The Birlings and Gerald Essay Example for Free

The Birlings and Gerald Essay An Inspector Calls is located in the made up city of Brumley in 1912 when business in Britain was doing well. The play concentrates on a wealthy industrial family called the Birlings who are holding a dinner party to celebrate the engagement of their daughter Sheila to Gerald Croft, the son of a wealthy businessman. The party is going rather well until it is interrupted by a man claiming to be an Inspector who is investigating the suicide of a young working class women called Eva Smith who later goes by the name of Daisy Renton. He questions all of the Birlings and Gerald Croft and then exits rather abruptly leaving the question of who is responsible for the death of this girl. The Birlings and Gerald find the Inspectors behaviour rather peculiar and begin to suspect he was not genuine. They investigate their theory and find that there is no girl in mortuary who has committed suicide. This news delights Mr. and Mrs. Birling and they look back at the evening with laughter for them all being so naive to have been taken in by a man claiming to be an inspector. The celebrations are short lived though as the phone rings and they hear that a girl has just died on the way to the infirmary and a police inspector is coming round to question them. This ends the play and leaves the imagination of the audience to decide who is responsible for Eva Smiths suicide, if it is in fact Eva Smith who has just died. Mr. Birling is a successful factory owner, ex-Lord Mayor of Brumley and a local magistrate. He is blind to the concerns of his workers, his own actions and the world outside of Britain. He is obsessed with himself and his search to make more money, he says that industry is prospering and cant see why anyone would wont to interrupt it by starting a War. He does not take into account that other people might value different things more highly than money. The only thing he worries about when he finds that someone has died is that whether he will loose the chance of his knighthood and that a public scandal might occur. Mrs. Birling is very arrogant, judging people by their social position. She expects others below her social class to naturally respect her and never to question her opinion. She is generally unaware of what is going on around her and deliberately blind to what she does not wish to see. When she finds that Eva Smith committed suicide Mrs. Birling cannot see how it has anything to do with her as Eva is lower class. Mrs. Birling feels that the lower classs are totally different breed of animal from her own class. Eric is the youngest of the group. He is a drunk, robber and a humiliation. In the eyes of his father he is a failure, as he will never make as much money as his father has done which is the only important thing to his father. Eric particularly disagrees with his father over the reason for not giving workers more money. Mr. Birling points out that the reason why Eric thinks workers should average more than 22 and 6 a week is why he is not commanding the Birling empire. Eric finds his father distant and particularly heartless. Gerald is a businessman and a member of a family with higher social class than the Birlings. He is in many ways like Mr. Birling straight away trying to conceal his involvement with Eva. The difference is that Gerald unlike Mr. Birling feels remorse for what he has done. He is least to blame for Evas suicide as he genuinely made her happy for the time he knew her. Sheila is very suggestible; she respects the Inspector and does what he asks. Sheila is honest and this helps her to realize what she has done to Eva. Her parents do not like her honesty and see her as being disloyal to them. Sheila sees the gruelling interview as a learning curve and even when she finds that Inspector Goole was not a real Inspector unlike the others she still cannot let go of the guilt, which she carries for being partly responsible for Evas death. Inspector Goole is a strong persuasive man. He can also be seen as some one sent from the future to try and convince people to change before its to late. In the book it shows us that the Inspector intimidates the person he is interviewing by looking hard at the person before speaking. This tactic works to the extent that no one dares to challenge him while he is in the room.

