Currency Crisis Cause and Resolution

Currency Crisis

Currency crises are rapid and unpredictable decline in the value of the currency of a nation. The crises are often more severe if the country involved uses a fixed exchange rate than if the country has a flexible exchange rate since the monetary authority will be forced to abandon the fixed rate. Currency crises usually increase by selling pressure of a currency and can only be remedied through devaluation or establishing a new exchange rate at a sufficiently depreciated level. Several countries have experienced currency crises which are caused by different factors. One of the most severe currency crisis occurred in Mexico between 1994 and 1995. The crises led to huge massive economic crises that forced the Mexican government to seek assistance from the United States and the International Monetary Fund (IMF) (Carbaugh, 2016). The essay herein will, therefore, examine the sources of currency crises in Mexico and the specific resolution and also including some other countries that have experienced currency crisis such as Russia and Turkey.

Mexico Currency Crisis (1994-1995)

Before the 1994 Mexico currency crises, the central bank of Mexico maintained the value of peso within a depreciated band of four percent every year against the U.S. dollar. In 1994, the Central bank decided to issue debt that is linked to the US dollar as a way to reduce interest rates on debts. The debts kept rising until it exceeded the central bank’s falling foreign exchange reserves which led to the currency crises. Despite the government responding by devaluing the currency by 15 percent, the crises continued until 1995. The continued selling pressure on the currency forced the monetary authorities to withdraw support in foreign exchange markets as foreign reserves of the Bank of Mexico fell. Although the severity of the Mexican currency crisis in 1994 was unprecedented, Mexico’s history on exchange rate policy has been characterized by the duration of both fixed exchange rate and flexible exchange rates (Ötker et al., 1995). The devaluation registered by Mexico is the largest depreciation of the currency of a country within one year.

When the currency crises occurred, there was little information about the possibility of its occurrence. The crises were somehow similar to the debt crisis that occurred between 1982 and 1983. Several assessments have been conducted to establish the main cause of the situation, and most of them reveal that it was contributed by the exchange rate policy of Mexican monetary authorities. The other cause identified through the assessment is the excessive use of short maturity tesobonos for deficit financing. Tesobonos is a peso-dominated bond which is issued by the government of Mexico and the coupons associated with it are indexed to the United States dollar. The Mexican government issued the tesobonos as a way to convince the international investors to buy Mexican debt that is exempted from risks associated with currency exchange. The investors are therefore immune to the effects of changes in the dollar value of the peso between the period of purchase and redemption. The risk associated with the change of currency is therefore carried by the Mexican government and not the investors. For instance, if the value of peso depreciated during the period of purchase and redemption, the Mexican government and the taxpayers would be liable for the losses.

According to the international economic statistics that were available before the crises, the Mexican government had the chance to evade the crises if the monetary authorities had information about the actual state of Mexican reserves. At the beginning of 1994, the Mexican reserves were at around $25 billion, but towards the ends of the year, the reserves had reduced to about $5 billion (Tavlas, 1997). The existing reserves were insufficient to meet the existing financial obligations. Furthermore, a default was considered to be a perilous move for the stability of the international financial markets. The deficit, therefore, led to the currency crisis. The International Monetary Fund (IMF) failed to provide the Mexican authorities with information about the decline in the reserves. Following the crisis, the IMF has resolved to closely monitor the financial reserves of developing countries to avert the occurrence of a currency crisis. The IMF has also resorted to providing early warning indicators to avoid the occurrence of a currency crisis in any nation.

Currency Crisis
Currency Crisis

Mexico has a great deal of the forms of direct capital investment in 1994, but it was not sufficient. The government was receiving massive amounts of money through stock-brokers who were motivated by the quick returns which were about 20 percent annually. The investment bankers and the stock-brokers were ready to exit Mexico as soon as the crisis begun thereby increasing the magnitude of economic damage. The troubles of Mexico extended from insufficient reserves, inability to service the debts, and incapability to generate profits on the equity capital. The crises also contributed to other social and political problems such as the Chiaspas rebellion at the beginning of 1994 (Tavlas, 1997). The political issues made the foreign investors take their money out of Mexico thereby broadening the implications of the crisis. The implications of the crises forced the Mexican government to seek assistance from the International Monetary Fund and the United States government.

According to Gil-Diaz (1998), the currency crisis in Mexico was contributed by the execution of the privation of the public enterprises and the deregulation of the Mexican banking sector. He concluded that the confiscation of the banking sector followed by subsequent privatization in 1991-1992 is the cause of the currency crisis. The Mexican monetary authorities made the deregulation of the banking sector without due consideration about the implications that it would have on the federal reserves. The decision later resulted in an increase in unpaid debts to the banks. The currency was then triggered by the Mexican government in 1994 because of the economic decisions. The crisis was determined by the fragility of the banking system and not the macroeconomic factors as indicators by other researchers. Three years before the crisis, the Mexican peso was overvalued which also resulted in economic pressure. The monetary policy that was passed by the Mexican authorities was inappropriate because the Federal Reserve was raising the interest rate while the Bank of Mexico maintained the existing rates. It, therefore, made the investors leave increasing pressure on the reserves.

The Mexican currency crisis had a regional effect through a contagion in various markets such as Brazil, Argentina, Asia, and Thailand; the effect was referred to as the “Tequila effect.” The crisis affected both the stock market and the foreign exchange market. Only the countries that had high economic fundamentals were exempted from the effects of the crisis. The Mexican government responded to the adverse situation by requesting for loans from different countries and international bodies among them being the United States, the International Monetary Fund, and the Bank for International Settlements. In the end, Mexican government managed to secure a loan totaling to $50billion that was used to meet the financial obligations. However, the move by the government to ask for loans received criticism from some of the European authorities that considered the move to be a moral hazard.

The Mexican government continued to resolve the crisis by implementing a severe adjustment program. Some of the strategies in the program included reducing the public spending, increasing the value added tax from 10 percent to 15 percent, and raising the prices of all the public goods and services. The program worsened the situation in Mexico as the Gross Domestic Product dropped by 6.5 percent and inflation increased by 50 percent. Furthermore, the banking system collapsed thereby forcing the government to use public funds in the rescue. The government also changed the exchange rate from fixed to flexible. Later, a law was passed that would only allow the government budget to be approved if the deficit is zero to prevent further lending. The initiative had positive implications in the GDP because of the increased exports of products to the United States. Through the Banking Fund for the Protection of Savings, the government was able to bail out the banking system that had collapsed.  Years later, the government decided to sell the Mexican banks to the international financial groups. Presently, there is only one Mexican bank as foreign investors own the rest.

