...Argentina is located in the southeastern part of South America. Its neighboring countries are Brazil, Paraguay, Chile and Uruguay. The size in square kilometers of Argentina is 2,736, 690.00. In 2012, the recorded population of people in Argentina was 41.3 million. Argentina is a federal presidential representative democratic Republic. The President of Argentina is the head of Government and Head of State. Legislative power is vested in the Argentine National Congress and the president. The Judiciary in Argentina is independent of the Legislature and the Executive. The country holds regular elections on n a multi-party system. The Head of Government and Chief of State in Argentina is President Cristina Fernández de Kirchner. The current political party in power in Argentina is the Justicialist Party. The Civil Law Legal System is the legal system of Argentina. The pillars of the legal system in Argentina are the Civil Code of Argentina and the constitution of Argentina. Traditionally, Argentina’s economy was based on agriculture but the service and industrial sectors have grown in recent years (Dicken & Oberg 110). In 2006, the GNI per capita was 201.6. Natural resources in Argentina include fertile plains of the pampas, zinc, lead, tin, iron ore, copper, manganese, uranium and petroleum. Argentina exports primarily raw materials and agricultural products to the European Union. The European Union exports machinery, chemicals, transport equipment and other manufactured goods...
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...practiced by Transnational Corporations in their business operations due to cost constrain (Ashley E, 2008). (Please refer to appendix 1.0 for more information on Transnational Corporations). Furthermore, the main factor that forces many companies to be more low cost oriented is due to the massive pressure of the current competitive market and also the destructive price wars causes by globalisation that has been circulating in the market ever since the pre-1900s era (Henry A, 2008). (Please refer to appendix 1.0(A) for more information on History Of Outsourcing). In addition to that, by cutting cost in any way can eventually effects the specific company`s position in the market and that is why many companies also tend to choose those low wage countries in Asia for the outsourcing of their non-core business activities (Ashley E, 2008). The non-core business activity that the companies usually seek for outsourcing will be ranging from packaging and distribution, assembly and many more. Thus, through the existence of outsourcing ultimately enabled companies to focus on the prospective directions of activity, utilise the available resources efficiently, development of core competencies and to gain competitive advantage as well (Lacity MC & Willcocks LP, 2001). In accordance with that, the first country that was widely noticed to be the main option for companies to seek for outsourcing is none other than China whereby those large companies like Transnational Corporations whose is...
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...characteristics of the Bretton Woods System. b) Explain why the Bretton Woods system collapsed 4. a) Explain the role of a reserve currency b) How does a country benefit from its currency being used as a reserve currency? 5. a) Discuss the advantages and disadvantages of a fixed exchange rate system b) Discuss the advantages and disadvantages of a floating exchange rate system 6. a) Discuss the advantages and disadvantages of the Euro for members of the European Monetary Union. 7. Explain the major factors responsible for the frequent occurrence of financial crises in recent years. 8. a) How are the economies of India and China different? b) Why did economic reform lead to large declines in GDP in Russia but not in China? 9. What challenges to the World economy do India and China pose? 10. What are the characteristics of East Asian institutional environments that contributed to rapid economic growth? 11. Discuss the major factors responsible for instability in international oil prices 12. a) Explain the major reasons for the existence of transnational corporations b) Explain how host countries have attempted to limit the alleged harmful effects and increase the beneficial effects of transnational...
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...Foreign direct investment (FDI) is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds. Broadly, foreign direct investment includes "mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra company loans".[1] In a narrow sense, foreign direct investment refers just to building new facilities. The numerical FDI figures based on varied definitions are not easily comparable. FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of payments. FDI usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward and outward, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares.[3] FDI is one example ofinternational factor movements Importance and barriers to FDI[edit] The rapid growth of world population since 1950 has occurred mostly in developing countries[citation needed]. This growth has been matched by more rapid increases...
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...Implementing Transnational Strategy Name Course Instructor Date Introduction The global environment over the past decade has changed dramatically (Friedman, 2005), with increasing globalization ushering in an era of unprecedented competition, particularly for Western countries in light of the emerging Asian Giants. This has been further compounded by the 2008 financial crisis and the resulting economic crisis (Hill & Jones, 2010), which have led to diminished consumer spending and sluggish demand. These factors have forced most western companies explore new markets for their products, cut costs and source for cheap inputs for their value chains (Cheng, 2009). Companies competing on the international level face a lot of choices in terms of resource allocation, and balancing authority between head office and the business units. Many industries are now so competitive that firms must adopt a transnational strategy (Bartlett and Sumantra, 1991). This involves a simultaneous focus on Reducing costs, Transferring skills and Products, and Boosting Local responsiveness. Implementing such a strategy may not be easy. This essay will discuss how it is hard for a company to implement a transnational strategy to enter and compete in foreign market. Transnational Strategy: a tug of war In this competitive world, many industries are finding it hard to compete in a single market. This is due to increased competition from other established...
