Money

In F. Scott Fitzgerald’s The Great Gatsby, Tom Buchanan is Daisy’s husband and an extremely wealthy man from an affluent family. Tom is frequently Fitzgerald’s microcosm for the wealthy American upper class. In the scene of the drive to New York and the afternoon at The Plaza, the reader has a rare chance to see Tom, a man who mostly conceals his emotions, display his actual feelings and character through his outbreak. Tom’s language and behavior prove that, despite his wealth and status, he is the antipode of the gentleman he thinks he is. Tom’s language and treatment of others is routinely discourteous and vulgar.

Nick tends to describe Tom’s comments as coarse, such as when he writes that Tom “…broke out… savagely” (120) when complaining about going to town. The adverb “savagely,” used to describe Tom’s manner of speech, suggests that, to Nick, he is not at all refined and does not speak in a genteel way. Later, Tom’s apparent habit of being rude to his surroundings becomes obvious when he calls Gatsby’s car a “circus wagon.” (121) Tom’s purpose in insulting Gatsby in his presence is to feel a much-needed superiority to him, but it does not make him or his car appear better than Gatsby or his car; it only enforces his pettiness.

Also, a circus wagon is a crude metaphor, and the comparison is similar to something a common workingman, not an ostensibly refined aristocrat like Tom, would make. When Tom unwillingly stops to get gas, even more of his vulgar speech and uncivil treatment of others is evident. When Wilson fails to immediately come out to service him, he asks Wilson if he thinks that they stopped “to admire the view.” (123)

There was no reason for this kind of impolite remark, and a real, refined gentleman would not have shown such rude impatience. Once again, Tom feels superior to others when he speaks rudely to them, but to the reader, especially after learning that Wilson is ill and distressed, Tom is simply a demanding brute. Tom is very class conscious, and a hypocrite who believes that he is superior to everyone else because of his social status. Tom’s arrogant class snobbery is evident when, after he found out about Gatsby’s working-class background, he exclaims that Daisy met Gatsby “God knows where!” before they were married. To Tom, the rift between the working class and the upper class is so wide, and the American aristocrats so superior, that he finds it unacceptable that Daisy, a girl from an affluent family, could even meet a man of Gatsby’ background.

Later, in the hotel room, Tom’s outburst that he will not “let Mr. Nobody from Nowhere make love to [his] wife” (130) while he does nothing demonstrates both this hypocrisy and his arrogance. He cheats on Daisy without any remorse or worry, but the idea of Daisy cheating him transforms him into the role of infuriated victim. In his eyes, while it is wholly acceptable for him to have an affair, it is unacceptable that Daisy should. Tom evidently believes that he is superior and special, and holds himself to different standards than he holds others. Tom is further inflamed by the fact that Gatsby is a “Mr. Nobody from Nowhere,” (130) because, once again, he finds it unbelievable and unacceptable that Daisy could find Gatsby, a nouveau riche, more attractive than he.

That Gatsby’s former social status contributes so much to Tom’s anger indicates his class- consciousness, as Gatsby’s former social status seems to always be on his mind. Tom’s cruelty is evident in his actions, and he enjoys watching helpless people suffer because of his doings. From Tom’s conversation with Wilson, we can see that he likes to toy with others’ emotions. He knows that Gatsby’s car is impressive and expensive, and that Wilson could never afford, yet he mockingly offers to sell it to him regardless. All Wilson can do is “smile faintly,” (123) because he needs Tom to sell him his old car in order to raise money. Tom knows that he can mock Wilson as much as he pleases, and Wilson is therefore unable to stand up for his dignity. Tom enjoys Wilson’s helplessness to his humiliation because it makes him feel powerful.

Tom’s manipulative and cruel nature is again obvious when be beings asking Gatsby if he is an “Oxford man.” (128) Tom knows full well that Gatsby did not actually graduate from Oxford, but mockingly asks him if he did. Tom had likely planned to catch Gatsby in a lie and expose him dramatically to the others, so as to bring even more shame on Gatsby. It seems that Tom only enjoys being cruel to people who he feels are under his control, as shown in this example, when Tom has a hold of what he believes is one of Gatsby’s weaknesses. This characteristic is once again apparent when, knowing that Gatsby is no longer a threat to him because Daisy is disgusted by the way in which he earned his fortune, he instructs Daisy and Gatsby to ride back together.

It was not enough for Tom to destroy Gatsby’s image in Daisy’s mind; he needed to go one step farther and flaunt his victory and Gatsby’s crushed dream in front of him to feel that he as decidedly won this battle. Tom is a cruel brute who hides behind his wealth and social class, while scorning nouveau riche like Gatsby for not being born into old money. Tom’s character is in stark contrast to the character of an upper class gentleman. In light of Tom’s behavior, Gatsby looks more like that refined gentleman than Tom does, even though the reader expects him to display more of Tom’s characteristics.

The reader appreciates more fully Gatsby’s refinement and outward kindness in comparison with Tom’s vulgarity and cruelty. Tom’s character also reveals Daisy’s absurdity in ever loving him, and continuing to love him and staying married to him, especially with Gatsby present. Though Gatsby has many faults and unrealistic desires, to the reader, Gatsby is the better choice for Daisy. At least Gatsby will love Daisy and treat her kindly, while Tom is abusive emotionally to his wife and seems not to care about her until someone else is after her. However, Daisy is strangely attracted to Tom’s abusive and coarse character, so, while the reader pities Daisy, we can not empathize with her and understand her reason for choosing life with Tom.