One of the international institutions that played a role in rescuing Mexico was the International Monetary Fund. The IMF is responsible for providing loans to nations that are in financial deficit. The loans are usually issued following an agreement between the nation and IMF. The IMF responded to the crisis by providing a loan to the Mexican government through the U.S Treasury as a way to protect the foreign banks and other existing financial institutions. The various government also played a vital role in rescuing the currency crisis among them being the United States and Canada. The U.S. has had a long outstanding relationship with Mexico, and it is also the largest trading partner. Although the Federal Service Bank contributed to the crisis by increasing the interest rate, the United States assisted the Mexican government with loans to end the crisis. On the other hand, Canadian government through the North American Framework Agreement (NAFA) contributed funds beyond what had been collected at the time of occurrence of the crisis.

Russia Currency Crisis (1998)

Russia was severely hit by a currency crisis in 1998 that left both the economic and financial system in crisis. According to Gerry & Li (2002), the financial crisis begun in August 1997 when the Russian government defaulted on its domestic financial and economic systems. The duration was characterized by an increase in inflation, high levels of unemployment, and shanking of the economy. Although the crisis lasted for a short period, Russian who was living in the urban areas were severely hit. Globalization and uncontrolled speculation in the financial markets is one of the leading contributors to a currency crisis in the developing countries. The rise in the amount of capital that is flowing in the international financial systems as a result of globalization has had negative impacts on the economies of different countries. The crisis is caused by failures of certain sectors of the economy in the countries involved which later spreads to other countries through contagion and spill-over effects. For instance, the Asian currency crisis spread through contagion and spillovers to other countries such as Thailand in 1997 and later to Russia in 1998. Therefore, Asia is one of the causes of the Russian crisis although research shows that there is a little linkage between the crises that hit the two countries.

The Russian crisis can also be attributed to both political and economic factors. The Russian government triggered the crisis by selling the GKOs and OFZs which denominated debt instruments and coupon bonds after the fall of USSR. The Russian government then started experiencing problems that had negative implications on both the financial and the economic systems. The Russian government responded by converting the Ruble dominated instruments into US dollar-dominated Eurobonds to alleviate the risks involved. The Russian government continued borrowing from external sources that later raised concerns of its default exposure as foreign investors decided to cut their connection with the Russian debt, equity, and commodity market because of lack of confidence. The withdrawal of investors from Russia economy reduced the government capability to finance the debts thereby causing a currency crisis. According to the reports provided by the Economic Intelligence Unit (1998) in 1998, 30 percent of the Russian expenditure was used to service the short-term debts that the government had secured from other governments and international institutions. Therefore, high levels of debts are one of the causes of a currency crisis in Russia.

Russian Currency crisis was also caused nu the fall in the value of the Rule, weak banking system, and the reduction in the level of the foreign reserves. The Russian government tried to remedy the situation through the Central Bank by pegging the Russian Ruble to the US dollar with a narrow band. Several other studies have been conducted to establish the causes of the Russian financial crisis which had serious consequences to the economic and financial systems of other countries such as Turkey, Ukraine, and Moldova. The devaluation of the Russian Ruble also had negative implications on the Russia banks regarding assets and liabilities. There was also a reduction in the foreign exchange contracts because of the increase in the value of liabilities. Furthermore, the Russian government debts such as bonds and treasury bills that were used assets were reduced to worthless assets because of the defaults. As a result, most banks were closed which made a majority of the Russians to lose their savings. Lastly, the crisis caused political fallouts and frequent demonstrations of workers who were demanding a pay rise (Margolin, 2000).

The Russian currency crisis was resolved after intervention by the International Monetary Fund (IMF) which has the mandate of monitoring the economic and development policies enacted by various nations. The other responsibilities of the international body are to lend money to countries that are experiencing financial challenges and provision of technical assistance regarding research and training to countries that are in need. The IMF intervened in the Russian crisis by lending money that would help the government to escape the financial collapse. Despite the IMF lending money to the Russian government, the situation was already out of control since the money could only be used to take care of the short-term debts but not offer a permanent solution to the difficult situation.

For a country to survive a financial crisis, it requires a plan for the aid to be used in a manner that will help escape the situation. It is an excellent idea for the international body to issue financial aid, but the Russian government was not prepared to use the funds to evade the crisis. The government had lost control of the situation, and therefore it required more than financial aid to help the situations. The Russian government responded by coming up with a plan that would ensure the crisis does not happen again. The funds issued by the IMF were used in rescuing the banking system which plays a vital role in maintaining economic growth in a nation.

Conclusion

A currency crisis is one of the challenges that has been experienced by several countries especially the developing countries. Among the countries that have been affected by currency crisis include Mexico between 1994 and 1995, Russia in 1998, and Thailand in 1997. The crisis has severe implications on the economic and financial systems of an economy. The causes of the crisis vary from one nation to another, for instance, the crisis in Mexico was caused by reducing the level of Federal Reserve while excessive borrowing caused the Russian crisis. Once the countries are caught in such difficult situations, it the responsibility of the international bodies and other government to assist in escaping the situation. International Monetary Fund played a vital role in helping the above-discussed countries escape the harsh implication of currency crisis. The United States and Canada through the North American Framework Agreement (NAFA) assisted Mexico financial aid in helping rescue the situation.

References

Carbaugh, R. (2016). International Economics. Boston, MA: Cengage Learning.

Economist Intelligence Unit (1998). Russia: Country Report. London. pp. 42.

Gery, C. J. & Li, C. A. 2002. Vulnerability to welfare change during economic shocks: evidence from the 1998 Russian Crisis. Working Paper. University of Essex, Department of Economics, Discussion Papers.

Gil-Díaz, F. (1998). The Origin of Mexico’s 1994 Financial Crisis. Cato Journal, 17 (3), pp. 303-313.

Margolin, R. (2000). The Russian Financial Crisis: from craze to crash. The Stern Journal, New York University.

Ötker, I., Pazarbaşioğlu, C., International Monetary Fund, & International Monetary Fund. (1995). Speculative attacks and currency crisis: The Mexican experience. Washington, D.C.: International Monetary Fund, Treasurer’s Dept. and Monetary and Exchange Affairs Dept.

