Pluralist Theories Of The Mass Media Media Essay

Pluralist Theories Of The Mass Media Media Essay Sociologists are interested in the mass media because of the powerful effect it has in peoples lives both politically and socially. Mass media is forms of communication directed to big mass audiences without any personal contact. This can be by radio, television, internet, billboards and so on. This essay is going to explain and critically evaluate the Marxist and pluralist theories of the mass media. An explanation of the media will also be included. Marxist theorists suggest that the media is dominated by the ruling class who are the major owners of the media corporations, which gives them total control and manipulation of media content and audiences in their own interest. In the view of the Marxist the media is seen as part of an ideal ground in which various class views are battled out. However, pluralists suggest that there is no dominant ruling class. They insist that the role of the media is to promote freedom of speech. In fact they see society as a multipart of rival groups and interests, of which none take the leading role all of the time. Pluralists believe that the government has a key position in regulating media content and ownership. Marxists view known as the instrumentalist approach makes several claims, of which the pluralists such as James Whale (1997) argue that Marxists case neglects important facts, and that it exaggerates the power of the media. Some of key claims are: That the owners of the mass media have direct control over the ideas communicated through the mass media, but the pluralists argue that it is not all owners who try to control media content. They actually do point out that there has been a witness of cases where top newspaper editors have disputes with owners over control of editorial content. Marxists continue to claim that mass media audiences are seen as passive consumers, of the distorted and partial accounts of news and the cheap distracting entertainment, which the media provides them with. As a result of this the mass audience just accepts whatever is presented to them, whereby a public opinion could be easily manipulated by the mass media. Pluralists criticise this point by arguing that the media owners and those who work for the media cant afford to ignore the views and interests of the public to buy or listen to what they want. Marxists claim that the capitalist owners of the mass media intentionally aim to promote ideas that give them huge massive benefits to their class of which they are members. But on the other hand pluralists call that an unhelpful concept. They go on to say that it is a ruling class ideology. Marxists point out that the reason why pluralists are very critical to Marxists instrumental accounts of the media is because pluralists themselves are often part of or funded by the media industries. Having to consider the above evaluation, now let us look at how sociologists explain the main ways in which the news is created by the media. Sociologists have argued that the process by which journalists create the news is a manufacturing process and that its production processes are quite predictable. Sociologist Phillip Schlesingers (1978) gave some results about the news study, by saying that journalists use a news diary to make their job easier, and that many articles can be prepared in advance due to tight deadlines. However, sociologist agree to a certain point that journalists are still controlled in what they present to the public because they are guided by news values, shared norms and values which makes them believe that it is essential to the public. Results drawn by researchers like Galting and Ruge (1981) showed that two key sets of factors involved in determining journalist news values are bureaucratic and cultural. This means that news items must be immediate and refer to current affairs, brief, simple and exiting. They insist that news must focus on elite decision makers and on personalities rather those issues. Overall, a conclusion can be drawn from the above to say that the whole process of making the news is socially constructed and that the media can have a considerable influence of public debate. The fact that the public respond a huge percentage to the media products, it has been proved that some reports are found to be misleading and over dramatised to give a good story. In a sense such stories are over exaggerated and they usually have a negative impact to the audience. Such reports cause moral panics and bring fear amongst society. After his research of gang fighting at the sea side, Stan Cohen argued that the media play a key role in creating moral panics. He drew a conclusion that the media over exaggerated in order to boost their sales and succeeded in attracting a huge number of readers. Another recent example of moral panic was about the Nigerian man who tried to blow up an American bound airline. The result of that event has brought on security changes at airports around the world. In fact at Heathrow airport a new security device which shows peoples nudity when they pass through, it was introduced shortly after the incident. If we look further into how groups of people are represented in the media either by gender or ethnicity background, we find that women and ethnic minorities are under- represented in position of power and influence in the management of the media industry. On the side of gender, sociologists say that the mass media is patriarchal; women appear less than men on television. Many adverts portray women as either house wives or sex figures in the media. For example in the sun news paper, they have dedicated a page three that shows half naked women on a daily basis. This definitely keeps the male audiences hooked on such news paper. There has been a great deal of research showing that media representations of men dominate the media and are more positive than that of women. For example, Dominick and Rauch (1972), Brelt and Cantor (1988), Cumberbatch (1990), found out that images of men were predominant in adverts, and that men are usually in more authoritative roles or in higher status occupation. They also claimed that the majority of voice -overs in adverts was male voices. Feminist sociologist Gaye Tuchman (1978) concluded that women are symbolically destroyed and marginalised in media representation. On the other hand, studies have showed that media representations of ethnic minorities are tremendously presented in terms of negative stereotypes. So many newspapers tend to represent ethnic minorities as a threat to the public. This ranges from being criminals, dangerous, pitied or illegal immigrants. On television, ethnic minorities tend to be in restricted range of roles. The broadcasting standards Commission (1999) found that ethnic minorities are more linked with arts, media, health and care roles than other roles such as legal professions. Researchers such as Sarita Malik (2002) believed that there is a racialised regime of representation within which black are portrayed as having different experiences from other groups. She concluded that Whiteness is portrayed as the norm. Karen Ross (2000) used focus groups of people from different ethnic minorities and she found out that each group was portrayed as homogeneous. Van Dijk (1991) used a hypodermic model and argued that newspapers have a major impact in developing a perception of immigration as a problem which may lead to racial attacks. In conclusion mass media indeed affects society in many ways. There some positive and negative attributes from the mass media that influence society in todays world. These are either political or social issues.

