Construction of Investment Portfolio

Construction of Investment Portfolio To: Mr Bernard Riemann From: Investment Manager Date: 28 November 2007 Subject: Construction of Investment Portfolio Overview: The investment portfolio recommended is based on the discussion with you. The key points that emerged from our discussions are as follows: Total investment required to be made is  £1,000,000 The portfolio should include at least 5 equity securities and at least 3 debt securities. Besides these some other investment products may also be included. The portfolio break up should be at a minimum: Equity investments:  £400,000 Investment in Debt securities:  £200,000 Investment in other products:  £350,000 Cash:  £50,000 You do not want to invest in ‘very risky’ investments, but are willing to accept some additional risk if there is adequate compensation in the form of increased returns Investment will be made for a medium to long term. Two months are considered as medium to long term. Investment in the recommended portfolio will be made on 28th November 2007 Your total wealth is approximately  £500,000. This includes: Business:  £3,000,000 Residential Property:  £800,000 Loans to Relatives:  £200,000 Amounts proposed to invest:  £1,000,000 Suggested Portfolio You are advised to adopt a lower risk and a more diversified institutional approach. This will require you to have a portfolio of assets. In general, riskier investments, such as equities provide the best returns over the long term, but they are also most volatile. However, because you are only planning to invest in short to medium term, you will not be much affected by the volatility. Nevertheless, combining different types of investment in a portfolio can help you minimise and variations especially if the securities in your portfolio are non-correlated (i.e. their prices move independently). On the basis of above information and the investing assumptions (Refer appendix A), the most appropriate asset model for you appears to be: Medium Risk Individual securities and investment products You are therefore advised to make your investments in the securities given in the table below: Asset Class Investment Sector Amount ( £) Percentage of Total Equity Securities (FTSE 100) British Airways Airlines 76,260 7.6% Land Sec (R.E.I.T.) Real Estate 94,250 9.4% Barclays Banking 78,600 7.9% Sage Group Technology 77,480 7.7% Morrison Supermarkets Retail 73,255 7.3% Debt Securities and Funds 9% Treasury Loan Bond 2008 Bond 100,000 10% SWIP Defensive Gilt Securities 100,000 10% HSBC Gilt Fixed Interest Inc 150,000 15% New Star UK Property A Acc Property Funds 150,000 15% Cash 100,155 10% Total 1,000,000 100% (Source: Yahoo finance) Rationale for the selection of each security/product (Refer Appendix B) Equity Securities The equity securities are all FTSE 100 securities. These securities belong to five diverse sectors, namely, Airlines, Real Estate, Banking, Retail and a sunrise sector of Technology. These sectors are not correlated thus reduce the portfolio risk. The rationale for selection of these and not other FTSE 100 securities are: British Airways Plc. is the leading airline in the United Kingdom and is one of the biggest in the world. It also has holdings in other airlines, such as the Australian, Qantas, and the Spanish Iberia. In addition the airline has recently signed a partnership with the American Airlines and companies such as Cathay Pacific Airways and Finnair. Therefore, it has bright prospects. Though the price trend in the medium term is bearish volatility has been increasing during last month. The Property sector is represented by Land Securities. Land Securities has a huge amount of real estate all over the UK. It manages a series of properties. The company has played a major role in transforming cities such as Birmingham, Canterbury, Bristol and York by working closely with the city authorities, and with the support of the government. The market is bearish but volatility is increasing. One may make massive profits in the short term. The banking or financial sector is represented in the portfolio by Barclays. Barclays began its operations in the 17th century in London. It is an international bank with 800 global branches. It is a strong entity in 60 international countries, in Europe, the United States, Africa, and Asia. The group remains a very important member of the UK banking community. Even though the Banking sector may have not performed very well in the past, its prospects are good. An investment portfolio should have at least one category of securities from this sector. Though medium term price trend for Barclays is bearish the boom conditions may benefit the portfolio as its volatility has been increasing. Sage group represents the sunrise sector in the portfolio. It is a British company that is considered a leader in management software sector. It has its presence in all major European countries and India, South Africa, Australia, the Middle East, and North America. Sunrise industry presents extremely good prospects. The Morrison Supermarkets Group represents the retail sector in the portfolio. The group specializes in supermarket distribution, offering quality products and increasing diversity. It has purchased Safeway, an owner of more than 500 supermarkets in Great-Britain. Medium term price trend is bullish. This market keeps a relative behaviour greater 16.232 than FTSE 100 INDEX. Volatility has been increasing during last month. It is a good time to make profit in the short term. Debt Securities/Funds 9% Treasury Loan Bond 2008 are Gilt edged bonds issued by the