New product development

New product development Need in the Market The need for an eBook in the market was evident. In the information age, where volumes of data and information need to be exchanged, created, examined and organized, there was a huge void to be filled by a handy device capable of being carried around, having an interface big enough like a book, but not the limited capacity of a paper book. The books were omnipresent, even though depleting in number with the internet coming up. But for extended reading, the computer screen was too inconvenient. It took too much time to load up. It was unwieldy to carry around. Not everything was available in a format youd want it in. To look into what exactly the need was, lets us look deeper into some specific points. To fill the current void, the market needed a product that: Was not heavy on the environment, like books. There was too much paper and ink being used for relatively miniscule amounts of information. Replicated the book in terms of readability. The computer screen was strenuous to look into for too long. Further, the computer screen could not be seen in sunlight. It also was very hard to read at angles. Facilitated exchange of information without necessarily the constriction of holding a device and keeping the users eye fixed on it. For example, in the ultra mobile culture that is emerging, many users are either driving a vehicle for a big fraction of the day. They may be users who are working around the house too. Books, because of the undivided attention they required, were slowly being drifted away from. Did not require storage space. Books took up a lot of space. Theres only so much information that can be kept in the library in the form of books. Was not heavy. Books are heavy if you realize that just to move from your living room to the park outside with a few big books is not inviting. If youre travelling, its almost impossible. Was updated in real time. Books cant be, and computers are, as we saw, unwieldy. We now see how the Kindle fulfilled these needs. The Amazon Kindle and how it filled the gap The answer was an eBook reader. One such product is the Amazon Kindle. A quick glance at its features, benefits and how it fits with the market demand identified above is presented. Amazon Kindle: a software/hardware platform by Amazon.com for displaying e-books and sometimes, other digital media. The 3 versions are: Kindle, Kindle 2, and Kindle DX. The Kindle First Generation, which was Amazons first device, was released in the US in 2007 (on November 19). The Kindle uses an E Ink brand electronic paper display. It downloads content using Amazons Whispernet (propriety online store) using mobile networks. The Kindle 2 devices use the American ATTs service and some roaming partners that give wireless access internationally. Kindle does not have to be connected to a computer, and Amazon Whispernet does not require a subscription. All Kindles come with free access to the Internet over mobile networks in the US. Here is a look at the features and benefits you can find with Amazon Kindle. The screen looks like real printed paper. Kindle also became desirable because of its 3G connection service in more than 100 countries. Users are able to get the first chapters of books before purchasing them. The actual download takes 60 seconds. The Kindle DX features a larger screen and more memory to hold more e-books. The screen size is 9.7 inches which is pretty large for comfortable reading. Even the available memory of 3.3 GB is enough to keep to the tune of 3500 books. The screen boasts not having any glare or illumination. This doubles up as a major power saver. In addition, the words of the book, once displayed on the kindle, remain that way without consuming any power. So, in the domain of utilization of power, it is very efficient. About 500,000 book titles are available at its Kindle Store for international customers. Competitive analysis Porters analysis for the eBook industry Entry Entry barriers to the e-book industry are few, if any. The manufacturing process is relatively simple; except for the screen, the technology is well developed. The Kindle uses an electronic paper display manufactured by E-Ink Corporation and this same display can be found in the Sony Reader, the iLiad, the Cybook Gen3, and the Readius. However, there is a challenge of signing agreements with publishers so that the material can be released as an e-book. Perhaps the biggest obstacle that all the companies are facing right now is the lack of growth in the industry. Jinke has been in the business since 2000 but has sold only 150,000 readers, the most of all the companies. Rivalry The e-book market is still in an early stage and because of this, market price levels are still uncertain. There are significant variations in price between different producers of e-book readers. Amazon entered the market at a significantly higher price than Sony and many other competitors, but there are also other readers selling at $700 or more. Because the consumer base is so small, all producers would rather see it expand than steal customers from other manufacturers. Consequently, there is more incentive for manufacturers to improve their product and increase interest in e-books than to compete on price. Supplier Bargaining Power Supplier bargaining power is derived from the number of suppliers, availability of substitutes, and costs associated with switching to alternative inputs. There are two main inputs to the Kindle: screen and network technology. The technology used to create the specialized display on the Kindle is manufactured by the E-Ink Corporation. E-Ink is the leading firm in the electronic paper market and is a supplier to a variety of companies, including Sony and other e-book manufacturers. Since the electronic paper market is relatively new and does not consist of many firms, substitutes are limited. Given the state of the electronic paper market and the fact that electronic paper is a recently developed technology, E-Ink needs customers and hence E-Ink does not have much supplier bargaining power over Kindle. This could change in the future, depending on the popularity of the Kindle and the development of the electronic paper market. Amazon uses EVDO network technology, supplied by the Sprin t network. Kindle users do not need to pay to connect to the network, as Amazon covers the cost. Large EVDO network providers also include Verizon and Alltel, with other competing networks using a standard other than EVDO. This means that Amazons choice of networks for Whispernet is fairly limited. While not an issue now, if Kindle becomes much more widespread in the future, the company could face a holdup problem with Sprint if Sprint wants more of Amazons profits. Thus Kindles display and network suppliers currently do not have much bargaining power, but it is highly likely that if Kindle succeeds, supplier bargaining power will increase and may become a problem for Amazon. Publisher bargaining power is also important to consider since the Kindle is fairly useless without e-books. To increase the size of Amazons e-book library, it needs to obtain publisher permission for each book it converts. Publishers have a great deal of bargaining