The Hawala Extortion Method Essay Example for Free

The Hawala Extortion Method Essay Among the methods terrorists worldwide use to move money from regions that finance them to target countries some hardly leave any traceable trail. As regulators learned recently, one of the weak points in the payments chain through which illicit funds can enter is a system of traditional trust-based banking originating in southern Asia which is known as hawala. The word hawala is Hindi meaning trust or exchange. Often used in relation with the word hundi which stands for bill of exchange hawala is an unofficial alternative remittance and money exchange system enabling the transfer of funds without their actual physical move. Traditional financial institutions may be involved but more often the system is used to bypass banks. There are an estimated 3000 international hawala brokers operating in Asia. Allegedly the business is monopolized by migrants from India who mostly operate from countries in the Gulf and South East Asia. Networks include trading points in the financial centres of Singapore and Hong Kong, and some of the biggest family-based money-dealers are based in London. In principle, hawala works as follows: Individual brokers or operators†, known as hawaladers, collect funds at one end of the payment chain and others distribute the funds at the other. For example, an expatriate working in America or Kuwait who wants to send money back to his family in Pakistan or Syria turns to a moneylender or trader with contacts in both countries giving him the money. The trader calls a trusted partner in the home country who delivers the amount to the family, minus a commission. For identification and the details of the trade often a code is used. The two traders settle accounts either through reciprocal remittances, trade invoice manipulations, gold and precious gem smuggling, the conventional banking system, or by physical movement of currency. Usually, hawaladers operate independently of each other rather than as part of a larger organization. For Asian immigrants the hawala system provides a speedy, reliable and trustworthy method to remit money home. In principle, it allows cash delivered in one place to be made available elsewhere in the time it takes to make a telephone call or send a fax. The system proves superior to any Western banking operation: No identification needs to be presented, commissions are very low, transmission is very fast, and the system is in operation 24 hours a day and every day of the year even in regions where no banks or other financial institutions exist. The latter also explains why the system is not only used by expatriates, drug barons and terrorists, but in some countries is quite common in rural areas. For example, in the 1980s, about 70% of total credit outstanding in Pakistan were estimated to be in the informal sector, and about 80% of all informal credit were in agriculture. Hawala has been a traditional method of moving money in south Asia long before Western banking became established in the region protecting early merchants along the silk road against robbery. In ancient China it was known as fei qian or flying coins. The system spread throughout the world – to other Asian regions, the Middle East, eastern and southern Africa, Europe and North and South America – following immigration patterns. Based on a mans word there is strong market segmentation in that, for example, a Pashtun trusts only a Pashtun hawaladar, a Sikh only a Sikh one, and so on. These days, although mainly used for legitimate transfers and often operating in conjunction with Western banking operations, the hawala system is regarded as a key factor in money laundering, other financial crimes and financing of illegal organizations committed in and associated with South Asia. Hawaladars in Dubai, India and Pakistan are said to be forming a hawala triangle responsible for significant international money laundering activities that spread far beyond the region.

The College Life :: essays research papers

The College Life Schedules are a difficult thing to balance. A person must find the time to complete a number of tasks in a day. A normal adult may have time to get everything done and still have time to spare. The normal college student on the other hand is constantly on the go. College students have busy schedules that include working, studying, and socializing.   Ã‚  Ã‚  Ã‚  Ã‚  Most college students work. How else are they going to have the money for all those late night pizza deliveries? Part time employees usually eat on the road on the way from school to work. They work about 5 or 6 hours a day and then head home tired and ready for bed. Maybe not every night but usually there is some kind of paper to be written or chapter to be read. Full time college students that are also full-time workers have to plan everything out in order to make the time to get everything done. One of the things most college students don’t make time for is housework. They often wait until everything is dirty to start the laundry. Dishes are another thing that tend to pile up. Breakfast, lunch, and dinner plates and glasses add up after a week.   Ã‚  Ã‚  Ã‚  Ã‚  College students must find time in their busy schedules to study. In order to keep up they must do daily assignments. Reading every night helps to prepare for the exams. Taking notes in class and out of class are also necessary. Students also have exams at the end of the semester that require hours of studying. Waiting until the last minute and then cramming it all in is often a final resort. Many students who have kept up just go over and recall the information. All students must find time to study in order to pass.   Ã‚  Ã‚  Ã‚  Ã‚  To escape from studying and working college students are known for socializing. They may help out in service clubs. Visiting a nursing home can be relaxing and comforting for both people.

