Germany’s Violations of the Versailles Treaty Essay Example for Free

Germany’s Violations of the Versailles Treaty Essay Adolf Hitler rose to power after Germany was defeated in the First World War. There are a number of things that led Germany to be defeated in the war. For example, the British and French armies kept on advancing against Germany, the joining of the United States in the war which affected Germany greatly, the economy of Germany had already collapsed and people were starving and finally there were a lot of divisions in the army which rendered the army dis-united. After Germany was defeated in the First World War the victorious nations met in Paris where they agreed on various things and how they would deal with Germany. Under this treaty, Germany was given some conditions which it was expected to comply. For example, its army size was to be reduced to 100000 men, to accept to be responsible for the war outbreak and therefore to pay for damages that were caused by the war. These were called reparations and were to be divided amongst the victorious nations which included: Britain, French, Belgium and Italy. Hitler believed that if his army was not divided then, he could not have been defeated. He thought Germany was defeated because it was betrayed by the army but not because it was defeated by the Allies. Because of these reasons he violated the Versailles treaty by re arming. In this essay, I am going to discuss on the relationship between Germany’s aggression and her weapons or how arming his army led to the Second World War. Hitler was the leader of the Nazi party. He became a chancellor of Germany in 1933 and in 1934 he became its leader. He remained in power from that time until he committed suicide in 1945. Hitler used his oratorical skills, charisma and propagandas in putting hope to the population of Germany that had been traumatized by the war. Hitler started building up his army again increasing its size more than it was agreed. He revived the economy and also refused to accept that he was solely responsible for the First World War. He accepted only when he was promised another war by British and France. Those nations thought that by Germany paying the reparations, they could reverse their economic statuses which had been destroyed by the war but Germany refused to pay. The treaty of Versailles was signed on 28th June 1919 in the palace of Versailles near Paris. The victorious or the allied powers forced two Germans to accept the terms on behalf of the Germany. This treaty refused Germany to join the League of Nations. The territories it had conquered were taken by the allies and then shared amongst them. Germany was not allowed to have submarine and air force. The navy was to have only six war ships. Its army was limited to only 100000 men. Also Rhineland –an area of 50 miles wide was declared no man’s land or a buffer zone and Germany was not allowed to place its army there (Hoover A. J. ,1994) This treaty backfired because instead of making the world a better and safer place, it caused more problems and helped Hitler to ascend to power. Germany was not happy with those terms. They complained against its army size that it was vulnerable to attacks. It refused to pay the reparations giving the reason that its economy had been destroyed by the war, it was also bitter because it lost a tenth of its land to the victorious nations. Other nations even smaller than Germany were given free determination as opposed to Germany. The German in other states were not allowed to unite for example, the Australian Germans. They felt they were not to be blamed for the Russia was responsible. They also hated it because they were not allowed to be in the conference. This treaty created a political atmosphere for they blamed everything that went sour to the treaty and the lost war. Also whenever Hitler violated the Versailles treaty he shouted that ‘Germans have refused or want no more. He stated to them openly that he would do away with the oppressive treaty of Versailles. He promised to rearm and unite all Germans who were in other smaller nations. Germany was technical keeping to the terms but in real sense he was not. Hitler violated this treaty in many ways. For example in 1925 under the Locarno treaty he agreed that he would not cross the area bordering France, Belgium and the demilitarized Rhine land but on 7th March1936, Hitler violated this treaty by marching on to Rhineland. Britain and France complained but neither of them took action. In 1932 at a conference at Lausanne, Germany France and Britain signed a treaty to cancel the reparations that Germany was supposed to pay the allied powers. In 1935 Hitler introduced a compulsory military conscription thus mobilizing his army. These included the new navy and air force. Also in 1935 in appeasing Germany who had already started rearming himself, the treaty was violated again by allowing Germany to have submarines. This happened when Germany and Britain signed Anglo Germany Naval Agreement. In 1936, Hitler took the demilitarized territories especially in the Rhineland. In 1938, 12th March Germany entered Austria after gaining a lot mass support. On the following day, he