Law of One Price and Purchasing Power Parity | Analysis

Law of One Price and Purchasing Power Parity | Analysis Introduction The gradual emergence of globalisation in businesses has contributed towards a significant rise in international trade. Consequently, trading across countries has been prominent among businesses in order to seek higher growth opportunities available in the international markets (Michie, 2011). â€Å"Our willingness to pay a certain price for foreign money must ultimately and essentially be due to the fact that this money possesses a purchasing power as against commodities and services in that country† (Gustav Gassel, 1922). The applications and conversions of currencies have become vitally important in international businesses in order to obtain or forecast the substantial costs and revenues for the purpose of financial information. The concept of Purchasing Power Parity (PPP) enables one to forecast the exchange rate of two different countries based on the assumption of similar purchasing power under law of one price of two countries’ currencies. However, various cruci al obstacles have been encountered in real life despite the concreteness of the proposed theories and one of the projected main concerns is to determine the price for a similar product across different markets and continents (Wang, 2009). According to the theory of Purchasing Power Parity (PPP), one currency should be able to buy the same amount of products which can be purchased from other currencies. This concept suggests that the currencies should be valued in a way that it allows consumers to buy similar quantity of goods irrespective of the currencies that they utilise in making purchases (Manzur, 2008). According to the Law of One Price (LOP), consumers should be able to purchase similar or same kind of goods at the same price despite the utilisation of different currencies. Nevertheless, the application of LOP is considerably difficult and would not prevail in certain predicaments across different economies and countries despite the supportive underlying theories (Mezzera, 19 90). Conceptual Understanding of Law of One Price and Purchasing Power Parity Law of One Price and Purchasing Power Parity play a crucial role in determining the international trade mechanism. The concept of LOP indicates that the price for homogenous goods and services should be the same despite all locations. The theory behind LOP is established through the equilibrium pricing of a product. The equilibrium market price of a product is achieved when market participants realise the different pricing for an identical product in different locations, (assuming no transaction costs and other trade restrictions) and take advantage of the arbitrage opportunities. The principle of LOP is highly justified because differences in the price of the same products in two different markets would create the perfect opportunity for arbitragers to benefit by purchasing products in a lower priced markets and selling them in markets where there are sold at a higher price. The transactions among market participants create pressure through demand and supply effect in the two locati ons and would substantially eliminate such opportunities and hence create an equal and transparent price. As a result, the price for the same commodity traded in two different markets should be same if they are converted into a common currency (Ignatiuk, 2009). The concept of LOP asserts that if same goods enter each country’s market basket, the PPP exchange rate should prevail between the two countries to maintain the principle of one price despite the difference in currencies (Eicher, Mutti and Turnovsky, 2009). The Law of One Price (LOP): Pd=S*Pf Pd is price of the good in the domestic economy whereas Pf is the price of the good in a foreign economy and S* is the nominal exchange rate between the two economies. The concept of Purchasing Power Parity (PPP) implies that the nominal exchange rate between two currencies should be equal to the ratio of aggregate price levels between two countries. This will create the similar purchasing power of one currency as compared to that of another. Therefore, according to PPP, exchange rates need to be adjusted between countries so that the exchange can be made equivalent to each currency’s purchasing power. The question arises immediate as there are two possible ways that PPP would hold to create the perfect equilibrium. Absolute purchasing power parity relates to the circumstances when the purchasing power of a unit currency is converted into foreign currency at the exchange rate in market, it is directly equal in the domestic and foreign economy (Taylor and Taylor, 2004). However , it is relatively hard to estimate the amount of identical goods in the baskets of the two different countries. Hence, it is more occurring to test relative PPP, which implies that the percentage change in the exchange rate over a given period just offsets the difference in inflation rates in the different countries over the time horizon (Taylor and Taylor, 2004). Therefore, if absolute PPP holds, then relative PPP must also hold, but if relative PPP holds, there is a probability that relative PPP might not hold as it is possible that at different levels of purchasing power of the two currencies, there