Tuesday 6 December 2016

Entrepreneur Internship Assessment

Entrepreneur Internship Assessment
a.     Opportunities
In the United States, it is hard for entrepreneurs to discover the next opportunity to sustain the current business while solidifying the organizational brand. Specifically, the liquor industry is vast and requires large capital to run a start-up. Most of the competitors in this industry have generational businesses, where families have accumulated market experience to survive. Introducing a new business idea like Entrepreneur Internship requires adequate knowledge of the potential clients and strong relationship between the customer and the service provider. Therefore, it is necessary for an entrepreneur to invest in research and development to avoid loss of contact with the market. Besides, it is recommendable that the business owner explores other opportunities to avoid over-reliance on one source of income and to guarantee business stability. At the same time, the generated resources can be re-invested in mainstream operations to boost short and long-term market prospects. Additionally, exploration of other opportunities cushions Entrepreneur Internship brand since the owner channels the income to advertising and product promotion expenditures.
Diversification of Business Operations
Profitability and motivation characterize entrepreneurial culture. However, such goals are unattainable unless the business owner implements ideas for sustaining business growth and revenue generation. The management of Entrepreneur Internship ought to diversify the business operations by investing in other sectors in the industry. Over the years of training Liquor industry staff, the business owner has accumulated fundamental know-how on the industry’s year-long performance, legal requirements, and market expectations. Therefore, this knowledge is applicable in exploring the potentially lucrative businesses for re-investing the income. It is true that some business owners focus on one idea and eventually succeed (Ardichvili et al., 2013). However, there are budgetary constraints that limit success hence a high potential of terminating operations. For a start-up entrepreneur in the beer industry, it is advisable to merge with other businesses and be a crucial contributor of ideas during the inception process rather than single-handedly implementing the idea from the ground up. In this way, the entrepreneur increases the profitability opportunity while limiting business risks.
Angel Investment
The popularity of angel investors has surpassed that of venture capitalists over the past decade. It is a similar situation in the liquor industry. As Entrepreneur Internship grows, the owner should stress less about meeting the periodic operational costs. Instead, he should direct the energy towards improving service delivery and improving customer loyalty. The benefit from angel investment opportunity is two-way. For instance, the business owner can invest his resources in this business portfolio and reap interest after specified period of time or he can borrow resources from the established lenders to meet the rising business needs.
Alternatively, there is an option of crowdfunding that allows budding entrepreneurs to circumvent traditional investors and loan outlets. Crowdfunding involves a direct interaction between the client and business owner, where the latter inquires on the interest rate levels. Satisfied with the deal, the entrepreneur obtains the funds for the production of goods and services and distributing them to the interested parties. Not only does the stategy encourages business innovation but also diversity in the business environment. Moreover, crowdfunding levels out the playing field among the competing organizations. At the same time, it neutralizes the edge resulting from restarting business operations and being well-connected in the beer industry.
Start-up Incubation
Entrepreneurship training can initiate a start-up incubation program to educate the trainees on the importance of opening and operating their own businesses instead of looking for employment. In the industry, the unstable market conditions result in unpredictable business dynamics. Today, most owners of beer manufacture brands are disillusioned due to the weakening overseas demand of America’s light beer. Therefore the sector is no longer viable. However, Entrepreneur Internship has an opportunity to impart new skills to the managers of such firms to ensure business re-engineering and rejuvenation. If this is successful, the clients could introduce new business models to tap into the growing demand for brandy and Vodka. In the end, it is a win-win situation for both parties.
Focusing on Quality
Provision of quality services sets the business on a leadership role. There are numerous benefits and opportunities of being a business leader. First, the firm establishes its brand in the national and international market. Secondly, there is an influx of clients due to improved branding and better service delivery. Third, the workforce adopts an improved business culture and work ethic. Consequently, the organization earns an advantage over its competitors. Most importantly, Entrepreneurship Internship’s management should integrate Information Technology in the business model to exploit multiple business opportunities through online channels. For instance, the social media platforms such as Twitter, Instagram, or Facebook can be used to advertise the service and product to a global audience.
Foreign Market
            As the American beer industry become saturated with liquor firms, it is advisable for Entrepreneur Internship Inc. to venture into emerging markets. China, for instance, presents numerous opportunities considering the size of its population, appetite for alcoholic drinks, and penetration of Western quality products. Therefore, setting up a subsidiary in the country means unobstructed access to a large market.  Still, the firm has to invest heavily in studying the business culture and sourcing for a qualified local workforce but the return on investment will be worth the risk.
b.     The Viability of Business Diversification
            Diversification is a viable option for Entrepreneur Internship due to various reasons. Understandably, the sale and production of alcoholic products in the United is at the strategic crossroad. First, there is a gradual decline of the middle-income earners that often constitute the largest consumer segment. Secondly, the loyal customer base is diversifying their preferences and tastes. Third, the low-alcohol and beer market is completely saturated, leading to a lower number of potential clients that require training services. Lastly, the trend of globalization is rapidly eating into the American liquor market.
Considering these challenges, it is essential for the firm to adopt new strategies for future sustainability. In addition, other business entities in the industry have to strengthen their core alcohol production business and provide other beverages such as mineral water, or non-alcoholic drinks. Alternatively, the organization has an option of providing products and services in a different industry. However, Entrepreneurship Internship should focus on vertically integrated business opportunities or those founded on the industry’s core competencies. Either way, the new business environment will be closer to the parent industry. Of keen to note is that large rivals are spending a significant amount of resources on revamping the beer business to meet the consumer’s changing demands.
If the management prioritizes growth, it is important to carefully plan the future operation for short-term and long-term, success (Stern & Henderson, 2014). Indeed, business growth and diversification have risks but the adoption and successful implementation of the right strategy ensure stability and security. Most importantly, Entrepreneur Internship’s management has to exhaustively assess the current weaknesses, threats, and strengths to determine its readiness and to consider moving to the next stage. Next, the leadership has to build a new growth strategy.
As Entrepreneur Internship moves beyond the start-up phase, its focus adjusts to incorporate new business ideas for a sustained growth. Therefore, the identification of expansion opportunities ensures stable revenue generation. Some of the factors to consider prior to making business moves include market share, turnover, sales, profits and the number of employees. The determination of the aspects that paint an accurate image of the organizational performance depends on its ranking in the industry.
The Entrepreneur Internship performs relatively better compared to the competing firms. Therefore, it is viable to scout for other ways to develop. A failure to consider expansionary measures gives the rivals a chance to grow and eat up the firm’s market share. In the long-run, Entrepreneur Internship’s position weakens. Diversification, therefore, starts with the consolidation of the existing business platform. In addition, the management should ensure smooth operations for the core business even as it spends time and resources on diversification.  A successful diversification does not involve neglecting the existing customer base since it underpins growth. Besides, the loyal customers are the source of transitional cash flow.
Furthermore, the timing is right for diversification. Although the firm’s finances are limited, they are enough for coping with the expansion program. Besides, the systems and resources are in place for continuing the current path while targeting the foreign market. The firm sets aside financial resources for a backup plan in case the new initiative disrupt the performance. In this way, the regular clients will not lose out. Some of the plans that the management reviews prior to the diversification include redefining service provision techniques, the addition of specialized staff, and outsourcing of skills for an effective consolidation.  