UK Government that will mature in 2008. These bonds offer the investor a fixed interest rate of 9% for a predetermined, set time. These bonds are especially recommended as you require a fixed, predictable income. These bonds also ensure a guaranteed return of capital. Though these securities like shares are prone to fluctuation, they are much more secure. Though the bond has a redemption date (July 2008), it can be sold at any time for the present market price. Investors are not tied down and there are no penalties for selling the stock. Gilts prove to be the best option in times such as the current times when interest rates are high and look likely to fall. Due to a decline in the interest rates the value of the stock will rise and can be sold profitably. SWIP Defensive Gilt Securities and also HSBC Gilt Fixed Interest securities have been included in the portfolio as they will provide a regular income. The investments do not have a minimum or maximum investment period. New Star UK Property is another place where investment should be made. Though in recent times a few large fund holders have got out of UK commercial property funds, for the next one year the fund is expected to give more or less stable returns. As you want a return of  £500 per month, the portfolio requires that  £100,155 should be deposited in the bank. This will carry an interest of 5.75% (at the current rate) and will meet your requirement for  £500 per month for the tuition fee of his niece. Expected returns of the portfolio over the two month investment period The portfolio is expected to give a return of 1.26% in the two months (Refer xls in Appendix C and E). Each month the portfolio will give  £500 per month from the cash deposited in the bank. Risk attached to the portfolio The risk percentage is 0.98% for the entire portfolio (Refer xls in Appendix C). Thus at no point of time investment portfolio will fall below the acceptable value over a two-month period. Total risk of 0.98% indicates how much risk your portfolio will bear over the two month period. This risk is primarily due to high level of expected variance in the share prices of British airways shares and also shares of Morrison Supermarkets. The debt securities and funds have an almost negligible variance and standard deviation. Therefore, this evens out the excessive risk in equity securities. Since, debt securities do not have much risk, the individual equity securities need to be closely monitored for risk. The easiest way is to monitor their beta levels. A beta measures a stocks volatility relative to the market. Stocks with betas of 1 move up or down more or less in along with the market. Stocks with betas of less than 1 tend to be less volatile than the market as a whole. Volatile stocks have betas higher than 1. However, betas too should be examined with care as if the market itself is volatile, then a stock with a beta of 1 or less still could be very risky. In conclusion, you should take the above portfolio as a recommendation. The market may change very fast and therefore needs to be closely monitored. APPENDICES Appendix A: Assumptions for the Report Mr. Riemann does not have any industry preferences It should be 10 asset portfolio The customer would be unhappy if the investment portfolio were to fall more than 10% in value over a two-month period. The customer would expect a monthly return of around 1%. The customer expects at least  £50,000 of the total  £1,000,000 to be retained as cash The economic conditions are defined as: Boom 0.6 normal 0.3 and recession 0.1 For equity securities only use FTSE 100 and 250 and for debt use popular markets. UK Bonds have been preferred. Appendix B: Movement of Equity Securities (Source: Yahoo finance) Appendix C Appendix D: Other Documentary Evidence British Airways Land Securities Barclays (Source: Yahoo finance) Morrison Supermarkets (Source: Yahoo finance) Sage Group (Source: Yahoo finance) Std Lf UK Gilt Rtl Inc SWIP Defensive Gilt A Inc HSBC Gilt Fixed Int Inc (Source: Yahoo finance) New Star UK Property A Acc (Source: Yahoo finance) Appendix E: Calculation of the Return under Boom, Normal Conditions and Recession Return on equity securities Return under normal conditions has been calculated. This is based on the movement of the stock prices. The return on the equity stock will arise from sale of shares at a higher price over the near future. On the basis of the past data the share prices under normal conditions have been estimated two months from November 2007. The % increase in the share prices is taken as the return during normal times. Variance in share prices are thereafter taken into account and the boom and recession values are calculated. Return on debt securities and funds This is based on the three year total return percentage. Two months percentage is worked out and then adjustments are made for variance. Return on 9% Treasury Loan Bond 2008 The bond pays a 9% coupon (divided into two semi-annual payments) and matures in July 2008. The bond has been bought at par. The income 9% per annum on the investment will be there until maturity. Return for 2 months = (9% / 12)*2 =1.5% If an amount less than par were paid for the return would be=Par/purchase price * coupon = running yield References The Financial Times, Markets Equities, accessed from http://www.ft.com/markets/equities Yahoo! Finance, FTSE 100 Companies, accessed from http://uk.finance.yahoo.com/q/bc?s=%5eftset=c= Barclays Financial Planning, Investment Planning, accessed from http://www.barclays.co.uk/financialplanning/investment-planning.html Investment Planning, accessed from http://www.bestinvest.co.uk/planning/portplan/index.htm

