Econ 510 Exam 1 Study Guide

Intermed Micro Exam 1 Chapter 1 (Powerpoint Slides) Economics- Unlimited wants and limited resources Microeconomics- Branch of economics that deals with the behavior of individual economic units. Units such as, consumers, firms, workers, and investors, as well as the markets that these units comprise. Macroeconomics- Branch of economics that deals with aggregate economic variables. Such as the level and growth rate of national output, interest rates, unemployment, and inflation. Micro Economics is a story of trade-offs that consumers, workers & firms face and shows how these trade-offs are best made.Key Players – Consumers, Workers, Firms Trade offs for Consumers: Limited Incomes – To save or to spend. If save then for HOW LONG and of-course HOW MUCH If spend then on WHAT and HOW MUCH This gives birth to the CONSUMER THEORY, which talks about the preferences, choices, utility etc. Trade offs for Workers: Time: Leisure Vs. Labor Whether and when to enter the work forceâ € ¦. Pay scale is dependent on education Choice of employment: Risky but high paying VS safe but less money Trade offs for Firms: What to produce? How much to produce? Example: Any company in the world would love to produce everything and reap profits but can’t do it.Central planned economy- Prices are set by the gov’t In a market economy- Prices are determined by the interactions of consumers, workers, and firms. These interactions occur in markets—collections of buyers and sellers that together determine the price of a good. In economics, EXPLANATION and PREDICTION are based on theories and models. Theories- are developed to explain observed phenomena in terms of a set of basic rules and assumptions. Model – is a mathematical representation, based on economic theory, of a firm, a market, and some other entity.Positive Analysis – describing relationships of cause and effect. Normative Analysis – Analysis examining questions of what ought to be. Competitive Market – market with MANY buyers and sellers trading identical products so that each buyer and seller is a price taker. Non-Competitive Market – Seller or buyer can influence the prices Market Boundary – GEOGRAPHICAL and RANGE of products Why is boundary important? To get to know about actual and potential competitors and its helpful in making Public plicies. Example: Pain Killers REAL Vs. NOMINAL pricesNominal price – Absolute price of a good, UNADJUSTED for inflation Real Price – Price of a good relative to an aggregate measure of prices; price ADJUSTED for inflation Consumer Price Index – Measure of the aggregate price level. Producer Price Index – Measure of the aggregate price level for INTERMEDIATE products and WHOLESALE goods. REAL vs. NOMINAL pricing The real price of eggs in 1970 dollars is calculated as follows: The real price of eggs in 1970 dollars is calculated as follows: The real price of eggs in 1990 dollars is calculated as follows: Public Policy – * Great impact on Economics * Can change course of the marketChapter 2 (Powerpoint Slides) Supply Curve – Relationship between the quantity of a good that producers are willing to sell and the price of the good The Supply curve is upward slopping: The higher the price, the more firms are able and willing to produce and sell. If production costs fall, firms can produce the same quantity at a lower price of a larger quantity at the same price. The supply curve then shifts to the right. Insert Graph by hand: The Supply Curve – is thus a relationship between the quantity supplied and the price. We can write this relation as an equation: QS = QS(P) Other Variable That Affect Supply are:Production costs, including wages, interest charges, and the costs of raw materials. When production costs decrease, output increases no matter what the market price happens to be. The entire supply curve thus shifts to the right. Chan ge in supply or Shifts in the supply curve Vs Change in the quantity supplied or Movements along the supply curve. The Demand Curve – Relationship between the quantity of a good that consumers are willing to buy and the price of the good. Equation can be written: QD = QD(P) Insert Graph by hand: A higher demand curve shifts the demand curve to the right. Downward Sloping) Shifting the Demand Curve – If the market price were held constant at P1, we would expect to see an increase in the quantity demanded—say from Q1 to Q2, as a result of consumers’ higher incomes. Because this increase would occur no matter what the market price, the result would be a shift to the right of the entire demand curve. Insert Graph by hand: Shifting the Demand Curve Substitutes – Two goods for which an increase in the price of one leads to an increase in the quantity demanded of the other. Complements – Two goods for which an increase in the price of one leads to a decrease in the quantity demanded of the other.THE MARKET MECHANISM The market clears at price P0 and quantity Q0. At the higher price P1, a surplus develops, so price falls. At the lower price P2, there is a shortage, so price is bid up. Insert Graph by hand: Equilibrium (aka market clearing) price – Price that equates the quantity supplied to the quantity demanded. Market Mechanism- Tendency in a free market for price to change until the market clears. Surplus – Situation in which the quantity supplied exceeds the quantity demanded. Shortage – Situation in which the quantity demanded exceeds the quantity supplied. CHANGES IN MARKET EQUILIBRIUMNew Equilibrium following Shift in Supply When the supply curve shifts to the right, the market clears at a lower price P3 and a larger quantity Q3. Insert Graph by hand: New Equilibrium following Shift in Demand When the demand curve shifts to the right, the market clears at a higher price P3 and a larger quantity Q3. Insert Graph by hand: New Equilibrium following Shifts in Supply and Demand Supply and demand curves shift over time as market conditions change. In this example, rightward shifts of the supply and demand curves lead to a slightly higher price and a much larger quantity.In general, changes in price and quantity depend on the amount by which each curve shifts and the shape of each curve. Insert Graph by hand: From 1970 to 2007, the real (constant-dollar) price of eggs fell by 49 percent, while the real price of a college education rose by 105 percent. What are the possible reasons for such a sharp change : The mechanization of poultry farms sharply reduced the cost of producing eggs coupled with sharp decline in demand for eggs shifted by health-conscious population who tended to avoid eggs.As for college, increases in the costs of equipping and maintaining modern classrooms, laboratories, and libraries, along with increases in faculty salaries, pushed the supply curve up. Demand for college increased as a larger percentage of a growing number of high school graduates decided that a college education was essential & paying. Market for Eggs The supply curve for eggs shifted downward as production costs fell; the demand curve shifted to the left as consumer preferences changed. As a result, the real price of eggs fell sharply and egg consumption rose. Insert Graph by hand: Market for College EducationThe supply curve for a college education shifted up as the costs of equipment, maintenance, and staffing rose. The demand curve shifted to the right as a growing number of high school graduates desired a college education. As a result, both price and enrollments rose sharply. Insert Graph by hand: Supply and Demand for New York City Office Space Following 9/11 the supply curve shifted to the left, but the demand curve also shifted to the left, so that the average rental price fell. Insert Graph by hand: Elasticity – Percentage change in one variable resulting from a 1% increase in another.Price Elasticity of Demand – Percentage change in quantity demanded of a good resulting from a 1% increase in its price. Linear Demand Curve – Demand curve that is a STRAIGHT LINE. Linear Demand Curve The price elasticity of demand depends not only on the slope of the demand curve but also on the price and quantity. The elasticity, therefore, varies along the curve as price and quantity change. Slope is constant for this linear demand curve. Near the top, because price is high and quantity is small, the elasticity is large in magnitude. The elasticity becomes smaller as we move down the curve.Insert Graph by hand: Infinitely Elastic Demand – Principle that consumers will buy as much of a good as they can get at a single price, but for any higher price the quantity demanded drops to zero, while for any lower price the quantity demanded increases without limit. a. ) For a horizontal demand curve, ? Q/? P is infinite. Because a tiny ch ange in price leads to an enormous change in demand, the elasticity of demand is infinite. Insert Graph by hand: Completely Inelastic Demand – Principle that consumers will buy a fixed quantity of a good regardless of its price. b. For a vertical demand curve, ? Q/? P is zero. Because the quantity demanded is the same no matter what the price, the elasticity of demand is zero. Insert Graph by hand: Other Demand Elasticities Income Elasticity of Demand – Percentage change in the quantity demanded resulting from a 1% increase in income. Cross-Price Elasticity of Demand – Percentage change in the quantity demanded of one good resulting from a 1% increase in the price of another. Elasticities of Supply Price Elasticity of Supply – Percentage change in quantity supplied resulting from a 1% increase in price.SHORT-RUN vs LONG-RUN ELASTICITIES Demand Gasoline: Short-Run and Long-Run Demand Curves a. ) In the short run, an increase in price has only a small effec t on the quantity of gasoline demanded. Motorists may drive less, but they will not change the kinds of cars they are driving overnight. In the longer run, however, because they will shift to smaller and more fuel-efficient cars, the effect of the price increase will be larger. Demand, therefore, is more elastic in the long run than in the short run. Insert Graph by hand:

