Current Affairs July 04, 2017

PM Narendra Modi adopts wrestlers’ Village Kakrahia

Prime Minister Narendra Modi will adopt Kakrahia, a village known for its wrestlers and wrestling arenas, under the Sansad Adarsh Gram Yojana, Uttar Pradesh chief minister Yogi Adityanath said.

This will be the third village to be adopted by the Prime Minister in his Lok Sabha constituency of Varanasi.

In the previous two years, Modi adopted Jayapur and Nagepur, as his first and second villages.

Assam to raise new force for rhino protection

The Assam government is going to raise a new Special Rhino Protection Force (SRPF) for better protection of the one-horned rhinos in Assam.

The government has already started the process of recruitment for the proposed force.

Recently, the government has published advertisements for recruitment of 90 youths in the force.

Madhya Pradesh plants record 6.63 crore saplings in 12 hours

The Madhya Pradesh government has claimed a record 6.63 crore saplings were planted on the banks of river Narmada as part of its river conservation efforts.

The 12-hour plantation drive was undertaken across the state and may find a place in the Guinness World Records.

The current record of planting maximum saplings in least time is five crore in 24 hours which is held by Uttar Pradesh.

Foundation stone of country’s biggest Global Skill Park laid

Union Minister of State for Skill Development and Entrepreneurship Rajeev Pratap Rudi and Madhya Pradesh Chief Minister Shivraj Singh Chouhan have laid the foundation stone of the country’s biggest Global Skill Park in Bhopal, Madhya Pradesh.

The park will be constructed at a cost of 645 crore rupees.

Training will be imparted to 1000 students every year by trainers of international standard.

The park will function on the spirit of ‘With Industry -For Industry’.

India-Thailand military exercise begins in Himachal

A 14-day joint military training exercise Maitree 2017 between India and Thailand started in Himachal Pradesh.

The joint exercise of the Indian Army with the Royal Thailand Army commenced at Bakloh in Chamba district.

The previous edition of the exercise was held at Krabi in Thailand in 2016.

NMCE, Indian Commodity Exchange to merge in 1st comex merger

National Multi Commodity Exchange (NMCE) will merge with Indian Commodity Exchange (ICEX), where Reliance Capital is the largest investor, in an all-stock deal to create the country's third-largest commodities bourse.

This is the first merger deal in the commodity exchange space and the merged entity will offer the world's first diamond futures contract along with a wide range of contracts, including bullion, oil, rubber and other agri-commodities.

Reliance Capital is the largest investor in ICEX and will continue to be the largest shareholder post merger, along with others.

As per the agreed swap ratio, ICEX shareholders will hold 62.8 per cent stake and NMCE's will hold 37.2 per cent in ICEX, post merger.

ADB grants $220 mn for better road connectivity in Rajasthan

The Asian Development Bank (ADB) signed a $220 million loan agreement with India for improving road connectivity, transport efficiency and safety on state highways of Rajasthan.

The loan is the first tranche of the $500 million Rajasthan State Highways Investment Programme, approved by the ADB Board in May this year.

It will also enhance the capacity of the state public works department in the areas of road asset management, road safety and project management, it added.

MFIN re-elects Rakesh Dubey as its president

Microfinance Institutions Network (MFIN) has re-elected Rakesh Dubey, chief of SV Creditline Private Ltd, as its president for the second term.

The industry association and self-regulator for the NBFC-MFIs has also elected Devesh Sachdev, chief executive of Fusion Microfinance as vice president.

Germany win Maiden Confederations Cup

Germany survived a whirlwind assault by Chile a to claim a 1-0 victory in Confederations Cup final.

Germany won the title for the first time after Lars Stindl scored the only goal in the 20th minute.

Germany captain Julian Draxler was conferred with the 'Golden Ball' - best player award.

Germany's Timo Werner holds the Golden Boot of the competition.

Jehan Daruvala wins FIA F3 European Championship

Jehan Daruvala of Sahara Force India Academy created history by becoming the first Indian to win in the FIA F3 European Championship.

