How life is influenced by science Essay Example | Topics and Well Written Essays - 250 words

How life is influenced by science - Essay Example Landis confessed of using other drugs but not testosterone in 2010. He was also found out to be guilty of illegal blood transfusion. Floyd was then stripped of his title as the world champion of 2006. Testosterone is a steroid hormone; it is the principle male sex hormone and anabolic hormone. This hormone plays a major role in the development of male reproductive tissues, bone mass and body growth . Its anabolic effects are growth of muscle mass and strength and the simulation of bone maturation and linear growth. Testosterone levels in the body should not exceed the normal level, this is the basis of the testosterone test (Webmed). This test tends to find out the reason for higher performance than usual especially to the athletes who are suspected to be using synthetic testosterone. This was the test performed on Floyd to confirm the allegations. At the end of the day we learn that science has a great potential of being used and at the same time revealing whether it is being misused or not. It is better if we make good use of scientific facts for the betterment of the sports but without taking the advantage of it to pretend to be what we are

If I Could travel back to any point in history,what would it be and Essay

If I Could travel back to any point in history,what would it be and why - Essay Example America’s growth began to slow down and many were lucky to even have food to eat. There were also serious droughts that created what is known as the dust bowl. This made it hard to grow food which only added to the affects of The Great Depression. Pictures can barely even describe the actual pain that many had to go through once they lost everything. It would be a great experience to actually be able to see firsthand what The Great Depression was actually like. What would be the most amazing is to see how many kept positive although going through such a bad time. Techniques used by many to keep positive and moving forward can be used today. This would be helpful since currently we are experiencing events similar to The Great Depression. Going back into history to see what works and what doesn’t would be beneficial to many and that’s why if I could travel back in time, I would travel to experience The Great

Microorganism Responsible for the Disease of Jake Essay

Microorganism Responsible for the Disease of Jake - Essay Example He also observed that C. tetani can be grown only in the absence of oxygen. He could also ascertain that bacteria do not spread to other organs and tissues rather remain at the place where they are injected into the body. C. tetani release two toxins namely tetanospasmin and tetanolysin. The role of tetanolysin is not very clear; however, it has been found that the toxin called tetanospasmin is the main culprit behind the disease. (Guilfoile 2008) In 1890, Danish scientist, Knud Faber, was successful in isolating tetanus toxin from C. tetani and noticed that toxins developed similar disease symptoms as found to be caused by infection with C. tetani. (Guilfoile 2008) Symptoms and Identification of Disease As per the case details, the blood test report from the lab mentions about the gram-positive rods in Jake's blood. Moreover, stiffness in the abdominal muscles and difficulty in swallowing are the two major symptoms that have surfaced. Jake reported that he was hurt and scratched his leg on scrap metal a week ago while skateboarding. The average period of incubation for tetanus spores is usually found to be 8 days though it could vary from 3 days to 3 weeks. Jake got a wound only a week back when he hurt his leg at the construction site and this incident is a potential cause for him getting infected with tetanus that is how most of the tetanus patients usually get infected. His eating at the local Mexican restaurant does not seem to be a cause for the current symptoms because none of his family members got affected or had any complaint so far of any kind. Jake is a healthy young man with no previous history of muscle stiffness or any nerve disease. Rabies too has somewhat similar symptoms such as difficulty in swallowing but it is ruled out because it is caused by a virus and blood report clearly shows the presence of Gram-positive rods. Bacterial Meningitis is also ruled out because it is a disease caused by Gram-negative bacteria. It is quite likely that Jack was infected with C. tetani bacterial spores when he hurt his leg with scrap metal. Spores got activated and developed into gram-positive bacteria. (Gram-Positive Bacteria 2011), The bacteria produce a powerful toxin called tetanospasmin that affects muscles. These spores are found in soil, faces, dust widely in the environment. Puncture wounds provide spores an easy entry into the human body. That is what seems to have happened in the case of Jake. Tetanus is not transmitted from person to person but acquired from the environment and Jake’s current history suggests so. Epidemiology and Risk Factors Tetanus is found to inflict people worldwide but damp and hot climates offer a fertile ground for the C. tetani to flourish. Its spores are widely found in the faces of animals such as dogs, rats, sheep and other cattle. Usually, spores get entry into the body through wounds and puncture. Widespread immunization in the U.S has made this disease a rarity with 50 or less numb of ca ses every year. Drug addicts are at high risk for tetanus. Source: http://www.cdc.gov/vaccines/pubs/surv-manual/chpt16-tetanus.pdf Between the period 2001 and 2008, out of the 233 cases of tetanus patients only 26 deaths were reported in the U.S including one case of neonatal death.

Ageism Employment Discrimination

Ageism Employment Discrimination AGEISM AND EMPLOYMENT Social and economic controversies surrounding age discrimination by employers in the workplace is becoming a major social problem. For baby boomers reaching age 55 and over, research implies significant generational issues in terms of attitudes of the employer and society in general (Palamore, Branch, Harris, 2005). Previous studies demonstrate that age discrimination is stereotypical among hiring managers in the workplace and is a leading social problem for the aging population (Gringart, Helmes, Speelman, 2005). According to (Marshall, 2007) ageism in the workplace relates to the employer’s impression and evaluation of capabilities. Judgmental attitudes based upon a person’s aging appearance, as opposed to their potential, is covert discrimination. Waller (2006) presents an interesting perspective of inequity and ageism the harassment by employers to persons over 55. Waller implies that employers face the same liabilities and legal consequences as that of discrimina tion by â€Å"race, sex, disability, sexual orientation, religion, or beliefs† (Waller, 2006 p. 33). Ageism as a psychosocial problem is detrimental to the emotional and mental well being of the persons experiencing discrimination in the workplace (Marshall, 2007). The population over the age of 50 faces significant vulnerability in the workplace where skilled workers are at a greater risk of termination than the unskilled younger worker (Roscigno et al., 2007). Ageism affects those approaching retirement age, persons 50 and over, who are not physically or mentally prepared for retirement. This premature event is demoralizing to persons who spent a lifetime committed to their no-longer-needed professional experience. It appears that policy makers lack consideration for the over 50-population and allow loopholes for the employers by unclear discrimination laws and regulations. MacGregor (2006) summarizes another factor of ageism in the workplace, the initiation, and enforcement of early retirement by offering incentives. If initiatives do not elicit early retirement, demoted status frequently leaves the persons with no alternative other than forced early retirement. Economic, social, financial, and stereotypical attitudes toward the aging workforce needs reevaluation by corporate America as the labor force of the aging population will soon exceed the younger labor force (Goldberg, 2000). The hypothesis of this study describes the profound affects of discrimination and displacement of person over 55 years of age in the workplace. Evidence finds that attitudes of ageism are a widespread dilemma, which is increasing the vulnerability of future generations in the workplace environment (Goldberg, 2000). The number of baby boomers reaching retirement age in the near future may change the attitudes about the graying workforce from a social and economic perspective (Wan, Sengupta, Velkoff, DeBArros, 2005). This study addresses unemployment