the infant feels unsatisfied and the infant could become a negative, sarcastic person.If, in the other hand, the infant was over-gratified, the infant could develop a gullible personality, easily trusting in others and with a tendency of swa llow anything. The early stage lasts from birth to approximately 18 months. Stretch and Whitehouse (2010) If the infant gets through the stage with no problems, the next stage is called the anal stage, where the infant focuses on aspects to do with potty training. If there is a fight between the parents and the child during the potty training or if the child does not feel comfortable while potty training, they may rebel by retaining their faeces.This type of fixation is called anally retentive. The child is not given the opportunity to enjoy potty training so the child can become a very disorganised person. During the ages of four and five, the child passes through the phallic stage. Freud believed that this stage is associated with nervousness and guilt feelings about sex and fear of castration for males. If this stage is not passes successfully, this theory suggests that a boy could become homosexual and a girl could become a lesbian. Freud thought these were abnormal fixations bu t nowadays most people would not view them in the way Freud did.When the child reaches the age of five until the age of seven, the child gets into the latency stage where he or she focuses on the social environment and the development of friendships. The final psychosexual stage is the genital stage in which the puberty begins. Freud believed that the less fixated the individual has become during the earlier stages, the more easily this stage will be negotiated, resulting in the ability to form strongest heterosexual relationships with an ability to be warm and loving as well as to receive love in a new, mature fashion.Overall, Psychoanalysis is usually used to cure depression and any type of mental illness. Psychologists also believed that their therapy would release repressed emotions, it would make the unconscious conscious. Functionalism is known as a sociological aspect that sees the society working in peace and harmony with each other, making an enormous contribution to the sm ooth running of the society. The society works together using social methods to control and deal with deviant members of groups, to make sure the society functions smoothly.Talcott Parsons was an American sociologist who helped in the development of functionalism and sociological aspects. He believed that society was a system made of interrelated institutions and for that reason, the society would run smooth. He also believed that the main role of an institution was to socialise individuals and make sure they were able to understand the values of the society and behave in an acceptable way. Functionalism says that everything and everyone in the society serves a purpose, no matter how strange it may seem. For example, crime is viewed universally as trouble.Functionalists, however says that crime serves several purposes. They believed that crime is needed for the employment of criminal investigators, police officers and other people related fields to work. If at any moment crime disap pear from the planet, thousands of jobs related with crime would no longer be necessary. Stretch and Whitehouse (2010) Functionalism received some criticism for forgetting the negative aspects in events such as divorce. Critics also declare that the perspective of functionalism justifies the statues of quo and complacency on the part of society members.Functionalism does not persuade people to try to change their social environment, even if those changes could benefit them. Functionalism is also criticised for its lack of testability. Functionalism is described as the most generalized and unproductive of the sociological schools. It is not logically sync with variability between cultures and it does not explain the changes in the society. Marxism was first developed by a German Philosopher called Karl Marx. He considered that individual behaviour was shaped by society but he believed that the economic system defined society and people? place within it. Marx held the views that the i ndustrial society of his time there were two social classes: The bourgeoisie or capitalist that were described as a small powerful group who owned all the factors, offices and the other places of employment and the Proletariat that were a much larger and poorer group that were employed by the capitalists. Stretch and Whitehouse (2010) Marx’s view was that those two social groups would always get into conflict as the capitalists were the ones that owned the offices and they would want higher profits.In the other side the employees, the ones on the proletariat group, would ask for higher salaries. That is the reason that Marxism is usually called the conflict model. Marx believed that those conflicts between the capitalists and the proletariat could cause a revolution. Feminism is often seen as an example of a conflict model. Abbot and Claire Wallace (1990) were two women who argued about the male domination in the society. They said the society did not pay enough attention to the issues of the women and their place in the society.There are three different types of feminism: Marxism feminism, Radical feminism and Liberal feminism Marxism Feminists see women as a working-class. They believed that women meet the social, emotional and physical needs of their children and they are ready to