St Francis of Assisi

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The aspect of Francis' spirituality, which this paper will try to explore, is the Eucharist and the enormous significance this sacrament held for him. In chapter CL11 of "The Second Life of St Francis" Celano writes that "Francis burned with a love that came from his whole being for the sacrament of the Lord's body…". Celano goes on to tell us that Francis attended Mass daily whenever possible and received Holy Communion frequently, "…with such devotion that he made others also devout."

There can be no doubt that the Eucharist was the central part of Francis' spirituality for in this sacrament he encountered the reality of Christ and his love for mankind; in addition, the Mass was important to him because he heard the Gospel proclaimed and participated in the commemoration of Christ's death on the cross.

Francis of Assisi (118-16) was a medieval man who had a limited formal education; for instance he probably composed his letters rather than wrote them himself. He was not a scholar or a theologian.

Francis lived in an era where "…there was appearing, almost everywhere, a kind of passionate straining towards the pure ideal of the Gospel". There was a general atmosphere of dissatisfaction with monastic life, a demand for a purer preaching of the Gospel, and reform of the secular clergy, many of whom were wealthy and lazy. In response to the lacily of many secular clerics and the rigidity and luxury of monastic life, nonconformist movements arose which focused on penitence and poverty. Such groups as the Cathars, the Albigensians and the Waldensians advocated, "lay preaching" and "apostolic poverty" as ways to return to basic Gospel values. These groups soon found themselves regarded as heretical when their doctrines grew ever more extreme and conflicted with official Church beliefs.

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Francis on the other hand, though inspired by a similar motivation to embrace utter poverty of spirit and a simple, humble life of service in the Lord's name, remained always obedient to the Church authority, and frequently sought guidance from his advocate and friend, The Bishop of Assisi. Francis and his followers lived their lives of poverty and penance within the Church and in complete compliance to Papal directives. Francis was never doubted that the Catholic Church "…was the upholder and guardian of the truth. He thought her doctrine irrefutable and her faith the only guarantee for salvation of man (1Cee 6)"

Given St Francis' strong loyalty and love for the Church, it follows that for him as for the Church at large, the central act for worship was the Mass. In his desire to follow absolutely a way of life based on that of Jesus Christ, he found in the mystery of the Eucharist the inspiration to pursue his calling. In the Eucharist he met his crucified Lord, his humble Lord, and above all, his loving Lord. The reverence with which Francis regarded the Eucharist stemmed from his "…deep Theological insight into meaning. In it he discovered all that was required as the foundation for his life of penance. His love for this mystery grew out of his realization through faith that in it the whole redemptive work of God for us is once more made visible and tangible."

To discover what Francis actually taught and practiced regarding the Eucharist there is no better place to look than his writings. In the first of the Admonitions, entitled "The Blessed Sacrament", Francis pets out simply and unequivocally his belief that the bread and wine consecrated on the alter by the priest become the "most holy Body and Blood of our Lord Jesus Christ." Speaking of Christ's humanity in this sacrament Francis states that "He shows himself to us in this sacred bread just as he once appeared to his apostles in real flesh." And again he says "We, too, with our own eyes, see only bread and wine, but we must see further and firmly believe that this is his most holy Body and Blood, living and true." For Francis there is no doubt the sacramental bread and wine become the body and blood of Christ as every Mass. This belief compliments Francis' devotion to the person of Jesus. As Ilia Delis states in his article "Francis and the Body of Christ"; "The emphasis on the body and blood of Christ points to the humanity of Christ, the real flesh and blood of God's presence upon earth."

There was no more sacred, significant meaningful or precious part of Francis' day that his attendance at Mass, daily Mass was a practice he urged upon his friars. In a letter, which Francis sent to a general chapter towards the end of his life when his followers included priests, he gives the following counsel

And so this is my advice, this is my earnest request in the Lord That in the places where the friars live only one Mass a day be said in the rite of the holy Church. If there are several priests in a place, each should be glad for the love of charity to have assisted at the celebration of the other.

