Youve come a long way baby Essay Example For Students

Youve come a long way baby Essay Shakespeares presentation and portrayal of his female characters in The Merchant of Venice and Henry V follows a typical pattern that is present in all of the Shakespearean plays that I have read so far. When looking closely at the fate of his female characters, this pattern becomes even more evident for it repeats itself no matter how different the plays are. For instance, Henry V and The Merchant of Venice are different in every respect. The female characters not only come from different backgrounds, they also have very different personalities. However, as different as these plays and their characters are, the female characters end up suffering the same fate. It doesnt seem to matter whether they are born into a life of peasantry, nobility, or come from royalty, for they ultimately will end up being no better than a piece of land, or cattle, or some possession that a man can own and do with as he pleases. Scholars have been debating for centuries now as to whether Shakespeares wome n reflect his societys attitudes or that of his own. Henry V is definitely geared more for the male audience. There are only two or three acts in which a female character is present at all. When we first get a glimpse of Katherine, she is trying to learn the English language. This scene is supposed to be somewhat comical, but are we really supposed to believe that while there is a war raging throughout her country, that all Katherine is concerned about is the fact that she cant speak the language of her enemy? This scene in which we get our first glimpse of Katherine is somewhat degrading to her character as well as misleading. This leaves the audience with the inaccurate perception that Katherine, and thus all women in general, care very little about whats going on around them, and more about making themselves presentable. Afterall, isnt Katherine the Grand Prize that will be awarded to the winning side? I find it very insulting that Shakespeares only significant female role in the whole play, is being used as a Prize to be given away.Shakespeare doesnt even try to hide the fact that he is setting Katherine up as a prize. I find this kind of arrogance to be offensive and very belittling to women. While the men are off fighting the battle, Katherine, the future Queen of France, does not appear to be a bit concerned over the fate of her own country. Instead, she readily accepts her fate as she prepares herself for the role of Queen of England. We will write a custom essay on Youve come a long way baby specifically for you for only $16.38 $13.9/page Order now This play is very biased and one-sided. Most of the English men are portrayed as noble, humble and superior to the French. Henry himself can do no wrong, and is portrayed through out the play as the best leader that the English have ever had. This image that he can do no wrong and is as close to being perfect as one can get, only holds up if you dont go digging around in Henrys past, in which he had been portrayed as a spoiled, pampered partying boy. The French, in contrast to the English, are presented as arrogant, incompetent, and weak, very similar to what Henry had been not to long ago. There is, however, one thing lower than a Frenchman, and that is, a French woman. The fact that Shakespeare subjected Katherines character, (she, who had been born into royalty which was the highest social position one can reach), to being treated as a possession or prize for a man, only adds credence to the argument that Shakespeare had very little respect for women. Katherine character, for the most part, adds very little, if anything at all, to the play. In fact, the role of Katherine could have easily been omitted altogether, and personally, I wish it had been The last act, in which Henry easily manages to win the affections of Katherine, is a weak attempt on Shakespeares part to end the play on a an uplifting note.Its a shame that Shakespeare put it in at all because it definitely changes the way I feel about this play, in particular, as well as the others. The women characters in The Merchant of Venice are treated with much more respect than Katherine had been. However, I have a feeling that its only due to the fact that Shakespeare thinks less of Jews than he does women. The Merchant of Venice, does have a strong cast of women who play very important roles throughout the play. These women are much more impressive than those found in Henry V. Portia, in particular, is by far the superior one of the play. Like Queen Elizabeth herself, Portias character is a blending of femininity and masculinity.Portia has great strength of character, a quick wit, and is very well educated in the affairs of the world around her which is not a common theme in Shakespeares women. She is in every respect far superior to the fools she ends up being surrounded by. This might not have been the case if it werent for the fact that she, with all her intelligence and wit is still being dictated by a male. Her dead father dictates her life through his will. I gues s Shakespeare does not miss an opportunity to put even the most superior of all women in her place as he does just that to Portia. For all her power, riches, and strengths, she still is no better than the man she marries. Her new husband, Barsenio, is no match for her, and yet he is handed over everything that belongs to her, including her soul. Although Shakespeare gives the very best of qualities and traits to the female character Portia, he knows that in spite of her superiority and domination over all the other characters including the male characters, he can later strip her of all her greatness at any time, and does just that at the end of the play. What I find so unbelievable is the way that Shakespeares women just hand over everything including themselves, no questions asked, to a man they hardly know and yet willingly and happily marry. I have a hard time believing that women of his day did this duty so graciously. .uf6d0cf8a3d4ae4c54be7f8c3f89761cc , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .postImageUrl , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .centered-text-area { min-height: 80px; position: relative; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:hover , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:visited , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:active { border:0!important; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .clearfix:after { content: ""; display: table; clear: both; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:active , .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .centered-text-area { width: 100%; position: relative ; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:hover .ctaButton { background-color: #34495E!important; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc .uf6d0cf8a3d4ae4c54be7f8c3f89761cc-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .uf6d0cf8a3d4ae4c54be7f8c3f89761cc:after { content: ""; display: block; clear: both; } READ: For many years now I have listened to teachers spe EssayPortias portrayal of being such a strong figure and at the same time, a woman who is subservient to her times, makes me question whether Shakespeare really knew what was gong on in the minds of the Elizabethan women. Just the fact that he disguises his women characters up as men in order to bring them to higher levels, leads me to believe that he is just making it all up as he goes along. Dont get me wrong, I love most of Shakespeares work. Its just his female characters that I have a problem with. When reading Shakespeare it is easy to question what his motives might have been. Scholars have been doing this for centuries. We will never be sure as to whether or not Shakespeare was reflecting the times or his own feelings. One must keep in mind when reading Shakespeare that hs writings are not historically accurate and therefore most likely only reflect his views on things. I only hope that is the case, for I cant imagine women ever being so passive. Could we have really been the passive beings that Shakespeare portrays women as, I seriously doubt it. Shakespeares presentation and portrayal of his female characters in The Merchant of Venice and Henry V follows a typical pattern that is present in all of the Shakespearean plays that I have read so far. When looking closely at the fate of his female characters, this pattern becomes even more evident for it repeats itself no matter how different the plays are. For instance, Henry V and The