Air Canada Summary Essay

This paper is an in-depth analysis of the General Conditions of Carriage and all the clauses that one must abide by when flying with Air Canada. Each clause will be looked at and explained to see what it means and what is implied by the clause. All the business law concepts that we have learned in class will then be applied to the contract to help understand all the risks that Air Canada may or may not be vulnerable to and what further steps they can take to defend themselves. I will then make recommendations to both Air Canada on how they can improve their contract, as well as the customer, warning them about the dangers that can arise if they take the terms and conditions lightly when signing a contract or in this case, purchasing a plane ticket. Air Canada gives the customer fair warning that they should familiarize and feel comfortable with their rules and regulations before purchasing a ticket, and most people overlook this step. The lessons I have learned after looking into the clauses and analyzing them will then be looked at. These lessons will help me as the customer when dealing with an organization such as Air Canada. Finally, we will be looking at the legal corrective measures that can be used to fix the contractual issues that have been found in Air Canada’s General Conditions of Carriage. These measures are there to not only clarify any clauses that may be unclear that may cause confusion, but also to help put Air Canada in a better position, so that they don’t have to be responsible or take liability for any unfortunate events or situations that may occur on one of their flights. These corrective measures will also help the customer as well so they will feel more safe, secure and comfortable when flying with Air Canada and their staff. The objectives of this paper are to analyze all the clauses that Air Canada has provided when flying with their airlines. I want to be able to read and understand each one carefully. If there is any vagueness with one of their rules than it will be brought up as a point of discussion. Another goal is just to understand all the clauses and learn something that I did not know to begin with. I quickly became aware just after scanning over the conditions quickly that there are many rules I did not know existed and most people would be shocked to learn that they have to give up that right when flying with Air Canada. I also want to look at the clauses and see if I consider them to be fair. Most people would be shocked to learn of some of the clauses including the fact that in almost all situations where the end result is bodily harm or even death, Air Canada is protected and does not need to assume any responsibility for what happened. Of course, if something like this happens just due to negligence on the part of an Air Canada employee, that is a whole other story that will be discussed later on. If I find that I don’t think a point is fair, it will be a topic of discussion where I will recommend a solution that can help both parties. For the most part, customers and passengers of Air Canada must understand that they are not being forced to take a flight with their airlines. Air Canada is performing a service for them and if they decide to accept this service then they must be willing to abide and play with Air Canada’s rules. This is because the main objective of Air Canada when writing up this contract is to provide a service where they can make a profit, but do it in a way where they are not at risk and cannot get into legal trouble. People must remember that the contract is not being drawn up for their well being, it is being drawn up for the well being of the company so that they are protected at all times. Air Canada has done a pretty good job of this as will be discussed later. It is important to look into all this as a student in commerce because Air Canada is more than just an airlines, it’s a business. All businesses have the same mentality, whether it’s an airlines, a law firm or an ice cream service; this mentality is that they must look out first for number one which is themselves, make sure that they cannot be hurt by the legal system, and then secondly, attempt to satisfy their customers to the best of their ability. This General Conditions of Carriage for Air Canada is a very good example for a student like myself in a commerce program about how the business world really works. The reason for this is because we are studying an actual contract for an actual company in the real world that have to deal with all the concepts and principles we talk about in class on an everyday basis. General Conditions of Carriage for Air Canada Air Canada’s General Conditions of Carriage starts off with its â€Å"Important Conditions† section. The first point is that passengers must get their boarding pass and check in baggage by their check-in deadline. The deadline varies depending on where the plane is departing from and going to. If you are flying within Canada, the check-in deadline is 30 minutes prior to the plane’s departure with a boarding gate deadline of 20 minutes. If you are flying from Canada to the United States or vice-versa, the check-in deadline is 60 minutes prior to take-off with a boarding gate deadline of 20 minutes. Finally, if you are flying from Canada to anywhere else in the world, the baggage check-in deadline is 60 minutes with a boarding gate deadline of 30 minutes. All this is just to ensure that the flight can take-off promptly at the planned time so that there would be no unnecessary delays and so the airlines can continue running smoothly. Obviously, it takes longer to prepare a plane when it is going to a foreign country versus just staying in Canada. That is why the deadline for check in as well as the recommended check in times are both greater when flying outside of the country. The second point is that they strongly recommend that passengers reconfirm their flight prior to the day of their flight. Passengers can check their flight status online or call their flight information system number. This is so that customers can feel safe that they are on the flight. Also, when calling in, they can ask any questions they have about their flight. By doing this prior to the day of the flight, this can help speed up the boarding process on the day of. The third condition is that the passenger’s assigned seat is not a guarantee and can possibly change without notice. If this does happen, Air Canada will do their best to transfer the person to a seat close by, and will try to make it of the same class or service. Any applicable fees will be refunded. This would be an unfortunate event but sometimes these situations cannot be avoided. If this happens, the only option Air Canada has would be to try and offer you the closest possible arrangement that you were expecting and paid for. The fourth condition is that any travel credits banked for unused tickets are not transferable. When the credit is used, it must be used by the same person whose name appears on the original ticket or document. Air Canada has put this clause in their so that people can not just work together, building up credits and having it be used on one person and essentially getting to fly free because of all the credit that has been built up. This also encourages people to save up their credit so that they can get a larger discount on a flight in the future. The fifth condition is that voluntary changes to a passenger’s flying program may require the payment of additional fees for upgrades. If the person has a non refundable ticket, and this incident results in an unexpected trip cancellation or emergency, Air Canada will not be able to make any exceptions and the fee will still need to be paid. For this reason, travel insurance is strongly recommended. This condition is notifying the customer that trip cancellations, whether it is the customer’s fault or not, may still require that the person pays the ticket. This is the reason why travel insurance is important and is offered. Of course, they recommend this travel insurance because it is another way for them to make money for the company. The General Conditions of Carriage then discusses the Checked Baggage Policy. This policy says that passengers are entitled to a free checked baggage allowance depending by the person’s fare, destination, date of flight and frequent flyer status. If the passenger has paid more for the flight, they are entitled to more free checked baggage. I would assume that if the destination that they are travelling to is farther away, they would also offer more checked baggage since destinations that are farther away usually indicate that people will be staying there longer. For example, a vacation to Australia would most likely be longer than a trip to Calgary. The date of the flight also has something to do with the amount of free checked baggage one can bring with them on the flight. The busier the day is, the less flexibility a passenger would have with being allowed to bring a large number of luggage with them. Finally, people with a better frequent flyer status are also entitled to more free checked baggage because this indicates that they are a loyal customer that continues to go back to Air Canada and the company would like to reward them for that loyalty. Passengers who travel on a codeshare flight, which is an Air Canada flight number but is operated by another airline, the person is subject to the rules of the airline operating the first flight of their flying program. If at anytime the person must recheck their baggage with another airline for their next connecting flight, the rules of that airline applies. You can tell if your flight is being run by a codeshare partner by looking for the â€Å"Operated by† note appearing when you are selecting flights on aircanada. com. The checked baggage limitations are broken up into two classes, economy class and executive first class. For economy class, the maximum overall measurement (length+width+height) cannot exceed 158cm and the maximum weight is 50 pounds. For executive first class, the maximum measurement cannot exceed 158cm as well but the maximum weight is 70 pounds. If these limits have been exceeded, additional checked baggage charges will apply. Again, Air Canada is rewarding people that buy a higher priced ticket by allowing them to bring more with them onto the plane. They are probably also assuming that the majority of people riding in first class are flying for business related reasons and may require to have more things brought with them on the trip. If a passenger chooses to bring additional baggage, then Air Canada requests that they show up 120 minutes before departure. Each additional bag that a person checks may cost up to $100. This is a not a refundable transaction so if the additional bags are delayed the cost stands as is. A small suggestion would be that Air Canada should notify the customer about why some additional baggage costs more than others so customers can plan ahead to see if they want to explore this option. Codeshare flights have the same rules as previously stated. If these additional bags exceed the weight and size limitations, the passenger will need to contact their local Air Canada Cargo sales office for the shipment of the bags. Air Canada also stresses that all your checked baggage are properly identified. Air Canada tries their best to make sure that the person and their baggage is transported on the same flight, however, many things can make this task challenging and sometimes it cannot be avoided. Since this does occur from time to time, they suggest that a passenger should put their information inside the bags as well because sometimes external tags can be damaged or detached. If the tags on the outside of the bag are damaged it can sometimes be impossible to locate who the owner of the bag is. Many people have the same type of baggage so this can lead to even more confusion. Air Canada does not take responsibility for lost baggage but they are at least trying to help their customers so this type of thing doesn’t happen. There are some items that must be brought in your carry-on baggage which is what you bring with you on the plane to your seat. These items include laptops, house and car keys, medication, cash and high valued items such as cameras, jewellery and electronic devices. The reason why Air Canada wants these high valued and often breakable items to be carried with the passenger is so that if a checked bag gets lost, there would be a lot more complaints since that bag could potentially contain hundreds of dollars worth of stuff. If something inside the bag breaks, Air Canada does not want to be responsible for that. Air Canada makes it clear that oversized carry-on bags are not allowed as this can take up too much space, cause trouble and ultimately delay flights. Each person can carry two pieces of carry-on luggage with them on the plane. This includes one carry-on bag or suitcase which cannot weigh more than 22 pounds and cannot have dimensions larger than 23cm by 40cm by 55cm. A back pack, duffle bag or one of those over the shoulder purses would fall under this category. They may also bring along a personal article like a briefcase, laptop, camera case or something of that nature. This article cannot weigh more than 22 pounds and cannot have dimensions larger than 16cm by 33cm by 43cm. Items that may also be brought onto the plane in addition to your carry-on items include coats, infant care system, cell phones, mp3 players or a special need item. Special need items include objects that a person would need for mobility such as a cane, crutch or communication device. Generally anything that is small enough to fit inside your pocket or can easily be carried by hand is acceptable. A container carrying life sustaining items or personal medication is obviously acceptable as well. Ever since the terrorists attacks of 9/11, security and precautions for boarding an airplane are tighter and more thorough than they’ve ever been to prevent anything like that from ever happening again. This is why a new policy has been put into place which doesn’t allow passengers to bring liquid or gels in containers over 100ml/100g with them when boarding the plane. These items will be confiscated at the security checkpoint and additional charges may be applied in order to check the items’ safety. Bombs and other dangerous weapons can be made from certain types of liquids and Air Canada does not want to take any chances. Air Canada advises that passengers that are waiting for connecting flights do not buy these types of items until they reach their destination because this can be a waste of money if they are confiscated once again while boarding for the connecting flight. There are a list of items that are prohibited from being brought on as a carry-on item. These items should be stored in the passenger’s checked baggage. Some of these items include sharp, piercing or cutting objects such as scissors, knives, saws and drills as well as potentially dangerous sporting equipment such as ice skates or hunting equipment such as rifles and hunting gear of that nature. The only exceptions to this rule are syringes or needles that are for personal medical use. This must be accompanied by the prescription medication. Electronic devices that can interfere with the plane’s navigational or communication equipment are also not allowed. The use of Bluetooth headsets, radio transmitters and laser pointers will not be tolerated as they can interfere with the flight systems or the staff aboard the plane. These items should be stored in the checked baggage, however, as previously stated, Air Canada is not responsible for the destruction or loss of these items. There are other items considered dangerous goods that will be brought up. There are also items that are acceptable items to bring with you as carry-on items that people may be confused about. These items include electronic devices for entertainment such as cameras, portable video game devices, laptops and mp3 devices. One book of matches per person as well as a specific type of lighter are also items that are allowed to be brought with you on the plane. Everything else that cannot physically harm another person or are small enough to fit the size requirements of carry-on baggage are always acceptable. Passengers may also bring their cats or small dogs with them provided that they stay in its carrier under the owner’s seat at all times. For one way travel within Canada or to the United States, bringing a pet along costs $50, cannot weigh more than 22 pounds (carrier included) and the carrier cannot have dimensions larger than 23cm by 40cm by 55cm. This is because the airline attendants must be able to comfortably move around the plane as well as the fellow passengers. For one way travel to anywhere else, bringing a pet along costs $100 with the same limitations. For certain destinations such as Hawaii, pets must be stored under the plane with the checked baggage. To be eligible for this, the passenger will need to register their pet within 24 hours of booking the flight with Air Canada Reservations. The pet must be at least 8 weeks old and fully weaned as well. Other implications involve having to arrive 30 minutes prior to the recommended check in time as well as always be bestowed under the passenger’s seat. These requirements are for the pet’s safety as younger pets are not full developed, are weaker and may be more susceptible to sickness. There cannot be more than one pet per passenger and unaccompanied minors cannot bring a pet with them. No pets are allowed in the Executive First Suite and the carrier will count as the person’s one standard carry-on item. The reason why no pets are allowed in the Executive First Class Suites is because the people in first class have paid good money for these seats and they should not have to deal with the noise or nuisance that another passenger’s pet may cause. Since there are many allergy sufferers, Air Canada advises that you advise the agent at the check-in gate prior to departure and they will try as hard as possible to move you or the pet owner. Air Canada makes it clear that they will not be responsible for the loss, sickness or death of any pet even if it was accepted for transportation. For safety reasons, many items have been deemed dangerous goods and must not be brought in the checked baggage as well as carry-on baggage. These dangerous goods include compressed gases, explosives, flammable liquids, poisons or briefcases with installed alarm devices. Firearms, alcohol and oxidizing materials are all examples of items not allowed on a plane for obvious reasons. The last thing Air Canada would want is an unfortunate situation where one of their passengers have been seriously hurt because they allowed a dangerous item on board that clearly should not have been allowed. Air Canada is subject to the rules of the Montreal Convention and Warsaw Convention. These are both conventions that regulate the liability for international carriage of persons, baggage or goods performed by an aircraft. These rules are here to protect the airline if an accident occurs and bodily harm or damage to goods result. Going back to the General Conditions of Carriage, Air Canada states that they are not liable for perishables or liquids, nor are they responsible for the loss of valuable items such as money, jewellery, computers, business documents and so on. Air Canada also states that they are not responsible for the bodily harm or even death of one of their customers. When travelling, Air Canada requires that passengers provide information about themselves before boarding a plane. It is the passenger’s responsibility to provide these travel documents as well as the documents of any children travelling with them. Additional documents may be needed depending on the person’s country of origin. The passport is the best accepted piece of documentation proving a person’s citizenship. Air Canada indicates that a customer must bring their passport as part of their proof of citizenship. For Canadian and American citizens, a valid passport is always needed. Some other countries require that your passport be valid for at least 6 months prior to flying to their country. This is so that there will be no complications once arriving in their country that can cause unnecessary and lengthy delays. Children must also have their own documentation and cannot get by with just their parents documentation. Some countries allow this but this is not the case in Canada. For children, birth certificates showing the names of both parents, legal documents referring to custody and parental consent (if child is travelling with only one or neither of their parents) are all documents that must be showed on behalf of the child. The reason for this is they do not want one of the parents to have the authority or opportunity to leave the country with their child if they’ve had a feud with the other parent. There have been stories of couples that have gotten divorced and one of the parents take the child and leave to an unknown destination. Air Canada does not want to have to take responsibility for something like that happening on their airlines. For Visas, different countries have different rules and Air Canada suggests that you check with your travel agents for visa requirements of the countries you are planning to drive through. Some general rules include obtaining your visa well in advance to your flight because this may involve mailing your passport in briefly as well as the chance that there may be a long delay if you apply for a visa from a third country while travelling. Upon arrival in a foreign country, it may be required that a passenger must prove that they have sufficient funds to support themselves for their intended stay. This can include showing proof of a visa for that country if that is a requirement. The reason for this is countries don’t want to accept people that are going to end up stranded in their country because they don’t have the money to leave. This can only lead to trouble which they understandably do no want to deal with. Only Canadian permanent residents from non visa-waiver countries travelling outside Canada are required to carry a valid Canadian permanent resident card in addition to a valid passport to return to Canada from a commercial flight. This card proves your immigration status. Without it, the person will be unable to board the plane. Though most people are fit to take a plane, Air Canada realizes that there are some customers that may have special needs and they will try their best to accommodate these people. This assistance can include special meals or assistance for minors travelling without their parents. Anyone that may need assistance about checking in and boarding the plane will get the help they need as well as routine check ups to make sure they are doing fine. If a customer has a disability such as having to use an electric wheelchair, needs medical oxygen or has a severe medical or mental disability, it is important that they give 48 hours notice before departure as well as check in 2 hours before departure. This will give Air Canada and its employees enough time to plan and prepare for the passengers arrival so that there will be no delays and so that they can make the person’s flight experience as enjoyable as possible. If Air Canada decides that the person is in such a bad state that they think flying would be detrimental to their health, I believe Air Canada will not allow them to fly with their airlines for the benefit of the customer, but also for the benefit of their fellow passengers as well as the flight staff that would have to deal with this problem. There is also a section of the General Conditions of Carriage that talks about tariff regulations. The Montreal Convention or the Warsaw Convention system may be applicable to your journey. This may limit the liability that Air Canada carries for death or bodily injury as well as loss or damage to baggage as well as delays. If the Montreal Convention and Warsaw Convention systems both do not apply, the liability limit for loss or damage to baggage is $1500 per person. Any actions that one brings up in court must happen within 2 years of the date of arrival of the flight you were on. There is one final section in the General Conditions of Carriage which is an â€Å"Overbooking Notice†. This indicates that flights may become overbooked and there is a small chance that a seat may not be available for a person that has a confirmed reservation. No one will be denied a seat until an employee asked if there is anyone willing to give up there seat for that flight. If there are not enough volunteers, passengers will be denied according to the airlines boarding priority list. Passengers denied clearance for the flight will be compensated. The full rules are available at all airport ticket counters and boarding locations. The problem with this rule is that the boarding priority list is they give priority to the passengers that paid more for their ticket. This can be viewed as social discrimination as generally speaking, people that have more money to spend on luxury items will be the ones buying the more expensive ticket. This problem will be looked at and analyzed later on in the article.