and ageism issues of baby boomers in the state of New Hampshire, which compromises 30 percent of its population (Angiropolis, 2008). Hypotheses Review of current and past research provides empirical evidence, in conjunction with statistical trends presented by the New Hampshire Employment Security and Department of Labor (Angiropolis, 2008). This experimental study hopes to validate the presence of age discrimination, eliminating gender characteristics and hiring inequity, in New Hampshire. According to previous studies, age definitely played a role in hiring determination. Globalization of age discrimination affects society from a generational and economic viewpoint. Since the dilemma of increasing aging baby boomers area, a major economic portion of the workforce appears through previous literature as an ongoing social problem. Literature is a vital feature of this research study for the validation and emphasis of ageism as a growing social problem in the workplace. Therefore, a research survey identifying and validating the seriousness of ageism in the workplace, including New Hampshire is the hypotheses of this study. Review of Literature and Theories Rix, (2005) reports that â€Å"nearly 1.7 million workers aged 55 and older were displaced from their jobs between January 2001 and December 2003† (p. 4). Re-employment for many exceeds a period of 4-5 months. For example, the Employment Security Commission in Manchester, New Hampshire confirms the average unemployment compensation is between 20-26 weeks and unemployment benefits do not exceed a 26-week period (Asselin, A., personal communication, January 16, 2008). Ageism, reorganization, and lay-offs all displace employees. Often persons are over qualified, yet ageism appears to discourage hiring managers, although employers carefully avoid the topic of age due to discrimination laws and fears of lawsuits. Experienced workers in New Hampshire, include persons with academic degrees, years of vocational training, and life skills (Asselin, A., personal communication, January 16, 2008). In the past few years, statistics show an increase for persons over age 55 receiving unemploy ment in New Hampshire (Angiropolis, 2008). Ageism in the workplace is a global problem—one that exists in countries and states other than New Hampshire. Mandatory retirement, abolished in the United States in 1996 as part of the Age Discrimination in Employment Act (ADEA, 1996), is not part of employment policy for Canadians. They still struggle with legislation to end age discrimination of persons from age 60-65. MacGregor (2005/2006) reports mandatory retirement is an ongoing political and social problem for the aging Canadian population. Additional empirical studies of the Australian aging population suggest inequity and stereotypical attitudes of hiring older adults (MacGregor 2005/2006). From a global perspective, this does not appear to be a consideration for hiring managers—ageism seems to take precedence over knowledge in the hiring decision. Gringart et al. (2005, as cited by Bittman, Flick, Rice, 2001) refer to a study that sampled â€Å"1007 hiring decision- makers† (Gringart et al., p. 88) and found most hiring managers preferred younger employees. Managers preferred training younger employees as opposed to older employees since stereotypically younger persons are purportedly more capable of learning. A similar study conducted in the United States indicated similar results of stereotypical attitudes towards ageism by hiring managers (Bendick, Jackson, Wall, 1999, as cited by Gringart et al., 2005). Recent research focuses on interaction, stereotypical aspects, and corporate expenditures influencing age discrimination in the workplace (Rosecigno, Mong, Byron, Tester, 2007). Considering previous research findings the existence of ageism and discrimination, is it plausible that societal views about aging are generational in nature, and in turn, influence attitudes of employers? Are the growing cultural differences likely to affect future generations if attitudes do not change? Vincent (2005) summarizes generational society as being a culture that is no longer specific to the younger generations; it includes persons transitioning from work to retirement. Where the over-55 population is forced into early retirement by employers, it appears from a social, political, and legal viewpoint to validate and reinforce stereotypical attitudes about this population. These behaviors present a growing problem and require reevaluation if indeed this is an increasing social problem.   For pers ons aged 55 and older forced into early retirement, discouragement and emotional issues generally escalate healthcare costs due to lack of income potential and isolation from mainstream society. In addition, Gringart et al. (2005) suggests early or forced retirement is a significant loss to the younger generation since the older, more experienced, and knowledgeable employee is no longer present to share the wisdom of experience and influence. What example is society teaching the younger generation about biases prejudices of the older population, and their future in the workplace? The astronomical numbers of over 55 workers forced to retire in 1999, â€Å"5.4 million† (Palamore et al., 2005, p. 82), indicates ageism is a growing issue in our society. Such loss of resources affects the economy and society in general and presents a negative view of aging. Every citizen needs to be concerned on the topic of ageism and discrimination in the workplace since future predictions imply the number of baby boomers reaching full retirement age will double within the next decade (Nelson 2005). The population will shift to a â€Å"Graying America† (Nelson, 2005, p. 218). Undo ubtedly, this shift will dramatically influence all aspects of society, including the aging population in New Hampshire. The New Hampshire Employment Security and Department of Labor reports the aging population of unemployed workers is continually increasing (Angiropolis, 2008). In 2004, the Department of Labor in New Hampshire reported a total of 6,901 displaced workers 3,450 males, and 2,641 females. Totaling 18 percent unemployed between the ages of 45-54 and 14 percent between the ages of 55-64 total claims for both groups totaled 4,426 unemployed persons that filed claims, the total for that year 28,000 claims. Current data of unemployment claims indicate a continuum of increase in 2006 reported claims of 6,592, in 2007, 7,536 claims reported. In addition, to the overall increase from 27,612 in 2006 to 35,609 in 2007 an increase of 7,609 between 2004 and 2007 (Angiropolis, 2008). Data of age groups for 2007, yet published, the significance of percentages of unemployed between ages 45-64 in past years indicates 32% of citizens in New Hampshire (Angiropolis, 2008). Previous data-reflecting ageism i n of displaced workers in New Hampshire requires further research in order to determine if there is a relationship between qualities and characteristics of hiring managers to either eliminate or reinforce ageism discrimination. Methods Participants A research study is questionnaires in the form of a survey of 400 random businesses in New Hampshire area to measure the characteristics and capabilities of potential employees. The qualifying participants must be owners, and or hiring managers. Materials and Procedure The research experiment is a self-designed survey to be conducted by telephone to participants. Utilizing the method of a Likert scale the survey seeks to ask hiring manager to list the most significant qualities when deciding to hire persons in their organization or company. This survey asks the participants to rank in order of their comfort level in job applicant capacity; the survey hopes to indicate stereotypical preferences of hiring employees by decision-makers (see Appendix 1). Participating hiring managers will be told the survey is voluntary in nature. If they chose to respond to this study of various decision-making attributes of hiring personal. Participants will also be told of the purpose of this survey instrument (a) educating future generations on how to prepare for employment, (b) the significant qualities, and characteristics that hiring managers are seeking. In addition, this instrument serves and an educational process of teaching the younger generation how to prepare for retirement at an early age. Since ageism appears to be a global issue with emphasis influencing stereotypical attitudes and assumptions of the aging workforce. Future projections of ageism as a deterrent when persons reaching over age 55 become unemployed and are unable to re-enter the workforce. Implications Limitations of the survey are primarily time constraints for this research study. In