Finance - Hedging Strategies Assignment Example | Topics and Well Written Essays - 750 words

Finance - Hedging Strategies - Assignment Example The essence of hedging strategies is to reduce business risks while deterring the creation of additional risks. Multinational firms encounter a multitude of risks, particularly as a result of their competitive exposures across the globe. General Motors has along experienced competitive exposure due to the Japanese yen. This exposure has a lot to do with the depreciating Japanese yen. However, the company is yet to establish clear guidelines to deal with the competitive risk caused by the yen’s continued depreciation. In essence, the company’s hedging strategies do not provide lucid hedging strategy guidelines. General Motor’s treasurer and finance vice-president Eric Feldstein had to establish robust hedging strategies to counter the risk posed by the depreciating Japanese yen. General Motors was incurring substantial losses as a result of market changes with regard to the US dollar and Japanese yen (Desai & Veblen, 2006). General Motors, therefore, sought to min imize currency risk to maximize its profitability. GM established a passive policy that involved hedging half of its commercial exposures on a regional basis. This means that GM’s hedging strategy involved a clear distinction between commercial and financial exposures. GM defined its commercial exposures as cash flows related to its ongoing business, for instance, payables and receivables and its financial exposures as dividends and debt repayments. The primary purpose of GM’s overall hedging strategy was related to its foreign exchange risk management policy. This hedging strategy aimed at reducing the volatility between cash flow and earnings by hedging cash flows i.e. transaction exposures only and disregard translation (balance sheet) exposures. In addition, GM’s strategy aimed at minimizing the cost, as well as management time devoted to the management of global foreign exchange. This policy was an outcome of an internal audit, which showed that resource in vestment in active foreign exchange management had not led to substantial operation of passive benchmarks. This led to policy changes, as well as the adoption of a passive approach in place of the active one. Lastly, GM’s hedging strategy aimed at aligning the company’s foreign exchange management with GM’s operation of its automotive business (Desai & Veblen, 2006). This move reflected the assumption that financial management needs to conform to the geographic, operational footprint of GM’s overlying business. Overall, GM’s hedging strategy has effectively reduced its foreign exchange risks, enabling the company to operate efficiently in the Japanese market. JP Morgan is a US-based financial company that rolled out its business in other regions of the world. While companies establish hedging strategies to protect them from risks, particularly future risks, wrong practices can cost massive losses to a company. One such company is JP Morgan, which u sed derivatives as its primary hedging strategy resulting in losses of up to $ 2 billion. JP Morgan adopted the use of risky derivatives rather than less risky bonds used by its competitors such as Bank of America, Citigroup Inc. and Wells Fargo & Co. (Griffin & Moore, 2012). The later financial companies do not trade in credit-default swaps with regard to their indexes. However, JP Morgan accumulated massive credit-default indexes, which resulted in, price moves within the financial industry. Unlike JP Morgan, other financial industry players use