In Defense of Elitism Essay -- essays research papers

â€Å"In Defense of Elitism† Summary   Ã‚  Ã‚  Ã‚  Ã‚  The dominant theme in this essay appears to be this: post war social changes such as offering increased university admission promote the view of egalitarianism in education. The author’s main issue with â€Å"secondary† education is the sheer numbers of our population that the United States as a whole educates. According to Mr. Henry, the United States educates nearly thirty percent of high school graduates who go on to a four year bachelor’s degree. He believes that the increased number of graduates has led to a workforce of mediocrity. In the author’s comparison to other leading countries, the United States has academic standards and achievement requirements which do not directly insure that this nation’s youth are job ready with a four year degree. Mr. Henry’s theory states that the United States as a whole needs to restrict college admissions to only half of those who would seek degrees. In the essay, the author is of the opinion that by reducing the number of degree seeking students, a nation can improve quality and the value of a college education. To decrease the quantity of students would in the long run increase the quality of education. The author sees the necessity of restricting higher education to include only those who have demonstrated at an early age in the educational process the ability and ambition to pursue a higher education. In his opinion, following this process would allow only the more intelligent or ambitious of students into college, therefore assuring a competent post graduation workforce. Would severely limiting admission achieve the steep goals the author believes it will? Mr. Henry states that in order for the job market to sustain ample job opportunities for university graduates, those chosen should meet strict educational standards early in the education process. Without these measures, he believes, the American education system will continue to degrade as everyone will become equal, with none terrible and more importantly, none great. Mr. Henry asserts his belief that in a watered down workplace, complacency is only eclipsed by averageness. For an individual to progress and excel through college, it takes a certain measure of drive to achieve the necessary academic quality. This drive requires its recipient to work harder and achieve better grades, more income... ...ity of a four year education; those restrictions would also deny the opportunity of higher education to many who could achieve even greater success than those who had been chosen. Throughout history, there are stories of ordinary individuals who rose up to live extraordinary lives. To not allow someone the opportunity to achieve their potential would serve not only to separate the classes farther, it would also cause the stagnation of our economy. Jobs would be easier for the chosen educated, as there would be less competition. The truth is, it is that very competition that pushes every sector of our economy, driving companies to make better products or offer better services. Without competition, industries quit moving forward and better products don’t get engineered. It is clear to me that returning our education system to one in which only the chosen few were admitted would actually cause far more damage to society than the danger the author speaks about. If someone choo ses to take the necessary steps to achieve greatness, no one should be able to hinder them except themselves. Work Sited Page Henry. William A â€Å"In Defense of Elitism† NMR, 171-175 Prentice Hall, NJ In Defense of Elitism Essay -- essays research papers â€Å"In Defense of Elitism† Summary   Ã‚  Ã‚  Ã‚  Ã‚  The dominant theme in this essay appears to be this: post war social changes such as offering increased university admission promote the view of egalitarianism in education. The author’s main issue with â€Å"secondary† education is the sheer numbers of our population that the United States as a whole educates. According to Mr. Henry, the United States educates nearly thirty percent of high school graduates who go on to a four year bachelor’s degree. He believes that the increased number of graduates has led to a workforce of mediocrity. In the author’s comparison to other leading countries, the United States has academic standards and achievement requirements which do not directly insure that this nation’s youth are job ready with a four year degree. Mr. Henry’s theory states that the United States as a whole needs to restrict college admissions to only half of those who would seek degrees. In the essay, the author is of the opinion that by reducing the number of degree seeking students, a nation can improve quality and the value of a college education. To decrease the quantity of students would in the long run increase the quality of education. The author sees the necessity of restricting higher education to include only those who have demonstrated at an early age in the educational process the ability and ambition to pursue a higher education. In his opinion, following this process would allow only the more intelligent or ambitious of students into college, therefore assuring a competent post graduation workforce. Would severely limiting admission achieve the steep goals the author believes it will? Mr. Henry states that in order for the job market to sustain ample job opportunities for university graduates, those chosen should meet strict educational standards early in the education process. Without these measures, he believes, the American education system will continue to degrade as everyone will become equal, with none terrible and more importantly, none great. Mr. Henry asserts his belief that in a watered down workplace, complacency is only eclipsed by averageness. For an individual to progress and excel through college, it takes a certain measure of drive to achieve the necessary academic quality. This drive requires its recipient to work harder and achieve better grades, more income... ...ity of a four year education; those restrictions would also deny the opportunity of higher education to many who could achieve even greater success than those who had been chosen. Throughout history, there are stories of ordinary individuals who rose up to live extraordinary lives. To not allow someone the opportunity to achieve their potential would serve not only to separate the classes farther, it would also cause the stagnation of our economy. Jobs would be easier for the chosen educated, as there would be less competition. The truth is, it is that very competition that pushes every sector of our economy, driving companies to make better products or offer better services. Without competition, industries quit moving forward and better products don’t get engineered. It is clear to me that returning our education system to one in which only the chosen few were admitted would actually cause far more damage to society than the danger the author speaks about. If someone choo ses to take the necessary steps to achieve greatness, no one should be able to hinder them except themselves. Work Sited Page Henry. William A â€Å"In Defense of Elitism† NMR, 171-175 Prentice Hall, NJ