are changes in the nominal exchange rates possibly due to the transactions costs (Isard, 1977). To consider whether the theory of perfect commodity arbitrage applies in the real world to create the law of one price, consider Figure 1 and Figure 2 which illustrate the notion of absolute PPP and relative PPP. For the relative data demonstrated in both the figures, it is evidently clear that neither absolute nor relative PPP seems to hold reasonably in the short run, thus does this imply that PPP does not hold in real life? According to the perfect commodity theory, equilibrium will appear and restore the differences between the relative prices which is clearly proposed by the principle of LOP by adjusting the exchange rates for the two locations. Hence, as far as this is concerned, perfect commodity arbitrage guarantees that each good is uniformly priced even with the initial difference of transaction costs between similar products in different locations, thus within a period of time in the long run,, the prices are adjusted to establish the perfect equilibrium of LOP, ensuring the same purchasing power in terms of currencies under the influence of PPP (Isard, 1977). Nonetheless, where does all the disputation arise concerning the practicality of LOP and PPP in reality? Analysis of the Proposition â€Å"In the assumed absence of transport costs and trade restrictions, perfect commodity arbitrage insures that each good is uniformly priced (in common currency units) throughout the world – the â€Å"law of one price† prevails’. In reality the law of one price is fragrantly and systematically violated by empirical data† (Isard, 1977). It is undeniably true that in the presence of perfect commodity arbitrage, each good will be substantially priced accordingly to demand and supply pressure in the assumed absence of transactions costs. However, the immediate response to this is that how practical and realistic is the assumption of transactions costs applicable to the principle LOP in order to create the exchange rate in PPP? The concept of LOP indicates that the prices for the identical products are the same across two countries, but this has not been the case in actual situation proposed by numerous scholars and researchers. The principle of LOP has been violated in actual practice and this has been supported by explanation that the transaction costs make it difficult to ensure same price for the identical products in two markets by creating a restriction in the equilibrium flow of the commodities known as the â€Å"border effect† (Rogoff, 1996). The transactions costs consist mainly of tariffs, taxes, duties and non-tariff barriers costs. For instance, the commodity that is priced lower in one market would involve transaction and transportation costs for participants to trade them in another market, and this will constitute to the additional costs of the commodity (Bumas, 1999). The volatility in the price differential would be progressively higher if the difference between the two countries is large. In addition, the transportation costs will increase due to the driving supply of arbitragers participating to transfer the commodity from one location with lower price to another with higher price, and the resulting impact would be differences in price disrupting the adjustment of arbitrage equilibrium (Clark, 2002). The study by Engel and Rogers (1996) have indicated that the price differential is greater in case of greater distance between the cities concerned, and it leads to substantial increase in the prices when they are compared in different countries proceeding to different continents. Furthermore, single or identical consumption of goods common to everyone is highly unrealistic because different consumers from different locations will have different preferences and choices, and it is always very difficult to have the same proportion of commodity identified in the comparing countries’ consumption basket (Clark, 2002). There is no guarantee that all commodities are traded between international economies and relatively to domestic economies, there are always substitutes in products if level of competitions is high but most of the cases, more differentiated goods are available compared to the product substitutes (Kim and Ogaki, 2004). Hence, when all these circumstances applied, the proportion of consumption from different locations concerning identical commodities in aggregate price indices will vary across countries. In sum, trading goods are more accurate drivers for the estimation of PPP compared to non-trading goods. This is because non-trading goods circulate within the domestic economy of that country and does not cross the barrier beyond international trade which involves additional transactions costs. Non-trading goods are more confined within the domestic economy compared to trading goods which are more expressed in exchange rates term when they are traded elsewhere around the world contributing towards the credibility of PPP. Hence, it is more useful to test with producer price index rather to use the consumer price index as suggested by the graphs in Figure 1 above. There is shorter deviation of PPP in producer price index compared to consumer price index in the short run from both the graphs. Hence, it often suggested that the PPP