Monday, January 27, 2020

Doing Business In Latin America

Doing Business In Latin America Introduction Todays world is ever changing. National borders are becoming less important in times of global capital movements, cross-border migration and highly interwoven transnational trade relationships. Globalisation is since the 1990 and the collapse of the bipolar world a well-known phenomenon and it is beyond question that nation states will have to adjust to its influences in the long run. The governmental response has so far been the creation of international free trade agreements and multilateral institutions like the WTO for instance, which are to oversee global trade systems and which also have as their task the liberalization of markets around the world. Advocates of trade liberalization claim that the eradication of trade barriers ultimately leads to an increase in a countries overall wealth, whereas more leftist opponents stress that free trade predominantly benefits multinational corporations and the corporate ruling class. As a matter of fact, States themselves or Governments do not trade. Consequentially, companies and corporation are most likely to benefit from free trade Areas and investment opportunities abroad. However, doing business in third countries underlies varying circumstances. Taxation, environmental regulations, labour standards and investment regulations are factors of production that vary from country to country. For businesses in order to make use of comparative advantages, it is therefore essential to know about the differences between countries in terms of the local business climate. This paper aims at unfolding those differences for three Latin American countries: Mexico, Belize and Cuba. Furthermore, this paper shall function as a guide to companies who are interested in doing business in the Latino Americas and especially in one of the three countries mentioned above. The paper starts with a general economic introduction of the countries in concern. For this purpose, economic data will be analysed. Then in the second part, the document will focus on unravelling differences in terms of business climate and investment opportunities. Lastly, a conclusion will be drawn. 2.0 Introduction to Mexico Mexico lies at the bottom of Central America, bordering the Caribbean Sea and the Gulf of Mexico, between Belize and the United States and bordering the North Pacific Ocean, between Guatemala and the United States. It has a population of about 112 million inhabitants. From 1930 to 1970, although starting from a low baseline, Mexico experienced tremendous economic growth. Achievement historians call it El Milagro Mexicano or The Mexican Economic Miracle. The annual economic growth of Mexico hit an average of 3% to 4% during this period, with an estimated annual rate of inflation of 3%. It was not really a miracle however; it was actually a result of the government policy. The policy put an emphasis on primary education which increased the enrollment rate between 1929 and 1949 by 300%. The policy also imposed high tariffs on imported domestic goods, and lastly, the policy publicly invested in agriculture, energy and transportation infrastructure. From the 1940s, foreign immigration into Mexicos cities expanded the countrys urban population. Despite the falling foreign investment of the Great Depression during that period, the economy grew. The assumption of mineral rights and the subsequent nationalization of the oil industry into Pemex during the p residency of Là ¡zaro Cà ¡rdenas del Rà ­o was a widely accepted move. On 1 January 1994, Mexico became a full member of the North American Free Trade Agreement (NAFTA), joining the United States of America and Canada. In 2005, North American economic integration was further strengthened by the signing of the Security and Prosperity Partnership of North America. Mexico has a free market economy that recently entered the trillion-dollar class. It contains a mixture of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in sea ports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is one-quarter that of the United States; income distribution remains highly unequal. Trade with the United States and Canada has tripled since the implementation of NAFTA. Mexico has free-trade agreements with more than 40 countries, governing 90% of its foreign commerce. 