Derivative Market And The Meaning Of Derivative Market - Free Essay Example

Sample details Pages: 9 Words: 2730 Downloads: 10 Date added: 2017/06/26 Category Marketing Essay Type Analytical essay Did you like this example? Mehraj Mattoo (1997), Structured Derivatives: New Tools for Investment Management A Handbook of Structuring, Pricing Investor Applications (Financial Times) The Derivatives Market is meant as the market where exchange of derivatives takes place. Derivatives are one type of securities whose price is derived from the underlying assets. And value of these derivatives is determined by the fluctuations in the underlying assets. These underlying assets are most commonly stocks, bonds, currencies, interest rates, commodities and market indices. As Derivatives are merely contracts between two or more parties, anything like weather data or amount of rain can be used as underlying assets. The Derivatives can be classified as Future Contracts, Forward Contracts, Options, Swaps and Credit Derivatives. Don’t waste time! Our writers will create an original "Derivative Market And The Meaning Of Derivative Market" essay for you Create order For example, a call option on the stock of Coca-Cola is a derivative security that obtains value from the shares of Coca-Cola that can be purchased with the call option. Call options, put options, convertible bonds, futures contracts, and convertible preferred stock are examples of derivatives. A derivative can be either a risky or low-risk investment. The need for a derivatives market The derivatives market performs a number of economic functions: 1. They help in transferring risks from risk averse people to risk oriented people 2. They help in the discovery of future as well as current prices 3. They catalyze entrepreneurial activity 4. They increase the volume traded in markets because of participation of risk averse people in greater numbers 5. They increase savings and investment in the long run Derivatives are used by investors to: provide leverage (or gearing), such that a small movement in the underlying value can cause a large difference in the value of the derivative; speculate and make a profit if the value of the underlying asset moves the way they expect (e.g., moves in a given direction, stays in or out of a specified range, reaches a certain level); hedge or mitigate risk in the underlying, by entering into a derivative contract whose value moves in the opposite direction to their underlying position and cancels part or all of it out; obtain exposure to the underlying where it is not possible to trade in the underlying (e.g., weather derivatives); create option ability where the value of the derivative is linked to a specific condition or event (e.g., the underlying reaching a specific price level). Derivative Market and Financial Risk Derivatives play a vital role in risk management of both financial and non-financial institutions. But, in the present world, it has become a rising concern that derivative market operations may destabilize the efficiency of financial markets. In todays world the companies the financial and non-financial firms are using forward contracts, future contracts, options, swaps and other various combinations of derivatives to manage risk and to increase returns. It is true that growth of derivatives market reveal the increasing market demand for risk managing instruments in the economy. But, the major concern is that, the main components of Over the Counter (OTC) derivatives are interest rates and currency swaps. So, the economy will suffer surely if the derivative instruments are misused and if a major fault takes place in derivatives market. Types of Derivative Market The Derivative Market can be classified as Exchange Traded Derivatives Market and Over the Counter Derivative Market. Exchange Traded Derivatives are those derivatives which are traded through specialized derivative exchanges whereas Over the Counter Derivatives are those which are privately traded between two parties and involves no exchange or intermediary. Swaps, Options and Forward Contracts are traded in Over the Counter Derivatives Market or OTC market. The main participants of OTC market are the Investment Banks, Commercial Banks, Govt. Sponsored Enterprises and Hedge Funds. The investment banks markets the derivatives through traders to the clients like hedge funds and the rest. In the Exchange Traded Derivatives Market or Future Market, exchange acts as the main party and by trading of derivatives actually risk is traded between two parties. One party who purchases future contract is said to go long and the person who sells the future contract is said to go short. The holder of the long position owns the future contract and earns profit from it if the price of the underlying security goes up in the future. On the contrary, holder of the short position is in a profitable position if the price of the underlying security goes down, as he has already sold the future contract. So, when a new future contract is introduced, the total position in the contract is zero as no one is holding that for short or long. The trading of foreign exchange traded