economy of bahrain

Bahrain has grown successfully over the past 10 years, due its liberal economic policies, and has a clear roadmap for improving the prosperity of all in society. The economy of Bahrain according to the index of economic freedom of 2006, is considered to be the most freedom in the middle east and occupies the twenty fifth rank in the world. The progress of its economy is because that the government of Bahrain wants to diversify the economy in order to reduce dependence on its oil which is decreasing yearly and because it encourages the foreign investment.

The economy of Bahrain is described as a modern economy with regular organization and has a distinctive communications and transport infrastructure, as well as , there are many international companies operating in the Gulf –States and have their headquarters in Bahrain .

Bahrain has expanded its heavy industries, banking sector and tourism, so that it is considered to be the main banking hub in the Gulf states and center for Islamic finance .This led to strong organizational structure for industry in Bahrain.

It has benefited from the boom of oil in 2001, that led to economic growth and succeeded to attract investments from Gulf States that contributed in developing infrastructure and other projects to improve the standard of living such as health, education, housing, electricity , water supply and roads .

The oil and natural gas are the main resources in Bahrain that form 60 % of its revenues. Other industries of Bahrain include aluminum and its related factories , and manufacturing and repairing of ships .Bahrain has made great strides in aspects of technology of information and development of programmes related to modern solutions for the age’s problems .
Tourism in Bahrain has flourished due to the large number of tourist sights that its root belong to ancient civilizations, in addition to modern sights , popular and gold markets .
The National Development Strategy is a regularly updated action-plan that will turn the Vision into reality, setting specific milestones in the public and private sectors including education and training, the economy, health and society.
Bahrain Economy Data
2011 2012 2013 2014 2015
Population (million) 1.1 1.2 1.2 1.2 1.2
GDP per capita (USD) 25,441 26,383 27,689 27,913 25,995
GDP (USD bn)
28.7 30.4 32.5 33.4 31.8
Economic Growth (GDP, annual variation in %)
2.1 3.4 5.4 4.5 2.9
Consumption (annual variation in %)
6.6 1.1 4.7 3.0 –
Investment (annual variation in %)
-35.1 27.5 -13.7 0.9 –
Unemployment Rate
4.0 3.9 4.3 4.1 4.2
Fiscal Balance (% of GDP)
-0.3 -2.0 -3.3 -3.6 –
Public Debt (% of GDP)
28.9 33.6 41.3 42.0 –
Money (annual variation in %)
3.4 4.1 8.2 6.5 –
Inflation Rate (CPI, annual variation in %)
-0.4 2.8 3.3 2.7 1.8
Policy Interest Rate (%)
0.50 0.50 0.50 0.50 0.75
Exchange Rate (vs USD)
0.38 0.38 0.38 0.38 0.38
Exchange Rate (vs USD, aop)
0.38 0.38 0.38 0.38 0.38
Current Account (% of GDP)
11.2 7.2 7.8 3.3 –
Current Account Balance (USD bn)
3.2 2.2 2.5 1.1 –
Trade Balance (USD billion)
7.5 6.5 7.3 7.4 –
Exports (USD billion)
19.6 19.7 20.9 20.7 –
Imports (USD billion)
12.1 13.2 13.6 13.3 –
Exports (annual variation in %)
44.0 0.6 5.9 -0.8 –
Imports (annual variation in %)
8.2 9.3 3.2 -2.5 –
International Reserves (USD)
4.5 5.2 5.3 5.2 –

Bahrain GDP
GDP at purchaser’s prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. The GDP in Bahrain was worth 32.22 billion US dollars in 2015. The GDP value of Bahrain represents 0.05 percent of the world economy. GDP in Bahrain averaged 12.01 USD Billion from 1980 until 2015, reaching an all time high of 33.85 USD Billion in 2014 and a record low of 3.05 USD Billion in 1986.
Date Value Change, %
2005 15.97
2006 18.5 15.88%
2007 21.73 17.43%
2008 25.71 18.32%
2009 22.93 -10.78%
2010 25.71 12.10%
2011 28.77 11.91%
2012 30.74 6.86%
2013 32.53 5.82%
2014 33.38 2.61%
2015 31.12 -6.78%

Bahrain – Real GDP growth
Annual percentage growth rate of GDP at market prices based on constant local currency. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.
Year Value Change, %
2005 6.8
2006 6.5 -4.46%
2007 8.3 28.25%
2008 6.2 -24.74%
2009 2.5 -59.29%
2010 4.3 70.68%
2011 2 -54.25%
2012 3.7 87.90%
2013 5.4 45.31%
2014 4.4 -19.68%
2015 2.9 -34.20%
2016 2.1 -26.58%

Bahrain – GDP per capita
GDP per capita is gross domestic product divided by midyear population. GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. GDP is expressed in current U.S. dollars per person. Data are derived by first converting GDP in national currency to U.S. dollars and then dividing it by total population.
Date Value Change, %
2005 17,962
2006 19,263 7.24%
2007 20,904 8.52%
2008 23,231 11.13%
2009 19,461 -16.23%
2010 20,823 7.00%
2011 24,075 15.62%
2012 25,221 4.76%
2013 26,166 3.75%
2014 26,322 0.59%
2015 24,058 -8.60%
2016 24,119 0.26%

Bahrain – CPI inflation
Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly. The Laspeyres formula is generally used. Data for inflation are averages for the year, not end-of-period data.
Date Value Change, %
2006 2 -22.04%
2007 3.3 59.33%
2008 3.5 8.64%
2009 2.8 -21.17%
2010 2 -29.26%
2011 -0.4 -118.78%
2012 2.8 -848.11%
2013 3.3 19.15%
2014 2.7 -19.62%
2015 1.8 -30.74%
2016 3.6 98.53%

The unemployment rate in Bahrain and other countries is defined as the number of unemployed people as percent of the labor force. The labor force includes the people who are either employed or unemployed, i.e. who don’t have a job but are actively looking for one. The labor force does not include people who are not looking for work, children, and the retired.

Unemployment Rate in Bahrain remained unchanged at 3.70 percent in December from 3.70 percent in November of 2012. Unemployment Rate in Bahrain averaged 4.18 percent from 2006 until 2012, reaching an all time high of 16 percent in December of 2006 and a record low of 3.30 percent in November of 2008.
Date Value Change, %
2007 5.6
2008 3.7 -33.93%
2009 4 8.11%
2010 3.6 -10.00%
2011 4 11.11%
2012 3.9 -2.50%
2013 4.4 11.82%
2014 4.2 -4.29%

Oil comprises 86% of Bahraini budget revenues, despite past efforts to diversify its economy and to build communication and transport facilities for multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf Countries. Low oil prices have generated a budget deficit of at least a $4 billion deficit in 2015, 13% of GDP. Bahrain has few options for covering this deficit, with meager foreign assets and a constrained borrowing ability, stemming in part from a sovereign debt rating averaging just above “junk” status.

Other major economic activities are production of aluminum – Bahrain’s second biggest export after oil – finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.

In 2011 Bahrain experienced economic setbacks as a result of domestic unrest driven by the majority Shia population, however, the economy recovered in 2012-15, partly as a result of improved tourism. In addition to addressing its current fiscal woes, Bahraini authorities face the long-term challenge of boosting Bahrain’s regional competitiveness—especially regarding industry, finance, and tourism—and reconciling revenue constraints with popular pressure to maintain generous state subsidies and a large public sector.

Appropriate for Terrorism






Absconder Apprehension Initiative: Appropriate for Terrorism?

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Absconder Apprehension Initiative: Appropriate for Terrorism?

