We Live A World Dominated By Language - 946 Words

We live in a world dominated by language. Whether it be spoken, written, or read the words that we are surrounded by influence us all in different ways. We are, in reality, byproducts of what we read, write, and talk about. This being said, our linguistic history tells a lot about us. As the language I was exposed to followed a natural progression and evolved, so did my linguistic capabilities. My development of the eight habits of the mind described in the Framework for Success in Postsecondary Writing highlights this linguistic progression. My true linguistic history takes off when I learned how to read. My mother used to gather my siblings and I at the foot of her bed every night and read us books. I really enjoyed the books but the pace we read at, one chapter a night, was painstakingly slow and was not curbing my hunger to find out what happened next. I began to read the books on my own, focusing on mythology and fantasies. Reading mythological stories told through the perspecti ves of cultures and ideas foreign to me helped me develop a sense of openness. I found that because of this background it was easier to appreciate viewpoints different from my own. And because the stories are mostly fables told by each culture to teach lessons I further cultivated my critical thinking skills. Seeking to understand the â€Å"Whys† behind the actually works, I read to understand the purpose of the different author’s messages and purposes. I was find joy in reading things for reasonsShow MoreRelatedThe Feminist Literary Criticism : Women s Struggle Against Evil And Masculine Forces Essay1671 Words   |  7 Pagesearth, beautiful like Lakshmi, the goddess of learning as a perfect duty minded. From our mythology, we understand that woman plays a key role in the whole world. She is multifaceted. We have four Yugas. Of all the yugas, Kaliyuga is known for sin and evil. The whole world is filled with violence, atrocities and corruption. Women in this yuga are ill-treated, tortured and dominated. We cannot deny the fact that women in India have made a considerable progress after independence, but theyRead MoreLanguage And Its Effects On The Individual And Society1527 Words   |  7 PagesBritish novelist George Orwell states, â€Å"The use of language creates different impacts on the individual and society and therefore, elicits different reactions† (2222). Throughout human civilization, the idea of a language has been used to communicate and share ideas with other human beings. Many of these ideas, such as cultural differences, ideals of religion, and how others should be treated, were shared through a language. These gaps of ideas can separate many groups of people, if one group wereRead More Henry David Thoreaus Walden and Aldo Leopolds A Sand County Almanac 867 Words   |  4 PagesAlmanac, we attempted to address an important challenge -- Is the close observation and description of nature merely an idle thing for people in todays world? It could be suggested that nature writing and the close enjoyment of natural environments is merely recreational and not intellectually, economically, or politically worthy of our efforts. Perhaps this activity has spiritual value or gives us a sense of peace. But does it really have anything to do with the way we live in the world todayRead MoreNineteen Eighty Four By George Orwell928 Words   |  4 PagesImagine living in a world were all your actions are under constant supervision? In which the government has full control over your life. A world in where there is no freedom of self expression. Even your own thoughts could be considered a crime. The popular high school novel Nineteen Eighty–four by George Orwell lets the reader experience that world, one of totalitarianism; in which a state has no limits in their authority and attempts to regulate every aspect of public and private life. This bookRead MoreSocial Factors Affecting the Business Enviroment and People Around It1608 Words   |  7 PagesSocio-Cultural Factors Introduction Socio-cultural is based on the idea that the society and culture shape cognition. Social customs, values, beliefs and language are all part of what shapes a person’s identity and reality. According to this approach, what a person thinks is based on his or her social-cultural background. There are many factors which affect the organizations either internally or externally. These factors include demography, cultural values, changing roles of women, level of educationRead MoreSocial Factors Affecting the Business Enviroment and People Around It1614 Words   |  7 PagesSocio-Cultural Factors Introduction Socio-cultural is based on the idea that the society and culture shape cognition. Social customs, values, beliefs and language are all part of what shapes a person’s identity and reality. According to this approach, what a person thinks is based on his or her social-cultural background. There are many factors which affect the organizations either internally or externally. These factors include demography, cultural values, changing roles of women, level of educationRead MoreWhat Is Your Opinion of The Spread of English in the World Today?1137 Words   |  5 PagesThe usage of English language by people is common in