Business Strategy of Barclays Bank Kenya

Business Strategy of Barclays Bank Kenya Chapter 1: Introduction 1.1 Rationale The research will be looking at some of the core business processes within Barclays Bank Kenya and discussions on how automation has been achieved vis-Ã  -vis the hardware and software tools used to drive automation within these processes. The research will also outline the criteria for the selection of automation tools used, how these tools work together to drive automation and how process automation could be made more efficient in the future. Singh et al. (2002) observed that, the need for banks to recurrently remain relevant in a very competitive industry and to satisfy ever growing customer demands, triggered the need for an e-banking solution whose transformaton goes as far back as the 1970s. The deployment of advanced Information Technology helped reduce cost by mostly eliminating the need to build new brick and mortar structures. It also helped to ensure that customers could perform transactions such as cash withdrawal and account balance checking without necessarily stepping into a banking hall. While (Arebeyen, 2011)stated that the high level of competition in the banking sector and a need to remain competitive and relevant together with customer demands for more efficient 24hour banking services led to a need for banks to re-engineer their business processes mostly with the introduction of electronic services. He also concludes by stating how the re-engineering process, through the application of Information Syste ms significantly improved the profitability performance of the banks. Oluwatolani, Joshua and Philip (2011) reported on the impact Information Technology has had on the banking sector. How it has become a transformational tool in making the national economy for competitive and produced a new domain of economic and social partnerships. Laudon and Laudon (1991) also argue that it is impossible for managers to ignore Information Technology as they play a fundamental role in modern day organizations. They pointed out how the worlds top 500 companies have now been linked with Information Technology and how Information Technology has increasingly changed the way banks organized their corporate structures to enhance the efficiency and speed of service delivery. Banks opt for tools that are used to automate business process for various reasons. These tools enable banks to have smaller operational units that result to value-adding tasks that include complex processes like deal origination as well as activities requiring human interventions. Automating processes helps in reducing the use of paper, supporting decision making and digitizing work flow. By embracing fully the use of these tools, banks often create a substantial improvement in customer service and in productivity. In other words, these tools are cost effective and more efficient because they offer solutions that rescue back-office procedures from unnecessary errors and expenses. Therefore the objective of this research is an attempt to fill that gap in knowledge. To conduct a study and gain insight into the tools (hardware and software) that have tremendously improved the banking services within Barclays Bank Kenya, which will be used as a case study for this research. 1.2 Problem Statement The problem this research aims to solve is the inadequate availability of studies on the hardware and software tools that drive process automation within the Kenyan banking sector. This problem has led to a gap in knowledge between the need/analysis of Information Systems in the Kenyan banking sector and the impact Information Systems have had on the sector over the years. This study therefore seeks to bridge that gap by conducting a research on the tools (hardware and software) used to drive automation within Barclays Bank Kenya, the criteria for the selection of tools used, how these tools combine to form a cohesive and effective workflow of processes and how process automation could be made more efficient in the future. 1.3 Justification New generation of modern technology tools enable organizations to resolve the paradox of having to standardize their operations and business processes as a means of achieving operational excellence as well as cost leadership. They help the organizations to achieve significant goals as well as changing their operational models so that they achieve efficiency and innovations. The use of technological tools in running business processes is significant more so because the priorities of organizations are sifting and at the top of the list, most organizations are considering productivity and cost control as most crucial. The technology has helped many organizations to be more effective in their services and products delivery. Business process management utilizes digital tools as a means of creating models that lead to optimization of key business processes. Within the banking system, there are four core business processes that include; production, ad-hoc, administrative and collaborative. The core business within the banking systems are implemented to meet various business requirements such as: acquisitions or mergers by a bank, the need for more flexibility within an ever increasing competitive market as well as the regulatory changes that are inadequately handled through legacy systems. Administrative work flows entail processes that are repetitive and predictable and involves simple task coordination rules like travel request and routing an expense report via an authorization process. Ad-Hoc workflows deals with human coordination, co-decision, collaboration and mostly appear in office processes including sales proposal and product documentation. On the other hand, collaborative workflows involve several iterations of a similar step up to the time an agreement is reached and may also involve getting back to a previous stage. Lastly production workflows encompass predictable and repetitive business processes that are usually critical in nature and may include loan application. Production workflow refers to a process of information that involves access to several or one information system. Production and administrative business processes are the bureaucratic procedures that comprises of well-defined steps that are controlled through defined rules. These two processes can be described with a lot of ease by conventional modelling tools. They are automated by the use of a Workflow Management Systems. Ad-hoc processes are quite similar to administrative processes but differ in that they deal with loosely defined or unique conditions. These conditions cannot be modelled easily nor can they be supported by current Workflow Management Systems effectively. On the other hand, collaborative processes are characterized by the number of those participating as well as by the synchronization required. Collaborative processes are adequately handled by the use of groupware technology. There are various tools used to automate various processes. Theres no question about the impact Information Technology has had on banking operations and still continues to have. It is therefore important to not only study these impacts but also to look at some of the tools that have helped automate the operations of the banking sector. This research will help fill that gap in knowledge by exposing readers to how various hardware and software tools are being used to automate some of the business operations within the banking sector. 1.4 Aims and Objectives 1.4.1 Aims The aim of this research is to provide insight into the hardware and software tools that are used to drive banking process automation within Barclays Bank Kenya. 1.4.2 Objectives The specific objectives of this research are: To identify and analyze the various computing tools used to automate the operational processes of Barclays Bank Kenya. To determine the criteria used by Barclays Bank Kenya in selecting the tools used in automation. To identify the synergy between the various operational tools and interactivity. To identify possible upgrades to the automation system that could increase efficiency. To write a report on the research findings 1.4.3 Research Questions What is the operational workflow of the banking process? What are the hardware and software tools used to automate the banking process? What are the criteria for the selection of hardware and software tools used in the automation of the process? How does the process integrate with other processes? How can the process be made more efficient vis-Ã  -vis the tools used? 1.5 Scope This research is concerned with the hardware and software tools that have been used to achieve banking process automation within the Barclays Bank Kenya. The bank was selected due to its wide coverage branch network and its heavy reliance on Information Technology in carrying out its banking operations. The research also looks into the criteria used in selecting the tools used for automation. It describes the synergy between the various tools and how they interact. And finally it identifies possible upgrades to the tools that could increase the overall efficiency of the automation process. 1.6 Ethical and Professional Issues 1.6.1 Ethical Issues Informed Approval The subject of the case study must fully understand the scope and depth of the research before the researcher can start the study. Impropriety in Research Forgery and distortion in conducting and analyzing research must be avoided and if present should be reported to the supervisor of the research as every academic community has the responsibility of tackling research misconduct. 1.6.2 Professional Issues Citing Sources It is important for the researcher to cite the works of other authors that have been included in his/her research in other to avoid plagiarism. The use of citations is professional as it gives credibility to the researchers own work. Confidentiality It is important that the confidentiality of the source(s) always be maintained by the researcher unless where the source(s) has given explicit permission for their name(s) to be mentioned in the research. This increases the level of rapport between the researcher and their source, making the source willing to provide vital information to the research without fear of their identity being disclosed. 1.7 Schedule The project schedule is shown below with the aid of a Gantt chart. Research Define Research Questions List the cases and choose analysis tools Arrange to collect data Collect data analyze the data Write a report Jan. 2017 Feb. 2017 March. 2017 April. 2017 May. 2017 April 2016 Figure 1.0: A Gnatt Chart Showing the Research Schedule 1.8 Budget TABLE 1.0: Breakdown of Proposed Estimate for Conducting this Research S/NO BUDGET ITEM AMOUNT (KSH) 1 Phone Calls 2,000 2 Internet Data 2,000 3 Printing 1,500 4 Transportation 1,500 TOTAL 7,000