Merchant of Venice are different in every respect. The female characters not only come from different backgrounds, they also have very different personalities. However, as different as these plays and their characters are, the female characters end up suffering the same fate. It doesnt seem to matter whether they are born into a life of peasantry, nobility, or come from royalty, for they ultimately will end up being no better than a piece of land, or cattle, or some possession that a man can own and do with as he pleases. Scholars have been debating for centuries now as to whether Shakespeares wome n reflect his societys attitudes or that of his own. Henry V is definitely geared more for the male audience. There are only two or three acts in which a female character is present at all. When we first get a glimpse of Katherine, she is trying to learn the English language. This scene is supposed to be somewhat comical, but are we really supposed to believe that while there is a war raging throughout her country, that all Katherine is concerned about is the fact that she cant speak the language of her enemy? This scene in which we get our first glimpse of Katherine is somewhat degrading to her character as well as misleading. This leaves the audience with the inaccurate perception that Katherine, and thus all women in general, care very little about whats going on around them, and more about making themselves presentable. Afterall, isnt Katherine the Grand Prize that will be awarded to the winning side? I find it very insulting that Shakespeares only significant female role in the whole play, is being used as a Prize to be given away.Shakespeare doesnt even try to hide the fact that he is setting Katherine up as a prize. I find this kind of arrogance to be offensive and very belittling to women. While the men are off fighting the battle, Katherine, the future Queen of France, does not appear to be a bit concerned over the fate of her own country. Instead, she readily accepts her fate as she prepares herself for the role of Queen of England. .ufb896e381deb494cb8cead5b837cfa39 , .ufb896e381deb494cb8cead5b837cfa39 .postImageUrl , .ufb896e381deb494cb8cead5b837cfa39 .centered-text-area { min-height: 80px; position: relative; } .ufb896e381deb494cb8cead5b837cfa39 , .ufb896e381deb494cb8cead5b837cfa39:hover , .ufb896e381deb494cb8cead5b837cfa39:visited , .ufb896e381deb494cb8cead5b837cfa39:active { border:0!important; } .ufb896e381deb494cb8cead5b837cfa39 .clearfix:after { content: ""; display: table; clear: both; } .ufb896e381deb494cb8cead5b837cfa39 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .ufb896e381deb494cb8cead5b837cfa39:active , .ufb896e381deb494cb8cead5b837cfa39:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .ufb896e381deb494cb8cead5b837cfa39 .centered-text-area { width: 100%; position: relative ; } .ufb896e381deb494cb8cead5b837cfa39 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .ufb896e381deb494cb8cead5b837cfa39 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .ufb896e381deb494cb8cead5b837cfa39 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .ufb896e381deb494cb8cead5b837cfa39:hover .ctaButton { background-color: #34495E!important; } .ufb896e381deb494cb8cead5b837cfa39 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .ufb896e381deb494cb8cead5b837cfa39 .ufb896e381deb494cb8cead5b837cfa39-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .ufb896e381deb494cb8cead5b837cfa39:after { content: ""; display: block; clear: both; } READ: Burmese Days Essay PaperThis play is very biased and one-sided. Most of the English men are portrayed as noble, humble and superior to the French. Henry himself can do no wrong, and is portrayed through out the play as the best leader that the English have ever had. This image that he can do no wrong and is as close to being perfect as one can get, only holds up if you dont go digging around in Henrys past, in which he had been portrayed as a spoiled, pampered partying boy. The French, in contrast to the English, are presented as arrogant, incompetent, and weak, very similar to what Henry had been not to long ago. There is, however, one thing lower than a Frenchman, and th at is, a French woman. The fact that Shakespeare subjected Katherines character, (she, who had been born into royalty which was the highest social position one can reach), to being treated as a possession or prize for a man, only adds credence to the argument that Shakespeare had very little respect for women. Katherine character, for the most part, adds very little, if anything at all, to the play. In fact, the role of Katherine could have easily been omitted altogether, and personally, I wish it had been The last act, in which Henry easily manages to win the affections of Katherine, is a weak attempt on Shakespeares part to end the play on a an uplifting note.Its a shame that Shakespeare put it in at all because it definitely changes the way I feel about this play, in particular, as well as the others. The women characters in The Merchant of Venice are treated with much more respect than Katherine had been. However, I have a feeling that its only due to the fact that Shakespeare thinks less of Jews than he does women. The Merchant of Venice, does have a strong cast of women who play very important roles throughout the play. These women are much more impressive than those found in Henry V. Portia, in particular, is by far the superior one of the play. Like Queen Elizabeth herself, Portias character is a blending of femininity and masculinity.Portia has great strength of character, a quick wit, and is very well educated in the affairs of the world around her which is not a common theme in Shakespeares women. She is in every respect far superior to the fools she ends up being surrounded by. This might not have been the case if it werent for the fact that she, with all her intelligence and wit is still being dictated by a male. Her dead father dictates her life through his will. I gues s Shakespeare does not miss an opportunity to put even the most superior of all women in her place as he does just that to Portia. For all her power, riches, and strengths, she still is no better than the man she marries. Her new husband, Barsenio, is no match for her, and yet he is handed over everything that belongs to her, including her soul. Although Shakespeare gives the very best of qualities and traits to the female character Portia, he knows that in spite of her superiority and domination over all the other characters including the male characters, he can later strip her of all her greatness at any time, and does just that at the end of the play. What I find so unbelievable is the way that Shakespeares women just hand over everything including themselves, no questions asked, to a man they hardly know and yet willingly and happily marry. I have a hard time believing that women of his day did this duty so graciously. Portias portrayal of being such a strong figure and at the same time, a woman who is subservient to her times, makes me question whether Shakespeare really knew what was gong on in the minds of the Elizabethan women. Just the fact that he disguises his women characters up as men in order to bring them to higher levels, leads me to believe that he is just making it all up as he goes along. Dont get me wrong, I love most of Shakespeares work. Its just his female characters that I have a problem with. When reading Shakespeare it is easy to question what his motives might have been. Scholars have been doing this for centuries. We will never be sure as to whether or not Shakespeare was reflecting the times or his own feelings. One must keep in mind when reading Shakespeare that hs writings are not historically accurate and therefore most likely only reflect his views on things. I only hope that is the case, for I cant imagine women ever being so passive. Could we have really been the passive beings that Shakespeare portrays women as, I seriously doubt it. Bibliography: Youve come a long way baby Essay Example For Students Youve come a long way baby Essay Shakespeares presentation and portrayal of his female characters in The Merchant of Venice and Henry V follows a typical pattern that is present in all of the Shakespearean plays that I have read so far. When looking closely at the fate of his female characters, this pattern becomes even more evident for it repeats itself no matter how different the plays are. For instance, Henry V and The Merchant of Venice are different in every respect. The female characters not only come from different backgrounds, they also have