Monday, January 27, 2020

Purpose of Economics and Price Mechanisms

Purpose of Economics and Price Mechanisms Task 1 Describe ‘economics’, the purpose of its activities and identify economic problem. Economic system is a system aim for producing, distributing and consuming goods and services. It includes the combination of the various institutions, agencies, consumers, entities that comprise the economic structure of a given society or community. Furthermore, it also includes how these agencies and institutions are related to each other, how information flows between them and the social relations within the system which including property rights and the structure of management. The mode of production will be the related concept. Every economic system provides solutions to four questions: what goods and services will be produced; how they will be produced; for whom they will be produced; and how they will be allocated between consumption (for present use) and investment (for future use). In a devolved economic system, these questions are resolved. This lead to economic coordination to achieved through the price mechanism(Elton, 2014). The basic economic problem is about scarcity and choice since there are only a limited amount of resources available to produce the unlimited amount of goods and services which human, people wants and needs. Because of scarcity, various economic decisions must be made to allocate resources efficiently. Resources A resource is a means of support also can be regarded as any feature of our environment that helps to support our well being. There are three main types of resource: The first Physical or natural resource – such as oil, climate, water, minerals, forests and fisheries. The second human resource – peoples and their various skills. The third man made resources – e.g. machines, equipments. Scarcity Scarcity can be broken down into four key ingredients of factors of production: Land – Land includes all natural resources. Labour – Labour includes all physical and mental effort. Capital – Capital includes machinery and other items that go into further production. Enterprise – enterprise is the art of combining the other three factors in the production process. Scarce goods and services As notes above, if did not exist, all goods and services would be free. A good is considered scarce if it has a non-zero cost to consume costs something and is scarce. By consuming one good, another good is foregone. Therefore decisions and trade-offs to be made.(T.Ming, 2014,) The cost of a food is a signal of its scarcity. One good maybe more scare than another, either because of limited resources or higher want (demand) for that good. Choice Because resources are scarce and most of our wants are extensive, a choice has to be made about how to use scare resources in the best way. Based on the choice, the highest-value option will be forgone and this is called ‘opportunity cost’. This rule applies to organisations, society as a whole, and to individuals. Choice and opportunity cost Choice and opportunity cost are two fundamental concepts in economics. Given that resources are limited, producers and consumers have to make choices between competing alternatives. All economic decisions involve making choices. Individuals must choose how best to use their skill and effort, firms must choose how best to use their workers and machinery, and governments must choose how to use taxpayer’s money. Making an economic choice creates a sacrifice because alternatives must be given up, which results in the loss of benefit that the alternative would have provided. Similarly, land and other resources, which have been used to build a new school could have been used to build a new factory. The loss of thenext bestoption represents the real sacrifice and is referred to asopportunity cost. The opportunity cost of choosing the school is the loss of the factory, and what could have been produced. It is necessary to appreciate that opportunity cost relates to the loss of the next best alternative, and not just any alternative. The true cost of any decision is always the closest option not chosen. (Bong, 2014) Define the theory of ‘price mechanism’ by Adam Smith and illustrate by examples(s) to supports yours answer with relevant issues. Adam Smith is one of the Founding Fathers of economics described the â€Å"invisible hand of the price mechanism† in which the hidden-hand of the market operating in a competitive market through the pursuit of self-interest allocated resources in society’s best interest. It was the notion of the invisible hand that enabled Adam Smith to develop the first comprehensive theory of the economy as an interrelated social system. (Tay, 2014) In common, the concept is composed of three logical steps: The first is the observation that human action often leads to consequences that were unintended and unforeseen by the actors. The second step is the argument that the sum of these unintended consequences over a large number of individuals or over a long period of time may, given the right circumstances, result in an order that is understandable to the human mind and appears as if it were the product of some intelligent planner. The third and final step is the judgments that the overall order is beneficial to the participants in the order in ways that they did not intend but nevertheless find desirable. The price