Foreign Direct Investment Essays (Examples)

Executive Summary This paper provides a proposal for the company on the most suitable country or emerging market for the company to expand its production of ready meals. Ready meals markets have been steadily growing in recent years across all geographical regions of the world. The proposal is based on the increased growth of ready meals markets and institutional analysis of India and China, which are two emerging markets that continue to experience high levels of growth. While India and China are some of the leading emerging markets worldwide, its important for the company to determine the most suitable market to enter. Therefore, this paper seeks to answer the question, “Which emerging market is suitable for expansion of ready meals production between India and China?” To answer this question, the researcher conducts an institutional analysis of each country and identifies opportunities and threats in the market. The analysis is based…

References
Foger, G.K 2010. Business Environment in China: Economic, Political, and Cultural Factors, University of Southern Indiana, viewed 7 June 2018,

Gaffney, C 2017. US Risk is Rising. Here are Two Emerging Markets that will Outperform, CNBC, viewed 7 June 2018,

Mourdoukoutas, P 2017. 10 Top Emerging Market Funds in 2017: China and India Take The Lead, Forbes, viewed 7 June 2018,

Pavithran, S. & Mukthar, J 2011. A Comparative Study on the Emerging Economies of the World: India or China. International Journal of Economic Issues, vol. 4, no. 1, pp.123-131.

Though this research will not provide all necessary data for such a project to be undertaken, it will explore the issue form a side and perspective not often utilized, shedding light on an essential yet often-overlooked aspect of the foreign trade relationship.

esearch Methods

Qualitative research is perhaps not the first thing thought of when conducting a trade analysis, but its importance to a proper understanding of the trade relationship cannot be overstated. Such research and analysis requires that the situation be examined in its human terms in addition to the numeric values and inferences drawn from quantitative research and analysis. In determining the perceived motivations and barriers to direct investment, this research will essentially be attempting to analyze and predict responses to changing business situations, and such research almost necessarily takes on a qualitative form (Bavdaz 2009). The predictive value of the proposed qualitative research is, in this instance,…

References

Bavdaz, M. (2009). "Conducting research on the response process in business surveys." Statistical Journal of the IAOS 26(1/2), pp. 1-14.

Diefenbach, T. (2009). "Are case studies more than sophisticated storytelling?: Methodological problems of qualitative empirical research mainly based on semi-structured interviews." Quality & Quantity, 43(6), pp. 875-894.

MOFA. (2003). "Saudi-British Relations." Ministry of foreign affairs. Accessed 6 March 2010.  http://www.mofa.gov.sa/Detail.asp?InSectionID=2306&InNewsItemID=28862 

Lavery, B. (2005). "World Business Briefing | Europe: Britain: Saudi Prince Buys the Savoy." NY Times 20 January, pp. 6.

The nation also has an estimated budget surplus of over one-hundred billion dollars, making a continued expansion of infrastructure spending as well as stimulus money -- if needed -- and the provision of incentives to future domestic and foreign business development in the country highly likely (Siddiqi 2008). Oil money, though not the sole source of Saudi Arabia's significant wealth and stability, has played a major part in the country's ability to ride out this economic storm largely unscathed, with hardly a misstep in their march of progress (Siddiqi 2008).

A repetition of a similar analysis at the end of 2009 shows that the country has in fact taken a hit form the global economic downturn, which could hardly be avoided, but the picture is far from dire for Saudi Arabia (Siddiqi 2009). Infrastructure investment is still taking place, and a more in-depth analysis of Saudi Arabia's long-term spending and…

References

Bushnak, A. (2001). "Investment Needs and Privatization of Water Services in Saudi Arabia." International Journal of Water Resources Development (17(2), pp. 257-60.

Siddiqi, M. (2005). "The rise and rise of an equity culture." Middle East (361), pp. 44-9.

Siddiqi, M. (2008). "Saudi Arabia: Bucking the global trend?" Middle East (392), pp. 44-8.

Siddiqi, M. (2009). "Responding to international crisis.." Middle East (401), pp. 46-50.

In addition, a series of joint ventures in which West German steel firms joined with East German firms and Krupp, Klockner, and Thyssen of Germany was pursuing other developmental initiatives in eastern Europe as well. Likewise, Arbed of Luxemburg was involved in steelmaking facilities in the former East Germany. According to Mangum et al., "The rising market for improved galvanizing for automobiles, appliances, canning, and other uses is producing a rash of joint ventures throughout the world. Some of these are internal to various countries and others involve international partners" (p. 74).

As a result, nearly 30% of the world's steel supply is now produced by plants belonging to companies that did not exist just 3 decades ago (Ahlberg, Pitkanen & Storsch 1999). As these authors point out, "Such upstarts have entered a global market that since 1980 has grown by less than 1% a year -- an average combining…

References

Ahlberg, J., A. Pitkanen and L.L. Schorsch. 1999. "Forging a New Era for Steel." The McKinsey

Quarterly 83.

Altunisik, M.B. And O. Tur. 2004. Turkey: Challenges of Continuity and Change. New York:

Routledge.

8).

Wiles (2003) note ways in which Chinese practices of technical communication are affecting foreign businesses operating in China and some of the Western methods that China has to learn to be effective. Specifically, Wiley notes how Western companies have developed single-souring skills that the Chinese will have to adopt to be successful in technical communication. Chinese culture is a high-context culture in which information is more tacit and less explicit, and Chinese culture therefore places less focus on the user. The explicit nature of Western communication works in the Chinese context because it is based on making the user understand, and the Chinese will have to adopt this same approach in order to trade with the West, where the user wants to be the center of attention and wants to be informed directly.

A report by Anthony (2003) also suggests that China's business culture is being changed by foreign…

References

Anthony, T. (2003, December 12). U.S. companies changes Chinese lives - and corporate culture, too. AP Worldstream. Retrieved August 11, 2007 at  http://www.highbeam.com/doc/1P1-88501330.html .

Bates, C. (2005, July 1). Leveling the international playing field: while some foreign trade practices are simply unfair, recognizing that is one thing; doing something about it is another. American Machinist. Retrieved July 13, 2007 at  http://www.highbeam.com/doc/1G1-134386431.html .

Bodeen, C. (2006, January 25). Google Launches Search Engine in China. AP Online. Retrieved August 13, 2007 at  http://www.highbeam.com/doc/1P1-117759613.html .

China Compulsory Certification (CCC Mark) (2006).  http://www.export.gov/china/exporting_to_china/CCCUpdatedInfo.pdf .

Foreign Policy of China (Beijing consensus)

Structure of Chinese Foreign Policy

The "Chinese Model" of Investment

The "Beijing Consensus" as a Competing Framework

Operational Views

The U.S.-China (Beijing consensus) Trade Agreement and Beijing Consensus

Trading with the Enemy Act

Export Control Act.

Mutual Defense Assistance Control Act

Category B

Category C

The 1974 Trade Act.