derivatives or the future contracts has emerged as very important financial activity all over the world just like trading of equity-linked contracts or commodity contracts. The derivatives whose underlying assets are credit, energy or metal, have shown a steady growth rate over the years around the world. Interest rate is the parameter which influences the global trading of derivatives, the most. Types of derivatives OTC and exchange-traded In broad terms, there are two groups of derivative contracts, which are distinguished by the way they are traded in the market: Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivative market is the largest market for derivatives, and is largely unregulated with respect to disclosure of information between the parties, since the OTC market is made up of banks and other highly sophisticated parties, such as hedge funds. Reporting of OTC amounts are difficult because trades can occur in private, without activity being visible on any exchange. According to the Bank for International Settlements, the total outstanding notional amount is US$684 trillion (as of June 2008). Of this total notional amount, 67% are interest rate contracts, 8% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity contracts, and 12% are othe r. Because OTC derivatives are not traded on an exchange, there is no central counter-party. Therefore, they are subject to counter-party risk, like an ordinary contract, since each counter-party relies on the other to perform. Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges. A derivatives exchange is a market where individuals trade standardized contracts that have been defined by the exchange. A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee. The worlds largest derivatives exchanges (by number of transactions) are the Korea Exchange (which lists KOSPI Index Futures Options), Eurex (which lists a wide range of European products such as interest rate index products), and CME Group (made up of the 2007 merger of the Chicago Mercantile Exchange and the Chicago Board of Trade and the 2008 acquisition of the New York Mercantile Exchange). According to BIS, the combined turnover in the worlds derivatives exchanges totaled USD 344 trillion during Q4 2005. Some types of derivative instruments also may trade on traditional exchanges. For instance, hybrid instruments such as convertible bonds and/or convertible preferred may be listed on stock or bond exchanges. Also, warrants (or rights) may be listed on equity exchanges. Performance Rights, Cash xPRTs and various other instruments that essentially consist of a complex set of options bundled into a simple package are routinely listed on equity exchanges. Like other derivatives, these publicly traded derivatives provide investors access to risk/reward and volatility characteristics that, while related to an underlying commodity, nonetheless are distinctive Common types of derivatives Derivatives are a tool used by investors to manage risk. It is a complex area and one that requires a great deal of study and application to master. In brief, a derivative gets its value from another financial product. There are two primary types of derivative contracts: over-the-counter (OTC) derivatives and exchange-traded derivatives. They differ from each other in the ways they are traded on the market. There are also three major classes of derivatives: some types of warrants, futures and exchange-traded options. Futures. (Also sometimes called forwards) are contracts that say an asset block will be sold or bought on an agreed future date Futures are contracts to buy or sell an asset on or before a future date at a price specified today. A futures contract differs from a forward contract in that the futures contract is a standardized contract written by a clearing house that operates an exchange where the contract can be bought and sold, whereas a forward contract is a non-standardized contract written by the parties themselves. Options. An option gives the contract holder the right to buy or sell on a specified date in the future but they are under no obligation to take up this option. Options are contracts that give the owner the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an asset. The price at which the sale takes place is known as the strike price, and is specified at the time the parties enter into the option. The option contract also specifies a maturity date. In the case of a European option, the owner has the right to require the sale to take place on (but not before) the maturity date; in the case of an American option, the owner can require the sale to take place at any time up to the maturity date. If the owner of the contract exercises this right, the counter-party has the obligation to carry out the transaction. Swaps are contracts to exchange cash (flows) on or before a specified future date based on the underlying value of currencies/exchange rates, bonds/interest rates, commodities, stocks or other assets. Swaps: Swaps are private agreements between two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. The two commonly used swaps are: ÂÂ · Interest rate swaps: These entail swapping only