Impact of Advertising on Fashion

Impact of Advertising on Fashion Introduction: The use of advertising in the fashion industry was started as early as in the Victorian period. Advertising is been very important to the fashion industry as its one way of reaching a mass group of people quickly, as fashion today is very competitive and need speed marketing. Advertising is used from the high street fashion retailers to the low fashion retailers. According to (Dittrich,2000) it has been estimated that an average women sees between 400 to 600 advertisements per day. The fashionable female silhouette has changed with time and the body has been manipulated frequently (Fay and Price 1994) The most famous type of fashion that todays consumers goes for is the fast fashion, where the latest line of clothing from a designer is copied by the fashion retailer especially stores in the middle fashion market like Top Shop, Marks and Spencers, Next , New look, and HM. Thirty-two percent say that they get their clothing ideas from fashion magazines, up from 23% the previous year. ( cottoninc 2000). In fast fashion, sourcing and buying decisions are compounded by the speed by which decisions have to be made and innovation introduced into the store (Bruce Daly 2006). The introduction to the store can be given through a mass media that is advertising, advertising can be done through many ways like television, print, ad radio, an even through word of mouth. According to Aaker et al (1994) advertising is effective to influence consumer attitude. Govoni et al mentioned that the most images of well-liked brands are established by successful advertising. Modern consumers want to be entertained as well as informed through advertising (Lea-Greenwood 2002). In 1996 companies invested more than $1 billion in athletic endorsements deals and approximately $ 10 billion more to advertise and promote the celebrities endorsements (Farrell et al., 2000). A recent estimate indicates that approximately 25 percent of American commercials use celebrity endorses (Shimp, 2003). Celebrity endorsements have become prevalent technique in advertising in the past recent years. The consumers attention is the most important to the retailers. The retailers use advertising as one of the strongest aspect to catch their consumers attention. in Japan, there are roughly 70 percent of Japanese commercials featuring a celebrity (Hus and McDonald, 2002). Advertising also has some negative and positive effects, but in this paper both the aspects will be investigated. Fashion brands and retailers have a long-standing relationship with womens magazines and, more recently, with mens magazines (Mintel 2005). Fast fashion always need more advertising than the high street fashion market, the only way the can reach out to a mass audience is through media and through word of mouth. It has been estimated that the average woman sees between 400 and 600 adverts per day (Dittrich, 2000). Looking particularly at this age group who all read magazines and one of the famous magazines is the heat magazine, where this magazine compares the style and clothing of celebrities and give out the cheaper way to gain the look of the celebrities. In todays star-focused society, it may be more accurate to see celebrities and fashion magazines as a confluence in womens apparel-buying decision process. (Cottoninc 2000). The fast fashion retailers have to choose the right kind of medium to reach the particular target audience and should help the retailers to reach out to their consumers before their competitors reach. But while the celebrity influence does seem to ebb proportionally as a woman ages, it still plays a large role in the wardrobes of average women. According to the Monitor, 26% of women ages 25 to 34, and 24% of women ages 35 to 55, indicated that celebs served as their personal fashion innovators (cottoninc 2004). This fashion for slimness portrayed throughout almost all womens fashion advertising provides a standard for social comparison and respectively heightened dissatisfaction amongst females (Graner Grafinkel, 1980). When confronted with ultra thin models on a regular basis this is bound to have an effect especially when the thin ideal are totally unrealistic of womens bodies today (Hamburg, 2002). Celebrities are our new designers, relates Irenka Jakubiak, editor-in-chief of Accessories Magazine, the trade publication (cottoninc 2004). The Red Carpet is our new runway. Designers are going overboard to make the product, and manufacturers and retailers are turning stuff around fast to have it available for consumers (cottoninc 2004). In early 2001, approximately one in five marketing programs in the UK featured some type of celebrity endorse, with the number closer to one in four programs in the US (Erdogan et al 2001). Research has found that celebrities are more effective than other types of endorsers, such as the professional expert, the co mpany manger, or the typical consumer (Friedman and Friedman, 1979). Glamour editor Jo Elvin said: Kates back with a vengeance. Her maverick approach to fashion is an inspiration.(smh 2008) Advertising also helps to sell new products to the consumers, this way it helps the product to be marketed in the industry quick and efficiently. Advertising also manipulates the consumers using psychology in most of the advertisements. A woman who may not directly point to a celebrity influence in considering her wardrobe is likely to purchase something within a trend that can typically be tied back to a famous person. (Cottoninc 2004). Fighting AIDS is always of great importance, and HM is overwhelmed with the enthusiasm and the commitment from each and every celebrity involved in this collection. Ann-Sofie Johansson, HM head of design. (Onenationmagazine 2009). Celebrities are the trendsetters of our time. And they are wearing clothing and accessories that are more accessible to the general public (visavismag 2009). In the end, celebrities and modern fashion will always be inseparable commodities, and will continue to influence each other, and in turn the American public. (Helium 2009). Researches suggest that endorsers are more effective where there is a fit between the endorsers and the endorsed products. (Till and Busler, 2000). Psychologists Petty and Casioppo suggest the Elaboration Likehood Model (ELM) to explain the process consumers to be persuaded by the advertising message (Shimp, 2003). In a recent report in The Sunday Telegraph, Ashley Sharpe, head of money research at Which? Magazine stated: The danger is that, if the use of a credible celebrity is combined with a message that sounds great but doesnt tell you the full story, then many more people could be taken in, because they trust the person promoting the product. (Fashionunited 2004). 2.1 Aim: To analysis the role of advertising and body image in the context of fashion and manipulation of the consumers. 3.1 Objectives: To analysis the use of advertising in the fashion industry. To analysis the manipulation of consumers through advertisements by the fashion retailers. To analysis the impact of celebrities on fashion and consumers. To analysis the relationship between fashion and body image. 4.1Literature Review: In todays world to market a product and to make to reach the target audience on time is done through advertisements, where media is the one of the medium that can reach out to mass target consumers on time and to make the product famous among the consumers. The medias images and messages become what they see as a soothing voice in a storm of conflict, confrontation and confusion (Thomsen et al, 2001). In aspects to fast fashion the ideology of the retailers should reach the consumers fast, as the fast fashion industry is competitive. The most advanced marketing companies in the country had learned how to adapt their strategies to this new medium and it completely changed their perspectives. (Henry, 1986). Looking at the fashion market like Top Shop, Next, Marks and Spencers, New Look, HM. tend to spend much more than the other fashion retailer like Zara who does not spend anything of advertising for them marketing their products is through their own customers, where they believe word of mouth is more than enough to promote their products, this only helps to reach out a small group of people where the mass consumers wont be aware of their latest collection in store. On the other than the other retailers spend a lot on advertising and try to reach out a mass group of audience and market their product fast, this also helps to see the demand of the particular garment and helps not to over stock. The relatively small size of the UK and its heavy population concentrations allow this system to work particularly well in the interest of the marketers. (Henry, 1986). Through advertising most of the retailing companies develop their marketing strategy. Press advertising was the most important medium for 18 of the top 30 fashion retailer advertisers, and seven spent their entire advertising budget here. (Mintel 2005). Advertising is now taking up the upper hand in the fashion industry, which helps the retailers to market their product. Advertising is mostly done through manipulating the consumers, but the consumer does not like the idea of the retailers manipulating them, this is where psychology advertising comes into place. In this type of advertising is where they use colours, shapes, sounds, etc. The fashion industry works in this way by using adverts that imply by purchasing the brand the consumers will be buying the social esteem and image of model (Anderson et al, 2000). The advertisements are made to catch the consumers attention to the product. Although the highest paid super model of the 1900s were not classed as waifs i.e. Cindy Crawford, designers and magazines chose to use extremely thin models to advertise clothing and beauty products (Gorgan, 1999) Marks and Spencers have one of the biggest advertising budgets in the fashion industry. With an estimated  £ 43.5 million in 2006/07, making up a 12.0% share in the total (Mintel 2007). After Marks and Spencers Next have spent a lot of advertising their products. There are positive and negative aspects of fashion advertising. The positive aspect helps the retailers to boost their income whilst the consumers get the latest range of copied clothing from designer at a lower price which help them to look fashionable and to keep a track of the latest fashion. Employment opportunities for women are steadily improving, meaning that they have ever greater spending power and economic autonomy. They are the most important consumers of clothing and footwear, buying not only for themselves, but also for their children and male partners. Additionally, they enjoy fashion advertising much more than men and more influenced by it. (Mintel 2007). The negative aspect is the fashion is always related to skinny, thin, flawless skin models, this makes the consumers want to look like them. For the retailers is that fashion is one industry which changes season to season and the clothing line as well changes according to the current trend as fashion changes quickly the retailers tend to spend more on advertising very time a new trend is come into fashion. The average woman is estimated to see between 400- 600 adverts per day (Dittrich, 2000). One of the main reasons that advertising is used by the fashion retailers is to grab the attention of the consumers. Most of the fast fashion retailers target audience is from the age group 20 – 40 years. Teenagers ages 16-19 are more inclined to use fashion advertising to get inspiration (38% compared to 18% on average) (Mintel 2007). The retailers keeps in mind the age group and make the advertisements which will be liked by the group and catch their attention. The other way the retailers get the attentions from the consumers is by sale and offers which will make a consumer to walk into the store. On the other than magazine also help the fast fashion retailers to sell the garment faster as they compare the celebrities style which a cheaper alternative to gain the same style by the consumers. Fashion and beauty magazine availability is immense in society today (Gordon, 2000). Fashion maga zines are a great influence on the women of today where they want to look like the celebrities. This influence the consumers mind of being thin and skinny to gain the style of the celebrities. As the amount of media attention devoted to celebrities increase its apparent that celebrities them selves have taken up the position of role models (Weaver 1997). 