Thursday, December 26, 2019

Option Contracts - Free Essay Example

Sample details Pages: 5 Words: 1493 Downloads: 10 Date added: 2017/06/26 Category Law Essay Type Essay any type Tags: Contract Law Essay India Essay Did you like this example? Subject à ¢Ã¢â€š ¬Ã¢â‚¬Å" Company law 1 Option Contracts -An analysis of position in India Background Put and call options are one of the preferred mechanisms for investors in India, both foreign and domestic, and in different type of transactions like joint venture, stock market, etc. In lay manà ¢Ã¢â€š ¬Ã¢â€ž ¢s term a put option enjoyed by A against B gives A an option to sell certain securities at a future date at some specified price. Whereas a call option enjoyed by A against B gives A an option to compel B to sell the specified securities at a specified date and for a specified price. Don’t waste time! Our writers will create an original "Option Contracts" essay for you Create order These options are founded in commercial practicalities. In some cases the promoter has call options by which he can buy out the investors. The investment carries certain pre emptive rights as well like Right to First Refusal, Drag Along Rights, etc. This is a standard that is practiced internationally, even in India though not expressly. The recent changes by regularity authorities like RBI, SEBI and Judiciary has made the position of investors very turbulent in India. Section 2(d) of the Securities Contract (Regulation) Act, 1956 defines à ¢Ã¢â€š ¬Ã…“options in securitiesà ¢Ã¢â€š ¬Ã‚  as a purchase or sell of a right to buy or sell securities in the future. The judiciary has upheld that options are not obligation but a right. Section 20 of the Securities Contract (Regulation) Act, 1956 (SCRA) had prohibited options upon securities. A 1995 amendment[1] had deleted the concerned provision, but still the air of ambiguity regarding option contracts wasnà ¢Ã¢â€š ¬Ã¢â€ž ¢t clear as a March 1, 2000 circular of SEBI[2] had prohibited the use of option contracts. If both the amendment and circular is read together it is logically deducible that option contracts are only valid till they are (a) spot delivery contracts; (b) hand delivery; (c) contracts for cash; (d) special delivery and (e) contracts for derivatives permissible under the SCRA or the SEBI 1992 rules.[3] Since the Amendment is still in force along with the circular by SEBI in 2000 that clarified ità ¢Ã¢â€š ¬Ã¢â€ž ¢s position related to prohibition on option contracts, there exists an contradiction between the 1995 amendment of SCRA and 2000 circular of SEBI. CURRENT SITUATION The SEBI by a recent 2013[4] circular has agreed to include clauses related to pre emptive rights, right of first offer, tag-along right, drag-along right and call and put options, when contained in shareholders agreements, as valid contracts, for the purpose of the SCRA. Some judicial decisions that lead to the str ategic acceptance of option contracts by SEBI has been enumerated below : In 2005 the Bombay High Court[5] dealing with the buy-back clause in a share agreement held that such a contract would not be valid under SCRA as it is not a spot delivery contract. In 2011, SEBI issued an informal guidance[6] that an agreed purchase of shares of a listed company through call or put options of a listed company is invalid, since it does not constitute a spot delivery. The contract was held not to be a derivative under SCRA as it was not a contract traded in stock exchange but settled on clearing house of a stock exchange. In 2012 Bombay High Court[7], dealing with the options of purchase or sell between parties, held that the options are mere privileges of option holder and a concluded contract would only come into existence when an option holder actually enforces the option. The appeal filed by SEBI was disposed off by the Supreme Court on grounds of mutual consent filed by parties. All this led to a deadlock which was cleared atlast by SEBI which by its 2013 circular enhanced the scope of option contracts under the SCRA. The notification clarifies that the contracts now included under SCRA shall be in accordance with the extant exchange control laws of India and that the changes shall not affect the validity of any contract entered prior to the notification. ANALYSIS Clearing the ambiguity and removing the deadlock Prior to the notification there was a lot of ambiguity related to the validity of option contracts. Two views existed, with one advocating that they were invalid as they were neither spot delivery contracts nor were they derivatives traded in the stock market as enumerated in Vulcan Engineers Case[8] and the other view advocating the validity of option contracts based on MCX[9] case judgement that advocated that such contracts were rights vested in the option holder and not a concluded contract. By including contracts for purchase or sale of securities pursuant to exercise of an