every part of the world. Nowadays there are lots of people interested in English reading and speaking. According to Hung (2009), the world was in need of a common language at the end of the 19th century to communicate and they believed that this common langurage should be among the natural languages that existed at that time. So among other languages English seemed to be more suited to the world language (Hung, 2009). Since English has now becomeRead More The Importance of Globalization Essay830 Words   |  4 Pagesglobally,† but rather that, to many Americans, America is the extent of their terrestrial sphere. Yet even within the confines of our own country-world, we don’t shed our comfortable, self-imposed boundaries. We don’t see the growing Hispanic and Asian populations in our midst, viewing them—if we acknowledge them at all—as invaders in our world. According to Census 2000, 35,305,818 people of Hispanic or Latino origin inhabited the United States in the year 2000, nearly 13 million more than inRead MoreLanguage As A Form Of Communication Essay1388 Words   |  6 Pagesbehaviors, languages, customs, the things we produce and the methods we use to produce them. The human ability to create and transmit culture is what differentiates us, as humans, from the rest of the animal world. The essential feature of culture, that it is learned and transmitted from one generation to the next, rests on the human capacity to think symbolically. Language, perhaps the most important feature, is a symbolic form of communication. Language is a form of communication. Witho ut language, cultureRead MoreArguementative Eassy on Dependent on Technology1092 Words   |  5 PagesTV, every video game console. Technology.  Perhaps we live it. 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Obesity Is A Complex Phenomenon - 879 Words

Obesity is one of The most common problems in medicals. Obesity it is the accumulation of fat inside the body components and increased body weight alone for a natural result of the accumulation of fat in it, and this accumulation results from an imbalance between energy intake from food and energy consumed in the body. Obesity is a complex phenomenon, and it intervention of many factors: genetic, psychological, emotional, social. It might cause occurrence of adverse effects on health, but we can protect our self by treatment and attention to our health. Increasing obesity, childhood and adults can it be by the inherit. The reasons for the increasing childhood obesity is because of the parents who are not interested about their children foods, what they eat ? when they have to eat ?. Because the child s body needs a different type of foods and cooking method of adult, that is important. The child eats completely mashed and light and less than the child who used to eat less thick and not completely mashed. Poor regulation of food intake and foods for each uncontrolled such as fast food hamburgers, and foods full with oils. And give them plenty of Sweets. Energy balance in children happens when the amount of energy taken in from food or drink and the energy being used by the body support natural growth without promoting excess weight gain( U.S. Department of Health and Human Services ). To solve this problem, parents need to give their children fresh juices instead ofShow MoreRelatedThe Topic Of Body Weight1288 Words   |  6 PagesThe topic of body weight in America is a sociopolitical phenomena with multiple, often conflicting perspectives. Some refer to the issue of obesity as an epidemic, highlighting social and political solutions to redress the consequences of weight-gain amongst U.S. citizens. 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It is known to cause more thanRead MoreThe Economics Of Obesity And Obesity1180 Words   |  5 PagesEconomics of Obesity Obesity’s presence has reached much larger magnitudes than ever before in human history. 33% of adults and above 20% of children in the U.S. are classified as obese as concluded by Duke University (â€Å"Over a Lifetime†). Although obesity appears to be strictly a medical problem, many new studies are showing that obesity is linked to numerous factors such as society, technology, politics, and economics. As a result of multifarious fields, reducing childhood obesity in the U.S. isRead MoreEffects Of Obesity On Children Health1139 Words   |  5 PagesEffects of Obesity on Children Health Obesity is a serious medical and psychological condition that affects children, adult, and elderly people. According to WHO, People who are above the normal weight for their age and height are called obese. Childhood obesity has been problem in developed as well as in developing countries. As Cause, it is accepted that increase in obesity results from an imbalance between abnormal intake of unhealthy food and drink and also unable to burn calorie. There is increasingRead MoreBreast Ovarian Syndrome : The Most Common Endocrine Disorder Abbreviated Pcos870 Words   |  4 Pagesovarian syndrome has many related symptoms but the most common are: irregular periods, amenorrhea, hirsutism, acne, obesity, infertility, insulin resistance, and estrogen dominance. Although, most of the people that have PCOS are obese not all patients are overweight. PCOS is associated