Economic Turmoil and the Future of Brazil

For many years, Brazil has been an emerging economic hub, attracting investors from all over the world. The Brazilian economy saw an 368% increase in Gross Domestic Product growth from 2003 to 2011. In addition, Brazil took in almost half of Foreign Direct Investment flowing into South America during 2015. This doesn’t come as a … Continue reading “Economic Turmoil and the Future of Brazil”

For many years, Brazil has been an emerging economic hub, attracting investors from all over the world. The Brazilian economy saw an 368% increase in Gross Domestic Product growth from 2003 to 2011. In addition, Brazil took in almost half of Foreign Direct Investment flowing into South America during 2015. This doesn’t come as a surprise since it reigns as one of the major emerging national economies. However, Brazil has seen a recent economic downturn with increasing unemployment and a contracting GDP. In fact, the Brazilian government cut 2017 GDP expectations from 1.6% to 1% growth. Having been one the most lucrative foreign investments for governments to individual investors, what happened to the so-called “Country of the Future” and can Brazil regain its momentum?

Back in 2015, recession hit Brazil hard and the country is still struggling to get back on track. According to the CIA World Factbook, the economy contracted 32% from its peak in 2011 and unemployment reached a new high at 12.6% in 2016. Being based mostly on services, agriculture and oil, Brazil’s economy has a direct correlation with global demand. With global recession looming, Brazil is feeling the effects of a slow world economy.

Brazil is a top tourist destination offering beautiful beaches, a diverse culture and exciting festivals. However, with the world economy slowing down, people are less likely to travel abroad. Since the majority of the country’s GDP derives from the service industry, Brazil will not be able to rebound any time soon unless there is a major boost in consumer confidence.

The demand for Brazilian exports was slashed when its largest trading partner, China, entered into an economic slowdown of their own. The decrease in exports caused massive layoffs throughout the nation. The notorious economic downward spiral began by wary consumer spending as unemployment rose. Companies that tried to gain capital by borrowing in U.S. dollars found it difficult to pay back those loans as the Brazilian Real crashed 25% in the span of a year in 2015.

One of the major hits came from low oil prices and the corruption of Petrobras, a large oil company and Brazil’s largest source of investment. Brazil is major producer of oil, exporting $11.8 billion worth in 2015, according to the Observatory for Economic Complexity. OPEC delivered a major blow when the cartel decided not to cut oil production, causing oil futures prices to plunge. In order to cope with heavy losses, Petrobras was forced to sell off assets and halt future research and expansion plans.

As if things weren’t going poorly, Petrobras was also caught in a scandal with former Brazilian president Dilma Rousseff and other high office executives. From 2004 to 2012, the company had spent over $2 billion on bribes to politicians whom would allow the company to charge inflated prices for construction contracts. Now that the scandal has unfolded, Petrobras executives face jail time and the company as a whole is forced to pay billions in fines.

So what does the future hold for Brazil?

Although at the moment the future looks dim, there are still signs of hope Brazil can turn itself around. The Real has seemed to stabilize in 2016 and heads into 2017 with an upward trend. Moreover, experts’ GDP projections for 2018 through 2020 show promising figures that Brazil can restore pre-recession level growth.

Even more promising, U.S. companies are still showing faith in Brazil’s future. American Airlines plans to invest $100 million in an aircraft maintenance center in Sao Paulo. Brazilian Investment Partnership Minister Wellington Moreira Franco and many countries like the United States, United Kingdom, France and Japan agree there are still reasons to invest in Brazil. This should be seen as a sign of confidence that the Brazilian market will grow soundly with the support of both national and international investment.

“The World Factbook: BRAZIL.” Central Intelligence Agency. Central Intelligence Agency, 12 Jan. 2017. Web. 23 Mar. 2017.

“Brazil.” OEC – Brazil (BRA) Exports, Imports, and Trade Partners. N.p., n.d. Web. 23 Mar. 2017.

Learning From W. D. Gann – Trend Line Indicator

Many novice traders really like to complicate their trading.

In the beginning, they usually trade on tips from friends or workmates, or something they heard or read in the news.

If they survive the hit they will likely receive to their capital, they may soon come to discover technical analysis as a better way to get a read on price action.

However, often their beginning foray into technical analysis is to lock onto some common charting indicator such as the Stochastic and think they have found the Holy Grail to wealth. Unfortunately that bubble will soon burst when they realize that this and any other indicator only works during certain times and with some adjustment to the parameters.