The humility of Francis was one of the many ways he put into practice his calling to follow in the footsteps of Jesus Christ. He was profoundly attracted by Christ's humility and poverty; for instance Jesus' birth in the most basic of human circumstances moved him deeply. But above all else the mystery of Christ in the Eucharist was a marvel almost beyond words for him. In another section of his "Letter to a General Chapter" Francis expresses this as follows

O sublime humility! O humble sublimity! That the Lord of the whole universe, God and the Son of God, should humble himself like this and hide under the form of a little bread, for our salvation.

Being awestruck by Christ's real presence during the celebration of The Mass did not deter Francis from frequently receiving Communion. In this regard he behaved somewhat differently from hi contemporaries, for in the early thirteenth century, frequent Communion was not the normal practice, even amongst monks and nuns. Francis' desire to embrace the reality of Jesus in the Eucharist (as often as possible) runs parallel to his intense devotion to the humanity of Jesus Christ and his desire to follow his personal Savior as intimately as he could. It is not surprising that writers about Francis remark on the respect and veneration towards the reserved Eucharist and his concern that the blessed sacrament be stored in suitable places, that chalices and other items used at Mass be treated with car and reverence, along with the written word of God. It would seem that in Francis' time carelessness and even disrespect in these matters occurred quite often and Francis was at pains to connect practices, which seemed so unworthy to him. There occurs in Francis' own writings a number of instances when he urges greater respect; for instance the "Letter to all Superiors of The Friars Minor", the "Letter to a General Chapter" and the "Letter to all Clerics". In his "testament", written not long before his death, Francis repeats his teaching "Above everything else, I want this most holy Sacrament to be honored and venerated and reserved in places which are richly ornamented".

It follows that Francis had enormous respect for all priests and there are many expressions of this in his writings. Admonition XXVI has Francis stating that The Clergy "…are in privileged position because they have change of the Body and Blood of our Lord Jesus Christ…" Celano's "Second Life of St Francis" describes the saint as often saying that if he should have the opportunity to meet a saint from heaven and a poor priest he, Francis, "…would first show honor to the priest and quickly go to kiss his hands" . Whereas to the saint Francis would say "Wait, St Lawrence, for the hands of this one touch the Word of Life, and have something about them that is more than human" . This shows how deeply Francis believed that at the Eucharist the Word of Life becomes flesh among us, irrespective of whether the priest is a worthy on or not . Such faith impresses deeply despite the distance of eight hundred years because of the sincerely of Francis' words both written and reported.

What does Francis' attitude to the Eucharist have to offer to Christians of the Third millennium? I believe that in the first place Christians of today could learn from Francis' sense of awe and reverence regarding the Eucharist. Secondly, Francis' understanding that the Eucharist ideally invited one to live a Eucharistic life is relevant in all eras. Thirdly, Francis' emphasis on peace and joy could well begin for modern men and women with the Eucharist, the sacrament of unity.

Modern Christians are capable of being as neglectful and irreverent towards the Eucharist as Francis' contemporaries. Believing as we do, that we live in a more sophisticated age than Francis and having the benefit of centuries of education and theological study about the Eucharist available to us, as well as a multitude of other spiritualities which may enrich us, perhaps the centrality of the Eucharist to our lives is not like it was to Francis. Francis' beliefs were not couched in theological terms because he was a man simplicity, yet his belief that the Mass connected him in a real and personal and intimate way to the person of Jesus Christ is so lucidly expressed so often in his writings, that we must conclude that this sacrament was central to his life, that it was supremely important over and above all his other beliefs and religious activities. The wonder of this sacrament was never diminished in Francis' eyes. Today's custom of receiving Communion at every Mass, unlike the practice in Francis' day, could perhaps have contributed to an attitude of greater familiarly and lesser reverence. That which has become routine in today's busy world can also have lost its luster of awe and mystery. I believe St. Francis sets a great example for us today.