The thorough customer and market research for the new services and products allow Entrepreneur Internship to create a clear development strategy. In fact, there are plans to try out the new service for a limited time period (for instance using test marketing and prototypes) prior to commitment. Moreover, a snap business analysis indicates that the supply chain, marketing, and sales operations can successfully cope with the additional demands. Diversification is necessary, especially in an increasingly globalized alcohol industry that forces businesses to consider the provision of new services or looking for new markets. Product and service diversification program is a risky undertaking, given that the organization must embrace unfamiliarity and uncertainty. In fact, the corporation is joining an unchartered territory, hence the importance of having an effective compass.
c.      Global Trends affecting Businesses
Global forces greatly influence the business environment in the US’s liquor industry. Business trends, for example, define how Entrepreneur Internship responds to competition and interact with clients. Some of the latest global trends include religious fundamentalism, technological advancement, healthy living, and emerging markets. Therefore, these forces define the business culture, thus prompting the companies to quickly adapt to the latest dynamics. In addition, globalization introduces fierce competition and organizational uniformity. Consequently, Entrepreneur Internship must devise strategies for enhancing compliance with the prevailing global business trends.
Focus on the Environment
SMEs and governments focus on sustainable business practices through environmentally friendly practices to mitigate climate change. The alcohol industry is not an exception. Entrepreneur Internship should incorporate lessons on the effect of global warming on business practices to ensure that the clients are conversant with the business trend. It is costly for small businesses to go green. Still, the US government has passed a policy that mandates a stamp of approval on all products to indicate green disposal and production. Notably, the administrative overheads rise significantly if the service industry observes strict environmental regulation. As a result, the production cost skyrocket throughout the business community as a net effect of compliance with global environmental regulation.
Information Technology
Technological advances enhance communication on a global scale. Businesses are exploiting this opportunity by reaching out to their potential clients through social media and online product promotion avenues. Other organization in the liquor industry use email and smartphone apps in communicating with their consumer base (Bughin et al., 2013). In particular, the social media advertisement platform is affordable for start-ups. It is an ideal choice for reaching out to a wide base of new customers, especially during business expansion and diversification.
Emerging Markets
The drive towards international trade is one of the globalization aspects. The interlinking businesses conceive a powerful force that constitutes a liquor market not limited by national boundaries or sea.  While globalization ensures international success for most of the US’s start-up firms, a financial crisis in one part of the planet (for instance the United Kingdom) has a direct influence on all the organizational subsidiaries across the planet. In addition, there is a remarkable interconnectedness of global supply chain network in that the production can be affected in Japan should something happen in the United States. In Japan, the traders’ worst fears were confirmed after the Earthquake and Tsunami. The emerging markets compound this issue due to increasing buying power and rising number of beer manufacturers. Eventually, the companies in this sector compete fiercely for raw materials and customers.
Further, the emerging markets are introducing reverse innovations for the developed world. Most tech start-ups in the United States introduce their products (such as iPhones) in the emerging markets first before bringing them to the EU or the US. The main reason is that the cost of labor is low in emerging Asian nations. Consequently, the emerging markets catalyze growth in the alcohol and beer industry.
Religious and Cultural Ideologies
Contradictory religious views and ideologies shape how business entities conduct their affairs. Specifically, the alcohol industry is under constant scrutiny from Christian activists due to underage drinking claims. On the other hand, ideologies compete for resources, time, and people’s attention. Whether cultural, religious or political, people have strong convictions and are ready to defend or maintain them at all costs. In some cases, spiritual groups can use intimidation and force to implement their agenda. For SMEs, transacting in foreign countries like the Middle East, Japan, or India calls for adherence to cultural and ideological views of the natives. The R and D team has to devise effective strategies for operating within such settings. In the Gulf States, there are some regions where alcoholic drinks and pork are decreed as non-halaal because of religion.
Population Growth
 The American population is growing at a slow rate but the global population is booming. There is a population explosion in China, India, Sub-Saharan Africa, and South Korea. It implies that in the near future, there will be a large market for goods and services. Already, China’s 1.3 billion people have an appetite for American products and services.  It is advisable for Entrepreneur Internship to reach consider this growing customer base.
Demographic change is also trending globally. For instance , Han Chinese constitute more than 20% of the global population, whereas in the United States, the Hispanic populace is growing rapidly. Statistics indicate that between 2000 and 2010, their population increased by 21 million to 52 million. This explains the shifting preferences and tastes for alcoholic products.
d.     Impact on Opportunities
As the world move towards minimizing climate change, Entrepreneur Internship has an opportunity to diversify its business structure by incorporating green products and services. For instance, the firm can collaborate with the government in drafting new lessons for their clients. The introduction of a new system of consulting with interns implies that this organization meets the federal government’s requirements. In addition, it earns a competitive advantage since Entrepreneur Internship adds a new service package to address market trends. Diversification to environmental awareness consultation services attracts a new customer base for long-term sustainability.
On the other hand, integration of business activities with the latest technology meets the firm’s goal of providing quality products and services. Through internet connectivity, the organization’s research team utilizes online tools and information to boost business performance. In addition, the social media platforms are usable in strengthening client-business relationship. Technology also ensures automation of most services in the beer production industry thus eliminating the company’s need for the additional workforce. In turn, the business minimizes the operational cost. Then, the management redirects financial resources to improving quality.
Due to the trending demographic changes, the firm should tap into the emerging market experiencing rapid economic growth. As the number of middle-income earners shrinks in the West, it is rising in Asian and Africa. Therefore, such regions are viable business destinations especially for firms experiencing poor performance in the United States. If the organization posts high profits and sales revenue in India or South Korea, the leadership can use the money to revive the local market or conduct extensive research and development.
Globalization of business operations gradually transforms the business landscapes overseas through cultural interactions and exchange of ideas. Over time, religious or ideological misconceptions regarding specific products and services will be eliminated, thus opening up the Middle Easter markets. Moreover, globalization is the source of start-up incubation business opportunity. When technology and accessibility to the internet open up remote places on the globe, aspiring entrepreneurs use electronic gadgets such as smartphones to learn through virtual conferences and video conferencing.
Business challenges trigger opportunities, especially for an innovative entrepreneur. In most cases, customers focused on environmentally-friendly products or services are willing to pay an additional premium for an entrepreneur that is ahead of the pack. For instance, listing the ingredients and local product traits increase its attractiveness than a competitor’s product shipped from Asia or Europe. Excellent entrepreneurs can recognize the specific business trends that are transformable into opportunities.
e. How Business Trends Affect Sustainability
The use of social media for product promotion introduces interactive marketing. It is growing fast due to its global popularity. Most entrepreneurs prefer this platform to costly traditional advertisement techniques in which the client is passive. Social media marketing, blogging, and use of emails encourage participation by the online community. Most interfaces have sections that the user can provide feedbacks. The data is crucial for ideation and product creation.  Given that there is no wrong or right answer, the clients are more likely to favorably choose the services or products. In light of this, it is clear that sustainability, marketing, and social networking are inherently interconnected.
Business sustainability is no longer out of reach even in the liquor industry. For entrepreneurs, greener options are available in the online realms. Green business unleashes more potential than was possible a decade ago. The more the organizations embrace changes and technology, the higher the profitability and chances of business expansion to new destinations. Therefore, the new markets abroad can sustain the failing local operations.
In summary, Entrepreneur Internship cannot survive in the domestic market unless the owner diversifies the operations. The local market is in a gradual decline, hence hurting profits. Partly, the cheap imports of alcoholic drinks and changing consumer taste are to blame for deteriorating performance. Some of the global trends such as demographic shifts and technology also influence Entrepreneur Internship’s annual performance. Exploiting technological advantages earns a competitive edge over rivaling firms both within and outside the United States.



