Louis Armstrong Essay Example

Louis Armstrong Paper Ryan Au Duong Angulo ELA Honors 24, April 2012 Life of the King of Jazz â€Å"My whole musical success goes back to the time I was arrested†¦Ã¢â‚¬ (Old 28). Louis Armstrong started off as a normal kid who lived in a poor family and environment, but ended up as one of the most influential entertainers in history all because of one mistake he made as a child, which changed his life. Louis Armstrong’s life was filled with events that built his musical skills, fame, and his well-being even though he did not start off very well. The environment he lived in as a child was not well suited and he had family problems.He was arrested as a child and was sent to the Home for Colored Waifs which made an enormous impact on his life (â€Å"Louis Armstrong†). His fame and musical skills began to grow when he joined the Creole Jazz Band in his adulthood. He made recordings of his songs, which some of them became big hits, to expand his fame even more. Louis Armstrong’s chi ldhood was difficult, but made him what he was later in life. Louis was born on August 4, 1901 in New Orleans, Louisiana (â€Å"Louis Armstrong†). New Orleans was a poor city (Old 17). His father was Louis Daniel Armstrong and his mother was Mayann Armstrong.Louis also had a brother, William Armstrong, and a sister, Beatrice Armstrong (â€Å"Armstrong, Louis†). His father abandoned the family when Louis was just an infant (â€Å"Louis Armstrong†). His mother had to turn to prostitution often to make money so she can support the family (â€Å"Louis Armstrong Biography†). The environment Louis had lived in had hookers, gangs, children playing on the streets, and musicians. He was surrounded by music when he was young (Old 16). He began to work for the Karnofsky family when he was seven years old (â€Å"Armstrong, Louis†).He also attended the Fisk School for Boys as a child. At the age of eleven on New Year’s Eve, Louis fired a gun which got hi m arrested (â€Å"Louis Armstrong Biography†). Who would have guessed that his arrest was the start of Louis Armstrong’s famous career? Louis was put in the Home for Colored Waifs where he fell in love with music and learned how to play a cornet from his music teacher, Peter Davis (â€Å"Louis Armstrong†). As an adult Louis Armstrong’s life and fame improved dramatically. Armstrong cherished his memories from the Home for Colored Waifs (Old 27).He married Daisy parker from Gretna, Louisiana, but got divorced after a few years (â€Å"Louis Armstrong†). He spent the rest of his life taking care of a mentally disabled child named Clarence, whose mother had died during child birth and whom Armstrong had adopted (â€Å"Louis Armstrong Biography†). In 1922, Joe Oliver invited Armstrong to the Creole Jazz band where Armstrong married the pianist Lil Hardin (â€Å"Armstrong, Louis† The). Oliver’s band was the most popular band in Chica go (â€Å"Louis Armstrong†). Joe Oliver became Louis Armstrong’s mentor and gave him his first real cornet (â€Å"Louis Armstrong†).Armstrong eventually switched to the trumpet though and featured in extended trumpet solos in their performances (â€Å"Louis Armstrong†). After 2 years, Armstrong left the Creole Jazz Band to join Fletcher Henderson’s band in 1924 (â€Å"Armstrong, Louis† The). Armstrong’s time with Fletcher Henderson’s band really expanded his music beyond traditional New Orleans style (â€Å"Armstrong, Louis†). Louis Armstrong played in Henderson’s band and on many recordings (â€Å"Louis Armstrong†). He also became the ambassador for jazz (â€Å"Armstrong, Louis†). Eventually, Armstrong started his own band called the â€Å"Hot Five† for recording purposes only (â€Å"Louis Armstrong†). Heebie Jeebies† was their first recording of scat singing (Louis Armstrong and his Hot Five†). Louis Armstrong recorded his last hit â€Å"What a Wonderful World† before he died of a heart attack in July 6, 1971 (â€Å"Louis Armstrong†). Among Louis Armstrong’s greatest contributions are his skills with the trumpet and cornet, and his idea for improvisation which changed the world of jazz. He made some great accomplishments in his life like joining Fletcher Henderson’s band, becoming the ambassador for jazz, starting the â€Å"Hot Five Band† and making recordings of his songs.The Creole Jazz Band really helped Armstrong’s fame grow because more people were able to listen to how he played on the cornet and trumpet. His greatest accomplishments were when he changed the course of jazz with the idea of improvisation and he was awarded the Grammy Lifetime Achievement Award. Louis Armstrong was very much appreciated by society in his days. People recognized him as the world’s greatest trumpet and cornet player in the early 1920’s and 1930’s (Armstrong, Louis† The). Louis Armstrong was one of the most famous and influential performers in the history of jazz (Armstrong, Louis† The).He was even awarded the Grammy Lifetime Achievement Award for his genius idea of improvisation (â€Å"Armstrong, Louis† The). Louis Armstrong is remembered because of his skills with the trumpet and cornet, and for his great idea of improvisation which changed the world of jazz. His accomplishments revolutionized the world of jazz and how people thought about jazz. He will always be remembered as the king of jazz. Getting arrested was the best mistake Louis Armstrong has ever made in his lifetime.

Role of China and India in Asia Essay Example

Role of China and India in Asia Essay Example Role of China and India in Asia Essay Role of China and India in Asia Essay Throughout history there have been many nations who have had great influence on modern society, although none have been as impactful as China and India. From ancient to contemporary times the effect the two nations have over not only Asia but the entire world is acutely impressive by historical standards. In this essay the spread of language, religion, and economic growth created by China and India throughout history will be discussed along with the long-term effect of such development.The Spread of Language According to Backlund and Ivy (2008), A language is a system of symbols (words or vocabulary) governed by rules (grammar) and patterns (syntax) common to a community of people (p. 144). The usage of language in order to communicate began millions of years ago and evolved alongside the early hominids. China and India, two of the world’s oldest and most prosperous nations have had tremendous effects on neighboring countries for millions of years, which include the use of both verbal and written language.The 1961 Census revealed that 1,652 languages are used in India alone, with 18 of them being considered major languages of the world. The official language of the government and well-educated individuals is Hindi, although the numerous State Governments within India are free to select any of the many Indian languages as their official language. Sanskrit, the original and sacred language of India has greatly affected South Asia, specifically the Arabic language, which is essentially a derivative of Sanskrit.Mandarin Chinese, the official and most prevalent language of China, has over 873 million fluent speakers as of 2005. However, the effect China’s language has had on its neighboring countries throughout history has been even more remarkable than the sheer number of speakers the language houses. In 111 BCE the Han Empire held control over Vietnam for close to a millennium, greatly impacting the Vietnamese language and writing style. Furthermore, Korea also became affected by the Chinese language when taken over by Chinese leaders during the first century BCE.In addition Chinese Buddhism and Confucianism aided in the spread of written Chinese across East Asia, which also prompted the modification of central governments in Japan, Vietnam, and Korea. Written Chinese thus became the language of politicians and scholars, uniting the nations by means of transcribed communication. The Spread of Religious Systems The Religions Of India (2003) website states that a number of world religions originated in India, and others that started elsewhere found fertile ground for growth there (para. 5).The most prevalent religions of India include Buddhism, Hinduism, and Jainism. As of 2011 there are an estimated 750 million followers of Hinduism, 350 million Buddhist, and 4. 2 million Jainism followers worldwide (para. 9). The spread of Buddhism, a branch of Hinduism, has spread and affected much of East Asia, including China. Indeed, Buddhism is the dominant religion of China, winning in popularity over Chinese born religions Confucianism and Taoism. It was in China, however, that Buddhism gained popularity and spread worldwide.Taoism, a religious philosophy formed by Tao-Te Ching, gained reputation and followers in the island nation of Japan more so than in China. However, it was during the same time period that Tao-Te Ching shaped Taoism that the more popular and politically excepted religion of Confucianism, created by Chinese philosopher Confucius, made way in China. The teachings and principles of Confucianism were quickly adopted by other Asian countries such as Japan, Korea, and Vietnam. The Effect of India and China on the Global Economy and Regional EconomicsSince the beginning of India and China’s history the two countries have had a large impact on the surrounding countries through import and export. Ancient Chinese history reveals historical national focus on industry, trade and commerce, and agriculture as key economic activities; requirements for a prosperous economy to flourish. Furthermore, the Silk Route (beginning in China) stretched 4,000 miles across Asia in order to trade resources with not only other Asian nations, but Europe as well. As of today China is the world’s second largest economy.Furthermore, China’s political history has aided in shaping modern Asia in several ways. Confucianism, for example, has played a large role in much of Asia’s political as well as social systems. Also, the Ch’in Dynasty began and formed the first functioning empire-a political system used in many parts of early Asia, but it wasn’t until the T’ang Dynasty that a more modern shape took place in Chinese politics when government officials were selected to aid the emperor in ruling the Chinese Empire.Lastly, the Chinese military system has greatly influenced the workings of other Asian nation’s military structure. India was the first Asian nation to fully adopt democracy (and is the world’s largest), with its neighbors trailing behind by forming similar political systems, such as Japan, which is a parliamentary representative democratic monarchy. Additionally, India became one of the original members of the United Nations and has continued to be active in UN debates.Economically the Spice Trade was the first trade route that connected imports and exports from Europe to Southern Asia. Moreover, India has continued to be a chief participant in global trade, and has excelled in their scientific accomplishments. States Jayati Ghosh, a professor of economics at Jawaharlal Nehru University, Indias growth [in the global market] is strongly related to internal and external liberalization measures that generated booms in some domestic economic activities (Ghosh, 2012).While the world has seen much change over the course of human history the impact of India and China has been tremendous in regards to many of Asia’s political systems, religions, and languages both verbal and written. Furthermore, the world has been affected by China and India’s booming economies of imports and exports, causing the indication of a new world power to become virtually eminent. Through further globalization as well as liberalization these two power-houses have nowhere to go but up in the economic hemisphere.

