Wednesday, March 18, 2020

Inflation Rate in Russia Over 16 Years.

Inflation Rate in Russia Over 16 Years. Free Online Research Papers The purpose of this report is to show what has been happening to the rate of inflation of Russia for the past 18 to 20 years. After investigating looking at last year (2006) results, it can be stated with confidence that the countrys deepest economic recession of its transition to a market economy has been completely overcome. Inflation in 2005 was about 9%, its lowest level in 15 years. Moreover, from 2000 to 2005, consumer demand internally has grown by 12% each year, which is a good sign of a modern economy. Russia possesses ample supplies of many of the worlds most valued natural resources. However, most such resources are located in remote and climatically unfavorable areas that are difficult to develop and far from Russian ports. For nearly sixty years, the Russian economy and that of the rest of the Soviet Union operated on the basis of a centrally planned economy. Russias economy is difficult to be measured in comparison to other countries due to its high rate of inflation and price-fixing for certain utilities. Inflation refers to the general sustained rise in the level of prices of goods services. The rate of inflation is measured by calculating the percentage price increase in goods services, usually over a year. Economists agree that the main cause of inflation is ‘too much money chasing too few goods’. This means people are able to increase their spending on goods faster than producers can supply the goods they want to buy. The rise in spending causes an excess of aggregate demand for goods services their prices are forced upwards. * The costs of inflation to the economy  · Many pensioners are on fixed pensions so inflation reduces the real value of their income year on year.  · Inflation usually leads to higher nominal interest rates that should have a deflationary effect on GDP.  · Inflation can also cause a disruption of business planning – uncertainty about the future makes planning difficult and this may have an adverse effect on the level of planned capital investment.  · Some economists say that inflation causes unemployment. As prices rise, people can’t afford to buy so many goods services so demand falls. In addition, some people save more in times of high inflation to protect the real value of their savings. This again means less spending on goods services. As a result firms may cut their output make resources, including labour, unemployed. * Inflation in Russia Two fundamental and interdependent goals macroeconomic stabilization and economic restructuring - marked the transition from central planning to a market-based economy (In 1990). Opening domestic markets to foreign trade and investment, thus linking the economy with the rest of the world, was an important aid in reaching these goals. In 1992, the first year of economic reform, retail prices in Russia increased by 2,520%. A major cause of the increase was the decontrol of most prices in January 1992, a step that prompted an average price increase of 245% in that month alone. In October 1991, a program of radical economic reforms was established which laid out a number of macroeconomic policy measures to achieve stabilization. It called for sharp reductions in government spending, targeting outlays for public investment projects, defense, and producer and consumer subsidies. The program aimed at reducing the government budget deficit from its 1991 level of 20% of GDP to 9% of GDP by t he second half of 1992 and to 3% by 1993. In the monetary sphere, the economic program required the Russian Central Bank to cut subsidized credits to enterprises and to restrict money supply growth. The program called for the shrinkage of inflation from 12% per month in 1991 to 3% per month in mid-1993. By 1993 the annual rate had declined to 240%, still a very high figure. In 1994 the inflation rate had improved to 224%. Trends in annual inflation rates mask variations in monthly rates, however. In 1994, for example, the government managed to reduce monthly rates from 21% in January to 4% in August, but rates climbed once again, to 16.4% by December and 18% by January 1995. Instability in Russian monetary policy caused the variations. After tightening the flow of money early in 1994, the Government loosened its restrictions in response to demands for credits by agriculture, industries in the Far North, and some favored large enterprises. In 1995 the pattern was avoided more successfully by maintaining the tight monetary policy adopted early in the year and by passing a relatively stringent budget. Thus, the monthly inflation rate held virtually steady below 5% in the last quarter of the year. For the first half of 1996, the inflation rate was 16.5%. However, experts noted that control of inflation was aided substantially by the failure to pay wages to workers in state enterprises, a policy that kept prices low by depressing demand. During January-July 1998, the pace of inflation slowed more, with cumulative CPI growth over the period declining to only 4.2 percent, compared to 9.6 percent in the year-earlier period. The slowdown in inflation in the first half of 1998 was due to a strict monetary policy adopted as a result of the deepening financial crisis. In 2001, the reduction in inflation was mostly due to a seasonal decline in food prices. Higher inflation in 2005 than in 2004 was due in large part to increases in administered utilities prices early in the year. The primary source of inflationary pressures in Russia remains the huge balance of payments surplus. As oil prices grow, so do the potential pressures for inflation or nominal currency appreciation. Year Inflation % 1999 36.5 2000 20.2 2001 18.8 2002 15.1 2003 12.1 2004 11.7 20052006 10.94.1 Contribution of Key Factors to Inflation in 2003 2004 * Inflation in the future Therell be a considerable increase in inflation forecasts; the reason for this will be a substantial jump in tariffs of natural monopolies as of 2008 (their growth rate will be 50-100% higher). 2007 2008 2009 2010 Inflation CPI% 8.5 8 7.5 7 A strong expansion in internal demand continues to drive economic growth in Russia, although a slowdown in most manufacturing and tradable sectors is becoming increasingly visible. Higher-than-expected inflation in early 2006 has motivated discussions of a new package of anti-inflationary measures by the government and Central Bank. Russia currently has only limited instruments for reducing core inflation. Primary among these instruments are levels of government spending (as opposed to accumulation in the Stabilization Fund), exchange rate policy, and other limited means of the Central Bank for regulating liquidity. When a larger internal bond market finally develops, the hand of the Central Bank will be strengthened considerably for the conduct of anti inflationary monetary policy. Russias lasting economic growth has served as the foundation for achieving the level of inflation in 2006. The governments efforts to restrict the money supply and the Stabilization Funds efforts to sterilize it have also had a positive effect. However, there are still reserves left for curbing inflation in 2007. Russian commodity producers competitive potential has not been fully taken advantage of. Research Papers on Inflation Rate in Russia Over 16 Years.The Effects of Illegal ImmigrationDefinition of Export QuotasPETSTEL analysis of IndiaAssess the importance of Nationalism 1815-1850 EuropeAppeasement Policy Towards the Outbreak of World War 2Influences of Socio-Economic Status of Married MalesTwilight of the UAWIncorporating Risk and Uncertainty Factor in CapitalThe Project Managment Office SystemNever Been Kicked Out of a Place This Nice

