Week Three Learning Team Reflection Free Essays

Why and how do we conduct business research? This week in Business Research topics were the purpose of business research; developing appropriate research questions and hypothesis, and identifying dependent and independent variables. Week three has given us a better understanding of how to conduct business research. There are several purposes for business research. We will write a custom essay sample on Week Three Learning Team Reflection or any similar topic only for you Order Now One major purpose would be to uncover and address problems and issues concerning the business. Another purpose is to improve strategies and tactics of the business. With business research one could define the strategies, and tactics, monitor them, and refine them. Business research is also used to help increase the knowledge and understanding of the various fields of management (Cooper Schindler, 2011). Developing the appropriate research questions and hypothesis is crucial in the research process as the well thought out questions will focus the researcher’s attention to the most pertinent aspects of the issue, opportunity or dilemma. Poorly defined questions may cause the research to go in misguided and irrelevant directions. Although there are many types of questions that management can pose during the research process, there are four basic categories of research questions contained in what is known as the management-research question hierarchy (Cooper Schindler, 2011). These categorical questions are management, research, investigative, and measurement. Each will focus the researcher’s efforts onto a specific aspect of the dilemma. In research, a proposition is a statement made concerning an observable phenomena that can be deemed true or false. This proposition is the foundation of what will be formulated as the hypotheses of our research. The hypotheses are of a tentative and conjectural nature (Cooper Schindler, 2011). In the hypotheses we assign variables to a given case. There are four types of hypotheses. They are descriptive, correlational, explanatory, and relational. The purpose of the hypotheses is to guide the study; identify relevant facts; suggest the appropriate style of research and provide a framework for organizing the conclusions. Finally, a strong hypothesis is adequate, testable, and better than its rivals. Researchers use variables when testing hypotheses. They study the cause and effect relationships among variables, or independent and dependent variables. The independent variable causes the effect of the dependent variable. Researchers typically manipulate the independent variable while monitoring its effect on the dependent variable. In this cause and effect study, the researcher will hypothesize how the independent variable affects the dependent variable. These cause and effect studies can conclude a multitude of effects, answering important questions related to business research. How can we increase productivity, sales, morale among employees, integrity, etc.? How can we reduce fraud, waste, loss, etc.? Exploration and the information gathered from it is often the primary contributing factor in effective business research. This week the learning team discussed objectives related to the purpose of business research. The team established that the purposes of business research include addressing problems and issues, improving strategies and tactics, and increasing knowledge and understanding. The team also conferred on the value of developing appropriate research questions and hypotheses, agreeing that appropriate research questions and hypothesis are crucial. Effectively defined questions can take research in a well-structured and relevant direction, and a strong hypothesis is valuable in establishing the substance and structure of the research. Finally, the team conferred on the use of independent and dependent variables in research. The team deduced that researchers can use the cause and effect relationship between the two types of variables – manipulating the independent variables to study the effect on the dependent variables – to their advantage in answering many business research questions. How to cite Week Three Learning Team Reflection, Essays

Negligence in Employment Samples for Students †MyAssignmenthelp.com

Question: Discuss about the Negligence in Employment. Answer: Case Introduction The case is related to the tort of negligence with respect to workplace and employment contract. it is the duty of the employer in commonlaw as well as through legislations to ensure that they are provided with a safe and healthy working environment and system. In case the employer is not able to provide a secure system to the employees in relation to their work they evidently violate the duty of care which has been imposed on them towards the employees. The case of Koehler vs. Cerebos (Aust) Ltd (2005) is related to a situation where psychiatric harm had been faced an employee due to additional work pressure. Therefore the issue before the court was to identify that whether the employer could reasonably foresee such psychiatric harm and whether at all an employer owed a duty to be alerted about a mental harm which can be caused to the employee. Disability claims in relation to mental stress have been almost totally