option, SEBI has put to rest a long standing debate. Adding Some more Confusion While the validity of such contracts is settled by the circular, more confusion seems to be have had been added with respect to the enforcement of such contracts. As per the MCX judgement the option contract would become a contract only on exercise, hence to be settled as a spot delivery contract. However by including spot delivery and pre emptive contracts as a different class of contracts, the settlement of contracts is under ambiguity. Also as the above two contracts have been included in class of permitted contracts, there is ambiguity whether they can be traded as market securities. For example if a shareholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s agreement contains mere call option, could the right be traded by option holder. Controlling Speculation By legalising the concept of option contract, for the validity and enforceability of contracts the selling party is required to own the securities for a minimum period of one year. Also, the contract for such sale and purchase pursuant to the exercise of an option must be by actual delivery of the underlying securities. The intent behind this clause was to prevent any speculative transactions among the parties, which was the intent behind the introduction of SCRA. Existing Contracts The circular of 2013 expressly states that the contracts entered before the circular will not be affected by the change, hence the validity and enforceability of such contracts still remains questionable. The only option the affected parties are left with in order to continue their contract is by re entering the contract on a date after the circular came into force. RBI Perspective Though SEBI has permitted options in shareholders agreements, the same have been subjected to the extant exchange control regulations. RBI has often been uncomfortable with such contracts in shareholders agreements since it views these contracts as more in the nature of debt as opposed to equity, thereby defeating the spirit of the foreign direct investment policy. The RBI has even issued various show cause notices for removal of such provisions. Unless RBI issues a notification permitting options in shareholders agreements, these options in cross border deals might still remain questionable.[10] CONCLUSION The issue of the validity of call and put options has been debated frequently. SEBI has earlier held options to be invalid in Vulcan Engineering, and recently, has even asked parties to remove put options from their agreements, as in the recent case of Vedanta Resources Plcs acquisition of Cairn India Limited. Hence the Notification is a welcome move and will bring great r elief to the domestic investors, at least. Having said that, the call and put options are subject to extant exchange control regulations. RBI has been holding such options invalid on 2 counts. First, that they were not valid contracts under SCRA, and second, that they were in the nature of debt. By way of the Notification, the first of the two issues have been addressed. To that extent, since put options is more pertinent to the second objection- it remains to be seen whether call option would now be permitted. It seems that SEBI may have consulted with the RBI before coming out with the Notification, and it is expected that RBI may soon permit options and preemptive rights from an exchange control perspective, thereby clarifying the issue in relation to these contracts. Therefore to conclude we can say that the recent circular has on one hand cleared years long ambiguity in one hand by expressly validating option contracts but on the other hand has also created confusion ove r validity of such contracts entered earlier than the circular. This leaves interested latter parties with the only option of re entering contracts. [1] Available at https://www.sebi.gov.in/acts/contractact.pdf [2] Notification S.O. 184 (E) dated March 1, 2000 [3] Ankit Guha, Are Option Contracts Enforceable, available at https://www.legallyindia.com/20090831159/Legal-opinions/are-option-clauses-actually-enforcable. [4] The Notification No. LAD-NRO/GN/2013-14/26/6667 dated October 3, 2013 availableat www.sebi.gov.in [5] Niskalp Investments and Trading Co. Ltd. vs. Hinduja TMT Ltd. [[2008] 143 Comp Cas 204 (Bom)] [6] SEBI Informal Guidance in the matter of Vulcan Engineers Limited dated May 23, 2011 availablehere https://www.sebi.gov.in/takeover/vulcanlof.pdf [7] MCX Stock Exchange Limited vs. SEBI, 2012 (114) BomLR 1002 [8] in the matter of Vulcan Engineers Limited dated May 23, 2011 availablehere https://www.sebi.gov.in/takeover/vulcanlof.pdf [9] MCX Stock Exchange Limited vs. SEBI, 2012 (114) BomLR 1002 [10] Nishith Desai Associates, SEBI Permits options and Pre emptive Agreements, available at ht tps://www.mondaq.com/india/x/270684/Shareholders/SEBI+Permits+Options+And+Preemptive+Rights+Arrangements

