Earning Management Is It Good or Not - 1167 Words

Earning management is good or not? Introdcution This essay is to examine whether earning management is it good or bad. Though there is so many debate about whether it should be accepted to be good rather than bad, however, this essay will explain the both side of earnings management. Earnings management reduces the quality of financial reporting, it can interfere with the resource allocation in the economy and can bring adverse consequences to the financial market. This essay analyses both, causes and motives of earnings management as well as possible remedies. Therefore, it is not surprising that market participants, legislators, regulators, and academics are concerned with the need to control financial reporting abuses. The†¦show more content†¦Therefore, it is reasonable to assume that earnings restatement firms can be characterized as firms who knowingly and intentionally engaged in earnings manipulation. Financial Reporting Perspective Based on Hanna (1999) article in CA magazine review, important point to get across from this article is that management is tempted to provide excessive unusual, non-recurring and extraordinary charges, to put future earnings in the bank. Furthermore, these future earnings are buried in operations. This makes it difficult for investors to diagnose the reasons for subsequent earnings increases. Investors and analysts look to core earnings, ignoring extraordinary and non-recurring items Implies manager not penalized for non-core charges, such as write-downs, provisions for restructuring. But current non-core charges increase core earnings in future years, through lower amortization and absorption of future costs. As a result, managers tempted to ―overdose on non-core charges, thereby putting earnings ―in the bank also called cookie jar accounting. Conclusions The concept of the earnings management is difficult to define and very subjective to decide. I believe that earnings management not only due to violation of GAAP but also aggressively choose GAAP method that are considered as earnings management. This broad definition may discourage earnings management and benefitShow MoreRelatedEarning Management1159 Words   |  5 PagesEarning management is good or not? Introdcution This essay is to examine whether earning management is it good or bad. Though there is so many debate about whether it should be accepted to be good rather than bad, however, this essay will explain the both side of earnings management. Earnings management reduces the quality of financial reporting, it can interfere with the resource allocation in the economy and can bring adverse consequences to the financial market. This essay analyses both, causesRead MoreSatyam Scandal1623 Words   |  7 PagesSATYAM SCANDAL I. Analyze the case and respond to the following questions: (a) Discuss the earnings management techniques employed by the management of Satyam. In this case of Satyam, I can conclude that the obvious technique employed by the said management are: 1. â€Å"Big Bet on The Future†. When an acquisition occurs, the company acquiring the other is said to have made a big bet on the future. As refer to this case, Ramalingam Raju the Chairman of Satyam Computer Services LtdRead MoreEarnings Management Essay1007 Words   |  5 Pagesevidences of managers manipulating the earnings for various reasons. â€Å"Earnings management is the choice by a manager of accounting policies, or real actions, affecting earnings so as to achieve some specific reported earnings objective† (Scott, 2012, p. 423). Managers play an important role in the company because they have control over the accounting policies, thus, the managers can manipulate the income. There are different viewpoints about earnings management. Some people think it will protectRead MoreFar 600 Case Study-Jim Essay754 Words   |  4 Pageswhich is to accelerate the production and shipment of a large order to Imperial, in my opinion Jim proposal is a good earning management because under literature, Scott 2000, state that there are two type of efficient earning management and opportunistic earning management. While for this proposal it falls under efficient earning management. This is because Jim is trying to improve earnings informativeness in communicating private information. Jim is trying to accelerate the production and shipmentRead MoreThe Relationship Between Accounting Responsibility Of Real Earnings Management1036 Words   |  5 PagesHence, the negative impacts of earnings management and accusing earnings management as one of the main reason of last decade financial scandals have forced accounting setters and financial regulators to provide solutions and initiatives for hindering earnings management. However, most of the attempts have failed, since earnings managements researchers found that managers still can achieve their earnings management objectives, through manipulating real activities. So it is more useful to examine theRead MoreMidterm Exam Accounting 598 Part 11 464 Words   |  6 PagesPart 1 1. Earnings management issues are a primary focus of the SEC. 1a. One potential goal of earnings management is income smoothing. Briefly discuss why income smoothing might be a goal of management, including a discussion of incentives to smooth