Effects Of Rising Fuel Prices Economics Essay

Effects Of Rising Fuel Prices Economics Essay This research project is being written because currently the UK is experiencing a recession, which has escalated the price of fuel and is affecting the supermarkets. The research will examine the impact of fuel prices on different supermarkets and their approaches taken to boost sales and improve competitiveness. The intended reason for presenting this research project is to show how supermarkets can become more efficient and supportive. In order to answer the research question the following criteria will be addressed: Formulate a research specification Implement the research project within agreed procedures and to specification Evaluation of research outcomes Present the research outcomes The fuel prices will be compared and contrasted for the supermarkets during the past 5 years between 2008 2012. It will then make recommendations based on the findings of the research and analysis. This report is to be completed by 22nd April 2013. Methodology This research which is being provided has made use of different resources; lecture notes, textbooks, newspapers, discussions with family members and internet websites for the different organisations mentioned e.g. Asda, Morrisons, Sainsburys and Tesco In order to complement the secondary data derived from research studies and published material, telephone interviews with several supermarkets will be conducted. The interview will include questions for the supermarkets both, as a consumer and a supplier of fuel directly to its customers. The research objectives looking to be achieved by the end of this report are Using available secondary data, to establish the pattern and trends of the impact of fuel prices on supermarkets in the last 5 years Collecting primary data to obtain first-hand account from company personnel, about their decisions and adopted strategies to manage the impact of rising prices, both as a consumer and supplier of fuel To make a set of recommendations on fuel incentive programme based on core product offerings This study was conducted as part of a HND in Business unit which involves conducting research and then presenting this in the form of a research project which takes into account all the research gathered. The main purpose of this unit is to conduct research on a topic or any current issues. It was decided to conduct my research based around How the increase in the cost of fuel is affecting supermarkets in 2008 compared to 2012. In order to help obtain individual and business views on how the price increase is affecting them, this will involve the gathering of information from 1:1 telephone calls and face-to-face interviews with supermarkets. The completed questionnaires will help make an overall analysis of the data at the end, in order to produce an evaluative report based on the findings. With the research provided, this helped me look at gaining more insight into how different supermarkets are operating in the current recession and what changes would be made in order to cope with the increase in fuel prices. Therefore this led to the setting of the aim, about exploring further into how supermarkets are operating by the fuel price increase in terms of distribution and sales. With the production of this research project, the supermarkets will benefit the most alongside the oil companies and consumers. However, the petrol stations will also need information in order to succeed. The need for the report is to highlight the price variations and how supermarkets adapt to change. Methodology Chapter Currently the global economy is experiencing a recession. As a result of this, the economy and individuals are facing problems like a rise in unemployment levels which means it is becoming harder to get a job, fuel prices increasing and a decline in the overall market level. In conclusion the recession means that the business sector is hit the largest alongside consumers. When doing the project there will be various steps involved. Firstly this will establish the goal of the overall chosen research topic How the increase in the cost of fuel is affecting supermarkets, and then determine my sample in regards to views on how and why the fuel prices are affecting the supermarkets. The next step would be the creation of the questionnaire which is to be distributed amongst businesses and those being interviewed. The research collected from the questionnaire will focus on prices paid for fuel. The interviews would be conducted and then data collated. Whilst carrying out my research into the topic about the fuel price increase the question which came to mind was Does the fuel price increase, as a result of the recession, affect supermarkets on a day-to-day operation? In regards to this researched question, this has led to me thinking about the level of impact in which fuel prices is having on different supermarkets. Therefore this helped me choose this as my research topic fuel price increase. In terms of the research question, my research objective which is being looked to be achieved is To identify the ways in which businesses operate in terms of distribution and delivery and how this contributes to success or failure. Research into the topic of fuel prices was chosen as it is a continual business issue, relates to the economy and was an interesting topic to gain more insight into. The other research idea Should healthy eating be promoted within schools? was discarded as it does not link into business, but brings in more persuasive ideas regarding healthy eating. The