mechanism performs three main functions: Rationing The aim is to ration scare resources when demand in market outstrips supply. When there is a shortage of a good, the price is bid up, leaving only those with the willingness and ability to pay to purchase the product. This can causes supply and demand to reach equilibrium of demand and supply. Signaling function They adjust to demonstrate where resources are required or not, via a change in demand. For example, the price of goods which are scarce will increase. This increase in price should provide an incentive for producers to increase production of the good so that can meet the demand. Transmission of preferences Consumers are able to alert producers to changes the nature in wants and needs through their choices so that the market provides the right amount of the right goods. When demand is weaker, then the supply will contracts as the producers cut back on output. Task 2 Identify factors affecting the economics of an organization. There are few types of competition in business. They are perfect competition, imperfect competition, and monopolistic competition. Perfect competition It is a low barrier to entry, many choices by consumers, and no business has supremacy. It means that many companies competing and nobody has a substantial lead. For examples, restaurants, grocery stores, barbers shop, shopping mall, professional services such as dentist, doctor, contractor and others. It is a theoretical state in which not only single buyer or seller has influence over the any products sold in the market. Sellers are free to enter the market to sell any product and buyers are free to purchase any product wanted. A large number of producers and sellers operate in the perfect competitive market, and the products sold by one producer are easily replaced by a similar product from another producer. Prices for goods or services would be established by the rate in majority of consumers are willing to pay and producers will adjusting the productivity to balance with the price. (ReemHeakal, 2014) Imperfect competition It describes a market where many firms offer variations of the same product or multiple products are offered with differences. The difference may be differs in quality, preference, durability, price or utility. However, firm will be forced to departure the market if their products are not purchase by consumers. For example, a hair style cutting may be assisted by more than numbers of barber shops which all differing in style, price and environment. Consumers are bound only by personal preference and affordability in choosing a barber shop. (Hans, 2014) Monopolistic competition The sellers feel they do have some competition. There is one big company dominating the market with a few medium or smaller sized companies. Identify source of finance. Source of finance Some sources of finance areshort termand must be paid back within a year. Other sources of finance arelong termand can be paid back over many years. Venture capital provides long-term, dedicated share capital to help unquoted companies grow and succeed. Obtaining venture capital is significantly different from raising debt or a loan from a lender. The lenders have a legal right to interest on a loan and repayment of the capital depends on the business weather success or failure. Venture capital is the money put into an enterprise which may all be lost if the enterprise fails. A businessman starting up a new business will invest venture capital of his own, but he will probably need extra funding from other source, and can be very successful if he gets very high profits and a substantial return on the investment. However, there must be a very high risk of losing the investment and it will take some times to get the return and profits. A venture capitalist will require a high expected rate of return on investments, to recompense for the high risk. Internal sourcesof finance are funds found inside the business. For example, profits can be kept back to finance expansion. Alternatively the business can sell assets that are no longer really needed to free up cash. Internal Sources of finance and growth It defined as organic growth which is the growth generated through the development and expansion of the business itself. An organic growth can be achieved through generating increasing sales which increase income to influence on overall profit levels. Besides that, it can be used of retained profit which used to reinvest in the business. Other than that, the company also can sale their asset which can be a double edged sword so that it can reduce the capacity. External sourcesof finance are found outside the business, eg fromcreditorsor banks. External Sources of finance and growth This can be categorizing into 3 groups which are long term, short term, and inorganic growth. Long term may be paid back after many years or not to be paid. Short term is used to cover variations in cash flow. The growth which generated by gaining is used to define inorganic growth. In long term, there are shares and loans can be practice. Long term There are few types of shares in long term shares which are ordinary shares, preference shares, new share issues, rights issue and bonus or scrip issue. Ordinary shares (Equities) Ordinary shareholders have the voting to rights in making any decision for company’s benefits. The dividend can be differing