...THE MAN OF STEEL AND THE DRAGON: AUSTRALIA’S RELATIONSHIP WITH CHINA DURING THE HOWARD ERA PROPOSAL INTRODUCTION On consecutive days in October 2003, President George W Bush of the United States of America and President Hu Jintao of People’s Republic of China addressed joint sittings of both houses of the Australian Parliament. This historic occasion symbolises how Australia conducted its foreign relations with ‘East’ and ‘West’ during the Howard Era. The pragmatic decision to allow Hu Jintao to become the first non-American foreigner to address both houses demonstrates how Howard viewed Sino-Australian relations. It showed the world that it was possible to have warm relations with both the United States and China. By the end of the Howard Era in 2007, China had become Australia’s major trading partner. This was a far cry from 1996, when in the first months of the newly elected Howard Government a series of events caused severe tensions in Sino-Australian relations, as described below. This culminated in the Chinese response of banning visits to China by Australian ministers, a serious manoeuvre in the nuanced world of diplomacy. From these frosty beginnings, the relationship between the two nations strengthened considerably, for a variety of reasons, some of them outside Australia’s control. Paul Keating may have sown the seeds to Australia’s ‘pivot’ to Asia, but it was the Howard Government that undertook the most significant shift in orientation, cumulating in...
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...Uses of force as it relates to Foreign Policy decision-making describes a critical tool a president, diplomat, or military leader has at his or her disposal to persuade a country or person to align with certain policy goals or ideas. Each force can have either a positive or negative end result if not used and communicated properly. For example the appropriate use of force for a country seeking weapons on the grey market to supply radicalized militia groups will be different than the force used to deal with a nation infringing on another’s sovereignty. Sometimes the way a certain force is chosen and applied is based on how we may perceive that countries reaction to it. In some cases it is necessary for Force to be applied inclremently in order to avoid unwanted conflicts. Most nations’ states seek to resolve matters diplomatically before using the force of:”Aggression” or “Armed Power” in order to resolve matters at the lowest possible denominator. If this cannot be done then measures are taken in order to assess the risk of an unwanted outcome and use the best possible course of action one has at his or her disposal. Nations may also chose to use force in concert with each other in order to have a more effective impact. For years we have used the forces of Armed Power, with Economic and Diplomatic means to engage Iran and its allies. While this is adequate and necessary for Iran given the circumstances, we will not use this specific force to engage china freed trade agreements...
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...Foreign policy of india. When India became independent on August 15, 1947, Pandit Jawaharlal Nehru became her first Prime Minister. For long seventeen years (1947-1964), he remained in power and during this long period he was the central figure of India’s foreign policy making. It was Nehruji who framed and guided the Foreign Policy of India. To Pandit Nehru non-alignment was the corner stone of India’s foreign policy. He adopted this policy for various reasons, which may be divided into material and immaterial or spiritual reasons. The geographical and economic condition of India just after independence served as the material reasons for his favoring the policy of non-alignment. India’s next door neighbour on one side is People’s Republic of China and on the other is Pakistan, the arch enemy of India since her very emancipation from the British yoke. Nehru could easily realize that if India joins any of these two blocks, she would bring the rage of the other on her. It was indeed a crucial problem for the newly independent India and so he had chosen the path of non-alignment. Moreover, in order to guard her saturated post-independent economic condition India seriously needed the co-operation of both the big powers, U.S.A. and U.S.S.R. and their satellites the developed countries of Europe. Her entry into one bloc would not only make the members of the other bloc hostile to her interest but also might jeopardize her very independence. For this economic consideration India...
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...analytical tool, of a PEST analysis 5 3.1 Arguments for PEST analysis 5 3.2 Argument against PEST analysis: 6 3.3 Potential alternatives of PEST analysis 7 4 Prepare a business report based on your PEST analysis that this should explain the main findings of your PEST analysis 8 4.1 PEST analysis 8 4.1.1 Political 8 4.1.2 Economic environment: 9 4.1.3 Social environment; 10 4.1.4 Technological environment: 10 4.2 SWOT analysis: 11 5 Conclusion: 12 6 References 13 Introduction: Tuffstuff is a cement manufacturing company and now it wants to enter into African market. International market is more challenging because the foreign companies are not enough aware of the host country that may sometimes causes to failure in foreign market. The Tuffstuff’s proposed market Rwanda has more attractive for the investment. It is a growing economy country with great potential. In this report, a suitable organizational structure for the Tuffstuff in Rwanda will be discussed. To obtain its goals and objectives the functional structure is considered more suitable for the Tuffstuff company. In foreign market, there are several environmental factors that should need to analyze that would be done by the PEST analysis before entering into Rwanda’s market Blair and Hitchcock, 2011).. The PEST analysis will collect and determine the factors affecting in business environment. In this report, all elements of the PEST will describe. On the other hand, SWOT analysis will also explain. Organizational...
