International Business Essay Example | Topics and Well Written Essays - 1500 words - 1

International Business - Essay Example Among these is the fact the assumption that the problem with Greece is based on liquidity instead of solvency. While there might be a problem with liquidity in Greece, the problem that is affecting it most is solvency, something that is not being considered. Instead, the IMF and the European Union are treating the crisis as one of liquidity and they have taken steps to counter it as such. This has not helped Greece recover and may, in fact have made the problem worse than it already was. A second issue about how financial markets work that has been ignored is the fact that the Greek debt will be sustainable in the future and that the economy will eventually absorb all the debt that it currently has. What has not been considered is that financial markets do not work well with uncertainties (such as future sustainability) and instead, they only gain confidence if action and their results are seen immediately. The third issue that has come to affect the Greek economy is that its governm ent was given loans way before a plan on how to spend the money given was made. This ensured that there would be a problem with how the money was spent, because it ended up being lost because of unplanned spending. The fourth issue discussed in the article is that fact that while Greece has been promised enough financial support to end its crisis effectively, it has become almost impossible to implement its recovery program because most of the money has yet to be received. Instead, most of the money received has been given in bits and this has made it impossible for the economy to recover. This has made the financial markets wary of taking part in the Greek economy as its future has become uncertain. When one considers the points brought up in the article, one concludes that the Greek financial crisis is something that can be solved if only the people and organizations involved would work faster than they already are to end it. The only way through which this crisis can be solved is if the financial markets can regain the confidence they once had in the Greek economy. The support of these markets would ensure that the flow of money into Greece would become stable and that its liquidity and solvency problems would end. The only way open for the Greek economy to be saved is for all the money that was promised to be made available at once to ensure stability in the financial markets. International monetary systems The article by Jack Ewing discusses the international monetary systems, dealing specifically with the Eurozone, which has for the last few years had to deal with various economic crises. Among these is that fact that many of the countries in this zone have are in either recession or are about to enter one. This has seriously threatened the Euro and until recently, many had even questioned if this monetary system was viable. There had been fears that because of the financial crisis encountered by Greece, then this country would withdraw from the Eurozone , thus leading others into abandoning the currency. However, this was not the case, and in fact, the year 2012 saw a recovery in confidence for this monetary system as it continued to perform well. The countries whose economies were expected to collapse such as Spain and Italy did not turn out as expected despite remaining deep in recession. This encouraged the continued confidence in the Euro and the belief that things would be much worse if this monetary

Heineken Marketing and Business Analysis

Heineken Marketing and Business Analysis Jump to: SWOT Analysis of Heineken | Porters 5 Analysis of Heineken | Heinekens Main Competitors Heading the Heineken Group, Heineken Holding N.V. is no ordinary holding company. Since its formation in 1952, the objective of Heineken Holding N.V., pursuant to its Articles of Association has been to manage and/ or supervise the Heineken Group and to provide services to the Heineken Group. The role Heineken Holding N.V. has performed for the Heineken Group since 1952 has been to safeguard its continuity, independence and stability and create conditions for controlled, steady growth of the activities of the Heineken Group. This stability has enabled the Heineken Group to rise to its present position as the brewer with the widest international presence and one of the worlds largest brewing groups. Every Heineken N.V. share held by Heineken Holding N.V. is matched by one share issued by Heineken Holding N.V. The net asset value of one Heineken Holding N.V. share is therefore identical to the net asset value of one Heineken N.V. share. The dividend payable on the two shares is also id entical. Historically, however, Heineken Holding N.V. shares have traded at a lower price due to technical factors that are market-specifi c. Heineken Holding N.V. holds 50.005 per cent of the Heineken N.V. issued shares. LArche Green N.V. holds 58.78 per cent of the Heineken Holding N.V. shares. The Heineken family holds 88.42 per cent of LArche Green N.V. The remaining 11.58 per cent of LArche Green N.V. is held by the Hoyer family. Mrs. De Carvalho-Heineken also owns a direct 0.03 per cent stake in Heineken Holding N.V. Bondholder information On 4 November 