Walton is the southeast of England; part of the town is situated on a headland called the ‘Naze’.

To get to Walton we will go across the Orwell Bridge and along the A12, then we will travel onto the A113 and then go onto the B1033 and then up to Walton. This whole journey is fifty kilometres approximately.

There is map of Walton and

the route to it on page 3

Walton has got a colourful background:

* The earliest human remains found at Walton are dated back to the Neolithic period of 4,000 to 2,500 BC. This was discovered when a large village settlement was found at the northern end of the Naze.

* Romans were the next to inhabit the Naze.

* After the Romans nothing much is known about the Naze until around 1527 when John Stone bought a farm about 1km from today’s shoreline.

* In 1924 the Naze was bought and made into a golf course.

* In 1939 the area was taken over by the armed forces, where the first British guided missile system was developed.

* The forces left the Naze in 1947 and it become rough grazing

* Finally in 1963 the Essex County Council and Tendring District Council as a public open space bought it.

There are many different reasons why people want to save the Naze, firstly, to lose the area would be bad financially, as the people who live there bring in money and pay taxes as do the businesses near the area. Secondly, the cliffs at the Naze are of geological significance, it is full of fossilised sharks teeth and wood. Thirdly a lot of migratory birds start and finish their journeys at the Naze. Some of these are often rare, such as Sanderlings, Oyster Catchers and Little Terns. There are also some very unusual plants growing on the Naze. Many of these plants, birds and fossils are threatened with extinction in Britain.

The cliffs at Walton are being eroded in mainly two ways, the first is slumping, described in the diagram above. The second is when hydraulic action (when the waves are crashing into the cliff) and abrasion (pebbles rocks etc. thrown at cliff), causes undercutting at the bottom of the cliff. This leaves the base of the cliffs unprotected so the cliffs collapse into the sea. In doing this coursework I am trying to prove or disprove the hypothesis, ‘the costs of extending sea defences at Walton-on-the-Naze are too high and the benefits are too small.

Chapter 1

Coastal Defences at Walton

At present there are three main ways that are used to protect the beach, groynes, Rip-raps and breakwaters. All three of these stop Longshore Drift (LSD).

Longshore Drift on a Beach

A Groyne is a wall built a little way out into the sea that traps sand, this stops Longshore Drift, and so sand builds up on one side of the Groyne so the beach gets bigger. However, on the other side of the groyne, no sand builds up, so the beach is still lost. These cost �10,000 each, and are sited more than 200 metres apart. So to protect just one kilometre would cost �50,000. A rip-rap is a group of interlocking boulders, which break up the waves, therefore not allowing the waves to erode the cliffs or letting Longshore Drift take place. These cost �3,500 a metre. Breakwaters are basically just concrete groynes, they stop Long Shore Drift and also break the waves.

A Rip-rap

I feel that these methods have been very successful in stopping Longshore Drift, as you can see from the picture below there is a lot of sand.

The Beach at Site C

The groynes have worked and there is a beach

To protect the cliff/promenade different methods have also been used. Rock Armour takes most of the energy of the wave as for it not to crash into the cliff and erode it away. The sea wall is probably the most important method to stop the erosion as it is the most effective, the sea wall reflects waves and withstands waves breaking on it so stopping the promenade being eroded, however it does have to be replaced because over time it to will get eroded away.

The Sea Wall at the Promenade

This is the most effective technique, but as you can see from the picture it has been beaten by the waves and has started to erode.

Site D is generally the unprotected area. There are actually no sea defences to stop the erosion and removal of the beach. Also the groynes at the south of this area have made the problem worse. Even though behind the groyne the beach is protected it means less material heads further down the beach, so beaches further down the coast start to get smaller. This means that the waves concentrate all their energy on the base of the cliffs so they slump. There are very few defences to protect the cliff at site D, only a very old sea wall, an this has started to erode away so it is not really very useful. The methods used haven’t been successful because basically there are no methods to stop the erosion. That area is very popular with dog walkers, horse riders and bird watchers. There is a lot of wildlife, a Martello tower, houses, farms and sewage works. So it would not be very good for it not to be there.

Chapter 2

At sites A, B and C a vast amount of money has been spent on making sea defences and repairing them, and they have been working very well. At Walton there is a very big beach, nearly all the cliffs are not slumping and even though the defences were expensive, Walton is very economically valuable. If the groynes were never there or had been taken out the resort would have been very different, it would eventually become a ghost town. This is called the negative multiplier effect. This is shown in the diagram labelled ‘The Negative Multiplier Effect’.

The Slumping Which Will Hopefully Not Happen Anymore

For Walton to be worth saving for economical reasons it has to have lots of sources of income, the most important of these is the beach. The beach is a reason for people to come to the town, and once they use the beach they use the pier, the amusements, the restaurants and the leisure centre, all of these things bring in money and also all of these businesses pay taxes which means the council gets more money, which in turn means the services (health, education, environmental, emergency) get more money so they are better. As the towns services are better then more businesses are attracted to Walton, because of all of these things Walton becomes a thriving tourist town, with lots of money.