Walmart and Target a Closer Look at Strategic Interaction

Main Paper Walmart and Target: A closer look at strategic interaction Maastricht University School of Business and Economics Maastricht, 4th December 2011 Bastian Hauk, BH ID number: i6034999 Study: International Business Course Code: EBC1009 Economics & Business Group Number: 31 Economics Tutor: Khan Writing Tutor: Hetty Bennink Writing Assignment: Main Paper Table of Contents Page 1. Introduction 2. Economic Principle: Game Theory 3. Applied Economic Principles 3. 1. Theory of Game for simultaneously Decision Making 3. 2. The extended Version for consecutive Decision Making 4. Conclusion References 4 6 7 8 2 2 1 Introduction In the United States of America there are only two very well-known discount retailers: Target and Walmart. Both are currently operating all over the country which places each of them among the biggest corporations in the United States. Nearly every American has been to at least one of them because they sell almost everything and E. Basker described this service â€Å"one-stop shopping† (2007). In 2007, Walmart operated more than 3,400 stores across the USA and a survey showed that by the end of 2005 46 percent of Americans lived within 5 miles of the nearest store; within 15 miles even 88 percent (Basker, 2007).Target operated 1,750 stores in January 2011 (Target Corp. , 2011). Since their wide range of products is quite similar they are large competitors. Thus, they are constantly waging price war against each other. In addition, they make use of strategic interaction and especially of game theory which is a mathematical model describing a decisionmaking process and showing how the players make different decisions that potentially affect each other’s interests (von Stenge, & Turocy, 2001). This paper analyses strategic interaction between Walmart and Target with respect to the game theory and the extended version.In order to do so it introduces first the theoretic background of strategic interaction. Afterwards it applies g ame theory and the extended version to this case in order to show the impact of strategic interaction on both discount retailers. It concludes by stating the importance of strategic interaction to optimal decision making and its relevance for Walmart and Target. 2 Economic principles: game theory and extended version The theory of games describes certain concepts in which several players influence each other’s decisions in situations of conflict and competition (Moffatt, 2011).In order to apply game theory there must be at least two players. The three basic elements of a game are the player, the strategies he can choose from and the payoffs the players receive from each combination of strategy. The payoff matrix describes the outcomes in a certain game for each possible combination of strategies as shown in Figure 2. 1. 2 Player One Strategy 1 Strategy 1 Outcome Player 1 Strategy 2 Outcome Player 1 Outcome Player Two Strategy 2 Player 2 Outcome Player 1 Outcome Player 2 Outco me Player 1 Outcome Player 2 Figure 2. 1: Payoff matrix for a two player game Outcome Player 2If one player used a dominant strategy, his choice yields a higher payoff, regardless what the other player does and as a result he has no incentive to change his strategy. For this example, player one’s dominant strategy would be strategy one if he received a higher outcome no matter which strategy player two chooses, but only if he then receives the highest payout. There are also some particular outcomes; for example the Nash equilibrium which occurs when any combination of strategies is the best strategy with the best possible outcome for all players (McDowell, Thom, Frank, & Bernanke, 009). An outcome created by two dominant strategies which is worse than the outcome created by two dominated strategies is called prisoner’s dilemma. The prisoner’s dilemma only occurs when each player’s dominant strategy results in a smaller payoff than it would have if they ha d chosen the dominated strategy. Game theory also assumes that the decisions are made simultaneously. To illustrate a game in which the players decide interdependent, the economist uses the extended version of game theory which is displayed with a game tree (McDowell, Thom, Frank, & Bernanke, 2009). Company 1 Decision: Action A or Action B Action A Company 2 Decision: Action C or Action D Action C Outcome 1 Outcome 2 Action D Action B Company 2 Decision: Action C or Action D Action C Outcome 3 Outcome 4 Action D Figure 2. 