the interest related cash flows between the parties in the same currency. ÂÂ · Currency swaps: These entail swapping both principal and interest between the parties, with the cash flows in one direction being in adifferent currency than those in the opposite direction. Warrants. A tool used for trading on the stock exchange. They can be held over shares, currency, an index or commodity. Warrants (and options) allow the holder to earn additional income from their shares or to protect value of their existing assets. Types of options In Australia the different kinds of options available to investors include: Flex options Long term options Low exercise price options (LEPOs) Index options Index LEPOs Types of warrants There are also a range of different kinds of warrants commonly in use. They are: Equity call and put warrants Installment warrants Endowment warrants Low exercise price warrants Options are traded electronically by brokers on a computerised market called the Derivatives Trading Facility (DTF). Using this system the first order placed is the first order processed and at the end of the day any unexercised orders lapse. Warrants are traded using the ASX share trading system. The Australian Stock Exchange is a fantastic resource for further information about derivatives and also runs education classes for new investors. Alternatively, have look through the Investor Buddy Learning Centre or Derivatives section or email us. Benefits The use of derivatives also has its benefits: Derivatives facilitate the buying and selling of risk, and many people.consider this to have a positive impact on the economic system. Although someone loses money while someone else gains money with a derivative, under normal circumstances, trading in derivatives should not adversely affect the economic system because it is not zero sum in utility. Former federal reserver board chairman Alan Greenspan commented in 2003 that he believed that the use of derivatives has softened the impact of the economic downturn at the beginning of the 21st century. Government regulation In the context of a 2010 examination of the ICE Trust, an industry self-regulatory body, the chairman of the Commodity Futures Trading Commission which regulates most derivatives, was quoted saying that the derivatives marketplace as it functions now adds up to higher costs to all Americans. More oversight of the banks in this market is needed, he also said. Additionally, the report said, the Department of Justice is looking into derivatives, too. The departments antitrust unit is actively investigating the possibility of anticompetitive practices in the credit derivatives clearing, trading and information services industries, according to a department spokeswoman. Definitions Bilateral netting: A legally enforceable arrangement between a bank and a counter-party that creates a single legal obligation covering all included individual contracts. This means that a banks obligation, in the event of the default or insolvency of one of the parties, would be the net sum of all positive and negative fair values of contracts included in the bilateral netting arrangement. Credit derivative: A contract that transfers credit risk from a protection buyer to a credit production seller. Credit derivative products can take many forms, such as credit default swaps, credit linked notes and total return swaps. Derivative: A financial contract whose value is derived from the performance of assets, interest rates, currency exchange rates, or indexes. Derivative transactions include a wide assortment of financial contracts including structured debt obligations and deposits, swaps, futures, options, caps, floors, collars, forwards and various combinations thereof. Exchange-traded derivative contract: Standardized derivative contracts that are transacted on an organized futures exchange. Gross negative fair value: The sum of the fair values of contracts where the bank owes money to its counter-parties, without taking into account netting. This represents the maximum losses the banks counter-parties would incur if the bank defaults and there is no netting of contracts, and no bank collateral was held by the counter-parties. Gross positive fair value Gross: The sum total of the fair values of contracts where the bank is owed money by its counter-parties, without taking into account netting. This represents the maximum losses a bank could incur if all its counter-parties default and there is no netting of contracts, and the bank holds no counter-party collateral. High-risk motgage securities: Securities where the price or expected average life is highly sensitive to interest rate changes, as determined by the FFIEC policy statement on high-risk mortgage securities. Notional amount: The nominal or face amount that is used to calculate payments made on swaps and other risk management products. This amount generally does not change hands and is thus referred to as notional. Over-the-counter (OTC) derivative contracts: Privately negotiated derivative contracts that are transacted off organized futures exchanges. structured notes: Non-mortgage-backed debt securities, whose cash flow