Just as Jesus Christ lived his life for all, so did Francis in his wish to follow and imitate Christ. Francis' original ministry to the lepers who were society's outcasts, was inspired and sustained by his faith that in the Eucharist he was embraced by Jesus Christ and thereby invited to embrace all he encountered, especially the poor, the sick, the untouchable, those whom Jesus has sought out in his life time. This idea cannot be less relevant in 00 than in the thirteenth century. The Eucharist joins us to all our sisters and brothers and invites us to live out this relationship in daily life, as Francis did so perfectly. Ilia Delis expresses this in following way

If Eucharist means finding oneself internally related to every other, including one's enemies, and embracing the other in love, than it is indeed the source of a truly catholic personality and the seed of a new creation, whereby all humanity is bound in a unity of love.

The example of Francis as a man who so extolled the blessings of peace and joy can be an inspiration in this third millennium where we daily encounter disunity, inequality, social injustice, war and all degrees of enmity. The Eucharist, which Francis saw as the sacrament of unity, remains that today, if we adopt this consciousness. Francis found in the Mass his main source of love, peace and joyful self-giving, always aware that these were the gifts of the Jesus he encountered there. Could not these same gifts transform whatever situation we may be in on a personal level, and assist to bring healing to our imperfect world?Please note that this sample paper on St Francis of Assisi is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on St Francis of Assisi, we are here to assist you. Your cheap custom college papers on St Francis of Assisi will be written from scratch, so you do not have to worry about its originality.

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Team Dynamics

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Team Dynamics

"Coming together is a beginning, staying together is progress, and working together is success." - Henry Ford

Many organizations are harnessing the power of teams to improve performance and replace traditional "command and control" methods. Robinson defines a team as "[…] a unit of people with complementary skills who are committed to a unilateral purpose and hold themselves mutually accountable for performance to goals using a common process" (Maintenance Management 506). While effective teams may indeed generate synergistic results, ineffective teams may actually prove to be counter-productive. Team dynamics are affected by the characteristics of the individuals and the ways in which they interrelate as a group. Achieving high performance levels with teams is dependent on constructive interaction among the members. Teammates must be able, and willing, to draw on the individual strengths of each other as well as to compensate for weaknesses. While teams are used in many different ways, for this discussion we will focus on project teams.

In constructing a project team, it is important to include members with complementary skills. The proper mix of skills and abilities is a crucial factor in the team's success. The selection process should ensure that the team is composed of people who possess the appropriate technical knowledge, the ability to solve problems effectively, and are able to make sound decisions. It is also important to include members with strong interpersonal skills (Thompson, Aranda, Robbins et al 5). The latter can be especially important since each team member brings to the group his or her own unique personality, biases, and interests. This diversity is one of the reasons that effective teams are able to achieve levels of performance greater than that of the individuals; however, these differences may also be a source of conflict within the group.

School papers on Team Dynamics

When a team is starting out, if those with stronger skills decide to move forward without consideration of those who do not possess the required skills, the team will begin to fall apart (Yager 11). To prevent this, and achieve optimal results, the team should draw on the knowledge and skills of each member, requiring them to be engaged in the process. Yager notes, "All learning, if it is to be effective, must proceed from awareness to choices and options, and then to applications and change" (11). In designing the way in which a team will operate, it is important to consider the different personality traits of the members and the affect on team dynamics. While some people are influenced more by their feelings, others require facts. Domineering personalities may cause those who are less assertive to withdraw and avoid voicing their views, potentially resulting in a loss of valuable insights. Personality and behavioral style tools such as the Meyers-Briggs Type Indicator and the DISC Assessment can provide an insight into the ways individuals may interact with others. With a better understanding of their styles, team members can determine the most effective way to approach each other.