Managerial Competencies Essay

Question 1. List the three managerial competencies that have led to your success so far in your job. List your strength and, for each strength listed, determine how that strength might get you into trouble and why is it so difficult to become and effective middle manager? Answer Managerial competencies is defined as sets of knowledge, skills, behaviours, and attitudes that a manager needs in order to be effective in a wide range of managerial jobs and various organizational setting. There were six core important specific competencies: the communication, planning and administration, teamwork, strategic action, multicultural, and self competencies. Managerial competencies is useful to me, a current manager of business plan and reporting for Retail Product division in Telekom Malaysia Bhd, also would be useful after my promotion to Assistant General Manager of Business Finance for Technology and Innovation division of Telekom Malaysia Bhd. The competencies will help me to excel on designated job, improve self-management and communication within organisation unit, better planning and administration of teamwork and more sensitive about changing of subordinate behaviour and environment surround them. Three managerial competencies that have led to my success in a job are: a)Communication competencies, b)Planning and Administration competencies, and c)Teamwork competencies. 1.Communication Competencies A communication competency is your ability to effectively transfer and exchange information that leads to understanding between yourself and others. It includes: †¢Informal communication, †¢Formal communication, and †¢Negotiation In 2010, I was given responsibility to improvise Telekom Malaysia Group Segmental Reporting through high accuracy identification of cost drivers for Customer Subscriber’s Equipment (CPEs), Revenue Sharing Out payment, Leased Routers and Product Licensing. It requires a new cost transfer process  between Retail Product to respective Line of Business (LOBs) divisions where involves inter-department cooperation and collaboration to achieve this goals. Further, it requires me to build good working relationship with LOBs in order to be successful. I began by initiating informal communication with various divisions such as Information Technology and Network Infrastructure (ITNT), Service Management and Demand Forecast (SPDF), Group Costing, various LOBs and respective product owner within Retail Product to obtain their views and resources capabilities if the implementation takes place. I realized it is not a straightforward process because it requires a lot of effort to identify allocation drivers to each LOBs segments, limited access to the information and data available is not derived from one single place. In order to overcome these issues, together with my team, we have established strong collaboration between all divisions and communicate with them from time to time to understand problems, ways to minimize the difficulties and setting up moving forward plan and process flow. It takes a lot of negotiation with respective division especially in term of cut off time to provide the data and eligible of drivers that will be used for allocation purposes. Some negotiations with information providers do not take long but there few requires continuous negotiation until the processes are fully stable and ready for service. Once a process flow had been completely implemented and applied by all division, I then started to communicate formally with all TM Group and ready to start the process to improvise Group Segmental Reporting. Meantime, I have received a very positive feedback from Group and all divisions that this exercise really helps them to improvise better profitability as well. 2.Planning and Administration competencies Planning and administration competency involves deciding what tasks need to be done, determine how they can be done, allocating resources to enable them to be done, and then monitoring progress to ensure that they are done. This competency includes: †¢Information gathering, analysis and problem solving; †¢Planning and organising projects; †¢Time management; and †¢Budgeting and financial management We were once facing a challenge from top management to execute 100% 2011 Key Performance Indexes (KPI) for asset tagging achievement by taking consideration a full completion of tagging exercise for assets acquired prior 2006, 2007 – 2009 and 2010. The majority of assets were classified as routers which many of them already been deployed at customer’s premises, lost or not at working condition. This is one of the toughest job to be delivered in 2011 due to in complete information for old assets, problem to identify lost assets and require a high support from vendor whom previously perform installation at customers’ premises and from other division such as Customer Service Operation (CSOC) team. By October 2011, we are only managed to achieved 69% out of 1,821 assets that need to be tag and this