conquered Austria and it became part of Germany. In 1938 Hitler wanted to break war unless he was allowed to take Sudetenland which was on its border. Also in the same year on September 29 the allied powers allowed Germany to take The Sedeten land and on 29th September 1938 they allowed Germany to move ahead but on condition that he would maintain world peace. At first Czechoslovakia refused but it was pressurized to accept that. In 1939 Hitler violated this treaty and occupied Czech province and Slovakia became independent. Later Hungary invaded and Czechoslovakia ceased to exist. In 1939 Hitler made demands on Poland because he wanted the Danzig province and be given a route for accessing it through the Polish Corridor. Since the time Hitler started to violate the treaty, the allies were trying to appease Germany but it proved that Germany’s desires were insatiable. Whenever he was allowed to take a section of its former colonies it insisted on all of it. When it gave an ultimatum to attack Poland, another war was promised by the allies to Germany and when he refused to bow down, he was attacked and the second war broke out in September 1939. There was a relationship between the way Hitler armed himself and the way he resulted to be aggressive. The more he equipped his army the more he became aggressive because he thought he would attack and defeat other nations. In his 2001 book Breuer says that Hitler armed himself more than before in terms of research and development. He even trained new crew members in the U-boat business. Something that was contrary to the treaty. The Germany’s military which had so many limitations after the First World War started developing new and most efficient tactics. They started using tanks and aircraft for the ground warfare. Germany also learned about more advanced ideas from British military scholars. In 1929 a German infantry officer was given the task of administering the German-Russian school which was located in Kazan. Its goal was to train Germans on how to operate tanks in Russia. Hitler was militarily creative and wanted the future war to be a totally different from the First World War (Breuer W. B. , 2001) It can be said that Hitler was sorely responsible for starting the war of 1939 because immediately he became the Chancellor of Germany in 1933 he began building up his army secretly. He also started compulsory army conscription. All these moves were against the Versailles treaty and although the allies were aware of this, they tried to appease Hitler so that he could help them fight against the spread of communism which had proved to be a big threat to them. They thought that by making Germany stronger, it would check the spread of communism. This policy of appeasement continued until Germany went as too far as to attack Poland (Weinberg G. , 1994) Hitler felt that he was fully prepared for the war because of the loyalty he received from his people plus the outstanding army he had built. He had a very potent army and his air force had become second to none in the whole world. He prepared his army with the new war strategy called blitzkrieg (lightning war) where by heavy ground armies were established and many war aircrafts accompanied these men who were highly mobile. This was a new strategy which had never been seen before. He believed that he was a great power in Europe and thus there was a need to strengthen his army. That is why in 1933 he ordered war planes to be increased to one thousand and army barracks were built. He even quit the Geneva conference after his plan of having his army to re-arm to the level of French or French to his level was refused. For the next two years his military might expand in secret and by 1935 march, he felt that he was prepared enough to arm his Nazi army publicly thus violating the Versailles treaty. As time went by, Germany had 300,000 army men and 2,500 war planes in Luftwaffe and Wehrmacht respectively. He ordered the army to be comprised of 550,000 men. In 1936, he repossessed the Rhineland, in 1938 he annexed Austria and in 1938 he demanded to be allowed to occupy Sudeten land at Munich. In 1939 he took over Bohemia and Monrovia and then made strident move to acquire back his territory –Danzig at the Polish Corridor. The attack he made on Poland is what led to the Second World War outbreak. To conclude this essay, we can say that Hitler idea of building up his army made him to feel that he was ready to face any other nation that appeared to be a threat to him. He assumed that no other nation especially the allied powers would dare attack him and that is why he went ahead to reclaim all the territories that had been taken from him and were now being administered by the victorious powers like France and Britain. If the Versailles treaty was not violated, perhaps then there could not have been a second world war. Reference: 1) Breurer W. B. ,( 2001) Deception of World War II, New York: John Wiley and Sons Inc 2) Hoover A. J. , God (1999) Britain and Hitler in World War II: the view of the British clergy, 1939-1945. Praeger publishers. 3) Weinberg G. L, (1994) A World at Arms: A global history of World War II, Cabridge, Cabridge University Press.