2.1 State of the Mexican Economy As mentioned before, Mexico has a free market economy in the trillion dollar class. It contains a blend of modern and outmoded industry and agriculture, increasingly dominated by the private sector. Recent administrations have expanded competition in seaports, railroads, telecommunications, electricity generation, natural gas distribution, and airports. Per capita income is roughly one-third that of the US; income distribution remains highly unequal. Trade with the US and Canada has nearly tripled since the implementation of NAFTA in 1994. Mexico has free trade agreements with over 50 countries including, Guatemala, Honduras, El Salvador, the European Free Trade Area, and Japan, putting more than 90% of trade under free trade agreements. In 2007, during its first year in office, the Felipe Calderon administration was able to garner support from the opposition to successfully pass pension and fiscal reforms. The administration passed an energy reform measure in 2008, and another fiscal reform in 2009. Mexicos GDP plunged 6.5% in 2009 as world demand for exports dropped and asset prices tumbled, but GDP is expected to post positive growth late in 2010. The administration continues to face many economic challenges, including improving the public education system, upgrading infrastructure, modernizing labor laws, and fostering private investment in the energy sector. Calderon has stated that his top economic priorities remain reducing poverty and creating jobs. 2.2 Doing business in Mexico In 2004 Mexicos securities market was a tiny fraction of what might be expected for an economy of its size. And while Latin America received 9% of global private equity flows, Mexico, with more than a third of the regions income, received only a tenth of that. More companies were delisting rather than issuing new shares on the Mexican stock exchange. It was time for reform. Mexico overhauled its securities laws, with useful input from stakeholders. A new law attacked self-dealing, a major problem in the country, to better protect investors. Mexico also extended corporate governance obligations to subsidiaries. In addition, listed companies were required to set up committees of independent directors. Changes in the law were enacted to help protect investors and boost their confidence in Mexican markets. Although Mexicos economy took a plunge during the 1996 recession, the worst has passed and Mexicos economy is headed towards a recovery. Mexicos economy depends a lot on the United States; it derives a great deal of income and stability from the United States. When purchases, tourism, hiring, and investment from the United States declines, Mexicos economy declines. If the United States continues to suffer from unemployment, tight credit, and general market instability, Mexico will suffer from the same. If unemployment in the United States soars to 10%, Mexicos unemployment will equally increase to follow suit. A simple solution would of course to break away from the dependence on the American economy but it would not be viable. The American economy is a strong one and instead of breaking away from it, Mexico should instead attract investors from other regions of the world (such as the European Union), so that their economy would not be so tightly tied to just one economy. 4.0 Introduction to Cuba Cuba, an island country, is located in the Gulf of Mexico. Cuba has a population of about 11 million inhabitants, most of them living in the cities of Havana, the nations capital, and Santiago de Cuba. The official language is Spanish. Cuba, like Mexico and most of the Latin American countries, has formerly been a Spanish colony, but managed to gain independence in 1902. In the 1950s the world famous Cuban revolution took place, which changed the political system in Cuba towards a regime based on communist socialism. Fidel Castro, Cubas dictator had close ties to the Soviet Union, which was at the same time the countries mayor trade partner and financial contributor. During the Cold war, Cuba took side of its communist allies and became center of public attention, as Soviet nuclear weapons were placed on Cuban territory during the 60s and the U.S felt threatened by this behaviour. It was due to this incidence that the U.S. imposed a trade embargo on Cuba, which exists in some form up till today. Since the breakdown of the UDSSR, Cuba lost its greatest ally and exports and financial support fell drastically. By now, Fidel Castro who led the Regime for 50 years has been replaced through his brother Raà ºl due to bad health conditions. Rà ¡ul Castro is likely to impose economical and political reforms in the near future in order to open up Cubas economy to investment and international trade. In addition to the world wide economic recession, Cuba suffered in 2008 severe damage due to Hurricanes Ike and Gustav. The Economist estimated the damage to lie around 10 billion US$, an amount that is hard to bear for a country that weak in terms of productivity and economic stability (The Economist, 2008). 