OPEC not complying under the WTO Term Paper Example | Topics and Well Written Essays - 5000 words

OPEC not complying under the WTO - Term Paper Example According to documents of the organization, the most important aim of the OPEC is to create the co-ordination of diverse petroleum policies as well as unification and diversification of different petroleum policies along with the member countries and also to set the determination of the most ideal means for preserving their interests, both individually as well as collectively.2 Also these policies and strategies have been established by the organization to create the need for securing a steady stream of income for these oil-producing countries.3 This steady level of income is also expected to produce an efficient economic as well as regulatory supply of oil and petroleum to consuming nations all over the world and a fair return of profit on their capital accumulation to those countries which are investing in petroleum industries of these nations.4In addition to this, OPEC has also suggested to ensure the aim of stabilization of prices of oil in global as well as nationwide oil market s. OPEC assumed a ‘Declaratory Statement of Petroleum Policy in Member Countries’ where it established â€Å"the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development. Membership grew to ten by 1969†5 This policy has been established by the organization with a view regarding elimination of harmful as well as unnecessary fluctuations.6 Currently, OPEC’s membership is consisted of the eleven countries which are: â€Å"Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates (UAE), Algeria and Nigeria†.7 The first five nations are regarded as Founder Members, and the rest are recognized as Full Members (which have joined the OPEC between the time period of 1961 and 1971). In the year 1992, OPEC comprised thirteen nations as constituents. These included both Ecuador as well as Gabon.8 Pursuant to Statute of the OPEC, nations can be come Full Members under the condition that these nations have a substantial amount of net exports of crude oil or petroleum and also possess alike interests to the member nations. For the purpose of obtaining membership of the organization, a country needs to be accepted by a majority number of 3/4 of the Full Members which include the agreement of all the five Founder Members.9 Under the â€Å"Uruguay Round Agreements†10, it has been suggested by the WTO that members are not allowed to impose export quotas on oil. Hence, while OPEC is an organization based on single product, WTO is a multilateral unit with a larger membership.11 Along with this, the OPEC’s policies in regard to price manipulation have been regarded as one of several most important factors in regard the strategy of establishing high gas prices in last few years. The amounts of this high gas prices are now comprised of average near about $2.20 per gallon.12 United States Senator Frank. R. Lautenberg in an official meeting commented that, â€Å"If you are part of a monopoly like OPEC you cannot belong to the World Trade Organization, which offers all kinds of commercial benefits.†13 On 8th July 2004 a report with the title ‘Busting Up the Cartel: The WTO Case Against OPEC’ was published from the office of the senator Frank Lautenberg in which

Why Do Firms Become Multinational Enterprises Essay

Why Do Firms Become Multinational Enterprises - Essay Example According to the research findings, it can, therefore, be said that the characteristic of MNE is that the company links together its affiliates with a common strategic vision and draws on a common pool of assets, information, human resources, trademarks, and patents. Before making a decision to establish a subsidiary abroad the firm should have the proper reasoning for this strategic decision. There are many different motivating factors or reasons for why firms become multinational enterprises. While some firms might pursue only one reason as priority based on its strategic direction, other firms might be influenced by a multitude of reasons. These reasons are classified into four broad categories. Each of these categories has a subset of reasons and factors, which also should be discussed in greater detail. Below is provided a more detailed overview of these groupings. Very often firms need resources, which are not available or accessible in their home countries. In order to solve t his problem, MNEs are often pursuing a strategy of investing abroad and thus to acquire or gain access to the resources that are either more costly in the home country than in foreign country or are not accessible/available at home country. In order to solve this problem, MNEs are often pursuing a strategy of investing abroad and thus to acquire or gain access to the resources that are either more costly in the home country than in foreign country or are not accessible/available at home country.

