Entrepreneur Assignment Example | Topics and Well Written Essays - 4000 words

Entrepreneur - Assignment Example The quality and value of the products solely determine the ability of the companies to have resources for the next business run (Weerawardena & Mort, 2006). The companies have to operate in order to produce relevant products that can help the target audience in terms of fulfilling their needs and wants. Additionally, entrepreneurship cannot work effectively without remaining committed to the needs of the customers. The culture is the force that storms over every concern of the society. The collective cultures value needs of the many over those of the few so the companies have to entrepreneur in such a way that they can assist the general public regarding betterment of living standards, and the individualistic societies are using completely different approach than the abovementioned one (Spear, 2006). There is always room present for bringing innovations and inventions in the market because workforce over there is creative, and they have adequate level of technology at their disposal that they can apply as a means of accomplishing their ambitions (Akhter, 2007). Furthermore, the strategic management values the creativity of employees, and therefore, the entrepreneurial characteristics remain prominent in the organizational setup of the developed nations. The developing nations bring betterment at operational level, and often they import products from developed ones, and develop the model of franchising in order to earn their due share with each deal so the true entrepreneurship that involves innovation and invention is resident of developed nations of America and Europe (Ali, 2010). The literacy rates in developing parts of the world is not remarkable in nature, and because of this reason, professionals are not proficient with reference to their creative powers. The innovation is the defining attribute of entrepreneurships, but the human resources are the

Judiciary Essay Example | Topics and Well Written Essays - 250 words

Judiciary - Essay Example Due to relative lack of US Constitution to address certain issues, judiciary became important and was forced to intervene into the political matters. The matter of appointment of judges and the way ideological familiarity was considered also allowed Supreme Court to change its overall role. The appointments specially made during the Reagan administration proved as controversial which allowed the ideological split within the court. What is however, critical to note that Rehnquist Court which was not as forceful in creating judicial activism. Justice Roberts too was a firm believer in the judicial modesty and it was during these periods that US went on to war without any significant resistance from Court. (Lasser, 2011) Leaving political decisions to courts may force courts to actually overstate their constitutional mandate and become involved in issues which may not have any precedent or references to constitutional history of the

Alignment of HRM and Business Strategies Research Paper

Alignment of HRM and Business Strategies - Research Paper Example Managers can also find ways of enabling hotel employees to see how their improved actions impact on the hotel’s well-being. For instance, if the hotel’s training program is centered on the importance of decreasing accidents that take place in the workplace, the management could ensure that the workers are shown how average costs can be saved in their training programs through factors such as reduced medical expenses, employee compensation, and even legal expenses (Cho, Woods, Jang, & Erdem, 2006). Another way to ensure that HR functions are aligned with business objectives is by ensuring that the hotel’s management body is in support of all proposed programs, and generates partnerships with the team entrusted with dispensing the training programs. To determine the effectiveness of training programs, hotels can create engagement surveys that allow workers to offer feedback on the programs. The hotel could also conduct culture surveys as well as employee satisfaction surveys in order to collect important feedback that functions as an indicator of the impact being had by the program. Other factors that can be used to assess the performance of HR programs include productivity rates, the rate of turnover, and even profitability of the hotel (Davidson, Guilding, & Timo, 2006). The HR jobs included in the Marriott’s HR department include bell persons, door persons, vacation planners, front desk agents and room controllers, bell captains, supervisors, front desk managers, front office managers, room operations directors, service agents, runners and supervisors, reservation agents and group coordinators, sales and public relations coordinators, house keeping persons and administrative clerks, housekeeping managers, the director of services, loss prevention officers and drivers, casino compliance and supervisor agents, recreation attendants,

Dynamics Technologies Network Essay Example for Free

Dynamics Technologies Network Essay Whether used to provide better customer service, to be more eco-friendly or to gain more company memory, the virtualization technology of today offer many benefits to enterprising companies all over the world, creating innovative solutions to work based problems on a daily basis. Virtualization has not only captured the business world by storm with its innovative and creative solutions but it also offers proven advantages in several areas of industry, IT and service. Below is a list of a few of the advantages and solutions that virtualization technology can offer the enterprise around the globe. Virtual Desktops Many corporations and enterprises are looking to reduce their footprint and create more efficient operating systems. This can be done with one aspect of virtualization, virtual desktops. Virtual desktops have the ability to create more space within a desktop computer or on actual desk space through the use of software which expands a desktops environment beyond physical limits through virtualization. This can create a more eco-friendly environment with less computers using energy and lower operating costs as well as offering continuous transitions between multiple operating system. Enhanced System Security A fear of many enterprises considering virtualization in their business is that all the advantages of this technology will compromise the security of