Wednesday, December 18, 2019

Essay about Medical Marijuana Should Be Legal - 936 Words

Is it possible for an illegal drug to be deemed legal for medical purposes? Well for an illegal drug like marijuana, that is the question. There are currently many people who use marijuana legally to suppress their illness. Marijuana should be allowed for medicinal purposes. But one of the arguments is that there are alternatives to using marijuana such as medications that come in pills, solutions, shots, or drops. There is no prescribed drug today that is smoked. Another concern is that marijuana is illegal is the United States. Making it a medicine would require a change in the current law which would have to be voted on by Congress. The biggest and most important argument against marijuana is the negative effects it could have on a†¦show more content†¦The end result is blindness. Smoking marijuana relieves this pressure that builds up. In one -3- study, a woman with glaucoma was given a conventional glaucoma prescription drug and marijuana. By using both these things, the woman reduced the dangerous pressure that had built up in her eyes(Zeese and Ruzzamenti 23). But does this mean that a person has to get high so they don’t go blind? Researcher Paul Palmberg states that a person develops a tolerance to the drug so that the patient doesn’t get high but still gets relief(Zeese and Ruzzamenti 23). Marijuana helps with nausea, weight loss, and glaucoma, but what else does it do? Marijuana has been proven to help in the fight and cure of neurological diseases and disorders. Toxicologist Paul Consroe believes that THC in marijuana may help tone down the spasms that people suffer with Huntington’s disease, spinal cord injuries and other disorders. His studies show that specialized proteins that serve as docks for THC, are in regions of the brain known to play a role in movement disorders. These receptors also bind to anandamide, a marijuana-like substance manufactured by the body. In a 1986 study, Consroe showed that cannabidiol, a component of marijuana, calmed the abnormal movements of five people suffering from dystonia, a condition that makes muscle spasms that contort the body(â€Å"Marijuana as Medicineâ€Å"). -4- Robert Randall is one of the patients whoShow MoreRelatedMedical Marijuana Should Be Legal904 Words   |  4 PagesMedical Marijuana Although marijuana is illegal and lacks FDA approval it should be used to treat cancer. Opponents of medical marijuana argue that it is too dangerous to use, lacks FDA approval, and that various legal drugs make marijuana use unnecessary. They believe marijuana is addictive, leads to harder drug use, and injures the lungs, immune system, and brain. They also believe that medical marijuana is a front for drug legalization and recreational use. Benefit that it is isn’t a great treatmentRead MoreShould Medical Marijuana Be Legal?1249 Words   |  5 PagesMarch 1, 2017 Medical Marijuana Informative Unless you ve been living under a rock, you have probably at some point in the last few years had a conversation with a friend or family member regarding medical marijuana. Although it is considered a controversial topic, in recent months it has been gaining approval by the public. But it does not come without opposition and arguments. Medical marijuana is a complex subject and still requires more education for the public, the medical community, and theRead MoreMedical Marijuana Should Be Legal1651 Words   |  7 Pagesmost commonly referred to as marijuana. Medical marijuana refers to the use of cannabis and its cannabinoids to treat disease or improve symptoms (Wikipedia.com). Cannabis contains two active ingredients inside called cannabinoids (CBD) along with the delta-g-tetrahydrocannabinol (THC). The medicinal and psychoactive effects that personally associate with marijuana are caused by unique structures of cannabinoids. In addition, the major psychoactive ingredient in marij uana is THC, which additionallyRead MoreMedical Marijuana Should Be Legal1477 Words   |  6 Pagesacross the nation believe that medical marijuana can provide a variety of benefits ranging from pain relief to increasing appetite. Others won’t provide the drug to patients until more significant evidence is presented. The drug has been a topic of debate for many years, but one thing that researchers can always count on is a growing library of testimonials from patients who have legally experimented with the drug to manage their conditions. As it stands, marijuana has had a different impact in eachRead MoreShould Medical Marijuana Be Legal?1778 Words   |  8 Pagesusing medical marijuana for chronic pain outweigh the risks? Medical Marijuana is a topic we have all heard a couple of times in the past years. It has been a debatable topic since there seems to be a lot of opinions on what should be and shouldn’t be legal. Some say its benefits outweigh anything else, and some others state that there is a hazard involved with this drug. There are studies on both sides of the question that demonstrate what appear to be clear benefits for medical marijuana, asRead MoreMedical Marijuana Should Be Legal1545 Words   |  7 Pagesmedicinal utility of marijuana. However, the federal government opposes passing legislation that would legalize medical marijuana because of its potential to be abused or unregulated. The states are continuously challenging the federal government causing complications in legislation in regards to medical marijuana. Because of its history of medicinal properties and accumulating amounts of state and local legislation, the federal government should decriminalize medical marijuana an d legalize its useRead MoreMedical Marijuana Should Be Legal1053 Words   |  5 PagesMedical marijuana, also called cannabis, is used in some places as a medication to treat diseases and symptoms. Many people consider it helpful and harmless making it the most used illicit drug in North America. With legalizing medical marijuana people can alleviate some health problems and help ease physical pain, but it also can bring many concerns, questions, and responsibility. Legalizing cannabis can help many people with their health conditions. There are some advantages to taking medicalRead MoreShould Medical Marijuana Be Legal?1591 Words   |  7 Pagesdebated topic on marijuana legalization is widely argued. Whether it’s for medical or recreational usages, this topic is reaching boiling point. The complicity on the legalities of marijuana has reached a point in society where legal usage has been popping up across the country. In the medical sector, studies have shown benefits, and harmful effects in patients. Some physicians support, however some physicians do see health concerns that influence their stance on whether medical marijuana laws are toRead MoreMedical Marijuana Should Be Legal897 Words   |  4 PagesMedical Cannabis Weed Cannabis, also known as Marijuana has many effects to it. In recent years officials have decided that it should be used for medical usage. They have found out that it helps many medical conditions. Medical cannabis has many things that could cure. Studies has shown that it slows the response time in the synapses in the brain it helps the brain heal. For example if someone was in a bad wreck it allows the brain to eventually heal. Because it is unlike other prescribed drugs weedRead MoreMedical Marijuana Should Be Legal860 Words   |  4 Pagesthat medical marijuana might be useful in reducing this pressure. Marijuana has also became a common sight in the medicine cabinets of patients suffering from HIV/AIDS and many different forms of cancer. Cannabis consumptions has been known for its ability to stimulate appetite commonly referred to as â€Å"getting the munchies.† Medical marijuana can successfully benefit its patients with HIV or cancer by helping generate an appetite through the use of plant. Researchers have shown that medical cannabis