Managerial Economics Assignment Example | Topics and Well Written Essays - 2250 words

Managerial Economics - Assignment Example The firm would be worse off, if it produced in the short run because the total loss that the firm will incur in this case is 380 AED (120-500). It is prudent if the firm shuts down and saves 200 AED rather than losing 380 AED in the short run. At the point where the firm produces 30 units and sells each unit at 4 AED, MRC (marginal revenue cost) is less than AVC (average variable cost). Assuming that Coke has already attained the monopoly status such that Coke is a monopolist, Coke actively engages itself in price discrimination because it has price setting power (Carbaugh). Given that there is a difference in price elasticity of demand for Coke in various regions, the company varies its price and extracts consumer surplus, which leads to additional revenue and profit. Coke discriminates on price by selling its product to distributors at different prices. For instance, the price of the same can of Coke in Seattle is higher than it is in Sidney. Separately, consumers from the UK purchase Coke at a higher price, compared to consumers from other countries within the continent. When Coke is able to separate the markets, it makes profits denoted by area MC, P, X, Y + MC1, P1, X1, Y1. The price charged when Coke separates the market will be P while output Q will be produced in a relatively elastic sub-market. Coke will charge a lower price in a relatively inelastic sub-m arket (P1). When duopolists, Etisalat and Du form a cartel between themselves, the firms would want to maximize their joint profits by producing a smaller quantity and charging higher prices. The optimal total industrial output selected by Etisalat and Du would be the monopoly quantity (Agarwala). It would be agreed that Etisalat and Du contribute in production of the agreed quantity and then share the profit between them equally. Consequently, the price and output in the market will be affected in that the

The Audit of the Multinational Listed Company ABC Ltd Essay - 1

The Audit of the Multinational Listed Company ABC Ltd - Essay Example Abnormal items representing the loss on sale of investments $ 17,050. Details of investments and sale are required to check against the market value that prevailed at the time of sale and reason why they had to be sold at loss should be ascertained. There has been an increase of $ 77,318 in property, plant, and equipment and $ 76,737 in brand names and a decrease of $ 13,595 in investments. The increase in the value of property, plant, and equipment needs to be physically verified with reference to the relative purchase invoices and a comparison with market rates conducted. The increase in brand names also needs to be physically checked with new brand names acquired or it should be ascertained whether increase has been due to the revaluation of the brand names. Policy regarding treatment of brand names in the balance sheet has been separately dealt with. As regards decrease in investments, it should be investigated, the reason for there being no correlation with the loss reported and the decrease. Whether the values reported in the balance sheet represent a cost of acquisition or market value has also to be ascertained. The increase in creditors and borrowings represents an amount of $ 186,041. This is to be ensured against any possible inclusion of proforma purchase invoices without corresponding entry in the value of inventories. Policy regarding payment based on proforma invoices without receiving stocks has also been separately dealt with. The net increase of $ 44,240 in total non-current liabilities should be analyzed. While there is the increase in creditors and borrowings, provisions have reduced. Whether there is under a provision of liabilities to avoid the possible reduction in profits or liabilities have been terminated requiring no further provisions, need to be ascertained.

Narrative on a Special Place Essay Example for Free

Narrative on a Special Place Essay My love for Africa Hello everyone my name is Tulsi Amin and I attend South University at the West Palm Beach Campus in Florida. I have been to many different places in my life and in fact I have stayed in three different continents as of now. I was born in India moved to Kenya when I was two and final destination is America since the age of 10. Africa is where I consider my childhood where I learned to play with butterflies saw talking parrots and was visited by wild monkeys frequently in my courtyard. With my experiences with people in the Western world and their depiction of Africa being like the â€Å"Jungle Book† I wish I can take them all there to see the reality of this beautiful continent. I lived in Nairobi, Kenya the capital city of that country. There are no lions, tigers or giraffes on the street as I have heard many people ask me. We do have high rise buildings, malls, public transportation and homes built out of brick. Although I lived there from the age of two to eight I remember many things that are very special to me today. I remember having an aunt that lived in a town called Thompson Falls that was on the Equator and the weather was always perfect there. I used to go there many summers and go down waterfalls and see huge hippos basting in the river. I met the local tribes that are called Masais and learned to make tribal necklaces out of gemstones. Africa is a country that is full of culture and having been lived there has made me appreciate many things in life that are scarce resources that we take for granted elsewhere. When I moved to America in 1993 and started school in New Jersey I was so excited when I saw a few black students in my class. I went up to them and started speaking in Swahili and they looked at me and replied â€Å"I am sorry we are not Indian† So I told them no this is your language. All the students looked at me and said our language is English. That’s when I learned that African Americans do not speak Swahili the native language of Kenya. As I learned more about history and slavery and saw how many African Americans lost their roots to their homeland it was a rude awakening for me. I am glad that this is a rich part of my life and will always be a special place for me. Although many people got a colorful depiction of Africa and the safaris through Disney’s Lion King the real safari is even more exciting to see. I do remember traveling to other smaller towns that were on the outskirts on our way we would zebras grazing in this vast open green land. Many times we have seen giraffes, antelopes and elephants just enjoying their natural habitat. These memories and sightings are something that I will never forget. I love that country and am delighted that it is part of my life. I will love sharing these memories with my children and hoping to take them one day to see Kenya, Africa. Over the years I thought how I may make people appreciate other countries and their culture. America is known as the â€Å"melting pot† where many different cultures come to make a living yet are we so ignorant to learn about all these cultures. As a child when I attended school I was taught about all major religions and how to respect others and their beliefs. As they say education and manners are taught young and school is where this appreciation for other cultures should be taught. Modern day education needs to implement the positive aspects of the other countries such as teaching students about their culture, economy, what these countries are famous for. I learned about slavery which is a big part of part history but now it is time to teach and appreciate where the slaves came from. They left their roots so far behind that many of them do not know where they came from in Africa. We live in a modern day world where everyone around us comes from different backgrounds, values and beliefs. We all have special meaning for the places where we come from and I think we deserve for others to respect these places. There are problems everywhere but despite them when they place is special to any one of us we tend to overlook the problems. We need to have an open mind and room to explore and learn about other countries and cultures.