4.2 Impact of body image: In todays world fast paced society relationships and judgments about others start with outward appearance while personality and inner values play a secondary role (Anderson, 2000). Western society is obsessed with body image. Women want to be thinner; men want to be more muscular (BBC, 2009). The feminist perspective suggest that in the 1960s thinness was equated with independence and success- today it has become the defining criteria for feminine beauty (Kilbourne, 1994). This has become a very important factor among people of today to look good outside, which has a major influence on the daily lifestyle of the person. In any form of interaction or communication verbal cues account for only 7% of total impact, vocals cues for 38%, whilst facial cues account for a major 55% (Mehrabian, 1972). With the face playing a central role in the way we think and feel about both ourselves and others (Partridge, 1996). The world that we live in has move towards to a position which has a big stre ss on appearance. Preoccupation with the visual image if self and others has become an obsession in a society where people continually compare themselves to cultural ideals of beauty (Coward, 1984). Advertisements for women reflected changing notions of the female body shape away from sever body chart to angular boyish shape (p.76, Reekie, 1987). The ideal human body began way back in time, where it started in ancient Greece. Viewing the body as potentially godlike, it was the Greeks who began the custom of treating the body as an aesthetic object (Seid, 1989). The society of today has experienced a big outburst of interest in the human body like never before. Todays consumers are very conscious of what they wear and how they look from the out side. Reekie (1978) suggested that one can look to advertisements for women they reflect the changing ideals of body shape. This has happened as a result of a huge influx of visual images of the human body circulated by the mass media (Shilling, 1997). The body beautiful augmented by fashion advertising in particular has helped lay the foundation for our preoccupation with looks and the priority we give to visual appearance. (Coward, 1984). Physical attractiveness is central to human communication as virtually all communication situations involve visual contact and the more physically a ttractive a person is, the more favourably they are respond to (Patzer, op cit). Other studies consolidate this view and results have indicated that more physically attractive people will have socially exciting and more active lives than less attractive people (Bassili, 1981). Body image is the term widely accepted as internal representation of your own outer appearance: your own unique perception of your body (Thompson et al, 1990). Physical attractiveness trend is a belief that an individual should look good and get better in looking good, which enables physically attractiveness. This enhancement is seen by many as a natural instinct that has been a trait of mankind since ancient times (Fiser and Fiserova). There is a huge money and time spent in cosmetic surgery in todays world, in order to look like their idols. As in the western society there is an increasing importance in looking good physically. The physically attractiveness phenomenon is deeply entrenched in modern society a nd there seems no future development likely to reduce it importance (Patzer, 1985). What is beautiful is good which was said by Dion et al (1972). When a study was taken by Dion et al found that physically attractive people have more socially attractive personality, they have happier marriages and in a whole their lives are happier and more successfully than the one who are less attractive. When women were asked whether they were willing to sacrifice comfort for fashion, 40% said yes, up 3.7% from 1998. (Cottoninc 2000). 4.3The impact of Ideal body image on consumers: In todays consumers society where womens bodies are frequently used to sell products, the ultimate commodity has become the female ideal body image. (Orbach, 1993). Since the 1960s the ideal body for women bodies has become lighter while real bodies have been getting heavier (Garneret al 1980). This has resulted in a bigger difference between the real and the ideal (Benson,1997). As popular models and actress represent current female ideals it is necessary to examine their depictions in the media (Wiseman et a, 1990). Today a lot of consumers are overwhelmed because of media. The effects that advertisements have on the consumers have changed everything from their fashion to their lifestyle in the society. Circulated as the norm, notions about the ideal are culturally specific trends that become mistaken for reality (Gorgan, 1999). The concept of an ideal body is given to us by the society of the world of today. The ideal now dictates a slim- hard – toned body (Benson, 1997). this perfect female body would be between five foot five and five foot eight, long legged, tanned and vigours looking (p.39 Coward, 1984). The media has drilled into the minds of people about the ideal body as being thin, tall and looking good to the society. With links to neurobiology, ideals are viewed as in-built responses guiding men and women in how they want to look and how they want others to look (Anderson, 2000). Overweight people are discriminated against in a culture that is unforgiving and judgmental towards fat people (Anderson, 2000). An ideal body for women has to perfect without any flaws. Achieving the ideal body will take time and money, where people are willing to spend these days. There are people in the society will go all the way out to look perfect and get their ideal body shape, even if the person has to go through many cosmetic surgery. In advertising technology has over taken, today every celebrities and super models have their photo shoot airbrushed before come out in magazines. Many of the images seen are artificially constructed using modern photographic techniques and air brushing (Coward, 1984). Although consumers know that these images are modified to look nice, they still opt for cosmetic surgery. Among other proposals are for success rates to be included on cosmetic surgery adverts and for local sports centres to be made more female friendly by being cleaner and safer (BBC, 2009). There are many celebrities have gone through many cosmetic surgeries and these consumers think this is the ideal body image and start to admired. Airbrushing should be banned in advertisements aimed at children to tackle body image pressure, say the Liberal Democrats. (BBC, 2009). President Douglas McGeorge has said he was particularly concerned about younger vulnerable readers of magazines who are being targeted very heavily (BBC, 2009) Although it is true that women may be entrapped in this system if beauty, the potential to change society and resist cultural pressure is negligible (Bordo, 1997). Smith (1990) believes that women should actively seek to achieve the ideal body in a form of femininity, body dissatisfaction is positive. He also argued that does not take in account the negative consequences of body dissatisfaction, low self-esteem and eating disorders. This also brings in the male to be more dominated and stronger than compared to women, where women are pressured to be thin and weak. The view also ignores the role of the fashion industry, which is said to dictate the ideal (Grogan, 1999). When a study was conducted on teenage boys (Huenemann et al, 1966) found that more than half of the response wanted bigger biceps, bigger chest and bigger shoulder. This should that the even male are now getting conscious about their body image and when it is looked back , the media started about in women and then now in men. A recent study says that cosmetic surgery is increasing rapidly in men. It has also been suggested that male dissatisfaction is more pronounced in older men (Anderson, 2000). Although men have different perspective of body image when compared to women. As women are objectified for the active male gaze, they become objects of desire and all emphasis is place on their bodies. (Mulvey, 1980). 36% women seriously consider plastic surgery cause theyre unhappy with the way they look. 90% of women said their bodies made them feel down and they think about it everyday. 50% of school girls say they are on a diet (BBC, 2001). The focus on womens appearance has got out of hand no-one really has perfect skin, perfect hair and a perfect figure, but women and young girls increasingly feel that nothing less than perfect will do.(BBC,2009). Body image is a persons subjective evaluation of what it means to them to have that body within their culture (Grogan, 1999). 4.3 Effect of celebrity advertising on consumers and society: Tellis, (1998) defined advertising as communication a firms offer to customers by paid media or space. There is no doubt that advertising is a formative influenced within modern Western culture (Pollay, 1986). According to recent research statistics, the number of celebrity advertisements has doubled in the past ten years. (Brandchannel ,2006). There is now little dispute that the content of commercial television is primarily a vehicle to deliver audiences to advertise to advertisers and that glossy magazines serve that same purpose (p.75, Giles, 2003). Studies show that we are significantly more dissatisfied with our own appearance after being shown TV ads featuring exceptionally slim and beautiful people. (BBC, 2001). The effect that advertising has on the consumers of today is very big impact. Studies have also shown that women who read fashion magazines are more likely to have poor body image and suffer from eating disorders (Harrison and Cantor, 1997). By becoming a reference point against which comparisons are made, fashion adverts can greatly effect men and womens body esteem (Grogan, 1999). When a survey conducted by Glamour magazine (1984) found that 75% of women taught that they were fat. The advertisement is based on the marketing strategy of the company, when there is a marketing outcome its generally changing the behaviour of the consumers. The process are classified as cognitive that are know as consumers attitude (Tellis, 2004). According to Foxall (1998) consumers attitude is recognised as a crucial link between the consumers thinks about the products and advertisements and what they buy in the market place. Aker et al (1994) suggested that the attitude concept is an important factor to advertising Management. The attitude of the consumers in one of the important factor for a company to plan their marketing strategy, and to find out the consumers attitude can be done through advertisements. The distortions are characteristic of anorexia and bulimia are some times literally and concretely evident in fashion advertising (p.134, Gordon, 2000). First, studying the advertising efficiency on market outcome is mainly for accountability (Tellis, 2004). Few advertisements depict mundane levels of attractiveness and instead exclusively star the overwhelming handsome and beautiful (Patzer, 1985). It is such models that become icons and set the ideals to which people try to adhere (Ibanga, 2002). As the fashion industry is said to represent the true ideal of beauty models create the standard to which people are to meet (Winkler, 1994). The task of the advertisers is to favourably dispose viewers to his product, his means, by and large, to show a sparkling version of that product in the context of glamorous events. The implication is that if you buy the one, you are on the way to realizing the other- and you should want to (p.26, Goffman, 1979) Fashion has become a global business since the 1960s to dress to have success and the power of the brand has become more significant in the past few years. The fashion advertisings has become a very powerful and a multi-pound business, as the brands have become more of a social symbol in the society of today. the survey found that online advertising could extend the reach of an ad by about 10% and increase brand awareness by around 6% (BBC,2003) Fashion plays a very major part of peoples lives. As models become role models, consumers are increasingly growing up with feelings of complete inadequacy attractive people are repeatedly shown in adverts on a daily basis (Body Image, 1998). In fashion adverts directed at both men and women the consumers is seduced, dazzled and offered a visual feast with the central piece, the object of desire being the model (Winkler, 1994). When a study was conducted by Garner (1997) among men and women how fashion models influenced their feelings about th eir appearance, 27% of women said that the always or more often compared themselves to models in magazines and 28% said that they study the shape of the models. Modelling came to epitomise dominant characteristics of western femininity : the importance of appearance; fetishisation of the body; manipulation and moulding of the body; the discipline and labour associated with beauty and body maintenance; the equation of youth with femininity lifestyles (p.70 Craik, 1993). The Advertising Standards Authority said they received only a small handful of complaints on the issue. (BBC, 2009) In advertising magazines is one of the most important media to fashion to advertise their product, this results to a heavy use of magazine among the female consumers. The same applies to reading fashion magazines. Experiments show that magazine photographs of super-thin models produce depression, stress, guilt, shame, insecurity and body-dissatisfaction. (BBC, 2001). The volume of content is growing and it is trapping young people in particular, into unhealthy obsessions about their own bodies (BBC, 2008). The fashion industry works in this way by using adverts that imply that by purchasing the brand the consumer will be buying the social esteem and image of model (Anderson, 2000). Thousands and billions of dollars came to ride on the common determination that these women were the most beautiful and fashionable in the world. It was a conspiracy bent on harnessing them to purely commercials needs (p.149, Howell, 2000) President Douglas McGeorge has said he was particularly concerned about younger vulnerable readers of magazines who are being targeted very heavily (BBC, 2009). Men and women increasingly get their ideas of what they should look like from the imagery they see in the media (BBC, 2008). Highly attractive models act only to perpetuate such views, lowering satisfaction among viewers. (Grogan, 1999). WHERE WOMEN GET THEIR CLOTHING IDEAS: 1999 1998 +/- pts. Already Own and Like 52.7% 50.4% -2.3 Store Displays 47.6% 44.3% -3.3 People I See Regularly 36.1% 38.6% +2.5 Catalogs 35.4% 36.3% +0.9 Family Members 23.7% 20.1% -3.6 Commercials/Ads 28.8% 25.6% -3.2 Fashion Magazines 23.2% 31.9% +8.7 Celebrities 10.0% 14.9% +4.9 Salespeople in Stores 12.4% 13.7% +1.3 Looking at the table above shows a clear view of what people look up to in terms of fashion in the year 2000. The highest in the table is the fashion magazines and then come the celebrities. This gives a very clear view that most of the consumers around the world follow the advertisement to get their fashion sense and these days it has a big effect on the society and their personality. According to Hall-Duncan (1979) claims that the content of fashion advertisements, its just not about clothes but also about the image that brings out the attitude of the person. Therefore in a sense it is both the cause and effect (Patzer, 1985). Thompson et al claims that a significant number of women and girls are exposed to print media. Fashion and beauty magazine availability is immense in society today (Gordon). †¦womens beauty and fashion magazines, which may be among the most influential media formats in perpetuating and reinforcing the socio-cultural preference for thinness and in creating a sense of dissatisfaction with ones own body ( p.49, Harrison and Cantor, 1997). In the society most of the people are influenced by the advertisements. This influence is not directly applicable to most endorsement advertising because there is very little interaction between the endorser and the consumer in the communication process (Kamins, 1989). Followers of socio-cultural theories have accused womens magazines of being propaganda for the desirability if the thin ideal (Wolf, 1990). The medias images and messages become what they see as a soothing voice in a storm of conflict, confrontation and confusion (p.60, Thomsen et al, 2001). By the first decade of the twentieth century, the fashion models of Paris had already established a standard of extreme thinness (Gordon, 2000). Vogue employee wrote that the figure of the time was straighter with less of a bust and hips, more waist and long lean legs (Steele, 1985). The classic and most widely utilized method is the paid-for media advertisement mostly found in fashion magazines and on television. (Brandchannel, 2006). In receiving messages from parents, peers, mass media and other outlets, young people undergo a process of socialization in which they learn how to be consumers in the marketplace. (Lear et al, 2009). The presence and presentation of celebrity role models in pre-adolescent magazines, as well as details regarding the kinds of activities the celebrity participates in, may powerfully affect how girls view their role in todays society (Fabrianesi et al , 2008). 