with abdominal obesity and insulin resistance. Insulin resistance is a rather complicated phenomenon. First, it is important to note that insulin is a very important hormone in the human body and too much or too littleRead MoreFactors That Influence Obesity Rates Among Children Essay1520 Words   |  7 PagesThis paper will describe the factors that influence obesity rates among children. It will review relevant literature concerning the bio-psychosocial facts and etiology involved in childhood obesity. This paper will discuss why this is a problem not only for the client system, but also a significant social problem. Multiple systems will be explored to support the continuation of the problem on a micro, mezzo and macro level. Some specific policies that exacerbate the problem will be looked at alongRead MoreChildhood Obesity : A Complex Health Issue1275 Words   |  6 Pages Childhood obesity is a complex health issue in today’s society. It occurs when a child is well above the healthy weight for the average age and h eight. Excess weight during growing years is of great importance for at least three main reasons. First, it constitutes a risk of overweight and obesity during adult life. Second, childhood obesity correlates with adulthood risk factors for common chronic diseases such as diabetes, cardiovascular disease, and other morbidities. Third, obese children alreadyRead MoreFast Food in America1664 Words   |  7 Pagesliving in a country with the smallest fund of practical nutritional knowledge. (Fast Foods Hidden Dangers 1) The people of the U.S. are living in a land plagued with obesity. America is home to the most obese people in the world. (Fast Foods Hidden Dangers 1) According to the CDC, Center for Disease Control and Prevention, obesity in adults has increased by sixty percent in the past twenty years. (Fast Foods Hidden Dangers 1) A shocking thirty-three percent of American adults are obese and obeseRead MoreThe Importance Of Obesity757 Words   |  4 Pagessteady preferences, an d are consistent, rational actors (Thorgeirsson Kawachi, 2013). In the U.S. more than one in three adults have obesity, and it relates to the number of leading causes of preventable and premature death including cardiovascular disease, stroke, type 2 diabetes and particular types of cancer (Ogden, Carroll, Fryar, Flegal, 2015). While obesity results from a combination of causes and contributing factors, including genetics, built environment such as the availability of freshRead MoreApplying the Background and Methodology of the Research Process to Problems in Healthcare1402 Words   |  6 PagesApplying the Background and Methodology of the Research Process to Problems in Health Care Definition of the problem Obesity is one of the most serious health issues facing American schoolchildren today. Moreover, exactly how to deal with childhood obesity is a question that vexes parents, politicians, educators, and nutritionists. Students spend a significant part of their day in school and therefore consume a significant proportion of their caloric intake at school. In addition, the school lunch

Principals-Agents’ Conflict of Interest Free Essays

Principals (shareholders) – agent (managers) problem represents the conflict of interest between management and owners. For example, if shareholders cannot effectively monitor the managers’ behaviour, then managers may be tempted to use the firm’s assets for their own ends, all at the expenses of shareholders. Discuss the pros and cons of this statement with regard to duties of Board of Directors. We will write a custom essay sample on Principals-Agents’ Conflict of Interest or any similar topic only for you Order Now Most organisations these days are no more owned by their managers. This separation of ownership and management gives rise to what is called agency relationship. Jensen and Meckling (1976) define the agency relationship as â€Å"a contract under which one party (the principal) engages another party (agent) to perform the some services on their behalf. As part of this, the principal will delegate some decision making authority to the agent â€Å". However, it is important to mention that this relationship is not always peaceful and harmonious; rather, it usually raises some agency problems commonly called conflict of interests between shareholders and managers of the company. These conflicts occur when a person i. . the manager has an obligation not to act in his own personal interest but in another person’s interest i. e. the shareholders. This means that in whatever situation, managers must prioritise shareholders’ benefits. But is this commitment always respected in principals-agents relationships? Hopefully, between these two groups, is the board of directors; directors who are elected by shareholders to act as their representatives by monitoring and controlling managers tasks and ensuring they are in line with shareholders’ expectations. With clear evidence that conflicts of interest are almost unavoidable in any agency relationships, an attempt will be made will be made to get an insight into that issue with regards to board of directors duties. Brennan (1994) states that â€Å" agency problems emanate from the arrangement where the interests of the agents differ substantially from those of the principals because of the impossibility of perfectly contracting for every possible action of the agents whose decisions affect both his welfare and the welfare of the principal â€Å". Therefore, this raises the issue of finding ways to motivate managers to solely act in the best interest of shareholders. However, in a world where the labour market is becoming more and more imperfect and competitive, managers will be more concerned with their personal benefits at the expense of shareholders’ benefits. Since they are the one taking care of the day-to-day activities of the company, they know better than anyone any single details about how the various tasks are being performed and how that affects the company. Therefore, they might be tempted to take advantage of that by consuming some of the organisation’s resources in the form of lavish perquisites such as airplanes. Agency conflicts imply that shareholders wealth maximisation is being subordinated in managers’ goals for the company. Clear evidence of this assumption could be that top level managers are more worried about increasing their salaries, raising their status within the company, creating more opportunities for lower managers or assuring their job security and to achieve all this, their main objective could rather be to enlarge the firm by creating more subsidiaries. Such an action could produce results that do not necessarily maximise the value of the organisation for shareholders, rather, management welfare. We can notice that in conflict of interest, agents are mostly interested in achieving objectives that they feel will be profitable to them, but which are not necessarily or directly for the sake of shareholders. This occurs as a result of the distance created between the shareholders and the management team which prevent the former to effectively monitor and control managers’ behaviour. If agents do things that hurt principals, why don’t they take strong actions against that? In order to remedy to this situation, shareholders rely among others on the board of directors which they elect to look out for their interests and protect them for financial losses due to inadequate managerial actions. Bonazzi L. , Islam (2007) defines the function of the board as a â€Å" collective responsibility to determine the company’s purpose and â€Å"ethics†, to decide the direction, i. e. the strategy; to plan; to monitor and control managers and CEO activities, then to report and make recommendations to shareholders â€Å". To achieve this, they are expected to act in accordance with their four main duties which involve: the fiduciary duty, the duty of loyalty, the duty of confidentiality and the duty of care. In performing their fiduciary duties, directors assumes two roles, the first one as an â€Å"agent† which means acting on behalf of shareholders and the second one as a â€Å"trustee† which means they are in charge of controlling the organisation assets so they have to act â€Å" bona fide â€Å" which means in good faith towards the company; acting only within the scope of their powers and uniquely for the purpose that benefits the business and to avoid being involved in conflict between personal and the company’s interest. First and foremost, the board has as duty to govern the organisation by designing broad policies, and objectives which are intended to provide managers with guidance on how they are expected to run the business, i. e. prioritizing principals’ benefits, and, where they are expected to take the firm to in terms of increasing its value. They must continuously review the performance of the chief executive to ensure that managerial actions are in line with shareholders wishes and given that they are accountable to the former, they have to report to them about the overall organisational performance. Regarding their duty of loyalty, directors must prevent conflict of interest by avoiding transactions which may generate a potential conflict; those transactions according to Professor Bernard S. Black of Standford Law School in an article entitled The principal Fiduciary Duties of Boards of Directors are called â€Å" self-dealing â€Å" transactions. Representing at the same time the boss to one extend and the subordinate to another extend, directors must make sure never to act in ways that will harm either the shareholders or the executives, treat both parties with care and respect and try to make good decisions i. . that will compromise none of the parties, but which will be profitable to the firm. Also, board members have the duty to keep private all dealings, matters and information from the board meeting and the company in order to avoid the disclosure or misuse of information which may lead to a conflict. From the study of board members duties, we can state that companies’ corporate governance rests mostly on their shoulders. So, when effective, it permits the realisation of corporate objectives, risk management, the reduction of agency problems and an increase in the value of the firm. Despite the fact that conflict of interest is quite an obvious issue between shareholders and managers, it is important to keep in mind that the former are the owners of the business and thus, have great powers on the company; for