The United States of America is often described as “a nation of immigrants. In fact, the United States has a proud tradition of accepting and welcoming in foreigners from around the world. This generous open door policy has allowed approximately thirty-five million foreigners (“nonimmigrants”) to visit the United States annually. Until recently, this massive flow of nonimmigrants into and out of the country progressed without much resistance from the United States’ immigration laws. That is, until September 11th arrived. The vicious acts of September 11th, have changed many aspects of the United States. Since that date, the United States has urgently endeavored to defuse the emerging threats of savage terrorists.

The U.S. Immigration and Naturalization Service (“INS”), an agency that was absorbed into the DHS, became a crucial player in our nation’s safety after September 11th when it developed several new programs aimed at protecting the United States from terrorism. These INS changes focused primarily on ways of monitoring individuals in order to identify and keep out potential terrorist. For example, the INS created the Student and Exchange Visitor Information System (“SEVIS”), which is responsible for maintaining accurate and current information on nonimmigrant students, exchange visitors, and their dependents. The INS also implemented the “Absconder Apprehension Initiative,” which locates, apprehends, interviews, and deports (removes) alien fugitives known as “absconders.”

US law enforcement authorities will expel about 1000 “dangerous” illegal immigrants, mainly from Pakistan and Middle East, which have been identified by officials as al Qaeda strongholds.   Under the “Absconder Apprehension Initiative”, the Justice Department and FBI would focus on about 6,000 immigrants, from countries identified as al-qaeda’s strongholds, out of which 1,000 would be deported next week.   The arrests will begin with the group of 1,000 illegal immigrants, mostly from the Middle East and Pakistan, “who are believed to be the most dangerous because they are convicted felons,” officials were quoted by the Washington Post as saying.   However, the majority of the absconders are from Latin America. According to estimates by the Immigration and Naturalization Service there are an estimated 314,000 foreign nationals, known as “absconders,” who have ignored court orders to leave the country.   The “Absconder Apprehension Initiative,” the paper said, is the latest example of the Justice Department’s wide-ranging efforts to thwart terrorism by increasing its focus on domestic intelligence gathering         (Aizenman & Hsu, 2007).

During the Bush administration it is estimated that nearly one million absconders left the country. Today, however, President Obama has introduced a number of amnesty policies that have lowered the numbers of those aliens expelled from the US, and more initiatives cutting expulsion are on the way (Edwards, 2012).

What does this mean for terrorism? The main question is whether or not the absconder initiative is appropriate for use as a tool to combat terrorism. Edwards (2002) has pointed out that since 1996, over 40% of those individuals facing deportation simply disappear; in 2007, Immigration and Customs Enforcement testified in congressional hearings that a full 90% of the aliens that have been released from detention never even show up to their immigration hearings. Ironically, when aliens are detained pending their final order to leave the country, 94% of them are deported. Compare the 94% deported when detained to the 11% that obey their orders of deportation when they have not been held in detention (Edwards, 2012).

Since Obama has become president, the program that allows local and state law enforcement to participate in extradition actions relating to illegal immigrants has been cut by 25%. The impact has been dramatic; local and state officers are very unlikely to receive assistance now if they call the federal government after findings a group of illegal aliens. The US-VISIT biometric program was intended to help identify terrorists who were entering the country (or leaving) by recording their biometric data and sharing it with local agencies. It too, has had its budget severely cut. Finally, the REAL ID act, which set the standards for new and improved identification standards for driver’s licenses and state IDs, was delayed for several years due to presidential interference. Given the number of illegal aliens already in the country, it is likely that the delay allowed many of them to attain IDs under the old standards, effectively legitimizing themselves.

The operational reality is that the policies of the Obama administration have resulted in the number of illegal aliens failing to decline. From a human rights perspective, perhaps allowing illegal aliens to remain in this country with their families and friends is a good thing. From the perspective of fighting terrorism, however, it is a very negative thing. Stumpf (2013) has suggested that in the last generation, criminal law and immigration law began to converge, resorting in what she calls ‘crimmigration’ law. Criminal and immigration law, she asserts, now overlaps in three important areas: the laws are becoming similar; enforcement of immigration law now resembles enforcement of criminal law, and the procedural safeguards now in place for immigration law are very similar to that of criminal law (Stumpf, 2013).

In considering the efficacy of the absconder program, consider that the federal Witness Security Program, known as the witness protection program, has stated that the number of individuals linked to terrorism in its program has been less than one percent. Sixty percent of the individuals recognized as terrorists were admitted into the program prior to 9/11. Since 2011 only two terrorists have been admitted. However, and this is a big however, the program also admits that at least two individuals that entered witness security and received new, clean IDs subsequently absconded. At that point, there were no available protections for the public; the government had handed these individuals new IDs, they were not on the no-fly list, and they took advantage of this fact. In 2012 the organization overseeing witness protection agreed that it needed stronger oversight (US Department of Justice, 2013). .

The absconder initiative is not working; its teeth have been removed. With funding for enforcement cut, and even the Department of Justice unable to keep track of the ‘less than one percent’ of its known terrorists, it is clear that the US either needs to refund protectionist initiatives, encourage cooperation between agencies, and keep violators locked up until expulsion, or allow them to remain in the US undetected while we hope for the best. This administration has opted for the latter. Let us hope that the next administration opts for tightened enforcement combined with liberal humanitarian applications, so that good people can remain in the US, but terrorists are not allowed to walk free.



Aizenman, N., & Hsu, S. (2007) US targeting immigrant ‘absconders’. Washington Post, May 5, 2007. Retrieved from

Bureau of Citizenship and Immigration Services, Student and Exchange Visitor Program, available at (last visited March 13, 2003).

Deputy Attorney General (2002) Memorandum, alien absconders. Retrieved from.,d.dmQ

Edwards, J. (2012) Obama budget makes radical cuts in immigration enforcement. Human Events, March 16, 2012. Retrieved from

Stanley Mailman & Stephen Yale-Loehr, Immigration in a Homeland Security Regime, 8 Bender’s Immigr. Bull. 1 (January 15, 2003).

Stumpf, J. (2013) The crimmigration crisis: Immigrants, crime, and sovereign power. In Dowling, J., & Inda, J. (eds.), Governing immigration through crime: A reader. Stanford: Stanford University Press.

US Department of Justice (2013) Interim report on the Department of Justice’s handling of known or suspected terrorists admitted into the federal Witness Security Program: Public summary. May, 2013. Retrieved from


The simple answer is most definitely.

Back in 2004, a major “immigrant rights” group decried the program. See their position here:

They really don’t lay out an argument, except for the strictly legal concept that the status of the fugitive has changed in becoming a fugitive. Their interpretation of the law states that an executive order of deportation is not legal. This would not be legal even if it came from a judge. I’m not sure how far this argument can go.

First of all, aliens do not have constitutional rights. This is assumed in the group’s report.

Second, the group does not bother to mention that this initiative is about aliens who have committed crimes.

Second of all, the concept here is that the criminal alien needs to be caught and deported before he flees. In other words, the criminal must face deportation as punishment and cannot be allowed to escape. The under-staffing of this office years ago made this a common occurrence.


Third, the memorandum below strictly states that aliens who are sick, pregnant or the only source of income for the household are not to be arrested (except when convicted of a crime) and deported. In the memorandum below, we read:


“Absent extraordinary circumstances, team members should not detain aliens who are physically or mentally ill, disabled, elderly, pregnant, nursing or the sole caretaker(s) of the children or the infirm.” In addition, the memorandum also stipulates that “[t]eams will receive fourth amendment training every six months which will focus on the special considerations when apprehending fugitives from their home” (page 3).


Therefore, the due process and other moral concerns of immigrant rights groups are unfounded.


Look here:


There are three tiers to the prioritization of fugitives:


1. Those who post a threat to national security and those having committed a crime while on US soil (apart from being here illegally).

2. Those who have committed a crime, including coming back into the US after being deported.

3. Those who threaten the safety of localities and communities.


Nothing here seems unreasonable. As of 2007, the assessment of the program is somewhat negative. In the first source I use above, the authors mention that the program remains underfunded, has few usable detention centers, and still maintains a huge backlog of cases. Even more, the 7-man teams assigned to specific cases are being used by Homeland Security for operations outside of their job.