If this happens to sound like you, and you are still in the game (I know, this is not a game. It’s a figure of speech), then there is hope for you yet. Let me introduce you to W. D. Gann’s “Trend Line Indicator”, which today might be referred to as the Swing Chart.

No matter what market you wish to trade, there are going to be a series of swing bottoms and swing tops that form trends of various degrees. These swing patterns occur on any time-frame, and they are the basic components in determining whether a market is in a bull or bear trend.

The Trend Line Indicator, or Swing Chart comes in several varieties. You can construct a 1-bar, 2-bar or 3-bar swing (I would not bother going beyond this).

The 1-bar swing chart is extremely short-term and is good for fine-tuning an entry. However, for the purpose of determining the trend of any consequence, the 2-bar swing would be my recommendation. In addition, it would not hurt to get the bigger trend picture by constructing a 3-bar swing chart as well.

To construct the 2-bar swing chart is quite simple. Starting from a clearly defined bottom or top, you would draw your swing line (Trend Line Indicator) either up for each new high (starting with the second consecutive higher-high) or down for each new low (starting with the second consecutive lower-low). To demonstrate, let’s start from a clearly defined bottom to draw our 2-bar swing chart line.

With a 2-bar swing chart, we need at least two higher-highs in order to advance our line up to that new high on the chart. So let’s say our starting bar (with the bottom low) is bar #1. The next bar (#2) makes a higher-high but not a lower-low. Our higher-high count is just one, so we do not yet move up our swing (trend) line. Now bar #3 also makes a higher-high and our #1 bar low is still holding. Therefore, we can move our line up to the new high of bar #3.

As each new bar makes a higher-high, we can continue to move our line up to that new high. If a following bar then makes a lower-high and lower-low, our line does not move up and our down count is one. If price resumes the upside move and makes another higher-high than our current highest high (that would be bar #3 in this example), our line would continue up to that new high, and every higher-high until we actually get two lower-lows to change the line direction.

So let’s say that after we’ve been moving our swing line up to each new high that we get a lower-low bar instead. Let’s call this bar #5. If we have been moving the line up to each new high prior to this new lower-low, our lower-low count starts at one. If we get a bar (#6) that makes an even lower-low than the low of bar #5 before another bar makes and even higher-high than bar #4 (which was the last higher-high bar where the line moved up to), our lower-low count becomes two and we would move the line down from the last higher-high (bar #4) down to the low of bar #6. Now for each bar that makes a lower-low than the low where our line is currently sitting (currently bar #6), we would move the line down to that new lower-low.

The bottom-line here (no pun intended) is that we need a count of two higher-highs to start a move up or a count of two lower-lows to start a move down. Once the count has been met, we then could continue in that direction for each bar that exceeds the price where the line is currently sitting.

There are times when a bar makes neither a higher-high or lower-low (called an Inside Bar, or a “within bar” by W. D. Gann). Since they make neither a higher-high or lower-low, do nothing. The line stays put.

There are also times when a bar makes both a higher-high and lower-low (remember that we are comparing each price bar against the previous bar to determine if it is a higher-high or lower-low). This bar is called an Outside Bar. To deal with these bars depends on the currently direction the line has been moving. If the line has been moving to each new higher-high, then you would again advance the line to the new high of this outside bar. On the other hand if the line has been moving down for each new lower-low, you would move the line down to the low of the new lower-low of this outside bar.

The thing to note about Outside bars is that, although you will be advancing your line up or down (depending on the current direction of your line drawing), you must count the opposite side of the Outside bar as a count of one in the opposite direction. Thus, if price then goes the opposite way and exceeds the opposite side of the outside bar, the count becomes two in the opposing direction and the line should then move from the outside (where it is currently sitting) to the bar that made the count of two.

For example, let’s say that we have been moving the line down to each new lower-low (thus the direction is currently down). Then an outside bar forms making both a lower-low (lower than where our line is currently sitting) and a higher-high (higher than previous bar). Since our direction leading up to this outside bar was down, we move our line down to the low of the outside bar (since it is in fact a lower-low). We also want to assign the higher-high of this outside bar with the count of one. Now if the next bar makes a higher-high than our outside bar, the count goes to two and the line moves from the low of the outside bar up to the new higher-high.

After you have done this with your price chart, you will see the peaks that represent the swing tops and bottoms. You will use these peaks to determine the current trend of the market.

For example, a bull trend is a pattern of higher swing bottoms. As long as the market forms each swing bottom peak higher than the last, the bull trend is in effect. On the other hand, the bear trend pattern is made up of lower swing tops and lower swing bottoms. So by nothing where these swing bottoms or tops are forming in relation to the previous one, you immediately can determine the current trend.