instance through their voting rights at the annual shareholders meeting where they might decide â€Å"to vote with their feet† i. . selling their shares, exposing the organisation to a potential takeover that will lead managers to lose their job. Consequently, managers must at least try to satisfy their principals by aligning their actions and decisions with shareholders expectations; as well as must principals induce their agents to work for their best interest. To achieve this, they must incur some agency costs. In the 1976 Journal of Finance paper by Michael Jensen and William Meckling, it is stated that â€Å"there are three major types of agency costs: (1) expenditures to monitor managerial activities, such as audit costs; (2) expenditure to structure the organisation in a way that will limit undesirable managerial behaviour, such as appointing outside members to the board of directors or restructuring the company’s business units and management hierarchy; and (3) opportunity costs which are incurred when shareholder-imposed restrictions, such as requirements for shareholder votes on specific issues, limit the ability of managers to take actions that advance shareholder wealth†. In a nutshell, conflict of interest is a real fact in every business. Principal-agent relationship can be viewed as complex in terms of how exactly agents are expected to act towards their principals. Obviously, their acts must always be aimed at serving shareholders interest, but this statement seems to imply that either principals’ interests are always morally acceptable or managers might act unethically provided they fulfil shareholders’ expectations. Virtually, all corporate code of ethics addresses conflict of interest because it interferes with the ability of employees to act in the best interest of the firm. The fact is that, the agent is expected to act solely for the benefit of the principal in all matters and situations, yet, the kind of situation or dilemma the agent might be called upon to act in his principal interest are not easily predictable or identified. As optimal solution, it would be advantageous for both parties if they could work in concert prioritising the success of the organisation, and trying to satisfy as much as possible each group’s benefits, because it would help avoiding or at least reducing potential conflict of interest. How to cite Principals-Agents’ Conflict of Interest, Essay examples

The Rise of Big Business free essay sample

Today, the Big Business is one of the main features of the modern economic environment. Big Business refers mainly to corporations, huge economic entities operating for profit and distributing the ownership by the means of stocks. The Big Business started to grow in America after the Civil War, in the 1860s and already reached its peak of strengths by the roaring 1920s. Although Big Business faces much social and governmental control nowadays, its power is still enormous. Large business corporations provide most of economic output, employment places, financial investments, and production output. Politics is also very much influenced by the large corporations and is often forced into pursuing businesses strategic interests. Even average citizens get much of Big Business influence through employment, and corporations PR campaigns, marketing strategies, and other public policies. David Korten, in his book When Corporations Rule The World, points out that often corporations have more power than a state. Korten argues that, Corporations have emerged as the dominant governance institutions on the planet, with the largest among them reaching into virtually every country of the world and exceeding ost governments in size and power. Increasingly, it is the corporate interest more than the human interest that defines the policy agendas of states and international bodies . The impact of the corporations on the society is so great that the economic analytics have even labeled the modern political and economic system as corporate capitalism. Thus, the contemporary economic environment can be without much doubt considered the world of Big Business. Most explanations of the reasons for the rapid growth of business outline three main factors. First, it is the shift from water-powered to coal-powered factories, which nabled manufacturers to locate their plants nearer to markets and suppliers. The new technology also allowed producing bigger quantities of goods at a lower price, while the quality has also risen significantly. Second, the transportation improvements allowed firms to distribute their products to regional or national markets. A great role here was played by the development of railroad. Instead of only being able to ship goods to a local and regional market, railroads now made it possible for companies to ship and sell their goods outside traditional local markets. But even though the railroad now made it possible for the companies to sell their products to other regions, they had now to find a way of paying for shipping and still being able to reach Break-even point and compete with other regional companies. Third reason is the development of new financial institutions, such as the stock market, commercial banks, and investment houses, which increased the availability