Monday, March 2, 2020

Facebook Advertising for Authors Part 2

Facebook Advertising for Authors Part 2 Facebook Advertising for Authors, by Mark Dawson: Part 2 Facebook advertising is a marketing technique that is rising in popularity among many independent authors. As any other technique, it takes time, testing and iteration to produce results. And as for any other technique, it works better in certain genres and for certain books than others.However, we believe there is a great untapped potential in Facebook advertising for authors and this is the reason why we interviewed internationally bestselling author Mark Dawson. You can read part 1 of the interview here, where he focuses on growing a mailing list through Facebook ads. You can also play the full video below to enjoy a nice French chateau decorum and hear just how fascinated Mark is by the potential of Facebook marketing. Or, if you’re familiar with both, read part 2 of the transcript below!Here, we focus on advertising from Facebook directly to Amazon and how to track the results, on top of decrypting how Amazon’s wonderful algorithms work and how to get the most out of your faithful reviewers! Hi Mark! In part 1 of this interview, we discussed how you use keep separate mailing lists and automated email sequences to drive sales. I am subscribed to your mailing list, and I noticed that before I get to the email where you offer me to buy the next book in the series, you offer several free books and really try to build a relationship with the reader.Yes, and that’s really important. One thing I’ve worked very hard on is to turn those subscribers into readers, then into fans, then super-fans, and finally into friends. That’s kind of the way I look at it. So I’ve got a street team with nearly 900 people, which is now closed because 900 is enough for what I need.But I answer every single email from readers, whether it comes from they finding my email address on my website or from a reply to an email I sent out, I reply to everything. I also try to answer every message on Facebook.I think that’s really important, and it might be one of those thin gs I’ll not be able to do forever, because I’ve got probably 20,000 people on my lists now and am very busy writing new stuff and running the business. So at some point I’ll have to sit down and ask myself: â€Å"can I justify spending an hour every day answering email correspondence from readers?†; but I’ll put that off as long as I can, because I think that’s one of the main reasons why last year was so successful.I’ve now got fans who I can really rely on: when I say I’ve got a new book out, I know they’ll go and buy it. And if that happens in certain numbers, then Amazon starts marketing for you and everything becomes a virtuous circle at that point.Yes, it’s really all about hitting that point where Amazon starts doing the work for you, isn’t it? And the launch is a particularly crucial moment for that, right?Yes, I’ve launched quite a few books like year and monitored and studied the dynamics o f the launches, so I’ve got it down now to a reasonably fine art. I know, for example, that if you’ve got 1,000 people on your list and you’re confident that 100 of them will buy the book when it comes out, you don’t want them to buy the book on the same day. Amazon rewards you for steady sales rather than spikes. So it’s better to have 20 every day for 5 days rather than 100 on day 1 and then nothing on days 2 to 5.That kind of stuff is quite important, and if you’ve got - like I do - segmented lists, you’re able to â€Å"massage† the sales into a pattern that you think will be best for Amazon to notice this new book.And if we go back to Facebook ads, what I might do for the launch is set up an ad just targeted to people on my mailing list. One thing that Facebook allows you to do is to import your email addresses from your mailing list and they will then match these email addresses with Facebook accounts (provided that thes e people have one). So I will also serve ads to those people as well. Some people might say: â€Å"why are you saying the same thing twice? You’re already sending them an email asking them to buy the book.