situation really give us high pressure since we running out of time and got 3 more months only to complete the remaining of the assets. Further, it has potential Net Book Value (NBV) impact of RM4.5 Mil if the activities was not planned and administered properly. This situation also require Retail Product Finance team to gather all necessary information from various unit, analyzing a result, identify ways to solve a problems within a given timeframe. I took immediate action by putting strategic plan with respective assets owner and design the most achievable timeframe for everyone to follow. My team had table out the proposal to Vice President and Head of Department (HOD) during our weekly management meeting and action had been taken immediately soon as everyone agreed. I started to execute a plan together with my team and assets owner by classifying assets group with potentially not found, not working condition, can be found and available at customer’s premises. Each group of the assets was tackled by different kind of approach and we are monitoring a progress from time to time until end of the process. My team will update the status of assets on weekly basis and report was produced to respective HOD for their immediate attention and action. Any unresolved issues were brought up and thorough checking was performing for each of the issues. Meantime, we are also monitoring the financial impact and ensure asset retirement and depreciation was performed timely. Our hard work and tremendous effort was worthwhile for Retail Product where by December 2011 we managed to achieve 100% asset tagging KPI and manage to recognize RM4.5 Mil NBV in a book. 3.Teamwork competencies A teamwork competency is accomplishing tasks through small groups of people who are collectively responsible and whose job requires coordination. Teamwork competency can become more effective by: †¢Designing teams properly; †¢Creating a supportive team environment, and †¢Managing team dynamics appropriately I have realized that in the past 2 years both Retail Product and Global have been using unreliable forecast driver as a mechanism to allocate International Bandwidth cost among each other. By using forecast drivers, I have difficulties to convince LOBs about cost that should be taken up by Retail business and to ascertain the drivers that being used as allocation basis to them are proper or not. I have approached Bandwidth management team and Global Data Management (GDM) team to relook this matter again and find ways to allocate cost at high accuracy and efficiently rather than using forecast as a basis throughout a year. Realized that this implementation requires strong and high commitment team, I have approached my team member and we have started to initiate several discussions with Costing, GDM, and Bandwidth management team including product owners. We also communicated to LOBs and Group Finance to support us on our mission to change the driver process. Initially, we have difficulties to convince Global Finance about the important of using appropriate drivers and cost allocation since they have been performing the same method for several years already. They were afraid the changes may impact a lot in in their Financial book, require additional tasks and resources. In order to overcome this ambiguity, in the past few months, we have been brief about the existence of new system called ABOR resided at network which able to track bandwidth usage up to service offerings and thus, using this opportunity, we managed to convince Global Finance to start making changes. Further, our management have empowered us to take actions based on the best judgement without always seeking approval from them. We were also been promised by management that the successful of this project will add to our KPI. Finally, with a great support and commitment, both RP and Global have come to consensus about methodology and approach to deliver cost allocation with better cost drivers’ analysis and everyone seems able to accept the new way of doing things. Strengths and challenge to achieve affective middle manager Based on the above 3 competencies, I believe that I possess the following strengths that able to help on self development and assist a company towards achieving strategic goal and objectives. a)Relation-oriented and Change-oriented leadership behaviour; b)Value Innovation and Change; and c)Excellence Relationship. 1.Relation-oriented and Change-oriented leadership behaviour I believe that I possess a relation-oriented behaviour especially on providing a support and encourage my team member when perform difficult task, providing coaching and mentoring, finding time to listen to my subordinate and willing to accept suggestion from subordinates and peers. In change-oriented leadership, I have shown to management that I am able to understand the need to adapt the change of environment, implementing a major change in strategies and encourage and facilitate efforts to implement major change. A challenge to practice this strength in current middle manager position is that top managers such as Vice President and Executive Vice President might sometime have difficulties to accept the new strategies and ways of doing things because they are already complacent with current method and not willing to take a risk with the new approach. Thus, even though my subordinates have a very high motivation to perform the new methodologies but without a strong support and encouragement by top managers may sometime lead to frustration. 