2003, Heineken N.V. issued two bonds for a total of EUR 1.1 billion. In addition, on 26 February 2009 Heineken placed six year Notes of GBP400 million (EUR 450 million) with a coupon of 7.25 per cent, on 25 March 2009 fi ve year Notes of EUR 1 billion with a coupon of 7.125 percent and on 1 October 2009 seven year Notes of EUR 400 million with a coupon of 4.625 per cent. These Notes were issued under the European Medium Term Note Programme established in 2008 and updated in September 2009. The European Medium Term Note programme allows Heineken N.V. from time to time to issue Notes for a total amount of up to EUR 3 billion. As currently approximately EUR 1.9 billion is outstanding, Heineken still has capacity of EUR 1.1 million under the programme. The programme can be used for issuing up to one year after its establishment. The Luxembourg Stock Exchange has approved the programme. Risk Management and Control Process Main risks Under the explicit understanding that this is not an exhaustive list, Heinekens main risks are described below, including the mitigation measures. Risks concerning the Heineken brand and Company reputation, economic downturn, volatility of input costs, exchange and interest rates, availability and cost of capital and increasing legislation (such as alcohol excise duties and anti-trust) affecting the business are considered the most significant risks. The main Company risks have been discussed with the full Supervisory Board. Attractiveness of beer category under pressure Heineken has many operations in mature beer markets where the attractiveness of the beer category is being challenged by other beverage categories. Consumers may also change behaviour following the rise of discount brands and retailers following the recession. In these markets, especially, the on-trade channel is under pressure, which makes adjustments to the cost base unavoidable. Heineken is relatively highly geared to mature markets since their acquisition of Scottish Newcastle. Management focus is on product innovation, portfolio management and costeffectiveness in order to secure market position and profitability. Pressure on alcohol An increasingly negative perception in society towards alcohol and more specifically alcohol abuse could prompt legislators to take restrictive measures including restrictions, on such things as commercial freedom and increased government tax. This perception is fed by critical coverage in the media. Further restrictions of our commercial freedom to promote and sell our products could lead to a decrease in brand equity and potentially in sales and damage the industry in general. Heineken actively participates in the EU Forum on Alcohol and Health and delivered its commitments in the area of consumer information, alcohol consumption at the workplace and commercial communication. In 2009, Heineken continued to work on establishing effective self-regulation in the EU together with the Brewers of Europe. Volatility of input costs Pricing strategies are top priority in all of our markets. This includes assessments of customer, consumer and competitor responses based on different pricing scenarios, which will have different outcomes market by market. In principle, we will pass on increased input costs impacting volume. During the second half of 2008, commodity markets rapidly declined following the world economic climate and remained depressed for most of 2009. In addition, the run of several years poor harvests in key grain and hop markets has reversed and world grain stocks are recovering. Economic downturn The economic crisis has impacted our regular business activities and performance, in particular in consumer spending and solvency. However, the business impact differed across our regions and operations. Local management has assessed the risk exposure following Group instructions and is taking action to mitigate any higher than usual risks. Intensified and continuous focus is being given in the areas of customers (managing trade receivables and loans) and suppliers (financial position of critical suppliers). Also, management attention is given to our relationships with banks (see capital availability risk) and insurance companies (credit worthiness (re)insurance companies). Regional Management and involved Group functions oversee the effectiveness of management analysis and action, supported by input from Internal Auditors. Financial risks Currency risk Heineken operates internationally and reports in euros, which has proven to be a very strong currency over the past few years. Currency fluctuations, relating to the US dollar, South African rand, Polish zloty and, to a lesser extent, the British pound could materially affect overall Company results, considering the size of exports from the eurozone to mainly the USA and South Africa. Heineken has a clear policy on hedging transactional exchange risks, which postpones the impact on financial results. Translation exchange risks are hedged to a limited extent. In 2009, operating results of Operating Companies in countries with currencies that devaluated versus the euro are translated into euro at lower rates. Since the Group attracts funding and pays interest in these currencies as well, the impact of devaluations of such currencies like the Russian rouble, British