Analysis and Interpretation of Don Juan

Analysis and Interpretation of Don Juan canto 1 stanza LXV to LXX: Don Juan was written by Lord Byron. He started writing it from 1818. The manuscript was not complete at the time of Byron's death in 1824. Byron coined the term â€Å"Byronic Hero†. Don Juan is definitely a Byronic Hero. He has all the Characteristics of a Byronic Hero. This poem constantly takes me back to the 1800s, because at that time women had no rights at all. If they married someone then they were treated like property of their husbands and if they stayed single then their parents dictated every single thing she did with every single person.For most part women were not allowed to stay single unless they were nuns or prostitutes. Even when they were married they were not allowed to hold control of inherited wealth. They did not have the right to own a slave or even vote. Women were economically dependent. If a woman did something wrong and people find out about it, she would be tainted and blemished forev er and also banished from society but if a man does the same thing or even worse, he could still be able to hold his head up high in society. Julia married Alfonso only because she had to. Alfonso never showed his jealousy because nobody likes a jealous person.Alfonso cared about what people thought and he was cleaver and careful. He never wanted people to know about his illegal affairs. I personally think Donna Inez is a psychopath and a Sociopath both. I mean why else would she use her son to destroy the relationship of her lover and his wife. Julia is not as complicated as Inez. Julia does not realize what Inez had in her mind. I think she thought Inez actually wanted to be her friend. Being a simple girl Julia probably didn’t know about Alfonso and Inez’s affair. When Juan was a child Julia showed affection for him but that was just normal and innocent.When Juan hit puberty something changed between both of them. They felt attracted to each other. As a grown woman Julia realized why she was feeling this way. But Juan is completely different. His mother never let him mix and mingle with people of his own age. At first he didn’t even realize what was happening to him. This poem follows a third person point of view. In these stanza’s Byron talks about lot of important issues but the tone is always humorous and satiric. Don Juan is a lot like Byron himself. The difference is Byron was highly educated and Juan had no interest in that line.