removed from workers compensation provisions imposed in Western Aust ralia and such an action have increased commonlaw action with respect to mental injury to employees. This case has provided a major decision with respect to the duty of employer to the employee towards mental injury. Facts of the case The facts in relation to this case are very simple and clear. The appellant employee had worked for the respondent employer on full time basis in form of a sales representative. The appellant have been retrenched by the respondent. An offer was made by the respondent to the appellant upon retrenchment to work on a part time basis which was to work for only three days a week. Complaints had been coming in from the employee during the course she had been employed as a part time worker in relation to increased work pressure. She had notified the management about this problem on various occasions to reduce the number of shops to be covered by her or to provide her with an opportunity to work for an additional fourth day to reduce her work pressure. However, no relevance had been provided by the management to such concerns. Subsequently, a mental illness had been developed by the employee and the cause for such illness was the increased work load. Therefore proceedings had been initiated by the employee with respect to the tort of negligence by alleging that the duty of care owed by the employer towards her been violated as the employer failed to provided her with a work system which was safe. It was determined by the commissioner of the district court of WA that the work pressure imposed on the employee was actually excessive. In addition it was ruled by the court that no advance expertise was needed for the employer to foresee the harm suffered by the employee. The employer according to the commissioner could have easily provided increased assistance to help the employee whom he did not and thus violated the duty of care. However the decision of the district court had been over ruled through an appeal where it was stated by the court of appeal that the employer could not reasonably predict the mental harm caused to the employee in relation to the work pressure. In addition no evidence suggested that the employer has to be altered in relation to a mental injury which may be caused to an employee. The high court also agreed with the decision of the full court in relation to the case. Issue raised by the plaintiff and the defendant The major issue which had been raised in relation to the appeal by the appellant was that the full court was not correct in its decision towards determining the duty of care which was owed by the respondent to the appellant with respect to the additional harm. In addition the appellant raised the issue in relation to the breach of employment contract and statutory provisions as well in the high court. The issue which was raised by the employer in this case was that there was no reason which they had towards suspecting that the employee would suffer mental injuries and the employee had expressly agreed to the duties which were to be performed by her. Arguments provided by the parties It had been provided by the appellant that the work load had been significantly increased by the employer as she had been expected to do the work she used to do during five days in only three days and as a result she suffered a mental injury. No particular expertise was needed for the employer to identify the fact that the employee may suffer a mental damage if excessive work pressure was imposed on her. There was no problem for the employer to provide assistance to the employee in relation to the additional work pressure. Even if there were problems such problem were negligible. Thus the employer was negligent towards his actions. It was provided the defendant employer that it was not possible for them to foresee such mental injury caused to the plaintiff. The appellant in addition had gone into a contract with the employer which signified her agreement in relation to performing such duties in the provided time. The employer had not reasons to suspect that such work would result in mental injury for the employee. Thus there is no negligent action on the part of the employer Decisions by the court The High court in this court in this case upheld the decision of the full court and provided a decision in favor of the employer that there was no negligence on their part. The appeal made by the employee had been dismissed by the court unanimously. The court found that no reasonable person if placed in the position of the employer would foresee psychiatric harm caused to the employee in similar conditions. This was because there was an agreement between the employee and the employee that employee would be performing such duties. it is the right of the employer and the employee in relation to common law to get into a contract with respect to any amount of work imposed on a person even if such work is more than the basic industrial standard or is more than often provided with a higher level of pay. It is the right of the employer to assume that the employee would be properly able to do their work in the absence of any sign of warning related to a psychiatric injury. No indication had been made by the employee that she was prone to such mental injury as claimed in this case. In