Jehan's victory in race 3 comes 18 years after Narain Karthikeyan won in the British F3 Championship.

FIA Formula 3 is the toughest junior racing category in the world.

THE HINDU EDITORIAL: 5-JULY–2017

THE HINDU EDITORIAL

OPEN TO CAPITAL

China opened itself to foreign investors on Monday by liberalising rules that regulate participation in its massive bond market. The new Bond Connect scheme, which was keenly awaited for months, allows large foreign investors such as banks and pension funds to buy and sell mainland Chinese bonds through offshore accounts in Hong Kong. China’s bond market, the third largest in the world, is estimated to be over $9 trillion in value and is expected to double in size over the next five years. Yet foreign investors own less than 2% of the overall bond market, thanks to China’s policy of raising significant barriers to the free entry and exit of capital. Further, its central bank, the People’s Bank of China, of late has been tightening monetary policy to squeeze out liquidity, which has, in turn, led bond yields in China to be higher than in many developed economies. So it was no surprise that investors rushed in to make use of the scheme to trade in Chinese bonds and later announced their entry. It is noteworthy that the present move to liberalise bond investment comes after the Chinese authorities took significant steps to ease the purchase of mainland stocks by foreign investors. The Shanghai and Shenzhen stock exchanges were connected to the Hong Kong stock exchange in 2014 and 2016, respectively, which allowed the entry of hundreds of Chinese stocks into international indices such as the MSCI. Chinese bonds can now expect similar international recognition. Bond Connect is a significant step in China’s march towards a more open capital account. First, the inflow of foreign capital will help Beijing control the yuan. In time, the scheme will boost the borrowing potential of the Chinese sovereign as well as of corporations, while improving bond market liquidity by offering access to a wider pool of international capital. The entry of more private capital into the Chinese economy can encourage investments in economic projects as well. Also, after the inclusion of the Yuan in the International Monetary Fund’s basket of currencies in 2016, the present bond reform gives a further boost to the Chinese currency. In the long run, greater participation of foreign investors in Chinese financial assets will increase the usage of the Yuan, and thus aid Beijing’s efforts to internationalise the currency. This trend will also help bring more stability to China’s financial markets, known for their high levels of volatility, by improving transparency and the quality of business practices. It is worth noting that currently about 70% of bonds in China have a maturity period of less than five years, and a quarter of less than one year, as investors are wary of the risks involved in lending money over longer periods. Going forward, the challenge for Chinese authorities lies in allowing free price discovery, which can lead to painful turmoil in the short run in its bond market. It will indeed be a test of whether they have learned the right lessons from the stock market crash of 2015.

 INTERMISSION

Taxes are of two kinds. A progressive tax can be an instrument of state policy, yielding benefits for the many at the expense of a few. But a tax can also be debilitating. A higher rate can sometimes be counterproductive, restricting the growth of the sector, and eventually resulting in lower revenues. With the introduction of the Goods and Services Tax, the Tamil Nadu film industry is squeezed on every side; in protest, cinema halls across the State have downed their shutters indefinitely. What is hurting is not the 28% GST on tickets priced above RS.100, or even the 30% levy imposed by local bodies as entertainment tax, but the fact that these come on top of the existing State government-imposed cap on ticket rates. The cap of RS.120 means that the exhibitors might earn more from their lease of cinema space to popcorn vendors than from screening the film. Indeed, given the differential rates, the exhibitor might not be able to earn much more from charging RS.120 for a ticket than he could from charging RS.99. Increasing tax rates while maintaining an overall price cap makes no sense at all. Governments are free to not incentivise certain services or forms of consumption. However, in this case, the end result of the squeeze on the margins of exhibitors and distributors is making the entire film industry unviable. The price cap on tickets was sought to be justified on the ground that otherwise there would be exploitative premiums charged on keenly awaited films during the early days of their release, when demand runs high. It was believed that this protected members of fan clubs of popular film stars, most of whom are from the lower social strata. But with the piling up of different taxes, it is the exhibitors who are at the wrong end of the exploitation. Although some Tamil films qualify for exemption from entertainment tax, on account of their ‘social messaging’, such certification depends all too often on pulling the right political strings. In an industry where politicians of every hue are involved, tax exemption has been open to widespread abuse. Local bodies have not earned much from entertainment tax, but what the government loses in terms of revenue, the party in power gains in terms of power and influence over the film industry. Given that the GST rates cannot be altered, being fixed nationally, the sensible solution is to give up the price cap on tickets and reduce the entertainment tax. Price caps on tickets have inhibited the building of new cinema halls in Tamil Nadu, even as old ones shut shop. Also, if the government’s true objective is to safeguard the interests of the film goer, then it must be ready to forego tax revenue. The lesson that Tamil Nadu needs to understand is that a high rate of taxation can be debility.