International Business Research Question and Answer

International Business Research Question and Answer Question 3 You are the CEO of a company that has to choose between making a $100 million investment in Russia or Poland. Both investments promise the same long-run return so your choice is driven by risk considerations. Assess the various risks of doing business in each of these nations. Which investment would you favour and why? Answer INTRODUCTION International Business International Business is evolved from international trade and international marketing. International business is a crucial venture due to the influence of varied social, cultural, political, economic, natural factor and government policies and laws. According to Michael H. Moffett, â€Å"International business is the process of focusing on the resources of the globe and objectives of the organizations on global opportunities and threats in order to produce, buy, sell or exchange of goods and services world-wide. Factors Lead to International Business Establishment of WTO Globalization of Economies Rapid technological Advancement Enlargement of European Union Increase in competition Higher growth rate of GDP in developing Countries Increase in business alliances in degree and variety Emergence of supportive institution RUSSIA Russia is the worlds largest country in terms of territory. Its consumer market consists of over 140 million people. It has vast resources, a highly educated workforce, and technologically advanced research and production capabilities. Still, Russias economic potential remains largely untapped. Many investors shy of Russia amid growing concerns that the political system in the country is breeding dissent among the population. As such, the economy has been in a state of flux in recent months and its close proximity to Europe amid the financial crisis remains a pivotal danger. However, none of these things change what Russia has to offer. Its technological capabilities matched with its natural resources give the countrys economy great potential. Political turmoil will only drive prices down, making it a better time to invest in this country. Investment Climate and Opportunities Overview 1. Dynamic Economic Growth 2. One of the Largest Consumer Markets 3. World-Renowned Human Capital 4. Vast Natural Resources 5. Unique Geographic Position 6. Technologically Advanced Economy 7. Attractive Taxation System 8. Extensive Government Support 9. Stable Social and Political System RUSSIA’S ECONOMIC OVERVIEW Russia has undergone significant changes since the collapse of the Soviet Union, moving from a globally-isolated, centrally-planned economy towards a more market-based and globally-integrated economy, but stalling as a partially reformed, statist economy with a high concentration of wealth in officials hands. RUSSIA: RISK ASSESSMENT 1. SLOW DOWN IN GROWTH: Growth has slowed down in Q2. This trend should beconfirmed over the whole of 2012, with the Russian economyhowever holding up in a very depressed internationaleconomic context. Oil production reached a record level inthe middle of the year. On the other hand, industrial productionhas suffered from a fall in demand from the mainpartners of Russia (European Union and China). Investmenthas been curbed by a rise in production costs reducingcompany profits. Private consumption, the main driver ofthe Russian economy, was buoyed in HY1 by the rise inwages and social spending, growth in banking credit aswell as the good state of the employment market. However,the rise in inflation is now affecting the increase in realwages and therefore domestic demand. Inflationary pressurehas increased since June, under the effect of the risein the price of food (increased by the effects of the summerdrought) and public services (energy). The Central Bankraised its refinancing rat e in mid-September (from 8% to8.25%) to try to contain the rise in prices within the limit ofits 6% target. 2. BUDGET CURRENT BALANCES DEPENDENT ON OIL PRICES: The 2012 budget was amended in June to take accountof an expected rise in oil prices (from $100 to $115 a barrel),which increases fiscal revenue and allows expenditureto be maintained. Oil revenue accounts for half of Staterevenue and the price of oil ensuring equilibrium in publicfinances has doubled since 2008. Taking into account therecent change in the price of a barrel, revenue should bebelow that expected while expenditure will not be reviseddownwards. Consequently, the balance should be slightlyin deficit at the end of the year. However, Russian publicfinances remain solid with public debt below 10% of GDP,leaving the government some room for manoeuvre, at leastin the short term. 3. COMPLEX JUDICIAL SYSTEM: Property rights are widely perceived to be contingent on political connections, and intimidation of businesses by the FSB and police for political and financial ends is frequent. Red tape stifles innovation, and lack of transparency makes adequate partner due diligence elusive. The judicial system is also problematic: legislation implementation is broadly unpredictable and the independence and integrity of Russian courts is deeply flawed. 