The attitude each member brings to the process will have an influence on the dynamics of the team. Volunteers normally approach the process more positively than those forced into participation will. Some individuals may come to the team with a strong positive or negative bias toward the team objective. For example, if one of the members has previously worked on a project that the team's responsibility, there may be resentment that he or she was not allowed individual credit for the work. Others may lack motivation to participate in a process that does not generate benefits for them as individuals. In an altruistic environment, each member of the team would only consider the benefits to the team goal in their interaction. However, as humans, each member brings their own interests to the team process and, to some extent, will tend to influence situations from a personal gain or loss perspective. If the team is working on a high profile project, some members may view it as an opportunity to improve their visibility within the organization. If individual interests override those of the team, there is likely to be conflict.

Creating a charter is an important first step in setting the team up for success. As the team works on its assignment, it will help maintain focus and guide the process. An effective charter covers areas such as the team's purpose, goals, methods, resources, boundaries, commitments, and process checks. Properly constructed, it can provide a basis to work through the normal issues encountered by new teams and help them deal more effectively with the conflicts that are certain to arise (Thompson, Aranda, Robbins et al 5). In addition to the charter, the team should develop a good set of ground rules to guide the expectations for interaction of the group. The ground rules should be clear and agreed upon everyone on the team.

Just as each person brings their own personal traits to the team, they also bring a unique background. This allows the team to draw from a variety experience, skill, and knowledge bases in working together. In forming a project team, it is important to assemble a group with the right skills and abilities for the work at hand. This often means the members will come from different functions and levels of an organization with various amounts of experience in working in teams. While building a team with individuals who bring a great deal of knowledge and experience relating to the project may seem ideal, it may also limit the creativity of the team. To obtain the best results, the team should find ways to challenge past methods and current thinking. Utilizing the diversity of experiences across the team may identify new approaches and options to the project at hand. Conversely, the team should contain a level of knowledge and experience to allow them to move forward at an acceptable rate.

As the team works on various aspects of a project, different skills are required. Time spent acquiring the capabilities required for that phase may hinder timely progress. The selection of team members should take into consideration the various functions required for success. Subsequent training and follow-up is necessary to support the team members if the project outcome is to be successful. Effective teams will incorporate learning into the process as a priority. At times, the team must rely on outside means to supplement their own abilities and must establish ways to access these resources.

Another consideration for team selection is the level of authority necessary to achieve results. If the project requires access to financial, labor, or other resources to execute the project, they must have the ability to obtain these resources. The scope and availability of resources granted to the team should be outlined early in the process and agreed upon by management. Teams often struggle in this area if tasked to achieve results without the necessary tools. Once these tools and resources are available, the members may require training and guidance in their use. A team sponsor or mentor may be able to provide the support and guidance necessary to keep the team moving forward.

In some situations, it may be beneficial to include a senior manager or executive with the authority to approve use of resources beyond the scope of the team. A concern with this approach is the effect on team dynamics. There is a natural inclination for people to defer to the "boss" rather than voicing their views. This may inhibit some of the beneficial interaction and idea sharing found in a group of peers. It may be preferable to establish a process for the team to present their needs to the appropriate manager or executive group for approval.

For a team to function effectively there are roles and responsibilities that must be fulfilled, such as leading meetings, agenda distribution, recording minutes, or arranging a meeting place. The ability to achieve results in a team environment is dependent the ability of the team to establish a structure that considers the combination of personalities, skills, and experience. In some teams, leadership responsibilities rest with one individual, others may rotate leadership at determined intervals, and still others may change leadership to best suit various stages of a project. Because of the varied interests, skills, knowledge and abilities of the members within a team, it is important to establish a leader within the team. Goals must be communicated by the leader so that the team members are inspired with a shared vision to maintain a commitment to the success of the project (Taylor 15).

A key role of the leader is to ensure that the group stays on task while promoting participation by all members. It is essential that the team establish the methods for performing tasks and monitoring progress. Since it is very easy for team meetings to get off track, agendas are useful to maintain order, structure, and time control. When meetings continually stray, members may become frustrated or lose interest; however, at times, it does make sense. The leader must make the judgment of when to allow a valuable process to continue despite the agenda. Team leaders must be careful to avoid the use of a member's positional influence to sway the direction of the team.