addition the court provided that the complaint made by the employee suggests a problem related to industrial relation rather than a risk to health due to negligence. Therefore there is no breach of the duty of care had been done by the employer in relation to the injury caused to the employer. Critical analysis This section of the paper would critically analyze the decision of the high court in relation to the case in order to determine to what extent the decision made by the court is correct. This part argues in the favor of the case presented by the employer. The decision of the court in this case was unanimous. No judge of the high court had a view that the duty of care had been violated by the employer. According to Lockwood, Henderson and Stansfeld (2017) the duty of care can only be violated if the harm which has been caused to the plaintiff was foreseeable. If the defendant could not have foreseen the harm he cannot be held liable for negligence. In addition Torres and Jain (2017) states that a test has to be applied in order to ensure that a harm related to psychiatric injury to an employee was reasonably foreseeable to the employer or not, and it cannot be concluded on the basis of the fact that such harm is a matter of general knowledge to the employer. In this case it had been provided by the learned judges of the court that it is the right of the employer to assume that the employee would be able to carry out his or her duties in a proper manner unless any signs or evidence to the contrary has been provided by employees. The cou rt towards reaching its decision adopted the principle provided by the case of Walker v Northumberland County Council (1994), Hatton v Sutherland (2002) and Petch v Customs and Excise Commissioners (1993), in relation to psychiatric injuries to the employees. Through the joint opinion it was determined by the judges of the high court that the problem of the appellant was not in relation to dangers related to her mental health but merely an industrial relation issue. Thus it can be provided that no duty had been imposed on the employer to foresee the mental injury caused to the employee. However it can be argued that some significant possible objections in relation to the above discussed principles had been ignored by the high court in its decision. According to Patterson (2016) a significant objection in relation to the principle is that the provisions may be largely in favor of the employee who manifests early signs of mental health problems in relation to the work pressure to the employer. Thus the employers would be seen better off if they are ignorant blissfully in relation to these problems and warning signs. It also ignores the position that the employees may be subjected to mental harm even if they do not know such harm may occur like it was in this case where all the employee could have done was to raise complaints in relation to the circumstances. As a result a clear argument can be provided that it would not be just to deprive the employee of compensation. However there is no suggestion or evidence which provides that the objections are entirely convincing and should be endorsed by the learned judges in this case with respect to the facts. Cardi (2014) states that the law of negligence in relation to employment is based on creating a balance between the right of an employer related to the freedom of action to run the business in a smooth way and to ignore risks which are unacceptable and the need of the employee in relation to a safe working environment and system. The balance has to be achieved with respect to a reasonable level and not merely out of assumptions which in this case was that a mental injury can be caused to the plaintiff without any prior indication or warning. In addition it can also be argued that the employer should not be imposed with an obligation of being clairvoyant with respect to the particular vulnerability of the employee towards a psychiatric harm where no sign of signs in relation to the problems. According to Kleiman and Kass (2014) the situation is considerably more significant when the issue is relate d to a psychotic harm as compared to a physical injury. Thus it can be fairly provided that if there was no surety of both the employee and the employer that such a harm would take place the responsibility of the harm if placed solely on the employer would be unfair. In addition as provided by Flint (2016) foreseeable means a situation which can be predicted reasonably and not a situation which is fanciful or far-fetched. However this test in relation to foreseeability was not applied in this case by the court. The principle provided by Justice Mason in the Wyong Shire Council case had been applied by CALLINAN J that a risk is foreseeable even if it is not fanciful or far-fetched as long as the probability of the risk to materialize was remote or low (Hayes et al. 2015). It was held by the judges in this case through the application of the principal that the risk that the employee would suffer mental illness within six months was far-fetched and not foreseeable. Therefore, the case provided by the employer in this case was stronger and more compelling that the case presented by the employee. References Cardi, W.J., 2014. The Role of Negligence Duty Analysis in Employment Discrimination