characteristics depend on one or more indices and / or have embedded forwards or options. Conclusions In terms of the growth of derivatives markets, and the variety of derivatives users, the Indian market has equalled or exceeded many other regional markets. While the growth is being spearheaded mainly by retail investors, private sector institutions and large corporations, smaller companies and state-owned institutions are gradually getting into the act. Foreign brokers such as JP Morgan Chase are boosting their presence in India in reaction to the growth in derivatives. The variety of derivatives instruments available for trading is also expanding. There remain major areas of concern for Indian derivatives users. Large gaps exist in the range of derivatives products that are traded actively. In equity derivatives, NSE figures show that almost 90% of activity is due to stock futures or index futures, whereas trading in options is limited to a few stocks, partly because they are settled in cash and not the underlying stocks. Exchange-traded derivatives based on interest rates and currencies are virtually absent. Liquidity and transparency are important properties of any developed market. Liquid markets require market makers who are willing to buy and sell, and be patient while doing so. In India, market making is primarily the province of Indian private and foreign banks, with public sector banks lagging in this area (FitchRatings, 2004). A lack of market liquidity may be responsible for inadequate trading in some markets. Transparency is achieved partly through financial disclosure. Financial statements

Is Water A Safe Drinking Water - 1747 Words

About seventy percent of the world is composed of water, yet only two percent is safe enough to drink. Water, simply two parts hydrogen and one part oxygen, is the most essential element for life function (Importance of Water Web). Water enables life for all organisms, makes up two thirds of the human body, and is important in maintaining homeostasis, a balanced body system. Without water the human body would deteriorate within a few days and cease to function. Without water, plants, animals and our thriving ecosystem would fail. Like oxygen, water is a life necessity. Yet, many go without safe drinking water because water is not easily accessible. Multiple communities within the United States have been unable to source drinkable water and lack the resources to make improvements. Thus, business minded individuals have found the perfect scenario for profit: high demand. Casting aside any moral sense of obligation to help the less fortunate, large corporation have taken taken this reso urce and turned it into a commodity. Not all people have access to clean water, yet through corporate finagling and strategic marketing large companies have been able to create a profitable business off of what could and should be a freely accessible resource. According to data from BMC, the Beverage Marketing Corp, bottled water sales have seen approximately a thirteen percent increase within the last few years (Posnick Web). This data confirms, as said in the article Take Back the Tap, thatShow MoreRelatedSafe Water Drinking And Pollution1933 Words   |  8 Pagessemester, there have been several different instances that have shown the importance of truly understanding what these issues are and how some of these issues can be fixed. 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B2B and International Exercise Free Essays

In the conduct of this study, the question that must always be put in our mind is if there is a possibility for the city of Scottsdale and Marrakesh to have a business transaction to improve their economy as a whole. After reading all the necessary materials regarding the economic condition of the two cities, I have learned that Marrakesh has a 55. 5 % rate of share of services in the totality of the city’s GDP. We will write a custom essay sample on B2B and International Exercise or any similar topic only for you Order Now Moreover, Morocco is also known for its industry in mining, food processing, leather goods, textiles and tourism. In terms of their educational attainment level, only 52% of the total population is literate. Its export commodities are mostly clothing, fish, crude minerals, fertilizer, transistors and inorganic chemicals. On the other hand, one of the â€Å"booming† industries in Scottsdale is the business and professional industry that enables them to have an impressive economic growth for the past years. They are also known for their best resorts destinations and high technologies and bio-technology. Feasibility Study Based from the above facts that I gathered, I could say that there is a great possibility of having business with Marrakesh. In the industry of tourism, since Marrakesh is known for their tourism, Scottsdale could develop resorts in Marrakesh. The high rate of tourists that goes to Marrakesh would serve as an opportunity for the Scottsdale to put up resorts. If this would go to happen, tourists in Marrakesh will continue to increase. At the same time, while benefiting the Scottsdale, the resort that will be established would