WORDS

1) Progressive tax

Meaning: A progressive tax is a tax in which the tax rate increases as the taxable amount increases. The term “progressive” refers to the way the tax rate progresses from low to high, with the result that a taxpayer’s average tax rate is less than the person’s marginal tax rate.

2) Debilitating

Meaning: making someone very weak and infirm.

Example: The debilitating effects of underinvestment.

Synonyms: Weakening, Enfeebling.

Antonyms: Restorative.

3) Squeezed

Meaning: Manage to get into or through a narrow or restricted space.

Example: We all squeezed into Steve’s van.

Synonyms: Restraint, Hold.

Antonyms: Release, Opening.

4) Levy

Meaning: An act of levying a tax, fee, or fine.

Example: Police forces receive 49 per cent of their funding via a levy on the rates.

Synonyms: Impose, Charge.

Antonyms: Demobilize, Disband.

5) Exhibitors

Meaning: A person who displays works of art or other items of interest at an exhibition.

Example: The event attracted many new exhibitors and proved fascinating for children and adults alike.

6) Vendors

Meaning: The seller in a sale, especially of property.

Example: Contracts between the vendor and the claimant were exchanged on 12th June 1995.

7) keenly

Meaning: In an eager or enthusiastic manner.

Example: One of this year’s most keenly anticipated movies.

Synonyms: Strongly, Vigorously.

Antonyms: Unenthusiastically.

8) Exemption

Meaning: The action of freeing or state of being free from an obligation or liability imposed on others.

Example: Vehicles that may qualify for exemption from tax.

Synonyms: Indemnity, Exclusion

Antonyms: Accountability, Liability.

9) Widespread

Meaning: Found or distributed over a large area or number of people.

Example: There was widespread support for the war.

Synonyms: General, Extensive.

Antonyms: Concentrated, Limited.

10) Inhibited

Meaning: Unable to act in a relaxed and natural way because of self-consciousness or mental restraint.

Example: I could never appear nude, I’m far too inhibited.

Synonyms: Reserved, Reticent.

Antonyms: Extroverted, Friendly.

11) Offshore

Meaning: Made, situated, or registered abroad, especially in order to take advantage of lower taxes or costs or less stringent regulation.

Example: A lot of corporates and individuals hold offshore accounts legitimately.

12) Indices

Meaning: Link the value of (prices, wages, or other payments) automatically to the value of a price index.

Example: The Supreme Soviet passed legislation indexing wages to prices.

13) Liquidity

Meaning: The availability of liquid assets to a market or company especially cash.

Example: A firm may be unable to pay unless it has spare liquidity.

Synonyms: Translucency, Lucidity.

14) Volatility

Meaning: Liability to change rapidly and unpredictably, especially for the worse.

Example: The succession of new rulers contributed to the volatility of the situation.

15) Turmoil

Meaning: A state of great disturbance, confusion, or uncertainty.

Example: The country was in turmoil.

Synonyms: Confusion, Upheaval.