Gun Control - We Should Give a Gun to Every Citizen Essay -- Constitut

Gun Control – We Should Give a Gun to Every Citizen If the second amendment to the United States Constitution clearly states that, â€Å"The right of the people to keep and bear arms shall not be infringed,† why do our lawmakers constantly debate the topic of weapons? Radical Democrats wish to make all guns illegal, meaning only policemen and servicemen would be equipped with guns (â€Å"Mission†). Radical Republicans (i.e. Charlton Heston), on the other hand, wish to place no restrictions whatsoever on guns, making semi-automatic and fully-automatic guns available to everybody living in or visiting the United States, without a background check or profile of the gun buyer (Heston). It seems that every time a terrible crime is committed in the United States involving a gun, the debate about gun control flares up again. The Columbine massacre and other school shootings, shootings at churches and in the workplace, the serial sniper near Washington D.C., and rises in gang activity are all examples of such events that have sp arked debates in Washington. Both sides, Democrat and Republican, have good points, but they are far from a solution. Radical Democrats have reason to want to eliminate guns from America because every year in America thousands of people are injured or killed by a firearm. It is also true that in the early 1990s there were an estimated 200 million privately-owned guns in the United States, and to try and confiscate all of those guns would be ridiculous (â€Å"Gun Control†). Radical Republicans have the 2nd amendment on their side in their quest to make all guns legal and unrestricted. They don’t have practicality or the safety of the country on their side, however. The release of fully-automatic guns into the public wou... ...he possibilities are endless. Giving a gun to every citizen of the United States is the only way to make our streets safe. It is also a very good way to stimulate the economy and prevent against foreign invasion. It may even save your life. WORKS CITED â€Å"The Assault Weapons Ban: Questions & Answers.† Brady Campaign to Prevent Gun Violence. August 2002. Brady Campaign. Org. 3 Dec 2002 http://www.bradycampaign.org/facts/gunlaws/awb.asp>. â€Å"Gun Control.† 30 Mar 2002. Just Facts: A Resource for Independent Thinkers. 2 Dec 2002 http://www.justfacts.com/gun_control.htm>. Heston, Charles. â€Å"NRA President Charlton Heston’s Opening Comments.† 20 May 2000. NRA Annual Meeting. 2 Dec 2002 http://nrahq.org/transcripts/hestonam.asp>. â€Å"Mission.† GCN Introduction. July 1996. Gun Control Network. 2 Dec 2002 http://www.gun-control-network.org/genintro.htm>.