sensitive, private and legal company information. However, that is not the case; in fact virtualization in business provides enhanced security, making it more difficult for hackers to find key information. Unlike other security systems, virtualization has the ability to single out and trace requests. If a request seems fishy or unsuitable, virtualization security technologies will reroute hackers to another location, securing and keeping enterprising business information safe from harm. Better System Reliability Non-virtualized networks and systems are more prone to crashes and memory corruption due to software installments such as device drivers. Through virtualization, I/O resources can be isolated providing better security (see above,) reliability and even availability across devices for business purposes. Disaster Recovery Along the same lines as better system reliability, virtualization also provides enterprising businesses with better, faster and more secure disaster recovery. This is possible because this technology is able to take a virtual image or information and transfer it to another server in the instance that the original server may be crashing. This prevents information loss and provides a constant stream of secure and safe information. Space and Server Consolidation When an organization has a physical database, it can take up to ten machines to provide the same amount of workload to one virtual machine. This means that up to ten applications can be ran on a solitary virtual machine, consolidating physical space as well as server use, therefore saving energy usage, operating costs and server expenses. Scalability One advantage of virtualization technology is its unique ability to be scalable. What this means is that unlike purchasing X amount of computer memory or RAM for a company, the possibilities with virtualization are endless. The workload and space needed one month may change in the next and virtualization accommodates those changes by fluxuating to fit the needs of an enterprise at the time of use. This also saves on energy consumption and operating costs because virtualization service providers oft will only charge for what was used. Endless Memory and Accessibilities One aspect of scalability is virtualization’s advantage of seemingly endless memory. Enterprising businesses can take advantage of limitless memory to house business information, client details, invoices and financial records all in an accessible, crash protected and secure place. Virtualization is accessible anywhere there is an internet connection, allow for access to important company information anywhere in the world. This is great for traveling business owners, work from home employees or access away from work. This also allows companies to offer better customer service to clients because of the ease of access as well as the quick pull up of saved information stored in a limitless memory location. Many enterprising companies are looking for ways to better IT departments, improve business models and create lower operating costs, all of which can be accomplished with the modern marvel technology that is virtualization. Whether used to provide better customer service, to be more eco-friendly or to gain more company memory, the virtualization technology of today offer many benefits to enterprising companies all over the world, creating innovative solutions to work based problems on a daily basis. Return on Investment School of thoughts have argued in various platform about the huge capital investment return in virtualization, there are multiple factors which determine how to go about deciding what type of monitoring an Information Technology (IT) department should embark on. In order to properly evaluate a specific IT environment, one must first determine whether or not to virtualize. Virtualization can be stressed as a life saver for countless IT departments over the past few years. What first needs to be determined however, is if in fact an organization really needs to virtualize. Perhaps database, application servers, network services, etc don’t truly need to become virtualized, maybe they do. What we are trying to determine today is the Return on Investment (ROI) for virtualization. Technologist, Researchers and Students helps quantify virtualizing an IT infrastructure. If an organization is in the process of acquiring a new company (or being liquidated) and subsequently moving locations, they must first take a look in their server room*. If it is overcrowded, under powered or outdated, then yes†¦ virtualization is probably important. What everyone in the IT department wants to know then, is virtualization right for my organization and more importantly my department? [pic] The resources being saved on just power and hardware along are staggering. Keeping costs lower for the overall organization is obviously crucial, especially when it comes to things such as never having to redeploy application solutions*. This will save you time and subsequently money: no server hardware refreshing costs, limited annual server-related power costs*. The greater questions then arise, how much time will it take a department to make the complete switch? Will the ROI be worth the increased labor hours to become fluent with the virtualized world?

Impact of Islamic Banking on Consumer Financing Sector

Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the Impact of Islamic Banking on Consumer Financing Sector Impact of Islamic Banking on Consumer Financing Sector Abstract This study finds out the realistic or any factual impact caused by the introduction of Islamic Banking on the consumer financing sector generally, while keeping its main focus explicitly on House Financing and Car Financing through banks in Pakistan. The total banks involved in consumer financing whether Islamic or Conventional where included in this research, keeping 2003 as the base year of data initiation. Since 53% of Consumer financing was being defined by House and Car financing so they were kept in focus. Independent T-Tests were run on the investments as well as the growth of both the sectors that is Islamic and Conventional banking sectors. The data was collected from the Statistical Data Ware House Department of State Bank of Pakistan. The results show that the variances in the investment sectors of both Islamic and Conventional differed from each other where H0 was rejected on the basis of value of t stats where as in the growth