2: Decision tree Figure 2. 2 is an example of a game tree. Company 1 first decides which action they will take, which can be either A or B. Company 2 then has the choice how they want to react and whether they take action C or D. The best outcome can only be achieved with a backward nduction as a result of evaluating the results first and afterwards predicting the other player’s strategy. For example, outcome 3 would be the best outcome for company 2 if comp any 1 chose action B and therefore company 2 chooses action C. Outcome 2 would gain the highest profit for company 2 if company 1 took action A. 3 Applied Economic Principles 3. 1 Theory of game for simultaneously decision making As stated in the introduction this two very large American retailers are competitors and have a very similar customer base.The income of Targets customer base is slightly higher but it is not relevant for strategic interaction (Neuman, 2011). Theory of game helps to understand the different prices and how the different price strategies affect consumer behavior. This example is not based on any specific data. However, it is logic for somebody willing to buy a certain good to substitute the same good with an identical one if the price is lower and there are not any additional efforts to make. By applying game theory, the three basic elements have to be clear. 4 Walmart and Target are the players.Different pricing of a certain product -a television- are the st rategies while the different profits are the results of each combination of the strategies. Both companies have two pricing strategies: either to charge a low price of â‚ ¬300 or a high price of â‚ ¬500. They have to make the decision simultaneously, for instance before they release the television to the market. It is important to know that the customers are also willing to purchase the television for the high price. Target High Price (â‚ ¬500) High Price (â‚ ¬500) Walmart Walmart earns â‚ ¬10,000 profit Low Price (â‚ ¬300) Walmart earns â‚ ¬15,000 profit Figure 3. : Payoff matrix for Walmart and Target Figure 3. 1 shows a potential payoff matrix for this strategic interaction. It shows all possible outcomes for the two pricing strategies. Walmart and Target would both make â‚ ¬10,000 profit if they charged the high price and â‚ ¬7,500 profit if they charged the low price. If Walmart chose the low pricing strategy and Target used the high pricing strategy Walmart would gain â‚ ¬15,000 compared to the â‚ ¬5,000 profit Target would make. Target also makes â‚ ¬15,000 profit using the low price if Walmart decides to charge the high price.What does that mean for both companies? Since both of them would earn a higher profit by setting the price low in this scenario, both companies would choose â€Å"Low Price† as a dominant strategy. On the contrary, â€Å"High Price† would be the dominated strategy. Nash equilibrium can be found when both companies pick the â€Å"low price† strategy because they don’t have an incentive to change their strategy. This payoff 5 Low (â‚ ¬300) Target earns â‚ ¬15,000 profit Walmart earns â‚ ¬5,000 profit Target earns â‚ ¬7,500 profit Walmart earns â‚ ¬7,500 profitTarget earns â‚ ¬10,000 profit Target earns â‚ ¬5,000 profit matrix also shows that the strategy combination of â€Å"high price† and â€Å"high price† would be the best possible outcome for both firms. But rather than applying the dominated strategy Walmart and Target use the dominant strategy. This dilemma is called prisoner’s dilemma. Those dilemmas exist quite often and there are many reasons why they exist, for instance, both companies do not want the other one to make a higher profit or even to have the chance to receive a higher profit. 3. 2.The extended version for consecutive decision making Therefore Target and Walmart react and might change the strategy they had choosen. Both competitors often change their strategies. Although Singh (2006) stated that prices at Walmart are about 15 percent lower than in traditional supermarkets, Neuman (2011) proved by comparing almost 60 items that Target’s prices were a bit lower than Walmart’s. It is hard to rely on data which are released with a 5 year time difference but it shows that both firms constantly adjust the prices to be competitive.High Price Target High Price Walmart Low Price â‚ ¬10,000 for Target â‚ ¬10,000 for Walmart â‚ ¬15,000 for Target â‚ ¬5,000 for Walmart â‚ ¬5,000 for Target â‚ ¬15,000 for Walmart â‚ ¬7,500 for Target â‚ ¬7,500 for Walmart High Price Low Price Target Low Price Figure 3. 