Citizenship Education Essay

About the Citizenship Foundation The Citizenship Foundation is an independent educational charity that aims to empower individuals to engage in the wider community through education about the law democracy and society. We focus, in particular, on developing young people’s Citizenship skills, knowledge and understanding. Our work includes Citizenship resources for a wide audience from teachers to young offenders, national projects for primary schools, active learning initiatives for secondary schools, nationwide training programmes, and community-based projects to develop citizenship education as a collective responsibility beyond school and college boundaries. Theme 1 – Purposes and Values At the Citizenship Foundation we believe that the primary phase presents an important opportunity for children to make sense of the changing society and the shrinking world they live in. While primary school teachers have never found it difficult to think about what kind of citizens they would like their children to become, the opportunities for developing the children’s knowledge have, in recent years, been squeezed by the need to deliver the core subjects and the pressure of SATs. There are, at best, limited opportunities for teachers in English schools to cover social topics such as family or crime because, unlike the situation in many continental countries, there is no tradition of a social studies curriculum for this age group. B. B. 1. B. 2. The findings of the recent UNICEF report i underline the need to attend to pupils’ social well-being. For example the UK had the lowest proportion (43. 3%) of 11 and 13 year olds who described their friends as kind and helpful. We consider it of vital importance to cultivate in primary aged children a concern to act fairly, responsibly and with compassion. B. 3. We believe that Citizenship Education is essential to individual empowerment. Not only should it be statutory, it should be a core element of the primary  curriculum, integrating taught and experiential learning in a coherent way leading towards a full understanding of what it means to be a member of the community with rights and responsibilities. As part of our submission to the Education and Skills Select Committee’s investigation into Citizenship Educationii, we have called for the current joint PSHE and Citizenship non-statutory framework to be accorded statutory status The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007. 1 B. 4. ‘Every Child Matters’iii and the Education Act 2002 make it a duty to consult children. Children therefore need to be systematically taught and given opportunities to develop the necessary skills, language and confidence to enable them to participate fully in decision making processes. Citizenship Education provides an opportunity for broadening cultural, social and political horizons, particularly in respect to developing a sense of identity, and an appreciation of the diversity of our society. These important functions of a broad social education should not be relegated to the margins or the ‘optional’, as they are within the non-statutory programme of study. With the lowering of the age of criminal responsibility, it is important that children have the opportunity to establish a sense of social and moral responsibility and develop a clearer understanding of the nature of their legal and moral rights and responsibilities. Changing societal conditions and the earlier onset of adolescence have made it urgent for primary schools to do more by way of explicit social and moral education. For example, children are exposed to the media, and have access to the internet in a way that was not the case even at the time of the introduction of the National Curriculum. In 2003 the OECDiv placed the UK at the bottom of a league table of young people’s risk behaviours, which included drinking, smoking, bullying and sexual activity. At the Citizenship Foundation we believe that the primary curriculum should be broad enough to provide an intellectual foundation for choice, affording children the ability to make responsible decisions at later stages of their education. Citizenship Education supports children in their personal development, equipping them to investigate the wider social and economic world, and to develop personal aspirations for it. In addition it lays the foundations for their political literacy and promotes the skills of community engagement. It provides them with an early introduction to financial literacy and agencies offering welfare support, providing them with knowledge of where to go for help which is essential, in an increasingly complex world, to the economic well-being, both of the individual and the nation as a whole. B. 5. B. 6. Theme 2 – Learning and Teaching B. 7. We know that spoken language is a vital part of human learning in the first ten years of life, and that it is a strong determinant of children’s ability to handle the written word. Citizenship Education is a vital component in any holistic approach to literacy and oracy, providing children with opportunities to analyse, compare, evaluate, reason, argue and justify. The work of psychologists such as Mercerv demonstrates the educational importance of exploratory talk to address shared problems. Citizenship issues are rich in such potential because they are real and relevant. Dunnvi has shown that attitudes and social concepts are shaped from an early age. From Key Stage 1 Citizenship Education provides an opportunity for teachers to nurture the development of this understanding in the context of a variety of issues salient to the young people themselves, developing understanding and fostering empathy before attitudes become entrenched. B. 8. The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007. 