work for their family and children on the future. Women know how to maintain their husbands or partners, they are good at cooking meals and they take care of their children properly without being paid. Stretch and Whitehouse (2010) Radical feminism believes that it is not the capitalism or social life that dominates women, but men.They say that women are housewives and mothers. They believe there is not equality between the sexes and women are only needed to take care of the children and do house work Liberal Feminism agree that the changes happening now and the one that will probably happen in the future such as the changes of attitudes, equal pay and sex discrimination br ought more equality between the two sexes. Marxism claims that the health problems people have are closely related to the unhealthy and stressful work environments.Marx believed that health problems are not the result of individual weakness, but the unequal social structure and class disadvantages that are reproduced under capitalism. Marx believed that the patterns of mortality and illness are probably related to occupation, especially in the case of industrial working class. Marxism argues that medicine is not an independent discipline, but a sector of economic production which respond to the political needs of the capitalist system as a whole. Some Marxists argue that the NHS benefits the bourgeoisie by ensuring that their workers remain well enough to work.Most of those workers understood their inequality but believed that the system was fair. Marxism discussed that the free health service was a victory for the proletariat, the working class, as the bourgeoisie used to get the b est care first. Marxism received some critics for not paying attention to the dynamics of the medical process, the experience of illness and the state of being a patient. Turner (1987) believed that the Marxist political economy of health needed to address how the diversity of capitalist societies was related to medicine, health and illness.The knowledge of the medical practitioners plays a very important role in providing health care. However, the primary purpose is to regulate the working classes and the popular masses. Navarro (1986) Emile Durkheim was a French sociologist who focused on different types of suicides. Durkheim believed that there is not any society in which suicide does not exist. Durkheim’s theory of suicide adds a lot for the understanding of the phenomenon. However, he has laid too much stress on one factor which is suicide. He has undermined other factors.Durkheim believed that suicide is not something individual or private, it happens because of somethi ng powerful that stays over and above the individual. Durkheim viewed that: â€Å"all classes of deaths resulting directly or indirectly from the positive or negative acts of the victim itself who knows the result they produce†. Nowadays loads of doctors and psychologists believe that the majority of people who commit suicide are in a pathological state. However Durkheim believed that people take their own life because of social reasons.Emile Durkheim categorized different types of suicides basing on the different relationships between the individual and the society. Egoistic Suicide is when an individual isolate himself from the society. The individual usually feels that there is no place for him or her in the society. In many cases the individual has lack of altruistic feelings. Altruistic suicide happens to people who are too close and intimidate to the society group. This type of suicide often results from the over incorporation of the individual into social proof.Accordi ng to Durkheim Anomic suicide happens when there is a breakdown of social equilibrium. For example if someone is really rich and goes bankrupt. Fatalistic suicide happens when there is an overregulation in the society. For example if a slave commits suicide, it is called a fatalistic suicide. Conclusion To conclude my essay is clear that Marx, Freud and Durkheim had a big impact in our society. I believe that without their theories our society would not be the way it is now. References â€Å"Health and social care level 3, M. Stretch and M. Whitehouse, First published 2010†

The Simple Present Tense of Verbs

In English grammar, the simple present tense is a form of the verb that refers to an action or event that is ongoing or that regularly takes place in present time. For example, in the sentence he cries easily, the verb cries is an ongoing action that he easily does.   Except in the case of the word be, the simple present is represented in English by either the base form  of the verb like in I sing or the base form plus the third-person singular -s  inflection  as in She sings. A verb in the simple present tense can appear alone as the main verb in a sentence; this finite  verb form is called simple because it doesnt involve aspect. In English grammar, there are seven accepted functions of the usage of the simple present for of verbs: to express permanent states, general truths, habitual actions, live commentary, performative actions, past time or historic present, and future time. Basic Meaningof the Simple Present There are a variety of uses for the simple present in verb conjugation, but mostly it serves to keep the sentence structure itself grounded in the events happening presently, or as they relate to the here and now. Michael Pearces The Rutledge Dictionary of English Language Studies expertly lays out the seven commonly accepted functions