References
Ardichvili, A., Cardozo, R., & Ray, S. (2013). A Theory of Entrepreneurial Opportunity Identification and Development. Journal of Business Venturing, 18(1), 105-123.
Bughin, J., Chui, M., & Manyika, J. (2013). Ten IT-Enabled Business Trends for the Decade Ahead. McKinsey Quarterly, 13(May).

Stern, I., & Henderson, A. D. (2014). WithinBusiness Diversification in TechnologyIntensive Industries. Strategic Management Journal, 25(5), 487-505.

Money and the Prices in the Long-Run and Open Economies

Abstract
While the American economic outlook is not robust, it is fairly healthy for a country that was in a major recession less than a decade ago. For years, the economy has had an annual growth rate of less than 2% and is likely to continue this trend. Surprisingly, the unemployment level is natural in spite of irrational exuberances creating busts and booms. One of the major changes is observable in American oil industry, where new fracking technology allow production of a domestic oil hence minimizing over-reliance of Middle Eastern oil. The move also symbolizes US contracting external influence and its preparation to shift to a consumer-driven economy rather than an import-export model.
















Money and the Prices in the Long-Run and Open Economies
The world’s most dominant economy operates at two speeds. First, a lackluster global demand and a strong American dollar weigh on export despite the mounting business investment pressure due to political uncertainties and low oil prices. Secondly, an upbeat consumer confidence, skyrocketing real wages, and unyielding labor market boost household spending. Late in summer 2016, ISM manufacturing contracted due to a decrease in nominal retail sales. It is attributable to the falling gasoline prices instead of slowing consumption of goods and services. Interestingly, the consumer fundamentals are buoyant since the business sector creates more than 200, 000 jobs per month (Bernanke, 2016).
Despite multiple domestic challenges and transforming global economic landscape, the United States plays a pivotal role due to its large diversified economy. The US GDP represents more than 20% of the total global output, surpassing China’s by more than five trillion dollars. However, the United States is quickly falling behind other small countries such as Singapore and Norway in GDP (PPP). Yet, it boasts a technologically advanced and highly developed services sector accounting for approximately 80% annual outputs. Start-up firms dominate US economy, especially in areas such as technology, and healthcare. Besides, large US firms play a leading role on a global stage as multinationals.
Although the service sector is a fundamental economic engine, the manufacturing sector accounts for 15% of the total output, only second to China. Even as the America’s global influence fades, it is still a powerhouse due to classy physical infrastructure and access to plentiful natural resources. There is also a productive and well-educated labor force, hence a full leverage of human capital in a free-market environment. The US economy has flourished over the years because of a functional legal system, political stability, and an effective regulatory structure. The new immigrants introduce an entrepreneurial culture and solid work ethic, thus providing high-quality jobs to the local population. For decades, capital investment, innovation, research, and development drive America’s economic growth.
Notably, the country is emerging from a tumultuous economic phase. A major recession in 2008 began due to factors like lax state regulation, excessive risk taking by money lenders, and high consumer indebtedness. Other factors include widespread mortgage lending, low-interest rates, and property boom. The contraction of US economy continued between 2008 and 2010 but started picking up a year later after the government spent 1.6 trillion on a stimulus plan. Mainly, these finances resurrect troubled firms for financial system stability.
Additionally, the government introduced expansionary monetary policies to support the weak and vulnerable economy. The move entails sustaining the low-interest rates and acquisition of financial assets to minimize long-term interest rates. In addition, the government prints more money for quantitative easing. Consequently, the unemployment level is gradually returning to the pre-crisis levels as the labor market recovers. Regardless, economists are skeptical on the health of the economy, given persistent stock market shocks and the exit of manufacturers to the emerging economies such as China (Jorgenson & Stiroh 2012). Other signs of the sluggish economy include wage stagnation, high medical and pension costs, infrastructure deterioration, rising income inequality and large budget deficits. Over the next five years, economists project that US economy will worsen unless the government focus on domestic matters rather than increasing military spending and pivoting to Asia.
            Government spending should drastically reduce in five years. Since the 2008 depression, it has grown faster and unhealthily. Even worse, most of the expenditures are to other causes rather than national defense or homeland security. The Obama administration should understand that the looming baby-boom generation retirement will lead to higher entitlement costs. Hence it needs to make early preparations by cutting on unnecessary overseas expenditures.  It is recommendable for the United States to adopt a small-government fiscal policy to avoid being less competitive.
            Budgetary control should serve as a chance for economic virtue out of monetary necessity. Excessive government spending for a prolonged period has a negative economic effect. Exceptionally, productive government spending may yield a high rate of return and economic benefit. However, in case the rate of return is relatively slower than the private sector’s the economic growth slows down. Reducing the government’s burden within the next 5 years leads to a faster economic growth since its current spending is very high.
Trade Deficit is not a crucial variable. The main factor is the government’s size and out it finances its operations. While it is true deficits and high taxes are harmful, siphoning money from the private sector and spending them in counterproductive policies neutralizes the chances of rebounding from the economic slump. If the national government had a surplus, it still would consider reducing spending.
Regulating federal expenditures is necessary due to globalization. Today, it is increasingly easy for jobs to migrate from developed economies to the growing nations like China and India. Therefore, the enactment of substantial policies rewards considerably.
The Effect of Monetary Policy
In the short-run, monetary policy affects inflation and demand for services or goods. In addition, an introduction of monetary policy leads to high demand for a skilled workforce to produce commodities. When the economy was fairly performing in the United States, the Federal Reserve adjusted federal funds rate to influence performance in the financial market. The changes affect short-term loans which in turn influence the long-term residential mortgage rates and corporate bond rates. Shifts such as these in those seen in the long run interest rates affect the future asset prices, dollar value, and equity prices.
            Over time, the changing financial conditions impact the economic activity. For instance, when long-term interest rates drop, people can borrow cheaply. Therefore, the citizens are more willing to expand business operations and acquire properties. In response, business entities increase spending by boosting production and hiring more laborers. Eventually, the increasing household wealth triggers additional spending. The links between employment, production, and monetary policy are undetectable, making it hard to gauge monetary policy’s long-term economic effect.
Furthermore, monetary policy sways inflation rate. For example, when the government reduces federal funds, the high demand for services and good pushes wages and other expenditures higher to reflect increased demand for materials and labor. They contribute to the production process. Besides, policy actions affect the people’s expectations on the future economic performance, and these speculations directly influence the current rate of inflation.
In the year 2009, when the long-term interest rates reached zero (hence could not fall further), the Federal Reserve invoked emergency monetary policy measures for economic support. For instance, between early 2009 and late 2014, the Federal Reserve acquired notes and long-term mortgage securities to increase the amount of money in circulation. The move also lowers the long-term interest rates. Since the 1990s, the US current account
Balance of Payments
Over the past three decades, the international trade flows have influenced the America’s current account balance. Earnings on investments and American assets overseas constitute an insignificant part of the current account. In addition, the surplus category cannot offset sizeable trade deficit. If there is a current account deficit, the value of services and goods sold to foreign buyers are more than those purchased from abroad. Since late1990s, America’s current account deficit expanded rapidly before peaking at 6% of GDP in the year 2007. It then dropped sharply in the following years and leveled at 2.3%. The drop is due to an increasing oil production in the USA.
Capital account surplus mirror the current account. In fact, financing the current account is possible due to capital inflows from abroad. Foreign firms (mostly Chinese) continue to invest in US firms and their assets, thus earning US the top spot in FDI rankings. In 2012 alone, US received $167 billion in FDI where 40% was from the manufacturing sector. 
America is one if the leading exporter and importer of services and goods globally. Nevertheless, the country has a trade deficit because it depends on oil from the Middle East to meet the domestic energy demand. In the year 2013, the trade deficit reached 701 billion. America plays a critical role in the global trade platform because it endorses free trade agreements while minimizing trade barriers. Among them are TPP and NAFTA (North American Free Trade Agreement).
The US government is struggling to eliminate adverse effects of recession through a combination of monetary and fiscal policies. The government actively implements a stimulus program and minimizes tax rates to stabilize the economy. In addition, the Federal Reserve utilizes both unconventional and traditional policies to tackle economic shocks. The US has a reputation as a successful enforcer of free-market policies. However, excessive government intervention has narrowed the differences between a Capitalistic economy and China’s communism.
Loanable funds and Foreign Exchange
The net capital outflows involve investments, savings, and foreign exchange. In a market for loanable funds (or investments), people deposit their savings in the banks. On the other hand, businessmen wanting to expand their investment borrow loans from financial institutions. Therefore, all income corresponds to savings in both government and private accounts (Ize & Yeyati, 2013). On one side of the equation, there are savings, while on the other side, there is foreign and national investment constituting loanable funds. Hence, there is equilibrium when net capital outflows and equal investment savings. High-interest rates imply relatively high ROI for loaners. Conversely, people borrowing loans return more due to additional interests.
When the US government experiences budget deficit, it remarkably cuts the amount of loanable funds, given that the expenses are more than annual revenues. Therefore, the negative value for government savings minimizes the total savings. At the same time, the real interest rate rises as the net capital outflow drop. In turn, the amount of dollars supplied for foreign exchange decreases. In the end, there is an appreciation of real exchange rate.
The net export rise since at any real exchange rate, import quota remarkably diminishes imports. Consequently, foreigners have to acquire more dollars for buying US net exports. While this raises the real exchange rate, there is no observable change for loanable funds market. Hence, the effect on real interest rate is negligible.
In summary, the strategic plan is achievable despite slow US economic growth. First, the US government is reputed for implementing effective interventions to salvage the economy in times of crisis. For example, the Federal Reserve introduced monetary and fiscal policies to halt economic contraction within two years. Therefore, businessmen and consumers have confidence in future American economic prospects. Secondly, US’s is a global leader in innovation and research and development. Besides, there is a skilled workforce to ensure business success and expansion. Third, most countries use US dollar as a reserve currency hence can maintain its value despite government’s economic stimulation program. However, the government has to focus on domestic spending, especially in the infrastructural upgrade.