pound and Polish zloty on our results is mitigated to a certain extent. In addition, Heineken strengthened its risk manage ment regarding the monitoring and managing of currency and interest positions. Capital availability The Company has a strong focus on cash generation to reduce its debt levels and to improve its financing ratios. The Company has a clear focus on ensuring sufficient access to capital markets to refinance maturing debt obligations and to finance long-term growth. The Company aims to further fine-tune the maturity profile of its long-term debts. Financing strategies are under continuous evaluation. Terms and conditions of additional refinancing may be impacted by the changing credit market conditions. Strong cost and cash management and strong controls over investment proposals are in place to ensure effective and efficient allocation of financial resources. Litigation Due to increasing legislation there is an increased possibility of non-compliance. Additionally, more supervision by regulators and the growing claim culture may potentially increase the impact of non-compliance, both financially and on the reputation of the Company. Each half year, all majority-owned companies formally report outstanding claims and litigations against the Company in excess of EUR 1 million to Group Legal Affairs, including an assessment of the amounts to be provided for. There may be current risks that do not have a significant impact on the business but which could at a later stage develop into a material impact on the Companys business. The Companys risk management systems are focused on timely discovery of such risks.   SWOT Analysis (S)trengths Heineken has very different brands in thirteen markets. It is a global brand and established itself in international strategy The company have purchased a lot of national breweries. There is Recognition of bottle (Green bottle) dispenses and different  instruments such as (Mini keg) (W)eaknesses Heineken has a conservative and safe play culture. The company had  struggled to obtain larger Breweries. Young Beer drinkers dont prefer Heineken Prices are costly when compared to domestic market such as $10 would  be for six packs and in the domestic market it is $7 for six packs. (T)hreats Government restriction to drunken driving laws. High competition in the beer industry to increase the market share. Joint ventures and acquisition of other companies which tend to become  larger than Heineken. (O)pportunities The trends of the society changing to consumption of healthy beer with  low calories. In Asia and Russian there is increase in population which the company is  having high market share. In the U.S industry a particular segment the Hispanic are growing  tremendously Porters Five Forces of Competition Threat of substitutes: Very little technical composition of beers The growing segment of wine industry Threats of new Entry: An investment amount of $250 million dollars to build 4 million barrel brewery There is risky entry since there is no alternative use of breweries Top positions have not been cracked by new entrants Bargaining power of buyers No true brand loyal to any particular brand The Demand for the major competitor brand Budweiser is Inelastic Bargaining power of suppliers There were fewer amounts of Brewers and larger plants. High cost of production due to rise in price of products such as grains glass and  aluminium. There were many number of buying supplier of input (Wheat field). Rivalry Between established competitors During 1947 Heineken established itself in top 5 acquired 19% of the market in  U.S. During 2001 Heineken was included in top 5 and generated 87% of the U.S  market share. The beer industry is very highly competitive industry due to this reason many  brewers leave the industry. Main Competitors for Heineken Anheuser-Busch, Inc. Anheuser-Busch, Inc.is 100 percent owned by the holding company Anheuser-Busch Companies, Inc. The company mostly focuses on domestic beer sales, 75% of its total revenue, 4% from international beer sales, 15% from packaging, and 6% fromentertainment. Corporate level strategy At the corporate level, Anheuser-Busch pursues the dominant vertical business strategy. All ratios (specialization, related and vertical) are well above 70%. The company focuses mainly, but not exclusively, on beer production and is heavily vertically integrated, which sets it apart from most of its main competitors. Value Drivers Anheuser-Busch ranked first in the category quality of products and services. The company also won the first rank in the overall category Beverage Industry. Strength challenges and weakness Anheuser-Busch derives most of its market strength from its overwhelming scale and scope economies. The king of beers uniquely transforms this strength into several unrivalled competitive advantages, including cost efficiencies, exclusive relationships with many of its wholesalers, a dominant presence at the retail level, advertising efficiency and pricing power. A-B is growth limited because the company is operating above 95% production capacity, which already presents seasonal challenges. The overwhelming success of the past decades could potentially lead to complacency among ABs employees and distributors. SAB MILLER PLC SABMiller has brewing