So from this point of view, the program has been a failure. Yet, it is not the fault of the program, but the fault of a government that is unwilling to secure its borders. What’s happening here is that the absolute minimum of immigration enforcement – the removal of dangerous people – is not a priority.







Credibility in immigration policy, as the late Texas congresswoman Barbara Jordan remarked, rests on three simple principles: “People who should get in, get in; people who should not enter are kept out; and people who are deportable should be required to leave.”1


After September 11, the speedy detention of some 1,200 aliens suspected of terrorist ties gave the illusion of competence in this last crucial area of immigration enforcement. Although civil-liberties advocates and Arab-American activists immediately attacked the swift ruthlessness of INS and the Justice Department,2 the obstacles to actually getting rid of unwanted guests are myriad. The system is clogged by conflicting statutes, incomprehensible administrative regulations, bureaucratic and judicial fiefdoms, selective enforcement, and a feeding frenzy of obstructionist immigration lawyers.


It is a climate which continues to favor aliens’ rights over citizens’ safety.


Cons and Absconder

Government watchdogs have found the INS to be habitually lax in its efforts to track down and help boot out the worst criminal offenders among the alien population. A number of federal laws require the agency to initiate deportation actions against aliens convicted of aggravated felonies as quickly as possible and before they are released from federal or state prisons.3 Congress increased funding and staffing for a Justice Department program to speed up this process. Yet, thousands of criminal aliens have been released into the public after serving their sentences because of the INS’s failure to screen and send them into deportation hearings. This failure both endangers the public and is costly. If INS had completed proceedings for all deportable criminal aliens released from federal and state prisons in 1995 before their release, it could have avoided nearly $63 million in detention costs.4


Meanwhile, untold hundreds of thousands of “absconders” are roaming the country — illegal alien fugitives who have been ordered deported by immigration judges but who continue to evade the law. In December 2001, INS Commissioner James Ziglar revealed for the first time under oath that the INS did not know the whereabouts of “about 314,000″ fugitive deportees. Only then did Justice Department officials move, for the first time ever, to place their names in the FBI’s National Crime Information Center database.5


The absconder statistics remain in dispute after the agency conceded to reporters from Washington, D.C.-based Human Events newspaper that it could not vouch for the accuracy of the number. Some, including Representative George Gekas, a Pennsylvania Republican who chairs the House immigration subcommittee, believe the actual number could run as high as one million.6 This much remains indisputable: All of these fugitives have been ordered out of the country by an immigration judge. They were either deported in absentia or sentenced in a courtroom and then released on their own recognizance pending final deportation, only to disappear back into the woodwork.


In January 2002, the Justice Department unveiled the “Absconder Apprehension Initiative.” The government said it would finally begin ejecting fugitive deportees, beginning with about 1,000 immigrants from Middle Eastern countries who had been convicted of felonies in the United States. But after announcing the new campaign to round up these alien evaders, the INS admitted it would take at least a year to enter all their names in the FBI criminal database — and that the new system would probably enable the INS to locate just 10 percent of the missing deportees.7


Staff shortages also hamper the ambitious absconder apprehension effort. In May 2002, several agents and supervisors told The New York Times that the INS office in New York could barely handle the added function. The employees noted “that only 14 federal immigration agents and nine police investigators are assigned to find and deport roughly 1,200 illegal immigrants who came from countries where Al Qaeda has been active…After three months, fewer than 150 have been arrested.”8 By the end of May 2002, the Justice Department admitted that only 585 absconders out of 314,000 had been located. Not a single terrorist has been caught.9


In the meantime, the INS continues to entrust tens of thousands of ordered deportees to leave on an honor system, sending them notices asking them to turn themselves in. Laughed at around the world, the INS notices are known as “run letters” among illegal aliens.10


Even if the INS tracked down every last one of the absconders, there would be no place to detain them. Detention space has been sorely misallocated and misused. Nearly $30 million earmarked for building new state-of-the-art detention facilities in San Francisco, for example, was diverted to speed up processing of citizenship applications.11 Currently, the agency has only about 20,000 beds, at a time when as many as 200,000 aliens are ordered deported each year.12


Into the Legal Abyss

While the INS receives much-deserved flack for the deportation quagmire, a large portion of the blame lies with the independent agency in charge of the nation’s immigration courts, the Executive Office for Immigration Review (EOIR), and its appellate body, the Board of Immigration Appeals (BIA), which thrive on making the deportation process as time-consuming and unwieldy as possible. Together, these two independent agencies — separate from the INS, but also housed under the Justice Department — hold the ultimate keys to deportation. While the INS has responsibility for apprehending and bringing immigration charges against aliens, it is the little-known EOIR that has jurisdiction over the nationwide Immigration Courts and their companion appeals system. More than 200 immigration judges preside in 52 courts across the country. They oversee removal proceedings, as well as bond re-determination hearings, in which the judges can reduce the bond imposed by the INS for aliens in custody who seek release on their own recognizance before final deportation.13


The BIA’s 20-odd members, based in Falls Church, Va., are politically-appointed bureaucrats who have the power to overturn deportation orders nationwide. The panel — comprised largely of alien-friendly advocates from immigration-law circles — receives more than 30,000 appeals every year, and has a backlog of 56,000 cases, of which 34,000 are more than one year old, 10,000 are more than three years old, and some are more than seven years old.14 There’s even a saying among immigration insiders in Washington about the deportation process: “It ain’t over ’til the alien wins.”


One Justice Department employee who runs an independent web site on the deportation morass observes:



Between the incompetence of the INS, the complete lack of alien detention center space, and the bureaucracy of the EOIR, our system for deporting known illegal aliens and criminal alien residents is a sad joke. But no one is laughing. If all of the illegal aliens and deportable resident alien criminals were rounded up tomorrow, the system would not be capable of handling them. It would be an absolute disaster. The INS and the EOIR wouldn’t have the foggiest idea of what to do with them! The aliens would all be released back out on the street on immigration bonds and go back right where they were as if nothing happened, while their cases would grind on through the system of Immigration Court hearings and endless appeals.15



EOIR director Kevin Rooney summarized the plethora of appeal options available to all aliens — even criminal aliens — in his February 2002 testimony to Congress: “Even if an alien is removable, he or she may file an application for relief from removal, such as asylum, voluntary departure, suspension of deportation, cancellation of removal, adjustment of status, registry or a waiver of inadmissibility.”16 What does all this bureaucratic jargon spell? Delay, delay, delay. Each of the loopholes enumerated by Rooney is written into the Immigration and Nationality Act. If an alien loses a BIA judgment, he can then seek relief in the federal circuit courts of appeal.


While most Americans are unaware of these dirty little secrets, the legal tricks for evading the flimsy immigration dragnet are well known among the immigrant population. An internet search of the phrase “how to avoid deportation” yields thousands of hits, including this one from a web site called (which “delivers real world solutions to people facing serious legal and financial trouble”):



Relief from deportation


There may be a way to avoid deportation, even if a person has a criminal record. The law provides relief for:


1) long term permanent residents who have not been convicted of certain serious felonies;


2) persons who have been in the United States for a long period of time and can show that being forced to leave would cause serious hardship to their family members who are United States citizens or permanent residents;


3) persons who [claim they] would be subject to torture or other physical harm if they were returned to certain countries;


4) persons who [claim they] would be subject to persecution on account of political opinion, race, national origin, or membership in a particular social group; or


5) in some limited situations, persons who are married to United States citizens or can qualify for permanent resident status.


The special circumstances that might allow a person to avoid removal are highly technical. An experienced immigration attorney should be consulted.17


The web site provides a helpful directory of immigration lawyers in all 50 states to assist the troubled alien in need of “relief.” These loopholes have been exploited by countless convicted aliens jailed for crimes ranging from drunk driving to baby-killing.