2 It offers a context through which children can develop critical thinking skills and emotional literacy in a coherent, integrated way. B. 9. Current educational practice, and the emphasis on target setting has led to more individualised learning, yet Vygotskyvii has identified learning as a social, interactive process that requires discussion, exchange and the sharing of perspectives. Citizenship learning provides opportunities for participation and active involvement. It is characterised by social thinking, and cannot be isolated or atomistic, as typified by much of the learning that currently takes place. Activities involving teamwork and enquiry skills, using Wallace’sviii TASC (Thinking Actively in a Social Context) model for example, build a sense of interdependence and community. B. 10. Recent research shows that children’s peers can be a powerful influence on their receptivity and motivation to learn. We also know that profound knowledge is acquired through the practical application of knowledge: we learn best through doing. Citizenship is rich in opportunities for discussion and dialogue between young people, and for applying their knowledge to make a difference to the world around them. The most effective Citizenship Education is built around pedagogical approaches that place active learning at the core. B. 11. Researchers such as Margaret Donaldsonix suggest that concepts presented in familiar contexts enable children to grasp ideas more readily than when they are concept free, yet there is still a tendency to teach the core subjects in a vacuum. The notion of curriculum breadth needs to be critically revisited, such that breadth is defined through a range of learning experiences rather than simply a collection of subjects. We also know that children are more likely to recall matters which are important to them. Citizenship Education can satisfy both these characteristics of learning, firstly by presenting a real life framework, or ‘big picture’, to help children make sense of new knowledge, and secondly by tackling issues of relevance and value to them such as fairness, bullying and responsibility for the environment. Indeed, Citizenship Education can provide a meaningful context for much of the primary curriculum, particularly aspects of learning in Literacy, History and Geography. It can also afford children opportunities to demonstrate their abilities across a wide range of intelligences, including inter-personal and intra-personal, which are currently not recognised and assessed through SATs. Theme 3 – Curriculum and Assessment B. 12. At the Citizenship Foundation we believe that primary education should try to achieve ‘Excellence and Enjoyment’ x across all subjects. Currently there is a tendency to focus on ‘excellence’ in the core subjects while restricting ‘enjoyment’ to the foundation subjects in the wider curriculum, as tends to be implied by the Primary National Strategy (PNS)xi. A more holistic, coherent and enriched approach is needed, with the children’s personal experiences, and their place and future in society, as a key focus. The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 3 B. 13. During the primary phase children develop an increasing awareness of social and environmental issues. They are entitled to opportunities to develop more informed, reflective and balanced views on these issues. The curriculum needs to be constructed in a way which promotes a higher level of interaction and cognitive engagement, as opposed to teaching with low cognitive engagement leading to pre-determined answers. Citizenship, with its emphasis on oracy, active learning, and emotional literacy can play an important role in redressing the imbalance of an overly narrow curriculum, and in providing children with the opportunities to apply their knowledge in areas such as peer mediation, school democracy and community involvement. B. 14. Citizenship Education fosters social development and nurtures the social self, thus enriching the school community. ‘Citizenship-rich’ primary schools (where practices such as peer mediation, students as researchers and school councils are embedded) offer social learning activities which are shown to have maturational and behavioural benefits to the individual and for the whole school. These benefits have the potential to become widespread across all schools if Citizenship is made statutory. B. 15. Citizenship Education is currently under-recognised and under-developed in the primary phase. This is especially the case in Key Stage 2 where issues such as bullying, stealing, the role of the police, respect for law, and community cohesion issues are commonly addressed but not always from a Citizenship perspective or in a consistent manner. Yet this is the time when attitudes to authority figures are being shaped. Moreover, the risk is that key issues are overlooked. For example, whilst young people are criminally responsible by age ten, this significant fact and its implications, are not systematically communicated to primary school pupils as part of the statutory curriculum. B. 16. We believe that the core concepts and skills associated with Citizenship should be more precisely mapped and strengthened, and that there should be a clear pathway of progression, with identified cross-curricular links, from the Foundation Stage through to Year 