† Well, not all emails are opened (50% is already a very high open rate), and it’s a standard advertizing theory that it takes more than one touch for someone to make a buying decision. So that kind of joined-up campaign is going to be more effective than just an email blast or just a Facebook campaign.Yes, that’s what we call â€Å"re-marketing† in the business world, and it’s a widely used technique to engage with users who sign up for your services but then don’t end up â€Å"buying† anything. Facebook’s â€Å"custom audiences† are a great way to do that indeed. Another amazing feature that Facebook has is â€Å"lookalike† audiences, do you use those?Oh yes, all the time. For those who don’t know what one is, you can import your mailing list into Facebook and then tell them: â€Å"please, generate a lookalike audience based on this mailing list†. Facebook will then try to assess what the people have in common in your mailing list, and algorithmically search for people matching the same interests, demographics, etc.And how are the results, compared to the standard campaigns simply based on â€Å"interests†?Sometimes better. My best sales ad for one of the boxed sets I have on sale is a 2.2M list of people based in the United States defined as a â€Å"lookalike† of my mailing list. I optimize the ads for clicks and typically generate a %50-%100 ROI every day.For the ads that redirect to Amazon, how do you track the results? Because you can track what happens on your website, but you cannot track what happens on Amazon, right?That’s an interesting question and one I’m looking into right now. At the moment, I use affiliate linking: you can set up an affiliate account and direct your ads to the affiliate links, so Amazon will tell you through their affiliate program exactly how many people have bought your book coming from that affiliate URL.Unfortunately, I’ve been looking into this as I said, and it looks like you’re not really allowed to use an Amazon affiliate link in a Facebook ad, which is really really annoying. So what you’ll probably have to do is send the traffic from Facebook to your website where you have a sales page, and then your sales page has the affiliate links. And I hate that, on the one hand, because it’s putting a step between the ad and the buying decision, but on the other hand you can put things on your sales page that you cannot have on Amazon, like a video, or clips from the audiobook, etc.Of course, if that doesn’t prove to work, the alternative is just not to use affiliate links and directly send the traffic to Amazon, on a normal link. You’re less pre cise on your numbers that way but provided you know what you were selling before, you can get a rough idea of how effective the campaign is being.Last question for you Mark, to wrap this up and let you go back to your other activities. Let’s say I’m an author, I have a mailing list with 20 subscribers, and I’ve just implemented a â€Å"reader magnet†, where I offer a free book for readers to subscribe to my mailing list. I’m still getting only 2-3 reviewers a week. What kind of actionable steps can I take in order to get more subscribers?First, make sure that the call to action for that reader magnet is everywhere. You need to advertize the reader magnet on your product page, because a subscriber is more important than a sale. So if a reader sees it on the page but doesn’t buy the book, don’t worry: once they’re on your list, you can offer them book 2, book 3, etc. You need to look at it as a long term financial proposition rat her than short term financial gain.So put it on the product page, put it on your Amazon (and Reedsy) author page, put in on your books - front and back: front so readers see it if they use the â€Å"look inside† functionality on Amazon, back so readers who enjoy your book can subscribe to get more - and everywhere else: link your social media profiles to your landing page.Provided all that is in place, I suggest you look into Facebook ads, because that’s one pretty hot area right now with incredible growth opportunities for us.Thank you so much for all this advice, Mark!  If you want to learn more on Facebook ads, visit Mark Dawson’s course, Self-Publishing Formula, here!Have you tried using Facebook advertising to grow your mailing list? Or to sell more books? What do you think of Mark’s tools for success? Leave your thoughts, or any questions for Mark, in the comments below!