W. D. Gann has stated that when the high of a 2-bar swing top has been exceeded, it is an indication of higher prices. He also stated that when the low of a 2-bar swing bottom is taken out, it is an indication of lower prices.

Not only should the trader focus on trading in the direction of the trend, but those swings can also help in determining where to adjust stop-loss orders. For example, if you are long due to the trend being bullish, moving your stop-loss below each higher swing bottom would protect your position in the event a swing bottom low is taken out (as this is an indication of lower prices to come).

Of course these days it can be leaving a lot on the table to use these 2-bar swings for stop-loss orders. Consider this a beginning guideline. One option I may employ is to draw a trend-line under two or more swing bottoms (when long) or across two or more swing tops (when short) and use the slope of that trend-line as a guide for adjusting my stop-loss.

Learning how to identify swing tops and bottoms is a valuable tool for any trader that wants to get a good read on the market. It is mentioned in several lessons by W. D. Gann because it is really that important. In my work, everything revolves around the swings.

Are Renko Charts a Better Way to Trade Forex?

Renko charts hold their own forte when it comes to traders using these custom chart types. Although the more popular candlestick or bar charts are still widely preferred, traders who trade the markets with Renko bricks tend to be more comfortable trading this chart type than switching to other forms. A quick look at some of the popular trading forums and one can see the increasing number of traders coming up with new Renko trading strategies.

What exactly is a Renko chart you might be wondering?

Well, for starters it is not a holy grail chart that will show you things that others don’t see. Renko charts are merely a graphical way of displaying price on the charts, in the form of bricks.

If you haven’t come across a Renko chart before, the first time you look at these charts can be visually captivating. If you have been around in the markets for a while, you might actually find some similarity between Renko and Heikin Ashi charts, at least as far as trends are concerned. But that’s where the difference ends. Renko bricks are unique because the charts are built using price, unlike other charts including Heikin Ashi where time is a factor. This unique feature makes the Renko bricks purely showing price and thus in a way trends as well. What captivates most traders about Renko charts is the fact that due to the lack of noise in the price bricks, it is a lot easier to trade. We all know the popular usage of the trend being your friend.

Renko boxes are widely used, not just in the Forex markets but also in stocks and futures as well. For a technical analyst who prefers to trade with price action, there is nothing better than this. From chart patterns to support and resistance levels, you can quite see everything that price is doing.

It is perhaps due to this feature that Renko charts are often used by traders, who rather unfortunately expect to see their trading turn around. But that is not always the case. If you are trading without understanding the concepts of the market dynamics, then no chart, existing or future inventions will be able to help you make profits with trading.

But why use a Renko chart type where there are tons of other regular conventional and un-conventional charts to use from?

As mentioned, it is purely a question of preference. For the astute technical analysis, Renko charts can offer a lot more information compared to a Heikin Ashi or a candlestick chart. This chart type can also be beneficial if you are not worried about time but focused on what price is doing. And yes, due to the nature of these charts, there is some key market information that can be easily seen, but could be missed when using one of the many conventional chart types.

Reasons why you could use Renko charts

Here are some of the main benefits of using Renko charts.

Price indecision: In traditional chart types, price indecision usually refers to prices ranging back and forth. While this is also evident on Renko charts where you can see these ranging price patterns with consecutive bricks being plotted up and down and prices heading nowhere, there is an edge however.

The advantage is that these consolidation or indecision zones are easier to spot. And if you are good at your technical analysis, you can look at past price action and figure out why the market is behaving the way it is.

Pull backs in a trend: There are tons of articles that talk about how to trade pull backs but the truth is that in real-time it can be hard to trade unless you know and are confident in your trading approach. With Renko, the pull backs in the trend are a lot easier to spot and don’t require much of subjectivity.

More trading opportunities: Whether you want to scalp the markets or whether you are in for the longer term, Renko charts can show you different ways to trade. From taking profits for every 10 ticks to riding the trends, or even counter trend trading, the charts make it all the more easier. It all depends on how big your Renko brick size is.

In conclusion, if you are looking for an alternative way to trade the markets, not just in hopes of finding the next holy grail, then renko charts might be worth your time, as long as you have an open-mind and willing to explore the possibilities.