When the four classes went to Walton we filled in economic and environmental evaluation sheets of the four different sites we visited, for economic 1 was the least valuable and 5 the most, and with environmental 1 was the least environmentally valuable and 5 the most. Then I took an average or 2 classes results. Then using Excel I made graphs of these results, I also made graphs of my own, personal results. These are the graphs entitled Bi-Polar Environmental/Economic Index Scores or My Own Bi-Polar etc.

As you can see from the class average graph for the economic value of Walton and my own results, we all thought that Site A, the Pier Area was the most economically valuable. This is because of the pier and all the amusements on it these all bring in money but it was also the leisure centre and all the restaurants that also bring in money. However I thought that Site B was also very economically valuable while the class average showed it was quite valuable but not as valuable as site A. I felt this because in site B there is the beach, and this is probably the biggest money earner, as without the beach all of the other things would not be there (see Negative Multiplier Effect diagram). Also site B has the beach huts that are quite costly to buy so this would bring in money.

Both the class graphs and mine show that neither sites C or D are very economically valuable, but these do bring in some money, sites C and D have a caf�, a farm, houses and a sewage works, which all pay taxes to the council, so they are not hugely lacking in economic value.

This was completely the opposite for the environmental evaluations, sites C and D scored the highest both in the class graph and mine, but I scored sites C and D slightly higher than the average. I thought they should both score highly because they had had a high scenic quality, the habitat for birds and animals was very good, and the location is important for the study of geology and ecosystems. In site D there is a lot of salt-loving vegetation that helps stop the cliffs eroding so if this was taken away they are effectively taking away sea defences. The area is also very popular with bird watchers, dog walkers and horse riders.

The ‘Save The Naze’ Protection society desperately wants to save the Naze from falling into the sea. On their website they had an article about why the Naze is not being saved.

Beaurocracy hinders any real progress to Save the Naze

Via the local MP both the Environmental and Heritage departments of the Government has been written to asking for action to save the Naze and the Naze Tower, which is a listed building. The environmental department confirmed its approval for the agreed three hard point scheme to retard erosion but will not finance it saying action needs to come from Tendring District Council. The Heritage department say it is concerned about losing the Tower but cannot do anything because it is down to the environmental department to do something.

They also say Tendring District Council should be the organisation taking the initiative. The Chief Executive of Tendring District Council and others have been written to about the major slippages and asking what they intend to do but they still await the results of research expected in spring 2002. There is a real danger then that they will use results to discredit the currently approved scheme and want to spend more time and money investigating and getting approved alternative schemes. From past experience this could well take 5 to 10 years in which time the Tower will be lost together with more acres of the Naze.

The Tower At Walton

Tower at risk in next few years

The cliff edge at the Tower groyne is now within 25m from the cafe. The cliff edge at this point is now estimated to be around 100m back from the end of the existing sea defence constructed in 1977. This means that erosion here is 4m a year and the cafe and the tower near to it, a Grade II listed building, are in serious danger of being lost in the next two or three years unless something is done soon.

The decision whether the Naze is worth saving is very difficult. Both sides have very good arguments whether or not to save the Naze. I think that the Naze is defiantly worth saving, just because some sites are not economically valuable, or some are not environmentally valuable, all of the sites are at least one of those. Sites A and B are worth saving for economical reasons and sites C and D are worth saving for environmental reasons.

Eventually the whole town will erode away if the sea defences are not put in everywhere. There is still a lot of cliff erosion in the unprotected parts of the Naze, as the articles below on the save the Naze website shows.

Cliff footpath goes into the sea

Another huge piece of the Naze cliffs has slipped losing a further half acre of public amenity space and causing Tendring District Council to create a new path along the cliff because of the danger to the public. The slippage was at the spot where the centre hard point of the approved coastal defence scheme was to have been erected for which Tendring District Council would not support a submission for lottery funds. This hard point would have saved this from happening.

Heavy Winter rain takes its toll. This winter the substantial rainfall has caused a greater than normal slippage of sections of cliff, particularly at the Tower groyne and mid-way between there and the northern end. The normal high and vicious winter tides have done their worst and carried away tons of the Naze

Conclusion

I have been trying to explore the hypothesis, ‘the costs of extending sea defences at Walton on the Naze are too high and the benefits to small’.

I do not agree with the hypothesis, I feel that Walton-on-the-Naze is worth saving. I think that sites A, B and C should definitely be saved, this is because without these sites, Walton would have no source of income, site A has the pier, restaurants, caf�, amusements, a leisure centre and a car park. All of these pay a business tax that goes into the towns funds, which in turn, helps fund important services (health, emergency, education and environmental).

Site B has the most important source of income of all, the beach, without the beach people would not have a reason to come to Walton, the beach not being there would a have a knock-on effect for the rest of the town, this is shown in my negative multiplier effect diagram, labelled Fig.10. Site C is quite a big money earner for the town; it has a caf�, which pays business tax, houses which pay residential tax, a sewage works and a farm. Also it has a Martello tower, which is a grade 2 listed building, there was an article about the tower on the save the Naze website (fig.15-16), it states that if that area is left and the current rate of erosion stays the same the tower will be gone in 3-5 years.