according to their contribution and share capital. Last to be paid back in event of collapse. They share the price varies with trade on stock exchange. Preference share The shareholders will be paid before ordinary shareholders. They have the fixed in return. It is cumulative preference shareholders which have the right to dividend carried over to next year in event of non-payment. Rights issue The present shareholders are given discount on buying new shares.Bonus or scrip issue- It is the change to the share structure which increase number of shares and reduces value but market capitalization will remain the same.There are few types of loan in long term loan which are Debentures, bank loans and mortgages, merchant or investment banks, and government. Debentures It has the fixed in rate of return which first to be paid.Bank loans and mortgages- It is suitable for small to medium sized of corporation where property or some other asset acts as security for the loan. Merchant or Investment Banks It act depends on clients to organize and underwrite raising finance. Short term There are some categories in 5 groups including bank loans, overdraft facilities, trade credit, factoring and leasing. Bank loans It has the necessity of paying interest on the payment. The periods of payment is generally from one year then not longer than ten years. Overdraft facilities It is the right to be able to withdraw funds that do not currently have. It provides flexibility for a firm. The interest only paid on the amount been overdrawn. There is an overdraft limit which is the maximum amount allowed to be drawn. Trade credit It can help the ease of cash flow which commonly can be paid within 90 days. Factoring It is about the sale of debt to a specialist firm who secures payment and charges a commission for the services. Leasing The used of capital can be secure without the ownership. It is effectively a hire agreement. Inorganic growth It is about achievement. The components to gain the external finance of inorganic growth are merger and also takeover. Merger The Company agrees to join together which both can remain some of the identity form. Takeover The firm will be secure control by the other, the firm taken over most probability will lose its identity. Task 3 Identify and describe types of financing sources which available for the said projects. On my opinion, this company should base on medium and long terms sources of finance. Medium term sources are usually repaid between 1 – 5 years. Some sources of finance areshort termand must be paid back within a year. Short term sources are repaid within one tear. Other sources of finance arelong termand can be paid back over many years. Long term sources are usually repaid between 5 – 20 years. Medium term Hire purchase:It involves purchasing an asset paying for it over a period of time. Usually a percentage of the price is paid as down payment and the rest is paid in installments for the period of time agreed upon. The business has to pay an interest on these installments. Leasing:Leasing involves using an asset, but the ownership does not pass to the user. Business can lease a building or machinery and a periodic payment is made as rent, till the time the business uses the assets. The business does not need to purchase the asset. Advantage Disadvantage The business can benefit from the asset without purchasing it. Usually the maintenance of the asset is done by the leasing firm. The total cost of leasing may end up higher than the purchasing of asset Medium term loans:The business borrows an agreed amount, which is advanced at the start of the loan. A repayment schedule between one and five years is agreed. Interest is charged in line with general interest rates and the category of the borrower is taken into consideration. The business will normally have to provide security for the loan but, with the cash raised, they can avail of cash discounts when buying assets. Leasing:This form of finance allows a business to use an asset without having to raise the full price. In essence, the business rents the asset from a financial institution. The advantage to the business is that it allows the business claim a tax deduction for the full leasing payments over the life of the lease. The downside is that the asset is not owned unless the business decides to buy out the lease. Leasing is appropriate for IT equipment, which may have to be changed every two to three years Long term Ordinary sharesmay be issued to finance a major expansion such as the building of a factory overseas. The board of directors must convince the existing shareholders or attract investors to subscribe to the new issue. The shareholders will expect a dividend and a capital gain on their investment. The proposed expansion must therefore be profitable or else the investors will be disappointed. Retained earningsare profits, which are ploughed back into the business to create growth. This form of finance is suitable for organic growth as the pace of the expansion can be matched to the funds available. The shareholders have to give up some or all of their dividends but, if growth is a success, the value of their shares will increase. Long-term loansare borrowed from financial institutions and must be repaid with interest within five to twenty years. If repayments can be met, borrowing allows the business to grow without introducing any