Advantage and Disadvantages of Discount Stock Brokers

The primary requirement for trading stocks, bonds, and other commodities is to have an account with a stock brokerage firm. You may save a little bit of money on fees and maintenance charges associated with your stock-brokerage account with one of the many discount stock-brokers available online. Discount stock-broker are an excellent option especially if you are an experienced investor who may not need to take advantage of all of the additional research tools options offered by full-service stock-brokers. Discount stock-brokers can be used to conduct your basic trades on a daily basis while saving you a lot of money.

It should be noted however that not every trader will be best served by the services of discount stock brokers. For the most part discount stock-brokers are the best choice for experienced traders who know how to conduct their own research and market analysis. If you are new to stock trading and are not familiar with all of the intricacies and complex strategies of stock market investing in you should probably stay with using full-service stockbrokers. For those of the trading for few years however, discount stock-brokers may be an excellent choice.

One of the major disadvantages to discount stock-brokers effective for the most part you have no help when you need it. Discount stockbrokers do not offer any type of live person-to-person advice, research, and more comprehensive analysis; in fact most of them offer flat-rate monthly packages and little or no maintenance costs associated with your brokerage account.

This is something that you will need to keep in mind when you are looking into discount stock-brokers. The advantages as well as disadvantages will need to be weighed. Discount stock-brokers have a different amount of experience than other certified financial experts. This lack of training and expertise can at times lead a person to get a stock broker at a discount rate. Several of the trading companies employee these discount-stock brokers in order to act as a middle man for the person wanting to commit the trade. The broker is acting simply on instructions that they are given as to what they are to do with a particular trade.

This is both a curse and a blessing in the fact that you save money while not getting any of the tools that a regular stock broker will give you. Discount-stock brokers are not always a bad thing, many people find that they serve a useful purpose in the fact that they can do the things that need to be done involving a trade without any of the other hassles. If you are new to the markets however, then the use of discount-stock brokers might not be good for you. The use of discount-stock brokers can be a very risky choice unless you are fully prepared to do all the extra work associated with the trade that is normally done by the brokers at a full-service stock brokerage firm.

eBay – Pierre Omidyar’s Success Story – Famous Entrepreneurs

“I never had it in mind that I would start a company one day and it would really be successful. I have just been motivated by working on interesting technology.”

Growing Up

Omidyar was born in Paris in 1967. He moved to Baltimore when his father began his term of residence at Johns Hopkins. Omidyar became captivated by computers while at high school and skipped his gym classes in order to use it. Noticing the boy’s keen interest, the principle gave him the job of creating a program that would produce catalog cards for the library. He was paid $6 an hour.

At Tufts University, Omidyar worked on a program to assist Macintosh programmers with computer memory problems. His request that users of this shareware file pay on the honour system did not bring many replies; the cheques that should have been going to fund his years as a computer science undergraduate went solely to paying for the post office box.

In 1991, Omidyar went to work with three friends to create pen-computing programs. Though Pen computing was a dismal failure, the e-commerce site (eShop) on the Web site that Omidyar introduced and operated enticed Microsoft to buy the company.

Starting The Business

Omidyar went to work with General Magic, a software company, in 1994 and made extra money designing Web pages on the side. The girl he was dating at the time, Pamela Wesley, who would later become his wife, collected Pez dispensers and often complained how difficult it was to meet others passionate about her hobby on the internet. Thoughtfully, Omidyar appended a small online auction to his personal website so Pamela would make contacts with other collectors as well as buy and sell.

eBay (electronic Bay, as in the San Francisco Bay area), as it was when it first appeared in 1995, operated merely as a forum for people to sell and bid on various items. Omidyar did not back goods, mediate conflicts, or get involved if there were accusations of dishonesty or abuse of the system. Almost immediately, collectors of Barbie dolls, Beanie babies and the like flocked to eBay.

Three months after its launch, Omidyar had to ask his friend Jeff Skoll, also a programmer, for help. In order to cover the new costs involved with the growth of the business, Omidyar began charging small change to list an item on the site and took a small commission if the item was bought.

Building An Empire

Omidyar was surpised by his continued success and had to hire someone to open the large number of cheques that were being sent in. He was also surprised that people were not simply using the site to buy and sell, but also as a meeting place where relationships were made over common interests.

After qutting his day job, Omidyar worked along with Skoll to improve eBay. They felt that if a sturdy framework was in place, business would generate by itself. After just under two years of operation, eBay was one of the most popular internet sites, 150 users bidding on 794,000 items daily. And the company was now doubling every three months.