I think that site D should be protected, even though it has no real economic value, the environmental value is great, there are some very rare birds which visit, also some very rare plants grow there as well. The area is very popular with dog walkers and horse riders; also once people are drawn to Walton because of the wildlife they may well visit the town and the pier and spend some money, so even though the Naze itself does not earn any money it is a way to attract people to the town.

There was a lot of evidence that helped me come to this conclusion, the evaluation sheets we filled in at Walton (Fig 8 & 9) and the graphs I then made of these results (figs 11-14) were especially helpful to me. They helped me understand what other people felt about saving/not saving the Naze. The Save the Naze website was also very important, it showed some of major slippages that have happened recently, and also that Tendring District Council really don’t care about Walton. In one of the articles (fig 17) the website tells of how another huge piece of cliff, along with a footpath fell into the sea, and all the council did was erect another footpath alongside the old one, somewhere along the line someone will be walking on a footpath when it collapses and get killed, then everyone will be saying to the council, why wasn’t anything done before? They will have no answer.

Part of the Cliff That Has Fallen Down

The most important evidence that helped me to make my decision was the things I saw when we went to Walton, I saw a building that had fallen onto the beach below, where there were no defences, and then to see the site where the defences have been put and have been working. When we went to Walton it was not a particularly nice day but there were many, many people on the beach and again many people in the town itself.

Evaluation

I used many methods to test the hypothesis; these were notes, photographs, field sketches, bi polar graphs and evaluation sheets of each site. The notes and photographs I took were very useful, the photographs really showed the extent of the damage that has been done by erosion and slumping, the sea defences that have been put in place and what is going to be destroyed if more sea defences are not put in. The bi-polar graphs and evaluation sheets were also very successful, the class graphs allowed me to see what other people thought about the Naze.

There are two other methods I would have liked to use, but were not able to. The first of these is a questionnaire; these could have been handed out to walkers and owners of homes and businesses to see how they felt about their council and the place they live being eroded away, this could of enabled me to see if the people of Walton want their town saved. Another way of doing this would be to interview people connected with Walton, someone from the Save the Naze website, someone from the chamber of commerce, someone from the council and owners of homes and businesses. The only problem with this is that it would not give a fair idea, as it is only 4 peoples opinion and not 10 times that if we sent out questionnaires.

In presenting my work, I word-processed my text, added a lot of photographs and used the Internet to find some sources of information from the Save the Naze website. I feel that my work was well presented, as I word-processed everything it looks a lot neater as there are no mistakes and the pages are numbered so to not mix up the pages. One method I would like to have used was Microsoft PowerPoint, so I could show things e.g. How to get to Walton and how slumping happens, in 3.D to help understand what slumping is.

One problem we encountered when we visited Walton was the weather, it rained heavily just as we were going to site B, having been to sites C and D already we had done half of the trip but it was cut short as the rain wouldn’t stop. I think I was very organised with the way I did my work, but one thing I would have preferred is that if we would have gone to Walton before we had started the written work, because we had already done the introduction the week before we went, so I feel that if we went before I would have been able to get more information in the introduction.

Tourism is now the world’s biggest industry. It may be defined as the temporary visit of people to a region in which they do not live, for a period of more than 24 hours. Tourism has been promoted by the wealth of the developed countries, aided by the cheap flights offered by low cost airlines, and peoples increased leisure time and their desire to visit more exotic locations. The very nature of tourism brings large numbers of people to an area about which they may know very little. Many regions suffer environmental and social problems and this can be exacerbated by tourism.

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Tourism to Less Economically Developed Countries (LEDC’s) is generally by wealthier people from More Economically Developed Countries (MEDC’s). There is often a vast disparity between the relative poverty of local people in LEDC’s and the wealth of visitors from MEDC’s. The vast gap in wealth and a lack of respect for the natives by the tourists can cause resentment, but the LEDC’s depend upon the income, which the foreigners bring to the areas they visit. LEDC’s as the term implies, suffer from weak economies.

Tourism is therefore particularly valuable since it is an export earner, bringing new money from foreign countries. Many LEDC’s are now dependent on tourism as a source of revenue. However the flow of visitors can cause considerable problems for popular destinations. Social problems frequently arise from a clash of cultures between the tourists and the indigenous population. Tourists arrive at their destination and expect western food, standards and accommodation. This demand for a home environment brings about the gradual westernisation of shops and services.

Local shops and family owned businesses soon find themselves unable to compete with the global dominance of large western firms including fast food chains such as McDonalds. The invasion of tourists particularly in smaller locations undermines the local way of life, resulting in the erosion of indigenous cultures. Such an influx of tourists can be degrading. In Papua New Guinea, ethical issues are raised when the poor natives are pressured into performing for tourist groups. Other islands such as Tonga and Fiji are suffering in the same way.

The undermining of culture can lead to alienation, drunkenness, burglary and violent crime among natives. Bangkok and Pattaya in Thailand have become centres of the sex industry. Young girls are taken and even sold from poor agricultural communities and forced into prostitution at a young age and even child prostitution has developed. In Pattaya the beach resort has seen uncontrolled development of hotels and this has caused pollution of the sea to a point where swimming has been unattractive.