Tavlas, G. S. (1997). The Collapse of Exchange Rate Regimes: Causes, Consequences and Policy Responses. Boston, MA: Springer US.

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Did you find any useful knowledge relating to currency crises in this post? What are the key facts that grabbed your attention? Let us know in the comments. Thank you.

Brand Management Reputation Marketing

Reputation and Brand Management

Title: Reputation and Brand Management. In the recent years, some companies have been paying little attention to managing their reputations. Although the image of some companies is at risk, they do not see the risk posed by the loss of reputation (Issacharoff & Rave 2013). The BP oil spill accident was one of the largest environmental crises to happen in the recent times because it affected both the marine life and the human sector (Issacharoff & Rave 2013). Although this accident may not have affected the company directly in terms of financial performance, it lost part of its reputation. The company spent a lot of money on restoring the undermined image, although its efforts were not largely successful. The reputation of BP was made even worse by the responses given by the CEO Tony Hayward (Economist, 2018). In particular, the CEO tried to shift blame to other parties without taking full responsibility and making the necessary efforts to curb the situation.

Despite some of the bad remarks made by Hayward, when the accident happened, the company tried as much possible to curb the situation. Even James Ross, the Chairman of BP in the U.S., decided to go to the scene and estimate the level of the accident in order to see how the damage can be minimized. In just two hours after the accident had occurred, BP opted to send skimming team to the accident scene (Du, 2012). In addition, after 24 hours, BP had had already sent about 36 specialists to the site, which was a crucial step due to the fact that it reduced damage which has been caused to the company’s reputation. The measures taken succeeded in one way or the other. The company should have focused further on how to deal with the situation instead of spending a lot of money on PR exercise.

Volkswagen Company in 2015 was involved in emission scandal, whereby EPA issued a statement stating the company had greatly violated the Air Act (Ewing, 2015). According to the report released by EPA, it is clear that their TDI engines emitted a few poisonous gases after conducting a laboratory test, whereby in the real sense it was not the case because these engines emitted about 40 times more poisonous gases (Benjamin, 2018). The scandal affected the reputation of the company because the diesel emissions from the engines made by Volkswagen are not currently considered suitable due to not being environmentally friendly.

In order to solve the problem, Volkswagen came up with ways of reducing the diesel emissions. First of all, the company acknowledged the fact that they were involved in manipulating the tests conducted to investigate the vehicle emissions. The CEO himself apologized to the customers by admitting that the scandal had completely damaged the public trust and customers as a whole (Zhang et al., 2016). In addition, the company decided to pay the fine as result of damage caused by the diesel emissions, although it was costly to the whole organization. The effort made by the company to compensate for the damage caused by the pollution proved to be important because after some time, Volkswagen started to regain its lost customers sales, brand management and Reputation.

Brand Management Reputation Marketing

Also, Wells Fargo scandal was one of the biggest financial crimes committed ever, whereby the bank intentionally created more than 2 million fake accounts (Corkery, 2013). According to the report conducted in 2016, it was clear that this scandal inflicted a lot of damage to the Company because its reputation was largely damaged. For example, negative perception towards the bank increased from 15% to 52% after the criminal activity was revealed, which means that the bank had to witness decreased loyalty and the number of customers as result of the scandal (Corkery, 2013). Most of the customers started leaving the bank because it had already lost its reputation.

Brand Management Dissertation
Brand Management Dissertation

Further, the management of the bank tried as much as possible to restore its image at all cost. For example, after the occurrence of the scandal, it decided to pay compensations to some victims. The bank wasted significant costs on settling the damage done to its reputation by the scandal. For example, it had to pay $ 185 million in order to settle the charges resulting from the manipulation (Mims, 2017). In addition, the bank paid 570,000 customers, whom the company claimed to have taken car loans without their permission (Mims, 2017). After making efforts to compensate the affected customers, the bank’s activity started to alleviate the situation. For example, it managed to win back the faith of some of the loyal customers. In addition, the reputation of the company started to improve to some extent because it made efforts to rectify the fault.

References

Corkery, M. Wells Fargo Struggling in the aftermath of Fraud Scandal. The New York Times, 2013.

Du, S., & Vieira, E. T. Striving for Legitimacy through Corporate Social Responsibility and Brand Management: Insights From Oil Companies. Journal of Business Ethics, 110 (4), 2012: 413-427.

Economist. “A year on, Wells Fargo cannot shake off its mis-selling scandal”, 2018.

Ewing, J. Volkswagen says 11 Million Cars Worldwide are Affected in Diesel Deception. The New York Times, 2015.

Issacharoff, S., & Rave, D. T. The BP Oil Spill Settlement and the Paradox of Public Litigation. Louisiana Law Review 74(2) 2013: 397.

Kervyn, N., Chan, E., Malone, C., Korpusik, A., & Ybarra, O. Not All Disasters are Equal in the Public’s Eye: The Negativity Effect on Warmth in Brand Management Perception. Social Cognition 32(3) 2014: 256-275.

Mims, J. H. The Wells Fargo Scandal and Efforts to Reform Incentive-Based Compensation in Financial Institutions. NC Banking Institute 2(1) 2017: 429.

Preston, Benjamin. “Volkswagen Scandal Tarnishes Hard-Won US Reputation as Green Company.” The Guardian, 2018.

Zhang, B., Veijalainen, J., & Kotkov, D. (2016). Volkswagen Emission Crisis: Managing Stakeholder Relations on the Web. In Webist 2016: Proceedings of the 12th International conference on web information systems and technologies. Volume 1. Scitepress, 2016

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What Is A Literature Review

What Is A Literature Review?

This post involves looking at the concept of a literature review in its entirety. A scholarly evaluation of journals and other sources of information in the name of literature is important in the process of research. The main objective is to find ways in which literature review broadens the knowledge of a researcher in his field of interest.

The essay will also look at types of literature reviews, characteristics of good quality reviews, steps in conducting a review process, how to write a good review, the functions in research and why they are important in any study. Essentially at the end of this paper, there would be substantial evidence to support the reasons as to why a literature review is a staple element in most research papers in school and outside the confines of an educational institution.

A literature review is fundamental in the writing of a research paper for both students and researchers. It essentially involves going through available research and published work on a particular topic and giving an outline or synopsis after analyzing it (Rider University).