4.1 The state of the Cuban Economy Socialism and poor governance have, over the years, hemmed economic development substantially. The countrys annual GDP is with 50 bn comparatively small and close to the poorest 25 % of the worlds countries. Cubas GDP has experienced an unstable development during the last decade (U.S. Department of State, 2010) [3.2 % growth in 2002, 1.4 % in 2001, 3.8 % in 2003, 5.8 % in 2004, 11.2 % in 2005, 12.1 % in 2006, 7.3% in 2007, 4.1 % in 2008, 1.3 % in 2009]. The decline in GDP growth during 2008 and 2007 can be ascribed to the global economic recession and it is apparent that the Cuban economy has been severely hit. According to the an article published by the Guardian, Cuba faces a long, hot summer of discontent. Virtually every key economic indicator is moving in the wrong direction as the global economic slowdown is excerbating deficiencies long been apparent in Cubas economic management (The Guardian, 2009). Cubas GDP per Capita was 4, 450 US$ per year and therewith around 10 times smaller then the capita GDP in the United States. The average monthly salary amounts to 18 $ which would mean that the average Cuban would live of 50 cents a day. As a consequence of this low income, Cubans are obliged to scrimp and hustle on the black market even when things are going relatively well (The Guardian, 2009). However, due to Cubans social policy, citizens receive free food vouchers and other governmental support. About 60 % Cubas labor force, which covers 5 million people, work in the services sector, with tourism being the largest part. The rest of the Cuban workers are either employed within the agricultural sector or the industry with the latter only producing light industrial goods. . The unemployment rate is with 1.7 % considerably low and is in fact the 9th lowest in the world. This , however, cannot be taken as a reliable figure as the socialist government tries to hide away unemployment through public occupation campaigns. The public dept in 2009 amounted to 35 %, according to the CIAs World Fact book (CIA, 2009). Moreover, the industrial production growth rate is declining (-1 % in 2009). Cubas main export partners are China (25 %), Canada (20%), Spain (6%) and the Netherlands (4.53%), importing primarily sugar, nickel, tobacco, fish, medical products, citrus and coffee. The value of Cubas exports in 2009 was 2.458 billion U.S. $. With imports in comparison being 4 times higher, Cuba runs a steeply negative trade balance. According to the World Fact Book, Cuba mainly imports food, machinery and equipment and chemicals. Summing up, the Cuban economy finds itself in a critical situation and economic reform are utterly necessary to guarantee stable economic growth. Unfortunately, data about Cuba from this years competitiveness index cant be presented here, since neither the World Economic Forum nor the IMF process the Cuban case. 4.2 Doing business in Cuba Since Canada is one of Cubas main trade partners, the Canadian Foreign Ministry releases information on the Cuban business climate as well as import regulations. For U.S. companies, doing business in Cuba is even more complicated as the international relationship still suffers from the trade embargo of the 1960s. Firstly, it turns out that importing can only be undertaken by Cuban government entities and joint ventures holding permits for the specific goods in question. Certain Agents and intermediaries are allowed to handle certain goods, but due to the political regime, these persons are not allowed to import on their own (Government of Canada, 2009). Furthermore, to obtain import licences, Canadian businesses will most likely see themselves forced to cooperate with Cuban partners first before any governmental approval will be issued. For about 4.500 products and commodities Cuba applies its MFN tariff, which is 10.4%. However, for some well protected commodities, Cuba applies a 30 % import tariff. According to the Canadian Government, Entities with foreign partners may be granted duty free status for some or all of those products as part of their economic association or joint venture agreement (2009). Mostly, this clause applies to members of the Latin American Integration Association (ALADI) in which Canada is not taking part. Canadian exporters are obliged to hire Cuban custom brokers for the carrying out of custom formalities. Moreover, it is essential to fully comply with all regulation and elaborate documentation is furthermore of great importance. According to the Canadian Government, Seemingly minor discrepancies can lead to confiscation of improperly imported goods. Although compliance with these regulations is technically the responsibility of the importer or the agent handling consignment shipments, careful documentation on the part of the shipper will reduce errors and delays (2009). Also, exporters have to comply with labelling, sanitary, phytosanitary and product safety standarts. What is more, due to Cuban investment law, foreign companies will find it difficult to set up representative offices and subsidiaries in Cuba since they are expected to establish a substantial trade relationship with Cuba for at least three years, before being allowed to establisha presence in Cuban national territory (Canadian Government, 2009). Regardless of these restrictions, consignment sales sales in which goods cross the border and are still considered to be owned by the exporter are possible as long as they are covered by a contract for sales of merchandise imported on consignment. Summing up, one can see that doing Business in Cuba is complicated in most of the instances we have addressed here. The Cuban government has to restructure its economy and especially open it up for foreign investment since foreign investment is one crucial factor for economic growth of a country.

