Critical Analysis of Efficiency Market Hypothesis Essay

In this essay, firstly, the Efficient Market Hypothesis (EMH) is given an appraisal in relation to random walk, as well as its definition, revealing theories in context of empirical evidence. A brief explanation of the 3 forms of EMH is highlighted alongside a brief description of its tests for validity. The main focus of discussion is whether or not Technical & Fundamental Analysis can determine abnormal returns by investors strategically using a set of information to formulate buying and selling decisions to beat the efficient market. (Graphs and sets of equations may be applied). Following general empirical studies, the theory of Efficient Market typically asserts that, it would be impossible to consistently outperform the market by means of technical & fundamental analysis, consequently, in the light of this assertion, technical, fundamental and other anomalies are revealed that may suggest some levels of market inefficiencies. Finally, a conclusion, subjectively underlining the relevant points expressed above, putting to perspective facts conveyed through the topic of critical discussion. Appraisal of the Efficient Market Hypothesis and Random Walk The efficient market hypothesis is a financial theory widely accepted by most academic financial economists. It was generally believed that securities markets were extremely efficient in reflecting information about individual stocks and  about the stock market as a whole. The accepted view was that when information arises, the news spreads very quickly and is incorporated into the prices of securities without delay. Thus, when the term ‘efficient market’ was introduced into the economics literature in the 1960s , it was defined as a market in which prices at any time â€Å"fully reflect† and ‘adjusts rapidly to new available information’ (Eugene F. Fama, 1970, p 383.). In the context of this hypothesis, â€Å"efficient† empirically, means that the market is capable of quickly digesting new information on the economy, an industry, or the value of an enterprise and accurately impounding it into securities prices. In such markets, participants can expect to earn no more, nor less, than a fair return for the risks undertaken, hence failing to provide abnormal returns. Random Walk, is a Theory closely associated with the efficient market hypothesis, was originally created by Louis Bachelier (1900), and developed by Kendall, in 1950s. Kendall (1953) found that stock and commodity prices follow a random walk. Random walk varies with regard to the time parameter. According to capital markets theory, the expected return from a security is primarily a function of its risk. The price of the security reflects the present value of its expected future cash flows, which incorporates many factors such as volatility, liquidity, and risk of bankruptcy. However, while prices are rationally based, changes in prices are expected to be random and unpredictable, because new information, by its very nature, is unpredictable. Therefore stock prices are said to follow a Random Walk. Versions of the Efficiency Market Hypothesis and tests Following the concept of information, as stated in the above paragraph, it is useful to distinguish among three versions of the EMH, Fama (1970) identified as: the weak, semi-strong, and strong forms of the hypothesis. These versions differ by their notions of what is meant by the term â€Å"all available information.† The tests for each form, summarized in brief, empirically shows evidence in favor of EMH: According to Fama (1970), Weak form efficiency claims that all past prices of a stock are reflected in today’s stock price. Therefore, technical analysis cannot be used to predict and beat a market. The Weak Form Tests. The test of the weak form of the EMH is generally taken to comprise of; an autocorrelation test, a runs test and  filter rule test. An autocorrelation test investigates whether security returns are related through time. On the other, a runs test, for example, measures the likelihood that a series of two variables is a random occurrence. A filter rule (or trading test) is a trading rule regarding the actions to be taken when shares rise or fall in value by x%. Filter rules should not work if markets are weak form efficient. Overall, the tests highlighted, statistically tests for independence, to establish the weak-form holds, thereby invalidating strategic rules for technical analysis, to obtain abnormal profits. Following the weak-form EMH, is the Semi-Strong form efficiency in which Fama (1970) states that security prices reflect all publicly available information. The Semi-Strong Test. Tests for the semi-strong, significantly and reveals Event Study. The first event study was undertaken by Fama, Fisher, Jensen and Roll (1969), though the first to be published was by Ball and Brown (1968). An event test analyzes the security both before and after an event, such as earnings announcements, stock splits and analyst’s recommendations. The idea behind the event test is that an investor will not be able to reap an above average return by trading, on an event including the Fundamental Analysis strategy.