income. What techniques might be used to accomplish income smoothing beyond the selection of depreciation and inventory costing alternatives? Understandably, there are a variety of ways in which a company can manage their earnings, and if accomplishedRead MoreEssay on Ethics of Earnings Management784 Words   |  4 PagesI enjoyed the conversation on GAAP and earnings management relating to the case â€Å"Be Careful What You Wish For: From the Middle†. The conversation was brief, but got me thinking on the ethics of earnings management. GAAP accounting is to reflect in good faith the company’s actual financial status and present reality as is. It is not to present a manipulated set of numbers that paint a pretty picture. GAAP requires recording of revenue when there is persuasive evidence of an arrangement, assuranceRead MoreFraud Cases have Put Earnings Management back in the Spotlight778 Words   |  3 PagesDechow, 1995, Healy and Wahlen, 1999). Although earnings management is not a new phenomenon, the emerging of the fraud cases such as Enron, Lehman Brothers, and other instances of financial fraud have again put this topic in the spotlight. Emerging concerns over earnings management have led to new disclosure requirements and the implementation of corporate good governance codes such as the Sarabanes Oxly Act (SOX), tabaksblat and other corporate good governance codes to reduce this phenomenon withinRead MoreFnt1 Memo Example1345 Words   |  6 Pages|Sound Investment, Inc.| Memo To: Brian Little, President/CEO of Durable Home Goods From: , President/CEO Sound Investment, Inc. Date: 6/25/2011 Re: Durable Home Goods Brian, Attached you will find my analysis of Durable Home Goods (DHG) for fiscal year 11 and my insights on some of your strengths, weaknesses, and opportunities to drive topline sales in 2012. Current Ratio The current ratio is an indication of a company’s ability to pay current liabilities with current assets. The formulaRead MoreLilly s Long Term Debt Ratio1496 Words   |  6 Pagesto be good, its total debt-to-equity ratio, which is much more comprehensive, is above the reasonable limit and indicates that the firm has more debt than equity. Thus, weakening its long-term financial position. Summary of Firm-level Inherent Risks The following factors could either increase or decrease firm-level inherent risks for Lilly’s 2011 audit: †¢ A fall in earnings and other key statistics such as ROA, ROE and Gross Profit Margin generally increases inherent risk due to management incentives

Argumentative Essay On Animal Testing - 1485 Words

Exposed to radiation. Injected with damaging substances. Forced to inhale toxic gases. This is just a couple examples of the pain and suffering animals go through while being experimented on. Experimentation can be defined as a process that performs a scientific procedure that usually takes place in the lab to dictate something. Animal experimentation is unethical because of the many terrible tests conducted, it’s cruel, animals are equivalent to humans, and it’s not necessary. Animal testing has been around for a long time. Going all the way back to 384 - 322 BC, an early Greek physician scientist named Aristotle experimented on live animals. Then moving to 129 - 199/217 AD, a Greek physician in Rome named Galen was a huge part in†¦show more content†¦In the Biomedical Primate Research Center labs, their test monkeys are tranquilized to make it appear like they are relaxed and don’t experience any pain. While the monkeys can’t move due to being anesthetized, researchers inject diseases into the monkey’s eyelid. That way they can view and observe the reaction the monkey has to the disease at all times. Once the disease is positive in the monkey’s system, they are thrown into a small individual cage (â€Å"Experimenting on Animals: Inside The Monkey Lab†). This experiment isn’t even one of the most cruel and gruesome ones conducted. No anesthetic is given to animals in 70% of carried experiments, and in the United Kingdom, 62% of licenses issued by the government allowed animals to face moderate to severe suffering. Animal testing can lead to mentally ill animals, especially when they’re treated inhumanely. These animals are locked up in small cages in laboratories right now, wishing they were free. Neurotic behavior develops in these animals. Such as; spinning around in circles, pulling out their own fur, biting themselves, and rocking back and forth. More than 100 million an imals have suffered and died from cosmetic, drug, and food tests. An exact number of animals is hard to find because the Animal Welfare Act does not include the number of mice, rats, birds, and cold-blooded animals in their death count. These animals make up 99% of animals that areShow MoreRelatedArgumentative Essay On Animal Testing1189 Words   |  5 PagesAnimal Experimentation Animal experimentation has become a common practice among scientists around the world for various purposes, specifically including the improvement of human lives. With this in mind, to what lengths are we willing to go far enough to realize that animal experimentation is costing us our own humanity and compassion to the world around us? In the United States alone, there are over 100 million animals that are burned, crippled, or killed during in vivo studies