The Operational Consequences of Chinese Foreign Policy

The World Views and China (Beijing consensus)

Expatriates

The Managerial Practices

Self Sufficiency of China (Beijing consensus)

China and western world: A comparison

The China (Beijing consensus)'s Policy of Trading Specialized Goods

Chapter 5

The versions of China (Beijing consensus)'s trade development

The China (Beijing consensus) Theory of Power Transition

eferences

Foreign Policy of China (Beijing consensus)

Chapter 1

Abbreviations

ACD arms control and disarmament

ACDA Arms Control and Disarmament Agency

ADB Asian Development Bank

ADF Asian Development Fund

APEC Asia-Pacific Economic Cooperation

AF ASEAN [Association of Southeast…

References

Barnett, A.D. (1977). China (Beijing consensus) and the Major Powers in East Asia. Washington, DC: The Brookings Institution. Retrieved September 10, 2011, from Questia database:  http://www.questia.com/PM.qst?a=o&d=34158088 

Boorman, H.L., Eckstein, A., Mosely, P.E., & Schwartz, B. (1957). Moscow-Peking Axis: Strengths and Strains (1st ed.). New York: Harper & Brothers Publishers. Retrieved September 10, 2011, from Questia database:  http://www.questia.com/PM.qst?a=o&d=53424557 

Sardesai, D.R. (1974). Chapter 6 India: A Balancer Power?. In Southeast Asia under the New Balance of Power, Chawla, S., Gurtov, M., & Marsot, A. (Eds.) (pp. 94-104). New York: Praeger. Retrieved September 10, 2011, from Questia database:  http://www.questia.com/PM.qst?a=o&d=14691923 

Chawla, S., Gurtov, M., & Marsot, A. (Eds.). (1974). Southeast Asia under the New Balance of Power. New York: Praeger. Retrieved September 10, 2011, from Questia database:  http://www.questia.com/PM.qst?a=o&d=14691822

Foreign business environment: Columbia

A. What events (political, economic, and technological) are the most important in recent years that might have impacted the business culture in Colombia?

Individuals who perceive Colombia as still being paralyzed by crime networks and drug cartels are skeptical and bewildered by the notion of a confederation of politicians, business leaders, and academicians visiting the nation. However, in reality, the situation in Colombia is far different from what it was a mere ten years ago.

Colombia’s infamous cruel and powerful drug cartels emerged during the latter part of the seventies era and developed in the subsequent two decades. Specifically, the Cali Cartel and Pablo Escobar’s Medellín Cartel were politically, socially and economically influential in the nation in this period. During the last two decades of the twentieth century, the world regarded the nation as being well on its way to becoming a failure as a state.…

This also implies inadequacies in fiscal sustainability, which influences investments in private sectors.

The second channel happens through the level, composition and quality involved within the public investment, which shows the level at which the public investment replaces the private investments (Schmidt- Hebbel, Serven, & Solimano, 1996).

The final channel regards the level of taxation on the corporate earnings and the rules applicable in depreciations.

There have been arguments that fiscal policy and public expenditure reduces the private investments in two different manners. These include increasing the interest rates or lowering the private funds involved in financing the investments.

According to the neoclassical theory, the interest rate is also an imperative variable in finding the level of investment. Consequently, it results into a negative effect because it upsurges the interest payable in investments. Concurrently, McKinnon and Shaw, contends that this is likely to cause a positive relationship between the investment…

References

Shrestha, M.B. (2005), "ARDL Modelling Aproach to Cointegration Test," Proceedings of the 46th Annual Conference of New Zealand Association of Economists, Paper

No. 13, Wellington, July 2005.

Keynes, J.M. (1936). General Theory on Employment, Interest and Money., London,

Macmillan.

The State is just taking back its rightful property under the contractual obligations of the agreement signed between the host State and the foreign investor who' assets are being seized in the expropriation. Another cause for direct expropriation is the concept that the State will in some way gain financially, socially, or economically from the expropriate assets beyond their value of compensation. If a particular investment can generate more positive results in the hands of the State, it is legal to file expropriation proceedings if the full value of compensation is covered as determine by an international tribunal.

In the European Union, direct expropriations are most common. Based on a common peace and favorable diplomatic relations between the countries within the European Union, there is little need for many investors to worry about unlawful and forceful expropriation, as seen in developing or communist nations. Some investors may invest within a…

References

Dolzer, Rudolf & Schruer, Cristoph. (2008). Principles of International Investment Law. Oxford University Press.

Edsall, Rachel D. (2007). Indirect expropriation under NAFTA and DRCAFTA: potential inconsistencies in the treatment of state public welfare regulations. Boston University Law Review. Vol 86:931-962.

Hober, Kaj. (2007). Investment Arbitration in Eastern Europe: In Search of a Definition of Expropriation. Juris Publishing Inc.

Merriam-Webster. (1998). Collegiate Dictionary. 1 oth ed. Merriam Webster Publishing.

When this happens, the standard of living and income levels will remain stagnant. (Bhargava, 2006, pp. 341 -- 362) (Cazurra, 2008, pp. 12 -- 27)

Moreover, corruption will increase the costs of doing business inside a particular area. This is troubling, as it will lead to less employers relocating to the region. Instead, they will seek out locations where there are lower amounts of corruption. This is a part of an effort to keep their costs as low as possible so that they can increase their overall returns and remain competitive in the global marketplace. For the region, this will result in less high paying jobs (which helps contribute to an increase in the unemployment rate). (Bhargava, 2006, pp. 341 -- 362) (Cazurra, 2008, pp. 12 -- 27) (Heineman, 2006, pp. 75 -- 86)

How can MNCs deal effectively with these problems?

The ways that MNCs are able to deal…

References

Berg, N. (2004). How Multi-National Corporations Deal with their Social Political Stakeholders. Asian Business and Management, 3 (3), 299 -- 313.

Bhargava, V. (2006). Global Issues. Washington DC: World Bank.

Cazurra, a. (2008). The Types of Corruption and FDI in Transition Economies. Journal of International

Management, 14 (1), 12-27

Dell, HP, Microsoft, Exxon Mobil and Wal-Mart has emerged as the strong candidates in the international market, which has been possible only because the companies have avoided and curtailed the possible security risk either through strategy in which the focus has been to aver the security concerns either through provisions for the social welfare of the people in the region, or through relocation (Erik, 2004). The United States has therefore maintained its lead in the war of trade in the field of globalization with the weapons of research, technological advancement and services fully active and supportive.

ecommendations

It is proposed that the country should devise a strong security monitoring system which should be compatible to the economic and trade system and linkages of other countries, the government of the United States should not design its economic policies as per the security concerns prevalent in the certain regions, rather areas of…

References

Dell Champlin, Paulette Olson. The Impact of Globalization on U.S. Labor Markets: Redefining the Debate. Journal of Economic Issues. Volume: 33. Issue: 2. 2001. Association for Evolutionary Economics.

Kunihiko Imai. The Impact of Globalization on Civil Liberties: Asian vs. Non-Asian States. International Journal on World Peace. Volume: 19. Issue: 1. 2002. Professors World Peace Academy.