addition, sample size of respondents may not provided the results this experiment hopes to conclude in terms of stereotypical characteristics of decision-making by hiring managers. Moreover, some of the questions regarding age and gender may not be accurately disclosed by responding participants. Validity of this research is dependent upon honest factual responses by hiring-managers and the designer of the survey. The possibility that the responses are questioned since the validity of responses relies solely on the designer applies to the ethical principles of this researcher and study. A further limitation of this experiment requires permission from the ethics committee of the State Board of Psychologist in New Hampshire prior to the survey’s completion. Discussion Past research implies the validity of discrimination for persons over age 55, including premature termination and difficulty with re-employment. Research exemplifies the existence of negative ageism, yet little research questions the opinions of over 50 persons experiencing the dilemma of forced retirement and the rejection associated with developmental milestones of aging. As a diverse society where prejudices and biases exist from a cultural viewpoint, ageism ranks as a minority group. Perhaps further research addressing methods of creating societal change regarding cultural biases and prejudices can influence negativity around aging and employment. Several articles from peer-review journals provide significant empirical evidence of stereotypical negativity from employers in the workforce. In addition, a conversation with an employee from Employment Security Commission in Manchester, New Hampshire, regarding displaced persons aged 50 and over. Ms. Asselin provided written consent to use specific portions of this conversation for the use of this study. Ms. Asselin, reported, â€Å"I see older client’s everyday, which are more than qualified for positions, and are not employed by the hiring managers.† Most report they are over qualified; several persons are 50 and over. When directly asked the question of age discrimination, she states, â€Å"Definitely, we see this all the time, even though the employers do not mention age† (Asselin, A., personal communication, January 16, 2008). The null hypothesis (Ho) of business owners in New Hampshire is dependent upon the results of the survey data. In terms of validating if ageism characteristics plays a significant role in employer decision-making during the interview process. Thus, validating previous research that ageism is a global social problem. The argument that New Hampshire’s unemployed persons between the ages of 45-60 having difficulties re-entering the workforce is the premises of this research. In addition, if the survey concludes hiring managers display covert discrimination then further research of all New Hampshire business managers may indicate change is needed regarding attitudes towards ageism in the workplace. New Hampshire’s workforce is a fraction of the problem considering past research of age discrimination, research provides data that ageism is a global problem, that will likely increase in the next decade if attitudes do not change (Nelson, 2005). The reality and beliefs of this society indicates the capacity of older workers over age 55 lacks the ability of adequately training capacity. Performance decreases, or often miss work because of illness categorizes a culture of persons (Goldberg, 2000). This assumption and attitude stereotypically tries to diminish a population of persons by stigmatizing ageism. Does this mean that after age 55 and over, the quality of life, experience that this generation of persons provided for many years forced into early retirement and becomes no longer useful to society? Considering the baby boomer population will be the majority of the workforce within the next decade what affect will this impose on society if diminished from the workforce? Directions for the future Although discrimination is illegal, further research of attitudes of hiring managers can predict the affects age discrimination on future generations, the economy, and the healthcare system in New Hampshire. Differentiating whether ageism and discrimination are stereotypical in New Hampshire, is dependent upon the results of the survey. Since this experiment includes a sample of 400 of the potentially 100 plus hiring managers in New Hampshire. Future studies of all business owners, and or hiring managers may provide data that are more significant. More importantly is examining the assumptions that persons over age 55 are incapable of adequate productivity by hiring managers; otherwise, future generations will face the same deterrent attitude if change does not occur. Ultimately, everyone ages, changes in employment policies, decreasing age discrimination, for future generations is imperative. Since research supports ageism in the workforce appears to be a neglected social problem requiring further research of a marginalized population. Appendix 1 Survey Questionnaire Participant’s response indicated by circling one of the selections below, by the designer of the survey. 1. Education level: (a) High school diploma, (b) Some college (c) College graduates (d) Education level does not matter 2. Experience: (a) 1-5 years (b) 6-10 years (c) 11-20 years (d) prefer to conduct your own training. 3. Gender: Males (a) age 21-30 (b) age 31-40 (c) age 41-51 (d) age 51-60 (e) over 60 (f)no preferences Gender: Females (a) age 21-30 (b) age 31-40 (c) age 41-51 (d) age 51-60 (e) over 60 (f)no preferences 4. Appearance: (a) significant (b) somewhat significant (c) little significances (d) no significance 5. Technical ability: (a) significant (b) somewhat significant (c) little significances (d) no significance 6. Assimilation into the team: (a) significant (b) somewhat significant (c) little significances (d) no significance 7. Ability to work independently: (a) significant (b) somewhat significant (c) little significances (d) no significance 8. Professional standards: (a) significant (b) somewhat significant (c) little significances (d) no significance 9. Energy levels: (a) significant (b) somewhat significant (c) little significances (d) no significance 10. Productive peer relationships: (a) significant (b) somewhat significant (c) little significances (d) no significance References Angiropolis, M. (2008). New Hampshire Employment Securitys Economic and Labor Market Information Bureau. New Hampshire Economic Conditions, 108 (1) Retrieved January 16, 2008, from http://64.233.169.104/search?q=cache:T7mkj4veHl0J:www.nh.gov/nhes/elmi/pdfzip/econanalys/Look_forward/looking%2520forward_measuringunemp.pdf+age+of+unemployed+in+NHhl=enct=clnkcd=1gl=us Bittman, M., Flick, M., Rice, J. (2001). A survey of employers in a high growth industry. Social Policy Research Center: the Recruitment of Older Austrailian Workers. Gringhart, F., Helmes, E., Speelman, C. P. (2005). [Exploring attitudes toward older workers among Austrailain employers. Journal of Aging and Social Policy, 17(3), 85-103. Goldberg, B. (2000). Age Works What Corporate America Must Do to Survive the Graying of the Workforce. New York: The Free Press. MacGregor, D. (2005/​2006). Yes, right to work is fundamental, even for people over 65. Monitor: Economic, Social, and Environmental Perspectives, 12(7), 1-24. Marshall, V. W. (2007). Advancing the sociology of ageism. Social Forces, 86(1), 257-264. Nelson, T. D. (2005). Ageism: Prejudice against our feared future self. Journal of Social Issues, 61(2), 207-221. Palamore, E. B., Branch, L., Harris, Diana. (2005). Cost of ageism. Encyclopedia of Ageism, 80-83. Reio, , Jr. T. G., Sanders-Reio, J. (1999). Combating workplace ageism. Adult Learning, 11(1), 10. References Rix, S. E. (2005). Update on the older worker: 2004 (Public Policy Institute, pp. 1-4). Washington, DC: U.S. Bureau of Labor Statistics Roscigno, V. J., Mong, S., Byron, R., Tester, G. (2007). Age discrimination, social closure, and employment. Social Forces, 86(1), 332-334. The U.S. Equal Employment Opportunitiy Commission. (1997). The Age Discrimination In Employment Act of 1967 (ADEA). In Title VII of The Civil Rights Act of 1967 (Section 621, pp. Pub.-L 101-433). Washington, DC: Department of Labor and the Department of Justice, U.S. Vincent, J. A. (2005). Understanding generations: Political economy and culture in an ageing society. The British Journal of Social Psychology, 50(4), 579-599 Waller, C. (2006). Outlawing age discrimination: 2006. Engineering Management, 16(4), 32-33. Wan, H., Sengupta, M., Velkoff, V. A., DeBArros, K. A. (2005). U.S. Census Bureau. In Current Population Report (65+ In the United States, pp. 23-209). Washington, DC: U.S. Government Printing Office.