2.Value Innovation and Change I am always encourages my subordinates and peers to seek opportunities for different and innovative approaches to address problems and opportunities in Telekom Malaysia and facilitates the implementation and acceptance of change within the workplace. I am also able to identify and drives changes needed to adapt strategically to changing of management and internal initiatives, catalyzes new approaches to improve results by changing organizational culture, systems, or products/services. In other occasion, each year we encountered a problem to rationalize our Business Plan number with Information Technology and Network Technology (ITNT) unit because there was  no specific platform being given by TM management that we can discuss and agree among each other during Business Plan exercise period. The outcome is mush worsen when a project start to kick off because somehow part of a project cost neither budgeted at our unit nor ITNT. A lot of staff complaining about this situation and something need to be done to improve the situation. Upon realizing the important of this issues, together with my superior and peers, we started to put up proper plan and drive communication with ITNT during 2011 Business Plan exercise. I have initiated a first discussion with ITNT team where comprehensive rationalization exercises have been carried out several times after that. I have appointed one of my subordinate to compile and execute all information so that both our unit and ITNT can share each other, detail assurance where a cost should be resided was taken into high consideration and the demarcation of project owner was fully identified. No doubt, though we have some problems with a few product owners who resistance to accept this new way of exercise due to time consuming and a lot of pressure was putting back to them, we are constantly persuade them about the important and benefit of the outcome from this newly added exercise. Though Group Finance had provided the platform at a very last minute during BP exercise period, both our unit and ITNT have a very minimal issues and problem to bring up since we have rationalized our number prior to that. At the end of a period, objectives have been fully achieved and ultimately have mutual understanding and co-operate each other with minimum discrepancies. 3.Excellence Relationship I have a capability to initiates and maintains strategic and trusting relationships with stakeholders inside and outside the organization (e.g. TM colleagues, government bodies, regulators, industry players, technology partners, investors, media, customers and alliance partners) to advance business goals. My team members were given responsibility to improvise Group Segmental Reporting through identification of proper cost drivers for Subscriber’s Equipment (CPEs), Revenue Sharing Outpayment, Routers Leasing and Product Licensing. It requires a new cost transfer process and my team felt difficulties to implement due to complication on obtaining the drivers, too manual and limited resources. I have initiated the discussion with various parties like GEMS, IT – Data Warehouse, Service Planning and Demand  Forecast Unit (SPDF) and Retail Product division about possibility to obtain the drivers and identify a method to do it. In order to reduce the difficulties among my team member, I worked with them to identify a methodology to access the information, type of template to extract the data and setting up the deadline to accomplish a job on monthly basis. I always discussed with my team about problems to perform this job and how to overcome such incidents. I told my team members that their effort and contribution towards achieving this goal is very valuable and helps to improvise TM’s reporting. We are started to establish good relationship with data provider parties such as IT, SPDF and product owners so that the analysis can be carried out on monthly basis. My team members successfully implement the new tasks and help to improvise Group Segment Reporting. We have received a positive feedback from various parties in Group Finance and Line of Business (LOBs) since the cost transfer exercise really helps them to establish better profitability Unfortunately, a great challenge that I have to face when putting through this concept in work division is a reluctant from management to accept the changes as every division seems more comfortable to work within their own division rather than to accept changes from outsiders.