Monday, December 9, 2019

Gothic Age Essay Example For Students

Gothic Age Essay For nearly four hundred years Gothic style dominated the architecture of Western Europe. It originated in northern France in the twelfth century, and spread rapidly across England and the Continent, invading the old Viking empire of Scandinavia. It confronted the Byzantine provinces of Central Europe and even made appearances in the near East and the Americas. Gothic architects designed town halls, royal palaces, courthouses, and hospitals. They fortified cities and castles to defend lands against invasion. But it was in the service of the church, the most prolific builder of the Middle Ages, that the Gothic tyle got its most meaningful expression, providing the widest scope for the development of architectural ideas. 1 Although by 1400 Gothic had become the universal style of building in the Western world, its creative heartland was in northern France in an area stretching from the royal domain around Paris, including Saint-Denis and Chartres, to the region of the Champagne in the east and southward to Bourges. Within this restricted area, in the series of cathedrals built in the course of the 12th and 13th centuries, the major innovations of Gothic architecture took lace. 2 The supernatural character of medieval religious architecture was given a special form in the Gothic church. Medieval man considered himself but an imperfect refraction of Divine Light of God, Whose Temple stood on earth, according to the text of the dedication ritual, stood for the Heavenly City of Jerusalem. The Gothic interpretation of this point of view was a cathedral so grand that seems to belittle the man who enters it, for space, light, structure and the plastic effects of the stonework are made to produce a visionary scale. The result of the Gothic style is distortion as there is no fixed set of proportions in the parts. Such architecture did not only express the physical and spiritual needs of the Church, but also the general attitude of the people of that time. Gothic was not dark, massive, and contained like the older Romanesque style, but light, open, and aerial, and its appearance in all parts of Europe had an enduring effect on the outlook of succeeding generations. 4 Gothic architecture evolved at a time of profound social and economic change in Western Europe. In the late eleventh and twelfth centuries trade and industry were revived, particularly in northern Italy and Flanders, and a lively commerce brought about better communications, not only between neighboring towns but also between far-distant regions. Politically, the twelfth century was also the time of the expansion and consolidation of the State. Along with political and economic developments, a powerful new intellectual movement arose that was stimulated by the translation of ancient authors from Greek and Arabic into Latin, and a new literature came into being. Gothic architecture both ontributed to these changes and was affected by them. 5 The Gothic style was essentially urban. The cathedrals of course were all situated in towns, and most monasteries, had by the twelfth century become centers of communities which possessed many of the functions of civic life. The cathedral or abbey church was the building in which the people congregated on major feast days. It saw the start and the end of splendid and colorful ceremonies, and it held the earliest dramatic performances. The abbey traditionally comprised at least a cloister, a dormitory and a refectory for the onks. But the cathedral also was around a complex of buildings, the bishops palace, a cloister and the house of canons, a school, a prison, and a hospital. However the cathedral dominated them all, rising high above the town like a marker to be seen from afa.. . 