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... Topic: “Foreign Direct Investment and Country Risk: What kind of Interaction?” Supervisor: Professor D. Kyrkilis Stavroula Samara stav_samara@windowslive.com Foreign Direct Investment and Country Risk Table of Contents Abstract…………………………………………………………………………………………………………………….4 Introduction………………………………………………………………………………………………………………4 Foreign Direct Investment…………………………………………………………………………………………6 The Definition……………………………………………………………………………………………………………6 The Types………………………………………………………………………………………………………………….8 The Multinational Corporations………………………………………………………………………………..9 The Effects………………………………………………………………………………………………………………11 The Final Remarks…………………………………………………………………………………………………..13 Country Risk……………………………………………………………………………………………………………14 The Definition………………………………………………………………………………………………………….15 Various approaches of the literature on country risk (table)……………………………………17 The Historical Background………………………………………………………………………………………17 Country Risk Types and Measurements…………………………………………………………………..18 The Factors……………………………………………………………………………………………………………..22 Country Risk Assessment…………………………………………………………………………………………23 Risk Measures (table)………………………………………………………………………………………………25 The Methods…………………………………………………………………………………………………………..27 How does Country Risk matter for FDI?.......................................................................29 FDI and Country Risk: A Research……………………………………………………………………………33 The Data…………………………………………………………………………………………………………………33 2 Foreign Direct Investment...
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...PESTLE analysis PESTLE ANALYSIS Summary South Korea has been politically stable since becoming a democratic state. However, its relationship with North Korea continues to present a strong challenge. South Korea fell into a brief financial crisis in 1997 due to structural weakness in the banking sector, however strong economic and financial reforms quickly countered the downturn and put the country back on a growth path by the following year. With the opening up of markets after the financial crisis in 1997, the country became one of the largest technology markets in the world. As far as social issues are concerned, the country has low population growth and fertility rates, leading to an ageing population. Furthermore, the country has a highly qualified labor force, which makes it possible to both produce and commercialize advanced technologies. The country is also well equipped with extensive broadband network and telecommunication facilities. Legal procedures in the country are time consuming and complex, which makes it very difficult for foreign investors. The environmental scenario of the country is characterized by the breach of emission standards, which is reaching unreasonable limits in spite of its relatively small area and population in comparison to other countries. Republic of Korea: Country Analysis Report – In-depth PESTLE Insights © Datamonitor. This brief is a licensed product and is not to be photocopied Published 06/2008 Page 11 PESTLE...
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...PESTLE analysis PESTLE ANALYSIS Summary South Korea has been politically stable since becoming a democratic state. However, its relationship with North Korea continues to present a strong challenge. South Korea fell into a brief financial crisis in 1997 due to structural weakness in the banking sector, however strong economic and financial reforms quickly countered the downturn and put the country back on a growth path by the following year. With the opening up of markets after the financial crisis in 1997, the country became one of the largest technology markets in the world. As far as social issues are concerned, the country has low population growth and fertility rates, leading to an ageing population. Furthermore, the country has a highly qualified labor force, which makes it possible to both produce and commercialize advanced technologies. The country is also well equipped with extensive broadband network and telecommunication facilities. Legal procedures in the country are time consuming and complex, which makes it very difficult for foreign investors. The environmental scenario of the country is characterized by the breach of emission standards, which is reaching unreasonable limits in spite of its relatively small area and population in comparison to other countries. Republic of Korea: Country Analysis Report – In-depth PESTLE Insights © Datamonitor. This brief is a licensed product and is not to be photocopied Published 06/2008 Page 11 PESTLE analysis Political...