research objective was to identify the ways in which healthy eating can be encouraged. This type of issue is a continuing debate and has been discussed by the government and the NHS, leading to a variety of initiatives e.g. 5 a day. Should Microsoft technology be improved for businesses? was the other research topic but was then eliminated as it already improves regularly and helps them become more up-to-date. The objective of this research idea was To investigate into the type of features preferred by businesses and any improvements they would recommend. This project takes an Inductive approach, supported by secondary data gained from published reports and scholarly work. Also, primary data was obtained through a series of telephone interviews using semi-structured questionnaires. Implementing the inductive research approach was successful for this research project as the research question acquired various perspectives. Therefore, the overall conclusion could not be drawn until the research had been analysed. One benefit of using the inductive approach was that the main categories emerge as data is collected and analysed (BPP p234-235). However there were different limitations like it being time consuming and an intensive research method which required high levels of resources to help compare different views. Having collected all the information it would therefore not reveal any results at the end based on the analysis. This type of approach involves Qualitative data as the results were not number based and was targeted at a smaller population which consisted of supermarket transport managers who would have vast knowledge of fuel prices. This therefore helps ensure my results are valid, reliable and objective. The limitation experienced was that the reliability of the data was purely dependent upon my organisational skills and analytical knowledge. As the questionnaire was my collection method alongside interviews, this meant that it helped me check the reliability of the gathered data and explore ideas deeper through the interviews. For this research topic, the survey method will be implemented and will involve preparation of a questionnaire which will be answered by the various supermarkets. Using the survey method will help obtain information which can be analysed and patterns extracted and comparisons made (Bell, 1999). Non-Probability Sampling is a sampling method which is conducted and relies on the judgement of the researcher/s in terms of selecting their respondents. The sample size for the research used is smaller and this meant it could be targeted at specific respondents. The type of sampling method carried out for the research provided was Convenience Sampling because it allowed communication to specific people within the company. This method does not require or use any sample design. This sampling method was chosen over others e.g Random, Systematic or Quota sampling method due to the reason that it helped provide useful information, as the sample was kept representative according to the organisations being investigated into. Besides this type of sampling, Convenience sampling was more relevant to my research compared to Random Sampling, which would have involved the selection of the population randomly. It was decided as the 2nd type of sampling due to the fact that it works well with small groups. The questionnaire will provide information from the perspective of supermarkets, being both consumers and suppliers. Supermarkets consume fuel as part of their distribution costs and supply fuel to customers at their petrol stations. A questionnaire was created in order to help acquire very specific information from the interviewees. Research was conducted first hand because there was no research team available. Asking specific questions will help provide precise data which can be compared and analysed in the report. However, questionnaire responses may be misunderstood and have an adverse impact on overall comparisons. Information obtained relates to the current situation and was gathered within a short span of time, resulting in brief answers. The responses from the questionnaire will be put into a bar chart to show the comparisons of how the supermarkets are operating in terms of the fuel price increase. By putting the data in the form of a bar chart, it would help summarise the large set of data easily and can be understood. However there were other methods e.g. pie charts and histograms, which were discarded as the bar charts would represent the data more easily and at the end was able to make straightforward overall comparisons. Table 1 Research Action Plan Task 17/05/12- 24/05/12 25/05/12- 31/05/12 17/09/12- 21/09/12 22/09/12- 28/09/12 01/10/12-09/10/12 08/11/12 15/11/12 16/11/12 22/11/12 Topic Selection Complete Action Plan Complete Code of Ethics Complete Data Collection Complete Questionnaire Complete Research Obj Complete Sampling method Complete Proposal completion Complete Throughout this project the milestone progress reviews took place: When the research topic was decided upon 31st May 2012 On finalisation and gathering of literature sources mentioned in the literature review When the research project proposal had been done 22nd November 2012 On completion of main report critique Code of Ethics To ensure, within this project, the content included is based on my findings To monitor and record progress on the action plan progress table Completion of the research project within the specified time limit Questionnaire responses kept confidentially and not distributed amongst other