new owners who would have a share of all future profits. Dunes Stores, one of Irelands leading retail chains, remains a private company and does not look for shareholder funds when expanding. Instead it uses borrowings and retained earnings. This means that a small family group retain absolute control of the business. Venture capitala special type of financial institution has been formed to help firms grow. Venture capital companies provide money for a limited period of time, usually in the form of a minority equity stake. It is hoped that at the end of this time the company will have grown large enough to achieve a stock exchange quotation. This allows the venture capital company to sell its shares for a large profit. Propose a financing source which is suitable for given project. Justify the reason of the chosen option. Some sources of finance are medium term and must be paid back within 5 – 10 years. Other sources of finance arelong termand can be paid back over many years. Long term sources are usually repaid between 5 – 20 years. Long term The term venture capital is more specifically associated with putting money, usually in return for an equity stake, into a new business, a management buy-out or a major expansion scheme. The institution that puts in the money recognizes the gamble inherent in the funding. There is a serious risk of losing the entire investment, and it might take a long time before any profits and returns materialize. But there is also the prospect of very high profits and a substantial return on the investment. A venture capitalist will require a high expected rate of return on investments, to compensate for the high risk. A venture capital organization will not want to retain its investment in a business indefinitely, and when it considers putting money into a business venture, it will also consider its exit, that is, how it will be able to pull out of the business eventually and realize its profits. Examples of venture capital organizations are: Merchant Bank of Central Africa Ltd and Anglo American Corporation Services Ltd. When a companys directors look for help from a venture capital institution, they must recognize that: The institution will want an equity stake in the company. It will need convincing that the company can be successful. It may want to have a representative appointed to the companys board, to look after its interests. The directors of the company must then contact venture capital organisations, to try and find one or more which would be willing to offer finance. A venture capital organisation will only give funds to a company that it believes can succeed, and before it will make any definite offer, it will want from the company management: A business plan Details of how much finance is needed and how it will be used The most recent trading figures of the company, a balance sheet, a cash flowforecast A profit forecast Details of the management team, with evidence of a wide range of management skills Details of major shareholders Details of the companys current banking arrangements and any other sources of finance Any sales literature or publicity material that the company has issued. A high percentage of requests for venture capital are rejected on an initial screening, and only a small percentage of all requests survive both this screening and further investigation and result in actual investments. 1

Sunday, January 19, 2020

Poduct Life Cycle

Note:- Company has stopped manufacturing this model. The Rajdoot Deluxe has a powerful 175 cc, 9 BHP engine with electronic ignition. This tough and highly durable motorcycle has making it a total economy bike by virtue of its low running costs, easy serviceability and high re-sale value. WiWith over 16 lakh bikes on the road, Rajdoot continues to be the favourite of the Indian masses. Its relevant technology for the Indian road condition makes it suitable for all types of terrain.The Rajdoot Deluxe with 4-gear transmission for excellent riding comes in exciting colours with chrome plated mudguard and is the favorite so far. | TECHNICAL SPECIFICATIONS OF RAJDOOT DELUXE| Engine| Type| 2 Stroke| Displacement| 173cc| Bore x stroke| 61. 5x58mm| Max. Power| 9/5000 rpm| Max. torque| 1. 37/3500 rpm | Starting | Kick start| Transmission| 4 speed, const. mesh| Clutch | Wet, multi disc| Chassis| Frame| Double cradle| Tyres – Front| 3. 00Ãâ€"19-4PR| Tyres – Rear| 3. 0x19-4PR| Sus pension – Front| Telescopic Hydraulic | Suspension – Rear| Hydraulic Coil Spring| Fuel tank capacity| 9. 2| Dry weight| 114. 0| Dimensions| LxWxH| 2095x760x1115| Ground clearence| 175| Wheelbase| 1280| Electricals| System| 12 AC| Ignition| Electronic CDI| Source: http://www. yamaha-motor-india. com/| Ads by GoogleProduct Lifecycle Control Software to manage the entire product lifecycle and data. www. softexpert. com/product-controlStart your own businessIn Computer Education industry Join hands with Aptech www. aptech-education. comPresenting Mahindra e2o The Next Gen Electric Car The Future Of Mobility Is Here www. mahindrae2o. com/know-more| Two Wheeler Showroom  » Motorcycles  » Scooters  » Scooterettes/Mopeds  » Sports Bikes Browse by Capacity Two Wheelers by Brands http://topforeignstocks. com/foreign-adrs-list/the-full-list-of-indianadrs/ http://www. indiainfoline. com/MarketStatistics/ADR http://www. equitymaster. com/stockquotes/adr. asp

Saturday, January 11, 2020

