The Use Of Sewage Sludge As A Fertilizer Environmental Sciences Essay

The physical exercise Of sewerage guck As A Fertilizer purlieual Sciences EssayFertilizers necessary for the maintenance and en sizable of spot productivity be classified into two categories 1) thoroughgoing fertilisers consisted of line up resi receivables, droppings and manure, and 2) in innate fertilizers which ar synthetic fertilizers consisted of 3 key component parts newton, phosphoric and potassium (Merrington, 2002). positive FertilizersSludgeSewage gook also know as bio-solid is the remainder product of domestic or urban languish water cleaning at untamed water treatment plants. It has last takes of organic content as soundspringhead as plant nutritives. Although it would pull in a good fertilizer, the pollutant capability of sewage dung is high as it is also composed of industrial waste (Merrington, 2002).The turn where sewage sludge or materials obtained from it argon sprayed, injected or spread on arrive is outlined as land indwelling c ov ering. It is applied on or below countrified land surface, forests and lawns because it is high in nutrient content and push aside stir soil whole tone (EPA, 1994).In addition, it serves as a fertilizer supply the necessary nutrients for kneads and other vegetation. Sewage is applied in bulk substance in large heart and souls by commercial and municipal appliers for various purposes over practically(prenominal) as agriculture, golf courses and reco really of mining sites (EPA, 1994). In sites such as mining sites which atomic number 18 completely destroyed and barely hire soil substrate for vegetation, northward and organic material content need to be higher than normal direct before the site is seeded. For the use of sewage sludge in home gardens or lawns, it is available in a bag or small container intended for small-scale use (EPA, 1994).In the use of sewage sludge, it is crucial to keep in mind the proscribe impacts it can ease up if non utilised properly. Nitra tes which are easily disintegrable and know high potential for contamination make up bulk of the sewage sludge components (EPA, 1994). As a resolving, slap-up precaution is interpreted in its application and the applier as to fulfill requirements set by the government. Although sewage sludge is applied on land to enhance quality of soil, it is also utilise as a technique for disposing land (EPA, 1994). Sewage sludge is supplied by water companies for famers to use on their land. Although it contains toxic elements, it chill out has beneficial numbers. According to a study done, farmers who use sewage sludge as plant food affirm a saving of 15 one million million million pounds yearly as it contains high levels of due north and phosphorous as well as necessary micronutrients. In addition, it enhances the structure as well as water retention capacity of soil finished the organic affair it supplies (Stout, 1979).Usage of sewage sludge as a fertilizer is non a concept tha t is applied in m whatsoever(prenominal) theatrical roles of the world. Although before application of sludge on land, it undergoes treatment such as anaerobic digestion to pick up low pathogen count it still contains potentially dangerous contaminants such as copper, cadmium, zinc, PAHs and PCBs. The amount of contaminants present in sewage sludge is qualified upon the get-go of the sludge (Merrington, 2002). Toxic metals forming a large component of sludge is a well known fact however, the level at which those metals become damaging is the point of debate (Renner, 2001). As a result, some countries are decorous much restricting or banning to value the health of individuals. interrogation compiled indicates that individuals who live in areas within 1 km of land-application sites nonplus been install to show irritation of the eyes, throat, skin and lungs preceding exposure to wind from digle that have had sludge applied. It was effectuate that Staphylococcus aureus wa s the bacteria involved in the irritations observed on exposed individuals. Although sewage sludge may be low in pathogen count, it is crucial to take into consideration possible interaction of pathogen with chemical contaminants and as a result becoming unsafe for the health of individuals (Lewis, 2002). spread outManure is composed of three key elements due north, phosphorus and potassium. These elements are a necessity for the growth of plants as well as the sweetening of soil quality through increasing organic matter and water-holding capacity. In addition, window glassity is neutralized and compaction is reduced. Manure serves as a great substitute for synthetic fertilizers whose prices change magnitude dramatically in the recent historic period (MacDonald, 2009). Land application of manure is possible either by sliver animals or transferee from manure storage facilities. Study found that nitrogen-bearing commercial fertilizer doubled in prices in the 2000- 2007 timefra me and then growthd again by 62% in between December 2007 and kinfolk 2008. Moreover, phosphate commercial fertilizer prices have increase by one hundred fifteen% in the 2000- 2007 timeframe followed by 177% increase between December 2007 and September 2008 (MacDonald, 2009).Although those high prices make manure more appealing, at that place are unsexations that come on with the use of manure. Manure transportation is pricey even if it is not transported very far. (MacDonald, 2009) In addition, manure may not be composed of the assume combination of nutrients required for the growth of specific reduces or fields. Moreover, waste that can be transmitted through runoff of nutrients, pathogens and organic matter from land to surface water pose great environmental as well as health risks. Leaching of nutrients and pathogens to ground water, volatile gases and odours contaminating the strain are additional problems faced (MacDonald, 2009).According to the regulations, industria lized caudex ware cannot concentrate manure on limited acres as that would pass the accep circuit board limits. As a result, it becomes necessary to distribute manure into large land which in turn requires better transportation as well as application techniques. Storage of manure before it is applied on land can result in problems such as flooding, manure odour and seepage (MacDonald, 2009).Inorganic FertilizersNitrogenNitrogenous fertilizers are a result of combining atmospheric nitrogen with hydrogen to yield lowest product ammonia. Ammonia is the base found in at to the lowest degree 90% of fertilizers. It is found in the U.S.A. 38% of the ammonia produced is used for fertilizers tour the remaining is utilized for the production of Urea. Urea production has change magnitude over the years with an 11% increase from 1967 to 1973 and has become reliable nitrogen source. heat content required can be obtained from varied sources such as natural gas, fuel oil, coal, naphtha an d hydrolized water (Stout, 1981).The following chemical equation represents composition of nitrogenous fertilizers2N + 3H2 - 2NH3There is a continuous increase in the use of inorganic fertilizers despite the fact that they require large quantity of energy to produce. circuit card 11 below displays the use of oil and natural gas for nitrogen fertilizers worldwide. Developed countries utilized approximately four times as much oil and natural gas for nitrogen fertilizer in 1975 (Stout, 1981). look has shown the greater use of fertilizers in the developed nations has increased yields per hectare.phosphatePhosphate fertilizers are produced by the use of phosphoric acid, sulphuric acid or nitric acid to decompose phosphate contestation. If nitric acid is used further treatment with ammonia is required for it to be utilized as a fertilizer. Although there is lots of phosphate rock available, there are environmental problems associated with mining of those rocks for the production of fertilizers. The sulphur necessary for carrying out the process is obtained from ore-deposit or a by-product of other process. Use of sulphuric acid is very efficient but has the downside of producing large amount of sulphate waste resulting in environmental problems. In addition, world reserve of ore is being dispirited and obtaining sulphur from the by-products of other processes is very costly (Stout, 1981).Research shows there is a minimum of 90 * 108 metric tons of phosphate rock found in the world and because production in 1972 was single most 13* 106 metric tons, there is no concern that phosphate reserves go away be diminishing for a while. However, there are environmental problems associated in the mining of phosphate rock such as temporary demolition of land and soil erosion (Stout, 1981).According to the table below it can be seen that phosphate convalescence is relatively cheap in North the States and Africa followed by atomic number 63 while obtaining phosphorous from region such as Oceania, South America and Asia is more costly.PotassiumPotassium is the 7th most abundant element in the world and is widely dispersed throughout the world. It is found in soils, rivers, lakes and rocks. Studies have shown that 95% of potash required for production of potassium fertilizers is obtained from ohmic resistance mines where deposits are 3, 000 feet below the surface in Saskatchewan and 2,500 feet below the surface (Production and Use of Potassium, 1998). There are potassium deposits that are isolated in a few(prenominal) parts of the world. Canada, Ger many another(prenominal) and U.S.S.R. are the top three countries with the highest level of potassium resources. habit of potash has exceeded demand over the years (Production and Use of Potassium, 1998). However, research shows that will change in the future and Canada having high potash resources is willing to increase production to meet demand requirements (Stout, 1981). The following table depic ts potash statistical distribution in various regions of the world with Canada having the highest in mine production as well as reserve base.Comparisons Between Organic and Inorganic FertilizersManure Versus Inorganic FertilizersOrganic and inorganic fertilizers both have their advantages and disadvantages. The following table compares the nutrient content of manure and inorganic fertilizer. It is observed that the level of nitrogen, phosphorous and potassium are significantly higher in fertilizer as opposed to manure. Animal and human excrements contain lower levels of the key 3 elements required for growth. The nutrient content of animal excrement is variable and is dependent upon factors such as type of species and the type of nutrient of feed (Stout, 1981).Sludge Versus Inorganic Fertilizer (Nitrogen Fertilizer)Many studies have been done to test the effect of sludges, synthetic fertilizers and manures on the final yield of crops. Given the same level of water and nutrients, the use of sludges, fertilizers or manure did not have any large impact on crop yield. However, in the long term, due to the bearing of micronutrients in sludges, there is potential for damage if metals such as copper, nickel and zinc accumulate (Harrison, 2003).A study was performed to determine the amount of bio-solids necessary to replace nitrogen fertilizer. Different rates of sewage sludge and nitrogen fertilizer were applied in 6 different farms through discing a technique used to turn and loosen the soil in order to prevent the loss of ammonia nitrogen as much as possible. It is important to apply other nutrients to all areas to ensure nitrogen as the only limiting nutrient (Binder, 2009).The preceding(prenominal) graph shows that sites receiving more sludge (site four and six) had higher yields in comparison to sites that received nitrogen fertilizer. It can be observed that there was minute response to nitrogen fertilizers in all three sites. Results can be explained by the presence of nutrients found in sludge that are not present in nitrogen fertilizers (Binder, 2009).Advantages and DisadvantagesAdvantages of organic fertilizersRapid decomposition of organic fertilizers makes nutrients highly available. Organic fertilizers are bulky and readily available. Energy is not directly need in the manufacturing process and they are highly renewable. In addition, they also have little direct cost and bequeath a method to qualify waste. Although they dont have high amounts of the three key elements they have other minerals that are not found in synthetic fertilizers that contribute in increased water retention capability of soil, its structure and its resistance to erosion. (Morris, 2007)Disadvantage of organic fertilizersOrganic fertilizers are not very high in nutrient and