operations in more than 40 countries spanning four continents. The company is the second largest brewer in the world by volume and one of the largest Coca- Cola bottlers and distributors of Cokes carbonated soft drinks outside the U.S.79 The primary brands in the U.S. markets are Miller Genuine Draft, Miller Lite, Fosters and Pilsner Urquell, and Henry Weinhards and Leinenkugels. Other U.S. brands include Icehouse, Old English 800, High Life, Milwaukees Best, Mickeys Malt Liquor and a non-alcoholic beer called Sharps. Corporate Level Strategy The SABMiller corporate level strategy is a dominant linked  corporations strategy. The stated corporate level strategy is to optimize and expand its existing positions through acquisition and to seek value-adding opportunities to enhance its position as a global brewer. SABMiller business level strategy is to serve the mass markets for beer and soft drinks with broad differentiation as perceived by consumers. Value Drivers A primary value driver of SABMiller is its brand recognition. The Miller Genuine Draft  and Miller Light brands, for example, have a long established brand equity that drives their  respective sales. Strength and weakness SABMiller has strong brand leadership and it continues to develop new brands through partnerships. The strategy of diversification across currencies and geography makes the company relatively immune to regional changes in beer consumption, tastes, growth trends, and currency fluctuations. The Miller Brewing acquisition required significant management attention and a large investment on the part of SABMiller that will continue to affect profitability over the next two to three years. Coors Aldoph Coors Company was founded in 1872. Coors was family owned until 1975 when  the company first became public. The Coors family continues to be involved in the company  with nine of its members working for the firm.95 All of Coors brewing and packing facilities are currently U.S. based, having divested a brewery in Zaragoza, Spain in 2000.96 Its largest facility, in Golden Colorado, has the ability to produce 20 million barrels of beer in a year and is considered the largest brewing facility in the world. Corporate Level Strategies Coors current corporate strategies focus on improving  operational efficiencies and expansion through acquisition. Coors seeks to grow its markets  regionally. This is evident through its Carling acquisition and its current regional appeal in the U.S. All of Coors revenues come from the sale and distribution of beer and malt beverages. Value Drivers Coors is improving its brewing operations by investing in supply chain management systems, joint ventures with packaging companies and plant upgrades. Strength and weakness Coors has never wavered in its dedication to maintain their access-based position in the market. Its success has been attributed to latching onto a market trend toward health conscious consumers and developing and executing a focused strategy. The companys weakness is in establishing the correct cost basis for their strategy. Coors has the highest COGS per barrel compared to its peers. Further growth may be limited unless the  company seeks global expansion. As of today, Coors is not participating in the fastest growing global geography, China. CORONA AND LABATT Corona beer, a brand of Grupo Modelo de Mexico, and Labatt, a brand of Labatt USA,  are the major competitors to Heineken. In addition to the individual brands of Corona,  Grupo Modelo also owns Pacifico and Modelo Especial. Labatt USA has strong brands with  additional products such as Rolling Rock, and is the distributor of Tecate and Dos Equis. Both companies participated in the beer industry consolidation. Anheuser Busch has increased ownership of Grupo Modelo to 51% after an initial investment of 13% in 1993. Corporate level Strategies The corporate level strategy of Labatt USA is dominant  linked, serving various niche markets throughout the country. Labatts large portfolio of  specialty beers serves different niche markets with widely divergent geographic strengths. Grupo Modelo pursues a dominant linked strategy, however its limited brands serve only  smaller niche group. Both companies focus on the specialty beer market by controlling  manufacturing and distribution channels through vertical integration. Business level strategies. Labatt USAs and Grupo Modelos business strategies are  product differentiation. Both companies emphasize the quality of their products and their  abilities to satisfy customers. Value Drivers The primary value driver for Grupo Modelo and Labatt is their individual brand equity. Corona has been a staple in Mexico since the early 1900s. Many of the brands in Labatt USAs stable, such as Bass and Lowenbrau have been around for centuries. Since Grupo Modelo focuses on only 5 brands with huge production volume, it is able to  exploit manufacturing and production scale and scope economies as cost drivers. Strength and weakness Labatt and Grupo Modelo enjoy strong brand leadership, while Labatt has additional advantages due to its relationship with Interbrew and FEMSA that allows brand  expansion. Regression Analysis Heineken NV Heineken Holding NV Anheuser-Busch InBev Carlsberg A/S Group Modelo SAB de CV SAB Miller PLC Molson Coors Brewing Co.