Here’s just a small sample of the criminal aliens let off the deportation hook:


• Citing “severe emotional hardship” to her family and American-born children, a three-member panel of the board halted the deportation of Haitian nanny Melanie Beaucejour Jean. She had been convicted in upstate New York of killing an 18-month-old baby in her care. “I hit him two or three times with my fist on the top of his head. I did this to stop him from crying. It did not work,” she told Monroe County, New York, investigators. “I do not know how long I shook the baby, but I did not stop until he was unconscious,” her police statement said. At the request of the INS, immigration judge Phillip J. Montante Jr. ordered her deported back to her native land more than two years ago. But thanks to a trio of pro-alien, Janet Reno-installed bureaucrats, Beaucejour Jean continued to enjoy life in America.19

Cecilia Espenoza, Lory D. Rosenberg, and Gustavo Villageliu — all appointed to the Board of Immigration Appeals by Clinton Attorney General Janet Reno — concluded that Jean’s crime “does not constitute a crime of violence” and is not an aggravated felony subject to deportation guidelines. Legal analyst Beverley Lumpkin noted in her ABC News online column that Espenoza and Rosenberg are known as “reflexive advocates for aliens who just don’t care about the facts of a case.” Espenoza’s left-wing roots are so deeply ingrained that she named her son after Marxist guerilla Che Guevara.20


In May 2002, Attorney General John Ashcroft announced a rare reversal of the immigration board’s decision. “Aliens arriving at our shores must understand that residency in the United States is a privilege, not a right,” Ashcroft wrote. “For those aliens … who engage in violent criminal acts during their stay here, this country will not offer its embrace.”21 Tough words. But they’re not invoked frequently enough.




• Min Song was a Korean national convicted of theft as an 18-year-old in 1992. He was sentenced to a year in prison for the aggravated felony, which was a deportable crime. To avoid removal from the country, however, Song persuaded a judge to trim the sentence from a year to 360 days. At less than a year, the suspended sentence was no longer grounds for automatic deportation. The immigration appeals board accepted the sleight of hand and allowed Song to stay in the country.22 The decision paves the way for convicted aggravated felons of all kinds to pressure sympathetic judges to modify their sentences and avoid deportation.

“It’s a great pro-alien, pro-immigrant decision because there’s been a lot of setbacks for criminal aliens,” crowed John T. Riely, Song’s lawyer.




• Fernando Alfonso Torres-Varela, a Mexican national, was convicted of drunk driving three times. He knowingly drove while intoxicated and knew that he was driving with a suspended or revoked license. The INS sought to deport him for committing a crime of moral turpitude. He appealed to the BIA. Despite holding in the past that a crime of moral turpitude involved conduct “that is contrary to the accepted rules of morality and the duties owed between persons or to society in general,” the board concluded that Torres-Varela’s serial drunk driving did not qualify as such a crime. INS’s request to deport Torres-Varela was denied.24



• Stephanie Short, a German national, was convicted of encouraging her 3-year-old daughter to submit to sexual assault at the hands of her stepfather. He was convicted of sexual offenses; she was convicted of aiding and abetting the assault of a minor with the intent to commit a felony. She served three years of an eight-year sentence and was released on parole. The INS sought Short’s deportation based on her conviction for a crime of moral turpitude (in other words, a crime that is inherently base, vile, or depraved). An immigration judge supported the move. Short appealed to the BIA. In a mind-boggling decision, the board determined that it “was inappropriate to consider the husband’s conviction record for purposes of determining the underlying crime of which the respondent was convicted of aiding and abetting.”25

In other words: It was wrong for the judge to consider the fact that Short’s husband raped her daughter with her approval. “As the Board no longer holds that an assault with intent to commit any felony necessarily constitutes a crime involving moral turpitude without regard to the nature of the underlying felony,” the convoluted decision stated, “the (Immigration) Service has not established that the respondent was in fact convicted of a crime involving moral turpitude where it failed to establish the underlying felony that was intended.”26


In an outraged column blasting the ruling, the late Chicago Tribune columnist Mike Royko wrote: “We actually pay taxes for that kind of gibberish. Here we have a woman who, at one point in the original FBI investigation, confessed to a crime of moral turpitude. She was found guilty of aiding and abetting a crime of moral turpitude. She spent three years in prison for joining in on the moral turpitude. My guess is that even creeps like John Gacy, Richard Speck and Jack the Ripper would agree it was a crime of moral turpitude.”27



For the word-twisters and definition-stretchers at the BIA, such “gibberish” upholding the rights of baby-killers, burglars, habitual drunk drivers, and accessories to child rape is par for the course. Attorney General Ashcroft shouldn’t be forced to spend his time undoing this superfluous board’s idiotic — and treacherous — rulings one by one. The board should be abolished. The last thing we need as we wage our war on terrorism are entrenched, unelected sympathizers in the courts who put alien rights over American lives.


Catch and Release

The most dangerous loophole exploited by aliens seeking relief from the EOIR and BIA is the voluntary departure option. Intended as a cost-saving measure to streamline the deportation process, voluntary departure allows aliens to enter into an agreement to leave the United States on their own volition and to avoid the consequences of a formal order of removal (such as being barred from re-entering the country for 10 years). This frees the alien to leave and attempt to re-enter legally, leave and enter illegally, or violate the agreement and continue to stay here illegally. Guess which option most aliens are likely to choose?


The 1996 Illegal Immigration Reform and Immigrant Responsibility Act passed some new restrictions on the policy, including stricter time limits, increased civil penalties, and added eligibility criteria. Aggravated felons and terrorists are not supposed to be eligible, but in 1999, the Justice Department’s Inspector General warned: “INS does not know which illegal aliens granted voluntary departure by immigration judges have left the United States because the process for verifying departures is flawed.” There is no tracking system. “Immigration judges and INS trial attorneys are not required to provide information or instructions to aliens about how to verify their departure, nor did we witness them do so in our courtroom observations. In most cases, INS has no further contact with the alien after the immigration judge issues the voluntary departure order.”28 Therein lies the recipe for absconders run amok.


The Inspector General’s report also noted that immigration judges “inappropriately grant voluntary departure to some aggravated felons” because both the courts and the INS fail to conduct adequate criminal history checks on illegal aliens before letting them go.29 In response to persistent charges that criminal checks were not being done on aliens placed in removal proceedings even after September 11, INS Executive Associate Commissioner for the Field Operations Office Michael Pearson issued a memo on December 20, 2001, to “clarify” that such checks should be done prior to release from INS custody.30 How reassuring.


This “catch and release” process continues to frustrate INS agents on the front lines. Senior Border Patrol agent Mark Hall, whose union represents officers who patrol the United States-Canadian border in Michigan and Ohio, told Congress in November 2001: “When illegal aliens are released, we send a disturbing message. The aliens quickly pass on the word about how easy it is to enter this country illegally and remain here. This practice is devastating to our sound border enforcement strategy.”31


What to Do

The highest-priced, most sophisticated home security system will be ineffective if police don’t come and take away the thieves who manage to break in. The same holds true for homeland security. Tight locks and screen doors are important, but the United States must also develop an effective system of detention and deportation to rid our collective home of uninvited guests — and keep them out.


Illegal aliens who have been ordered deported must not be allowed to run free. The voluntary departure option is an escape hatch that must be eliminated. This policy benefits no one but the aliens who eagerly volunteer to abuse our deportation system’s undeserved trust. Congress should amend the Immigration and Nationality Act to eliminate voluntary departure as an option during removal proceedings before an immigration judge.


Moreover, federal law mandates that criminal aliens who re-enter the United States after deportation face up to 20 years in jail. Yet, the law is applied only sporadically by United States Attorney’s Offices.