Sunday, January 19, 2020

Ethics Article Review Essay

This paper seeks to prepare a review of an article discussing ethics in accounting and financial decision making by making a brief summary, relating to assigned reading for the week, relating and applying the concepts to current or former employer’s organization, making improvement for the organization using the article as basis and explaining the importance of ethics in accounting and financial decision making. A description of the 2002 Sarbanes-Oxley act will also be discussed including its impact on accounting and financial decision making. 2. Discussions 2. a. Brief Summary The article is talking about the importance of ethics in accounting and business. To dramatize its significance in business, it has cited a story of a number of rich people who may have attained their financial rewards in business but ended dying in less meaningful ways impliedly because of missing the principles of ethics. While the article admits that earning money or attaining riches may be an acceptable goal in business, there is still the question of how success in measured in the final analysis and for which the authors were arguing for riches acquired with honor and if a choice would be made between the two, it would be more preferable to have honor rather riches (Smith and Smith, 2003) . 2. b. Relating to assigned readings As to how the article relate to assigned readings for this week, it may be argued that the article has touched on the importance of rules or guides to actions in business. Ethics in business may be asserted to be indispensable if business will have to attain its goals in harmony with other goals of society such as those in economics and politics. 2. c. Application of article to organization As to how the ethical concepts discussed on the article may apply to this researcher’s former or current organization, it may be argued that the universality of principles related to ethics would really make it difficult to exclude this researcher’s organization from any of its application.. Since my organization is part of the larger society where everybody else lives, it cannot isolate itself from the community by doing unethical things. It cannot even argue that any illegal or unethical thing that it may do will not matter in a world where there many players who may be affected by decisions made. In the same way that a member of society can make a difference for the good of the community so with the failure of one organization or even a person in the organization can do to the detriments of many if not all of the members of the community. 2. d. Recommendations for improvement of the organization To make recommendations for improvement on this researcher’s or organization using the article as basis, the organization should encourage simple living among its executives so that they could be more disciplined in the way the company’s resources are being managed not only for the stockholders but even to every stakeholders who stand to benefits from the observance of ethical conduct in the organization. The other stakeholders of course include the employees who aspire for long-term employment (Sears, 2003), the creditors and lenders who resources need to be protected as well, customers who need to have their needs and wants for company’s products and services continuously satisfied and the government who must continue ensuring payment of taxes and compliance with regulations. 2. e. The importance of ethics in accounting and financial decision making and how the 2002 Sarbanes-Oxley Act affects the same The important of ethics in accounting and financial decision making cannot be underestimated. Without ethics there would be no responsibility for right or wrong act can be demanded from people making decisions. The managers who are considered agents of stockholders would instead enrich themselves at the expense of stockholders investments. On the other hand, these stockholders would just exploit whatever they can to the detriment of their principal, this time their debt capital providers. The organization can likewise treat its employees with disrespect and violate the latter’s if there in no ethics that would guide them. Laws will be insufficient to exact compliance if people in the organization were not instilled the proper values when they were still young in the same way that it is hard to teach tricks to an old dog. The Sarbanes-Oxley Act of 2002 is a classic example to legislate rules of conduct that would improve corporate governance (Ali, et. al, 2006) including a more strict compliance of requirements in regulating companies in terms of financial statements and ensuring of ethical conduct of external auditors (Bainbridge, 2007). Although the law is a positive act to ethical practice of doing business, the choice to do what is right is still with decision makers who must have the right sense of values for society. 3. Conclusion: Ethics has a purpose to attain. It is a part of an organization’s life since it is a guide to decision making not only in accounting and finance but even to all other aspect of business operations. A sense or rightness or wrongness offers a choice and that which is good is incidentally consistent with ethics. As the world seems to be painting what are the standards of its success when actually they are not the real and lasting ones, ethics its and principles have much to offer in making the correct decision that will lead real and lasting success for human existence. The article has argued that honor is preferable than riches but riches need not be inconsistent with riches as long as they are ethically acquired. References: Ali, et. al (2006) International Corporate Governance After Sarbanes-Oxley, John Wiley and Sons Bainbridge (2007), The Complete Guide to Sarbanes-Oxley: Understanding How Sarbanes-Oxley Affects Your Business; Adams Media Sears (2003) Successful Talent Strategies: Achieving Superior Business Results Through Market-focused Staffing, AMACOM Div American Mgmt Association. Smith and Smith (2003) Business and Accounting Ethics, {www document} URL, http://acct. tamu. edu/smith/ethics/ethics. htmAccessed September 29,2008