Herman Melville :: essays research papers

Herman Melville created many characters in his writing that had a mysterious nature to them. Melville himself had a bit of mystery in his own personal character and this quality is shown through many characters such as Claggart and Bartleby. Besides having a mysterious side to him, this author was stubborn. Even though his work wasn’t always praised he remained determined and pretty much always wrote what he wanted to write. This stubbornness was shown through his characters Captain Veere in Billy Budd and Bartleby in the story "Bartleby the Scrivener." Melville was also passively resistant and he shows this through his characters Billy Budd and Bartleby. Herman Melville portrayed himself in his writing by giving personality traits to his literary characters that were similar to the ones he himself possessed. Melville had a strong desire to reveal the complexities of human life, so mystery was often a trait of his characters. An example of this would be his character Bartleby. Throughout the story, the reader has no clue what Bartleby is thinking, so Melville creates an air of mystery about this character. Another of Melville’s characters that show this quality is Claggart in the book Billy Budd. Claggart is constantly referred to as being mysterious, "†¦a nut not to be cracked by the top of a ladies fan (Billy Budd). Besides being mysterious, Melville is stubborn and this comes out through his characters Captain Veere and Bartleby. Like most writers, Melville’s career had its ups and downs, and his work was not always praised. Even though readers didn’t always appreciate his writing or writing style, he continued to write the books that he wanted to write. He quotes "What I feel most moved to write, that is banned- it will not pay, yet, altogether write the other way I cannot."(P. 8 Cliffs). The author shows his stubbornness through the character of Bartleby. To every request directed at him he replies, "I’d prefer not to", which suggests the authors own obstinacy. Another of Herman’s characters that has a stubborn nature is captain Veere. He does not let his own feelings of those of the crew interfere with the strict facts of the case, which eventually resulted in Billy’s death. He remains stubborn with his decision and makes no exceptio ns in any case. Another personality trait Melville portrays in his writing is passive resistance. By Melville not changing his writing style to please society he is passively resisting.

