Running Head: Genetically Altered Organisms  1 Genetically Altered Organisms  8 Regulations on Genetically Altered Organisms Juanita Johnson ENG 215: Research and Writing Professor Danny Meadows November 27, 2016 The use of genetically modified organisms (GMO’s) has been the center of many debates in recent years. While GMO’s have the potential to do great things, concerns arise over the risk involved. The United States (U.S.) is the largest grower of GM crops in the world, but unlike many other countries, there are no federal regulations on how we deal with genetically altered plants and animals. Federal laws are already in place that protects consumers by requiring that companies correctly label foods. I believe GMO’s should be included on food labels as well. Furthermore, many of our citizens do not know that GMO’s are already being used in our food. Putting all legalities aside, not informing people that they are purchasing GMO’s has an unethical air to it. There is no need to take away people’s choice in the matter by keeping them in the dark. Whether for or against GMO’s, at the very least, people should be able to make their own educated decisions about the foods they consume. When I found out that GMO’s have been used in our foods for many years, I was angry and outraged. I felt like a guinea pig in a science experiment, unknowingly a participant in determining what side effects GMO’s may or may not have on people. I was asking myself “Where was I when these decisions were made?” I wasn’t exactly sure what a genetically modified organism entailed, and that was a major cause of my frustrations. At the time, “genetically modified” sounded like some crazy science experiment done to food. Not an appetizing term at all. Regardless of whether or not GMO’s are labeled, it is best to educate yourself as to what they are. Closely related species can crossbreed, or have genes exchanged that create a plant that has traits of both parent species. When you genetically alter an organism, you are taking genes from one species and inserting it into an entirely different species. An example would be a study where a cow’s milk-producing genes were added into pigs DNA, in addition to genes that would help piglets digest the milk. But some crazy scientist had to take it a little further. There was a Chinese experiment done where jellyfish genes were inserted into pig DNA, and the result was glow in the dark piglets (Bodeen, 2008). Experiments like this seem very unnecessary. Conversely, GM foods do in fact have many valuable benefits, such as increasing farming yields, vaccination by food, and even growing food in places that usually cannot support crops. There are so many countries in the world who's people suffer because the land cannot support crops. Vaccination by food has the potential to help millions and millions of people. Genetic engineering can improve the quality and life of a plant by allowing i ...

1. Running Head: Genetically Altered Organisms
1
Genetically Altered Organisms
8
Regulations on Genetically Altered Organisms
Juanita Johnson
ENG 215: Research and Writing
Professor Danny Meadows
November 27, 2016
The use of genetically modified organisms (GMO’s) has been
the center of many debates in recent years. While GMO’s have
the potential to do great things, concerns arise over the risk
involved. The United States (U.S.) is the largest grower of GM
crops in the world, but unlike many other countries, there are no
federal regulations on how we deal with genetically altered
plants and animals. Federal laws are already in place that
protects consumers by requiring that companies correctly label
foods. I believe GMO’s should be included on food labels as
well. Furthermore, many of our citizens do not know that
GMO’s are already being used in our food. Putting all legalities

2. aside, not informing people that they are purchasing GMO’s has
an unethical air to it. There is no need to take away people’s
choice in the matter by keeping them in the dark. Whether for or
against GMO’s, at the very least, people should be able to make
their own educated decisions about the foods they consume.
When I found out that GMO’s have been used in our foods for
many years, I was angry and outraged. I felt like a guinea pig in
a science experiment, unknowingly a participant in determining
what side effects GMO’s may or may not have on people. I was
asking myself “Where was I when these decisions were made?”
I wasn’t exactly sure what a genetically modified organism
entailed, and that was a major cause of my frustrations. At the
time, “genetically modified” sounded like some crazy science
experiment done to food. Not an appetizing term at all.
Regardless of whether or not GMO’s are labeled, it is best to
educate yourself as to what they are. Closely related species can
crossbreed, or have genes exchanged that create a plant that has
traits of both parent species. When you genetically alter an
organism, you are taking genes from one species and inserting it
into an entirely different species. An example would be a study
where a cow’s milk-producing genes were added into pigs DNA,
in addition to genes that would help piglets digest the milk. But
some crazy scientist had to take it a little further. There was a
Chinese experiment done where jellyfish genes were inserted
into pig DNA, and the result was glow in the dark piglets
(Bodeen, 2008). Experiments like this seem very unnecessary.
Conversely, GM foods do in fact have many valuable benefits,
such as increasing farming yields, vaccination by food, and
even growing food in places that usually cannot support crops.
There are so many countries in the world who's people suffer
because the land cannot support crops. Vaccination by food has
the potential to help millions and millions of people. Genetic
engineering can improve the quality and life of a plant by
allowing it to last longer on shelves, withstand weather
fluctuations, and have added nutrients (Murnaghan, 2016). But
at what health and environmental cost are benefits reaped?