surely cut the unemployment rate of Marrakesh since jobs will be provided to their citizens and, in the later years, could uplift the poverty rate of Marrakesh (Shagazatova). On the other hand, since there is a high illiteracy rate in Marrakesh, and there are a lot of professionals in Scottsdale like teachers, Scottsdale could invest in establishing schools in the Marrakesh in order to uplift their rate of literacy. The schools that I am referring here are only vocational schools, will also provide basic knowledge regarding literacy, that might be a good help in the booming industry of Marrakesh (Ranis). With this, Scottsdale could also get workers from the schools that they had established. With the median age of 24 years, there would be no doubt that Marrakesh industry is concentrated on the service sector. Most of the companies here must be labor intensive in order to take advantage of the large pool of laborers in the market. Wage rate is expected to be low compared to other countries (Phelps). This is also one of the reasons why it is advantageous to put up a business in Marrakesh aside from its economic opportunities in the current days. Since Scottsdale is well known for its business services, it would be a good decision to establish a service oriented company in Marrakesh. It could be in line with the transistor’s industry or textile industry that can be provided by Scottsdale to the workers of Marrakesh. Data Gathering and Recommendations Through the suggested strategies above would definitely benefit both of the cities. Marrakesh could take advantage of the job opportunity that Scottsdale’s investors bring with them and the latter could take advantage of the tremendous amount of laborers in Marrakesh as well as the low operational costs in terms of the wage rate. After presenting this paper to the Scottsdale’s officials, data gathering in Marrakesh economic standing should be implemented right away in order to validate the theories that we have cited in this paper. The data’s were then studied by the economic analysts of Scottsdale in order to have an in depth understanding of the current status of Marrakesh and in order for us to be guided in the actions that we are going to undertake. REFERENCES Phelps, Edmund S. â€Å"Low-Wage Employment Subsidies Versus the Welfare State. † 2007. Ranis, Gustav. â€Å"Human Development and Economic Growth. † 2004. Shagazatova, Batir Mirbabayev and Malika. â€Å"The Economic and Social Impact of Tourism. † 2005. How to cite B2B and International Exercise, Papers

Missio Dei Seeing Inside Insider Missiology

Question: Describe about a Article for Missio Dei gives the essence of human life enrichment by practicing Christianity? Answer: Introduction Missio Dei gives the essence of human life enrichment by practicing Christianity, which can be increased by enhancing the amount of churches globally. Missio Dei means, sending of God, which indicates the preachers need to follow the definition of missional church. In this essay, the significance of churches for practicing Christianity and the idea of Missio Dei will be explained. The ideas of incarnational practice, soteriology, christiology and doctrine of Trinity and incarnational mission will be explained. The ideas will relate with the blessings of communities and cross-cultural benefits so that more individuals get the essence of divine nature of God. Significance of Missio Dei for Church Missio Dei is the theological term that has originated from Latin Christianity, which in English is known as mission of God or the sending of God. From the second half of 20th Century, the concept of missiology has come into dominance. Hartenstein was the first person who introduced the term Missio Dei. The term was initially not included into the doctrine of Trinity. According to Gill (2014), Trinity defines God in three different perspectives, which are Father, Son and Holy Spirit. In the past half of 20th Century, the mission of God was not so much decisive, but with the extension of time, more amount of Churches were established with which Christianity started to expand all over the world. The message of God was not restricted to the responsibility of the Church, but with the persons who restored faith within themselves. The church was considered to be only the area or the medium through which message could be conveyed. The persons who are responsible for spreading Christianity a re Bishop, Priest, Nun and Archbishiop. These people are considered to be the agent of God and restore the responsibility of spreading Christianity. Spreading of Christianity is not an actual activity of Church, but the activities are restored within such people who have faith within themselves. The people who have faith within themselves are the sole person who has the essence of life and existence of humanity. According to Vanhoozer (2013), God never acts as the motive of spreading Christianity, but the disciples bestow faith within themselves who carry out Christianity all over the world. On the other hand, Kang (2015) pointed out that Christianity could be spread to such individuals who have faith within themselves. Individuals who love themselves