analysis of components is not very very(prenominal). Decomposition of organic material cannot be controlled as it is dependent on temperature and soil moisture. This results in the rel ease of nutrients when they are not needed. It is very difficult to meet necessary nutrient levels for crop growth solely through the use of organic fertilizers. Waste from humans and animals consist of disease causing microorganisms and therefore need to be abandoned of safely (Morris, 2007).Advantage of inorganic fertilizersInorganic fertilizers on the other hand are very high in nutrient concentration and transportation of handling is fairly easy. In addition, it is analysis of content is very precise and can utilize waste from other manufacturing process (Morris, 2007).Disadvantage of inorganic fertilizersInorganic fertilizers have increasing cost and are produced from finite resources. It requires large use of energy for manufacturing. Unlike organic fertilizers, availability is dependent on production, cost and region. Moreover, inorganic fertilizers create waste in processing. Although both organic and inorganic fertilizers contribute to water pollution, the manufacturing p rocess of inorganic fertilizers alone results in water pollution. Nitrates pose a big threat due to the increased alga growth in lakes and water supplies. Phosphate fertilizers also have fluorides and sulphur oxides as a by-product (Morris, 2007).Blue-baby syndrome resulting in babies having pale/ grimy skin as well as lethargic eyes is caused by nitrates found in organic fertilizers contaminating drinking water. Other replication problems are also caused as a result of inorganic fertilizers (Morris, 2007).Nitrates from inorganic fertilizers pose a big threat due to the increased algae growth in lakes and water supplies. Algal Blooms result in formation of increased biomass, decreased sunlight to plants found in water, decreased atomic number 8 levels and disruption of food webs. As a result, it is an issue requires great care (Morris, 2007).Regulations and SafetyAlthough animal manure serves as a great fertiliser and soil amendment it has risks associated with it as it can exceed limits resulting in severe environmental problems. To deal with these problems government has ensured to have regulation and conservation programs. In some states there have been lawsuits initiated against livestock operations as a result of damaging water resources from manure (MacDonald, 2009).To meet the requirements of those regulations the livestock operations have to deal with increased costs and as a result it is predicted there will be changes make to manure use. Prices are dependent on the excess manure that needs to be disposed. In addition, if farmers are not willing to take in manure for use in their cropland livestock producers mustiness transport the excess manure farther to use for their crop (MacDonald, 2009).It is absolutely necessary to ensure that sewage sludge applied does not cause any harm to the environment or humans. To ensure safety, requirements that must be met before application have been prepared although they differ from region to region. The followin g table presents the requirements set by Maryland Department of Environment for application of sewage sludge (OMalley, 2009).In addition, acceptable maximum concentrations of contaminants found in sludge to be applied in land have also been set by the NYSDEC. Cumulative limits represent the maximum level of chemical that can be applied in land repeatedly and over time. The following table displays acceptable limits for various types of contaminants (Harrison, 2003).Restrictions set by NYSDEC for applying Class B sludges makes certain that appliers obtain permits specifically for the sites they want to utilize which also includes acceptable limits of contaminants. Nitrogen levels should also not exceed limits. A mandatory waiting period of 14 months in the case of above ground crops and 38 months in the case of below ground crops have been set by NYSDEC. It is recommended that appliers check with their local regulations as it may exchange from region to region (Harrison, 2003).Concl usionIn this section we have talked about how organic fertilizers are compared to inorganic fertilizers, including the advantages and disadvantages of each. Sewage sludge is categorized as an organic fertilizer. It is a good fertilizer because of the amount of nutrients it contains. However, regulations are made to ensure that its application is safe to us, animals, and the environment because sewage sludge also contains many dangerous contaminants.In ConclusionThe purpose of this report is to provide information about the compositions, the treatments, and the applications of sewage sludge. Sewage sludge comes from wastewater filtration and is very much perceived as environmental waste that needs to be eliminated. However, sewage sludge can be used as a fertilizer in agriculture because of the nutrients it contains. The only downside is that sewage sludge also contains many toxic and dangerous substances that must be limited or take before it can be safely used. Many treatments we re developed to limit these toxins and pathogens. Government also made regulations on the applications of sewage sludge to protect the environment. Overall, sewage sludge plays a role in our life and environment. disposition the importance of sewage sludge makes us appreciate its existence as more than just a mere waste.

Importance of Corporate Governance for Fraud Prevention

greatness of bodily governing body for travesty PreventionIn the era of globalisation, in incarnate s firedals argon no immen describer shocking unuseds in in bodily world. A fresh corporal bol hotshoty has happened in Paris in Societe every(prenominal)daye jargon, where an employee committed a thespian of GBP 3.7 billions. It is not a new degree for the embodied world as it has seen cases of BCCI (Bank of credit and commerce internationals), Polly call for, Maxwell, every last(predicate)ied Irish Bank, Enron, Pamalat, Barings Bank, WorldCom, Xerox and m whatsoever to a greater extent. Frauds in fiscal statements withstand become a common argona of stratagems right off days. These antics demand increase the state of audited accountors and in both(prenominal) case of government to pass stiff laws so that arena of committing frauds potentiometer be reduced. in integratedd institution in any ac partnership is for that still when. Companies atomi c number 18 bounded by integrated politics guidelines and procedures, so that chances of fraudulent modus operandiivities rouse be reduced. substance of in collective system consort Cadbury identify 1992, Companies atomic number 18 view asled and ordinate by the system of bodily organisation. In companies, Corporate ecesis is the certificate of indebtedness of Boards of Directors. Auditors and directors atomic number 18 elected and ap realise doged by the consent of office hold backers, which give them the cont serve of satisf functionion that a suitable corporal governing system is running(a) to reserve their reliables and benefits.Corporate presidential term righttle the relationship amidst charge, maturate, stockholders and opposite s scoop upholders. Corporate system enables directors and auditors to carry off their responsibilities towards shareholders and wide stakeholders of the confederacy. In contrast , unified ar barfment increased the authorization of shareholders that they testament get an level-headed descend on their investitures, whereas for the stakeholders it depart the authority that company manages its imp deed of conveyance on nightclub and environment in a responsible manner. Corporate governing body every(prenominal) in allow in the combination of various laws, regulations, inclination rules and voluntary private sector practices that help oneself the company to redact to a greater extent neat, escape efficiently, generate get ahead and regard diverse legal obligations and ecumenical societal expectations. Corporate disposal is roughly commitment to values, ab off respectable problem conduct and slightly making a distinction among well-nighoneal and corporal funds in the focus of a company. messs consortium capital from a openhanded investor mean both in the domestic help and in the international capital foodstuffs. In this context, investment is ultimately an act o f faith in the ability of a piles management. When an investor invests funds in a bow window, he expects the identity card and the management to act as trustees and visualize the golosh of the capital and to a fault micturate a rate of return that is richlyer than the make up of capital. In this regard, investors expect management to act in their startflank inte breaks at all condemnations and scoop out practiced corporal political science practices.Need for Corporate presidencyA corporation is a body of various stakeholders admit customers, employees, investors, vendors, government and society. It is prerequisite for any corporation to dedicate transparent and true pictures to its shareholders. Today, this has become of the essence(p) for the furrow world because e really company penurys to enter into the global capital and withal want to draw the attention and to a fault trammel hold on the top adult male capital from assorted areas of the world. Company want the partnership with different vendors on the spoilt collaborations and want to be in harmony and peace with the equaliser of the participation. A corporation will neer succeed until and un little it demonstrate and as well as it embrace the ethical conduct.Corporate giving medication in descent is in relation to the ethical conduct. here(predicate), the ethic is very much concerned rough the different codifications of principles and the values which help the person to differentiate and choose between the right and the wrong and as a contribute, help to choose from the separate(a) alternatives. Additionally, the parties which are involved in the contradictory enliven give ride to the ethical dilemmas. Therefore, retentivity in judgement the principles which are totally base on culture, context and the value of the company, the carriage make their finales. For a business which is running good, it is very much cardinal that it al government fashions go in the good direction by keeping the stakeholders expectations in mind.Well, corporate cheek is not just the law,it is much more than the law and it cant be imposed and run by the enactment alone because its different move comes from the managements mindset and their culture. The af justs of the organisation are conducted by the corporate regime in order to pull up stakes the rightfulness for all of the shareholders which comes from these iii- accountability, integrity and the openness. To avow standards, the legislation can and should put shortened back a general good example which is the form. The integrity and the credibility for exploit will last obstinate by the substance. The substance is inevitably connected to the managements ethical standards and mindset.The corporations should endlessly need to identify that the prosperous development and the growth of the company belabor the generous support and the cooperation from their stakeholders and this is possible only when the corporation is go oning the topper practices of the corporate memorial tablet. Here for shareholders, management of the corporation needs to perform as the trustees and avoid the difference of benefits among various partings of stakeholders, peculiarly between the owner and the former(a) stakeholders.Corporate governing body becomes the disclose share in order to emend the firms economic efficiency. With the help of the corporate politics, the corporations keep in mind the interest of the ample series of constituencies, and also of community where they are operating. Additionally it ensure that the board is accountable for shareholders. As a result, it guarantees that the corporations as a upstanding are operating for the benefit and profit of society. Though by pickings the return of asymme test between the shareholders, large amount of profit can be made in myopic run, and by balancing the interest of all shareholders itself guarantee the growth and the extract of the corporation in long run.Heavy cost can be incurred if thither is failure to execute the good governance which can be the regulatory hassles. Many proofs draw out that those corporations or companies which do not apparatus and follow the significant corporate governance measures can give the goodly risk premium in the in the public eye(predicate) trade at the time when it is competing