Its intent is to answer questions posed by the researcher on the topic of interest. Moreover, allows the researcher to offer criticism and detect loopholes in research providing potential ideas for future research (Rewhorn, 2018).  Therefore, literature review connects the dots of previous research to current research and provides a foundation or reference for future research.

Literature review has been said to be of significance in expanding knowledge attained by researchers and students on a topic (Rewhorn, 2018). In academic writing students are able to build critic, analysis and argumentative skills that are useful in future careers in research. This paper will look at ways and role in which literature review plays in broadening knowledge in the field of research.

Literature can be sourced from either the internet, books or peer reviewed journals. Books are said to be an advantage in literature review because they are of superior quality and information is comprehensive and integrated into one. The only downside to this source of information is out-of-date research that might not be relevant in current research.

This can be attributed to the fact that books take a long time to publish (Woodley, 2018). Library catalogues are extremely helpful when it comes to reviewing literature in books. Having an average of 15 books is a good starting point as well as checking the references to each book.

Journals are important coz they provide the most current research. Even though it takes three years before a particular research is published, it is still more up-to-date than research found in books. It is pertinent to look for and store hardcopies of these journals (Woodley, 2018). Electronic databases are useful for softcopies.

It is important to photocopy or summarize articles of interests as you skim through the latest issues. Looking through journal abstracts, citations and indices can make search results better. Due to immense technological advancement, the internet has become such a necessary tool in research. It is the fastest way to gain access to both books and journal articles for literature review. With the ease of using search engines it has fast becoming the most used tool for getting information. Using platforms such as Google one can easily search for published research using key words.

When beginning this process, researchers usually analyze research from journals of interest and peers in the discipline of study. These previous works usually highlight the main topic points focused on and enable one to provide an overview of the topic. Areas of contention or argument in published work provide platforms for more discussion (Mudavanhu, 2017).

Generally, a good literature review sheds more light on available research through a critical summary. Bolderston (2008) reports that there are different types of classifications of literature review. A systematic review is one that analyzes studies that collect secondary data using organized methods. They then provide a comprehensive summary of the available research in a thesis (Bolderston, 2008).

A narrative or traditional review uses critically chosen material collect and evaluate information that can be used to answer current and relevant questions or develop new ones. Systematic and narrative literature reviews differ in the way both reviews search and synthesize information; narrative literature review is more susceptible to bias than the former. A scoping review is a less rigid systematic review in that they are similar in every way except a scoping review is less selecting on research used. However, a scoping review requires a little more structure to eliminate any inconsistencies or gaps in search results (Bolderston, 2008).

Steps in Conducting Literature Review

There are four known courses of action involved in the literature review process. Firstly, one needs search through available sources of information; books, journals and the internet. This process should be meticulously conducted because the relevancy and authenticity of the research has a great impact on the research paper (Mudavanhu, 2017).

Before embarking on this process, a researcher needs to have posed the research problem and questions hoping to be partially addressed by existing literature. Secondly, one needs to assess the available literature; first beginning with the broad scope and eventually narrowing it down.

Further critical inspection is done in this stage to select what is applicable and relevant to a researcher’s problem question. In this stage, one can also establish the theoretical framework for the study. The central theme of the paper offers a clear guideline on what research work is relevant and which is not.

There are various factors one should consider as they inspect various forms of literature. The literature informing the theoretical framework should be valid and factual (Rocco & Plakhotnik, 2009).

A researcher should also consider the methodologies, theories and concepts posited by other researchers through their work. Moreover, one has to determine how to transfer the findings of these studies to their current scope of study. Additionally, it is important to note varying arguments from researchers’ work and be able to give a concrete reasoning behind these differences.

The next stage in conducting literature review is to develop a theoretical framework. The process of developing a theoretical framework involves identifying relevant theories in your topic of interest.

Being able to weave out unnecessary information to create the main theme and concepts is also very important in the process. Factors that affect the process of literature review will impact the process of theoretical framework (Rocco & Plakhotnik, 2009). The theoretical framework has a dependent complex relationship with the process of literature review; both process affect and depend on the other.

Finally, the last step in this process is developing a conceptual framework. The foundation of the research problem is the conceptual framework. The difference between theoretical framework and conceptual framework is the former focuses on theories and themes that explain the research while the latter discusses elements of theoretical framework and centers attention on them in the study (Taylor, 2010). In a nutshell, the conceptual framework focuses on narrowing the research problem and is contained under the wing of the theoretical framework.

Writing a Good Literature Review

Over the years, literature reviews have become a significant staple in scientific publications. Pautasso (2013) posits that there are ten rules to writing a good literature review in research. One has to first out a lot of thought and consideration into the topic of interest. A well-defined and important topic makes it easier to spend considerable time finding relevant research on it without it being tiresome. One can decide on the topic of interest through posing questions that they want the research to answer (Pautasso, 2013).

The article goes on to stress that finding a topic is not enough, one has to find their target audience for the research. Secondly, scoping and delving into relevant literature is important. Whatever research papers you use, one has to record them so as to replicate them in the future. One should take a systemized and organized approach in this process to ensure they can trace back any paper, document or file needed (Pautasso, 2013).

Even when there are literature reviews available on a particular topic of interest, there is always a different new angle to analyze research. The clear guidelines to a good review are for a researcher to be exhaustive and expansive in his reading.

When conducting literature review, the third step would be note taking (Pautasso, 2013).  As human beings are susceptible to errors and short memories it is of utmost importance to jot down short notes while looking into various sources of literature.

Essentially it is so that one can write down anything of interest and come up with a draft of the review that will have to be revised to produce the final output. The rough draft does not have to be coherent but should be referenced and paraphrased where applicable. With changing times, there are different requirements in the writing of research papers.

Some journals require a short require while others a lengthy one. Identifying what is required of you and how to deliver will be the next step in the process (Pautasso, 2013). The purpose of a mini-review is to catch the attention of people who do not have a lot of time in their hands.

The problem with this review is that there is a danger of leaving out some important information and material. A full review allows for length exploitation of material and coverage but can be bypassed by busy individuals with no time.

Dissertation Literature Review
Dissertation Literature Review

Pautasso (2013) also posits that after writing down notes, one might be called upon to decide whether to write a descriptive or integrative review. A descriptive literature review will center on what methods were used to collect data, findings and the analysis and discussions of each study while an integrative review attempts to find similar findings and concepts from the material reviewed (Pautasso, 2013).