retains the message of God within them and therefore they act is spreading more concepts of Christianity in the communities. Therefore, it can be said that Christianity concept can be only spread within such area where the essence of humanity is restored. People, who love the acceptance of divinity, are the sole person who can spread more concepts of Christianity. According to Oborji (2016), Christianity is the purest form of religion, which does not force any individual to be converted. The amount of conflict and disrespect is the lowest in Christianity. Therefore, it can be said that the amount of Christianity conversion will be highest in Christian religion. If individuals are forced to be converted then differences in communities will raise conflict. Reimer (2013) pointed out that Christianity religion devotes peace within its disciples. God does not preach disrespect among its disciples, but encourages hearing the problems in their lives. Thus, it can be said that Christianity will not let any individual to be deviated with false rituals. According to Okesson (2015), the agent of God with respect to Missio Dei, must have the in-depth knowledge of Christianity. Missiological Criteria denotes that individuals have the opportunity to change their religion into Christianity without changing their culture. Cultural context does not hinder the individuals to be converted into Christian. Tan (2012) pointed out that mission of God is to bestow faith within individuals, which can be delivered by the Missiological Criteria. The Bishops and Pastors deliver this criterion to the individuals at every Friday. This can be said that the individuals who deliver Christianity theory do not have the required knowledge, as The Bible has a huge amount of concepts. Skreslet (2012) pointed out that the amount of churches are increasing globally, which defines that the amount of individual conversion into Christianity are increasing. This is only happening because individuals do not have to change their culture with the change in religion. On the other hand, Bartlotti (2013) pointed out that Missio Dei though relates to the concepts of Christian Theology, but the conveyer in churches does not have the required knowledge of Christianity. As a result, many individuals are not getting the essence of divine power. Furthermore, Gallagher (2014) pointed out that members of Church conveys the message of God by using several lectures, seminars, meetings and by delivering leaflets around the society. Thus, it can be said that the amount of Christianity conversion has increased a lot where they has got the actual essence of life, faith and peace. According to Loades (2013), the mission of God is divided into variety of ways, among which soteriological terms, cultural terms and ecclesiastical terms are the main pillars of theology. The soteriological terms refer to saving the individuals from external damnation. Individuals who are converted into Christianity are getting the assistance from divine sources so that they are protected from any harm and for this, they do not need to change their culture and customs. According to ecclesiastical category, expansion of church helps in the formation of new communities who are having the best knowledge of Christianity (Gill 2014). Finally, according to cultural terms, individuals are to be included from South and East to get the blessings and privileges from Christian West. According to Vanhoozer (2013), the mission of God is not the stallion activity of Church but it is actually the result of initiative taken by God so the individuals are healed and their purpose is restored. The word mission means sending, which denotes the description of Gods purpose so that individuals carry out the mission of faith restoration within the divine nature of human history. On the other hand, Kang (2015) pointed out that The Biblical message is rather more radical and inclusive so that individuals get more interest in Christianity. The picture of Jesus Christ is not the actual nature of the goal of the Gospel, but it acts as the instrument or witness to influence human concept on Christianity. The missionary churches in the communities influence the motivation of getting more identify about the divine nature of God. Missio Dei has a great significance for the church. This is because Church is the only location through which the voice of God can be reached to individuals (Oborji 2016). The translators try to inculcate the knowledge of Christianity by speaking more about the contribution of God. The preachers do not describe the complex nature of The Bible in the most efficient way as they lack in knowledge. Therefore, the true essence of Missio Dei needs to be learnt by the preachers. This can be increased with the increase in number of Churches. According to Reimer (2013), A working definition of missional church is a community of Gods people that defines itself, and organizes its life around, its real purpose of being an agent of Gods mission to the world. Therefore, it can be said that missional churches creates the obligated destiny of faith among the individuals. The mission of God flows though believer