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...domestically in additional country markets, (4) gain access to resources and capabilities located outside a company's domestic market, and (5) spread business risk across a wider market base. WHY COMPETING ACROSS NATIONAL BORDERS MAKES STRATEGY MAKING MORE COMPLEX Companies electing to expand into international markets must consider five factors when evaluating strategy options: (1) cross-country variation in factors that affect industry competitiveness, (2) location-based drivers regarding where to conduct different value chain activities, (3) varying political and economic risks, (4) potential shifts in exchange rates, and (5) differences in cultural, demographic, and market conditions. Reason for locating value chain activities for competitive advantages is lower wage rates, higher worker productivity, lower energy costs, fewer environmental regulations, lower tax rates, lower inflation rates, proximity to suppliers and technologically related industries, proximity to customers, lower distribution cost and available or unique natural resources. The impact of government policies and economic conditions in host countries has positive impact which is tax incentives, low tax rates, low-cost loans, site location and development and worker training while the negative impact is environmental regulations, subsidies and loans to domestic competitors,...
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...Discuss the political and economic effects of different types on transnational organizations. SAN3508 Aravinth Raj Palpandian 1 Introduction This essay has the topic of how political and economic factors of different types affect a transnational organization. It is a theory and concept based essay using frameworks from the course literature. The main body of our essay will contain answers to below queries: What is globalization and how it gave rise to Global firms (stimuli). How Economic factor leads to certain advantages and attributes of Global firms / Transnational Corporations / Multi National Enterprises. How does country related political factors affect these firms and their policies. Then, we conclude our essay based on the finer details derived from our extensive discussion. Concepts and examples that are used to answer our queries in main body fall under the following topics: Globalization and global firms. Stimuli for becoming transnational: which in short is to prove that market-economy driven industries eventual step for growth is to go global. Economic Attributes and Advantages. Political factor and Conclusion. Globalization and Global Firms According to Hall (2011), a change has been occurring steadily over a span of last three decades where we have been moving away from a world in which national economies were a singularity and remained largely self-contained due to varying differences between them. We are working towards a...
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...Sul and he appeared likely to rescind all the agreements made by the previous government with Dell. He considered all the agreements to be overly generous incentives offered to transnational corporations by the previous government. This was a setback for Dell Computer Corporation and Keith Maxwell had to decide amongst the three options. The second option available to Dell Computer Corporation is to move its plant to another state in Brazil. After numerous discussions on site selection Rio Grande do Sul, had been selected as site for plant location. Determined to win high technology investment in the state Antonio Britto of Partido do Movimento Democratico Brasileiro offered best investment alternatives to Dell. But appointment of Olivio Dutra as new governor of Rio Grande do Sul foiled all the plans.Olivio Dutra was against governments granting of incentives to foreign transnational corporations. This is one of his objections against Antonio Britto’s government in his campaign for the post of governor. So the first thing he was supposed to do when he became the governor of Rio Grande do Sul was to rescind all benefits given to transnational corporations. The states available where Dell Computer Corporation could shift base were São Paulo, Rio de Janeiro, Minas Gerais etc.If Dell Computer Corporation shifted base it will do something which Ford had done in...
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...These actions include sales, production, IT, accounting etc. These activities are divided into support and primary activities. Primary Activities – Design, creation and delivery of the product. They are: 1. R&D 2. Production 3. Marketing 4. Sales Support Activities – Inputs that allow the primary activities to occur 1. Information Systems 2. Logistics 3. Human Resources Global Expansion Practices 1. Expand the market for your domestic products by selling internationally (Export) • Requires a company to tap into their core competencies 2. Move production to the most efficient countries to realize location economies • Some countries have a comparative advantage of production • Transportation costs and trade barriers must not be an issue • Location Economies is the value created by finding the most competitive place to produce product, therefore adding value i. Competitive can mean cheapest or best • Creates a global value web as opposed to a value chain 3. Serve expanded markets from a single location, while recovering experience effects • Experience curve: Systematic reductions in production costs that occur over the life of a product i. A products production costs decline each time the cumulative output doubles • Learning Effects – Costs savings through learning by doing • Economies of Scale – Reduce...
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...Fostering CSR in Primary Education: The Synergeia Experience Summary of Important Facts Synergeia is a nonprofit organization that envisions to improve the quality of primary education in the Philippines. It started 2001, when it was initially backed by Ford Foundation which was headquartered in the United States. It expanded to over 200 towns by partnering with international and local donors, local governments, non-government organizations (NGOs), parents and teachers. The 2004-2005 National Achievement Test (NAT) showed that 74 percent or around 1.1 million students lacked mastery of the English language. 25 countries were ranked in 2003, and the Philippines stood almost at the bottom. That is quite bothering since we are known to use English as our second language. Our Asian neighbors namely Singapore, Hong Kong, Japan and Chinese Taipei are in the Top 4, even outperforming the United States, Australia and Canada. It is believed that the weak foundation of the students in the primary school was the main reason for this underperformance. It is also believed that the teaching skills of the teachers have to be improved in order to reverse the decline in competitiveness of the country’s primary education. Another vital reason is the lack of government support. The country’s annual budget for education has continued to decline. While the country is doing this, other nations have continued to increase their allocation for education but as much as 10 times. This perhaps is a...