Classroom Etiquette and Dealing with Disruption

University of California, Davis Office of Student Judicial Affairs Establishing Classroom Etiquette and Dealing with Disruption The tone of the classroom interaction has a significant impact on the educational environment. These days, the pervasive use of devices such as cell phones and the fact that some students may be unaware of University behavioral standards or the impact of their actions on others can lead to repeated distractions and interruptions. University of California Standards of Conduct for Students provide that students may be disciplined for â€Å"disruption or obstruction† of teaching or other University functions, and for failure to identify themselves to or comply with the directions of University officials, as well as other violations of conduct standards (see UC Standards of Conduct at http://sja. ucdavis. edu/scs. html) Set the stage for a positive classroom experience by: †¢ †¢ †¢ †¢ Stating reasonable and clear expectations in advance Defining conduct standards and discussing rules of etiquette in your syllabus and during class Giving examples of desired conduct as well as unacceptable behavior Explaining the reasons for your classroom expectations and inviting student comments and suggestions Being a role model for expected behavior and keeping your relationship with students friendly and professional Responding when disruption occurs: If you believe inappropriate behavior is occurring, start by cautioning the whole class rather than warning a particular student. A technique is to stop class, calmly indicate the problem (e. g. side conversations, cell phones) and state that class cannot continue until the behavior stops. Before resuming, enlist the support of others by reminding the class that the disruptive behavior is taking away from class time and may result in some exam material not being covered in class. Students also have academic freedom, so it is important to exercise authority with compassion and self-restraint. It is best to correct innocent mistakes and minor first offenses gently, without ridiculing students’ remarks. †¢ If it becomes necessary to speak to an individual student about disruptive behavior, do so after class in a discreet manner. If the situation requires an immediate response in class, calmly and courteously ask the student to stop the conduct and to talk to you after class or during office hours. You may want to inform the class that students may be disciplined for disrupting class, and to reiterate that message if you talk with an individual student outside class because of his or her behavior. Remind the student that continued disruption may result in permanent removal from the class. †¢ A student should be asked to leave class if he or she engages in disruptive behavior that impedes your ability to teach the class productively. You have the right to contact the police if the student refuses to leave. If the student’s refusal to leave creates a safety risk or makes it impossible to continue class, you may also dismiss class for the day. If this happens, immediately contact Student Judicial Affairs (SJA). †¢ If a student is persistently disruptive refer him/her to SJA for disciplinary action. However, a disruptive student cannot be permanently removed from a class without a formal review, either through the student disciplinary process or through academic channels including the department and dean’s office (see Dir. 88-128) For more information about confronting cheating, about the disciplinary process, or about the Code of Academic Conduct, please call SJA at (530) 752-1128 or see our website at http://sja. ucdavis. edu. †¢ UC Davis Office of Student Judicial Affairs, January, 2007 What is disruptive behavior? Depending on the size and nature of your class what is considered â€Å"disruptive† may vary. In general, disruption and obstruction include b ehavior that interferes with, disrupts, or prevents normal classroom functions or activities. Disruptive behaviors can range from mildly distracting to clearly disorderly, violent, or dangerous. Depending on course rules set by the instructor, disruption in the classroom may include: †¢ †¢ †¢ side conversations, ringing cell phones or using a cell phone to talk or send text messages interrupting the instructor or other students monopolizing class discussion and refusing to defer to instructor, or listen to others; persisting when the instructor has indicated that the student’s remarks are off topic and it is time to move on entering late/leaving early, oving about the classroom filming, photographing, or taping the class yelling, arguing, swearing, bullying, or other intimidating behavior reading, sleeping, eating, drinking, or not paying attention shuffling through papers, cleaning out a backpack or purse during lecture showing up to class under the influence of alcohol/drugs †¢ †¢ †¢ †¢ †¢ †¢ Who decides what is disruptive ? Faculty have the authority and discretion to set rules that foster student learning. As a matter of academic freedom these rules can be tailored to the subject matter and the instructor’s teaching methods and learning objectives. For these reasons, the course instructor is the one who makes a determination about what constitutes disruptive behavior. SUGGESTED EXPECTATIONS TO INCLUDE IN A SYLLABUS The following expectations are to enhance your ability to learn in this class, to avoid disruption and distraction, and to improve the quality of the classroom experience. Repeated failure to meet these expectations may result in a lower grade for the course. Entering/Exiting Class: †¢ †¢ Please arrive on time to class and stay for the entire class period. Late arrivals and early departures are disruptive. If despite your best effort you arrive late, please quietly take a seat at the back of the classroom. Similarly, in the rare event that you must leave class early (e. g. for a medical appointment), email me in advance to let me know, then sit close to the rear door and leave as unobtrusively as possible. If you can’t be there on time or must always leave early because of a class or work conflict, either seek specific permission from me or do not take the class. During exams, ask permission before leaving to use the restroom. Try to use the restroom before coming to class. †¢ Noise: †¢ †¢ When class begins, please stop your conversations. Wait until class is completely over before putting your materials away in your backpack, standing up, or talking to friends. Electronic