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...Running Head: MEMORANDUM Real Option Analysis Memorandum To: CEO From: ABC Date: June 5, 2010 Sub.: Real Option Analysis Introduction In the current competitive and dynamic business environment, it is necessary for an organization to consider all the aspects before making an investment decision in a venture. It is also essential for the management of an organization to perform the analysis of operational facilities and financial facilities in a country. It helps the management to make an effective decision in invest in a venture to expand its business operation. The analysis also helps to reduce some risk that may affect the business operation. Venture The management of the organization is seeking towards facilitating its business in a new uncharted territory. The new venture may be the expansion of current product line or a new product or service. The management of the company is seeking to adjust with the growing demand in Brazil by building a new Caterpillar factory in it. The company doesn’t have information about the operational, financial and capital position in Brazil that may cause an increase in the uncertainties for the business. The organization has a leading position that will be effective tom provide unique advantages to it that is not available for the rivals maintaining purely domestic operations. In the new venture, the management may shift its value chain activities across its operation networks to eliminate the impact of...
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...impossibility of a firm investing abroad. Even extending the Ricardian model by including capital among the factors of production, it has to be supposed that, from a purely economic and financial perspective, the choice between directly investing abroad and not doing so is totally indifferent. It is the existence of imperfections in the real and/or financial markets that give rise to the convenience for a firm to exploit its competitive advantages through foreign direct investment (FDI). In a broad sense, a multinational enterprise (MNE) can be intended as a company that holds controlled firms, producing branches, divisions, establishments, subsidiaries, etc., in a foreign country. The reasons that can persuade a firm to become multinational are manifold. First of all, it can be the sole action in order to conduct a specific business. Think about the activity of the extraction of raw materials: it cannot be conducted anywhere other than the mine’s location. Many firms are seeking greater production efficiency, and are thus investing in countries where one or more of the factors of production, capital included, are undervalued given their productivity. Others achieve significant economies of scale, scope or integration through expansion abroad that would not have been exploited otherwise. Considering the Japanese automobile industry expansion in the U.S., FDI can also be a...
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...International business, cultural analyses Cultural analysis, Porter Porter, Risk analyses Risk analysis, CSA / FSA analysis CSA / FSA analysis Overflow 2 3 4 5 6 7 DO NOT FORGET Rugman H1, H2 H3, H5, H6 H5, H13, DO NOT FORGET LAS: International Business period 1 overview 2 THEORIES ON INTERNATIONAL TRADE • Absolute and competitive advantage • Heckscher and olin’s theorem • The leontief-paradox • The flying geese model LAS: International Business period 1 overview 3 THEORY OF ABSOLUTE ADVANTAGE (Adam Smith) Each nation should specialize in producing goods it has a natural or aquired advantage in and therefore can produce more efficiently LAS: International Business period 1 overview 4 THEORY OF COMPETITIVE ADVANTAGE (David Ricardo) It is advantageous for two countries to trade if the cost ratio between the two countries differ (If producing x, expressed in y, is cheaper in country 1 than in country 2, while producing y in country 2 is cheaper than in country 1 , country 1 exports x and country 2 exports y) LAS: International Business period 1 overview 5 HECKSCHER – OHLIN • Two production factors : Labor and Capital • Availability of C and L in countries differ • The ratio C : L differs between countries • If a country has an abundance of (say) Labor labor intensive production will be cheap (relative) and vice versa. • International trade will develop between countries of which one is labor intensive and the other...
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...Globalization and location choice: an analysis of US multinational firms in 1980 and 2000 SOURCE: Journal of International Business Studies v38 no7 p1187-210 D 2007 COPYRIGHT: The magazine publisher is the copyright holder of this article and it is reproduced with permission. Further reproduction of this article in violation of the copyright is prohibited. To contact the publisher: http://www.jibs.net/ In this paper we examine foreign location choices of the top 100 US multinational corporations (MNCs) in 1980 and 2000. We first ask whether there has been a change in MNC foreign location choice in this two-decade period. Second, we explore the underlying reasons of location change by focusing on country-level factors, accounting for firm-, industry — and regional-level explanations. Our findings suggest, first, that the extent of MNCs’ activities around the globe is more extensive than assumed by regionalists’ arguments and well beyond Ohmae’s TRIAD, but still less widespread than claimed by the globalists — the two main traditions within the globalizationregionalization debate. Second, we uncover an interesting de-location pattern in this period. Third, we develop an integrative framework where both economic and institutional-cultural arguments are shown to influence MNCs’ foreign location choice in different ways. We conclude with a discussion of our findings, and provide suggestions for future research. Keywords: MNC foreign location choice; host country factors; global strategy; regional...