The article further states that the decision on what type of literature review to be use; systematic versus narrative, integrative versus descriptive and mini versus full depends on the publishing journal requirements, available time for writing the review, number of authors in the paper as well as the available research on the chosen topic.

There is a delicate balance to achieve in making of a good literature review. The review should be able to attract a target audience from related areas of interest but also maintain specificity to the topic (Pautasso, 2013). A review that is too broad might end up losing its readers and too narrow might close off potential interested readers.

It might be especially problematic for an interdisciplinary review that is aimed to integrate two areas of study. Researchers may need to focus on topics that surround the two disciplines to ensure none of them feels left out. Pautasso (2013) notes that making a summary of literature is not all what it takes to write a good review. An expository evaluative analysis of the methodologies is key as well as the ability to point out discontinuities in the research that begs for more future research (Pautasso, 2013).

A literature review should highlight significant headways and accomplishments in the area of study, showcase questions that stem from relevant research and reveal major areas of contention. To make sure that a review includes the three factors, a researcher might have to partner with other peers who have different abilities and talents to make varying contributions for the overall success of the review.

Apart from being consistent, a good review must have a good structure (Pautasso, 2013). It generally includes an introduction, the main ideas and a conclusion. The structure needs to provide a consistent flow for the reader. Systematic reviews might differ in a small way because they require that the researcher include search results, key words used and even the source or data base (Pautasso, 2013).

Before literature reviews are published in journals a researcher can incorporate peer reviewers to provide objective feedback that should be taken into account. Varying accounts of feedback shed more light on the topic being researched on. This will greatly improve the draft review. One is also required to re-read and correct any form of errors in the review to improve the quality.

To improve an understanding in the topic and eliminate bias, a researcher should also conduct their research separately before embarking on extensive literature review. Some published work might contain bias from either the researcher being too harsh on themselves or too easy (Pautasso, 2013).

Publications these days are required to contain literature reviews that contain recent and up-to-date research so that they do not become obsolete before being released themselves. However, this does not mean that research work published a long time back should be completely sidelined. Since a literature review should not point out gaps in research that have been addressed in recent research, a researcher needs to keep abreast for new developments and publications in journals to avoid that complication (Pautasso, 2013).

Although a researcher can outrightly state the period of review coverage, the publication process still takes a long time. After publication, new literature review will be published and a researcher might be required to update their review (Pautasso, 2013).

Scholars use literature reviews by rearranging important information in a specific way depending on how they plan to tackle a research problem to make a contribution in a specific field of study. Scholars can give a new understanding of old research through a literature review.

On behalf of readers, scholars can map out how far research into a topic has gone, what has been done and what is yet to be accomplished. Scholars can also use literature reviews to address readers’ questions and offer guidance on important and suitable research. They are also able to evaluate so many sources and identify solutions to the problem at hand.

Functions of a Literature Review

A literature review performs many functions. One key function is to highlight important and influential research in a field of interest. A leading piece of research is one that brings forth new concepts and information in a particular field (Gray & Malins, 2004). These new ideas revolutionize our scope of thinking and understanding prompting new research and approaches.

Therefore a researcher can pick and choose what types of research to go in detail, what to mention and what to skip. Leading research is given prominence because of its heavy impact in a specific field. As literature review involves a skimming process to determine what literature is relevant to a particular study and which is not a researching can be able to compare different concepts and arguments from reviewed literature (Mattern, 2010).

There are usually different arguments posed in different papers and the literature review explores a wide range of them to form a conclusive well-represented summary. Getting a full understanding of all concepts pertinent to a topic enables one to also understand the research topic in general.

Harris (1985) posits that a literature review also purposes to show the evolution of ideas from history to current research trends. It essentially helps to present data chronologically to give more clarity of thought. Aside from offering a historical perspective, a literature review also serves to give an overview of new developing knowledge in a field.

There is constant publication of new research and studies and a researcher needs to keep abreast of most of these new developments (Harris, 1985). Within reasonable capacity, a researcher should evaluate and summarize new research and try to see how the research problem fits into the whole grand scheme of things. Other disciplines might require a researcher to look into studies from other countries in other languages because researchers from non-English speaking countries have also made tremendous contribution in the field of research.

Gaps in research will always be identified when conducting literature review. Sometimes researchers may omit some material from studies because they are less appealing to the public or even the researchers themselves.

Some research problems also do not attract as much funding as others and researchers may opt out of those studies. Some research topics make it difficult to collect data on. As much as new research may be developed to fill in gaps, sometimes well-structured and developed research can be done on existing research areas. It is evident to see that research undertaking has many drivers and that consequently determines what gaps are left in the publications.

Literature review can be used point out new emerging trends in research. The objective of the study enables a research to find new developments in research. A researcher would need to start from a wider scope of study before narrowing it down in order to look for new trends in that field of interest.

One major function of a literature review is to summarize the main ideas in a particular topic of study. When writing a literature review, the researcher may impose their subjective opinions on the ideas presented from reviewed literature; causing bias. Before beginning the summary process, it is important to check credibility of the sources as well as writers.

A scholar needs to have developed critical analytical skills to assess key ideas that fit into his work of study from relevant material. A research is also able to create a new idea or merge existing concepts during the evaluation process.

Importance of Literature Reviews

Firstly, the literature review serves to clearly define a research problem. As much as a research question is what directs and structures literature review, it works from the opposite direction as well. What a researcher learns from evaluating different literature one learns a lot of things.

Typically, a scholar will find out what has been studied, gaps in the available literature and further suggestions for research. All these information goes in to shape the research problem further. It enables provide a clear direction of the research. Highlighting the gaps in areas of study focuses a researcher and enables them to gain greater perception and comprehension of the material.

When one goes through various literature and research, they are equipped with tools of conducting research. One is further educated on different methodologies of conducting research. A researcher will be in a position to compare and contrast methods that have been used and what has been proposed to ensure a smoother and efficient process.

By comparing and contrasting, one can weigh the pros and cons to different procedures and pick the most effective methodology. Sometimes methodologies picked fail to address the research problem and that is where literature review can help. It allows one to justify what procedure they have used in their research.

Literature review also serves to broaden knowledge of a researcher in their field of study. As one reads extensively and broadly they encounter a lot of what other researchers have written and published. A literature review serves to familiarize one with most knowledge that has been disseminated and questions raised from a particular research problem.

Conducting research for an advanced degree calls into question a researcher’s knowledge and expertise. Therefore, a literature review will serve to meet this requirement. Additionally, a literature review will enable a researcher to figure what their contribution is to the current knowledge.