power in this respect; while there are many publishers, for each title one publisher has a monopoly. Thus, if Amazon wants a specific book for its Kindle, it will have to pay monopoly prices to the publisher. This effect can already be seen in the market for printed books, where much of the profit on a book is retained by the publisher. For a large publishing company like Random House, its profits are on the order of 10% of its revenue. On the other hand, a book retailer like Barnes and Noble has drastically lower profitability, with profits less than 1% of revenue. Thus publishers have a great deal of supplier bargaining power since they essentially decide which books become e-books and whether those books will be availa ble for the Kindle. Publishers can also require that Amazon sell only versions of their books that include Digital Rights Management (DRM), an attempt to prevent illegal copying of the content. Consequently, all books sold through Amazon on the Kindle are available only in the proprietary AZW format. Most competing readers also specialize in their own DRM format. Buyer Bargaining Power Kindle buyers have little bargaining power. Bargaining power is derived mainly from the ease of switching to a competing product and the value of the product to the buyer. Because both the Kindle and competing readers use DRM schemes, books purchased for the Kindle cannot be transferred to other manufacturers devices and vice versa. This is not the primary reason for DRM, but it is advantageous from Amazons point of view because it increases switching costs and helps to create buyer lock-in. The market for e-book readers is still young and small, so the majority of e-book reader buyers do not have a significant existing electronic library. Existing libraries are not yet an important factor in shaping consumers purchasing decisions. However, once the market matures a significant portion of sales will be to existing owners of e-book readers. Thus buyer bargaining power will decrease over time and be very weak in the mature market. Substitutes The main substitutes for Amazon Kindle are libraries, both brick and mortar and online bookstores, and Google Books. However, unlike the online bookstores and Google books, Kindle does not require a computer. Kindles free wireless connectivity which uses the same network as advanced cell phones enables buyers to shop from the Kindle Store directly from the Kindle device. Instead of having to travel to the local library or waiting for books to arrive from online bookstores, this wireless network can download a book in 60 seconds providing customers a more efficient and direct access to books. Although Kindle does not yet have access to as many books as some of these substitutes, it is progressively adding more books. Also, the Kindle stores everything a purchaser buys online; in this way, if a customer loses the Kindle, the reading material will not be lost, as would be the case if you had a paperback. The readers also do not have to deal with heavy or numerous books because of Kindle s light portability. The Kindle display looks like ink on paper, which is easier on the eye than LCD screens and comparable to printed media. It can also increase text size which is a clear advantage over books. Physical bookstores allow customers to browse books before purchasing. Amazon attempts to emulate this feature by allowing users to download and read the first chapter of any book for free. E-book versions of new releases and New York Times Best Sellers are $9.99, saving on average 60%, and many other books can be found for less. As for Google Books, Googles aim is to help people find and discover books and learn where to buy and borrow them. Although there are books that can be read online from start to finish, this is only the case for books in the public domain and out of copyright. For these reasons, Kindle compares favourably to these substitutes. Complements The size of the e-book library, other file types such as .pdf, .doc, and .jpeg, and the service to convert files to Kindle format are all complements of Amazon Kindle. The most important compliment required is the number of books offered to Kindle users. The day Amazon Kindle was released last year, the Kindle Store had more than 88,000 digital titles available for download and now has over 115,000 Books, newspapers, magazines, and blogs. Amazon also offers an email-based service that converts .html, .doc, .jpeg, .gif, .png, and .bmp documents to their Kindle format, AZW, or can load unprotected Mobipocket or plain text content. This AZW format is only for the Kindle which is a good strategy on Amazons part to tie the complement to the product. Kindle also supports formats for audio in the form of MP3s and Audible 2, 3, and 4 audiobooks, which must be transferred to the Kindle over USB or an SD card. With a variety of book options and supported formats to accommodate more customers a nd their various needs, the Kindle is a simple and convenient alternative to reading a paper copy book. Major Competitors This competitor analysis only compared the products on the basis of the technology but to sell the product, there is much more than mere technology which has to be projected. That is where marketing steps in and that is the area where Amazon has been at the forefront with its clear marketing strategy and its proactive and subtle innovations which keep them at the forefront of the E-book reader industry. Marketing strategy The marketing strategy of Amazon Kindle can be seen through the STP (Segmentation, Targeting and Positioning) analysis of the Kindle which would give way to the marketing mix followed by the brand. A typical buyer of a Kindle can be perceived as a businessman/businesswoman who does not have enough time and space to carry along the pile of books and newspapers when they go out on a trip or a business meeting. They want multipurpose equipment with no frills attached so that they can browse their favourite book whenever, wherever they can. The popularity of the Kindle can be seen in countries such as America and Europe where these kinds of users are easy in good number. The Kindle is sold on the website of Amazon that saves Amazon a lot of cost due to a direct supply chain. The communication is basically through a series of adverts whenever one goes to the website of Amazon. Amazon has positioned the Kindle as a book carrier for the people on the go. The product is marketed heavily in A merica and not so much in Europe as books have an aesthetic value in the Europe. It considers book as a form of art which is not a case with Americans. Methodology The methodology consists of both the primary and secondary research methodology. The basic aim of the methodology is to gauge the consumer perception of the Amazon Kindle and to analyze the gap between the Brand identity portrayed by the product and the brand image which is actually created in the mind of the consumer of an Amazon Kindle. Generally, it is seen that a new product has problems filling this gap and it is one of the major threat whenever the product is launched in the market. There is a need for the company to portray itself in a manner that the gap is minimized. In order to see the success of the Kindle