very different personalities. However, as different as these plays and their characters are, the female characters end up suffering the same fate. We will write a custom essay on Youve come a long way baby specifically for you for only $16.38 $13.9/page Order now It doesnt seem to matter whether they are born into a life of peasantry, nobility, or come from royalty, for they ultimately will end up being no better than a piece of land, or cattle, or some possession that a man can own and do with as he pleases. Scholars have been debating for centuries now as to whether Shakespeares women reflect his societys attitudes or that of his own. Henry V is definitely geared more for the male audience. There are only two or three acts in which a female character is present at all. When we first get a glimpse of Katherine, she is trying to learn the English language. This scene is supposed to be somewhat comical, but are we really supposed to believe that while there is a war raging throughout her country, that all Katherine is concerned about is the fact that she cant speak the language of her enemy? This scene in which we get our first glimpse of Katherine is somewhat degrading to her character as well as misleading. This leaves the audience with the inaccurate perception that Katherine, and thus all women in general, care very little about whats going on around them, and more about making themselves presentable. Afterall, isnt Katherine the Grand Prize that will be awarded to the winning side? I find it very insulting that Shakespeares only significant female role in the whole play, is being used as a Prize to be given away. Shakespeare doesnt even try to hide the fact that he is setting Katherine up as a prize. I find this kind of arrogance to be offensive and very belittling to women. While the men are off fighting the battle, Katherine, the future Queen of France, does not appear to be a bit concerned over the fate of her own country. Instead, she readily accepts her fate as she prepares herself for the role of Queen of England. This play is very biased and one-sided. Most of the English men are portrayed as noble, humble and superior to the French. Henry himself can do no wrong, and is portrayed through out the play as the best leader that the English have ever had. This image that he can do no wrong and is as close to being perfect as one can get, only holds up if you dont go digging around in Henrys past, in which he had been portrayed as a spoiled, pampered partying boy. The French, in contrast to the English, are presented as arrogant, incompetent, and weak, very similar to what Henry had been not to long ago. There is, however, one thing lower than a Frenchman, and that is, a French woman. The fact that Shakespeare subjected Katherines character, (she, who had been born into royalty which was the highest social position one can reach), to being treated as a possession or prize for a man, only adds credence to the argument that Shakespeare had very little respect for women. Katherine character, for the most part, adds very little, if anything at all, to the play. In fact, the role of Katherine could have easily been omitted altogether, and personally, I wish it had been The last act, in which Henry easily manages to win the affections of Katherine, is a weak attempt on Shakespeares part to end the play on a an uplifting note. Its a shame that Shakespeare put it in at all because it definitely changes the way I feel about this play, in particular, as .

January 1 Doesnt Need an st

January 1 Doesnt Need an st January 1 Doesnt Need an st January 1 Doesnt Need an st By Maeve Maddox The first thing I do when trying out a new WordPress theme is get rid of the code that puts th and other such terminals after the number in a date. Ex. January 1st, November 12th Dates, like certain other written expressions, assume certain information on the part of the reader: One writes January 1, but says January first. One writes November 12, but says November twelfth. The only time to use the th, nd, rd and st with numbers is with ordinal numbers. Ordinal numbers are those used to indicate a progression. Ex. first, second, third, fourth, fifth and so on. When written as numerals, they take the little terminals: 1st, 2nd, 3rd, 4th, 5th, 6th Some other words that assume information on the part of the reader are: Xmas so spelled, but meant to be pronounced Christmas. Mr. pronounced Mister. Mrs. Now pronounced Missus, which is a reduction of earlier Mistress. On the other hand, the only way to pronounce the politically correct Ms seems to be Miz. By the way, if you want to get rid of the th after dates on your site, find the code (l, F jS, Y) and delete the S. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Spelling category, check our popular posts, or choose a related post below:50 Idioms About Legs, Feet, and ToesWhat to Do When Words Appear Twice in a Row7 Sound Techniques for Effective Writing

Hammurabis Code and the Babylonian Economy Essay

Hammurabis Code and the Babylonian Economy - Essay Example The Code showed the importance of agriculture as the major livelihood of the citizens. It should be noted that various laws mention major crops such as corn, grains, and wool. The heavy punishment to be administered to anyone stealing and causing poor harvest indicates the importance of these commodities. It is also notable that the agricultural economy of Babylon is supported by quite complicated infrastructures to ensure a good harvest. The Hammurabi's Code mentions the presence of dams and dikes which prevents flooding agricultural areas. Animal husbandry is another major livelihood during the Babylonian Empire. It should be noted that the Code set out provisions regarding the robbery of major livestock. Within that civilization, it is remarkable how the citizens were able to raise a number of animals such as cattle, sheep, ass, pig, or goat. The importance of animal husbandry in the economy cannot be overestimated. For an individual steal any of the aforementioned animals and has nothing to pay for it, he will need to give his life as a payment. Though the above two industries represents the two major activities in the Babylonian economy, it should be noted that the civilization also features extensive trading network,

Each student is required to write-up a six-page proof of concept for a Essay

Each student is required to write-up a six-page proof of concept for a start-up enterprise. Your concept should capitalize on an - Essay Example It also does not use mercury and contributes to reduce climate control costs in comparison with a florescent bulb. With the growing competitions in the business world, smarter investors know what to invest in. Considering this facet, investing in LED energy savings bulb can be regarded as one of the most prospective businesses in Indonesia. Contextually, it is observed that the revenue generated from the global LED lighting market stands at a substantial figure of US$9.46 billion in 2013. It is estimated that the global demand for LED lighting would broadly stay the same for the coming 4 years. However, this steady growth prospect bodes well for the proposed start-up business (Sector Publishing Intelligence Ltd, â€Å"The World Market for LED Lighting†). Indonesia is determined to be amongst one of the leading resource saver countries in the world. Considering the current electric equipment demand, investing capital to start a business of LED bulb in Indonesia can be considere d as beneficial. THESIS STATEMENT This essay will mainly focus on the opportunity for the investors to invest into the LED energy saving bulb business in Indonesia. The essay would also contain a new-start up business concept mainly focusing on establishing a LED light bulb In Indonesia along with determining the value which can be created by the business. DISCUSSION Potential in LED business in Indonesian Electronic Market. Indonesia is considered to be amongst the largest economies in the Southeast Asia. It has registered a Gross Domestic Product (GDP) growth of 6.2% till 2012 and is projected to be above 6% for the coming five years. It has been viewed that during the downfall in the global economy the country was measured to be amongst the top performers in the global context. The vital reasons behind the strong performance emanated from effective performance of number of industries, high domestic demand of goods and services along with rich natural resources. Additionally, it i s also observed that the consumer market of Indonesia is considered to be amid the fastest developing markets, where