What is History exercise Essay Example | Topics and Well Written Essays - 1500 words

What is History exercise - Essay Example Five thousand years ago there may be many gaps in the historical record, fifty years ago there may be so much information that it is virtually impossible for a single historian to digest the material. Physical evidence from the past may provide firm evidence for what "really happened". Thus an archaeological dig of a battlefield may reveal a wealth of information about the type ammunition used, the number of dead and even the type of food that the armies were eating. However, even with a wealth of physical evidence, the historian's task is to place it in context. Thus, what does the type of food that was eaten by an army mean to the overall reality of what was occurring at a time Another difficulty with discovering "what really happened" is that the historian needs to decide from whose viewpoint are the occurrences being seen. The traditional, "great man" view of history, which tells of the happenings that occurred to Kings, Queens, Emperors, Presidents, Prime Ministers . . . . that is very different from a history of the ordinary or poor people. The latter may be virtually unaware of what is happening at the national level, while the former may ignore the plight of most of the people that they rule. So "what really happened" depends upon the point of view being taken. "Happening" is a multiple occurrence and has multiple dimensions according to the different groups and individuals being considered. In more recent history, the historian faces the challenge of having perhaps too much information. For example, a historian studying the assassination of President John F Kennedy will find hundreds of thousands of documents at his disposal. Indeed, a historian could go through a lifetime reading all the documentation and never come to an end. Thus, rather than trying to piece together the past from scattered and incomplete knowledge, the historian needs to select from among that knowledge. A degree of selection may also lead to a degree of bias as the historian is almost bound to choose those documents and sources that are of most interest to him or which support a preconceived notion regarding an event. 2. To what extent can a historian be objective A historian should at least try to be as objective as possible, but absolute objectivity is impossible. Thus the first task is to not 'judge" the historical period or figure being considered by the standards of your own time. Considering a figure such as Henry VIII through the eyes of the ethics and standards of the Twenty-First Century is both futile and debilitating to the historical process. A King (or an ordinary man) should be considered within the context of his time in order to understand what, how and why things occurred. In recent years the so called "new history" has often tried to re-interpret historical events according to the standards of today. Thus Feminist history seeks to explore the subjugation and oppression of women, gay history does the same for gay people etc. While a lot of fascinating scholarship appears within these genres of history, the actual sense of the place and time being considered often becomes lost within the ideological vigor of the historian. Such historians often seem to pride themselves on the fact that they are not being objective. To be fair, those proponents of new history would suggest that traditional historians are just as un-objective through their uncritical analysis of patriarchal, sexist, homophobic societies. The new historians claim that not to

You can decide the topic whatever you want by those requirements I Essay - 10

You can decide the topic whatever you want by those requirements I posted - Essay Example The painting has recurring rhythmic pattern similar to rhythm as used in jazz. Jazz are unique music in which he various musical elements including the lyric work in tandem to create a unified rhythm. The painter uses rhyming shapes, sizes and color among other design elements to create a unified piece. The painter’s ability to use various design elements ye achieve harmony in the final product is a feature unique to jazz music. The selection of bold colors and a jumbled sound pattern in the painting makes its structure synonymous to that of rock and roll type of music. Just as with any other professional painter, Delaunay uses the various design elements strategically in order to achieve both harmony and emphasis in the painting. However, his choice of the design elements to use makes the painting grab attention, as is the case with the high-pitched rhythm of rock music. Jacques-Louis David portrays his painting genius in the painting as he employs numerous principles of design. Principles of design refer to acceptable set of rules that govern the utilization of the various visual elements that painters use. The design elements include space, color, form and texture among others. A painter uses more than a single design element when creating an artifact as is the case with The Death of Socrates painted by Jacques-Louis David’s painting. The renowned painter therefore observes a number of design principles thus ensuring that the he creates a holistic painting that communicates effectively. Key among the principles is similarity and contrast. The principle of design seeks to enhance the portrayal of a focal point in a painting. Painters always use the various elements similarly. However, too much similarity in the use of the elements makes a painting boring. Jacques-Louis David uses various elements similarly while contrasting others at strategic stages thus creating a cohesive painting. The people in the painting for

Case study of Jack Term Paper Example | Topics and Well Written Essays - 500 words

Case study of Jack - Term Paper Example For example, Freud would say that Jack Welch has specific abilities that he inherits from his biology. He stutters, which would be considered abnormal in today’s society. Thus, as a result this lays a genetic abnormality that is influencing the behavior of the individual. In addition, Freud would also comment on the number of divorces he had as the result of a problem in his psychosocial development, since Freud believed that humanity functioned on two principles alone: death and sex. Because Jack Welch has shown that he is unable to keep stable relationships, this poses an interesting problem as far as diagnosing where the abnormality lies in his psychosocial skills. Erikson, who was a student of Freud’s, would argue that the environment and relationships shape a person more so than the deterministic biological view. Erikson would say that Welch was able to overcome a majority of the psychosocial stages of development, such as inferiority vs. industry because he was ab le to find a way to be a very productive member in society. However, because he has had so many relationship problems, the comment could be made that there is neuroticism in the Intimacy vs. Isolation stage where he is unable to make a concrete relationship last a while.

Designing Compensation Systems and Employee Benefits Assignment

Designing Compensation Systems and Employee Benefits - Assignment Example Job analysis will include determining what physical as well as mental abilities are needed to meet job responsibilities. The analysis will also include how the job will be completed and outline any equipment, material and tools necessary to complete the job. The job description will describe how the particular position fits into the company and works with other jobs in the same department and the chain of command should be well defined. The analysis will include employee policy, compensation, job hazards, expected schedule and any additional terms of employment. Job evaluation is the technique that is used to assign specific jobs to certain pay grades and levels in the company hierarchy. This technique usually ranks jobs in order of technicality or difficulty and responsibility. Job evaluation factors will include skill, effort, responsibility and working conditions (Jenns†¦). Responsibility can include factors such as decision making ability required, financial responsibility, ability to take initiative and act alone, contact with others and latitude in job performance. Effort will outline mental effort, concentration, complexity or difficulty and problem solving ability. ... The Equal Pay Act determined that jobs need to be substantially equal though not identical (The Wage†¦) and that an employer cannot change job titles in order to pay one employee less than the other. Responsibilities are to be outlined which differentiate jobs from each other. It is strictly prohibited to pay one employee less whose position requires the same responsibilities as another position when an employee has equal length of time on the job and is equal in every other aspect. The job evaluation process includes collecting factors about each job that needs evaluation, which can be completed using job analysis surveys, questionnaires, observations, interviews and job descriptions. Once this has been completed jobs are systematically rated according to the specific evaluation factors selected such as by skill, effort, responsibility or working conditions. Points can be assigned for each factor and factors can then be further divided into smaller groups. Job evaluation points can be used to visualize on a graph the relationship between the internal structure of the company and the market. The job description is the basis from which a job evaluation can be performed. External factors that are used in job evaluations include salary information that is gathered and compiled by consulting agencies whose primary function is to provide accurate information for comparison by those in human resources assigning salary and pay grades to job positions. Survey information will consider job match, the size of the company, the job industry, geography and ownership. Internal job factors which are used in job evaluation analyze job documentation to determine the scope and complexity of the position, potential impact the job has on the company and those factors already

How Does Real Estate Affect the US Economy Assignment

How Does Real Estate Affect the US Economy - Assignment Example It might be interesting to note that many sources define real estate as "land and everything made permanently a part thereof, and the nature and extent of one's interest therein" (Real Estate 2007). It is important to remember that the land may not be worth very much in and of itself. It is valuable because of the interest it holds for the owner. Perhaps the land is valuable because of its position in relation to something else. Or it could be valuable because of what lies underneath the soil such as oil, minerals, or even archeological treasures. Or perhaps valuable things reside on its surfaces such as timber, animals, or historical sites. Or it could simply be that the most valuable asset of land is what it can be used for. It then becomes clear that the true purpose of real estate is to create a situation in which the land is developed so it is being used to appropriately further the interest of its owner. According to a brief review of real estate in Wikipedia (Real Estate 2008) real estate covers every step in the process of acquiring or disposing of land. When an individual wishes to find a particular property she may consult a real estate brokerage in hopes of either buying property or investing in the property.   Some individuals wish to retain ownership of their property for a variety of reasons but may allow others to use it. They may rent out the buildings or give permission for the land to be farmed or for a profit-generating structure to be built on it. In cases where the primary purpose of a property is to make a profit those involved move into the area of commercial real estate. Commercial real estate can involve the building of a hospital, parking garage, shopping mall, and in some cases (especially for tax and loan purposes) residential structures which will house a specific number of people (Real Estate 2008). Keeping in mind that real estate includes the buildings as well as the land such individuals may require assistance in keeping up with all the things required of the myriad options and transactions required in dealing with property. Real estate has taken this into account and created yet another subfield called property management that devotes its time and resources to exactly this sort of arrangement. Property management tends to be a highly sought real estate service especially among those individuals who own several properties that are rented out and for commercial properties (Real Estate 2008).