Erik S. Reinert. Globalization, Economic Development and Inequality: An Alternative Perspective. Edward Elgar Publishing. 2004. pp. 23-67.

Jonathan Michie, John Grieve Smith. Globalization, Growth, and Governance: Creating an Innovative Economy. Oxford University Press. 2001. pp. 103-129.

S. has unilaterally imposed sanctions to punish ran for its support of these activities. To address the shortages from this embargo, the ranian government has been working on developing nuclear power. They claim that this will help to tackle the nation's current and future energy needs. (Khan, 2010, pp. 77 -- 110)

This has led to the UN imposing another embargo against the slamic Republic for their continuing incompliance with international law. At the heart of the issue, are concerns that ran is using their nuclear energy program as a cover for developing an atomic bomb. The fear is that the ranians will pass on nuclear related materials to terrorist groups or they will use these weapons to attack the U.S. To prevent this from happening, America is leading an international effort to further isolate ran. n response, ran has been defiantly working on their program. This has caused the…

In the case of Iran, they are at the far end of the spectrum by wanting to destroy the U.S. And everything that it stands for. This has increased the amount of covert actions that are taken against the Islamic Republic. At the same time, this helps the U.S. To push its trading partners to isolate Iran (which is causing their economic situation to become even worse). This is showing how America's approach can be used as way to reward or punish a country for their activities. (Sutter, 2012, pp. 37 -- 59)

In the case of China, the fact that they were willing to work with the U.S. And implement many of the economic reforms led to improved relations between both countries. This is when China received favored trading status and was provided with tremendous amounts of foreign direct investment capital (which helped to increase economic development). These changes were occurring despite China's terrible human rights record and lack of political changes. This is showing how efforts to implement at least some of the reforms led to more support in the future from the U.S. (Sutter, 2012, pp. 37 -- 59)

These different approaches are illustrating how the U.S. is rewarding those countries that are in support of international standards with various forms of economic and military aid. While nations that are unwilling to do this, will face the possibility of isolation. This is designed to put pressure on

Country

China and Foreign Policy

With reference to any ONE country you have studied, how far does interdependence shape its foreign policy and in what ways

A Brief History of Chinese Foreign Affairs

China eforms

Current Foreign Policy

Foreign elations and Interdependency

China is an emerging force in the world, and it seems only to be natural, as the Chinese civilization is one of the ancient civilizations of the world. In fact theorists seem to question the reasons for its downfall, as it is the largest and has historically been the cultural and educational center for the world.

As far as its foreign policy is concerned, the Chinese government deals with it in a unique way, where the foreign affairs are the business of the Ministry of Foreign Affairs, which falls under the ambit of a department called the "Foreign Affairs Leading Small Group of the Communist Party of China."…

References

Barboza, D. 2011. Entrepreneur's Rival in China: The State. New York Times .

Chen, J. 1979. China and the West . Hutchinson.

China. n.d. [Online] Available at: (26 January 2012)

China's Foreign Affairs and International Relations. 2012. . [Online] Available at: (26 January 2012)

International Investments

The global carmaker work investing automobile assembly facility Chennai, India a local partner. Explain potential reasons investment. Will company exercise a great deal control operation? Why ? Over areas company exercise control, areas cede control partner? If required resources http://hbswk

Automotive company: Investing in Chennai, India

While the automotive market of the developed world could be described as supersaturated, the market for cars in the developing world is growing. Establishing our company as a multinational firm could be an important cushion against potential economic downturns in the future. Our company, like so many automobile companies, was hard-hit by the economic recession. "On average, establishments with multinational ownership performed better than local competitors, but there was considerable differentiation in the role of foreign direct investment" (Alfaro & Chen 2010). Although all sectors of the global economy felt repercussions from the crisis, not all nations were equally hard-it and some…

References

Alfaro, Laura & Maggie Chen. (2010). Surviving the global financial crisis. HBS. Retrieved:

 http://hbswk.hbs.edu/item/6451.html 

Park, Daniel. (2008).Managing alliances, joint ventures. B2B International. Retrieved:

 http://www.b2binternational.com/publications/white-papers/managing-alliance-jv/

185). Components for these products may be manufactured and put together in branches in various countries throughout the world. Thailand, Malaysia, Singapore, and Hong Kong were involved in the earliest types of production sharing, which included assembling electronic components manufactured in other countries. Production sharing, one World Bank study determined, currently contributes to approximately 30% of manufacturers' total global trade. Foreign affiliates' international exports approach over 7% of global GDP, approximately $2 trillion.

Conclusion

The World Trade Organization (WTO), which came into being in 1995, the only worldwide international organization that deals with rules of trade between countries, maintains their goal to be to assist producers and manufacturers of services; goods; exporters; importers in carry out business. ("What..., 2006, para. 1) "One of the youngest of the international organizations, the WTO is the successor to the General Agreement on Tariffs and Trade (GATT) established in the wake of the Second…

References

Andrews, R., Biggs M., & Seidel, et al. M. (Eds.). (1996). The Columbia World of Quotations.

New York: Columbia University Press. Retrieved on June 7, 2006 at  http://www.bartleby.com/66/50/1950.html& ;

 http://www.bartleby.com/66/45/39445.html .

Barrera, A. (2004). "Who Benefits from Outsourcing?" Retrieved on June 7, 2006 at http://www.religion-online.org/showarticle.asp?title=3115.

China's Economy And Foreign Policy

There have been radical changes in the internal political and economic scenario of China during the last two decades. (Lampton, 2001) The growing economic stability and control has increased the status of china to a great extent among its trading counterparts. Further, it has become obligatory on the part of the Chinese Government to make it certain that the economic development to restructure the political discipline whose ideology had a severe jolt with the fall of Soviet Union. (Part Two - Chinese Foreign Policy) Ever since the inception of economic reforms in China during 1978 there is a considerable enhancement in the Gross Domestic Product to the tune of 9.5% per annum on average. It is pertinent to probe on the factors responsible for such a great success. The success is attributed to the adoption of institutions and policies by the Chinese Government that could…

References

Burns, Robert (1997) "Gore, Gingrich set missions to woo China" The Associated Press.

Carr, Earl. (February 19, 2004) "U.S. Diplomacy Needs Chinese Characteristics" Asia Times. pp: 5-7

Chinese Foreign Policy. Program for Contemporary Silk Road Studies. Retrieved from http://www.silkroadstudies.org/china.htm Accessed on 18 March, 2005

Chow, Gregory. (2000) China's Economic Reform and Policies at the Beginning of the 21st Century. Perspectives. Vol: 2; No: 1; pp: 47-53

l Finance

In a sense, a foreign acquisition target is assessed in much the same way that any other target would be, but the specifics of the evaluation may differ. All acquisitions must be priced, and this price needs to take into account all of the different risks. The difference with foreign acquisitions is that the risks are going to have different weights. For example, there is little incremental political risk involved in a domestic acquisition, but there is with an international one. Sometimes, there is a lot of incremental political risk. Foreign acquisitions will typically involve foreign exchange rate risk, to a higher degree than the firm currently faces. Post (2006) notes that there are often risk premiums associated with foreign acquisitions, and these risk premiums can increase the price and reduce the return

So because the risk profile of international acquisitions is different, the hurdle rate for such…

References

Investopedia. (2014). Real option. Investopedia. Retrieved October 15, 2014 from  

GM's Chevy Volt and its all-electric design, as well as diesel-electric and conventional gas-electric hybrids could and must replace the image of the 'old' GM in the public's imagination. The company has shed the Hummer stigma, now it must create a new image for itself in the future, not just domestically, but internationally.

orks Cited

Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009

http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml

General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.