Attachment and Monogamy as Studied in People and Rodents :: Biology Essays Research Papers

Attachment and Monogamy as Studied in People and Rodents "It had to be you, it had to be you I wandered around, and finally found - the somebody who Could make me be true, and could make me be blue And even be glad, just to be sad - thinking of you." -Written by Gus Kahn and Isham Jones (10) The mystery of monogamy has puzzled the human race for a long time. Monogamy is usually reasoned to be the result of an attachment that is strong enough to make someone be true to their loved one. Writers, artists, great lovers, the broken-hearted, and many other people, have entertained the question: if there is such a thing as monogamy, what is responsible for it? Recently scientists have started to seriously ponder the same question. Within the past few years exciting studies and experiments have been done with the intent to delve into this complicated question, which ultimately pertains to love. In 1999, scientists at Emory University led experiments with voles and mice to study monogamy. (1) In 2000, scientists from the University College of London studied the brain activity in a group of people who were "truly, deeply and madly in love" entitled The Neural Basis of Romantic Love. (2) Although no conclusions can be reached, many interesting observations are being made about mono gamy and romantic attachment. Prairie voles are monogamous creatures, so much that eighty percent of the time males refuse to mate with any vole other than their first mate, and both parents tend to their offspring. (3) Montane voles, who are a very closely related species to prairie voles, are polygamous. (4) Both female and male montane voles leave each other and their offspring after mating. "Prairie voles spend more than 50% of the time in close physical contact with each other, whereas montane voles spend less than 5% of the time in close proximity to other individuals." (5) After studying the social patters of other species of voles, like pine and meadow voles, it is apparent that two neuropeptides are responsible for the difference in social interaction. (4) Oxytocin, in females, and vasopressin, in males are the two chemicals which help prairie voles to be monogamous. (4) These same chemicals are present in montane voles, but do not have the same effect. (5) Oxytocin and vasopressin are released after the prairie voles mate, so that they form an "attachment." (1)

Corporate Strategies to Hedge Commodity Price Risks Applying

Table of contents List of abbreviationsIII List of figuresIII List of tablesIII 1Introduction1 1. 1Problem and objective1 1. 2Structure of this paper1 2Background Information2 2. 1Definitions of fundamental terms2 2. 2Commodity price risk in different firms2 3Explanation of derivatives3 3. 1Options3 3. 2Futures4 3. 3Forwards6 3. 4Swaps6 4Hedging strategies with derivatives7 4. 1Hedging with options7 4. 2Hedging with futures7 4. 3Hedging with forwards8 4. 4Hedging with swaps8 5Pros and cons of hedging strategies with derivatives8 5. 1Pros and cons of options9 5. Pros and cons of futures9 5. 3Pros and cons of forwards10 5. 4Pros and cons of swaps10 6Practical example of corporate commodity price risk hedging10 6. 1Introduction on firm's practical hedging strategy10 6. 2Analysis on this strategy11 7Summary12 Appendix13 Appendix 1: Amounts outstanding of over-the-counter (OTC) derivatives by risk category and instrument——in billions of US dollar13 Appendix 2: Derivatives fi nancial instruments traded on organized exchanges by instrument and location——in billions of US dollar14 Bibliography15 Internet Source16 List of abbreviations CHClearing HouseIMInitial Margin MBMargin Balance MM NMaintenance Margin No OTCOver The Count VM YVariation Margin Yes List of figures Figure 1: Structure of this paper2 Figure 2: P of each option position4 Figure 3: Flow chart of marking-to-market process5 Figure 4: P of each future position6 Figure 5: Hedging model on fuel oil of Air China11 List of tables Table 1: Summary for 4 option positions4 Table 2: Summary for future positions6 Table 3: Summary for 4 derivatives9 1Introduction 1. 1Problem and objective The risk of commodity price is a ferocious topic in corporate operation.Corporate profit is equal to total revenue minus total cost. For firms, because of the high volatility on commodity price, their inputs and outputs relating to commodity are unpredictable. As a consequence corporate profit will be imm ensely volatile, which will possibly lead the firm to go bankruptcy if no any preventive actions are taken. For example, producers of commodities probably need to assume unexpected losses, when the price of outputs goes down or the price of necessary raw materials goes up. The situations are similar to wholesale buyers, retailers, exporters and even governments.Volatility of commodities price has great impacts on corporate daily operation. The objective of this term paper is to introduce derivative hedging strategies for corporate managers to reduce or even eliminate future unpredictability, mainly from the perspectives of the role commodity price risks play, what the typical derivative instruments are, where and how to apply these different derivatives in terms of hedging principles thereof, and both advantages and disadvantages when applying each derivative in real business transactions. 1. Structure of this paper Firstly, this term paper highlights problems existing in real world . Secondly, it introduces advanced derivatives theory that can be applied to solve these problems. Thirdly, specific details on the theory will be presented, including explanation, application, as well as pros and cons of each derivative instrument. Then, an example is analyzed to show how companies apply derivatives to hedge commodity risks practically. Last is a summary of this term paper. Following figure shows the body of this paper. 2Background Information 2. Definitions of fundamental terms In financial markets derivative is a contract or security whose value is derived from the value of other more basic underlying variables . One of its most important functions is hedging. In corporate operation, hedging is to secure the companies against potential loss caused by variable risks that arise in international market, such as the commodity price risks. In this paper, commodity means any tangible goods or raw materials that may be sold or traded in the markets, such as energy, gold , or agricultural products. 2. Commodity price risk in different firms Volatility of commodities price influences firms’ daily operation significantly. Producers of commodities, such as farms, oil producers, mining companies, face price risk on output. Wholesalers and retailers, face price risk during the time period from buying from suppliers and selling to customers. Exporters, face the same price risk as well as currency exchange risk. And governments face price and yield risks generating from tax revenues that depend on firms’ operational conditions. 3Explanation of derivativesDerivatives are traded in exchange-traded markets and over-the-counter markets. (See recent derivatives transaction status in appendix 1 and appendix 2. ) Notably, exchange-traded derivatives are default risk free and liquid. However over-the-counter traded derivatives are the opposite. 3. 