Cases. Flint, P., 2016. An employer's duty of care to prevent psychiatric injury recent cases.Precedent (Sydney, NSW), (135), p.26. Hatton v Sutherland (2002) ICR 613 Hayes, J., Lawing, K., Allison, A.L. and Rubenstein, J., 2015. Workers' Compensation and Personal Injury.The Encyclopedia of Clinical Psychology. Kleiman, L.S. and Kass, D., 2014. Employer liability for hiring and retaining unfit workers: How employers can minimize their risks.Employment Relations Today,41(2), pp.33-41. Lockwood, G., Henderson, C. and Stansfeld, S., 2017. An assessment of employer liability for workplace stress.International Journal ofLaw and Management,59(2), pp.202-216. Patterson, J., 2016. Negligently Caused Psychiatric Harm: Recovering Principle and Fairness after the Alcock-Up at Hillsborough.Southampton Student L. Rev.,6, p.23. Petch v Customs and Excise Commissioners (1993) ICR 789 Torres, L.D. and Jain, A., 2017. Employers civil liability for work-related accidents: A comparison of non-economic loss in Chile and England.Safety Science,94, pp.197-207. Walker v Northumberland County Council [1994] EWHC QB 2

Managing job applications

Introduction The staffing process of firefighters involves spirited applicant assessment, especially because of the intricate nature of the services they are required to offer. This calls for a number of tests to be performed on aspiring candidates so as to establish their appropriateness for the job. In this paper, three types of job applicant tests will be discussed together with their legal and ethical impacts. The specific employment law and the adverse impact created by each test will also be discussed.Advertising We will write a custom essay sample on Managing job applications specifically for you for only $16.05 $11/page Learn More Cognitive ability test This is the test that looks into the ability of the candidate to reason (Hunter Hunter, 1984). Applicants who successfully pass the physical dexterity test are issued with this test. Use of number test, reasoning, figures and shapes, and long and short term memory are included in the criterion th at is used to measure cognitive ability. Legal and ethical issues The cognitive ability test issued is uniform to all candidates. However, past studies have shown that there exist differences among individuals based on grounds such as sexes and racial groups. As such, a common test for the whole population may not produce reliable and consistent results that are in line with the state legislations regarding just employment opportunities, such as affirmative action and minority discrimination. Improving cognitive ability test Much room exists on how to improve on both the administration and analysis of cognitive ability tests. Different tests can be administered to different candidates based on their area of origin, sex and racial groups. Similarly, use of non-cognitive measures can be employed. These have the advantage of exhibiting a small or no differences at all by means of subgroups. Motor and physical ability tests This is a recruitment test modeled to assess the aspiring candi date’s physical and motor capacity in performing important tasks while in job. This will show the individual capacity to function as a firefighter. The candidates are placed in a chain that best simulates fire scene events while allowing an 85-foot walk between them. In this test, the candidates are required to wear heavy vest to imitate the weight of self-contained breathing machines and firefighter shielding cloths (Schmitt, Clause, Pulakos, 1996). Legal and ethical issues The motor and physical ability test may contradict the legal requirements on grounds of being discriminative on persons with physical disabilities. However the nature of the responsibility that the candidate is expected to undertake for that matter as a firefighter automatically outdo the requirements of the law. Improving the Physical and Motor tests Motor and physical accuracy can be improved and accuracy of results ensured. This can be done by employing use of two stopwatches to time the physical test . One stopwatch can be used as the bureaucrat to assess time stopwatch and the second one used as the backup stopwatch. In addition, the current technologies especially those that improve accuracy of the data collected from the candidate’s performance can be used.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Personality and interests tests These tests are a common pack when hiring fire fighters. This is because they help the employer to identify as well as gauge the uniqueness and traits in individuals that remain established over time. However, past studies have shown a big number of candidates who are hired after being taken through personality test deliberately manipulate their response in an attempt to appear better (Jensen, 1980). Legal and ethical Issues The bone of contention of personality test and law is the fact that the test may evoke asking of questions that may infrin ge the privacy of the candidate as stipulated by the privacy laws. This is brought about by the kind of questions asked to the candidates by the human resource management team. As such, questions that are too personal can be avoided to eliminate the risk of qualification as infringement on the candidate privacy rights. Improving Personality and Interests tests There is still