6, bringing Citizenship Education into line with and providing a sound foundation for Key Stages 3 and 4. B. 17. With regard to formative assessment we believe that the most appropriate method of assessment at this stage of learning is one based on ‘success criteria’xii which leads to more focused teaching, and enables and motivates children to judge and improve their own performance in relation to the specific learning objectives which will have been identified above, for example objectives associated with enquiry and communication skills. B. 18. We are currently working with the QCA to develop an appropriate eight point assessment scale to support the teaching of Citizenship across the primary and secondary phases. This will be based as much as possible on the empirical work of developmental psychologists, including their work on concept and empathy development. The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 4 Theme 5 – Diversity and Inclusion B. 19. In his recent review of Diversity and the Citizenship Curriculumxiii, Sir Keith Ajegbo highlighted the need to promote understanding between communities, and the importance of combating intolerance and religious extremism. He suggests that teachers should be prepared to tackle controversial topics such as immigration and the legacy of the British Empire, and that Citizenship lessons are the appropriate forum in which children can ‘discuss and debate their identities’. Whilst his focus was the secondary curriculum, we believe that this work should begin in the primary phase. B. 20. Indeed, from April 2007, upon the implementation of the Education and Inspection Act (2006), all schools, primary and secondary, have a statutory duty to promote social cohesion. Citizenship Education provides the logical curriculum response to this duty. B. 21. Citizenship Education is the subject which provides the most natural forum for discussion of issues relating to equal opportunities, diversity, faith and culture. Work around topics such as ‘similarity and difference’ and ‘rights and responsibilities’ helps children develop empathy, deepens understanding and builds greater confidence to express personal views. It supports them in developing a sense of who they are, what they can do, and how they belong. Thus it helps create social cohesion, which is essential for our personal well-being, and the maintenance of strong communities. Theme 8 – Beyond the School B. 21. Every staff and governing body needs to reflect on the purpose of their school, and its wider relations with the community. Active community engagement is central to the Citizenship Education programme. Citizenship Education has the capacity for building links between home, school, and the community in which they are situated. Parents and their children belong to the same neighbourhood, national and global communities, and Citizenship Education can promote meaningful intergenerational activities. When children participate in projects aimed at making a difference to their community, or become engaged in research about the views and responsibilities of people from a variety of social strata and professions, they begin to see themselves as active members of wider society Theme 10 – Funding and Governance B. 22. When Citizenship Education is appropriately represented within the primary curriculum, it will need to be resourced and funded accordingly. At the Citizenship Foundation we believe there to be a need for a coherent National Strategy for Teaching and Learning in Citizenship, fully endorsed by the DfES and QCA, and that this can only be implemented with proper training for headteachers and their staffs. This analysis is now supported by the report of the Select Committee. Equipped with the professional expertise, teachers will be enabled to recognise, nurture and develop The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 5 particular interests, talents and capacities to make it possible for each individual to flourish in our society. B. 23. We recommend that every school be required to establish a school council constituted largely of pupil representatives, and that pupil representatives should be invited to become associate members of their school governing bodies, in line with the new governing body regulations introduced in 2003. C. Conclusion C. 1. Citizenship Education has the potential to create more effective learners by promoting a reflective approach, enabling connection of knowledge, developing greater facility for shared learning with others, and increasing engagement and self-direction. Above all, Citizenship Education can play an important part in developing engaged and responsible citizens. The Citizenship Foundation has always argued that the failure to make Citizenship Education statutory in primary schools was a missed opportunity and results in developmental delay in this area. There are examples of excellent Citizenship practice in the primary phase on which to build but we argue that that current provision (based on a non-statutory joint framework for PSHE and Citizenship) is inadequate, and deserves a much higher profile. We recognise that primary schools and practitioners will need support for the implementation of the above developments, and in the light of this the Citizenship Foundation is campaigning for: †¢ A designated co-ordinator in every school, supported by an LA adviser; †¢ Citizenship to feature in a revised primary SEF form; †¢ NCSL primary programmes to include a primary dimension; We will be pleased to discuss any aspect of this submission with the review team. C. 2 C. 3. C. 4. The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 6 References: i UNICEF Report on Child Well-Being in Rich Countries (2007) Education and Skills Select Committee Report on Citizenship Education TSO (2007) Every Child Matters DfES (2003) ii iii iv OECD League Table of Young People’s Risk Behaviour. Programme of International Studies Assessment (PISA) (2003) Mercer, N. (2000) Words and Minds: How We Use Language to Think Together. Routledge. Dunn, J.  (1988). The Beginnings of Social Understanding, Blackwell Publishing. Vygotsky, L. S. (1962) Thought and Language Cambridge,MA:MIT Press v vi vii viii Wallace, B. Maher. J. et al (2004) Thinking Skills and Problem Solving – An Inclusive Approach David Fulton Publishers Donaldson, M. (1978) Children’s Minds. Fontana Press ‘Excellence and Enjoyment’ DfES (1993) Primary National Strategy (PNS) DfES (2003) ix x xi as advocated by Shirley Clarke in Enriching Feedback in the Primary Classroom. (2003) Hodder & Stoughton xiii xii Ajegbo, Sir K. Diversity and Citizenship Curriculum Review (2007) The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 7 About the Authors Marguerite Heath is an experienced Primary Headteacher who now directs the Go-Givers programme at the Citizenship Foundation. Go-Givers is a major new resource for teaching and learning about Citizenship in primary schools which is to be launched in June 2007. Don Rowe is Director, Curriculum Resources at the Citizenship Foundation and a co-founder of the Foundation. He has published and advised widely on Citizenship Education in Primary and Secondary schools. Tony Breslin is Chief Executive at the Citizenship Foundation and has published and advised widely on Citizenship Education and in a range of related educational fields. Ted Huddleston is a Project Manager at the Citizenship Foundation, and currently leads on the Citizenship Manifesto programme. He has published and advised widely on Citizenship Education. Elizabeth Griffiths is an experienced primary practitioner working on the development of Go-Givers at the Citizenship Foundation. Contact: Marguerite Heath The Citizenship Foundation, 63 Gee Street, London EC1V 3RS Tel: 020 7566 4148 Email: marguerite. heath@citizenshipfoundation. org. uk The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 8 The Primary Review submission from the Citizenship Foundation Citizenship Foundation, March 2007 9.

What Is a Conditioned Response in Psychology

A conditioned response is a learned response to a stimulus that was previously neutral. Conditioned responses are an important part of classical conditioning, a learning theory discovered by Ivan Pavlov. Key Takeaways: Conditioned Response A conditioned response is a learned response to a previously neutral stimulus.The concept of conditioned response has its origins in classical conditioning, which was discovered by Ivan Pavlov.By giving dogs food seconds after turning on a light, Pavlov found that the dogs could develop a conditioned response (salivation) to a previously neutral stimulus (the light). After a few repetitions of the light-food process, the dogs began to salivate in response to the light without any food being provided. Origins The concept of a conditioned response has its origins in classical conditioning. Ivan Pavlov discovered classical conditioning while studying the salivation responses of dogs. Pavlov noticed that while dogs would naturally salivate when food was in their mouths, they salivated at the sight of food. Some dogs would even salivate when they heard the footsteps of the person who gave them food coming down the hall. This observation suggested to Pavlov that natural salivation response had become generalized to a stimulus that was originally neutral. Pavlov conducted experiments to determine if he could condition a response to other neutral stimuli. In a typical experiment with a dog, Pavlov would turn on a light, then give the dog food a few seconds later. After these repeated pairings of light and food,  the dog would eventually salivate in response to the light being turned on, even without the presence of food. Pavlov labeled each stimulus and response involved in the process of classical conditioning. In the scenario above, the food is an unconditioned stimulus, because the dog didn’t need to learn to salivate in response to it. The light is initially a neutral stimulus, because at first the dog does not associate a response with it. By the end of the experiment, the light becomes a conditioned stimulus because the dog has learned to associate it with food. Salivation in response to the food is an unconditioned response because it happens automatically. Finally, salivation in response to the light is a conditioned response because it is a reflex that is learned. Examples Examples of conditioned responses are prevalent in everyday life. Many fears and phobias are the result of conditioned responses. For instance, if an individual is pushed into a pool before they know how to swim and flails around helplessly before being pulled out of the water, they may become fearful of physically entering any body of water. The fear of water is a conditioned response. Here are a few more examples of conditioned responses. If a mothers young children always hear the garage door opening before she enters the house after coming home from work, they will learn to associate the sound of the garage opening with her return. As a result,  the children will become excited when they hear the garage door before they’ve even seen their mother. The association of the garage door with her closely followed entrance into the