Project2 (Global Issues in Business and Economics ) Essay

Project2 (Global Issues in Business and Economics ) - Essay Example The company designs its operation in such a way that it provides great support to its pricing strategy. Actually it is found that in case of easyCar operation strategy and designing of processes are aligned with business strategy of the company. Its prime business strategy is to attract customer by offering low price and in order to support this strategy it designs its operation accordingly. For example, it is found that while in cases traditional car rental companies prime locations are situated within the airport complex of all major airports, the secondary and the nearby prime locations of easyCar are situated near train or bus stations where economic travelers are frequently found and where rent are used to be quite low. Not only that, easyCar also does not choose its location within airport complex, given its high cost nature, instead it selects nearby areas of airport for its location and thus can offer lower price compared to traditional car rental companies. ( Cateora and Gra ham, 2007; Saraswat, Nahar, and Karki, 2009) Unlike other traditional companies who focus on building larger and beautifully decorated facilities, often allowing customers to drive unlimited miles, and arranging a wide rage of cars within the fleet, easyCar generally build small and simple facilities in order to keep its cost at a low level. Not only that, it also provides one type of car per site as a result of which maintenance becomes much easier and customer service staff find it much easier to achieve very high rate of utilization as each car can be substituted for the other. easyCar also does not allow unlimited driving which play a major role in keeping costs at low level. ( Cateora and Graham, 2007; Saraswat, Nahar, and Karki, 2009) Customers use to have a very high involvement in the process in case of easyCar in the sense that before returning the car customers are asked to do a certain jobs like making a print out of the service contract bringing this to the company by th eir own, re-fill the car and cleaning it in order to bring it to ready-to-rent condition. All these lower the costs of easyCar. Not only that during the entire booking process this company extensively substitute people by technology in order to reduce labor costs. ( Cateora and Graham, 2007; Saraswat, Nahar, and Karki, 2009) The product/service in the global competitive market: The car rental industry has become very much attractive to the residents and businesses of Europe and America. Although, in less developed economies of Asia and Africa, the product or service has still not achieved a very prominent place in the transportation field, it has potential to become popular in these nation as well in near future for a number of factors. More and more market players will start to operate on a global platform. Actually, this industry offers the buyers of its products a sustainable and reasonably priced access to road transportation. Apart from this, this car rental industry also provi des an opportunity of having an early access to the trials of large varieties of low-carbon means of transport. Not only the residents and business houses, but also the tourists are increasingly becoming dependent on the car rental industry of Europe for their entire traveling schedule. easyCar is a viable competitor to taxis, buses and trains. The major reason that has made a tough competitor to buses, taxis and trains is its operational

Unit 3 discussion legal and Ethics Research Paper

Unit 3 discussion legal and Ethics - Research Paper Example They give directives on how to interact and gain confidence of culturally diverse clients and this is through becoming culturally sensitive about their culture. I will first of all conduct culture-centred research in order to understand the culture of the group from their linguistic to their cultural background in order to be culturally compliant (Lee, 2006). The case is of Cynthia who wants to go back to school and start her own career but her husband threatens to divorce her if she does so. The main dilemma is on whether to follow her dreams and go against her husband’s wishes and the culture of just continue feeling depressed and take care of her family (Corey, Corey and Callanan, 2010). Going against her husband will cause her to lose him but will have her happiness and obeying him will lead to more depression to an extent of not even being able to take care of her family. The family is important in this culture and so is obeying the husband because he is the head of the family. The best way to handle this is to make Cynthia be aware of the pros and cons in either of the decision and whether she is ready to handle the cons of her decision. Make her decide what will bring her utmost happiness while at the same time taking care of her children effectively without having to compromise much with the culture. This is walking her th rough her problems without making any decisions for her but letting her decide for herself

Continued Professional Development Essay Example | Topics and Well Written Essays - 250 words - 1

Continued Professional Development - Essay Example On the other hand, PhD is designed to assist nurses to be tangled in research aimed at discovering new knowledge. DNP deals with courses such as evidence based practice and applied statistics, financial management, budget planning, health system transformation whereas on the PhD side courses such as philosophy of science, qualitative research methods chronic illness and care systems For a DNP, one can get health care administration in clinical nurse faculty and preparing nurses in management and health information technology to improve the care given. On the other hand, a PhD holder can work as a nurse scientist in the nursing faculty and carry out research to tackle issues that are arising in nursing discipline. Another difference between the two is the amount of time taken to complete each. A DNP course takes around 5 semesters to finish after a master’s degree whereas a PhD takes around 4-5 years depending on the learning mode of the university. From my point of view I would prefer to take a doctorate of nursing practice (DNP) because of its broad spectrum of finding good jobs and also my passion of helping the patients recover fast (