Sharks Essay examples -- essays research papers fc

SHARKS There are more that 250 species of sharks, ranging from the harmless whale shark to the ferocious great white. I will describe the feeding habits and localities of the three greatly known to mankind: the great white shark (Carcharodon Carcharias), the tiger shark (Galeocerdo Cuvieri), and the bull shark (Carcharhinus Leucas). The great white shark, known as Carchardon Carcharias, feeds regularly on marine mammals, such as seals, sea lions, otters, dolphins, and whales. Samuel Gruber in Discovering Sharks writes that the great white consumes marine mammals when they come across a deceased one. Even though the great white has the reputation of a man-eater; they attack thinking that the diver or surfers on a short board are part of its natural prey. The San Francisco area is known as the great white capital, because of the â€Å"Red Triangle.† The red triangle is the breeding ground for its natural prey, seals and sea lions. The triangle’s boundaries are north of Tamales Point, south of Monterey Bay, and west of the Farallon Islands, states Rodney Steel in the book Sharks of the World. The sharks also are found in quiet, shallow waters, along with in Australia. The tiger shark, known as Galeocerdo Cuivieri, feeds regularly on marine mammals also. Tiger sharks do end up with curious articles in their stomach like license plates, lamps, and sheep. The tiger shark is a cannibalistic shark, which means it will attack its own kind when needed. Tiger sharks will feed on anything th...

Government Debt Placement Essay

If a central bank has this responsibility, it is expected to place government debt on the most favourable terms possible. Essentially, a government can instruct the central bank to raise seigniorage income43 through a variety of methods, which include a reserve ratio (requiring banks to set aside a certain percentage of their deposits as non-interestearning reserves held at the central bank – an implicit tax), interest ceilings, issuing new currency at a rate of exchange that effectively lowers the value of old notes, subsidising loans to state owned enterprises and/or allowing bankrupt state firms that have defaulted (or failed to make interest payments) on their loans to continue operating. Or, the inflationary consequences of an ongoing liberal monetary policy will reduce the real value of government debt. This third objective is important in emerging markets, but by the close of the 20th century has become less critical than the other two functions in the industrialised world, where policies to control government spending means there is less government debt to place. A notable recent exception is Japan, where the debt to GDP ratio is 145 and rising (2002 figures). In emerging markets, central banks are usually expected to fulfil all three objectives – ensuring financial and price stability, and assisting the government in the management of a sizeable government debt. While all three are critical for the development of an efficient financial system, the central banks of these countries face an immense task, which they are normally poorly equipped to complete because of inferior technology and chronic shortages of well-trained staff. The Bank of England had a long tradition of assuming responsibility for all three functions, but in 1997 the Chancellor of the Exchequer announced the imminent separation of thethree functions, leaving the Bank of England with responsibility over monetary policy the FSA44 regulates financial institutions, including consumer protection and prudential control of the banking sector. The Japanese government created the Financial Supervisory Agency in 1997, to supervise banks and other financial institutions. Part of the Prime Minister’s office, this Agency has taken over the job previously undertaken by the Ministry of Finance and Banking of Japan. The United States assigns responsibility for prudential regulation to several organisations including the Federal Reserve, Comptroller of the Currency and the Federal Deposit Insurance Corporation. The Federal Reserve also sets an independent monetary policy. Until France became part of Euroland, the 20 000 plus employees of the Banque du France played a dual role: implementing monetary policy and regulating/supervising the banking system. In Germany, since the advent of the euro, the Bundesbank has lost its raison d’?etre, and has lobbyied hard to assume a regulatory role. There are potential conflicts if one institution is responsible for the three objectives of price stability, prudential regulation and government debt placement. Given the inverse relationship between the price of bonds and interest rates, a central bank with control over government debt policy might be tempted to avoid raising interest rates (to control inflation) because it would reduce the value of the bank’s debt portfolio. Or, it might increase liquidity to ease the placement of government debt, which might put it at odds with an inflation policy. Consider a country experiencing a number of bank failures, which, in turn, threaten the viability of the financial system. If the central bank is responsible for the maintenance of financial stability in the economy, it may decide to inject liquidity to try and stem the tide of bank failures. It does this by increasing the money supply and/or reducing interest rates, so stimulating demand. The policy should reduce the number of bankruptcies (personal and corporate), thereby relieving the pressure on the banking system. However, if the central bank’s efforts to shore up the banking system are prolonged, this may undermine the objective of achieving price stability. Continuous expansionary monetary policy may cause inflation if the rate of growth in the money supply exceeds the rate of growth of national output. The central bank may be faced with a conflict of interest: does it concentrate on the threat to the financial system or is priority given to control of inflation? The dilemma may explain the recent trend to separate them. If the central bank is not responsible for financial stability, it can pursue the objective of price stability unhindered.