Friday, February 14, 2020

Identity is a Production which is Never Complete Essay

Identity is a Production which is Never Complete - Essay Example Ann Frank writing was little known in the twentieth century but it has been gradually been identified and the identity of Anne Frank as one of the best writers of her time. Stuart Hall posits Ann Frank diaries by revealing the identity via rethinking of the placing and corresponding repositioning of the Nazi regime. Drawing of the spatial and temporal metaphors of the diaries implicitly and concurrently compare the society in broader sign system thus acting as the signifier of identity link of the intertextually of the prevailing texts. Hall wholly suggests that the Nazi is neither an isolatable and independent location that exists within a social and historical vacuum nor the corresponding past separable from the current universe. Anne Frank is self-subjecting strategy from the corresponding art making of the institutional network practice. Moreover, the category error of Anne Frank does not entail distinction and thus does not permit clear modalities of thought around the diverse sets of practices to develop. Anne Frank’s identity covers thinking beyond the mid-1990s that mainly emphasis on the underlying movement amidst places as a significant aspect of migration cultures. Failure of Anne Frank recognition was mainly linked to the engagement of the post-colonial migrational culture and it mainly entails willful misrecognition of the prevailing significance of the set of cultures that contributed to the constitution of the conditions of modernity in the cultural institution's operation. The continued misrecognition, undervaluing the production of the cultural value and form in the art practices of the early twentieth century hindering numerous personalities from knowing the real identity of Anne Frank.

Saturday, February 1, 2020

Managing projects Essay Example | Topics and Well Written Essays - 3000 words

Managing projects - Essay Example Consequently, a new body of knowledge was evolved, which came to be known as Project Management. Over the years, the science of Project Management has developed enormously and many scholars and practitioners have introduced various tools and techniques to enrich it. Internet, computers, project management software etc have accelerated the pace of development of project management. Successful completion of project on time with the use of limited resources and minimum cost is the main objective of project management. But, project management in modern times is no longer possible by paying attention towards resources, cost and time alone. The project managers are forced to look beyond time, cost and resources. The traditional tools and techniques such as Gantt chart, PERT/CPM networks became powerless and attainment of project objective remained a dream for the competent project managers. A careful analysis has been made in various areas of project management and finally reached a way-ou t that project managers need to have a check on the rapidly changing environment in which the project needs to be materialized. The present essay looks on various aspects of project management and the intricacies of project management in the modern rapidly changing project environment. The term ‘project Management’ has been defined by authors in different ways. There is no unanimity among the academicians and practitioners concerning the activities and the scope of a project manager and hence, about definition. The following definition seems to be a typical one. â€Å"Project management is the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realized. Projects are unique, transient endeavors undertaken to achieve a desired outcome. Projects bring about change and project management is

Friday, January 24, 2020

Limon Dance Company :: essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Limon Dance Company is the nation’s oldest modern-dance company. Jose Limon established Limon in 1946. In the beginning the company only survived by word of mouth but eventually grew to be one of the Nations best and well-known Modern Dance Company’s. The Limon Dance Company survived with many of its original dance’s intact, these dances preserve the legacy of mid-century choreographers and showed the Company’s talent. The three pieces that the Limon Company performed were Champion, The Winged, and The Moor’s Pavane.   Ã‚  Ã‚  Ã‚  Ã‚  The first piece performed was Sophie Maslow’s Champion. (First performed in 1948.) Champion was based on a short story by Ring Lander, and showed how violent the fighter life was in the ring and at home. The dance was done in rounds. The first round the boxer beat up his mother, the second round he beat up his girlfriend. This story was told through strong masculine movements by the male dances. At one point the male dancers were in a gym working out. Each dancer imitated different methods of training. Push-ups, sit-ups, sparring, and punching drills were all used in setting the scene of that part of the dance. Dancers used straight strong, but gracefully movements to convey the meaning of what was happening on stage. Limon did a good job of choreographing the fight scenes in Champion. All the fight scenes had energy and really made it look like they were in a boxing match. The Champion seemed to show an overall theme of violence in the piece.   Ã‚  Ã‚  Ã‚  Ã‚  The Winged was the next piece in the program performed by the Limon Company. This piece was different from all the rest it seemed to turn the dancers into birds or some sort of animals and was difficult in my view to understand. Many of the dances used fast repetitive hand motions to simulate flying and seemed to move across the stage in sharp flowing motions like that of birds. The Moor’s Pavane was apiece based loosely on William Shakespeare’s Othello. Using 16th century music by Henry Purcell, and costumes that resembled period clothing Pavane looked like a dance that would be performed in a king’s court.