Human Trafficking in Houston Essay

Texans and Americans alike need to be aware of ongoing human slavery that tarnished the I-10 freeway and they need to know how they can stop the plague of Human Trafficking on Houston Texas. This past January, President Barack Obama recognized Human Trafficking Awareness month. In a published statement the President said he wanted to, â€Å"recognize the people, organizations and government entities that are working to combat human trafficking,† and â€Å"recommit to bringing an end to this inexcusable human rights abuse.† According to the U.S. Department of Justice human trafficking is one of the fastest growing criminal industries, with 14,500-17,500 individuals trafficked in the United States each year and 800,000 globally. With a number of contributing factors, including a diverse immigrant population and major roads for domestic and international travel, Houston is a hotspot for human trafficking in the U.S. According to Religion Link, â€Å"Nongovernmental organi zations and nonprofits are now enlisting the aid of religious groups in the fight against human trafficking.† In Houston, organizations like the YMCA, the Houston Rescue and Restore Coalition, Free the Captives and Redeemed Ministries are all part of an entrenched alliance of non-profits, both secular and religious, fighting human trafficking in Houston. Constance Rossiter of the YMCA said, â€Å"These partnerships with religious organizations and other non-profits are essential to combatting human trafficking.† â€Å"There are many levels, it’s like a puzzle,† she said, â€Å"fighting human trafficking takes a community of partners including non-profits, churches, synagogues and law enforcement.† Each entity has its role to play, whether it be prevention, lobbying for legislation, advocation, awareness or enforcement, said Rossiter. Free the Captives, a Houston based Christian non-profit, does it all. Having long been involved in education and counseling for at-risk teenagers and potential pimps, Free the Captives is also active in trying to go after suppliers an d buyers in the human trafficking market. Working with attorneys, Free the Captives seeks to shut down trafficking locations by using nuisance abatement laws and other tactics. Taking the fight one step further, the organization recently began lobbying the Houston mayor’s office and local and federal law enforcement to focus on the demand side of the trafficking trade. Calling it the â€Å"Reduce the Demand Campaign,† the non-profit believes it is the primary solution in ending human trafficking. â€Å"To make an impact on domestic sex trafficking you have to go after the buyers,† said a representative from Free the Captives, whose identity is protected due to recent threats made by traffickers. â€Å"It does not matter how many pimps and landlords there are if the buyers are still willing to pay and there is money to be made,† said the anonymous source, â€Å"other pimps and landlords will pop up. You can’t stem the tide without going after the source.† For their part, the Mayor’s Office and the Houston Police Department believe that human trafficking is a major problem and are sincere in enforcing existing laws. In a letter from 2010, Mayor Annise Parker acknowledged the growing problem and said, â€Å"Houston is a hub for Human Trafficking where approximately twenty percent of all human trafficking victims will pass through our city at some point of their enslavement.† The Mayor’s Office recently reiterated the importance of fighting human trafficking and in a response to Free the Captives said, â€Å"Controlling sex trafficking remains of great concern. The governmental focus on landlords and illegal business has brought results. In the last year and a half the Houston Police Department has recovered 73 juveniles, arrested 21 pimps and two â€Å"Johns,† or buyers,† said Lieutenant Andy Lahaye. To do more the police are training their patrol offices to identify trafficking situations and be able to respond or pass on a tip for the vice department to investigate. However, Lahaye commented that it is difficult to go after the buyers and said, â€Å"It’s an underground world, we can’t just put an undercover officer out there as a decoy to catch a ‘John.’† â€Å"It’s all very subsurface, so we are going after what is out there for us to see, even though we want to cut it off at the source. That’s the struggle we are battling.† Free the Captives continues to demand the focus be shifted to the buyers. Although, many of the domestic victims in the world are not being pimped out in spaces that need landlords. While the mayor and law enforcement focuses on landlords they are almost entirely missing vulnerable American teens in private locales. They remain in bondage. Prevention is a key component to the fight against human trafficking and more organizations, not just faith based organizations like Free the Captives, need to focus their energies on prevention and curbing the supply of victims being exploited. In addition to existing enforcement the lobbying efforts of everyday citizens are paying dividends. While there are some great efforts to end human trafficking in Houston, organizations cannot function without active members. There is always something to help with.