1Options An option is the contract that gives the buyer the right but not obligation to buy (call option ) or sell (put option) an underlying asset at a predetermined price (exercise price) for certain quantity during a fixed period of time (maturity).The buyer of the option pays a particular amount of money (option premium) to the seller to buy a right whereby he can decide whether or not to exercise this option, simultaneously the seller has the obligation to perform if the buyer exercises the option. European options only can be exercised on expiration day, and American options can be exercised at any time before maturity. The buyer of the call option is named long call, while the seller of the call option is named short call. Similarly, the buyer of the put option is named long put, while the seller of the put option is named short put.In commodity market, underlying of commodity option is a commodity, such as oil, wheat, or gold. Commodity options are both exchanges-traded and OTC traded. Following figure shows P of each option. Following table is the summary for these 4 option po sitions. Table 1: Summary for 4 option positions Market price expectationMaximum profitMaximum lossBreakeven point Long callupunlimitedoption premiumexercise price + option premium Short calldown or stableoption premiumunlimitedexercise price + option premium Long putdownexercise price – option premiumoption premiumexercise price – option premium Short putup or stableoption remiumexercise price – option premiumexercise price – option premium Source: author’s own. 3. 2Futures A future is a contract between two parties to buy or sell a specified amount of asset at a specified time period in the future for a certain price. Normally there are two types of futures, commodity futures whose underlying are commodities and financial futures whose underlying are financial assets. They are highly standardized, regulated, and traded in exchange markets with highly liquid and default risk free property. Because of the marking-to-market process, at maturity the settling price is the spot price at expiration date with profit gaining or loss paying from a margin account, which indirectly makes the effective bargain price equal to the predetermined price in the future contract. Notably, to ensure high liquidity of futures, marking-to-market process plays a significant role. The following figure shows the marking-to-market process. Generally there are two alternative ways at maturity to settle futures, either by cash or by actual delivery of underlying, which is clearly defined by futures exchange.Following figure and table show the details of a future. Table 2: Summary for future positions ?Maximum profitMaximum lossBreakeven point Long positionunlimitedexercise pricespot price + cost of carry Short positionexercise priceunlimitedspot price + cost of carry Source: author’s own. 3. 3Forwards A forward contract is a customized and over-the-counter agreement to buy or sell an asset at a specified time in the future for a specified price, where a long position has the obligation to buy and a short position has the obligation to sell. Compared with futures, no marking-to-market process are required.Counterparties can negotiate with each about the parameters of the contract. As a result, a firm who wants to make forward contract needs to find the counterparty by itself. 3. 4Swaps A swap is a customized and over-the-counter agreement to exchange a series of specified assets periodically in the future. Normally the counterparties of a swap contract are a large institution such as a bank and a company. Basically, we can view a swap as a complicated forward. Except currency swaps, counterparties just need to pay the differences between the cash flow they should exchange. Because swaps are bespoken as a result they are less liquid.There are commodity swaps, interest rate swaps and currency swaps. Interest rate swaps is an agreement of two counterparties to change fixed interest and floating interest on predefined nominal pr incipal in the future periodically. Commodity swaps normally vary tremendously among different markets. In a currency swap, counterparties change same value of different currencies in inception and termination, where the exchange rate of the tow currencies depends on the negotiation of counterparties. 4Hedging strategies with derivatives This chapter will focus on the principles of hedging strategies on commodities. . 1Hedging with options If a trader wants to procure a commodity with high volatile price, he can buy a commodity call option to hedge the price risk of going up. Similarly, if a company wants to sell a commodity product, it can buy a long put to hedge the price risk of going down. In practice, because investors want to bet more precisely on the future price of the underlying, and hedgers with long positions want to save option premiums, a few combinations of options come out, such as a long call and a short put with identical parameters except the different strike price . 4. 2Hedging with futuresWhen the objective of a commodity trader wants to neutralize the price risk as far as possible, usually he will choose to take a position on a future on commodity. A hedger who already owns a commodity asset or doesn‘t own right now but will at some future time expecting to sell it in the future without assuming any price risk, he can apple future hedging strategy to enter into a short position to become a short. Likewise, a hedger who has to buy a certain commodity asset in the future and wants to lock in spot price immediately, he can apply a future to enter into a long position to become a long. . 3Hedging with forwards The principles of hedging strategy with forwards are similar with futures'. Whether to use futures or forwards depends on different requirements. Generally, financial assets investors who need high liquidity prefer to choose futures, while commodity investors such as producers who need high customization prefer to choose forwards. 4 . 4Hedging with swaps When investors want to hedge risks of interest rates, currencies, or commodities, they can use swaps. In gold swaps, counterparties change fixed lease rate with variable lease rate.In swaps on base metals, counterparties change fixed metal price with average price of near dated metal future. In oil swaps, counterparties change fixed West Taxes Intermediate (WTI is a benchmark in oil price) price with average price of near dated WTI future. 5Pros and cons of hedging strategies with derivatives The following integrated summary of these derivatives depending on pervious analysis makes systematic comparisons. (The options here are exchanged-traded European options) Table 3: Summary for 4 derivatives SUMMERY OF DERIVATIVES FOR GENERAL TYPES OptionsFuturesForwardsSwapsTypes of contractstandardizedstandardizedcustomizedcustomized Settlementscash and deliverymost cash and few deliverydeliverydepends on individuals Trading marketExchange tradedExchange tradedOTCOTC Liqu idityhighhighlowlow Marketing-to-marginnorequirednono Time of settlementmaturitydailymaturityperiodically Initial investmentoption premiuminitial margin nodepends Default risk assumed byClearing houseclearinghouseBoth partiesBoth parties ProsDefault risk free & liquiditycustomization & no initial investment Consinitial investment & inflexibledefault risk for both party & illiquidity Source: author’s own. . 1Pros and cons of options The pros of options are obvious. Firstly, they have no risk to assume more loss than premium but have possibility to get unlimited potential profit. Secondly exchanged-traded options are highly liquid and OTC traded options are flexible. However, the cons of options are also explicit, such as the difficulty to decide when to enter into a long position.Because buying an option needs to pay option premium, if the spot price cannot go above (for a long call) or go below (for a long put) the breakeven point the hedger will suffer a loss, and depends on statistics the possibility of a long position to lose is about 66%. 