GDP per capita is US$3500 exceeding many of its neighboring countries. The political condition of the country is determined to be supportive in comparison with other nations especially in the South Asian region of the world. It is worth mentioning that according to an estimation, it is predicted that 60 million people who are considered as low-income Indonesian workers would join the intermediate class of people in the upcoming years, increasing the consumer demand (Export.gov, â€Å"Doing Business in Indonesia: 2012 Country Commercial Guide for U.S. Companies†). LED light bulbs are observed to be electronic bulbs that utilize semiconductor technology to use electric energy in a more efficient way. It has been viewed that with the increasing technical advancements in every aspect, large organizations are adapting more advanced technologies to develop products b y considering the increasing negative impacts of their operations on the environment. Indonesia is ascertained to be amongst those countries that have been implementing policies and regulations to adapt eco-friendly products as their first priority. It has been viewed that LED lighting products are now available three or more times more effective than compact florescent products and are considered to be the best lighting alternative till date. The LED insurgency in lightning technology is

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Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives, Analysis of Indias Automobile Industry Analysis of Indias Automobile Industry Following Indias growing openness, the arrival of new and existing models, easy availability of finance at relatively low rate of interest and price discounts offered by the dealers and manufacturers all have stirred the demand for vehicles and a strong growth of the Indian automobile industry. The data obtained from ministry of commerce and industry, shows high growth obtained since 2001- 02 in automobile production continuing in the first three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the growth rate in 2003-04 was 15.1 per cent The automobile industry grew at a compound annual growth rate (CAGR) of 22 per cent between 1992 and 1997. With investment exceeding Rs. 50,000 crore, the turnover of the automobile industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component sector, the automotive industrys turnover, which was above Rs. 84,000 crore in 2002-03, is estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 b illion) in 2003-04. Automobile Dealers Network in India. In terms of Car dealer networks and authorized service stations, Maruti leads the pack with Dealer networks and workshops across the country. The other leading automobile manufacturers are also trying to cope up and are opening their service stations and dealer workshops in all the metros and major cities of the country. Dealers offer varying kind of discount of finances who in turn pass it on to the customers in the form of reduced interest rates. Major Manufacturers in Automobile Industry Maruti Udyog Ltd. General Motors India Ford India Ltd. Eicher Motors Bajaj Auto Daewoo Motors India Hero Motors Hindustan Motors Hyundai Motor India Ltd. Royal Enfield Motors Telco TVS Motors DC Designs Swaraj Mazda Ltd Government has liberalized the norms for foreign investment and import of technology and that appears to have benefited the automobile sector. The production of total vehicles increased from 4.2 million in 1998- 99 to 7.3 million in 2003-04. It is likely that the production of such vehicles will exceed 10 million in the next couple of years. The industry has adopted the global standards and this was manifested in the increasing exports of the sector. After a temporary slump during 1998- 99 and 1999-00, such exports registered robust growth rates of well over 50 per cent in 2002-03 and 2003-04 each to exceed two and- a-half times the export figure for 2001-02. The Key Factors Behind This Upswing Sales incentives, introduction of new models as well as variants coupled with easy availability of low cost finance with comfortable repayment options continued to drive demand and sales of automobiles during the first two quarters of the current year. The risk of an increase in the interest rates, the impact of delayed monsoons on rural demand, and increase in the costs of inputs such as steel are the key concerns for the players in the industry. As the players continue to introduce new models and variants, the competition may intensify further. The ability of the players to contain costs and focus on exports will be critical for the performance of their respective companies. LITERATURE REVIEW As noted by NMCC (2006), competitiveness of manufacturing sector is a very broad Multi-dimensional concept that embraces numerous aspects such as price, quality, Productivity, Efficiency and macro-economic environment. The OECD definition of Competitiveness, which is most widely quoted, also considers employment and sustainability, while being exposed to international competition, as features pertaining to competitiveness. There are numerous studies on auto industry in India, published by industry associations, consultancy organisations, research bodies and peer-reviewed journals. In this section, various studies on the Indian auto industry are reviewed, under different heads pertaining to competitiveness, namely, global comparisons, policy environment and evolution of the Indian auto industry, productivity, aspects related to supply-chain and industrial structure and technology and other aspects. Global Comparisons The Investment Information and Credit Rating Agency of India (ICRA, 2003) studies the competitiveness of the Indian auto industry, by global comparisons of macro environment, policies and cost structure. This has a detailed account on the evolution of the global auto industry. The United States was the first major player from 1900 to 1960, after which Japan took its place as the cost-efficient leader. Cost efficiency being the only real means in as mature an industry as automobiles to retain or improve market share, global auto manufacturers have been sourcing from the developing countries. India and China have emerged as favourite destinations for the first-tier OEMs since late 1980s.There are only a few dominant Indian OEMs, while the number of OEMs is very large in China (122 car manufacturers and 120 motorcycle manufacturers). According to this study, the major advantage of the Indian economy is educated and skilled workforce with knowledge of English. Our disadvantages include p oor infrastructure, complicated tax structure, inflexible labour laws, inter-state policy differences and inconsistencies. The drivers of Chinese economic growth are FDI, labour productivity growth, which was 1.5 times higher than that in India in the last decade, and domestic demand. Fiscal pressure is mounting on the Chinese government, while India is in a better state. Based on comparisons of cost composition to pinpoint the areas in which the Indian auto industry is at a disadvantage, this study recommends a VAT regime, speedy procedures, imports duty cuts on raw materials, common testing and design facility, labour reforms, up gradation of design and engineering capabilities and brand building. ICRA (2004a) analyses the implications of the India-ASEAN5 Free Trade Agreements for the Indian automotive industry. ASEAN economies are globally more integrated than India. The current size of Indian and ASEAN market for automobiles is more or less the same but the Indian market has a larger growth potential than the ASEAN market due to the low level of penetration. The labour cost is low in India but the stringent labour regulations erode this advantage. The level of infrastructure is better in India than Indonesia and the Philippines but worse than that in other ASEAN countries. The financial and banking sector is better in India than in the ASEAN countries. The study notes that there is a huge excess capacity in ASEAN countries, in comparison with that in India, which will help them to tackle the excess demand that may arise in future. The study finds a 20-30 per cent cost disadvantage for Indian companies on account of taxation and infrastructure and 5-20 per cent labour cost ad vantage over comparable ASEAN-member-based companies. Similar findings are noted in a study by the Automotive Component Manufacturers Association of India (ACMA, 2004), particularly in comparison with Thailand. ICRA (2004b) analyses the impact of Preferential Trade Agreement (PTA) with MERCOSUR on the automobile