Retrieved August 6, 2009.

http://topics.nytimes.com/top/news/business/companies/general_motors_corporation/index.html

Hu, Lei. (2008). GM's joint venture is China's top-selling brand in 2007. Edmunds.

Retrieved August 6, 2009.

http://www.edmunds.com/insideline/do/News/articleId=124379

Jason. (2004). The global hybrid race: Is Europe catching the fever. GreenHybrid. Retrieved August 6, 2009 at http://www.greenhybrid.com/wiki/index.php/The_Global_Hybrid_Race:_Is_Europe_Catching_The_Fever%3F

ald, Matthew. (200, August 5) $2 million in grants to speed up electric car manufacturing.

The New York Times. Retrieved August 6, 2009.

http://www.nytimes.com/2009/08/06/business/06battery.html?scp=2&sq=GM%20China&st=cse

Ying, Tina &…

Works Cited

Gas-free cars future priority. (2009, April 20). China Daily. Retrieved August 6, 2009

 http://en.ce.cn/Industries/Auto/200904/20/t20090420_18857964.shtml 

General Motors. (2009). Company history. Updated August 4, 2009. The New York Times.

Retrieved August 6, 2009.

Investment Demand

usinesses experience profit cycles implying that market fluctuations are inevitable in an economy. Market demand plays a crucial role in the profitability of an enterprise and consequently affects the investment trend. A profitable firm is more likely to invest money to improve production facilities or to extend its business into other domains. Investors will analyze the profitability of any undertaking and only if the expected revenue is greater than the cost of capital will they invest in the project. Keynesian theory also states that the Marginal efficiency of Capital is inversely related to investment. "[t]o induce new investment 'the rate of return over cost must exceed the rate of interest'. [Richard C.. Johnsson] For all businesses profit is the ultimate motivation and any new venture is undertaken only if the internal rate of return is above the cost of capital defined by the prevailing rate of interest. Hence…

Bibliography

J. Bradford DeLong, From Investment Demand to the IS Curve: Low Interest Rates," Accessed on June 7th 2004, http://www.j-bradford-delong.net/multimedia/ISLM2.html

Richard C.B. Johnsson, 'The Liquidity-Trap Myth', Accessed on 7th June 2004,  http://www.mises.org/fullstory.asp?control=1226

Foreign Corrupt Practices Act: What it Is and What it Does

The Foreign Corrupt Practices Act of 1977 as amended was passed in response to the discovery of numerous corporate misdeeds, including accounting irregularities, by Northrop, Lockheed, Gulf Oil by the Watergate special prosecutor and a subsequent investigation by the Securities and Exchange Commission that found these practices were prevalent in American business, including nearly a quarter of the Fortune 500 companies. This paper provides a review of the relevant literature to determine the rationale in support of the passage of the Foreign Corrupt Practices Act and what it prohibits. An analysis concerning the impact that the Act has had on American business at the national and international level is followed by a discussion concerning penalties for violations of the Act. An assessment of the impact on U.S. commerce is followed by a discussion concerning enforcement responsibility for the Act…

References

Boedecker, K.A. (2011, July 1). Rising risks and uncertainties for U.S. firms' gifts, travel and entertainment expenses for marketing in foreign countries: The implications of increased

Foreign Corrupt Practices Act enforcement. Journal of Legal, Ethical and Regulatory

Issues, 14(2), 73-77.

Culp, C.L. & Niskanen, W.A. (2003). Corporate aftershock: The public policy lessons from the collapse of Enron and other major corporations. Hoboken, NJ: Wiley.

Foreign Direct Investment

Why has foreign direct investment (FDI) increased in recent decades?

According to the OECD, (Organization for Economic Co-operation and Development), one of the major trends in the global economy during the recent decades is the increase in the foreign direct Investment (2001, p.101). Foreign direct Investment is the process of establishing, owing and controlling the production of goods and services in the foreign country or in simple words, it can be defined as the real assets which are abroad. It is associated with the transitional corporations which expand their global activities.

If we go back 50 decades, we find out that foreign direct Investment was considered as an unhelpful, unconstructive, negative and a method of introducing improper technology for the developing countries. However, a completely different view of FDI has emerged in the last two-three decades and today it is considered as very beneficial for the economic…

References

Aghion, P & Howitt, P., 1998, Endogenous growth theory, MIT press, Cambridge Massachusetts.

OECD, Organization for Economic Co-operation and Development. 2001, New horizons for foreign direct investment, Global Forum on International Investment.

Urata, Shuijro & Kawai, H., 2000, "The Determinants of the Location of Foreign Direct Investment by Japanese Small and Medium-sized Enterprises," Small Business Economics 15.

UNCTAD., 1999. World Investment Report, UNCTAD, Geneva.

India Trade

The Risk of Trade ith India

Primary Concerns:

Over the course of the last decade, the once stagnant Indian economy had become among the fastest growing in the global community. The opening doors of free trade have made India a top destination for high-tech companies, a major service industry provider and host to countless foreign trade and production endeavors. However, just as its fortunes have improved with the proliferation of globalization, so too have its recent fortunes felt the decline of the global recession. As reported in an article from Businessline, Chennai, "due to the difficult financing conditions prevailing in the international credit markets and increased risk aversion by the lending counterparties, gross inflows of short-term trade credit to India declined in 2008-09 and this trend continued in 2009-10." (Anonymous, p. 1)

Still, India remains an economy rife with growth potential for foreign investors. An important factor in…

Works Cited:

Anonymous (2010). NEWS: Export credit shows declining trend. Businessline, Chennai, pg. 1. Retrieved from library portal via coursenet.

Gill, A., Biger, N., & Tibrewala, R. (2010). Understanding and Mitigating Direct Investment Risk in the Indian Real Estate Market. Business and Economics Journal, 2010, 1-10. Retrieved from  http://astonjournals.com/manuscripts/Vol2010/BEJ-2_Vol2010.pdf

However, the Thai government's guidance on growth has been conservative; if we take the orld Bank's pre-crisis estimate of 6.2% (Thailand Business News) and factor in Chatikavanij's warning, Thailand's near-term growth potential comes in at a healthy 4.2%.