comparison the variances were said to be sa me at 10% significant level but the means of growth stood at 29% and 9% in cases of Islamic and Conventional banking respectively proving the positive impact of Islamic Banking on Consumer Financings bulky sector of House and Car Financing in Pakistan . In case of any incongruity to State Bank of Pakistan or the AAOFI standards, the latter shall prevail. Chapter one: Introduction The intent to write this research was to undermine the factual understanding as well as affect caused due to the introduction of Islamic Banking in Pakistan. It was acclaimed by the people related to the industry that Islamic Banking had positively affected the banking sector here and across the globe. The numbers were quoted and percentages claimed but no real research supported the declarations. So the author thought of doing a research to dwell on the issue and conduct a research with respect to Pakistan hence, configure the true standings of the conterparts known commonly as Islamic Banking and Conventional Banking. Islamic Banking though has a mere institutionalised history of 35 years across the globe but has gained tremendous recognition in this short tenure which shall be wittnessed in the literature review ahead in this paper. The evolution of Islamic Banking in Pakistan started as late as 2000 01 after the historical judgement of the Supreme Court of Pakistan in1999 against the prevailing interest based banking system. The Islamic banking emerged, though after a valiant effort which continued over two decades prior to its surfacing. Different reports, articles, awareness sessions, books and other relative material endowed to this very existence of Islamic Banks in Pakistan. Though the clouds of uncertainity have lingered on this newly instigated initiative ever since its emergence, but then again that has always remained a norm for innovative things in Pakistan. Though Islamic Banking has come a long way after its start almost a decade ago but it still has a lot to prove to its spectators with respect to shariah compliance and market effectiveness in the Pakistans lucrative but stingent souk. Consumer Financing is a sector which has its part of exuberance attached to it in the banking and financial sector. When ever the financial markets are flooded with accessive liquidity the first thing that magnetizes the banker is the consumer financing sector specially in Pakistan where the yeilds were as high as 15% on proceeds. The magnitude of House and Car finance together tend to weigh around at almost 53% of this sector so the proceedings in this neighborhood can be established by analysing these mentioned sectors. In view of the fact that the House Car financing sector provide a level playing field for the conterparts that is Islamic and Conventional players, was another reason for this assortment. In the paper further the comparative analysis is conducted as well as the background of both Islamic Banking and Finance with Consumer Financing has been discussed in comprehensive detail. Statement of the Problem Islamic Banking ever since its emergence in Pakistan has raised eyebrows of related and non related players. Is there a difference? Which banking system shall prevail? Does Islamic Banking have enough weight to outset its conterpart? Can Islamic Banking loose the tag of being a parellel banking system and become the prefered banking operation in Pakistan? The researcher answers to these questions in the light of the literature review as well as by testing the viability of Islamic Banking sector to its conterpart Conventional Banking in the asset backed sectors of House and Car finance (through banks) in Pakistan. Objective Basic purpose of this research is to determine the differential impact of Islamic Banking in contrast to Conventional Banking on House Car Financing through Banks in Pakistan. Research Model Hypotheses H0: Islamic Banking does not impact House Car Financing through Banks In Pakistan. H1: Islamic Banking directly impacts House Car Financing through Banks In Pakistan. Chapter Two: Literature Review This segment will appraise the comprehesive literature review with respect to Islamic Banking globally while Consumer Banking Sector in Pakistan. Islam as a Code of Life Islam acclaims its self to be a Deen which provides a complete code of life to its practitioners. According to its claim Islam not only helps its followers rather also those who seek for help without believing in its core essence for day to day hinderances. May it be a name for a believers child or be it the purpose of life, Islam alone tends to answer to all the versatile queries of its disciple. This is the beauty of Islam but it can only lead to enlightenment only if all the resources of Islam are kept in view or an adherent may astray from the righteous path. The main resources of Islam can be categorized as follows: Quran e Karim The Holy Book sent upon Hazarat Muhammad Ahadith e Mubarakah (Sayings of Hazarat Muhammad) Shariah (Implementation of Islam) Lives of Hazrat Muhammad and the Sahaba (Companions of Hazarat Muhammad) Hence the Deen, Islam, can be categorized into three main branches: Beliefs (Aqaaid) Reformation and Rectification (Tassawuf) Islamic Laws and Principles (Fiqha). Since my paper would be coming under the third bough of a healthy hierarchy, that is, Islamic laws and Principle Jurisprudence (Fiqh). Further elaborating this division known as Fiqh (Islamic Laws and Principles) can be further sub-divided into the following sections: Prayers (Forms of submissions to Allah Tallah, Ibadaat) Societal or Civil Laws (Maamlaat) Criminal Laws Constitutional laws Since my paper discusses the Societal or Civil laws (Maamlaat) or rather absolutely specifying it would be dealing with financial aspects of this vast sub branch of Fiqh. Coming to the financial aspects of a Muslim or even an Oriental who believes in the fairness of Islamic laws, the main concern of this individual is to abide by Islamic law and principles while earning bread and butter for himself and his family. The things permissible by Islamic Jurisprudence are referred to as Halal while the things that are prohibited in Islamic Fiqh are known as Haram. It is by obligation that a Muslim or even an Oriental who believes in Islamic laws can earn his living only through Halal ways. One way of distinguishing Halal is by identifying the prohibitions while the rest remains permissible. Prohibitions in Islam for