Music Unit 2 Text Essay Example

Music Unit 2 Text Essay Example Music Unit 2 Text Essay Music Unit 2 Text Essay Music Appreciation Text Questions Please complete the following questions. It is important that you use full sentences and present the questions and answers when you submit your work. Submit the work as a file attachment. This means you complete all work in a word processing document (e. g. , Microsoft Word) and attach the file using the dropbox tool. Use the Unit 2: Text Questions dropbox basket. The answers to the Review Critical Thinking questions are worth 10 points. Review Questions 1. What is popular music? 2. What theme does pop music typically use in the lyrics? Describe one pop song that uses this theme. Why is this theme such a popular one? 3. What is disco? What are the characteristics of this music? 4. What was the British Invasion? Which famous group was a part of this movement? What impact did the group have on pop music? 5. What is a boy band? What are some characteristics of a boy band? Critical Thinking Questions 1. Some of the music in the 1960s was used to protest social and political issues. Is music still used as a form of protest? Why or why not? 2. One of the changes in the music industry during the twentieth century was the increasing commercialization of music. Has music become too commercial? Why or why not? Do you think that artists are creating music for money or for other reasons today? 3. How has technology impacted pop music? Describe at least three technological changes that impacted and shaped pop music today or in the past. 4. Pop music has often been seen as youth music. Why do you think pop music appeals to younger individuals? How has the industry promoted this idea? 5. What is one popular pop artist or group (from today or from the past)? Why does this person/group’s music fit into the pop genre? Why do you think the person/group was successful with their music?

7 Types of Punctuation Errors

7 Types of Punctuation Errors 7 Types of Punctuation Errors 7 Types of Punctuation Errors By Mark Nichol Each of the following sentences below demonstrates a specific type of error involving internal punctuation, usually involving a problem with a comma. Discussion and revision following each example explains and illustrates correct use of punctuation in the sentence. 1. Misplaced Punctuation This approach requires an effective model risk governance program, and crucially, validation of the model by an independent party. A comma is needed after program only if what follows is an independent clause. In this case, the rest of the sentence is merely the rest of an extended compound predicate. However, crucially is a parenthetical, and a comma is required before as well as after it: â€Å"This approach requires an effective model risk governance program and, crucially, validation of the model by an independent party.† 2. Missing Punctuation Specifically her portfolio did not include the required number of samples. An adverbial introduction must be set off from the main clause by a comma: â€Å"Specifically, her portfolio did not include the required number of samples.† 3. Unpaired Punctuation The survey found increasing demand for customer experiences that are difficult, if not impossible to deliver with legacy systems. Related to the misplaced and missing examples above, this sentence is flawed in that the parenthetical phrase â€Å"if not impossible† is set off only in front, not behind as well: â€Å"The survey found increasing demand for customer experiences that are difficult, if not impossible, to deliver with legacy systems.† 4. Extraneous Punctuation Knowing which sensitive data need to be highly protected, where this information sits within the organization, and what security mechanisms need to be applied, are all key considerations for a sound information security risk assessment. A comma should not precede a verb unless it is the second of two commas bracketing a parenthetical phrase: â€Å"Knowing which sensitive data need to be highly protected, where this information sits within the organization, and what security mechanisms need to be applied are all key considerations for a sound information security risk assessment.† 5. Excessive Punctuation Consumers have the right to speak out or complain, and to seek compensation- payment or a replacement item- or redress- have a wrong corrected. Excessive punctuation often occurs when a sentence is cluttered with commas, and a sentence should be recast or divided into two or more sentences if more than a few commas appear (and semicolons are not included to assist in sentence organization). But when dashes are used to set off parenthetical phrases, no more than one pair should be used, because readers may have difficulty at first recognizing which parts of the sentence are being bracketed. Either revise the sentence so that only one pair of dashes is needed, or replace dashes with parentheses, which because the open and close parentheses are shaped differently, clearly indicate what is contained within them: â€Å"Consumers have the right to speak out or complain and to seek compensation (payment or a replacement item) or redress (have a wrong corrected).† (Note, too, that the sole comma is superfluous.) 6. Inconsistent Punctuation Last year a man agreed to give up his drone system and promise not to fly a drone for three years. . . . Last month, the FAA announced there are now more registered drone operators in the United States than there are registered manned aircraft. If an optional punctuation mark is used in one sentence in a piece of content, it should be used in any similarly constructed sentence; see the consistent inclusion of a comma after the short introductory phrase in both sentences: â€Å"Last year, a man agreed to give up his drone system and promise not to fly a drone for three years. . . . Last month, the FAA announced there are now more registered drone operators in the United States than there are registered manned aircraft.† (Note that â€Å"last year† and â€Å"last† month serve the same adverbial function as specifically in the second example, but such brief introductory phrases do not require punctuation, though for consistency, it is recommended.) 7. Incorrect Punctuation One person had to be airlifted off the site after the structure collapsed Monday night, the rest were treated at an on-site medical facility. Because this sentence consists of two independent clauses, they must be separated by a semicolon rather than a mere comma: â€Å"One person had to be airlifted off the site after the structure collapsed Monday night; the rest were treated at an on-site medical facility.† (A period is also appropriate, but the close relationship of the two clauses allows for a semicolon.) Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Punctuation category, check our popular posts, or choose a related post below:Dialogue Dos and Don'tsAbstract Nouns from AdjectivesA Yes-and-No Answer About Hyphenating Phrases