Effect of Macroeconomic on Stock Return

Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision. Effect of Macroeconomic on Stock Return Effect of Macroeconomic on Stock Return This research paper is conducted to measure and analyze the effect of macroeconomic on stock return of industrial product sector as compared to performance of Kuala Lumpur Composite Index. Several variables will be used to identify the relationship between the dependant variable which are three pre-specified macroeconomic variables the term structure of recession, interest rate, exchange rate and stock price movement that might give impact to the independent variable which is listed stock of industrial product sectors components in Kuala Lumpur Composite Index. Holding Period Return method will be used to measure the impact dependent variables to independent variable in this research. Secondary data will be used for this research paper, which are about 50 companies in industrial product sectors components that listed in Kuala Lumpur Composite Index; will be acknowledged as the sample for the previous year period from 2005 until 2009 to measure the performance of the sector in economi c condition during the period. It is expected that during the period, the industrial sectors performance that listed in Bursa Malaysia maybe will be affected by the economic condition during the period which will give impact on their stock return. CHAPTER 1 INTRODUCTION 1.0 INTRODUCTION Macroeconomic and stock prices are difficult to predict most of the times. These changes it appears that reflect the shifting demand for that stock or changing facts that it because of expectations of a companys profitability or some of government policy that effect on stock. Therefore, investors speculate how stock are determined most of them will look for to inexpensive share or expensive share with low price earning. Shares in most large established corporations are listed on organized exchanges like the Bursa Malaysia or Shanghai Stock Exchange. Every time a stock is sold, the exchange records the price at which it changes hands. If, a few seconds or minutes later, another trade takes place, the price at which that trade is made becomes the new market price, and so on. Organized exchanges like the Bursa Malaysia will occasionally suspend trading in a stock if the price is excessively volatile and also must legalize trade according their regulation, if there is a severe difference between supply and demand or if they suspect that insiders are intentionally manipulating a stocks price. But in ordinary circumstances, nobody is on purpose to control price. The market price of a stock is basically the price at which a keen buyer and seller agree to trade. Price is volatile when the enormous volumes of stock traders are made awake of professional traders who buy and sell shares each and every one day long. Since these traders do not grab stocks over the long pull, they are not terribly interested in such long-term considerations as a companys profitability or the value of its assets. Or rather, they are interested in such factors mostly trusty as news that would affect a companys long-term prospects might cause other traders to buy the stock, causing its price to raise. If traders believe that others will buy shares, then he/she will buy as well, hoping to sell when the price rises. If others believe the same thing, then the wave of buying pressure will, in fact, cause the price to rise. This trend will continue forever. When we look back to the famous economist John Maynard Keynes which has revealed the economic principle had compared the stock market to a competition then popular in British tabloids, in which rival had to look at photos and choose the faces that other contestants would choose as the prettiest. Each contestant had to look for photos â€Å"likeliest to catch the imagination of the other competitors, all of whom be looking at the difficulty from the same point of observation. similarly, stock traders try to speculation which stocks other traders will buy. The successful trader is the one who anticipates and outfoxes the market, buying prior to a stocks price rises and selling before it falls. 1.0.1 Screening criteria of KLCI Investor can only invest in stocks through a stock exchange, an organized marketplace where stocks are bought and sold under strict rules, regulations and guidelines. KLCI has over 30 listed companies offering a wide range of investment choices to local and global investors. Companies are either listed on Bursa Malaysia Securities Main Market or ACE Market. The Stock Market was created by companies wishing to raise capital for their business. When someone says they have a listed company they indicate listed on Bursa Malaysia. All companies need cash to take advantage of growth opportunities. Many start-up companies however find themselves short of capital to fund expansion. One way to acquire this cash is to publicly float the company. This involves selling part of the company to private individual and institutional investors who are then able to freely exchange these stocks on an open market Most huge matter regarding to the criterias are, high market capitalization on stock itself, it reflects how much share have been issues and its price per share. Blue chip company is resistance to weak market and it has permanently growth for example nestle it has stable growth in term of profit and cash flow. 1.0.2 History of stock Market The Kuala Lumpur Stock Exchange which was incorporated on December 14, 1976 as a company limited by guarantee took over the operations of KLSEB in the same year. The Kuala Lumpur Stock Exchange Berhad was demutualized pursuant to the Demutualization Act and converted into a public company limited by shares on January 5, 2007. Upon the conversion, the organization vested and transferred the securities exchange business to a new wholly-owned subsidiary, Bursa Securities, and became an exchange holding company and were renamed Bursa Malaysia Berhad on April 14, 2007. On 18 March 2005, Bursa Malaysia made its first appearance on the Main Board of Bursa Malaysia Securities Berhad. On 6 July 2009, the Composite Index has been replaced by FTSE Bursa Malaysia KLCI index which reflect the top 30 companies in the exchange. On 4 August 2009, the exchange has combined the main board and the second board into a single market which is called the Main Market. Mesdaq is also renamed into ACE market which provides lower listing requirements. 1.1 BACKGROUND OF STUDY Every time a share in, say, nestle is traded for example, the new price is used to revalue all outstanding shares-just as the value of your home appreciates when the house down the block sells for more than a similar house sold last week. But the value of your home wouldnt be so high if every house on your block were suddenly put up for sale. Similarly, if all ten billion outstanding shares even a small fraction of them-were put up for sale, they wouldnt fetch anywhere near the current market price. (Pirie and Smith, 2003) have say that relationships between accounting information, book values and share prices have significant implications for share prices in Singapore. Foreign exchange rate and interest rate risks are important financial and economic factors affecting the value of common stocks. Research by (King and Wadhwani, 1990) found that the volatility transfer hypothesis suggests that random shocks can induce higher volatility in financial markets and because of contagion effects which are highest in more volatile markets, investors may look abroad to invest in alternative financial assets. This study was aimed to point out whether the stock price behaviors and macroeconomic variables such as foreign exchange rate and interest rate is reflected in listed company stock return in the KLCI or not. Because one of them is accounting factor and other are economic factor. 1.2 PROBLEM STATEMENT The problem studied in this research is about the movement of the stock market and selected individual stock prices for investors usage. Caution should also be exercised in interpreting their results as the period of study includes the 2008 financial crises. It is possible that the severity of the crisis has influenced the statistical results. These papers empirically compares and see the share price of the companies before, during and after the recession and it covers only two macroeconomic factor that have give some effect to the stock return. During this period we will see the flow of the price movement in the market by using fifthly (50) listed company in property sector. Previous studies on stock market by Deshmukh et al (1983) banks can affect their exposure to interest rate and foreign exchange rate changes when they act as financial intermediaries for their clients. As such, their role as financial intermediaries can affect the sensitivity of investor assets and liabilities to interest rate and foreign exchange rate changes 1.3 RESEARCH QUESTION This research is conducted to inquire: 1.3.1 If there any changes of stock return on listed KLCI industrial company effect of macroeconomic? 1.3.2 If there any changes of stock return on listed KLCI industrial company effect of volatile market share price? 1.3.3 Which investment could offer better stock return to investor if using Holding Period Return? 1.4 RESEARCH OBJECTIVES This research is conducted to determine: 1.4.1 Macroeconomic factor have give impact to the stock return. 1.4.2 Changes of share price have give impact to the stock return. 1.4.3 The investment that could offer better performance using Holding Period Return. 