theory of exchange rates will hold at least approximately because of the possibility of international goods arbitrage. However, in real life, the practicalit y of PPP is disclosed to a visible amount of subjectivity and uncertainty as to which product is categorized as trading or non-trading goods, if identified, will it be the same around the world for the comparison of prices? Non-trading goods in UK might not necessarily be identical in US where that particular product might be a trading good for US instead and will this affect the producer price index, what about the LOP? To conclude the theory of PPP, there are definitely dreadful amount of assumptions underlying it to support its application and reliability. In real life, do all these assumptions prevail? Let’s examine and explore the credibility of the assumptions mentioned above by analyzing the Big Mac Index created by The Economists in 1986. As far as we know, Big Mac is a hamburger available from Macdonald’s Restaurant, the world largest fast food chain. What happens is that the price for a Big Mac in one country is divided by the price of a Big Mac in another country (both in domestic price) to obtain the Big Mac PPP exchange rate. This value is then compared and analyzed with the actual exchange rate in the market. The aim of this discussion is to determine the practicality of Big Mac index in real world in relate to the assumptions of PPP. The limitations are closely related to the assumptions mentioned above: †¢It is not possible to have the same price of a Big Mac from all around the world (results from the diagram below) due to different government tax policies, levels of competition and different transaction costs such as rental for different locations not just within particular area of a city, as well as different countries and continents. This will certainly add up to the costs of a burger and disrupt the notion of LOP. †¢Being the world’s largest chain of hamburger fast food restaurants, certain products need to be imported or exported by franchises all around the world to maintain the uniformity and the quality of the world’s prominent restaurant and this will certainly contribute to the different costs of the product disrupting the free movement of goods across borders. Source: Big Mac Index, The Economists 2013. Available at: http://www.economist.com/content/big-mac-index Furthermore, the assumption of single consumption is not possible in many countries, for instance, eating in McDonald’s Restaurant in some countries is relatively expensive compared to others and consumers would prefer eating in local fast food restaurants instead as a close substitute at a lower price. In addition, the demand for the consumption of Big Mac varies across different countries and this will not create an equal proportion of commodities in different countries’ basket. For example, buying Big Mac in China is not as high demand as buying Big Mac in the United States. The assumption made by PPP is highly unrealistic due to the disruption theory of LOP as it is not possible to have one common currency price for the same product demonstrated using the study of Big Mac Index. A similar investigation has been conducted by Haskel and Wolf (2001), they explored the deviations from the LOP by making use of the retail transaction costs in IKEA, a multinational Swedish furniture company. In performing the case study, samples were gathered comprising of 100 identical goods sold by IKEA in 25 countries. The outcome of the study indicated that there are significant common currency price divergences across countries for a given product. Conclusion In conclusion, according to PPP theory, the exchange rates should be adjusted in a manner where equal purchasing power is established with respect to a commodity in two markets. In the real world, this is highly unachievable and it is rather unrealistic to the extent that there is always difference in prices of the same goods. However, this scenario might contradict with the results and findings from Figure 1 and figure 2 as both the figures proposed that in the short run, PPP does not hold, whereas in the long run, the law of one price will prevail and PPP is therefore determinable. In practical applications this seems rather convincing as due to the matter of time, equilibrium will kick in and adjust the prices accordingly to the LOP. Nonetheless, one question still remains unanswered, how far can the LOP brings us towards the validity of PPP and determining the exchange rate between two countries? How certain are the assumptions of PPP on the data and findings by researchers and s cholars influence the outcome of the actual results obtained? As mentioned by Keynes (1923), â€Å"At first sight this theory appears to be one of great practical utility. In practical applications of the doctrine there are, however, two further difficulties, which we have allowed so far to escape our attention†. According to Keynes, the first difficulty is to make allowance for transport costs, imports and export taxes. The second difficult refers to the treatment on purchasing power of goods and services which do not enter into international level of trade. In sum, the theory of PPP derived from LOP is useful in theory for product pricing and the determination of exchange rate