Increased enforcement, of course, cannot succeed without greatly expanding the INS’s current 20,000-bed detention capacity. Even when deportation absconders are tracked down, they are often let go because there’s nowhere to put them. One official of a bonding company said the INS was freeing 50 percent of the aliens he had been ordered to track down and turn in since September 11.32 California Representative Elton Gallegly’s proposal from 1995 to convert closed military bases to illegal alien detention facilities should be dusted off and put into action immediately.


Finally, Attorney General John Ashcroft should abolish the Executive Office for Immigration Review and the Board of Immigration Appeals and transfer their functions to existing law enforcement officers within the immigration bureaucracy. The alien lawyer lobby claims that any streamlining of the deportation bureaucracy poses a “threat to the integrity of the immigration process.”33 Nonsense. Restoring integrity to the immigration process will require closing the loopholes and black holes into which so many fugitive absconders, criminal aliens, and unwelcome guests have disappeared.


“Due process” for illegal aliens has for too long resulted in too many endless delays — and too many interminable stays.

End Notes

1 Prepared statement of Barbara Jordan, Chairwoman of the United States Commission on Immigration Reform, Before the Subcommittee on Immigration and Refugee Affairs, Judiciary Committee, United States Senate, August 3, 1994.

2 Larry Keller, “As United States seeks to root out terrorists, foreign residents who may have run afoul of immigration laws fear they’ll fall prey to the hunt.” Palm Beach Daily Business Review, October 5, 2001: A13.

3 See the Immigration Reform and Control Act (Public Law 99-603); the Anti-Drug Abuse Act of 1988 (Public Law 100-690); the Antiterrorism and Effective Death Penalty Act of 1996 (Public Law 104-132); and the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (Public Law 104-208).

4 General Accounting Office, Criminal Aliens: INS’ Efforts to Identify and Remove Imprisoned Aliens Need to be Improved. Statement of Norman J. Rankin, Director, Administration of Justice Issues, General Government Division.

Available from

5 Suzanne Gamboa, “Names of missing foreigners ordered deported to be entered in crime database,” Associated Press, December 5, 2001.

6 Joseph D’Agostino, “INS lowballed deportation evaders,” Human Events, March 18, 2002.


7 Mary Beth Sheridan, “INS seeks law enforcement aid in crackdown; move targets 300,000 foreign nationals living in united states despite deportation orders.” Washington Post, December 6, 2001: A25

8 William K. Rashbaum, “I.N.S. agents say staffing shortage is undercutting counterterrorism,” New York Times, May 20, 2002: B1.

9 Dan Eggen, “U.S. search finds 585 deportee ‘absconders’,” Washington Post, May 30, 2002: A7.

10 Dan Eggen and Cheryl W. Thompson, “United States seeks thousands of fugitive deportees; Middle Eastern men are focus of search,” Washington Post, January 8, 2002: A01.

11 Valerie Alvord, “INS unprepared to handle the nation’s fastest growing prison population,” Copley News Service, February 5, 1999.

12 Greg Gordon, “Borders far from secure,” op cit.

13 EOIR web site available at; internet: accessed April 20, 2002; information about BIA available at; internet: accessed April 20, 2002.

14 Kevin Murphy, “United States overhauls immigration court system to speed deportation,” Kansas City Star, February 7, 2002.

15 Juan Mann, “It’s the fraud, stupid!”

Available at

16 Statement Of Kevin D. Rooney, Director, Executive Office For Immigration Review, House Committee on the Judiciary, Subcommittee On Immigration And Claims, Oversight Hearing, February 6, 2002. Available at


17 Available at

18 Jerry Seper, “Ashcroft reviews overturned deportation,” Washington Times. December 19, 2001: A4.

19 Ibid. See also: Seper, Jerry. “Appeals panel, judge differ on fate of nanny; Deportation ordered twice for convicted baby-killer,” Washington Times. December 10, 2001: A7.

20 Beverley Lumpkin, “Board of Immigration Radicals,” August 24, 2001.

Available from

21 Ted Bridis, “Ashcroft orders Haitian mom deported,” Associated Press, May 8, 2002.

22 23 I&N Dec. 173 (BIA 2001).

Available from

23 Julia Malone, “Federal review board charts new course for criminal aliens,” Cox News Service, January 6, 2002.

24 23 I&N Dec. 78 (BIA 2001).

Available from

25 Interim Decision: #3125: Matter of Short, A-38827315, Board of Immigration Appeals, 16 November 1989: Volume 20 (page 136).

Available from

26 Ibid.

27 Mike Royko, “Legal babble OKs travesty of justice,” Chicago Tribune, November 22, 1989.


28 United States Department of Justice Office of the Inspector General, Inspections Division, “Voluntary Departure: Ineffective enforcement and lack of sufficient controls hamper the process,” Report Number I-99-09, March 1999.

Available from

29 Ibid.

30 Memorandum for Regional Directors from Michael A. Pearson on Criminal Indices Checks, December 20, 2001.

31 Testimony Of Mark Hall before the Permanent Investigations Subcommittee, Senate Government Affairs Committee, November 13, 2001.

32 Vincent Smith, President of Capital Bonding Corp., interview with CBS News, May 28, 2002. Available from

33 T. Alexander Aleinikoff and David A. Martin, “Ashcroft’s Immigration Threat,” Washington Post, February 26, 2002: A21.

Michelle Malkin is a nationally syndicated columnist and a Fox News Channel commentator. This Backgrounder is adapted from her new book, Invasion: How America Still Welcomes Terrorists, Criminals, and Other Foreign Menaces to Our Shores (Regency 2002).



Determine the impact of

Determine the impact of economics on business.


The impact of economics on business can be significant.  There are several factors that drive the economics of any business.  Spending appears to be the primary driver.  If people can’t spend or consume goods or services, it begins to have a ripple effect throughout the economy.


There are many factors that impact why someone does not spend as much; loss of income, increase of expense or fear of both.  When one or more of these factors take place businesses are impacted and then begin to cut back as well.  (Capoloa, 2011) states,  “Some surveys have shown that owners are less willing than in previous years to expand their small businesses, to hire addi­tional workers, to invest in new plant and equipment, or to borrow money”(p15).  The bottom line as he states, “Consumption accounts for 70 percent of overall output. Less spending has real effects in the overall economy.”  When people stop spending and businesses stop expanding it has a rippling effect on the micro and macro economy.


Another factor that impacts a business is inflation or costs increasing.  As inflation starts to take hold and costs begin to raise it affects both the consumer and the business owner.  Electricity, heating, gas, healthcare are fixed costs that people and businesses need but have very little direct control over.  If these fixed costs raise it affects the ability for the consumer to spend or the business to hold prices.








Capola, J. (2011, Jan). Economic Impacts to Business, Inc Magazine, (Jan), 15-37


State of Confusion

State of Confusion

“The state of Confusion enacted a statute requiring all trucks and towing trailers that use its highways to use a B-type truck hitch. This hitch is manufactured by only one manufacturer in Confusion. The result of this statute is that any trucker who wants to drive through Confusion must stop and have the new hitch installed, or drive around Confusion. The federal government has not made any attempt to regulate the truck hitches used on the nation’s highways. Tanya Trucker, who owns a trucking company in the state of Denial, is not happy about the additional expense this statute imposes on her business. She intends to file suit against Confusion to overturn the statute” (University of Phoenix, 2011, p. 2). This essay will describe which court will have jurisdiction over Tanya’s suit, whether or not the Confusion statute is constitutional, and the provisions of the U.S. Constitution that will be applied by a court to determine the validity of the statute. This essay will also determine whether Tanya will be able to prevail on her suit, as well as providing details of the stages of a civil suit (University of Phoenix, 2011).