we tried to visit the various blogs and the website of the Kindle to look for the consumer perception and the post purchase analysis. This methodology was validated by the questionnaire floated on various internet sites and the blogs in order to get maximum responses from the people. The scope of study was narrowed down on to finally three types of units: Users of Amazon Kindle Non-Users of Amazon Kindle People who havent heard of Amazon Kindle It is very important to gauge all the three responses in order to get the birds eye view on the product and the concept delivery. While hundreds of responses were analyzed in the secondary research, we came up with 54 responses in the primary research which was covering the geographical areas of USA, India, France, Germany, Greece, Australia, South Africa, Spain, Argentina and many more nations which make the study geographically significant. The responses were analyzed by the statistical tools such as excel and SPSS in order to come up with the impact analysis of Amazon Kindle and finally the recommendations that we came up to make this process of marketing the Kindle much more efficient and focused. Observations and analysis Secondary research observations: The secondary research was performed on the following web blogs and websites: inventorspot.com ireaderreview.com www.wired.com www.bestebookreaders.com reviews.cnet.com crunchbase.com blogs.techrepublic.com www.computerworld.com wiki.mobileread.com www.hanselman.com www.macworld.com gadgets.boingboing.net arstechnica.com www.digitaltrends.com Amazons Website The blogs are the major technology blogs which constantly receive the comments of the users and the non users and are a fair indicator of the trends and perception of the new product in the market. This is majorly significant in the case of the Kindle as the marketing mix of the product significantly enhances the importance of the blogs and reviews online. The product is sold online only and thus all the users or the people who are interested in the product are more likely to be avid internet users. The first step for adaptation of any new product is the search of the information about the product and the information, in case of Amazon kindle is majorly available on these websites and the Amazons site. The user therefore pays a lot more attention to these blogs in this case. Thus these blogs are very powerful in forming the perception about a product which is sold online. The E-Paper screen is slightly smaller than that on its primary competitor, the Sony Reader, but is still quite legible and roomy E-Paper has a long way to go before it replaces ink on paper, but its comfortably on the right path Youll need to use the Kindle in the same sort of well-lit environment that youd read a normal book or magazine Some of the features such as the expandable memory and the wireless services truly make using a Kindle an unforgettable experience. However, we can never call the Kindle a radical innovation as the concept was already put in to the market by Sony via their Sony reader. But as compared to its counterparts, it is perceived as a pioneer in innovation and technology. With the latest launch of the I-PAD, there has been a lot of speculation while we compare the I-PAD to the Kindle. While both Apple and Amazon maintain that the products are not in competition but there has always been a comparison made which can be unfair to the Kindle as it is not a multipurpose device as compared to the Kindle. But Kindle has been very proactive in ensuring that they come out with the subtle innovations that would keep their nose ahead at all times. This can be seen when they launched the Kindle application for the IPAD very recently just after the launch of the IPAD. Primary Research Observations The primary research was conducted on 51 respondents who were spread all over the globe on all continents of the world. The respondents were divided into 3 categories and the perception mapping was performed. The results show high involvement of Americans over the rest of the world. This can be easily explained by the history of the Amazon Kindle which launches the new version in America first and then another version is launched in the rest of the world. There is always an international version of the Kindle which is meant for the rest of the world except America. The research had 61 percent female respondents and 39 percent male respondents. There were many avid readers among the Americans who answered the questionnaire. The total avid readers were 55 percent and out of those, 80 percent were Americans. The value sought in the Amazon Kindle was very high among these groups of people which tell us that the Kindle is very popular among the people who love to read a lot. The people were mainly fond of the fact that the kindle is very compact and easy to operate. The peoples response was mainly hinting that the Kindle is surely a device that they would like to buy but the barriers that they have put either on the initial price and on the subsequent running costs is deterring them from having a Kindle with them. According to them, there is a special place of books in there and Amazon should not compete with them. The testimony of the fact is that the 90 percent of the people preferred paperback books instead of an electronic book if given a free choice. The reason given is that the book looks much more real and there is a sense of possession when we have a book in our hand rather than when we have an eBook in our laptops of our Kindle for that matter. The Kindle had the biggest advantage over the rest of its competitors due to its wireless capabilities which actually allow you to get your favorite books within a few seconds room anywhere in the world and anytime in the world. While Americans and Australians preferred the Kindle because it saved a lot of shelf space which in other cases would have been taken by the books, the Europeans preferred Kindle because it was su pposed to save a lot of paper and it looked elegant in the hand of the possessor. Some of the other findings include the fact that while 39 percent of the respondents were actually Kindle users, there were 21 percent of the respondents who were not aware of the Kindle at all. The reason that we could thought of was that it has something to do with the less popularity of Amazon in the countries of these people as most of these people were from India(50 percent) and Thailand and other parts of Asia. This throws light on the fact that for a product which mainly sells from the internet, it is very important for the parent company to have an established base of consumers who can then communicate with them and participate in the offerings given to them in the form of products such as the Kindle. There is no distribution channel where we can push the product. The other respondents who had heard of the Kindle but never thought of buying it thought that the price of the Kindle is the major factor that deters them from even thinking of having one. For the ones who want to b uy it and do not have it as of now, the major reason is that the people associate a lot of hidden costs with the product. This was a major finding as the company never projects the actual cost to consumer