4. CORRUPTION AND LACK OF GOVERNANCE: Corruption and weak corporate transparency is another major ongoing risk for investors. Many analysts admit say that this is a big problem particularly among some of the smaller companies, whose accounts are not particularly transparent. Even well-known and respected companies like IKEA which heavily focus on practicing ethical businesses activities declared a moratorium on subsequent Russian investments due to the ongoing concerns of corruption. Based on the Corruption Perception Index, Russia has a lot of obstacles to fair and efficient business practices. Even Iran, Libya and Pakistan are perceived as having less corruption. 5. POLICIES: Russia’s economic and fiscal policy is not investor-friendly. The tax code is overly complex. Russia also has a distinct penchant for protectionism: despite its WTO accession, it continues to unpredictably implement levies, tariffs and bans on hundreds of imports. Tight relations between business and politics are highly detrimental to the business environment. POLAND Polands economy is much smaller than that of Russia. However, with a strong consumer market of 38 million, it is still one of the biggest markets in Europe. The country benefits greatly from its geographical location, which makes it possible to export goods to all European countries and thus reach over 500 million consumers. Similar to Russia, Poland has a highly educated workforce. Therefore, Poland also falls victim to its proximity to Europe and the ongoing crisis. For these reasons many investors are also shying away from this nation. In these trying times though, Europe still remains a solid economy, and though it has faltered, it has managed to remain intact. As investors flee Europe amid growing concerns over the failure to revive the economy and provide successful solutions, Poland offers a great bargain. Polands economic performance could improve if the country addresses some of the remaining deficiencies in its road and rail infrastructure, business environment, rigid labour code, commercial court system, government red tape, and burdensome tax system. ECONOMIC OVERVIEW OF POLAND Poland has the largest economy in Eastern Europe, and one of the highest levels of foreign investment at $13.9 billion as of 2006. Polands economy has been growing quickly, at about 6%, for the past 5 years, and was growing at an even faster pace before this. Despite its GDP growth, Poland faces numerous economic issues; it has chronic high unemployment, low wages despite significant increase of productivity, massive flight of educated population abroad, and low level of innovativeness and highest percentage of people working for national minimum wage among countries of European Union Poland: Risk Assessment 1. DECELEARTING GROWTH IN 2012: Economic activity remained sustained in 2011, despite a slowdown in growth during the last quarter. Growth has continued to decelerate in 2012. Household spending, which represents 60% of GDP, effectively remains low due to a decline in consumer confidence, in conjunction with an annual inflation rate of 3.8% in August 2012, a public sector wage freeze and deterioration in the employment market (13.3% unemployment). The Polish trade deficit shrank in 2012 following a contraction in domestic demand in Q2 VS. Q1 (-3.1%) and slowing exports (+0.8%). Although exports were impacted by a slowdown in Western Europe, exports towards Russia and Ukraine progressed by more than 20%. The heavy deficit in the income balance wiped out most of the positive effect from the trade improvement. The impact of external trade on GDP was nonetheless limited on account of the low level of trade openness compared to other Central European countries. An expected reduction in i nflation should enable the Polish central bank to modify monetary policy. The governor has committed to cutting rates in the event of an economic slowdown. Despite the decline foreign investment flows will cover the current account deficit. At the end of July 2012 net investment flows covered the deficit, i.e. EUR 8 billion. The private construction sector was weighed down by a fall in household demand. The construction production index published monthly by Euro stat fell 8% over the first 7 months of 2012 compared to 2011. Furthermore, the construction sector was boosted, during several months, by the organisation of the European football championships in June 2012 (stadiums, hotels, road networks †¦) with support from public investment. Corporate credit remained dynamic during Q1, particularly in zloty terms, but investment will decelerate sharply over coming months. 