of community that adheres to the faith of Jesus. With the extension of community and inte rcultural differences, Christianity will act as the string of bonding among different peoples (Sanou 2013). The integrated relationship between soteriology, christiology and doctrine of Trinity will displace the versions of doctrine of grace among the individuals, which can be entertained by the increase in number of Churches. The argument of incarnational mission is justified by the increase in Churches. The following and imitating of Jesus will help in devoting peace within oneself and thus the quality of existence will be enriched through the broad scope of centrifugal missional practices (Verster 2015). As described earlier, the missiological criteria can be figured out in the following Father-son-spirit. Three main pillars, which are father, son and spirit, have described the concept God and these are to be restored with the individuals who transform their religion into Christianity. This structure will be described according to Appendix 1, where it can be found that missional God sends ideas to missional church and then finally to global orientation where individuals are transformed through the Gods spirit. The mission is the incarnational practice of church where individuals get motivated about the essence of purity. According to Sanou (2015), church and missions are not separate entities. Only through the emergence of churches, individuals get in contact with God. Often it is found that individuals try to escalate their lifestyle issues in the churches to seek help from the prophets. At the time of addressing the issues, the preachers convey the essence of Christianity and the s everal theories of missional criteria. If the preachers of Christianity are able to deliver the best idea of God, then surely the individuals will be satisfied as God tries to save individuals from eternal damnation (Yong 2014). Historical salvation, amenity and faith enhances the lifestyle of individuals. According to Kim (2016), People who have lost the essence of life, who have failed to gain faith and significance of religion, will be satisfied by the helping hand of God. Missio Dei communities enriches existence of life by preaching the biblical story. According to this story, the individuals act as a family, where God is the father. God cares his children and protects them from damnation. Individuals in the communities act as brothers and sisters, which acts as the opportunity of being the part of each others lives (Kim 2013). In this way, hatred and frustration among each other lives will be reduced. Through the Missionaries, Jesus sends out blessing to the churches to engage and bless the communities all over the world. The churches act as the locations, where individuals get the idea of Christianity and communion with the almighty. The gospel is to be affirmed and established in substantial, understandable customs by individuals who are following Jesus (Ross 2014). God has entitled individuals to be energetically occupied in His enduring toil in this planet and will cuddle this realism as a put into practice on the lives of individuals. This aspect of mission is not thought to be the exemption to being, but the innate reaction to who God is and what He has done or is doing for the individuals (Stewart 2013). Thus, it can be said that emergence of churches will help in relating the essence of Christianity among the different classes of people, which will increase the possession of faith and love among individuals. Conclusion While concluding it can be said that Missio Dei or the mission of God can be only enhanced by increase in churches. A church will act as the medium of giving message of God within several communities. It has been also found that churches will consist of several preachers of Christianity who will poses the believes of Gods. Missio Dei gave the idea of Missiological Criteria, which indicated that individuals can change their religion into Christianity without changing their own traditional culture. It can be said that with the increase in number of churches, more individuals will get to know about the divine nature of God. When individuals will get to know about the fact that own culture need not be changed for getting converted into Christian, then surely more amount of individuals will get the essence of divine nature of God. On the other hand, it can be said that when communities find that there is different culture for same religion, and then conflict may arise in the society in fu ture. It is sure that with extension of churches, Missiological Criteria will be enlarged in different parts of the nation. Thus, the significance of church regarding Missio Dei is justified as it has been found that only by the extension of churches more individuals can be converted into Christianity. Bibliography Bartlotti, L., 2013. Seeing Inside Insider Missiology: Exploring our Theological Lenses and Presuppositions. Gallagher, S.D., 2014.Abrahamic Blessing: A Missiological Narrative of Revival in Papua New Guinea(Vol. 21). Wipf and Stock Publishers. Gill, B., 2014. 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