Saturday, January 11, 2020

Antigone Study Guide

Antigone Study Guide 1) Antigone – Daughter of Oedipus, very forward, she goes out to bury her brother even though it was breaking the law of King Creon and gets caught for it and killed, also betrothed to Haemon. Ismene – Another daughter of Oedipus, timid, doesn’t want to disobey Creon. Ismene gets up to speak her mind for her sister when Antigone is faced with the crime of moving their brother body. King Creon – Brother of Jocasta (whom committed suicide. ) Was a captain/general of army and the next ruler of Thebes, very righteous, wants to be obeyed by everyone or results in death for them. Haemon – Son of Creon, betrothed to Antigone, and has a romantic relationship with her. Haemon get very angry when he finds out about the loss of his bride and then kills himself and dies holding her dead body. Tiresias – A seer, comes to Creon and tells him that he needs to release Antigone or more people will die and he will be in a very sorrowful position, Creon doesn’t head his words in enough time and ends up in despair. Eurydice – Wife of Creon; kills herself with a sharp dagger to the heart when she finds out about the death of her son Haemon. A Sentinel – Just informs Creon of happenings around Thebes; and helps him to find Antigone when they are looking for the law breaker. 2) The dramatic effect to show how all of the rest of their family have horribly perished by murder or their own hands, kind of foreshadowing what will happen to these last two children. Ismene’s view of the difference between men and women is that women are born women they aren’t meant to rule they are to be below men, and to be obedient. 3) She will lay with him for as long as needed no matter what. â€Å"The powers of earth will not be as good as the powers of the Gods. She willingly to do anything for her dead brother to bury him, â€Å"do holy things criminally,† is an oxymoron because holy is meant be good and righteous but doing it criminally which is a ‘conflict of values’ between good, holy and bad, criminal. 4) There is a law set by Creon not to bury or touch the body of Antigone’s dead brothe r, but Antigone wants to bury him no matter at what cost. People today want things that are illegal for them to do, for example, when a divorced parent kidnaps their own child from the custodial parent, law says it’s not their child but they do anything for their child they love. ) The Chorus is a group of Thesbian Senators; the use of emotion pulled the reader into the writing and the amazing flow with writing rhyming and tempo made it easy to get more absorbed in the passage, feeling how people listening to this play would feel. 6) He is apologetic for all the trouble people had while they were ruled by Oedipus, uses the comparison to a ship and stormy seas again, tells them they can get a secure footing now. He says that death awaits anyone that goes against him or touches that body. Their beliefs are similar because they are both out for love of something and are not letting anyone get in their way. ) The 1 Senator, suggested, â€Å"This must be something more than natur al,† as to say that it could be something out of the ordinary and abstract. We see that the body is sprinkled with a dust given a ritual then buried, and that disappearing bodies was just crazy. 8) He is describing sin and temptation when he says that it ruins cities, removes/runs men out from their families and homes, leads them on the wrong path, and sets humans on not righteous actions the gods want but just what a human wants and their instincts. 9) He acts a little amazed, then asks her if she will admit to it or not. He questions her without much other conversation and with the answers Antigone gives, Creon gets more angry seeing that she sees him as not high enough rank, and that she will only listen to laws made by the gods, and Creon does not want to be ordered around by a women. 10) I feel that Antigone choice was a foolish religious zealotry. There were laws set by her ruler and she disobeyed them because she felt like only laws created by gods truly mattered, and that disobeying a ruler would have no effect or punishment for her with anyone but Creon. 1) Ismene wants to die with her sister, she does not want to watch her sister die then have to live without her. Even though she was timid and didn’t actually breath the law and touch the body or be involved in its transportation. She tells Creon she was involved and become defiant and stiff wanting what she wants. 