throughout the life of the consumers. While the possessors liked the fact that the Kindle has good connectivity which we too found out as the point of difference of the Kindle from its competitors, the non users liked the read without glare feature the most attractive one. This lead us to one more observation that the most attractive feature is not the unique feature of the kindle so the Kindle may or may not be the first choice of the people when they go on to buy an eBook reader. This is kind of disheartening for the company as the product is highly placed on the price and the technology table and the users may not find value for money once they look to buy a Kindle. There were some serious observations made in the value that the consumers attach regarding the price of the Kindle and that comes out to be around 140 Euros that is way less than the actual price of the kindle i.e. 250 Euros. This leads us to the observations is that the barrier is too high for a large amount of potential users which can be exploited if they agree to lower the initial cost. The people were very apprehensive of the actual cost to customer and Amazon can do well to enlighten the customers about the same. Success of the product to date The Amazon kindle is unarguably the best selling product for Amazon and the adverts on the website of Amazon are a testimony of this. It is the most wished for, most desired and most searched for product on Amazon site which tells us that the product is doing very well on the international scene as well. Some of the factual data released by Amazon can also be seen below. It tells us that the product is doing wonderfully well on the international scene. The product is a very successful one and the continual improvements that it has come up with are a major factor contributing towards such a success. The revenue percentage of Amazon is as high as 2.6 percent that tells us that it is the star performer for Amazon. The fact that is not taken into consideration is that there are huge running costs that are related to each Kindle that are unfortunately not mentioned in the data. But it is clear that the Kindle is doing cery well in the market since its launch in 2008. Recommendations Amazon should focus on advertising to attract new customers to the e-book market. A large potential for growth in its base of consumers is with commuters and business travellers, who will benefit from the convenience of the Kindles portability and also possess the disposable income to afford the device in its current price range. As Ron Hawkins, vice president for portable reader systems at rival Sony, points out, Digital readers are not a replacement for a print book; they are a replacement for a stack of print books. That is where we see people, on the go, in the subway and in airports, with our device. The Kindle delivers newspapers directly to users for, on average, $10/month. This enables commuters to easily read the newspaper on a smaller medium without the unwieldiness of the print version. Similarly, businessmen will find the Kindle appealing to avoid carrying multiple books while travelling. By targeting these consumers through increased advertising in subways, airports, and on airplanes, Amazon can expand the market and reach out to new adopters of e-books. In coordination with this advertising effort, Amazon should attempt to negotiate deals with major newspapers. At a time when newspapers are struggling with declining numbers in readers and revenue, Amazon can seek to capitalize on their situation. For example, the LA Times started a task known as the Manhattan Project seeking to investigate solutions to reinvent the paper for the future. Amazon has the opportunity to approach them with the Kindle as a new venue to revive their business through a younger tech-savvy audience. The primary goal of this advertising campaign is to increase the overall e-book market, rather than to steal customers from rivals, so competitors should not feel threatened by it. In fact, other firms may benefit from the increased awareness of e-book readers. Similarly, parallel campaigns by rivals do not pose a significant threat to Amazon, since the major challenge at hand is to grow the market and provide for future profitability. However, Amazon needs to ensure that rivals do not enter into exclusive contracts with newspapers or other content providers in general. These deals only serve to benefit individual firms in the short run and ultimately hinder expansion of a relatively small, nascent market. Long Term Positioning In the long run the market for e-books themselves is unlikely to support significant profits. The main issue stems from the large amount of publisher bargaining power that currently exists in the print book market. Publishers have a significant influence in the supply chain for books, retaining the largest portion of the producer surplus in print media. The retailer only receives a small fraction of the overall profits on the book, so it is presumable that Amazon will face similar difficulty in extracting profits from e-books. In addition, Amazons business model is reproducible and thus their current distribution advantage is not necessarily permanent. Amazons reputation would be their only substantial barrier to new entrants in the e-book sales market. Lastly, competition with free pirated e-books would present problems. Even if Amazon proves more successful than competitors in e-book retailing, as the market grows, piracy will inevitably emerge to erode profits. This has occurred o ver the last decade in the music industry as digital music and the Internet have matured. These pitfalls make it unwise for Amazon to pursue a partnership with a hardware-oriented company like Sony, in which Amazon would limit itself to selling e-book reader content. Instead, Amazon should continue to produce the Kindle itself. Due to the nature of the market, the selection of complements will not distinguish the Kindle from other readers. If Amazon can maintain comparable hardware quality to other manufacturers, switching costs and brand identity should allow Amazon to keep a stable customer base and to support some level of sustainable profits. Pricing It also might be tempting for Amazon to leverage their current advantage in e-book distribution into greater profits on the e-books. This trades larger short term profits for a weaker future position in the market, which will be much larger that it is now. Thus, Amazons pricing strategy should be consistent with the long term focus on hardware and a desire to prioritize market share over short term profits throughout the growth phase. Amazons recent price reduction from $399 to $359 reflects a shift from targeting quality sensitive early adopters to more price sensitive consumers. It should continue to drop prices in steady increments to attract wider consumer bases. Consumers are less sensitive to e-book prices than they are to hardware prices, and the decision to purchase a Kindle is more likely to be triggered by the cost of the Kindle itself. Hence, Amazon should not be overly concerned with further reducing e-book prices. These prices are currently lower than most hardbacks and trade paperbacks but higher than most mass market