3. As a result of genetic alteration, the New Leaf potato classified
as a pesticide by the Environmental Protection Agency (EPA).
This potato plant was genetically modified to create Bt toxin to
kill insects that fed on it. The Bt toxin, detected in such high
amounts, was not considered a food by the Food and Drug
Administration (FDA), and therefore was classified as a
pesticide (Thornton). Concerns over GM plants like these cross-
pollinating with nearby crops, toxic runoff, and harm or
extinction to other beneficial insects is high. One insect in the
ecosystem has the possibility of affecting many another
organisms. What are the effects of eating animals that feed on
GMO's? What are the long-term effects of directly consuming
GMO's? Many speculate that the increase in allergies in our
country is due to the introduction of GMO's in our food supply.
This statement may have some truth to it. Last month my
daughter's school would not allow me to bring cupcakes in for
her birthday, "too many allergies nowadays" is what they told
me. I could not believe it. Speaking with coworkers, this is a
policy that many schools have adopted over recent years. There
are many speculations that industrial agriculture’s dependence
on chemical fertilizers, pesticides and antibiotics to manage
animals and agroecosystems, has led to ecological, social and
human health crises (Vidal, 2016). Until further studies are
complete, consumers can only be sure that they are buying Non-
GMO foods by purchasing organic labeled foods. Foods labeled
as organic cannot come from GM seeds or be meat that has fed
on GM foods.
Organic farming, the primary ecological (eco) farming type, and
its standards are recognized worldwide. It aims to produce food
while establishing an ecological balance to prevent soil fertility
or pest problems. Organic agriculture takes a proactive
approach as opposed to treating problems after they emerge. In
many countries, it is called ‘biological’ farming. Biological
Farming is an approach to food and fiber production that
respects the natural processes in the farm or garden ecosystem
to yield top quality products, provide a viable living for the

4. producer, and sustain long-term productivity. Using biological
farming, we can reap the best of both worlds. We can create a
safe and healthy way to produce food with minimal harm to the
environment as well as increase yields and improve quality.
The first advantage of eco-farming better soil. Better soil
creates healthier more nutritious food. Soil building practices
such as crop rotations, intercropping, symbiotic associations,
cover crops, organic fertilizers and minimum tillage are central
to organic practices. These encourage soil fauna and flora,
improve soil formation and structure and create more stable
systems. In turn, nutrient and energy cycling is increased, and
the retentive abilities of the soil for nutrients and water are
enhanced, compensating for the non-use of mineral fertilizers
(Food and Agriculture Organization of the United Nations,
2016). Not only does organic farming build healthy soil, but
organic fields have more topsoil than chemically treated fields,
therefore, a reduced amount of erosion.
Another advantage is biodiversity. Greater biodiversity on a
farm equates to a more stable and resilient farm that can stand
up to inclement weather, pests, and disease. A diverse
combination of plants and animals optimize nutrient and energy
cycling for agricultural production and create suitable habitats
for wildlife. The frequent use of under-utilized species (often as
rotation crops to build soil fertility) reduces erosion of
agrobiodiversity, creating a healthier gene pool - the basis for
future adaptation (Food and Agriculture Organization of the
United Nations, 2016). Organic farming encourages birds and
other animals to live on farmland, which aids in natural pest
control. Additionally, organic farm animals are exposed to
clean, chemical free grazing that helps keep them healthy and
resistant to sickness, which in turn makes them more
productive.
Runoff from non-organic farms, such as harmful pesticides,
toxic fertilizers, and animal waste has been a huge concern
facing the water supply, and a contaminated water supply
affects us all. While GM crops were created to be resistant to