Antonyms: Calm, Peace

THE HINDU EDITORIAL- 4th July, 2017

Open acres: The new hydrocarbon policy opens us exploration

The recently unveiled Open Acreage Licensing Policy and the National Data Repository together are a significant and welcome step towards opening up the hydrocarbon exploration and production industry in India. By placing greater discretion in the hands of explorers and operators, the Licensing Policy attempts to address a major drawback in the New Exploration Licensing Policy, which forced energy explorers to bid for blocks chosen by the government. Companies can now apply for particular areas they deem to be attractive to invest in, and the Center will put those areas up for bids. This is more attractive for prospective operators because in the past, the blocks chosen by the government often were large swathes of land or sea in which only a small fraction had hydrocarbon reserves. By offering companies the freedom to choose exactly the areas they want to explore, and their size, the government has a better chance to woo serious energy investors in an effort to help achieve a more cohesive framework of the country’s energy security. Tied to this is the National Data Repository, which is envisaged as a centralised database of geological and hydrocarbon information that will be available to all. Besides allowing potential investors to make informed decisions, this will open up a new sector in India. There are a number of companies around the world that make it their business to simply explore hydrocarbon basins and sell the information they gather. The new initiative seeks to incentivise such prospectors.

Companies may also submit applications through the year and not just at designated and often infrequent points, as was the case earlier. The Directorate General of Hydrocarbons has said that while the auctions will be held twice a year for now, the frequency could be increased as soon as the industry grows accustomed to the new system. This, too, will lend more flexibility to the industry. However, there are still some concerns about the implementation of the overall Hydrocarbon Exploration and Licensing Policy. The policy awards an extra five points to bidders for an acreage if they have already invested in the exploration and development of that area, but it is doubtful if this is enough of an incentive, since the investment needed to simply explore is significant. By contrast, no such preference is given to mineral explorers while auctioning mining rights — instead, a revenue-share from mining operations is their recompense for exploration efforts. This could be considered for the hydrocarbon sector as well. Another concern is whether India can attract enough investment to meet the government’s objective of reducing oil imports by 10% by 2022, especially given the past experience investors have had with large projects such as KG-D6. There are after all proven reserves in other parts of the world, such as the Gulf of Mexico, that could still keep investor appetite for Indian acreage weak.

Words:

1. hydrocarbon (noun) – it is an organic compound consisting entirely of hydrogen and carbon which are the main components of petroleum and natural gas.
2. exploration (noun) – investigation, search, inspection (of an area for natural resources).
3. unveil (verb) – present, disclose, make public.
4. repository (noun) – store, storing place, storehouse.
5. discretion (noun) – choice, option, preference.
6. bid (verb) – offer, tender, propose.
7. deem (verb) – regard as, consider; think/suppose.
8. put up (phrasal verb) – propose, put forward, present.
9. prospective (adjective) – potential, probable, likely.
10. swathe (noun) – a broad area of something.
11. reserve (noun) – stock, store, supply.
12. woo (verb) – tempt, coax, persuade.
13. cohesive (adjective) – united, integrated, cooperated.
14. envisage (verb) – foresee, predict, forecast.
15. open up (phrasal verb) – create, make, bring (an advantage).
16. incentivise (verb) – encourage, motivate, prompt.
17. accustomed (adjective) –  customary, usual, ordinary/typical.
18. acreage (noun) – area of the (agricultural) land.
19. objective (noun) – aim, intention, purpose.
20. appetite (noun) – a strong desire, craving, hunger/thirst.

Courtsey: The Hindu

Basics of Marketing : Marketing

Marketing

The American Marketing Association (AMA) defines marketing as ― The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational goals.

In the most simple and basic manner- ― Marketing is the delivery of customer satisfaction at a profit.

Core Concepts of Marketing

Needs - state of felt deprivation for basic items such as food and clothing and complex needs such as for belonging. e.g. I am thirsty

Wants - form that a human need takes as shaped by culture and individual personality. i.e. I want a Coca-Cola.

Demands - human wants backed by buying power. i.e. I have money to buy a Coca-Cola.

Products – Anything that can be offered to a market for attention, acquisition, use or consumption and that might satisfy a need or want.

Examples: Goods, Services, persons, places, organizations, activities, and ideas etc.

Different Types of Pricing Strategy

Pricing strategies have a major impact on the marketing effectiveness for companies, large and small.