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The vast gap in wealth between the tourists and the residents causes considerable resentment and as a result tourists are often targets for theft and crime. The behaviour of tourists can also prompt attacks at popular clubbing destinations. Tourists often become drunk and are offensive to residents, starting fights and causing damage to property, creating conflict between the locals and the foreigners. In places such as the island of Bali, which is part of the world’s largest archipelago of Indonesia, the inadequate coverage of clothing worn by tourists when they go out for the evening is insulting to the locals.

Places such as Bali often have conservative dress codes as part of their religion and the tourists make no attempt to respect the customs of the locals. Western tourists are often attacked by extremists seeking to publicly display their opposition to the western culture. The most recent example was in the Bali bombing of 2002 by Al Quaeda, who are opposed to western values and their perceived impact upon Muslim countries. The attacks often have political motives and are an attempt to put pressure on the government to implement change.

Environmental problems are also an issue for LEDC’s. Airports are built, dramatically increasing the flow of tourists and often overwhelming local infrastructures. The vast numbers of visitors arriving at destinations put considerable pressure on the environment and national resources. The need to accommodate the tourists increases the demand for land. Often LEDC’s do not have well developed legal and regulatory infrastructure so building regulation and planning laws are less stringent.

Western companies and even native companies will exploit the country environmentally, constructing buildings in picturesque, sensitive and vulnerable environments. For example, in the Maldives, an archipelago in the Indian Ocean, luxury hotels have been built on formerly uninhabited islands attracting divers and fishermen who are endangering vulnerable species and the coral reefs. Simply the number of people visiting an area can cause erosion of beaches and footpaths and the damage to local habitats. Tourists often lack respect for the environments, which they visit.

Mount Everest in Nepal is a popular destination for climbers and walkers, receiving up to 100,000 trekkers a year on popular routes. The tourists cut fuel wood, which has led to deforestation and consequent soil erosion. Also as they climb, tourists cast off items they do not wish to carry and as a result the paths towards the summit of Mount Everest has become littered with detritus and other rubbish discarded by trekkers. Popular tourist destinations suffer from a large influx of visitors causing seasonal congestion and demand for natural resources.

There is a need for land, water and energy and in LEDC’s people tend to provide these resources in the cheapest way possible, regardless of the environmental damage it may cause. Golf tourism creates problems because the landscape is manicured to provide the greens and fairways while vast amounts of water are required to maintain the courses. This has aggravated the existing water shortage in Thailand. Water shortages and water quality are major problems for developing countries and tourism can exacerbate these problems.

Many countries depend upon tourism as the principal source of foreign currency. Some islands in the Caribbean such as Barbados rely on tourism but tourists come by cruise ships which can pollute the sea and beaches destroying the reefs and adversely affecting the life cycle of the flying fish which is the main fish stock of Barbados. Tourism brings vital economic benefits to LEDC’s. The inflow of foreign money is valuable to the local economy. In Egypt and Jamaica over 60% of export income is derived from tourism.

When a new demand is realised, goods and services are promoted in the area, resulting in a growth pole effect and the rapid expansion of tourism. It is beneficial because it provides income and employment for the residents. The demand for accommodation generates employment in construction and service industries. Once money is being spent in LEDC’s the amount of money in the economic cycle has increased. The locals can then spend this money improving their businesses and homes. As the money continues to be spent, it will generate more demand for goods and services and thereby promoting economic growth.

This multiplier effect will eventually have an effect on the overall development of the country, enabling the government to increase its tax revenue, improve the balance of payments and aid the overall development of the country. The improvements to services and living conditions, brought about by tourism may be shared by the local population. The transport and communications infrastructure is often the first improvement to be made followed by an increase in the range and quality of facilities offered. Better food is available, water supplies are installed and basic services such as waste disposal are introduced.

All these can be enjoyed by the locals, and will increase their quality of life. If the money generated by tourism can be ploughed back into the country’s own economy, then the economic benefits of tourism greatly out weigh the environmental and social problems. However this is not always the case. Leakages occur in the economic cycle depriving the country of the revenue vital to continued development. Foreign workers will send their wages abroad and payments to foreign owners of establishments such as hotels, restaurants and nightclubs will contribute to the Gross National Product of foreign countries.

One of the greatest losses to regions in LEDC’s is through costs to tour operators and the travel fares of airlines and ships. This means that in reality, LEDC’s only receive a small proportion of the money spent on tourism. Jobs are often very poorly paid and therefore do not contribute significantly to the development of the country. The income may not filter down to the majority of the population but it may be siphoned off by the ruling elite. The problem of westernisation is considerable.

Western companies, can exploit the tourism markets in LEDC’s more effectively and more rapidly than any local businesses. The large western firms enjoy economies of scale making it difficult for smaller businesses and local entrepreneurs to compete. The western visitors demand western goods, many of which would be regarded as luxury goods to the locals. These have to be imported from abroad causing yet another leakage out of the economy. Another example is the beautiful island of Phuket in Thailand, which has been over taken by tourist developments in what could be described as ‘neo-colonialism’.

This is where the hotels and beaches are owned by multinational companies and most of the profits are taken outside the country. In these circumstances tourism can alienate the local people by drawing them from their traditional agricultural employment but having a negative impact upon their local culture and environment. This has been the case in Gambia on the west coast of Africa. Problems also arise in LEDC’s because there is inadequate infrastructure to control growth. The sudden demand by tourism promotes a dynamic expansion, which cannot be sustained if there is a downturn in the tourist flow.