5. 2Pros and cons of futures It definitely makes sense for most companies whose majors are in businesses but not professional in forecasting the price of commodities price volatility, which can make them pay more attention on their core competences instead of fearing about volatile price.Nonetheless, taking neutralized strategies make hedgers give up the possibility of both profit and loss. Moreover, instead of hedging risks by companies, shareholders can hedge themselves according to their preferences. Additionally, if other competitors of the same industry don’t apply hedging strategies, in fact, it is the hedging company itself that assumes risks, because competitive pressures are the same for other all competitors but different for the hedging company its own. 5. 3Pros and cons of forwards Basic pros and cons have been listed in the table in front of this chapter.Generally, compared to futures, the most explicit pro is that forwards are highly customized and therefore the con is that they are hardly liquid. 5. 4Pros and cons of swaps Basic pros and cons have been listed in the table in front of this chapter. Gernally, compared to futures and forwards the most precise pros is that both counterparties could reap benefits from a swap, such as in a currency swap where a firm with a low rate may get a cheaper loan as other firms with high rates, and the counterparty may get a payment as compensation.However the corresponding cons is that counterparty may need to pay commision to intermediary, because it is difficult to find an appropriate counterparty by itself. 6Practical example of corporate commodity price risk hedging 6. 1Introduction on firm's practical hedging strategy Air China is an airline company, whose cost of fuel oil occupies 44. 75% of total revenue in 2008. To hedge the fuel oil price risk, Air China bought a call option with strike K1, meanwhile sold a put option with st rike K2, where K1

Coastal management

THE LOBBY and several bedrooms parted company with the Holbeck Hall Hotel yesterday, leaving half of the four-star establishment behind. Engineers said heavy rain this spring after several dry summers was the probable cause of the landslip, which has sent sections of the hotel toppling into the North Sea. The north-east wing of the 30-bedroom hotel collapsed into Scarborough's South Bay on Saturday night. Guests had been evacuated early on Friday after huge cracks appeared overnight. The rest of the east wing gave way yesterday, leaving the hotel barely half intact, but what remains is likely to be demolished. Geologists say the east Yorkshire coast, with it's steep clay cliffs, has always been vulnerable. South of Scarborough, the 40-mile stretch of cliffs of Holderness is the fastest-eroding coastline in Europe and is experiencing the worst land-slips for 40 years. But Mr Michael Clements, director of technical services for Scarborough council, said sea erosion was not a factor in the Holbeck landslip. The cliffs below the hotel are protected at their base by a sea wall. The main problem, he said, was probably heavy rain which penetrated layers of sand and gravel in the cliffs, lubricating the clay which had cracked in hot weather. â€Å"There is a long history of cliff movements in the area,† Mr Clements said. â€Å"According to local records, the first Scarborough spa was carried away by a landslide in 1770, while the Holbeck cliffs suffered a major slip in 1912. Cliff stabilisation schemes were carried out further north at Whitby in the 1980's and at Robin Hood's Bay in the 1970's. In the fishing village of Staives, the breakwaters were recently raised. Pressure for further protection has run up against the obstacle of expense. â€Å"The cost of protecting these cliffs is phenomenal.† Mr Clements said. â€Å"The work at Whitby cost à ¯Ã‚ ¿Ã‚ ½3.4 million.† Most developed areas around Scarborough have seawalls but this is not the case further south, where Mr Eddie Knapp, principal engineer of Holderness council, said there had been â€Å"unusually large and particularly worrying† land losses over the past six months. â€Å"The average rate of erosion is 6ft a year but this year it has been up to 65ft in places,† Mr Knapp said. At Skirlington, 65ft of land has recently fallen into the sea, carrying away 23 bases at a caravan park, while 70ft of land has gone at Aldbrough caravan park, leaving 15ft of unfenced land before a 60ft drop into the sea. A family living in a chalet at Atwick, near Hornsea, was rehoused when the cliff edge came perilously close. Mrs Sue Earle, chairman of the Holderness Coast Protection Committee, is to outline local concerns in talks at the Agriculture Ministry today. Mrs Earle, whose farm-house is 30ft from the cliff edge at Cowden, said: â€Å"Now that this has happened in a nationally-known resort, I hope it will help to bring the issue out into the open. Daily Telegraph, 7.6.93 South Coast subsiding as the sea level rises By Christine McGourty, Technology Correspondent PART of the south coast of England is sinking at a rate of almost an inch every five years, according to new research. The find comes from an analysis of tidal measurement data from 1962 until about 1985 by Portsmouth University researchers. The higher tide measurements were thought to be a combination of subsidence and rising sea levels. Discovery of the subsidence à ¯Ã‚ ¿Ã‚ ½ from Portsmouth to Newhaven à ¯Ã‚ ¿Ã‚ ½ follows evidence from around the world that global sea levels have risen by four to six inches over the past 100 years. The subsidence will add to the problems expected from the sea level rise associated with global warming. Sea levels on the south coast are expected to rise by at least eight inches by 2050. Dr Janet Hooke, director of the university's river and coastal environment research group, said: â€Å"Most previous studies showed the subsidence was confined to East Anglia. This is the first analysis to show that parts of the south coast may be subsiding too. The movement may have origins back in the last ice age.† Malcolm Bray, one of the researchers, said at the Institute of British Geographers' annual conference in Nottingham: â€Å"It seems frightening. â€Å"What we're doing now is to work out what it means for the local authorities affected. â€Å"We can't stop flooding à ¯Ã‚ ¿Ã‚ ½ that's an act of God à ¯Ã‚ ¿Ã‚ ½ but we may be able to minimise the impact through coherent local and regional strategies. â€Å"We need to study the coast over longer distances and look slightly further into the future to stop authorities doing something that could have detrimental effects on their neighbours. â€Å"Our research shows that some parts of the coast are independent but many parts are interconnected.† They found the stretch from Lyme Regis to Newhaven could be divided naturally into nine â€Å"coastal cells†. Dr Hooke said: â€Å"Some preventative measures need to be taken now while the opportunity is there. â€Å"We don't want to see building on very vulnerable zones, which could just create problems for the future with flooding and erosion. â€Å"Plans may be needed to manage conservation of wetlands which are particularly vulnerable.