sector in India. This study finds a significant threat of imports in sub-compact and compact cars and certain auto-components. There is huge excess capacity and intense competition in MERCOSUR countries, propelling them to look for export opportunities. This is true especially of Brazil, which has a well developed auto-component sector with huge economies of scale. Further, weak currency in all MERCOSUR countries provides a natural tariff barrier. In addition, MERCOSUR countries have an equitable arrangement within themselves to have a balanced trade, with fair level of exports and imports. The Indian auto industry could gain from this PTA with MERCOSUR only if it is assured of the balanced trade, as MERCOSUR countries practise among themselves. ICRA (2005) studies the possible impact of FTA with South Africa on the Indian automobile industry. The study finds that there are a few policies in South Africa that indirectly subsidise the auto industry, unlike India, in terms of financial grants. Hence it is suggested that India could minimise losses only if it goes for inclusion of certain auto components, which involve huge logistic costs of imports, creating a natural protection (for example, stampings, glass, seats, plastics and tyres) and those in which India enjoys economies of scale and is cost-competitive (e.g. castings and forgings) in this FTA. If South Africa is ready to discontinue the schemes such as Motor Industry Development Programme (MIDP), India could include all automotive components in this FTA. There should be a minimum local content of 60 per cent and the agreement should not be trade balancing as India will not gain much in that case. Policy Environment and Evolution of Indian Auto Industry In this section, studies on the policy environment pertaining to the Indian auto industry and its evolution over the years have been reviewed. Pingle (2000) reviews the policy framework of Indias automobile industry and its impact on its growth. While the ties between bureaucrats and the managers of state-owned enterprises played a positive role especially since the late 1980s, ties between politicians and industrialists and between politicians and labour leaders have impeded the growth. The first phase of 1940s and 1950s was characterised by socialist ideology and vested interests, resulting in protection to the domestic auto industry and entry barriers for foreign firms. There was a good relationship between politicians and industrialists in this phase, but bureaucrats played little role. Development of ancillaries segment as recommended by the L.K. Jha Committee report in 1960 was a major event that took place towards the end of this phase. During the second phase of rules, regulations and politics, many political developments and economic problems affected the auto industry, especially passenger cars segment, in the 196 0s and 1970s. Though politicians picked winners and losers mainly by licensing production, this situation changed with oil crises and other related political and macro-economic constraints. The third phase starting in the early 1980s was characterised by delicensing, liberalisation and opening up of FDI in the auto sector. These policies resulted in the establishment of new LCV manufacturers (for example, Swaraj Mazda, DCM Toyota) and passenger car manufacturers.7 All these developments led to structural changes in the Indian auto industry. Pingle argues that state intervention and ownership need not imply poor results and performance, as demonstrated by Maruti Udyog Limited (MUL). Further, the noncontractual relations between bureaucrats and MUL dictated most of the policies in the 1980s, which were biased towards passenger cars and MUL in particular. However, DCosta (2002) argues that MULs success is not particularly attributable to the support from bureaucrats. Rather, any firm that is as good as MUL in terms of scale economies, first-comer advantage, affordability, product novelty, consumer choice, financing schemes and extensive servicing networks would have performed as well, even in the absence of bureaucratic support. DCosta has other criticisms about Pingle (2000). The major shortcoming of Pingles study is that it ignores the issues related to sectorspecific technologies and regional differences across the country. Piplai (2001) examines the effects of liberalisation on the Indian vehicle industry, in terms of production, marketing, export, technology tie-up, product upgradation and profitability. Till the 1940s, the Indian auto industry was non-existent, since automobile were imported from General Motors and Ford. In early 1940s, Hindustan Motors and Premier Auto started, by importing know-how from General Motors and Fiat respectively. Since the 1950s, a few other companies entered the market for two-wheelers and commercial vehicles. However, most of them either imported or indigenously produced auto-components, till the mid-1950s, when India had launched import substitution programme, thereby resulting in a distinctly separate auto-component sector. Due to the high degree of regulation and protection in the 1970s and 1980s, the reforms in the early 1990s had led to a boom in the auto industry till 1996, but the response of the industry in terms of massive expansion of capacities and entry of multinationals led to an acute over-capacity. Intense competition had led to price wars and aggressive cost-cutting measures including layoffs and large-scale retrenchment. While Indian companies started focusing on the price-sensitive commercially used vehicles, foreign companies continued utilizing their expertise on technology-intensive vehicles for individual and corporate uses. Thus, Piplai concludes that vehicle industry has not gained much from the reforms, other than being thrusted upon a high degree of unsustainable competition. In August 2006, a Draft of Automotive Mission Plan Statement prepared in consultation with the industry was released by the Ministry of Heavy Industries and Public Enterprises. This was finally released as a report in December 2006. This document draws an action plan to take the turnover of the automotive industry in India to US$145 billion by 2016, accounting for more than 10 per cent of the GDP and providing additional employment to 25 million peo ple, by 2016. A special emphasis is laid on small cars, MUVs, two-wheelers and auto-components. Measures suggested include setting up of a National Auto Institute, streamlining government/educational/research institutions to the needs of the auto industry, upgrading infrastructure, considering changes in duty structure and fiscal incentives for RD. Similarly, NMCC (2006), which lays down a national strategy for manufacturing, recognises the importance of the Indian automobile and auto-component industry, particularly the latter, as a competitive knowledge-based industry with immense employment generation potential. McKinsey (2005) predicts the growth potential of India-based automotive component manufacturing at around 500 per cent, from 2005 to 2015. This report describes the initiatives required from industry players, the Government and the ACMA to capture this potential. This study was based on interviews and workshops with 20 suppliers and 7 OEMs and survey with ACMA members. Increase in cost pressures on OEMs in developed countries, coupled with the emergence of skilled, cost-competitive suppliers in Low Cost Countries (LCCs), is likely to facilitate further acceleration of sourcing of automotive components from LCCs. The analysis identifies strong engineering skills and an emerging culture of cost-competitiveness as the major strengths of the Indian auto component sector, while its weaknesses include slow growth in domestic demand and structural disadvantages such as power tariffs and indirect taxes. The policy recommendations of this study include VAT implementation, lower indirect taxes , power reforms, tax benefits linked to export earnings, duty-cut for raw material imports, RD incentives for a longer period, establishment of auto parks, benefits for export-seeking investments, human resources development and modernisation fund for new investments in auto clusters. Industry players have been advised to improve their operational performance, determine their strategic posture as one among those identified in the study, improve capabilities in line with their posture and invest very rapidly in a planned manner. ACMA needs to promote India as a brand, enable sourcing from India by global customers and promote the quality and productivity efforts of the auto component firms in