The areas receiving money can also become so dependent on the money derived from tourism that a change in fashion and the decline in visitors and revenue may result in the collapse of the local economy. For example the instability caused by the disputes between the Turkish and Greek populations has undermined tourism in Cyprus LEDC’s often have vulnerable government structures and a change in the political climate can have negative impacts on the tourist industry. The regime introduced by President Mugabe in Zimbabwe has destroyed much of the tourism industry.

His policy of returning farmland owned by white farmers to the native population has destabilised the country. There has been a massive downturn in tourism and the game reserves and associated tourist facilities have closed causing unemployment and a knock on effect on the protection of the environment and the wildlife. For economic benefits to be obtained by LEDC’s from tourism, there needs to be an effective distribution of income, towards improving the structure and balance of economic activities. Money invested in valuable schemes and projects can generate more income for the country.

However this requires a certain level of organisation and only those LEDC’s with more sophisticated levels of development are effective in promoting greater economic prosperity. Often the money generated by tourism is widely used to improve some of the problems it actually causes. The revenue which tourism generates can lead to a sustainable long-term use and investment in the environment. For example in Zimbabwe, prior to recent political developments, ecologically sustainable tourism has been pioneered through innovative schemes known as ‘Campfire’ projects.

These projects have allowed the local people to have greater control over both tourism and poaching. The locals are given control and management over the wildlife in the National Parks. They can set up hunting trips for tourists and charge them for the privilege. This is beneficial because it ensures that the revenue from tourism goes to the local people. However it also means that it is in the residents’ own interests to look after the wildlife and has therefore resulted in a drop in poaching. Money can also be used for the benefit and protection of the environment in other ways.

Trends towards eco tourism can arrest the worst excesses of tourism. The government of the Seychelles has developed strict laws to protect the island’s beauty and unique wildlife. Money can be spent on the restoration and protection of beaches. For example boardwalks have also been installed on the beach at Goa to prevent people from eroding the footpaths. Other places which have unique and sensitive environments, such as the Galapagos Islands have undertaken to protect the endangered species and their habitats.

Specific trails have been marked out to avoid areas known to be inhabited by animals and guides are employed to ensure that the tourists keep to the routes. As a result both in Zimbabwe National Park and at the Galapagos Islands, animals receive better protection as a consequence of tourism. Tourism can also have social benefits. Contrary to the fears that indigenous cultures are eroded by tourism, it can actually sustain traditions. Tourism promotes the development of art and craft industries to reinforce local cultural identity. Tourists are often interested in the native dances and will pay to view traditional dances and customs.

This also ensures that the dances are passed down the generations and are not lost. The jewellery produced and worn by locals can be sold and therefore there is an incentive to retain the traditions. Tourism also increases the demand for guides and workers who are knowledgeable about the area in which they live. As a result there has been an increase in the training, skills and general education of the people living in popular tourist destinations. International tourism can bring great economic benefit but it is vital that stringent controls are introduced to direct and limit levels in areas of environmental and social sensitivity.

Tourism can only generate economic benefits if the region and it inhabitants are the recipients of the revenue. It is therefore vital that leakages in the economic cycle are limited and that the money received by the region is used effectively to promote and monitor tourist levels. If the income derived from tourism is used productively many of the side effects can be limited. Ultimately the economic benefits must outweigh social and environmental problems; otherwise there would be no incentive to promote tourism.

Then Del-Bess would be the entity to purchase the assets from Jay Transportation and lease them to Boson Freight Company. The remaining 60 million necessary to fund the purchase would be provided by bank financing. There are four main issues within this case. The first is, is this a temporary control issue for Dalton. Temporary control means that a primary company forms a Joint venture with a secondary company that would be a temporary investment to help the primary company to acquire the sought company. Business structure was formed by two or more parties for a specific purpose.

Joint ventures usually are limited to one or two projects or purposes. The case Is referring to equity-based Joint ventures which benefits foreign and/or local private interests, groups of interests, or members of the general public. Benefit of this would be that partners would save money and reduce their risks through capital and resource sharing. One key difference in partnership and Joint venture is that the Joint venture is based on a single business transaction. An example Is that Boson Freight Company wanted to Join with Dalton In purchasing Jay Transportation Inc.

The second Issue is why Dalton would want to avoid consolidation. Dalton would want to avoid consolidation because It doesn’t own any common stock or its investment might be temporary. Due to preferred stock may also be callable, meaning that the company has the option to purchase the shares from shareholders at anytime for any reason (usually for a premium). A third issue is how Dalton should account for their investment for financial report purposes (equity or cost). Del-sees subsidiary should be reported under the equity method by Dalton because of 80 percent controlling Interest.

Under equity method, we record the investments at cost and adjust for earnings, losses, and dividends. Dalton would have consolidated financial statements due to 80 percent voting preferred stock. The last issue for Dalton is does the fair value method present a viable option for reporting and why or why not. Yes. Dalton Flanagan reporting would report Investment at cost, then by using the working paper entries to adjust cost to fair alee this would allows the two companies to consolidate the subsidiary (Dell-Bess) with the parent (Dalton) and identify the controlling interest share.