From a pure value perspective, Thai stocks are already trading at relatively cheap levels (Reuters). The SET is valued at roughly 12 times estimated 2010 earnings, which makes it the second-cheapest market in Asia (behind Pakistan) and significantly undervalued compared to Indonesia (14 times 2010 earnings) or Malaysia (15.7 times 2010 earnings). hile it may be time to reconsider our sector weightings in order to take advantage of bargains in Bangkok (and dump stocks that are looking rich or in danger of deteriorating further as the political crisis continues), it would probably not be prudent to move money away from the market entirely.

The idea of reallocating some or all of the…

Works Cited

Peck, Grant. "Emergency Declared in Thailand Protests." The Associated Press. 7 Apr. 2010. Web. 27 Apr. 2010.

Plessis, Prieur de. "Mobius Sees Value in Thailand." Daily Markets. 26 Apr. 2010. Web. 27 Apr. 2010.

Globalization and Education

Globalization involves a number of different elements, including economic integration, freedom of capital movements, and the increasing "transfer of knowledge, cultural stability" and an increase in cultural interactions (Al-odhan, 2006). The process of globalization has been fostered by industrial-age improvements in transportation, communication and through political and economic liberalization. One of the antecedents of the era of globalization was the creation of the European Common Market. When this was extended to not only allow for goods and capital to move more easily across borders but labor as well, this ushered in a new era of mass migration. Today, many of the world's leading cities have incredibly diverse populations, as people from all over the world are drawn by the economic promise of major urban hubs. One of the areas where this trend can be seen is with education. For decades, education has been trumpeted as a pathway…

References

Al-Rodhan, N. (2006). Definitions of globalization. Geneva Centre for Security Policy. Retrieved November 17, 2015 from http://s3.amazonaws.com/academia.edu.documents/30929642/Definitions_of_Globalization_-_A_Comprehensive_Overview_and_a_Proposed_Definition.pdf?AWSAccessKeyId=AKIAJ56TQJRTWSMTNPEA&Expires=1447724149&Signature=KHFcmax%2BQD8oIUr9BWJZz%2BFEzb4%3D&response-content-disposition=inline%3B%20filename%3DDefinitions_of_Globalization_A_Comprehen.pdf

Grootaert, C. (1994). Education, poverty and structural change in Africa: Lessons from Cote d'Ivoire. International Journal of Educational Development. Vol. 14 (2) 131-142.

Kwiek, M. (2001). Globalization and higher education. Higher Education in Europe. Vol. 16 (1) 27-38.

Vaira, M. (2004). Globalization and higher education organizational change: A framework for analysis. Higher Education. Vol. 48 (2004) 483-510.

Wal-Mart Accounting and Finance

Determine whose rate of return (i.e., local or parent currency returns) Wal-Mart should use when evaluating foreign direct investment opportunities and justify the position.

Foreign Direct Investment (FDI) is an international flow of capital that provides a parent company or multinational organization with control over foreign affiliates. The behavior of exchange rates influences FDI activity. Exchange rates are defined as the domestic currency price of a foreign currency. Exchange rates can influence both the total amount of foreign direct investment that takes place and the allocation of this investment spending across a range of countries (Bogoslaw, 2009).

Wal-Mart is among many multinational companies that have expanded production and distribution networks globally to take advantage of opportunities for higher local rates of return, market share, and accessibility to production inputs (Nathan, 2012). This -- along with foreign government import restrictions, opening of new markets and invitation for…

References

Bogoslaw, D. (2009). Emerging Markets: Time to Invest?. Businessweek Online, 8.

Huang, Q., Nijs, V., Hansen, K., & Anderson, E. (2012). Wal-Mart's Impact on Supplier Profits. Journal Of Marketing Research (JMR), 49(2), 131-143. doi:10.1509/jmr.10.0256.

Marshall, J. (2000). Minor Change, Big Impact. Financial Executive, 16(6), 11.

Nathan, A.J. (2012). Wal-Mart in China. Foreign Affairs, 91(3), 190-191.

International expansion is one of the growth strategies that are embraced by companies in order to improve their bottom-line/profitability. In this paper, we present an elaborate international marketing strategy for ed Bull energy drink. The marketing plan begins with an introduction into the concept of international expansion and marketing and a brief overview of the company. A review of the main conclusions and recommendations is then presented. This is then followed by a discussion of internalization strategy. In this section, the context as well as context and reasons for the firm's internationalization initiation or expansion decision, as well as a discussion of the stage of internationalization at which your chosen firm finds itself. The next section is a discussion of the foreign market segmentation and targeting strategies. Under this section, we justify our choice of a market concentration or diversification strategy, incremental vs. simultaneous entry, the number of countries you…

References

Doodle, I. And Lowe, R., 2004. International Marketing Strategy: Analysis, Development and Implementation, ThomsonLearning, London.

EastBridge Import & Export Co., LTD, The Import Procedure of Food and Drink, Viewed 14 March 2012, http://www.eastbridgechina.com/En/Show.asp?id=33.

Encyclopedia of the Nations, China Country overview, Viewed 30 April 2012,  http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/China.html .

Euromonitor International, Red Bull plans Asian expansion, Viewed 14 March 2012, http://www.marketresearchworld.net/index.php?option=com_content&task=view&id=1232&Itemid=77

. Lack of tax incentives for infrastructure development including
broadband penetration. The key elements of the infrastructure
including electricity, telephone and internet service are at time
unpredictable in their performance. The biggest weakness of India
today is its infrastructure, and with only 30% of the workforce
relying on communications links to other nations, India will be forced
to spend greater and greater percentages of their GNP on making their
infrastructure world class.
. Growth of Instant Messaging and convergence applications may make e-
mail a secondary approach to communicating in India in the next ten
years. According to the (Internet in India Report, 2006) the
corresponding growth of the Instant Messaging and all other forms of
peer-to-peer communications from cellular and PDA devices is expected
to be dominated by the Chinese and Indian markets according to
(Tekelec, 2006) as well. The findings of Ovum Consulting are provided
in the white…

Works Cited

CIA FactBook (2007) - CIA FactBook page on India. Provides an overview of
the Indian economy and political structure. Accessed from the Internet on
July 27, 2007 from location:
https://www.cia.gov/cia/publications/factbook/print/in.html

Columbus, Louis (2005) - Selling Into India: Lessons Learned From Silvio
Napoli. CRM Buyer Magazine, April 22, 2005. Downloaded from the Internet

It is noteworthy that most recently the government started soliciting opinions from legal academies, interested groups and the general public when drafting a major piece of legislation, to achieve democratic lawmaking and advance further compliance with the law (Lo, V.I., 2007).

The most important economic event at this stage or in the years following the 1978 economic reform in China is undoubtedly its accession to WTO at the end of 2001. Following 15 years of numerous negotiations and adjustments of policies, China eventually entered the mainstream world economy and started enjoying the benefits and facing the challenges of WTO.