References
Bernanke, B. S. (2016). US Economic Outlook. Vital Speeches of the Day, 73(9), 377.
Ize, A., & Yeyati, E. L. (2013). Financial Dollarization. Journal of International Economics, 59(2), 323-347.

Jorgenson, D. W., & Stiroh, K. J. (2012). Raising the Speed Limit: US Economic Growth in the Information Age. Brookings Papers on Economic Activity, 2012(1), 125-210.

Denver Art Museum

Jovan Karlo Villalba
IMG_3801
At a glance, it is clear that Jovan Karlo’s interest lies in imaginary depictions. The artist courageously incorporates random colours in his work to evoke viewers’ emotions. In fact, he toys with the observer’s experience by including reflective materials like stainless steel. Ironically, the golden frame, a white background, and paint layers combine to form an interactive surface. Eventually, the depiction changes the viewer’s environment. A closer look reveals that the environment is not only free to inhabit but also intriguing. As the viewer inspects the details, he realizes its potential danger and a new reality. The painter intentionally undermines coherence to expose a familiar terrain.
Hamilton Building
On the Third floor of the Denver Art Museum (DAM), there is a special exhibition of controversial art. The exhibitors unify the eclectic piece mash-up under politics, geography, self, and ecology threads. In addition, they typed thought-provoking explanations on the white walls. The artwork not only invites viewers but also incite them to start conversations. The artists employ crude and simplified depictions of riffs and everyday materials on cultural conventions for infusion of contemporary art with a challenging and provocative theme.  A glaring image by Robert Therrien on Hamilton’s walls greets viewers as they enter through the giant glass doors. Given that the room is spacious and well-lit, the attendees have an unobstructed view of artwork from all four sides, despite the plastering of wall dividers.
If there were no common threads, the room would be boring. It would look like a closet with random neatly packed objects without a purpose. In the Audacious, there are other notable pieces like the blinking neon sign by Bruce Nauman and Mel Chin’s blurred wood pipe.  For a viewer willing to participate, the exhibit has six transparent glass bowls with distinct colored blocks. They are visible near the first divider on the wall entry. Notably, there is a massive portrait window specifically designed to view Denver’s warm blue skyline.