paperbacks. Attempting to compete with mass market paperbacks is infeasible because of publishers resistance to pricing e-books much cheaper than print versions. It already loses money on most of its e-books, priced well below what it pays publishers, and further price cuts would likely require Amazon to take losses unjustified by the small benefits in market share. However, if the Kindle is able to propel the e-book markets into a fast growing phase, publishing executives anticipate that it will not be long before Amazon begins using the Kindles popularity as a lever to demand that publishers cut prices. At this point , Amazons increased bargaining power will enable it to price more competitively without the losses from subsidies. Questionnaire Age Sex Male Female Nationality How much reading do you do in general? I am an avid reader, I cant live if I dont read I like to read, you would find me reading very often I like to read sometimes I read rarely I hate reading, i have better things to do in life What according to you is the most attractive feature of Amazon Kindle? Its sleek design and light weight The concept of an electronic reader The easy connectivity(Global 3G wireless) Long Battery Life Reads like real paper without glare, even in bright sunlight Holds up to 1,500 books Saves paper Lower prices than paper books Over 450,000 books and the largest selection of the most popular books people Other: What is it that would deter you from buying the Kindle? Price The concept of buying an E-book and limited number of reads Lack of Knowledge(less advertizing) Other: What according to you is the biggest competitor of the Kindle? Apples I-Pad The paper books Barnes Nobles Nook The Nook book reader Sony pocket touch edition

China’s Compliance with its obligations under GATT and WTO

The history of China and the General Agreement on Tariffs and Trade (GATT) dates back to 1948, when China became a contracting party after being among the 23 founding members of the organization. In 1950 however, the country under the Kuomintang government pulled out of GATT, but was later granted an observer status in 1982 after pleading that the pull-out was not done by a legitimate government. By 1986, China’s persistence to resume its position in GATT set a platform for talks with other member countries, which continued throughout the 1990’s. The country only managed to regain its membership in 1999 and joined the World Trade Organization (WTO) in 2001. By Joining WTO, China agreed to be bound by Subsidies and Countervailing Measures Agreement (SCM), GATT and Trade-Related Investment Measures Agreement (TRIMs) trade agreements. The entrance of China to the WTO was of great importance not only to the country, but to other world economies, which had observed the economic expansion of the country with heightened interests in the past decades. In 2000 for example, China was the world’s eighth largest importer and the seventh largest exporter of goods. The country accounted for $249. 2 billion in exports and $225. 1 billion in imports. In the commercial services sector China ranked twelfth in position at $ 29. 7 billion, while it was it was ranked as the tenth largest importer at $34. 8 billion (WTO news ). It was not however smooth sailing for the country and the other WTO signatories mainly because China is enormous in size and had a set trade regime by the time it joined WTO. As such, a change of the country’s legal and regulatory system in trade was required in order to ensure consistency with the WTO regulations. Although most countries supported the entrant of China to WTO, many observed that compliance for the country would not only need dedication, but also transparency. Sentiments regarding the hard task ahead for China were for example expressed by the United States’ Trade Representative, Mr. Robert Zoellick in 2002 , who said that since China had freely chosen its WTO obligations freely, other countries expected that the country would comply with all. Zoellick however agreed that meeting some of the obligations would not be easy for China, but would play a major role in ensuring that China was open to trade with the rest of the world. CHINA’S WTO OBLIGATIONS China took up obligations laid down in GATT, under the WTO by agreeing to non-discriminate and equally treat national trade from WTO member countries and also agreed to a adhere to the national trade policies as set out by WTO. First on China’s list of obligations under GATT/WTO, was the quota’s withdrawal requirement as earlier stated by the People’s Republic of China, under a protocol document. The country was also obligated to conform to the GATT 1994 agreement and the WTO agreement that addressed procedures involved in import licensing. Another obligation was the right to have enterprises in China trading in exports and imports as authorized under the customs territory of China. As such, China agreed to wipe out state import monopolies earlier maintained in the agricultural sector. In addition, china was required to subject all its imports and exports to rules set out under the WTO. More to this, the country was also subject to varying terms regarding price control restrictions and state trading (Vallera pp 2-3) GATT obligations included the prohibition of restrictions on imports specifically agriculture related imports. Another requirement under the GATT agreement related to giving imported goods equal treatment with the domestic products. In addition, the GATT agreement spelt out that fees or charges imposed on imports would be approximate to services rendered (Williams, Brett p 3) GATT Requirements GATT was a brain child of the United States, which first floated the idea of regulating 45,000 tariff rates in 1947 during an international conference held in Geneva (econ. iastate. du) . A year later, 22 other countries signed the trade agreement. Under GATT, a member country was to treat other signatory countries as a â€Å"Most Favored Nation† (MFN). The MFN treatment assured GATT member countries that non signatory countries would not receive lower tariffs than them. China was at war during the early years of the implementation of GATT, the discussions to rejoin GATT , which started in the 1980’s was further curtailed by the Tiananmen announcement , which marked halted Chinese interaction with the GATT member countries in 1989 (Skanderup p32) . On resumption of the talks in 1995, WTO had taken over from GATT and with the new identity came stricter requirements, which often led to stalemates of the negotiations. It was however, china’s realization of economic gains in terms of expertise, technology and capital gains from other countries that eventually convinced the country leaders of the importance of joining GATT/WTO. China was petitioning to be recognized as a developing country upon resumption to GATT/WTO. This was rightfully so because despite China being the largest economy among the developing countries, most regions in the country still registered very low GDP. Being recognized as a developing country allowed the country to enjoy special benefits under the agreement. Such included the elimination or reduction of tariffs on products from the developing countries; developed countries were also encouraged to avoid