A) How successful has the government of the Irish Republic been in Essay

A) How effective has the legislature of the Irish Republic been in running it's economy throughout the most recent three years b) Describe and assess the fundamental large scale econo - Essay Example â€Å"Because Ireland is a little nation, FDI The lodging market caused assisted with continuing development in the ongoing years as lodging speculation has reached practically 16% of GNI, yet the market has turned since 2006.on the premise GNI development is relied upon to decrease from 5% in 2007 to 3% in 2008. The lodging market shortcoming additionally affected gravely on expanding the pace of joblessness from 4% in 2006, to 5.5% in 2008. Ireland delighted in dynamite development in charge incomes over the previous years however this is influenced by the financial declining, the administration excess of 3.5% of GNI has decreased in to .5% in 2007due to the lower property related receipts the genuine government use has extended quickly In the year 2005, Ireland’s work rates decreased from 14% to 4%, because of the development in GDP. Be that as it may, in the year 2006 the joblessness rate expanded to 4.4% Ireland faces an issue of maintainability from different nations in light of the age hole in populace matured more than 65, identifying with working age populace .the current framework will impractical even with the national benefits support The development rate in GDP has arrived at 10%from 1997 to 2000; which in 2005 has reached $169 billion, over the normal of EU 25. Notwithstanding, since year 2006 Ireland’s monetary development began to back off, because of the lower speculation spending and progressively moderate utilization, which is 5.6%, in 2007 at 4.7% and it is anticipated to hinder further in the coming years. In the previous years monetary action stay solid by the solid household request yet it is presently facilitating in the short advance ought to be taken to pull in the outside speculation. In the more drawn out run, more grounded profitability development and proceeded with increment in investment rates will be expected to support a quick pace of genuine salary development. The moseying action has hinder government incomes and a sharp drop in the financial excess

How to Refinish Hardwood Floors Research Paper Example | Topics and Well Written Essays - 500 words

The most effective method to Refinish Hardwood Floors - Research Paper Example A few stories become dainty when they have been resurfaced a ton of times in light of the fact that after various restoring, there is no layer left on it to be evacuated. Along these lines, before restoring, consider whether your floor is in acceptable condition to sand. 2. Mastermind the Equipment. Get a belt sander on the off chance that you can on the grounds that it is simpler to deal with. Drum sander isn't just heavier to convey yet additionally it is adept to make grooves on the wood which are difficult to expel. An edge sander should likewise be promptly accessible to reach in niches and corners of the room where a belt sander doesn't reach without any problem. Other gear that you need is a clay blade, scrubber, cushion, security covers, eye assurance, brush, and froth utensils. 3. Set up the floor for sanding by evacuating all furnishings, heat meshes, rugs, and old nails. Mop the floor since it must be dust cleaned before sanding. Try not to go for wood clay on delicate floors since profound gouges and breaks in delicate woods would require supplanting entire boards. 5. Begin sanding from the least observable region to get simple with the sander. Concentrate. Spot the sander forward and sand alongside the floor’s grain. Begin sanding near the dividers, sanding the two advances and in reverse. Beginning sanding will just evacuate the layer of old completion. Utilize the edge sander to arrive at the regions the belt sander had not reached. A drum sander will have a 20-36 coarseness paper in it now. 6. Sand once more, moving in reverse, forward, left and right movement. It will evacuate the scratches that the first sanding left on the floor. This time, a drum sander ought to have a 80 coarseness paper. Select a fitting heading relying on the look and feel. The edge sander should likewise have a 80 coarseness paper in it. 8. Pick a completion. Polyurethane stain which is either water-based or oil-based, or Osmo Hard Wax Oil, is utilized regularly. The completion can be polished or matte. Glossy silk finish is favored in light of the fact that it is known to conceal the flaws

Facebook Link Previews Not Working Properly Try This!

Facebook Link Previews Not Working Properly Try This! Make Money Online Queries? Struggling To Get Traffic To Your Blog? Sign Up On (HBB) Forum Now!Facebook Link Previews Not Working Properly? Try This Then!Updated On 09/01/2018Author : Pradeep KumarTopic : FacebookShort URL : https://hbb.me/2CDIEkF CONNECT WITH HBB ON SOCIAL MEDIA Follow @HellBoundBlogChanging your blog posts titles, links and thumbnails often? Facebook link previews not working or showing properly? We almost had the same problem long back, but no more. I guess there is only one way to fix quickly this. Well talk about it.Facebook Link Previews Not Working Properly?Most of my old (and some current) blog posts have thumbnails as random screenshots and pictures. Sometimes I do this on purpose, but then, I also become way too lazy to edit them and replace them with some other image. If you are like me, or if you have the habit of frequently messing up with your blog posts, then here is an easy way to overcome this. Thanks to Facebook Developers Debugger Tool.Recently I added a new thumbnail image for my blog post, but still, the old screenshot remains not the new one.This is how my blog post looks with the old thumbnail, but I wanted to change it.Head over to Facebook Developers Debugger Tool and enter the desired blog post URL there. Click the button that says Debug. Now youll come to this page (below). We are now going to tell Facebook to fetch the new scrape information instead of the old ones. So, click the button that says Fetch new scrape information. Thats it.READYou Can Now Find Your Orkut Friends On FacebookThis tool shows the scraped time and other useful information regarding your blog post link.Now, here is the same blog post with the updated thumbnail I added.Perfect and Easy right? Most of us try using short URLs and other unnecessary tricks to get the preview links working correctly, but this is the direct and natural way I would say. This trick/tip applies not just for thumbnail but also for the title, description and others as wel l.I hope this helps you to fix the Facebook link preview issues, do let us know your views in the comments below, maybe you have a better solution for this?

Marijuana Essay - 1535 Words

Marijuana A smoker would theoretically have to consume nearly fifteen hundred pounds of marijuana within about 15 minutes to induce a lethal response... In strict medical terms, marijuana is far safer than many of the foods we commonly consume. For example, eating ten raw potatoes can result in a toxic response. By comparison, it is physically impossible to eat enough marijuana to induce death. DEA Administrative Law Judge Francis L. Young. Between 9 and 17 million Americans are occasional users of marijuana and about 3 million are daily users. As many as 40 million have tried the drug for many different reasons such as experimentation and peer pressure (Schleichert 40). Much of Americas youth is experimenting with the drug and†¦show more content†¦In India marijuana was holy and was given to people by the Hindu god Shiva as a gift. It was taken as a drink mixed with milk and sugar, and was available to many people because it was inexpensive. (Abel 33) Use in ancient Rome was noted ar ound 70 A.D. by a physician named Pedacius Dioscorides in a book about plants and their healing characteristics. The book contained information that marijuana was a good remedy for earaches, and this treatment was used throughout Europe for about 1500 years. Recently scientists discovered a body of a woman who died of childbirth 1600 years ago. Close to the body, a burnt substance was found and with later investigation the substance was determined to be marijuana. Scientists concluded that marijuana was used to ease labor pains (Abel 33). Marijuana use in the United States is more recent. George Washington and Thomas Jefferson both grew marijuana on their estates and Washington said to Make the most of the hemp seed, and sow it everywhere (Schleichert 9). During the early 1800s marijuana was sold as extracts that were said to help cure aliments ranging from migraines and asthma to epilepsy, insomnia, chronic bronchitis and gonorrhea. Later, around 1890, the medical use of marijuana declined with the invention of the hypodermic needle. Drugs could now have quicker and more reliable pain relief and finally in 1941 cannabis was taken out of professionalShow MoreRelatedThe Legalization Of Marijuana And Marijuana Essay1314 Words   |  6 PagesMarijuana or Cannabis is one of the bused drugs in America and the rest of the world. Interesting accumulating evidence show that the significant negative impact of this drug outweighs the positive effects. However, the medical benefits of the drug seem on the process of chemical compounds as compared to the drug itself. Medical debates show that chemical compound in marijuana are the problem as compared to the plant. The said chemical compound affects the mental and physical health of the personsRead MoreThe Cons Of Marijuana And Marijuana1449 Words   |  6 PagesEmma Biggs/Regalia Political Studies 22 October 2014 The Cons of Cannabis Although it is a highly common defense that marijuana is not addictive, it in fact is. Many regular smokers find themselves ridden with very similar withdrawal symptoms of a tobacco addict (Marijuana Addiction Symptoms and Effects). Around 9% of people who use find themselves dependent on marijuana (Is Marijuana Addictive?). That may not seem like much, but that is almost 1 in every 10 people hooked on a drug that is supposedlyRead MoreThe Legalization Of Marijuana For Marijuana2792 Words   |  12 PagesThe legalization of marijuana in America Overview Issue The new events of legalizing marijuana for recreational use has increased controversy in the United States, those against it say it was bad enough before when it was merely allowed for medicinal use and now that these new laws and rules are really infuriating those who are against it. However on the flip side people are also arguing that now that it is allowed for recreational use people it will lessen crime rates, related to selling and buyingRead MoreShould Marijuana Be Legalized? Essay1685 Words   |  7 Pagesof medical marijuana. However, the amount of licensed medical marijuana card holders was small until 2009, when the U.S Attorney General gave the prosecution and legalization of marijuana over to the states. After this, the number of medical marijuana licenses increased greatly in Colorado. Then, in 2012, the sale of recreational marijuana was legalized in Colorado, to all those over the age of 21, and retail stores began selling marijuana in 2014 (Monte). Public opinion on Marijuana is generallyRead MoreMarijuana Laws Restrict The Growth And Use Of Marijuana1513 Words   |  7 PagesMarijuana is â€Å" the dried leaves and female flowers of the hemp plant, used in cigarette form as [a] narcotic or hallucinogen.†(â€Å"Marijuana†) In the 17th century, marijuana production was encouraged and supported by U.S. legislation. Later, â€Å"during the 19th century,[marijuana] use became a fad in France and also, to some extent, in the U.S.†(â€Å" Marijuana Timeline†). During the 1920’s and 1930’s, the drug raised fears linked with illegal immigrants and criminal activity. (â€Å"Marijuana Timeline†). ThenRead MoreThe Legalization of Marijuana862 Words   |  3 PagesCannabis, also known as marijuana, is a plant which when consumed has psychoactive effects. It is believed to have been first used in the 3rd millennium BCE in what is now modern-day Romania (Rudgley). Throughout history, it has been known to b e used during rituals and ceremonies, becoming an important aspect of numerous cultures. It has become illegal to possess, sell or use marijuana in various countries beginning in the 20th century, despite that it’s used quite commonly. According to a UnitedRead MoreShould Marijuana Be Legalized? Essay1587 Words   |  7 Pages Legalization of Marijuana Marijuana is not a recent discovery, but the mysteries surrounding the controversial topic in question remains to be disputed since its prohibition. Classified as an illegal substance, cannabis has been restricted in Canada and around the world. Marijuana is a complex drug and its contradictory claims of medical purposes, and harmful destruction, fuel the debate on whether or not the legal constraints of consuming marijuana should be reconsidered. In consideration of academicRead MoreThe Legalization of Marijuana628 Words   |  2 PagesLegalization of Marijuana Marijuana, the plant of the cannabis, has been around since the early 1900’s. Throughout history, marijuana has been used illegally, for both recreational and medical uses. Recently, marijuana has been used for medicinal purposes, like aiding HIV/AIDs patients, healing migraines and controlling nausea caused by chemotherapy. Today, there are currently 21 American states that have legalized medicinal marijuana including two states that have legalized recreational marijuana. SinceRead MoreThe Origns of Marijuana726 Words   |  3 Pages Coca, and Poppy). Therefore, Marijuana should be removed from the criminal justice system. Legalizing and regulation marijuana can bring cash crop under the criminal justice law, bring in jobs, medical use, and overall create economic opportunities to The United States of America. There has been reports of marijuana being less harmful than alcohol or tobacco. According to the British research foundation two deaths worldwide can be directly caused by marijuana, yet 150,000 people die from alcoholRead MoreShould Marijuana Be Legalized?1953 Words   |  8 PagesAnalysis of Legalized Marijuana Josh Raabe Mountain Lake Christian School Abstract This paper will look at the benefits and drawbacks to legalizing marijuana by looking in at Colorado.The state made forty million dollars by taxed marijuana in 2014 alone, also Colorado saved countless millions because of the extremely lower amounts of marijuana arrest and court cases. It is not clear how having new recreational marijuana stores opening will affect the cannabis market, or businesses