Are Filipinos Ready for Globalization? Essay

Globalization deeply affects the values and structure of Philippine society. The State has a responsibility of protecting its citizenry and environment to the possible effects of it. Globalization is not the cure-all answer for our economic woes. There are more things to life than a competitive market or liberalization. It does automatically lead to economic growth, much less societal development and progress. There are other dimensions and considerations in the development of a nation. There needs to be a societal framework and a set of institutions to ensure the appropriate and justified working of an open market economy. Economic performance is heavily dependent on the vitality of institutions outside the economy – the institutions of political, cultural, and social life as well as institutions that ensure the integrity of nature. The economy dies if society around it dies. Markets are important but they need the support of the appropriate institutions to function properly and effectively. A vibrant culture and a just polity are essential for an efficient economy. The Philippine Agenda 21 is the unique response of the country to global challenges. It embarked on a threefolding stakeholdership as a means to achieve a more compassionate economy within the context of sustainable development. This participatory activity involves the civil society representing culture, government representing polity and business representing the economy. This development approaches have more chances of working since the development perspective encompasses all dimension of society. In order to fully participate in globalization without sacrificing national interest and patrimony, the State must address the five goal elements of PA 21 namely, poverty reduction, social equity, empowerment and good governance, peace and solidarity and ecological integrity. Globalization brings fears to the Filipino workers. The fall of protectionism and other barriers to trade contribute much to the uncertainties that workers face today. The State has a vital role in developing the skills and improving the welfare of the Filipino workers for them to face globalization squarely. He must have the necessary training and equipment to protect him against the dislocations and uncertainties emerging from globalization. Meanwhile, rather than toe the line of rich nations pursuing globalization as a way out of their economic crisis or stagnation, the government can curb landlessness, joblessness and homelessness instead. Protecting national patrimony, pursuing genuine land reform and developing basic industries are among the best alternatives to take for now. The greatest challenge posed against the country in this whole globalization phenomena is keeping the solid of identity of Filipinos. More than the basic needs, it is primary that the Philippines be wary of the whole system of globalization which seems bent on eating up what is left of the country. In these times when the trend is outward looking, it is important for us to keep our eyes on what is here and what must be done here now. The interest of the Filipinos above all must be our priority. When we have done our duty to each and every Filipino, then we are ready and capable to face global challenges. The key to a competitive future lies in working for and engaging in an integrated community and working aggressively to make ourselves a dynamic and productive economy in our own right. We must band together and integrate our efforts to prove our worth to our neighboring countries. We, as a country must prove itself equal to the challenge of global competition. Perhaps, I am quite pessimistic about this whole globalization thing as I feel we have burned many times over by the domination of the Western world. A part of me could sense that globalization is another form of Western conquer in disguise. But then, I also know that globalization is inevitable and our country escaping the trend of globalization is even more inevitable. I am amazed by the fact that today, a whole realm of information is right at every person’s fingertips. If we look through history, power and authority took many forms. At first, power lies with he who has the land. Eventually, he who has the political position has the authority. He who manages most of the resources was regarded as the most powerful. Today, it is a battle of who holds the most and right information at the right time. And the battle for information takes on many dimensions. I guess this is one phase of globalization that continues to enthrall me. And in this world of information, I see Filipinos positioning themselves as brilliant instruments of technology. It is undeniable that in every country is a Filipino community. It is my pride that in the ICT industry, Filipinos are one of the premiere service providers. With this as our strength, maybe capitalizing on our human resources can be the answer to addressing the negative travails of globalization. With a Filipino in every corner of the world, who really knows how we can go in changing the world? The Chinese have done it. Every Chinese community in every country is regarded as a thriving community. Maybe we can do the same. As globalization is inevitable, Filipinos must find ways on how to adapt to the new system and still make a mark, not leaving behind the Filipino identity.