5. pesticides, weeds in these crops are resistant as well which in
turn causes farmers to use even more pesticides than
conventional crops. Pesticide exposure in industrial farming
systems has been linked to a possible range of human health
problems such as Alzheimer’s disease, birth defects, cancers
and developmental disorders. Additionally, the preventative use
of antibiotics in industrial animal production systems has
exacerbated the problem of bacterial resistance to antibiotics,
creating health risks for human populations (Vidal, 2016).
These types of pesticides are forbidden in organic farming.
Organic agriculture uses organic fertilizers (i.e. compost,
animal manure, green manure) as well as soil building
techniques and biodiversity to combat runoff. Biological
systems as such conserve water, have better nutrient retention,
and a significantly reduced risk of groundwater pollution.
Most people fear what they don’t know. And this topic falls
right in line with this belief. Laws need to change in this
country on how we deal with genetically altering plants and
animals. At the very least to inform our citizens, so they have a
choice of what they are eating. Many will welcome a longer
shelf life with their food or artificially added nutrients,
especially at lower prices. Genetically modified foods may be a
better choice for them. Others may want to steer clear of them
all together and choose organic foods instead; as they may be
more health conscious. Hopefully, more detailed studies will be
concluded for the long term effects of consuming GMO's and
will help decide if genetically modified foods indeed are safe to
introduce into the market and environment or if other avenues
would be just as productive and healthier for us all.

6. References
Acosta, L. (2015, June 9). Restrictions on Genetically Modified
Organisms: United States. Library of Congress. Retrieved
November 07, 2016, from
https://www.loc.gov/law/help/restrictions-on-gmos/usa.php
Baranski, M. (2015). What is Ecological Farming? Retrieved
November 26, 2016, from http://www.nefg-
organic.org/ecological-farming/
Bodeen, C. (2008, January 9). Glowing Pig Passes Genes to
Piglets. National Geographic. Retrieved November 07, 2016,
from http://news.nationalgeographic.com/news/2008/01/080109-
pig-glow.html
Murnaghan, I. (2016, October 19). “Fact Sheet: Pros vs. Cons.”
Genetically Modified Foods. Retrieved October 23, 2016, from
http://www.geneticallymodifiedfoods.co.uk/fact-sheet-pros-vs-
cons.html
Thornton, M. (n.d.). The Rise and Fall of NewLeaf Potatoes.
Retrieved from
http://nabc.cals.cornell.edu/Publications/Reports/nabc_15/15_7_
2_Thornton.pdf
Vidal, J. (2016). A switch to ecological farming will benefit
health and environment – report. Retrieved November 26, 2016,
from https://www.theguardian.com/environment/2016/jun/02/a-
switch-to-ecological-farming-will-benefit-health-and-
environment-report

7. “Genetic Engineering.” (n.d.). The Grace Communications
Foundation. Retrieved October 23, 2016, from
http://www.sustainabletable.org/264/genetic-engineering
Genetically Modified Foods. (2013, July 15) Lear.Genetics:
Genetic Science Learning Center. Retrieved October 20, 2016,
from http://learn.genetics.utah.edu/content/science/gmfoods/
“Labeling Around the World.” (n.d.). Just Label It. Retrieved
October 23, 2016, from http://www.justlabelit.org/right-to-
know-center/labeling-around-the-world/
What are the environmental benefits of organic agriculture?
(n.d.). Food and Agriculture Organization of the United
Nations. Retrieved November 26, 2016, from
http://www.fao.org/organicag/oa-faq/oa-faq6/en/
1. Using any website like the Wall Street Journal or the
Economist.com, obtain quotes for foreign exchange rates
for the Yen versus the US dollar, and answer the following
questions (6 points)
a) What is the spot exchange rate for the US dollar vis-à-vis the
yen?
b) Suppose one year ago, the spot exchange rate for the yen was
¥100/$. Comparing that to today's quote, has
the Japanese yen appreciated or depreciated?
c) Suppose you export 100,000,000 (100 million) yen worth of