A Federal District Court would have jurisdiction over this suit because this case presents a federal question. The district courts will have all original jurisdictions of all civil actions that arise under the Constitution, laws, or treaties of the United States. The statute of Confusion imposes a burden for interstate commerce which violates the commerce clause of the U.S. Constitution, that the Congress has the power to regulate commerce with foreign nations. Because the state of Confusion is violating this clause, they are not acting constitutionally (Cheeseman, 2010).

With the only manufacturer of the new hitch being in the state of Confusion, this poses a huge problem for any truckers that do not have the necessary hitch. Truckers are on tight schedules to make it to their destination in a certain amount of time. When they will either need to travel completely around Confusion or stop within Confusion to have the new hitch installed, this will take much time added to their schedule either causing them to have to leave early or miss a deadline. However, if the court has seen this statute to be a regulation of interstate commerce itself, it is considered to be a direct burden on interstate commerce and impermissible; where as if the court sees it as anything besides a regulation of interstate commerce, it will be considered to only affect interstate commerce or impose only an indirect burden which can be maintained by the police force of Confusion. The courts are the only ones that can decide whether or not this statute is an indirect or direct burden (Cheeseman, 2010).

Tanya can absolutely sue the state of Confusion in a Federal court held within Confusion for a declaratory judgment that the state regulations are in violation of the commerce clause; therefore making them invalid to imposing an undue burden on interstate commerce. With the only B-type truck hitch only being manufactured in Confusion, it will be difficult to have truckers enter Confusion to have the new hitch installed; this act alone will be in violation of this new law as soon as they enter the state. In order, for this to be avoided Tanya would have to purchase these hitches from Confusion and have her mechanic in the state of Denial install them before any truckers go through Confusion during their trip. Again, this act alone will be very costly for Tanya and her company (Cheeseman, 2010).

There are six stages included in a civil suit. Bosco (2011) “Stage one: Pleadings. The first step involves one party filing a complaint in the pleadings stage. This may include: A complaint in which the plaintiff bringing the suit must set forth the facts supporting the claims and state the causes of action. Stage two: Discovery. After the pleadings, the lawsuit enters the discovery stage. Usually discovery entails: Depositions, where the parties can depose under oath the other party before the trial. Interrogatories, which involve each party, can ask written questions of the other party prior to trial. Stage three: Motions. A motion is basically a request or an application to a court asking for a ruling. There are many different types that can occur in a civil lawsuit, including a motion: To dismiss the case outright before answering the complaint; to compel, usually when a party is not providing documentary evidence or required information. Stage four: Pre-Trial. After the discovery stage, the parties must prepare for trial. This is very time consuming because in order to be well prepared for a trial, each party must develop its case and defenses. This includes crafting opening and closing statements, preparing direct and cross examinations, providing jury instructions to the court and getting the witnesses ready to testify. Stage five: Trial. A trial is usually based on the specific facts supporting a money damage or equitable relief claim. The trial could be a jury trial, or a non-jury trial. Stage six: Post-Trial. If the trial is a “bench trial,” in which a judge hears the case, the judge may request each party to submit a post-trial memorandum or brief. These documents set forth the cases so the judge can review the positions of each party before making a decision. After the judge or jury reaches a decision, the losing party can attempt to appeal or vacate the decision. In conclusion, the stages of a civil lawsuit are generally complex and can involve cumbersome tasks. Depending on the case and the parties involved in the action, many lawsuits can be extremely expensive and take years to complete. Attempting settlement may save you money and time, and most importantly, peace of mind” (The six stages of a civil lawsuit).

With all these implications of a civil suit, Tanya will spend a lot of money being a small trucking company in Denial trying to sue the state of Confusion. She needs to consider the costs of both purchasing and installing the new hitches on the trucks, and having her truckers drive around the state completely. As opposed to the time, money, and effort she will be spending to sue the state of Confusion.



Bosco, D. (2011). Bosco Law Firm, LLC. Retrieved from

Cheeseman, H. R. (2010). The legal environment of business and online commerce: Business ethics, e-commerce, regulatory, and international issues. (6th ed.) Upper Saddle River, NJ: Pearson Prentice Hall.

University of Phoenix. (2011). Syllabus. Retrieved from University of Phoenix, BUS415 website.



John wants prayer in

John wants prayer in school, and Mary does not. Describe a compromise position you think John and Mary might agree on, and identify any problems that position might encounter.


This summary will show

Economic Terms and Health Care History

This summary will show the history and evolution of health care economics. The readers will also get a timeline of health care funding. Once you have read everything the summary shows you then you will have an insight to economical terms can help to understand the history and the timeline the terms are going to be: Economics, supply and demand, microeconomics, macroeconomics, elasticity, inelasticity, and gross domestic product. With these words this will show you about economics in the health care history.

Once the American Medical Association (AMA) was founded healthcare was just getting off the ground with hospitals and doctors (American Medical Association, 2011). During this time doctors would see patients on a bartering system. The doctors at this time would make house calls and for the services they gave to the patients the patient at this time would give the doctor goods. The supply and demand at that time would be food, and anything that the people would not have. During this time they would pay with cooked meals, animals, things that they made, and their time such as working for the doctor however he wanted them to.

During the time frame of 1901 to 1940’s healthcare and medicine took made great improvement. Medicine and hospitals became very important at this time. President Truman proposed a national health care plan, but it was shot out of the water by both the AMA and Congress (American Medical Association, 2011). American Association for Labor Legislation (AALL) organizes first national conference on “social insurance” (Health Care Crisis, 2000). In 1930 the social security act was passed so at that time they omitted the health insurance. During this time Blue Cross Blue Shield decided that they would offer private insurance for hospitals in a dozen states.

Over the past fifty years, we’ve seen health care costs continue to rise to the point that some low-income families and the elderly are unable to get medical treatment. Decentralization of the hospital care system has prompted private companies to enter the health care industry. The 21st Century ushered in the biggest “can of worms” our health care system had ever seen!

As time has gone on the economics of health care have changed just as much. The supply and demand of health care and the products that are used in today economics the demand for health care is great. More people are becoming sick and need the treatment from the hospitals and doctors. Health care is accounts for about one-sixth of the entire economy, which is more than any other industry. In 2009 the health care total spending was around $2.5 trillion, with the most of that gross domestic product being about 18% – a measure of the value of all goods and services produced in the United States (USA Today, 2009). “At that time it had a high increase of nearly 14% of gross domestic product in 2000 and a 5% increase in 1960, this health spending totaled just about $27.5 billion- barley a 1% of today’s level, according to the Kaiser Family Foundation, a nonpartisan health policy group (USA Today, 2009).”

Today the supply and demand of health care is big compared to what it might have been back when health care started. We have more people today that have no insurance. Today there is more than 47 million people without insurance. With this a problem it has caused a big issue for people who need treated for health care and cannot afford the medical care.

The problem is that we have such a high demand for the health care that the elasticity for the price is not what everyone needs. The price for health care is so high that it causes people to go get treated and not pay for the treatment that they receive in a emergency visits. With the prices not decreasing this has caused the inelasticity problem for the changes that are needed to happen in this world today for those people who need the healthcare.

Over the last ten years, several government officials have lobbied for a nationalized health care system, and finally on March 23, 2010, the Affordable Care Act became law. The idea is to revolutionize the health care industry, cut down on insurance fraud, make sure everyone is able to get medical services and insurance, and bring down health care costs. All this is supposed to be accomplished by 2014 (, 2010). With the Affordable Care Act this will help the microeconomics buy fixing the insurance rate problem, giving the demand to those who need the health care and supplying those with the jobs that are needed.

With macroeconomics this will help to get the supply and demand of healthcare to other countries that are in need of health care. This has become a big thing for doctors to do are to give their services to countries that need healthcare and do not have any or very little care at all.

The goal is to improve the delivery of medical services, fund innovative and cost-effective medical procedures, cut the costs of health insurance, improve the nation’s health through prevention and better nutrition, and eliminate graft and corruption in the health care industry while raising it to a level that’s consistent with the rest of the world. Economics plays a big part of health care from patient care to hospitals and everything else in between.