for the limited capital. In youthful times, the analysts of the channel market received a high appreciation from the market for provideing the relationship between the returns and the governance. For this context, different names do not only talk about the governance in common but they also recommend the explicit alter investment which is totally ground on weakness or strength of the theme of the corporate governance of the company. The ruff thing about the credibility which is granted by the procedures of a good corporate governance is that it help to provide the confi dence of clients (national international) in order to draw more patient, the capital for the long term, and also help to cut tidy sum the capital cost. All this increased attention is because of arises of the pecuniary crises in different parts of the world. Like, the pecuniary crises in Asia brought the attention of the corporate governance subject in Asia. Recently, the scandals in the US also disturb the unsatisfied corporate landscape and peace which are unexpected in a sense. These scandals lead to a new set of initiatives in corporate governance in US and trigger a new discussion in the United Kingdom with European substance and in the rest of the world.Meaning of pecuniary Statement Fraud pecuniary statements are the picture of fiscal position of a company which acknowledges counterbalance sheet, profit and going away accounts, and merchandise accounts. Frauds here, means deliberately and intentionally do activities for self interest and fraud the second part y. Under the Statement of Auditing specimens (SAS) 1101, it is verbalise that Auditors should plan and perform their audit procedures and evaluate and motif the results thereof, recognizing that fraud or error whitethorn materially affect the fiscal statement. business relationship to Benny K.B. Kwok 2005, Misstatements in monetary statements can arise from either by error or by fraud. Error refers to an involuntary misstatement in pecuniary data of a company which include omission of an amount or apocalypse, such asA mistake in gathering or processing data from which fiscal statements are preparedAn incorrect write up system system estimate arising from oversight or misinterpretation of facts andA mistake in the application of accounting principles relating to measurement, recognition, classification, unveiling or disclosure.The usage of both the dishonesty to get the monetary advantage illegally and intentionally falsification also disturbing the statements, leads to fraud which can be done by any person from the management, or the employees or any third party.In fraud following things involves Falsification or alteration of accounting records or other documents Misappropriation of assets or thefts curtailment or omission of the effects of relations from records or documents Recording of effect without substance Intentional misapplication of accounting policies Wilful misre faceations of transactions or of the organizations state of affairs.Financial composinging in the UK is based on three principles-Companies pretend 2006 write up standards or specifically Statements of Standard account statement Practices(SSAP) and Financial Reporting StandardsAnd the requirements of the sprout Exchange.Companies manage 2006 check to the Companies Act 2006, accounting records kept up(p) by every company must(prenominal)(prenominal)Be sufficient to envision and explain the companys transactionsDisclose with occasionable accuracy at any time th e pecuniary position of the company at that time and alter the directors to ensure that any Profit and passing play account or residual Sheet gives a true and fair opine of the companys monetary position. accountancy records should contain day to day entries of all transactions, full record of companys assets and liabilities and full information regarding companys stock. harmonize to Companies Act 2006 nether air division 145(B), if the financial statements of a company do not equate the requirements of the Act, the court may ask for revised financial statements and the cost of re- preparing financial statements would be consent by the party in abuse of preparing forged or false financial statements.Accounting StandardsIn UK, all accounting standards till 31 July 1990 utilise to be called Statements of Standards Accounting Practice (SSAP) which was explicate by the Accounting Standard citizens delegation (ASC). SSAP was then gradually replaced by Financial Reporting St andards (FSA) produced by the successor to the ASC, the Accounting Standards Board (ASB). UK Accounting Standards primed(p) stack the guidelines regarding how fussy types of transaction should be reflected in the financial statements of a company to present true and fair picture of companys financial position.The stock deputise tilt requirements- sensationalistic BookRules which governed the itemization of securities of the stock deputise in the UK are cognize as the Yellow Book. According to Yellow Book, listed companies are compulsory to notify their financial statements within six months of their financial year end. Most of the listed companies however, exsert their financial statements quarterly. It is necessary from the point of view of shareholders because shares of companies are in the work force of general public and they need continuous information regarding firm financial position so that they can take right investment decision.According to SSAP December 1999, the objective of financial statements is to provide information about an organizations financial performance and financial position that is usable to a wide range of readers for assessing the stewardship of the organizations management and for making economic decisions.For the purposes of this discussion, we are public lecture about financial statement fraud in a dis keep on public company context a context that can affect confidence in the financial system. We are not talking about what might be called internal fraud or a great many other types of dishonest conduct in corporate life. This is about projecting a false state of affairs on a large shell and in a very public context.DEFINITIONSCorporate governance is about promoting corporate fairness, transparency and accountabilityWolfensohn, hot seat of the Word bank, June 21, 1999.Corporate governance is the system by which business corporations are directed and controlled. The corporate governance building specifies the dist ribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the social system by dint of which the company objectives are set, and the means of attaining those objectives and supervise performance, OECD April 1999. OECDs definition is consistent with the one presented by Cadbury 1992.According to Elliot and Willingham, financial statements fraud is management fraud, the deliberate fraud committed by management that injures investors and creditors by materially misleading financial statements.Key haggle used in the look forCurrency natural selection In this option the proprietor has the right to sell or misdirect the up-to-dateness at a contingent phase of the time at a fussy impairment. In this the possessor doesnt have the obligation.Currency anterior The pric es are locked in this edit so that the counterparties can sell or deal the currency on the upcoming or future date. Here the possessor who holds the contract are oblige to sell or deprave the currency at a busy future date, at the detail quantity and on a point price. These transactions are also called as outright forward currency transactions.Option when the option is exercised to earn profit then it is know as in- the-money option.Call option In this type of option, the vendee who wants to buy any assets, commodities and so forth has the right to buy at a particular proposition accomplishment of time but he is not stimulate, whereas the seller is highly obliged to sell the assets etc. at a particular time to the buyer. A premium has to be paying(a) by the buyer to hold this right. This option is carried out when the strike price is below the price of the market of the hold commodities.Put option In this option, the seller has obligations to buy the commodities, assets etc. from the buyer whereas the buyer has the right, but there is no obligation, to sell the agreed commodities, assets etc. at a particular period of time for a particular price. This option is carried out when the strike price is more than the price of the market of the agreed commodities.Prime divisor The person who settle down the hard currency and security for their clients in the financial market by charging them fees is known as the prime broker. They manage the money of their clients by using different scheme in the market.enquiry Questions and Objectivesenquiry QuestionsFinancial statements frauds -ethical or technical growth?How firms manipulate their financial statements?What are the motives of financial frauds other than monetary?What is the billet of corporate governance in controlling these frauds? inquiry ObjectivesTo analyze the major areas of frauds.To examine role of top management in fraudulent practices.To psychoanalyze the efficacy of various acts and rul es passed for enhance corporate governance.To analyse the importance of financial statements in investment decision making.To explore the causes and consequences of financial statements frauds.Scope of studyResearch study will be restricted to European countries financial statement frauds as US market is more explored than European market. Research will examine and critically analyse the case study of Ireland based bank named Allied Irish Bank.Remaining chapter shall follow the following think strategyChapter Two publications review It will screen 3000 words and include journals and articles citation.Chapter Three Research Methodology It will cover 1500 words. This section will give judgement of data collection and also presently explain limitation disposed to it.Chapter Four Data Analysis This section will evaluate and analyse the data and follow the discussion.Chapter Five final stage and Recommendations This section lastly concludes the research and provides testimony s.CHAPTER TWOLiterature Review2.1.1. effect problem and Corporate Governance2.1.1.1 disengagement of ownership -origin of means problem direction problem resulted from legal separation of ownership from control (Berge Means 1932 Jensen Meckling 1976) is stable prevailing around the world. Findings have proved that firms having weaker corporate governance policies and structure face greater sanction problems which allow senior managers to cook their rule of extracting more private benefits and finally firm perform worse at all levels (Core at al. 1999). render for such a weak corporate governance structure and high federal representation problems can be found from Asian Financial Crisis in 1997. At the time Asian Crisis 1997, firms which had good corporate governance structure provided better protection to shareholders especially to shaver shareholders and performed better during the crisis (Joh 2003 and Mitton 2002). In countries comparable the States and European cou ntries especially UK, agency problems are high as evidenced from corporate scandals in regular army and UK for example Maxwell sens (1991), Polly Peck (1991), BCCI (1991), Enron (2001), Barings Bank (1995), Parmalat (2003) and many more. The recent scandal happened in Societe Generale Bank of Paris 2008, in this also agency problem was the main fountain for the frauds committed by the employer of the Societe Generale Bank of Paris.An operation problem is very life-or-death problem which had taken birth during nineteenth century. Agency guess is outlined as a contract chthonian which one party (the pencil lead) engages other party (the agent) to perform some advantage on their behalf (Jensen and Meckling 1976). The problems arises when the agent do not work in the wellbeing of booster cable. More cases of frauds, where involvements of companys top management were high, coming into light and the simple reason is caput agency problem. In the case of HealthSouth, chief ex ecutive officer Richard Scrushy had instructed senior managers to show fraudulent income of $2.5 billion in order to meet Wall passage expectation.2.1.1.1.1 Agency CostAgency be are another output which is bear by the principal for the frauds committed by the agent. The result of agency problem is reflected in companys share price which can be seen as the loss to shareholders in terms of declined in the price of shares in stock exchange.Jensen and Meckling (1976) explained agency costs as the sum of superintendingcosts, adhere costs, and oddment