George Walker Bush Leadership Style Essay

Barbara and George H. W. Bush are the parents of the 43rd president of the United Sates, George W. Bush. The two were married on January 6th, 1945 and it was said that they experienced love at first sight when meeting. George Bush Sr. was 17 when married, and Barbara was 16. The two have lived in 29 homes located in 17 cities, and is the first presidential couple to reach 60 years of marriage. Barbara’s background includes working a summer job sorting nuts and bolts during World War II as well as working at the Yale Coup while her husband was attending the college, and until her first child was born. She is the second woman in history to have both a son and husband serve as president of the United States. George H. W. Bush served as the 41st president, as well as numerous other positions within our government. Some of these include vice-president to Ronald Reagan, director of the CIA, congressman, ambassador to the United Nations, and chairman of the Republican National Committee. Besides these governmental positions he was also a pilot in the navy as well as an oil businessman in Texas. George Walker Bush was born on July 6, 1946 in New Haven, Connecticut. He was the oldest of his five other siblings: Pauline (Robin), John Ellis (Jeb), Neil, Marvin, and Dorothy (Doro). George’s sister Robin died at the age of three from leukemia when George was only seven years old. His brother Jeb would also go on to become the 43rd governor of Florida. In 1948, George Sr. and Barbara moved the family to Midland, Texas, where H. W. would make his fortune in the oil business. George attended private school in Massachusetts where he was a great athlete in baseball, football, and basketball. He was good in school, but was also known for being a bit of a troublemaker. He went on to be accepted to Yale University where he was the president of the Delta Kappa Epsilon fraternity, played rugby, and was a member of the secretive Skull and Bones society. Two weeks before graduation George enlisted in the Texas National Guard. Although there is a lot of speculation as to whether or not he completely fulfilled his duty, he was honorably discharged in 1974. In 1977, Bush met Laura Welch and married her after only three months. The couple has two children together, twins Jenna and Barbara. Family is huge to George, and he attributes Laura for stabilizing his life and helping him to give up alcohol in 1986. As for George W. Bush’s leadership style, many things through his life have affected how he chooses to lead. In 1978 he lost in an election for a House of Representatives seat in Texas, which helped him to humble himself and realize that things would not be given to him just because of his father. He helped with his father’s presidential campaign in the year 1988, and this helped him to learn the ins and outs of campaigns as well as doing the dirty work required of such a position. After this, George bought a share of the Texas Rangers baseball team and served as managing general partner for five years, where he learned how a business works and runs. He became governor of Texas in 1995 and served until 2000, when he won the presidential election on the republican ticket. He served two terms as president, and dealt with disasters such as Hurricane Katrina and September 11th. George has been quoted speaking about Katrina saying, â€Å"Throughout the area hit by the hurricane, we will do what it takes, we will stay as long as it takes, go help citizens rebuild their communities and their lives†. George W. Bush’s leadership style can be described as problem solver, delegator, decisive, visionary, and composed. He was a problem solver because he believed that getting problems solved right when they needed to be was key, and did not push them off until the next person came around to fix it. As for delegator, Bush was good at knowing when it was his place to get something done, or when he should let someone else take over the job for him. George was a decisive leader in that he made tough decisions throughout his presidency, but always did what he believed was best for our country. Visionary is one way to describe his leadership style seeing as he had a clear vision set out at the beginning of his presidency for how he wanted our country to run, and this is something that he is known quite well for. Lastly, during Bush’s presidency he had to lead our country through two terrible incidents. Through all of this, he was able to maintain his composure and remain an effective leader through tough times, which shows his composure as a leader. One of the things that George W. Bush is most well known for would be his speech that he gave at the sight of ground zero a few days after 9/11. I can hear you; the rest of the world hears you. And the people who knocked down these buildings will hear all of us soon. † I believe that this quote from him helps to show all of the different leadership styles that he exhibited throughout his stint as governor of Texas as well as president of the United States. Nowadays, you can find George spending time with his wife Barbara on his ranch in Texas. He recently wrote his book, â€Å"Decision Points† and had a library put up in his name on the Southern Methodist University in the great state of Texas.