At such a rate of growth, Omidyar and Skoll sought venture capital assistance and a management team that would further move the company forward. Benchmark Capital gave the partners a $4.5 million cheque for 22% of the company. Benchmark also found a CEO for eBay, Margaret Whitham, an executive from Hasbro, and with her leadership, the business became a slick corporate entity. With a new look, better publicity, and greater organization, eBay went public on September 24, 1998. Within four months of trading, the stock, which started at $18 per share, was worth $300. Omidyar became a billionaire.

Now selling far more than just Pez dispensers, eBay has completely changed e-commerce. Despite increasing competition, eBay continues to grow. Omidyar recognized and seized the opportunity that essentially fell into his lap and revolutionized internet use.

Starting an Arcade Business – It’s Fun, Entertaining, and Profitable!

You should consider Starting an Arcade Business for public entertainment if you enjoy entertaining and amusing people! You can set your cash registers roaring by providing loads of interactive games, computer games, video games and all kinds of electronic amusement amenities.

This is a fun and family entertainment business. Youngsters and young adults just want to chill out and get their adrenaline pumping and amusement arcades are just the environment. If you are looking for self-employment options that will earn you a stable and profitable income you need to consider the arcade business. Before Starting an Arcade Business you need to check out the local zoning laws.

Estimated start-up costs:

$10,000 to $50,000.

Financing Sources for Starting an Arcade Business:

Bank & Credit Union Loans

Angel Investors

Business Plan needed when applying for loans

Marketing Methods and Tips:

Remember that you are competing with home versions of all these games. For that reason you need to do something to draw them to your Arcade rather than remaining at home to play. Think up some catchy name for your arcade business. One way to draw customers is by offering exciting, fabulous and unique prizes on winning particular games!

Advertising :

Place ads in local newspapers

Yellow Page advertising

Local Radio Stations

Distribute flyers at local clubs, super markets, etc.

Internet website

Essential Equipment:

Vending machines for food, candy and soda

Coin or Token Change Machines

Tables & Chairs

Arcade Games of all types and varieties

Recommended Training, Experience, or Needed Skills:

You don’t require any kind of formal or professional training for Starting an Arcade Business. It would be helpful to have some technical knowledge on repair and upkeep of the games. However, you can outsource for repairs and upkeep. Basic business skills would be helpful, but you can learn from books or business plans you can purchase.

Income Potential:

The income potential is dependent upon a good location. If you locate the arcade properly, you can make upwards of $100,000 a year. Without a proper location you will probably have little chance of success.

Target Market:

The biggest target markets for your arcade business are kids, teens and young adults.

Success Tips:

The biggest success tip for any arcade business amateur would be to promote your gaming parlor in a big, big way. You have to employ clever business and marketing techniques to attract customers. After that word of mouth will work the best.

You need to create the perfect ambiance that will help youngsters and their parents to have fun and relax! Revamp your arcade décor from time to time including the latest games and exciting prizes!

Seven Top Differences Between Entrepreneurs and Businessmen

Entrepreneurs and businessmen are most of the time interchangeably used. I too have been guilty of using one or the another at times. However, I feel that there is a significant difference between the way entrepreneurs run their venture and businesses run their operation. Entrepreneurship is all about assuming risk and accepting whatever rewards or failures that occur subsequently. A businessman on the contrary follows a well known path and takes lesser risk than an entrepreneur.Let us look at some of the points where entrepreneurship is different from running the business.

  1. Entrepreneur are in the business of creating something new
  2. The purpose of business is to recycle the products. Hence business is more like trading. By trading I mean purchasing goods from one place and selling at the other. It may also involve manufacturing at some step but the fundamental principal remains the same.
    Entrepreneurs create something new. They identify a problem and work to create innovative solutions that help reduce or eliminate problems. Even if they do trading, they will apply innovative methods to it.
    Let me give you an example. If an owner of retail chain is adding internet sales as one of his channel, he is just being a businessman trying to find new ways of getting more business. However if he goes an creates an innovative product that never existed before, he is being an entrepreneur. Here, he has taken the risk upon himself.

  3. Entrepreneur’s “Business” is unique
  4. An entrepreneur will not work in areas where there is already a crowd. He will use his scarce money to explore new. He will for example, go for new channels of sales( internet, m-commerce etc), innovative products ( a new software), innovative marketing techniques( viral marketing) etc. He side steps the market that is too competitive and works in a niche area.