1.5 SIGNIFICANCE OF STUDY This research is an observed study upon the macroeconomic factors and changes of stock price that give impact to the stock return of industrial product listed in KLCI. The study is significance for researcher, government and investors. Researchers can be benefit from this study by the information and acknowledge they from the previous to the current and future trend of movement either macroeconomic factors and changes of stock price that give impact to the stock return. As for the government, they can assist in organizing and stabilizing the economy to make the market will always gain some profit to the investors in attract more investment to come to Malaysia. Investors will gain benefit by knowing the current condition of Malaysia stock market as well as the shares before they can invest their pool of money in Malaysia especially in the industrial company. 1.6 SCOPE OF STUDY Macroeconomic and share price is the environment in which all firms operate. The ability to forecast the macroeconomic and share price can translate into spectacular investment performance. Some of the key economic variables are inflation, interest rate and exchange rate. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time. During recessions, many macroeconomic indicators vary in a similar way. Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise. Recessions are generally believed to be caused by a widespread drop in spending. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation. High interest rates reduce the present value of future cash flow, thereby reducing the attractiveness of investment opportunities. For these reason, real interest rate are the key determinants of business investment expenditures because sensitive to interest rate affect to interest payment. The foreign exchange market or currency market or Forex is the market where one currency is traded for another. It is one of the largest markets in the world. Some of the participants in this market are simply seeking to exchange a foreign currency for their own, like multinational corporations which must pay wages and other expenses in different nations than they sell products in. However, a large part of the market is made up of currency traders, who speculate on movements in exchange rates, much like others would speculate on movements of stock prices. Currency traders try to take advantage of even small fluctuations in exchange rates. In the foreign exchange market there is little or no inside information. Exchange rate fluctuations are usually caused by actual monetary flows as well as anticipations on global macroeconomic conditions. Significant news is released publicly so, at least in theory, everyone in the world receives the same news at the same time. This study takes place in the subsistence of macroeconomic and changes of stock price in Malaysia as its field is the one to be explored. Moreover 50 listed companies were acknowledged as the sample for the previous five year period. The data of this research will be obtained from DataStream. 1.7 LIMITATION OF STUDY There are several drawbacks in pursuing this research. It includes: 1.7.1 Scope of study The research reference is restricted in the scope of Malaysia due to the field of study. As we know, Malaysia is an emerging country, thus the performance is still not matured compared with the developed countries, like the United States. 1.7.2 Period of the study This study is conducted by using the data from 2005 to 2009. Approximately 50 form 100 companies that listed in Bursa Malaysia, but not all the companies data was provided in that certain period. This constraint is affecting the calculation of portfolio performance. The length of the study also affected this study indirectly. This study used to use five years period of time. The result for five years study would be different if this study managed to use the longer period of time. 1.7.3 Secondary data In this study, we used the secondary data gathered from DataStream, Bursa Malaysia and the other articles references. Some of the data were not up to date to be the good references. For example, when we referred to Bursa Malaysia, some of the data is not currently in use and in DataStream; the problem was some of the data was not available (N/A). It became a limitation to the study because we cannot get the accurate result. 1.8 DEFINITION OF TERMS 1.8.1 KLCI Kuala Lumpur Composite Index or Bursa Malaysia is place where all sector company list their stock to get capital gain from investor that buy their stock. 1.9 SUMMARY There are many reason why this research been conduct but to know the real effect to the stock return many variable been use to meet the objective. For example interest rate, exchange rate, recession and stock price movement is the variables that have effect to the company or investor stock return. CHAPTER 2 LITERATURE REVIEW 2.0 INTRODUCTION Macroeconomics is a branch of economics that deals with the performance, structure, behavior and decision-making of the entire economy, be that a national, regional, or the global economy. Along with microeconomics, macroeconomics is one of the two most general fields in economics. Researcher study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance. In contrast, microeconomics is primarily focused on the actions of individual agents, such as firms and consumers, and how their behavior determines prices and quantities in specific markets. 2.1 GENERAL LITERATURE REVIEW 2.1.1 MACROECONOMICS The effect of macroeconomic fundamentals on stock market volatility has generated a lot of interest. Research by Liljeblom and Stenius (1997) find that it is argued that if the value of corporate equity on the whole depends on the health of the economy, then uncertainty in macroeconomic conditions would affect volatility in stock returns assuming consistent discount rates. Studies have also shown that stock market volatility is driven by uncertainty in macroeconomic fundamentals Fama (1981, 1990), Fama and French (1989) and Chen et al. (1986). It is argued that there is an inverse relationship between interest rates and stock returns. Thorbecke (1997) and Smal and de Jager (2001) observe that a reduction in interest rates induces an injection of liquidity into the economy. This extra liquidity could be channeled to the stock market, driving up the demand and prices of stocks. Patelis (1997) notes that interest rate changes are helpful in predicting stock market returns over a long period. Thus, there is evidence to conclude that interest rate policies should also target stock market price movements. Goodfriend (2003) also notes that, since there is no stable correlation between stock-price returns and short-term interest rates, it would be difficult for interest rates to target stock-price changes appropriately. Bernanke and Kuttner (2003) also note that stock markets do not react much to interest rate changes. Throughout the years, the global economy has been transformed from a simplified financial architecture to a complex intertwined set of financial systems. From the Bretton Woods system to the advent of flexible exchange rate systems in 1973 until the present days, the environment of international markets had experienced substantial changes in the form of excessive variability in exchange rates, greater capital mobility and punctuated by a series of financial crises worldwide in recent years. Meese (1990) who studied the currency fluctuations in the post-Bretton Woods era found that the changes of macroeconomic variables alone could not explain major currencies movements. MacDonald and Taylor (1994) however noticed relationships between macroeconomic variables and exchange rate. A recent study by Rapach and Wohar (2002) meanwhile produced mixed results for the monetary model of exchange rate determination. In December, 2007 economic recession that began in the United States spread much of the industrialized world, and has caused a uncertainty of economic activity. This global recession has been taking place in an economic environment characterized by various imbalances and was sparked by the outbreak of the financial crisis of 2007–2009. However, Mitchell and Netter (1989) argue that the three-day decline preceding the crash was a large enough decline that it became the fundamental news and that shook the market. The theoretical model of Jacklin et al. (1992) (among others) shows how a surprise significant drop in the market could have provided information to the market that would directly lead to a crash. Among all macroeconomic factor stock price movement is also effect by changes in economic environments. CRR (1986) results are tested to see whether the factors priced in the US market are applicable in Turkey stock market, with adding new variable unemployment rate, because we expected a relation with the stock returns. 2.2 THEORETICAL FRAMEWORK Four factors are selected to test the relationships of these factors and stock return. The factors are recession, interest rate, exchange rate and stock price movement. 2.2.1 Recession Recession is one of the macroeconomic factors that effect to the listed company stock return in KLCI. Some of the researcher say that recession have give negative impact to stock return but some researcher found that recession is no relation with stock price. CRR (1986) shown that the tested macroeconomic variables do not affect the share price in the UK stock market. 2.2.2 Exchange Rate. Exchange rate is most been use by investor to do transaction to buy stock in market, because of that exchange rate is consider one of the factors that effect to the stock return. Movements of exchange rate are always a concern for various parties. In international currency markets, exchange rate plays a significant role and the variability of exchange rate, whichever way it sways, tends to give a significant impact on the economy. 