Machiavelli on Powers of NSA and Defense Spending Research Paper

Machiavelli on Powers of NSA and Defense Spending - Research Paper Example The growing security concerns in the country are arguable and justifiably especially following the events of 9/11. The relativity of the organization’s spending is admissible by the dictates of such iconic think tanks as the Italian Niccolo di Bernardo dei Machiavelli as the discussion below portrays. Niccolo di Bernardo dei Machiavelli was an early Italian politician, philosopher, and diplomat. Machiavelli influenced modern day politics with most historians acknowledging his ideas as the basis for contemporary politics. Among his major contributions was the political ethics which is a concept that explains the conduct of politicians and the policies they enact. The philosopher developed a concept known as Machiavellianism which is a negative term referring to unscrupulous politicians. Such politicians foster their own ambitions while disregarding the desires of the electorate who Machiavelli explains wield the power owing to their fundamental role of electing the leaders. Dem ocracy is a form of governance through which the population elects representatives who rule on their behalf. In a democratic society, the electorate constitutes a fundamental piece of the society and plays an integral role in the governance of the society. The political ideology arises from the social contract theory which posits that since not everyone can rule, the society elects few people with desirable qualities to lead them for a particular period. Within the period, the leaders make decisions through policies. However, in doing so, the leaders must safeguard the desires of the people. This implies that the leaders must maintain an interactive relationship with the electorate in order to determine the wishes of the people. The policies the leaders formulate and enact must represent the desires of the people and uphold humanity. In his work, The Prince, Machiavelli investigates the creation of democratic institutions and the conduct of politicians at the time (Althusser & Mathe ron, 2000). As a philosopher, Machiavelli explains that elected leaders, unlike in dynasties, must possess desirable qualities and sustain their conduct. In doing so, political leaders must exhibit humility and understanding of the issues facing their electorate. By considering such, the policies the leaders formulate and enact will reflect the desires of the people (Cunningham, Rogers & United States, 2005). Constant consultation between the electorate and the leadership is essential in the representation process as the leaders must always enact policies that uphold the freedoms of the people. Among the issues that Machiavelli contends that is essential in the development of free and fair societies is security. The leaders must sustain the security of their societies. Machiavelli explains that the security of the society is priceless and important to the electorate. The contract between the society and the leaders as explained in the social contract theory centers on creation of sa fe and secure societies. A country must employ its every resources in ensuring that its boarders are safe and free from foreign interference. Machiavelli’s doctrines and philosophies can help explain some of if his possible thoughts on the structure of modern society and the functions and powers of some of the state agencies.

Heroes and Celebrities Research Paper Example | Topics and Well Written Essays - 750 words

Heroes and Celebrities - Research Paper Example Celebrities on the other hand are renowned popular personalities from the entertainment, sports, social or political origin usually with professional mission – who have essentially mesmerized the common mass with extensive fan-following through media publicity, sensational enterprising which at times may have positive significance or mere dramatic impression on the community. Heroes play an essential and pivotal role shaping and developing the lives of the common mass to aspire and inspire them to the esteemed goal. However in the present scenario with the advent of the globalization, fast lifestyle and rate-race, the differentiation between the terminologies ‘heroes’ and ‘celebrities’ is often forgotten and overlapping. In this current era of ‘reality TV shows’ like Survivor, The Amazing Race, American Idol, The Swan, Extreme Makeover, Big Brother etc. with the creation of instant celebrity status and even at times infamy hypes – the cult celebrity worship has almost become synonymous to heroic aspirations. In this context the common population in the recent times have become more prone to ‘herd response’ whereby an enormous group of people react in the specific direction the media broadcasts and advertisements would attract and appeal them to through enchantment of glitz-glamour, monetary-allur ement or dream-fascination. The traditional beliefs in regards to celebrity establishment and hero-worshipping are getting fundamentally transformed from the very foundation with the presence of luck fortune and at times prosperity, the common people are gaining the celebrity prominence and becoming the social icon almost overnight, especially in shows like the American Idol, The Swan, Extreme Makeover and the like. With the introduction of cosmetic surgery and hi-tech beautification methodologies within the reach of the common contestants till that time as in the

RoMay SitzeCase Study on Carl Robins Essay Example for Free

RoMay SitzeCase Study on Carl Robins Essay A recruiter’s job is to help a company or organization find new talent; they are also responsible for making sure that all new hires have completed all paperwork and maintain an ethical relationship with department heads. Introduction This case study will evaluate the performance of Carl Robins, a new campus recruiter for ABC, Inc. With only having six months experience, he failed to organize, follow-up, and reserve a room to train the 15 people he successfully recruited. The new trainees will be working for Monica Carrolls, the Operations Supervisor. Carl has been procrastinating, failing to meet the required deadline for a new hire orientation that will take place on June 15. The new employees require an orientation on company policy, manuals to learn the required policies, physicals, and drug screenings, and other issues that may arise as time whines down. On May 15, Carl was contacted by Monica and he assured her that everything was a go for that particular date and things were running as scheduled. After Memorial Day, Carl realized that the new trainees’ applications were not complete, their transcripts were not on file, and none of them had been sent for mandatory drug screening. Carl also found Joe from technology services reserved the training room for the whole month of June for computer training seminars, leaving Carl with nowhere for his orientation. Key Problems It is very clear that there is a lack of proper follow-up resulting in problems with drug screening and proper paperwork being filed, along with several issues with scheduling of assets and availability of training materials. Carl’s performance seems that he is not fully trained or inexperienced to complete the orientation of new employees with ABC, Inc. Before Carl started recruiting he did not have a plan in place for or after he met his goal of recruiting 15 new people for the company he is working  for. Being that this is his first recruitment effort, he was only focused on getting new hires in the door to show that he was capable of performing his duties as a new campus recruiter, rather than the bigger picture of what will happen after the new recruits were hired. He did not take in consideration all the elements involved with the hiring and training of the new hires; like making sure all documents were up-to-date prior to hiring. Carl has poor working ethics and there fore is incompetent in his job. He is also disorganized and doesn’t meet deadline goals. It appears that Carl was not involved or presence during the whole process of hiring new employees, allowing them to be hired without completing required documents, drug testing, and other issues that problems that are happening. Carl jeopardized the entire orientation because the lack of experience he has and the manner in which nothing was followed up or secured in a timely manner. He also was not involved with checking or ensuring the training room was reserved. It seems that he was depending on other sources to make sure the training room was available for the entire month of June. Alternatives There are a few alternatives to the dilemma Carl has put himself in. The first alternative is to postpone the orientation for another month or until Carl can secure the training room and have all the training materials in place. He will need to contact each new employee and have them come in to complete the required paperwork, hoping the potential trainees may not seek employment elsewhere, and are ready to start working in July. He will then be able to contact the drug testing center to schedule the employees’ drug screening prior to the orientation date. Carl needs to also meet with Monica Carrolls and report the discrepancies and then find a strategy for planning a successful orientation. The second alternative would be to keep the orientation as scheduled and work with other co-workers asking for any suggestions that will help, such as senior recruiters that are better equipped for the job. They will work together in finding ways to accommodate the new employees with their applications, drug testing, and anything missing from their files. All the employees in the company should work together on different projects, where at least one of the projects is one in which they are competent in and one in which they think they will be able to produce more efficiently because of their competencies or interest. Carl  needs to get a policy handbook and make copies so that every new employee has their own copy of rules and regulations so they are ready to start working by July. The team will also help with finding another location for holding the orientation; calling hotels that have conference rooms or locate restaurants that are available for June 15. With finding another location there may be a rental fee that Carl may have to come out of pocket for being that he did not follow through with reassuring the training room would be available. After the location has been found, Carl will need to contact his new trainees about the changes affecting the orientation. Proposed Solution Carl knew the deadline for new hires to enter the orientation, he should have ensured all documents were complete prior to hiring. This will ensure all records are up-to-date before the training process is to take place. Carl should check all manuals; making sure there is enough to go around; preparing himself for the orientation. Each new trainee should have been scheduled for their individual physicals and drug screenings immediately; making sure that everyone is exact on times and dates. Once the results are back, reviewed, and approved for hire, notifying the trainees. Carl had the entire month of May to schedule the training room, he should have immediately scheduled the training room. Since the training room was already booked, he should have then found another conference room within the company or rented another conference room within the area. Recommendations I recommend Carl postpone the orientation until the following month. This will give him enough time to schedule each trainees’ drug testing and make sure everyone’s paperwork is up-to-date and on the proper file. This will also give him enough time to find other replacements if there is any discrepancies with the prior trainees. It will also give him time to do the proper follow-ups if needed. Time management is the key to success and is an important aspect in being a recruiter especially when a crisis occurs; there is more procrastinating than actual work being done. I also recommend that Carl go through intensive training as well. One way ABC, Inc., can improve employee performance is by using more effective and efficient performance management programs. Carl needs to master his ability to work on his own and go through the proper channels to ensure this will never happen again.  This will give him the knowledge into how to properly train and how to complete personn el files on his own. He will also learned how to become better organized and to correctly find solutions when faced with situations that jeopardize the completion of another orientation in the near future. Carl should be fully aware of all the recruiting processes and see that all steps are followed properly. When all else fails, he should also consider sitting down with Monica Carroll to review the expectations of his position, including performances, protocol, and other duties pertaining to the recruitment requirements. I would use this situation as a learning experience and move forward, knowing that having a panic attack will not solve the issue. I would also recommend that when the training room is booked, be prepared to either find another room within the company or have another location available. Having a Plan B will show that he is prepared for the worst scenarios. In conclusion, Carl’s procrastination and lack of experience may have played a major part in the results of not having completed a successful orientation. Being responsible for every aspect of bringing new trainees on-board to making sure all follow-ups are done in a time manner and completed will become vita l for a company’s success and growth. Better employees will be attracted to ABC, Inc. if there were more experienced personnel able to handle all and any situations that may arise.