a big space for improvement of tests assessing personality and interests. A good example can be improving personality predictor tests through incorporation of current approaches for conducting meta-analysis of the information. Comparison of the Legal and ethical implications of the three Tests Considering the essence of each of the discussed test that are used for measuring the suitability of a candidate to be recruited as a firefighter, no test would have major implication because the state of affairs and working environment of firefighters requires that candidates be thoroughly screened before being recruited into the forgiven jobs. As such, there is no strict adherence to the equal opportunity employment legislations when recruiting personnel to work as firefighters. Impact of advancement in Technology in Job Applicant Suitability Tests Technology has made the work of human resource department much quicker, safe and expedient. Organizations that get large number of applicants for vacant post may get the advantage of using technology to minimize the applicant numbers, maybe by use of e- screening of resumes. Recommendations The most appropriate job applicant assessment test for fire fighters would be the Motor and Physical test. It is better to have candidates who are physically fit instead of those having excellent cognitive ability. This is because of the physical involvement of their work. The other tests however should not be disregarded. If anything, personality and interest tests need to be undertaken on candidates   to ensure that the candidates can cope with the many possibilit ies of potentially emotionally destabilizing and disturbing situations as they serve as fire fighters. On the same note, cognitive ability of fire fighters needs to be assessed to ascertain their capacity to handle events and situations that call for critical reasoning.Advertising We will write a custom essay sample on Managing job applications specifically for you for only $16.05 $11/page Learn More References Hunter, J. E. Hunter, R. F. (1984). Validity and utility of alternate predictors of job performance. Psychological Bulletin, 96, 72-98. Jensen, A. R. (1980). Bias in mental testing. New York, NY: Free Press. Schmitt, N., Clause, C. S. Pulakos, E. D. (1996). Subgroup differences associated with different measures of some common job-relevant constructs. International Review of Industrial and Organizational Psychology, 11, 115-139. This essay on Managing job applications was written and submitted by user Cayson Nolan to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

50 Research Proposal Topics Ideas for Writing a Masters Dissertation

50 Research Proposal Topics Ideas for Writing a Masters Dissertation Best ideas to write a winning research proposal for Ph.D. dissertation. Here are some ideas for the graduate student in need of the research proposal topics for their Ph.D. dissertation or Masters Thesis. They are categorized by several of the most popular departments (English, Political Science, History, etc.) and by difficulty. English/Literature Simple: The Lasting Influence of the Beat Generation: How Their Literature Speaks to Posterity Decadence in American Literature The Macabre of Edgar Allen Poe Moderate: How the English Language Has Evolved Over the Last 20 Years Due to Improvements in Technology Sexuality in Contemporary English/American Literature Masochism and Sadism in British Gothic Literature Difficult: The Long-Lasting Effects of Individualism in British Romantic Literature Environmental Ethics in American and American Indian Literature from the 17th Century to the Present The Pretentiousness of British Literature and its Exclusion of the American Reader History Simple: How History Helps Humanity Avoid Making the Mistakes of Old Women’s Right and Women’s Suffrage Moderate: Imperialism through Asian Eyes The Geographical Limitations of the Roman Empire Difficult: The Fall of the Roman Empire Comparison of FDR and Winston Churchill During World War II Political Science Simple: Inner-Workings of the European Union Moderate: Changes in Diplomacy After World War II The History of Diplomacy Since the Middle Ages Difficult: Malaysian Foreign Policy in the Post-Mahathir Era, (2003-Present) The Haitian Crisis of 1991-1994: Constraints and Asymmetry in United States-Latin American Relations Religion/Theology Simple: Christianity in the American South Reformation of Martin Luther during the Renaissance Period Moderate: Spirituality of the Native American Indian Interpreting the Bible in the 21st Century Difficult: The Diverging Views of Christianity in Europe Education Simple: Advantages and Disadvantages to Standardized Testing in the United States 21st Century Approaches to Education Moderate: Job-embedded Learning: How Teachers Learn from One Another During the Workday Difficult: A Review and Analysis of Title IX of the Education Amendments of 1972 Philosophy Simple: Applications and the Relevance of Existentialism in the 21st Century Deficient Causation in Leibniz Moderate: Rational Hope in Kants Moral Religion Heideggers Critique of the Cartesian Problem of Skepticism Difficult: The Prescriptivity of Conscious Belief Aristotle on Modality and Determinism Psychology Simple: The Effect of Positive Thinking on Life Success Identifying Predictors of Aggression in