2.2.3 Interest Rate. Interest rate also one of the factor that give impact to the stock return because some researcher say that interest rate give negative impact to the stock return. Anthony Kyereboah-Coleman and Kwame F. Agyire-Tettey (2008) mention that there negative real interest rates for extended period. 2.2.4 Stock Price Movement. Stock price move is most related to the stock return because every time changes in stock price effect to the outcome of stock return for investor investment but some of the researcher say that there is no effect on stock return. For example Martinez and Rubio (1989) tested the Spanish market return and they found that there were no significant pricing relationship between stock returns and the macroeconomic variables. 2.3 SUMMARY Literature review is the part where it shows where it show whether the variable will be strongly acceptance or not. From the previous study that has been done it has shown that, most of the variable has its own importance not only in affecting some issue but also in solving it. This literature reviews shows the effect of this study on the stock return as the dependent. It also has many researches done with the difference result. CHAPTER 3 METHODOLOGY AND DATA 3.0 INTRODUCTION This chapter discusses the research methodology used in the study. Methodology is one the important method that had been use to test the hypothesis on this study in order to get the finding at the end of the study. Research design and research methodology is most of the important part for this study since it provide a lot of useful information on how to get the data, how to conduct the survey and provide additional information in order to get better result and finding for this study. This chapter explains how the data for conduct the study is collected and carried out. It also explain on the method that is going to be use to get the finding at the end of the study. It also focus on the data sources, sample involved in the study and the methodology to be use in this study. In this study the variables that had been used was economic recession, exchange rate, interest rate and stock price which collected on the monthly basis for the period of 5 years ended in December 2005 until December 2009. This study consists of 50-industrial product firm and using time series period from 2005 to 2009. Focus for this study was more on the Regression Model analysis to test the finding. Since this study was investigate and identify the relationship between macroeconomic and stock price movement to profitability so using the regression data analysis model had done it for the past 5 years.. There are several key items such as data collection method, sampling frame, sources of data, variables and measurement, research design, theoretical framework, hypothesis statement, data analysis, and treatment which will clarify in detail in this chapter. 3.1 DATA COLLECTION The price indices at monthly frequency are collected for sectors in Bursa Malaysia: industrial product sector. All the closing prices of these sector indices sourced from the secondary data from Thomson Financial DataStream over five-year period from year 2005 to year 2009 (5 years). Meanwhile, for the independent variables of recession rate, exchange rate, interest rate and stock price will be extracted from Thomson Financial DataStream and Bank Negara Malaysia official release. 3.2 SAMPLING FRAME To secure an acceptable result, this study decided to use 50 samples out of all companies that went public and were listed on the second board within year 2005 to 2009. The decision to use this sample was due to the inability to collect more data due to the time constrain during research. Furthermore, this study wants to see the stock return for investor in industrial product sector. And at the same time, it also wants to observe the relationship between recession rate, exchange rate, interest rate and stock price. 3.3 SOURCES OF DATA The selected 50 stock sample being chose from the main board of BM KLCI .The data are collected on monthly actual stock price was collected from the Thomson Financial DataStream, which is provided the information about the companies financial situations over years. Each stock is already being issued from the companies issued until today. These samples were represented by 50 companies from the industrial product sector. 3.4 VARIABLES AND MEASUREMENT There are two types variables has been used in this study there are; the dependent and the independent variables. 3.4.1 Dependent Variables The dependent variable for this study is stock return of each company industrial product sector. 3.4.2 Independent Variables The independent variables will be measured by recession rate, exchange rate, interest rate and stock price. 3.5 RESEARCH DESIGN This research is designed to see the relationship between dependent variable with independent variables. In this study, it analysis in hypotheses testing that will explain the certain significant correlations between KLIBOR and Treasury Bills rates and the stock performance 3.5.1 Purpose of the Study The purpose of this study is to determine the relationship between all the dependent and independent variable. By using descriptive study can know relationship between both of variable. Descriptive study will be able to describe the characteristics of the variable of the situation. By using data from DataStream would be able to compare monthly return for each of the companies. Besides that, this study also can help investor to make decision making and offer the idea for future problem and research. 3.5.2 Types of Investigation The study involved the correlation study types of investigation. The study involves determining the important variable associated with the situation. The important variable is between the recession rate, exchange rate, interest rate and stock price. Correlation studies done in the study are called field studies. This studies will conducted to establish cause and effect to the stock return using the same measurement in the market are called field experiments. The experiment done to establish the cause and affect of the studies so that can make corrective action to make any decision in the investment. 3.5.3 Unit of Analysis In this study, the unit of analysis is group of company and also industry. The group of company that involve fifthly (50) of the properties companies that has been selected in the main board of BM KLCI. The companies selected depend on the year of the companies is establish. The industry that has been selected is recession rate, exchange rate, interest rate and stock price will be compare with the return of each companies return during 5 years. 3.5.4 Time Horizon This study will be use cross-sectional studies to make the research. A study will be done with the monthly data are gathered over five years (5) from year 2005 to 2009, in order to get the result about these studies. 3.6 THEORETICAL FRAMEWORK Research studies indicate that relationship between KLIBOR and Treasury Bills rates and stock performance. Dependent variable: Effect of company Stock Return Independent variables: Recession rate, Exchange rate, Interest rate and Stock Price Movement. Figure 1: Schematic Diagram (Relationship Diagram) Independent Dependent Company Stock return listed in KLCI Stock price movement Interest rate Exchange rate Recession rate According to the schematic diagram above, it can be explaining relationship between stock return with Recession rate, Exchange rate, Interest rate and Stock Price Movement. 3.7 DATA ANALYSIS AND TREATMENT Multiple Linear Regression Model are the statistical tools that been use in this study. This model analysis examine about simultaneous effect between Recession rate, Exchange rate, Interest rate and Stock Price Movement (independent variable) Stock Return (dependent variable) which variable give biggest effect on the dependent variable. Where; Y = Dependent variable which represent Actual Stock Performance = The constant number of equation = Coefficient Beta value = Independent variable which represent Recession rate = Independent variable which represent Exchange rate = Independent variable which represent Interest rate = Error r = (EV – BV) + DIV X 100 BVStock price movement will be measure in Holding Period Return to determine the effect on stock return Where; r = Represent Rate of return EV = Represent Ending Value or end of stock price BV = Represent Beginning Value or beginning of stock price DIV = Represent income or dividend of company 3.8 HYPOTHESIS STATEMENT Some changes will affect the each stock return to the companies. By changing the stock price will affect the return to the companies its self its might be go higher or lower than what it expected will be. To analysis and to test whether this is applicable to the Malaysian Stock Market, the hypothesis has been developing. Hypothesis 1 H0 = Company stock return in industrial product sector outperform than KLCI H1 = Company stock return in industrial product sector underperform than KLCI Hypothesis 2 H0 = Macroeconomic factor does has significant impact in stock return of each company in industrial product sector in KLCI H1 = Macroeconomic factor does not has significant impact in stock return of each industrial product sector in KLCI Hypothesis 3 H0 = Stock price movement does has significant impact in stock return of each industrial product sector in KLCI H1 = Stock price movement does not has significant impact in stock return of each industrial product sector in KLCI SUMMARY This study will be measure according the objective that has been established in earlier chapter. This research can be use to help investors to make the investment decision. Its because this studies focuses on the data from year 2005 until year2009, it will give better overview of each of the properties company in order to take any corrective action in facing the problem and also overcoming the problem in the current situation to make an investment decision.