  5. Entrepreneur puts his own money first
  6. Since people are not convinced of his ideas, entrepreneur has to put his money on the line first. He has to show that a market exists for the products he is creating. Then only he can get external finance. This is in contrast to a regular business, where it is known that market exists and hence investors are more willing to invest in such businesses

  7. Entrepreneurs working with new innovative products have more breakout chances
  8. If the risks are high, so are the rewards. A successful entrepreneur reaps more monetary benefits than his business counterpart. A regular business with lower risk will get lower returns on the capital it invests. The surety of making money in regular business is more than that of entrepreneurship though.

  9. Entrepreneurs experience more uncertainty than regular businesses
  10. Entrepreneurship is definitely more riskier and uncertain than conducting an ordinary business. An entrepreneur faces the question almost daily about success of his product, cost of developing the product, customer’s adoption, team motivation and everything else. There is uncertainty and un-evenness of sales.
    A regular business however has more or less regular sales and is less uncertain than an entrepreneurial venture

  11. Entrepreneurs share business ideas with team
  12. Entrepreneurs build on vision and they cannot do it alone. So an entrepreneur constantly needs to remind his team and himself about what they are creating and why it will work. An Entrepreneur has to always look for new ways to motivate the employees. The roles of employees change frequently based on the perceived business conditions
    In a business however, the roles of employees are same throughout the life time of the business

  13. Entrepreneurs share the success with the team
  14. Entrepreneurs do not have much cash to offer. Hence they offer equity to their employees. When the venture is successful everyone who has a shares becomes rich. One of the prime example is Infosys technologies in Bangalore. It has created so many millionaires just by distributing equities to the founders and employees of the company.
    A business on the other hand is less open to sharing equity with employees and would pay higher salaries to compensate for it.

I nowhere say that businesses cannot be entrepreneurial or vice versa but that there is a significant differences between the way a entrepreneurial venture and a business works. A business however can become entrepreneur by doing something innovative while entrepreneur can reduce the uncertainty by being more like a business.

Life In The Middle East

When someone lives in places unknown to him or her, lots of observation, learning and adjustment will have to take place. Adapting ones self to the new environment, customs, traditions and others are important factors to living a life other than you had known. If a person lived in the Middle East or Gulf State countries for more than a decade, there will be lots of things and events that could have happened. Things that were amazing, events that were scary and most of all peaceful living.

These three things come into someone’s mind who had lived in the “Middle East or Gulf States”. It is a place composed of different countries/ Gulf States with amazing geographical sights and views different from other places. For their dress code, most men usually wear white trouser or serwal, ghutra (ghutra is usually checked red and white or plain white used to cover their head) and uggal which is the black ring used to hold the ghutra or head cover. They put on the “Dishdasha,” usually white, grey or black, with straight cut pattern. It is worn on top of their shirt or serwal. Serwal is like an underpant. The women wear the normal dress for women then wear the “Abaya.” It is a black loose dress with embroideries or decorative patterns around the neckline, as well as at the side and at the bottom of the dress. It is worn on top of their dress and a veil to cover their faces.

For food, most of them eat food namely shawarma, mashboos, biryani, harris, fish and rice. When it comes to greetings, Arabs have different ways of speaking Arabic. Their Arabic languages differ from one Arabic country to another. Arabic countries like Egypt, Morocco, Libya, Algeria,Tunisia, Lebanon, Palestine, Sudan, Iraq, Gulf States such as; Saudi Arabia, Kuwait, Qatar, United Arab Emirates,Bahrain and Oman) speak different Arabic languages but there are Arabic countries that can understand each other with the common Arabic language being spoken by most Arabic. For example: Greeting like: “Salam alaykum” and the response is “Alaykum salam” is being used by most Arab countries. But when you say How are you? the common Arabic phrase is “Kephalak” (address to a man, “Kephik” (address to a woman), the response will varies accordingly. In Qatar it is “Zein” or “Mamnoon”, In Egypt it is “Tammam” or “Kuwaisa” for woman, “Kuwais” for men. In Iraq, How are you in Arabic will be “Slonik ente (address to a woman), “Slonek enta” address to a man. Arabic scribble or write their words starting from right towards left. They count numbers like: one-wahad, two-etnein, three-talata, four-arba, five-kamsa, six-sita, seven-sabah, eight-tamanya, nine- tisaa and ten- ashara etc.

The sands, sand dunes, deserts, camel, donkeys, Mediterrenean Sea, Nile River, etc. relates as parts of Middle Eastern terrain. The Pyramid in Egypt was unbelievable too. You can see the size of the blocks of stone which were huge and just imagine how they were laid one on top of the other to build a Pyramid. Riding a camel is very exciting and at the same time scary. When it comes to religion, Islam is dominantly practice throughout the Arab world. You can hear the “Call to Prayer”from sun break to sundown in a loud speaker from the Mosque starting with a phrase “Allah Akbar…….” ( God is Great).