How Consumer Insight Are Shaping Companies in India Essay Example for Free

How Consumer Insight Are Shaping Companies in India Essay Customer is King is an adage that most companies across the globe have embraced. The need to concentrate on customers and be responsive to their demands has long been acknowledged by organizations. However, with globalisation and technological revolution the dynamics of business, the meaning of customer and market knowledge have all undergone a transformation. Today, the customer is the controlling factor in business and to be market-driven, an organisation has to evolve a culture that constantly listens to the customer, analyses competition and has strategies that meet existing, anticipated and even unanticipated needs of the customer. Going one step further, organizations must focus on customer relationship management which has given way to customer knowledge management. Given the international environment and knowledge economy, market and customer intelligence serves as a core competency and a principal source of competitive advantage. Leading by listening Practically every success story in today’s corporate realm reflects how awareness of customer needs shapes competitive business strategy. Let’s look at some examples. Procter Gamble When PG, the largest consumer goods company in the world, chose to offer its products to the lower income customer in developing countries, it had research teams associating with the poorest of homes for weeks. This gave the company valuable insights, which aided the company in creating a range of products that suited the pockets of this segment, enabling it to gain substantial market share. Amazon.com Amazon.com, the first e-retailer of books in the world, attained competitive advantage by emerging as book lovers’ forum where they could also share knowledge. It maintains customer knowledge through services such as book reviews, access to order histories and product recommendations based on preceding orders. Consequently, Amazon has recorded more than 70% repeat orders from its customers. Mahindra Mahindra Mahindra Mahindra’s SUV, Scorpio, has experienced enormous success in domestic and international markets. The positioning of Scorpio as an economy SUV was centered on the findings of extensive market visits and exploration of customer needs. The customer needs and wants ascertained were transformed into product specifications for Scorpio. Customer groups were consulted at every stage of design and product development. Scorpio was designated as the â€Å"Car of the Year† by ‘BBC on Wheels’ shortly after its launch. Indian Railways The amazing transformation of Indian Railways from what was termed as a white elephant to a profit making entity in less than two years has caught the attention of Indian and foreign academic and corporate establishments. This turnaround was not owing to any high-end technology but to a modest information means — the passenger feedback form. Data attained from these forms was analysed to identify customer expectations from the Railways. This was supported by a study of the best railways worldwide, and benchmarking with other transportations such as roadways and airlines. The outcome was a complete renovation of trains, stations and railway services to render them passenger-friendly. Needless to say, customers welcomed this change. The above examples highlight that it is vital to listen to customers for a success marketer-customer relationship, where the customer is not just a beneficiary, but a partner. Effective listening, together with strategic initiatives, can bring about a happily-ever-after end to this association.