interviewees Only to use qualitative data once approved by interviewee Interviewees receive copies of the final report Advantages of surveys Disadvantages of surveys Focus on data in comparison to theory Data implication can be ignored Caters for small-scale qualitative research Questionnaires and sampling could lead to lack in depth and detail Allows use of tools like questionnaire and telephone 1:1 interviews Inaccurate or not honest responses Results obtained fairly quick Time consuming in terms of accuracy and honesty If survey structure well organised then this means the analysis is made easier Surveys provide a range Sources of data and methods of data collation It was decided that there were advantages to collecting and using further existing secondary data, such as time and cost saving. However, since the data has been acquired by someone else, it could be out of date or unreliable. Because of this, it is imperative that the research is checked to ensure it is accurate and reliable to use for the research question. The research into surveys, deduced that Denscombe (1998) had proposed pros and cons as follows: Supermarkets will have cartels Organization of the Petroleum Exporting Countries (OPEC) who will sell fuel to wholesalers e.g. Shell and then sell it to Tesco. This will mean that Tesco will be dependent upon OPEC when getting their fuel. Whilst OPEC is a cartel, this means they would be known to dominate the market and want to get suitable prices. If Tesco were to make agreements with OPEC, they would find it hard because OPEC will not receive any benefits. Overall this issue would have a big significance on Tesco because they dont have any control with aspects such as how much petrol OPEC will supply to them as well as the prices charged. Justify the chosen methodology Morrisons Faculty team was involved in the collection of the primary data. They answered the questions accurately and the information provided, led to a better understanding about their operations. This helped to obtain the correct data, which provided other essential data based around current and future actions. There are minimal academic literature based around the topic of fuel prices which can be studied in order to help draw up an overall judgement based on the findings. This is a systematic topic and has been discussed by various experts in this field. Since secondary data collation involved collecting information from that which someone else had collected, the information was reviewed before including it in this research project. It was necessary to compare the different sources of secondary information and to include it after review. http://i.dailymail.co.uk/i/pix/2012/03/16/article-0-12327C8B000005DC-223_468x343.jpghttp://www.gscape.com/images/econ/charts/WeeklyFuelPrices130212.gif UK Fuel Prices for Monday 17th September 2012 Avg Min Max Unleaded 140.05p 133.9p 152.9p Diesel 144.39p 138.9p 156.9p Super Unleaded 147.72p 139.9p 159.9p Premium Diesel 153.02p 146.9p 161.9p LPG 74.94p 67.7p 83.9p According to http://www.theupcoming.co.uk/2012/03/20/inflation-continues-fall-despite-the-rise-in-petrol-prices/ The Consumer Price (CPI) Index rate of inflation had fallen from 3.6% in January to 3.4% the following month during February. David Kern, the Chief Economist at the British Chambers of Commerce said, The marked increases in world oil and food prices since the beginning of the year are worrying and support our view that further declines in domestic inflation, both this year and next, will not be as sharp as the Banks Monetary Policy Committee. Conferring to the Daily Express on Tuesday 15th May 2012, Morrisons announced they were going to reduce their petrol prices by 2p a litre. This action being taken would lead to price wars occurring between both supermarkets and petrol stations e.g. BP, Esso and Texaco. As a result of Morrisons decreasing their fuel prices, this has led to other retailers looking to consider doing this. The main reason why Morrisons has chosen this is because it will help them stay more competitive especially in the current UK recession. With retailers like Tesco, they were considering 2p cut in prices as well as their 5p off vouchers on top. In accordance to the Telegraph published online, it mentions that The cost of oil has jumped 30pc over the last four months, raising fears that the recent easing in inflation would be temporary. Petrol prices rose 3.5p per litre during last month to  £1.35 while diesel increased 3.3p to  £1.40. http://www.telegraph.co.uk/finance/economics/9549808/UK-inflation-eases-in-August-despite-rising-fuel-costs.html It is known that having high fuel prices will mean that various industries e.g. Primary Sector, Secondary Sector, Tertiary Sector and the commercial industry who rely on any form of transportation will find themselves having to increase their prices in order to maintain their profits and be cost effective. According to the Daily Express as of Thursday 6th September 2012, it mentions about The Office of Fair trading (OFT) looking further into the fuel price increase and their inquiry will address competition issues and concerns over price co-ordination. From customers views they reckon that when the price of crude oil decreases, this is not being reflected at the pump as quick as they would like. The Daily telegraph published 21st March 2012, talks about due to both fuel prices and food, this is therefore leading to higher living costs. There have been experts who warn that the situation is unlikely to improve in the short-term. Experts have warned that drivers may