The Economic Expansion Of Venice - 1738 Words

In the Middle Ages, Venice was possibly the richest place in the world. Venice become rich due to reconstituting strong central political power by kings such as Charlemagne. By 1050 to 1330, Venice was then as big as Paris, and probably three times the size of London. This expansion includes contractual innovations making economic institutions much more inclusive such as commenda. Government documents replaced with new names. The economic expansion of Venice created more pressure for political change. There are some innovation such as Great Council with sub councils Senate and the Council of Forty, General Assembly, new doge had to swear an oath of office. The institutional innovations included creation of independent magistrates, courts, a court of appeals, and new private contract and bankruptcy laws. But there was a tension. Economic growth was accompanied by creative destruction. Each new wave of enterprising young men who became rich via the commenda or other similar economic in stitutions tended to reduce the profits and economic success of established elites. And they did not just reduce their profits; they also challenged their political power. To avoide this disturbance, On October 3, 1286, a proposal was made that Great Council that the rules be amended so that nominations had to be confirmed by a majority in the Council of Forty, which was tightly controlled by elite families. This would have given this elite veto power over new nominations to the council. TheShow MoreRelatedInfluence Of The Renaissance On Modern Western Society Essay1712 Words   |  7 Pageslife; so much so that it could be seen as beginnings of our modern western society. Leading this revitalization in culture and society in Europe’s historical development were to the two of the most dominant states of renaissance Italy, Florence and Venice. These small city-states were the powerhouses of the time and assisted speeding up the renaissance and helped spur revolutionary develo pments along the way being the main hubs of influence in the Italian peninsula during the late 13th and early 16thRead MoreThe World Of The Eastern Hemisphere1497 Words   |  6 Pagesand infamous Genghis Khan. Marco Polo was only six years old when his father and uncle set out eastward on their first trip to Cathay (China). He was by then fifteen years old when his father and his uncle returned to Venice and his mother had already passed away. He remained in Venice with his father and uncle for two more years and then three of them embarked the most courageous journey to Cathay the second time. This journey thus began the medieval period of intercourse between China and the dominantlyRead MoreThe Religious Emancipation Of The Crusades Essay1738 Words   |  7 PagesHeaven† (Durant 587). However, just as religion can be attributed to the reason for Urban’s crusade, so too can the financial and economic goals of both the Church, nobility, and common folk. Changing econ omic structure in the medieval period fostered a need for change in commerce and trade. With that, came an ambition from the lower class to change their socio-economic status. The emergence of the merchant class, desire for commerce and trade among centralized empires, and the lure of financial freedomRead MoreCharacteristics Of The Italian Renaissance1299 Words   |  6 Pageslanguage, the renaissance happened between the fifteenth century and sixteenth century. Beginning in Italy, the Renaissance was an era that rediscovered the culture of ancient Greece and Rome in the fourteenth century and witnessed a continuation of the economic, political, and social trends. Jacob Burck-hardt, a swiss historian and art critic, created the Renaissance in his celebrated book The Civilization of the Renaissance in Italy, and published in 1860. He portrayed Italy in the fourteenth and fifteenthRead MoreThe Guiding Rules and Principles of Ragusa During the Middle Ages1070 Words   |  5 PagesIt is the aim of this report to examine and present in as concise a from as possible the principles and rules which guided and regulated the economic activities of Ragusa during the period known as the Middle Ages. Moreover, touching upon the primary commercial institutions and players that helped establish this city, how this city regulated itself along with gearing itself to prosperity. Hypothesis: The dissertation of this research report will focus on demonstrating how Ragusa’s economy flourishedRead MoreThe Later Years Of The Postclassical Era943 Words   |  4 Pagesgeneration a new way to live, cities became vastly important for trades for merchants and foreigners, and how different states reacted to the change by making laws that would be applicable for their own self interests. Among the trades and policy’s. Expansion became vitally important, for many states and regions, the essay will present a big picture of how the later postclassical era innovated many lives by different states and regions interacting with each other and sharing their own traditions and valuesRead MoreJustinian And The Roman Empire1477 Words   |  6 PagesThe Byzantine Empire, though often forgotten among better-known empires, such as the Roman Empire, ran for nearly one thousand years, occupying the eastern half of what once was the Roman Empire. It engaged in trade, expansion, and decades of warfare. It also gave women a better status then men, valued and preserved Greek history, and eventually fell to the Ottomans. During the year 535, Justinian overthrew the Ostrogothic Kingdom, which had occupied Italy after the split and decline of the RomanRead MoreEssay about Rival Middle Ages1808 Words   |  8 Pageswell as technical advances in farming, and social changes, when taken in conjunction with population expansion this leads to Western Europe evolving, a merchant base, manufacturing, and agricultural production to equal, and even surpass in terms of trade, the Eastern Empire of Constantinople and the Islamic caliphates. The expanding population founds new towns and cities. The new cities such as Venice, in Italy and Lubeck in Germany would have a significant impact on the future development of pan EuropeanRead MoreWhy Did Europeans Expand Into America, Africa and Asia Between 1415 and 1715?1964 Words   |  8 PagesDuring the sixteenth century expansion became a key theme across the face of Early Modern Europe; this caused the sixteenth century to acquire the retrospective name of the Age o f Expansion or Age of Discovery. According to the historian Richard Mackenney the cause of European expansion during this period can be explained in terms of three major symptoms: overseas discovery, population growth and price inflation all of which are tied together in a complex multiplicity making in difficult to isolateRead MoreThe Renaissance Essay758 Words   |  4 PagesRenaissance was above all an urban phenomenon, a product of cities that flourished in central and northern Italy, such as Florence, Ferrara, Milan, and Venice. It was the wealth of these cities that financed Renaissance cultural achievements. The cities themselves, however, were not creations of the Renaissance, but of the period of great economic expansion and population growth during the 12th and 13th centuries. Medieval Italian merchants developed commercial and financial techniques, such as bookkeeping

The Rising Concerns of Underage Drinking Essay - 1923 Words

Alcohol is a drink that possesses a seducing effect to tempt many citizens. Adults worldwide consume countless cans of beers, wine, vodkas, and other alcohol beverages. However, its luring quality has been secretly shared to minors, resulting to a problem called Underage Drinking. This situation has existed for quite some time. In the past, underage drinking was considered a miniscule crime, and wasn’t strictly restrained or monitored. As we continued to remain oblivious, numbers of adolescent drinkers have gradually increased as they used the tolerant rules to their advantage. Now, the problem has become significantly noticeable, and we can no longer neglect it. High school, even middle school students have been found with†¦show more content†¦Children tend to absorb the contents with a sense of judgment. This is because their curiosity sometimes leads to terrible consequences, in this case, the addiction to alcohol. â€Å"A national study †¦ concluded that gr eater exposure to alcohol advertising contributes to an increase in drinking among underage youth. Specifically, for each additional ad a young person saw †¦ he or she drank 1% more. For each additional dollar per capita spent on alcohol advertising in a local market †¦ young people drank 3% more† (Alcohol Advertising and Youth). Therefore, the commercials do have a great impact to the number of drinking adolescents, since the number of underage alcohol consumption rises as advertisement rates rise. If such commercials continue to display on the media without any types of appropriate-content filters, the number of teenage alcoholics will continue to rise as years pass by. As a result, we must greatly reduce the number of commercials referring to alcohol products, to minimize the possibility to create future drinkers under the legal age. Education is another great way to prevent the number of teenage alcoholics from rising any further. We can control this situation w ith just a couple lessons and speeches to inform kids about the consumption of alcohol by explaining how it affects their mind psychologically. Sure, drinking may cause stress relief and relaxation to the teenagers burdened with the amount of schoolwork and deciding their future. However, whenShow MoreRelatedUnderage Drinking And Teenage Drinking1584 Words   |  7 PagesAlex Wilmore Joshua James, Instructor ENG 111 07 July 2015 Underage Drinking â€Å"With such compelling information, the question is why haven t we been able to do more to prevent the crisis of underage drinking? The answer is: rising the age to 25† is what Lucille Roybal-Allard once said, a U.S. Representative for serving in Congress since 1993. This statement has brought many to speculate of issues and debates. This expression opened the eyes of American people that often struggled to make this truthRead MoreUnderage Drinking And Teenage Drinking1584 Words   |  7 PagesAlex Wilmore Joshua James, Instructor ENG 111 07 July 2015 Underage Drinking â€Å"With such compelling information, the question is why haven t we been able to do more to prevent the crisis of underage drinking? The answer is: rising the age to 25† is what Lucille Roybal-Allard once said, a U.S. Representative for serving in Congress since 1993. This statement has brought many to speculate of issues and debates. This expression opened the eyes of American people that often struggled to make this truthRead MoreShould the Minimum Drinking Age Be Lowered1128 Words   |  5 PagesTayrin O’Rand 14 March 2012 Should the Minimum Drinking Age be Lowered? The minimum drinking age became a hot topic ever since it was set to twenty one years old. It is a law not everyone welcomes with open arms, one that has the most impact in the lives of adolescents and if violated, one that can put a state at risk of forfeiting ten percent of its annual federal highway appropriation. John M. McCardell Jr., president of Middlebury College; founder and president of Choose Responsibility,Read MoreIntroduction. Alcohol The Debate Of The Ages, Between The1730 Words   |  7 Pagesold, researchers, people, alcohol companies, and parents. Within this topic, always comes the concern of when is it appropriate for people to legally drink alcohol. Currently, in the United States the minimum legal drinking age (MDLA) is the age 21. There are many reasons and sciences behind why the U.S. choose the age of 21. On July 17, 1984 the president signed an act called National Minimum Drinking Age Act (NMDAA). This mandated all the states, to federally instate this law within time all cameRead MoreLowering The Legal Drinking Age1387 Words   |  6 PagesThe concerns about safety involving alcohol, including alcohol-related fatalities, â€Å"binge drinking†, and long-term health effects, will not be compromised by lowering the legal drinking age to nineteen in the United States. Activists who wish to raise the legal minimum age frequently discuss the ways that driving while intoxicated endangers countless lives every day in the United States, and is an increasing problem in model Europe as well. However, drunk driving increases will secrecy, not withRead MoreNational Minimum Drinking Age Act Essay719 Words   |  3 PagesIn 1984 the United States Government approved the National Minimum Drinking Age Act that required that â€Å"the States prohibit persons under 21 years of age from purchasing or publicly possessing alcoholic beverages as a condition of receiving State highway funds.† Even though this bill was nowhere near the magn itude of the prohibition act that was passed less than a century before it, the act still damaged the relationship between individuals, firms, and the United States government. Although theRead MoreUnderage Alcohol Drinking And Cigarette Smoking1398 Words   |  6 PagesThe underage alcohol drinking and cigarette smoking has been a consistent problem for the last few decades. Majority easily blame marketing advertisements to this problem particularly to the rising percentage of alcohol, cigarette, and drug abuse among teens. While this may seem unfair to marketing industry, there may be some truth to that according to research. This study will focus on the probability to ban marketing advertisements of alcohol, cigarette and medically prescribed substances as theRead More The Drinking Age Should Be Lowered Essay2234 Words   |  9 Pageslinked to drinking underage. The legal drinking age in many states is twenty-one years old. The purpose of this law is to keep minors out of dan ger: away from drunk driving, alcohol poisoning, and injuring the brain before it is fully developed. The government supports the belief that people are not ready or responsible enough for alcohol until this age. However, various professors and researchers are discovering ways to disprove this belief. These people think that reducing the drinking age toRead More Controversial Television Advertising Essay1498 Words   |  6 Pagesadvertising standards. Some ads a media company will simply refuse to accept (Peart, Karen N). Concerns have been raised about Beer advertising, Cigarette advertising, Sex advertising, Political advertising, and food advertising to children. Alcohol advertising is a primary concern for many Americans who believe that alcohol advertising in media directly influences the frequency of underage drinking. While drinking among youth and young adults has declined over the last six years, a recent study by theRead MoreEffects Of Alcohol Consumption On The Uk1630 Words   |  7 PagesAlcohol consumption in the UK has a clear tradition of having moderate and heavy drinking as seen in Plant and Plant s (2006) analysis of trends in alcohol consumption. It is also notable that most concerns about levels of alcohol consumption is directed particularly towards young people which most consider to be a link to crime and anti-social behaviour. As a result, there is no denying that a stigma has been attached to young people and alcohol. In the UK, general consumption is on a rise. Data