in laboratoriesRead MoreArgumentative Essay On Animal Testing756 Words   |  4 PagesAnimal Testing Animals all over the world are being mistreated and abused, what have we done to help them? Over many years animal testing has developed life saving techniques. Though it has taken the lives of over 2.6 million animals lives just in the us alone. Animal testing is a growing issue throughout the entire world, not only is it affecting the lives of the animals, but the people who use the products too. It may not physically be hurting them, but more so emotionally. The moral issue is thatRead MoreArgumentative Essay On Animal Testing859 Words   |  4 Pagessciences is the use non-human test subjects by medical research institutions. Animals used for experimentation can provide extremely important information due to their physical and genetic similarities to humans. The tradeoff to furthering the field of medical science is that often times these experiments result in pain, suffering, and death of the test subjects. This raises serious ethical and moral questions about the use of animal experimentation. It is a matter of serious debate as to whether the useRead MoreArgumentative Essay On Animal Testing1154 Words   |  5 PagesMost people are aware that animals are used for testing on many different products such as food, drugs, and cosmetics. Animals are used for testing on these different products before they are released to humans to ensure it’s safe for human use, the reason animals are used such as rats and chimps is because they share about 99% of the same DNA as us humans. Many medical breakthroughs have happened because of the use of animal testing, according to the California Biomedical Research Association, â€Å"nearlyRead MoreArgumentative Essay On Animal Testing1834 Words   |  8 PagesAnimals are used by scientists to develop research for new medications and experiments daily. The Humane Society is working to decrease the use of animals in laboratories by promoting the a dvancement of affective alternative approaches. Animal testing provides a useful model for treatments of diseases and possible cures. According to the US-based foundation of Biomedical Research, animal testing has made a major advance within the last century- for veterinary health and humans. The practice of usingRead MoreArgumentative Essay822 Words   |  4 PagesArgumentative Essay The function of an argumentative essay is to show that your assertion (opinion, theory, and hypothesis) about some phenomenon or phenomena is correct or more truthful than others. The art of argumentation is not an easy skill to acquire. Many people might think that if one simply has an opinion, one can argue it successfully, and these folks are always surprised when others dont agree with them because their logic seems so correct. Argumentative writing is the act of formingRead MoreSave Animals. Say No to Animal Testing!1390 Words   |  6 PagesArgumentative essay: Save animals. Say no to animal testing! Nowadays, it is a well-known fact that many companies test their products like cosmetics and medicines with animals before production to check their products ’safety and quality. A huge amount of animals are used in research purpose every year. Is it right for human beings to sacrifice millions of animals for testing purpose? Should animal testing be banned? Animal testing is a controversial issue and there is a heated debated about prosRead MoreAnimal Testing And Its Morality1283 Words   |  6 PagesARGUMENTATIVE ESSAY Every year in the United States of America more than 100 million helpless animals will suffer and die from malicious chemical, drug, food, and cosmetics tests. Rabbits, Cats, birds, reptiles and amphibians are not covered by the minimal protections of the Animal Welfare Act, so they go unnoticed towards the millions of sufferers. Millions of rodents, birds, rabbits, primates, felines, canines, and other types of animals are locked inside barren cages in laboratories acrossRead MoreWriting and Research Paper2935 Words   |  12 PagesGrade Percentages Essay #1: (10%) 500 word personal memoir on childhood and family, or a sense of place Essay #2: (10%) 750 argument essay: gender roles Essay #3: (25%) 1,000 word researched and documented argumentative/persuasive Essay Essay # 4 (10%) Mid-term: Critical Analysis Essay #5: (15%) 500 word Critical analysis Essay/ oral presentation Essay # 6: (10%) Final: in-class essay Other grades: Read MoreEssay about The Morals and Ethics of Genetic Engineering3310 Words   |  14 Pagesincrease pest resistance, but have not been found to be dangerous to humans. Although these proteins are capable of killing many insects, they have no dangerous side effects for Mammalia or birds, as well, meaning not only safety for humans but for animals in their natural environments as well. This gives them a biological ability to deter pests and reduces the need for chemical pesticides that persist in the environment and cause damage long after they have been applied. I chose to include it to the

Factors of Organizational Change-Free-Samples-Myassignmenthelp.com