India. ACMA (2006) notes that Indias joining the WP (Working Party) 29: 1998 Agreement for global harmonisation of automotive standards, coupled with the funding of National Automotive Testing and Research Infrastructure Project (NATRIP) by the Government of India, has increased prospects of the Indian auto industry rising up to global standards in the near future, in all aspects. Narayanan (1998) analyses the effects of deregulation policy on technology acquisition and competitiveness in the Indian automobile industry during the 1980s and finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity-licensing. In a liberalised regime, this would depend on firms ability to bring about technological changes, as inferred from the behaviour of new firms in the sample considered. Further, vertical integration could score over subcontracting in a liberal regime. This is probably because of the entry of new foreign firms that produce technologically superior and guaranteed quality vehicles and choose to produce most of the components in-house.8 Narayanan (2004) analyses the determinants of growth of Indian automobile firms during three different policy regimes, namely, licensing (1980-81 to 1984-85), deregulation (1985-86 to 1990-91) and liberalisation (1991-92 to 1995-96). Un like the prediction by Narayanan (1 998), this study finds that vertical integration is detrimental for growth in a liberalised regime as it potentially limits diversification. Narayanan (2006) also finds that vertical integration plays a positive role in a regulated regime, while it is not conducive for export competitiveness in a liberal regime. Kathuria (1995) notes that the time-bound indigenization programme for commercial vehicles in the 1980s facilitated the upgradation of vendor skills and modifying vehicles to suit local conditions, which demand functional efficiency, overloading capabilities, fuel economy, frequent changes in speed and easy repair and maintenance. Kathuria also mentions that the choice between vertical integration and subcontracting crucially depends on the policy regime: In a liberal regime, vertical integration may not work. Productivity Sharma (2006) analyses the performance of the Indian auto industry with respect to the productivity growth. Partial and total factor productivity of the Indian automobile industry have been calculated for the period from 1990-91 to 2003-04, using the Divisia- Tornquist index for the estimation of the total factor productivity growth. The author finds that the domestic auto industry has registered a negative and insignificant productivity growth during the last one and a half decade. Among the partial factor productivity indices only labour productivity has seen a significant improvement, while the productivity of other three inputs (capital, energy and materials) havent shown any significant improvement. Labour productivity has increased mainly due to the increase in the capital intensity, which has grown at a rate of 0.14 per cent per annum from 1990-91 to 2003-04. Aspects Related to Supply Chain and Industrial Structure In this section, the studies that examine the aspects pertaining to local and global auto supply chains as well as the structure of the Indian auto industry are reviewed. Humphrey (1999) compares the impact of globalisation on supply chain networks in the auto industry in Brazil and India. According to Humphrey, global auto industry hubs were situated in three regions, namely, North America, Western Europe and Japan. Brazil and India are examples of the countries which could develop the indigenous auto industry despite not being situated very close to any of these regions. Hence, Humphrey compares the auto industries in these two countries. This study considers auto industry as a producer-driven commodity chain, wherein global auto assemblers control the entire supply chain from components to dealerships. While the global auto assembly majors used to produce 60-70 per cent of the value inhouse till the 1980s, various phenomenal developments have started taking place since the 1980s, such as the emergence of independent dealers and rise of catalogue suppliers who supply their standard and indigenously designed components/modules to many assemblers. Bra zil and India had liberalised auto investments and tariff structure since 1990. Prior to 1991, India had a much more protectionist regime than Brazil, in terms of licensing and quantitative restrictions on both imports and domestic production. Inflows of auto FDI occurred in both the countries since the mid-1990s. Further, Brazil and India have emerged as preferred suppliers for global auto assemblers. When the global auto assemblers entered India and Brazil, the phenomenon of follow-source was also happening. Now, there are parallel global networks of both assemblers and Tier-1 suppliers. Even Indian component suppliers have opportunities to enter the global auto supply chains, mainly in low technology products made to detailed drawings but the space for domestic industry is diminishing. With the global centralization of product engineering, skill requirements are likely to be immense in process engineering, particularly in assemblers and Tier-1 component manufacturers. Sutton (2000) compares the auto-component supply chains in India and China, based on field surveys. In both these countries, the supply chain has developed very rapidly at the level of car makers and Tier-1 suppliers, with quality levels close to world standards, largely driven by the entry of multinational car makers. But, the Tier-2 suppliers are still not up to the global standards. The domestic content requirements, based on the infant industry argument, have helped the international car makers in enhancing the production capabilities of the domestic players effectively, as shown by increases in auto-component exports from India and China. Of the top ten exporting firms in India and China, five and six are domestic ones, respectively. Enhanced supply-chain capabilities have benefited the domestic auto-makers as well, such as Mahindra and Mahindra in India, who have been able to capture a sizeable market share with their indigenously designed and assembled MUV. Some leading compon ent producers in China and India strategically use highly capital intensive techniques such as robotics, occasionally, despite the low wages, mainly on account of their concerns to achieve high levels of quality. This in combination with employing high-quality workforce even at shop floor is another strategic choice of a few leading firms in India, to promote exports. Many Tier-1 firms follow the standard Japanese work practices to improve quality and minimise costs. Interactions between carmakers and component suppliers have also helped the latter improve quality. Addressing a larger question of the impact of Foreign Direct Investment (FDI) on the domestic industry and economy, Tewari (2000) studies the automotive supply chain of Tamil Nadu, based on field surveys. Studies such as Humphrey (1999) show that entry of global auto majors in India and Brazil have impeded domestic firms, while this study shows evidence for the fact that medium-sized firms, which entered in the mid-1990s in Tamil Nadu have formed networks with smaller domestic suppliers and helped them upgrade their technologies. These medium-sized suppliers require more support from the government, since they play a crucial role in facilitating the development of the domestic auto industry. Joint ventures and technical tie-ups with overseas suppliers have been the strategies that were followed by well-performing auto component manufacturers, long before the global auto majors entered India. These relationships and the entry of foreign OEMs not only promote employment and income, but also diffusion of technologies and knowledge to the entire supply chain, including smaller firms. Veloso and Kumar (2002) provide an overview of the major trends taking place in the global automotive industry, emphasising on the Asian market. Consumer preferences, government regulations and intense competition have been driving the firms towards new technologies, modernisation, research and changes in design and production. Market saturation in Triad regions (the United States, Western Europe and Japan) and rapid emergence of markets in Asia have led to increasing diversity in market needs. As a result, there are many models and segments coming up rapidly. Auto majors have started adopting a global perspective and reorganising their vehicle portfolio around product platforms, modules and systems. They are