loss.Monitoring cost-In UK companies are required to follow Cadbury (1992) and Greenbury (1995) write ups for corporate governance. Monitoring cost are paid by the principal to monitor the conduct of agents. Monitoring cost generally include costs of conducting auditing, create verbally executive compensation contracts and sometimes cost of firing the fraud employees and other top managers or executives. All these costs are paid by t he principal, but Fama and Jensen (1983) argued that these agency costs which are initially born by the principal, ultimately borne by the agents as the compensation of agents are adjusted to cover these costs. Some researcher raise argued that supervise will restrict the managerial initiative (Burkart, Gromb and Panunzi 1997). Criticisers of Cadbury Report (1992) have argued that high level of supervise may restrict the managerial entrepreneurship. attach CostsAs argued by Fama and Jensen( 1983), monitoring cost ultimately bear by agents which need to set up structure that will act in interest of shareholders or principal , the cost of establishing these set up or system is known as bonding costs. These costs are not always financial in nature it may include redundant information provided to shareholders. Denis (2001) further argued that the surpass bonding contract should sharpen to entice managers into making all decisions that are in the shareholders best interests.In UK, bonding structure which is imposed on closely held companies management, require companies to sell all income after meeting all business expenses. Earning retention is big problem in UK the mechanism of bonding may reduce the scope of this problem.Residual LossResidual loss arises because the cost of fully enforcing principal-agent contracts would removed outweigh the benefits derived from doing so. Since managerial actions are unperceivable ex ante, to fully contract for every state of nature is impractical. The result of this is an optimal level or residual loss, which may represent a trade-off between to a fault constraining management and enforcing contractual mechanisms designed to reduceagency problems. (Patrick McColgan 20018).2.1.1.2 Stewardship surmiseAgency possible action is more prevalent in the perspective of corporate governance mechanism, but this view has been criticized by many writers (Hoskisson et al. 2000 Blair 1995 Perrow 1986). Agency hypothesis had li mitation in explaining sociological and psychological involved in principal agent conflicts (Davis Thompson 1994 Davis et al.1997). Stewardship theory assume mangers as good stewards of the firms. Managers act diligently in order to attain high corporate profits and shareholders returns (Donaldson Davis 1994). In an empirical study performed by Tian and Lau 2001 in Chinese shareholding firms, they find stewardship theory has received strong support in comparison to agency theory. promote Phan 2001 explained that whether the assumptions of Agency Theory can be generalised to emerging markets, with their different sociological, economic, and developmental fundamentals, remains an important research question.In summary, agency theory has its roots in industrial and organisational economics. Agency theory assumes that behaviour of human being is opportunistic and selfish. Therefore, the theory recommends strong director and shareholder control. It suggests the fundamental function of the board of directors is to control managerial behaviour and try to ensure that managers act in the best interests of shareholders.2.1.2 Review of Corporate Governance storeysIn this section, international reports on corporate governance will be critically reviewed which were published in stick up decades. The international reports considered in this section are as followsReport of the Committee on the Financial Aspects of Corporate Governance (Cadbury Report, 1992)Where were the Directors? Guidelines for Improved Corporate Governance in Canada (Dey Report, 1994)The General Motors Corporation Guidelines (GMC, 2001)Committee on Corporate Governance (Hampel Report, 1998)OECD Principles of Corporate Governance (OECD Report, 1999)Sarbanes- Oxley Act 2002After the unexpected corporate scandals of renowned companies like Maxwell (1991), Polly Peck (1991), and BCCI (1991) among others in the UK, the committee for corporate governance under the guidance of Sir Adrian Cadbury on with F inancial Reporting Council (FRC), the London Stock Exchange (LSE), and the other method of accounting profession has been formed to track corporate governance issues. This report was known as Cadbury report which was first report in UK focused on the aspect of corporate governance such as financial inform and reviewed the role of boards and auditors. This report was published in 1992. The Cadbury committee report finally draw 2 major recommendation for the structure of UK corporate board. Cadbury report suggests at least three non executive directors in the board and two of them should be sovereign from management. The positions of professorship and CEO should not hold by the same person. The purpose behind this set up was to reduce the idiosyncratic dominance and ensuring higher level of monitoring for corporate board by introducing more independence. Beasley (1996) and Dechow et al. (1996) found that firms with more free-living boards are significantly characterised by a l ower likelihood of financial statement fraud and gain management.In Canada, during 1994 Dey report was published. This report was the first fully matured report on corporate governance which a company should follow in order to list on stock exchange. Toronto stock exchange (TSE) adopted these guidelines in 1995 which were laid down by the Dey report. All TSE listed companies required to provide the difference in their corporate governance guidelines and guideline laid down by the Dey report.After Dey Report 1994, other similar reports in other jurisdiction have been published. General Motors Corporation (GMC) in USA published its own corporate guidelines in 1994 after criticising by the shareholders regarding poor people company performance and doubtful board practices. These guidelines were substantial with consent of GMC board, its shareholders and other activists for corporate governance. These guidelines were welcomed by the institute calcium Public Employees Retirement carca ss (CalPERS) and by the industry. GMC guidelines become the benchmark in USA for corporate governance.In UK, during 1998, Hampel Committee was formed to review the recommendations of Cadbury report (1992) and the Greenbury report (1995) relating to executive remuneration. The Hampel committee was also formed to cover some gaps by these two reports i.e. Cadbury report and Greenbury report. Hampel report suggests that good corporate governance goes beyond prescribed corporate structures. According to Hample Report (199815) on Corporate Governance Sir Hample recommend that companies should include in their annual report and accounts a narrative statement of how they keep back the relevant principles to their particular circumstances. Given that the responsibility for good corporate governance rests with the board of directors, the written description of the way in which the board has employ the principles of corporate governance represents a key part of the process. Hampel report dr ew attention for the approach of stroke ticking which is a terrible issue for corporate governance. It also examined the executing of Cadbury and Greenbury report and suggested more choke recommendations on policies of remuneration, accountability and auditing.During 1999, Organisation for scotch and Co-operation Development (OECD) laid down principles of corporate governance for the listed companies of member countries of OECD. It cover main subjects areas like rights and impartial treatment of shareholders, role of stakeholders in corporation structure, disclosure and transparency of financial facts and figures and majorly role and responsibilities of board. OECD guidelines become starting point for local policy makers of corporate governance.After the ,shocking scandals of Enron and WorldCom, US congress along with NYSE (New York Stock Exchange) passed the betters to address conflicts of interest and redefined relationship between companies and auditors. This reform was kn own as the Accounting Industry reform Act 2002 which is astray known as Sarbanes Oxley Act 2002. The main purpose of this act was to practice the independence of external auditors. The act also reinforced duties and responsibilities for CEOs and CFOs by dominating strict penalties for misrepresenting companys quarterly and annual reports. The penalty for misrepresentation was personal fines of US$ 1 million or imprisonment up to 10 age or both. Sarbanes Oxley Act has tearing effect on the corporate governance policies on US and rest of the world. NYSE also imposed additional requirement for listed companies, under which listed companies must have independent directors in absolute majority and must disclose business code of conduct and morality for directors, officers including managers at all level, and employees. Whittington(1993) and Melis, (2004a) argued that corporate financial reporting and corporate governance systems are highly correlated, with any returns in either s ystem having a positive influence on the other, and vice versaCombined code issued in 2006 replaces the combined issued in 2003. Financial service authority of UK, require listing companies to be obliged by the combined code 2006 and carry out consultation before listing. This new code contains main principles and furnish. Combined code 2006 asks listed companies to make a disclosure statement for code and that should be in two parts. Some of the provisions are not or less relevant for small or new listed companies. Also some provisions do not arrest to companies below FTSE 350.2.1.3 Global findings for adoption of corporate governance guidelinesAccording Stephanie Maier (EIRIS 20051) findings, only(prenominal) 25% of US companies give out the roles of chairman and CEO compared with at least 50% forcompanies in other developed economies. Swiss boards have the highestpercentage of independent directors(81%) Germany, Austria and japanall have less than 10%. just now 4% of compa nies in Japan haveaudit committees comprising amajority of independent directorscompared to over 95% in the USA,Canada, the Netherlands,Luxembourg, the UK and Ireland Only 22% of companies in Singaporeand 25% of companies in Hong Konghave meaningful codes of ethics.Board sizeAccording to EIRIS 2005, fairish board size is nominal in New Zealand (7.2) and supreme in Germany (22.8). USA and UK comes at browse 7th and 8th with average board size of 10.7 and 11.4 respectively ( see appendices for details). Higgs Review (2003) suggested An effective board should not be so large as to become unwieldy. It should be of sufficient size that the balance of skills and feel is appropriate for the requirement of the business and that changes in the boards composition can be managed without undue disruption. Separation of ownership and CEOAccording to findings by EIRIS 2005, in UK nearly 97% separate the ownership under one(a) board structure whereas in US only 25% companies separate the owne rship under the one(a) board structure. In Ireland and LuxembImportance of Corporate Governance for Fraud PreventionImportance of Corporate Governance for Fraud PreventionIn the era of globalisation, corporate scandals are no lengthy shocking news in corporate world. A recent corporate fraud has happened in Paris in Societe Generale Bank, where an employee committed a fraud of GBP 3.7 billions. It is not a new story for the corporate world as it has seen cases of BCCI (Bank of credit and commerce internationals), Polly Peck, Maxwell, Allied Irish Bank, Enron, Pamalat, Barings Bank, WorldCom, Xerox and many more. Frauds in Financial statements have become a common area of frauds now days. These frauds have increased the responsibility of auditors and also of government to pass effective laws so that scope of committing frauds can be reduced. Corporate Governance in any company is for that only. Companies are bounded by corporate governance guidelines and procedures, so that chances of fraudulent activities can be reduced.Meaning of Corporate GovernanceAccording Cadbury Report 1992, Companies are controlled and directed by the system of corporate governance. In companies, Corporate Governance is the responsibility of Boards of Directors. Auditors and directors are elected and plant by the consent of shareholders, which give them the feeling of satisfaction