Thursday, January 2, 2020

Biography of Thomas Gage, British Army General

Thomas Gage (March 10, 1718 or 1719–April 2, 1787) was a British Army general who commanded troops during the beginning of the American Revolution. Prior to this, he served as the colonial governor of Massachusetts Bay. In 1775, he was replaced as the British military commander-in-chief by General William Howe. Fast Facts: Thomas Gage Known For: Gage commanded British Army forces during the early stages of the American Revolution.Born: March 10, 1718 or 1719 in Firle, EnglandParents: Thomas Gage and Benedicta Maria Teresa HallDied: April 2, 1787 in London, EnglandEducation: Westminster SchoolSpouse: Margaret Kemble Gage (m. 1758)Children: Henry Gage, William Gage, Charlotte Gage, Louisa Gage, Marion Gage, Harriet Gage, John Gage, Emily Gage Early Life The second son of the 1st Viscount Gage and Benedicta Maria Teresa Hall, Thomas Gage was born in Firle, England, in 1718 or 1719. At the Westminster School, he became friends with John Burgoyne, Richard Howe, and the future Lord George Germain. Gage developed a fierce attachment to the Anglican Church and a deep distaste for Roman Catholicism. After leaving school, he joined the British Army as an ensign and commenced recruiting duties in Yorkshire. Flanders and Scotland In 1741, Gage purchased a commission as a lieutenant in the 1st Northampton Regiment.  The following year, in May 1742, he transferred to Battereaus Foot Regiment with the rank of captain-lieutenant. In 1743, Gage was promoted to captain and joined the Earl of Albemarles staff as an aide-de-camp in Flanders for service during the War of the Austrian Succession. With Albemarle, Gage saw action during the Duke of Cumberlands defeat at the Battle of Fontenoy. Shortly thereafter, he, along with the bulk of Cumberlands army, returned to Britain to deal with the Jacobite Rising of 1745. Gage served in Scotland during the Culloden campaign. Peacetime After campaigning with Albemarle in the Low Countries from 1747 to 1748, Gage was able to purchase a commission as a major. After moving to Colonel John Lees 55th Regiment of Foot, Gage began a long friendship with future American general Charles Lee. A member of Whites Club in London, he proved popular with his peers and cultivated important political connections. With the 55th, Gage proved himself an able leader and was promoted to lieutenant colonel in 1751. Two years later, he mounted a campaign for Parliament but was defeated in the election of April 1754. After remaining in Britain another year, Gage and his regiment, re-designated the 44th, was sent to North America in to take part in General Edward Braddocks campaign against Fort Duquesne during the French and Indian War. Service in America Braddocks army moved slowly as it sought to cut a road through the wilderness. On July 9, 1755, the British column neared its target from the southeast with Gage leading vanguard. Spotting a mixed force of French and Native Americans, his men initiated the Battle of the Monongahela. The engagement quickly went against the British and in several hours of fighting, Braddock was killed and his army routed. In the course of the battle, the commander of the 44th, Colonel Peter Halkett, was killed and Gage was slightly wounded. Following the battle, Captain Robert Orme accused Gage of poor field tactics. While the accusations were dismissed, it prevented Gage from receiving permanent command of the 44th. In the course of the campaign, he became acquainted with George Washington and the two men stayed in contact for several years after the battle. After a role in a failed expedition along the Mohawk River intended to resupply Fort Oswego, Gage was sent to Halifax, Nova Scotia, to take part in an abortive attempt against the French fortress of Louisbourg. There, he received permission to raise a regiment of light infantry for service in North America. New York Frontier Promoted to colonel in December 1757, Gage spent the winter in New Jersey recruiting for his new unit. On July 7, 1758, Gage led his new command against Fort Ticonderoga as part of Major General James Abercrombies failed attempt to capture the fortress. Slightly wounded in the attack, Gage, with some assistance from his brother Lord Gage, was able to secure promotion to brigadier general. In New York City, Gage met with Jeffery Amherst, the new British commander-in-chief in America. While in the city, he married Margaret Kemble on December 8, 1758. The following month, Gage was appointed to command Albany and its surrounding posts. Montreal Amherst gave Gage command of British forces on Lake Ontario with orders to capture Fort La Galette and Montreal. Concerned that