Causes of Different Country Rates of Development

Causes of Different Country Rates of Development Kaitlyn Kanaly Guns, Germs, and Steel Summary In Guns, Germs, and Steel, Jared Diamond is trying to answer his friend, Yali’s, question. Yali asked Diamond in New Guinea, â€Å"Why is it that you white people developed so much cargo, but we black people had little cargo of our own?† (Diamond, 1998, p. 14). Yali was referring to all of the different advantages certain societies had that resulted in prosperous populations, while others failed. Diamond centers Guns, Germs, and Steel around answering Yali’s question. Throughout the semester, we were set out to define the â€Å"big idea† of each chapter individually. The first half of this book’s â€Å"big idea† is to show how food production, domesticating plants and animals, and most importantly, how geography itself are the main factors that determined which societies became more powerful than another. Diamond supports his thesis through evidence that he reveals in each chapter. Diamond’s search for an answer to Yali’s question started off by looking at the biology of when and how the first humans evolved. Then, he concentrated on more specific societies to further support his research. During his research, Diamond still could not explain why Eurasia became the most advanced continent even though Africa had a head start. What Diamond came to find out, however, is that a society is not successful because of the color of one’s skin or how intelligent one may or may not be, but it is the geography that allows a society to either flourish or diminish. To further defend his geographic explanation, Diamond suggests that the events that took place on the Chatham Islands was, in fact, due to a geographic stand point of the Maori and Moriori people. The technologically advanced Maori society successfully conquered the considerably weaker Moriori society. Further justifying this explanation, he points out that race could not have been a factor between these two groups because the two cultures had come from the same origin and were just separated within an unmindful time frame. Diamond also looked at factors, other than genetics, that determined the differences between the two societies. He then concluded that the Moriori were unable to provide an abundance of food due to the cold climate. The lack of food put the Moriori at a disadvantage because their society was significantly weaker than the Maori’s. Aside from the production of food, the Maori people were advanced in other areas that were not possible for the Moriori because o f their geographic location. Because the Moriori were isolated on an island, they did not have the means for communication with other people, and technological ideas were unable to spread to their society. Thus, only the Maori people were rich in food production, technology, and communication because of their geographic location. Geography also has had a major effect in which parts of the world developed food production over others. Areas such as deserts or high mountains are simply not suited for agriculture, while others may support some crops, but not others. Another factor is that there are only a limited number of plants suitable for domestication. According to Diamond, being able to successfully produce food was the start for societies to also develop of guns, germs, and steel. There are a few components that influenced the adoption of food production: the decline in wild foods, an increase in plants, the development of technology, and change in population density. With less wild food available, people did not have much of a choice but to grow their own. Technology also allowed food to be produced at a quicker pace. Acquiring an abundance of food meant that societies could reach a higher population density that would, in turn, lead to many more advantages. People were able to settle in one place because of farming, which allowed more complex and advanced food production. These more densely populated societies were able to create technology, invent writing, and became immune to epidemic diseases. All three of these remarkable factors is what Diamond found to be the reasons why one society was able to conquer another. Still, there were additional factors that Diamond set out to examine. Animals also played a key role in certain parts of the world developing quicker than others: the distribution of animals around the world was also a result of geography. Eurasia was home to the most domesticated mammals, which put the people there at an advantage. These domesticated animals not only helped as an additional food source, but also provided many other services for societies. Farming was completed much easier and at a quicker pace because animals were able to pull plows and also serve as fertilizer. Animal fur was used to keep warm, and the bones were converted into various handy tools. Diamond also analyzed the way plants, food, and ideas were able to spread from continent to continent. Food production spreads most easily if one is moving east to west, because plants and animals didn’t have to adapt to a drastic change like you would going north and south, as the climate will be either the same or similar going east or west as opposed to north and south. For example, because Eurasia is spread further east and west, it was almost effortless to haul crops and animals from one location to another, which made Eurasia more successful and subsequently advanced than other parts of the world. In conclusion, there are many reasons why certain societies prospered compared to others; and it all boils down to the geography of the land. Diamond proves that beneficial aspects of geography allows societies to effortlessly grow food than others. On the other hand, there are also geographical explanations as to why food production failed in some parts of the world. Diamond confidently insists that it does not matter who is smarter than who, but rather, that the most prosperous society was blessed by the more dominant environment. In essence, those who lived in more fertile areas had a much greater chance of success. Reflection I strongly believe that Diamond does an amazing job at dissecting how and why certain continents prevailed over others. He manages to go into detail, but not too much detail that would confuse his readers. I like the fact that he keeps his findings slightly broad because it makes the story line easier to follow. The way he presents how geography plays such a major role in history is extremely powerful and intriguing. There are many critics, however, who do not agree with Diamond’s message that geography is the ultimate factor for advanced continents, rather than racial or intelligence reasons. For example, York and Mancus are more concerned with the social aspects that contributed to the rise of certain continents over others. As quoted from the Human Ecology Review: His position would be strengthened if he more fully recognized that different types of societies have different internal dynamics, and that each era has its own particular processes and contradictions (York Mancus, 2007, p. 160). I think that this is too critical of an opinion for Diamond’s work. I do not think that Diamond intended his book to be overly specific, but rather a more broad, overall explanation of how and why the world evolved the way it did. Another critic focuses on the chapter in Diamond’s book where latitude is discussed. James Blaut, a geography professor, suggests that Diamond supplies â€Å"hardly an explanation† of the development and westward spread of technology and food. According to The Geographical Review: His description fails to mention that diffusion eastward and southward from the Near East via the Indian Ocean, and southward from China through the South China Sea, was as important and as easy, as was diffusion west-ward (Blaut, 1999, p. 400). I agree with this critic that Diamond should have explored all options for the spread of technology and food before he had stated that east-west movement was the easiest way to do it successfully. However, I do not recall Diamond saying that east-west diffusion was the one and only way. Although there are critics that do not fully agree with everything that Diamond has found in his research in Guns, Germs, and Steel, I think that this book is exceptionally educational. The book has an outstanding story line that is easy to follow and is packed with intriguing information that truly gets you thinking. I can’t wait to finish the rest of the book to see what else Diamond has to say about the establishment of our world. Sources Blaut, J. M. (1999). ENVIRONMENTALISM AND EUROCENTRISM.Geographical Review,89(3), 391. Diamond, J. (1998).Guns, Germs, and Steel. New York: W.W. Norton Company. York, R., Mancus, P. (2007). Human Ecology Review. Diamond in the Rough: Reflections on Guns, Germs, Steel, 14(2). http:/www.humanecologyreview.org/pastissues/her142/yorkandmancus.pdf