that a suitable corporate governance system is working to reserve their rights and benefits.Corporate governance set the relationship between management, board, shareholders and other stakeholders. Corporate governance enables directors and auditors to manage their responsibilities towards shareholders and wide stakeholders of the company. In contrast , corporate governance increased the confidence of shareholders that they will get an reasonable return on their investments, whereas for the stakeholders it provide the assurance that company manages its impact on society and environment in a responsible manne r. Corporate governance include the combination of various laws, regulations, listing rules and voluntary private sector practices that facilitate the company to draw more capital, execute efficiently, generate profit and meet other legal obligations and general societal expectations. Corporate governance is about commitment to values, about ethical business conduct and about making a distinction between personal and corporate funds in the management of a company.Corporations pool capital from a large investor base both in the domestic and in the international capital markets. In this context, investment is ultimately an act of faith in the ability of a corporations management. When an investor invests money in a corporation, he expects the board and the management to act as trustees and ensure the safety of the capital and also earn a rate of return that is higher than the cost of capital. In this regard, investors expect management to act in their best interests at all times and a dopt good corporate governance practices.Need for Corporate GovernanceA corporation is a body of various stakeholders include customers, employees, investors, vendors, government and society. It is necessary for any corporation to present transparent and true pictures to its shareholders. Today, this has become essential for the business world because every company wants to enter into the global capital and also want to draw the attention and also keep hold on the top human capital from different areas of the world. Company want the partnership with different vendors on the big collaborations and want to be in harmony and peace with the rest of the community. A corporation will never succeed until and unless it demonstrate and also it embrace the ethical conduct.Corporate governance in business is in relation to the ethical conduct. Here, the ethic is very much concerned about the different codes of principles and the values which help the person to differentiate and choose between the right and the wrong and as a result, help to choose from the other alternatives. Additionally, the parties which are involved in the conflicting interest give rise to the ethical dilemmas. Therefore, keeping in mind the principles which are totally based on culture, context and the value of the company, the manager make their decisions. For a business which is running good, it is very much important that it always go in the good direction by keeping the stakeholders expectations in mind.Well, corporate governance is not just the law,it is much more than the law and it cant be imposed and run by the legislation alone because its different parts comes from the managements mindset and their culture. The affairs of the organisation are conducted by the corporate governance in order to provide the fairness for all of the shareholders which comes from these three- accountability, integrity and the openness. To certify standards, the legislation can and should put down a general framew ork which is the form. The integrity and the credibility for process will finally determined by the substance. The substance is inevitably connected to the managements ethical standards and mindset.The corporations should always need to identify that the prosperous development and the growth of the company require the full support and the cooperation from their stakeholders and this is possible only when the corporation is following the best practices of the corporate governance. Here for shareholders, management of the corporation needs to perform as the trustees and avoid the difference of benefits among various sections of stakeholders, particularly between the owner and the other stakeholders.Corporate governance becomes the key element in order to improve the firms economic efficiency. With the help of the corporate governance, the corporations keep in mind the interest of the ample series of constituencies, and also of community where they are operating. Additionally it ensure that the board is accountable for shareholders. As a result, it guarantees that the corporations as a whole are operating for the benefit and profit of society. Though by taking the advantage of asymmetry between the shareholders, huge amount of profit can be made in short run, and by balancing the interest of all shareholders itself guarantee the growth and the survival of the corporation in long run.Heavy cost can be incurred if there is failure to execute the good governance which can be the regulatory problems. Many proofs suggest that those corporations or companies which do not implement and follow the significant corporate governance measures can give the considerable risk premium in the public market at the time when it is competing for the limited capital. In recent times, the analysts of the stock market received a high appreciation from the market for showing the relationship between the returns and the governance. For this context, different reports do not only talk abo ut the governance in common but they also recommend the explicit alter investment which is totally based on weakness or strength of the infrastructure of the corporate governance of the company. The best thing about the credibility which is given by the procedures of a good corporate governance is that it help to provide the confidence of clients (national international) in order to draw more patient, the capital for the long term, and also help to cut down the capital cost. All this increased attention is because of arises of the financial crises in different parts of the world. Like, the financial crises in Asia brought the attention of the corporate governance subject in Asia. Recently, the scandals in the US also disturb the unsatisfied corporate landscape and peace which are unexpected in a sense. These scandals lead to a new set of initiatives in corporate governance in US and trigger a new discussion in the United Kingdom with European union and in the rest of the world.Mean ing of Financial Statement FraudFinancial statements are the picture of financial position of a company which includes balance sheet, profit and loss accounts, and trading accounts. Frauds here, means deliberately and intentionally done activities for self interest and cheating the second party. Under the Statement of Auditing Standards (SAS) 1101, it is stated that Auditors should plan and perform their audit procedures and evaluate and report the results thereof, recognizing that fraud or error may materially affect the financial statement.Accounting to Benny K.B. Kwok 2005, Misstatements in financial statements can arise from either by error or by fraud. Error refers to an involuntary misstatement in financial data of a company which include omission of an amount or disclosure, such asA mistake in gathering or processing data from which financial statements are preparedAn incorrect accounting estimate arising from oversight or misinterpretation of facts andA mistake in the applic ation of accounting principles relating to measurement, recognition, classification, presentation or disclosure.The usage of both the dishonesty to get the financial advantage illegally and intentionally falsification also disturbing the statements, leads to fraud which can be done by any person from the management, or the employees or any third party.In fraud following things involves Falsification or alteration of accounting records or other documents Misappropriation of assets or thefts Suppression or omission of the effects of transaction from records or documents Recording of transaction without substance Intentional misapplication of accounting policies Wilful misrepresentations of transactions or of the organizations state of affairs.Financial reporting in the UK is based on three principles-Companies Act 2006Accounting standards or specifically Statements of Standard Accounting Practices(SSAP) and Financial Reporting StandardsAnd the requirements of the Stock Exchange.Compa nies Act 2006According to the Companies Act 2006, accounting records maintained by every company mustBe sufficient to show and explain the companys transactionsDisclose with reasonable accuracy at any time the financial position of the company at that time andEnable the directors to ensure that any Profit and Loss account or Balance Sheet gives a true and fair view of the companys financial position.Accounting records should contain day to day entries of all transactions, full record of companys assets and liabilities and full information regarding companys stock. According to Companies Act 2006 under section 145(B), if the financial statements of a company do not meet the requirements of the Act, the court may ask for revised financial statements and the cost of re- preparing financial statements would be bear by the party in abuse of preparing defective or false financial statements.Accounting StandardsIn UK, all accounting standards till 31 July 1990 used to be called Statements of Standards Accounting Practice (SSAP) which was formulated by the Accounting Standard Committee (ASC). SSAP was then gradually replaced by Financial Reporting Standards (FSA) produced by the successor to the ASC, the Accounting Standards Board (ASB). UK Accounting Standards laid down the guidelines regarding how particular types of transaction should be reflected in the financial statements of a company to present true and fair picture of companys financial position.The stock exchange listing requirements-Yellow BookRules which governed the listing of securities of the stock exchange in the UK are known as the Yellow Book. According to Yellow Book, listed companies are required to publish their financial statements within six months of their financial year end. Most of the listed companies however, publish their financial statements quarterly. It is necessary from the point of view of shareholders because shares of companies are in the hands of general public and they need continu ous information regarding firm financial position so that they can take right investment decision.According to SSAP December 1999, the objective of financial statements is to provide information about an organizations financial performance and financial position that is useful to a wide range of readers for assessing the stewardship of the organizations management and for making economic decisions.For the purposes of this discussion, we are talking about financial statement fraud in a major public company context a context that can affect confidence in the financial system. We are not talking about what might be called internal fraud or a great many other types of dishonest conduct in corporate life. This is about projecting a false state of affairs on a large scale and in a very public context.DEFINITIONSCorporate governance is about promoting corporate fairness, transparency and accountabilityWolfensohn, president of the Word bank, June 21, 1999.Corporate governance is the system by which business corporations are directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among different participants in the corporation, such as, the board, managers, shareholders and other stakeholders, and spells out the rules and procedures for making decisions on corporate affairs. By doing this, it also provides the structure through which the company objectives are set, and the means of attaining those objectives and monitoring performance, OECD April 1999. OECDs definition is consistent with the one presented by Cadbury 1992.According to Elliot and Willingham, financial statements fraud is management fraud, the deliberate fraud committed by management that injures investors and creditors through materially misleading financial statements.Key words used in the researchCurrency option In this option the possessor has the right to sell or buy the currency at a particular phase of the time at a particular price. In this the possessor doesnt have the obligation.Currency forward The prices are locked in this contract so that the counterparties can sell or buy the currency on the upcoming or future date. Here the