of investment capital. Although these factors create an impression that the rise of Big Business was a rather orderly process, this was actually not the way it happened. The rise of Big Business came largely as a response to the hostility of business environment, where the challenges of competition were compounded by frequent economic contractions or panics, and other features of economic instability. The most violent contractions happened in the periods of 1873-1878 and 1893-1897. During The rapid corporate growth in America started in the end of 1860s, after the end of Civil War. The first period of Big Business rise, also known as corporate revolution or great merger movement, coincided with important changes in the American society. These were the end of Civil War, abolishment of slavery and several other political reforms, resolution of social tension between the North and the South, and economic recovery of the South, known as Reconstruction. Unlike the Civil war and Revolution, Rise of Big Business took place without violent political transformation because the preceding historical events already established all the political prerequisites for a peaceful economic change. The expert of politics and economics, Martin Sklar, mentions in one of his works that Unlike the great sociopolitical crisis of the 1850s nd 1860s, which was resolved by a national reconstruction that required a civil war and revolution, the corporate reconstruction required neither civil war nor revolution, but rather political reorganization and reform. Most explanations of the reasons for the rapid growth of business outline three main factors. First, it is the shift from water-powered to coal-powered factories, which enabled manufacturers to locate their plants nearer to markets and suppliers. The new technology also allowed producing bigger quantities of goods at a lower price, while the quality has also risen significantly. Second, the transportation improvements allowed firms to distribute their products to regional or national markets. A great role here was played by the development of railroad. Instead of only being able to ship goods to a local and regional market, railroads now made it possible for companies to ship and sell their goods outside traditional local markets. But even though the railroad now made it possible for the companies to sell their products to other regions, they had now to find a way of paying for shipping and still being able to reach Break-even point and compete with other regional companies. Third reason is the development of new financial institutions, such as the stock market, commercial banks, and investment houses, which increased the availability of investment capital. Although these factors create an impression that the rise of Big Business was a rather orderly process, this was actually not the way it happened. The rise of Big Business came largely as a response to the hostility of business environment, where the challenges of competition were compounded by frequent economic contractions or panics, and other features of economic instability. The most violent contractions happened in the eriods of 1873-1878 and 1893-1897. During one of such panics in the mid-1870s, 47,000 businesses went bankrupt. Thus, the end of the nineteenth century was marked by the rapid merger movement, when many local businesses were Joined together to create large corporations. As a result, a small number of very large companies, which quickly eclipsed their business rivals, emerged in specific sectors. This trend became most apparent in the United States but it also appeared important most developed countries of Europe. Some of the newborn corporate giants were United States Steel, AT T, American Tobacco, Pennsylvania Railroad New York Life insurance company, and several others. Most of the mergers took place in the American economy after 1897, when many large corporations in manufacturing, steel and railroads were created. The businesses grew as a result not of production and distribution), but also of horizontal integration (when companies expand into related fields of business). Both types of integration contributed to the emergence of polls, holding companies, cartels, and trusts. As a response to recurring business crises, strong competition, and declining profits, some businessmen made an attempt to create financial stability by formation of ools or cartels. These were agreements among competitors to divide markets, fix production quotas, and agree on certain price levels. However, pools rarely survived an economic contraction and were too weak to solve the problem of competition because they were voluntary agreements. An alternative to the pools were the trusts. Under trusts, owners of rival firms assigned their stock to a single board of trustees in return for interest-bearing but non-voting certificates. The trustees then fixed prices and marketing policies for all the companies. The famous Rockefellers Standard Oil Company was the first trust, which was followed by trusts created in such industries as manufacturing, machinery, mining, alcohol distilling, and sugar refining. The negative side of the trusts was that they restrained trade and violated corporate charters of the competing firms. That