Australian Taxation Laws Case Study & Assignment

Question: Case Study One The following separate scenarios require your advice as indicated: Part A Pierre is qualified chef and a citizen of France. He has always lived and worked in his home town of Paris. Pierre was offered a full-time position as a pastry chef at an exclusive Melbourne hotel for a period of 2 months to cover the Christmas holiday season. Pierre signed the contract of employment before he left France. Pierre is not married and has no dependants or family ties in Paris. Pierre moved out of his apartment in Paris and placed all his belongings in storage. Due to Pierre's world renowned experience, the Melbourne hotel offered Pierre the use of a fully furnished apartment at another property owned by their group at no expense during his stay. Pierre arrived in Melbourne on 1 December 2013 and finished working at the hotel on 31 March 2014 after gaining a 2 month extension on his contract. Pierre stayed on in Australia for a holiday until the end of April 2014 before returning to Paris. Pierre lived in the Melbourne apartment for the whole length of his stay. During the income tax year ended 30 June 2014, Pierre earned interest on a French bank account of $1,500 (EUR); salary and wages from his work in France prior to November 2013 $30,000 (EUR); and salary and wage income from his Melbourne job of $27,500 (AUD). Pierre had PAYG of $4,200 deducted from the Australian salary. Required: Discuss with reference to legislation, case law and/or rulings (where relevant) whether Pierre would be considered a resident of Australia for tax purposes for the income year ended 30 June 2014. Based on this conclusion and discussing the source of income principles, state which amounts would be included in his assessable income for the year. Part B At the beginning of the 2014 income year, Carl and Jill set up an eBay account to sell unwanted personal items from their garden shed. Setting up the account was free. During the period July 2013 through to November 2013, their total sales were $4,200 and this all related to second hand personal items sold below cost. Carl and Jill discovered through this process there was a large market for garden tools. Carl and Jill have therefore begun to source foreign made garden tools and sell this through their eBay account. Carl and Jill have spent $27,000 during the income year acquiring stock. Some of the stock is sold exactly as it was purchased, whereas some stock is modified through the addition of ergonomic handles for older gardeners. All listings are made with a minimum bid price of 150./0 of the cost price. Up to 30 June 2014 Carl and Jill have made total sales of $31,500 in relation to gardening tools. Carl and Jill have also received total postage income of $4,000. The total cost of postage to customers was $3,000. Carl currently has a full-time job as a carpenter and Jill works part-time in an accounting firm. All income received from sales of gardening tools is currently being put back into purchasing new stock. Jill is also working on a website which will launch in January 2015. The website will allow Carl and Jill to sell their stock directly online without the need for eBay auctions. Required: 1. Discuss with reference to appropriate legislation, case law and/or rulings whether Carl and Jill are carrying on a business for taxation law purposes in either the 2014 or 2015 income years. 2. Ignoring your answer in (1), assuming Jill and Carl are carrying on a business for taxation law purposes; provide advice as to whether the cash or accruals basis of accounting should be used. Part C Eddie is a semi-retired mechanical engineer. Throughout his working life he always worked on new inventions at his home workshop. Eddie's specialty is solar powered farm equipment. Eddie's prototype was almost complete when the Global Financial Crisis hit and he ran out of money to continue building and testing the machine. His intention had been to begin either manufacturing the equipment or enter into licence agreements (for royalty income) once the designs were completed and certifying them. Fortunately for Eddie, after an appearance with his design on a television program, he was approached by a manufacturing company to purchase his prototype and working designs. Eddie was paid a lump transferring all designs, prototypes, past drawings and in-progress drawings to the company. The agreement also stated that Eddie would provide knowledge and input into the ongoing design process and any new designs for a period of 12 months. There was to be no additional remuneration for Eddie's time in working with the company, simply the lump sum payment. Eddie was also given 10% of the shares in the company (market value of $100,000) in exchange for entering into the agreement. As a result of entering into the agreement, Eddie transferred all existing patents into the name of the manufacturing company. Required: Discuss with reference to appropriate legislation, case law and/or rulings whether either the lump sum or the shares are ordinary income to Eddie in the 2014 income year. You should provide brief comment about whether there is likely to be any CGT consequences. Case Study Two Part A As a result of a fire in January 2014, the downstairs kitchen area of Toni's rental property in Brisbane was damaged. Toni's rental property was tenanted at the time of the fire; however it has been vacant since that time while repairs are being carried out. Toni has had the following expenses up until 30 June 2014 in relation to the rental property; Replacement of all kitchen cupboards and bench tops at a cost of $14,000. The old kitchen cupboards were damaged from the fire and the old bench tops were not able to be used on the new cupboards. However, all other aspects of the replacement were of a similar design and with similar materials to the old kitchen. Toni made two payments in relation to the installation of the kitchen. The first payment was $7,000 on 1 March 2014 and the second final payment of $7,000 was made on 20 June 2014. The kitchen was fully installed and completed on 1 June 2014. Replacement of the downstairs rear entry door. As a result of the fire damage the door would not close properly. The cost of the replacement door was $850 including installation and was paid on 1 April 2014. The old door was a plain solid timber door, whereas the new door included some decorative stained glass at the top. Toni also took the opportunity to add a security screen to the door at an additional cost of $1,800. Required: Discuss with reference to appropriate (and most relevant) legislation, case law and/or rulings whether the rental property expenses are deductible in the 2014 income year. For the purpose of this discussion you can assume Toni is not covered by insurance for this type of event. Part B Karen carries on a bakery business in Toowoomba where she sells directly to the public and also supplies restaurants making deliveries in her delivery truck. Karen is a small business entity. Karen had the following outgoings in the year ended 30 June 2014: 1. One of Karen's customers, Mrs Smith swallowed a small metal object that was in one of the cakes that Toni sold to Mrs Smith. Mrs Smith sued Karen for damages and Karen paid $6,000 to Mrs Smith on 16 April 2014. Karen paid her own legal costs of $5,000 related to legal advice on the claim on 12 April 2014. 2. Karen is married to Adam; and Karen borrowed $50,000 from the National Bank and purchased shares in Adam's name and he will get the dividends. Karen paid interest of $2,000 on the loan for the bank in the year ended 30 June 2014. 3. Karen paid $6,800 in child care expenses during the year to put her daughter in child care to enable Karen to carry on her business. 4. Karen paid for the cost of food and accommodation being $150 for staying overnight at the Novotel Hotel in Brisbane while attending a baking and catering conference. Required: Based on this information what amount can Karen claim as a tax deduction under s 8-1 Income Tax Assessment Act 1997 for the year ended 30 June 2014? Support your discussion with reference to appropriate authority. Part C Oliver carries on a computer repair business, employing 3 qualified IT technicians, where he repairs computer hardware and networks which have been damaged by computer viruses. At 30 June 2014 he provides the following information in relation to her trade debtors/accounts receivable: 1. Oliver estimates that around 10% of his trade debtors ($4,800) will not pay him for work done and invoiced. The 10% is based on Oliver's experience of bad debts in the past. Total debtors at 30 June 2014 were $48,000. 2. Oliver has identified that ABC Pty Ltd, who owes him $2,300 for computer repairs, has just been made insolvent. Oliver made a written note on 27 June 2014 that he considers that he will not receive any amount from ABC Pty Ltd. Oliver has not removed ABC Pty Ltd from the trade debtor balance at 30 June 2014. 3. Oliver had written off a debt of $1,700 as bad in the 2013 year. The debtor, William O'Conner, had told Oliver that he could never pay the money and that he did not have any assets. Fortunately for William he received $20,000 from a win at the casino, and paid Oliver the $1,700 owing on 13 April 2014. Required: Based on this information what amount can Oliver claim as a tax deduction for the year ended 30 June 2014? Will he have to include any amount in assessable income? Support your discussion with reference to appropriate authority. Case Study Three Paula is a resident of Australia for tax purposes and has informed you of the following transactions which occurred during the income year ended 30 June 2014. Paula also informs you that she has carried forward capital losses from the 2012 year of $4,000. This loss relates to the sale of shares. Additionally she has a $700 carried forward capital loss from the 2009 income year in relation to the sale of an antique. Vacant Land and House Paula purchased a vacant block of land in Brisbane QLD on 1 October 1984 for $87,000 for investment purposes. On 1 July 2012 Paula subdivided the land into two equal allotments at a cost of $40,000. At the time of the sub-division the total land area had a market value of $230,000. The total cost of council rates and other maintenance fees incurred on the vacant land up until 1 July 2012 was $27,000. On 1 January 2013, Paula entered into a contract with a builder to build a house on one of the blocks of land. The construction commenced on 1 February 2013. The total cost of construction of the house was $320,000 and the construction was completed on 1 August 2013. After the construction was completed, the new home was rented out to tenants immediately. Paula entered into a contract on 1 January 2014 to sell the new home (with tenants) for $620,000. Information provided by the local Council indicates that at the time of the sale, the relevant land was valued at $345,000. During the period the property was rented out Paula incurred $1,200 in council rates and fees and $7,000 in interest on a loan taken out for construction of the house. On 1 June 2014 Paula entered into another contract to sell the remaining vacant block of land for $405,000. Settlement took place on 1 August 2014. Paula incurred $3,800 in council rates and maintenance fees during the period 1 July 2012 through to the sale of the land. Shares Paula acquired 1,000 shares in XYZ Ltd on 1 November 2007 at a cost of $7,500. She also incurred $450 in brokerage fees at the time of purchase. On 1 March 2014, she also acquired an additional 2,000 shares in XYZ Ltd from her Grandmother's estate. Her Grandmother died on 1 February 2014 when the shares had a market value of $11 each. Her Grandmother had acquired the shares on 1 July 2000 at a total cost of $6,000. Paula sold all 3,000 shares on 1 June 2014 for $45,000. She incurred $900 in brokerage fees and transfer costs at the time of sale. Required: Advise Paula as to her net capital gain included in assessable income for the income year ended 30 June 2014 as a result of the above transactions. Perform calculations of any relevant capital gains and support calculations and discussions with legislation and/or cases where relevant. Case Study Four Jerry (aged 50) is considering selling his bookshop/cafe business and using the profits to start a new business in a different industry. Jerry has a purchaser who is interested in the business and has advised them that his asking price is $1,100,000 but that he is willing to negotiate. Jerry has calculated this asking price as follows; Goodwill $180,000 Fittings and Fixtures $125,000 Trading Stock $295,000 Building Premises $500 000 $1,100,000 Notes: All values stated above are market values. Jerry has advised that Fittings and Fixtures have an adjusted value (written down value) of $120,000. Trading stock is valued at a cost of $150,000 in the financial accounts. The building premises were purchased on 1 July 2010 for $375,000 and have a current market value of $500,000. Jerry started the business himself on 1 July 2005 from leased premises. Jerry is concerned about the tax consequences on the sale of his business and has asked for your advice. As stated, Jerry wishes to purchase a new business in a different industry with the profits from the sale. Jerry is not married and his