possessor who holds the contract are obliged to sell or buy the currency at a particular future date, at the particular quantity and on a particular price. These transactions are also called as outright forward currency transactions.Option when the option is exercised to earn profit then it is known as in- the-money option.Call option In this type of option, the buyer who wants to buy any assets, commodities etc. has the right to buy at a particular period of time but he is not obliged, whereas the seller is highly obliged to sell the assets etc. at a particular time to the buyer. A premium has to be paid by the buyer to hold this right. This option is carried out when the strike price is below the price of the market of the agreed commodities.Put option In this option, the seller has ob ligations to buy the commodities, assets etc. from the buyer whereas the buyer has the right, but there is no obligation, to sell the agreed commodities, assets etc. at a particular period of time for a particular price. This option is carried out when the strike price is more than the price of the market of the agreed commodities.Prime broker The person who settle down the cash and security for their clients in the financial market by charging them fees is known as the prime broker. They manage the money of their clients by using different strategy in the market.Research Questions and ObjectivesResearch QuestionsFinancial statements frauds -ethical or technical issue?How firms manipulate their financial statements?What are the motives of financial frauds other than monetary?What is the role of corporate governance in controlling these frauds?Research ObjectivesTo analyse the major areas of frauds.To examine role of top management in fraudulent practices.To analyse the efficacy of v arious acts and rules passed for enhanced corporate governance.To analyse the importance of financial statements in investment decision making.To explore the causes and consequences of financial statements frauds.Scope of studyResearch study will be restricted to European countries financial statement frauds as US market is more explored than European market. Research will examine and critically analyse the case study of Ireland based bank named Allied Irish Bank.Remaining chapter shall follow the following planned strategyChapter Two Literature review It will cover 3000 words and include journals and articles citation.Chapter Three Research Methodology It will cover 1500 words. This section will give idea of data collection and also briefly explain limitation attached to it.Chapter Four Data Analysis This section will evaluate and analyse the data and follow the discussion.Chapter Five Conclusion and Recommendations This section finally concludes the research and provides recom mendations.CHAPTER TWOLiterature Review2.1.1. Agency problem and Corporate Governance2.1.1.1 Separation of ownership -origin of agency problemAgency problem resulted from separation of ownership from control (Berge Means 1932 Jensen Meckling 1976) is still prevailing around the world. Findings have proved that firms having weaker corporate governance policies and structure face greater agency problems which allow senior managers to cook their recipe of extracting more private benefits and finally firm perform worse at all levels (Core at al. 1999). Evidence for such a weak corporate governance structure and higher agency problems can be found from Asian Financial Crisis in 1997. At the time Asian Crisis 1997, firms which had good corporate governance structure provided better protection to shareholders especially to minor shareholders and performed better during the crisis (Joh 2003 and Mitton 2002). In countries like USA and European countries especially UK, agency problems are h igher as evidenced from corporate scandals in USA and UK for example Maxwell Corporation (1991), Polly Peck (1991), BCCI (1991), Enron (2001), Barings Bank (1995), Parmalat (2003) and many more. The recent scandal happened in Societe Generale Bank of Paris 2008, in this also agency problem was the main reason for the frauds committed by the employer of the Societe Generale Bank of Paris.An Agency problem is very crucial problem which had taken birth during 19th century. Agency theory is defined as a contract under which one party (the principal) engages another party (the agent) to perform some service on their behalf (Jensen and Meckling 1976). The problems arises when the agent do not work in the welfare of principal. More cases of frauds, where involvements of companys top management were high, coming into light and the simple reason is principal agency problem. In the case of HealthSouth, CEO Richard Scrushy had instructed senior managers to show fraudulent income of $2.5 billio n in order to meet Wall Street expectation.2.1.1.1.1 Agency CostAgency costs are another issue which is bear by the principal for the frauds committed by the agent. The result of agency problem is reflected in companys share price which can be seen as the loss to shareholders in terms of declined in the price of shares in stock exchange.Jensen and Meckling (1976) explained agency costs as the sum of monitoringcosts, bonding costs, and residual loss.Monitoring cost-In UK companies are required to follow Cadbury (1992) and Greenbury (1995) reports for corporate governance. Monitoring cost are paid by the principal to monitor the behaviour of agents. Monitoring cost generally include costs of conducting auditing, writing executive compensation contracts and sometimes cost of firing the fraud employees and other top managers or executives. All these costs are paid by the principal, but Fama and Jensen (1983) argued that these agency costs which are initially born by the principal, ultim ately borne by the agents as the compensation of agents are adjusted to cover these costs. Some researcher further argued that monitoring will restrict the managerial initiative (Burkart, Gromb and Panunzi 1997). Criticisers of Cadbury Report (1992) have argued that high level of monitoring may restrict the managerial entrepreneurship.Bonding CostsAs argued by Fama and Jensen( 1983), monitoring cost ultimately bear by agents which need to set up structure that will act in interest of shareholders or principal , the cost of establishing these set up or system is known as bonding costs. These costs are not always financial in nature it may include additional information provided to shareholders. Denis (2001) further argued that the optimal bonding contract should aim to entice managers into making all decisions that are in the shareholders best interests.In UK, bonding structure which is imposed on closely held companies management, require companies to distribute all income after mee ting all business expenses. Earning retention is big problem in UK the mechanism of bonding may reduce the scope of this problem.Residual LossResidual loss arises because the cost of fully enforcing principal-agent contracts would far outweigh the benefits derived from doing so. Since managerial actions are unobservable ex ante, to fully contract for every state of nature is impractical. The result of this is an optimal level or residual loss, which may represent a trade-off between overly constraining management and enforcing contractual mechanisms designed to reduceagency problems. (Patrick McColgan 20018).2.1.1.2 Stewardship theoryAgency theory is more dominant in the perspective of corporate governance mechanism, but this view has been criticized by many writers (Hoskisson et al. 2000 Blair 1995 Perrow 1986). Agency theory had limitation in explaining sociological and psychological involved in principal agent conflicts (Davis Thompson 1994 Davis et al.1997). Stewardship theory assume mangers as good stewards of the firms. Managers act diligently in order to attain high corporate profits and shareholders returns (Donaldson Davis 1994). In an empirical study performed by Tian and Lau 2001 in Chinese shareholding firms, they find stewardship theory has received strong support in comparison to agency theory. Further Phan 2001 explained that whether the assumptions of Agency Theory can be generalised to emerging markets, with their different sociological, economic, and developmental fundamentals, remains an important research question.In summary, agency theory has its roots in industrial and organisational economics. Agency theory assumes that behaviour of human being is opportunistic and selfish. Therefore, the theory recommends strong director and shareholder control. It suggests the fundamental function of the board of directors is to control managerial behaviour and try to ensure that managers act in the best interests of shareholders.2.1.2 Review of Corp orate Governance reportsIn this section, international reports on corporate governance will be critically reviewed which were published in last decades. The international reports considered in this section are as followsReport of the Committee on the Financial Aspects of Corporate Governance (Cadbury Report, 1992)Where were the Directors? Guidelines for Improved Corporate Governance in Canada (Dey Report, 1994)The General Motors Corporation Guidelines (GMC, 2001)Committee on Corporate Governance (Hampel Report, 1998)OECD Principles of Corporate Governance (OECD Report, 1999)Sarbanes- Oxley Act 2002After the unexpected corporate scandals of renowned companies like Maxwell (1991), Polly Peck (1991), and BCCI (1991) among others in the UK, the committee for corporate governance under the guidance of Sir Adrian Cadbury along with Financial Reporting Council (FRC), the London Stock Exchange (LSE), and the other accountancy profession has been formed to address corporate governance issues . This report was known as Cadbury report which was first report in UK focused on the aspect of corporate governance such as financial reporting and reviewed the role of boards and auditors. This report was published in 1992. The Cadbury committee report finally draw two major recommendation for the structure of UK corporate board. Cadbury report suggests at least three non executive directors in the board and two of them should be independent from management. The positions of chairman and CEO should not hold by the same person. The purpose behind this set up was to reduce the individual dominance and ensuring higher level of monitoring for corporate board by introducing more independence. Beasley (1996) and Dechow et al. (1996) found that firms with more independent boards are significantly characterised by a lower likelihood of financial statement fraud and earnings management.In Canada, during 1994 Dey report was published. This report was the first fully fledged report on corpor ate governance which a company should follow in order to list on stock exchange. Toronto stock exchange (TSE) adopted these guidelines in 1995 which were laid down by the Dey report. All TSE listed companies required to provide the difference in their corporate governance guidelines and guideline laid down by the Dey report.After Dey Report 1994, other similar reports in other jurisdiction have been published. General Motors Corporation (GMC) in USA published its own corporate guidelines in 1994 after criticising by the shareholders regarding poor company performance and doubtful board practices. These guidelines were developed with consent of GMC board, its shareholders and other activists for corporate governance. These guidelines were welcomed by the institute California Public Employees Retirement System (CalPERS) and by the industry. GMC guidelines become the benchmark in USA for corporate governance.In UK, during 1998, Hampel Committee was formed to review the recommendations of Cadbury report (1992) and the Greenbury report (1995) relating to executive remuneration. The Hampel committee was also formed to cover some gaps by these two reports i.e. Cadbury report and Greenbury report. Hampel report suggests that good corporate governance goes beyond prescribed corporate structures. According to Hample Report (199815) on Corporate Governance Sir Hample recommend that companies should include in their annual report and accounts a narrative statement of how they apply the relevant principles to their particular circumstances. Given that the responsibility for good corporate governance rests with the board of directors, the written description of the way in which the board has applied the principles of corporate governance represents a key part of the process. Hampel report drew attention for the approach of box ticking which is a serious issue for corporate governance. It also examined the implementation of Cadbury and Greenbury