Financial Procedures The two of the main ills identified by Islam in financial procedures are: Riba (Interest) Gharar. Riba (Interest) In perspectives of Shariah money is considered to be a assessing means for value or worth rather than an asset within itself, it necessitates that an investor should not be able to obtain income from capital (or everything that is treated as a kind of money) alone. This production of money from money (commonly known as interest) is Riba, which is prohibited in Islam. Prohibation of Interest (Riba) in Quran Following are the verses where Quran has out rightly identified interest as a prohibition. In the following verse our Creator nullifies the visual increase of wealth earned through interest. And whatever Riba you give so that it may increase in the wealth of the people it does not increase with Allah Subhanahu Tallah (30:39) At another place it has been identified that the Jews werent allowed to indulge in interest. And because of their charging Riba while they were prohibited from it (4:161) A verse which identifies the prohibition of interest and its form whether it be compounded. O those who believe do not eat up Riba doubled and redoubled (3:130) Ribas eminent prohibition can be seen in the following verse while at the same time the permissible alternative of trading has been offered. Another important factor which can be witnessed here is that giving of charity is being encouraged while interest is being regarded as a curse. Those who take Riba (usury or interest) will not stand but as stands the one whom the demon has driven craze by his touch. That is because they have said: Trading is but like Riba and Allah Subhanahu Tallah has permitted trading and prohibited Riba. So, whoever receives an advice from his lord and stops, he is allowed what has passed, and his matter is up to Allah Subhanahu Tallah . And the ones who revert back, those are the people of fire. There they remain forever. Allah Subhanahu Tallah destroys Riba and nourishes charities. And Allah Subhanahu Tallah does not like any sinful disbeliever. Surely those who believe and do good deeds, establish Salah and pay Zakah, have their reward with their lord, and there is no fear for them, nor shall they grieve. O those who believer, fear Allah and give up what still remains of Riba if you are believers. But if you do not, then listen to the declaration of war from Allah and his messenger. And if you repent, yours is your principal. Neither you wrong, nor be wronged. And if there be one in misery, then deferment till ease. And that you leave it as alms is far better for you, if you really know. And be fearful of a day when you shall be returned to Allah, then everybody shall be paid, in full, what he has earned. And they shall not be wronged. (2: verses 275-281) Identifying one of the greatest ills of Interests concentration of wealth the rich becoming wealthier and the poor becoming underprivileged, the verse tends to unfold one of the many aliments caused by going against the prohibition. So that this wealth should not become confined only to the rich amongst you.(59:7) During the tenure of 1984 to 1994, $ 719 Billion dollars were sanctioned as interest based loans while $ 749 Billion were returned during the same tenure still leaving behind a liability of $ 1258 Billion. 225 people possess 47% of the wealth of the world at the same time 1 Billion and 30 Million people earn $ 1 daily while 32% of the population of this world earns $ 4 daily. These facts show that the present financial system has the above mentioned illness known as the concentration of wealth. Prohibation of Interest (Riba) in Hadith The second source of Islam is the sayings of the Holy Prophet MuhammadSallalaho Alaihi Wassallam. Ahadith of ProphetSallalaho Alaihi Wassallam which are on the prohibition of Riba (Interest) are as follows: In the following Saying the excess on either sides is regarded as riba. Gold for gold, silver for silver, wheat for wheat, barley for barley, date for date, salt for salt, must be equal on both sides and hand to hand. Whoever pays more or demands more (on either side) indulges in Riba.1.( Sahih Muslim, Karachi, V.2, P.25) As per the following saying commercial interests existence is exhibited. Ibn Juraij says: in the pre-Islamic period, the tribe of Banu Amr bin auf used to take interest from the tribe of Banu-al-Mughira, and the Banu-al-Mughira used to pay this interest. When islam came,the later owned considerable amount of money to the former. And further on:the Banu-al-mughira used to pay interest to Banu-thaqif. All the people involved in the transaction of riba are found to be guilty and at fault as per quoted saying below. From Jabir: the Prophet,Sallalaho Alaihi Wassallam, may cursed the receiver and the payer of interest, the one who records it and the two witnesses to the transaction and said:they are all alike [in guilt] (Muslim,Kitab-al-Musaqat, Bab lani akili al-Riba wa mukilihi;also in Tirmidhi and Musnad Ahmed) The implication or the inference of sins that a person attains on indulging himself in interest based transactions is emphasized in the following quotes. FromAbdullah ibn Hanzalah:the Prophet,Sallalaho Alaihi Wassallam,said : a dirham of Riba which a man receives knowingly is worst than committing adultery thirty-six times(Mishkat al-Masabih, Kitab al-Buyu,Bab al -Riba,on the authority of Ahmed and Daraqutni) From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam said: Riba has seventy segments, the least serious being equivalent to a man committing adultery with his own mother.(Ibn Majah) Interest based transaction reap no profits here or hereafter. The misery that one is bound to go through after death just for indulging himself in interest based proceeds in visible in the following quote. From Abu Hurayrah: the Prophet,Sallalaho Alaihi Wassallam, said: On the night of Ascension I came upon people whose stomachs were like houses with snakes visible from the out side. I asked Gabriel who they were. He replied that they were people who had received interest ( Ibn Majah, Kitab al-Tijarat, Bab al Taghlizi fi al-Riba; also in Musnad Ahmad) Prohibation of Interest (Riba) in Bible It is not that only in Islam, interest is prohibited even in Christianity, the prohibition of interest is eminent. We have even seen above that even Jews were prohibited from interest based activity according to the Qurans verse. Following are the quotes from the Bible proving the prohibition of Riba. Thou shalt not lend upon usury to thy brother; usury of money, usury of victuals, usury of any thing that is lent upon usury. [Deuteronomy 23:19] Lord, who shall abide in thy tabernacle? Who shall dwell in thy holy hill? He that walketh uprightly, and worketh righteousness and speaketh the truth in his hearth. He that putteth not out of his money to usury, not taketh reward against the innocent.