of the simple present form of verbs: 1) Permanent state:  Jupiter  is  a very massive planet.2) General truth:  The earth  is  round.3) Habitual action:  Her daughter  works  in Rome.4) Live commentary:  In each case I  add  the two numbers: three plus three  gives  six . . ..5) Performative:  I  pronounce  you man and wife.6) Past time (see historic present):  He  moves  to the window alongside, and  sees  her inside the office moving away from the door. He  shoots  twice through the window and  kills  her.7) Future time:  My flight  leaves  at four thirty this afternoon. In each of these cases, the simple present serves to keep the verb form in the here and now, even when referring to past or future actions, the sentence is grounded in the present by these verbs, but there are more ways than one to express the present. Simple Present Versus Present Progressive As far as English grammar goes, the simple present does not fully function in describing ongoing events and instead the present progressive form of a verb must be used, although the simple present may be accepted colloquially to entail an ongoing action. Laura A. Michaelis describes this relationship through the example of the verb falls in Aspectual Grammar and Past Time Reference, wherein she says present-tense event predications, if intended as reports upon circumstances ongoing at present, must appear in the present progressive. In the instance of he falls, then, the verb may be interpreted as habitual, but it would be better to use he is falling instead. Using the present progressive, therefore, is more correct than using the simple progressive when stating something as ongoing rather than habitual.

How Does Perceptual Skills Affect Children Become Part Of...

How do perceptual skills in the first few months of life help children become part of the social world? Discuss with reference to developmental theory and research. During the first 6 months of life, an infant develops many perceptual skills that help them to become part of the social world. Perceptual skills are rapidly learnt by the infant through human contact and tuning into the environment around them; infants use their senses to grasp a basic understanding of their surroundings. All infants are born with innate reflexes; that help them engage with and become part of the social world these include; sucking, grasping, and looking (Leman, Bremner, Parke Gauvain, 2012). Bowlby (1958, as cited in Meins, 2003) described how an†¦show more content†¦These help the infant to be active in their own development by organising their initial schemas (a unit of knowledge which are initially an infant’s innate reflexes) then adapting them to new found schemas (voluntarily using reflexes for satisfaction) thus constructing their own social world (Piaget, 1952, as cited in Leman et al., 2012). Piaget’s theory has been criticised for underestimating an infant’s abilities; especially the timings in which an infant is able to carry out a particular behaviour. So it’s difficult to pin-point an exact time frame of development. However, his theory is still heavily influential, maintains empirical validity and preserves heuristic values by stimulating many hypotheses today. Visual perception is the â€Å"process of organizing and interpreting visual sensory stimuli.† (Kavale, 1982). An infant’s vision is a perceptual skill that rapidly develops at 2 to 3 months of life (Courage Adams, 1996). The visual acuity of a newborn is initially very poor, but this improves rapidly during the first 6 months (Maurer Lewis, 2001). This is when the fovea is fully developed; making vision clear (R. Wilson, 1988). Clear vision enhances chances of survival from an evolutionary perspective; so the development of perceptual skills in an infant’s first few months of life is crucial for their survival and ultimately

Merchant Of Venice Analysis - 1046 Words

Gift giving is a long thread that proves to weave the characters of Shakespeare’s The Merchant of Venice together. French anthropologist, Marcel Mauss, proposes that gift giving, although seen as a generous offer, is actually guised as formal and social deception (pg 1). The formal and social deception that Mauss speaks about is what we colloquially express as â€Å"you scratch my back, I’ll scratch yours.† In the Merchant of Venice, there is a consistent back and forth of gifts given under the pretense of the future upholding of favors. The assumption of the upholding of a favor tends to be unspoken, but yet, not any less expected. There is an inherent collecting of gifts; gifts that rack up and need to be repaid in some way, shape or form.†¦show more content†¦The extreme kindness portrayed by Antonio here elicits an equally extreme response from Bassanio to prove his worth and gratification towards Antonio: â€Å"I owe you much, and like a willful youth That which I owe is lost; but if you please To shoot another arrow that self way Which you did shoot the first, I do not doubt, As I will watch the aim, or to find both Or bring your latter hazard back again And thankfully rest your debtor for the first â€Å" (Act 1.1 Ln: 146-152) Bassanio has previously been in debt to Antonio, yet here is expressing gratitude and imploring Antonio to take another chance on him. The kindness that Antonio portrays is a gift to Bassanio. A gift that Bassanio does not thing he is worthy of hence, why he makes an unnecessary case to Antonio for lending him money. The way that this gift plays out is rather interesting. After