In response to WTO requirements, China underwent a "make-over" in many aspects. A brief summary of China's WTO promises is shown in Figure 9A. According to the WTO agreement, China is subject to reviews by the WTO in the 8 years following its accession. The most recent one was announced in…

References

Bailey, P., China in the Twentieth Century. 2nd ed. 2001: Wiley-Blackwell. 296.

Brainard, S. Lael, "An Empirical Assessment of the Proximity-Concentration Trade-off between Multinationals Sales and Trade," American Economic Review, Sep. 1997, pp. 520-544.

Chow, G.C., THE IMPACT OF JOINING WTO ON CHINA'S ECONOMIC, LEGAL AND POLICAL INSTITUTIONS, in International Conference on Greater China and the WTO. 2001:Hong Kong.

Clarke, D.C., Legislating for a Market Economy in China. The China Quarterly, 2007(191): p.567-585.

Country Evaluation

Pakistan is the South Asian country and was established in 1947. It shares border with India, Tajikistan, Afghanistan, Iran and China. It has a coastline spanning of 1,046 km with Arabian Sea. The country has highest peaks in the world that are K2 and Nanga Parbat of Karakorum and Pamir in the northern and western highlands of Pakistan. Islamabad, Lahore and Karachi provide the major by air gateways to Pakistan. India and Iran also provides the way to reach Pakistan by train.

There are several favorable characteristics that make Pakistan an ideal country for an international business. However, the country is facing imbalanced economic, societal and political conditions since independence due to which investors gets reluctant to invest in the country. This report reviews the favorable and unfavorable aspects of Pakistan for U.S. investors.

Investors need to consider various factors before making investment for an international business. First…

Bibliography

Dawn. (2012, May 27). Taxation and Foreign Investment. Retrieved July 23, 2012, from Dawn:  http://dawn.com/2012/05/27/taxation-and-foreign-investment/ 

Khan, A.H. (2012, January 31). Instability and Economy. Pakistan.

Mahmood, J. (2012, 07-16). Pakistani Stock Market, Rupee Exchange Rate Rise. Karachi, Pakistan.

Masood. (2010, June 3). Foreign Direct Investment in Pakistan. Pakistan.

isks of Trading and Investing:

Involving a Developing Country with a Developed Country's Business

Description of XYZ Corporation

It will be the assumption within this paper that the multinational corporation depicted resides within the United States, a developed country, while it is trying to generate business with Ecuador, a developing country. A multinational corporation is a corporation that operates by supervising or transports products or services to more than one country. XYZ Corporation is a competitive multinational corporation deeply interested in expanding its business to countries in which they have not already established business in. The company currently focuses on the manufacturing and the wholesale of products in the oil and petroleum industries. Most of XYZ Corporation's foreign entities are located in the Middle East. ecently, a member of the XYZ team has given vital information to corporate executives explaining that Ecuador has enormous oil and petroleum potential that could…

References

Carroll, A.B. (1991). The pyramid of corporate social responsibility: towards the moral management of organizational stakeholders-balancing economic, legal, and social responsibilities. Retrieved January 14, 2011 from  http://findarticles.com/p/articles/mi_m1038/is_n4_v34/ai_11000639/pg_2/ 

Ecuador.us. (2009, December 21). Ecuador economy, Ecuador exports, Ecuador business.

Retrieved January 15, 2010 from http://www.ecuador.us/business.htm

EconomyPoint.org. (2006). Rate of exchange regime. Retrieved January 13, 2011 from http://www.economypoint.org/r/rate-of-exchange-regime.html

Additionally, its taxation advatantages may erode due to pressure from EU and implicitly its wages will increase as taxes increase. Competition from emerging countries, namely Eastern Europe will become stronger as Ireland allings its strong points to EU standards. Moreover, the country's inflationary problem persistance may strengthen EU pressure on the authorities to reduce it through its fiscal policy.

eference List

BBC news channel. 2004. Ireland is Named 'Best Country', published on Nov 17, http://news.bbc.co.uk/1/hi/world/europe/4020523.stm.

Barry, F. And Bradley, J. 1997. FDI and Trade: The Irish Host-Country Experience. The Economic Journal, vol. 107(445): pp. 1798-1811, http://www.res.org.uk/

Berry, . 2001. U.S. Foreign Direct Investment in Ireland: Making the Most of Other's People Money. Perspectives on Business and Economics, vol. 19.

Cassidy, Mark, 2002. The Irish Economy: ecent Experience and Prospects. in: Aronson, ., Munley, V., Thornton, . (Eds.). The Irish Economy in Transition: Successes, Problems and Prospects. Elsevier Science, Amsterdam: pp.…

Reference List

BBC news channel. 2004. Ireland is Named 'Best Country', published on Nov 17,  http://news.bbc.co.uk/1/hi/world/europe/4020523.stm .

Barry, F. And Bradley, J. 1997. FDI and Trade: The Irish Host-Country Experience. The Economic Journal, vol. 107(445): pp. 1798-1811,  http://www.res.org.uk/ 

Berry, R. 2001. U.S. Foreign Direct Investment in Ireland: Making the Most of Other's People Money. Perspectives on Business and Economics, vol. 19.

Cassidy, Mark, 2002. The Irish Economy: Recent Experience and Prospects. in: Aronson, R., Munley, V., Thornton, R. (Eds.). The Irish Economy in Transition: Successes, Problems and Prospects. Elsevier Science, Amsterdam: pp. 5-30.

Business plan for a Multi-National Enterprise that conducts Foreign Direct Investment

Description of the MNE

Paradise Baby Food Company (PBFC) proposes to invest in a factory in India, one of the countries where Foreign Direct Investment (FDI) is growing at a momentous pace, and from there not only create its unique product but also have access to a growing market that is interested in western products. PBFC intends to develop a complete line of health food products for children, using minimal processing techniques. All products will contain wholesome ingredients such as herbs and naturally derived vitamins, minerals, and other supplements. They will be free of chemicals and additives. The herbs are more plentiful in, and cheaper to gain and process, from India. Other companies claim to sell healthy and nutritious baby food, but their herbs are either processed so finely that little remains, or they are imported from long distance…

References

GoingGlobal.com.

 http://www.going-global.com/articles/understanding_foreign_direct_investment.htm 

IBEF. Foreign Direct Investment (May, 2011)  http://www.ibef.org/india/economy/fdi.aspx  iloveindia.com

Merinews.com. Fast Food Industry in India on the Rise.

The localized supply chains are also critically important for better understanding how market requirements change over time in OP-based regions and nations of the world. The many steps required to create an effective supply chain in a given OP-based region differ drastically from creating one in a more affluent region of the world. The focus on speed and transactions and the ability to increase velocity is the priority in these markets. In OP-based nations the perspective shifts to understanding the dynamics of the market first, and then using these insights to create local competitive advantage. These lessons learned, specifically in the case of SAMiller and others lead to a more effective supply chain formation, management and optimization strategy over the long-term.