Most team members dread the task of recording minutes leading many teams to struggle with assigning this responsibility. The recorder must be careful to accurately capture the main meeting topics and decisions and avoid personal bias in presenting the information. Often this role limits direct participation; therefore, it may be desirable to rotate this role. An alternative would be to have a designated recorder who is not a team member to achieve that the greatest level of participation from all team members. Good record keeping will help prevent disagreements later in the process.

There may be other ongoing roles depending on the structure and focus of a team. Tasks such as updating a project timeline or updating a management group are often assigned to one or more members of the group for the duration of the project. Though often overlooked, being a team member is a role in itself. Mark Taylor, president and CEO of TAYLOR Systems Engineering Corp., maintains, "No leader exists without gaining the support of others. The first natural law of leadership changes our view of followers because it recognizes the collegial, partnering role they play. Followers are allies who represent the necessary opposite side of the leadership coin." (15)

A team can function at peak performance when all members take an active part in the team practice. Regardless of the team's structure or function, all members should participate in the process and provide feedback to the group. This can be difficult when there are strong personalities or authority figures on the team. A well-designed team charter and good ground rules will support a process where all team members feel equal and safe to share their views. This is especially important during brainstorming and problem solving processes where breakthroughs are often a result of one idea triggering another. By drawing from the diversity of the group, teams have a greater opportunity to identify new and innovative solutions to the problems they face.

With teams becoming increasingly important in business today, understanding team dynamics will help to ensure they operate effectively. Good teams are able to tap into the diversity of members to achieve higher levels of performance. Drawing upon the various skills and experience of each individual, teams can accomplish things that individuals cannot. Teams will function best in an environment that is committed to their success and provides the support necessary for their development. Establishing processes to evaluate and support teams in achieving effective interaction of members will support organizational goals as well. Without this process, team dynamics may inhibit performance of the group, leading to less than optimal results. The ultimate level of success achieved by the team will be a function of the effectiveness of member interaction. George Eckes, the primary consultant for General Electric Co. wrote in The Six Sigma Revolution, published two years ago "By far the greatest source of team failures is poor team dynamics and poor facilitative leadership behaviors" (qtd. in Taylor 15).Works Cited

Taylor, Mark. "When software fails The problem isn't the software, but the leadership."

Frontline Solutions 8 (00) 15. 10 March 00. http//search.epnet.com/direct.asp.

"Team Success You Can Help Make It Happen." Maintenance Management 506 (1) 5.

10 March 00. http//search.epnet.com/direct.asp.

Thompson, Aranda, Robbins et al. Tools for Teams. Boston Pearson

Yager, Ed. "Ropes Courses and Leaders." Enterprise/Salt Lake City 10 (000) 11.

10 March 00. http//web8.epnet.com/delivery.asp.

Please note that this sample paper on Team Dynamics is for your review only. In order to eliminate any of the plagiarism issues, it is highly recommended that you do not use it for you own writing purposes. In case you experience difficulties with writing a well structured and accurately composed paper on Team Dynamics, we are here to assist you. Your cheap custom research papers on Team Dynamics will be written from scratch, so you do not have to worry about its originality.

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What Is Happiness?

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"Pain is what we feel when our soul touches evil. Happiness is what we feel when our soul touches love!" That's a from a book by James McBride. Happiness is more than just being "content". Being "content" is a more settled, a passive feeling, maybe like after one has just eaten a large meal. Life feels good, life feels just right, you wish things could just stay that way. Happiness is a more active feeling, a vibrant joy that sings and dances inside you. Something we want to share with the world around us, and the people we care about. Often what we feel is contentment though, and not happiness.

Happiness is short-lived. That rush of energy is hard to maintain. We can get happy over the minute things in life. Like when a friend says hi, when we get something new. The happiness stays for but a minute though, and what we have left, if we are still feeling positive, is contentment.