6 The architectural needs of the Church were expressed in both physical and iconographical terms. Like its Romanesque predecessor, the Gothic cathedral was eminently adaptable. It could be planned larger or smaller, longer or shorter, with or without transepts and ambulatory, according to the traditions nd desires of each community. It had no predetermined proportions or number of parts, like the Roman temple or the centrally planned church of the Renaissance. .u4da0bd251557e7e3483232eef3186333 , .u4da0bd251557e7e3483232eef3186333 .postImageUrl , .u4da0bd251557e7e3483232eef3186333 .centered-text-area { min-height: 80px; position: relative; } .u4da0bd251557e7e3483232eef3186333 , .u4da0bd251557e7e3483232eef3186333:hover , .u4da0bd251557e7e3483232eef3186333:visited , .u4da0bd251557e7e3483232eef3186333:active { border:0!important; } .u4da0bd251557e7e3483232eef3186333 .clearfix:after { content: ""; display: table; clear: both; } .u4da0bd251557e7e3483232eef3186333 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u4da0bd251557e7e3483232eef3186333:active , .u4da0bd251557e7e3483232eef3186333:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u4da0bd251557e7e3483232eef3186333 .centered-text-area { width: 100%; position: relative ; } .u4da0bd251557e7e3483232eef3186333 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u4da0bd251557e7e3483232eef3186333 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u4da0bd251557e7e3483232eef3186333 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u4da0bd251557e7e3483232eef3186333:hover .ctaButton { background-color: #34495E!important; } .u4da0bd251557e7e3483232eef3186333 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u4da0bd251557e7e3483232eef3186333 .u4da0bd251557e7e3483232eef3186333-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u4da0bd251557e7e3483232eef3186333:after { content: ""; display: block; clear: both; } READ: Alicia My Story EssayIts social and liturgical obligations demanded a main altar at the end of a choir where the chapter and the various dignitaries would be seated, a number of minor altars, and an area for processions within the building. 7 There were rarely more than about two hundred persons participating in the service, even though the smallest Gothic cathedral could easily contain that number. The rest f the building simply supplemented this core and provided space for the laity, who were not permitted to enter the choir or sanctuary. Still, after the middle of the twelfth century, the choir was usually isolated by a monumental screen that effectively prevented laymen from even seeing the service, and special devotional books came into use to supply the congregation with suitable subjects of meditation during mass. 8 The program of the Gothic church fulfilled iconographical as well as social requirements. The intellectual centers of the Middle Ages had long been ssociated with the Church, and the tradition of learning that had been preserved in monastic and cathedral schools gave rise to universities such as Paris and Oxford in the late twelfth and thirteenth centuries. Such an association obviously had an effect on the arts, which were still primarily religious in nature. Scholarly clerics, for instance, were appointed to arrange the intricate, theological programs for the sculpture and the stained glass that decorated the church. The relationship is thought by some historians to have been even closer, for scholastic thinking first took shape in Paris early in the welfth century, at the very time that Gothic architecture came into being there. It is possible that architects, who were abstract thinkers in their own right, may occasionally have absorbed some of the habits of thought of the philosophers. In the absence of written documents, however, it cannot be proved whether these habits were consistently embodied in the design of the buildings. 9 The Gothic age, as has often been observed, was an age of vision. The supernatural manifested itself to the senses. In the religious life of the twelfth and thirteenth centuries, the desire to behold sacred reality with odily eyes appeared as the dominant theme. Architecture was designed and experienced as a representation of an ultimate reality. 10 The Gothic cathedral was originated in the religious experience and in the political and even physical realities, of twelfth-century France. It was described as an illusionistic image of the Celestial City as evoked in the Book of Revelation. The essence of Gothic style was most fully developed in its conquest of space and its creation of a prodigious, visionary scale in the cathedrals of the twelfth century.