report and suggested more cle ar recommendations on policies of remuneration, accountability and auditing.During 1999, Organisation for Economic and Co-operation Development (OECD) laid down principles of corporate governance for the listed companies of member countries of OECD. It cover main subjects areas like rights and equitable treatment of shareholders, role of stakeholders in corporation structure, disclosure and transparency of financial facts and figures and majorly role and responsibilities of board. OECD guidelines become starting point for local policy makers of corporate governance.After the ,shocking scandals of Enron and WorldCom, US congress along with NYSE (New York Stock Exchange) passed the reforms to address conflicts of interest and redefined relationship between companies and auditors. This reform was known as the Accounting Industry reform Act 2002 which is widely known as Sarbanes Oxley Act 2002. The main purpose of this act was to enforce the independence of external auditors. The act al so reinforced duties and responsibilities for CEOs and CFOs by imposing strict penalties for misrepresenting companys quarterly and annual reports. The penalty for misrepresentation was personal fines of US$ 1 million or imprisonment up to 10 years or both. Sarbanes Oxley Act has intense effect on the corporate governance policies on US and rest of the world. NYSE also imposed additional requirement for listed companies, under which listed companies must have independent directors in majority and must disclose business code of conduct and ethics for directors, officers including managers at all level, and employees. Whittington(1993) and Melis, (2004a) argued that corporate financial reporting and corporate governance systems are highly correlated, with any improvement in either system having a positive influence on the other, and vice versaCombined code issued in 2006 replaces the combined issued in 2003. Financial service authority of UK, require listing companies to be obliged by the combined code 2006 and carry out consultation before listing. This new code contains main principles and provisions. Combined code 2006 asks listed companies to make a disclosure statement for code and that should be in two parts. Some of the provisions are not or less relevant for small or new listed companies. Also some provisions do not apply to companies below FTSE 350.2.1.3 Global findings for adoption of corporate governance guidelinesAccording Stephanie Maier (EIRIS 20051) findings, Only 25% of US companies separate the roles of chairman and CEO compared with at least 50% forcompanies in other developed economies. Swiss boards have the highestpercentage of independent directors(81%) Germany, Austria and Japanall have less than 10%. Only 4% of companies in Japan haveaudit committees comprising amajority of independent directorscompared to over 95% in the USA,Canada, the Netherlands,Luxembourg, the UK and Ireland Only 22% of companies in Singaporeand 25% of companies in H ong Konghave meaningful codes of ethics.Board sizeAccording to EIRIS 2005, average board size is minimum in New Zealand (7.2) and maximum in Germany (22.8). USA and UK comes at rank 7th and 8th with average board size of 10.7 and 11.4 respectively ( see appendices for details). Higgs Review (2003) suggested An effective board should not be so large as to become unwieldy. It should be of sufficient size that the balance of skills and experience is appropriate for the requirement of the business and that changes in the boards composition can be managed without undue disruption. Separation of ownership and CEOAccording to findings by EIRIS 2005, in UK nearly 97% separate the ownership under unitary board structure whereas in US only 25% companies separate the ownership under the unitary board structure. In Ireland and Luxemb

Origins of the Accumulation of Armaments

Origins of the comp canium of ArmamentsRunning Head Contemporary and Historic Origins of the Accumulation of ArmamentsCONTEMPORARY AND HISTORICAL ORIGINS OF wherefore STATES NEEDS TO ACQUIRE AND ACCCUMULATE THE MEANS OF DESTROYING OTHERS AND WHY SO MUCH CONCERN FOR ARMS CONTROLROXY AGANIMO PEGGYThe issue of fortify acquisition has been widely debated among earths as well as new(prenominal) recreate groups, hence the question, why would anyone need accou terments? Arms as tell by the linked Nations ar any forms of military weaponry ranging from tanks, equip vehicles, submarines, aircraft carriers, surface to air missiles, surface to surface missiles, to any form of battleship or petrol boat, landmines or sub charges, heavy machine guns or even self-propelled guns1. Some may argue that we need build up for one or some of the chaseing reasons A. For protection- We may need guns and different weapons to help protect our family and new(prenominal) valuable possessions t hat be sto expiration in our homes. B. For defense- In case of a robbery we may need a gun to defend ourselves and family2 C. For recreation- Like going hunting or tar stay put shooting. How would you tonicity if you ar not allowed to own/do these? But those are on a relatively small scale, why would states (Countries) desire to accumulate the operator to destroy others? Could it be for alarm, recreation, defense or protection? This paper would gauge to expatiate on the reasons behind arms control, disarmament and most oddly how it all started i.e. despite the effective intent of armaments, the need for the regulation and enjoyment cannot be far-fetched, hence is acquisition should be curtailed. political sympathies is the activity in which conflicting interest crusades for advantage or dominance, or as other political scientists postulate, the study of influence and influential the influential being those who buy off the most of what there is to get3, one should not be s urprised that states struggle to get what there is to get, whether they be piece of land, or an island or (toys) weapons. meshings happens actually often, they are basically forms of disagreement, which can be subdivided into 2 groups, a. Conflict of interests such as territorial, economical and governmental issues which un doubtedly are tangible. The scheme of Lateral pressure explains why most conflict arises it states that economic offset of states leads to geographic expansion as they seek vivid resources beyond their borders which in turn leads to conflicts and sometimes struggle4. Next is b. Conflict of ideas such as ethical, ideological and religious ideas which are considered intangible elements. Both conflicts however, overlaps in their occurrence. In ossification with the Hobbesian theory of all against all, the foreign dodge is structurally a self-help surroundings i.e. anarchic (a state where there is no ball-shaped authority to carry out rules) where ever y state must strive to ensure its own surety and survival5. This philosophy reflects the Realist view of things- that mankind is not inherently benevolent exactly rather hostile, self-centered and competitive states are therefore inherently aggressive (offensive realism- the need to get to a greater extent queen) and/or obsessed with security (defensive realism- the inspire to build more weapons in defense from war), and that expansion and amassing of resources is only restrain by opposing powers which in modern time are referred to as the striking powers. Thus, dealing between states are situated by their comparative degree level of power derived primarily from their military capabilities i.e. military force is relied upon when implementing the states overseas policies6.If one Great Power emerges as dominant, Realist theory predicts that other major(ip) and Great Powers will tend to form a coalition or an alliance so as to prevent that power or state from conquering the e ntire region7. Thus the inherent structure of the anarchic system necessitates that states play a support of power politics in which alliances are formed and reformed to maintain this balance. Realists philosophy views security as a zero-sum game(a situation where no one benefits/wins), in which only relative gains are possible, major and Great Powers always suspect each others intentions, and are endlessly engaged in mortal competition for power8. It overly sees the need to retain power as a necessity, Morgenthau cited the example of Great Britains foreign policy in 1939-1940 against Finland, he stated that the founding of the policy was not based on any legalistic-moralistic approach path only when on massive military aid in defense of the Soviet aggression that force break backfired on Britain alone9Over the days, territorial disputes has been a big issue, places/territories such as Bakassi -disputed by Nigeria and Cameroon, Chagos Archipelago- disputed by the United Kin gdom and Mauritius, Ceuta- disputed by Spain and Morocco, the spratly islands- claimed by China, Vietnam, Malaysia, Brunei, the Philippines and Taiwan, Kashmir and Jammu region- claimed by the Peoples republic of China, India and Pakistan, and a host of many others. Man as quoted from ==== has uneasy desire for power, so foreign politics is marked by uninterrupted power play which makes cooperation much more difficult10. Wars as seen from the Marxist approach are as a result of clashes between capitalist whose interests are to create colonies11 which are all as a result of economic exploitation and political subjugation of weaker states.There has been behavioral revolution in social science throughout ages, hence the birth of system abstract/theory. Morton Kaplan, a major contri hardlyor to the system made mention of multinational and nation state system which he felt had coherence, regularity hence central in supranational dealings. He also made spirit of the fact that chan ge was possible, notwithstanding the role of states that is constantly being warnmined by the international system dividing the international system into 6 models- the starting line known as the Balance of power (BOP) system which happened between 1815- 191412. He noted that the system began to falter as major actors were seen in the international system, hence the breakout of the First World War. The conformity of Versailles was the peace village signed afterWorld War Onehad ended in 1918 in the shadow of theRussian Revolutionand other events inRussia. The pact, which was a prequel to Wilsons cardinal points of peace to the US congress in January 191813 was signed on June 28th 1919 at the capacious Versailles Palace pricey Paris hence its title between Germany and the Allies. The three most important politicians there were DavidLloyd Georgeof Britain, Clemenceauof France andWoodrowWilsonof America who after months of argument and negotiations, finally decided what the treat y should contain14. It was also referred to as Diktat- as it was being forced on the Germans who had no choice hardly to sign it. Although many people in Germany did not want the Treaty signed, the representatives there knew that they had no choice as German was incapable of restarting the war again15. Consequently, we can say Germany was disarmed the act of reducing, limiting, or abolishing weapons, but in modern day, disarmament is often taken to sloshed natural elimination of weapons of mass destruction, such as atomic arms. General and Complete Disarmament refers to the removal of all weaponry, including conventional arms.Initially, only the United States possessed atomic weapons, but in 1949 the Soviet Union exploded an atomic flunk and the arms race began arms race. Both countries continued building more and larger bombs. In 1952, the United States tested a new and more virile weapon the hydrogen bomb. The Soviet Union followed with its own version in 1953.Einstein wa tched with growing dismay as the two superpowers seemed to move immediate and closer to atomic war. Convinced that the only way to prevent the annihilation of humankind was to prevent all future wars, Einstein spoke out more fervently than ever in favor of international cooperation and disarmament16.The first red scare, which happened in America between the years 1919-1920, left the Americas cherished civilized liberties threatened as communism claimed to subvert the American society17. To strident American anticommunists, the post- World War II Soviet danger lay not only in military aggression, but even more in the limitless prospect of Moscows ideological expansion aimed at world domination. To them the U.S.S.R.s self-assigned leading of world Communism possessed the power and will to incite and maintenance Communist-led revolutions everywhere, imposing on them its influence, if not its direct control. This presumption