Devices: †¢ No taping, filming, or photography in class without my prior permission (whether by camera, cell phone, or other means). These activities are distracting and inhibiting to faculty and other students, may infringe upon privacy or copyright, and have a chilling effect on classroom discussion. Cell phones should be turned off. No talking on cell phones, text messaging, or emailing on laptops during class. Wait until after class to return any calls received. No listening to iPods or other electronic recording devices during class. †¢ †¢ Email Etiquette: †¢ †¢ †¢ You are expected to write as you would in any professional correspondence. Email communication should be courteous and respectful in manner and tone. Do not send emails that are curt or demanding. Do not expect an immediate response via email (normally, a response will be sent within two business days). If your email question is sent at the last minute it may not be possible to send you a response before an assignment is due or a test is given. Do not post personal information about yourself or others about third parties to the class list serve. For example, if you are having trouble with a lab partner you should see the instructor in person to discuss the specifics of the issue. Participation: †¢ †¢ †¢ [If participation is used as part of calculating the student’s grade] Because participation is counted as part of your grade, missing class could negatively impact your grade. Disrupting class could also lower your participation grade. Keep on the topic at hand. If you have questions off the current topic, address these outside of class at office hours or by email with the TA or instructor. Do not talk out of turn. Wait to be recognized before speaking and do not try to dominate a discussion with your questions or comments – give others a fair opportunity to participate. Common Courtesy: †¢ †¢ †¢ Do not read the newspaper during class. The shuffling of pages can be very distracting. Food and drink are discouraged in class. There may be times that you need a beverage or small snack during class. Avoid bringing in large meals or food that is noisy when unpackaged or chewed. Show respect for me and fellow classmates. Do not interrupt another who is speaking. It is okay to disagree with an idea but not okay to ridicule or make fun of another person and his/her ideas. Raised voices, derogatory language, name-calling, and intimidating behavior will NOT be tolerated. Do not disturb others by engaging in disruptive behavior. Disruption interferes with the learning environment and impairs the ability of others to focus, participate, and engage. †¢

Organizational Behavior Study Guide Essay

Organizational Behavior – is the understanding of how organizations work and how to have people perform efficiently. It is extracted from different areas of study, and is interested in how these fields are integrated into workplace behavior. Basic Leadership Model – knowledge of OB x behavioral skills = leadership effectiveness Organizational Behavior – 1) individual level is where members make sense of the world and derive motivation. 2) how teams function. How they deal, ethical decision making, and power politics. 3) Organizational level – how the firm is structured, selecting developing talent, creating sustaining a culture, manage change. Behavioral skills – facilitate team decision making, effective communication, effective negotiation, use power wisely, and managers organization change. Organization change over time – theories become more complex and and yet more accurate but they are harder to apply since they are all based on the situation and culture limits the applicability of these theories also. Pre 20 century – work was done from home/crafts, orgs were military and church, Adam Smith division of labor and theories of use of machinery to save labor costs. 1900 – industrialism and mass production using division of labor. 1920 – scientific management fred taylor: cult of efficiency task analysis, standardization, pay by performance, training, and systemic selection. Classical management: Henry Fayle: PODSC: planning, organizing, directing, staffing, and controlling. Unity of command: one leader, specialization: doing one activity and people got good at it so replacing was easy. Scalar chain: the yields of an output TxC input multiplied by constant. Span of control: how many subordinates under control. During this time was 5 to 7 now its over 20. 1930 – Hawthorne studies by Elton mayo. Findings were that interaction in the test group had increased productivity; feelings and supervision had big effect in production. Informal groups also were formed due to interaction. 1940 –group dynamics: when teams made their own decisions they required more information to be shared with employees and yet this was complex but made them have a sense of commitment to the job. Bureaucracy with Max Weber: job descriptions, specific responsibility, written rules, right of appeal, fair and equal treatment and managing became a profession to learn. 1950- Task leaders were only concerned with accomplishing the task. Social leaders were concerned with employees. Limits to rationality suffice rather than maximize. There is a limit of how much info. You can absorb. Gordon Howell: it asked for professionalism and more scientific knowledge. 1960,1970-Systems thinking environment and organization explaining and predicting behavior. Contingency thinking variables on factors. Leadership is contingent on many factors. 1980 and now – Mckribbin porter studies asked for more communication, and social skills and cultural diversity. Leader-awareness will make a better leader. Biographical traits, personality, attitudes and values, ability influences your perception and motives. And perception and motivation influence productivity, absence, turnover, and satisfaction. When hiring: skills, attitudes and values, and personality are looked at if you fit in the organization and see how well you work in teams. People who don’t fit in will have low performance high absenteeism/turnover. Age-older people are less likely to be absent for avoidable reasons and more likely to be absent for unavoidable reasons. (such as illness). Older people have les employment opportunities. Their job provides them with higher wages and pension benefits. Productivity there is no relation with age. Positive satisfaction 60+. Gender- no gender differences and no differences in productivity. Women are more likely to be absent because of children. Marital