4.4 Celebritys endorsements: Any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken, 1989). Aaker et al (1997) says that An endorser is a source of the information in the advertisements, which plays an important role in persuasive communication. Celebritys endorsements gives out an image that you move a step closer to the idols that the consumers admire by just buying one piece of garment. Celebrity endorsement transfers the personality and status of the celebrity as successful, wealthy, and distinctive directly to the brand. (brandchann Impact of Advertising on Fashion Impact of Advertising on Fashion Introduction: The use of advertising in the fashion industry was started as early as in the Victorian period. Advertising is been very important to the fashion industry as its one way of reaching a mass group of people quickly, as fashion today is very competitive and need speed marketing. Advertising is used from the high street fashion retailers to the low fashion retailers. According to (Dittrich,2000) it has been estimated that an average women sees between 400 to 600 advertisements per day. The fashionable female silhouette has changed with time and the body has been manipulated frequently (Fay and Price 1994) The most famous type of fashion that todays consumers goes for is the fast fashion, where the latest line of clothing from a designer is copied by the fashion retailer especially stores in the middle fashion market like Top Shop, Marks and Spencers, Next , New look, and HM. Thirty-two percent say that they get their clothing ideas from fashion magazines, up from 23% the previous year. ( cottoninc 2000). In fast fashion, sourcing and buying decisions are compounded by the speed by which decisions have to be made and innovation introduced into the store (Bruce Daly 2006). The introduction to the store can be given through a mass media that is advertising, advertising can be done through many ways like television, print, ad radio, an even through word of mouth. According to Aaker et al (1994) advertising is effective to influence consumer attitude. Govoni et al mentioned that the most images of well-liked brands are established by successful advertising. Modern consumers want to be entertained as well as informed through advertising (Lea-Greenwood 2002). In 1996 companies invested more than $1 billion in athletic endorsements deals and approximately $ 10 billion more to advertise and promote the celebrities endorsements (Farrell et al., 2000). A recent estimate indicates that approximately 25 percent of American commercials use celebrity endorses (Shimp, 2003). Celebrity endorsements have become prevalent technique in advertising in the past recent years. The consumers attention is the most important to the retailers. The retailers use advertising as one of the strongest aspect to catch their consumers attention. in Japan, there are roughly 70 percent of Japanese commercials featuring a celebrity (Hus and McDonald, 2002). Advertising also has some negative and positive effects, but in this paper both the aspects will be investigated. Fashion brands and retailers have a long-standing relationship with womens magazines and, more recently, with mens magazines (Mintel 2005). Fast fashion always need more advertising than the high street fashion market, the only way the can reach out to a mass audience is through media and through word of mouth. It has been estimated that the average woman sees between 400 and 600 adverts per day (Dittrich, 2000). Looking particularly at this age group who all read magazines and one of the famous magazines is the heat magazine, where this magazine compares the style and clothing of celebrities and give out the cheaper way to gain the look of the celebrities. In todays star-focused society, it may be more accurate to see celebrities and fashion magazines as a confluence in womens apparel-buying decision process. (Cottoninc 2000). The fast fashion retailers have to choose the right kind of medium to reach the particular target audience and should help the retailers to reach out to their consumers before their competitors reach. But while the celebrity influence does seem to ebb proportionally as a woman ages, it still plays a large role in the wardrobes of average women. According to the Monitor, 26% of women ages 25 to 34, and 24% of women ages 35 to 55, indicated that celebs served as their personal fashion innovators (cottoninc 2004). This fashion for slimness portrayed throughout almost all womens fashion advertising provides a standard for social comparison and respectively heightened dissatisfaction amongst females (Graner Grafinkel, 1980). When confronted with ultra thin models on a regular basis this is bound to have an effect especially when the thin ideal are totally unrealistic of womens bodies today (Hamburg, 2002). Celebrities are our new designers, relates Irenka Jakubiak, editor-in-chief of Accessories Magazine, the trade publication (cottoninc 2004). The Red Carpet is our new runway. Designers are going overboard to make the product, and manufacturers and retailers are turning stuff around fast to have it available for consumers (cottoninc 2004). In early 2001, approximately one in five marketing programs in the UK featured some type of celebrity endorse, with the number closer to one in four programs in the US (Erdogan et al 2001). Research has found that celebrities are more effective than other types of endorsers, such as the professional expert, the co mpany manger, or the typical consumer (Friedman and Friedman, 1979). Glamour editor Jo Elvin said: Kates back with a vengeance. Her maverick approach to fashion is an inspiration.(smh 2008) Advertising also helps to sell new products to the consumers, this way it helps the product to be marketed in the industry quick and efficiently. Advertising also manipulates the consumers using psychology in most of the advertisements. A woman who may not directly point to a celebrity influence in considering her wardrobe is likely to purchase something within a trend that can typically be tied back to a famous person. (Cottoninc 2004). Fighting AIDS is always of great importance, and HM is overwhelmed with the enthusiasm and the commitment from each and every celebrity involved in this collection. Ann-Sofie Johansson, HM head of design. (Onenationmagazine 2009). Celebrities are the trendsetters of our time. And they are wearing clothing and accessories that are more accessible to the general public (visavismag 2009). In the end, celebrities and modern fashion will always be inseparable commodities, and will continue to influence each other, and in turn the American public. (Helium 2009). Researches suggest that endorsers are more effective where there is a fit between the endorsers and the endorsed products. (Till and Busler, 2000). Psychologists Petty and Casioppo suggest the Elaboration Likehood Model (ELM) to explain the process consumers to be persuaded by the advertising message (Shimp, 2003). In a recent report in The Sunday Telegraph, Ashley Sharpe, head of money research at Which? Magazine stated: The danger is that, if the use of a credible celebrity is combined with a message that sounds great but doesnt tell you the full story, then many more people could be taken in, because they trust the person promoting the product. (Fashionunited 2004). 2.1 Aim: To analysis the role of advertising and body image in the context of fashion and manipulation of the consumers. 3.1 Objectives: To analysis the use of advertising in the fashion industry. To analysis the manipulation of consumers through advertisements by the fashion retailers. To analysis the impact of celebrities on fashion and consumers. To analysis the relationship between fashion and body image. 4.1Literature Review: In todays world to market a product and to make to reach the target audience on time is done through advertisements, where media is the one of the medium that can reach out to mass target consumers on time and to make the product famous among the consumers. The medias images and messages become what they see as a soothing voice in a storm of conflict, confrontation and confusion (Thomsen et al, 2001). In aspects to fast fashion the ideology of the retailers should reach the consumers fast, as the fast fashion industry is competitive. The most advanced marketing companies in the country had learned how to adapt their strategies to this new medium and it completely changed their perspectives. (Henry, 1986). Looking at the fashion market like Top Shop, Next, Marks and Spencers, New Look, HM. tend to spend much more than the other fashion retailer like Zara who does not spend anything of advertising for them marketing their products is through their own customers, where they believe word of mouth is more than enough to promote their products, this only helps to reach out a small group of people where the mass consumers wont be aware of their latest collection in store. On the other than the other retailers spend a lot on advertising and try to reach out a mass group of audience and market their product fast, this also helps to see the demand of the particular garment and helps not to over stock. The relatively small size of the UK and its heavy population concentrations allow this system to work particularly well in the interest of the marketers. (Henry, 1986). Through advertising most of the retailing companies develop their marketing strategy. Press advertising was the most important medium for 18 of the top 30 fashion retailer advertisers, and seven spent their entire advertising budget here. (Mintel 2005). Advertising is now taking up the upper hand in the fashion industry, which helps the retailers to market their product. Advertising is mostly done through manipulating the consumers, but the consumer does not like the idea of the retailers manipulating them, this is where psychology advertising comes into place. In this type of advertising is where they use colours, shapes, sounds, etc. The fashion industry works in this way by using adverts that imply by purchasing the brand the consumers will be buying the social esteem and image of model (Anderson et al, 2000). The advertisements are made to catch the consumers attention to the product. Although the highest paid super model of the 1900s were not classed as waifs i.e. Cindy Crawford, designers and magazines chose to use extremely thin models to advertise clothing and beauty products (Gorgan, 1999) Marks and Spencers have one of the biggest advertising budgets in the fashion industry. With an estimated  £ 43.5 million in 2006/07, making up a 12.0% share in the total (Mintel 2007). After Marks and Spencers Next have spent a lot of advertising their products. There are positive and negative aspects of fashion advertising. The positive aspect helps the retailers to boost their income whilst the consumers get the latest range of copied clothing from designer at a lower price which help them to look fashionable and to keep a track of the latest fashion. Employment opportunities for women are steadily improving, meaning that they have ever greater spending power and economic autonomy. They are the most important consumers of clothing and footwear, buying not only for themselves, but also for their children and male partners. Additionally, they enjoy fashion advertising much more than men and more influenced by it. (Mintel 2007). The negative aspect is the fashion is always related to skinny, thin, flawless skin models, this makes the consumers want to look like them. For the retailers is that fashion is one industry which changes season to season and the clothing line as well changes according to the current trend as fashion changes quickly the retailers tend to spend more on advertising very time a new trend is come into fashion. The average woman is estimated to see between 400- 600 adverts per day (Dittrich, 2000). One of the main reasons that advertising is used by the fashion retailers is to grab the attention of the consumers. Most of the fast fashion retailers target audience is from the age group 20 – 40 years. Teenagers ages 16-19 are more inclined to use fashion advertising to get inspiration (38% compared to 18% on average) (Mintel 2007). The retailers keeps in mind the age group and make the advertisements which will be liked by the group and catch their attention. The other way the retailers get the attentions from the consumers is by sale and offers which will make a consumer to walk into the store. On the other than magazine also help the fast fashion retailers to sell the garment faster as they compare the celebrities style which a cheaper alternative to gain the same style by the consumers. Fashion and beauty magazine availability is immense in society today (Gordon, 2000). Fashion maga zines are a great influence on the women of today where they want to look like the celebrities. This influence the consumers mind of being thin and skinny to gain the style of the celebrities. As the amount of media attention devoted to celebrities increase its apparent that celebrities them selves have taken up the position of role models (Weaver 1997). 