[Psalms 15:1, 2, 5] He that by usury and unjust gain increaseth his substance, he shall gather it for him that will pity the poor. [Proverbs 28:8] Then I consulted with myself, and I rebuked the noble, and rules and said unto them, ye exact usury, every one of his brother. And I set a great assembly against them.[Nehemiah 5:7] After identifying that interest has been prohibited in the past as well as in the contemporary era by the Creator of mankind as He tends to proscribe this act, it would be important to understand the types of Riba which are as follows: Riba Al Jahiliya/ Riba An Nasiyah That type of debt where specified reimbursements period and an amount in surplus of capital is fixed. (Usmani, 2002) Riba Al Fadl / Riba Al Hadees Riba Al Fadl means that the amount or goods paid back in excess other than the Qard (Loan) or which is taken in exchange of explicit homegenous products and are utilized in their hand to hand purchase and sale as explained in the Hadees. (Sahih Muslim, Karachi, V.2, P.25). (Usmani, 2002) Gharar The second of the ailments identified by the Islamic Juriprudence is known as Gharar. Gharar, is usually understood to denote ambiguity in the contractual conditions and/or the uncertainty in the survival of an essential good in an agreement and this creates concerns for Islamic scholars in the light of Islamic Jurisprudence. Shariah does include the ideology of Public benefit, denoting that, if something is tremendously in the public favor, it may be executed and so hedging or alleviation of preventable business threats, do come into this class but further elaboration is as follows by Islamic Scholars: Gharar is where the participants that is the buyer and seller, dont know what one bought and what the other sold. Professor Mustafa Al-Zarqa the researcher of Shariah has written Gharar can be defined as the sale of possible goods whose characteristics or individuality can not be established, due to the dicey character which makes this form of business related to gambling. Hadith for bidding this prototype of trading in Gharar (jeopardy) are available in books of Hadith. Some examples of Gharar transactions are (e.g. trading any fish swimming in the sea or a bird from a collection of species flying in the sky an unborn calf in cows womb, are some of the saleable goods which cannot be probed and examined as their true traits are unknown. Islamic Jurisprudence researchers have given many complete definitions of Gharar. They have also evolved with the idea of Yasir (minor risk); a financial deal with an insignificant risk is believed to be Halal (permissible) while transactions involving significant risk (Bayu-ul-Gharar) is deemed to be Haram. Gharar is one of those impediments which limit the power of decision making. An agreement that has any element of Gharar is not valid from the Islamic Jurisprudence view, irrespective of whether the parties to the agreement agree upon the agreement. The lexical meaning of Gharar is to deceive, cheat, delude, lure, entice and uncertainty. Gharar can be defined as follows: The uncertainty that is present in the basic elements of an agreement, wording, subject matter, consideration and the liabilities. Example of events which have been prohibited in Ahadith because of Gharar are: Sale of unborn Camels baby still in the mother abdomen. Sale of flowers before they appear on the plant. Sale of fish that comes in one throw of net. Sale of wool on the body of the animal. Qimar is that event in which there is a possibility of total loss to one party.Every gambling is a form of Qimar but Qimar is not limited to gambling. The Contract in which the participants, at the moment of implementing the agreement, cannot determine or rather decide as to how much it would give or receive. Causes of Gharar Though the conditions can be many but the most commonly occuring causes can be identified in (Samadani, 2007) are as follows: Uncertainity relating to the existence of thing sold Uncertainity relating to the possession of thing sold Uncertainity relating to the thing sold itself Uncertainity relating to the price Uncertainity relating to the payment of price Uncertainity relating to both thing sold as well as the price Types of Gharar Some types of Gharar are as follows: Baitan fi Bai (Twin sales) Safaqa fi Safaqa (Twin contracts) Bai urban/urboon Forward contract Superficial bull whip effect In the dark ages, many contracts were in vogue, where that condition would turn trade into treasure hunt. Like the seller would have different pieces of cloth and the buyer would cast a stone and would get the cloth where the stone would land. The Holy ProphetSallalaho Alaihi Wassallam has disallowed all such contracts. After identification of the prohibitions in the current financial system where interest and Gharar (Uncertainity) are a part and parcel of day to day proceedings. The need for a system which eliminated such illnesses was required. Another reason was that, after the jolts of 1930s and other economic crisis of 1970 and now of 2008 that followed, the financial world started talking about alternatives to the present systems of (Communism, Socailism and Capitalism). Though Capitalism is the largest spread system across the globe but by all means its jolting has been witnessed since 1839, 1930, 1970 and 2007. Is it at the verge of its end? Nobody knows but people have started looking for options. Islamic Economics Islam provides an economic system based on rules and principles defined by Islamic Jurisprudence. Human being is just a custodian of wealth and the true ownership is with Allah Tallah. Islamic Economics point of difference is that it not only deals with the materialistic needs of human being rather it also fulfills the spirtual needs at the same time. The main theory behind the Islamic economics is that money is only a means of exchange (in other words money tends to serve as an intermediary between the transaction of asset) and not a product that can be sold or discounted. Here it is noteworthy that a human being is not the