Family, friends and strangers battle for our freedom every day but at a cost of gyrfalcon their own lives. “Enemy and the casualty lists that are lengthened each week with nothing to show for the blood being spilled” (Source E 19-20). The avoidance of death should be the only reason necessary to stop the progression of wars. Soldiers on the battlefield have done nothing to deserve to die they are only trying to protect the ones they deeply care for. Deaths cause major destruction in the lives of relatives of the deceased soldiers.

Many families lose a member who they depended on for support eventually forcing them Into poverty resulting in increased offering Inflicted by the effects of war. War simply changes every aspect involving people perspectives on life, relations even their personalities. During war soldiers lose the purpose of their battle. Soldiers do not even care about the effect they have on the family of the murdered, possibly leaving a child without a father. They are so over whelmed by their environment that they care for nothing but their own survival. An adventurous expedition had turned Into an exhausting, indecisive war of attrition In which we fought for no cause other Han our own survival” (Source E 21-22). People leaving their families return with a different attitude and personality than when they first left. Many soldiers become traumatized by the events they witness and participated in causing irreversible damage to the brain. This is why some people apply themselves to certain tasks differently than before, as a result their efforts to solve the specific situation back fire multiplying their problem.

The Individual could even possibly cause damages not only to himself but also to his relatives and the nearby people. “Stall they changed us ND taught us, the men who fought In them; In those obscure skirmishes we learned the old lessons about fear, cowardice, courage, suffering, cruelty, and comradeship” (Source E 25-27). Depression, anxiety and paranoia are a few words to describe how the war effects the members of society left at home when relatives are sent away to battle for their country.

They become unable to appear in society due to their extreme fear of death both themselves and other and possible loss of loves ones. These are negative Impacts of war because when members of society return to violation they lose the abilities to function properly within society. The money involved in the processes of war could be used to help better a nation’s population and standard of living instead of assisting in its destruction. If a nation does not have an advantage over the competing nation regarding the development of weapons then the resources consumed in the process will be used inefficiently.

This Is because factories are forced to switch the production of their products over to assaults In ten war efforts, tans would cause ten companies Ana t employees to lose Jobs, wages and money. This would cause the countries own people to suffer due to the lack of money being provided into the economy resulting in poverty and hunger. War requires a huge amount of money that a nation does not necessarily have because is a very expensive process. Not only is it expensive regarding the production of ammunition but also the after effects of war place a huge toll on the economy.

Cities may be completely destroyed which requires money to pay for workers to build and clean while also paying for the materials. It would not only remove fear and bring security; it would not only create new moral and spiritual values; it would produce an economic wave of prosperity that would raise the world’s standard of living beyond anything ever dreamed of by man. The hundreds of billions of dollars now spent in mutual preparedness could conceivably abolish poverty from the face of the earth. (Source G 4-9) Another reason is the populations youth sacrifice their lives resulting in death, leaving a gap between generations. Few of us were past twenty-five” (Source E 33). Meaning the new working generation Joining the labor pool will decrease greatly in size and skill. This is because the military removes all able-bodied men from factories to place them into the army to serve their country. Necessary Jobs such as Jobs in the medical field will lose employees preventing them from performing their duties, removing required money from the economy. War effects the economy of both countries fighting in a negative way. War requires a large amount of money to fight the war while also fixing the damages that are a result of it.

War is a conflict between countries thru the use of arms attempting to gain what they believe to be beneficial to their country. Many believe that war under certain circumstances is Justified but nothing can Justify the murder and long term effects that follow the events of war. But in spite of all arguments against war it still is and possibly will always exists. As long as war exists in countries everywhere in the world it will only produce negative consequences that humanity must accept as punishment for such actions.

Depending on the facts and circumstances involved In a particular research and development arrangement, true payments by the entity to the other parties ostensibly for royalties or to purchase the partnership’s interests in or to obtain the exclusive rights to the research and development results might actually be any of the following: * a. The settlement of a borrowing ; b. The purchase price of an asset * c. The royalties for the use of an asset.

The financial reporting of an entity that is a party to a research and development arrangement should represent faithfully what It purports to represent and should not subordinate substance to form. ” Without specific guidance and this as a launching point we need to look at this transaction and really see what’s going on. From the agreement presented in the case this Is what I have been able to cull out of the extreme ambiguity.

The first piece of the agreement we should comb over Is the future royalties to be received by PIE from the sales of an established Pharmacy drug for a defined period of time. An established drug in the market has reasonably estimable future cash flows. I. E… Pilfer could predict with reasonably certainty sales of Vicarage this year. Thus, PIE Is constructively lending Pharmacy money now, with repayment of the borrowing coming in the form of royalties for a defined period of time.

Lending money with recurring repayments of that principal over a defined period of time is essentially a bond. That Is also what Is going on here. The question is how much is PIE lending Pharmacy? If we accept that the future royalties associated with Pharmacy existing drug are reasonably estimable and for a defined period of time, we can do some math and discount the future cash flows and apply an appropriate return for similar debt Instruments’ cash flows to arrive at exactly how much of Pep’s money to Pharmacy Is constructive lending.