4.2 Impact of body image: In todays world fast paced society relationships and judgments about others start with outward appearance while personality and inner values play a secondary role (Anderson, 2000). Western society is obsessed with body image. Women want to be thinner; men want to be more muscular (BBC, 2009). The feminist perspective suggest that in the 1960s thinness was equated with independence and success- today it has become the defining criteria for feminine beauty (Kilbourne, 1994). This has become a very important factor among people of today to look good outside, which has a major influence on the daily lifestyle of the person. In any form of interaction or communication verbal cues account for only 7% of total impact, vocals cues for 38%, whilst facial cues account for a major 55% (Mehrabian, 1972). With the face playing a central role in the way we think and feel about both ourselves and others (Partridge, 1996). The world that we live in has move towards to a position which has a big stre ss on appearance. Preoccupation with the visual image if self and others has become an obsession in a society where people continually compare themselves to cultural ideals of beauty (Coward, 1984). Advertisements for women reflected changing notions of the female body shape away from sever body chart to angular boyish shape (p.76, Reekie, 1987). The ideal human body began way back in time, where it started in ancient Greece. Viewing the body as potentially godlike, it was the Greeks who began the custom of treating the body as an aesthetic object (Seid, 1989). The society of today has experienced a big outburst of interest in the human body like never before. Todays consumers are very conscious of what they wear and how they look from the out side. Reekie (1978) suggested that one can look to advertisements for women they reflect the changing ideals of body shape. This has happened as a result of a huge influx of visual images of the human body circulated by the mass media (Shilling, 1997). The body beautiful augmented by fashion advertising in particular has helped lay the foundation for our preoccupation with looks and the priority we give to visual appearance. (Coward, 1984). Physical attractiveness is central to human communication as virtually all communication situations involve visual contact and the more physically a ttractive a person is, the more favourably they are respond to (Patzer, op cit). Other studies consolidate this view and results have indicated that more physically attractive people will have socially exciting and more active lives than less attractive people (Bassili, 1981). Body image is the term widely accepted as internal representation of your own outer appearance: your own unique perception of your body (Thompson et al, 1990). Physical attractiveness trend is a belief that an individual should look good and get better in looking good, which enables physically attractiveness. This enhancement is seen by many as a natural instinct that has been a trait of mankind since ancient times (Fiser and Fiserova). There is a huge money and time spent in cosmetic surgery in todays world, in order to look like their idols. As in the western society there is an increasing importance in looking good physically. The physically attractiveness phenomenon is deeply entrenched in modern society a nd there seems no future development likely to reduce it importance (Patzer, 1985). What is beautiful is good which was said by Dion et al (1972). When a study was taken by Dion et al found that physically attractive people have more socially attractive personality, they have happier marriages and in a whole their lives are happier and more successfully than the one who are less attractive. When women were asked whether they were willing to sacrifice comfort for fashion, 40% said yes, up 3.7% from 1998. (Cottoninc 2000). 4.3The impact of Ideal body image on consumers: In todays consumers society where womens bodies are frequently used to sell products, the ultimate commodity has become the female ideal body image. (Orbach, 1993). Since the 1960s the ideal body for women bodies has become lighter while real bodies have been getting heavier (Garneret al 1980). This has resulted in a bigger difference between the real and the ideal (Benson,1997). As popular models and actress represent current female ideals it is necessary to examine their depictions in the media (Wiseman et a, 1990). Today a lot of consumers are overwhelmed because of media. The effects that advertisements have on the consumers have changed everything from their fashion to their lifestyle in the society. Circulated as the norm, notions about the ideal are culturally specific trends that become mistaken for reality (Gorgan, 1999). The concept of an ideal body is given to us by the society of the world of today. The ideal now dictates a slim- hard – toned body (Benson, 1997). this perfect female body would be between five foot five and five foot eight, long legged, tanned and vigours looking (p.39 Coward, 1984). The media has drilled into the minds of people about the ideal body as being thin, tall and looking good to the society. With links to neurobiology, ideals are viewed as in-built responses guiding men and women in how they want to look and how they want others to look (Anderson, 2000). Overweight people are discriminated against in a culture that is unforgiving and judgmental towards fat people (Anderson, 2000). An ideal body for women has to perfect without any flaws. Achieving the ideal body will take time and money, where people are willing to spend these days. There are people in the society will go all the way out to look perfect and get their ideal body shape, even if the person has to go through many cosmetic surgery. In advertising technology has over taken, today every celebrities and super models have their photo shoot airbrushed before come out in magazines. Many of the images seen are artificially constructed using modern photographic techniques and air brushing (Coward, 1984). Although consumers know that these images are modified to look nice, they still opt for cosmetic surgery. Among other proposals are for success rates to be included on cosmetic surgery adverts and for local sports centres to be made more female friendly by being cleaner and safer (BBC, 2009). There are many celebrities have gone through many cosmetic surgeries and these consumers think this is the ideal body image and start to admired. Airbrushing should be banned in advertisements aimed at children to tackle body image pressure, say the Liberal Democrats. (BBC, 2009). President Douglas McGeorge has said he was particularly concerned about younger vulnerable readers of magazines who are being targeted very heavily (BBC, 2009) Although it is true that women may be entrapped in this system if beauty, the potential to change society and resist cultural pressure is negligible (Bordo, 1997). Smith (1990) believes that women should actively seek to achieve the ideal body in a form of femininity, body dissatisfaction is positive. He also argued that does not take in account the negative consequences of body dissatisfaction, low self-esteem and eating disorders. This also brings in the male to be more dominated and stronger than compared to women, where women are pressured to be thin and weak. The view also ignores the role of the fashion industry, which is said to dictate the ideal (Grogan, 1999). When a study was conducted on teenage boys (Huenemann et al, 1966) found that more than half of the response wanted bigger biceps, bigger chest and bigger shoulder. This should that the even male are now getting conscious about their body image and when it is looked back , the media started about in women and then now in men. A recent study says that cosmetic surgery is increasing rapidly in men. It has also been suggested that male dissatisfaction is more pronounced in older men (Anderson, 2000). Although men have different perspective of body image when compared to women. As women are objectified for the active male gaze, they become objects of desire and all emphasis is place on their bodies. (Mulvey, 1980). 36% women seriously consider plastic surgery cause theyre unhappy with the way they look. 90% of women said their bodies made them feel down and they think about it everyday. 50% of school girls say they are on a diet (BBC, 2001). The focus on womens appearance has got out of hand no-one really has perfect skin, perfect hair and a perfect figure, but women and young girls increasingly feel that nothing less than perfect will do.(BBC,2009). Body image is a persons subjective evaluation of what it means to them to have that body within their culture (Grogan, 1999). 4.3 Effect of celebrity advertising on consumers and society: Tellis, (1998) defined advertising as communication a firms offer to customers by paid media or space. There is no doubt that advertising is a formative influenced within modern Western culture (Pollay, 1986). According to recent research statistics, the number of celebrity advertisements has doubled in the past ten years. (Brandchannel ,2006). There is now little dispute that the content of commercial television is primarily a vehicle to deliver audiences to advertise to advertisers and that glossy magazines serve that same purpose (p.75, Giles, 2003). Studies show that we are significantly more dissatisfied with our own appearance after being shown TV ads featuring exceptionally slim and beautiful people. (BBC, 2001). The effect that advertising has on the consumers of today is very big impact. Studies have also shown that women who read fashion magazines are more likely to have poor body image and suffer from eating disorders (Harrison and Cantor, 1997). By becoming a reference point against which comparisons are made, fashion adverts can greatly effect men and womens body esteem (Grogan, 1999). When a survey conducted by Glamour magazine (1984) found that 75% of women taught that they were fat. The advertisement is based on the marketing strategy of the company, when there is a marketing outcome its generally changing the behaviour of the consumers. The process are classified as cognitive that are know as consumers attitude (Tellis, 2004). According to Foxall (1998) consumers attitude is recognised as a crucial link between the consumers thinks about the products and advertisements and what they buy in the market place. Aker et al (1994) suggested that the attitude concept is an important factor to advertising Management. The attitude of the consumers in one of the important factor for a company to plan their marketing strategy, and to find out the consumers attitude can be done through advertisements. The distortions are characteristic of anorexia and bulimia are some times literally and concretely evident in fashion advertising (p.134, Gordon, 2000). First, studying the advertising efficiency on market outcome is mainly for accountability (Tellis, 2004). Few advertisements depict mundane levels of attractiveness and instead exclusively star the overwhelming handsome and beautiful (Patzer, 1985). It is such models that become icons and set the ideals to which people try to adhere (Ibanga, 2002). As the fashion industry is said to represent the true ideal of beauty models create the standard to which people are to meet (Winkler, 1994). The task of the advertisers is to favourably dispose viewers to his product, his means, by and large, to show a sparkling version of that product in the context of glamorous events. The implication is that if you buy the one, you are on the way to realizing the other- and you should want to (p.26, Goffman, 1979) Fashion has become a global business since the 1960s to dress to have success and the power of the brand has become more significant in the past few years. The fashion advertisings has become a very powerful and a multi-pound business, as the brands have become more of a social symbol in the society of today. the survey found that online advertising could extend the reach of an ad by about 10% and increase brand awareness by around 6% (BBC,2003) Fashion plays a very major part of peoples lives. As models become role models, consumers are increasingly growing up with feelings of complete inadequacy attractive people are repeatedly shown in adverts on a daily basis (Body Image, 1998). In fashion adverts directed at both men and women the consumers is seduced, dazzled and offered a visual feast with the central piece, the object of desire being the model (Winkler, 1994). When a study was conducted by Garner (1997) among men and women how fashion models influenced their feelings about th eir appearance, 27% of women said that the always or more often compared themselves to models in magazines and 28% said that they study the shape of the models. Modelling came to epitomise dominant characteristics of western femininity : the importance of appearance; fetishisation of the body; manipulation and moulding of the body; the discipline and labour associated with beauty and body maintenance; the equation of youth with femininity lifestyles (p.70 Craik, 1993). The Advertising Standards Authority said they received only a small handful of complaints on the issue. (BBC, 2009) In advertising magazines is one of the most important media to fashion to advertise their product, this results to a heavy use of magazine among the female consumers. The same applies to reading fashion magazines. Experiments show that magazine photographs of super-thin models produce depression, stress, guilt, shame, insecurity and body-dissatisfaction. (BBC, 2001). The volume of content is growing and it is trapping young people in particular, into unhealthy obsessions about their own bodies (BBC, 2008). The fashion industry works in this way by using adverts that imply that by purchasing the brand the