American Medical Association. (2011). History. Retrieved from

Getzen, T. E., & Moore, J. (2007). Health Care Economics. Hoboken, NJ: John Wiley & Sons.

Health Care Crisis. (2000). Retrieved from (2010). The Health Care Law & You. Retrieved from

USA Today. (2009). Why health care’s economic impact matters.. Retrieved from



Economic Terms

Economic Terms and Health Care History This summary will show the history and evolution of health
care economics. The readers will also acquire a timeline of health care funding. Once you have
read everything the summary shows you then you will have an insight to economical terms can
help to understand the history and the timeline the terms are going to be: Economics, supply and
authoritatively mandate, microeconomics, macroeconomics, elasticity, inelasticity, and gross domestic
product. With these words this will show you about economics in the health care history. Once the
American Medical Association (AMA) was founded healthcare was just getting off the ground with
hospitals and medicos (American Medical Association, 2011). During this time medicos would visually
perceive patients on a bartering system. The medicos at this time would make house calls and for the
accommodations they gave to the patients the patient at this time would give the medico goods. The
supply and authoritatively mandate at that time would be food, and anything that the people would
not have. During this time they would pay with cooked repasts, animals, things that they made, and
their time such as working for the medico however he wanted them to. During the time frame of 1901
to 1940’s healthcare and medicine took made great amelioration. Medicine and hospitals became
very important at this time. President Truman proposed a national health care plan, but it was shot
out of the dihydrogen monoxide by both the AMA and Congress (American Medical Association,
2011). American Association for Labor Legislation (AALL) organizes first national conference on “social
insurance” (Health Care Crisis, 2000). In 1930 the social security act was passed so at that time they
omitted the health insurance. During this time Blue Cross Blue Shield decided that they would offer
private insurance for hospitals in a dozen states. Over the past fifty years, we’ve visually perceived
health care costs perpetuate to elevate to the point that some low- income families and the elderly
are unable to get medical treatment.


The Island of Kava


The Island of Kava is faced with numerous problems such as natural disasters as well as cultural and language diversity, limited economic resources and under-age population. There are numerous solutions to the issues on how Spirit Manufacturing can develop a greater presence and assist the people of the island. Additionally, another goal of Spirit Manufacturing is to maintain a strong, ethical behavior and prove that greater presence can be achieved in the international market without compromising the quality of those goals. Spirit Manufacturing used different tools and techniques to identify the main problems and symptoms affecting the island when evaluating the results. The analysis of the results provides a foundation for the decisions that need to be made. The results of the decision are dependent on the implementation and effectiveness of the solutions. The implementation also requires ethical implications from people of the island and the government and business groups involved in the process.

Implementation Process

Several factors can affect the implementation process of Spirit Manufacturing. Strategic management plays a major role in the decision implementation. Lack of a strategic manager or planner in Spirit Manufacturing can delay the implementation of the solutions. Rutan (2006) stated, “A three-step process that includes planning, execution, and monitoring, is a more powerful means of optimizing the long-term performance of an organization.” A Strategic manager position or role will aid the managers of different local areas or different training centers by reducing the time spent on solution implementation. This position will provide Spirit Manufacturing local managers with more time that can be spent on finding productive training and serving as a liaison between agencies to help people of the island generate revenue. The strategic manager will also play a major role liaison between the government, business groups, and local managers to keep managers informed of the need as well as informing different support groups of their progress.

Another factor that can affect the decision implementation process involves the diversity of cultures and languages. The people of the island will need to be part of Spirit Manufacturing. It will also provide the training centers at different locations, thereby providing different training in different languages. The need for control over all the locations is an important factor for decision implementation, but can also create problems between different locations or local managers. Different training centers should be divided based on geographical or cultural needs and these centers can operate relatively independent of the main office. The freedom of independence will provide motivation to achieve objectives, while helping the main office to focus on business-related decisions, rather than providing different training and language availability at the training centers.


Resources play a vital role in all organizations and most of the actions necessary to implement a solution or idea are impossible without the availability of good resources. Amin (2000) stated, “Human resources, human capital, their own labor services-education, and health could be greatly improved to significantly contribute to growth and development.” In order to attract people to the island Spirit Manufacturing will need a marketing strategy or cultural seminars to attract foreign volunteers for the initial process, while training the people of the island as a prototype for the government and business support groups to receive grants and financial assistance. Volunteers are not guaranteed, so Spirit Manufacturing will start the process with very limited resources. The actions required for Spirit Manufacturing are to find people for current and prospective employment opportunities who will assist Spirit Manufacturing in rebuilding the island. The initial step would be to sell their unused land and farms for a long-term employment opportunity. The island will be marketed to the world as a tropical location that can become their home once the reconstruction is complete and can serve as an ideal location for foreign volunteers to secure a job and live on the island turning it into “Paradise” when rebuilt.

Ethical Implications

Spirit Manufacturing will also be faced with some ethical implications that can differ from normal implications because of the remote location of the island as well as the diversity of different cultures and languages on the island. People of different cultures do tend to react differently to the presence of foreign volunteers or the presence of Spirit Manufacturing. People from different cultures can also have different points of view toward Spirit Manufacturing bringing foreign volunteers or developing the infrastructure of the island. There might be people on the island who are uncomfortable and feel threatened that they are losing control over the island.

To solve this problem, Spirit Manufacturing will need to provide different ethic groups and their leaders the ability to choose the people who should be involved in the process as well as playing a role in helping their community. Studies reveal that large numbers of rules and strict regulations can also affect the ethical decision-making process. Strict laws and rules prevent individuals from making the right decisions for fear of breaking the rules. Michael (2006) stated, “Rules have also triumphed over ethics when they become the ceiling rather than the floor for desired conduct.” Spirit Manufacturing will have to rely on a process where the organization will not set very strict rules, allowing for “trial and error”, thereby preventing people from making unethical decisions and blaming the rules.


In summary, the Island of Kava is faced with numerous problems and very little resources for growth. After careful evaluations of the problems and information gathering stored in the database management system, Spirit Manufacturing was able to identify the critical and urgent problems. Spirit Manufacturing used the survey to gather information and stored the information in the database for comparison. Numerous problems required different tools and techniques and a systematic evaluation and decision-making process. The decisions or solutions are identified; however, the decisions are only effective when implemented correctly. The decision implementation can also face some resistance without having a strategic manager or extensive involvement of workers’ time in decision-making. Decision implementation also requires the resources to help in completing the actions necessary to start the building of a stable infrastructure on the island. Diversity on the island can introduce the complication of different ethical values because of different cultures, and the assumption of Spirit Manufacturing that foreign volunteers will be welcomed may not be factual, but can be justified by giving the local people positions where they can be involved in the process. The ethical complications can be solved by not setting strict rules and allowing room for errors. All the decisions, if implemented successfully, will provide a bright image for government and business groups as well as gaining support from its people.







Amin, A. (2000, October). Equitable distribution of resources in growth process for poverty reduction. Retrieved November 24, 2008, from

Michael, L. (2006, March). Business ethics: the law of rules. Retrieved November 24, 2008, from

Rutan, S. (2006). Strategic management: 3 steps to the cycle of success. Retrieved November 24, 2008, from






What is procuremen

Chapter 11 Questions

  1. What is procurement? What is its relevance to logistics?

Procurement refers to the raw materials, component parts, and supplies bought from outside organizations to support a company’s operations. It is closely related to logistics since acquired goods and services must be entered into the supply chain in the exact quantities and at the precise time they are needed.

3.      Discuss three potential procurement objectives.

The text provides five potential procurement objectives that could be discussed. They are supporting organizational goals and objectives; managing the purchasing process effectively and efficiently; managing the supply base; developing strong relationships with other functional groups; supporting operational requirements.