Monday, December 2, 2019

With the Onset of Globalization Small Cosmetic Companies Cannot Compete Against Multinational Ones free essay sample

With the onset of globalization small cosmetic companies cannot compete against multinational ones As globalization is an ongoing process of greater economic interdependence among countries, reflected in the increasing amount of cross border trade in goods and services, the increasing volume of international financial flows and the increasing flows of labor (Stanley Fischer,2003), a profound impact on the beauty industry is obvious. In 2007, even multinational cosmetic companies were confronted with the doom of bankruptcy, due to the Global Financial Crisis, to say nothing of small business. There is no doubt: small cosmetic companies cannot compete with multinational ones. This opinion is based on the following reasons. Multinational cosmetic companies manufacture products globally, while small ones manufacture locally. According to a survey, after the entrance of China to WTO, with its flexible tariff policy and low-priced labor force, an increasing number of multinational companies set up branches, shifting their manufacturing business there, making China as the biggest cosmetic processing base throughout the world. We will write a custom essay sample on With the Onset of Globalization Small Cosmetic Companies Cannot Compete Against Multinational Ones or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In this way, the cost of some products made in China is 50-60% lower than those made in the original countries. However, a majority of small companies due to limited capital are restricted to hiring expensive local labor, which gives rise to a high cost in the processing procedure. When it comes to raw material, it is evident that multinational corporations enjoy greater advantages. To some extent, their processing businesses are spread to places where they can gain cheap raw materials. For instance, as Thailand is abundant in olive oil, a large number of multinational essential oil companies choose to establish their factories there. Thanks to the low cost on raw materials, those companies are more competitive than small ones, which are unable to reduce their costs when they sell to consumers. Another important reason is their ability to use global commercial power. Multinational companies, with their adequate capital, are able to make most of advertising to promote their products and in most cases, do it globally. Whereas small companies, due to insufficient capital, can seldom spare the funds to produce an advertising campaign. They are confined to a local market and it is hard for them to establish a global image. It goes without saying that the main consumers, woman, are slaves to marketing. They need brands, and vice versa, brands need them. Without a reputation, especially in the fashion world, possibility of winning women’s heart for small companies is slim. Finally, multinational cosmetic companies have a greater power to weather catastrophic economic events like the Global Financial Crisis. For example, data from the Australian Bureau of Statistics shows in the two years from June 2007 more than 80% of Australian small businesses shut down. Research conducted by the Commonwealth Bank shows that 40 percent of small cosmetic businesses in Australia are finding trading conditions tough. These figures demonstrate that small businesses cannot compete against big international enterprises. In conclusion, with the onset of globalization small companies cannot compete against multinational ones by reason of: high cost of labor and raw materials, inability to advertise globally and incapability to survive economic turmoil like the GFC. Bibliography Insolvency Experts (25 October 2010) Full hit of GFC on Australian business revealed http://www. liquidationdirect. com. au/blog/full-hit-of-gfc-on-australian-business-revealed/ (Accessed 9/02/2011) Drew Cratchley (June 4, 2010) GFC still hurting small business: CBA http://news. smh. com. au/breaking-news-business/gfc-still-hurting-small-business-cba-20100604-xjwk. html (Accessed 9/02/2011)