Industry Readiness for Going Global 1 Assignment

Industry Readiness for Going Global 1 - Assignment Example According to the Ft reporters, the United States of America auto mobile industry went from a boom to a low after the 2007/2008 economic crisis (Ft Reporters 2013). This is so since the automobiles sales from the United States of America industry fell to a record less than nine million from a high 16 million in 2005. However, after economic policies were adopted by the government the industry is slowly getting back to its feet (Lorenzo 2011). As one can see in both 2009 and 2012 China is the highest producer of vehicles in the international market. It is then followed by Japan. One notices that in the year 2009 the number of vehicles produced was low (OICA (2013). This can be attributed to the financial crisis of 2007/2008 which affected almost all players in the industry. However one notices that the USA and Germany were affected the most concluding that the crisis affected the industry most in Europe and the USA. However by looking at the statistics in 2012, the industry in the United States is recovering and shows promise of increasing in its sales and production in the futures. From the charts above, it is within reason that the key companies in the industry in the automobile industry are Volkswagen, Toyota, Hyundai and GM. However, there are other companies rising fast. Such companies include Nissan, ford and KIA. Key competitors as derived from the statistics include China, USA, Japan and Germany. Compared to its competitors, the USA automobile has various factors that give the industry an upper hand when competing with other industries in the international market. Government support is heavy in the USA unlike in other countries since the government offers loans to automobile companies. For instance, companies such as ford were lifted out of the economic crisis as a result of incentives from the government. Another advantage the USA has is that most of the citizens are loyal to home brands thus a huge

The Three Strategic Business Units of the Company Essay

The Three Strategic Business Units of the Company - Essay Example Arising men Jacob, Douglas, and Abraham formed a partnership called Feingold Brothers & Company in Baltimore that offered banking and financial services to merchants, individuals, and institutions. They were conservative in their approach hence the firm remained unaffected by the 1929 depression. The company had also obtained memberships of NYSE, NASD, ASE and the CBO well after the 1929 banking debacle and therefore was largely unaffected by it. But that was when they decided to move out of general banking and concentrate on their core activity of merchant banking only. By then they had expanded and established offices in New York, and other East Coast cities. By the eighties the firm had expanded substantially through mergers and takeovers over the years, and in 1987 it changed its name to Feigngold Investments Inc., and decided to move out of their conservative mould after the stock market crash. The period 1999-2000 was spectacular for Feigngold but by then they needed to upgrade in networking to cope with increasing and expanding business in order to serve its widespread customers through highly dispersed offices in highly competitive markets. Despite there being approval from the owners for such an investment in networking as well as technology there appears to be strong resistance from managerial and supervisory staff who believe that the existing systems, that are outsourced and managed by a third party, are capable of delivering the desired information. The company had expanded on the back of a robust national economy that had become global by now. It had neglected to follow the best practices in management and had continued to rely on its traditional strength of personalized service. As a result there were structural weaknesses that showed up during periods of high stress and strain in a particularly competitive and volatile financial environment. It has major problems in three main areas that need addressing quickly.