Bassanio secures a loan and the hand of Portia, he is now able to pay back Antonio using Portia’s money easily. Yet, the actual monetary value of the loan is no longer the issue now. Upon hearing that Antonio’s ships have been destroyed andShow MoreRelatedAnalysis of The Merchant of Venice Essay513 Words   |  3 PagesAnalysis of The Merchant of Venice William Shakespeares play The Merchant of Venice is based on a simple enough plot, but it gives a more complex view of the characters involved. It portrays each characters attitude, opinions and actions and shows how they affect the other characters. ====================================================================== Shylock is perhaps the most noteworthy character. He is centred on most of the plays events. Throughout theRead MoreAnalysis Of The Movie The Merchant Of Venice 1918 Words   |  8 PagesPerformance Analysis of T he Merchant of Venice Jordan Thomas Mullineaux-Davis William Shakespeare has regularly throughout time been referred to and could be viewed as anti-Semitic because of the cultural implications within many of his plays. A particularly strong example of this could be The Merchant of Venice. This essay will explore arguments of post-colonialism within The Merchant of Venice, discussing the pertinent issues of anti-semitism, racial isolation and prejudice. It will also commentRead MoreAnalysis Of Merchant Of Venice And Frankenstein 1179 Words   |  5 Pages Preconceptions In both Merchant of Venice, by Shakespeare, and Frankenstein, by Mary Shelly, identities, prejudices, and judgements are constantly put to the test. 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Their intention is dependent upon the safety of AntonioRead MoreMerchant Of Venice Film Analysis1309 Words   |  6 PagesThe movie adaptation of The Merchant of Venice, directed by Michael Radford in 2004, is the first full-length sound film in English, of Shakespeares play. Radford’s adaptation helps the modern day moviegoer understand the complexity of the plays sensitive and controversial topics. There are a litany of differences between the two. However, the storyline and themes remain closely in line with one another. The film differs from the play in some chronological instances. For example, the play has LorenzoRead MoreMerchant Of Venice Critical Analysis Essay1001 Words   |  5 PagesThe Merchant Of Venice is structured partly on the contrast between ide alistic and realistic opinions about society and relationships. The play tells us mercy is preferable to revenge. Shylock chose revenge over mercy against Antonio and how his choices affected him. 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The Effects of Sleep Deprivation free essay sample

A person hitting the snooze button every morning in order to wake up on time is more than likely, suffering from sleep deprivation. It is a problem that can cause harm to the body and personality. Some of the most common health issues a person will endure is cognitive deficiencies, hypertension and weight gain. It has even been argued that sleep deprivation can affect you just as much as being drunk. Unfortunately, with lack of sleep come many unwanted side effects, including impaired cognitive skills needed to function on a daily basis. Depriving the body of necessary rest can and will diminish the brain’s capability of concentrating, henceforth making sound decisions. Sleep deprivation has also been known to impair a persons’ response speed, including perception functions. Being able to react quickly is a crucial skill needed when driving, especially if something jumps in front of your car and you need to come to a screeching halt. We will write a custom essay sample on The Effects of Sleep Deprivation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In addition to cognitive deficiencies, not allowing the body to get an adequate amount of sleep can cause hypertension, also known as high blood pressure. Chronic sleep deprivation effects on blood pressure are a scientific fact. If you consistently have poor sleep and you have high blood pressure, you are putting undue pressure on your heart and blood vessels. This dangerously increases your risk for heart disease and premature death. Moreover, if you do not have high blood pressure, but suffer from sleep deprivation several nights a week, you are putting yourself at a higher risk of developing high blood pressure. Delayed correction of sleep deprivation can also inhibit your body from being able to break down sugar leading to obesity and diabetes. Just like abnormal sleep cycles negatively affects the body’s blood pressure it also can cause weight gain. Lack of shut-eye could be behind those unforeseen pounds mysteriously packed on. When an individual is sleep deprived, over time, the body will have hormone changes in your brain that causes the body to believe it is hungry. Due to this, a person will eat more and will force the body over time to store fat; thus causing weight gain. Irregular sleep patterns coupled with eating more equals a dangerous formula for diabetes and obesity. In essence, getting enough sleep will play an integral part in how the body functions daily. It has been said that an individual should get at least seven to eight hours of sleep nightly to ensure the body is well rested. If one does not get adequate or good quality sleep, their health can be negatively affected. The simplest way to avoid the adverse effects of sleep deprivation would be to make a positive change in lifestyle.