either change their job or quit as a result of an increase in fuel duty. It has been proven that A hike in fuel costs at the start of the holiday season will backfire as many people are already cutting back. Jayne Atherton mentions in the Metro newspaper on Wednesday 21st March 2012 that most manufacturers are likely to raise prices because of the spiralling cost of oil. Its believed that any added rises in the cost of oil will be a significant concern. Its mentioned within the Metro newspaper dated 25th September 2012 about 2 supermarkets starting a fuel price war; Asda and Morrisons. In terms of this price war, Asda say they will cut their prices on both unleaded and diesel by 3p to 135.7p and 139.7p. Conversely Morrisons also took the same action by reducing their prices 3p. This price war will therefore lead to other supermarkets e.g. Tesco, Sainsburys, Esso, Texaco and BP, wanting to follow the same procedure. Asda had an income tracker report done in 2008 which showed the huge impact high fuel prices have on the average familys monthly budget. During August it was reported that apart from fuel prices staying low last year, the costs at the pumps had rose. Within the Daily Mail on Saturday 22nd September 2012, it says that as oil has been rising slowly over months from $100 a barrel to $115 a barrel, this has pushed petrol prices and energy bills up for different UK households. Oil prices have however fallen dramatically within previous days with fears about the slowdown in the global economy hitting demand. The metro newspaper on 10th October mentions that as cost of fuel continues to rise, this is urging motorists to stay off the roads. As motorists vanish, most are staying off the roads to help save money and also reduce their unnecessary trips. The only constant they see is the fact wages arent increasing in line with inflation but there are other costs particularly petrol and diesel that are going up. Ross McGuiness makes a decision about them having no option but to cut back and some people have cut out their cars. His study into the fuel price increase leads to the debate about how prices are increased and passed on. As argued by Brian Madderson, he mentions that when purchasing fuel which costs  £50,000, 60% of the cost is made of fuel duty and VAT. This cost is paid by small retailers to the government through the supplier before the tax is collected from the customers. This led to him believing that is absurd. Furthermore Chris Hunt, General Director at UK Petroleum Industry Association, stated that rising fuel costs are down to emerging car sales markets within China and India. Chris Hunt also argues that increasing fuel prices will decrease number of sales, but will on the other hand lead to oil suppliers across UK, not profiteering. With the 3p increase in fuel duty, it was believed that benefits would arise such as creating of over 70,000 jobs and boost economy growth by 0.2%. Sky news also states that We appreciate the Governments aspiration to reduce the deficit but know that hiking fuel duty up by 3p in January will only make things much worse. This therefore shows that the change would make the deficit greater and not help the economy become more stable. FairFuel UKs national spokesman Quentin Willson said: We have always argued that fuel duty shouldnt be the Treasurys sacred cash cow it should be used as a lever for growth. George Osborne mentioned that the current fuel price increase which was set for January is to be scrapped. This was demolished with the aim to help the pressure put on workers and families who are currently in need. This increase was also considered carefully as it would coincide with the rail fares increasing and changes to child benefits. Going ahead with the 3p rise, doesnt make sense for economic recovery and deficit reduction. Lee Boyce argues that with the petrol price decrease, it is still making consumers pay more at the pumps. The AA, goes along with Lee Boyces idea concerning the prices not dropping enough. In relation to the prices paid by customers, it was found by AA that drivers were also once again suffering from a price postcode lottery where motorists in one area were charged as much as 5p a litre more than drivers a few miles away. Before 2002, the real price of fuel had been dropping, which led to a decrease in the numbers of fuel-poor households. The real price increases since 2003, resulted in a doubling of the fuel poor from 1.2 million households in England in 2003 to 2.4 million in 2006. In the White Paper, the government predicted some possible future fuel price scenarios and their likely effect on fuel poverty numbers. The graph below illustrates this: Figure : England Households in fuel poverty Graph 1: England households in fuel poverty One of the best insights into why the UK is failing on fuel poverty comes from a statement in 1976 by an early campaigner, Marigold Johnson, when commenting on the rise in fuel prices after the first oil crisis in 1973. It was believed it was Societys failure to plan for an age of high-cost fuels. Subsequently, fuel prices have risen and at faster rate than the RPI (Retail Price Index), during every year since 2003. Increase size in 2005, 2006, 2008 has been severe. With an increase of 105% in residential fuel prices since 2000, this sets against a RPI increase of 26%, which represents a real fuel price increase of 62%. Residential fuel prices within the UK, have effectively increased by 84% between 2000 and Fe February 2009 for the average household. When the cause of a fuel price rise is international energy