The pursuit of happiness is in fact, useless. Its a losing battle because there is nothing to keep us permanently happy. When the friend goes away, when we tire of the toy, we fall back to contentment. Happiness leaves like a bird in the winter. Just leaving us to try to predict the date of its next arrival.

Whats wrong with just being content? Nothing, essentially, except that for some reason, we associate it with laziness, and we just start moping around kind of feeling satisfied. That's the mistake in our way of thinking. Happiness is available to me each moment of every day, it's a gift, and all I have to do is open it up. That's what I try to do on a daily basis. I try sharing a smile, playing with my nieces and nephews, hearing or telling good jokes, there are several opportunities to experience genuine happiness on a daily basis, and for most of my life, I missed them. Just because I thought I had to go find it. I would care less what anybody thought or did about anything. It wasn't until I became happy with myself that I started to spread happiness everywhere else, and I learned what real happiness was.

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Hong Kong vs Chile.A comparative Country Risk Analysis

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Why Hong Kong?

ABSTRACT

The objective of this research is to show and explain the comparative country risk analysis between the nations of Hong Kong and Chile. The findings of this research are to compare and evaluate the economic and political factors that affect the business environment of these two counties. The main purpose of this document is to illustrate why Hong Kong is better place to invest, compared to another country.

Hong Kong

Essay help on Hong Kong vs Chile.A comparative Country Risk Analysis

Hong Kong Country Profile

Hong Kong became a Special Administrative Region (SAR) of the Peoples Republic of China (PRC) on July 1, 17. Five years later, it remains the worlds freest economy, tenth-largest trading entity, and ninth-largest banking center. Hong Kongs standard of living exceeds that of Great Britain ($4,506 vs. $,41). The economy has been built on Hong Kongs status as a major trading port and financial center for East Asia. In particular, Hong Kong is renowned for its rule of law, lack of trade barriers, and low taxes. Despite a robust 10.5 percent GDP growth rate in 000, a drop in U.S. economic growth affected Hong Kong seriously and a concomitant fall-off in U.S. imports, with GDP growth collapsing to 0.1 percent in 001. The SAR was hit hard by the regional downturn of 17-8 and the US-led slowdown of 001-0. GDP growth will pick up again when external demand recovers, but the last five years have exposed economic shortcomings. The first is an over-reliance on the property sector for official revenue. This issue has attracted attention since the property price bubble burst in 17, leaving the government with a structural fiscal deficit. The second is rapid infrastructure development in China, which some fear risks sidelining the SAR. In response, officials are seeking to strengthen Hong Kong?s role as an entrep�t, focusing on financial services, logistics, tourism, and producer and professional services.

Hong Kong Country Risk

COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Overall Overall Political Economic Economic Liquidity

rating score risk policy risk structure risk Risk

March B B A B A

February B B B B A

Short-term risk event

Failure to bring about an improvement in the fiscal position?the deficit rose to the equivalent of 5.5% of GDP in 00/0?could prompt renewed speculation over the future of the fixed link between the Hong Kong and US dollars.

Political risk

The passing of laws that prohibit acts of ?treason, secession, sedition and subversion? against the Chinese state, even if less draconian than initially feared, will impinge upon the freedom of expression in Hong Kong. The creeping erosion of Hong Kong?s autonomy could damage investor confidence.

Foreign trade

Hong Kong levies virtually no import tariffs or duties and is considered a duty-free port. It also does not maintain anti-dumping or countervailing duties legislation or import quotas. According to the Economist Intelligence Unit, some excise duties are charged on four groups of commodities [including] hydrocarbon oil, liquors, methyl alcohol and tobacco. Overall, there are very few barriers to imports in Hong Kong, which has one of the worlds most accessible markets. It is an important market for U.S. exports and consumes U.S. manufactured and agricultural goods at a higher rate per capita than most of the worlds other economies.