When people hear the Call to Prayer, you will start seeing Muslim people leaving their job or going out of their homes proceeding to the Mosque to gather and pray. The prayer last for 5 to 10 minutes. When they praying they have to face the Quiblah( a direction towards Mecca in Jeddah). In the hotel you will find rooms designated only for praying, whether for guest or employees. During the period of Ramadan, Muslim fast and abstain from food and water from sun break to sundown for 30 days. It is very important that expatriates who are non-Muslim respect the people who were fasting by not showing themselves eating or drinking and even smoking within their sight. Muslims call their “Bible,” Holy Quran. It is well respected and handled with utmost care.

Arabic countries and Gulf States have multi national expatriates. Most of them are contract workers from the category of oil drilling contractors, builder contractors, laborers, hotel managers and workers, doctors, nurses, accountants, technicians, teachers and many others. Contract workers usually comes from India, Sri lanka, Philippines, Pakistan, Bangladesh, Nepal, Africa, Egypt, Europe, England, Russia, U.S. and others are minority. Most Arabs that I met were polite, reserve and educated. Most children in the Gulf Countries were sent outside for higher education like Europe, America and others. It is important that when you live in the Middle East or Gulf States, that customs, traditions and religion are observed and respected.

Role of Stock Market in Financial System

The stock market plays a crucial role in the financial system. It is considered as one of the best ways to increase their funds. But before you make any investment into the stock market, you should know how to get started. It may turn out to be a profitable affair as long as you know the tricks of the trade. To start with, you must have an account in your preferred brokerage.

You need to pay the corresponding transaction fee as they will be acting on your behalf. Primarily the stock market offer liquidity which empowers the financiers to trade efficiently on their securities. This is regarded as one of the best features of stock market investment. Also the exchange rates are vital in financial dealings as it eradicates the risk to personal purchaser or supplier.

Many pioneer economists believe that the role of stock market has opened new avenues in terms of financial as well as the economic growth of a country. Today with easy access to internet you can buy or sell instantly with online stock trading system. Although stock market can boost your financial stability but you should never overlook the risks attached to it.

Basically it’s a matter of sharp market observation and speculation. The ever fluctuating stock market can leave you high and dry. You need to understand how to minimize the risks on your investments. Proper financial guide, market research, expert advice can help you to deal with the risks involved to a great extent.

Entrepreneurship In The 21st Century

Many definitions of entrepreneurship can be found in the literature describing business processes. The earliest definition of entrepreneurship, dating from the eighteenth century, was deemed to mean an economic term describing the process of bearing the risk of buying at certain prices and selling at uncertain prices. Later, the term broadened to include the concept of bringing together the factors of production. This definition led others to question whether there was any unique entrepreneurial function or whether it was simply a form of management. In more recent times, the concept of innovation was added to the definition of entrepreneur-ship. Innovation would blossom into many categories: Process innovation, market innovation, product innovation, factor innovation, and organizational innovation. The most recent definitions have described entrepreneurship as involving the creation of new enterprises whereas the entrepreneur is the founder.

Considerable effort has also gone into trying to understand the psychological and sociological underpinnings of entrepreneurship. These studies have noted some common characteristics among entrepreneurs; most entrepreneurs have a need for achievement, perceived locus of control, orientation toward intuitive rather than logical reasoning, and a risk-taking propensity. In addition, many have commented upon the common, but not universal, thread of childhood deprivation, minority group membership and early adolescent economic experiences as typifying the entrepreneur.

At first glance then, we may have the beginnings of a definition of entrepreneurship. However, a detailed study of both the literature and actual examples of entrepreneurship tend to make a definition more difficult, if not impossible to precisely define.

Consider, for example, the degree to which entrepreneurship is synonymous with bearing risk, innovation, or even founding a company. Each of the terms described above focuses upon some aspect of some entrepreneurs. If this holds true, then the likes of Thomas Watson of IBM or Ray Kroc of McDonald’s will never qualify; Few scholars would seriously argue that these individuals were not entrepreneurs.

Although risk bearing is an important element of entrepreneurial persona, many entrepreneurs have succeeded by avoiding risk by seeking others to bear said risk. As one extremely successful entrepreneur has said, “My idea of risk and reward is for me to get the reward and others to take the risks.”

Creativity is often not a prerequisite for entrepreneurship either. Many successful entrepreneurs have been good at copying others and somehow improve on the idea; they will be remembered for innovating one part that was essential to a product’s success.