Question: Critically analyse the arguments with respect to the difficulties inherent in conceiving, planning and implementing a change within an organisation. Which ideas appear most useful to the change agent and why? Answer: Introduction The following essay discusses the various aspects of the organizational change and behavior. It addresses the articles that have been provided for the factors of organizational change. The organizational change is considered to be a very complicated process and it requires an insight into understanding the things that have been discussed in those articles. The organizational change requires many things that will be discussed in the following sections. There are certain ideas that could be seen as very effective in the case of the organizational change. The change process will be implemented after several steps indeed. This will be helpful for the entire process as the change agents are very important in this context. The most useful change agent would be discussed in this matter as well. The impact of organizational change Just like the human beings, the organizations would have to change from time to time as well (Benn, Edwards and Williams 2014). The organizations always search for the different ways on how they can survive in this ever-changing world. This is why they want to enhance their skills and look to overtake their rivals. The organizations face some situations sometimes that force them to implement some change agents into the organizations. These changing forces can come from outside. They are called the external forces. Some changes are from inside the organization, and they are called the internal sources. If the managers are aware of these sources for the change, they will be able to implement that changing process (Fernandez et al. 2012). An important perspective of this change process is the burning platform. (Bolman and Deal 1997). According to the article, it has been mentioned that the CEO of Nokia had addressed the employees to change in this ever changing competitive environment. He had realized eventually that they needed to make some huge changes in the business environment so they could compete with the giants in the industry like Apple and Samsung. The smartphones that use the Android software are much more updated than those using Windows. The CEO himself sent the email to the employees urging them to bring out some innovative ideas so they could change indeed. This had been really interesting since they had been very much devoted to serving the customers properly. The behavior of the employees had to be changed as well. This would impact in various ways. The employees needed to address this situation very strongly since they had to manage the changes. He said that Nokia was still standing on the burning pl atform that needed to go through a positive change indeed (Bolman and Deal 1997). The external change forces The external change sources for the organizational change are very much essential since the organizations need to implement their change policies for the enhancement in their operations and making more profits indeed (Kaufman 2017) It has been seen from several aspects that there are many ethical flaws in the procedures of several business organizations. Some market changes can also appear in the business process of the several organizations indeed. This happens to be one of the initiators of the organizational change. If the customers are not satisfied by the products and services of the companies they might go on to take up some new ways for the betterment of the organizations (Greenberg 2012). The need for the organizational change goes through several steps. These steps are can be divided into the external forces and the internal forces. The external forces for the change would include the factors like the demographic characteristics, technological advancements, pressures from society and politics, the changes needed from the aspects of the shareholders, customers and the changes in their markets. The demographic characteristics include the various forces like the age, gender, education of the customers, level of skill and others (Bolman and Deal 1997). The advancements in the information technology are also important in this context as well. The other issues for forcing the change are the mergers and acquisitions for the business, extreme competition in the domestic and international markets. The political pressures are like the war, leadership issues and some others (Bolman and Deal 1997). The internal forces for the organizational change are the problems in the human r esource management and decisions from the managers. The dissatisfaction among the employees regarding the jobs has also aggravated this problem. If any conflict in the leadership of the organizations take place it would directly impact on the employee performance as well. These issues force the change in the organizations. The little changes like including the rewards systems would also be innovative from certain suspects (Bolman and Deal 1997). The reliability on the managers is a huge factor in the well-being of the organizations. The employees will have to trust the capability of the employees so their steps can be supported. The managers always take the decisions for the sake of the organizations. They dream of something bigger and better for the organizations. This is why they plan something by which the entire process would be benefitted (Greenberg 2012). One of the major influences