Conclusion

Creating and executing effective Corporate Social Responsibility (CSR) programs that serve as market frameworks, defining and executing more effective direct Foreign Direct Investment (FDI) strategies with host nations…

Bibliography

Chattopadhyay, Subho and a.K. Sarkar. 2011. "Market-Driven Innovation for Rural Penetration." IUP Journal of Business Strategy 8 (3): 42-52.

Gouillart, Emily. 2008. "An Interview with C.K. Prahalad." Journal of International Affairs 62 (1): 215-227.

Kennedy, Carol. 2004. "The Fortune at the Bottom of the Pyramid." Director, 36-36.

Prahalad, C.K. 2004. "Why Selling to the Poor Makes for Good Business." Fortune, Nov 15, 70-72.

But when the village is being rebuilt, consensus is not easy (Kurup)." This is a pointed criticism of using a U.S. model where the financial sector is doing well (the speculative economy) as opposed to the "real" economy on the street. Dr. Kurup feels that the infrastructural problems that have dogged India for years need to be solved as well so the recovery is even and across the board. He further remarked in the article that "You have to see the context. Just because we were not affected by the crisis, it does not imply we are safe. One has to look at what is the purpose behind the changes. There is a perception if you develop the bond market, infrastructure will develop. Infrastructure will not develop if the bond market alone is developed. In fact, no country in the world, except for partly the U.S., developed infrastructure through the…

Works Cited

Globalization in India." Economy Watch. Economy Watch.com, n.d. Web. 21 Nov 2010.

.

Comparison Studies." I Watch. Wake Up Call for India, 2010. Web. 22 Nov 2010.

Airbus is one of the leading producers of commercial and military aircraft in the world. The company has been successful because of the commitment it has to excellence and a global vision. The purpose of this discussion is to focus on the ways and which Airbus functions in various parts of the world given the differing cultures, political, economic and trade issues that differ from country to country. The research will also focus on the ways in which Airbus can deal more effectively with these issues as they arise.

Company information: summary, products, size, etc. Note: (no history)

Airbus is Headquartered in Toulouse, France. The company is owned by European Aeronautic Defense and Space Company (EADS). At the current time the company employs 52,500 people and has many fully owned subsidiaries throughout the world. These subsidiaries are located in the China, United States, Japan and in the Middle East. In…

Works cited

"A350 XWB Family." Retrieved from:  http://www.airbus.com/aircraftfamilies/passengeraircraft/a350xwbfamily/ 

"A330/A340 Family." Retrieved from:  http://www.airbus.com/aircraftfamilies/passengeraircraft/a340family/ 

"A320 Family." Retrieved from:  http://www.airbus.com/aircraftfamilies/passengeraircraft/a320family/ 

("A380 Family." Retrieved from:  http://www.airbus.com/aircraftfamilies/passengeraircraft/a380family/

An interesting trend has been registered in the service industry, especially in the field of tourism. One of the main engines of Spanish economy in the past, now tourism in this country faces fierce competition from Eastern Europe countries. The beautiful resorts in Palma del Majorca and Costa rava must compete with low cost sea side resort, which offer similar services at incredibly low prices. Another field which needs reforms and reformulation policy is the agricultural and fishery one, which accounts only 4.1% out of GDP, although the important political forces attached to this sensible sector.

In order to be able to face the challenges and the opportunities on the regional and global market, Spain needs reforms in most fields of activity. Unemployment level is one of the highest in EU 9.2% at the end of 2005, while the rate of inflation was around 3.4 per cent in 2005, which…

Bibliography

1) Carol Matlack and Joan Tarzian - 'Spain: Immigrants Welcome', Business Week, May 21, 2007

2) 'Plain sailing no longer', the Economist print edition, 3rd of March 2007.

3) 'Spanish property - the pain in Spain', 26th of April 2007.

4) Human Development Index report, for the year 2006

The differences in culture with the American culture will meant the American staff that may go to help open the branches in China will have to take quite some time to learn the culture and the ways of the people there.

The other difficulty will be the language barrier that may exists between the Americans and the Chinese. It may even call for a translator in the initial days as transactions between the American sales people and the Chinese customers, or interaction between the staff themselves may be a big challenge.

On the technical side, the Wal-Mart may have it hard when it comes to acquainting themselves with the market trends and the competition from the older players who are already in operation in China. It will take a lot of research work to be able to know the finer details of the market trends and the ways through which…

References

Abacus CPA, (2007). Register a company in Hong Kong / Hong Kong Company Formation.

Retrieved June 24, 2011 from  http://www.abacushkcpa.com/english/english_Company_Formation_Hong_Kong_Limited_Company_55.htm#55 

Center for Creative Leadership, (2009). Developing a Leadership Strategy: A Critical Ingredient

for Organizational Success. Retrieved June 24, 2011 from http://www.ccl.org/leadership/pdf/research/LeadershipStrategy.pdf

59-84). A lack of rule of law equates to lawlessness and high levels of violence and theft.

In aggregate the factors of investment, fertility, schooling, and socio-political openness to new venture create statistically significant differences in economic performance between the regions. What De Gregorio (et. al.) also found was Latin American nations are continually coming in and out of economic crises, which makes their banking system, money supply and balance-of-payments highly risky and difficult to invest in even when there is a growth opportunity. Latin America's greatest challenge will be in overcoming the tendency to continually cycle from one economic crisis to another.

eferences

De Gregorio (2004) - "Growth and Adjustment in East Asia and Latin America"

Econom'a Journal. Jose De Gregorio - Volume 5, Number 1, Fall 2004, pp. 69-134.

Brookings Institution Press. Accessed from the Internet on February 7, 2007 from location: http://muse.jhu.edu/journals/economia/toc/eco5.1.html

De Gregorio (1992). "Economic Growth…

References

De Gregorio (2004) - "Growth and Adjustment in East Asia and Latin America"

Econom'a Journal. Jose De Gregorio - Volume 5, Number 1, Fall 2004, pp. 69-134.

Brookings Institution Press. Accessed from the Internet on February 7, 2007 from location:  http://muse.jhu.edu/journals/economia/toc/eco5.1.html 

De Gregorio (1992). "Economic Growth in Latin America." De Gregorio, Jose Journal of Development Economics 39(1): 59-84.

Economists can demonstrate how, in the aggregate, consumers and industry benefit from free trade. In the process of creative destruction, however, some industries and workers are displaced by the changes wrought by free trade.

The measurement of benefit in the case of Volkswagen continues to reverberate today, after over 25 years. When VW entered the Chinese market, it did so over the objections of its local labour unions and politicians. Part of the objection came because the State of Lower Saxony controlled 20% of the shares, and the government was concerned about the loss of jobs in its domestic sector. The managers of VW saw it differently: by creating a successful and growing subsidiary in China, the reasoning went, the company could increase its generated cash and derive strategic benefits from finding a lower-cost supplier of parts.

There were, however, forces to overcome:

Unions threatened to strike in Germany unless…

Bibliography

Chase, S. (1947). A Generation of Industrial Peace: Thirty Years of Labor Relations at Standard Oil Company. New York: Standard Oil Company.