Trends in Fiscal Policy of India Essay Example for Free

Trends in Fiscal Policy of India Essay ABSTRACT This essay traces the major developments in India’s fiscal policy from the early stages of planned development in the 1950s, through the country’s balance of payments crisis of 1991, the subsequent economic liberalisation and rapid growth phase, the response to the global financial crisis of 2008 and the recent post-crisis moves to return to a path of fiscal consolidation. The initial years of India’s planned Development strategy were characterised by a conservative fiscal policy whereby deficits were kept under control. The tax system was geared to transfer resources from the private sector to fund the large public sector driven industrialization process and also cover social welfare schemes. However, growth was anaemic and the system was prone to inefficiencies. In the 1980s some attempts were made to reform particular sectors. But the public debt increased, as did the fiscal deficit. India’s balance of payments crisis of 1991 led to economic liberalisation. The reform of the tax system commenced. The fiscal deficit was brought under control. When the deficit and debt situation again threatened to go out of control in the early 2000s, fiscal discipline legalisations were instituted. The deficit was brought under control and by 2007-08 a benign macro-fiscal situation with high growth and moderate inflation prevailed. During the global financial crisis fiscal policy responded with counter-cyclical measures including tax cuts and increases in expenditures. The post-crisis recovery of the Indian economy is witnessing a correction of the fiscal policy path towards a regime of prudence. In the future, the focus would probably be on bringing in new tax reforms and better targeting of social expenditures. INTRODUCTION Fiscal policy is the means by which a government adjusts its levels of spending in order to monitor and influence a nations economy. It is the sister strategy to monetary policy with which a central bank influences a nations money supply. These two policies are used in various combinations in an effort to direct a countrys economic goals. Here we take a look at how fiscal policy works, how it must be monitored and how its implementation may affect different people in an economy. Fiscal policy deals with the taxation and expenditure decisions of the government.Monetary policy, deals with the supply of money in the economy and the rate of interest.These are the main policy approaches used by economic managers to steer the broad aspects of the economy. In most modern economies, the government deals with fiscal policy while the central bank is responsible for monetary policy. Fiscal policy is composed of several parts. These include, tax policy, expenditure policy, investment or disinvestment strategies and debt or surplus management. Fiscal policy is an important constituent of the overall economic framework of a country and is therefore intimately linked with its general economic policy strategy. For example, if taxes were to increase, consumers would have less disposable income and in turn would have less money to spend on goods and services. This difference in disposable income would go to the government instead of going to consumers, who would pass the money onto companies. Or, the government could choose to increase government spending by directly purchasing goods and services from private companies. This would increase the flow of money through the economy and would eventually increase the disposable income available to consumers. Unfortunately, this process takes time, as the money needs to wind its way through the economy, creating a significant lag between the implementation of fiscal pol icy and its effect on the economy. In broad term fiscal policy refers to that segment of national economic policy which is primarily concerned with the receipts and expenditure of central government. The importance of fiscal policy is high in underdeveloped countries. The state has to play active and important role. In a democratic society direct methods are not approved. So, the government has to depend on indirect methods of regulations. In this way, fiscal policy is a powerful weapon in the hands of government by means of which it can achieve the objectives of development. BASIC CONCEPTS : A spending item is a capital expenditure if it relates to the creation of an asset that is likely to last for a considerable period of time and includes loan disbursements. Such expenditures are generally not routine in nature. By the same logic a capital receipt arises from the liquidation of an asset including the sale of government shares in public sector companies (disinvestments), the return of funds given on loan or the receipt of a loan. This again usually arises from a comparatively irregular event and is not routine. In contrast, revenue expenditures are fairly regular and generally intended to meet certain routine requirements like salaries, pensions, subsidies, interest payments, and the like. Revenue receipts represent regular earnings for instance tax receipts and non-tax revenues including from sale of telecom spectrums. There are various ways to represent and interpret a government’s deficit. The simplest is the revenue deficit which is just the difference between revenue receipts and revenue expenditures. Revenue Deficit = Revenue Expenditure – Revenue Receipts (that is Tax + Non-tax Revenue) A more comprehensive indicator of the government’s deficit is the fiscal deficit. This is the sum of revenue and capital expenditure less all revenue and capital receipts other than 6loans taken. This gives a more holistic view of the government’s funding situation since it gives the difference between all receipts and expenditures other than loans taken to meet such expenditures. Fiscal Deficit = Total Expenditure (that is Revenue Expenditure + Capital Expenditure) –(Revenue Receipts + Recoveries of Loans + Other Capital Receipts (that is all Revenue and Capital Receipts other than loans taken)) â€Å"The gross fiscal deficit (GFD) of government is the excess of its total expenditure, current and capital, including loans net of recovery, over revenue receipts (including external grants) and non-debt capital receipts.† The net fiscal deficit is the gross fiscal deficit reduced by net lending by government (Dasgupta and De, 2011). The gross primary deficit is the GFD less interest payments while the primary revenue deficit is the revenue deficit less interest payments. ARCHITECTURE: The Indian Constitution provides the overarching framework for the country’s fiscal policy. India has a federal form of government with taxing powers and spending responsibilities being divided between the central and the state governments according to the Constitution. There is also a third tier of government at the local level. Since the taxing abilities of the states are not necessarily commensurate with their spending responsibilities, some of the centre’s revenues need to be assigned to the state governments. To provide the basis for this assignment and give medium term guidance on fiscal matters, the Constitution provides for the formation of a Finance Commission (FC) every five years. Based on the report of the FC the central taxes are devolved to the state governments. The Constitution also provides that for every financial year, the government shall place before the legislature a statement of its proposed taxing and spending provisions for legislative debate an d approval. This is referred to as the Budget. The central and the state governments each have their own budgets. The central government is responsible for issues that usually concern the country as a whole like national defense, foreign policy, railways, national highways, shipping, airways, post and telegraphs, foreign trade and banking. The state governments are responsible for other items including, law and order, agriculture, fisheries, water supply and irrigation, and public health. Some items for which responsibility vests in both the Centre and the states include forests, economic and social planning, education, trade unions and industrial disputes, price control and electricity. There is now increasing devolution of some powers to local governments at the city, town and village levels. The taxing powers of the central government encompass taxes on income (except agricultural income), excise on goods produced (other than alcohol), customs duties, and inter-state sale of goods. The state governments are vested with the power to tax agricultural income, land and buildings, sale of goods (other than inter-state), and excise on alcohol. Besides the annual budgetary process, since 1950, India has followed a system of five-year plans for ensuring long-term economic objectives. This process is steered by the Planning Commission for which there is no specific provision in the Constitution. The main fiscal impact of the planning process is the division of expenditures into plan and non-plan components. The plan components relate to items dealing with long-term socioeconomic goals as determined by the ongoing plan process. They often relate to specific schemes and projects. Furthermore, they are usually routed through central ministries to state governments for achieving certain desired objectives. These funds are generally in addition to the assignment of central taxes as determined by the Finance Commissions. In some cases, the state governments also contribute their own funds to the schemes. Non-plan expenditures broadly relate to routine expenditures of the government for administration, salaries, and the like. While these institutional arrangements initially appeared adequate for driving the development agenda, the sharp deterioration of the fiscal situation in the 1980s resulted in the balance of payments crisis of 1991, which would be discussed later. Following economic liberalization in 1991, when the fiscal deficit and debt situation again seemed to head towards unsustainable levels around 2000, a new fiscal discipline framework was instituted. At the central level this framework was initiated in 2003 when the Parliament passed the Fiscal Responsibility and Budget Management Act (FRBMA). Taxes are the main source of government revenues. Direct taxes are so named since they are charged upon and collected directly from the person or organization that ultimately pays the tax (in a leg al sense).Taxes on personal and corporate incomes, personal wealth and professions are direct taxes. In India the main direct taxes at the central level are the personal and corporate income tax. Both are till date levied through the same piece of legislation, the Income Tax Act of 1961. Income taxes are levied on various head of income, namely, incomes from business and professions, salaries, house property, capital gains and other sources (like interest and dividends).Other direct taxes include the wealth tax and the securities transactions tax. Some other forms of direct taxation that existed in India from time to time but were removed as part of various reforms include the estate duty, gift tax, expenditure tax and fringe benefits tax. The estate duty was levied on the estate of a deceased person. The fringe benefits tax was charged on employers on the value of in-kind non-cash benefits or perquisites received by employees from their employers. Such perquisites are now largely taxed directly in the hands of employees and added to their personal income tax. Some states charge a tax on professions. Most local governments also charge property owners a tax on land and buildings. Indirect taxes are charged and collected from persons other than those who finally end up paying the tax (again in a legal sense). For instance, a tax on sale of goods is collected by the seller from the buyer. The legal responsibility of paying the tax to government lies with the seller, but the tax is paid by the buyer. The current central level indirect taxes are the central excise (a tax on manufactured goods), the service tax, the customs duty (a tax on imports) and the central sales tax on inter-state sale of goods. The main state level indirect tax is the post-manufacturing (that is wholesale and retail levels) sales tax (now largely a value added tax with intra-state tax credit). The complications and economic inefficiencies of this multiple cascading taxation across the economic value chain (necessitated by the constitutional assignment of taxing powers) are discussed later in the context of the proposed Goods and Services Tax (GST). EVOLUTION (TILL 1991) India commenced on the path of planned development with the setting up of the Planning Commission in 1950. That was also the year when the country adopted a federal Constitution with strong unitary features giving the central government primacy in terms of planning for economic development (Singh and Srinivasan, 2004). The subsequent planning process laid emphasis on strengthening public sector enterprises as a means to achieve economic growth and industrial development. The resulting economic framework imposed administrative controls on various industries and a system of licensing and quotas for private industries. Consequently, the main role of fiscal policy was to transfer private savings to cater to the growing consumption and investment needs of the public sector. Other goals included the reduction of income and wealth inequalities through taxes and transfers, encouraging