Children Moderate: Anger, Aggression, and Irrational Beliefs in Adolescents Emotional Intelligence as a Predictor of Victimization Among Adolescent Males Difficult: Rational Emotive Behavior Play Therapy vs. Client Centered Therapy Utilizing a Psycho-Educational Intervention to Reduce the Effects of Exposure to Media Images of Body of Young Adolescent Girls Criminal Justice Simple: Adolescent Deviance Within Families and Neighborhoods Procedural Justice During Police-Citizen Encounters Moderate: Meta-Analysis of Early Life Influences on Behavior in Criminals Difficult: The Effects of Individual Vulnerability and Lifestyle/Routine Activities on Fear of Crime and Perceptions of Risk in the School Setting The Adoption of Crime Prevention Technologies in Public Schools Journalism Simple: A Look at How Objective Journalism and Free Speech Sustains Democracy – and How the Absence of Both Promotes Autocracy Moderate: Publicity Matters: How Promotional Journalism and Public-Relations Marketing Can Go Hand in Hand New Journalism: How the Incorporation of Narrative and Fiction Techniques Brought Forth an Innovative Approach to Conveying the News and News-Worthy Topics Difficult: The Transition from Print Media to Online/Digital Media and the Role of Both Moving Forward You may use the topics above as the ideas to get started with your own research proposal. Let us know if you havent found an idea related to your field of study and well try to give you one.

Career Planning Essay Example | Topics and Well Written Essays - 250 words

Career Planning - Essay Example For example, the BSN degree objective must be achieved in less than two years and the family nurse practitioner in less than three years. The time frames set shed light to Ziglar’s golden rule that every goal should commence immediately. By that he means that there is no need to procrastinate. However, every goal is limited by obstacles. In this case, obstacles may include inconveniences that inhibit the learning process such as financial constraints. The final component of the plan of action is the consideration. What is the ultimate benefit of achieving the objectives? In this case, it is working in a women clinic after achieving the BSN and family nurse practitioner degrees. Individuals assume that time is the main reason for failing to achieve their goals. Ziglar terms that as a fallacy and counters that belief by saying that every individual is presented with the same number of hours in a day. Despite the fact that one is rich or poor, every individual has 24 hours in a day to set objectives and accomplish them in an effort to achieve their goals. Five years might seem quite a long period to achieve both my BSN and family nurse practitioner degrees. However, every single day counts in relation to my drive towards accomplishing such goals. Every day has its unique activities towards the achievement of goals. Such new activities bring forth more opportunities that would not have been realized had the activities not undertaken. Therefore, in my effort to achieve my career goals, my success will be measured by how wisely I use the five years, or less, to achieve both degrees and attain the confirmation to work in a women

Achieving Professionalism -Main theatre Essay Example | Topics and Well Written Essays - 3000 words

Achieving Professionalism -Main theatre - Essay Example It has been found that the styles that the leaders incorporate in running the operations and activities of an organization immensely contribute to the success of the firm. It is the responsibility of the managers and directors to ensure that the strategies of leadership that they use in their organizations are effective and efficient. Having visited Johns Hopkins Hospital and evaluated the operations and activities in the hospital, I realized that there are various effects of the leadership strategies that are used to the success of the organization. Being an international hospital, Johns Hopkins Hospital offers various medical services to the clients, and its success is influenced by the managerial and leadership approaches that are integrated in the organization. I liked the leadership approaches that are used in Johns Hopkins Hospital because they positively influence every worker in the organization. The employees are considered to be part of the hospital, in the sense that they are consulted in decision-making. The management values teamwork and this positively impacts to the performance of the organization. Patients are offered quality treatment and services because the nurses and medical practitioners in the organization are trained on various skills of handling clients. The management of the organization understands the need of integrating different leadership styles depending on the department and issue to be addressed. For instance, the employees adhere and follow the company’s code of ethics and codes of conducts, and this helps them in meeting the needs of the employees effectively. Strong leadership that is observed in the organization is achieved because the nurse leaders ensure that every employee offers the highest level of care. The management encourages employees to work closely and take the needs of the patients ahead of their personal issues. The leaders mentor the other nurses and medical professionals in the organization.