The effect of the global financial crisis on political and financial risks

Introduction The current global financial crisis is one of the worst financial crises in history. It has affected many businesses and individuals all over the world. Businesses have closed down and many people have lost their jobs. Uncertainty, political risk and financial risk have also increased (Global Economics Crisis Resource Center, 2009). The negative effects of the global financial crisis have been felt in most parts of the world i.e. in the advanced countries, the emerging markets and in the developing world (Yadav 2008).Advertising We will write a custom essay sample on The effect of the global financial crisis on political and financial risks specifically for you for only $16.05 $11/page Learn More The global financial crisis According to Allen and Synder (2009), the global financial crisis is a disturbance in the economic environment which brings about a drastic drop in the value of assets, failure of financial institutions and a disruption o f the stock exchange (p.36). Business organizations begin to cut costs so as to avoid liquidation therefore the unemployment rate escalates. he purchasing power of many companies and households is reduced as prices of commodities soar. Interest rates, real estate, international investments and international business are also affected. The high cost of doing business in such an economic environment drives many companies to restructuring or closing down the company (p.37). Toporowski (2009) asserts that International business operations have particularly been affected by the global financial crisis because most target markets have cut expenses due to the crisis (p. 162). Therefore the political and financial risk associated with international business has increased. Multinational companies are unable to avoid the effects of the financial crisis and will have to succumb to the constraints in the markets that they operate in. However, different firms are affected to a varying extent dep ending on the markets that are targeted and where the finances are focused (Toporowski 2009)). The effect of the global financial crisis on the tourism industry in Australia As with most other industries, the tourism industry has been affected by the ongoing global financial crisis. The services sold can only be used on site therefore stable conditions are necessary. The tourism industry in Australia is at an all time low and this has increased the political and financial risks associated with the industry (Elks Roberts 2008). The Australian tourism industry depends heavily on international visitors therefore there are numerous challenges that are being faced due to the reduction in expenditure for luxury. Tourism globally has been exposed to increased political and financial risks due to the global recession.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Investment in the Australian tou rism sector is very low as most investors are delaying, reducing or even canceling investment ventures. Therefore there is reduced business from foreign investors. In addition, investors are also careful because the political atmosphere in Australia may become volatile due to the recent elections and the effect of the financial crisis (Geoff Carmody associates 2009). Political risks Political risk is the risk of financial, strategic or human loss due to political issues in a country. It is the likelihood that a business or investors will lose money or make less revenue than expected because of political decisions and events in a nation. Political risk that is most commonly experienced by the companies involved in international business is transfer risk which is a situation whereby it is not possible to send out currency from a country because of central bank restrictions (Hendrix 1991). From history, it is evident that economic instability usually creates political instability. For instance, there was a decrease in the political instability of many countries since the end of the cold war. This means that the financial crisis can bring about problems such as riots, violence and increased criminal activity. The increase in piracy activities at the Horn of Africa is has been largely attributed to the global financial crisis because of heightened poverty and costs of living. This situation could therefore worsen an already troubled economic situation. (Othieno 2008) There have already been several cases globally of social unrest which have been linked to the financial crisis. In Bulgaria, anti-government protests were held in a bid to push the government to bring reforms in the economic and social sectors. Vehicles were damaged, windows smashed and businesses affected by the riots that ensued. In Lithuania, protestors threw stones at parliament as they demanded that the government reduce its spending