Conventional Accounting Essay

Conventional accounting may not be suitable for environment and social applications. When company’s economic benefits are at odds with environmental and social benefits, conventional accounting concentrates only on the enterprises’ benefits and does not pay attention to the natural environment and human society. (Hooper et al., 2008). Conventional accounting merely presents the information about enterprise’s financial position and performance so as to meets the objective of shareholders and investors. Such approach does not satisfy other stakeholders’ interests and information needs (Dana, 2008). Conventional accounting often treats the environmental impacts from business activities as externalities, such as the pollution of industrial emissions. It will not disclose the information about environmental damages and social costs of pollution, only if the environmental impacts lead to penalties or the cost of cleanup (Stefan and Roger, 2000). In order to improve enterprise’s profitability, conventional accounting suggests managers to use machinery or technology instead of labor force, which result in some negative impacts on society. High unemployment often causes a decrease in quality of life and a rise of crime rate, and also may bring about interpersonal conflicts in company (John, 2009). Conventional accounting usually ignores these costs of unemployment in the account of company. However, conventional accounting may be applicable to environmental and social issues, when the costs of business activities are redefined by containing their environmental and social costs. Such as the activities’ costs is to the enterprise instead of environment or society. This reclassification can help enterprises to decrease the costs of environment and society and thus improve enterprises’ environmental and social performance.

Nietzche essays

Nietzche essays At approximately ten oclock a.m. on October 15, 1844, not only a human being was born, but also a foundation was laid for future revolutions in the ways of philosophy and interpretation of human thought. Nietzsche was a German philosopher of the late 19th century who challenged the foundations of traditional morality and Christianity. He believed in life, creativity, health, and the realities of the world we live in, rather than those situated in a world beyond. Central to Nietzsches philosophy is the idea of life-affirmation, which involves an honest questioning of all doctrines that drain lifes energies, however socially prevalent those views might be. Often referred to as one of the first existentialist philosophers, Nietzsche has inspired leading figures in all walks of life. Friedrich Wilhelm Nietzsche was born to Lutheran pastor Karl Ludwig Nietzsche in the small town of Rocken, Prussia. Nietzsches grandfathers were also Lutheran ministers, and his paternal grandfather was further distinguished as a Protestant scholar, one of whose books (1796) affirmed the everlasting survival of Christianity (Wicks, 1997). His father died when he was just five years old and the death of his brother soon followed. In his adolescent years he attended a boarding school where he prepared for his studies at the university. Nietzsche entered the University of Bonn in 1864 as a theology and philology student. Soon after being influenced by Friedrich Wilhelm Ritschl, Nietzsche transferred to the University of Leipzig in 1865. Momentous for Nietzsche in 1865 was his accidental discovery of Arthur Schopenhauers The World as Will and Representation in a local bookstore. Schopenhauers atheistic and turbulent vision of the world, in conjunction with his highest praise o f music as an art form, captured Nietzsches imagination, and the extent to which th...

The Border States of the Civil War

The Border States of the Civil War Border states was the term applied to a set of states which fell along the border between North and South during the Civil War. They were distinctive not merely for their geographical placement, but also because they had remained loyal to the Union even though slavery was legal within their borders. Another characteristic of a border state would be that a considerable anti-slavery element was present within the state which meant that, while the economy of the state would not have been heavily tied to the institution of slavery, the population of the state could present thorny political problems for the Lincoln administration. The border states are generally considered to have been Maryland, Delaware, Kentucky, and Missouri. By some reckonings, Virginia was considered to have been a border state although it did eventually secede from the Union to become part of the Confederacy. However, part of Virginia split away during the war to become the new state of West Virginia, which could then be considered a fifth border state. Political Difficulties and the Border States The border states posed particular political problems for President Abraham Lincoln as he tried to guide the nation during the Civil War. He often felt the need to move with caution on the issue of slavery, so as not to offend the citizens of the border states and that tended to annoy Lincolns own supporters in the North. The situation greatly feared by Lincoln, of course, was that being too aggressive in dealing with the issue of slavery might lead the pro-slavery elements in the border states to rebel and join the Confederacy which could be disastrous. If the border states joined the other slave  states in rebelling against the Union, it would have given the rebel army more manpower as well as more industrial capacity. Furthermore, if the state of Maryland joined the Confederacy, the national capital, Washington, D.C., would be put in the untenable position of being surrounded by states in armed rebellion to the government. Lincoln’s political skills managed to keep the border states within the Union, but he was often criticized for actions he took that some in the North interpreted as appeasement of border state slave owners. In the summer of 1862, for instance, he was condemned by many in the North for telling a group of African American visitors to the White House about a plan to send free blacks to colonies in Africa. When prodded by Horace Greeley, the legendary editor of the New York Tribune, to move faster to free slaves 1862, Lincoln responded with a famous and deeply controversial letter. The most prominent example of Lincoln paying heed to the particular circumstances of the border states would be in the Emancipation Proclamation, which stated that slaves in states in rebellion would be freed. Its notable that the slaves in the border states, and thereby part of the Union, were not set free by the proclamation. The ostensible reason for Lincoln excluding the slaves in the border states from the Emancipation Proclamation was that the proclamation was a wartime executive action and thus only applied to the slave states in rebellion- but it also avoided the issue of freeing slaves in border states which could, perhaps, have led some of the states to rebel and join the Confederacy.