also minimising the number of suppliers, by opting for bigger ones, based on cost and quality competitiveness, RD capacity and proximity to development centres. Mergers and acquisitions are taking place for consolidation. Suppliers have been taking new roles, as systems integrat ors, global standardiser-systems manufacturers, component specialists and raw material suppliers. These roles are based on their focus, market presence, critical capabilities and types of components and systems. The automobile industry in India had been facing the problem of overcapacity by 2000 and the auto-component sector was not so developed as to be able to deliver products of world-class quality. Chinese tariff and quota policies, coupled with local content regulations protect the auto industry in China immensely. However, the Chinese auto industry suffers from fragmentation, lower quality, lack of technological upgradation and managerial skills. Consolidation and liberalisation that are happening recently in China are expected to promote its auto industry. Auto industries in the ASEAN and Korea have recovered quickly from the Asian crisis of 1998. This report concludes with some aspects that any study on auto sector should focus on, such as evaluation of the capabilities of a uto-component supply chain both large and small suppliers, strategies of OEMs, cost, delivery, dependability, quality, product development, process development, flexibility, facilities/equipment, technology, process, workforce and organisation, logistics and supply chain, research and engineering and interfaces. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian autocomponent sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to consumer finance may lead India to a place among the top five automotive economies by 2025. Most of the ACMA members have at least one standards certification. They are embracing world-class modern shop-floor practices. The auto-component sector has been showing high rates of growth ofproduction and exports, with a comprehensive production range, transforming as an attractive OEMs Tier-1 supplier. Many leading OEMs and Tier-1 companies have plans of sourcing from Indian auto-component manufacturers, who are scaling up, establishing partnerships in India and abroad, acquiring foreign companies and establ ishing Greenfield investments overseas. Proficiency in understanding technical drawings, understanding of different global standards, appropriate automation, flexibility in small-batch production and use of Information Technology (IT) for design, development and simulation are some of the growing capabilities among Indian auto-component manufacturers. India is expected to emerge as the next big automotive RD base, given its IT capabilities coupled with automotive domain knowledge and shifting of automotive design centres to India, by global MNCs, as it is a potentially excellent base for prototyping, testing, validating and producing auto-components. Technology and Other Aspects Kathuria (1996) analyses the Commercial Vehicles (CV) industry in India in a detailed manner, dwelling on the concepts of vertical integration and subcontracting, production technology and technological change. After an overview of the global auto industry, Kathuria traces the developments in the Indian auto industry from the 1950s to 1991. To evaluate the competitiveness of Indian commercial vehicles manufacturers in the domestic market, growth trends, structural trends, market shares, profitability, productivity ratios, prices, quality, dealer network and performance are analysed. Macro and micro performance of Indias vehicle exports with major markets and Indian vehicle characteristics have been outlined, along with an analysis of global demand patterns. Domestic resource costs and global comparison of prices, credit and service are the other international trade-related aspects analysed in this study. On vertical integration, the analysis leads to the conclusion that the Indian CV industry needs to learn from the international experience to get into subcontracting and buying-in. Lack of scales and high inventories had impeded the competitiveness of Indian CV firms in the 1980s. RD capabilities and new product ranges were the result of the challenges arising from time-bound indigenisation programme, but still Indian technology frontier remained far below global levels. Further, different firms have followed very different strategies and hence the impacts on their technological capabilities were also very different. However, success of Indian firms despite such a wide range of strategies is partly due to the protection available to them in the domestic market. Kathuria concludes that the Indian auto industry in general and CV industry in particular, have a lot to learn from the global auto industry, in terms of best-practice technology and vertical integration and supplier relationship. The study rightly predicted that the industry would see heightened activity and recommended that the government should ensure that the domestic firms do not lose out because of the unrestricted entry of highly competitive foreign firms. Narayanan (1998) finds that during the 1980s, technology acquisition through imports of technology and in-house RD efforts explains much of differences in competitiveness, as measured by changes in market share, at the firm level, in the Indian automobile industry. Based on an econometric analysis, which considers technology acquisition, skill intensity, component imports, firm size, product differentiation, age and vertical integration as the determinants of competitiveness, Narayanan finds that competitiveness has depended on the ability to build technological advantages, even in an era of capacity licensing. This is facilitated by complementing imported technology with in-house RD efforts. Narayanan (2004) uses two-way fixed effects estimation of the firm growth as a function of variables capturing technology, such as RD expenditure as a proportion of sales, foreign equity participation and import of capital goods. Role of technology depends on the technological regime in which the firm operates. In a licensed regime, firms with foreign equity grow faster because of better access to resources and technology. In a deregulated regime, import of capital goods has been the technology-related variable that triggered growth. In a liberal regime, growth is positively influenced by the intra-firm technology transfer. Narayanan (2006) analyses the determinants of export intensity of Indian automobile firms using a Tobit model, taking the variables discussed in Narayanan (1998) and Narayanan (2004) as the determinants. This study is based on the premises that there is a systematic difference in the characteristics and performance between the firms that export and those which sell in the domestic market, mainly in terms of technology acquisition, which in turn depends on the policy regime. Technology acquisition, firm size, vertical integration, capital intensity, imports of components and policy regime are found to be the main determinants of export competitiveness, by this analysis. SUMMARY OF LITERATURE REVIEW The studies reviewed so far were of a wide range in terms of objectives,

Capitalizing the costs of developing a software program for sale Essay