only other assets are his own home which was purchased in 2002 and has a market value of $750,000 and a parcel of shares purchased in 2005 with a market value of $28,000. Required: You are required to prepare a letter of advice to Jerry regarding the likely tax consequences on the sale of each of his business assets should the sale go ahead as stated above. You should comment on any further information you would require to provide more detailed advice. You should also comment briefly on any concessions that might be available to Jerry. Answers: Case Study One Part A Issue- Residential Status of an individual is the most important factor for determining the taxable income of the individual. There are various provisions relating to the Residential status of an individual in Australia. Rule- The key point here is whether the Individual is resident of Australia for taxation purposes. The assessee can be Resident of Australia in any other manner but in order to tax a particular income in Australia, he/she should be a Resident for Taxation purpose. As per the section 6(1) of the Australian Taxation law(Income Tax Assessment Act 1936), an individual is resident in Australia if he/she satisfies any of the following tests: 1. a) Primary test or the resides test is related to the residence of the individual in Australia. If the individual is residing in Australia then he will be resident in Australia for taxation purposes. This provision has some exclusions. Here exclusions means the cases where the individual is not residing in Australia but still will be deemed as residing in Australia. The circumstances are: The trade and commerce establishment outside Australia can be excused. The agreement and the scope of the activity in Australia. If the personal effects are kept in Australia The reasons of employment Bank Account maintenance and the tasks performed in Australia. The business is established, set up and running in Australia and the assessee is going outside the country because of the business reasons.b) Permanent Home test: This is also called domicile test and is satisfied when the assessee is having a permanent home in Australia. Here the commissioner must be satisfied and can me enquiry for sat isfaction. If the commissioner founds that the individual is having a permanent dwelling outside India, then he wont be called a resident of Australia for taxation purposes.c) Another important test is the number of days the person is residing in Australia. If the individual is resident of Australia for more than 183 days then he will be a Resident of Australia. Here also there is an exception. If the commissioner is satisfied that the permanent intention of the person is to live outside Australia then this test is not satisfied even if the individual is residing in Australia for more than 183 days.d) Employee under Superannuation Act 1976: It is also called as Deemed Residency Test. It says that an individual who is an eligible employee under the Superannuation Act 1976 is deemed as resident of Australia for taxation purposes. Along with the individual the spouse of the individual and the child who is less than 16 year of age, shall be regarded as resident. (TAX n.d.) Now when an Individual becomes a non resident in Australia for taxation purposes, then source basis principles comes into picture. The rules are as follows: The Individual income shall be partially taxed in Australia in relation to the service performed in Australia if all the following conditions are satisfied: Contract for services are signed in Australia The services are performed in Australia There is an express or implied contract. The payment is made in the Currency of Australia At least one party is resident of Australia. Application: In the given case Pierre is a qualified chef and he is permanently residing in Paris (outside Australia). He is a citizen of France. He came to Australia for employment purposes. His intention is to permanently live outside Australia. Here we can see that any of the conditions are not satisfied. Also the individual is residing in Australia for employment reasons only. Therefore Pierre fails to satisfy any of the 3 tests mentioned earlier and thus he wont be called as Resident of Australia for Taxation purposes. Conclusion The individual is not resident of Australia for taxation purposes for the income year ended 30.06.2014. Thus only the amount which has accrued or arisen in Australia shall be added in computing the taxable income of Pierre. In this case the Income source based conditions are satisfied and the source of income shall be partially taxed because all the conditions are satisfied. Salary Income Salary and Wage Income in Australia = $30000(AUD) Less: PAYG Deductions = $4200(AUD) Net Assessable Income = $23300(AUD) Note: Non residents are not required to pay any Medicare Levy. Reference to Case Law: ATO ID 2002/81 (Non-resident in receipt of Australian sourced employment income 2002) Part B Issue- Tax Implications Of Running Business Online Rule The provisions relating to running a business online are to be focussed on to comment whether or not the activity of selling personal goods amounts to business. As per the Australian Taxation laws, the selling or personal effects upto $10000 does not lead to capital gain income. Also a business involves recurring purchase and sale by the assessee. If the activities of purchase and sale are of non recurring in nature and the assessee is not having any intention to purchase and sale and run the business, then the activity is said to be non recurring for that period. On the other hand if the activity is now intentionally made, both purchase and sale are affected continuously then it is said to be business. In this case it does not make any sense whether the goods are your personal effect or not. The main idea is the recurring purchase and sale and the Business motive. Tax cannot be avoided merely on the point of having a small business. If the activity is a business then the taxation ru les will be applied. Application Here, it is given that the Carl and Jill are selling some personal items from their garden shed by opening an account with ebay website and selling them below cost just to dispose the old items. This activity is merely a sale of personal items. It does not involve any purchase or sale. Also the sale of items is below the cost of the product. July 2013 to November 2013: In this period the sale is made of the personal items sold below cost just for the sake of disposal. There is not recurring purchase and sale by the dealer. The sale amount being $4200 After November 2013 : In this period of the year the assessee is now intentionally purchasing the stock from other people or local market and thus it involves intentional activities of purchase and sale by the assessee. In this case the assessee has spent $27000 for acquiring the stock and sold this at a profit of 150% over the cost. Total Sales here is $31500. In 2015: The assessee carl is now introducing all money from his full time job in the business and purchasing stock out of this money. On the other hand jill is working on the development of the website such that they can sell the goods on their own now. This involves clear business motive. Conclusions Answer 1 For the period July 2013 to November 2013, the assessee is not carrying on any business. Thus no business income or loss shall arise. Also there will be no capital gain or loss for the sale of personal items. From December 2013 onwards, the business activity is going on and thus there would be a Business income or loss for the purchase and sale of the goods. Sales Proceeds : $31500 Purchase of stock : $27000 Net Income : $4500 Postage Income : $1000(4000-3000) Total Business Income = $4500+$1000=$5500 From January 2015 the situation would be same as in the last part. The activities are of business nature and thus business income shall arise. Answer 2 As per the Australian taxation law the method of accounting can be cash basis or accrual basis depending on the turnover of the business. In case the turnover of the business is less than $2 million then the assessee is required to follow cash or accrual basis as per the requirement of the individual. On the other hand the assessee is ought to follow the accrual basis when the turnover of the business is greater than $2 million. In this case since the turnover is below $2 million the assessee can follow either of the methods. (Government n.d.) Part C Issue- Capital Gains Implications Rule Firstly we should summarise the points mentioned in the case give. Eddie is a semi retired mechanical engineer. He has invented a new prototype at home. His intentions are to either start the manufacturing or entering onto the licence with any other company in exchange of the royalty income. The assessee is in receipt of lump sum consideration from the company amounting to $650000 during the year 2014. The patents are fully transferred to the company. The assessee is in discharge of extra service of providing knowledge and assistance to the company on the manufacturing and invention of the prototype. An additional consideration of 10% shares (market value $100000) is also received by him. All existing patents are transferred to the company. Under Australian taxation laws the payments received in connection patents, copyrights etc are treated as royalty only if these are in nature of the payments in connection with the use of the patents. The royalty income arises when the exclusive rights are still with the assessee. On the other hand if assessee is selling the patent for a lump sum then the same will be regarded as the Capital receipt and thus would not be taxable here. In the given case the assessee is receiving a Lump Sum for the sale of the patent of $650000 will be a capital receipt and thus will be untaxed. However any other consideration than cash like shares, then that amount shall be a capital receipt also. Conclusion This amount will not be treated as cost while the assessee is selling the asset later on. Hence the cost of the shares received shall be nil. (Toby Eggleston 2007) In case of capital gain part the same should be untaxed since the cost of the patent is indeterminable and hence the amount shall be in nature of the capital receipt. Case Study Two Part A Issue- Allow ability of Expenses On rental property Rule As per the relevant provisions of the Australian Tax laws the rental property expenses are allowable only when they are directly related with the rental property. Another important thing here to note is the point when the expenses are incurred. Whether the expenses are incurred before the period when the property is rented i.e when the intention to use the property for rental purposes or the expenses is incurred before such intention arises? It is also relevant to note that the expenses directly related to the capital part of the property shall be treated as capital receipt. And this expenses of capital nature shall be added to the cost of the property and is not allowable as a claimable expenditure. Application In the given case the assessee (Toni) is having a rental property but is vacant because of the fire reasons. The intention of the asseessee was to lent the property on rent but the same could not be made because of the fire which broke out in January 2014. The payment schedule is not a determining factor for the allowability of the expenses. The intention of the assessee should be there. Actual renting of the property is not to be checked. If a basic part of the property is being repaired and the same is a necessity for effecting the renting of the property then the same shall be allowed for tax purposes. The repairs must be in relation to the wear and tear of the property. Otherwise the expense would be a capital in nature. Conclusion The following expenses incurred: a) Replace cost of the kitchen Cupboards amounting to $14000 shall be disallowed and added to the cost of the asset since it is not a normal wear and tear, it is related with capital part of the house.b) Another expense was incurred in relation to the replace of the downstairs entry door. This is an essential expenditure. So amount of $850 shall be allowable as a revenue expenditure.c) Adding of an extra security system in the house is a capital expenditure, since the same is not related with the incurring of the expenditure necessary for the purpose of giving the property on rental. So this expenditure of $1800 shall be added to the cost of the asset and will be taken into consideration while calculating the capital gain or loss on the disposal of the property.d) Since the assessee is not covered by insurance then any insurance expenses are also not deductible. If the assessee was covered under insurance then the insurance expenses would have been allowable. (Inc n.d.) The date of payment may be delayed. The important things here to remember is the incurring of the expenditure. If the expenditure is incurred then the dedcution can be claimed even if the payment is not made. Part B Issue- Deduction of Expenses Rule As per the provisions of the section 8-1 of the Income Tax Assessment Act 1997, the following expenses will be allowable as deduction in a particular year: a) the expenses must be related with the income directly. b) personal expenses are disallowed. c) child care care