After conducting your study, getting finds and interpreting those findings, a literature review aids one in making comparisons between findings to make a conclusion. In essence it facilitates contextualization of findings within the existing body of knowledge.

A literature review can help a researcher seem confident and well-prepared to the target audience. It is a clear indication that one has done a lot of reading and fact-finding before embarking on tackling the research problem (Smith, 2012). Therefore, the audience easily trusts one’s results, conclusions and recommendations.

Finding a lot of credible and leading research as well as posing good arguments shows one level of expertise and knowledge in their field of study which can come in handy especially for PhD students who are hoping to have their dissertations accepted.

A researcher therefore needs to critically discern and evaluate what articles to include in their literature review and what number. Also, one needs to stay close to the main theme as synthesize all the information available from the relevant sources.

It also follows that a good well-defined and researched literature review prevents a scholar or researcher from committing plagiarism (Smith, 2012). Research papers need to produce a creative and original idea in their specific fields of study. Repetitions are not tolerated.

Each new published work needs to contribute something different or broaden knowledge in a particular topic. Unless there is need to repeat some research, ones credibility might be in question if such a scenario occurred. Because most research are dependent on funds and time, a researcher needs due diligence to avoid wasting such resources.

In case one finds out at the literature review stage that their research problem was already addressed by previous research, then they can modify the topic and choose to address an original idea. In a way, it streamlines your research focus and makes clear the problem being addressed. The selection process in literature review is meticulous and rigorous and therefore one starts from with a broad focus and eventually narrows it down.

Apart from showing the researcher’s competencies and preparedness throughout the entire literature review process, it shows the linkage between past, current and future research.

Literature Reviews and the Broadening of Knowledge

One of the main objectives of conducting a literature review is to broaden the knowledge of the researcher in his area of study. This happens in two ways; one through extensive reading of numerous sources to find ones pertinent to the research problem and two finding gaps in research and attempting to recommend future research to fill the research gaps.

A standard literature review is usually well-researched, synthesized, structured and of high quality containing credible authors. A research gap is a research problem or question left unaddressed by a particular study that begs for further clarification (Moeini, 2014).

Having a research gap in your study does not discredit your competency because it shows originality at tackling problems in a particular field left to be tackled. Furthermore a research gap is indicative of great knowledge in that area of study and a well-carried out research (Moeini, 2014).

Sometimes identification of a gap can lead to the development of a research problem. Therefore it shows that identification of a research gap builds ones knowledge as a researcher is required to have a deep set of understanding in the field for that to occur (Fink, 2005).

Gap finding leads to categorization of researchers in the field. There are types of researchers when it comes to this area of research. First class researchers are those that are well skilled and knowledgeable in their respective fields. Attaining this particular class takes a lot of time and experience and knowledge (Moeini, 2014).

The second class researchers mostly get recommendations from professors in school and therefore do not necessarily invest time and effort into finding a research problem. The third group is the third class which is mostly influenced by the environment when it comes to choosing a research topic (Moeini, 2014).

Finding a research topic or gap therefore calls one to actively and extensively read broadly on material related to their interest. A researcher will go through countless sources and even sometimes read other systematic literature reviews to gain understanding of what is required of him and find a clear direction for his research paper (Fink, 2005).

Looking for trends and new research requires previous background knowledge in a particular discipline. Every new paper poses a different argument, theories, methodologies and themes fully equipping the researcher with a wide range of choices on what is applicable in his study. In this process, one is required to delve into citation reports and analysis of content further broadening their knowledge spectrum (Moeini, 2014).

A new researcher in the field would widen their scope by looking at the research of more seasoned and experienced researchers in the field. These leading researchers are those who have made an important in the body of knowledge and have their research widely published and distributed. Through the literature review process, one can learn the tricks of conducting a good quality research paper and how to meaningfully make a lasting contribution as a researcher.

As new trends are constantly emerging and old ones shifting, a literature review broadens a researcher’s knowledge by always keeping them on their toes and ensuring they read extensively to avoid duplications. It is also evident that to conduct and formulate a good quality literature review one must go through a number of resources (Ridley, 2012).

Simply reading and noting down relevant material to make a summary contributes profoundly to a researcher’s wealth of knowledge. Furthermore, discussions among peers that stem from the research process when looking for feedback or suggestions serves to illuminate on new concepts and ideas. When addressing contrasting arguments in different research papers on a particular topic, a researcher has to either form an opinion from their own wealth of knowledge or embark on further reading to draw conclusions; consequently one continues to build their knowledge in the area (Torracro, 2005).

Any researcher needs critical thinking, analytical and organization skills that come in handy in the research process. The steps to conducting and formulating a literature review serve to build these skills in budding researchers who lack them.

When forming the theoretical and conceptual framework, a researcher has to critically analyze various theories before forming a conclusion (Torracro, 2005). One would require an in depth understanding of the origin of the theories and how they govern the relationships in the problem matter.

A researcher would have to fully comprehend theories pertinent to the problem area and concepts that fall within the theory under the specific subject matter. This entire process further illuminates on more information in the field of interest for the researcher (Ridley, 2012).

Conclusion

A literature review is an important aspect in many research papers because of its many benefits and functions especially of importance is the function of broadening knowledge of a researcher in their field of interest. Apart from giving focus to the research problem, a well written literature review shows the deep understanding of the content being studied and researched on.

There are various types of literature reviews. The selection of the appropriate one depends on factors like funding, publishing journal and time allocated for research. The process consists of going through various sources of information to pick relevant topic material, making notes to form a draft review, allowing feedback of the review and finally structuring it.

A good review bridges old knowledge with new one by identifying research gaps and areas that might prompt future research. It is a necessary part of a dissertation, thesis or any research paper because it shows the competencies of a researcher and enables a researcher to avoid any problems of duplication and plagiarism.

It also develops critical thinking and analytical skills as they skills important to the process of research. This process of literature review is an ever ending process that seeks to offer a theoretical background to a study and help a researcher understand how their research will fit in the existing body of knowledge; their contribution. Adherence to a good structure and theme is importance in the overall process of literature review.

References

Cooper, Harris M., A Taxanomy of Literature Review, Annual Meeting of the American Educational Research Association (69th, Chicago, IL, March 31-April, 1985)

Taylor, D. (2010). The literature review: A few tips on conducting it.