on the organizational change is globalization. If the organizations want to remain competitive, they have to plan new things. An example can be given for the Nokia phones. Change agents Change agents are essential for the performance enhancement of the organization and surviving in the competitive environment (Alkhafaji and Nelson 2013). There are some issues in the change agents like the mental models. These mental models also have some serious flaws in them. The main fault in this model is the fact that very few people can understand these models properly or completely. The managers always want to provide the employees a perfect and safe environment for work (Chapman and Ferfolja 2001). This would be jeopardized from certain angles. However, these mental models have been implied by some organizations as well. This would be highly important for the organizations to understand if they take up the wrong change model or change agent they will have to pay the price later. The implication of these mental models has sometimes resulted in the industrial accidents that caused many deaths in the factories (Chapman and Ferfolja 2001). The mental models that can be seen as the change agents can be discussed in many ways. Keeepinh in mind its detrimental aspects, it has to be analyzed properly as well. The term intellectual liability has been used in the concerned article that reflects the negative things of the intellectual capital (Chapman and Ferfolja 2001). This also reflects on the facts that the workforce has to be prepared in a way that they are much prepared from the educational aspects. They are much regular on providing the organizations a positive outcome. The problem in this situation is there are certain negative aspects as well. These negative aspects are the extremely poor working conditions, poor planning of the strategies, corporate reputation at the lower end and many other things. These things will have to be taken care of indeed. One example can be given in this aspect is that of the Moura Mine disaster. The Gretley Colliery disaster is also an example of this (Chapman and Ferfolja 2001). The change agents that can be considered as very important from many aspects are mainly the external and internal forces the change. This will help the organizations to focus on bringing in the positive changes in the organization (Chapman and Ferfolja 2001). Thus the organizations should be able to cater to the success and make more profits. Another important change agent in bringing the success in the form of profit is to activate the proper channels for the communication skills. The organizational knowledge will have to be transferred from one party to another one. This would be very much important to increase the communication skills between the employees. If the interpretation of the communication is not done properly the organizations will suffer. Therefore, it is very logical to arrange the sequences under one thread. Thus the organizations can be able to make the intended profits by communicating properly and eradicate all the discrepancies in the human resource management an d their leaders. Thus the organizations can avoid the risks and bring in the success. Conclusion This essay can be concluded by saying that organizational change is a very complicated procedure for all the organizations. They have to go through the change process properly, so they achieve their future business objectives by implementing their desired strategies. Thus the organizations would be benefitted indeed. References Alkhafaji, A. and Nelson, R.A., 2013.Strategic management: formulation, implementation, and control in a dynamic environment. Routledge. Aspara, J., Lamberg, J.A., Laukia, A. and Tikkanen, H., 2013. Corporate business model transformation and inter-organizational cognition: The case of Nokia.Long Range Planning,46(6), pp.459-474. Benn, S., Edwards, M. and Williams, T., 2014.Organizational change for corporate sustainability. Routledge. Bolman, L.G. and Deal, T.E., 1997. Simple Ideas, Complex Organizations.Reframing Organizations: Artistry, Choice, and Leadership, Sixth Edition, pp.25-42. Campbell, B.A., Coff, R. and Kryscynski, D., 2012. Rethinking sustained competitive advantage from human capital.Academy of Management Review,37(3), pp.376-395. Chapman, J.A. and Ferfolja, T., 2001. Fatal flaws: the acquisition of imperfect mental models and their use in hazardous situations.Journal of Intellectual Capital,2(4), pp.398-409. Cummings, S., Bridgman, T. and Brown, K.G., 2016. Unfreezing change as three steps: Rethinking Kurt Lewins legacy for change management.human relations,69(1), pp.33-60. Fernandez, S., COMMENTATORS, H.G.R., CONNOR, P.E., THOMPSON, F., MIHM, J.C. and TSCHIRHART, M., 2012. Managing successful organizational change in the public sector. InDebating Public Administration(pp. 33-52). Routledge. Greenberg, J., 2012.Managing behavior in organizations. Pearson Higher Ed. Jabri, M., 2017.Managing organizational change: Process, social construction and dialogue. Palgrave. Kaufman, H., 2017.The limits of organizational change. Routledge. Van den Heuvel, M., Demerouti, E., Bakker, A.B. and Schaufeli, W.B., 2013. Adapting to change: The value of change information and meaning-making.Journal of Vocational Behavior,83(1), pp.11-21.