2. STRUCTURE AND HIERARCHY IN POLISH COMPANIES: Organisations in Poland have a strong respect for hierarchy and authority, with structure and delegation coming from above. This hierarchical style is reflected in manyPolish businessformalities and settings, including the decision-making process and the use of professional titles. Seniority in Polish organisations is acknowledged and respected and the corporate hierarchy is often formed on the basis of age and educational background. For this reason, when negotiating, it is advisable to send delegates of a similar status to those of Polish colleagues, both in age and professional qualifications. Rules and regulations are an important part of the Polish business environment so Polish counterparts may expect theirbusiness partners to know and appreciate established etiquette and business protocol. 3. RELATIONSHIPS: Doing business in Poland requires an understanding of the importance of relationships in polish businessculture. Building individual relationships is essential to the success of business objectives, especially in the long term. Polish people take time to establish relationships with business partners and to build trust. Poland has a family-focused society, and poles value building and maintaining close personal relationships. This may be considered as a challenge for many foreigners doing business in poland who are not used to sharing personal information with their business partners. For poles this is one of the stages of the trust-building process. 4. COMPLEX BUREAUCRACY: Although Poland’s per capita GDP is increasing relative to the rest of the EU, it amounts to less than 70% of the EU average. Nonetheless, strong domestic consumption is one of the engines of growth in Poland. Poland has made great strides toward improving the commercial climate, but investors point to an inefficient commercial court system, a rigid labour code, bureaucratic red tape, and a burdensome tax system as challenges for foreign companies. 5. IMPROVEMENTS IN INFRASTRUCTURE: Although many infrastructure improvements have been completed or are underway, Poland still has much work to do in order to modernize its road and railway network. Weaknesses in transportation infrastructure increases the cost of doing business for U.S. businesses by limiting ready access to all of the markets within Poland and diminishes the country’s current attractiveness as a regional distribution hub. Internet access and connection strength is good in the cities, but still very limited in less populated regions. 6. IMPROVING PUBLIC FINANCES: The Public finances development and consolidation plan implemented by the government in order to respect Maastricht criteria from 2013 onwards will be pursued. The public deficit, which reached almost 8% of GDP in 2010, is expected to fall below 4% in 2012, through higher taxes on oil products and an increase in social contributions. As a result, public debt should stabilise at around 55% of GDP. However, as a large proportion of the debt is held by non residents, it is vulnerable to risk aversion among investors. Furthermore, the European recession has weighed on foreign direct investment flows in 2012 which has meant that the only stable capital flows financing the current account deficit have come from European structural funds. The Polish banking system seems relatively robust, with capitalisation ratios in excess of Basel III minimum requirements. However, subsidiaries of foreign banks, which are mostly implanted in the euro zone, represent two-thi rds of the banking sector, which is therefore dependant on foreign capital. Banks remain highly exposed to currency risk, as household loans denominated in foreign currency account for 14% of GDP. Furthermore, the zloty depreciated by 8% of its value against the euro between January and September 2012. 7. A COMPARATIVELY STABLE POLITICAL CONTEXT: -The 2010 presidential election resulted in Bronislaw Komorowski leading a coalition between his centre-right party (PO), which had been in power since October 2007, and the Polish people’s party (PSA). The general elections held on 9 October 2011 confirmed the coalition’s position. The Prime Minister, Donald Tusk has made budget deficit reduction a priority. However, the latest opinion polls highlight growing popular discontent with current fiscal austerity. Furthermore, the adoption of the euro has been postponed due to the single currency’s current lack of appeal according to the Prime Minister. CONCLUSION Both countries have positives and negatives aspect of investment. But after assessing risks Quotient in these two countries one can conclude that it is difficult to set up new facility in Russia. Because there are more factors affecting risk perception in Russia as compared to risk perception in Poland. Poland is better option than Russia REASONS FOR THIS The only EU country to have avoided recession in 2009 FDI appeal is reinforced by the size of the domesticmarket Diversified economy The highest absorption rate of European structuralfunds in emerging Europe