Pricing is one of the four elements of the marketing mix, along with product, place and promotion. Pricing strategy is important for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives.

1. Premium Pricing

Premium pricing strategy establishes a price higher than the competitors. It's a strategy that can be effectively used when there is something unique about the product or when the product is first to market and the business has a distinct competitive advantage.

2. Penetration Pricing

A penetration pricing strategy is designed to capture market share by entering the market with a low price relative to the competition to attract buyers. The idea is that the business will be able to raise awareness and get people to try the product.

3. Economy Pricing

Economy pricing is a familiar pricing strategy for organizations that include Wal-Mart, whose brand is based on this strategy. Aldi, a food store, is another example of economy pricing strategy. Companies take a very basic, low-cost approach to marketing--nothing fancy, just the bare minimum to keep prices low and attract a specific segment of the market that is very price sensitive.

4. Price Skimming

Businesses that have a significant competitive advantage can enter the market with a price skimming strategy designed to gain maximumrevenue advantage before other competitors begin offering similar products or product alternatives.

5. Psychological Pricing

Psychological pricing strategy is commonly used by marketers in the prices they establish for their products.

Evolution and Generations of computer

Evolution of Computer

When our ancestors started using stone to count their animals or the possession they never knew that this day will lead to a computer of today. People started following a set of procedure to perform calculation with these stones, which later led to creation of a digital counting device, which was the predecessor the first calculating device invented, known as ABACUS.

THE ABACUS

Abacus is known to be the first mechanical calculating device which was used to be performed addition and subtraction easily and speedily. This device was first developed by the Egyptians in the 10th century B.C, but it was given it final shape in the 12xth century A.D. by the Chinese educationists.

Abacus is made up of wooden frame in which rod where fitted across with rounds beads sliding on the rod. It id dividing into two parts called ‘Heaven’ and ‘Earth’. Heaven was the upper part and Earth was the lower one.

NAPIER’S BONES

After Abacus, John Napier of Scotland invented a calculating device, in the year 1617 called the Napier Bones. With these rods, one can do addition, subtraction, multiplication and division easily.

PASCAL’S CALCULATOR

In the year 1642, Blaise Pascal a French scientist invented an adding machine called Pascal’s calculator, which represents the position of digit with the help of gears in it.

It was called adding Machine because it was only able to do addition and sustraction.

LEIBNIZ CALCULATOR

In the year 1671, a German mathematician, Gottfried Leibniz modified the Pascal calculator and he developed a machine which could perform various calculation based on multiplication and division as well.

ANALYTICAL ENGINE

In the year 1833, a scientist from England knows as Charles Babbage, invented such a machine which could keep our data safely. This device was called Analytical engine and it deemed the first mechanical computer.

It included such feature which is used in today’s computer language. For this great invention of the computer, Sir Charles Babbage is known as the father of the computer.

Generations of Computer

As the time passed, a more suitable and reliable machine was needed which could perform our work more quickly. During this time, in the year 1946, the first electronic computer called ENIAC was successfully developed and it was the starting point of the current generation of computer.

FIRST GENERATION

ENIAC was the world first successfully developed electronic computer which was developed by the two scientists namely J. P. Eckert and J. W. Mauchy. It was the beginning of first generation computer.

The full form of ENIAC is “Electronic Numeric Integrator And Calculator”. ENIAC was a very huge and big computer and its weight was 30 tonnes. It could store only limited or small amount of information.

Initially in the first generation computer, the concept of vacuum tubes was used. A vacuum tube was an electronic component which had very less work efficiency and so it could not work properly and it required a large cooling system.

SECOND GENERATION

As the development moved further, the second generation computers knocked the door. In this generation, transistors were used as the electronic component instead of vacuum tubes. A transistors is much smaller in the size than that of a vacuum tube.

As the size of electrons components decreased from vacuum tube to transistor, the size of computer also decreased and it became much smaller than that of earlier computer.