Natural Disasters and Their Effect on the Macro Economy Essay Example

Natural Disasters and Their Effect on the Macro Economy Paper It can reduce the numbers in livestock herds, which most of Asia relies on for everyday living needs as well as economic income. Before the end of the summer, the death toll would rise into the thousands. 15 million people were evacuated, and over a million homes destroyed. Nearly 34 million acres of crops were affected by floodwater, with at least an. Or million completely destroyed. By August, direct damage from the floods was estimated at $41 billion. This is something that affected the worldwide agricultural need and demand (Prevention, 2010). Proving the destructive power of natural disasters, even in highly developed nations, Hurricane Strain crushed the gulf coast. Just east of the Bahamas on August 4, 2005 a small, unlikely tropical depression intensified into a tropical storm which was given the name Strain. This storm slowly made its way to Florists southern coast on the 25th where most experts believed the storm would dissipate. Unfortunately, Strains path took it over the everglades allowing it to maintain its category 1 standing that it had acquired before it first made landfall, then entered the Gulf of Mexico. The warm waters of the Gulf fostered the rapid development of Strain (Sampler 2010). The above image shows Hurricane Strain at the height of her power. Estimates had Strain making landfall as a category 4, but thankfully it weakened a bit and before it rolled in as a strong category 3. Strain became been responsible for an estimated 1,800 deaths, as well as 100 billion dollars total in damages, of which about percent were uninsured losses. Some economists would put the total economic loss at around 250 Billion dollars (Madame 2011). We will write a custom essay sample on Natural Disasters and Their Effect on the Macro Economy specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Natural Disasters and Their Effect on the Macro Economy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Natural Disasters and Their Effect on the Macro Economy specifically for you FOR ONLY $16.38 $13.9/page Hire Writer That made Strain the most destructive natural disaster ever to hit the United States. With all of Strains destruction, the short term effects on the economy were very evident. Only one year after the disaster he United States, the economy was back to normal. In the first three quarters of 2006 the United States had GAP growth of 5. 6 percent, some of the most rapid growth in recent years (Herman 2006). Even though the nation as a whole made a quick economic recovery after Strain, locations that were struck directly, like New Orleans, did not make the turnaround quite as rapidly as hoped. The first few months after Strain the United States economy went into a downward trend. The GAP growth rate dropped from the 4. 2 percent that it had experienced in the first three quarters to 1. 8 percent in the last quarter f 2005. The reason for this impact goes beyond the destruction of property and the primary economic concern; the loss of goods and production capabilities (Herman 2006). Perhaps the most important resource that the gulf region produces is oil. The gulf makes up about 30 percent of Americas oil production and distribution. The effects of Strain resulted in the destruction of 113 offshore platforms, and nearly 500 oil and gas pipelines (Madame 2011). The loss of this production led to a drastic increase in gas prices soaring to over 4 dollars per gallon. This drastic rise in prices created a manic, and people rushed to the gas stations to fill up before prices rose again, creating massive lines and much talk about the gloomy forecast of economic woes come. The only positive result from the increasing gas prices was when the Federal government opened the strategic petrolatum reserves. This increase in gasoline prices surprisingly did not have as much of an impact as speculators feared, other than peoples outlook on the situation. There were some effects. Though mostly food price centered. The three main goods that saw a notable impact were the prices of bananas, rice and sugar (Levitate 2006). The primary reason for the increase in the rice and sugar prices is because the Louisiana Mississippi area is responsible for 85 percent of the sugar cane production, and 14 percent of the rice production in the United States (Levitate 2006). The drastic loss in production from that area was softened by short-run increases in the other producers of those crops. This ability to increase short-run production is a factor that contributes to the resiliency of free-market economies. Though the nationwide effects were not all that staggering the effects in New Orleans the months following Strain were devastating. With 80 percent of the city flooded, hundreds of thousands of people were forced to flee the city of New Orleans, many never to return again (Blackburn 2010). This drastic loss in population coupled with the destruction of approximately 200,000 homes and businesses led New Orleans and the surrounding areas into a dire economic situation. In the first few months after Strain, Louisiana lost 12 percent Of the states 214,000 jobs (Herman 2006). One result of the loss of jobs was a drastic raise in mortgage delinquency rates (Herman 2006). This inability to pay is more than likely a contributing actor to the very low rate of return from people who were forced to evacuate their homes by Strain. Those that did find the resolve to return to stay were in a desperate situation. New Orleans, whose primary industry is tourism, suffered great losses after the storm. They desperately needed to be able to find a way to bring back the American and foreign tourist in order to fuel the creation for more