Life Span Perspective

The process of human development starts as early as the embryonic stage and continues to progresses throughout life. These changes have been examined by leading theorist in the Psychology field who were looking to establish guiding principles and concepts. There have been a number of developmental theories that seek to explain the questions that we have related to human development. I will examine these theories, as well as, provide backgrounds for the most influential theorist for each.I will also examine the life span perspective and how heredity and the environment influence the human development. One of the most leading theories of human development is the psychoanalytic theory. Many contemporary theories of counseling or psychotherapy are extensions, variations, or responses against psychoanalytic theory. Psychoanalytic theory examines the factors that motivate behavior by focusing on the role of the unconscious. Sigmund Freud and Erik Erikson are examples of theorists who suppo rt this approach.Freud was an innovator, his psychoanalytic theory of personality and his psychosocial placement theory lead to his predecessors' development of their own philosophies. Erik Erikson expanded on Fraud's theories in many ways and created his own theory of psychosocial development. â€Å"Psychoanalytic theory's strength lies in its awareness of unconscious motivation and the importance of early experiences on development. † (Rounds, 2010) Since there is a lack of concrete evidence to support the claims of psychoanalytic theory, psychologists became increasingly interested in developing a more scientific approach.In order to do this, some researchers began to study only those things that could be measured and quantified. This led to the beginning of learning theories. Learning theories focus on how behavior is learned. Ivan Pavlov was a Russian scientist who discovered the term classic conditioning. Classic conditioning is a learning process that occurs through as sociations between an environmental stimulus and a naturally occurring stimulus. Pavlov conducted his experiment by using mammals, he observed the digestive process in dogs and the relation between salvia and food.His study was extremely influential in establishing triggers (conditioned responses) that stimulated the salvia when feeding the dogs. He name to realize that the dogs began to salivate not only when they saw food but when they saw the scientist in lab coats. The dogs associated food to the white lab coats which triggered the salvation. He also conducted an experiment with the use of a bell. He would ring a bell when it was time to eat and subsequently the same conditioned responses were stimulated and the dogs reacted in the same manner as in the lab coat experiment.His developments influenced American psychologist John Watson experiment on a nine month old baby named Albert. He wanted to prove that classic conditioning work on humans as well. His famous study for this wa s called the Little Albert Experiment in which he theorized that children have three basic emotional reactions: fear, rage, and love. He wanted to prove that these three reactions could be artificially conditioned in children. Watson used Albert to test his theory.He repeatedly presented Albert a rat in conjunction with a sudden, loud noise to classically condition fear of the rat. He went on to prove that humans can be conditioned as well. His worked formed ideas that would become a whole branch of psychology called behaviorism. (Watson, 1913) Behaviorism operates on the principle f stimulus- response, the subject whether human or mammal can have his/her behavior shaped through positive or negative reinforcements.Behaviorism conclude that any being can be trained to perform any task, subsequently internal stimulus such as; genetic background, personality traits, and internal thoughts are no- factors when considering this school of thought. Many critics of behaviorism argue that it is, a one dimensional approach to human behavior. Many say that it misses the mark when it comes to other factors such as free will and internal influences like moods, thoughts, and feelings. Lifespan perspective is in relationship with human development, and is lifelong. This study within psychology is continuous.Lifespan perspective has three developmental domains. These domains are physical domain, cognitive domain, and social domain. Physical development refers to the growth of the body, organs, physical systems, signs of aging, change in motor abilities, and all physical changes (Salesman & Rider, 2009). The next development has problem- solving, mental process, memory, perception, language, and learning from the cognitive development. The last developmental stage is psychosocial stage; this stage endless the personal and interpersonal aspect of development.The developmental aspects for psychosocial are: emotions, personality traits, interpersonal skills, motives, family roles, relationships, and society. Lifespan development also has five characteristics useful for understanding any age of human development (Berger, 2008). Multidimensional characteristics accounts for change in every direction, as change does not have to be in a straight line. Embedding in lives of humans context can include constraints, family patterns, and historical conditions this characteristic offers to multi-contextual characteristics.The last of the five developmental characteristics is plasticity, which states that every person has traits that can be altered at any point in life, and change is ongoing (Berger, 2008). In conclusion, human development is continually changing its guidelines and principles. As we evolve so does the techniques and developmental theories. The human personality can be trained and cultivated to be whatever the influencer desires. We have also learned that the impact from the environment as well as heredity plays an important role in each individual's li fespan development.