expected reinforcements from Fort Duquesne had not arrived, Gage suggested reinforcing Niagara and Oswego instead while Amherst and Major General James Wolfe moved into Canada. This lack of aggression was noted by Amherst and when the attack on Montreal was launched, Gage was placed in command of the rear guard. Following the citys capture in 1760, Gage was installed as military governor. Though he disliked Catholics and Native Americans, he proved an able administrator. Commander-in-Chief In 1761, Gage was promoted to major general and two years later returned to New York as acting commander-in-chief. The appointment was made official on November 16, 1764. As the new commander-in-chief in America, Gage inherited a Native American uprising known as Pontiacs Rebellion. Though he sent out expeditions to deal with the Native Americans, he also pursued diplomatic solutions to the conflict as well. After two years of sporadic fighting, a peace treaty was signed in July 1766. At the same time, however, tensions were rising in the colonies due to a variety of taxes imposed by London. Revolution Approaches In response to the outcry raised against the 1765 Stamp Act, Gage began recalling troops from the frontier and concentrating them in coastal cities, particularly New York. To accommodate his men, Parliament passed the Quartering Act (1765), which allowed troops to be housed in private residences. With the passage of the 1767 Townshend Acts, the focus of resistance shifted north to Boston, and Gage responded by sending troops to that city. On March 5, 1770, the situation came to a head with the Boston Massacre. After being taunted, British troops fired into a crowd, killing five civilians.  Gages understanding of the underlying issues evolved during this time.  Initially thinking the unrest to be the work of a small number of elites, he later came to believe that the problem was the result of democracy in colonial governments. In 1772, Gage requested a leave of absence and returned to England the following year. He missed the Boston Tea Party (December 16, 1773) and the outcry in response to the Intolerable Acts. Having proven himself an able administrator, Gage was appointed to replace Thomas Hutchinson as governor of Massachusetts on April 2, 1774. Gage was initially well received, as Bostonians were happy to be rid of Hutchinson. His popularity quickly began to decline, though, as he moved to implement the Intolerable Acts. With tensions increasing, Gage began a series of raids in September to seize colonial munitions. While an early raid on Somerville, Massachusetts, was successful, it touched off the Powder Alarm, which saw thousands of colonial militiamen mobilize and move toward Boston.  Though later dispersed, the event had an impact on Gage. Concerned about not escalating the situation, Gage did not attempt to quash groups such as the Sons of Liberty and was criticized by his own men for being too lenient as a result. In April 1775, Gage ordered 700 men to march to Concord to capture colonial powder and guns. On the way, active fighting began at Lexington and was continued at Concord. Though British troops were able to clear each town, they sustained heavy casualties during their march back to Boston. Following the fighting at Lexington and Concord, Gage found himself besieged in Boston by a growing colonial army. Concerned that his wife, a colonial by birth, was aiding the enemy, Gage sent her away to England. Reinforced in May by 4,500 men under Major General William Howe, Gage began planning a breakout. This was thwarted in June when colonial forces fortified Breeds Hill north of the city. In the resulting Battle of Bunker Hill, Gages men were able to capture the heights but sustained over 1,000 casualties in the process. That October, Gage was recalled to England and Howe was given temporary command of the British forces in America. Death In England, Gage reported to Lord George Germain, now the Secretary of State of the American Colonies, that a large army would be necessary to defeat the Americans and that foreign troops would need to be hired. In April 1776, a command was permanently given to Howe and Gage was placed on the inactive list. He remained in semi-retirement until April 1781, when Amherst called upon him to raise troops to resist a possible French invasion. Promoted to general on November 20, 1782, Gage saw little active service and died at the Isle of Portland on April 2, 1787. Legacy Gage was survived by his wife and five children. His son Henry went on to become a British Army officer and member of Parliament, while his son William became a commander in the British Navy. The Canadian village of Gagetown was named after him.