jobs. The drop in tourism is best reflected by the attendance rates in New Orleans famous Marci-Grass and Jazz Festivals. Both events had roughly a 30 percent drop in attendance from previous years (A ear after Strain, New Orleans desperately seeking tourists 2006). Art of the reason for the delay in the return of the tourism industry is the mass clean-up that had to take place first. Before anyone could return and maintain normal operations, there was still 118 million cubic yards of debris to be cleaned up. (Madame 2011) Thanks to efforts by FEM., the Red Cross and many church ministries across the country, there was much help to be found. However, despite the efforts of all these groups, New Orleans a year after the incident was still working its way very slowly towards full recovery. With the aid that had come into the city, organizations were able to rebuild infrastructure and make great improvements to both education and government. In fact, post Strain New Orleans has experienced steady growth in almost every way, including education levels, over the last 6 years as shown by the chart below Though it took about a year for it the effects to show and recovery to really make a strong step forward, the relief money that came into New Orleans and the other areas affected by Hurricane Strain did what the nation was hoping it would; help restore one of Americas cultural and industrial centers. The economic turnaround in New Orleans shows how an initial investment in the form of government aid, insurance claims, and private donations can improve the economy of an area affected by a natural disaster. If this idea can hold to be true with the most costly natural disaster in American history, it should work with other costly natural disasters as well. Though maybe part of New Orleans success lay in the restructuring of their government and school systems in addition to the monetary support. Though the economy of the areas affected improve without bringing down he rest of the nations economy, suffering this type of event might not prove to be true in countries with weaker economies. Also, if a disaster like this was to hit a city like Los Angels or New York, like Irene almost did, it is still speculator to say if there would be similar results. One thing can be said for certain, Americas ability to maintain long term economic growth despite short term impacts, like Strain shows the resiliency of America as an economic super-power. Other economic super powers, like Japan, are trying to find this same formula for economic recovery. In the Case of Japans 9. Magnitude earthquake on March 11, 2011, the loss of clean water, electricity, infrastructure, production lines, financial institutions, and more than 15,000 lives caused what the Prime Minister of Japan called the The most difficult crisis for Japan since World War II. However difficult it has been, people have been recovering from the loss of loved ones, injury, and the general trauma of the disaster. Perhaps the greatest and most uncertain long term effects brewing are the economic impacts on the world market. Many large industries and economic functions have been hurt, causing price inflation in hose industries throughout the world. Since March 11, 201 1, nations around the world have had to adjust their consumption in accordance with the loss of production in Japan. Several car companies, such as Toyota and Honda, had their production of car parts slowed, and electronics producers experienced the same effects (Seed, 2011). This has been felt worldwide. For example, Toshiba, who produces roughly 30 percent of the worlds computer chips that store data in smart phones, cameras, and laptops, closed down several factories due to economic losses and physical damages. Events like this are what caused the average price of a hip with eight gigabytes of memory to rise from 7. 30 dollars to around 10 dollars just three days after the earths quake and tsunami struck (Helot, 2011 Obviously, the price of computer chips is not the only price that has risen. Because computer chips are more expensive, new phones, laptops, televisions, cars, cameras, electronic billboards, and complex machinery will have a rise in price to cover the cost of parts and production. This effect will be felt for months, and maybe even years in an already instable world economy. Many of these products are produced in Japan; the world export racket has been greatly affected because of that. Japans exports have decreased, causing increased economic uncertainty. The macroeconomic result of this is that investors tend to pull away from the increasing risk of pumping money into Japan and look for safer and smarter industries and nations to try to grow their profits (Sahara, 201 1). One of the most fascinating things about todays economy is that everything is so globally connected. Because of this and the slow in Japanese exports, the united States level of consumption of Japanese goods dove 3. 