currencies, but as far as the limitations mentioned above is concerned, it should sensibly be considered as a guidance only rather than a direct application in real world. References: Apreda, R. and Pelzer, L.Z. 2005. Focus on Macroeconomics Research. Nova Publishers. Abildtrup, J. 1999. Modern Time Series Analysis in Forest Products Markets. Springer. Bumas, L.O. 1999. Intermediate Microeconomics: Neoclassical and Factually-oriented Models. M.E. Sharpe. Clark, E. 2002. International Finance. Cengage Learning EMEA. Engel, C. and Rogers, J.H. 1999. ‘Violating the Law of One Price: Should We Make a Federal Case Out of It?. Board of Governors of the Federal Reserve System. Eicher, T., Mutti, J.H. and Turnovsky, M.H. 2009. International Economics. Routledge. Haskel, J. and Wolf, H.C. 1999. Why Does the law of One Price Fail?: A Case Study. Centre for Economic Policy Research. Isard, P., 1977. How Far Can we Push the â€Å"Law of One Price†?. American Economic Review, 67 (5), 942-948. Ignatiuk, A. 2009. The Principle, Practise and Problems of Purchasing Power Parity Theory. GRIN Verlag. Jonsson, G. 1999. Inflation, Money Demand, and Purchasing Power Parity in South Africa. International Monetary Fund. Michie, J. 2011. The Handbook of Globalisation, Second Edition. Edward Elgar Publishing. Manzur, M. 2008. Purchasing Power Parity. Edward Elgar Publishing, Incorporated. Mezzera, J. 1990. Monopoly Profits and the Law of One Price: The Cost of Misapplied Theory, Volume 146. Helen Kellogg Institute for International Studies, University of Notre Dame. Rogoff, K. 1996. The Purchasing Power Parity Puzzle. Journal of Economic Literature, Vol. 34 (2), 647-668. Ricci, L.A. and MacDonald, R. 2002. Purchasing Power Parity and New Trade Theory. International Monetary Fund. Silver, M. 2010. Imf Applications of Purchasing Power Parity Estimates. International Monetary Fund. Taylor, A.M. and Taylor, M.P. 2004. The Purchasing Power Parity Debate. Journal of Economic Perspectives, Vol. 18 (4), pp. 135-158. Wang, P. 2009. The Economics of Foreign Exchange and Global Finance. Springer.

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Reformation. For the rest, the religious aspects should not be overstated because princes would readily trade religious conviction for political advantage; Catholic France in particular was eager to support Protestant states against the Hapsburg. By the beginning of the 17th century there was parity between the faiths among the small principalities that made up Germany. Of the larger states, three of the electors of the Holy Roman Emperor were Protestant, another three Catholic, and the seventh and final one was the emperor himself, in his capacity as king of Bohemia.This apparently stable majority for Hapsburg ambition was undermined by the fact that the majority of Bohemians were Protestant, and therein lay the spark of the Thirty Years War. This came in 1617 when the Emperor Matthias placed his heir apparent Ferdinand on the throne of Bohemia to ensure his succession to the imperial title. Ferdinand was a known Catholic zealot and his subject nobles urged him to exercise restraint in the proclamation of religious edicts. When Ferdinand ignored their entreaties, a group of Protestant nobles burst into the royal palace in Prague in May 1618, and threw his advisers out of a window into the moat/maiden.The ‘Defenestration of Prague' was the signal for a Protestant uprising in Hungary, Transylvania, and Bohemia, which was a direct threat to the continued prosecution of war against the Dutch, who would doubtless find new allies among the truculent Protestant population of central Europe in their struggle against the Spanish Hapsburg. Yet no single prince was willing to set himself up as a rival king of Bohemia in opposition to the legitimately constituted sovereign. In 1619 Ferdinand succeeded to the imperial throne on Mahatma's death, andFrederick of the Palatinate rashly agreed to stand as a rival king of Bohemia. The Palatinate bordered on the Spanish Netherlands and Catholic Bavaria, providing two further flashlights in addition to Bohemia itself, and Sp anish troops soon occupied the Lower Palatinate while the Bavarian occupied the north. The Dutch and English, both supposed champions of the Protestant cause, were reluctant to become involved, sensing a lost cause in the making. German Lutheran stayed neutral for the time being, leaving their rivals, the Calvinist, to their fate.Hence Frederick's army as crushed at the battle of the White Mountain outside Prague in 1620. Rebellious Bohemia was thoroughly ravaged by the imperial mercenary army, and forcibly restored to the Catholic faith. The Hapsburg seemed to have settled matters in their favor, therefore the Protestant princes belatedly began to cast around for allies. A grand Protestant league was formed consisting of some German states, England, and Holland, secretly supported by France, and led by the imprudent Christian IV of Denmark, who began the attack in 1626.The Danes were run ragged for three years by the more numerous imperial and Bavarian armies, led by the Bohemian m ercenary Willingness, and by 1629 they had had enough of fighting without effective support from their allies, and sued for peace. The alliance collapsed, and it seemed that Protestant hopes were