balanced regional development, fostering small scale industries and sometimes influencing the trends in econ omic activities towards desired goals (Rao and Rao, 2006). In terms of tax policy, this meant that both direct and indirect taxes were focussed on extracting revenues from the private sector to fund the public sector and achieve redistributive goals. The combined centre and state tax revenue to GDP ratio increased from 6.3 percent in 1950-51 to 16.1 percent in 1987-88.For the central government this ratio was 4.1 percent of GDP in 1950-51 with the larger share coming from indirect taxes at 2.3 percent of GDP and direct taxes at 1.8 percent of GDP. Given their low direct tax levers, the states had 0.6 percent of GDP as direct taxes and 1.7 percent of GDP as indirect taxes in 1950-51. The government authorised a comprehensive review of the tax system culminating in the Taxation Enquiry Commission Report of 1953. However, the government then invited the British economist Nicholas Kaldor to examine the possibility of reforming the tax system. Kaldor found the system inefficient and inequitable given the narrow tax base and inadequate reporting o f property income and taxation. He also found the maximum marginal income tax rate at 92 percent to be too high and suggested it be reduced to 45 percent. In view of his recommendations, the government revived capital gains taxation, brought in a gift tax, a wealth tax and an expenditure tax (which was not continued due to administrative complexities) (Herd and Leibfritz, 2008). Despite Kaldor’s recommendations income and corporate taxes at the highest marginal rate continued to be extraordinarily high. In 1973-74, the maximum rate taking in to account the surcharge was 97.5 percent for personal income above Rs. 0.2 million. The system was also complex with as many as eleven tax brackets. The corporate income tax was differential for widely held and closely held companies with the tax rate varying from 45 to 65 percent for some widely held companies. Though the statutory tax rates were high, given a large number of special allowances and depreciation, effective tax rates were much lower. The Direct Taxes Enquiry Committee of 1971 found that the high tax rates encouraged tax evasion. Following its recommendations in 1974-75 the personal income tax rate was brought down to 77 percent but the wealth tax rate was increased. The next major simplification was in 1985-86 when the number of tax brackets was reduced from eight to four and the highest income tax rate was brought down to 50 percent. In indirect taxes, a major component was the central excise duty. This was initially used to tax raw materials and intermediate goods and not final consumer goods. But by 1975-76 it was extended to cover all manufactured goods. The excise duty structure at this time was complicated and tended to distort economic decisions. Some commodities had specific duties while others had ad valorem rates. The tax also had a major †cascading effect‟ since it was imposed not just on final consumer goods but also on inputs and capital goods. In effect, the tax on the input was again ta xed at the next point of manufacture resulting in double taxation of the input. Considering that the states were separately imposing sales tax at the post-manufacturing wholesale and retail levels, this cascading impact was considerable. The Indirect Tax Enquiry Report of 1977 recommended introduction of input tax credits to convert the cascading manufacturing tax into a manufacturing value added tax (MANVAT). Instead, the modified value added tax (MODVAT) was introduced in a phased manner from 1986 covering only selected commodities. The other main central indirect tax is the customs duty. Given that imports into India were restricted, this was not a very large source of revenue. The tariffs were high and differentiated. Items at later stages of production like finished goods were taxed at higher rates than those at earlier stages, like raw materials. Rates also differed on the basis of perceived income elasticities with necessities taxed at lower rates than luxury goods. In 1985-86 the government presented its Long-Term Fiscal Policy stressing on the need to reduce tariffs, have fewer rates and eventually remove quantitative limits on imports. Some reforms were attempted but due to revenue raising considerations the tariffs in terms of the weighted average rate increased from 38 percent in 1980-81 to 87 percent in 1989-90. By 1990-91 the tariff structure had a range of 0 to 400 percent with over 10 percent of imports subjected to tariffs of 120 percent or more. Further complications arose from exemptions granted outside the budgetary process.In 1970-71, direct taxes contributed to around 16 percent of the central government’s revenues, indirect taxes about 58 percent and the remaining 26 percent came from nontax revenues. By 1990-91, the share of indirect taxes had increased to 65 percent, direct taxes shrank to 13 percent and non-tax revenues were at 22 percent. COMPOSITION OF CENTRAL GOVERNMENT REVENUES (1970-71): SOURCE: , http://dbie.rbi.org.in (Reserve Bank of India, 2011) COMPOSTION OF CENTRAL GOVERNMENT REVENUES(1990-91): SOURCE: , http://dbie.rbi.org.in (Reserve Bank of India, 2011) India’s expenditure norms remained conservative till the 1980s. From 1973-74 to 1978-79 the central government continuously ran revenue surpluses. Its gross fiscal deficit also showed a slow growth with certain episodes of downward movements.The state governments also ran revenue surpluses from 1974-75 to 1986-87, barring only 1984-85. Thereafter, limited reforms in specific areas including trade liberalisation, export promotion and investment in modern technologies were accompanied by increased expenditures financed by domestic and foreign borrowing (Singh and Srinivasan, 2004). The central revenue deficit climbed from 1.4 percent of GDP in 1980-81 to 2.44 percent of GDP by 1989-90. Across the same period the centre‟s gross fiscal deficit (GFD) climbed from 5.71 percent to 7.31 percent of GDP. Though the external liabilities of the centre fell from 7.16 percent of GDP in 1982-83 to 5.53 percent of GDP by 1990-91, in absolute terms the liabilities were large. Across the same period the total liabilities of the centre and the states increased from 51.43 percent of GDP to 64.75 percent of GDP. This came at the cost of social and capital expenditures. The interest component of aggregate central and state government disbursements reflects this quite clearly. The capital disbursements decreased from around 30 percent in 1980-81 to about 20 percent by 1990-91. In contrast, the interest component increased from around 8 percent to about 15 percent across the same period.Within revenue expenditures, in 1970-71, defence expenditures had the highest share of 34 percent; interest component was 19 percent while subsidies were only 3 percent. However, by 1990-91, the largest component was the interest share of 29 percent with subsidies constituting 17 percent and defence only 15 percent. Therefore, besides the burden of servicing the public debt, the subsidy burden was also quite great. While India‟s external debt and expenditure patterns were heading for unsustainable levels, the proximate causes of the balance of payments crisis came from certain unforeseen external and domestic political events. The First Gulf War caused a spike in oil prices leading to a sharp increase in the government‟s fuel subsidy burden. Furthermore, the assassination of former Prime Minister Rajiv Gandhi increased political uncertainties leading to the withdrawal of some foreign funds. The subsequent economic reforms changed the Indian economy forever. LIBERALIZATION ,GROWTH ,INCLUSION AND FISCAL CONSOLIDATION (1991-2008): Following the balance of payments crisis of 1991, the government commenced on a path of economic liberalisation whereby the economy was opened up to foreign investment and trade, the private sector was encouraged and the system of quotas and licences was dismantled. Fiscal policy was re-oriented to cohere with these changes. The Tax Reforms Committee provided a blue print for reforming both direct and indirect taxes. Its main strategy was to reduce the proportion of trade taxes in total tax revenue, increase the share of domestic consumption taxes by converting the excise into a VAT and enhance the contribution of direct taxes to total revenue. It recommended reducing the rates of all major taxes, minimizing exemptions and deductions, simplifying laws and procedures, improving tax administration and increasing computerisation and information system modernisation. As a part of the subsequent direct tax reforms, the personal income tax brackets were reduced to three with rates of 20, 30 and 40 percent in 1992-93. Financial assets were removed from the imposition of wealth tax and the maximum rate of wealth tax was reduced to 1 percent. Personal income tax rates were reduced again to 10, 20, and 30 percent in 1997-98. The rates have largely remained the same since with the exemption limit being increased and slab structure raised from time to time. A subsequent 2 percent surcharge to fund education was later made applicable to all taxes. The basic corporate tax rate was reduced to 50 percent and the rates for different closely held companies made uniform at 55 percent. In 1993-94, the distinction between the closely held and the widely held companies was removed and the uniform tax rate was brought down to 40 percent. The rate was further reduced to 35 percent with a 10 percent tax on distributed dividends in 1997-98 (Rao and Rao, 2006). Despite these reforms, the tax system continued to have preferential exemptions and deductions as tax incentives for various socio-economic goals including location of industries in backward areas, export promotion and technology development. This led to the phenomenon of „zero-tax companies‟ whereby imaginative arrangements were use to leverage all these tax incentives with an intent to minimise tax liabilities. To counter this trend,the Minimum Alternative Tax (MAT) was introduced in 1996-97. It required a company to pay a minimum of 30 percent of book profits as tax. Further attempts to expand the tax base and increase revenues were the introduction of the securities transaction tax (STT) in 2004 and the fringe benefit tax (FBT) in the budget of 2005-06 In indirect taxes, the MODVAT credit system for excise was expanded to cover most commodities and provide a comprehensive credit system by 1996-97. The eleven rates were merged into three with a few luxury items subject to additional non-rebatable tax in 1999-2000. In 2000-01, the three rates were merged in to a single rate and renamed as central VAT (CENVAT). There remained three additional excises of 8, 16 and 24 percent. In case of custom duties, in 1991-92 all duties on non-agriculture goods that were above 150 percent were brought down to this rate. The „peak rate‟ was brought down to 40 percent in 1997-98, 30 percent in 2002-03, 25 percent in 2003-04, and 15 percent in 2005-06. The number of major duty rates was also brought down from 22 in 1990-91 to 4 in 2003-04. These four rates covered almost 90 percent of customs collected from items. This period also saw the introduction of the service tax in 1994-95, which was subsequently expanded to cover more and more services. Given that the Indian economy was having an increasingly large service component this increasingly became a major source of revenue. Eventually, provisions were made for allowing input tax credits for both goods and services at the central indirect tax level. Despite the reforms in central taxes, even after the economic reforms of 1991, state government tax reforms were inadequate and sporadic. A major move in this direction was the coordinated simplification of the state sales tax system in 1999. This eventually led to the introduction of a VAT in 21 states in 2005. The value added tax gives credit to taxes paid on inputs and provides relief from cascading. Implemented at the retail level this replaced the cascading sales tax providing great relief to consumers and traders alike while enhancing the revenues of the state government. The administrative design of the VAT ensures reporting of inputs and outputs resulting in substantial reduction in tax evasion. The basic features of the tax include two rates of 4 percent for common consumption commodities and inputs and 12.5 percent for the others. Some essential items are exempted and precious metals are taxed at 1 percent. The credit system covers inputs and purchases as also capital goods for manufacturers as well as dealers. Credit for capital goods taxes can be availed over three years of sales. The tax credit operates fully only for intra-state sales (Rao and Rao, 2006). This is a major hindrance to the formation of a smooth nationwide market and is to be addressed by the proposed Goods and Services Tax (GST). In consonance with the tax reform plans, the sources of central government revenue shifted from indirect taxes towards direct taxes. In 1995-96, about 54 percent of revenues came from indirect taxes while around 20 percent were from direct taxes (Figure 8). In 2000-01, the share of indirect taxes had gone down dramatically to around 45 percent while the contribution from direct taxes had increased to about 26 percent (Figure 9). By 2005-06, indirect taxes accounted for approximately 43 percent while the direct taxes share was about 35 percent.