consumer will be buying the social esteem and image of model (Anderson, 2000). Thousands and billions of dollars came to ride on the common determination that these women were the most beautiful and fashionable in the world. It was a conspiracy bent on harnessing them to purely commercials needs (p.149, Howell, 2000) President Douglas McGeorge has said he was particularly concerned about younger vulnerable readers of magazines who are being targeted very heavily (BBC, 2009). Men and women increasingly get their ideas of what they should look like from the imagery they see in the media (BBC, 2008). Highly attractive models act only to perpetuate such views, lowering satisfaction among viewers. (Grogan, 1999). WHERE WOMEN GET THEIR CLOTHING IDEAS: 1999 1998 +/- pts. Already Own and Like 52.7% 50.4% -2.3 Store Displays 47.6% 44.3% -3.3 People I See Regularly 36.1% 38.6% +2.5 Catalogs 35.4% 36.3% +0.9 Family Members 23.7% 20.1% -3.6 Commercials/Ads 28.8% 25.6% -3.2 Fashion Magazines 23.2% 31.9% +8.7 Celebrities 10.0% 14.9% +4.9 Salespeople in Stores 12.4% 13.7% +1.3 Looking at the table above shows a clear view of what people look up to in terms of fashion in the year 2000. The highest in the table is the fashion magazines and then come the celebrities. This gives a very clear view that most of the consumers around the world follow the advertisement to get their fashion sense and these days it has a big effect on the society and their personality. According to Hall-Duncan (1979) claims that the content of fashion advertisements, its just not about clothes but also about the image that brings out the attitude of the person. Therefore in a sense it is both the cause and effect (Patzer, 1985). Thompson et al claims that a significant number of women and girls are exposed to print media. Fashion and beauty magazine availability is immense in society today (Gordon). †¦womens beauty and fashion magazines, which may be among the most influential media formats in perpetuating and reinforcing the socio-cultural preference for thinness and in creating a sense of dissatisfaction with ones own body ( p.49, Harrison and Cantor, 1997). In the society most of the people are influenced by the advertisements. This influence is not directly applicable to most endorsement advertising because there is very little interaction between the endorser and the consumer in the communication process (Kamins, 1989). Followers of socio-cultural theories have accused womens magazines of being propaganda for the desirability if the thin ideal (Wolf, 1990). The medias images and messages become what they see as a soothing voice in a storm of conflict, confrontation and confusion (p.60, Thomsen et al, 2001). By the first decade of the twentieth century, the fashion models of Paris had already established a standard of extreme thinness (Gordon, 2000). Vogue employee wrote that the figure of the time was straighter with less of a bust and hips, more waist and long lean legs (Steele, 1985). The classic and most widely utilized method is the paid-for media advertisement mostly found in fashion magazines and on television. (Brandchannel, 2006). In receiving messages from parents, peers, mass media and other outlets, young people undergo a process of socialization in which they learn how to be consumers in the marketplace. (Lear et al, 2009). The presence and presentation of celebrity role models in pre-adolescent magazines, as well as details regarding the kinds of activities the celebrity participates in, may powerfully affect how girls view their role in todays society (Fabrianesi et al , 2008). 4.4 Celebritys endorsements: Any individual who enjoys public recognition and who uses this recognition on behalf of a consumer good by appearing with it in an advertisement (McCracken, 1989). Aaker et al (1997) says that An endorser is a source of the information in the advertisements, which plays an important role in persuasive communication. Celebritys endorsements gives out an image that you move a step closer to the idols that the consumers admire by just buying one piece of garment. Celebrity endorsement transfers the personality and status of the celebrity as successful, wealthy, and distinctive directly to the brand. (brandchann

Air Canada

A recent review of any business magazine will often reveal that the secret to the success of many companies lies in their ability to not only generate profit for their stockholders but also in being able to improve the lives of their employees.Over the years, more and more companies are investing in the development of their human resources departments in the hopes of taking advantage of this trend.There are some companies, however, who have long taken advantage of this by making sure that not only are their employees well motivated, driven and well compensated but that these factors show well in the customer service that is provided.   One of these companies is Air Canada.As Canada’s largest and oldest airline, this company has a rich history as both an outstanding employer and airline.   Founded in 1937, Air Canada has grown immensely since then is now the world’s 11th largest passenger airline in relation to fleet size (Milton 2005).The flag carrier for Canada, Ai r Canada, has consistently held the record for having the best service in the world and this was affirmed on January 19, 2007 when it received the award for Best Airline in North America (Milton 2005).This founding member of the Star Alliance has time and again prevailed over the challenges and tests that the growing aviation market has presented over the years (Milton 2005).   This is a testament to the good management practices and upstanding record that this company has developed in its 70 year history.Air Canada has always emphasized that Flight Attendants are ambassadors of the customer experience onboard each Air Canada flight (Milton 2005).Air Canada has also prided itself in the fact that the flight attendants of Air Canada play many roles such as safety professional, caregiver and service provider.   These are the qualities which set Air Canada flight attendants apart from any other flight attendants from other airlines (Milton 2005).The fact that they are considered as Ambassadors of the customer experience does more than just add a dignified label to flight attendants but rather emphasizes the fact that customer experience also comes first aboard any Air Canada flight.Perks and salary not included, Air Canada also differs from other airlines in that the employee advancement program offers a more stable future than others.Air Canada prides itself in improving the quality of all in its employ including Flight Attendants (Milton 2005).   These are the reasons why Air Canada is far superior to other airlines for anyone wanting to pursue a career as a flight attendant.On a personal level, I feel that I have developed the skills to become an Air Canada flight attendant because I am a hard working and driven individual.   All my past working experiences have equipped me to dealing with all sorts of people.   Being the frontline at a Pizza Hut is not exactly a dream job for most people.Yet for some reason I found that it was in this type of enviro nment that I was able to thrive and flourish.   The going gets tough when the people start coming in at rush hour.   To make matters worse, no other people in the world are more irritable than hungry people.   I also pay close attention to detail and make sure that I get things done.The job gets done faster and more efficiently as and when the objectives are clear, the strategies acceptable, and the resources are available such as in this company. My language proficiencies are also quite excellent as I am fluent in both English and Spanish.I am very methodical with my work.   I take charge and own up to my responsibilities.   With regard to co-workers and subordinates, I am very demanding, meticulous but I also believe that I am fair and considerate.   These character traits and abilities are the main reason why I believe that I have the necessary skills to become an Air Canada flight attendant.The rich history that Air Canada has had in the aviation industry is truly so mething to behold.   To be voted the best Airline in North America is no easy feat and I am quite sure that the outstanding performance of the flight attendants had much to do with that fact.As such, to be part of that elite core of flight attendants who have made a mark in the aviation industry, would constitute the fulfillment of one of my career goals.References:Milton, Robert (2005) Straight from the top; the truth about Air Canada Greystone Books, [c]2004 266 p.

Development and Globalisation Essay

GDP- Gross Domestic Product – the value of all the goods and services produced in a country in a year, in $US, usually expressed as â€Å"per capita† (per person). PPP (purchasing power parity)* figures are more useful. *Adjusted for loss of living GNP- The total value of goods and services produced by one country in a year, plus all net income earned from overseas sources, in $US. HDI- Human Development Index: It is a summary composite index that measures a country’s average achievements in three basic aspects of human development: health, knowledge, and a decent standard of living. Life Expectancy †¢ Literacy Rate †¢ Standard of Living (measured in GDP per capita) It gives a more complete picture of development of a country than GDP alone as it considers social factors and not just economic factors. Development Continuum Originally there were three groupings that made up the development continuum, they were: †¢ First World (those developed countr ies that had a democratic government and a strong economy) †¢ Second World (communist countries) †¢ Third World (UN developed countries) However as time has gone on newer economies have started to develop caused by different development patterns and speeds. The Development gap †¢ The gap between rich and poor countries †¢ Most commonly, the gap is thought of in terms of income/economics †¢ It also social, environmental and even political aspects There was a suggested North/South divide originating from the Brandt report in 1980, where the north accounted for 80% of GDP but only 20% of the population; however this too requires some artistic licence and is a very general way of dividing countries. There are more accurate ways of grouping countries as listed below and as countries move through the development continuum countries pass from one category to another: †¢ Developed (MDC’s – the most well developed countries eg. UK) †¢ Developing (Countries which are undergoing development – arguably they all are. Eg. Malaysia) †¢ LDC’s (Least Developed Countries – eg. Ethiopia) †¢ NIC’s (Newly Industrialised Countries – Have just finished development (10 years or so) Eg. China) †¢ RIC’s (Recently Industrialised Countries – Further behind than the NIC’s eg. Dubai) Centrally Planned Economies (The few remaining communist countries eg. North Korea) †¢ Oil Rich Countries (Countries rich in oil eg. Saudi Arabia) Causes for the Development Gap †¢ Colonialisation – colonial powers took resources from poorer countries †¢ Price of commodities is often controlled by TNCs ensurin g high profits for MEDC firms and low prices paid to LEDC producers – Fair trade set up in reaction to this. †¢ LEDCs are now primary producers – producing low cost commodities, e. g. bananas †¢ Primary commodities have fallen in price, or stayed steady, while commodities they need has increased, e. . oil What is preventing the Development gap from closing? †¢ Many LEDCs main industry is as primary producers – generally low profit †¢ Internatnioal trade dominated by TNCs †¢ Rapid The Asian Tigers Who or what are the Asian Tigers? Asian economies that have progressed economically at such substantial rates that have come to rival the earning capacity and quality of living of those being first-world countries – Taiwan, Hong Kong, Singapore and South Korea. Globalisation Globalisation: The increased inter-connection in the world’s economic, cultural and political systems. Positives |Negatives | |Allowed the movement of people m ore easily |Uncontrolled migration | |Increased foreign trade |Inequality in wealth | |More access to food, services, healthcare etc. ll over the world |Heavy environmental cost | | |Loss of countries individual cultures, global cutters | †¢ Globalisation began in the 19th century as there was the beginning of movement of people and goods; †¢ Increase in independence †¢ Increase in trade as well as the spread of industry †¢ Beginning of Trans National Corporations. Globalisation continued in the 20th century and was shaped by a number of factors including: 1. Emergence of free markets (capitalist economy) 2. Deregulation of world financial markets 3. The establishment of the General Agreements of Tariffs and Trade (GATT) –the WTO which sought to lower trade barriers. 