costs, then the problem, is, to an extent, out of the governments control. Government and OFGEM (Office of the gas and electricity markets) are trying to ensure that price increases which are passed onto the customers are justified. Governments own coffers are receiving more money from the VAT levied at 5% on rising fuel prices. It would be expected that there is recognition regarding fuel poverty policy consisting of disastrous effects in which rapid fuel prices can have on the fuel poor, particularly since 2003. The potential impact of these price increases on progress towards meeting the targets set out in The UK Fuel Poverty strategy means efforts will need to focus on finding most sustainable way of tackling fuel poverty. During 2008, world oil prices were US $145 and during 2009 went down to $39, leading to predictions about fuel price levels and fuel poverty extent being difficult. Current Fuel prices Average Minimum Maximum Unleaded 138.6p 132.9p 151.9p Diesel 143.3p 137.9p 156.9p 22.2 Domestic freight transport: by mode Great Britain percentage 1999 2000 2001 2002 2003 2004 5,6 2005 7 2006 2007 8 2008 9 2009 10 Goods moved (billion tonnes kilometres) Petroleum products Road1 ZBZP 5.0 6.4 5.8 5.2 5.5 5.7 5.5 5.6 5.1 6.5 4.8 Rail2 ZBZQ 1.5 1.4 1.2 1.2 1.2 1.2 1.2 1.5 1.6 1.5 1.4 Water3 ZBZR 48.6 52.7 43.5 51.7 46.9 46.9 47.2 37.8 36.4 36.4 36.4 of which: coastwise ZBZS 33.3 26.0 23.1 24.2 23.3 26.6 30.3 22.7 25.0 26.5 27.1 Pipeline9 ZBZT 11.6 11.4 11.5 10.9 10.5 10.7 10.8 10.8 10.2 10.2 10.2 All modes ZBZU 66.7 71.9 62.0 69.0 64.1 64.5 64.7 55.8 53.3 54.6 52.8 Coal and coke Road1 ZBZV 2.2 1.5 2.1 1.5 1.5 1.2 1.5 1.3 1.6 1.0 1.0 Rail2 ZBZW 4.8 4.8 6.2 5.7 5.8 6.7 8.3 8.8 7.7 7.9 6.2 Water3 ZBZX 0.5 0.2 0.5 0.3 0.5 0.3 0.4 0.5 0.5 0.5 0.3 All modes ZBZY 7.5 6.5 8.8 7.5 7.9 8.5 10.2 10.4 9.8 9.5 7.5 Other traffic Road1 ZBZZ 150.5 151.5 150.6 152.7 154.7 155.6 156.4 159.7 166.4 156.0 137.6 Rail2 ZCAA 11.9 11.9 12.0 11.7 11.9 12.5 12.2 11.8 11.9 11.2 11.4 Water3 ZCAB 9.6 14.6 14.8 15.2 13.5 12.3 13.3 13.5 13.9 12.7 11.9 All modes ZCAC 172.0 178.0 177.4 179.6 180.0 180.4 181.9 185.0 192.2 179.9 161.0 All traffic Road1 KCTA 157.7 159.4 158.5 159.4 161.7 162.5 163.4 166.7 173.1 163.5 143.5 Rail2 KCTB 18.2 18.1 19.4 18.5 18.9 20.4 21.7 21.9 21.2 20.6 19.1 Water3 ZCAD 58.7 67.4 58.8 67.2 60.9 59.5 60.9 51.9 50.8 49.7 48.6 Pipeline KCTE 11.6 11.4 11.5 10.9 10.5 10.7 10.8 10.8 10.2 10.2 10.2 All modes KCTF 246.2 256.3 248.2 256.0 252.0 253.0 256.8 251.3 255.3 244.0 221.3 Percentage of all traffic Road1 ZCAE 64.0 62.0 64.0 62.0 64.0 64.0 64.0 66.0 68.0 67.0 65.0 Rail2 ZCAF 7.0 7.0 8.0 7.0 7.0

Morality in Islam Essay

Morals are the standards set by society for an ethical human behavior. It can also be called the ability to distinguish between right and wrong. Morality is the adherence to the moral values present in the society, especially the following of good moral conduct. Islam is a comprehensive way of life, and morality is one of the cornerstones Islam. Morality is one of the fundamental sources of a nation’s strength, just as immorality is one of the main causes of a nation’s decline. Islam has established some universal fundamental rights for humanity as a whole, which are to be observed in all circumstances. To uphold these rights, Islam has provided not only legal safeguards, but also a very effective moral system. Thus, whatever leads to the welfare of the individual or the society and does not oppose any maxims of the religion is morally good in Islam, and whatever is harmful is morally bad. Given its importance in a healthy society, Islam supports morality and matters that lead to it, and stands in the way of corruption and matters that lead to it. The guiding principle for the behavior of a Muslim is â€Å"Virtuous Deeds†. This term covers all deeds, not only acts of worship. The Guardian and Judge of all deeds is God Himself. Morals in the general society might have evolved considerably over the centuries but their main purpose remains the same; i. e. to practice good behavior and abstain from ill doings and injustice. The pursuit of justice, tolerance and fairness has been appreciated and upheld by man for centuries, and detest for evil doings and cruelty has been ever present. Morality has a very important role in the religion of Islam and in the life of a Muslim. Islam tells us that the conscience of a person has it in him to do good deeds and refrain from evil. The Holy Quran calls good, maruf-a well known things and evil, munkar-an unknown thing. It means that it is desirable to do good deeds and undesirable to indulge in evil practices. The Quran says: â€Å"By the Soul! And the proportion and order given to it, and its enlightenment as to its wrong and its right- truly he succeeds that purifies it, and he fails that corrupts it. † (91:7-10) The moral values in Islam deal with the relationship of a man with his God, man with his fellow beings and the man’s relationship with his soul. The moral codes given to Muslims to follow are Divine guidance from Allah himself. These codes and values stand the test of time and are universal in their nature. One can realize how much importance and is given to morals in Islam. The Holy Prophet (pbuh) said that the good manners and morals were the real test of a man’s excellence. He (pbuh) said: â€Å"The best of you are those who have the most excellent morals. † The moral values of Islam are instrumental towards creating a healthy and a sustainable society. The moral values in Islam emphasize on piety, patience, forgiveness, justice, kindness