Uptake of heavy metals (arsenic and lead) by earthworms in a Literature review

Uptake of heavy metals (arsenic and lead) by earthworms in a contaminated soils - Literature review Example Despite healthy soil formed in the absence of earthworms, their presence within the soil indicates the soil is productive. As a result of the tedious activities by earthworms their importance for the soil community includes enhancing mixing and aggregation of soil (Weeks et al 2004, p.820). While looking for food, Weeks et al. (2004, p.821) observe that, earthworms engage in a task of moving to the surface and back down, ingesting particles of soil and other organic substances in their way. Further, earthworms excrete the substances it takes in to the soil, and the excreted matter by the earthworms, are nutrient-dense casts. The result in this sense, involves a process that shift the top layer of soil down to the lower strata, and dragging the bottom soil to the upper surface. When earthworms burrow through the dust, this enhances the soil structure by loosening the soil that are compact and establish numerous tunnels under the surface. The importance of such tunnels includes enhancing soil porosity and creating pathways that allows the intake of water and air into the soil. The process further facilitates absorption and the retention of water, and minimizing run offs and soil erosion (Weeks et al 2004, p.822). ... the soil surface and in the process, mix the organic material as a result of tearing the organic materials and depositing these materials deep within the soil. Their cast also deposits on the soils surface thus, contributing to the soil content. In addition, they enhance bacteria and fungi activity in the soil that consumes organic materials and transforming these materials to humus. Earthworms largely, forms part of the food web within the soil, which presents a large community, composed of organism that plays a significant role in soil formation. In the same note, soil food web encompasses soil-inhabiting organisms that include algae, insects, plants, reptiles, fungi and small mammals. The organisms, impacts on soil formation through burrowing, breaking down materials (both animal and plant materials) that is significant in adding organic matter when they die. Earthworms often provide a food source to the soil community and their cast is important in facilitating the survival of ot her organisms within the soil community. They assist in terms of facilitation the provision of oxygen, water and nutrition for other organisms (Hobbelen et al 2006, p.644). The ecological groups of earthworms and their feeding behaviors According to ecology studies on soils by Nahmani, Hodson and Black (2007, p.402), that focuses on linkages between fauna and microbes, identifies earthworms, as a significant soil invertebrate within the ecosystem and contributes, to biomass and activity which operate as ecosystem engineers. Nahmani et al (2007, p.402) agree that, soil consists of various microorganisms and forms part of earthworm’s diet. In this regard, three ecological groups related to earthworms and their feeding behaviors, exists in literature. They include epigeic, which is