Advantages and Disadvantages of Nutrigenomics

Advantages and Disadvantages of Nutrigenomics The word Nutrigenomics is a combination of nutrition and genomics. Nutrition is about the relationship between food and health; genomics is the study of entire genetic makeup of an organism and how they are expressed and regulated. Therefore, nutrigenomics is a field which concerned about the relationship between diet and gene expression by describing the approach to nutrition and human health that studies the implication of genetic differences in human response to food and how food alter the gene expression, biochemistry, metabolism and promotion of health (Elliot R, 2002). In other words, nutrigenomics is the study and application of gene and nutrition interaction. Besides, nutrigenomics also provides a basis for understanding the biological activity of food components (Rawson N, 2008). In addition, nutrigenomics has also been described by the influence of genetic variation on nutrition by correlate the gene expression with a nutrients absorption, metabolism and how it is eliminate d from our body. In nutrigenomics, nutrients are seen as signals that are detected by a sensory system in the cell that tells the body cells about its environment (diet). Once the nutrient interacts with such system, it alters the gene, metabolite production and protein expression in depending on the level of nutrient it detected (Afman and Muller M, 2006). Hence, different diets will elicit different patterns of gene, protein expression and metabolite production. Such patterns of effects have been referred to as dietary signatures, where they are examined to investigate how homeostasis is influenced (Afman and Muller M, 2006). There are many ways on how nutrigenomics is useful to improve quality of life. Firstly, nutrigenomics define the causality relationship between specific nutrients and diet on human health by determining the mechanism of the effect of the nutrients or diet to human body. Besides, nutrigenomics helps to facilitate prevention through dietary modification when the diet-related diseases are detected in early stage. Nutrigenomics also allows the examination on how nutrients affect the genes present in the human genome. With all these reasons, nutrigenomics promotes and improves the understanding of people on how nutrition influence metabolic pathways and alter the homeostatic control in our body. Moreover, nutrigenomics is also able to demonstrate the impact of bioactive food compounds and its effect on human health, which should lead to the development of functional foods that will keep people healthy based to their individual needs. Then, this will further prevent development of chronic diet-related disease such as cardiovascular diseases, obesity and Type 2 diabetes mellitus. In addition, nutrigenomics also involve in finding markers of the early phase of diet-related diseases. At this phase, intervention with nutrition approach can restore patients health. Once a marker has been found and measured in an individual, the stage of susceptibility of the person to develop the diet-related diseases can be quantified and personalized dietary recommendation can be then given to that particular individual and further improve his or her quality of life. Cardiovascular disease (CVD) is one of the lifestyle diseases and it is the most common cause of death all over the world. In Malaysia, about 30% of deaths are caused by CVD (WHO, 2009). There are many factors that can lead to CVD. For example, elevated low density lipoprotein (LDL) level, low level of high density lipoprotein (HDL) and high level of total cholesterol. Diet has a significant effect on CVD. However, long term health benefits can be obtained from dietary proteins and bioactive non-nutrients, called phytochemicals, which could be either integrated into the diet or be part of the food itself. One of the foods that can be used to reduce the risk of getting CVD is soybean. Soybean contain soy protein and it contains phytoestrogens which bind to estrogen receptors in the body. Besides, soybean also contains high level of Isoflavones. There are three major isoflavones in soybeans which are genistein, daidzein and glycetein. Isoflavones have a non-steroidal structure. However , they possess a phenolic ring that enables them to bind the estrogen receptor and act either as estrogen agonists or antagonists (Makela et al., 1995). One of the ways to prevent or reduce the risk of getting CVD is by lowering the LDL cholesterol level in our blood. The LDL is the major cholesterol-carrying lipoprotein in plasma and it is the causal agent of CVD and coronary heart disease. The major determinants of LDL cholesterol levels in the blood are depend on the number and activity of low-density lipoprotein receptor (LDLR). These LDLRs are mostly found on the surface of the hepatic cells. The LDLR controls the uptake of LDL from the circulation and its intracellular degradation by a process known as the LDLR pathway (Anne K Sautar, 2010). According to Manzoni et al, 2003, the peptides formed by the digestion of soy protein up-regulate hepatic LDLR in the mechanism for the cholesterol lowering effects of soy protein. Based on several clinical studies and researches, Sirtori et al (1995) suggested that soy protein can up-regulates LDLR in human. By consuming soy protein with isoflavones, LDLR will be stimulated and increase th e uptake of LDL from the circulation and reduce the LDL level in the blood. This will further decrease the risk of getting cardiovascular diseases. Furthermore, the number of LDLRs is regulated by a negative-feedback loop. An increase in hepatocyte cholesterol level will suppress the transcription of LDLR genes and retain LDL in the plasma. In contrast, a decline in hepatic cholesterol will stimulates the transcription of LDLR genes and then removes the LDL from the plasma (Elizabeth G, 2003). In addition, Baum et al, 1998, suggested that isoflavones may increase the efficiency to eliminate LDL from the blood by increasing LDLR densities in the liver. Besides, Anderson et al (1995) also suggested that level of total cholesterol and LDL can be lowered by consuming soy protein with isoflavones. A review of 38 controlled studies on soy and CVD concluded that soybean is definitely effective in improving the cholesterol profile. Interestingly, there are some studies shown that with low c oncentrations of genistein could up-regulate LDL receptor activity and increase LDL receptor gene expression (Kanuck and Ellsworth, 1995). However, there is also some evidence that isoflavones are the active compound in soy in responsible for lowering the LDL in blood and may offer protection against CVD. Therefore, the mechanisms by which soy modulates blood cholesterol and lipoprotein levels in order to prevent or lower the risk of CVD need further research. There are many advantages of nutrigenomics. One of the advantages is nutrigenomics helps to improve our quality of life by promotes an increase of understanding on how nutrition affects metabolism, homeostatic control and introducing the prevention of chronic diet-related diseases to the people. Nutrigenomics also helps in preventing or delaying the onset of diet and lifestyle related disease such as obesity, cancer, CVD and diabetes mellitus. Apart from chemical drug treatment and therapy, nutrigenomics also acts as supporting element to fasten recover and prevent further damage caused by disease. For example, an individual that are diagnosed to have CVD, with the knowledge of nutrigenomics, they can change their dietary intake to lower their low density lipoprotein level and increase their high density lipoprotein level in their body to prevent and minimized the impact of CVD to their body. In addition, nutrigenomics also helps a country to save cost in a long-term prospect. This i s because with the development of nutrigenomics, it can leads to prevention of diseases and thus reduces the cost of treatment, along with decrease in the countrys burden of disease, which then decrease the cost of the government that allocates for health therapy and health services to the community. When there are advantages, there will be disadvantages. One of the disadvantages of nutrigenomics is costly and time-consuming. Nutrigenomics researches need long-term intervention trials to determine the causal relationship between nutrition and ways of prevention, as well as the outcome of disease which is time-consuming and costly. The methods for measuring dietary intake are much more imprecise when compared to genetic or biochemical measurement. Another disadvantage of nutrigenomics is ethnical implication. Since nutrigenomics include genetic test by the usage of samples from identified populations, ethical and legal implication may appear. The management of genetic information, consent, confidentiality, non-medical uses of information by employers and insurers are some of the ethnical issues that may arise. Furthermore, nutrigenomics might misused by some companies. Recently, the interest of public in this field is increasing. As a result, in United States, some companies are t aking this advantage by providing nutrigenomics services to public. These companies may mislead the consumer by making health-related predictions that are medically unproven or asking their customer to buy costly supplement that they claimed to be developed according to an individuals unique DNA. Moreover, nutrigenomics tests and researches require a large study population of patients and controls to investigate combinations of genetic variants and impact of nutrients in relation to a disease. Thus, it is difficult to visualize the combined data and analyzed, and in an integrated manner, how multiple gene and multiple nutrients interact simultaneously. In conclusion, nutrigenomics has great potential to benefit medical science in the future. However, it is still only in its infant state and there are many uncertainties about its further development.