lost, particularly when Ferdinand attempted to return to the state of affairs that had existed at the time of the Peace of Sagebrush in 1 555, demanding the return to Catholicism of lands that had subsequently converted to the Protestant faith by issuing the Edict of Restitution.For once Calvinist and Lutheran were united in heir opposition to this draconian policy. But by seeking to exploit their victory over the Danes to obtain an outlet to the Baltic, from which to strike at Dutch maritime commerce, the Hapsburg provoked their nemesis. Gustavo Adolph of Sweden, offended by Hapsburg behavior and rescued from an inconclusive war against the Poles by French mediation, declared war in 1630.By this time the cost of the war had exhausted the imperial treasury, and Ferdinand policies had weaken ed his alliances within the empire, so the Swedish invasion came at the moment when the empire was least prepared to repel t. The Swedish army was tough and battle-hardened and won two stunning victories at Brownfield in 1631 and L;dozen in 1632, although Gustavo was killed during the latter. But so too was the imperial cavalry leader Oppenheim while Willingness, who had made himself prince of Knuckleball, was assassinated in 1634.It is not clear whether this was because he no longer seemed able to win, because Ferdinand was afraid of him, because Riches paid his lieutenants to do it, or a combination of all three. Constant campaigning and attrition had deprived the Swedes of their best native roofs, who had been replaced by inferior local freebooters, and this contributed to their defeat at redlining in August 1634, where the Swedish Gene Horn and the new champion of Protestantism, Bernhard of Saxes-Whimper, were roundly defeated by the veteran Spanish-imperial army with the loss o f 14, 000 men, and all their artillery.The last hope for the Protestant German princes was that Catholic France, fearing Hapsburg hegemony, would come to the rescue. Thus the ascendancy gained by the Hapsburg after redlining was destined to be short-lived. Meanwhile, the Dutch were able to roll back the Spanish, who were crippled by an economic collapse and revolt at home. The Spanish Atlantic fleet was destroyed by the Dutch Adam Tromp at the battle of the Downs in 1639, and Portugal declared herself independent in 1640. The Spanish tried to renew the offensive, but were decisively defeated by the French at Rococo.War exhaustion now led to a desire for peace, but there was no consensus on how this was to be achieved, and the fighting dragged on. The breakthrough came in 1648, when Spain and Holland concluded heir 80-year war, which had become enmeshed in the wider conflict of the Thirty Years War, and the other combatants followed suit and settled their differences one after anothe r. These agreements were rolled up into the Treaty of Westphalia, which was to condition the political map of Europe for over a century.Sweden gained a foothold on the southern shores of the Baltic, France had secured her borders, and the Dutch had achieved nationhood. Overall the Protestants had secured their position in Germany, and Bavaria and Brandenburg (Prussia) were to emerge as significant independent states. The Holy Roman Emperors were left with little influence or control over German affairs, as the principle of the Peace of Sagebrush, ‘cuss region, ells religion, was restored: each state would follow the faith of its ruler. The Thirty Years War had a lasting impact.Thousands were displaced rather than killed, and often the peasantry was permanently weakened, usually to the advantage of the landed nobility. Yet there is no absolute consistency, for the war enabled some humble men to rise. The peasant Peter Mainlander commanded an army and became a count; his daughte r married a reigning prince. During the war, Grottos had published De Sure Elli AC pacts arguing that individuals deserved protection against the ravages of war, and one of the war's legacies was a desire by rulers, as well as their subjects, to make war less destructive.Although the military revolution thesis is now widely questioned, war did change during this period-?though arguably even more significantly after it. If the relationship between evolving armies and evolving states was less direct than the thesis suggests, it was nonetheless important. Armies grew bigger-?Willingness may have commanded as many as 150, 000 men and Gustavo perhaps 120, 000-?and ere often better organized, with a premium attached to the marshalling of infantry firepower and the improvement of artillery.They became notably more costly: the French army cost about 16 million livers tourism in the asses and over 38 million after 1640. Many senior commanders were commercial entrepreneurs, with their subordi nates subcontractors in a commercial venture: it is unsurprising that the infantry subunit was called a company. Disgust at some of the more extreme effects of this encouraged hesitant steps towards the professionalisms of officer corps,

Good Topics to Write an Opinion Essay on for Kids Ideas