imposing tariffs and internal taxes on products from the developing countries. More so, the developed countries were alerted not to expect reciprocal trade from the developing countries (econ. iastate. edu). Compliance with WTO By the time that China was re-admitted to the WTO, the organization had 140 countries signed up for membership. The Bilateral agreement between china and the other member countries was therefore complex and long, such that the entire document was 900 pages and covered every aspect of trade as discussed. It was a consensus that China would implement some of the agreements in the 900 page document immediately, while others would be stretched over a five year period. Others still w ere expected to last the entire decade before China could finally reform its system entirely to match the compliance requirements. To aid the Chinese government in this, a WTO secretariat was appointed, with an assisting 16 subcommittees being mandated at monitoring the country’s progress and producing annual reports about China over an 8 year period of time (Skanderup, Jane p32). On its part, the Chinese government took up massive public education campaigns that sought to offer insight on what compliance meant. Local universities started offering degrees on international law, finance, foreign trades and trade. By the look of it, China had every intention to stick to the rule of WTO. Foreign governments, such as the United States government extended a helping hand and offered to create oversight bodies in Chinese state departments with an aim of ensuring that China complied with the WTO agreement. Transparency China did not always operate transparently in its trade dealings, regulations and decision making. As such, the WTO requirement signified a great shift in the country and so far, the country has done well in compliance with the GATT/WTO requirement’s on transparency. In this, China publicized trade related laws to improve how people accessed them. The most notable efforts were from the Ministry of Commerce, which adopted impressive policies with the aim of complying to the WTO transparency requirements (United States Trade Representative). However, there were complaints that China was not fast enough in its compliance. This was especially the case with short term goals that were supposed to be met within the first two years. In a 2004 review, it was noted that China had challenges with conforming to transparent practices especially with international set standards and value-added tax. In the six year period ending in 2007, China had eight dispute cases filed against it by other WTO members (Stewart et al p7) . Five of these cases were by the United States, while the European Union, Mexico and Canada had one case each. The eight cases were based on china’s non-compliance on Value added Tax, automobile imports, tax reductions and exemptions, trading rights, distribution services and intellectual rights on publication and audiovisual. The Transitional Review Mechanism is in charge of monitoring China’s progress and has raised these issues. Because of non-compliance, foreign and domestic business suffers frustrations when establishing businesses and often suffers from systemic uncertainties. Because of the language barrier, China still under the transparency requirement agreed to translate laws and regulations relating to trade into French, English or Spanish. The country also agreed to modify hundreds of its laws and regulations in order to become WTO compliant (USTR. gov) China also agreed to eliminate the local content requirement, foreign currency balancing requirement and export performance requirements from its laws. Allegations that China still manipulates its currency to date however abound. Intellectual Property rights China has been accused of not doing enough to ensure that the intellectual property rights are upheld in the country. Since joining the WTO, a 2007 TLAG report states that IPR infringement was at its worst in 2005 and 2006. To make it even worse, the report indicates that China had demonstrated no initiatives in trying to reform the criminal code in the country, which is the only way through which the country can enforce the protection of the intellectual properties (Stewart et al p11). Industrial policies China’s industrialized policies have always sought to protect local industries. This was meant to change after the ratification of the WTO agreement. However, complaints from other countries still abound pertaining to china’s protectionism measures over its auto part industry, export restrictions, regulatory interventions and subsidies on domestic industries. Subsidies China agreed to eliminate subsidies on exports and industrial goods. This was done under the Agreement on Subsidies and Countervailing Measures (SCM), China further agreed to stop subsidies on state-owned enterprises especially because some of the state owned companies were not profitable and only aided in destabilizing trade. The SCM agreement only prohibited subsidies on a limited range of products, and imposed countervailing duties. Such compliance encouraged Chinese industries to become more competitive especially because they were exposed to market pressures from foreign investors. Discriminatory Safeguard By acceding to the safeguard agreement China agreed to steer clear of WTO inconsistent tariffs and quotas, except those allowed by the organization on temporary measures. Under this agreement, non-compliance by China would earn her penalties that would see other WTO members imposing tariffs and Quotas on Chinese products, while denying China the ability to counter such actions (Halverson, Karen). Trading and Distribution rights China has scored fairly well in this front. However, the complaints from other member countries allege that the country still impose restrictions to specific products. Among the cases highlighted are import restrictions on copyrighted materials such as periodicals, books, audio and audio-visual products. The 2007 TLAG report indicates that China is yet to fully comply with the direct selling requirement since it still restricts direct sales from foreign companies (Stewart et al p12). Agriculture China has largely complied with the agricultural requirements but this depends on the market situation. At times, the country employs selective market interventions that cause delays in agricultural shipments. In addition, the country sometimes applies scientific rationales with the intention of preventing some agricultural commodities from entering her market. Other complaints allude that China lacks a consistent and predictable regulatory administration, which is laden with capricious practices in the customs departments. The Chinese agricultural market also lacks predictability and transparency. China’s agriculture obligations included her commitment to avoid providing export subsidies to the domestic producers. China also was obligated to lift the meat, citrus products, corn and wheat bans. The country further had to implement some tariff –rate quotas that world provide sufficient market to farmers from signatory countries. Services- Arguably, this is among the sectors where China has scored the least points as far as compliance to the WTO