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...PESTEE Analysis Korea Political Analysis Political factors refer to political situation of the country and the extent to which it may affect and interfere with the project. Political system of South Korea has undergone a huge transformation to become a democratic country in 1987. South Korea became a stable democracy with strong political and economic support from the US The political landscape of the country include centralization of power which the implementation of economic reforms became faster and effective so that the country was fully focused on economic development and friendly to foreign investments, especially strengthening foreign relationships with emphasis on EU. According to economic forecast, South Korea is to become the seventh largest economy in the world within next ten years. Though the fact the relationship with North Korea remain tense and uneasy, the government aims to solve this situation in better way. Since crisis in 1997, the government opened the South Korean market to foreign investors by identifying Foreign direct investment (FDI) and abolished the harmful regulations on foreigner shareholdings in domestic companies. The taxation system and particularly corporate tax in South Korea was simplified encouraged foreign investments. |Current strengths: |Current challenge |Future prospects | |Centralized power of attorney |Military violence still...
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...and extension of credit. For example, Honda Motor Cycles in China, that company sells the cars to consumers comes with forward contract, it is included the price adjustment clauses. In order to reflect certain exchange rates changes it’s based on the adjusted price. The forward contract also brings more benefit to the consumers that helps them can get lower price. Furthermore, Honda Company has used policy such as purchasing foreign currency by using the currency swaps. This helps to fix the price of the car across currency contract in advance. In the foreign market from Japan’s Honda Co. the car is priced in Yen that means the company faces with foreign exchange risk. Thus, above solution is helpfully to protect subsidiary and reduce transaction exposure. Translation exposure Translation exposure can be established as type of foreign exchange risk that MNC have subsidiaries operated markets oversea (Wang, 2005), which country faced with translation exposure. This is affected on the translation of the liabilities and assets denominated in the foreign currency into the home currency of the parent company when...
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...undertake an investment in a particular foreign country may be the outcome of combination of strategic, behavioural and economic considerations, choice of a specific project within a particular product-market posture calls for evaluation of its economic feasibility. For this purpose, capital budgeting exercise has to be done. A firm should deploy funds in a project if the marginal revenue obtained there from exceeds the marginal cost. For an MNC, capital budgeting involves economic analysis of the firm's direct investment opportunities. Whatever be the motive for Direct Foreign Investment (DFI), an MNC's very survival and sustainable competitive position depends on its ability to identify and choose the most profitable investment opportunity. Capital budgeting technique provides the mechanism to identify opportunities and evaluate their economic viability. This is why MNCs evaluate international projects by using capital budgeting techniques. Proper use of capital budgeting techniques can help the firm in identifying the international projects worthy of implementation from those that are not. 13.2 FUNDAMENTALS OF EVALUATING FOREIGN PROJECTS Once a firm has compiled a list of prospective investments, it uses capital budgeting techniques to select from among them that combination of projects that maximizes the firm's value to shareholders. The theoretical framework involved in evaluation of domestic projects is the same as for foreign projects and various considerations influencing...
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...F-402 the report is on a “Analysis of Credit Risk Grading of Navana CNG Ltd.””, which is assigned to us by our honorable course instructor, Md. Sajib Hossain, Lecturer, Department of Finance, University of Dhaka. We were assigned by our honorable course instructor to collect data of our country’s foreign trade, export and import, top five imported goods, top five exported goods, top five import and export destination and trade of balance from the year 1990 to the year 2012, as per instruction we have collected the data from Bangladesh bank library. In this report we have included the yearly export and import which indicates the total amount of import and export of the country per year. And from those import and export payment receipts we have calculated the trade balance which is the result of the difference between the payment of import and export receipts. We have found out the major import and export goods to understand the foreign trade composition. Among them we have specifies the top five goods that are imported for the consumption and top five goods that are exported to other foreign nations to utilize the excess supply. We have also outlined the top five export destinations and top 5 import destinations to figure out the performance of foreign trade. From the analysis we have found out that our most preferred export countries are USA, Germany, UK, France and Japan. And preferred import countries are The report also comprises the Foreign Direct Investment inflow which...
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