Ethical Theories for Outsourcing

Ethical Theories for Outsourcing This paper analyses each key reasons for outsourcing through three ethical theories, such as Utilitarianism theory, Kantianism Theory and Social contact theory. Outsourcing compromise the safety and quality of products. When a company gets outsourced, the people who are culturally removed from the parent company have to transfer the knowledge to the new employees those who come to the board. Can these services meet quality expectations? In some cases it does not satisfy the full requirements. There may be a communication gap when you transfer your knowledge to the third party. May be you have lack of interest to train the third party people, but you are forced to do it. In this case honesty in communication and doing the right duties make the attention of ethical issues. This is against the Freedom of Speech. There are language and cultural barriers while communicating with the overseas workers. The overseas workers communicate with Americans in broken and incomprehensible English. As a result, the companies have to compromise on the quality of the product. Indirectly if we see, now days because of job outsourcing in a peek, overseas workers are good in communication and very talented. They can easi ly understand the situation and come up with good ideas, provide the quality and safety of the product. End users get benefited from the outcome of the result. For Utilitarian analysis outsourcing is good. Company outsources due to highly skilled, educated labor with cheaper price in foreign countries. Sometimes foreign countries use very cheap quality raw material and less manual effort to finish the project for their profit. For an example, China use lead paint in toys. From the outcomes the users as well as the company suffer .This is not good. Utilitarianism Theory Analysis: The services or projects which are outsourcing are the Intellectual Property of the company. The company has the right to protect their intellectual property. For that need company has to enforce proper planning strategy on what services should be outsourced and what services should not. If there will be lack of proper planning, then may be chances of Identity Theft and the company goes through loses. In opposite way, if there is a proper planning, then company can focus on core services and outsource the ancillary duties and at the end provides a good quality product to the users. All the users and company get benefited, no one get harm. In conclusion by providing proper training to the replacement employees, good communication to new employees, proper planning strategy of the company before outsourcing, then users get benefited and satisfied at the end with the quality and safety product. So according to Utilitarianism, outsourcing is good and no need to compromise the quality and safety of the product. Kantian Theory Analysis: If there is drop in quality and safety of the outsourced product, the community and the users are going to suffer. Company use overseas workers at cheaper rate to accomplish the goal, the quality of the product drops. Overseas workers use as a means to an end for the company benefit. Most of the previous workers who used to work before are getting laid off. Company treated them with disrespect. So outsourcing is not good. Social Contract Theory Analysis: Company has the right to give a good quality product to the community. If there is drop in quality, the rational begins are not get benefited to the maximum level. So according to social contract theory, outsourcing is not good, as it drops the quality. It affects the global economy. People in the developed countries like US and UK tend to blame outsourcing for their job losses, low paying jobs. But offshore outsourcing is an inevitable phenomenon that has many viable benefits to the world economy. Global outsourcing helps in creating newer international markets, promotes global citizenship, helps recognize global talent and in a larger sense helps in the development of economics of all the countries taking part in it. People are more worried about job loses rather than realizing new jobs are getting created. Outsourcing is an evolution that is revolutionizing our societies and laying the foundation for a better world economy. Utilitarianism Theory Analysis: Companies exploit the cheap labor of offshore countries and cut down on man power costs, reduce operational costs and capital expenditure. The overseas workers dont get greatest happiness but at the end the global economy rises, all the people are getting benefited. So outsourcing is good. Kantian Theory Analysis: Though outsourcing increases global economy, the companies exploit the workers and infrastructure facilities available in the third world countries and use as a means to an end. So outsourcing is not good. Social Contract Theory Analysis: All the rational begins are getting benefited through outsourcing as it increases the global economy. So for the world benefits, outsourcing is good. An employer outsources some work to escape taxes and regulations. By outsourcing certain tasks, the companies can save money based on taxes they pay in the offshore countries. Developed countries like America and Europe have more corporate tax rate than other countries. The U.S. tax code allows American based companies to get the tax exemptions for that percentage of tax already paid to foreign countries, which is very less compared to U.S. Some companies even move some tasks to the small offshore island, such as Caymans, where they can create tax free account and avoid paying taxes. The company uses the materials and resources of the foreign country and that helps in building small local companies and foreign country generate more tax revenues from those small local companies. In overall the outsourced company end up with paying less tax or sometimes get the tax exemption to the foreign country, because it increases the economy of the foreign country and create more jobs in that country. The U.S. companies only give tax based on their operation ac