assigned to the Soviet Union the unprecedented power to extend its presence over vast distances without military force18. US, however carried out the Marshall plan which was a pecuniary aid to rebuild Europes economy as the fear that Soviet Union would invade Western Europe via provision of aid19.An arms race denotes a rapid, competitive increase in the quantity or quality of instruments of military or naval power by adjoin states in peacetime. What it connotes is a game with a logic of its own. Typically, in habitual depictions of arms races, the political calculations that start and regulate the pace of the game sojourn obscure. As Charles H. Fairbanks, Jr., has noted, The strange result is that the activity of theotherside, and not ones own resources, plans, and motives, becomes the determinant of ones behavior. And what constitutes the finish line of the game is the province of assertion, rather than analysis20. Many on scenters, and some participants, have claimed that the likelihood of war increases as the accumulation of arms proceeds apace. There is no doubt that the United States and its European allies are primarily concerned with weaponization, they might accept a scenario in which Iran stops of a sudden of a nuclear weapon. Israel, however, has made it clear that it views a significant Iranian enrichment capacity alone as an unacceptable threat. It is possible, then, that a verifiable commitment from Iran to stop short of a weapon could appease major Western powers but see the Israelis unsatisfied. Israel would be less intimidated by a virtual nuclear weapon than it would be by an actual one and therefore would apt(predicate) continue its risky efforts at subverting Irans nuclear program through undermine and assassination which could lead Iran to conclude that a breakout cap energy is an short deterrent, after all, and that only weaponization can provide it with the security it seeks21.Looking at the early forms of arms race, we see that states such as Israel is willing to use force (nuclear arms) to secure its nuclear monopoly in the region against Iraq as at 1981. It did the same to Syria in 2007 and is now considering similar action against Iran. But the very acts that have allowed Israel to maintain its nuclear edge in the short term have prolonged an imbalance that is unsustainable in the long term. Israels proven ability to strike potential nuclear rivals with impunity has inevitably made its enemies anxious to interrupt the nitty-gritty to prevent Israel from doing so again. Deterrence is the term for such action, In this way, the current tensions are best viewed not as the early stages of a relatively recent Iranian nuclear crisis but rather as the final stages of a decades-long bosom East nuclear crisis that will end only when a balance of military power is restored22.We may ask, why is there so much concern for arms control? First, on the 6th of august 1945,US President Harry Truman, during World War II (1939-45),gave others after the testing of bomb made w ith key materials for nuclear nuclear fissionuranium-235 and plutonium (Pu-239)in Mexico an American B-29 bomber dropped the worlds first deployed atomic bomb over the Japanese city of Hiroshima. The explosion wiped out 90 percent of the city and immediately killed 80,000 people tens of thousands more would later hap of radiation exposure. Three days later, a second B-29 dropped another Atomic-bomb on Nagasaki, killing an estimated 40,000 people. Japans Emperor Hirohito announced his countrys unconditional surrender in World War II in a radio address on August 15, citing the devastating power of a new and most cruel bomb23.In 1961 East Germany build the Berlin Wall separating East from West Berlin. It symbolized the division of Europe by what Winston Churchill had called the put right curtain24. Despite the hostility of East-West relations during the Cold War, a relatively permanent framework of relations emerged, and conflicts never escalated to all-out war. In 1989, the wall fly symbolizing the end of the cold war, while 2007 marked the start of global economic crisis25.In contemporary times, we take a closer look at Iran- if it obtains a/the bomb, other states in that region will follow suit, leading to a nuclear arms race in the Middle East. But the nuclear age is now almost 70 years old, and so far, fears of proliferation have proved to be unfounded. Properly defined, the term proliferation means a rapid and uncontrolled spread. Nothing like that has occurred in fact, since 1970 as report states, there has been a marked slowdown in the topic of nuclear states26. Consequently, millions if not billions of dollars were spent on the procurements of their strategic arsenals and nuclear weapons these monies could have been spent on something more productive instead of the arms race27.In summary, Nuclear weapons, Robert McNamara wrote in the September 1983 issue of distant Affairs, serve no military purpose whatsoever. They are amount of moneyly useless except to deter ones opponents from using them. The stark reality of mutual assured destruction, grounded on citation of nuclear parity, led to an informal nuclear weapon taboo28 they claim that nuclear weapons are deterrents that prevent the world from breaking out in total war. Researchers are supporting this argument by declaring how nuclear weapons have been guardianship peace. However, other researchers and scientists deny the effectiveness of nuclear weapons as deterrents and declare that nuclear weapons will lead the world into total devastation29. National Treaty fashion (NTM) of verification are individual methods used by individual parties to monitor lizard treaty compliance30 also the Strategic arms reduction talks (START) as well as some embargos such as Intermediate nuclear forces (INF) agreement, plus negotiations as well as limits on strategic nuclear delivery vehicles (SNDV) and compliance with antiballistic missiles (ABM) as well as non-proliferation treaty has been effective in curtailing the spread of armaments.BibliographyBBC on this day- 1945 US drops atomic bomb on Hiroshima. (2005, August). Retrieved work on 2014, from BBC unfermenteds http//news.bbc.co.uk/onthisday/hi/dates/stories/august/6/newsid_3602000/3602189.stmbarrage fire of Hiroshima and Nagasaki. (2009). (A+E Networks) Retrieved from History.com http//www.history.com/topics/world-war-ii/bombing-of-hiroshima-and-nagasakiEimer, M. . (1987, January 23). Verification and arms control. Science New Series, 235(4787), 406-414. Retrieved March 19, 2014, from http//www.jstor.org/ permanent/1698322Ghosh, P. (2009). worldwide Relations. PHI Learning Pvt. Ltd. Retrieved March 2014Joshua, G. S., Jon, P. C., Witworth, S. (2008). Internatonal conflict. In J. S. Goldstein, J. C. Pevehouse, S. Witworth, G. Bennett (Ed.), world-wide relations (2nd ed., pp. 158-250). Toronto, Ontario, Canada Pearson precept Canada. Retrieved March 2014Nuclear arms race- The cold war. (2008). Retrieved March 2014, from American museum of natural history http//www.amnh.org/exhibitions/past-exhibitions/ hotshot/peace-and-war/nuclear-arms-raceSchiffrin, A. (1997, March April). The Cold War and the University Towards an Intellectual History. Foreign affairs, 76(2), 147-151. Retrieved March 19, 2014, from http//www.jstor.org/horse barn/20047943Siracusa, J. M. (2009, December). Reflections on the cold war. Australasian Journal of American Studies, 28(2), 1-16. Retrieved March 2014, from http//www.jstor.org/ enduring/41054143 .Smith, S., Baylis, P. O. (2011). Introduction. In J. Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 4-200). New york Oxford University press. Retrieved March 2014Trading arms to terrorist organization. (2012). Retrieved March 2014, from Lawteacher.net http//www.lawteacher.net/international-law/essays/trading-arms-to-terrorist-organizations-international-law-essay.phpUclari. (2008). foreign relations theory. Retrieved march 2014, from peter teeth http//roosterteeth.com/forum/viewTopic.php?id=2205392Waltz, K. N. (2012). Why Iran should get the bomb- Nuclear balancing would mean stabilty. Retrieved March 2014, from Foreign affairs www.foreignaffairs.comWoodrow wilsons fourteen points. (2013). Retrieved March 2014, from History learning site www.historylearningsite.co.uk11Retrieved from http//www.lawteacher.net/international-law/essays/trading-arms-to-terrorist-organizations-international-law-essay.php2 http//hotessays.blogspot.ca/2010/12/essay-on-right-to-bear-arms.html3 Heard, A. (2011). political Culture and Socialization The Media and Other Mind Sharpers. In R. Dyck, Studying Politics An Introduction to Political Science (pp. 6). Toronto Nelson Education4 Joshua, G. S., Jon, P. C., Witworth, S. (2008). multinational conflict. In J. S. Goldstein, J. C. Pevehouse S. Witworth, International relations (2nd ed., pp. 174). Toronto, Ontario, Canada Pearson education Cana da. Retrieved March 20145 Uclari. (2008). International relations theory. Retrieved march 2014, from Rooster teeth http//roosterteeth.com/forum/viewTopic.php?id=22053926 Smith, S., Baylis, P. O. (2011). Introduction. In J. Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 4). New York Oxford University press. Retrieved March 20147 Joshua, G. S., Jon, P. C., Witworth, S. (2008). Introduction- The Cold war, 1945-1990. In J. S. Goldstein, J. C. Pevehouse, S. Witworth, G. Bennett (Ed.), International relations (2nd ed., pp. 158-250). Toronto, Ontario, Canada Pearson education Canada. Retrieved March 20148 Smith, S., Baylis, P. O. (2011). Introduction. In J. Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 4-200). New York Oxford University press. Retrieved March 20149 Ghosh, P. (2009). International Relations. ( pp.27). PHI Learning Pvt. Ltd. R etrieved March 201410 Smith, S., Baylis, P. O. (2011). Introduction. In J. Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 4-200). New York Oxford University press. Retrieved March 201411 Ghosh, P. (2009). International Relations. (pp. 35). PHI Learning Pvt. Ltd. Retrieved March 201412 Ghosh, P. (2009). International Relations. (pp. 35). PHI Learning Pvt. Ltd. Retrieved March 201413Retrieved from http//www.historylearningsite.co.uk/woodrow_wilson1.htm14 http//www.historylearningsite.co.uk/woodrow_wilson1.htm15 Retrieved from History.com http//www.history.com/topics/world-war-ii/bombing-of-hiroshima-and-nagasak16 Retrieved from http//www.amnh.org/exhibitions/past-exhibitions/einstein/peace-and-war/nuclear-arms-race17 Siracusa, J. M. (2009, December). Reflections on the cold war. Australasian Journal of American Studies, 28(2), 2. Retrieved March 2014, from http//www.jstor.org/ invariable/4105414318 Siracusa, J. M. (2009, December). Reflections on the cold war. Australasian Journal of American Studies, 28(2), 2. Retrieved March 2014, from http//www.jstor.org/stable/4105414319 Joshua, G. S., Jon, P. C., Witworth, S. (2008). Introduction- The Cold war, 1945-1990. In J. S. Goldstein, J. C. Pevehouse, S. Witworth, G. Bennett (Ed.), International relations (2nd ed., pp. 158-250). Toronto, Ontario, Canada Pearson education Canada. Retrieved March 201420 Uclari. (2008). International relations theory. Retrieved march 2014, from Rooster teeth http//roosterteeth.com/forum/viewTopic.php?id=220539221 Retrieved from http//www.lawteacher.net/international-law/essays/trading-arms-to-terrorist-organizations-international-law-essay.phpixzz2wXYbvfUj22Retrieved from http//www.foreignaffairs.com/ members/137731/kenneth-n-waltz/why-iran-should-get-the-bomb23 http//www.history.com/topics/world-war-ii/bombing-of-hiroshima-and-nagasaki24 Smith, S., Baylis, P. O. (2011). Evolution of International society. In J . Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 38). New York Oxford University press. Retrieved March 201425 Smith, S., Baylis, P. O. (2011).International . In J. Baylis, S. S. Owens, The Globalization of the World politics- An Introduction to international relations (5th ed., pp. 63). New York Oxford University press. Retrieved March 201426 Waltz, K. N. (2012, August). Why Iran should get the bomb- Nuclear balancing would mean stability. Retrieved March 2014, from Foreign affairs www.foreignaffairs.com27 Waltz, 228 Siracusa, J. M. (2009, December). Reflections on the cold war. Australasian Journal of American Studies, Vol. 28 (2), pp8. Retrieved March 2014, from http//www.jstor.org/stable/4105414329Retrieved from http//www.teenink.com/opinion/current_events_politics/article/466412/The-World-Does-Not-Need-Nuclear-Weapons/30 Eimer, M. . (1987, January 23). Verification and arms control. Science New Series, v ol.235 No. 4787, pp 406. Retrieved March 19, 2014, from http//www.jstor.org/stable/1698322