is why trusts faced intense legal resistance and were banned by the Sherman Anti-Trust Act in 1890. Then, trusts were replaced by a new the holding companies, a company with the power to purchase other companies. Holding company was legal according to the law. Probably, the most famous holding company was General Motors, after it purchased number of smaller automobile manufacturing companies. The new large corporations had a lot of strengths when compared to the small local businesses, which dominated the American Economy until the 1860s. Jeremy Attack mentions that During the Civil War, the need for manufactured goods of all kinds provided manufacturers with a more autonomous existence. Factories that were built early in the 19th century were frequently small, local monopolies which did not attract much competition because of the general backwardness of transportation . These businesses were not directly competing with each other and were still mploying skill craft workers to manufacture products. The great mass of American proprietors were, at any rate, the owner-managers of very small firms. On the average, each proprietor hired seven workers . Because of their dependence on local skilled workforce and customers, these companies did not produce a large volume of goods and oriented themselves on the amount that was needed and demanded currently at the market. So, first of all, local businesses of the middle nineteenth century had a small customer base, which made them very sensitive to the competition and changes in customers preferences. Another weakness, small inventory base, was both the consequence and the reason of the limited production. The small businesses, being locally owned and managed, had also small availability of investment and financial resources. The business owners usually borrowed from a local bank to start the company and then typically operated on profits without taking credits. The profits were typically spent at the local communities. All in all, these businesses were isolated within their local markets. Operating in the conditions of prices. Often businesses had to set high prices in order to break even, as the perating and manufacturing costs were also very high because of little quantities of goods produced. While the local businesses had very tight profit margins and could not afford to operate at a loss for very long. High operating costs, limited access to investment funds, and small size markets, allowed few opportunities for strategic maneuvers, and almost no flexibility. That is why the local businesses could not compete with corporate giants and often went bankrupt or let themselves be bought out by the rivals. In contrast to the local businesses, large trans-regional corporations had a huge ustomer base, which allowed them to shift from one group of customers to another and vary their marketing strategy; this also secured the companies from the loss caused by change in attitudes and preferences of a particular fraction of customers. Those businesses, which have grown into large corporations experienced significant expansion of the markets. As mentioned, before the corporate revolution, most businesses operated in a single town from a single office or factory, while the sales were made predominately to customers in the immediate area. But the new orporate enterprises carried out their functions in widely scattered locations. For example, as early as 1900, General Electric had plants in 23 cities. A great role here was played by the development of railroad, which contributed much to the expansion of the markets. After the railroads linked all the parts of the country together, the companies were able to ship goods not only to local and regional market, but it was now possible to ship and sell the goods outside traditional local markets. According to historian Albro Martin , the impact of railroads was threefold. First, the railroad ndustry reduced the real cost of transportation to a fraction of what it had been. Second, it brought all sections of the country into the national economy, making regional specialization on a grand scale possible. Third, it gave birth to a host of other industries for which it became an indispensable input or from which it derived the huge quantities of materials and equipment called for by railroad investment. The invention and advance of communication systems, such as telegraph and telephone made it possible to coordinate the work of businesses in the descent markets, allowing better interregional management. In fact, companies providing communication have also grown into large corporations operating on the continent wide markets. For example, this happened with American Telephone Telegraph (ATT). In the expanded markets, the big cities, which have developed into giant metropolises, became the main arena for corporate activity. The industry, finance, and administration was centered in metropolises, much due to the fact that corporations attempted, first of all, to expand to the cities and establish there their economic strategic base, and then, to reach from there the regional markets. This idea is pointed out by David R. Meyer, explanation is proposed based on role of metropolises as controllers and coordinators of exchange. Manufacturing