status- in general married people are more stable, brings job to be more valuable, fewer absence and turnover rates, more satisfied. Tenure – people who have been around for a long while are likely to stay and there is decreased turnover. Tenure on previous jobs help predict employees future turnover. Promotes conveys loyalty. Extra experience leads to increased productivity. Ability – skills that individual posses. Intellectual ability: mental activities, thinking, reasoning and problem solving. Those individuals who have a high intellectual ability and work at jobs that do not challenge them become bored and lack motivation. Physical ability: require physical traits for some jobs. Emotional intelligence: self awareness becoming aware of yourself and your areas of strength. Self management working without constant supervision. Self motivated ability to persist if there is setbacks or failures, social skills the ability to deal with others and their emotions, empathy ability to sense how others are feeling. Emotional intelligence affects job performance as employees can relate to each other. Cultural Values – experiences learned that shape our behavior. High low power distance: how equal or unequal you are between others in your society, u.s is low/democratic. Uncertainity avoidance: preferring structure than unstructured. Cognitive dissoance: when there is a conflicting emotion or tension after making a decision. Refers to any incompatibility than an individual might perceive between two or more if his or her attitudes, or between his or her behavior and attitudes. Personality – heredity, environment, situations determine personality. Locus of control: the degree to which people believe they are masters of their own fate. When we succeed we take credit for it, but when we fail, we blame others. Internals: in control of our destiny and are more satisfied and fewer absences. Externals: believe their lives are controlled by outside forces higher absences and less satisfaction. Extroversion: social, assertive. Introverted: reserved, timid. Machiavellianism: pragmatic, emotional distant, ends justify means, aggressive tactics. High mach’s: less persuaded, win more, manipulate more, flourish face to face and when there’s no rules. Self esteem: more confidence, higher risk takers. Self monitoring: ability to adjust to external behavior and situations. High Self monitors: aware of outside cues, and put on faces. Perceptions-input gives meaning to surrounding. Influenced by perceiver: attitudes, motives, interests, experiences, expectations. Target: motion, size, background, similarity. Situation: time, work, social. We judge people to find a behavior based on motives and interests. Attribution Theory- Attribution theory- Tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior. We attempt to determine if a given behavior is internally or externally caused. Assessed by 3 factors: Distinctiveness- whether an individual displays different behaviors in different situations. Consensus- is his response unique or expected from everyone in a similar situation? Consistency- does the person respond the same way over time? Fundamental attribution error- The tendency to underestimate the influence of external factors and overestimate the internal factors when making judgments about others’ behaviors. Self-serving bias- The tendency for individuals to atribute their own successes to internal factors and blame failures on external factors. Frequently used shortcuts in judging others: Selective perception- The tendency to selectively interpret what one sees on the basis of one’s interest, background, experience, and attitudes. Halo effect- the tendency to draw a general impression about an individual on a basis of a single characteristic. â€Å"he is all good and nothing bad† or vice versa. Contrast effect- Evaluation of a person’s characteristics that is affected by comparison with other people recently encountered who rank higher or lower on the same characteristic. Ie. Someone being assessed right after an expert or someone that does a bad job will affect how you view that person. Stereotyping- Judging someone on the basis of one’s perception of the group to which that person belongs.Profiling/Stereotyping- A form of stereotyping in which a group of individuals is singed out- typically on basis of race, ethnicity- for intensive inquiry, scrutiny, or investigation.Self- fulfilling prophecy- a situation in which a person inaccurately perceives a second person, and the resulting expectations cause the second person to behave in ways consistent with the original perception. Motivation- how much effort an individual puts forth to achieve organizational goals. Performance = motivation, ability, opportunity. Learning Theory – environment determines an individuals behavior. Law of Effect(operant conditioning, or reinforcement theory) behavior is a function of its consequences. People got to learn to behave a way to get what the want. Shaping Behavior- individuals behavior is shaped by rewarding each successive step that moves them closer to a desired response. Positive reinforcement: following a desired response with something pleasant, negative: following a response by termination or withdrawal of something unpleasant. Punishment: causing an unpleasant condition to eliminate an undesirable behavior. Extinction: eliminating any reinforcement that maintains behavior. Applied: Well pay vs sick pay, lotteries, and recognition programs. Need Theory- the individual is in control of changing behavior and not the environment. Maslows Hierarchy: Maslow’s hierarchy of needs. From Low to high. 1. Physiological- food, water, shelter, bodily needs 2. Safety- protection from emotional and physical harm 3. Social- affection, belongingness, friends 4. Esteem- self respect, autonomy, recognition, attention 5. Self actualization- achieving full potential, growth As each need becomes satisfied the next need becomes dominant. A substantial satisfied need no longer motivates. High order needs: internally satisfied such as social , esteem, and self actualization. Low order needs: externally and psycho and safety needs. Extrinsic rewards such as pay tends to decrease motivation for something that was intrinsically rewarding. Extrinsic rewards given to someone performing an interesting task causes interest in the task. Two factor theory: intrinsic factors such as advancement, recognition, responsibility, and achievement, are related to job satisfaction and extrinsic factors such as