Parental Involvement in their Childs Education Essay example -- Educa

When my six year old daughter comes home every Friday I expect a green folder filled with colorful masterpieces she created during integrated arts, three new weekly reading books, seven to ten double sided pages of homework, an array of spam letters trying to sell us food and a variety of other things and last but not least, letters from her teacher. Every week it is my responsibility to go through this folder, respond to communication letters, and work with my daughter to complete any assigned work. If I do not work with her on this it won’t get done and she will fall behind in school. Yes, there are some days that I wish I could just flip on my TV and ignore the fact that she has homework, but until she graduates it is my responsibility to insure her future by enforcing rules on homework and school. It seems everything parents do is for their children, but who has time to add more conferences and study sessions to an already hectic schedule? Every parent wants the best for t heir child, but most aren’t willing to step up where children need them most, in the classroom. Parental involvement in a child’s education makes a world of difference, it lowers dropout rates, raises test scores, improves the child’s outlook on education and the list goes on. It would seem like a no brainer that it is really important for parents to find time to be more involved for the sake of their child’s future. Yet parents are not doing this willingly, which is the reason Florida state Representative Kelli Stargel's proposed a law that would grade parents based upon the most basic parental involvement in their child’s education. Could a law enforcing parental involvement be the missing link in the education system or is a child’s education the responsib... ... PTA meetings, or school board meetings, it’s simply trying to enforce very basic involvement in a child’s education. Parents should be, and need to be more involved in the education of their children, after all the children are our future. Works Cited Belkin, L. (2011, May 22) Whose Failing Grade Is It? New York Times, 2(L). Gale Opposing Viewpoints In Context. Web. 17 Jan. 2012. Couwels, J. (2011, January 26) Florida lawmaker wants teachers to grade parents. CNN U.S. Retrieved from http://www.cnn.com/2011/US/01/26/florida.grading.parents/index.html Friedman, T. L. (2011, November 20) How About Better Parents? New York Times, 11(L). Gale Opposing Viewpoints In Context. Web. 17 Jan. 2012. Kronholz, J. (2012, January 17) Truants: The challenges of keeping kids in school. Education Next, 11.1, 32-38. OmniFile Full Text Select. Web. 17 Jan. 2012. Parental Involvement in their Child's Education Essay example -- Educa When my six year old daughter comes home every Friday I expect a green folder filled with colorful masterpieces she created during integrated arts, three new weekly reading books, seven to ten double sided pages of homework, an array of spam letters trying to sell us food and a variety of other things and last but not least, letters from her teacher. Every week it is my responsibility to go through this folder, respond to communication letters, and work with my daughter to complete any assigned work. If I do not work with her on this it won’t get done and she will fall behind in school. Yes, there are some days that I wish I could just flip on my TV and ignore the fact that she has homework, but until she graduates it is my responsibility to insure her future by enforcing rules on homework and school. It seems everything parents do is for their children, but who has time to add more conferences and study sessions to an already hectic schedule? Every parent wants the best for t heir child, but most aren’t willing to step up where children need them most, in the classroom. Parental involvement in a child’s education makes a world of difference, it lowers dropout rates, raises test scores, improves the child’s outlook on education and the list goes on. It would seem like a no brainer that it is really important for parents to find time to be more involved for the sake of their child’s future. Yet parents are not doing this willingly, which is the reason Florida state Representative Kelli Stargel's proposed a law that would grade parents based upon the most basic parental involvement in their child’s education. Could a law enforcing parental involvement be the missing link in the education system or is a child’s education the responsib... ... PTA meetings, or school board meetings, it’s simply trying to enforce very basic involvement in a child’s education. Parents should be, and need to be more involved in the education of their children, after all the children are our future. Works Cited Belkin, L. (2011, May 22) Whose Failing Grade Is It? New York Times, 2(L). Gale Opposing Viewpoints In Context. Web. 17 Jan. 2012. Couwels, J. (2011, January 26) Florida lawmaker wants teachers to grade parents. CNN U.S. Retrieved from http://www.cnn.com/2011/US/01/26/florida.grading.parents/index.html Friedman, T. L. (2011, November 20) How About Better Parents? New York Times, 11(L). Gale Opposing Viewpoints In Context. Web. 17 Jan. 2012. Kronholz, J. (2012, January 17) Truants: The challenges of keeping kids in school. Education Next, 11.1, 32-38. OmniFile Full Text Select. Web. 17 Jan. 2012.