Good Topics to Write an Opinion Essay on for Kids Ideas Definitions of Good Topics to Write an Opinion Essay on for Kids As the reader proceeds to read your arguments, you wish to be certain that they will continue to bare your thesis in mind. While presenting either side of an issue is essential to the format of an opinion essay, the objective of this writing style is to produce a rational argument that supports one particular perspective over that of another. An important point of earning a convincing argument is to obey a logical structure. In the opinion essay introduction, you've got to earn a crystal clear stand about your position on the subject. The advice below function as a handy guide whenever you are writing your opinion essay. Each essay section needs to be written accordingly. Start researching, and begin writing! Compile your bibliography in line with the necessary style guide. Who Else Wants to Learn About Good Topics to Write an Opinion Essay on for Kids? Just a couple of steps are essential to help a person write a supported opinion essay successfully. The sample below will supply you with an opinion paragraph example structure that will help you write your essay. For example, the evidence which you use may differ from observations to reliable stats. Opinion essay would like you to discuss and in a larger degree to support a single opinion. Ensure it consists of a strong thesis or a succinct sentence that sums up the principal point of the full essay. The conclusion ought to be the shortest portion of your paper. A superb conclusion can summarize the key points of the essay in a couple of sentences. The Rise of Good Topics to Write an Opinion Essay on for Kids This kind of academic writing is intended to tell the audience what you think and feel about a specific topic. Opinion essay writing offers a good opportunity to express your individual feelings on a particular topic or issue that you're feeling interested in. You should contain examples and evidence that demonstrate a true comprehension of your topic. Also, remember a few pretty normal tips on picking a topic for an opinion essay. The Good Topics to Write an Opinion Essay on for Kids Trap This part implies reiteration and thus do not be fearful of it. Explain why it is you're supporting an issue in a particular way. Within this component of your work, you have to create a content which will be utilized in your body paragraph. Let's tackle this issue! The Nuiances of Good Topics to Write an Opinion Essay on for Kids For this kind of essay, expressing your thoughts only isn't enough. Make certain your supporting statements match the sort of composition you're writing. A comprehensive sentence will let us work on supplying reasons employing academic language and linking words. You have to supply logical reasons and examples for it also. An additional problem of the majority of opinion essays is choosing the appropriate topic. You've got to explore BOTH of them and also provide your opinion. Your opinion needs to be stated clearly. Choose one which you get a strong opinion about. Supported opinion essays enable students to better their writing, research and critical thinking abilities. After completing this simple groundwork, th e true job of writing the essay starts. To begin with, you should conduct your studying to support a personal stance. Careful planning and thorough research of the problem can help you formulate your opinion and successfully finish the assignment. Finally, your conclusion is simply a summary. Make sure that the evidence which you use matches your stated opinion. When you're confronted with the question of the way to compose a conclusion for an opinion essay, there's a normal method to follow. This statement comprises a tiny sour note. The Good Topics to Write an Opinion Essay on for Kids Game Nowadays you have the meat of the paragraph and just must combine all of it in complete sentences within the next step. Occasionally, you can choose to add additional paragraphs to the primary body. Your very first paragraph needs to be your introduction. It is made of an opening paragraph, a body part, and a conclusion. Good Topics to Write an Opinion Essay on for Kids Secrets The cost of an essay is dependent upon the quantity of effort the writer has to exert. In addition, a customer may ask the writer to submit part of the job for review and, if needed, ask them to make corrections. Just click the Order button, and receive an essay that you dream about! Do so respectfully so as to demonstrate your credibility for a writer. IELTS opinion essays are extremely typical in the exam. This IELTS Writing task simply asks you to provide your opinion, which seems to be an extremely open question. One of the most difficult questions relating to this sort of writing is the best way to come across interesting opinion essay suggestions to write about. It can be somewhat confusing, particularly if you are a newcomer to IELTS, to work out the several types of essay. To do this, just begin reading up on your topic, and because you read, gather the facts and figures that you are going to end up using as evidence. Make sure you don't present any important ideas employing a list. Though some say no cost public transportation would assist the environment and decrease traffic, others think no cost public transportation is too costly, and the government can't afford to cover it. The good thing is that it may be something pretty easy and opinionated (obviously), meaning that you won't need to research a great deal of information.