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...STUDENT´S FIRST NAME AND SURNAME: Ilzat Mamut STUDENT´S ID NUMBER: 20141736 MIDTERM DATE: 05.04.2016 INSTRUCTIONS: Sergey Sayapin ▪ The midterm assignment consists of a case study with six open-ended questions. ▪ The maximum score for each open-ended question is 5 (five) points. ▪ The maximum score for this midterm assignment is 30 (thirty) points. ▪ Your answers to open-ended questions must be limited to 1 (one) typewritten page each. ▪ The deadline for submitting this midterm assignment (by e-mail: s.sayapin@kimep.kz) is Tuesday, 5 April 2016. Good luck! ( Case study: Wellsidia was admitted to the United Nations on 2 March 2016, and is now considering applying for membership in the World Trade Organisation (WTO). It has established diplomatic relations, inter alia, with the Republic of Kazakhstan. Meanwhile, Zedia is unhappy about seemingly progressive developments in Wellsidia, and wishes to place Wellsidia under its control. In particular, Zedia repeatedly alleges in various international fora that Wellsidia is oppressing ethnic Zedians, inter alia, as far as their freedom of conscience, housing and labour rights are concerned. Several cases of Zedians having been fired from work and expelled from their houses have been reported, and a Zedian temple was attacked by unknown people in late February 2016. Wellsidia consistently responds that ethnic Zedians resident in its territory are now nationals of Wellsidia, and the State...
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...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...
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...Semester Project: What does it mean to be an Operations Manager in The International Environment Fedorenko Danil 21.02.2013 Introduction Many of the techniques used in Operations Management are essential for the international business consultant. These tools allow consultants to advise companies on selecting the best locations for their facilities, determining the most efficient balance of employees to comprise their global workforce, customizing products to satisfy specific local needs, maximizing the efficiency of the global supply chain, and determining the necessary capacity of local operations. In order to use these tools in a multinational context the operations manager must have a solid grasp on global issues. He or she must be familiar with the firm's overall international strategy and the reasoning that went into developing it. He or she must be must familiar with the critical success factors involved in selecting site locations, the process by which an international corporate strategy is formed, and the changes in the organization that will need to take place in order to implement it. Without a grasp of these concepts the operations manager will not be able to use the tools of operations management to help his or her firm establish a presence in new markets. How OM Techniques can help International Consultants to become better Managers The operations aspect of international consulting should start with a SWOT analysis, an examination of Strengths, Weaknesses...
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...global economy is known as gross world economy * The Great depression in the 1930’s and the world wars are examples of international influences on economies in the twentieth century. This also caused trade barriers to arise * The major indicators of integration between economies include: * International trade in goods and services * International trade flows * International investment flows and transnational corporations * Technology, transport and communication * The movement of workers between countries Globalisation * Barriers have been put up to try and protect businesses * Benefits to removing barriers * Barriers have been removed but there are still some barriers that exist * Some say the EU is closing off itself to other countries * Benefits to globalisation: * Trading – we might not have products that are only overseas * Cheaper labour is overseas * Investment overseas and investment into Australia * Financial flows of banks * Technology * Businesses can become more productive * Disadvantages: * Other economies failure affects us. External shocks * Local businesses suffer as overseas businesses can be cheaper * Loss of cultural identity * China has been driving our economy for many years due to their demand for metals and minerals for their manufacturing sector Positives |...
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...Elena Rodriguez Global Trade Debate Global Trade Debate Why do people love chocolate so much? Is it the smell, the taste, the texture or something more? Do people know what it is the truth hidden in the chocolate business? Do they know that the main ingredient it is child slavery? Thankfully, I can said that I don’t like chocolate, so I don’t feel guilty for consume it. However, should I feel comfortable? Or should I think about what I am consuming that its production leads into harm our people, our animals and our planet? After I watched the “Global Trade Video”, I started to think deeper about the damage that consumerism is doing to innocent people. Based upon this DVD, I tend to see it from a Marxist perspective because it talks about how the rich people are getting richer at expense of poor people that are getting poorer, “the class struggle”. Personally y agree with the Video, and my position is against globalization, but I can’t be 100% in opposition because there are some points that make it positive; for this reason, I will explain what are the pros and the cons of globalization from my opinion. One positive side of globalization is that it promotes global economic growth, creates jobs, makes companies more competitive and lowers prices for the consumer; thus, countries can balance their inflation. Also, there is a worldwide market for the consumers that can access to products from different countries without live their houses. In addition, with the advance...
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