Adoration of the Magi

The Adoration of the Magi measures a sizeable nine feet by eight feet. The painting by Sandro Botticelli depicts numerous people surrounding Jesus Christ’s makeshift structure. Instantly, the viewer notices the crumbling edifice surrounding the child’s modest roots which poignantly contrasts the rich robes of the bystanders on the makeshift altar. All the individuals portrayed in the painting are members of Medici family. Further, the artist’s excellent skills reveal distinct expressions poses, and characters, thus highlighting a diverse array of imagery and colors. Probably, Botticelli painted himself as a blonde-haired old man on the front-right. There is no doubt that his self-portrait marked a pivotal moment in his work.
North American and European Building
The north building is warm and inviting. The structure’s interesting architectural designs and graphical representations cannot be found anywhere else in DAM. On the sixth floor, there are dozens of works from 1900 and the middle ages, thus representing a major development in technique, style, materials, and form of North American and European decorative art and furniture. The incorporation of Egyptian mummies and casing adds a new taste to the room. They remind the viewers of British discoveries in Egypt while the Middle Eastern country was under its colonial rule.
Gallery Space Comparison
I prefer Hamilton building in comparison to the North building because the former is well lit than the latter. Besides, Hamilton building some of the most coveted art of the modern art that invites the viewer to think critically. O n the other hand, most of the artwork in the North Building has an unclear history. For instance, there it is probable that the Egyptian mummies were smuggled into the DAM from Egypt (Denver Art Museum 52). They belong to their native country and should peacefully be displayed in their Egyptian tombs.

















Works Cited

Denver Art Museum: Highlights from the Collection. Denver: Denver Art Museum, 2014: 1-83. Print.