because of the economic crisis. One of the worst cases of civil unrest was in Madagascar where more than 100 people were killed when violence erupted during a demonstration. (Thinking Shift 2009) In light of this, the global financial crisis has increased the political risk that organizations engaging in international business and international direct investment face. Hendrix (1991) asserts that a stable and safe political environment is important for the success of International business. If the environment is not stable, there will be a drop in the tourism and foreign direct investment in the tourism industry.Advertising We will write a custom essay sample on The effect of the global financial crisis on political and financial risks specifically for you for only $16.05 $11/page Learn More Financial risk Financial risk in the international market has been transformed due to the global financial crisis. Problems that have arisen include inflation, intensified competition in the international market, uncertainty, cr isis in the financial markets and increased market volatility. Financial institutions and international business are finding it difficult to increase profits, cut costs and to deal with financial risk. According to Yadav (2008) financial risk encompasses other types of risk such as market risk, foreign exchange risk and credit risk (p. 40). Market risk is the possibility that a firm will loose money to a financial institution because of extreme price changes in the financial market. Foreign exchange risk is the possibility of financial loss due to changes in the money markets. Credit risk is due to non-payment by a borrower of the principal and interest according to the terms of agreement (Yadav 2008). Toporowski (2009) asserts that foreign direct investment is subdued because of risk aversion, reduction in financial leverage and scarcity of capital (p. 162). Many companies are holding on to liquid assets such as cash and marketable securities instead of investing. Cutting capital e xpenditure is likely to impact the economy in a negative way because it will reduce the opportunities for earning revenue. In addition, if investment is restricted, the net profit of the companies will be reduced (Toporowski 2009). The effect of the crisis on International trade The world economy has been largely affected by the global financial crisis. Risk and uncertainty are at a very high level. Therefore, the economic forecasts are likely to have substantial errors. The confidence of consumers and investors has been shaken since the financial problem began. In addition, the attitude of the important players in the economy is unlikely to improve since most expect the situation to get worse (Allen and Synder 2009) Difficulty raising capital Raising capital has become very difficult in the wake of the current financial crisis. The banks and financial institutions have become very careful about lending while investors are reluctant to invest in risky markets. There is a lot of comp etition for finance against other industries which are deemed more profitable. Therefore many businesses suffer from insufficient capital to invest and expand business. (Elks Roberts 2008). The inbound tourists to Australia are much fewer than in previous years. Local tourism has also been affected by the financial crisis as people struggle to meet their financial obligations. The number of tourists from within the country is much less than in previous years. This is very discouraging to investors and players in the industry thus affecting the availability of capital. (Tourism Australia 2008) Governments’ response to these risks In order to cope with the financial crisis, many countries have had to restrict the capital flow. This is primarily aimed at stabilizing the financial systems of the country (Toporowski 2009). According to the Global Economics Crisis Resource Center (2009), many countries have employed protectionism as a means of dealing with the financial problem.Ad vertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Protectionism is a situation whereby a country restrains trade activities with other countries (p. 21). The governments restrict imports of goods and services by imposing tariffs and quotas on imports. Governments also regulate the ownership of local companies by foreigners. By taking this measures a government will be able to protect is citizens and local businesses (Global Economics Crisis Resource Center 2009). Most governments have employed the traditional monetary tools such as reducing the interest rate and putting in place specific reserve requirements for the banks. Some countries began schemes which were aimed at rescuing banks and financial institutions that are in trouble. The activities under these schemes include purchasing unprofitable assets and offering credit (Burakovsky 