Amnesty for Illegal Immigrants Essay

The United States of America was founded and built by hardworking and innovative immigrants. Immigrants, whether legal or illegal, perform most of the dirty and arduous jobs that many native-born Americans are unwilling to perform. They are hardworking and taxpaying individuals that positively impact our economy and our communities. Many immigrants, especially illegal immigrants (those who enter the United States illegally or without proper documentation) work long hours and for little pay. There are over 12 million illegal immigrants in the United States who deserve a chance to have a good job, earn citizenship and become a legal member of American society. According to the Organization for U.S. Immigration Support, amnesty can be defined as â€Å"the government’s pardon for violating policies relating to immigration or politics† (Amnesty for Illegal Immigration 1). The federal government forgives these individuals for using false documentations to more easily get employment in the United States and be able to remain in the country. Amnesties allow illegal immigrants or undocumented workers to gain permanent residency in the United States. In 1986, the United States granted its first amnesty to millions of illegal immigrants, allowing them to receive a Green Card which could lead to the attainment of United States citizenship. Granting amnesty to illegal immigrants is beneficial to the United States because it will bolster the U.S. economy, increase tax revenues, and allow millions of people to attain the American dream of homeownership and education, thus benefiting American society. For these reasons, all illegal immigrants should be granted amnesty. Illegal immigrants are beneficial to the United States economy. They perform the necessary high labor and menial jobs that many native-born Americans are unwilling to do. According to the March 6th 2007 issue of Conservative Politics: U.S. , President George W. Bush was quoted as saying, â€Å"There are people doing jobs Americans will not do. Many people who have come into our country are helping our economy grow. That is just a fact of life† (Illegal Aliens: Helpful or Harmful to America? 1). Increasingly fewer educated, native-born American workers are unwilling or unable to perform the strenuous jobs that don’t even require a high school diploma†¦but immigrants are. According to an immigration policy brief written by Rob Paral of the American Immigration Law Foundation, it is evident that immigrants come here  to fill available jobs by the â€Å"fact that, as of 2005, 94% of adult male undocumented immigrants and 86% of adult male legal immigrants were in th e labor force. Immigrants are already an integral part of U.S. society and an indispensable part of the U.S. labor force† (Paral 1). Illegal immigrants also contribute to the United States economy by purchasing American goods and services. They purchase houses, automobiles, as well as, patronize the local supermarkets and Mom and Pop stores. Francine Lipman of the Chapman University, School of Law strongly believes that â€Å"undocumented immigrants contribute to the U.S. economy through their investments and consumption of goods and services; filling of millions of essential worker positions resulting in subsidiary job creation, increased productivity and lower costs of goods and services† (Lipman 1). Lower consumer prices are one of the many contributions that immigrants make to our economy. Annually, illegal immigrants contribute at least 300 billion dollars to the U.S. gross national product (Immigrant Workers: Making Valuable Contributions to Our Communities and Our Economy 1). Even though there are critics who are adamantly against granting amnesty to illegal immigrants, a survey conducted by the Social Science Research Network concluded that 85% of prominent economists felt that illegal immigrants have had a positive impact on the United States economy (Lipman 1). Granting amnesty to illegal immigrants will increase United States tax revenues. Amnesty will provide illegal immigrants with a tax identification number or a social security number. Thus allowing over 12 million non-U.S. citizens who are living and working illegally in the United States to file taxes and prove their economic contribution, as well as, document their residence. Amnesty allows illegal immigrants to file their taxes without fear of being deported, in turn more people will file their taxes, thus increasing tax revenues. The Center for Immigration Studies estimates show â€Å"that amnesty would significantly increase tax revenues. Because both their income and tax compliance would rise, we estimate that under the most likely scenario the average illegal alien household would pay 77% ($3,200.00) more a year in federal taxes once legalized; therefore, amnesty would significantly increase both the average income and tax payments of illegal immigrants† (The High Cost o f Cheap Labor 1). Everyone who works in the  United States is required to pay taxes. On average illegal immigrants pay about $4,200.00 in federal taxes. Almost half of this tax revenue goes directly to Social Security and Medicare (Illegal Aliens: Helpful or Harmful to America? 