Many questions about the psychological and social traits of entrepreneurs still arise. How is it that successful and unsuccessful entrepreneurs can share the characteristics commonly identified? Furthermore, certain studies often show decreasing ‘entrepreneurship’ following a successful venture for the entrepreneur. This tends to disprove the centrality of character or personality traits as a sufficient basis for defining entrepreneurship.

Thus, we are left with a range of factors and behaviors which characterize entrepreneurship in some individuals. All of the above tends to reinforce the view that it is difficult, if not impossible to define what an entrepreneur is. The word itself can be best used in the past tense to describe a successful business person.

Measuring Entrepreneurship

Despite the murkiness of the current finding concerning the entrepreneur, there still remains a powerful impulse, particularly amongst enterprise development practitioners, to measure entrepreneurship in some way. These measurement attempts can range from simple checklists through to complex and detailed computer programs. The need for a definition and measure of entrepreneurship is driven by the notion that it is the entrepreneur who is the agent of success at the launch of any business.

He or she is the person who perceives the market opportunity and then has the motivation, drive and ability to mobilize resources to meet demand. The major characteristics of entrepreneurs that have been listed by many commentators include the following.

” Self confident and multi-skilled.

” Confident in the face of difficulties and discouraging circumstances.

” Innovative skills. Sees opportunities often invisible to others.

” Results-orientated. Requires the drive that only comes from achieving the goals they have set for themselves.

” A risk-taker. Often the successful entrepreneur exhibits an incremental approach to risk taking, at each stage exposing him/herself to only a limited, measured amount of personal risk and moving from one stage to another as each decision is proved.

” Total commitment. Hard work, energy and single-mindedness are essential elements in the entrepreneurial profile.

However, two warnings need to be attached to this partial list of entrepreneurial qualities.

First, the selecting individuals for enterprise development training by such a set of attitudes and skills in no way guarantees business success.

Second, the entrepreneurial characteristics required to successfully launch a business are often not those required for a business that experiences growth. The situation becomes vastly different once it grows to any size, making the skill set a different organism. The role of the entrepreneur needs to change with the business as it develops and grows, but all too often he or she is not able to make the transition.

Visionaries and Managers

In new and emerging businesses, the person who starts the business is often an entrepreneur or a visionary.

The visionary who starts a business with a fresh idea — to make something better or less expensively, to make it in a new way or to satisfy a unique need — is often not primarily interested in making money. The visionary wants to do something that no one else has done because they can; it is interesting and exciting, and thus meeting a need. Once the business begins to have some success, the nature and processes change. This ultimately requires a different skill set than the person with the vision.

At this stage, the infant business experiences its first set of challenges:

” How does the visionary entrepreneur transfer the skills and the inspiration that made the little enterprise a success into something larger?

” How does the business deal with cash flow constraints?

” How does it obtain the legitimacy necessary to enable it to borrow?

Often, the visionary is not interested in these issues. Visionaries are notoriously poor at supervising staff, negotiating with investors, or training successors. The business now needs a professional management focus, which calls on a different set of skills, to manage and sustain growth, that are distinct from the skills necessary to start an enterprise and promote a vision.

Applying management skills allows the adolescent enterprise to continue to do well, but the business culture begins to change. The emphasis of management is structure, policies, procedures and most important, profitability. Therefore, the business reaches the next challenge: The maturing enterprise now requires a management structure or governance to create checks and balances and to ensure that the management focus does not become too powerful and overwhelm the entrepreneurship necessary to create rapid growth and access new markets.

Businesses in emerging industries go through these three stages characterized by vision, management, and governance. Upon developing into an institutionalized company with appropriate governance structures, the business encounters a new set of challenges that are common to all industries:

” How does the business preserve its vision?

” How does it balance growth, risk, and profitability?

” How does it establish a governance system that holds management accountable without undermining its independence and flexibility?


This business development cycle described above is common amongst successful businesses. The cycle itself raises the issue of what to focus on when attempting to select a business idea to take part in a program such as the TKMPK. The real danger for those involved in selection activities is that of selecting entrepreneurial qualities over managerial skills. This may thereby condemn the business to uneven growth, poor management and ultimate failure, as the enterprise does not respond adequately to new market and trading conditions. A further danger is attempting to select people over ideas.

The focus of any predicative element in the selection process, therefore, needs to be on a balance of both entrepreneurial and managerial qualities. And the major determinant in selecting a participant for business management training must remain the business idea itself.