Business environment ranking summary

Value of index() Global rank() Regional rank()

18-00 00-07 18-00 00-07 18-00 00-07

8.4 8.47 5 11 1

() Out of 10. () Out of 60 countries. () Out of 16 countries Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Sri Lanka, Taiwan, Thailand and Vietnam.

Economic outlook

Strong growth in re-exports will drive GDP growth of .7% in 00 and 4% in 004. However, consumer price deflation will persist in 00-04, as consumer and business confidence remains fragile. The current-account surplus will remain large in 00 (equivalent to 8.7% of GDP) because import growth is held back by weak domestic demand, but it is expected to narrow in 004 as stronger domestic demand boosts imports.

Debt outlook

Hong Kong?s total external debt is forecast to grow from around US$4.5bn (0.% of GDP) in 00 to US$60.bn (4.% of GDP) in 004, as private companies borrow in order to finance expanded operations in mainland China. The debt-service ratio will be low in 00-04, averaging just over .5%.

Economic forecast summary (Table 1)

00 00 004

Real GDP (% change) . .7 4.0

Consumer prices (% change; av) -.0 -1.5 -0.8

Exchange rate HK$US$ (av) 7.80 7.80 7.80

Current account (US$ m)

Goods exports fob 01,71 7,787 46,606

Goods imports fob -07,100 -,10 -54,47

Trade balance -5,8 -4,4 -7,741

Current-account balance 1,66 14,064 1,14

Current-account balance (% of GDP) 8.6 8.7 7.4

External financing (US$ m)

Financing balance ,74 ,44 7,886

Total debt 4,447 56,404 60,44

Total debt service 7,457 8,08 ,05

Debt-service ratio, paid (%) .6 .5 .6

Chile

Chile Country Profile

Chile has been a model of economic reform for Latin America since the beginning of the 180sa record of success that is due in large measure to a trade policy of unilateral liberalization coupled with an almost uniform tariff rate. Yet President Ricardo Lagos, who took office in March 000, has promoted a reversal of labor deregulation and spending restraint. Recently, Chile?s government approved long-promised labor legislation in September 001, adding significantly to the burden of doing business in Chile. Also, the tax on reinvested corporate profits rose from 15 percent to 16 percent, and will increase to 17 percent in 004. The tax increase will finance a cut in personal taxes to stimulate consumption. These two measures raise the cost of investment in Chile and will undermine prospects for lower unemployment, currently at percent; they also cast doubt on whether Chile will remain a model of reform for the rest of Latin America. The Lagos administration has committed to imposing a structural budget surplus rule of 1 percent of GDP but is struggling to keep its commitment. Chile recently signed a free trade agreement with the European Union, which now awaits ratification in Congress, and is engaged in trade negotiations with the United States. In addition, the low economic growth of the past five years, averaging .5 percent per year, prompted a meeting between representatives of the public and private sectors to elaborate a pro-growth agenda, which has yet to be introduced in Congress. Chiles fiscal burden of government score is 0.5 point better this year; however, both its government intervention and regulation scores are 1 point worse. As a result, Chiles overall score is 0.15 point worse this year, causing Chile to be classified as a mostly free economy.

Chile Country Risk

COUNTRY VIEW

FROM THE ECONOMIST INTELLIGENCE UNIT

Overall Overall Political Economic Economic Liquidity

rating score risk policy risk structure risk Risk

September B 1 A A C A

June B A A C A

Short-term risk event

A deterioration in crisis-hit Mercosur would have a negative impact on Chiles already volatile currency.

Political Risk

Although the ruling Concertacion and the opposition Alianza por Chile (the Alianza) coalitions have reverted to traditional consensus politics, the president, Ricardo Lagos, will use political polarisation in an attempt to stem the rise of Joaquin Lavin, the likely presidential candidate for the Alianza in 005. Nevertheless, the Partido Democrata Cristiano (PDC) constituent of Concertacion will maintain a moderating influence on government political strategy. Despite a wider than previously forecast fiscal deficit for 00, fiscal policy remains cautious.