The Theory And Practice Of Financial Liberalization Economics Essay

The Theory And Practice Of Financial Liberalization Economics Essay Government intervention in the determining of the price and allocation of credit was termed as financial repression by McKinnon and Shaw in early 1970s. Interest rates control by government, credit controls, barriers to entry to financial sector, state control of banking sector, government ownership of banks and restrictions on capital flows are six elements of financial repression identified by Williamson and Mahar (1998). Financial liberalization is one of the main reform strategies of developing economies during the globalization process. Proponents of financial liberalization argue that financial repression is the cause for lower growth rates that otherwise would be higher if open market would decide the flow of capital to projects. Assumed costs associated with repression are described as follows (Caprio et al., 2001): (1) deteriorating growth rates for countries with high levels of financial repression; (2) widespread bank insolvencies as the result of low quality lending; (3) limited access to financial resources for individuals and small firms, whereas wealthy elites take advantageous position in financial repressed system; (4) increased dependence on external financing because of negative real interest rates which results in capital flight; (5) Excessive use of capital-intensive production techniques, because artificial low real interest rates makes those projects attractive; (6) reduced monitoring and financial resource allocation functions of financial intermediaries as the result of state allocation of financ ial resources to inefficient state-owned enterprises; (7) increased risk for external crises, as the result of deteriorating fiscal balances, increased external financing or money printing. McKinnon and Shaw argued that low interest rates or negative interest rates have negative effect on savings rates, which leads to lower amount of funds available for investment through financial intermediaries. Additionally, it results in inefficient allocation of resources as low-yielding investment opportunities would be considered as good investment. It was predicted that after capital account liberalization, capital would be allocated efficiently around the world to the investment opportunities that offer highest rate of return, thus increasing global growth rates and growth rates within individual countries. Furthermore, by being able to invest both internally and externally investors were able to diversify their investment, which would result in lower risks. 2. Financial liberalization: from theory to practice Arestis and Demetriades (1999) state that theoretically financial liberalization can promote economic development by increasing savings, investments, and the productivity of capital. However, much of the evidence from financial liberalization episodes from both developing and developed economies points to significant destabilizing consequences, including incidents of severe financial crises. 2.1 Liberalization: interest rates and savings rates Countries that went through liberalization process, after removal of artificial ceilings on interest rates, experienced high rise of real interest rates. While it is broadly accepted that negative real interest rates have negative effect on saving and investment, this does not mean that high real interest rates have positive impact on savings and investment. For poor developing countries regardless of interest rates level, savings rates will be insensitive to changes as major part of the population lives on near subsistence income (Campbell Mankiw, 1990 ?). Reynoso (1989) states that the rate of savings increase as interest rates move from extreme negative rates to slightly less than zero, but as the interest rates become positive saving rates goes down (Williamson and Mahar, 1998). Chapple (1991) finds that savings rates both at individual and corporate level fell after the implementation of financial liberalization. Bayoumi (1993) found the same effect in UK after financial deregulation in the 1980s. Demetriades and Devereux (1992) examine sixty-three countries from 1961 to 1990 and find that real interest rates are negatively correlated with investment. However, Gelb (1989) finds very weak positive relation between real interest rates and investment. Modestly positive real interest rates in middle-income developing countries may be optimal for maximising savings rates; whereas very negative or high real interest rates are associated with lower savings rates for developing countries. 2.2 Liberalization and financial depth Several measures have been proposed to analyze the depth of the financial sector. Mostly those measures focus on ratios of broad money aggregates (M2, M3) to the size of economy such as money/GDP ratio, which measures the level of the monetization in the economy. The broad money measures are used in the studies, because broad money increases in the faster way in the presence of financial deepening, whereas narrow money (M1 i.e. notes and coins) increase at the same rate as the growth of the economy. Williamson and Mahar (1998) in their studies of thirty-four developed and developing countries find that financial depth increased in all developed countries, except of France, after the liberalization process. With the exception of Philippines, Turkey and Venezuela other developing countries which were analysed in their studies also experienced substantial or moderate financial deepening. 