expenses are disallowed. It is relevant to quote that the expense must not be claimed elsewhere while computing the income of the assessee. Application Now we should consider each and every case one by one. 1. One of the karens customer had swallowed some metal piece found in the cake which were sold by the assessee to Mrs smith(customer) and the customer sued for a damage of $6000. The same was paid by the assessee. another legal expenses was incurred for this purpose. So in this case the damage payment of $6000 shall be allowable as it is a normal business expenditure. On the other hand legal expense incurred of $5000 for the purpose of taking some legal advice on the damage expenses is also allowable expenditure.2. Karen has taken loan from a bank and paid interest expenses of $2000. The loan is taken solely for the purpose of the investment in shares and securities in name of her husband Adam. In this case since the entire dividend income is not taxable. Thus the interest expenses incurred for this purpose shall be fully disallowed as the interest expense is incurred in relation to an income which is exempt and section 8-1 specifically disallows expenditure in connection with the ex empt income.3. Karen paid child care expenses for maintaining the child. The amount of $6800 paid for this service shall be disallowed as it is not directly related with the business of the assessee. A contrary view here is taken by Tax Institute of Australia which says child care expenditure must be allowed so that more and more people join work. (Australia 2014)4. Karen visited a conference of catering and baking for the purpose of business. There the expense incurred on food and accommodation was $150. The same is directly related with the business of the assessee and this will be allowed as deduction from the business income of the current year. (H R Block tax accountants n.d.) Part C Issue- Bad Debt Allowance Expenses Rule As per the provisions of the 63(1)(b) of the Income Tax Assessment Act 1936, the bad debt is an allowable expenditure. As per the provisions of this section the following points should be focused on the allowability of the bad debts: The debt should be present in the books of account. This means that some amount must be due to be received by the assessee. The debtor must have been declared as insolvent in order to assume that the debt is now bad. There must be close nexus between the debts incurred and the business of the assessee. Here this implies that the expense must be related to the business of the assessee. The debt should be included in the income of the assessee earlier. (Government 1992) Application Conclusions Now we shall discuss each case separately. 1. In the first case Oliver has made a claim that 10% of the debtors are said to be bad solely because of the reason that the assessee has experience with that debtor regarding the non payment of the dues. This claim is nothing but a provision for bad debt. A provision for bad debt is not allowed as allowable expenditure. Only actual bad debts or the circumstances showing the actual bad debts like insolvency, death etc shall be considered as valid points for claiming a debt as bad one. Thus the amount of $4800 shall be disallowed in the year 2014.2. ABC Pty Ltd is made insolvent and thus cannot pay any amount to the assessee. But there is no written declaration received from the party. Here the insolvency of the customer is a valid point to claim the deduction for the bad debt. The fact that the assessee has not removed the debtor from his books is irrelevant and the entire expenditure shall be allowed as bad debt deduction amounting to $2300.3. In this case a bad debt was claimed as deduction in the last year 2013 amounting to $1700. Now in the year 2014, the debtor paid the debt which was declared as bad. The amount received shall be taxable as business income of the assessee, since it is related with the business of the assessee and previously was declared as bad and disallowed. The amount of $1700 shall be taxable as ordinary business income. The total deduction is $2300 and the income to be included is $1700. So, the net deduction amount is $600. Case Study Three Application Firstly we need to summarize every point. 1. Paula is a resident of Australia for taxation purposes for the year ended 30.06.2014.2. Brought Forward Capital Loss on sale of shares of the year 2012 is $40003. Brought Forward Capital Loss on sale of antique of the year 2009 is $7004. Vacant block of land purchased on 01.10.1984 for investment $87000. On 01.07.2012 the land was divided into two blocks @ $20000 per block. The market price at that time was $230000 of the total area. Other Costs incurred are $27000. Now the cost of each block being : Cost of the total land = $87000(to be ignored) Division costs = $40000 Other Expenses = $27000 Total cost = $67000. Since the land was purchased before 20.09.1985, therefore the assets shall not be hit by the provisions of the Capital Gain tax and is not added to the cost as well. the amount incurred for the purchase of the asset is a capital expenditure. Now $67000 is the cost for the two blocks. The cost of each block is $33500. Now the assessee entered into a contract with the building to construct a house on 1 block and the cost in this case is $320000. Sale consideration for the sold house = $620000 Cost of the house(including the block cost) = $33500+$320000= $353500. Capital gain of $266500 will be there. Since the house is used for sale only there will be now exemption from capital for this part. The information relating to the market price of the house at the time of the sale of the house is irrelevant here. Another block of Land was sold on 01.06.2014 for $405000. Cost of the block was $33500 Add: council rates and fees = $1200 Interest on Loan = $7000 Other charges = $3800 Total Cost = $45500 Capital Gain amount comes to $359500. Shares We need to check when the assets are acquired. The date of acquisition is after 1999 that is 2007 and 2000. So the assessee should calculate the income as per the normal way by deducting the sale consideration and the cost base of the assets. Cost of the shares = $7500 Brokerage = $450 Grandmothers share = 2000 shares @11 per share = $22000 Total Cost of 3000 shares = $29950 Sale Consideration = $45000 Expenses on transfer = $900 Net Sale Consideration = $44100 Capital Gain on sale of shares = $44100-$29950 = $14150 Capital Loss on shares for the year 2012 = $4000 Net capital gain on shares = $10150 The capital loss carried forward on the antique shall be allowed from the house sale income. Net Capital Gain sale of house = $266500-$700 = $265800 Total Capital Gain taxable during the year = $265800+$10150+$359500 = $635450 (help and Guidance 2011) Case Study Four Application If an assessee sells his running business then it is utmost essential for him to get in touch with a tax consultant and value the assets properly in adavance such that the tax burden is not much on him. The tax planning is the most essential part of selling a business. If a proper tax planning is not made then there are chances of higher tax payments and much more. So it is better to have a clear understanding of the Australian taxation Laws in order to have the best out it. The following consequences may arise: 1) Goods and Service tax on sale of a going business does not arise but on sale of that capital asset shall arise. 2) capital gain tax will be there for sale of the capital assets. Now we should consider each and every point given in the question. Asking Price = $1100000 Goodwill =180000 Fixtures and Fittings = 125000 Trading stock = 295000 Premises = 500000 Total = $1100000 For furniture the adjusting value should be used in place of the asking price. $120000 shall be taken in place of 125000. The cost of the stock is irrelevant for decision making. Calculation of the capital gain Building Sale cosideration = 500000 Cost = 375000 Capital Gain = $125000 Stock Sale consideration = 295000 Cost of the stock = 150000 Capital Gain = $145000 Furniture Sale Consideration = 125000 Cost of the asset = 120000 Capital Gain = $5000 Goodwill capital Gain = $180000 Total Capital Gain = $180000+145000+5000+125000 = $455000 Letter of Advice Dear, Mr. Jerry Re: Income Tax Advice for Sale of Business Hope you are doing well. This letter is an advice regarding some of the tax consequence which you might face and are also desired to know the benefit which you will get from sale of the business. In this regard I would like to inform you that the Australian government has made various income Tax provision regarding the individual selling his small Business. Australian government provides various exemption to the seller of the small business. I am writing the some of the provision which might be useful for you in selling your business and get rid from the capital gain tax or in reducing your capital gain Tax liability. Australian government provide capital gain concession to individual on the following small business To the sole proprietor or individual Partners of the partnership firm, and A trust or a company The Concession provided by the Australian government will reduce the capital gain tax liability on sale of the business asset which has been used by the assesses in earning the business income and the said income is consider by the assessee in his assessable income. For claiming the exemption one must satisfy the basic condition of the capital gain concession for small business along with any additional condition depending upon the individual case. As per Income Tax Act of Australia one can apply as many concession or deduction as he can till the tax liability be NIL. A capital gain arising from the sale of the depreciating asset is exempt if the same has been completely used for the income generating purpose. There are basically Four small business CGT concession Availiable 15 Year Exemption for Small Business Retirement Exemption for small Business 50% Active Asset reduction Exemption for small Business, and Small Business rollover However, to avail the above mentioned Exemption the tax payer must be owner of the small business and satisfy the following criteria It has a annual turnover of not more than $2 million, and The value of asset is also not more than $6 million excluding any superannuation benefit and the family home. One of the major important condition for availing exemption is that the asset sold must passes the active asset test. The Test state that the Asset must be used in business for half of its life for a maximum 0f 7.5 years. 15 Year Exemption This Exemption entitled the business owner to disregard its capital gain. For Availing this exemption the asset must be owned for 15 years and age of the tax payer must be over 55 years and he is selling his business because of his permanent retirement. Since you are not above 55 years therefore, this is not applicable to you. Small Business retirement Exemption This concession also allows the tax payer to disregard with the capital gain on the asset. Under this concession the total capital gain that can be disregarded is subject to the lifetime limit of $ 500,000. This Concession does not mandate the tax payer to be 55 years old or to hold asset for 15 years. This Concession require the tax payer who is less than 55 years to contribute the gain disregarded into is superannuation as a cap contribution to Capital gain Tax. However, this contribution will reduce the life time cap amount. 50% deduction on Small Business This Concession allows the tax payer to claim deduction of 50% on its capital gain unless other method has been adopted by the taxpayer in his return. The concession is available both to trust and individual. Small Business roll over This concession allows the tax payer to defer its capital gain tax liability by rolling over the amount in Acquiring new Asset or, Improvement of the current asset However, to avail this concession one should meet the basic criteria. Further one this concession has been chosen general capital gain tax concession and 50% deduction is not applicable. Hope you have satisfy with the above advice. Best of Luck. Good Bless! References Australia, Tax Institute of. Feb 6, 2014. https://www.abc.net.au/news/2014-02-06/tax-institute-of-australia-calls-for-childcare-tax-deductions/5241426. Government. December 1992. https://law.ato.gov.au/atolaw/view.htm?DocID=TXR/TR9218/NAT/ATO/00001. Government, Australian. "ATO." https://www.ato.gov.au/business/gst/accounting-for-gst-in-your-business/choosing-an-accounting-method/. "H R Block tax accountants ." https://www.hrblock.com.au/tax_deductions_faq. "help and Guidance." June 2011. https://learn.nab.com.au/calculating-and-paying-capital-gains-tax/. Inc, Taxpayers Australia. "AUSTAX." https://www.austaxaccountants.com.au/docs/Rental%20Expenses.rtf.pdf. Non-resident in receipt of Australian sourced employment income . ATO ID 2002/181 (February 2002). TAX, LOW. "Gloabl Tax and Business Portal." https://www.lowtax.net/information/australia/australia-individual-non-resident-taxation.html. Toby Eggleston, Greenwoods Freehills. "tved.net.au." August 2007. https://www.tved.net.au/index.cfm?SimpleDisplay=PaperDisplay.cfmPaperDisplay=https://www.tved.net.au/PublicPapers/August_2007,_Sound_Education_in_Taxation,_Tax_Aspects_of_Licensing_Technology_and_Know_How.html.