Mattern, S. (2010). Literature Review Tips.

Bolderston, A. (2008). Writing an Effective Literature Review. Journal of Medical Imaging and Radiation Sciences, 86–92.

Moeini, S. (2014, September 12). 6 (very useful!) Approaches to identify research gaps and generate research questions.

Mudavanhu, Y. (2017). Quality of literature review and discussion of findings in selected papers on integration of ICT in teaching,role of mentors, and teaching science through science, technology, engineering, and mathematics (STEM). Academic Journals, 189-201.

Pautasso, M. (2013). Ten Simple Rules for Writing a Literature Review. PCBI, 1.

Plakhotnik, T. S. (2009). Literature Reviews, Conceptual Frameworks, and Theoretical Frameworks: Terms, Functions, and Distinctions. Sage Journals, 120-130.

Carole Gray and Julian Malins, Visualizing Research: A Guide to the Research Process in Art and Design (Burlington, VT: Ashgate, 2004). p. 43.

Rewhorn, S. (2017). Writing your successful literature review. Journal of Geography in Higher Education, 143-147.

Woodley, M. (2018, March 22). The Three Types of Sources.

Fink, A. (2005). Conduction Research Literature reviews: From Internet to Paper 2nd Edition. Thousand Oaks, California: Sage.

Ridley, D. (2012). A step by Step Guide for students 2nd Edition. Los Angeles: Sage.

Smith, N. (2012, January 17). Purpose of a Literature Review.

Torracro, R. (2005). “Writing Integrative Literature Reviews: Guidelines and Examples. Human Resource Development Review 4, 356-367.

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Dissertation Research Proposal For University Students

Writing A Research Proposal

This collective article is designed to provide you with a realistic and relevant learning opportunity which will help prepare you for the dissertation. You are asked to prepare a research proposal similar to one that could be submitted to an ethics committee. This proposal could be linked to your proposed dissertation topic, if you have already identified one. If not, it could be associated with a current area of interest. Please see your handbook for information on writing and marking.

You are required to:

  1. Identify a research question/problem
  2. Justify the research, research design and methods
  3. Consider resources & constraints

The main objectives of research ethics committees are to protect both prospective participants in research studies and researchers. To achieve this, ethics committees need specific information regarding proposed studies to be able to make informed decisions about the ethical implications of these studies, considering the proposal from the participants’ perspective. The main ethical issues focus on the validity of the research (is the research question important and do-able?) and the welfare of the participants (what will participation involve, are there any acceptable risks, how will informed consent be sought, how will confidentiality be respected?). Therefore, these issues need to be addressed in your proposal.

Identifying a Research Question/Problem

Your research question should be both:

  • Useful (extending knowledge relevant to health care that might contribute to changes in practice)
  • Do-able (feasible given resource constraints)

This can be achieved by identifying a practice related problem, considering complaints, policy initiatives and service delivery changes, or by reading articles in journals.

Justify the Research, Research Design and Methods

What is the current state of knowledge in your topic area? Has your research question already been answered? If not, what are the typical methods used to address research questions similar to yours? What other methods might be appropriate? You will need to provide a brief critical review of relevant literature and state how your study will contribute to this field of study.

Given your research question, what types of data will be collected to answer this (e.g. quantitative and/or qualitative)? What is the most appropriate research strategy (e.g. experiment, survey, case study, action research etc) and what methods will you use (e.g. observation, questionnaire, interviews etc)?

Resources and Constraints

What factors should you take into account?

  • Time – do you have enough to prepare, conduct, analyse and write up the study?
  • Expertise – do you have knowledge and skills in the particular topic & method(s)?
  • Participants – can you secure access to the necessary participants (e.g. patients, relatives, work colleagues) within the ethical guidelines and in the relevant time frame?
  • Financial resources – will you need to consider acquiring extra staff and/or equipment, how will you cover the costs of conducting the research (photocopying, postage, travel etc), can this be approved by your manager or do you need to secure funding?

Writing a Research Proposal

A research proposal is a detailed statement identifying what you intend to do; why; how; and with whom. It indicates your ability to conduct the study and provides an opportunity:

  • For you – to clarify your thoughts
  • For others – to examine these (importance, feasibility, ethics, funding etc)

Components of an Research Proposal

  • Title of the proposed project
  • Name of the student/researcher
  • Brief summary and problem statement
    Aims & objectives
  • Rationale/justification (why the research is important and should be conducted)
  • Brief literature review (scientific background)
  • Brief description of research design (approach, strategy, methods, analysis)
  • Ethical considerations (consent of participants, other clinicians, participant information sheet)
  • Timescale/plan
  • Any resource implications (how costs will be met, any funding required/secured)
  • Proposed outputs (dissemination, feedback to participants)

Research Proposals – Questions to Ask

Is it realistic?

  • Have I the necessary skills & time to carry it out?
  • Is it ethical?
  • Have I considered how my sample will be selected, how informed consent will be achieved, how data will be collected, stored (and destroyed) and disseminated whilst maintaining confidentiality and complying with the Data Protection Act?

Is it clear?

  • Have I used simple language & not jargon?
  • Have I explained technical terms?
  • Have I included an indication of the kinds of questions I will be asking, or observations I will be recording?

Can I anticipate any problems?

  • Have I covered each section thoroughly?
  • Are there any weaknesses?
Research Proposal
Research Proposal

In this article we have identified what is generally required of researchers when they submit proposals for ethical approval. The assignment for this module involves preparing a similar proposal.

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Best University Dissertation Examples

Dissertation Examples

Outstanding Dissertation Examples – We believe that reading and examining others work is the best way to complete your own work perfectly, so before starting dissertation writing, students must remember and take care of analyzing others work first. This is where dissertation examples come into their element. Writing a dissertation is not difficult if you have searched for existing dissertations that will help you in writing your own dissertation. This would cover what structure and format you should follow up until the point of submission. Below are some guidelines to ensure that you will get the best dissertation examples and ideas:

University Libraries

If you are looking for dissertation examples then look at what your university library has to offer. This is the best possible place where you can find credible work from previous graduates and your university has elected to keep the dissertation examples on file for future use for other university students. Browsing a university library is the most authentic method when choosing a title or topic for your own dissertation.