true owner of wealth as it belongs Allah Tallah rather he has been given only the right to use it as the second owner, keeping in mind that he would be questioned on the day of judgement of his usfruct. Islam doesnt deny the forces of law of demand and supply but does emphasis on the consumer as well as the government to abide by the rules of Islam. Islam as a De en has the capability to accomadate all good things that life has to bring accept those which are outrightly against its divine principles. To summarise Islamic economics can be defined as the humanitarian goal of achieving the well-being of all members of the human family which cannot be attained by concentrating primlairly on the materialistic needs of comfort and creating maximisation of riches as the core intention of economics. Hence it is part and parcel to raise the spirtual content of well being of the whole society and reduce all symptons of anomie, like family disintegration, heavy interest based debt payments, conflict and tension, crime, alcholism, addiction to drugs and psychological illness, all signifying lack of internal delight and satisfaction in the life of human beings. Captialism similar to socialism, both have fallen short to show the way to their followers such an overall welfare. As a prospective measure, it is seems almost inevitable to put down the outlines of a new scheme of operations which helps maximise human well being as per the divine guidelines of Allah Tallah. As per (Khan, 1993) that since the unavailibilty of an Islamic society anywhere in the world the Islamic economics at present is scarely able to express or articulate Islamic position on economic issues as per its connotations. Islamic economics implies a serious execution of the Islamic strategy to raise the spirtual as well as the material well being of all people and to establish socio-economic justice, which is the vital objective of the Islamic message. On the spirtual side, the peace of mind that is fundamental to inner happiness cannot be attained except by increasing the nearness of the human being to his Creator, which Islam is capable of bringing about but secularism doesnot even aspire to. (Chapra, 1992). Islamic Banking Banks serve as the heart of any economy as they pump funds into the economic veins of a country. The four main functions that the bank performs are: lending and deposit business securities issuing asset management and foreign exchange trading. Trading has been given as an alternative to interest based transactions by Quran e Kareem as mentioned above. In the light of this fact the comtemporary Islamic scholars after reviewing the current financial system have comeup with different modes of financing to fulfill the much needed requirement. In the futher discussion we shall discuss those modes of financing. But first we would define Islamic banking as per the State Bank Of Pakistan. Islamic banking has the same utility as of conventional banking except that it asserts to function in agreement with the rules of Islamic Jurisprudence, called Fiqh ul Muamalat (Islamic regulations for transactions). The indispensable law of Islamic banking is the sharing of gain and loss and the prohibition of interest and Gharar. The Islamic concepts, that are mainly used in Islamic banking are profit sharing combination of isolated investor and worker (Mudharabah), safekeeping (Amanah), joint venture (Musharkah), Diminishing Musharkah, cost plus profit (Murabahah), asset finance (Ijarah), manufacturing (Istisna) and agricultural goods (Salaam). Islamic banking proposes to a structure of banking or participatory pooling actions that is dependable on Islamic Jurisprudence (Shariah) and channeled by Islamic economics. Islamic law prohibits interest the collection and payment of Usury. Islamic law also disallows trading in financial risk (since it is a form of gambling) discussed abov e as Gharar. In addition, Islamic Jurisprudence excludes participation in businesses which are deemed Haram (a going concern which deals in pork or alcohol). At the verge of 20th century, quite a few Islamic banks were crafted, to cater to this specific banking market. (Hassan, 2002) In an Islamic mortgage transaction, instead of giving debt to the buyer, money is utilized to purchase the item that is, money is a medium of exchange and not a commodity. Money cannot be rented, is a fact of Islamic Economics. The supplier acts as a direct vendor for the bank, after acquiring the goods the bank proceeds it to the customer at a gain, while allowing the buyer to payback the bank in installments (assets backed financing). However, for any delay in payment the bank cannot charge additional costs as profit or compensation. To mitigate its risk and close in on the vulnerability of the customers default, the bank keeps strict collaterals as its bail out. After the possession of goods the tangible asset is listed in the name of the buyer, by the Islamic banks. Such a bargain is known as Murabaha. Likewise Ijara wa Iqtina or Ijara bi Tamleek, which is alternative to real estate capital finance. Islamic banks handle proportionate income financings for means of transportations in a likewise manner (vending the automobile at a price, which is higher than the current value of the asset in the market, to the lessee and then holding up the title of the medium until the pre-agreed proceeds are paid up). The previous profits are taken into consideration setting up a profit and loss sharing ratio. Consequently the banks profit on the proportionate income financing is equivalent to a specific proportion of the companys revenues. As soon as the investment amount of the proportionate income financing is reimbursed, the earning-distribution arrangement is terminated. This specific exercise is entitled as Musharaka. Supplementary to this, Mudaraba is venture capital financing where a talented worksman who provides labor while funding is offered by the bank, so that one executes business on behalf of the other. Such participatory indulgence between capital and labor reflect the Islamic conceptions that the borrower should not absorb the peril/price of a collapse, since it is Allah Tallah who determines that failure or success, and intends that all those involved reap or bear it as per their obligations. Last, Islamic banking is bounded within Islamically permissible transactions, which eliminate those involving alcohol, pork, gambling, etc. Thus Islamic investing is the only