International Human Resource Management

There are many differences between legal issues in china and Australia. For instance in China, the legal system is supplemented with local regulations. The local regulations are major challenges to international companies expanding their businesses in China.Advertising We will write a custom report sample on International Human Resource Management – Comparison between Australia and China specifically for you for only $16.05 $11/page Learn More These local laws and regulations differ from provinces as well as in the major cities in China such as Beijing and Shanghai. Different economic zones have different laws and regulations relating to labor (Lan, 1995). The interpretation of legislation and local practices also differs in various regions across China. There are various local regulations and practices that influence application of law in China as compared to Australia. The local regulations in China are supposed to be consistent with the nationa l legislation but sometimes there are conflicts. In Australia, there are few local laws which are consistent with the Australian national law. International companies should adhere to the local rules and regulation in China. Employment contract law in China also differs from that in Australia. In china, the employment contract law is very generous to workers and it provides a lot of protection as compared to the employment law in Australia. For instance in china, if an individual is employed temporarily for more than one short term contracts then he is deemed to be permanently employed (Villa, 2009).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More This is different from Australia where a person can be employed temporary for more than one short term contract without being viewed as a permanent employee. According to the contract law in China, an employee must have a formal contract. It is m andatory for employment contract to be written. This contract must contain important details such as compensation, working hours as well as job description. International human resource managers must be aware of these protective provisions in contract law. This is a major challenge which is faced by most international companies doing business in China. Another challenge faced by foreign companies is that they are not allowed to directly employ Chinese citizens in China. However, they may involve Chinese citizens in performing some services. In China employment contract must contain a basic fixed salary which should not be changed by the employer. Corruption is a serious problem in China just like in other developing countries across the globe. In this country corruption involves bribe, fraud, embezzlement as well as extortion (He, 2003). Some people give bribes to the hiring officials in order to secure employment. Some people are also employed or promoted to a higher position depen ding on whether they know leaders in the high ranks. These leaders may be their relatives, friends or even classmates.Advertising We will write a custom report sample on International Human Resource Management – Comparison between Australia and China specifically for you for only $16.05 $11/page Learn More In Australia, corruption is very minimal as compared to China and the country was ranked as the least corrupt country among the group of 20 developed nations (Brinsden, 2011). In China, human rights are normally considered when recruiting employees. Minors under the age of 16 are not supposed to be recruited. Employment discrimination is also discouraged, and there are equal employment rights for both male and female. The employees have the right to be employed and the right to labor safety and hygiene. Recommendation The human resource professional are supposed to be conversant with legal issues relating to employment in China. They should kno w the requirement of employment contracts in order to avoid the challenges they face in China. They should engage Chinese citizens in services to avoid the liability of being an employer. Human resource manager should advice the multinational companies to have a registered presence in China (Lam, 2004). They should comply with legal restrictions, which are found in this country. They should also comply with employment contracts requirement. They should also engage representative office in order to enter into business contracts. The human resource manager should also understand the human rights that are provided to the employees in China. References Brinsden, C., 2011. Australia ranked the least corrupt country in the G20. International  Business Journal , 11-12. He, Z., 2003. The study of the problem of corruption and anti-corruption in China.  Comparative economic and social systems , 19-23.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Lam, T., 2004. Human resources issues in the development of tourism in China.  Internationa journal of contemporary hospitality management , 1-4. Lan, L., 1995. Human resource management in Chinese hotels. International journal of  contemporary hospitality management , 1-5. Villa, M., 2009. Employment laws in China. International human resource journal , 17-21. This report on International Human Resource Management – Comparison between Australia and China was written and submitted by user Xavier Davenport to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. International human resource management Introduction Human resource management involves the management of workers or employees in an organization. It depends on the cultural and institutional framework. Human resource management varies from country to country. Good human resource management, is defined differently in different national cultures, and operates differently across the globe. International organizations try to deal with issues created by these differences.Advertising We will write a custom report sample on International human resource management specifically for you for only $16.05 $11/page Learn More Today the world has become more global in terms of technology, economies and communications. The development of international enterprises has resulted to the decline in traditional business boundaries. This has led to high rates of economic development. It can be noted that multinational companies have dominated the world economy. About 63000 international organizations dominate the w orld trade (Budwar, 2005). It accounts about two thirds of the world’s business. According to the recent study, each of the 10 largest multinational corporations has more annual sales than the Australian government tax revenues. Most of international business transactions involve two parts of multinational companies. Multinational companies act as global organizations with employees based in different parts across the globe. Globalization has been enhanced through fiscal consolidation such mergers and acquisitions (Sisson, 2003). According to the recent statistics, the worldwide foreign direct investment increased from 6500 billion dollars in 2000 to 10000 billion dollars in 2005. Today there is also global transfer of work through the creation of new jobs or global sourcing part of an individual’s work. The high skill white-collar job is being transferred to different countries. For instance, Bank of America is outsourcing about 1100 jobs, to Indian companies to reduc e labor cost. The aim of this report is to explore the main issues and theories of international human resource management and comparative human resource management. International human resource management International human resource management is the process of employing and developing people in international organizations. It is the management of people across the globe. It identifies the way in which international companies manage human resources across different countries and different cultures. It deals with the management of people beyond the national level. An international company is a company by which operations are carried out in subsidiaries overseas which rely on manufacturing capacity of the parent company. Different multinational companies have different magnitude attitudes and business styles (Wood, 2003).Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Human resource manag ers in international companies have to consider the impact of international influences in their work. In all international companies’ human resource management is one the key aspects in the success of the company. In most of these organizations, the cost of managing people is the largest single item of operating costs. The knowledge and capabilities inculcated in human resource is the key to success of the organization. Human resource management is vital to the survival and success of an organization. The human resource specialists are increasingly becoming internationally oriented in their functional activities. This is important, for people working in multinational corporations also those in small and medium sized enterprises. In the modern world, there is fee economic environment. Restrictions on labor movements are reduced in areas such as European Community (Sisson, 2003). The development of new technologies has enabled enterprises to operate internationally as soon as t hey are established. International corporations are not only in the private sector. Many international corporations, such as those in United Nations, the regional trade bodies, have employees working in different companies across the globe. Human resource managers working in international corporations are faced with the impact of multi-country, regional and global change. Such managers are supposed to be equipped with interpersonal skills, negotiation skills, strategic thinking, analytical and conceptual abilities. These managers will require a wide knowledge of knowledge in areas such as international business, international finance, local labor markets, international labor legislation, cultural differences, and international compensation and benefits. International human resource management involves organizations that manage people in different legal, institutional and cultural circumstances. It should also be aware of cost effective management practices (Budwar, 2005). Companies, which address the issue of international human resource management, have to deal with a range of policy and strategic issues. International human resource management identifies how multinational corporations ensure that organizations have international coherence.Advertising We will write a custom report sample on International human resource management specifically for you for only $16.05 $11/page Learn More It also explores how organizations apply cost effective approaches to managing people working in different countries across the globe. It ensures that organizations are able to manage those people who have to work in different countries in the world. International human resource management was believed to have the same main dimensions as human resource management in a national context but to operate on a large scale. It focuses on human resource practices that change when a firm goes international. The recent research on IHRM has pointed out the im portance of connect human resource policies and practices with organizational strategies. International management scholars have done extensive research on how multinational corporations have organized their operations globally. Several issues have been discussed by scholars. The strategy structure configurations of international organizations have been discussed by several authors. It involves changing from hierarchical structures to network structures. The differences between local and international human resource management are another key issue discussed by authors such as Adler and Bartholomew. It establishes the great complexity and strategic importance of the international role. How multinational corporations approach the staffing and management of their subsidiaries is another key issue explored by researchers. It provides factors for defining the modern approach to IHRM within an international organization. Organizational factors are considered to be very crucial in determi ning the extent of internal consistency. Integrative models have been developed, by scholars to demonstrate the complexity of human resource decisions in the international sphere. However, these models do not provide a solution to criticisms that have been leveled to IHRM. According to these criticisms the political, economic, social cultural and institutional contexts are described as contingency factors. This is despite the fact that it is known that firm level globalization is a country specific phenomenon.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Most of these models do not differentiate between cross national and cross cultural differences. Cultural relativity has made researchers focus on the hard human resource functional processes. Most of the researchers do not support idealist human resource management systems. For instance, the view of human resource management emphasizes on high performance work systems as a basis of comparisons. The researchers tend to ignore the subtle ways in which cultural and national difference influence the experienced reality of human resource management. Convergence and divergence argument assumes that human resource management system has to converge or remain divergent. It does not consider the fact that some parts of human resource system might be converging in some areas and converging in other areas (Dickmann, 2008). Analysis of IHRM should consider the range of distinctive national and local solutions to human resource issues in the organization. Human resource affordability is another key issue in IHRM. The increased interest in metrics indicates the need to deliver proven cost reductions and ensure human resource affordability (Wood, 2003). Most of international organizations committing most of their times to ensuring people are why they can be most cost effective. Most global human resource functions have undergone recent restricting in order to deliver global business strategies efficiently. Many international organizations are making substantial investments in getting things right. Human resource function is a path of organizational development which was identified in other service and specialist functions. Physical and cultural differences present barriers to successful knowledge transfer among human resource professionals. Global networking is an important aspect within international human resource management. However it is considered to be critical because of the identified organizational changes. International human resource professionals, mostly use info rmal networks, which is one of their main objectives. Networks are mostly applied in decentralized models of international human resource management. Global networks are used to reduce the impacts of bureaucracy and act as important decision making groups. International human resource management involves a number of key issues, which are supposed to be considered. Culture and environment difference is a key issue in international human resources. The demand of the globalized and liberalized business environment has made researchers pay attention to the study of cultures as an explanatory variable. Human resources managers across the globe have realized that it is essential to avoid parochial views when doing business across different cultures. Knowledge of cultural differences in different regions and a global focus is crucial for a business to survive in the modern business environment. Culture is a collective mental programming that people in a certain group have in common. This p rogramming is different from that of other groups, regions or nations. Today human resource managers of multinational corporations frequently encounter cultural differences. This has a negative effect to management practices in international organizations. Family structures, religious organizations, forms of government, work organizations, law, settlement patterns and buildings are common beliefs that derive from common culture. Competing demands of globalization and local differentiation has led to the need to establish human resources as a source competitive advantage. Globalization process is identified at different levels of industry, firm and functions (Dickmann, 2008). The impact of national culture on managing people involves the meaning of culture, the literature on cultural differences and identifies the extent to which aspects of work practices are nationally or locally based. Culture and organizational life involve the implications of performing business activities across national cultures for concepts of business management, and human resource management. Leadership is a major factor that influences the shape of human resource policies and practices. Different national cultures have different leadership styles which influences the human resource management. Individualism is a national culture attribute adopted by those people who give themselves and their families’ first priority. In this society, the ties between individuals are loose. Every person in this society looks at himself and the immediate family. Collectivism involves people who give first priority to, and finding protection in, the wider group. In this, people are integrated into strong, cohesive groups which protect them in exchange for loyalty (Sparrow, 2004). Different cultures allow for different sharing of power within the society. The challenge is the level of human inequality that indicates the operation of each particular society. Power distance is determined by power dis tance index. A society, which supports high power distance, will accept large separation of power between the rich and the poor in the society. Low power distance society will accept sharing of power where the gap between the top and the bottom is low. Uncertainty avoidance is the extent to which a society can be able to put up with uncertainty. Low avoidance society will not feel the need to avoid uncertainty. High avoidance society will feel challenged by uncertainty (Dickmann, 2008). Masculinity is the tendency of a nation to prefer assertiveness and materialism. It involves a community in which men’s roles are clearly defined. Femininity is where the society has a high concern for relationships and welfare of other people. In this case, the gender roles in the society overlap. According to Masculinity Index, Japan tops the list of countries with high gender roles distinction at work. The low gender roles distinction at work was identified in France, Spain, Salvador and Ea st Africa. It was characterized by cooperation at work and a close relation between employees and the boss. High gender roles were characterized by challenge and recognition in jobs, belief in individual decisions, high stress on the job, and preference for large corporations (Clark, 2000). International human resource involves international organizational models. The first model is decentralized federation, which is the traditional multinational corporation. In this model, each national organization is managed as a separate company that seeks to optimize its performance in the local environment (Sparrow, 2004). Coordinated federation is another model which involves the centre developing sophisticated management systems to maintain overall control although the scope is given to local management. Centralized hub is a model, which focuses on the international market rather than local markets. These organizations are global rather than multinational. Transnational is another internatio nal organization model. In this model, the organization establishes multidimensional strategic capacities which help the organization to compete across the globe. It also enables responsiveness to market demands. Another key issue facing international organizations is convergence and divergence. This is the extent to which the international human practices should either converge in the same location or diverge in response to local requirements. The major decisions are made by the parent company, but there is a need to much local autonomy as possible in order to ensure that local demands are taken into account (Dowling, 2008). There are several factors that enhance increase in convergence, the power of markets, and the importance of cost, quality and productivity pressures benchmarking best practice. The idea of best practice theory recommends the implementation of best practices in human resource management, which will improve the performance of the organization. There are several b est practices for achieving competitive advantages through putting people first. These best practices include selective hiring, providing employment security, extensive training, sharing information, high payment based on companies’ performance among others. However, it is difficult to draw a generalized conclusion about which is the best human resource management practice. Best fit or the contingency approach to human resource management is another approach of academic theory. It argues that human resource management may improve performance of an organization when there is a close relationship between the practices and company’s strategy. This ensures that there is a close relationship between the human resource policies and the external market or business strategy (Guest, 2007). The life cycle model assumes that human resource policies can be based on the levels of organization development. Competitive advantage models assume that human resource policies are based on competitive strategy adopted by the organization. Configuration models recommend for an organization to close examine its strategy in order to determine the best human resource policies and practices (Sparrow, 2004). This argument states that, the organization’s strategy can be highlighted, but many organizations thrive in a state of flux and growth. The resource based view is considered as the foundation of modern human resource management. It concentrates on the internal human resources of the company, and how they contribute to competitive advantage. This model argues that human resource management plays a significant role in establishing human resources that are important and effectively organized. The theory of human resource management assumes that the objective of human resource management is to enable a company to achieve it strategic objectives through attracting and maintaining employees. Human resource management approach attempts to ensure a close relationship or ganization’s employees and the overall strategic objective of the company (Brewster, 2002). In the view of academic theory of human resource management, human beings are not robots, thus this call for the Importance of an interdisciplinary evaluation of staff in the work place. Academic fields such as economics, psychology, industrial relations and sociology play a vital role in enhancing the academic theory of human resource management. Critical theories such as postmodernism and post-structuralism also play a very significant role in ensuring that people are treated well in the work place. International human resource management involves various processes, which enables achievement of established goals and objectives (Adler, 2000). Comparative human resource Comparative human resource management explains the way human resource management differs between different regions and countries across the globe. Most countries have more or less regional differences which includes one or many language groups. Countries have different economic and political system, education, employment laws all these factors should be considered in order to understand and apply effective human resource management policies. Most nations have various cultures that have implications to human resource management (Clark, 2000). Most organizations face challenges of adapting their human resource management practices to the new set of cultures. In the process of globalization, organizations begin to do business in different areas.During this process the number and variety of cultures changes. Organizations are supposed to adapt new human resource policies in order to curb these challenges. As cultures increase and organizations try to treat each different culture with respect, several practical issues may come up making business operation more difficult. For instance, the case of religious and secular holidays to be honored based on the cultural representation in the work place. The of ficial language spoken in the work place is another cultural issue influencing human resource management. Many countries differ in terms of legal, political labor market, and economic conditions. These are critical issues affecting comparative human resource management. Comparative human resource management indicates how human resource practices are affected by different cultures. Cultural perspective on comparative human resource management is based on Hofstede’s (1980). He identified four distinct cultural value dimensions. The four dimensions include power distance, uncertainty avoidance, masculinity/femininity, and individualism/collectivism. According to him cultural differences are embedded to human resource manager’s way of thinking, which guides managerial actions and choices (Clark, 2000). Different cultures in different regions affect the human resource manager’s decision making and job performance. The effect of cultures on human resource management h elps in understanding managerial behavior and reactions. This notion has been highly criticized due to the limited number of dimensions, which do not capture the richness of the cultural environment. Effect of culture on human resource management is also challenged because of his insistence that national features persist over time. The four dimensions are statistical constructs developed on responses without a deep understanding of the underlying processes. The issue of cultural differences indicates the differences between low context and high context societies. Context is described as the information that surrounds a certain event. In high context societies, the external environment and non verbal cues are very influential factors in the communication process (Clark, 2000). High context cultures include countries such as Japan, Arab and southern European societies. Low context cultures involve clear and written forms of communication. Examples of low context societies are Anglo-Sa xon and northern European. Culture is viewed as important values regarding relationships among people and their environment. Kluckhohn developed four basic value orientations. He later subdivided these orientations into dimensions to determine cultural variations across different societies. These cultural orientations have been used, by researchers to explain significant differences of human resource management practices across different nations in the world. However, these orientations are rarely applied to human resource management research because of the complexity. Recently additional cultural dimensions have been developed to identify the effect of culture on the design and implementation of human resource management policies and practices. For instance, development of the paternalism dimension is one of the significant cultural dimensions. It involves the extent to which a society encourages and accepts that, people with authority provide care, guidance and protection to their subordinates. Subordinates in paternalistic societies are respect and loyalty to their superiors. Another recent cultural dimension is fatalism which is the belief of societal members that the results of their actions are not totally controlled. Managers who take on managerial posts in a certain culture are socialized along similar values and beliefs. The character of culture helps to socialize new generations of members and reinforce the predominant cultural values and norms. According to social cognition theory, a person’s cognition is greatly influenced by ones cultural background. Culture usually affect the way in which individuals choose, interpret and validate information in order to identify and categorize issues (Adler, 2000). It is a powerful determinant in how human performance problems are viewed and how their solutions in the form of employee development. Cultural values normally influence how human resource management practices such as recruitment, selection, pr omotion, performance appraisal are designed and implemented. (Begin 377) Different cultures are adopted by different social groups (Dickmann, 2008). These social groups may make the adoption of certain human resource management policies politically and socially unacceptable. The impact of culture on human resource policies through impact on institutions is an important mechanism. Cultural differences influence the key comparative human resource management practices. For instance, recruitment, selection and retention practices differ across different cultures. Recruitment and selection in cultures of high performance orientation are based job related knowledge and technical skills. Collectivist cultures prefer the use of internal labor markets to promote loyalty. The externally recruited candidates find it difficult to enter the strong social networks within the organization. High on uncertainty avoidance cultures use a lot of selection tests, and conduct more interviews (Tayeb, 2005 ). This shows that there is a great desire to collect objective data for making selection decisions. Cultures high on performance orientation use standardized and job specific selection methods. Compensation and benefit schemes are designed according to different cultural settings. Compensation systems in universalistic cultures are based on formal, objective and systematic in relation to the value of a job within the organization. High power distance and fatalistic cultures have low performance reward contingencies. Uncertainty avoidance cultures prefer skilled based reward systems (Dickmann, 2008). Low uncertainty avoidance cultures focus on individual performance based pay. Individualistic societies put a lot of emphasis on personal achievement in performance appraisal. On the other hand, collectivist cultures concentrate on group based achievements. Issues discussed during the performance appraisal vary according to different cultures. For instance, individualistic cultures conc entrate on discussing employee’s potential for future promotion based on task performance. Collectivist societies focus mostly on seniority based promotion decisions (Dowling, 2008). Cultural variations have great influence on training and development. Fatalistic cultures don not recognize the importance of training and development. High power distance cultures employ senior managers instead of external trainers as instructors in order to ensure a high level of credibility and trust. Comparative human resource management provides, managers working in multinational corporations with guidelines on how to design and implement an effective human resource management system in different cultural contexts. Criticism of comparative human resource management is seen in the debate on localization versus standardization and in the process of transferring human resource management policies across countries (Briscoe Schuler, 2008). Comparative cross cultural research is faced with a lot of methodological problems, which limit the researchers in making valid conclusions. Dimensional approaches of culture on human resource management may have a weakness if culture is not measured directly. If cultural scores are disrupted, the analysis using these scores may also be disrupted making the conclusions suspicious. The issue of culture in comparative human management may also be affected by the original cultural models (Harzing, 2004). Conclusion Human resource management is a very important subject in the portfolio of management activities. International human resource management and comparative management have developed in the process of globalization. Managing international HRM explores the critical elements of effectiveness for HR on global (Tayeb, 2005). There are several key issues and theories developed in the context of international human resource management and comparative human resource management. International human resource management explores the way in whi ch international companies manage their human resources across different regions and countries across the globe. It also explores how multinational corporations ensure that organizations use cost effective approach in managing people in all countries across the globe. In all the multinational corporations and international organizations, human resource management plays a vital role in enhancing success (Scullion, 2006). On the other hand, comparative human resource management explores the differences of human resource management in various areas, regions, and countries in the world. Countries have different language groups, different labor markets, education systems and employment laws. This makes human resource management vary from country to country. Cultural differences between regions and nations are a major factor in the increasing internationalization of employment. The knowledge of cultural differences is a significant part of an international manager’s brief. The huma n resource activities such as selection, recruitment, training and development, reward and performance appraisal among others are greatly affected by cultural values and practices. Great care should be taken in considering whether to adopt standardized human resource policies and practices throughout in the whole world. Finally, international human resource management and comparative human resource management are major concerns of multinational corporations and even medium companies across the globe (Harzing, 2004). References Adler, N., 2000. Strategic human resource management. Human resource management  in international comparison , 237-238. Begin, J., 2002. Comparative HRM. International journal of human resource management , 376-377. Brewster, C., 2002. Strategic human resource management. Management international  review , 45-46. Briscoe, D., Schuler, R., 2008. International human resource management. Chicago: Taylor Francis. Budwar, P., 2005. Rethinking comparative and cross national human resource. The  international journal of human resource management , 497-498. Clark, T., 2000. Researching comparative and international human resource management. International studies of management and organizations , 20-21. Dickmann, M., 2008. International human resource management. New York: Taylor    Francis. Dowling, P., 2008. International human resource management:managing people in a  multinational context. Cengage Learning EMEA: Chicago. Guest, D., 2007. Human resource management and performance. International journal  of human resource management , 263-264. Harzing, A., 2004. International human resource management. New York: SAGE. Scullion, H., 2006. Global staffing. California: Routledge. Sisson, K., 2003. In search of HRM. British journal of industrial relations , 201-202. Sparrow, P., 2004. Globalizing human resource management. California: Routledge. Tayeb, M., 2005. International human resource management: a multinational company  pers pective. London: Oxford University Press. Wood, S., 2003. The four pillars of HRM. Human resource management journal , 49-50. This report on International human resource management was written and submitted by user Keith V. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. International Human Resource Management Introduction International human resource has gained a lot of attention among the researchers in the recent past. The world has been reduced into a small village due to technological advancements. Technological advancements, especially in the field of transport and communication have had a massive effect on human resource.Advertising We will write a custom report sample on International Human Resource Management specifically for you for only $16.05 $11/page Learn More Human resource can therefore, move from one geographical location to another with a lot of ease.1 The improved communication system has also brought about scenarios where a firm can employ individuals who are miles away from the company. It is currently a common phenomenon to find a situation where an Australian company employs an Indian staying in India as a customer service officer who receives calls and give direction to customers on phone. This has resulted in what is popularly referred to as international human resource management.2 There is need to manage employees beyond the borders. This is especially so when it comes to globalized firms which have operations going beyond the borders of the parent country. The world is experiencing radical changes in the labor environment. International human resource management globally is an area that is vital and requires special attention for it is the backbone of all sectors of the economy of any given country.3 This has become one of the legislative areas, calling for many political leaders to spend much of their time and brains in finding solutions to issues that emanate from work and labor. In search for the same, countries like the Australia have established several education centers that aim at expanding public understanding on important issues affecting the working group. In these institutions they admit under graduate who take studies in areas related to human resource management. In Australia, laws have been enact ed to guide the labor market. Managing employees in this century needs an understanding of various societal factors within the organization. It is important to understand different social settings of different employees in order to be able to understand their behavior within the organization. Understanding organizational behavior is the key to having employees working as a unit. Managing and Developing Employees in International Setting The current world is experiencing a lot of changes in the labor market. The competition in the international labor market is becoming stiff each day.4 Globally, technology has posed both positive and negative impacts in the global labor market. Although it has made the work easier, it has again replaced the human labor that is vital in the world market.5Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Economically, international or local trade is the backbo ne of any stable nation. In the working environment, employees have been faced with several challenges that need to be addressed by any nation seeking to compete in the world market. It is important to understand how both the expatriate and local employees. This is elaborated as stated below. Expatriate Employee The current world has greatly encouraged international trade. People from different countries meet together in the world market, competing with an aim of maximizing their output. There is an exchange of business experts from one field to another moving from one country to another, others reside in foreign countries for business purposes. When dealing with the expatriate, it will be important to understand their social background in order to predict their behavior. The management should act having a clear understanding that expatriates have a number of factors that make them unique from the locals. This should be put into consideration when managing them. Local employees The local employees are always easier to manage than expatriates.6 Managing the locals involves understanding the local forces that affects their behavior. This would involve understanding the social factors that have direct impact to the human resource. Local employees have the capacity to transform the parent firm which should be a guide to other branches. There are regulations that the Australian government has put in place to ensure that the rights of employees are respected, irrespective of their citizenship. These regulations protect both the locals and the expatriates working in this country. The following are some of the highly observed regulations in this country. Regulation of Employment Relationship The law clearly spells the type of relationship that should exist between various institutions within an organization. Within an organization, the two common types of relationship that exist are the employer-employee relationship, and employee-employee relationship. There is a way in which the employer should relate with his or her employees.7 There should be mutual respect between the employer and the employee and each should ensure that they do not infringe into the others right. The employer should respect the right of the employee and ensure that he or she is appropriately compensated for the work done.8 The employee on the other hand has the responsibility to meet the standard expected of him or her at the workplace.Advertising We will write a custom report sample on International Human Resource Management specifically for you for only $16.05 $11/page Learn More Regulation of Discrimination in Employment Discrimination of whatsoever form is strictly prohibited by the law of the land. The law clearly states that the employer should not discriminate on any basis when hiring or directing the employees. The country has enacted law that prohibits employers from discriminating employees based on race, gender, religion, age or any other demographic basis.9 The affirmative action was meant to demonstrate further that employers are not allowed to discriminate against women at their workplace simply because they are women. This is so even when a firm is dealing with expatriates. Legislation was enacted that protects employees both locally and in the international forum. Such an employer who engages in discriminative acts may face litigation in a court of law. Regulation of Employment Environment It is always very important for an employer to ensure that the working environment is safe enough for the employees. In various occasions, employees are always subjected to working environments that are not conducive to their health or such other factors based on their country of origin.10 The employees have right to their privacy. As such, it would be going against the law for the employer to intrude into the privacy of the employer. It would be wrong for the employer to demand information that can pass as confidential from the employees if the information does not directly relate to the task. This is irrespective of whether this information is gotten directly from the employee by inquiry, or through the third party, the employer is not allowed obtain information from the employer against the employees wish. Occupational Safety and Health An employee should be safe when working in various units of the organization irrespective of their country of origin. At no given point should the general well being of the employee be at risk. The employer has the responsibility to ensure that the safety of all employees is well taken care of both within the plant and when sent on duties outside the firm. The employer must also factor in health of the employees.11 At no point should the employees be subjected to working conditions that may have adverse effects on their health. Fair Labor Standards Act The Fair Labor Standards Act was a legislation that was meant to help the employer and the employee relate well . The employer needs perfection from the employees for the compensation paid on a monthly or weekly basis. On the other hand, there is a capacity that an employee should have. The law regulates the expectation of the employer and the output of employee to ensure fairness. Importance of IHRM to Organizations and Individuals from a Practical Perspective From a practical perspective, international human resource management is very important both to individuals and organization. To an organization which hopes to venture into international markets, there is need to understand international human resource management in order to operate successfully in the international market.12Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The organizational factors that are considered locally are very different from that that affects the labor market internationally. It would therefore, be important to understand the labor market of each individual country because it would always be unique from others. This would require unique treatment in order to achieve the desired results. Implementing the Strategies For a long time, labor has not been given its rightful position in many organizations. Many of the managements have not thought of viewing their employees as very important asserts. However, the happenings of the recent past have proven that labor force is one of the most important asserts to any given organization.13 When the management lays down objectives to be achieved, it is always the employees who are expected to implement the policies that would bring the desired results. It is this work force that would be expected to turn the policies from paper to reality. Therefore, retention of employees is very importa nt. Employees should be retained within the organization to ensure that the firm’s operations are consistent. High turnover rate of employees is not healthy for the firm’s prosperity. This is because it does not only affect the smooth implementation of policies within the firm, but also leads to increased cost of training new employees. It is even worse that the employees would go away having learnt the strategies of the firm, making the firm vulnerable to its competitors.14 The management should therefore device methods of hiring qualified employees and retaining them within the firm. One of the best ways to achieve this is through motivation. It is through motivation that employees will feel attached to the firm and therefore feel committed to the firm. Motivation is very important in international human resource management. Relationship between Employee Motivation and Success of a Firm in the Global Market Employees are the implementing arm of the organization. Whil e the top executives formulate the policies to be implemented by the organization, most of their tasks always end in the paper.15 It is upon the employees to make these blueprints a reality. In his words, employees are the engine of the organization. When well taken care of and put in a proper condition, they would always give the best of the results to the organization. However, when they are neglected and left to ‘rust’ they will always give leap service and the output will be very disappointing. Motivating employees within the organization is very important. There is a direct link between employee motivation and success of a firm. It is very important that a firm increases the rate of employee motivation because of a number of reasons. In most of the occasions, policies are always developed to last for one whole year.16 However, these policies are always units in the larger vision of the firm. A vision may be developed to be achieved in a time span of say thirty year or so. This duration is long and the firm may not take a direct approach towards achieving this vision. It therefore has to split this vision into yearly strategic objectives. When the year begins, the firm would plan with its current work force. When some of the employees leave along the year because of lack of motivation, it would be a blow to the success of that year’s strategic objectives. The firm would be forced to look for a replacement and train them and make them understand the objectives to be achieved. This is time consuming and costly venture that would reduce the success of the organization. Changing the employees on a yearly basis is not good either. This is because in so doing, the vision of the firm will be lost. It will not be possible to realize the vision because every year, the firm would be forced to start with new employees who may not understand the vision, and how it was developed in the first place. This minimizes chances of achieving expected goals within the organization. Strategies of Employee Motivation To ensure that there is a constantly motivated workforce, it would require the management to employ the right strategies that would ensure that it succeeds in this. It may appear as a simple task of making employees happy.17 However, it goes beyond this, especially when it comes to managing employees in overseas countries. To motivate employees within the firm, there are a series of strategies that a firm should employ in order to ensure that employees are constantly satisfied. The secret behind retention lies in ensuring that the employee is satisfied and feels challenged with the present task. This will cause the drive in him to want to come tomorrow and beat the challenge.18 The recommendations below gives a detailed strategy of how to employ the right individuals to the firm, and how such individuals should be retained, once employed. Conclusion International human resource management has become very relevant in the curr ent global society. The world has been reduced into a small global village where labor can move from one part of the country to another. Firms are also investing in the global market. This means that human resource managements should have a sound understanding of the global labor market in order to operate successfully in the global market. Bibliography Arthur, Joan. â€Å"Effects of human resource systems on manufacturing performance and turnover.† The academy of management journal, 37.3 (2008): 670-687. Barney, John. â€Å"Firm resources and sustained competitive advantage.† Journal of management, 17.1 (2010): 99. Baruch, Yusuf. â€Å"Response rate in academic studies-A comparative analysis.† Human relations, 52.4 (2006): 421-438. Boselie, Paul. â€Å"Commonalities and contradictions in HRM and performance research.† Human Resource Management Journal, 15.3 (2005): 67-94. Brewster, Charles. â€Å"A continent of diversity.† Personnel management Lon don, 5.9 (2008): 36-40. Budhwar, Prisca. â€Å"Rethinking comparative and cross-national human resource management research.† The International Journal of Human Resource Management, 12.3 (2006): 497-515. Cutcher, Gershenfeld. â€Å"Impact on Economic Performance of a Transformation in Workplace Relations.† Management Journal, 44 (2007): 241. Evans, Paul. The global challenge: international human resource management. New York: McGraw-Hill Irwin, 2011. Fey, Cecil. â€Å"The effect of human resource management practices on MNC subsidiary performance in Russia.† Journal of International Business Studies, 32.1 (2012): 59-75. Grobler, Pieter. Human resource management in South Africa. London: Thomson Learning, 2006. Guest, Daniel. â€Å"Human resource management and performance: a review and research agenda.† The International Journal of Human Resource Management, 8.3 (2009): 263-276. Guest, Edwin. â€Å"Human resource management and industrial relations.† Journal of management Studies, 24.5 (2001): 503-521. Guthrie, James. â€Å"High-involvement work practices, turnover, and productivity: Evidence from New Zealand.† The Academy of Management Journal, 44.1 (2002): 180-190. Hamill, Jane. â€Å"Labour relations decision making within multinational corporations.† Industrial Relations Journal, 15.2 (2006): 30-34. Hedlund, Gerald. â€Å"The hypermodern MNC—a hierarchy?† Human resource management, 25.1 (2004): 9-35. Jensen, Titus. â€Å"The impact of human resource management practices on turnover, productivity, and corporate financial performance.† Academy of management journal, 38.3 (2011): 635-672. Marchington, Moses. â€Å"Involvement and participation.† Human Resource Management: A Critical Text, 7(67): 280-305. Stahl, Günter. Handbook of research in international human resource management. Cheltenham: Edward Elgar Publishers, 2012. Footnotes 1 Hedlund, Gerald. â€Å"The hypermodern MNC —a hierarchy?† Human resource management, 25.1 (2004): 9-35. 2 Pieter Grobler, Human resource management in South Africa (London: Thomson Learning, 2006), 28. 3 Marchington, Moses. â€Å"Involvement and participation.† Human Resource Management: A Critical Text, 7(67): 280-305. 4 James Guthrie. â€Å"High-involvement work practices, turnover, and productivity: Evidence from New Zealand.† The Academy of Management Journal, 44.1 (2002): 180-190. 5 Titus Jensen. â€Å"The impact of human resource management practices on turnover, productivity, and corporate financial performance.† Academy of management journal, 38.3 (2011): 635-672. 6 Edwin Guest. â€Å"Human resource management and industrial relations.† Journal of management Studies, 24.5 (2001): 503-521. 7 Daniel Guest. â€Å"Human resource management and performance: a review and research agenda.† The International Journal of Human Resource Management, 8.3 (2009): 263-276. 8 Jane Hami ll. â€Å"Labour relations decision making within multinational corporations.† Industrial Relations Journal, 15.2 (2006): 30-34. 9 Paul Evans, The global challenge: international human resource management (New York: McGraw-Hill Irwin, 2011), 34. 10 Cecil Fey. â€Å"The effect of human resource management practices on MNC subsidiary performance in Russia.† Journal of International Business Studies, 32.1 (2012): 59-75. 11 Prisca Budhwar. â€Å"Rethinking comparative and cross-national human resource management research.† The International Journal of Human Resource Management, 12.3 (2006): 497-515. 12 Gershenfeld Cutcher. â€Å"Impact on Economic Performance of a Transformation in Workplace Relations.† Management Journal, 44 (2007): 241. 13 Paul Boselie. â€Å"Commonalities and contradictions in HRM and performance research.† Human Resource Management Journal, 15.3 (2005): 67-94. 14 Charles Brewster. â€Å"A continent of diversity.† Personnel m anagement London, 5.9 (2008): 36-40. 15 Günter Stahl, Handbook of research in international human resource management (Cheltenham: Edward Elgar Publishers,( 2012), 56. 16 Joan Arthur, â€Å"Effects of human resource systems on manufacturing performance and turnover.† The academy of management journal, 37.3 (2008): 670-687. 17 John Barney. â€Å"Firm resources and sustained competitive advantage.† Journal of management, 17.1 (2010): 99. 18 Yusuf Baruch. â€Å"Response rate in academic studies-A comparative analysis.† Human relations, 52.4 (2006): 421-438. 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