Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
These countries generally compete against other African states in order to attract more investors and, when the resources are insufficient to convince these foreigners, state officials engage in frauds.
4. Impact on International Business Setting
The increased levels of fraud generate a series of chain reactions upon the business setting within Senegal and Mali. First of all, they reduce general trust in the economic and political systems. This then means that foreign investors are not attracted to the region and that developmental opportunities are reduced. This in turn materializes in the lack of new jobs. It means as such that the federal authorities are unable to cash in taxes from foreign investors conducting business operations within Senegal and Mali. Consequently, the large majority of the taxes will be imposed onto the national population. Despite the increased fiscal charges that generate populous dissatisfactions, the governments will still be unable to gather sufficient money to invest in the development of the public services, such as education, healthcare or infrastructure. More clearly, the direct effects of fraud are: "market allocation mechanisms are distorted; human and capital resources are diverted from productive activities; and the state and its institutions are undermined. Consequently, political stability and independent economic policy are endangered" (Stasavage and Daubree, 1998). All in all,...
Conclusions
The countries of the African continent have for years struggled with national and international challenges. Despite the major improvements that have been made, fraud operations are among the highest at a global level. Illicit trade operations generate negative effects upon local businesses as well as the counties' overall international position. The high levels of corruption are pegged to the still unstable political and economic climate in Mali and Senegal (Humphreys and Mohamed). This leads to the simple conclusion that international fraud, analyzed through the lenses of both institutions as well as resources, is only possible once political stability is achieved.
References:
Altman, L.K., Broad, W.J., Global Trend: More Science, More Fraud, December 20, 2005
Barney (1986) and Hunt (1990), Resource-Based View of the Firm
Humphreys, M., Mohamed, H.A., Understanding Civil War -- Senegal and Mali
Peng, M.W., Wang, D.Y., Jiang, Y., An Institution-Based View of International Business Strategy: A Focus on Emerging Economies, Journal of International Business Studies, 2008
International Finance The three companies that will be evaluated for purchase are LG, Sony and Xiaomi. Some of the report will discuss the individual companies, but a large portion of this report will go into discussing the country situations of these companies. They hail from South Korea, Japan and the People's Republic of China respectively. The differences between these Northeast Asian countries can be significant, and it is these differences that
" (2008) It is also reported that the companies and banks are hurting in all economies that are "dollarized" economies" or those in which devaluation of the Dollar is occurring in recent years. While high Dollar inflows first drive growth and production, the capital inflows tend to hurt banking profitability when governments try to "mop up" excessive liquidity and sterilize Dollar inflows in exchange for low-yielding government bonds. China's banks, for
By suggesting that increased amounts of free trade promote a conflict-free international market, McDonald makes a revolutionary argument that may bolster not only the international financial market, but also political and strategic alliances between states. Both unique and significant, McDonald's argument that increased amounts of free trade between states lead to decreased amounts of conflict has strong implications not only for the field of international finance, but also for a
The size of the market and its characteristics must be considered, to ensure that there is ample opportunity in the market. The expertise of the firm should be a factor, since expertise in a given market, or type of market, can play a significant role in organizational success. The governmental/legal environment must be carefully considered. Each country has its own approach to FDI, some being more open than others. In
The risk associated with acquisition is higher, as this includes the price paid for the acquisition and then the cost of managing the operations. However, the acquisition is likely to result in the greatest revenue growth in the short-term. Question 2 - Size and International Opportunities There are certain circumstances in which the size of a firm is not affected by intentional opportunities. If a firm uses strategies such as licensing
International Finance Islamic Financing - Sukuk Al Murabaha, Sukuk Al Musharaka and Sukuk Al-Wakala Islamic Finance is financing which is compliant with the requirements of the Shari'ah. While the concepts are centuries old, the foundations of Islamic banking and the modern financial tools which have been developed as compliant with Islamic law are relativity recent; early development seen to start in earnest in Egypt in the 1960's (Khan and Mirakhorv, 2005). The