brotherhood, equality, truthfulness, lawful earning and acquisition of knowledge. The Holy Quran signifying the value of justice says; â€Å"†¦for Allah loves those who are fair and just. † (49:9) The morals in Islam also incorporate the conduct of an individual towards his parents, spouse, relatives and neighbors. Islam instructs the follower to give his fellow beings their due rights and complete his obligations towards them. The guidance for human beings to live their life in Islam comes through Divine commands. The promise of paradise, and the warning from the inexplicably hot fire of the hell, motivates the believer to follow the right path. The Divine guidance sets the standard for the most excellent possible moral behavior. Importance of morality in Islam is beautifully captured in the saying of the Holy Prophet (pbuh): â€Å"The thing which will make the majority of the people enter Paradise is fear of Allah and good manners. † he most fundamental characteristics of a Muslim are piety and humility. A Muslim must be humble with God and with other people: â€Å"And turn not your face away from people (with pride), nor walk in insolence through the earth. Verily, God likes not each arrogant boaster. And be moderate (or show no insolence) in your walking, and lower your voice. Verily, the harshest of all voices is the voice (braying) of the ass. † (Quran 31:18-19) Muslims must be in controls of their passions and desires. A Muslim should not be vain or attached to the ephemeral pleasures of this world. While most people allow the material world to fill their hearts, Muslims should keep God in their hearts and the material world in their hand. Instead of being attached to the car and the job and the diploma and the bank account, all these things become tools to make us better people. â€Å"The Day whereon neither wealth nor sons will avail, but only he (will prosper) that brings to God a sound heart. † (Quran: 26:88-89) Principles of Morality in Islam. God sums up righteousness in verse 177 of Surat Al Baqarah: â€Å"It is not righteousness that you turn your faces towards East or West; but it is righteousness (the quality of ) the one who believes in God and the Last Day and the Angels, and the Book, and the Messengers; who spends of his wealth, in spite of love for it, to the kinsfolk, to the orphans, to the needy, to the wayfarer, to those who ask and for the freeing of slaves; and who is steadfast in prayers, and gives Zakah (Alms); and those who fulfill their covenants which they made; and who are patient and perseverant in poverty and ailment and throughout all periods of fighting. Such are the people of truth, the pious. † This verse teaches us that righteousness and piety is based before all else on a true and sincere faith. The key to virtue and good conduct is a strong relation with God, who sees all, at all times and everywhere. He knows the secrets of the hearts and the intentions behind all actions. Therefore, a Muslim must be moral in all circumstances; God is aware of each one when no one else is. If we deceive everyone, we cannot deceive Him. We can flee from anyone, but not from Him. The love and continuous awareness of God and the Day of Judgment enables man to be moral in conduct and sincere in intentions, with devotion and dedication: â€Å"Indeed, the most honorable among you in the sight of God is the most pious. † (Quran 49:13) Then come deeds of charity to others, especially giving things we love. This, like acts of worship, prayers and Zakah (mandatory alms), is an integral part of worship. A righteous person must be reliable and trustworthy. Finally, their faith must be firm and should not wane when faced with adversity. Morality must be strong to vanquish corruption: â€Å"And God loves those who are firm and steadfast. † Patience is often hardest and most beautiful when it’s against one’s own desires or anger: â€Å"And march forth toward forgiveness from your Lord, and for Paradise as wide as are the heavens and the earth, prepared for the pious. Those who spend (in the way of God) in prosperity and in adversity, who repress anger, and who pardon people; verily, God loves the doers of the good deeds. † (Quran 3:133) These three acts are among the hardest things for most people, but they are also the key to forgiveness and to paradise. Are they not the best, those who are able to exercise charity when they are in need themselves, control when they are angry and forgiveness when they are wronged? This is the standard by which actions are judged as good or bad. By making pleasing God the objective of every Muslim, Islam has set the highest possible standard of morality. Morality in Islam addresses every aspect of a Muslim’s life, from greetings to international relations. It is universal in its scope and in its applicability. Morality reigns in selfish desires, vanity and bad habits. Muslims must not only be virtuous, but they must also enjoin virtue. They must not only refrain from evil and vice, but they must also forbid them. In other words, they must not only be morally healthy, but they must also contribute to the moral health of society as a whole. â€Å"You are the best of the nations raised up for (the benefit of) men; you enjoin what is right and forbid the wrong and believe in God; and if the followers of the Book had believed it would have been better for them; of them (some) are believers and most of them are transgressors. † (Quran: 3:110) The Prophet, may the mercy and blessings of God be upon him, summarized the conduct of a Muslim when he said:â€Å"My Sustainer has given me nine commands: to remain