supervision, pay, company policies, and working conditions are associated with dissatisfaction. Hygiene factors – these factors are conditions surrounding the job â€Å"low order needs† and people complain about and in order to motivate people on the job hertzburg suggests to emphasize characteristics that people find intrinsically rewarding. Equity Theory- comparison of outcomes such as rewards and promotions, to inputs such as effort, skills, experience, and knowledge to others in the organization and then respond to eliminate any inequities. Inequity (under rewarded) low performance and over rewarded performance will increase. Job enrichment (vertical)- is the vertical expansion of jobs, increasing the degree to which the worker controls the planning, execution, and evaluation of his or her work. Expanding jobs vertically gives employees the opportunities, responsibilities, and controls that were previously reserved for management. Autonomy, feed back results, feedback channel, and recognizes individuals desire to grow. Job enlargement (horizontal)- is the idea to expand jobs, more tasks to work with, broaden the job. Skill variety, task identity: seeing the job getting fully done, task significance allows employees to form natural work units where asks they perform create meaningful whole. Employee Involvement Programs- allows orgs to focus on areas their workers know best. Gives sense of belonging, power, information, attitudes/values, and rewards move down the org, allows high needs to be satisfied, becoming motivated, committed, performance up, and satisfied. Line of sight: things way too far away that decreased motivation. Expectancy Theory- belief that an employee will be motivated to exert effort when it will lead to good performance then reward and hence satisfy its goals. Developed by Victor Vroom. Expectancy (effort – performance) belief That effort will lead to good performance. Skills experience and performance clarity is satisfied. Instrumentality (performance – reward) belief that good performance will lead to desired outcomes. Valence (reward – personal goal) the degree to which org. rewards will satisfy your needs and how attractive they are intrinsic and extrinsic. Effort to perform = expectancy, instrumental, valance. Gain Sharing- a formula based on group incentive plan. Focuses on productivity cost saving rather than profits. Relies less on extrinsic factors. Gain can happen without profit. Skill based pay- pay levels are based on how many skills employees have. Technical, managerial, and social. Provides flexibility to perform diff. tasks and skills are interchangeable. Facilitates communication between people to gain better understanding of the jobs. Downside, no promotions and there are limitations to how much you can learn before you top out. Timed training rotation: periodic shifting of an employee from one task to another. When employee becomes not challenged the employee is changed to maintain motivation levels high. Trait Theory- differs leaders from non-leaders. By looking at personal qualities to traits. Works well when in no structure or ambiguous teams. Leaders are born not made. Emergence of leadership rather than the leaders effect on performance. They have to be ambitious, energy, honesty, integrity, high self monitors. However, the theory may not work because fails to clarify the importance of different traits. Not a clear cause and effect relationship. Behavior Theories- assumes that leaders can be trained and the goal here is to develop potential leaders. The problem with these theories is that effective behaviors do not generalize across situations. Ohio studies: 2 dimensions: initiating structure: extent to which a leader is likely to define goals and expectations. Leaders focus is task. Consideration: the extent to which a leader has a relation with employees, trust, respect for ideas, and feelings. The leader is people oriented and focused on the employees.

American Depository Receipts And Global Depository Receipts Finance Essay - Free Essay Example

Sample details Pages: 12 Words: 3472 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Compare and contrast essay Did you like this example? Trade and commerce has been an important aspect of globalization. Since the 19th century, when the colonial era was at its peak, foreign markets were the reason for colonial wars since the importance of foreign markets were realized. However, towards the end of the colonial era, when newly independent countries began to build their economies from scratch they started clamping down on foreign investment and only decades later, slowly began to open up their markets after centuries of exploitation. Don’t waste time! Our writers will create an original "American Depository Receipts And Global Depository Receipts Finance Essay" essay for you Create order Corporate entities, in order to ensure larger capital started looking for foreign investors. For an investor, investing in a foreign corporation would mean unnecessary hassle since it would include going through a lot of technical procedures. In order to solve the problems of both the investors and corporations seeking foreign investment, the concepts of American depository receipts and global depository receipts were introduced. Introduced to the financial markets in 1927, an American Depository Receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.  [1]  The ADR price is set to suit the American market, where the face value of share prices is typically higher perhaps $20-100 or more. At these levels, each ADR usually represents several foreign shares, rather than just o ne.  [2] In order to ensure that investors from different countries and not one country alone may invest in a corporate entity, it was essential to make available such stocks on an international level. A Global depository receipt (GDR) is when [a] bank certificate issued in more than one country for shares in a foreign company. The shares are held by a foreign branch of an international branch. The shares trade as domestic shares, but are offered for sale globally through the various bank branches  [3]  . Indian companies are permitted to raise equity capital in the international market through the issue of Global Depository Receipt. GDRs are designated in dollars and are not subject to any upper limit on investment.  [4] Such machinery came to be used in India much later and was introduced first in the 1990s. This system was brought about by the liberalization process of the economy which started during that time. The use of ADRs and GDRs has steadily gained popularit y in India with corporations looking towards global markets and attracting foreign investments. Numerous Indian software companies have taken advantage of these schemes  [5]  and a multitude of other schemes specifically related to information technology companies have been brought about to encourage the issuance of ADRs and GDRs by such companies. In just a few decades, India will be one of the largest economies in the world. To reach that point, companies in India will have to invest colossal sums in developing their businesses. The use of American Depository Receipts and Global Depository Receipts have become commonplace and in India they are regulated by the Securities and Exchange Board of India. The use of ADRs and GDRs has simplified the process of investing in a foreign corporation making stock trading in international companies as simple as investing in a domestic company The paper shall explain the concept of ADRs and GDRS and the highlight their importance to th e Indian economy with the help of corporate examples. It is essential to regulate such liberalized mechanisms and therefore, the researcher shall look into the SEBI schemes, rules and guidelines and also the RBI circulars. CHAPTER I AMERICAN DEPOSITORY RECEIPTS IN INDIA American depository receipts are basically stocks of companies located outside of the US that are traded on US stock exchanges.  [6]  Although the concept appears to be rather unidimensional, there arise several complications in the regulation and trading of such stock. ADRs were introduced as a result of the complexities involved in buying shares in foreign countries. Primarily the difficulties associated with trading at different prices and currency values. For this reason, U.S. banks simply purchase a bulk lot of shares from the company, bundle the shares into groups, and reissues them on either the NYSE, AMEX, or Nasdaq.  [7]  The concept of American and global depository receipts were introduced and permitted in India through the Central Government scheme, the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993  [8]  . This scheme has laid down definitions, rules and procedures with regard to ADRs and GDRs. This scheme was deemed to have come into effect from the first day of April, 1992. 1.1: ELIGIBILITY CRITERION FOR ISSUING ADRs In order to understand the concepts and the working of the ADR system, it is essential to know certain definitions connected with the procedures of this system. ADRs are traded by depositories through a certain regulation. A depository means a company formed and registered under the Companies Act, 1956 (1 of 1956) and which has been granted a certificate of registration under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).  [9]  However, in order to be able to issue both ADRs and GDRs, registration with the Securities and Exchange Board of India  [10]  is not sufficient. Under the FCCB Scheme, 1993, a company eligible to issue ADRs and GDRs are known as an issuing company. An issuing company means an Indian company permitted to issue Foreign Currency Convertible Bonds  [11]  or ordinary shares of that company against Global Depository Receipts  [12]  in order to be eligible to issue Foreign Currency Convertible Bonds  [13]  or ordinary shares for the purposes of raising foreign funds, an issuing company require to obtain prior permission of the Department of Economic Affairs, Ministry of Finance, Government of India.  [14]  These issues need to conform to the rules regarding Foreign Direct Investment and the related policies and other mandatory statutory provisions.  [15] 1.2: REGULATION OF ADRs IN USA In the United States of America, ADRs are regulated by the Securities and Exchange Commission, (functioning under the Internal Revenue Services) through rules and other regulations. An ADR certificate is traded as stock and represents the underlying foreign shares, which can be obtained upon demand. The holder of an ADR is entitled to demand delivery of the underlying shares. The American bank converts dividends, interest, and principal from the foreign security into United States dollars. Once issued, an ADR certificate may be freely traded in United States dollars in the United States on the over-the-counter market. If certain SEC filings are made, it may be listed and traded on a national exchange. Taxpayer represents that any shares of domestic or foreign stock and any ADRs contributed are traded on an established securities market either within or without the United States.  [16] 1.3: INDIAN ADRs The system of ADRs allow the companies which have obtained permission to issue ADRs/GDRs to list the company in any of the stock exchanges namely the NASDAQ, NYSE or Dow Jones. The Indian companies have to comply with such regulations that have been specified by the Internal Revenue Service. Apart from these regulations, the investors can directly trade in Indian ADRs. The companies trading in ADRs include Infosys Technologies, Satyam, Dr.Reddy Laboratories Ltd, Silverline, Rediff.com Ltd., State Bank of India Ltd. etc. The trend of Indian ADRs has been rather unpredictable. Although most of the Indian companies have maintained highly satisfactory returns in the American markets, there have been certain upheavals in the market. The information technology boom was short-lived and when the tech boom had subsided, so did the craving to buy IT stocks. However, in spite of such shortcomings, the number of Indian companies with ADR issues contributed to about 80 per cent in the increa se on the number of Asian ADR issues.  [17]  Also, Infosys Technologies have seen their share prices tripling in the American market. Indian ADRs have, in all been rather successful in the US markets in spite of several limitations and are growing exponentially. CHAPTER II GLOBAL DEPOSITORY RECEIPTS IN INDIA Global depository receipts, means any instrument in the form of a depository receipt or certificate (by whatever name it is called) created by the Overseas Depository Bank outside India and issued to non-resident investors against the issue of ordinary shares or Foreign Currency Convertible Bonds of issuing company.  [18]  GDRs were also facilitated in India by the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993. GDRs are one of the most convenient methods of obtaining Foreign Direct Investment and are increasingly being used by a large number of Indian companies. 