4 percent following the earthquake (Guardian. K, 201 1). If this trend continued throughout the year, then the Japanese economy would have lost 4. Billion dollars from 2010 levels of United States consumption alone (State. Gob, 2011 The disaster and surrounding effects not only caused a decrease of funds going into Japan, but the economic instability caused by the earthquake was devastating in its timing. Japanese and other Asian stock markets plunged as the news of the disaster spread, and this is coming on the heels of the U. S. Stock market falling nearly 2 percent the date before. Not only that, but the earthquake caused trundling European stocks to fall to three month lows (Cobwebs. Mom 2011). This goes to show that natural disasters can cause a myriad of negative factors in an economy, and that a spike in uncertainty can be one of the most demoralizing. That uncertainty does not just surface in the stock markets, but also in global financing. The Japanese currency, the Yen, had a significant surge the day after the massive earthquake struck (Bloomberg-corn, 201 1 This is said to be credited to the immediate cleanup, repair, and reconstruction needs that Japan incurred following the damages. The long-term effects of the boost in the alee of the Yen are still unknown, but it has made the Yen rise in demand in recent months, despite fluctuations since the initial rise in trading worth (Bernard, 2011). The Yen is currently becoming stable once again, eight months after its spike in March then fall in April. Japan has done well in its recovery considering that the Yen hit recent year record lows in April. This graph shows the trading value of the Yen in the past year (Foreleg. Org, 201 1). The value of the Yen is not the only financial issue at stake. Japan is one of the major foreign holders of US. Government and corporation debt. With Japans Debt-to-GAP ratio at 200 percent, and massive amounts of government spending looming in the rebuilding of the thousands of buildings and roadways lost, Japan is in great need of more money (CIA. Gob, 2010). Because of this, the current interest rates that U. S. Corporations are paying on their international loans could increase in an effort to generate more revenue in Japan (NATO, 201 1). In turn, corporations would not be able to borrow as much money for new capital investment, thus hurting the consumption and job creation in the United States at a time when jobs are greatly needed with unemployment rates near nine percent (BLISS. Ova, 2011 Jobs are a big issue in Japan too. With many of the more than 15,000 killed and nearly 6,000 injured people being a part of the Japanese work force, and tons of cleanup and construction to be done, companies and the government have had to hire thousands of new workers to satisfy the demand for work (Japanese National Police Agency, 201 1). After a brief climb in unemployment because of the direct aftermath of the earthquake, numbers dropped to a recent history record low of 4. 1 percent (Tragicomedies. Com, 2011). Once organization was restored, Japan began to utilize its workforce to combat the halogen of rebuilding cities. It is perhaps a gruesome yet effective means of increasing job demand in a nation when its economy was unsettlingly devastated. Since the record drop in unemployment, Japan has had what could be considered a Recovery boom. On November 14, 201 1 , a news article stated: Gross domestic product grew at an annulled 6 percent in the three months ending Seep. 30, the fastest pace in 1 1/2- years, the Cabinet Office said today in Tokyo. At 543 trillion yen ($7 trillion), economic output was back to levels seen before the March 1 1 earthquake, the report showed. Japans return to Roth after three quarters of contraction was driven by companies including Toyota Motor Corp.. Making up for lost output from the disaster. A sustained rebound will depend on how much reconstruction demand can offset a slowdown in global growth as Rupees debt crisis damps global confidence and an appreciating yen erodes profits (Sharp, 2011 The fact the Japan is now back to its pre-earthquake GAP level is remarkable. It initiates again the Idea of what is known to economists as The Broken Window Fallacy. The theory is that an economy can create jobs and achieve higher employment levels though the destruction Of the current odds that exist. However, the destruction comes at a cost of replacement that, in the end, is not going to create a net gain, but will instead create a loss or quick-fix break even because businesses will be stimulated, but run less efficiently in the long run. Only time will tell if Japans growth over the last few months is simply a rebound or if the disaster caused a rethinking of how things should be done and built, therefore creating a more efficient, productive Japanese economy. Economists will be watching closely to spot trends. Another disaster that could have the same categories of effects on a such smaller scale is Hurricane Irene. The northeastern U vs.. Experienced the worst flooding since the existence of many towns and buildings of the region. Since only three months have passed since Irene made landfall on the New England area on August 28, 201 1, the long term impact Of the estimated 45 billion dollars in losses are still speculative (Moronic, 201 1). Given the current status of the American economy, any damages of the storm are probably being felt most nationwide right now, if compared to the time table of Japans economic fall and rise with respect to the earthquake in March. The U. S. May see a slight drop in unemployment ND a rise in capital investment as part of the restoration of Urines damages, but most likely, no real growth will come out of it. However, the increase in consumption in order to rebuild the damaged parts of the northeast may spark a rise in consumer confidence, and that is what America desperately needs. A natural disaster in a third world country might bring in more money in aid than that countrys economy could have ever produced on its own, making a very positive economic impact. But, as far as the number go, in a developed nation like the United States or Japan, natural disasters cause little more than large scale broken window fallacy case study. A hurricane, earthquake, or other disaster can bring forth events that build intangible benefits such as consumer confidence, improved organization of infrastructure, or more efficient ideas, but most real development and confidence comes from ingenuity, not devastation. However, it is hard to argue against the fact that necessity is the mother Of invention, or in this case, restructured success.