Income Inequality and Its Affects on Healthcare Essay

Mastrianna (2010) speaks of income inequality as variations in earnings among individuals and households. He states that some income disparity is desirable for creating an incentive for individuals to invest in education and training and to take risks in employment and investment for greater rewards. Concerns are being voiced as to the income inequality in the United States due to the degree of inequality which is shown in the Lorenz Curve and Gini Index. (Pg. 189) Some of the causes of income inequality that have the greatest impact Mastrianna says are first, education. Education or lack thereof has a great effect on income inequality. In 2007, the median incomes of a high school dropout were $22,256, compared to $31.408 for a high school graduate and $51,324 for an individual with a bachelor’s degree. Over a work life an individual with a bachelors degree can earn at least one million dollars more than a high school drop out (based on 2007 dollars). Employment opportunities have also shifted toward medical, business, and other services that disproportionately employ college graduates. Rapid employment in restaurants and retailing explain the low wages of high school graduates. (Pgs. 189, 190) Second is technology, Mastrianna says that the use of computers in the workplace has increased and the estimate is that over 55 % of the labor force now uses computers on the job. These workers earn an average of 10-20 % more in wages than those who do not. Highly educated employees are also more likely to adjust to computers complexities than less educated employees. Consequently, income inequality is increased as the economy is becoming more technologically efficient. According to the AeA, the average technology worker earns $79,500 compared to $42,400 for all private sectors which will widen the income gap as more bright people head toward the information economy. (Pg 190) Thirdly Mastrianna mentions unions stating that the decline in the number of workers belonging to labor unions also contributes to income inequality. This decline in the organized workers is largely due to the loss in manufacturing jobs which leads to fewer jobs at a higher pay forcing many to work in lower paying service jobs which in turn adds to income disparity. (Pgs 190,191) Fourth, Mastrianna notes abilities. There are individuals that are gifted with talents such as the â€Å"smarts† to become doctors and lawyers, or have the physical abilities such as Tiger Woods to become a star athlete, or have artistic talents such as Angelina Jolie. These talents enable certain individuals to contribute substantially to total output but these high incomes have become a highly controversial issue during a time of income inequality. Especially when it comes to CEO’s collecting high salaries, bonuses, and stock options even when their companies fail while laying off thousands of workers. (191) Fifth Mastrianna points out wealth. Income from wealth is more unevenly distributed than income from labor he states. Wealth can be generated by its current owners as well as by previous generations through inheritance. The Bureau of the Census estimates that 84% of the nation’s wealth is held by 20% of households. The collapse of the housing bubble left many households with negative household equity or in bankruptcy. Updated figures may show that this phenomenon has served to further increase the uneven distribution of wealth. (Pgs 191, 192) Finally Mastrianna states that discrimination plays a part in income inequality among the races and sexes. The U.S. Census Bureau indicated in 2007 that the median income of all white, non-Hispanic households was $54,920, while for blacks it was $33,916, and for Hispanic households it was $38,679. Asian and Pacific Islanders had the highest household medians with $66,103. The U.S. Census Bureau also indicates that females who worked year-round made $35,102 annually, compared to men who made $43,113. More often than not labor market discrimination is based on channeling groups of people into occupations for which they are considered suitable. Women and minorities are channeled into occupations that are reserved for them. Such crowding increases the supply of labor in these fields, driving wages down. At the same time, wages are higher in the restricted fields because labor is reduced. (Pgs 192 – 194) The condition of poverty is one extreme of income inequality and the remainder of this paper will compare another extreme; the healthcare and the mortality rates of people due to their income inequality. According to doctor’s Alex Y. Chena and Jose J. Escare numerous studies have found that high-income Americans use more medical care than their low-income counterparts, irrespective of medical â€Å"need.† The methods employed in these studies, however, make it difficult to evaluate differences in the degree of income-related inequality in utilization across population subgroups. In this study, the doctors derived a summary index to quantify income-related inequality in need-adjusted medical care expenditures and reported values of the index for adults and children in the United States. They used the summary index of income-related inequality in expenditures developed by Wagstaff et al. The source of data for the study was the Household Component of the 1996-1998 Medical Expenditure Panel Survey, which contained person-level data on medical care expenditures, demographic characteristics, household income, and a wide array of health status measures. They used multivariate regression analysis to predict need-adjusted annual medical care expenditures per person by income level and used the predictions to calculate the indices of inequality. Separate indices were calculated for all working-age adults, seniors, and children ages 5 to 17. For all age groups, predicted expenditures per person, adjusted for medical need, generally increased as income rose. The index of inequality for all adults was +0.087 (95% confidence interval, +0.035, +0.139); for working-age adults, +0.099 (+0.046, +0.152); for seniors, +0.147 (+0.059, +0.235); and for children, +0.067 (+0.006, +0.128). Through their study they found that there exists income-related inequality in medical care expenditures in the United States, and it favors the wealthy. The inequality was highest among seniors despite Medicare, intermediate among working-age adults, and lowest among children. Sarah Glenn author of another article â€Å"Income Inequality Linked to Hospital Readmission† states that income inequality is linked to a greater risk of hospital readmission but not to mortality. The finding that she speaks of came from a large study of older patients in the U.S. and was published in the British Medical Journal. Investigators said that over a three year research period that about 40,000 extra hospital admissions resulted from income inequality. Although the experts are not positive why there was no consistent association between income inequality and mortality, they suggested that, over one month, â€Å"readmission is more sensitive to social conditions than is mortality, and that an effect on mortality might have been observed had they extended the period of observation to one year.† The article also states that scientists have known that income inequality is linked to a diversity of negative health consequences such as: reduced life expectancy, higher infant mortality and poorer self-reported health. Previous research also in BMJ, demonstrated that there is also an association between low standards of child well-being and income inequality. In an article written by doctor’s Diane McLaughlin and Shannon Stokes they speak about whether or not minority racial concentration matters when it comes to income inequality and mortality. The study that they did examined the relationship in all counties in the United States to see if relationships found for states and metropolitan areas extended to smaller geographical areas and if the influence of minority racial concentration did affect the inequality-mortality link. The results of their study proved that the relationship between income inequality and minority concentration show that mortality is robust for counties in the United States. Minority concentration interacts with income inequality, resulting in higher mortality in counties with low inequality and a high percentage of Blacks than in counties with high inequality and a high percentage of Blacks. The research that has been done on income inequality on mortality offers 2 main pathways in which income inequality operates. First, Daly et al. 7 and Lynch et al. 5 posit that political units with highly unequal income distributions are less likely to have affordable housing, education, environmental protection, economic development, and other resources required for the health of their populations. This underinvestment has negative consequences for the health of poor and middle-class individuals. Second, as Daly et al. note â€Å"inequitable income distribution may directly affect people’s perceptions of their social environment which may in turn have an impact on their health.† 7(p319) This postulated psychosocial pathway linking health and mortality stems from conditions in highly equitable communities that result in lower social cohesion, inequities in social and political influence, and less willingness to participate in community activities. Further, Wilkinson argues that the impacts of inequality result less from the experience of inferior material conditions than from social meanings that individuals give to their circumstances and from the effects of stress on both the endocrine and immune systems. While the exact pathways through which income inequality influences mortality are still being defined, there is strong agreement that the determinants of health and mortality include factors beyond the level of the individual. In conclusion, it seems that Mastrianna is correct in his theory; a lack of education, not having special abilities or not being wealthy as well as being discriminated against does factor in on a person’s income inequality. Not only do these factors affect income inequality but they also affect a person’s healthcare and in the case of high concentrations of blacks also affect the person’s psychological and social views which can contribute to their mortality. I was somewhat surprised as well to find in the study by Daly et al. that social relationships influence the health outcomes of adults as well as those social relationships should be taken as seriously as other risk factors that affect mortality. Myself having to deal with treatment for breast cancer can see how social relationships are very important as I am somewhat isolated and it makes me feel good to have social relationships through my online friends as well as with my healthcare professionals and social worker to better be able to cope in my situation as my family has not been there for me like I had hoped that they would be. Without that support from others I could become very depressed which could in turn affect my healthcare outcome. BIBLIOGRAPHY Qualifying Income-Related Inequality in Healthcare Delivery in the United States Wolters Kluwer Health/Lippincott Williams and Wilkins Retrieved on February 17, 2003 from http://www.jstor.org/discover/10.2307/4640689? Glynn, Sarah. (February 15, 2003) Income Inequality Linked to Hospital Readmission Medical News Today Retrieved on February 17, 2013 from http://www.medicalnewstoday.com/articles/256412.php Mastrianna, Frank V. (2010) Basic Economics. Mason. OH: South-Western, Cengage Learning. Pp. 189 – 200 McLaughlin, Diane K. PhD and Stokes, Shannon C. PhD (January 2002) Income Inequality and Mortality in US Counties: Does Minority Racial Concentration Matter? Retrieved on February 17, 2013 from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC1447397/