acknowledgeable form of investment, and asset backed transactions are encouraged at the same time the social illnesses are not propped up. The concepts and financing modes in Islamic banking are as follows: Shariah Advisory Council/Consultant Islamic banks and banking organizations that offer Islamic banking products and services (IBPS banks) are required to establish Shariah advisory boards/ consultants to recommend them and to ensure that the procedures, activities and systems of the bank comply with Shariah doctrine. Amanah (Safekeeping) In Amanah, a bank is reckoned as a warden and custodian of endowments. Person deposits money in the bank and the bank assures to repay the whole amount of the belongings, or any portion of the remaining sum, when the depositor claims it. In this situation the Bank becomes the Amin (the Guardian) while the saver is known as Rab-ul-Maal. In Amanah the bank cannot consume this money until and unless the depositor permits its Amin. Mudarabah (Profit Loss Sharing) Mudarabah is a form or contract established between an investor and an entrepreneur, whereby the entrepreneur can finance the investments for its business proceedings. Any gains generated shall be distributed between the investor and the entrepreneur as per the consented ratio, while only the investor stands all the losses if transpired, it has to be bared in mind that the due attentiveness of the entrepreneur will be evaluated and in case of carelessness he/she would have to bear the consequences. The profit-sharing maintained until the proportionate income financing is reimbursed. The bank receives its share for the time value of its money through a set proportion in profit earned that is attached to the debtors profits. (Hassan, 2002) It is a corporation in proceeds between investment and skill, where one provides funds whereas the other supplements proficiency, expertise and administration. The latter is called as the Mudarib. Any profits accumulated are distributed amongst the participants on a pre-settled ratio, while loss is borne only by the investor. It is noteworthy that any increase in capital shall be the property of Rab-ul-Maal the capital provider according majority of jurist. For example if the sheep provided by rab-ul- maal investor and sheep gave birth to lamb, the lambs would be in the ownership of Rab-ul-Maal not the Mudarib (entrepreneur). The capital provider earns profit from the business on the basis of providing capital while the entrepreneur gets his share with respect to his efforts and endeavors. (Usmani T. M., 2004) Musharkah (Joint Venture) This conception is normally applied for business partnerships or mutual ventures. The profits made are shared on a settled ratio, while if losses are sustained they will be divided on the equity funds allocation ratio. This model is different from fixed-income endowing (i.e. proceeds of propotionate income financings). The two different types of Musharkah modes are Shirkat ul Ooqud and Shirkat ul Milk as per Islamic Jurisprudence. Further elaborating the types can be divided into specific main categories with further sub types each. In Islamic finance the things taken into consideration are Shirkat ul Ooqud (Partnership in Trade) and Shirkat ul Amaal (Partnership in Services). Shirkat ul Amwal (Partnership in trade) Shirkat Ul Amal (partnership in services) Shirkat ul Amwal (partnership in trade) is the mode of partnership where all partners invest some capital into a commercial enterprise. Shirkat Ul Ammal (partnership in services) is the form of partnership where all the partners jointly undertake to render some services for their customers and the fee charged from them is distributed among them accordingly to an agreed ratio. (Usmani T. M., 2004) Musharkah translates itself into a relationship established under a pact by the

LBJ and the Vietnam War :: Vietnam War Essays

Thus far the Vietnam War has shown to be a highly complex situation. Many of times, I have found myself agreeing with Lyndon B. John’s decisions to escalate the war. First and foremost, the United States had made a promise of freedom and tranquility to the people (whom were not part of Viet-Cong) of Vietnam. As an American, it is my opinion that the United States had to uphold its word, essentially its credibility. Secondly, withdrawing troops from Vietnam when the situation was really out of control would make the United States appear weak. In midst of the Cold War, the one thing that was not going to prove true was that the United States was weak. Although these reasons were and are valid, the anti-war movement in conjunction with the Tet offensive required President Johnson to make a decision that changed the perception of the war; he chose to call a halt on the bombardment in Vietnam. The purpose of this essay is to further analyze how the continuing anti-war movement and the Tet Offensive were the reasons that â€Å"America’s fate was effectively sealed by mid-1968.†   Ã‚  Ã‚  Ã‚  Ã‚  The antiwarriors that have been described in Melvin Small’s book have shown to be relentless. They were fighting for a just cause, or at least it was a just cause in their opinion. They were able to organize and rally others to join in their quest to end the violence that was occurring in Vietnam. Between 1967 and 1968, however, a new phenomenon was occurring, the age of the â€Å"hippies.† Small mentions, â€Å"For many Americans by 1967, antiwar demonstrators were not only unruly and potentially violent but hippies†¦serious politically oriented activists became easily conflated with hippies to the detriment of their cause.† (Small, 81) This unexpected result of the antiwar movement definitely did put a damper on the cause because hippies were perceived as these pot-smoking, disrespectful, unappreciative bunch of kids who had no idea what they were talking about because they were high all the time. This proved to be untrue. The hippies w ere just as much as a centrifugal as the other activists, and this was evident in the rally held at the Pentagon.   Ã‚  Ã‚  Ã‚  Ã‚  Although only 75,000 or less activists were there, the event that occurred at the Pentagon was one of the underlying reasons LBJ had decided to end the bombing in Vietnam. What made this event stand out from the rest is that is was one of the largest, and nonetheless, it occurred â€Å"at the center of [American citizens] center of their war-making machine [which] presented a powerful image of a nation in turmoil.