The number we arrive at for the constructive lending would be recorded as a note receivable (or more specific verbiage could be used) for PIE and a payable for Pharmacy in the form of a royalty payable to satisfy lending obligation. Now, as Pharmacy proceeds with their best efforts in developing drug X, and the amount of cumulative cash PIE has Infused Into Pharmacy at each threshold exceeds the amount previously quantified as constructive lending we have a new situation. The money is no longer lending, so what is it?

ACS 730-20-25-8 states: “To the extent Tanat ten Atlanta rills escalate Walt n ten research Ana development NAS Eden transferred because repayment of any of the funds provided by the other parties depends solely on the results of the research and development having future economic benefit, the entity shall account for its obligation as a contract to perform research and development for others. ” If we look from Pep’s point of view, they inserted the future royalties of the existing drug into the agreement as a guaranteed return of some of their invested capital.

We can assume the PEE fund isn’t incompetent and understand that up to a certain investment point, presumably to the same dollar amount of expected cash flows from the existing drug royalties they are entitled to, they can’t say that a return on investment drug X is more likely than not. However, once they start giving their incremental investments beyond the constructive lending amount we quantified earlier I think it is safe to say PIE sees a return on drug X as probable. So, PIE would need to record any cash sent to Pharmacy beyond the constructive lending amount as an investment, Just as any other investment is recorded.

They would need to be wary of impairment, perhaps, more so than other forms of investment, but this is strictly now an investment in Pharmacy. For Pharmacy, as stated in ACS 730-20-25-8 above, now has an obligation to perform research and development in the amount of any cash provided by PIE in excess of the constructive lending portion of the agreement. As we saw in ACS 730-20-05-9 at the top of this analysis of the agreement, there is an extreme amount of supposition involved in these types of R&D agreements and the code says they need to be accounted for with the substance of the transaction above the form.

I believe the aforementioned constructive lending portion and investment portion of the agreement satisfy the substance of the arrangement best under the circumstances presented. Also, the code itself seems to recognize its lack of ability to clearly delineate the proper accounting treatment and throws us a nice blanket piece of code to ensure the proper disclosure of the agreement in the form of 730-20-50-1 stating, “An entity that under the provisions of this Subtopic accounts for its obligation under research and development arrangement as a contract to perform research and development for others shall disclose both of the following: * a.

The terms of significant agreements under the research and development arrangement (including royalty arrangements, purchase provisions, license agreements, and commitments to provide additional funding) as of the date of each balance sheet presented * b. The amount of compensation earned and costs incurred under such contracts for each period for which an income statement is presented. ” This Just means the agreement needs to be disclosed on both ends.

To calculate the present value of interest and principal payments, you will need to use the NAP function, rather than the UP function, since the cash flows in the principal and interest columns are not constant throughout time. ] What do you observe when you look at these numbers? Explain. (c) Using your amortization table, what Is the principal that remains to be paid after you have completed 15 years of payments? How does this figure relate to the payments that you have already made? How does this figure relate to your remaining payments? Explain. (d) Suppose that you had bought this house in June of 2006 under the terms scribed above.

Since that date, the average house has declined in value at the rate of 1% per month. [This is the national average for the 3-year period ending summer 2009. ] Assuming that you also experienced this price decline on your house, at what point in calendar time will you owe more in principal on the loan than the house is worth? Assume throughout that you make every payment on time and that house prices continue to decline until at least this point in time. Answer the same question if you had paid 30% down Instead of 10%. Explain why your answers are different. E) Now suppose that your house from part (d) was located In Miami, FL.

The average decline in housing prices over this time period in Miami was about 2% per month for the last 4 years. Assume that your house’s price declined by the same amount as the average house in the Miami area. How does a 2% decline change your answers to part (d)? Are the answers the same or different? Explain. NOTE: For questions prepare a spreadsheet model for part. Use this spreadsheet model with additional calculations for part b, c, d, e. Written answers to the questions in b, c, d, and e should be place on a separate worksheet In the same document. 2.

Suppose that your salary at age 25 Is $72,500 and that you are paid on a monthly basis. You plan to retire at age 65 and will need 75% of you last year’s salary as Income after you retire for living expenses. You have saved $55,000 to date. You want to build your dream home to live out the rest of your life in at age 50. Based on current prices Ana an Notation rate Tanat Is expected to rise at 1% per year Inelegantly, you project this home will cost $1,000,000 to complete. You have some older relatives that have always had an interest in you and have indicated that you are in their wills. Assume that you will inherit $100,000 in 5 years.

Assume that you like to travel and plan to take one nice trip every year starting at the end of your first year of retirement until age 75. The average price of the kind of trips you would like to take is $5,000 today and will rise with inflation. You project that your salary will grow at a rate of 2% and that your retirement income needs will grow at 1%. Finally, assume that you expect to live to age 85 and that you wish to have a balance at the end of your life that is equal to the present value of 5 years of your needed income. The appropriate interest rate for your working life is 9% and declines to 6% after you tire.

Both rates of return are nominal. Assume that growth rate and interest rates are quoted as annual figures and reported as EAR’s. A) What % of your monthly salary do you need to start saving to meet your expected needs? Find the solution to this problem by taking all cash flows to the present (I. E. Age 25) b) Verify that your monthly savings from part a plus your initial savings and inheritance described above will allow you to pay for the house at age 50. NOTE: Build a spreadsheet model to answer these two questions and place it in the same document as your answers to questions 1 .