Foreign trade

On January 1, 00, according to the U.S. Trade Representative, the government reduced the flat tariff rate of 8 percent on most products to 7 percent. Chile has by far the best tariff regime in its region; however, its tariffs are still high by global standards. On some agricultural goods, such as wheat, vegetable oils, and sugar, Chile applies duties on top of the existing tariff rate, and this can increase the effective tariff rate dramatically. The U.S. Trade Representative reports that due to low international wheat prices in 1 and 000, this system led to applied import duties as high as 0 percent, well above Chiles WTO bound rate. In May 001, the price band was temporarily lowered until March 00. Since agriculture is one of the most important export sectors, barriers on agricultural products distort trade significantly. If the price band increases after March 00, Chiles trade policy score could worsen in future editions of the Index.

Business environment ranking summary

Value of index() Global rank() Regional rank()

18-00 00-07 18-00 00-07 18-00 00-07

7.1 7.4 0 0 1 1

() Out of 10. () Out of 60 countries. () Out of 8 countries Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Venezuela

Economic outlook

GDP growth will weaken to .4% in 00, but should recover in 00 as confidence in both the domestic and global economies improves. Inflation is expected to remain within the -4% range set by the Central Bank. The current-account deficit will be manageable in the forecast period.

Debt outlook

The expansion of the debt stock is slowing and Chiles debt profile remains healthy. The debt-service ratio will decline in the forecast period on the back of higher export earnings and lower debt repayments.

Economic forecast summary (Table )

00 00 004

Real GDP (% change) .8 .4 4.

Consumer prices (% change; av) .6 .1 .

Exchange rate Ps US$ (av) 66. 685.47 60.54

Current account (US$ m)

Goods exports fob 17,440 18, 0,87

Goods imports fob -15,877 -16,0 -18,601

Trade balance 1,56 ,11 ,6

Current-account balance -0 -0 -565

Current-account balance (% of GDP) -1.4 -1.4 -0.8

External financing (US$ m)

Financing balance -5,7 -4,84 -4,10

Total debt 7,5 ,17 41,47

Total debt service 6,486 4,40 4,716

Debt-service ratio, paid (%) 7.8 1.1 18.1

Gross Domestic Product (GDP)

The GDP is measures the value of a nations output of goods and services for some period of time, usually a year. GDP can increase for two distinct reasons. It can increase because more goods and services are being produced, or it can increase because prices of goods and services have risen. The economic forecast summary tables (tables 1 and ), revel in recent data that Hong Kong?s is much stronger in its GDP than is Chile. Chile?s GDP is clearly poor compared to Hong Kong?s. Hong Kong?s GDP is definitively very high, compared to Chile?s and to other nation?s and this fact is really proven through both, recent and historical economic data.

Conclusion

According to the findings of this research, both nations have advantages and disadvantages over their economic, political and business environment factors. Hence, it is very hard to say that these two nations (Hong Kong and Chile) are similar in their country risk structure. What is a fact is that Chile and Hong Kong are very different in most ideologies of economic expansion and development. Political and economic risks of both countries are definitively the driven forces that control and expand the business environment of each, but at the same time these forces are the power that removes barriers of foreign trade and investment of both nations. Chile?s foreign trade status is low, limited and pessimistic. During many years, Chile has been struggling a lot in improving and expanding its foreign trade rank, even nowadays. During the time, Chile?s trade barriers have been fixed and improved, but they still high by global standards. In other hand, Hong Kong?s foreign trade and investment barriers are highly much lower than Chile?s in terms of import tariffs, quotas, duties etc. In short, Hong Kong is better place to invest, relatively to Chile, because of its low level of protectionism.

References

Library References (UHD) Historical Economic Growth

Online Journals. Web sites

http//www.heritage.org/research/features/index/

http//home.aigonline.com/country_view/0,4605,16,00.html

http//www.econ.pncbank.com/cra.htm

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