2.1: ISSUING GLOBAL DEPOSITORY RECEIPTS  [19] GDRs can be issued by companies with the requisite permission from the Department of Economic Affairs, Ministry of Finance, Government of India  [20]  . The issuance GDRs has to be done by a Domestic Custodian Bank.  [21]  The system requires the issuing company to deposit ordinary shares or bonds with the Domestic Custodian Bank and in accordance with the terms of agreement, they instruct the Overseas Depository Bank  [22]  to issue Global Depository Receipt or certificates in lieu of the shares deposited to the Domestic Custodian Bank. GDRs may be issued in any negotiable form and listed on any international stock exchanges for trade outside India. The FCCB Scheme, 1993 provides that GDRs may be listed in any Overseas Stock Exchanged, or Over the Counter Exchanges or though Book Entry Transfer Systems prevalent abroad.  [23] 2.2: LISTING GLOBAL DEPOSITARY RECIEPTS GDRs can be listed in any international stock exchange. Most of the GDRs are however listed in either Luxembourg or the London Stock Exchange and are traded from these exchanges. Indian issuers get access to all European, Asian and US investors with an interest in their shares. US investors are able freely to purchase GDRs listed on the London Stock Exchange through exemptions to US securities laws covering professional investors.  [24] Listing in international stock exchanges gives the right to the company to have foreign investor, however, the rules of that stock exchange with regard to GDRs and foreign investment has to be complied with. The London Stock Exchange has specific guidelines which have to be complied with by any foreign corporation seeking to be listed under the LSE. 2.3: IMPACT OF GDRs ON THE INDIAN ECONOMY From May 1992 onwards, Indian companies have been issuing Global Depository Receipts and Foreign Currency Convertible Bonds/Euro Currency Bonds (FCCBs/ECBs) on the Euro market on a large scale. Upto December 1995, Indian firms raised US$ 5,180 million through 64 issues of GDRs FCCBs. During 1995-96, seven Euro issues, all in the form of GDR were made which together raised $652 million. To date, 47 GDR issues have taken place, which raised $3,856 million, and 11 ECB issues which raised $998 million.  [25] GDRs have proved to be a rather efficient way for attracting foreign investment. Numerous companies ranging from Infosys to State Bank of India have started issuing GDRs in order to expand their share capital base. It is quite noteworthy that all such companies have received extraordinary response and have fared more than satisfactorily. There are now 20 Indian companies listed in London, ranging from large capitalisation companies such as GAIL and State Bank of India to smal ler technology and services companies. Another 15 Indian companies have listed elsewhere in Europe but in the absence of any trading in the location where they listed have been admitted to trading on the London Stock Exchange.  [26]  The recent inclusion in the London Stock Exchange are the UTI Bank, which raised over $250 million in March 2005, and Srei Infrastructure Finance, which came to the market with a $35 million offering in April 2005.  [27]  Vedanta Resources have till date been the most successful company trading in GDRs which raised US$ 1 billion in 2003 by an initial public offer. Amongst the latest companies intending to issue GDRs, Bharat Forge has come up with a proposal in April 2005. Bharat Forge will raise $100 million through Global Depository Receipts and $120 million through Foreign Currency Convertible Bonds (FCCBs). The GDRs represent one equity share of the paid-up value of Rs. 10 and were priced at $27.50 each, the company informed the Bombay S tock Exchange.  [28] 2.4: THE PROPOSED BHARTI MTN MERGER AND ITS IMPACT ON THE INDIAN ECONOMY The talks between the Bharti Airtel Group and MTN are very significant from the perspective of GDRs since some significant developments in this instrument were witnessed in the backdrop of the proposed merger. The deal was structured in a manner such that the Bharti Group would acquire 49% of MTN while MTN would hold 36% of Bharti. MTN itself would acquire a 25% stake in Bharti with its shareholders directly acquiring the remaining 11%. The 36% total acquired by MTN would be in the form of GDRs with voting rights. The primary issue in the proposed merger was whether the acquisition of 36% of the shares of the Bharti Group in the form of GDRs with voting rights would trigger various obligations under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.  [29]  On July 7, 2009 SEBI published its informal guidance in the matter pertaining to the proposed merger and addressed these issues. The Takeover Regulations lay two primary obligations upon the a cquirer; (i) to make an open offer to the other shareholders when the acquisition exceeds 15% of the total, and (ii) to make certain disclosures when the acquisition crosses certain threshold limits that have been predefined, e.g. 5%, 14% etc. MTN was scheduled to acquire 36% of Bharti not in the form of shares but in the form of GDRs with voting rights. SEBI opined that GDR holders would be required to make an open offer only when they converted their GDRs with voting rights into shares thereby exceeding their holding beyond 15%. There was consequently no requirement for an automatic open offer upon purchase of GDRs with voting rights in excess of 15% of the total equity of the company. SEBI quoted Reg. 3(2) of the Takeover Regulations to support its case which read: Nothing contained in Chapter III of the regulations shall apply to the acquisition of Global Depository Receipts or American Depository Receipts so long as they are not converted into shares carrying voting right s. As far as disclosures were concerned however, SEBI quoted Chapter II of the Regulations to infer that the exemption that applies to an open offer does not apply. Furthermore, Reg. 2(k) of the Takeover Regulations includes any security which would entitle the holder to receive shares with voting rights. SEBI believed that since GDRs can be converted into shares with voting rights, they would also fall within the ambit of this definition. SEBI thus concluded that all disclosure requirements that apply to shares would be applicable to GDRs as well. However, SEBI amended the Takeover Regulations on September 22, 2009 and brought ADRs/GDRs on par with domestic shares. If an entity holds 15% of a company through GDRs, then he is required to make a mandatory open offer to buy an additional 20% equity in the company. CHAPTER III REGULATION OF ADRs AND GDRs IN INDIA The Central Government, in 1993 first introduced these systems in India. In all countries which allow issue of ADRs/GDRs have some sort of regulation mechanism in place. In India, the Securities and Exchange Board of India and the Reserve Bank of India mainly through schemes, policies, rules and guidelines regulate ADRs and GDRs. FCCBs issued against GDRs are treated as foreign direct investment in the issuing company.  [30] 3.1: RESTRICTIONS AND LIMITATIONS ON ADRs AND GDRs The issuing companies have to act within certain parameters set by the central government. These limitations restrict the scope within which companies have to act; however, these guidelines are rather liberally constructed. In order to get an appropriate permission for issuing GDRs/FCCBs, companies shall require having a good track record for a period of three years.  [31]  However, this track record requirement was dispensed with subsequently.  [32]  The cumulative of foreign investment in an issuing company, both direct and indirect, cannot exceed 51% of the issued and subscribed capital of the company.  [33]  Investments in stock markets and real estate are however, not acceptable. However since GDRs/ADRs are equity instruments and there is no repayment liability on the issuing company. Unlike a commercial borrowing or a foreign currency convertible bond which carries a repayment liability on the company, GDRs/ADRs are full risk equity. It has therefore been decid ed that all end-use restrictions on GDR/ADR issue proceeds be removed.  [34] 3.2: FURTHER RELAXATION OF ADR/GDR NORMS The system of ADRs/GDRs in India are being constantly revised and reviewed. Certain technical difficulties have been restructured in order to ensure maximum flexibility in the system of such issuance. Issuing companies have lesser restrictions and are allowed to issue up to 100 percent of their share capital as ADRs/GDRs. However, foreign investors are still prohibited from investing in industries related to atomic energy, railways, mining, coal and arms and ammunitions. Certain other regulations that have been relaxed are as follows: Indian bidders allowed to raise funds through ADRs, GDRs and external commercial borrowings (ECBs) for acquiring shares of PSEs in the first stage and buying shares from the market during the open offer in the second stage. Conversion and reconversion (a.k.a. two-way conversion or fungibility) of shares of Indian companies into depository receipts listed in foreign bourses, while extending tax incentives to non-resident investors, allowed. Th e re-coversion of ADRs/GDRs would, however, be governed by the Foreign Exchange Management Act notified by the Reserve Bank of India in March 2001. Permission to retain ADR/GDR proceeds abroad for future foreign exchange requirements, removal of the existing limit of $20,000 for remittance under the employees stock option scheme (ESOP) and permitting remittance up to $ 1 million from proceeds of sales of assets here. Companies have been allowed to invest 100 per cent of the proceeds of ADR/GDR issues (as against the earlier ceiling of 50%) for acquisitions of foreign companies and direct investments in joint ventures and wholly-owned subsidiaries overseas. Any Indian company which has issued ADRs/GDRs may acquire shares of foreign companies engaged in the same area of core activity upto $100 million or an amount equivalent to ten times of their exports in a year, whichever is higher. Earlier, this facility was available only to Indian companies in certain sectors. FIIs c an invest in a company under the portfolio investment route upto 24 per cent of the paid-up capital of the company. It can be increased to 40% with approval of general body of the shareholders by a special resolution. This limit has now been increased to 49% from the present 40%. Two way fungibility in ADR/GDR issues of Indian companies has been introduced subject to sectoral caps wherever applicable. Stock brokers in India can now purchase shares and deposit these with the Indian custodian for issue of ADRs/GDRs by the overseas depository to the extent of the ADRs/GDRs that have been converted into underlying shares.  [35] CONCLUSION The Indian economy is one of the largest in the world and its growth rate is one of the highest in the group of developing nations, next only to China. The economic problems of India are multifaceted and emerge from several social, political and regional considerations. The progress made by the Indian economy averages out to be much less that the actual empirical change since the overwhelming population pressure defeats such economic progress. However, Indian industry and corporate gurus have taken India into the 21st Century with much to celebrate about. The process of liberalization of the Indian economy was acknowledged by the international community and India was instantly accepted as one of the significant players of the global markets. The pace at which the international businesses of many Indian companies are growing in some cases, far outpacing growth in India may mean for some companies that international operations can in future be financed more efficiently if they are capitalised separately from the parent company in India.  [36] Yet, there still exist some internal mechanisms which need to be modified in order to ensure a more hassle free transaction in the market. While India is opening up to foreign direct investment, individuals and institutions still have to register as foreign investors with the Securities and Exchange Board before they can buy stocks directly on Indias exchanges. Most individuals will likely find the red tape too daunting to cut; ex-pat Indians, however, have it easier because the government is encouraging such repatriation of capital.  [37] Although India has faced strong criticism from various countries regarding its internal policies and the complications in regulations, the prospect of investing in India is rather lucrative and therefore, Indian ADRs and GDRs globally have achieved a rather elevated status. India, among the European investors, is believed to be a good investment despite political uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India presents a vast potential for overseas investment and is actively encouraging the entrance of foreign players into the market. No company, of any size, aspiring to be a global player can, for long ignore this country which is expected to become one of the top three emerging economies.  [38]