Modern architecture and traditional architecture

Modern architecture and traditional architecture Nowadays, as we known the architectural community has had a strong and continuing interest in traditional and modern architecture. Architecture, this word possesses an immense creativity in itself. Usually, when we hear this word, picture of creative design of physical structures flashes in our mind. Integral to the identity of any country is its architectural heritage, combining modern and traditional architectural designs or product of the blend between splendid modern and traditional architecture.Based on what have found, architecture has been Rosen down into many categories to fit the lifestyle of people in a particular place at a particular time. There are basically two types of architect which are modern architecture and traditional architecture. According to architect Eric Spry, the word â€Å"modern† provokes such strong reactions in the world of residential architecture. Some people might imagine wonderful homes of stee l and glass with open, flowing floor plans; others might imagine sterile homes that feel like museums, complete with men in red suits watching carefully that nothing is touched.Strong pinions abound about modern architecture, as they do regarding the wide variety of other architectural styles. Five hundred years ago, Native Americans was built with adobe and Europeans built with stone. Homes had thick walls, small and deep- set windows, and small interior rooms. Technologies such as steel later allowed large expanses of space and large expanses of glass. In our lifestyles today are considerably different than the lifestyles of 50 years ago, let alone the lifestyles from 100 or 200 years ago. Architecture must represent the way we live today, not the way we lived hundreds of years ago.Remember parlors? Not many would. These were sitting rooms common a hundred years ago where guests were greeted. Our lifestyle changed, and parlors were weeded out. (Discover Modern Architecture's Appea l . Eric Spry). What is a modern architecture mean? Modern architecture is known as the movement of architecture that began in the 20th century, it is also architecture that is characterized by the simplification of forms and subtraction of ornaments, modern architecture can be some of the most futuristic, colorful, innovative designs ever. Traditional vs. Modern Architecture' (Ranches . 011). Modern architecture these days there are so many materials that architects can use to create different effects on buildings. In history, Modern architecture developed during the early 20th century but gained popularity only after the Second World War. For decades, modernism became the dominant structure for institutions and corporate buildings even up to the recent period. Architectures of this type exhibit functionalism and rationalism in its structure. (What is the difference between post-modern and modern architecture?. 000). Characteristics of modern architecture include he functional requ irements of the structure, lesser ornaments used and eliminations of dispensable details, and the application of the concept of â€Å"form follows function†. ‘Comparative investigation of traditional and modern architecture' (A. S. Delia, M. A. Ensnare, T. Zachary Beverages . 2011). Generally, modern design is simple, sober and features minimal accessories. The modern design is characterized with angular frames, low profiles, geometric and abstract patterns in textiles, upholstery as well as in artwork.Natural materials like linen, leather and teak wood are mostly used. The lines are unembellished as well as straight. In modern design, the furniture is often raised from the floor with the help of legs in order to create an airy and open atmosphere. Colors used in modern design are neutral shades that are highlighted with splashes of color. Walls are generally cream and white in color. Floors are mostly made of cement or bare wood. In addition, sculptures and paintings a re used as an integral part of modern design.If you are in the process of designing or renovating your home, you may be wondering whether to include modern design in the design layout. Well, the terms – modern is closely related and people tend to use the terms interchangeably. However, in the world of design and d ©core, both the terms represent distinct and different styles. To be modern a building should be light and airy, it must push technology to its limits even effecting new invention in the process; to be architecture it must provide utility, stability, commodity and delight and all of this done in sympathy with Nature.Being novel is not to be confused with being modern. ‘Sustainable systems in Iranian traditional architecture' Avid Iraqi , Sabina Kabuki Madman . 011). As result, architecture has been going backward since the mid-20th Century because the technology available at the time still has not been fully utilized, for example, space frames, and especial ly the engineering concepts of Businessmen Fuller, such as geodesic domes large enough to cover entire cities and his lightweight temerity towers; such technology is essential to conserve scare resources in order to assure economic growth, as well as to provide for increases in population. Modern & Traditional Houses' can Weiss. 2009). Basically ,a modern home should represent how we live today. It should reflect current construction methods and materials. It should have integrity by avoiding trends. Modern architecture offers an opportunity for an original beauty, not by imitating another style from another time or place, but by considering the present and, with imagination, creating a fresh aesthetic. Secondary, we might ask what is traditional architecture?Traditional architecture is that way of building which makes serious use of the familiar symbolic forms of a particular culture of a particular people in a particular place. It is different from modern buildings because of thei r method of construction, to because of their age or their listed status. Traditional buildings have an appeal due their special character, history and location. Furthermore, when looking for a property to buy it's easy to fall in love with an old building. ‘Architecture – modernism vs. traditionalism' (Lance Baker . 2011).Traditional architecture is the term used to categorize methods of construction which use local anesthetically available resources and traditions to address local needs. Some believed that, by using local practices, such as using local materials in construction, building costs will decrease, hence being economically more advantages. By the professor Lucien Steel, traditional architecture requires a high ethical commitment to the people, their places, their beliefs and their particular traditions. This commitment is not a slavish one, nor is it a servile opportunism.Ethical attitudes are not reducible to the uncritical acceptance of dominant sets of va lues and moral conventions. They require the distinction between civic and private virtues on one hand and willful customs and obsolete practices of false morality and corrupted policies on the other. So if modernity in some way would contribute to discern the most appropriate and the cost efficient, the most human and the most ecological aspects of the contemporary potential, every traditional architect and city-builder couldn't be but a committed modern.Traditional architecture and city-building are based on a positive philosophy of life, on faith in humanity, on respect of environment and historical cultures as a common heritage of mankind, and on an inviolable legacy of genius and know-how from proceeding generations of craftsmen and committed citizen. Traditional architecture and city-building imply a sense of modesty and humility of he individual creator within the sacred creation of the universe, as well as the powerful intuition that concepts of beauty, harmony, Justice, tru th, rightness are embedded in permanence and universality.Tradition forwards a selected knowledge, a tested experience as well as an heritage of models, types, techniques and formal vocabularies. It is a dynamic process, an on-going effort and development, not a static heritage of dogmas and immutable recipes. Tradition shoulders the responsibility of carrying on an inherited culture beyond the contingencies and improvisations of the moment. In order to remain vital, alive and relevant it needs to be earned, consolidated and enriched by each single generation in the perspective of universal ideals of civilization.It implies a constant effort of appropriation of knowledge, experience and cultural values, a permanent effort of intellectual, artistic and material reconstruction. (Tradition and Modernity in Contemporary Practice. Lucien Steel). Traditional architecture are mainly classified as historical buildings that have a lot of character and culture incorporated into them and artis ts were commissioned to put some color into the building giving each one an individual stamp.Now a day's traditional architecture is the widespread form of building since many years, constructed through traditional way of building methods by local builders without using the services of a professional architect. Due to western influence, architects are not using traditional architecture techniques now that are based on climatic conditions. Building materials has different categories from mud- plastered to reed-thatched to timber-framed in accordance with the availability of local material. Some houses are built to withstand earthquakes, while others can be built quickly if washed away by heavy monsoon rains.In some areas where there are limitations of building material, natural materials such as mud, grass, bamboo, thatch or sticks are used, instead of transporting materials from far place which is a blot on sustainability practices, for semi-permanent structures which require regula r maintenance and replacement. The advantages of such traditional architecture are the construction materials are cheap and easily available and relatively little labor is required. As the needs and resources of the people change, traditional architecture evolve to include more durable materials such as tones, clay tiles, metals etc.Though they are more expensive to build, they are very durable structures. In Asia climate has a major influence on traditional architecture. High thermal mass or significant amounts of insulation characterize buildings in cold climates. Lighter materials are used to build buildings in warm climates and designed for sufficient cross-ventilation through openings in the fabric of the building. In areas which have high levels of rainfall, flat roofs are avoided, even in areas with flat roofs, water harvesting techniques are being used. (Traditional Architecture In Asia . 2010)The overall effect of traditional houses is like walking through a well-curates ar t exhibit, where people can admire the buildings. The density of different buildings and stores satisfies the pedestrian's need for visual interest. It is a key part of what we call â€Å"walkabout'. This is what made historic downtowns beautiful in a way that no government or philanthropist could recreate today, and why historic preservationists nurse a broken heart with every lost structure. Traditional and modern architecture have mostly been seen as antitheses, impossible to reconcile, especially in Africa.They appear to belong to efferent ages, utilize different materials and methods, and encourage or support different lifestyles. This essay aims at seeking points where a merging of principles may be attempted between the two positions. Compare from both of them, modern building has very good facilities including toilets, kitchen etc. And more over the design is very different. They are designed according to the requirements and also the life would be much easier there in the modern building. (Traditional vs. Modern Architecture 2011). But on other hand, traditional house have great design too.It is graceful and warm and inviting. It is also beautiful. Of course traditional house can't guarantee that the roof isn't going to leak, the windows are properly sealed and the kitchen appliance is in the working order. Traditional house cannot guarantee for it. ‘Modern apartment building or traditional house ? (Teenage. 2011) The fact that modern buildings are prevalent proves modern style has its own advantages. In my country, population explosion has been a headache and the following problem is where to settle those extra citizens.Since the land is limited, one good solution is replacing those old buildings which occupy large space with tall and thin modern buildings. Also, modern buildings usually have the same and simple structure so that they can be finished in a relatively short time, compared to the traditional ones. As a result, modern buildings au gment the efficiency and make it possible to meet the increasing large demand of house nowadays. Furthermore, as modern buildings are always applied with advanced technology and theories, people can gain more security when living in such environment.But, there are many people still strongly recommend the traditional style. Specifically, unlike the modern style which can be seen everywhere, traditional buildings representing unique cantonal culture only exist in certain countries. In this way, those building can be built for special use like tourist attractions. This would bring a great profit and earn the country a good fame. In addition, buildings with traditional sense are a good way to memorize the past history and display the ancient scenes. As a result of this, some new buildings are necessary to be built in traditional style but not all the buildings.Modern buildings still play the key role in today's society and will gradually expand its affect zone. ‘Some people think all the new buildings should be built in traditional style? (Elise. 010). However, modern buildings often use steel infrastructure, where the interior columns carry most of the loading. Since this type of construction is lighter per floor, they can be built higher, cheaper, and quicker. What are the differences between ancient and modern buildings? Monsoon. 2008). For the opposite, most ancient buildings had load bearing walls, which limited their height, and accounted for the thicker walls.This also resulted in a lot less available window space. In fact in today society, one of the most significant problems accompanying with the population exploration is house problem, so more and more KY-scrapers instead of traditional buildings are built. As far as this phenomenon is concerned, some people think that we should construct much more buildings in traditional styles. Admittedly, there are some reasons for those people who stand for constructing building in traditional way. First of al l, the traditional buildings may possess more aesthetic values and historical meanings.Compared with the modern ones, the traditional buildings contain paintings or characters relating to the past certain age or dynasties; which endow more value to the buildings. Secondly, he traditional buildings often provide more spaces to house owners or renters; thereby making the living condition much easier and more comfortable. (Modern and traditional architecture 2010). However, maybe we do not think that we should build our building mainly in traditional way. Firstly, it is decided by the present social phenomenon that the number of population living in the planet nowadays has never appeared even before.Correspondingly, we have to build most our living houses in a way that never come before. Besides that, constructing our building in a modern way is also an integral part of sustaining ecosystem. Let us try to imagine that if we all build our house in traditional way, take china for example , which traditional buildings are usually one or two layers, and can it accommodate the present 1. 3 billion population . The might be a possible we could build a few numbers of buildings in traditional style which in order to hand down the traditional culture.But based on the social condition, most of our buildings should still construct in modern way. But , can modern and traditional architecture coexist? In today's world anything is possible for example Instead of painting beautiful designs on the wall, en can Just use wall paper instead which can be replaced or removed at any time. The thin line between modern architecture and traditional architecture is that Modern architecture explores mainly with the interior features whereas traditional architecture is mainly worked on the exterior features.Therefore modern architecture and traditional are definitely able to coexist. ‘To what extent do you agree or disagree? -modern & traditional building(Cathy. 2009). There is also a vast difference between modernity as an attitude and modernism as an architectural style. Modernity as an attitude, according to me, can co-exist with tradition. Modernity deals with transformation and change in the present and tries to incorporate it in buildings. Thus, it keeps changing with time. The standard steel frame and glass construction which was ‘modern' during the early 20th century is no longer modern today.