count income in U.S. Utilitarianism Theory Analysis: According to Utilitarian point of view, the companies move certain tasks to the offshore countries for tax benefits. They help other foreign countries to grow and create jobs there and also give tax to the countries based on the profit in those countries. The tax rate at foreign country is very low compared to the parent country. The parent country gets less tax revenue where as the foreign countries and the company both are getting benefited with this. So outsourcing is good. Kantian Theory Analysis: The companies create more jobs in the overseas for tax incentives. They do not invest money in their country and do not create jobs for their society. According to Kant, this is morally wrong, the companies has some responsibilities for the country. They cheat to the country and give less tax based on profit in the parent country not the profit through overseas. Social Contract Theory Analysis: The outsourced companies give lower foreign tax rate to the foreign countries as compared to U.S. and deduct those foreign taxes on their American tax return. The outsourced company creates jobs overseas and give tax based on profit earned in the overseas, as a result the overseas countries get financially benefited. As a moral rule, if all the U.S. based companies move their business overseas for their tax benefit, then economy of the U.S. will drop, it is not right. So outsourcing is not good. Honesty in communications is at the ethical core of trustworthiness. Another problem in outsourcing is transfer of knowledge. How honestly the parent employees who are culturally removed from the company, will transfer the knowledge to the foreign employees. The offshore countries have the responsibilities to give back the quality and safety product to the company; how much honesty will exist in this process, is a question? Honest in relationship between the developed country and the foreign country is a key constraint for better and successful business. Utilitarianism Theory Analysis: According to Utilitarianism Theory, if a work is done with honest, it will give satisfaction at the end. When two countries are working together with handshaking, one should have trust with another and they should do work with honesty. If that criterion meets, then both the countries get benefited. Outsourcing is good. Kantian Theory Analysis: An outsourced company gets profit with the help of other foreign country; simultaneously foreign country also gets profit with the outsourced work. Both should do work with honest and trust. If one country use other as a means to an end for its benefit, then it is wrong. If there is honesty, outsourcing is good. Social Contract Theory Analysis: As a moral rule, honesty in communication required for better business and makes a better word. So in outsourcing, honesty is a key factor. Skilled and talent professionals work for other nation. Developed country like U.S. moves some tasks to foreign countries to utilize skilled and talented workers at lower rates compared to U.S. talented workers that will lead to an increase in productivity and save costs in a major way. Large number of engineers is graduating every year from India and China compared to U.S. As a result there is an oversupply of talented workers from overseas. But these foreign countries sometimes can not produce quality and challenging jobs for them at a good rate, where they get their satisfaction jobs from other developed country at a feasible rate. They leave their own countries because they are not absorbed by the economies of these developing countries and work for other nation. Outsourcing offers opportunities for talented individuals to stay at own country and work for the other country. Utilitarianism Theory Analysis: According to Utilitarianism Theory, if talented and skilled workers stay at own country and work for other country, the workers get satisfaction with their job as well as the economy of their own country gets better. At the end, even though workers drain brain for other nation, own nation also get benefited. Skilled workers work for other nation is good. Kantian Theory Analysis: Developed countries give job to the talent and skill workers overseas for their benefit in place of own talent workers. According to Kant, this is wrong because developed countries workers use as a means to an end. Social Contract Theory Analysis: Talent and skill workers get opportunities and build their career and company also gets benefited. It does not matter where these workers drain brain, but global economy increases. Restricted access to secured data for maintaining the privacy and confidentiality. Outsourced company should concentrate on core business and need specialized attention while moving some operations to the third party company. The core concern of outsourcing is to maintain the confidentiality, integrity, security and privacy of the company business. It is wise if outsourcing partner does not have adequate information security measures. As a practice of ethical rules and privacy policies of the organizations like non-disclosure of trade secrets and non-disclosure contracts with staff, third party service providers and visitors should sign the disclaimer contract. So the outsourcer feels safe to do the business with a partner who is miles away. Everyone has right to protect his intellectual property. Privacy is a prudential right. From the point of view of rule utilitarianism, social contract theory and Kantianism, it is necessary to maintain some privacy and confidentiality information to the third party company. It increases the productivity of the services. By employing more numbers of skilled and talented manpower at lower cost, company boost up their productivity. Companies produce better product at low price which increases the demand of the product and also increases revenue of consumers. In order to produce more products, workers must be hired, that results in more job creations. Companies operate on an around the clock, 24/7 production cycle, provides customer service 24 