Revenge and Vengeance in Shakespeares Hamlet - Revenge in Hamlet :: The Tragedy of Hamlet Essays

Revenge in Hamlet Revenge causes the characters in Hamlet to act blindly through anger and emotion, rather than through reason. It is based on the principle of an eye for an eye; this action is not always the best means to an end. Fortinbras, Laertes, and Hamlet were all looking to avenge the deaths of their fathers. They all acted on emotion driven by the want for revenge for their father's deaths, and this led to the downfall of two, and the rise to power of one. Since the heads of the three major families were each murdered, the eldest sons of these families felt that they needed to take some kind of action to avenge their father's deaths; this need to bring honour to their respective families was ultimately the demise of Laertes and Hamlet. There were three major families in the tragedy of Hamlet. These were the family of King Fortinbras, the family of Polonius, and the family of King Hamlet. Fortinbras, King of Norway, was killed by King Hamlet; slain by sword during a man-to-man battle.   "...Lost by his father, with all bonds of law, to our most valiant brother."[Act 1, Scene 2; lines 24-25]. This entitled King Hamlet to the land that was possessed by Fortinbras because it was written in a seal'd compact. Polonius was an advisor to the King, and father to Laertes and Ophelia. He was nosy and arrogant, and he did not trust his children, and at one point in the play, using his daughter to probe Hamlet. Young Hamlet killed Polonius while he was secretly listening in on a conversation between Hamlet and his mother. "How now! A rat? Dead, for a ducat, dead!"[Act 3, Scene 4; Line 25].   King Hamlet was the King of Denmark, and Hamlet's father. He had killed King Fortinbras, only to be killed by his brother, Claudius. " ...My offence is rank, it smells to heaven; A brother's murder..." Each of these events affected the sons of the deceased in the same way. Laertes found out about his father's death, and immediately returned home. He confronted the King and accused him of the murder of his father. Claudius told Laertes that Hamlet was responsible for his father's death. He then decides to kill Hamlet to avenge the death of his father. He and Claudius concoct a plot to kill Hamlet. Hamlet dies of wounds from the poisoned tipped sword Laertes used. Revenge and Vengeance in Shakespeare's Hamlet - Revenge in Hamlet :: The Tragedy of Hamlet Essays Revenge in Hamlet Revenge causes the characters in Hamlet to act blindly through anger and emotion, rather than through reason. It is based on the principle of an eye for an eye; this action is not always the best means to an end. Fortinbras, Laertes, and Hamlet were all looking to avenge the deaths of their fathers. They all acted on emotion driven by the want for revenge for their father's deaths, and this led to the downfall of two, and the rise to power of one. Since the heads of the three major families were each murdered, the eldest sons of these families felt that they needed to take some kind of action to avenge their father's deaths; this need to bring honour to their respective families was ultimately the demise of Laertes and Hamlet. There were three major families in the tragedy of Hamlet. These were the family of King Fortinbras, the family of Polonius, and the family of King Hamlet. Fortinbras, King of Norway, was killed by King Hamlet; slain by sword during a man-to-man battle.   "...Lost by his father, with all bonds of law, to our most valiant brother."[Act 1, Scene 2; lines 24-25]. This entitled King Hamlet to the land that was possessed by Fortinbras because it was written in a seal'd compact. Polonius was an advisor to the King, and father to Laertes and Ophelia. He was nosy and arrogant, and he did not trust his children, and at one point in the play, using his daughter to probe Hamlet. Young Hamlet killed Polonius while he was secretly listening in on a conversation between Hamlet and his mother. "How now! A rat? Dead, for a ducat, dead!"[Act 3, Scene 4; Line 25].   King Hamlet was the King of Denmark, and Hamlet's father. He had killed King Fortinbras, only to be killed by his brother, Claudius. " ...My offence is rank, it smells to heaven; A brother's murder..." Each of these events affected the sons of the deceased in the same way. Laertes found out about his father's death, and immediately returned home. He confronted the King and accused him of the murder of his father. Claudius told Laertes that Hamlet was responsible for his father's death. He then decides to kill Hamlet to avenge the death of his father. He and Claudius concoct a plot to kill Hamlet. Hamlet dies of wounds from the poisoned tipped sword Laertes used.