Turkey

Turkey
In the year 2009, Barack Obama invested politically in Turkish government due to multiple reasons. The United States could not ignore Turkey’s role in the Middle East and its strategic position on the global map. Therefore, America expects President Erdogan and his regime to sustain stability in Iraq, combat terrorism in the Middle East, and enforce sanctions so that Iran can shake off its nuclear ambitions. In addition, the political investment on Ankara confirms Turkey as a vibrant secular democracy playing a fundamental role in the NATO alliance while pushing for EU membership.
As Turkey and the Washington enter the third decade of strong relations, there are signs of new cooperation due to promises of integration with the EU, strong economic ties, and Volatility in the Middle East. The current political unrest in Afghanistan, Iraq, and Syria is a stark reminder to US and Turkey of their complementary tactical perspectives and mutual interests. Over the past decade, Turkey has made significant military and financial contributions to US and EU’s mission in Afghanistan. Notwithstanding, Ankara’s military efforts against PKK (Kurdistan Workers Party) and the country’s decision to join NATO underline the extent of cooperation between the two nations in a conflict-prone society.
Nevertheless, stubborn issues plague the relations. While both countries aim at fostering the relations, there are major points of divergence in their policies and perspectives. Consistently, each side falls short of the other’s outlook, unlike during the post-Cold War period when each country was aware of what to give and receive in the partnership. For instance, Turkey is critical of US’s infringement of its sovereignty by hosting Gulen and supporting his movement[1]. In addition, Washington does not pressurize Israel onto the negotiating table to forge a two-state solution. On the other hand, America is increasingly uncomfortable with the strengthening ties between Turkey and Moscow and its support for Iran government.
Turkey’s Future
In the future, several factors are likely to shape Turkish-US relations. The first aspect is how the America repositions itself as a global power by shifting attention to Asia while minimizing military presence and expenditures in the Middle East. The relationship is remarkably affected if Turkey opts for an independent path to shape its future instead of cooperating with EU and US in enforcing foreign policies. The Turkish public is highly skeptical about America’s motive in the region, especially after a recent wave of violence and attempted coup in the country[2]. Therefore, the domestic political consideration in the United States and Turkey will be another fundamental determinant. The public does not endorse Ankara’s attempts to act on behalf of America or EU in the region. Instead, the people want the country to push its independent agendas to regain its former glory as an Ottoman Empire[3]. As the America’s power wane, its fading profile in the Middle East is likely to undermine regional cooperation among countries such as Egypt, Iraq, and Saudi Arabia.
As various issues unfold, they shape the future of Turkish-American partnership. Specifically, the Middle East’s popular uprising exerts pressure on the United States and Turkey to cooperate in the regional democratic transformation process. Besides, the two countries must compromise their stances on how to deal with Iran’s nuclear deal and the Syrian crisis. On the other hand, Russia’s role in Asia and the Middle East, as well as its influence in Turkey, shapes Ankara’s relations with NATO. Similar to any relationship, the evolving partnership between US and Turkey has a potential for deterioration and improvement. Still, it is the United States that needs to strengthen ties with the former Ottoman Empire since Turkey has other viable options at hand. For example, its relationship with Moscow and China is warming up.
NATO
Turkey describes NATO as a cornerstone of its security and defense policy. Since it joined the alliance in 1952, the country’s significance has grown tremendously, especially in the face of regional stability. Turkey’s geographical position makes it a pivotal gateway to the Middle East, EU, and Russia. Therefore, it can provide Military posts for any of its neighboring states[4]. NATO, for instance, projects its military capability beyond EU’s borders. In addition, Ankara contributes a significant number of troops to NATO’s peacekeeping missions in the Middle East.
However, Turkey’s relationship with NATO and the United States is turning sour. In the year 2009, the country bluntly objected Anders Rasmussen’s appointment as NATO’s secretary general. According to Turkey’s spokesperson, this appointment highlighted the unusual decision-making structure in the alliance, thus dampening the spirit of cooperation. In the same year, Turkey blocked Israel from participating in the annual NATO joint military drill. Besides, the country’s leader has hosted both Sudanese president and Iranian leader, thus breaking NATO’s diplomatic consensus. While such activities pose no threat to NATO’s longevity, they raise questions regarding Turkey’s role and commitment in the alliance.
The American government and its NATO allies have to improve their strategic relationship with Turkey by expanding energy cooperation. However, the pre-condition is that Turkey should not use Iraq-Turkey gas pipelines for exporting energy to Iran. Moreover, the US Energy Department ought to provide diplomatic support for Turkey’s Caspian Basin projects. On the other hand, America must remind Turkey that the persistent support for the Iranian nuclear deal and its sustained confrontation with the Jewish state has a potential of jeopardizing intelligence and military cooperation. It is advisable that the current US administration should mediate talks between Israel and Turkey to ensure good relations in the future.
Furthermore, the United States, as a pillar of democracy and freedom, has to monitor the rule of law, political climate, and civil freedoms in the former Ottoman Empire. Given its close ties with European countries, the US Helsinki Commission, US Human Rights Watch, and EU’s Organization for Security Cooperation should closely scrutinize Turkey’s transparency and track record on press freedom[5]. Additionally, America ought to express concern and anger on Russian-Turkish military and economic ties, for instance, the latest purchase of a nuclear reactor from Russia. At the same time, the United States has to encourage Turkey to play a pivotal role in ensuring regional stability, security, and resolving conflicts in the Caucasus. Ankara and its regional partners must not recognize the independence of South Ossetian and Abkhazian by rejecting Russia’s military bases in these regions. Besides, NATO should emphasize that Armenian-Turkish rapprochement is linkable to Karabakh conflict resolution, which included Azerbaijani liberation.
Role of US
Moreover, the United States should fully support upgrading Turkish-EU trade relations through FTA (Free Trade Agreements) and the ratification of Mediterranean-Euro FTA. Besides Washington’s support for Ankara’s accession to the EDA (European Defense Agency) should be unquestionable. America should also not associate Turkey’s advocacy for membership in the European Union as the Muslim world’s relations with the West. Sharp contrasts exist between Turkey and other Muslim states such as Iran. At one time, Iran (a former Persian power) engaged in a serious conflict with Ottoman Empire. Disagreements still exist today[6]. Besides, there is a rivalry for regional dominance between Saudi Arabia and Turkey. Lastly, the US government must request the deployment of additional Turkish troops to Afghanistan for the provision of material and removal of national caveats. The air support for NATO troops should be unrestricted in Turkey. In this way, the United States can deploy additional Liaison and Operational Mentoring Teams to the war-torn country.