house has conditioned the children’s excited response.If every time you go to the dentist your teeth are cleaned so thoroughly that your gums are raw and uncomfortable for the rest of the day, you may become conditioned to dread visiting the dentists office.People learn to associate a siren with a nearby emergency vehicle. When one learns to drive they also learn that they have to pull over to let emergency vehicles pass. So, if a driver pulls over as soon as they hear the sound of an emergency vehicle, their response is conditioned. While many phobias and fears are themselves conditioned responses, conditioned responses can also be used to overcome fears and phobias. Classical conditioning can be used to slowly and systematically desensitize an individual to the thing that is causing their fear until that fear has been minimized or extinguished completely. For instance, if an individual is afraid of heights, they would stand at a small elevation while practicing relaxation techniques. After they are calm and confident at the lower level, they’ll stand at a higher elevation. The process is repeated until the individual learns to overcome their fear of heights. Unlearning Conditioned Responses It can be a challenge to determine if a response is conditioned or unconditioned. The key to understanding the difference is that an unconditioned response happens automatically. Meanwhile, a conditioned response is learned and is only acquired if the individual has made an association between an unconditioned and conditioned stimulus. However, because a conditioned response must be learned, it can also be unlearned. Pavlov tested this after the dogs had developed conditioned responses to the light. He found that if he repeatedly shined the conditioned-stimulus light but refrained from giving the dog the food, the dog would salivate less and less until it stopped salivating completely. The gradual diminishing and eventual disappearance of the conditioned response is called extinction. Extinction can happen to real-life conditioned responses, too. For example, if you see a new dentist who doesn’t make your gums raw when you have an appointment and compliments you on your healthy mouth, over time you may find you no longer dread the dentists office. Sources Cherry, Kendra. â€Å"Conditioned Response in Classical Conditioning.†Ã‚  Verywell Mind, 10 March 2019.  https://www.verywellmind.com/what-is-a-conditioned-response-2794974Crain, William. Theories of Development: Concepts and Applications. 5th ed., Pearson Prentice Hall. 2005.Beaumont, Leland R. â€Å"Conditioned Responses.†Ã‚  Emotional Competency, 2009.  http://www.emotionalcompetency.com/conditioned.htm

Different Types Of Economic Systems - 1613 Words

Define Different Types of Economic Systems Traditional economies are steered through historical practise, often in which communities use original tools and methods to harvest and hunt for food, resulting in very little economic growth. Traditional economies have a tendency to operate in rural Third World countries and appear to live in poverty even if their needs are being met. When traditional economies interact with market or command economies, money plays an important role, it enables those in the traditional economy to purchase better equipment to make their farming, hunting or fishing more profitable. The United States had many features of a traditional economy before the Great Depression. In the beginning of the 20th century, 60% of the United Stated lived in farming communities, whilst 41% of the workforce were employed by farms. Over-farming occurred in response to high demand from Europe after World War I. In addition two-thirds of Haiti s population relies on subsistence farming for their livelihood. Their reliance on wood as a primary source of fuel has stripped the forests of trees. This makes them vulnerable to natural disasters, such as the earthquake that struck Haiti in 2010 Source: CIA World Factbook, Haiti s Economy; Marginal Revolution, Why Is Haiti so Poor?) Market economies are based on consumers and their buying decisions rather than under government control. Trends and popularity generate what businesses produce. The producers choose how to makeShow MoreRelatedCommunism, Capitalism, and Socialism Essay652 Words   |  3 PagesThree different types of economic systems used by governments are Communism, Capitalism, and Socialism. Each type of system is unique in different ways. Each has distinct aspects that make it what it is. In communism, the government runs everything and there are no social classes. 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Specification model of culture assumes the harmony and the consistency in bothRead MoreGlobalization and Its Types1508 Words   |  6 PagesExamples of these prominent pro-globalization organizations are the World Economic Forum and World Trade Organization. Being a pan-government entity ,the World Trade Organization formulate a set of rules that are to govern global trade as well as the capital flows using the process of member consensus, as they supervise their members in a bid to make sure that every one of them follow the rules. On the other hand, the World Economic Forum as a private foundation, though do not have decision making powersRead MoreRol e of Commercial Bank in Economic Development in India1737 Words   |  7 PagesINTRODUCTION:- Every country needs the services of financial institutions for accelerating the pace of development. Commercial banks have played a critical role in the economic development of a country. 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