hours; which further adding productivity. By outsourcing it is possible for projects to be shuttled between multiple sites, allowing around the clock and get the tasks done in time. For an example, a team in Palo Alto spends its day to find bugs in a piece of software, then hand the bug reports to Bangalore team of India that spends its day fixing the bugs. Outsource results into better customer satisfaction and increased profitability. If we see in other way, infrastructure in less developed countries can make business more difficult, which hampers the productivi ty. Utilitarianism Theory Analysis: According to Utilitarianism, customer get good product in less price, which enhances total happiness of the customer. It also creates new jobs. So outsourcing increases the productivity. Kantian Theory Analysis: By employing skilled manpower at lower cost, company boost up productivity which is morally wrong according to Kantianism theory, because company uses skilled manpower as means to an end. Social Contract Theory Analysis: Outsourcing process increases productivity of the company and also provides customer satisfaction. According to social contact theory outsourcing is good. Conditions when the outsourced get outsourced: Outsourcing Company outsources jobs to offshore countries to get the product within a much reduced cost. To get maximum revenue benefit, offshore countries outsource some of their job areas to third offshore country to reduce their operating costs. The outsourced jobs in the offshore countries get outsourced to another offshore country because of reducing the cost of infra structure, cost of raw materials, and cost of labor. Most of the times offshore country keeps the core functionality of the outsourced jobs and outsources their non-core jobs to third offshore country for the utilization of available skilled labors. Also the offshore country outsources their jobs to get the benefit out of lower corporate tax rate of 3rd offshore country. Sometimes Supply of demands can be a factor to get the jobs outsourced from one offshore country to another offshore country. For example, developed country like America outsources mostly IT jobs to India to get a better quality product at a lower price. India outsources certain tasks like software testing, software documentation of those IT services to other offshore country like Philippines and other south Asian countries to get the tasks complete within very low labor cost. Sometimes Indian corporations outsource job to developing nations to meet the need for workers who speak the varieties of languages that global clients demand. Utilitarianism Theory Analysis: The business of the company spread globally. Three countries get benefited and also skilled and talented workers get good job. Sometimes own country skilled workers do not get job, this is a negative consequences. Managing the tasks is difficult as it spread to country to country. The confidential information are less secure, this gives negative impact. Total benefits is more than total harms. So outsourced get outsourced is a good phenomenon. Kantian Theory Analysis: The developed country like America outsource job to developing country like India for their benefit. Similarly India outsources some task to third developing country like Philippines. According Kantian theory, America uses India as a means to an end. India uses Philippines as a means to an end. This is not a good idea. Social Contract Theory Analysis: The businesses of the company get distributed around the world. Higher quality product is sold at the best possible price due to competition among possible providers of the same product. This is beneficial for the society. Poorer countries gain employment, creating jobs around the world reduces unrest and leads to more stability. For everyones mutual benefit, outsourced get outsource is good. Conclusion: Outsourcing has tremendous impact on economic growth, national security, balancing between Jobs vs. the workforce. These impacts are both positive and negative. When the business owners and BPO consultants move jobs overseas, they claim that their actions have a clear net positive. In contrast certain group of people and the community of outsourced country are adversely affected through outsourcing. It is very difficult to determine who are the ones affected from outsourcing. The jobs as well as the capital resource are transferred from developed to developing countries. As a result unemployment rate increases in the parent country and in most cases the qualified skilled labors in their own domestic land are forced out of jobs. Also people in their own domestic land are losing interest in education because of lack of skilled jobs originating in their own country. Based on various arguments and discussions from different sources, outsourcing also enhances the global economy of the domestic country and creates new jobs in the country. If we consider each key reasons of outsourcing through ethical theories, some key reasons have more moral value than the others. So it is very hard to decide whether outsourcing is good or bad. Recommendation: Though outsourcing loses some jobs in developed country, it also creates some new high-tech jobs in developed country and also increases global economy. I argue that outsourcing is not necessarily unethical, nor is it unavoidable. After all, international business has opened huge markets for United States products and has provided customers with new and cheaper goods. With advancements in shipping and telecommunications, it is easier now than ever before to sell products and services across the globe. If businesses and customers are willing to accept the international market, then we must also accept its consequences increased competition. Company should do proper planning about outsourcing, keep the core functionality of the outsourced jobs and outsources their non-core jobs. So company can focus on the core function and produce good product. The confidentiality and the privacy of the company get secured. So from my point of view, outsourcing is good.