Thursday, January 16, 2020

James Wong Howe Essay

HOWE, JAMES WONG (1898-1975), photographer, cinematographer. Howe was born in Canton, China, in 1898 and came to the State of Washington in 1904 with his parents. His original name was Wong Tung Jim, which he continued to use until 1922. He is recognized for his great camera work in the United States and for bringing new, revolutionary techniques to the camera world. Among his best known photographic innovations are the use of the wide-angle lens, deep focus, and ceilinged sets to give the claustrophobic feeling of being aboard ship. In 1947 he was also one of the first cameramen to use a hand-held camera. In his innovative methods of filming he used roller skates and wheelchairs. Because of his artistic and revolutionary techniques Howe won Oscars for the films The Rose Tatoo and Hud in 1957 and 1963, respectively. His other acclaimed films include Come Back Little Sheba, The Last Angry Man, and The Old Man and the Sea. (Hyung-Chan Kim, 1986) Howe arrived in America aged five and grew up in Pasco, Washington. Short (5’1†³) but stocky, he trained as a boxer and fought professionally as a teenager, but he was bascinated by photography Making his way to Los Angeles, he landed a job with DeMille’s unit at the Lasky Studios and worked his way up to camera assistant. Howe owed his breakthrough to a happy change. Assigned to shoot stills of the star Mary Miles Minter, he delighted her by making her eyes appear dark. (The orthochromatic film of the time lightened blue eyes into blankness. ) Puzzled at first, Howe realized that black velvet drapes behind him had created the effect. Minter insisted he should shoot all her films, and rumours spread that she had imported her own Chinese cameraman who hid behind black velvet to work his magic. Howe was soon widely in demand. Luckily, the magician had more than one trick up his sleeve. Imaginative and experimental, Howe was never content to rely on accepted techniques. He believed that a good cinematographer ‘should be willing to gamble a little more. The normal thing is not really interesting; it’s the unusual and sometimes even accidental things that are. ‘ Right to the end of his carrier he went on taking chances. Reacting against the flat, shadowless photography preferred by his directors. Howe set about exploring the creation of mood through the camera. To suggest the fantasy world of Peter Pan (1924) he used low-key lighting (a technique which for a while became so characteristic that he gained the nickname ‘ Low-Key Howe’). He seized eagerly on devices to increase camera mobility: Mantrap (1926) was one of the first films to make extensive use of dolly-short. When sound it Hollywood Howe was in China trying to set up a film to direct. The project fell through, and when he returned to America he found himself tagged ‘silent-era’. Work was scarce until Howard Hawks chose him for The Criminal Code (1930). This earned him a two year contract with Fox where he lent The Power and the Glory (1933), a tycoon’s life-saga, a quasi-newsreel look that may have influenced Welles’s Citizen Kane (1941). There followed a stint at MGM, creating dark, opulent interiors for Manhattan Melodrama (1934) and The Thin Man (1934), but Howe came under constant pressure from Cedric Gibbons, the studio’s design head, to over-light. Quitting, he visited England, where two costume dramas, Fire over England (1936) and Under the Red Robe (1937). Were flattered by his warm, romantic treatment. Returning to Hollywood, Howe freelanced for a while. The Prisoner of Zenda (1937) and Algiers (1938), moody and atmospheric, mark the culmination of his 1930s black and white work; The Adventures of Tom Sawyer (1938) was his first color feature Rejecting the brash tones beloved of Technicolor, Howe went for subdued, earthy colors befitting the poor rural setting, to the alarm of Technicolor’s house cameraman Wilfred Cline. Howe simply ignored Cline, and was banned from Technicolor films for the next twelve years. In 1938 Howe signed with Warners. The studio style, grainy and downbeat, should have suited his penchant for realism, but in the event he found Warners as restrictive as MGM. Their cut-price, fast-shooting methods outraged the perfectionist Howe, who liked to prepare meticulously and take time to get things right. (Esther Mikyung Ghymn, 2000) Even so he achieved some fine work; often in an expressionistic vein all high contrast and oppressive shadows – to match melodramas like Kings Row (1942) or Passage to Marseille (1944), besides the near-documentary look of Air Force (1943) and Objective Burma! (1945). Released from Warners, the ex-boxer captured some sweatily vivid fight scenes for Body and Soul (1947) by having himself pushed round the ring on roller-skates. For the rest of his career Howe freelanced. Most of his colour films date from this period, from the picture-book fantasy of Bell, Book and Candle (1958) to the muted subterranean shades of The Molly Maguires (1969). There was never a uniform Howe look; the style, he insisted, ‘whould conform to the story’, but he preferred black and white, and his late masterpieces are all in monochrome: Hud ( 1962), with its flat white Texan skies; the tormented distortions of Seconds ( 1966); and the slick, glitzy night world of Sweet Smell of Success ( 1957). Howe was never easy to work with. Tireless and dedicated, he demanded equal dedication from his crews and, perhaps in reaction to the racial slurs he suffered all his life, adopted an autocratic approach that risked alienating colleagues. Given an inexperienced director Howe would virtually take over, sometimes to the point of directing the actors, and even strong directors knew better than to cross him. But few doubted that whatever he did was for the sake of the story – nor that he was, as Alexander Mackendrick put it, ‘quite simply, the best’. As stated earlier, Chinese Americans’ physical appearance alone has rendered them â€Å"unassimilable† throughout American history. Compounding this first barrier are the culture-specific traits of language, food, custom, and value. Popular presses continue to stigmatize Asian Americans as â€Å"model minorities,† which means that despite prejudice, this group has â€Å"made it† so others should follow suit and not complain. The reality is that visible Asians experience â€Å"glass ceilings† in the workplace and â€Å"tuning out† by whites in interpersonal communications. † (David A. Cook, 1996) â€Å"Success,† for Asian Americans at least, does not readily dictate the ethnic person’s cultural identity. This was what Frank Chin realized when he interviewed an award-winning Chinese American cinematographer and director: â€Å"From greeting us in the oldest homeliest Sze Yup Cantonese I’d heard since Chinatown old James Wong Howe was a Chinaman. He took us out for Chinese food and ordered for everyone like a Chinaman. He got along with whites, was the genius of the most American art Hollywood movies and had two Oscars without losing any of his Chinese language, culture, or taste. † (Vincent LoBrutto, 1999)