8. goods to Japan today (what is that worth at
Monday’s spot rate?) But your buyer will make the payment
only 90 days from now. Suppose further that the
buyer will make the payment in Japanese yen only.
now, turns out to be ¥100/$. How many
dollars will you get 90 days from now?
now, turns out to be ¥120/$. How many
dollars will you get 90 days from now?
not like this exchange rate uncertainty. Is
there anything you could do to get rid of the uncertainty?
2. Two countries, Britain and the U.S. produce just one good,
beef. Suppose that the price of beef in U.K. is £2.80
per pound, and in US, it is $3.70 per pound. (6 points)
(a) What should the $/£ spot exchange rate be, according to PPP
theory?
(b) Suppose that the price of beef is expected to rise to £3.10 in
the U.K. and to $4.65 in the US by the same
time next year. What should the one year forward $/£ exchange
rate?
(c) Given your answers to parts (a) and (b), and given that
current interest rate in U.K. is 10%, what would you

9. expect current U.S. interest rates to be?
3. Consider a Mexican firm that knits sweaters for sale to a U.S.
department store. The firm incurs total costs of 16
pesos/sweater, and sells the sweaters to the department store for
$5 per sweater. The exchange rate is 4 pesos/$.
a) What is the firm’s markup per sweater as a percentage of
revenues? (1 point)
b) If the peso is devalued 20%, what is the new value of the
peso? (1 point)
c) If the firm keeps dollar prices constant and peso costs
constant, what is the markup per sweater as a
percentage of revenue after the devaluation? (2 points)
d) If the firm decides to keep the gross margin per sweater
constant (at 20%), would sales expand or decline?
Why? What would the new dollar price be after devaluation? (2
points)
4. Suppose GM is considering buying a plant in Hungary. All
sales will be to Hungarian customers and
denominated in forints. The projected returns and investments
are as follows:

10. n forints
a) What is the total investment in dollars? (1 point)
b) Once the plant is up and running, what is the annual
percentage return on investment? (1 point)
c) If the forint is devalued 25%, what is the new exchange rate?
(1 point)
d) If this 25% devaluation was made after the purchase and
additional investment were completed, what is the
new ROI? (1 point)
e) Instead of selling to the Hungarian market only, suppose all
sales were exports, priced in hard currency ($),
yielding the same 4.5 billion forints earnings (at the original
300 forints/$ exchange rate.) If the 25%
devaluation now occurred, what would happen to the plant’s
profit margins? (2 points)
5. Is the US trade deficit always a bad thing? Many current US
politicians including our incoming President

11. advocate forcing China to strengthen its Yuan in order to help
reduce the US trade deficit. Based on the readings
in the course and your own analysis, is this a good strategy?
Would it work? Why or why not? (4 points)
6. Suppose that a decade ago, the Japanese yen stood at 120
Yen/$; Today, 10 years later, the Japanese yen is
trading at 100 Yen/$. Consider the case of the heavy earth-
moving equipment industry, consisting of essentially
two major players globally, US-based Caterpillar and Japan-
based Komatsu.
a. What has happened to the Japanese Yen and how does it
affect the relative competitive positions of
Caterpillar and Komatsu? Explain your answer clearly.
b. How should this affect the strategic behavior of the two
firms? You may wish to answer this question first
from the short-term perspective, and then from the long-term
perspective. (4 points)
7. Please see attached article from this week’s NY Times and
comment analytically on three aspects
a. Do you agree with the fundamental premise of the article
b. Based on the readings in your text, how should firms and
investors respond generally to these events
c. Relevant to your current or past experience in any specific
industry, how will your firm be affected. (4

12. points)
8. Your textbook and one of the readings describes how culture
and language add to the costs of doing international
business. Pick your current or previous company and pick any
country other than the United States to evaluate
how the specific dimensions of culture identified in your
readings will affect the cost of doing business in that
country. Be precise about how the differences in culture
between the home firm and the host firm will influence
this cost. You can choose any four dimensions of culture
described in your book. (4 points)