Explanation of the graphics figures upon budget Assignment

Explanation of the graphics figures upon budget - Assignment Example The budget line implies that if Susan spent all her income on clothing she would be able to purchase OB units of it. If on the other hand, Susan spent all her income on food, she would be able to purchase OA units of food. If she allocates her income on both goods then all combinations of food and clothing she can attain are those on or within the line AB. Thus the triangle OAB defines the combinations of food and clothing attainable by Susan, given her income and the prices of food and clothing. Assuming that Susan is rational, and the law of diminishing marginal utility holds for both goods, and she has continuous and complete preferences, her preferences can be depicted by downward sloping convex indifference curves. Susan’s objective is to attain the highest possible indifference curve within the reach of her budget set. This is shown in figure 2. Figure 2: the utility maximising choice in Adelaide As shown above in figure 2, given her budget constraint, Susan’s utility maximizing choice in Adelaide is point E. She consumes OC of food and OD of clothing and this generates the level of utility denoted by the indifference curve IC1. Linda is aware that in Melbourne the prices of both goods are higher and that food is relatively more expensive than clothing compared to the situation in Adelaide. Therefore, with her present income (that she earns by working in Adelaide) Susan will be able to by lesser of both food and clothing. Additionally, because food is rela tively more expensive, not only she will be able to buy less of food if she invests all her income in food compared to the amount of food she would be able to buy in Adelaide, the reduction in the amount of food she can buy will be more than the reduction in the amount of clothing she will be able to buy. What this implies is that i) her budget line will shrink inwards and ii) it will be relatively more flat compared to her budget line in Adelaide. This is depicted in figure 3. Figure 3: FG - Susan's budget line in Melbourne if her income remains equal to her Adelaide income In the diagram above, FG is Susan’s budget line in Melbourne if her income remains unchanged. Observe that not only can she buy fewer amounts of either products, the reduction in her capacity to purchase clothing had she chosen to invest all her income in clothing, depicted by the amount GB in the figure above, is less than the reduction in the amount of food she can buy if she invests all her income in f ood, AF. This is implied by the fact that food is relatively more expensive than clothing in Melbourne. Figure 4: Susan's new budget set relative to her old preferred bundle and utility level. Therefore, as reflected in figure 4, Susan can no longer access the utility level denoted by the indifference curve IC1 and nor can she afford the commodity bundle she preferred when she was in Adelaide. Therefore her real income will fall if she has to move to Melbourne but her income is still as it was back in Adelaide. Linda, if she has to make sure Susan accepts the offer, will have to pay her enough to ensure that her real income is at least as high as it is presently in Adelaide. There are two possible ways of achieving this. I. If Susan is paid an income so that she can purchase a commodity bundle that places her again at the utility level IC1. This implies paying her an income over her present Adelaide income that will allow her to access her old indifference curve IC1. This would be w hat is termed as the Hicksian compensation. The idea is that Susan will be back at her old real income level if she has access to her old utility level. Figure 5: The Hicksian Compensation - PQ