4. The emergence of trade blocs 5. The establishment of the IMF and the World Bank 6. Development of global marketing and the continuing rise of TNCs. Flows †¢ Capital o ICT allows cheap, reliable and almost instantaneous communication o Allows sharing information o Allows transfer of capital o Allows Marketing around the world †¢ Labour o Improved transport for people Size of air craft o Low cost airlines o High speed rail links o Specialised workers- doctors, ICT etc. o Unskilled workers †¢ Products and services o Integrated networks o Goods handling o Computing logistics o Container revolution o Improved transport for goods o Global marketing, the world as one market and create products that fit various regional market places e. g. coca-cola and McDon alds Patterns of production, distribution and consumption Manufacturing has gone from developed countries to lower wage economies. This is known as the GLOBAL SHIFT, which is brought about by FDI by TNCs. Many LEDC’S have benefited from the transfer of technology which has meant these countries can raise their productivity without raising their wages to the level of the developed countries. This has lead to the de-industrialisation of richer countries and the focus on tertiary and quaternary industry. There has also been outsourcing of service operations, such as call centres, Mumbai, this extends the influence on a global scale also the employment costs are a lot lower even though there is a highly educated workforce. Positive and negatives of the global shift Positives for MEDCs |Negatives for MEDCs | |Movement of polluting industries away from their country |Could lead to wide spread unemployment | |Growth in LEDC’s may lead to demand for exports from MEDCs |Loss of skills | |Cheaper imports can keep the cost of living down benefiting the retail |Negative multiplier effect | |sector |Large gap between skilled and unskilled workers who may experience | |Labour market f lexibility and efficiency |extreme redeployment differences | |Development of new technologies leading to investment |deindustrialisation of some areas, such as the North | |Help to reduce inflation | | |Positives for LEDC’s and NIC’s |Negatives for LEDC’s | |Development of new industries Rapid urbanisation and rural-urban migration | |Increased employment |Westernised approach to economy | |Helps to reduce development gap |Increased environmental damage die to polluting industries | |Increased FDI and investment which can lead to improved services such as |Exploitation of labour | |infrastructure, health care and education |Disruptive social impacts | |Increased exports helps BoPs, and increases income and GDP |Over-dependant on one industry | |New technologies |Destabilises food supplies, less agriculture | | |Health and safety issues because of tax legislation | Patterns of production and processes In manufacturing there has been a global shift of marketing f rom MDC’s to LDC’s. This leads to Foreign Direct Investment (FDI) by the TNC’s. This has led to the de-industrialization of MDC’s but means that they can also be more productive due to the transfer of technology. Newly Industrialised Countries (NIC’s) First Phase †¢ Asian Tigers (Taiwan, South Korea, Hong Kong and Singapore) started to appear in the 1960’s, as developed countries looked at their less developed neighbours †¢ Rapid industrialisation due to the increased spread of TNC’s. †¢ They share similar characteristics which allowed for such industrialisation: – Large populations – Well educated populations – Culture – work ethic – Less rigid laws on health and safety – Government support through loans and grants Rely less on foreign support and set up their own businesses such as the Chaebols in South Korea, comprising of companies such as Samsung, LG and Hyundai †¢ This has now become a multinational an d located in several different countries. Second Phase †¢ As wage prices increased in the primary TNC’s (The Asian Tigers) †¢ Countries that could offer lower wage prices such as Malaysia, Indonesia, The Philippines and Thailand, Mexico and Brazil Third Phase †¢ China and India, Turkey, South Africa and the Philippines †¢ China has seen the fastest rate of economic growth of any country †¢ India’s industry is heavily based around services – which accounted for 50% of its total GDP. †¢ New TNCs are now being set up in Indian such as Infosys, Bangalore. Positives of India |Constraints of India | |Large English speaking population |Other countries are beginning to compete | |Costs 37% lower than China |Negative reaction in MEDCs | |Costs 17% lower than Malaysia |Rising wage rates | |Professional salaries ? of UK and USA |High cost of training | |Low telecommunication costs |Negative impacts on quality | |24 hour working to fit with tim e differences |Corruption and bankruptcy | |Huge labor force for labor intensive jobs e. g. all centers |Command economy, governemtn speding on subsidies rather than investment | |IT college graduates, 2 million/year |Infrastructure beyond major cities is poor | | |Literacy only 61% | Growth in the 21st Century Emerging Economies account for 70% of the global population, countries including the BRICs (Brazil, Russia India and China) as well as countries such as the UAE and South Africa. The increase has been due to: †¢ Raise living standards †¢ Increase opportunities for the population †¢ Increase FDI †¢ Become more of a world player with market to an international standard Countries at very low levels of economic development LDCs †¢ The countries were outlined by the United Nations and of the top 50 33 are in Sub-Saharan Africa. They are defined by the following: – Low incomes ($800 GDP per capita over 3 years) Human resource weakness, nutrition, hea lth, education and literacy – Economic vulnerability shown by signs of dependency on one industry †¢ Many of them suffer from widespread conflict, disease, geographical disadvantages, urbanisation and fast urban growth (demographically speaking). Quality of Life †¢ Most of the population cannot afford basic immunities †¢ Resources of such countries are not evenly distributed. †¢ Attempts to reduce poverty †¢ High population growth rate means that numbers living in extreme poverty are increasing. †¢ Many of these countries depend on FDI Debt †¢ From the 1970’s onwards some countries found themselves in a debt crisis because the borrowed large amounts from the developed world. For many countries at low levels of economic development that breaking free of poverty can only ever be a vision. †¢ There are certain policies being put in place by the IMF and the World Bank to help free the HIPCs †¢ They have provided debt relief and interest free loans. †¢ SAPs Structural adjustment programmes o Government spending cutbacks to fund debt repayments o Mexico was the first country o 3 main aims:- ? Promote exports- integration and liberalisation ? Reduce government spending- privatisation and cutting costs ? Encourage foreign investment o Both intermediate and poor countries have had SAPs applied o Some success but SAPs could make matters worse especially for the poorest people because:- Loss of credit and subsidies from the government ? Food production falling ? Devaluation of currency leads to dramatic rises in prices ? Less spending on health and education by government †¢ Another scheme, the Multilateral Debt Relief Initiative (MDRI) †¢ Aimed to cancel the debt of the HIPCs †¢ per capita income US$380 a year or less would be eligible for MDRI debt relief from the IMF’s resources Social Problems †¢ Lack of income, healthcare, education, sanitation etc. †¢ The Millennium Deve lopment Goals were set up specifically to help countries out of the cycle of poverty however they don’t look well to be completed in 2015 (the original target). Global, Social and Economic Groupings Trade Bloc is a group of nations who have joined to stimulate trade and benefit from economic cooperation. The countries involved agree to free trade between them but impose tariffs on goods from countries outside the bloc. Made for a variety of reasons: †¢ To further socio-economic development †¢ To increase alliances and trade †¢ To allow free movement †¢ To prevent war Types of groupings include:- †¢ Free trade areas- tariffs and quotas are reduced on goods between members and restrictions are put in place for goods coming in to the area e. g. NAFTA †¢ Customs unions- tariff on imports from outside the group e. g. Mercosur †¢ Common Markets- like customs unions but with greater freedom of movement of labour and capital, e. g. previously EU, current example East African Common Market †¢ Economic Unions-all of the above as well as member states are also required to adopt common polices in areas such as agriculture (CAP) fisheries, transport, pollution (Kyoto agreement), industry, energy and regional development e. g. EU Positives and negatives of trade blocs |Positives |Negatives | |Greater chance of peace between member nations. Having to share economic resources | |Faster and smoother economic development |Many countries will have to pay a large sum of money regularly to be in a | |Trade barriers removed |trade bloc | |Higher standard of living. |Elites can hold a disproportionate amount of power. | |Certain areas of a national economy can be supported – eg. Agriculture |If one courty falls in to ecomic crisis the rest of the member states are | |through the CAP. |effected | | People seeking work can move between member states– EU. Non-member states badly affected, lack of trade | |Possibility of a common currency- Euro |Loss of sovereignty | |Greater political influence |Loss of some finacail controls e. g. European central bank | |If countries become indebted member states can help bail out, Greece, | | |Ireland. | | Aspects of globalisation TNCs Transnational Corporations are companies that operate in over two countries – usually having their research and headquarters in the country of origin and locating the manufacturing plants overseas. As an organisation becomes more global, regional R&D and headquarters will develop. TNCs can be split in to three different groups according to what industry they are:- †¢ Resource extraction o Mining, gas extraction and oil producing o ExxonMobil, Royal Dutch Shell and BP †¢ Manufacturing o High-tech ? Computers, microelectronics, pharmaceuticals ? Hewlett Packard, GlaxoSmithKline and AstraZeneca o Consumer goods ? Motor vehicles, televisions and other electrical goods Many of these are assembly industries ? Ford, General Motors, BMW, Sony o Mass produced consumer goods ? Cigarettes, drinks, breakfast cereals, cosmetics and toiletries ? Coca-Cola, Kelloggs, Unilever, Heinz †¢ Service operations o Banking/insurance, advertising, freight transport, hotel chains, fast f ood outlets, retailers o Barclays, AXA, McDonalds and Tesco Growth of TNCs Why do TNCs expand to different countries? †¢ Larger populations with cheaper Labour Costs †¢ Better government policies such as grants, lower taxes and subsidies †¢ Less stringent rules on employment and pollution †¢ Fewer restrictions due to trade barriers †¢ Greater supply of raw materials To take advantage of trade within trade blocs †¢ Allowing them to grow thereby achieving economies of scale, reducing costs, finance new investment and compete in global markets †¢ Allow them to set up in markets that they want to sell in †¢ To acquire geographical flexibility so that they can shift resources and production between locations to maximise profits To serve a global market, TNCs may globalise production by:- †¢ Produce for the market in which the plant is situated †¢ Use one plant to produce for a number of countries †¢ Use integrated production †¢ Source parts in places where they assemble their products close to the market, GLOCALISATION Impacts of TNCs on a host country Positive Impacts |Negative Impacts | |Employment |Competition | |Injection of capital into the economy |Adverse effects on local companies which might not be as efficient | |More disposable income will create a demand for more |Environmental concerns | |housing, transport and local services |Less stringent pollution laws so more pollution allowed | |Multiplier Effect |Labour exploitation | |Investment by a TNC can trigger more employment by |Exploit cheap, flexiable, non-unionised labour forces in developing countries | |cumulative causation bringing greater wealth to the |Minimum age | |area |Urbanisation | |New working methods |Factories built in major urban centres leads to younger workers migration to the area | |Transfer of technology will create a more skilled |Negative effects on the rural areas | |workforce. |Removal of capital | |JIT developed |Prof it back to country of origin | |Escape Tariffs/trade barriers e. g. Nissan in |Outside decision making | |Sunderland |Plans effecting the development of plants are made in host country to boost profitability | |To take advantage of government incentives, subsides,|Little consiereation for local people | |EPZs (export processing zones) etc. |Dependancy on TNC | |Lower costs – especially labor |More westerniese approach to life | |To reach foreign markets more effectively | | |To exploit mineral and other resources | | Development Issues within the world Trade vs Aid Trade is deemed as the more sustainable path out of the two to economic development as it helps to promote the growth in the volume and value of goods, leading to jobs and greater incomes, some of this income will help to generate domestic demand leading to investment and the multiplier effect. This will also lead to rising living standards and gaining of skills by local people However it relies on three factors: †¢ Adoption of capitalism †¢ Economic growth to ‘trickle don’ so everyone benefits †¢ Promotion of free trade This is a similar path that was taken by the MDC’s and more recently the NIC’s. However many of these NIC’s had largely stable governments, a well educated workforce and they employed protectionist policies to stimulate growth e. g. tariffs and import quotas. However there are still problems with trade for a variety of reasons: They cannot be competitive in world markets as they need to invest in equipment, technology and training to make business productive and then infrastructure etc. †¢ Schemes like the CAP undercut mainly agriculturally based LDCs †¢ Wealth does not always trickle down to those who need it, like aid. †¢ Debts mean they would have to make millions before they made profit and due to the cuts imposed by the World Bank and IMF it often means there are public spending cuts especially on health care and education Aid can be either: 1. Bilateral – from government to government. 2. Multilateral – Where collective governments donate to an organisation (such as the World bank) who the distributes it to suffering countries. 