Internet

The most accessible source where you can find dissertation examples is the internet. You will instantly gain access to a plethora dissertations across a wide variety of subjects. Be mindful that the dissertations you are viewing have no doubt already been submitted to universities and the contents have been used by many students in the same way you wish to use the contents. Don’t be tempted to cut and paste any online content from any dissertation examples you encounter as you will fail your degree unless you reference appropriately in accordance with your university guidelines.

Evaluating Relevant Material

Here you will be utilising existing material you have already written during your university studies. Take a step back and look at the work you have produced in the first and second year of your degree, it is safe to say you will find material that you can add to your dissertation. In some cases students formulate a dissertation topic on previous research carried out. This is something I did during my undergraduate degree, I wrote a dissertation on entrepreneurial behaviour as previous modules in this subject area stirred my imagination and interest in this field of study.

University Dissertation Examples
University Dissertation Examples

You need to pick a project topic that is feasible, which means do-able in the short time that you have. What is feasible? Many student project proposals are initially over- ambitious. They are often very wide-ranging in their focus and could present significant problems for students in collecting primary data. The best projects are those where:

  • The topic is of particular interest to you
  • You can easily collect information – the information is readily available, or you can collect and analyse it easily, and within a short time period
  • The aim of the project is focused on a particular aspect of a chosen topic

Business Dissertation Examples

The likely reason for you to examine business dissertation examples is to get a clear understanding on how to structure your own dissertation. Writing your own dissertation is usually carried out in accordance with accepted guidelines set out by at your university. This is designated to help the reader or examiner to understand exactly what message is to be conveyed in the dissertation. The best way to learn on how to best structure your business dissertation is to assess previously submitted business dissertation examples. Be sure to analyze any dissertation examples carefully and make sure your reference any material accordingly. Below is a list of business dissertation examples for you to look into, this also includes a vast collection of MBA dissertation examples.

Business Dissertation Examples | MBA Dissertation Titles

Marketing Dissertation Examples

There will be a period of time during your marketing degree when you need to start planning in advance to your final year. I do suggest to students to start investigating and formulating a dissertation topic and dissertation title during the second year of a degree. You do not want to leave this task until the last year or final semester of the last year as you will be at a disadvantage. Students should start looking at marketing dissertation examples as soon as possible especially if there is a break in the studies. Always do the ground work well in advance, I knew the dissertation topic I wanted to write part way through my second year. Soon after, I carefully analyzed dissertation examples in this field of study.

Students should obtain a good set of undergraduate and postgraduate marketing dissertation examples. As mentioned above, these can be obtained from university libraries, the internet and research material you have already written. Below are links that will take you to a large quantity of marketing dissertation examples. I’m sure you will find marketing dissertation topics that are relevant to your field of study.

Marketing Dissertation Examples | Marketing Dissertation Titles

Construction Dissertation Examples

There are a number of techniques where you can access existing construction dissertation examples and use them as a foundation for your own work, thus trying to understand the specifics of the thesis or dissertation you have to produce. As previously mentioned, do try to see if the university library has dissertation topics and titles for you to analyse, if not, search the internet for research material and construction related forums and blogs. We do offer construction dissertation examples and we often visit related blogs such as The Chartered Institute of Building (CIOB), Constructionomics and BDCnetwork all of which will help you with your own research dissertation as the material on offer is first class, current and expansive. The link provided below will illustrate the vast amount of construction dissertation examples we have to offer.

Construction Dissertation Examples

HRM Dissertation Examples

This post sets out to help students select the most appropriate topic for their HRM dissertation and to provide practical advice on how a HRM dissertation should be structured in order to achieve the best possible grade. You may have already looked at the HRM dissertation titles we have on offer and we appreciate that there is a wide variety of topics in this subject area, so it may be prudent to seek out and analyse HRM dissertation examples available at your university library or internet.

Below are links to access an extensive list of quality HRM Dissertation examples. Students may use them to meet the requirements of their own HRM dissertation, or view the titles in order to gain some inspiration. Either way, ensure you reference all material accordingly as you do not want fall foul of plagiarism.

HRM Dissertation Examples

Finance Dissertation Examples

Finance and accounting is often perceived as a difficult subject area especially when it comes to writing a dissertation. When you choose your finance dissertation topic try to keep in mind that the topic chosen should current and up to date. Don’t write a finance dissertation on stock performance from the last decade or on failed banks as that is too predictable. Have a look at what is happening now in the world of finance, or try to write a finance dissertation that predicts the outcome of a seismic event such as Brexit or potential collapse of the Euro currency. That is why looking at current finance dissertation examples is a must as you will be kept abreast of any new theories in this field of research.

When writing your finance dissertation you have to make decisions regarding the content, area of study and formulate the topic. Below are finance dissertation examples that will help you in your studies. We urge you to take a look and reference any material accordingly.

Finance Dissertation Examples

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Outstanding Sample Dissertations
Outstanding Sample Dissertations

Dissertation topics chosen will be wide ranging and students are encouraged to work in areas of particular personal interest, providing they are relevant to the objectives of the pathway. There is no doubt that student will be required to complete the Research Methods module to provide the underpinning skills and knowledge required to undertake a dissertation.

Dissertation Writing Outcomes

To enable students to undertake a substantial piece of empirical research within a topic area of their own choosing relevant to the objectives of the pathway

  • To allow students to demonstrate their ability to undertake a piece of work requiring an element of original inquiry
  • To enable students to identify a specific research question, review the literature in that area, select and justify using a particular research methodology to collect, analyse and interpret secondary and primary data, the balance of which will vary depending on the individual project
  • To allow students to display their initiative and develop their time management skills
  • To develop students ability for critical thought and evaluation

Once you have completed your own dissertation you will be able to:

  • Produce clearly stated analytical framework for the study including aims and objectives
  • Systematically develop an empirical investigation, using a research methodology to gather data for analysis and critical interpretation
  • Present firm conclusions and recommendations (as appropriate) demonstrating that the objectives set have been achieved
  • Write a formal research report to professional standards
  • Provide evidence on the use of initiative, time management and self expression

Start writing your dissertation early. Write a section at a time as you complete them; don’t try writing the report all at once. Give yourself plenty of time for revision, correcting and for formatting the document – this can be very time-consuming. Discuss and agree with your supervisor arrangements for sending and returning completed text to each other. Don’t forget to reference dissertation examples accordingly.

If you enjoyed reading this post on how to obtain and use existing dissertations I would be very grateful if you could help spread this knowledge by emailing this post to a friend, or sharing it on Twitter or Facebook. Thank you.