2.3 Liberalization and the efficient allocation of domestic financial resources One of the key arguments for proponents of the financial liberalization was that process would lead to more efficient allocation of financial resources on commercial basis to most productive enterprises, which in turn would increase the level of the productivity and growth rate of the economy. The number of country level (?) analysis supports this view. The studies of Indonesia by Siregar (1992) and Ecuador by Jaramillo (1992) find that credit allocation was shifted to more technologically advanced and efficient firms. Number of studies in Korea (Atiyas, 1992), Mexico (Gelos, 1997), Argentina (Morriset, 1993) and Turkey (Pehlivan, 1996) state that financial liberalization led to greater access and improvement of allocation of credit to smaller firms that have been disadvantaged in repressed system. Galindo, Schiantarelli and Weiss (2007) found strong evidence that liberalization in twelve developing countries resulted in an increase in the efficiency of the allocation of resources. 2.4 Liberalization and the efficient allocation of international financial resources It was predicted that as the result of liberalization, there would be reallocation of global funds from developed countries to developing world, because enterprises in developing and emerging economies had a higher potential for growth. 2.5 Liberalization of capital flows Liberalization of capital flows is also one of the topics in the economic literature with greatest disconnection between the economic theory and the empirical cases. Neoclassical theories suggest that free flows of external capital should be equilibrating and help smooth a countrys consumption and production paths. However, in the real world, liberalization of capital flows has constantly been associated with serious economic and financial crises in Asia and Latin America in the 1990s. There is a large body of empirical work presenting the close link between the liberalization of the financial system and economic and financial crises particularly in developing countries. The recent Asian crisis, for example, is an excellent case for examining the role of capital account liberalization in causing or accelerating the regions financial meltdown. In a recent study by Williamson and Drabek (1998), it is indicated that the only difference between the countries that did or did not have econ omic crisis is the status of their capital account. Their finding is also in parallel with Stiglitzs (2000) study concluding that the growth benefits of capital account liberalization are obscured by the costs of associated volatility. It is now well known that, premature financial liberalization seriously contributed to the occurrence and the depth of the crises in countries like Thailand, Korea and Indonesia even if it was not the origin of the crises. On the other side, India and China, two of the economies with controlled capital accounts, managed to avoid the crisis and sustained their economic growth. Theoretically, it is possible that the instability caused by capital account liberalization is more than compensated for by faster long-run economic growth due to greater availability of capital inflows (Fisher 1997; Summers 2000). Although this statement is frequently suggested by the proponents of liberalization reforms, the results of empirical studies on the effects of capital account liberalization on economic growth are mixed. While Edison, Levine, Ricci and Slock (2002) do not find a strong relation between international integration and economic growth, Borensztein, De Gregorio and Lee (1998) find that there is a positive link between FDI and economic growth when the education level is high in the host country. In contrast, Mody and Murshid (2002) find that there is a one-to-one relation between the capital inflows and the domestic investment, but the link becomes weaker over time. 2.6 Liberalization and financial crises Development of the more sophisticated financial sectors by the contribution of foreign banks and investors is expected to lead to a sustainable economic growth in these economies. However, free capital mobility which is another outcome of the financial integration has led to a highly unstable international financial environment leaving the developing economies in deep financial turmoil. Williamson and Mahar (1998) find in their study of thirty-four countries that went through the process of liberalization, that all of them experienced some form of systemic financial crisis during the period of 1980 and 1997. Even though, crises in twenty-one of these countries followed directly after the liberalization process, and while not all of them were caused by liberalization, it seems very likely that substantial proportion certainly was. Research made by Griffith-Jones and Gottschalk (2004) estimated US$ 1.25 trillion loss in eight countries that had suffered financial crisis, which further worsened situation with poverty in those countries. Eichengreen (2004) estimates that as the result of the currency and banking crises levels of developing countries income fell by 25%. Such fact proves again that financial liberalization process should be implemented only after the establishment of strong regulatory and supervisory mechanisms of the financial sector.