commitments is concerned. Despite the initial promises made under the general Agreement on Trade in Services (GATS), China is yet to lift some of its restrictions in the services sector. As such, other countries still experience limited access to the Chinese services industry. Areas of concern between 2001 and 2004 remained the financial sub-sectors (insurance and banking), in a 2007report however, the United States lauded Chinas efforts to comply with the obligations (USCBC) . It confirmed that China has indeed complied with the insurance requirements by lowering the total assets to $200 million down from the earlier requirement of $300 million on foreign insurers. In the banking sector, the USCBC report further indicates that China has lifted geographic barriers earlier set on its local currency, which mad business challenging for foreign based financial institutions. China also allowed her nations to freely choose among foreign or domestic owned financial institutions. In addition, the country removed restrictions that hindered ownership and operations of financial institutions thus allowing more foreign owners to invest in the industry. Telecommunication sector was however dragging behind, with the report stating that although China had committed itself to lift geographic limitations on data services and mobile voice for joint ventures, China was yet to draft regulations on how to meet that commitment. Another requirement on the telecom sector yet to be met by China is her commitment to expand the geographical capacity of domestic owned telecom services by raising foreign ownership to 35 percent. The engineering, architectural and urban planning requirements were however met between 2003 and 2007 and foreign owned enterprises can now take part in integrated engineering, planning and architecture without the requirement of domestic partnerships. The country is also yet to fully comply with WTO requirements set on the express delivery sub sector (Stewart et al p13). Foreign owned enterprises can operate in courier services but restrictions on the scope of business that such enterprises can engage in still exist. Obtaining licenses for the foreign based firms remains a big challenge for many. China’s obligation in allowing foreign firms to operate in freight inspection and testing services were yet to be met in 2007 as their were restrictions on the scope of business that a foreign firm could engage in. In a 2005-2006 US-China Business Council’s (USCBC) report, China is said to have complied with the advertising requirements, which allowed foreign-owned enterprises to invest in advertising companies. China met this requirement in 2005 through the country’s ministry of Commerce Foreign owned business own and operate hotel and restaurant business in China, but have to abide by set regulations. In this sub-sector, China is yet to comply with the WTO requirements since foreign-owned enterprises are restricted on the amount of air cargo space they can book (USCBC). Tariff Reductions China agreed to reduce its tariffs on agriculture products to 15 percent, with average tariff level for industrial goods being set at 8. 9 percent. Tariff reduction obligations were scheduled for immediate, short term and long-term implementation. Trading Rights Trading rights are two way under the WTO agreement. They include the rights to I) other WTO member countries importing products and services to china, and ii) China exporting its domestic products to other WTO countries. In 2004, China enforced trading rights process that ensured that foreign nationals registering businesses in the country did so without any hindrances. This was a step that was lauded by many signatory countries, most notably the United States. However, some deficiencies in trading rights still existed. Such included commitments on pharmaceutical and books importations. Another deficiency noted in China’s compliance to the WTO trading rights requirement was the lack of liberalization of agreed trading rights. Such includes wholesaling services, retail services, franchising services, agent’s services and other related services. By 2004, China was yet to open its markets to allow foreign investors to practice direct sales or off-location sales. Among the notable compliances in the trading rights requirements was china allowing importers and exporters to conduct their businesses directly, without using middle men. Tourism In 2004, China took the first steps to complying with the WTO in the tourism sector by allowing foreign based firms to acquire joint ventures in China. It was expected that by December 2007, wholly foreign-based enterprises would be able to operate in the Chinese tourism industry. It was also expected that all branch restrictions, registered capital restrictions and geographical barriers would be lifted. The WTO requirements for China in the Tourism Industry were initially meant for Xi’an, Shaanxi, Shangai, Guangzhou and Beijing regions. In a 2004 report to Congress, the US lauded China’s progress in complying with the tourism, professional, education and environmental services (United States Trade Representative ) . CONCLUSION China’s compliance and non-compliance is widely a matter of government and industry protectionism. Whereas the private sector players may intentionally avoid adhering to the WTO rules, the government, which has the capacity to press the private industry players towards compliance does not apply the necessary internal pressure required to move the players. The spirit of WTO agreement that China exhibited on its entry to the WTO was already running out in the third year of implementation. Other issues that arise in the only communist country as it puts up measures that ensures compliance to WTO is the fear of the China Communist Party of loosing national support. This is especially likely because the income inequalities in China are on a steep incline, something that the locals blame on the market reforms under WTO and the expanded private sector (Halverson, Karen) Overall, China has received mixed rating for its compliance levels of the WTO requirements. The United States is among the biggest bilateral trader whose public holds mixed reactions on the role of China’s trade to the US under WTO. Some of the notable complaints from US investors include China’s continued protection of its steel and auto producers. Other claims allege that China uses her tax system to discriminate particular imports. Some export regulations in China also contravene the WTO requirements. Such include restrictions placed on raw materials, thus driving up production costs. Foreigners claim this is discriminatory since foreign investor’s ends up producing at higher costs, while the Chinese nationals operate at lower costs thus giving the former a market advantage. Eight years later after China joined the WTO; many member countries agree that it is the high time that the country took accountability for its obligations. This is especially so because most of its requirements were meant for accomplishment in the first five years. The United States is one such country, which is pursuing dialogue, dispute settlement mechanisms, legal action or a combination of all in order to ensure that China complies.