            Of keen to note is that on the current trajectory, Turkish age-old strategic partnerships with the West could degenerate into looser affiliation as the country enters into regional partnerships with Russia, Iran, and China. Some of these powers are hostile to NATO. The backlash instigated by the AKP against Israel has enabled Davutoglu and Erdogan to extend Turkey’s Islamist support and reorient its foreign policy. The US and EU cannot stare idly as these events unfold. Unless the emerging differences are addressed immediately, they pose a threat to future engagement between NATO and Turkey.
            Kemalist mantra states that the see surrounds Turkish people on three sides while their enemies are on four sides. Perceptions such as this informed generations of Turkish policymakers and students, thus reflecting the impact of Cold War and the country’s fragility. Turkey is one of the Countries that froze into a geopolitical box in a bipolar planet between 1950s-1990s. Throughout the 20th Century, the members of Soviet’s Warsaw Pact allies and authoritarian Islamist regimes surrounded Turkey. Others such as Greece had deep historical animosity with the Turkish people.
                                                               Turning Point
            The country embraced modernism n the late 1990s, thus softening the siege mentality and embracing close ties with the West. AKP’s success in the year 2002 marked an end to the era of hostilities with neighboring countries as the conservative Prime Minister declared the ‘complex Turkey is now behind us.’ Erdogan buried widespread misconceptions in the country, overcoming people’s convictions that other countries in the EU and the Middle East tried to hold Turkey down[7]. In 2010, the government initiated a policy aimed at mending strained relations with old foes for economic and political prosperity. However, the fruits of this determination are yet to materialize, given the slow process of implementation and internal political wrangles. Nonetheless, Turkey made a significant step forward.
            The change of heart and willingness to cooperate with the Western countries injected optimism regarding the isolated nation’s future. At last, there was a chance to refute conspiracy theories in Turkey that referred to Western imperialism to all regional conflicts and dynamics. Americans saw the new strategy as a rational modern stance despite being conceived on a conservative ground. During the early 2010s, it was clear that Turkey’s new ambition was to revive universalist views by pushing for EU membership while engaging with the Levant[8]. Even better, Turkey’s government forged a Kurdish opening in the year 2009 to demilitarize the country’s political system and to end a three-decade-old war that resulted in tens of thousands of deaths.
            Considering these advances and democratization, the Obama administration continued Bush’s recast of U.S. relations with Turkey. Consequently, there were important developments between America and Turkish people as the leaders sealed trade and security deals worth billions of dollars. Still, President Erdogan used US’s commitment as a populist punch bag to elevate his political dominance domestically.  On the contrary, the United States government viewed the improving relations as a way of sustaining a durable partnership. In addition, Obama argued that the move initiates democratic and economic reforms for domestic legitimization. In this way, Turkey becomes a pioneer haven for democracy in the region alongside Egypt.
            However, political analysts argue that America’s vision for a democratic Turkey has failed. The events that took place between 2014 and 2015 painfully reveal that the West has to do more to reverse the trend towards dictatorship and crackdown on the opposition. The chances are that the Turkey-US alliance is another victim of regional upheaval and Russia’s rise. Today, the Turkish-US interactions are hard-bargaining and testy affairs. In fact, the Turkish president proposed a closure of US military base in the country, citing a lack of cooperation on American part to extradite Erdogan’s staunch critic. The attempted coup has seriously cost the US since it backfired. Whether America and EU were involved is subject to debate, but Russia is capitalizing on America’s failing policies. It has not gone unnoticed, given that the American public is increasingly angry and pessimistic. The latest polls show that majority of American taxpayers are against foreign military spending and global projection of power due to heavy costs incurred. Yet, the US cannot neglect Turkey because the repercussions and retaliatory measures will benefit Russia and China, two of its greatest economic and political enemies.
            After decades of America’s investment in partnership with Turkey, the cultural and political differences between the two giants cannot be ignored. Ironically, Turkey’s close cooperation with Obama’s administration bolstered Erdogan’s role as a president and prime minister. America gets nothing in return. Turkey is aware of America and EU’s nervousness due to declining influence hence Erdogan’s government bargains for more privileges (such as EU membership and upper-hand in NATO decision-making) without reciprocating. What they fail to realize is that AKP’s dictatorial and anti-western move isolates the country[9]. In addition, it dents Erdogan’s ability to shape regional policy than any other time in its modern history[10]. Despite this, the regime dismisses more US, and EU offers more than it can accept. Undeniably, Turkey’s strategic position is both a liability and an asset. Unless the Turkish people understand that genuine influences are built on reliable capabilities, they cannot exploit full advantages of their Geographical position. On the other hand, America should track regional shifts and introduce policies driven by allies’ national interests. However, Washington should not compromise on democratic convictions to suit religious paradigms.
            While America cannot dictate terms of Western relations with Turkey, it has the power to negotiate, induce, confront and persuade Erdogan where necessary. As a result, the country may agree to maintain shared interests and fulfill the current responsibilities. Honesty should be a top priority for Washington and Ankara regarding Turkey’s NATO and EU membership prospects. In spite of Turkish accession status, the American government has to implement tangible projects to increase engagement between EU and Turkey. It is true that the United States needs Turkey to be a strong and dependable partner in the region. However, the country has to exercise its sovereignty by pushing its agendas in the same manner as the United States or EU member states. Besides, the Western powers should not forget the existing cultural and religious differences with the Middle East. Therefore, their activities in the region have to be measured through identification of the long-term consequences. In particular, the United States must learn a critical lesson from the recent waves of war in the Middle Eastern countries like Libya, Yemen, Iraq, and Syria[11]. Unless Washington redrafts its foreign policy strategies, Turkey heads in the same direction as Syria or Libya despite being geographically closer to EU.