concentrated increasingly in metropolises because they dominated regional markets. Metropolises specialized in some national market industries, but their industrial growth based on these industries simply kept pace with national growth . Jeremy big cities. The historian proposes that this trend was closely connected to the advance of water transportation system and creation of canals: Canals had radically eshaped trade flows in America, intercepting freight in far-distant hinterlands and diverting it to the port cities which they served. As a result, these cities grew at the expense of those that lacked such connections. In the competition for trade, more than city prestige was at stake . Though the railroad and communication systems now made it possible for the companies to sell their products to other regions, they had now to face a challenge of paying for shipping, and after that, still being able to at least reach break even point. The companies found the solution of the problem in the large scale production, hich allowed large producers to reduce the cost per unit. This approach received the name of economies of scale. The companies tried to reduce the cost of production by saving where possible on inputs and by maximizing the quantity of output. Thus the ratio of fixed costs to the profits declined, which helped big corporations to survive. The big corporations, unlike small local businesses, were able to purchase the new efficient equipment and start the mass production. Another factor allowing the mass production for Big Business was the expansion of markets, discussed previously. Now corporations oriented on the cost effectiveness and production capacity rather than on current demand on a particular regional market. The small local businesses, being unable to sink costs due to the economies of scale, had almost no chance to fght in the price war with nationwide corporate giants, who were enabled to charge lower prices by the profits received from the volume of sales. Besides the savings in manufacturing, for the Big Business, it was also cheaper to transport and store the products because very often companies got discounts based on sheer size of the order. For the Big Business, it was also much easier to access the investment funds and raise capital; because of its size it could borrow money at cheaper interest rates. Furthermore, large companies had the supplemental source of investment: going public and selling the shares. Besides the economies of scale and cost effectiveness, corporations profited from their reputation and well known on the different markets brands. Lastly, corporations often used their economic power to receive government subsidies and special tax breaks. After the rise of corporations, the whole American economy was dramatically transformed. After years of instability following the Civil War marked by high unemployment and large numbers of business failures, business began to consolidate into progressively larger economic units. The economy received a push towards further development, and the level and the quality of life increased significantly. However, there was much criticism concerning the way corporations conduct business, and the way they may misuse power. Generally, the debate regarded three questions: whether wealth come from exploitation or from patience, frugality, and virtue; whether bigness was the result of conspiracy or of pressures of lind economic forces; whether men of wealth and power be free to use their riches as they wishes or whether they should be taxed to support the public good. While business titans made all Americans better off through their innovations in management, finance, and production. Ideally, corporate capitalism is considered merely a positive outcome of historic development of mankind. For instance, Colin Koopman argues that corporations are a rather progressive form of property ownership: in corporate capitalism owners control capital only through the means of socially-developed processes. Ownership thus does not directly translate to control Corporations embrace the tensions between our social and individual lives that individual property systems and socialist property systems both neglect . Koopman follows with the view that in future corporations can become the securing power of democracy. According to Koopman, this concept is the source of their (corporations) democratic viability. It is obvious that corporations and governments are the two dominant centers of power in our world today. Corporations, I suggest, can become exemplars for ethical practices of democracy and capitalism . Other critics argue onsider the lords of industry monopolists and robber barons, who monopolized blocked the road to success for those who tried to compete with them. Anyway the rise of Big Business has brought both good and bad effects on the American society. The thing one can be sure of is that they played a dramatic role in the historic development of the country by bringing economic acceleration, technological and ideological innovation, and new understanding of business. Basically, corporate capitalism can work for the good of the nation, given that the economic freedom, governmental control, and public involvement are balanced.