Movie Analysis Safe Haven - 1583 Words

The movie Safe Haven contains a lot of in depth relationships and is very representative of the importance of communication. Katie (AKA Erin) comes to a small town in hopes of finding a new beginning, a new life, and ultimately a new â€Å"her†. Katie is the presented self, as she wants all those she meets to know her as Katie, a young girl that came for a fresh start and a clean slate, but what they do not know is her dark past and her real name. She is ultimately living a lie, but people believe her to be truthful because of her presented self. Katie ended up in this small southern town as a result of running away from her abusive husband. Katie didn’t approach the situation â€Å"head-on†, but rather avoided the conflict entirely by leaving.†¦show more content†¦However, this takes a lot of diligence and management to prevent her presented self from being broken down. This management is also important for maintaining her relationship with Alex, Lexi and Josh, which are the most important individuals in her life. Katie has a very difficult time feeling comfortable around them, but as they start to disclose, she starts to do the same. A statement that I found to be very important in this movie is when Jo, Katie’s neighbor who turns out to be the spirit of Alex’s deceased wife, tells Katie that you can live in the middle of nowhere but you will never be able to avoid communicating with people and therefore, she needs to put herself out there and work on her relationship with Alex and his kids. This was a turning point in the movie because Katie realizes that she can let people in and self-disclose while maintaining her presented self. Katie has lived in fear far to long, and her â€Å"past-life† schemas have been responsible for this fear as well as the barrier of communication between Katie and all the new individuals in her life. Katie â€Å"hides† her life, while still disclosing, but she still jumps at all the things she would have if she were back in Boston. This shows the weight that schemas carry in ones life. Additionally, Katie’sShow MoreRelatedAnalysis Of The Movie Safe Haven736 Words   |  3 PagesThe movie I chose to watch was Safe Haven; this movie starts with a woman, named Katie, trying to run away from what looks like a murder. It shows her getting on a bus and going to a different town, while a police officer is chasing her. When she finally gets to a small town she tries to build a life for herself all over again . 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I haven t been excited about something of this caliber for quite some time. Honestly, I just can’t wait to see her again. She is perfect. Samantha. Samantha is perfect. Sunday, November 15 My evening was lovely. Samantha and I met up at the restaurantRead MoreMktg522 - Marketing Plan2312 Words   |  10 PagesMarketing Plan: Kid Tough iPad Keller Graduate School of Management Marketing Plan Outline 1.0 Executive Summary 2.0 Situation Analysis 2.1 Market Summary 2.2 SWOT Analysis 2.3 Competition 2.4 Product (Service) Offering 2.5 Keys to Success 2.6 Critical Issues 3.0 Marketing Strategy 3.1 Mission 3.2 Marketing Objectives 3.3 Financial Objectives 3.4 Target Markets 3.5 Positioning 3.6 Strategies 3.7 Marketing Mix 3.8 Marketing Research 4.0 Controls 4.1 Implementation