Bibliography
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Baran, Zeyno. Torn Country: Turkey between Secularism and Islamism. Hoover Press, 2013.
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[1] Yavuz, M. Hakan, and John L. Esposito. Turkish Islam and the Secular State: The Gèulen Movement. Syracuse University Press, 2003.

[2] Aknur, Müge. Democratic Consolidation in Turkey: State, Political Parties, Civil Society, Civil-military Relations, Socio-economic Development, EU, Rise of Political Islam and Separatist Kurdish Nationalism. Universal-Publishers, 2012.
[3] Bay, Austin. Ataturk: Lessons in Leadership from the Greatest General of the Ottoman Empire. Palgrave Macmillan, 2011.

[4] Linden, Ronald Haly, Ahmet O. Evin, Kemal Kirisci, Thomas Straubhaar, Nathalie Tocci, Juliette Tolay, and Joshua W. Walker. Turkey and Its Neighbors: Foreign Relations in Transition. Lynne Rienner Publishers, 2012.

[5] Kibaroğlu, Mustafa, and Ayșegül Kibaroğlu. Global Security Watch--Turkey: A Reference Handbook. Greenwood Publishing Group, 2009.
[6] Mango, Andrew. The Turks Today. Hachette UK, 2011.
[7] Rabasa, Angel, and F. Stephen Larabee. The Rise of Political Islam in Turkey. Vol. 726. Rand Corporation, 2008.
[8] Baran, Zeyno. Torn Country: Turkey between Secularism and Islamism. Hoover Press, 2013.

[9] Stein, Aaron. Turkey's New Foreign Policy: Davutoglu, the AKP and the Pursuit of Regional Order. Routledge, 2015.
[10] Heper, Metin, and Nur Bilge Criss. Historical Dictionary of Turkey. Scarecrow Press, 2009.
[11] Huntington, Samuel P. The Clash of Civilizations and the Remaking of World Order. Penguin Books India, 2011.