conscious of God, whether in private or in public; to speak justly, whether angry or pleased; to show moderation both when poor and when rich, to reunite friendship with those who have broken off with me; to give to him who refuses me; that my silence should be occupied with thought; that my looking should be an admonition; and that I should command what is right. † The love and continuous awareness of God and the Day of Judgment enables man to be moral in conduct and sincere in intentions, with devotion and dedication. The Glorious Qur’an also says:Say: the things that my Lord hath indeed forbidden are: shameful deeds, whether open or secret; sins and trespasses against truth or reason; assigning of partners to Allah, for which He hath given no authority; and saying things about Allah of which ye have no knowledge. [Al-Qur’an 7:33]It is interesting that the Qur’an refers to â€Å"sins and trespasses against truth or reason†. It is an indication of God’s blessing to every human being, of an innate moral sense. Such a moral sense, when uncorrupted by family or society, is what leads people to commendable acts of virtue. Islam aims to enhance and amplify the moral sense in every human being and adorn the individual’s character with the noblest of virtues. The Islamic moral principles therefore, appeal naturally to the human intellect, while elevating the pursuit of morality to the level of worship. This is because Islam holds every action that is done with the goal of attaining of God’s pleasure to be worship. | Morality and the individual The guiding principle for the behavior of a Muslim is what the Qur’an refers to as Al `Amal Assalih or virtuous deeds. This term covers all deeds, not just the outward acts of worship. Some of the most primary character traits expected of a Muslim are piety, humility and a profound sense of accountability to God. A Muslim is expected to be humble before God and with other people. Islam also enjoins upon every Muslim to exercise control of their passions and desires. Islam warns against vanity and excessive attachment to the ephemeral pleasures of this world. While it is easy to allow the material world to fill our hearts, Islam calls upon human beings to keep God in their hearts and to use the material world in moderation and in accordance with God’s guidance. The Glorious Qur’an says: â€Å"The Day whereon neither wealth nor sons will avail, but only he (will prosper) that brings to Allah a sound heart† [Al-Quran: 26:88-89] Charity is one of the most commendable acts in Islam. In fact, Zakah, the annual charity that is obligatory on every Muslim who has accrued wealth above a certain level, is one of the pillars of Islam. Gratitude in prosperity, patience in adversity, and the courage to uphold the truth, even when inconvenient to oneself, are just some of the qualities that every Muslim is encouraged to cultivate. Morality and Society For an individual as well as a society, morality is one of the fundamental sources of strength, just as immorality is one of the main causes of decline. While respecting the rights of the individual within a broad Islamic framework, Islam is also concerned with the moral health of the society. Thus, everything that leads to the welfare of the individual and the society is morally good in Islam, and whatever is harmful is morally bad. Given its importance to a healthy and just society, Islam supports morality and matters that lead to the enhancement of morality, and stands in the way of corruption and matters that lead to the spreading of corruption. The injunctions and prohibitions in Islam are to be seen in this light Conclusion Morality in Islam addresses every aspect of a Muslim’s life, from greetings to international relations. It is universal in its scope and in its applicability. A Muslim is expected to not only be virtuous, but to also enjoin virtue. He/She must not only refrain from evil and vice, but must also actively engage in asking people to eschew them. In other words, they must not only be morally healthy, but must also contribute to the moral health of society as a whole. The Prophet Mohammed (peace be upon him) summarized the conduct of a Muslim when he said: â€Å"My Sustainer has given me nine commands: to remain conscious of God, whether in private or in public; to speak justly, whether angry or pleased; to show moderation both when poor and when rich, to reunite friendship with those who have broken off with me; to give to him who refuses me; that my silence should be occupied with thought; that my looking should be an admonition; and that I should command what is right. †

Introduction Of The Bank Of England - 986 Words

Introduction The Bank of England has been playing the role of issuing banknotes since 1694. Until middle of the 19th century, a number of private banks in the Great Britain and Ireland gained freedom of issuing their own banknotes, while the notes issued by the provincial banking companies commonly under circulation. Over the years, a number of Acts of Parliament were subject to introduce by the UK Parliament in order to increase confidence in the banknotes that were in circulation through limiting on the rights of banks in issuing notes. This concept leads to general idea of this paper, which will look at the evolution of output, inflation, the official bank rate set by the Bank of England and government spending in the UK (Greer, 2009). It is fascinating for one to track on how the global financial integration has been evolving for the past century. Understanding the evolution of output is possible by looking at the measured stocks of the external assets and liabilities; together with the cumulative consequences of the past cross-border capital flows. Global integration of trade and finance started prior to the World War I, at the time when the capital liberalization was last at their peak. Both global integration of trade and finance fell during the interwar years, with the national protectionism leading to the creation of trade and financial barriers. From 1960s and onwards, both trade and finance started rising once more due to the lofting on a number of restrictionsShow MoreRelatedTimeline of Uk Regulatory Events Essay1045 Words   |  5 PagesFigure 9: Timeline of UK regulatory events 1980s Introduction of the modern regulatory system; self-regulation among asset managers, statutory oversight of banks and insurers. 