Free African Americans Essay

The Antebellum period had a huge impact on the free African American people. The Antebellum period is the time that is pre-Civil War and post-War of 1812. The United States was expanding to a more powerful nation and slavery was the biggest industry in their economy. During this period of time, African Americans had to deal with many obstacles/adversities as free blacks in all regions of the United States. The regions known as, in the northern, upper south, deep south, and far west regions of the United States was where the free African American encountered different and similar situations and experiences. Throughout history the north always was known as the first region that freed slaves. The northern states didn’t us the same economic methods as the southern states and the far west. They adopted a new way of making money. According to The African American Odyssey, â€Å"Between 1860, a market revolution transformed the north into a modern industrial society. † This new method changed economy for the north until present day. This was a new age of industry and the production of factories. Slavery was not needed as much as the southern states where they had good sun to cultivate and profit from crops such as cotton. Even though this new method lightened the idea of slavery in the north, the freedom for blacks was still limited. Whites did not want to deal with blacks so they enforced new black laws in which resulted in the segregation of school, communities and any other public uses. Free black men had limited voting rights where they barely had any rights to vote. Most of all these black laws impacted the employment level to a low gradient for the free blacks in the north. This battle for employment had many negative impacts on free Black’s ways of life. Families were tarnished under the pressure of providing for their families with the scarcity of jobs. They enforced fugitive slave law where the white slave masters can hunt and recapture runaway slaves from the south. This made life difficult and filled the free blacks with fear because they were more prone to be wrongfully enslaved. Like the south the whites did not want to deal with blacks whatsoever. Irish immigrants were taking all the jobs away from the blacks many blacks had unskilled jobs such as being barbers and shoemakers. The free African American upper south region did have similar experiences as the north but much more were different. Though they shared similar churches family businesses and fraternities the upper south was still separated by the idea of slavery and the different economic methods. The impact of slavery created different communities. The free blacks in the north lived with other free Blacks while in the upper south; the free Blacks lived with slaves. The fugitive slave laws had a bigger impact on the upper south than the north. The free black was definitely more prone to be enslaves. Many sheriffs would harass and arrest free blacks randomly on profiling them as runaway slaves. They did have a tool known as free papers that was proof for their freedom. But these papers were useless most of the time because they constantly had to be renewed. These free papers impacted the everyday life of African Americans because they had to make sure that their papers weren’t stolen, lost, or tarnished. The free Blacks had fewer freedoms. They could not vote at all and they had problems going outside at night. They could not congregate in groups and had no rights to bear arms. Life as a free Black person was tougher than the north because of the low employment rates downgraded again due to the Irish immigrants taking their jobs. Their jobs were different during the antebellum period. Many people were maids and servants and washers. Upper south institutions where tarnished and almost did not exist. Black churches were overran by white ministries and left the black ministers with no opportunities to practice on their careers. Schools were almost absent. They were low funded whereas many blacks in the upper south were left uneducated. There were no schools and no jobs which gave success to the whites on preventing the advancement of the free blacks. Unlike the north and the upper south, the Deep South barely had any free blacks despite the fact that the population of African Americans in the Deep South was enormous. There were many incidents of racial mixing with slave owners and the female slaves. Diversity was there but slavery still kept their children enslaved. They usually had a choice to buy their way out of slavery. Many of the free slaves did not have their own separate identity from the white slave owners. Many of the free blacks were just like the whites. They were accepted in the churches. Many wealthy free blacks were educated due to the establishment of private schools. Unlike the north and the Upper South, they had better skilled jobs such as carpentry and tailors. Many whites began to overlook the success of the free African American In the Deep South and made it even more impossible to live. Unlike the North, Upper South, and the Deep South, the Far West absolutely did not want anything to do with free Blacks. The black laws in the Far West were made to ban all free Blacks from settling in their region. The Gold Rush of 1849 resulted in the migration of many White and free Black men to settle out west in states like California and Oregon. The Far west was known to be more multicultural and have multicultural communities. Many blacks had the same jobs of that the free Blacks from the regions had except for the gold mining. Many Blacks prospered from gold. Slavery was a huge propaganda in the upper south and the whole south in general. It was a reality that all African American whether free or enslaved could not avoid. The northern states were gradually enhancing their advancement in the idea of acceptance and coexistence with the Whites in the US. The north had at least a bit of a head start for the search of equality in the U. S. The conditions of living might have been similar and different in many ways but this time all came to an end once the fugitive slave laws were enhanced. Many free African Blacks were enslaved and wrongfully accused to be slaves. The new laws were undisputed and changed the Blacks’ idea of freedom and fight for equality Work Cited Hine D, The African American Odyssey (2011). Combined Volume, 5th Edition. New Jersey: Prentice Hall.

Thomas Aquinas And John Stuart Mill - 1582 Words

Alexis Hoffman Professor Madison Introduction to Ethics October 15, 2017 TITLE There are four main philosophers that set the basis for different styles of ethics. The four Philosophers that made a huge impact on us all are Aristotle, Thomas Aquinas, Immanuel Kant and John Stuart Mill. All four philosophers are very well known for their intelligence and work in the ethics community. Although all of the philosophers have the same goal of defining ethics and how we should behave in terms of the highest good for human beings they all do it in different ways in which they feel is the proper way. Throughout this paper I will be comparing each of the four main Philosophers that we learned about this semester to each other so that you can†¦show more content†¦Virtues are gained through nurture, and backing his thought, he explained that if we are born virtuously then we could not become bad. Yet, there are a number of bad people in the world. Aristotle saw that virtue and duty had a strong connection. This is because duty is an act in accordance with law, wh ich enforces perfections. Since laws keep us in line, and our duty is to follow these laws, virtues come if you commit your duty. It is a cycle that repeats itself in the positive and the negative depending how we act. Because Aristotle was a Christian, he saw God as everlasting, and overall, see’s god as an important figure to live up to. Aristotle laid the framework to what would be the future of ethics. Although what he had reported would be found eventually, his views are what most believed as the golden rule, and future philosophers would just string off his ideas. Immanuel Kant became one of the most iconic, and potentially crucial philosopher since Aristotle himself. Like Aristotle and Aquinas, Kant also believed God exists and that he could have an impact on our lives if we let/wanted him to. But ethics mainly evolved around humans, more than God. 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