Chunli, L. a. (2003). The Chinese Automobile Industry and the Strategic Alliances of China, Japan, the U.S.'s Firms. Cambridge: MIT International Motor Vehicle Program.

Dubois, C.P.-D. (2007). Thrombin-initiated platelet activation in vivo is vWF independent during thrombus formation in a laser injury model. Journal of Clinical Investigation, 953-960.

Economist. (2007). 2008 World Almanac. London: Economist.

Business

How would you characterize the differences in corporate structuring and ownership rights for various countries around the world?

There are different ownership types. People can structure their businesses or organizations under one of several organizational structures. The types include: sole proprietorship; general partnership (composed of two or more persons who agree to contribute money, labor, and/or skill to a business and run it together); a limited liability company (LLC) (formed by one or more individuals or entities through a special written agreement that details the structure of the LLC); a Corporation; a limited partnership; and a limited liability partnership (LLP).

A limited partnership is composed of one or more general partners and one or more limited partners. The general partners manage the business and share in its profits and losses. The limited partners share in the profits of the business, but losses are limited to the extent of their…

Sources

CPA The Development of International Standards on Auditing  http://www.nysscpa.org/cpajournal/1999/1099/Features/F141099.htm 

Peter L. Rousseau and Richard Sylla (2003), Financial Systems, Economic

Growth, and Globalization

 http://www.nber.org/chapters/c9594.pdf

India is becoming a popular destination for foreign FDI as a result of that country's large and growing economy and economic reforms (Chakraborty & Nunnenkamp, 2006), meaning that capital inflows to India are not likely to meet with major challenges. The country can also be used as a springboard to the rest of Asia, with Indian production going to other Asian nations. Entering the market with a joint venture for both production and sales is important as well because it creates an operating hedge, thereby reducing the amount of foreign exchange risk faced by the company, important given that the rupee is not a hard currency and the derivatives markets for the rupee are relatively illiquid as a result.

Entering the U.S. market is the most straightforward. Hamilton is no more than 90 minutes from the border and the I-90. Shipping westward is also easy, due to the plant's proximity…

Works Cited:

Datamonitor. (2010). Consumer electronics -- North America (NAFTA) industry guide 2010. Datamonitor Retrieved May 9, 2011 from  http://www.datamonitor.com/store/Product/consumer_electronics_north_america_nafta_industry_guide_2010?productid=9C7B124D-02FA-4122-95D0-6C9107383852 

Harper, D. (2011). How companies use derivatives to hedge risk. Investopedia. Retrieved May 9, 2011 from  http://www.investopedia.com /articles/stocks/04/122204.asp

Johnson, J. & Tellis, G. (2008). Drivers of success for market entry into China and India. Journal of Marketing. Vol. 72 (3) 1-13.

Johnson, K. (2011). Canadian dollar surges as CPI sharply exceeds expectations. Wall Street Journal. Retrieved May 9, 2011 from  http://online.wsj.com/article/BT-CO-20110419-713715.html

In spite of the progress undergone by poor countries, things are still critical in these areas and it is impossible for one to even compare the situation there with the one in developed countries. The advancements experienced by developing territories are impressive, but put side by side with those in the west they are quickly made mediocre. hereas individuals in developed countries can rapidly adapt new technologies in their everyday lives, those in poor countries are less likely to do so, since "many developing countries lack the technical skills necessary to master new, or even older, technologies" (Picture This).

Globalization practically means that most countries turn from their old systems to a more general one, which is capitalist-based. Even though for some globalization is a new topic, it actually goes back to the expansionist era, when people were determined to interact with new cultures and to increase their sphere of…

Works cited:

1. Masood, Ahmed. "The Next Frontier." Retrieved August 05, 2010, from the International Monetary Fund Web site:  http://www.imf.org/external/pubs/ft/fandd/2008/09/ahmed.htm 

2. "Picture This." Retrieved August 05, 2010, from the International Monetary Fund Web site:  http://www.imf.org/external/pubs/ft/fandd/2008/06/picture.htm 

3. "World-System Theory." Retrieved August 05, 2010, from the Globalization Web site:  http://www.sociology.emory.edu/globalization/theories01.html

Consequently, his observations concerning the business climate in Saudi Arabia with respect to the significance of religion in the Kingdom can be considered authentic. According to Indris, with respect to the perception of performance and contractual obligations among Saudis, "It should be noted that the issue is not with the belief itself but rather with people's misguided interpretations of the belief and Islam teachings. While Islam teaches that ultimate control is in the hands of God, it also teaches that people should exert their utmost efforts to better their lives" (p. 38). These issues have special salience for foreign direct investors who may experience disputes based on such misinterpretations that cannot be predicted but must be expected. In this regard, Idris concludes that, "Misguided interpretations have a strong impact on the business environment and the commitment to setting and meeting goals and targets in the kingdom. Accountability in running businesses…

References

Aleisa, Eisa A. & Dibooglu, S. Sources of Real Exchange Rate Movements in Saudi Arabia.

26 Journal of Economics and Finance 1, 101-103 (2007).

Applications & Procedures, Kingdom of Saudi Arabia: Ministry of Commerce and Industry,

[online] available:  http://mci.gov.sa/english/moci.aspx?PageObjectId=814  (2011).

FDI in India

India is ipe for the Picking

India ranks second only to China in its attractiveness as a target for foreign direct investment. Of particular interest are the retail and technology sectors, as well as construction and manufacturing sectors. India is an up and coming market with potential for companies that want to expand into this lucrative land of opportunities. This research examines the opportunities exist in India as well as the climate that makes it a favorable location. It also addresses the obstacles to its continued expansion.

Although India has many opportunities, it has several problems with its policies that make create a certain risk, particularly in the area of taxes and other policies. India is in a state of flux and it is experiencing growing pains. As a result the Indian government keeps changing policies as far as taxing issues are concerned. This decreases confidence due…

References

Ahmed, R. (2011). Is FDI the Magic Wand for Indian Retail? India Real Time. 22 September

2011. Retrieved from  http://blogs.wsj.com/indiarealtime/2011/09/22/is-fdi-the-magic-wand-for-indian-retail/ 

Babu, S. & Prabnesh, K. (2008). Causal relationships between Foreign Institutional Investments

and stock returns in India. International Journal of Trade and Global Markets. 1 (3): 259-265

The last century has seen an increase in the level of international purchases which has been supported by the developments in transportation and technology. Goods can move faster than before with developments in logistics. The negotiation and forming contracts for purchase with companies and communicate with potential suppliers in distant countries is also easier than in the past with the internet and tools such as video conferencing and emails. This facilitates the use of international suppliers. However, other firms may choose local suppliers believing strategy will best suit their needs. Local suppliers may be able to provide where there is an increase in the transparency of the supply chain, less exposure to risks such as interruption and exchange rate risks and proximity may allow closer collaborative relationships to develop. Both procurement strategies are viable, to assess the advantages associated with each approach the procurement from international and local suppliers can…

REFERENCES

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