1). Despite America’s strong history of opposing taxation without representation, undocumented immigrants are required to pay taxes, but do not have a voice in American society. They don’t have the right to vote at any level, be it local, state or federal. Nonetheless, every year illegal immigrants contribute billions of dollars in property, sales, excise, income and payroll taxes to federal, state and local funds. According to a paper written by Francine Lipman entitled, â€Å"Taxing Undocumented Immigrants: Separate, Unequal and Without Representation†, she states that â€Å"undocumented [workers] actually contribute more to public coffers in taxes than they cost in social services. They also make unrequited contributions to Social Security, Medicare, and unemployment insurance programs† (Lipman 1). Hundreds of thousands of illegal immigrants file federal and state income tax returns each year even though they are barred from receiving all government benefits including Food Stamps, Medicaid, Federal Housing, Unemployment Insurance, Social Security and the Earned Income Tax Credit. This is a clear example of taxation without representation. Granting amnesty to illegal immigrants would fix this social injustice in America, as well as, bolster the United States tax revenues because once legalized, illegal immigrants will be paying more money annually in federal taxes. If illegal immigrants are granted amnesty then millions of hardworking people would finally be able to attain the American dream, thus benefiting themselves and American society. Amnesty will allow illegal immigrants to purchase property and homes. As a result, communities will be revitalized. Illegal immigrants would be able to set down their roots and integrate into American society. According to an article written by Sue Kirchhoff, entitled, â€Å"Immigrants Chase American Dream†, an estimated â€Å"8 million to 10 million foreign born people are in the United States illegally, lacking documents to get a mortgage† (Kirchhoff 3). Granting amnesty to illegal immigrants would alleviate this problem because they would be able to purchase homes which would keep the American housing market strong, which in  turn leads to a healthy economy. Illegal immigrants are an increasingly important factor in the American housing market because by the purchasing of homes they are revitalizing inner cities, changing the appearance of suburbs and prompting subtle changes in home design, therefore, many economists believe that the United States housing market will remain strong as a result of the elevated rates of both legal and illegal immigration in the country (Kirchhoff 1). Amnesty will allow illegal immigrants to seek and attain higher education which will ultimately have a favorable impact on the United States. According to a study by Keith Maskus, an economist at the University of Colorado, and Aaditya Mattoo, a lead economist at the World Bank’s Development Economics Group, â€Å"foreign students, skilled immigrants and doctorates in science and engineering play a major role in driving scientific innovation in the United States. Their research found that for every 100 international students who receive science or engineering PhD’s from American universities, the nation gains 62 future patent applications† (Anderson 3). Education plays a crucial role in producing successful and productive citizens. There is evidence that suggests that through education immigrants improve their lives and that of their children and have very little negative impact on the nation. According to an article entitled, â€Å"Immigration Issues in the United States† in the March 1st 2004 edition of Eriposte â€Å"as immigrants leave school and become productive workers, they repay most or all of the cost of those services that they have received in the form of taxes† (Immigration Issues in the United States 3). Providing illegal immigrants with the opportunity to seek higher education is also a solution for ending poverty and foreign aid. In a June 19th 2006 open letter on immigration written by David J. Theroux and addressed to President George W. Bush, the author states that â€Å"immigration is the greatest anti-poverty program ever devised. The American dream is a reality for many immigrants who not only increase their own living standards, but who also send billions of dollars of their money back to their families in their home countries-a form of truly effective foreign aid† (Theroux 1). Immigrants, both legal and illegal, add diversity and a fresh perspective to the American business market, therefore, by granting amnesty to illegal immigrants we are  encouraging them to improve their education and skills in order to provide the United States with a more competitive labor force. In the end, amnesty favors both the nation and the illegal immigrants. The United States would positively benefit from granting amnesty to millions of illegal immigrants because of the increased economic, tax and societal benefits amnesty would bring. Immigrants, both legal and illegal, contribute their skills, innovation, capital, and culture to the American economy. They have become an indispensable asset to America, both culturally and economically. The aspiration of attaining the American dream is what inspires illegal immigrants to come to America; therefore, it is unfair to hinder or deny them in their pursuit of happiness and prosperity. After all, our country was founded and built by the sweat and hard work of immigrants, both legal and illegal. Ultimately, granting amnesty to illegal immigrants benefits both America, its people and society. 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