12) They tell how the history of family continues down the whole line and one mistake will ruin their heirs forever. They a lso say how much wrong Antigone’s family has created and all after them of their children will be damned as well. The sickle murderous, of the rulers of the dead, and the wild words beyond control, and the frenzy of her own soul, again mow down the shoot. † Explains of what all her family had done and that it needs to end. 13) Haemon goes from simply agreeing with his father to questioning Ceron’s right to do this to his betrothed. Then the two start to quarrel over Creon believing Haemon is following a women rather than him, when he is really just bringing up logical questions. Haemon is just trying to prove that it wasn’t trying to go against Creon’s law when she took her brother, but was just looking out for him because she loved her brother. 14) He changes it so that the blood of her death cannot be traced back to anyone, when she dies alone in a cave with some food provisions. Also to symbolizes that the dead should not be disturbed to be buried like she attempted to do with her brother, and to prove that she is, â€Å"A lost labour to revere the dead. † 15) We see a sad side of Antigone, were she says it will be her last time seeing light and she never had a wedding or a wedding song. The chorus kind of says, ‘be happy, don’t be sad, you did not go to the grave with a plague, or stabbed with a sword, you’re going to the grave alive! ’ 16) When Creon sees Tiresias, Tiresias asks him if he will follow what he says, Creon says he always does, but Tiresias start to scare Creon when he starts to speak. That adds to the dramatic effect, wanting to know what Tiresias will say. He says that it was right to bury the body and that no one should be punished for it. Also that if she isn’t released there will be more deaths then just Antigone’s. 7) Initially Creon is surprised and does not want to do what Tiresias is suggesting. It follows his character and his not wanted to be wrong and his want for power. Creon learns that the laws of the gods are more important than his own, even though he doesn’t want to accept it. 18) Creon went to check for the voice of his son Haemon in the cave before opening the cave, to release Antigone . Doing so caused the deaths of, Haemon, Polynices, and Antigone. If Creon had saved Antigone first it would have most likely saved Haemon when he saw his betrothed. Doing what Creon did proves how much his pride comes before anyone else. 19) Antigone – Hung herself with linen rope in the grave where she was left to die. Haemon – Stabbed himself through the chest with a sword after seeing Antigone’s dead body and holding her in his arms. Eurydice – Dead at the altar of Creon’s house, slain dead with a sharp edged dagger to her hear with her own hands. Polynices – Found dead at the top of a hill, on the hillside with wild dogs all around him taking their shares. 20) Creon learns that by condemning others he condemned his family and they ll tragically saw their fate because he couldn’t let Antigone burry her brother, that many more people close to Creon died. 21) Antigone is a ‘Tragic Figure’ because she dies in the story and makes the audience feel bad for her because she was punished severely for trying to do right by her brother and bury him. While King Creon is the true ‘Tragic Hero’ because he sees his wrong after pride and power set him off course and down the wrong path, and after he saw the light, it was too late to fix what had already begun, and many more people died when no one had to suffer or die at all.

Friday, January 3, 2020

A Brief Look at Abortion - 823 Words

Have you ever heard of the word abortion at all? Abortion is a very diverse topic in our world today, especially in the United States. Many people do not know what abortion really means. Abortion is when a woman purposely terminates, or kills, her pregnancy, most often during the first 28 weeks after conception (Google). While some some people know this, still others are not aware of why someone would choose to have an abortion. Many people may think rape is the highest cause women have abortions. But, what they do not know, is less than 1% of women have an abortion after being raped (Abortions in America). The two major reasons women have abortions are because of poor finances and responsibility. Both reasons are 21% of all the explanations women give when they are having an abortion (Abortions in America). 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