† The researchers welcomed the Government's strategy for coastline management, announced last October, and said that more coherent analysis of longer stretches of coastline were needed all around the country. * Navy beans, from which baked beans are produced, could be grown in England if the global temperature rises as predicted in the next century, according to a study. Researchers at Coventry University and Horticultural Research International have found that navy beans could be grown in Hampshire, East and West Sussex and Kent if the temperature rose by just 0.5C in the next century. The climate is too cold at present for navy bean crops and most are imported from America and Canada. Daily Telegraph 8.1.94 Erosion-hit resorts pin hopes on reef of tyres By Richard Spencer and Lynda Murdin RESIDENTS along the fastest eroding coastline in Europe are hoping a plan to dump millions of tyres in the sea as a protective reef will be given the go-ahead by the Government. Villages and the resorts of Withernsea and Hornsea on the Holderness coast in Humberside are in danger of slowly falling into the sea. If the Ministry of Agriculture grants a licence for the trial tyre-reef scheme, it could lead to one of the most ambitious coastal engineering projects in Europe since the Dutch reclaimed its polders from the other side of the North Sea. The area from Hull to the low, muddy cliffs of the Humberside coast has always suffered erosion. Spurn Head, the spit of land which juts out into the Humber estuary, has been washed away and re-formed six times in recorded history, while many villages already lie underwater. But, in the past five years, the pace of change has rapidly increased. Some homes have been abandoned and farmers are seeking compensation for loss of land and buildings. The Humberside trial would submerge a bank of 1.5 million compressed tyres bound with nylon and concrete into a tangle of ropes six or seven metres high, 110 metres long and 60 metres wide. Placed up to 1,000 metres offshore, it would be tested for its stability, effects on local currents and pollution. If it worked, the full scheme could place more than a billion tyres in seven, two-kilometre long strips all the way up the coast. Humberside County Council accepts that such an ambitious project is unlikely to go ahead quickly – possibly not even this decade. In the meantime, the coast depends on smaller schemes under the supervision of Holderness Borough Council. The most recent, at the village of Mappleton, was opened with fanfares four years ago but, while it has saved the village, it has also caused resentment. Other villages say that it has accelerated the rate of erosion elsewhere by preventing the protective sand that drifts down the coast from reaching the beaches. It raised expectations that other schemes could be put in place, hopes the Government dashed in 1993 with a review of policy imposing new environmental and financial demands. The Department of the Environment is expected shortly to approve a controversial à ¯Ã‚ ¿Ã‚ ½4.5 million, 1,000-metre sea wall around the North Sea gas terminal run by BP and British Gas near Easington. A full plan, which would also have protected the village, was turned down by the department. Mr Robin Taylor, Holderness's director of development, said this appeared to be because under the new guidelines schemes had to prove not just â€Å"cost-beneficial† but to be in the national interest. Saving gas supplies probably was, saving villages not. Mr Ambrose Larkham, who owns the Easington Beach Caravan and Leisure Park, is demanding a public inquiry. â€Å"The ludicrous thing is it is almost as cheap to build 1,600 metres while the equipment's there as it is 1,000,† he said. Mr Taylor said: â€Å"The question of why we are protecting the terminals and not the people of the village is likely to become very controversial. The issue is whether we should be protecting multinational companies and not our own residents.† But Mr Geoffrey Twizell, terminal manager for British Gas and himself a resident, said: â€Å"We are happy to contribute to any scheme that meets everyone's aspirations. Nobody would be talking about any protection at all for Easington if it weren't for the gas terminals here.† Daily Telegraph 1.4.95 Essex drops its guard to let nature take its course By A J McIlroy A TACTICAL retreat could be the answer to coastal erosion on the Essex coast, Government engineers have decided. Contractors from the Ministry of Agriculture and English Nature yesterday lowered the sea wall to flood 21 hectares at Tollesbury Fleet on the Blackwater Estuary. The area is being restored to salt marshes intended to absorb the power of waves that have been pounding artificial sea defences. If the experiment succeeds it will be extended along the Blackwater and to other saltwater estuaries. Roy Hathaway, of the Ministry of Agriculture's flood and coastal defence division, said tracts of coastal marshes were lost when drainage engineers in the 17th and 18th Centuries built sea walls to reclaim land for farming. Now, as a result of the gradual rise in sea level, many of the hundreds of miles of sea wall are crumbling. These are costing millions of pounds to repair, a financial burden that is â€Å"becoming increasingly hard to justify†. He said that to encourage private landowners to accept coastal flooding, the Government had written a â€Å"saltmarsh option† into its set-aside programme, the European Union measure to take farmland out of production. In exchange for allowing their land to become inter-tidal again, farmers would receive à ¯Ã‚ ¿Ã‚ ½190 per hectare per year for grassland and à ¯Ã‚ ¿Ã‚ ½500 for arable land. The payments are guaranteed for 20 years. Mr Hathaway said the ministry was working with conservation groups to maximise the gain to wildlife by restoring the salt marshes. Daily Telegraph 5.8.95 SHORING UP THE COASTLINE By John Hodder THE PRETTY little Suffolk town of Woodbridge was snoozing under a cloudless sky, with a soft breeze taking the sting out of the sun. I gazed out over the placid surface of the River Deben. It was midday in midsummer and this was quiet, gentle England at its most benign – the sort of place, the sort of time that makes it hard to feel threatened by anything, let alone the forces of nature. Twenty-four hours later I was on the beach at Dunwich, 20 miles to the north. The conditions were not very different – the same blue sky and hot sun, cooled now by a rather more blustery wind coming off the sea. But here the threat felt very real – probably because here it is very real. Dunwich is at the mercy of the elements, as it has been down the centuries, and the cliffs just carry on crumbling. If the sea is left to its own devices over the next 70-odd years, the shoreline will retreat by about 200 metres. That, at least, is the experts'projection. Projections, of course, are not the same as firm predictions. But they underline what the problem is – in this case, chronic erosion. The first and obvious question is: â€Å"What can be done to stop it?† The second and much more taxing one is: â€Å"Should anything be done to stop it?† Neither question has an easy answer. If Dunwich is not simply to be abandoned to its fate, a difficult balance will have to be struck between its interest and those of its neighbours. Coastal protection is a tricky science. Nobody knows that better than Roy Stoddard. His title is senior engineer (coast protection) with the Suffolk Coastal District Council and it was to pick his brains that I had gone to Woodbridge. His job is to oversee the 30-mile stretch of coastline from Felixstowe to Southwold, an area whose sand and shingle beach is notoriously unstable when pounded by the waves of the North Sea. It has suffered grievously in a series of violent storms this century. The task of looking after it is now shared between the local authority and the National Rivers Authority (NRA), overseen by the Ministry of Agriculture, Fisheries and Food (MAFF). They work closely together and their common enemy is the sea. The approach to coastal protection has shifted significantly over the past 20 years. â€Å"‘Fight against the sea' was the message until the 1970s,† says Stoddard. â€Å"Now we are not trying to fight against it so much as to work with it, using its peculiar ways to destroy its own energy.