Wednesday, January 8, 2020

Chapter II Literature Review Essay - 2609 Words

Chapter II: Literature Review Introduction The transgender community faces many life challenges that the general population do not encounter. This challenges impact all aspects of the individual’s life, including social economic status, increase risk factors for HIV and other diseases, a decrease in health care access, etc†¦ These challenges deter the transgender community for accessing health care services at the same rate as the general population. The minority stress model helps examine the impact of stigma on the level of distress an individual faces. Social support can potentially act as a moderators to partially deter the level of distress. Transgender Community Background The term transgender includes any individual who identifies or expresses their gender identity with a different gender then the one they were assigned at birth. Two generally used terms are male to female (MTF) and female to male (FTM). These terms indicate a transition from the first gender to the second gender (Figure 1.1). The concept of social gender and psychological gender are also important factors that impact an individuals gender identity. Social gender refers the presentation of ones identity within a public setting (i.e. clothing, speech, etc.) and psychological gender refers to how one actually identifies with a specific gender (i.e. male or female) (Lombardi, 2001). For the purpose of this paper the focus will be on transgender women (MTF) unless otherwise stated. Figure 1.1:Show MoreRelatedChapter II : Literature Review2394 Words   |  10 PagesChapter II: Literature Review Company XYZ’s die converting production area has experienced waste due to scratching and delamination which cause scrap. Parts being scraped cause a reduction in profits and a decrease in production capacity for the company. 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