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The War Of The Cold War - 2013 Words

Many individuals would remember the Cold War (1945-1991) to be â€Å"a state of political hostility between countries, characterized by threats and propaganda†. An inevitable war in which questioned the extent of power politics and the survival of humankind. Both the Union of Soviet Socialist Republic and the United States committed to a war which disregarded direct military action and pursued economic and political actions in order to achieve the objective. The Arms Race, a significant event in this period is acknowledged to have had a profound contribution to the tension developed throughout the Cold War. However it cannot be concluded that the Arms Race was the only source of maintaining Cold War Tensions, as it is evident that there are other factors which have contributed to this crisis. Circumstances in relation to the Arms Race such as the Berlin Blockade, Korean War, Cuban Missile Crisis and the ideologies of political personnel’s have all played a role in maint aining tension. The Second World War, recognised the United States and Soviets as allies in which held a friendly and firm relationship. However, the Cold War and post 1945 events; The Arms Race have made evident that their relationship was illusory. The Cold War demonstrated the battle aims of both parties; the fight to dominate international affairs and maintain power. Special adviser to Khrushchev viewed the Cold War as â€Å" In the atmosphere of the Cold War, one country always looks for pressure points againstShow MoreRelatedThe War Of The Cold War1644 Words   |  7 PagesThe Cold War was a state of political and military tension stemming from World War II fought primarily between the United States and the Soviet Union. 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The research paper mainly focused on various reasons of opposition of two great power of the world Soviets and United States of AmericaRead MoreThe War Of The Cold War1737 Words   |  7 Pages Cold War The Cold War, which is often dated from 1945 to 1989, was a constant state of political and military tension between powers in the West, dominated by the United States with NATO among its allies, and powers in the East, dominated by the Soviet Union along with the Warsaw Pact. The development of Nuclear Weapons and long range shooting missiles by the United States gave a lot of fear and caused mass destruction. The Cold War came about after World War II when America used their atomic bombsRead MoreThe War Of The Cold War1123 Words   |  5 PagesThe Cold War consist of tensions between the Soviets and the U.S. vying for dominance, and expansion throughout the world. Their complete different ideologies and vision of the postwar prevented them from working together. Stalin wants to punish Germany and make them pay outrageous sum of money for reparation. However, Truman has a different plan than Stalin. Truman believes that industrialization and democracy in Germany and throughout th e world would ensure postwar stability. Stalin also wantedRead MoreThe War Of The Cold War942 Words   |  4 PagesFeelings Do Matter At the close of World War Two in 1945, the United States entered another kind of war, the Cold War, which did not involve two adversaries in open battle fields using bullets against the Soviet Union. Throughout the Cold War, incidents fueled feelings of anxiety, mistrust and pride. Often pride is defined as â€Å"a feeling that you are more important or better than other people† (Pride). Mistrust on the other hand is the â€Å"feeling that someone is not honest and cannot be trusted†,Read MoreThe War Of The Cold War1636 Words   |  7 PagesThe U.S. learned greatly after having been declared the victor of the Cold War. Retired four-star U.S. Army general Colin Powell said, â€Å"The long bitter years of the Cold War are over. America and her allies have won; totally, decisively, and overwhelmingly† (Reed 343). The Cold War started after World War II in 1947 and ended in 1991. The U.S. underwent a political war with the Soviet Union in hopes of advancing more rapidly in certain fields, such as nuclear weapons and space crafts. Avoiding nuclearRead MoreThe War Of The Cold War1244 Words   |  5 PagesBoos echoed throughout the streets of Harlem, New York in great waves of disapproval. Hippies holding up signs supporting peace, and posters opposing the Vietnam War, otherwise known as the Cold War, greeted the tired and injured soldiers. The familiarity of their hometown created a sense of peace and warmth, despite the angry cries of protest from the enraged nonconformists. As loved ones embraced their fighters, chants of outrage broke out from the hippies, and the soldiers, relieved to be home