The Destructive Power of Peer Pressure Essay examples -- Peer Pressure

Peer pressure: influence from members of one's peer group. Peer pressure is an incredibly widespread issue in today’s society, and can have many significant and long lasting effects. Peer pressure is an issue that can be found in many places, with many varying degrees, but often happens for the same reasons. Peer pressure can cause drug and alcohol addictions, being caught shoplifting, failing exams, and other problems. It has many causes, with many contributing factors, but is most prevalent during the teenage years, as teens look beyond the guidance of their parents, and seek answers from their peers. Peer pressure most commonly occurs at parties, where parental supervision is minimal, however indirect peer pressure can be experienced anywhere. The purpose of this report is to provide an overview of the topic, as well as the causes and related effects. The report will cover the types of peer pressure, who is affected, who are the offenders, why do they offend, where does it happen, what can happen, how can it be solved, and why it is so hard to control. Peer pressure is a very widespread issue, manifesting itself in two main forms, direct and indirect. While direct peer pressure is more forceful, and harder to combat, it is also less prevalent than indirect peer pressure. In some instances both forms of peer pressure can be found in the same situation. Direct peer pressure is pressure exerted when directly asked or told to do something, and is more forceful, harder to deflect, and often requires a response or excuse. Direct peer pressure generally involves things such as drugs, alcohol, cigarettes, and decisions regarding sex. This form of peer pressure can have many significantly life changing long-term effects. I... ...(2013). Peer Pressure. [online] Retrieved from: http://www.aacap.org/AACAP/Families_and_Youth/Facts_for_Families/Facts_for_Families_Pages/Peer_Pressure_104.aspx [Accessed: 10 Nov 2013]. Ianrpubs.unl.edu (2013). Publication: Friendships, Peer Influence and Peer Pressure During the Teen Years. [online] Retrieved from: http://ianrpubs.unl.edu/pages/publicationD.jsp?publicationId=837 [Accessed: 10 Nov 2013]. Sitemaker.umich.edu (2013). UM.SiteMaker: Message. [online] Retrieved from: http://sitemaker.umich.edu/356.darnell/peer_pressurehttp://sitemaker.umich.edu/356.darnell/peer_pressure [Accessed: 10 Nov 2013]. Stewart, G., Larsen, A. and Wynne, E. (1989). Peer pressure. New York: Crestwood House. Us.reachout.com (2013). Peer pressure : The Facts : ReachOut.com USA. [online] Retrieved from: http://us.reachout.com/facts/factsheet/peer-pressure [Accessed: 10 Nov 2013].

Women in World War II :: World War II History

Women in World War II When the war across seas broke out in 1939 Canada was called to the front as a part of the British Empire. Canada's work force was now severely depleted. Everyone remembers the prestigious men and women of Canada for their effort in the war helping the Allied side defeat the German enemy. We must remember though that the soldiers were not a self sufficient army, navy, and air force but rather part of the larger war machine that was Canada. When Canadians think of the war they must remember the country that stood behind our soldiers in Europe. As Canadians we must especially remember the women who stayed home and were major contributors to holding together the labour force. As well their volunteering in society helped push Canada through the War. By temporarily assuming non-traditional roles in the labour force and in society, Canadian women became an important part of the war effort from 1939-1945. In 1939 the war broke out in Europe. Canada was still fighting the struggle to rebuild their economy from the depression of the 1930's . A great number of Canadian Women were affected both directly and indirectly. As more then a million of our full time service men and Militia went across seas to fight the war many women were left home alone with no husband's, son's, brother's or any other male relatives . The Depression sported more the 900,000 Canadians out of work, and 20 per cent of these were women . The Military Recruitment and the new war industry put an end to the Depression, and the widespread unemployment that accompanied it. By 1941 the population of women in the labour force had already jumped by 100,000. The employment of women was now highly evident in almost all of Canada . It is obvious now in retrospect that for the most part the Second World War divided Canada's men and women. But to fully understand this we have to first know why men and women, in most aspects of the war, were given this sexual division. We must also get a good scope of what was accepted and expected of men and women before the war broke out. From the first natives in Canada to the industrializing society of today men and women have had different gender roles in society. These have reflected the norms, values, and beliefs of our culture that have been in Canada as long as the "white man" has.