10.    Discuss the Malcolm Baldrige National Quality Award.

The Malcolm Baldrige National Quality Award was established in the 1980s to recognize U.S. organizations for their achievements in quality and performance. The Baldrige Quality Awards, which are restricted to organizations headquartered in the United States, require interested parties to submit a formal application that is evaluated by a committee largely made up of private sector experts in business and quality. Seven categories are evaluated: business results; customer and market focus; human resource focus; leadership; measurement, analysis, and knowledge management; process management; and strategic planning.



Chapter 12 Question


2.         Discuss some of the challenges associated with international logistics.


Economic changes, such as changes in the relative value of currencies, have a profound affect on international trade patterns. When one country’s currency is weak relative to other countries, it becomes costly to import products but exports often surge; when one country’s currency is strong relative to other currencies, the opposite occurs.

Differences in regulations, laws, and legal systems also add to the challenges of international logistics and the degree of enforcement of existing regulations and laws is not uniform from country to country. Cultural considerations, such as differences in language, also contribute to international logistics challenges. Moreover, for goods moving in cross-border trade, it is not safe to assume that cargo handlers can read English and it would not be unusual for some cargo handlers to be illiterate.



12.       What are the two primary purposes of export packing?


One function is to allow goods to move easily through customs. For a country assessing duties on the weight of both the item and its container, this means selecting lightweight packing materials. The second purpose of export packing is to protect products in what almost always is a more difficult journey than they would experience if they were destined for domestic consignees.


Audit is a form of attestation


Chpt. 1


A. Audit is a form of attestation service and attestation service is a form of an assurance service.

1)      Audit of historical financial statements

2)      An attestation service other than an audit service

3)      An attestation service other than an audit service

4)      An attestation service other than an audit service

5)      An attestation service other than an audit service

6)      An attestation service that is not an audit service

7)      An attestation service other than an audit service

8)      An attestation service other than an audit service

9)      An assurance service that is not an attestation service




Reporting on the effectiveness of internal control over financial reporting will provide benefits in improved controls which in turn will result in better quality financial reporting.




Costs of complying with the Act are excessively high, especially the requirement to report on internal control over financial reporting and it will ultimately discourage companies from being public companies.


















  1. The auditor must have adequate technical training and proficiency to perform the audit.
  2. It was inappropriate for Holmes to hire the two students to conduct the audit. The audit must be conducted by persons with proper education and experience in the field of auditing.
  3. The auditor must maintain independence in mental attitude in all matters relating to the audit.
  4. Holmes must exercise fairness to his client and external users who rely on his report. The outcome of the bank loan should play no part in Holmes excesrcising fairness in his reporting.
  5. The auditor must exercise due professional care in the performance of the audit and the preparation of the report.
  6. Holmes failed to exercise due care by not reviewing the work assistants





  1. The auditor must adequately plan the work and must properly supervise any assistants.
  2. Holmes agree to the engagement knowing that he didn’t  have a properly trained staff if required for assistance. Holmes failed to adequately plan the work.
  3. The auditor must obtain a sufficient understanding of the entity and its environment, including its internal control, to assess the risk of material misstatement of the financial statements whether due to error or fraud, and to design the nature, timing, and extent of further audit procedures.
  4. Holmes, nor did his assistants obtain sufficient understanding of the entity and its environment, including its internal control.
  5. The auditor must obtain sufficient appropriate audit evidence by performing audit procedures to afford a reasonable basis for an opinion regarding the financial statements under audit.
  6. Holmes only checked the mathematical accuracy of the records and summarized the accounts. No standard audit procedures were performed.
  1. The auditor must state in the auditor’s report whether the financial statements are presented in accordance with (GAAP).
  2. Holmes made no mention to using GAAP. He should also express in the report that no opinion can stated at this time due to the lack of use of GAAP..



  1. The auditor must identify in the auditor’s report those circumstances in which such principles have not been consistently observed in the current period in relation to the preceding period.
  2. Holme’s failed to properly follow GAAP. As a result no such principles can be applied to this situation.
  3. When the auditor determines that informative disclosures are not reasonably adequate, the auditor must so state in the auditor’s report.
  4. Both the financial statements and auditor’s report had adequate disclosures.
  5. The auditor must either express an opinion regarding the financial statements, taken as a whole, or state that an opinion cannot be expressed, in the auditor’s report. When the auditor cannot express an overall opinion, the auditor should state the reasons therefor in the auditor’s report. In all cases where an auditor’s name is associated with financial statements, the auditor should clearly indicate the character of the auditor’s work, if any, and the degree of responsibility the auditor is taking, in the auditor’s report.
  6. An opinion should not be included because Holmes failed to provide a proper audit according to GAAP.






Chpt. 3



B. The true economic conditions don’t specifically mention that GAAP procedures were applied.

C.  The opinion paragraph is stated as an opinion rather than as a statement of absolute fact or a quarantee.

D. The firm name should appear oppose to the individual auditor. The CPA firms accepts full responsibility of the report.

E. The purpose of the of the Audit is not see if the financial statements are misstated but instead conducted to see if the statements are fairly stated.


  1. Scope of the audit has been restricted.

Highly material.


Introductory paragraph modified. Need to add another paragraph stating the scope of restriction. Scope paragraph omitted and the opinion paragraph becomes a disclaimer of opinion.

  1. Auditor doesn’t have to add an explanatory paragraph because risky business is now being performed.
  2. Immaterial.

Unqualified-standard wording.

The facts are adequately disclosed in the footnote.

  1. Failure to follow GAAP

Material, Qualified opinion only

Qualified opinion is needed for the failure to include statement of cash flows.

  1. Substantial doubt about going concern


Unqualified explanatory paragraph

Following the opinion, the auditor should disclose his doubts about the concerns he have about the ability of the company to continue.

  1. A report involving other auditors


Unqualified-modified wording

The audit report is shared detailing what work has been done by individual auditors





Chpt. 4


A. Providing bookkeeping services to a public company. The services were pre-approved by the audit committee of the company.

B. Providing internal audit services to a public company that is not an audit client. No violation occurred. If the client was an audit client there would be a violation.

C. Designing and implementing a financial information system for a private company. No violation occurred. A CPA firm may assist in the installation of a clients information system as long as the client makes necessary management decisions about the system.

D. Recommending a tax shelter to a client that is publicly held. The services were pre-approved by the audit committee. It’s not a violation if it is used a tax avoidance strategy.

E. Providing internal audit services to a public company client with the pre-approval of the audit committee. There is a violation. The violation occurs because and internal audit cannot be performed on an audit client of a public company.

F. Providing bookkeeping services to an audit client that is a private company. No violation because a firm can provide bookkeeping services to their audit client so long as they are a private company.



A. An audit committee is a selected number of members of a company’s board of directors whose responsibilities include helping auditors remain independent of management. The Sarbanes-Oxley Act requires that all members of the audit committee be independent, and companies must disclose whether or not the audit committee includes at least one member who is a financial expert.

B.The audit committee must preaprove all audit and nonaudit services, and is responsible for oversight of the work of the auditor, including resolution of disagreements involving financial reporting between management and the auditor. Auditors are responsible for communicating all signigicant matters identified during the audit to the audit committee.

C. The audit committee can help an auditor become more independent by stressing to the auditor the signifigance of performing fairness and good judgement of their financial statements.

D. PCAOB rules require a CPA firm, before its selection as the company’s auditor, to describe in writing and discuss with the audit committee all relationships between the firm and the company, including executives in financial reporting positions, to determine whether there is any impairment of the CPA firm’s independence. If selected as the auditor, these communications are to be made at least annually.

E. In my experience people tend to go with what they know and if going with a prestigious company is what they know, hey. Costs should not be ignored though. Small mom and pop firms can give you the same or better quality service with cheaper costs.