2009). Burakovsky (2009), states that long-term plans to boost the economic situation have also been put in place so as to increase the demand of investments and consumption by households. Some coun tries plan to reduce tax for businesses and individuals in future. Research and development is being focused on investment opportunities and new technologies. Burakovsky (2009) points out that regional development is being considered as a means to increase economic development (p.81). Cooperation amongst countries is been sought to prevent such a crisis in future. International forums such as the G-7 and G-20 are useful in ensuring that there is international coordination so as to reform the financial systems (Burakovsky 2009) The international Monetary Fund has been offering financial assistance to countries that are in grave situations. They have provided emergency financial assistance in order to assist the countries to survive and to prevent an economic collapse of the nations. In addition, the IMF provides the advice to the affected governments as to how they can best curb the situation and come out of the financial problems. Managing risks and operations appropriately will ens ure that the companies in the Australian tourism industry endure the problems in the market. The governments and central banks of all the countries that have been affected by the crisis are taking unprecedented measures. The governments are giving a lot of support to the banks and financial institutions so as to stability the economy. In addition control measures have been put in place to monitor the economy (Burakovsky 2009). Uncertainty of government policies Although the interventions by governments are expected to yield positive results, there is uncertainty concerning the effectiveness of those policies in alleviating the problems faced due to the financial crisis. According to Carbaugh (2008), some policies adopted by government have negative effects (pg. 486). For instance, if the government decides to rescue banks that are in financial problems it is a moral hazard because there is no consequence faced for mistakes. Therefore investors may avoid such an environment. If the g overnment deals with a deficit by simply creating money, this will give rise to inflation. It is this issues which affect the credibility of government policies. (Carbaugh 2008) Conclusion Governments should work at reducing the problems faced by citizens and businesses in their country due to the economic crisis. It is important that businesses are offered support to reduce the closure of businesses due to financial problems. The governments should put in place policies that reduce political and financial risks so as to improve the business environment and attract foreign direct investment. However, policies with negative consequences such as protectionism should be avoided. References ABC News 2009, Financial crisis hits Australia zoo, Available from: http://www.abc.net.au/news/stories/2009/03/25/2526276.htm . Allen, R Synder, D 2009, ‘New thinking of the financial crisis’, Critical Perspectives on International Business, vol. 5, no. 2, pp 36-55. BBC 2008, Australia slashes interest rates, Available from: http://news.bbc.co.uk/2/hi/business/7656161.stm . Burakovsky, I 2009, ‘Coping with the effects of International financial crisis’, Problems of Economic Transition, vol. 51, no. 10, pp 78-96. Carbaugh, RJ 2008, International Economics, Ohio, Cengage Learning, 2008 Elks, S Roberts, G 2008, ‘Tourism fears a big hit from financial crisis’, The Australian, Available from: http://www.theaustralian.news.com.au/story/0,25197,24743201-5013871,00.html . Geoff Carmody and Associates 2008, Tourism prospects as Wall Street crunches Main Street, http://www.tourism.wa.gov.au/SiteCollectionDocuments/Economic%20Crisis%20Report%20-%20Summary.pdf . Global Economic Crisis Resource Center 2009, Global Economic Crisis: Impact on Business, Cengage Learning, USA. Hendrix, S 1991, Political risk and international business, Available from: http://www.stevenhendrix.com/yahoo_site_admin/assets/docs/Wisc_Intl_Trade_-_Political_Risk.103143045.pdf . Othieno, T 2009, The global financial crisis: risks for fragile states in Africa, Available from: http://www.odi.org.uk/resources/download/3064.pdf . Thinking Shift 2009, Global pandemic of unrest, Available from: http://thinkingshift.wordpress.com/2009/04/20/global-pandemic-of-unrest/ . Toporowski, J 2009, ‘International business and the crisis’, Critical Perspectives on International Business, vol. 5, no. 1, pp 162-164. Tourism Australia 2008, Tourism Australia global market monitor, Available from: http://www.tourism.australia.com/content/Global_Market_Monitor/GlobalMarketMonitorShortDecember08.pdf . Yadav, V 2008, Risk in international finance, New York, Routledge. 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