In order to gain a better understanding of both the software industry and the applicable guidelines for capitalizing software, some outside research into the industry and FASB standards was completed. This research was complied as a part of the risk assessment portion of the audit process (Whittington & Pany, 2012). The issue of capitalizing the costs of developing a software program for sale is a complicated issue. This is due in part to the fact that the nature of technology is constantly changing so clear procedures regulating when to write off a software system vary according to the pace of technological changes within the industry. Therefore, while a company is developing software, they should report the incurred creative costs to a research and development account (Warfield, Weygandt, & Kieso, 2007). Once the software product has reached a point where it is feasibly considered a technological product the costing can be adjusted to begin capitalizing the costs (Warfield, Weygandt, & Kieso). As established in FASB Statement No. 2, any costs incurred in the developing, creating, testing, and so forth of software products will be charged to the research and development expense account; however any adjustments to the software for upgrades and any costs to market the product would not be included in the research and development expense account (Accounting-Financial-Tax.com, 2012). This is because by the point the product is ready to be marketed or needs to be upgraded to meet new technological standards, the feasibility of the product has been established and therefore the product should be capitalized (Account ing-Financial-Tax.com). If however, after meeting the feasibility requirements, there is substantial risk associate... ....com. (2012). Capitalization and amortization of software costs. Retrieved from, http://accounting-financial-tax.com/2009/05/capitalization-and-amortization-of-software-cost/ Accounting For Management. (2011). Return on Shareholder’s investment or net worth ratio. Retrieved from, http://www.accountingformanagement.com/retun_on_share_holders_investment_or_net_worth.htm Kennon, J. (2012). Return on assets (ROA). Retrieved from, http://beginnersinvest.about.com/od/incomestatementanalysis/a/return-on-assets-roa-income-statement.htm Tracy, J. A. (2004). How to read a financial report (6th ed.). Hoboken, NJ: John Wiley & Sons. Warfield, T. D., Weygandt, J. J., & Kieso, D. E. (2007). Intermediate accounting (2nd ed.). Hoboken, NJ: John Wiley & Sons. Whittington, R., & Pany, K. (2012). Principles of auditing and other assurances (18th ed.). New York, NY: McGraw-Hill

Compromise of 1850

The Compromise of 1850 was a series of acts passed in 1850, by which the United States Congress hoped to settle the strife between the opponents of slavery in the North and slave owners in the South. There is much speculation about how our country would be without this Compromise. The Compromise is a major stepping stone in United States history because of its many forces and provisions. California's admission to the Union would tip the balance in favor of free states—sixteen free states to fifteen slave states. A balance had been achieved with the Missouri Compromise of 1820, which tried to settle the growing slavery issue at that time by admitting Missouri as a slave state and Maine as a free state. The proposed admission of California in 1850 was further complicated by unresolved slavery questions in the vast southwestern territory that had been ceded to the United States after the war with Mexico ended in 1848 with the Treaty of Guadalupe Hidalgo. As he had done with the Missouri Compromise thirty years earlier, U. S. Senator Henry Clay of Kentucky attempted to find a solution in 1850. This time the stakes were higher—the real possibility that the Union would break apart. Now seventy-one years old and in ill health, Clay gave his last great speech to the Senate on February 5–6, 1850, outlining the many features of the compromise, which once again tried to give satisfaction to both sides, and staking his reputation upon its passage. It was Senator Stephen Douglas of Illinois, though, who successfully crafted the measures. The Compromise of 1850 called for the admission of California as a free state as well as the organization of the ceded southwestern land into the territories of New Mexico and Utah, without mention of slavery. It stated that, when the territories became states, voting citizens living in those territories could then decide on their slavery status, a solution known as popular sovereignty. The compromise also settled the boundary dispute between Texas and New Mexico and called for prohibition of slavery in the District of Columbia. But by far the most contentious part of the Compromise of 1850 was the Fugitive Slave Act. It was the second of such acts, the first having been passed in 1793. Southern states demanded it largely in response to the growing number of fugitive slaves who were escaping to freedom in the North or into Canada. The act not only called for the return of runaway slaves, as the previous law had done, but prohibited the fugitives a trial by jury or even to testify in their own behalf. In addition, marshals in the North who did not enforce the law were given heavy penalties, as were those who helped slaves to escape. The act was so severe and the outrage against it in the North so intense that it led to heavy abuses and therefore defeated its own purpose. Some Northern states passed personal liberty laws to defy the Fugitive Slave Act. The number of escapees increased, as did the number of abolitionists who took up the cause against slavery. Putting the law into effect only led to more animosity between North and South, and when South Carolina justified its secession from the Union in December 1860, it listed the personal liberty laws as one of its grievances. The Fugitive Slave Act was not repealed until June 28, 1864, well into the Civil War. The Compromise of 1850 accomplished what it set out to do — it kept the nation united — but the solution was only temporary. Over the following decade the country's citizens became further divided over the issue of slavery. The rift would continue to grow until the nation itself divided. Compromise of 1850 The Compromise of 1850 was a series of acts passed in 1850, by which the United States Congress hoped to settle the strife between the opponents of slavery in the North and slave owners in the South. There is much speculation about how our country would be without this Compromise. The Compromise is a major stepping stone in United States history because of its many forces and provisions. California's admission to the Union would tip the balance in favor of free states—sixteen free states to fifteen slave states. A balance had been achieved with the Missouri Compromise of 1820, which tried to settle the growing slavery issue at that time by admitting Missouri as a slave state and Maine as a free state. The proposed admission of California in 1850 was further complicated by unresolved slavery questions in the vast southwestern territory that had been ceded to the United States after the war with Mexico ended in 1848 with the Treaty of Guadalupe Hidalgo. As he had done with the Missouri Compromise thirty years earlier, U. S. Senator Henry Clay of Kentucky attempted to find a solution in 1850. This time the stakes were higher—the real possibility that the Union would break apart. Now seventy-one years old and in ill health, Clay gave his last great speech to the Senate on February 5–6, 1850, outlining the many features of the compromise, which once again tried to give satisfaction to both sides, and staking his reputation upon its passage. It was Senator Stephen Douglas of Illinois, though, who successfully crafted the measures. The Compromise of 1850 called for the admission of California as a free state as well as the organization of the ceded southwestern land into the territories of New Mexico and Utah, without mention of slavery. It stated that, when the territories became states, voting citizens living in those territories could then decide on their slavery status, a solution known as popular sovereignty. The compromise also settled the boundary dispute between Texas and New Mexico and called for prohibition of slavery in the District of Columbia. But by far the most contentious part of the Compromise of 1850 was the Fugitive Slave Act. It was the second of such acts, the first having been passed in 1793. Southern states demanded it largely in response to the growing number of fugitive slaves who were escaping to freedom in the North or into Canada. The act not only called for the return of runaway slaves, as the previous law had done, but prohibited the fugitives a trial by jury or even to testify in their own behalf. In addition, marshals in the North who did not enforce the law were given heavy penalties, as were those who helped slaves to escape. The act was so severe and the outrage against it in the North so intense that it led to heavy abuses and therefore defeated its own purpose. Some Northern states passed personal liberty laws to defy the Fugitive Slave Act. The number of escapees increased, as did the number of abolitionists who took up the cause against slavery. Putting the law into effect only led to more animosity between North and South, and when South Carolina justified its secession from the Union in December 1860, it listed the personal liberty laws as one of its grievances. The Fugitive Slave Act was not repealed until June 28, 1864, well into the Civil War. The Compromise of 1850 accomplished what it set out to do — it kept the nation united — but the solution was only temporary. Over the following decade the country's citizens became further divided over the issue of slavery. The rift would continue to grow until the nation itself divided.