2: Decision Tree for Walmart and Target 6 Since the decisions of both companies are not made simultaneously the reacting firm -in this case Target- has to find out what action to take in order to receive the highest profit for either move Walmart makes. Walmart moves first and selects either strategy.Target is in the position to decide and how it wants to react. Thus, Target uses backward induction. First it evaluates the best results for each action Walmart uses; â‚ ¬15,000 profit if Walmart sets a high price and â‚ ¬7,500 profit if Walmart sets a low price. Afterwards it chooses the strategy how to get to that profit. Finally Walmart moves and selects the low or the high price strategy and Target is able to react sufficiently. Assu me that Walmart chooses the high price strategy then Target sets low prices and due to that Target earns the highest possible profit. Conclusion Walmart and Target are large competitors on the American retailer market and therefore strategic interaction is very important for them. Both companies know the ways to decide how to act concerning different strategies. Both companies know that it is necessary for them to react and choose the best strategy. In the first example both companies simultaneously introduce a television to the market. Their dominant strategy is to set a low price because both of them hope that the other company chooses the high price strategy.This is one example of a free market wherein the customers always choose the low price if available. Walmart and Target would earn a larger profit if both set the high price. In the other case Walmart moves first and afterwards Target chooses the strategy which leads to the highest outcome. The reacting company’s best strategy in the extended version of game theory is always the low price strategy. On the contrary, when two companies have to decide simultaneously it is not always the best choice to choose the low price strategy although it is their dominant strategy. References Basker, E. (2007). The Causes and Consequences of Wal-Mart’s Growth. The Journal of Economic Perspectives, 21 (3), 177-198. McDowell, M. , Thom, R. , Frank, R. , & Bernanke, B. (2009). Principles of Economics, 2nd European Edition. Maidenhead, UK: McGraw-Hill Education. Moffatt, M. (2008). What are Game Theory and Bargaining Theory? Retrieved December 4, 2011, from http://economics. about. com/cs/studentresources/f/game_theory. htm Neuman, S. (2011). Target Takes Aim At Walmart, With Some Success, NPR. Retrieved December 4, 2011, from http://www. pr. org/2011/08/19/139793948/target-takes-aim-at-walmartwith-some-success Singh, V. , Hansen, K. , & Blattberg, R. (2006). A Market Entry and Consumer Behavior: An investig ation of a Wal-Mart Supercenter. Marketing Science, 25 (5), 457-476 Target Corp. (2011). Target Annual Report 2010. Minnesota, US: Target. Retrieved December 7, 2011 from http://www. sec. gov/Archives/edgar/data/27419/000104746911002032/a2201861z10k. htm#bg11101a_main_toc Turocy, T. L, von Stenge, B (2001). Game Theory. Academic Press Limited, 2 (2), 69-73. 10. 1080/07430170152379371 doi: 8

Chinua Achebe s Things Fall Apart Essay - 1347 Words

Culture is an Important Element of Society Chinua Achebe is the author of when Things Fall Apart while Joseph Conrad authored Heart of Darkness. Conrad and Achebe set their individual titles in Africa; Achebe is an African writer whereas Conrad is Polish-British. The authors draw strength from their backgrounds to validity the authenticity of their fictional novels. Conrad writes from his experiences in the British and French navies while Achebe uses his African heritage. The theme of culture is prevalent in both Conrad’s Heart of Darkness and Achebe s Things Fall Apart both writers use styles, symbols, and language to deliver the message. Achebe’s Things Fall Apart and Conrad’s Heart of Darkness deliver a similar message using the same devices but adopt different approaches evoking varied responses from the reader in realizing culture is an inherent aspect of any society thus the difficulty in adapting to foreign cultures. The use of language is circumspect of delivering a message