† That shift in approach is reflected in marked changes in the sort of barriers now being erected to stem the apparently relentless advance of the waves. As a result, the traditional beach scene is changing. For example, the solid sea walls built behind the beach – and the wide promenades that have accompanied them since Victorian times – are now out of favour. Walls merely repel the waves: they do nothing to reduce their speed or power, which is now recognised as the key to the successful preservation of the shor e. Instead, efforts are being concentrated on protecting and building up the beaches themselves. Similarly, a profusion of timber groynes jutting out at right angles into the sea – the time-honoured means of defence and a common sight along this coast – is seen as far less effective than a few large, rock-based structures shaped like fish-tails. The old wooden ones are fine for leaning against while you have your lunch or sheltering behind on a cold, blowy day. But they are not good at sheltering the shore. The main problem with them -apart from their propensity to rot – is that they cannot be made long enough or deep enough to significantly slow down the incoming rush of water. Hence the move towards the new fish-tail variety. A series of these has been built at Clacton, 20 miles to the south of Stoddard's patch. He is now proposing to develop the concept further by building two similar groynes at Cobbolds Point in Felixstowe, using rock and concrete. Despite their size, which might be considered ugly and intrusive, few people dislike them, he says, and the arguments in their favour are compelling. By confronting the sea farther out they do much more to take the steam out of the waves before they reach the shore. And the farther out you go, the more shore you protect by creating two calm areas in the lee of the two wings of the â€Å"tail†. Thus you help to build up a long stretch of sheltered beach. â€Å"Fish-tailed groynes are many times the length of wooden groynes but you only need one about every kilometre rather than one every 20-30 metres,† says Stoddard. â€Å"As well as being more environmentally-friendly because they enable people to walk along the whole beach – something they couldn't do before, at least not without stepping over groynes every few yards. â€Å"They have another advantage over sea walls. If you build them and find they don't work as well as you'd like, you can pick them up and move them. You can't do that with a massive sea wall.† Stoddard sees the introduction of fish-tail groynes as a â€Å"soft-engineering solution† in contrast to the old â€Å"hard† solution of building walls, which is now seen as causing more difficulties than it solves. â€Å"The problem is that whenever you build a hard wall it is almost invariably accompanied by the beach levels falling. The sea is thrown back off the wall and drags the sand and shingle out. Sometimes the wall itself is undermined – you can shore it up but in time the same thing will happen again.† Solid walls are the most concrete (literally) expression of the view that you must at all costs protect the land against the sea. That view is now being challenged. â€Å"You have four options,† says Stoddard. â€Å"Do nothing, hold the line, advance or retreat. Ten years ago the general view was that everything that could be saved should be saved. Now people are far more aware that harsh decisions have to be made.† Such decisions have worrying implications for places like Dunwich. There, to stop the erosion, you would have to start building some form of protective structure along the beach: merely reinforcing the shingle bank is not enough to stop continuing inroads being made into the coast. So why the hesitation over doing something more effective about it? Simply this: the erosion of the cliffs at Dunwich has positive benefits for the beach immediately to the south at Sizewell. Dunwich's loss is thus Sizewell's gain: that is nature's way. It is a conundrum repeated all along the coast. â€Å"If you have got to save the cliffs at Dunwich, you've got to find alternative means of feeding the beach at Sizewell,† says Stoddard. â€Å"In the end, you have to say that there are some places you won't protect – and people have got to come to terms with that.† Such a hard-nosed attitude can stir up fierce emotions, not least because of the way it could affect both the people who live there now and those who would like to join them. Consequently, it has serious implications for local planners. Do you, for example, go on allowing people to build houses near the sea, thus continually extending the number of years that you have to go on protecting that particular bit of coast – probably at someone else's expense? Another issue arousing controversy is the question of compensation for landowners whose land is gobbled up by the sea. At the moment there is no provision for compensation – indeed, it was specifically excluded from the 1949 Coast Protection Act. But as Stoddard says: â€Å"How do you tell a farmer that his 500 acres of productive arable land would be far better as salt marsh? The question of compensation is going to have to be addressed very shortly.† The difficult questions roll in almost as relentlessly as the sea. I pondered them late at night as I walked the beach at Aldeburgh, with the wind strengthening from the north-east and the waves crashing on to the shingle. They were still nagging away later still, as I lay in bed listening to the roar on the shore just below my hotel window. The sound that had been so soothing in the summer sunshine had taken on a darker edge. Suddenly the forces of nature seemed far less benign. Leisurely progress coastal protection has developed piecemeal over the past 150 years, driven not so much by pure science as by the demand to fulfil social expectations. It was essentially that pressure which led to the widespread introduction of sea walls. From the mid-19th century wealthy Victorians sought the development of coastal resorts. To realise their leisurely ambitions, engineers were drafted in to build the walls and the promenades which went with them. Over the years it has become increasingly obvious that such a haphazard approach is unsatisfactory and that activity on one bit of the coast could have damaging effects on another. The need for greater planning and co-ordination, recognised in the 1949 Coast Protection Act, is now universally acknowledged: it will be reflected in the six new shoreline management plans that are being prepared for the whole of the east coast, from the Humber to the Thames. 26.8.95 From Compton's Complete Reference Collection Landforms that result from erosion, or wearing away of the land, make up some of the most scenic coastal areas in the world. Sea cliffs that border many rocky coasts are an example. These cliffs were created when pounding waves weakened the lower portion of the rock to the extent that parts of the cliffs above tumbled into the water, leaving a rock wall with rubble at the bottom. Solid rock shores that lack beaches are easily destroyed by the sea. Beaches consequently protect the shore. Sometimes groins (short piers that extend out into the sea from 30 to 200 meters, depending on the nature of the beach) are constructed to protect the shores from erosion. This has been done along the coasts of the Black Sea. In recent years, some beaches have been artificially restored with sand taken from the sea bottom or from nearby dunes. This has been done on many beaches in the United States and on the island of Norderney in the North Sea.