The China Syndrome :: essays research papers

The China Syndrome   Ã‚  Ã‚  Ã‚  Ã‚  The China Syndrome is about a nuclear power plant in Los Angeles, California. The Ventanna Nuclear Power Plant came close to the China Syndrome! A Channel 3 news reporter, Kimberly Wells, and her camera man, Richard Adams, captured an accident on film at the nuclear power plant that would have caused the China Syndrome. The China Syndrome could have killed off a place about the size of Pennsylvania. One of the head operators of the company, Jack Godell, talked to Kimberly Wells at a company gathering. Jack told Kimberly that there was just a turbine trip. Kimberly and her camera man went to Jack Godell's house and confronted him about the evidence. The camera man asked Jack to speak publicly about the accident. On the way to a Nuclear Power convention there was a car following Jack. Jack went to the Ventanna Nuclear Power Plant to hide from the people following him. After arriving, Jack went to the control room to find that the people running the plant were making a big mistake. He saw the people raising the power back up to 100%. He tried to explain that there could be another accident if they raised the power all the way because of a problem with the pumps. The people didn't believe Jack and were starting to raise the power up again. When Jack saw what they were doing he grabbed the security officer's gun and forced everyone out of the control room. After he locked the door he lowered the power down to 75% so the pumps wouldn't break.   Ã‚  Ã‚  Ã‚  Ã‚  Jack agreed to have a one on one interview with Kimberly so the public would be warned. While the camera crew was on their way to do the live interview so was the S.W.A.T. team to get Jack out of the room. Also the people running the plant and who didn't believe Jack were up to something too. The operators were rerunning the wires to make a false accident that would distract Jack. The distraction would make it easier for the S.W.A.T. team to get inside the control room. The camera crew arrived and Kimberly went into the room where Jack was to do the interview. As soon as the interview started the operators tripped the alarm. Jack started to panic. The S.W.A.T. team broke in and shot Jack because he had a gun in his hand. The China Syndrome :: essays research papers The China Syndrome   Ã‚  Ã‚  Ã‚  Ã‚  The China Syndrome is about a nuclear power plant in Los Angeles, California. The Ventanna Nuclear Power Plant came close to the China Syndrome! A Channel 3 news reporter, Kimberly Wells, and her camera man, Richard Adams, captured an accident on film at the nuclear power plant that would have caused the China Syndrome. The China Syndrome could have killed off a place about the size of Pennsylvania. One of the head operators of the company, Jack Godell, talked to Kimberly Wells at a company gathering. Jack told Kimberly that there was just a turbine trip. Kimberly and her camera man went to Jack Godell's house and confronted him about the evidence. The camera man asked Jack to speak publicly about the accident. On the way to a Nuclear Power convention there was a car following Jack. Jack went to the Ventanna Nuclear Power Plant to hide from the people following him. After arriving, Jack went to the control room to find that the people running the plant were making a big mistake. He saw the people raising the power back up to 100%. He tried to explain that there could be another accident if they raised the power all the way because of a problem with the pumps. The people didn't believe Jack and were starting to raise the power up again. When Jack saw what they were doing he grabbed the security officer's gun and forced everyone out of the control room. After he locked the door he lowered the power down to 75% so the pumps wouldn't break.   Ã‚  Ã‚  Ã‚  Ã‚  Jack agreed to have a one on one interview with Kimberly so the public would be warned. While the camera crew was on their way to do the live interview so was the S.W.A.T. team to get Jack out of the room. Also the people running the plant and who didn't believe Jack were up to something too. The operators were rerunning the wires to make a false accident that would distract Jack. The distraction would make it easier for the S.W.A.T. team to get inside the control room. The camera crew arrived and Kimberly went into the room where Jack was to do the interview. As soon as the interview started the operators tripped the alarm. Jack started to panic. The S.W.A.T. team broke in and shot Jack because he had a gun in his hand.