adequately. Achebe’s Things Fall Apart is structured in fluent English, quality vocabulary and professional self-expression. However, Achebe enhances artistic qualities in his novel to help the reader understand the drive behind Things Fall Apart. Achebe’s background of inaugural grounding in Igbo (speech, written) as the imperative language of instruction in education together with an introduction to English at the age of eight gives him the powerful blend of the two cultures. For instance, theShow MoreRelatedChinua Achebe s Things Fall Apart1719 Words   |  7 PagesThings fall apart is a classic novel written around the turn of the century, the novel focuses on the protagonist who we can also call a hero, Okonkwo. Okonkwo is a wealthy and respected leader within the Igbo tribe of Umuofia in eastern Nigeria. Strong individual with a passionate belief in all the values and traditions of his people. Chinua Ac hebe presents Okonkwo as a particular kind of tragic protagonist, a great man who carries the fate of his people. Okonkwo is a man who is inflexible andRead MoreChinua Achebe s Things Fall Apart1033 Words   |  5 PagesIntroduction Chinua Achebe is a famous Nigerian novelist in worldwide. Things fall apart is Chinua Achebe’s first novel published in 1958, the year after Ghana became the first African nation to gain independence. And this novel is one of the first African novels to gain worldwide recognition. (Phil Mongredien, 2010) This novel presents people a story of an African Igbo tribal hero, Okonkwo, from his growth to death. The fate of Okonkwo also indicates the fate of Africa caused by the colonizationRead MoreChinua Achebe s Things Fall Apart883 Words   |  4 Pagesdehumanize the native population and convince themselves that they are helping. 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After moving to America, he became an English professor at the University of Massachusetts, Amherst. Achebe has won numerous awards for his poetry and fiction, including the Man Booker prize and Commonwealth Poetry Price. He currently teaches at Bard College. Author: Chinua AchebeRead MoreChinua Achebe s Things Fall Apart1248 Words   |  5 PagesChris Lowndes Ms. Cook A.P.L.C. 21 October 2015 We Are Family: Hardships in One s Family in Things Fall Apart Specific attributes correlate with each other to help create or not create the ideal strong family. However, through those attributes arise conflicts and major disputes. This issue of trying to achieve and create a strong family is of immense importance in one’s life, especially in Chinua Achebe’s, Things Fall Apart, a milestone in African literature. For instance, the father leaves his legacyRead MoreChinua Achebe s Things Fall Apart Essay1682 Words   |  7 Pagescertain degree of the priest class, libation, holidays, creation stories, divine systems of punishments and rewards. In the novel, Things Fall Apart, written by Chinua Achebe, is a story of tragic fall of a protagonist and the Igbo culture. Achebe demonstrates different examples and situations of where an African culture, in the instances of tribal religions, did certain things because of their tradition is and the way they developed into. African cultures pondered life mysteries and articulated theirRead Mo reChinua Achebe s Things Fall Apart1314 Words   |  6 PagesChinua Achebe masterpiece â€Å"Things Fall Apart† (1959) is the classic story of Okonkwo, a young man who strives to be revered by his village and family but because of his own internal character flaws meets his own demise. In the Igbo culture, family traditions are an important narrative throughout the novel. Okonkwo, the protagonist character of this story, begins with many attributes of what would be concluded as a hero with his cultural society. He is hard working, a material provider, feared andRead MoreChinua Achebe s Things Fall Apart Essay983 Words   |  4 Pages The author Chinua Achebe, in the novel, â€Å"Things Fall Apart,† shares extreme diversity between the female and male characters residing in Umofia. Okonkwo, the male leader of the tribe, carries qualities such as power and manliness, as all men are expected to. As for the females they are commonly referred to as being weaker for child bearing and more responsible because they are expected to cook, clean, and take care of their children. Although the traits of the Igbo culture vary in the determination