3. Voluntary – Where small NGOs send workers to help. NGOs such as Oxfam Aid is not always in the form of money sometimes it is in the form of goods or technical assistance. There are also several ways aid can be delivered †¢ Tied aid o Will limit the power of nations and may eventually cause resentment †¢ Short-term aid o Usually following an emergency such as earthquakes or tsunamis o This can be help with rescue operations o Medical supplies, shelter, food and water †¢ Long-term development projects o Improving food availability and farming methods o Helping to provide improved shelter o Health care and education o Developing better livelihoods and improving income o CAFOD, Catholic Agency For Overseas Development †¢ Top down aid Throwing’ money at a country and allowing them to get on with it. o It usually focuses on large scale, expensive projects which are unsuitable for the local community. , such as HEP projects e. g. Nepal o It often doesn’t go to the people who need it most o Usually tied †¢ Bottom up o Mor e helpful to the local community however still bring their problems. o Small scale o Treat the individuals as individuals with creativity and intelligence o They work with people to create what the community most needs and supply the materials o They can undercut local business. However aid is not perfect and may critics say:- †¢ Aid does not reach those who need it the most, it is kept at the top by the government Aid is often used ineffectively on large scale, expensive projects which are often left uncompleted †¢ Sometimes countries don’t even have the correct infrastructure to use the aid effectively †¢ Dependency can be created which is often not sustainable is aid is a large proportion of national income †¢ Tied aid comes with strings attached, in some cases with every dollar given in aid $7 is given in return Economic vs. Environmental Sustainability ‘Development that meets the needs of today without compromising the needs of tomorrow’ This would be achieved by †¢ Human potential being improved †¢ The environment is used and managed to supply people on a long-term basis †¢ Implies social justice as well as long term environmental sustainability The capacity of the environment to provide resources and absorb increasing levels of pollution is the critical threshold controlling how far population can increase and economies expand sustainably The Rio Earth summit set out the following points for each aspect of sustainability. Environmental Principles: †¢ People should be at the centre of concerns †¢ States have the right to exploit their own environment but should not damage that of others †¢ Protecting the environment is integral to development †¢ People should be informed of projections for the future as well as the current environmental situation †¢ There should be environmental legislation and standards within states †¢ Laws should be enacted regarding liability for pol lution †¢ The movement of substances that are harmful to others should be restricted States should warn neighbours of any environmental unease †¢ EIAs (Environmental Impact Assessments) should be carried out on all major plans Economic Principles: †¢ The right to development must be fulfilled so as to meet development and environmental needs of present and future generations †¢ States should work together to eradicate poverty in order to decrease disparities in living standards †¢ The needs of the poorest countries should be put first †¢ Unsustainable production and consumption patterns should be eliminated †¢ States should cooperate to restore the earth’s ecosystem †¢ Scientific information and innovative technologies should be transferred to improve understanding States should support an open economic system, with few trade barriers and tariffs †¢ National authorities should endeavour to promote the internationalism of environmen tal costs, taking into account that the polluter should pay For anything to be effective it must strike the right balance between the three core principles – economic, social and environmental. Sustainable tourism myth or reality? As tourism is an increasingly expanding, billion dollar industry, it has increasingly been looked at to become more sustainable. Up until now it has followed this pattern: †¢ The environment attracts tourists for its attractions †¢ The money spent should help to maintain these features However as tourist flows increase it starts to do more harm than good, particularly to small areas which can’t deal with the massive influx, this can lead to the destruction of farm land to golf courses, and destroying natural habitats such as coral reefs, destroyed by water sports ,e. g. Philippines . Sustainable tourism ‘seeks not to destroy what it sets out to explore’ It attempts to make sure that: †¢ It preserves natural resources for future generations. †¢ The local communities and their culture are recognised as the most important in the tourist sector †¢ Economic benefits of tourism must partly go to those who are local to the area †¢ Everything is guided by the wishes of local people and communities At the Rio Earth Summit an environmental checklist was drawn up to show how the tourism industry could become more sustainable, these included: †¢ Waste minimisation, land use, re-use and recycling Energy efficiency, conservation and m anagement †¢ Transport †¢ Water (freshwater and waste) †¢ Land use planning and management †¢ Involvement of all stakeholders in the planning †¢ Involvement of staff, customers and communities in environmental issues Sustainable tourism is an industry committed to making a low impact on the natural environment and local culture, while helping to generate income and employment for local people. Tourist can help by: †¢ Being informed of the local culture, politics and economy †¢ Respecting local cultures †¢ Contributing to local cultures and tolerance †¢ Supporting local businesses and traditional values †¢ Use the least amount of local resources Ecotourism Is one of the fastest growing sectors within tourism †¢ An economic process by which rare and beautiful ecosystems and cultural attractions are marketed internationally to attract tourists †¢ Planning and management is an important factor o Capacity is managed o Encourages conservation, by educating local people and tourists o Focuses on the environment †¢ Criticised for being ‘egotourism’ in some cases. Sustainable ecotourism must : o Have a limit to the number of visitors to sustain the environment o Set up and run in cooperation with local people Case Studies Measuring Development- HDI HDI = 1/3 (life expectancy index) + 1/3 (education index)+ 1/3 (GDP index) Advantages |Disadvantages | |Political competitiveness |Does not take into account poverty | |More factors and reliable ones |PPP values change very quickly, inaccurate or misleading. | |Easy and cheap to collect data |Little sense of income distribution | |Sign of welfare in the future, improving health and education, |Quality of life does not seem to be that closely linked | |supply-side policies which can indicate the long-term patterns of AS |Doesn’t take account like war or political oppression. | |curve |Based on normative economics. |The success of government p olicy |Other measures such as access to internet might be more important. | |Easily comparable to other countries |Changes over time – ceteris paribus | Comparing 2 countries, Nepal and the UK |Measure |UK |Nepal | |HDI |28/187 |157/187 | |Life expectancy |80. |68. 8 | |Expected years of schooling |16. 1 |8. 8 | |GNI per capita, PPP adjusted |33,296 |1,160 | |Pop. Living on $1. 25 per day % |0 |78. 1 | |Population with at least secondary education , female : |1. 015 |0. 48 | |male | | | |Sustainability, Change in forest area (%) |9. 8 |-24. 5 | |% of population living in urban areas |79. 8 |19. 2 | Sub Saharan Africa – A country at low levels of economic development †¢ Sub Saharan Africa contains many countries with the lowest HDI ranking in the world. †¢ Many hold backs from development including war, disease, famine, debt, lack of infrastructure etc. They need large amounts of FDI that will not leave them in a worse situation than when they started. †¢ HDI, lowest ranked are Mali, Sierra Leone and Niger (all with an average of 0. 33) †¢ The top, ranked 119th and 120th in the world were Gabon and South Africa. TNC-Barbie in Taiwan -global shift of manufacturing †¢ Barbie, an American company Mattel , was produced a Japan in 1959 †¢ Has seen a global shift in manufacturing since it started. †¢ They moved to Taiwan in the 1960’s to take advantage of cheap labour costs and increased scale of production. †¢ At its peak Taiwan alone made more than 50% of all Barbie dolls in the world. †¢ Within 20 years Taiwan’s incomes began to rise which then led to Barbie moving somewhere else Mattel opened its first factory in China in 1987, wage prices were much lower and gradually production was mover there. †¢ Today Mattel produces Barbie’s in China, Indonesia and Malaysia – taking advantage of the second stage of NICs, the Tiger Cubs. Taiwan has further benefited from globalisation, as it is now home to companies that manufacture most computers and MP3 players such as BenQ TNC-Coca Cola – Global Marketing †¢ A company with a single product in which minor elements are tweaked for a different market. †¢ The company uses the same formulas, one with sugar and one with Corn Syrup for different markets. †¢ The bottle design is the same and is regulated depending on different countries standards. The only countries in the world that do not sell Coca Cola are Iceland, North Korea, and Antarctica. †¢ It is not sold in Iceland because all bottles must be the same shape as there is a large recycling project and coca cola refuse to change the shape of their bottle as it is part of their brand †¢ Labour costs may be lower in some countries, especially LEDC countries. Low labour costs = higher profits †¢ Legislation on working conditions, workers’ rights, health and safety, and the environment may be less strict in some countries. Relaxed legislation = lower overheads = more profit. †¢ Some countries may try to encourage multinationals to invest in their countries by offering lower tax rates and financial incentives. More favourable taxation = lower overheads = more profits. Unilever †¢ Unilever is a very widespread (branches in 90 countries) – include most countries in N ; S America, Europe, Australasia, Russia, China, India, a number of African countries = MEDCs, NICs and some LEDCs †¢ Sales also very widespread: A lot of African countries (many LEDCs and LLEDCs), Greenland, some countries which were part of the old Soviet Union (Kazakhstan, Uzbekistan, Turkmenistan, Tajikstan) †¢ Very few countries where Unilever has no presence Asian Tiger- South Korea †¢ 13th largest economy †¢ Strong government †¢ Highly skilled and motivated workforce †¢ Large amounts of trade with a positive BoP Problems †¢ Move to democracy takes time †¢ Large aging population †¢ Unequal pay for women and poor working conditions for 52 hours a week †¢ Pollution with poor construction in infrastructure, roads and sewage BRIC economies It is said that these countries will be dominant by 2050, these brick economies, don’t just rely on export industries like the 1st generation NIC’s. Brazil emerging economy †¢ President Lula, who began in 2003 took the economy out of dept and is now a stable country †¢ Generates $1. 5 trillion GDP/year †¢ Reliable power, with sustainable sources, such as hydro electric power, sugar cane, bio fuels, sustainable in own Tupi oil fields FDI is the 4th largest in the world, $45 billion each year †¢ Very easy to communicate with †¢ Emerging middle class †¢ Good highly skilled work force However there are some areas where Brazil will need to improve if its development is to continue being sustainable:- â € ¢ Will become a increasingly aging population †¢ Destruction of the rainforest †¢ Increasing cost of manufacturing †¢ Poor infrastructure †¢ Unequal society †¢ Slow national growth †¢ Increased crime and corruption †¢ 25% of the population live in poverty, favelas, Sao Paulo China – Third Stage of NIC Development †¢ In 1978 China began to follow the path of development of the Asian Tigers through an export driven road to development. Communist control was relaxed to allow this to do so. †¢ Foreign investment and joint ventures was encouraged. †¢ The internationalisation of the Chinese economy is also called the GUANXI NETWORK referring to the connections that exist between Chinese people and companies scattered all around the world †¢ In order to attract foreign industry in SE China, 14 ‘open’ coastal cities and 5 Special Economic Zones were set up. †¢ They allow tax grants which would give more prof it and were in favourable locations, geographically, to work. †¢ Labour was 80% cheaper in these areas †¢ There was a large amount of FDI for the bulk of the 21st Century †¢ Receiving up to $50 million per year. In 2006 they received $63 billion, their highest recorded figure. †¢ Sustained growth of up to 10% – one of the highest in the world. †¢ China became part of the WTO meaning that trade went from just over $250 billion to just under $1 trillion, almost quadrupling as they got greater access to global markets. Problems: †¢ Dramatic gap between rich and poor †¢ Huge rural/urban migration has left thousands in the countryside isolated as well as a decrease in agriculture meaning that poverty and famine has spread. †¢ Deterioration of environment and use of natural resources †¢ Dependent on the economy of the buyer †¢ Putting other populations before their own †¢ Development of two Chinas, east and west Chongqing –largest urban industrial city in the south-western part of china, 32 million people – A major focus on migration and of the western development policy – South of the Gorges Dam – Population grows by 500,000 people a year – Chicago of china – Heavy industry dominates – Large pollution problems, air sewage – 2000 tonnes of waste a day India – NIC driven by services Many people think that the Indian service sector is driven by call centres; however its involvement in the service sector it accounts for 50% of GDP as there is a high population of skilled workers. Software and IT companies have been attracted to India because:- †¢ Second-largest English speaking human resource in the world Investment friendly and supportive government politics †¢ Good infrastructure for power, transport and data communication †¢ World’s third largest brain bank †¢ Stable democratic with over 50 year of inde pendence †¢ Large market size †¢ Investment and tax incentives for exports in certain sectors such as electronics, telecom, software and R;D The UK and USA has fuelled the service sector in India as Indians migrated to gain skills which they would take back to their home country. Such skills were used to set up companies like Infosys which is now a TNC based in Bangalore. Bangalore has become the centre of ICT because:- †¢ First state to set up engineering collages First t set up a technology university †¢ Grants and tax incentives for the IT industry †¢ 1991 software technology park was built †¢ Now over 6 technology parks Infosys one of the largest software companies in India †¢ Founded in 1981 and had first foreign clients by 1987 †¢ Overseas offices in Boston and in MK †¢ 455 of workforce based in Bangalore Growth in the 21st century Dubai – An RIC †¢ Dubai is located in the United Arab Emirates †¢ Globally central as it is half way between London and Sigapore †¢ Fastest growing economy †¢ Its economy boomed upon the discovery of oil in the 1960’s. †¢ There was a growth of 300% between 1968 and 1975. †¢ There was rapid immigration. To make itself less dependent on oil, Dubai invested in new infrastructure which attracted FDI and now Dubai’s economy is heavily based around tourism as well as banking †¢ Oil and Gas currently occupy less than 5%. †¢ Borrowed money to fund many projects †¢ One of the country’s most effected by 2008 market crash, massive inflation problems †¢ Chinese and Indian banks brought a lot of Dubai’s debts Social problems †¢ Vast numbers of immigrants †¢ Poor working conditions, 20 hour day in some cases, because people took out loans to get to Dubai, and now due to little work they have to work all hours to get as much money as they can †¢ Live in poor conditions in tent cities out of the actu al city †¢ Passports are taken by employers on arrival Environmental problems †¢ High electricity cost and rising carbon emissions Sewage because there is not enough water, as the city is in a desert, water is more expensive than oil †¢ Nuclear waste †¢ Adu Dhabi, must look to help out by providing solar energy Countries facing low levels of economic development Nepal– †¢ One of the poorest countries in the world – 157/177 in HDI †¢ Its GDP per capita is also one of the lowest at $1,049 †¢ Shortage of energy, supplies †¢ Little money to spend on development †¢ Due to relief little transport infrastructure, remote communities †¢ Mainly subsistence farming and tourism †¢ 78. 