Pushing Kids to the Limit Essay -- Essays Papers

Pushing Kids to the Limit Children today seem to be involved in many activities outside of school. A number of children may play soccer, swim, play an instrument, and help out around the house while at the same time trying to succeed academically. In many cases, the vast number of sports played by these children is due to the parent’s encouragement, or enforcement. Some parents may enforce after school activities in order to keep their children away from the â€Å"evils of society†: drugs, alcohol, and simply loitering and causing trouble. Unfortunately, at times, the pressure from the parents can have negative effects on the children academically and/or socially. Some reasons that parents push their kids so much, could be the small possibility of a college scholarship or money for the child in the future, keeping their children off the street, or the chance that the parents are living vicariously through their child’s sports glory. Title IX is a law that requires high schools and colleges to give the same amount of money to both girls and boys sports in an attempt to make the genders equal. However, instead of simply equalizing the two sides, this law provides more scholarships for women because they are still competing in fewer sports than men. This will usually peak the parent’s interest, making them believe that there are plenty of scholarships out there for their daughters. Unfortunately this is not exactly true. As Lester Munson, an associate editor at Sports Illustrated, explains it (in an article by Brendan Tierney), â€Å"This is the theory that many parents have that if they start their child young enough, and work him or her hard enough, that he or she will get a college scholarship or become a professional athle... ...fast. Yes, get children involved in sports and activities. In the long run it will pay off, but please, keep it all in perspective. Works Cited - Shields, David Light. â€Å"Another View: The reality of Olympic dreams for children.† 2002. (November 5, 2002). - â€Å"Study show athletes among heaviest college drinkers.† May 7, 1998. Shawnee News Star. (November 16, 2002). - Tierney, Brendan. â€Å"How to Become a Better Sports Parent.† September 18, 2002. (November 3, 2002). - â€Å"Vacation or Training Day? Shanghai Parents Shaping Their Children.† July 23, 2002. Shanghai Star. (November 17, 2002).