THIRD GENERATION

The third generation computers were invented in the year 1964. In this generation of computer, IC (Integrated circuits) was used as the electronic component for computers. The development of IC gave birth to a new field of microelectronics.

The main advantage of IC is not only its small size but its superior performance and reliability than the previous circuits. It was first developed by T.S Kilby. This generation of computer has huge storage capacity and higher calculating speed.

FOURTH GENERATION

This is the generation where we are working today. The computers which we see around us belong to the fourth generation computers. ‘Micro processor’ is the main concept behind this generation of computer.

A microprocessor is a single chip (L.S.I circuit), which is used in a computer for any arithmetical or logical functions to be performed in any program.

The honour of developing microprocessor goes to Marcian Edward "Ted" Hoff, of U.S.A. He developed first micro-processor, the Intel 4004, as he was working for Intel Corporation, U.S.A. With the use of microprocessor in the fourth generation computers, the computers become very fast and efficient.

It is evident that the next generation of computer i.e. fifth generation will be developed soon. In that generation, computer will possess artificial intelligence and it would be able to take self-decisions like a human being.

FIFTH GENERATION (PRESENT AND BEYOND)

Fifth generation computing devices, based on artificial intelligence, are still in development, though there are some applications, such as voice recognition, that are being used today.

The use of parallel processing and superconductors is helping to make artificial intelligence a reality.

Quantum computation and molecular and nanotechnology will radically change the face of computers in years to come. The goal of fifth-generation computing is to develop devices that respond to natural language input and are capable of learning and self-organization.

Computer: An Introduction

A computer is a device that can receive process and store data. Many people believe that knowing how to use a computer is one of the basic skills needed to succeed in the workplace. In order to use the computer it is necessary to understand how the computer works.

Computers are rapidly changing and changing the world we live in. However, all computers have several parts in common:

• Input devices which allow data and commands to be entered into the computer (Mouse, Keyboard etc.)
• a means of storing commands and data (Memory)
• a central processing unit which controls the processing (CPU)
• a means of returning the processed information in the form of output (Monitor)

In general, a computer is a machine which accepts information, processes it and returns new information as output.

Types of computers

Computers range in size and capability. At one end of the scale are supercomputers, very large computers with thousands of linked microprocessors that perform extremely complex calculations. At the other end are tiny computers embedded in cars, TVs, stereo systems, calculators, and appliances. These computers are built to perform a limited number of tasks.

Desktop computers

Desktop computers are designed for use at a desk or table. They are typically larger and more powerful than other types of personal computers. Desktop computers are made up of separate components. The main component, called the system unit, is usually a rectangular case that sits on or underneath a desk. Other components, such as the monitor, mouse, and keyboard, connect to the system unit.

Laptops

Laptops are lightweight mobile PCs with a thin screen. Laptops can operate on batteries, so you can take them anywhere. Unlike desktops, laptops combine the CPU, screen, and keyboard in a single case. The screen folds down onto the keyboard when not in use.

Handheld computers (PDA)

Handheld computers, also called personal digital assistants (PDAs), are battery-powered computers small enough to carry almost anywhere. Although not as powerful as desktops or laptops, handheld computers are useful for scheduling appointments, storing addresses and phone numbers, and playing games. Some have more advanced capabilities, such as making telephone calls or accessing the Internet. Instead of keyboards, handheld computers have touch screens that you use with your finger or a stylus (a pen-shaped pointing tool).

Peripheral Devices

A peripheral device connects to a computer system to add functionality. Examples are a mouse, keyboard, monitor, printer and scanner.

A computer peripheral is a device that is connected to a computer but is not part of the core computer architecture. The core elements of a computer are the central processing unit, power supply, motherboard and the computer case that contains those three components.

Types of Peripheral Devices

There are many peripheral devices, but they fall into three general categories:

1. Input devices, such as a mouse and a keyboard
2. Output devices, such as a monitor and a printer
3. Storage devices, such as a hard drive or flash drive

Peripheral devices can be external or internal. For example, a printer is an external device that you connect using a cable, while an optical disc drive is typically located inside the computer case.