1% of the population live on less than $1. 25 a day †¢ Little education and health care provisions HIPC- Tanzania †¢ 40% of the population live below the poverty line †¢ HDI is ranked 152 Life expectancy is 58. 2 †¢ Annual GDP per capita is $800 †¢ 75% of employment is based on agriculture †¢ Literacy rate is 64% Reasons for poverty †¢ Topography and climatic conditions – limit cultivated crops to only 4% of the land area †¢ Industry- mainly limited to agricultural products and light consumer goods †¢ Dependant on agriculture which accounts for half of GDP †¢ Products include coffee, cotton, tea, tobacco, cashews and sisal which are highly competitive and have falling prices †¢ Tourism is booming especially in the National Parks Attempts to help †¢ Government: a national poverty eradicated strategy- to reduce abject poverty 50% by 2010 The World Bank, IMF and bilateral donors have provided funds to rehabilitate Tanzania’s deteriorated economic infrastructure †¢ Structural Adjustment Policies, SAP’s, poverty reduction strategy papers †¢ â€Å"Vision 2025† programme set the goals of a high quality of livelihood by year 2025; peac e, stability and unity; a well educated society and a competitive economy based on sustainable growth and equity †¢ UN MDGs The results of attempts to help Tanzania †¢ Not improved quality of life †¢ Income and welfare indicators fell †¢ Even more dependent on foreign aid †¢ Increased environmental damage †¢ Pick up in industrial practice including gold and natural gas †¢ Increase private sector growth Recent debt relief in Tanzania One of the poorest countries in Africa even though it had some of its international debt written off †¢ $3 billion will be discounted over the next 20 years †¢ Tanzania’s total international borrowings of more than $7 billion Socio-Economic Groupings NAFTA †¢ USA, Canada, Mexico †¢ Set up in 1994 †¢ Aims – To eliminate trade tariffs between the three countries, pushed by the establishment of other socio-economic groupings like the EU. Mexico saw it as the best option as it had buil t up debt in previous years. |Pros |Cons | |Trade between member countries tripled in the first 13 years. Canada has been affected by the US increase | |Increased employment in the USA as manufacturing grew |Some US jobs have been lost as the plants have moved to Mexico | |Mexico got increased FDI as other countries wanted to locate inside |Dumping in Mexico | |NAFTA. |Mexico is being exploited because o less rigid pollution laws which | | |affects surrounding countries | EU 27 member states, set up in 1957 as the European Economic Community Aims – †¢ Promote social and economic progress amongst member states †¢ Have more government influence †¢ Introduce EU citizenship †¢ Prevent war †¢ Create better laws Positive impacts |Negative impacts | |Group activity on waste, pollution control and climate change |Loss of sovereignty over some decisions | |Common currency |Greece and Spain situation | |Large labour market due to ease of movement |Sharing fishi ng grounds | |CAP support |Power of elite | |Peace in EU |Small areas fell isolated | Unilever– TNC †¢ Set up in 1890 by William Hesker Lever, who owned a soap company which revolutionised Victorian hygiene †¢ Unilever was formed by the merger of the Dutch margarine producer ‘Margarine Unie’ as they had the common raw material palm oil †¢ In 1937 Lipton tea was acquired and in 1957 birds eye joined Colworth House facility near Sharnbrook continued research efforts in food preservation, animal nutrition and health problems associated with toothpaste, shampoo and other personal products. It is one of several R ; D centres †¢ In 2008, the companies had over 300 manufacturing sites in more than 100 countries across every continent †¢ Unilever employs over 170,000 people and has annual company revenue of over $50 billion in 2007. †¢ Unilever has had problems with animal testing, child labour and deforestation due to the use of palm oil CA FOD- long term and short term aid Aims are to promote long-term development; respond to emergencies; raise public awareness of the causes of poverty; speak out on behalf of poor communities; and promote social justice Long-term aid †¢ Improving food availability and farming methods †¢ Helping to provide improved shelter †¢ Health care and education †¢ Developing better livelihoods and improving income Short-term aid †¢ Provide aid to disaster stricken countries †¢ Set up temporary shelters for those left homeless Democratic Republic of Congo (Kinshasa ; Goma), Ethiopia, Kenya Swaziland – top Down Aid †¢ Top down development is usually difficult as often hundreds of thousands of people’s needs need to be ‘catered for’ and it is difficult to satisfy everyone. †¢ The ideal goal is a communist state with a ‘one size fits all’ approach. †¢ Swaziland is in Southern Africa. It is ranked very low in the world for human development. †¢ Many individual concerns to deal with which weakened the country, AID’s, famine and drought. †¢ The number of orphans was increasing as the death rate did correspondingly. à ¢â‚¬ ¢ Several branches of the United Nations which were trying to help them such as the UN food programme, and a many NGO’s. †¢ They were distributing imported food to hundreds of thousands of people which was ultimately a good thing. †¢ However, the farmers of the local area were not able to sell the produce that they grew †¢ Therefore not able to take advantage of the wet season that blessed them. †¢ There was also a state of dependency Difficult to draw the line between those who should receive aid and those who did not. Other top down aid include large scale projects such as building dams and HEP stations like those proposed in Nepal, this can lead to the loss of valuable farm land and can limit the water downstream, leading to widespread droughts. Nepal, FoST – Bottom Up Aid †¢ Foundation of sustainable technologies †¢ Treats people as individuals with ideas and creativity. †¢ Due to the lack of energy in Nepal and the reliance on wood, leading to deforestation and help problems in the home due to the amounts of smoke †¢ Subsides the purchase of products including solar cookers and no-smoke indoor cookers Educates people on how to make briquettes, which produce no smoke from waste, to prevent deforestation †¢ However there are limited resources to make the solar cookers and there for they are limited and rely on donations †¢ Not every community has the money to buy the equipment or has access to finding out about products †¢ Not sustainable in the long run if the donations stop Overall top down and bottom up development are both ways of narrowing the development gap, the gap between rich and poor countries. Both, like anything in life have pros and cons however the possible way forward is through micro-credit loans which give people the credit and respect that they deserve. This creates a successful and sustainable way of life and helps to lift individuals out of poverty. Economic vs. Environmental Sustainability Holes bay |Economic |Environmental | |High unemployment especially in Hamworthy gate |Ramsar and SSSI sites rare birds and invertebrates | |30 Ha of unused land, power station site |2nd largest natural harbor in the world | |Poor access to Poole town centre | | The construction of the twin sails bridge Environment:- direct flow around the support pillars of the bridge causing deposition behind the pillars, †¢ May affect the tidal flats within holes bay, and Poole harbour †¢ Sediment becoming trapped within Holes bay building up the marshes †¢ Tidal salt marshes, to the build up of humus causing the build up of peat rising the level of the and creating fresh water marshes within Holes bay †¢ Poole harbours marshes could decrease in size †¢ Destroying many habitats for bird’s invertebrates and plants alike. Economi c:- †¢ Greatly over budget with its total cost coming in at over ? 37m †¢ Engineers spotted a large crack in the surface of the bridge making it unsuitable for use The development of the power station site will also cause an increase drain on local recourses such as schools and the area might not be able to cope, †¢ Increase the flow of traffic over the bridges. †¢ Not enough jobs generated in the area †¢ Increased population density and increased unemployment. †¢ Increased crime Brazil- Curitiba †¢ 2 million people in the population †¢ city wide service to recycle products †¢ Recycling and garbage system prevent waste issues, organic and nonorganic, with two different trucks for different types of rubbish †¢ The rubbish is sorted and distributed and reused this means that 2/3 of rubbish is recycled †¢ It also creates more jobs to help reduce unemployment Jaime Lerner, was an architect and later became mayor and designed the cur rent layout of Curitiba †¢ The city has changed from being an agricultural area to a more industrial city †¢ Flood problems have also been solved by building the parks on the flood plains and making artificial river banks around them this also prevents squatting and slums appearing in the parks †¢ Is home to many multinational industries, such as Nissan, Renault, Volkswagen, Audi, Volvo, HSBC, Siemens, ExxonMobil, Electrolux and Kraft Foods †¢ The per capita income for the city is $ 17,977 Sustainable tourism Nepal – concentrated in certain areas such as Khumbu, Chitwan National Park, Annapurna National Park and the Sagarmartha National Park, The number of tourists increasing from 526,705 in 2007 to 710,547 in 2011, – Actions must be taken in order to preserve Nepal. – Problems with air pollution from the transport of tourists and fires getting trapped in the valleys due to the high mountains – Increased demand for water and food suppl ies, taking away goods from the locals – The same tracks are used by all of the tourists, erosion and destabilises the soil – Increased the risk of landslides. – Some tourists are also not respectful of people’s culture and the wildlife – Poor sewage disposal – Khumbu region problem with the amount of waste generated by trekking teams – 500kg per team all waste must be taken down the mountain rubbish there have been clean up operations carried out during training and acclimatisation time of people who wish to climb Mt. Everest †¢ for people to pay the Sherpa’s to carry down peoples rubbish †¢ Nepalese Government has begun charging deposits on tourists and are only returned if groups bring down their own rubbish †¢ Nepalese Government that they should limit the number of tourists †¢ Dismissed as it has been concluded that this will bring more harm than good, by limiting one of the country’s biggest ind ustries they could face increased widespread poverty. Kenya, Kigio Tourism is the 2nd largest contributor of GNP after agriculture. One example of where agriculture has been replaced by tourism is Kigio. Kigio Wildlife Conservancy is a 3,500-acre protected Conservancy †¢ 2 hours drive from Nairobi. †¢ Originally a cattle ranch, sold by the family to the local community who after a few years decided to forgo cattle ranching in favour of wildlife conservation. †¢ The community now receives a regular income †¢ Conservancy fee each guest pays helps towards the maintenance of the conservancy. †¢ Wide ranging habitats †¢ Many wild animals, honey badger, and over 200 bird species †¢ Protecting nearly 100 species of indigenous plant species which are being destroyed outside the conservancy. †¢ The Conservancy is at the forefront of ecotourism in the Rift Valley lakes area. Guests are encouraged to participate in low impact activities – o guided nature/bird walks, o cycling, fishing o Day or night game drives are conducted in open-sided 4Ãâ€"4 vehicles †¢ Lodges work closely with the local community and support several enterprises, schools and an orphanage. †¢ Guests can visit a group of widows that craft sisal baskets, a group that makes jewellery from recycled paper and a rug weaving factory. †¢ The lodges only sell what is made by the community and pay a fair price. †¢ A large percentage of the price is donated to the community fund. †¢ Every year, children from the local community and schools are invited to participate in ecotourism workshops †¢ To protect and improve their environment.