Economic Impact Of The Development Of Airline Industry Essay

Hardly many inventions can manage to change the way people live and also how they experience the world like the way inventing airplane has done. The airline industry offer air transport for passengers. The airlines companies own the airplanes or may lease them. Airlines Company differs in terms of capacity, some are smaller with one or two airplanes to transport mail and cargo, while other are big multinational companies with hundreds of aircrafts. Majority of airlines are privately owned, though some are government owned. Today, the air travel has grown to an extent that no one can imagine life without it. Air travelling as greatly reduced travelling time and opened up links all over the world. Economic Impact of the development of airline The air airline industry has played a major role in world economic growth; it has improved the mobility and facilitated world supply lines all over the world. The aviation industry not only serves as an economic tool for nations and cities, but also servers as a vital network for transport within the world. The industry creates jobs by providing them directly and also by creating opportunities in the travel and hotel industry. Aviation industry has continued to be critical in the world economy, in terms of creating these job opportunities, and the industry has employed thousands of employees in the whole world. And has the industry continue to grow more jobs are created. This leads to economic growth. Transport plays a major role in making sure that goods reach their destinations. The World Bank estimates that the airline industry contributes to a total of 5% economic growth in the world. Competition Competition in the industry can be traced back when most governments deregulated the industry I order allow competition among the industry to regulate fares. For many years now this resulted in low fares as the airline industry responded to customers needs. Most of the reduced fare also comes from new players on the market, and also from the big airlines themselves. With the growth of economy in many countries, more travellers are using the air, this id due to the fact that the fares have also been reducing gradually. In a report carried out in America by the senate, it was found out that competition has resulted into low fares, and from 1990 the traffic has gone up by over 33%, it was found out that the number of flights had also gone up to over 20%. This of course has a positive impact on economic growth. Competition in the industry has also lead to mergers as small companies fail to compete. This has improved the industry service delivery. It is important to note better service delivery has economic advantage. With the economic development being witnessed in many countries, the amount of travelling has gone up. Many people are travelling to transact their business. The high demand of air passengers has caused resource constraints, on airports and also on airways, especially during the peak travelling periods. Business community usually travels at these times and normally makes last minute bookings. However, main airlines have planned their networks to be able to meet the high rate flight requirement by the business passengers, though; these fares are expensive as the airlines need to cover cost of servicing high number flight. Nevertheless, airline competition and the way they price their tickets causes concerned. It has been noted that, with the emerging of low fare trends that have been occurring since 1996, when smaller airlines enter into this market with low fares, the major airlines drastically reduce their prices. And also avail a high number of low fare seats. This behaviour seems to be ill intended because it aims at repressing competition from the smaller airlines. Increase in fuel prices Oil and fuel prices have continuously increased for the past 10 years, for example, in 2001 the price per barrel was $20, yet in 2006 it had reached $75. The increase in price can be attributed to various such as, high demand of oil, collapse of Yukos Oil Company in Russia and political instability in the Middle East. This high increase in oil prices has affected the aviation industry. The increase in fuel prices has lead to reduction in the global trade. It is estimated that about 40% of goods traded on the world market are transported by the air, and cargo traffic is used to reflect economic growth. Fuel account for 20-30% of the total cost of operation expenses of the airline industry. Due to this high cost in oil the economy has suffered negatively. The microeconomic effect for those countries which import oil will be harsh, in the industry high prices is a big problem; the companies are forced to increase consumers’ fares to upset the fuel price increase, for example if fuel price reached 100$ per barrel, then a gallon of jet fuel will be more than 3$. This will imply that a passenger will have to pay 50$ more to travel than previous. This will result in reduction of passengers and for the case of cargo transporters it may lead to high reduction in demand of their services, which may spell down for the airline companies. The indirect impact on the airline industry caused by high fuel prices in the increase in airline products prices. The overall impact is reduction in international trade. As pointed out by the world trade organisation , increase in oil prices leads to low economic growth as it was observed in 2005. Terrorist threat Since the September 11 terrorist attack, the airline industry suffered so much, the industry experience a reduced number of passengers as many opted to use alternative means. The economic impact on the global level was immerse, has many countries experienced low foreign exchange due reduced business especially in tourism industry. The terrorist attack had a big effect on the aviation industry, and also on the economy. In America alone, more than 2 million passengers travel on air daily. Airline industry and tourism alone account for mote than 8% the world GDP. With the imminent threat of terrorism, the industry has undertaken different security measures. For example in America, the industry has to use over 11$ billion in security improvements. This costs at the end of the day have to be met by the passengers, thus, the fare in the industry have steadily gone up. This has reduced the volume of goods and passengers using the industry and negatively affected the economy. Any small distractions in the industry send shock waves in many other industries. Currently, the industry has experienced a trend by which they are weak economy, insecurity fear and other issues. This has led to reduced number of passengers flying. Even those passengers who are flying they are paying less because most of them are taking economy seats. This trend has resulted in decline of the growth of the industry. In decline in the industry usually result in reduction of economy growth of the world economy. After the September 11 many airline companies grounded their business due to security concerns this was so pronounced in America. The impact of the attack reverberated all over the world. It was estimated that the attack caused a reduction of 1% world economic growth. In this area of global economy the aviation industry all over the world suffered. The industry saw an increase in costs of airline insurance, increased expenses on security, and customer fear to travel using the air due to insecurity. This led to massive losses for the industry in the whole world. This was the worst disaster the industry had suffered in the past 50 years. In whole world more than 400,000 jobs were lost. Decline in the air travel has a direct consequence on number of business which includes tourism, travel agencies and entertainment spots, this is felt global. It is important to note that, in the continuous threat of terrorist, the world economy has been affected badly. The industry had to go through lean times and some companies had to shut down. Conclusion The airline industry is very important in economic development, the airline employees a lot of people directly and indirectly. The industry has developed steadily over the last 50 years, and has continuous grown. Competition, fuel increase and terrorist attack pose a serious challenge to the industry and the industry should come up with ways to controlling these effects to maintain profitable. However, the airline industry will continue to grow though, it will be faced with more challenges.