...INTRODUCTION 1.1 BACKGROUND OF THE STUDY Foreign direct investment refers to an investment made by an entity or a company based in a country, into another entity or company that is based in different country. FDI is an investment made to acquire a lasting management interest (normally 10 percent of voting stock) in a business enterprise operating in a country other than that of the investor defined according to residency World Bank (1996). The importance of FDI to developing countries cannot be over stated, it acts as a complement to their locally assembled savings it is accompanied with managerial skills and technology which are key in the development of any economy. A number of studies inspired by Chenery and Syrquin (1975), Ranis (1976),...
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...I. What is Foreign direct investment Foreign direct investment as known as FDI is an investment made by a corporation or individual from other country, the foreign investor will have ownership or controlling interest in the business. “Foreign direct investment” (FDI) takes place when a corporation in one country establishes a business operation in another country” (Moran, 2012) II. Why choose this study? Since 1978 Chinese government has announced new policy of reform and opening Chinese economic, Chinese government has offered lots of new policy to attract foreign investors, different provinces have different policy but attract more foreign direct investment is a basic state policy. The government has adopted a series of policy measures...
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...market economy and a loss of direct foreign investment in countries where participation in corruption is how business is done. Politicians and government officials worldwide receive bribes valued between $20 billion and $40 billion annually. Companies that participate in bribing can face reputational damage and loss of investors. According to the World Bank, 0.5% of GDP is lost due to corruption each year. Corruption makes the poor poorer. In terms of social impact, corruption causes the rich to become richer and the poor to become poorer as a general trend. This causes an increase in social divisions and conflict between the socioeconomic groups. Corruption also causes division among various ethnic groups as people become bitter, suspicious, jealous and distrusting. 2. Is the “optimal” amount of bribery payments for a country equal to zero? Yes, the optimal amount of bribery payments for a country is equal to zero. Since bribery and corruption have long term negative impacts, and optimal means the most favorable, it is the most favorable option for a country to have zero bribery payments. By having zero bribery payments, a country will in theory not be subject to any of the negative impacts of bribery. 3. Should the board of directors be actively involved in policing foreign corrupt practices or is this a management issue? It is also the responsibility of the board of directors to be involved in policing foreign corrupt practices. If a company expects...
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...Lastly, recruitment of foreign workers could possibly be the easiest way to help overcome the shortage of local labor at construction sites . It is well understood that the major cause of manpower shortage is the employers’ reluctance to pay higher wages to the locals, which would consequently increase their expenditure (Abdul Rahim Abdul Hamid, Bachan Singh, Aminah Md Yusof & Nur Ahikin M. Abdullah, 2011) . For this particular reason, the number of local workers keeps lessening each year, resulting in a massive employment of foreign workers instead. The former Minister of Human Resources, Datuk Seri Dr Fong Chan Onn stated that despite Malaysia currently having about 1.8 million foreign workers, there are still hundreds of applications submitted every month by local companies to the Home Affairs Ministry, requesting to hire more foreign workers (Bernama, 2006) . The statement evidently proves that the demand for foreign construction workers is tremendously high, due to the shortage of local workers. Another cause of labor shortage is local preferences. The locals refuse to work at construction sites generally because they prefer easier jobs. This is especially true when they have higher education levels, which enable them to demand for jobs that have good image...
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...9/22/2011 MACC 424: WSJ Diary Project China Studies Foreign IPOs 09/21/2011 I. Summary China’s government is considering new regulations to govern a corporate structure, the so called VIE which is known as variable interest entity, that has enabled a wave of Chinese firms to list overseas by circumventing rules against foreign investment in sectors such as the Internet. Under this special structure, Chinese legal entities hold the sensitive permits and licenses required to do business in China while the offshore holding companies in which foreigners buy shares contract with those onshore entities, which are often controlled by the holding companies’ top executives, to get revenue from fees and royalties. Since the China’s domestic exchanges are dominated by state firms thus any move to clamp down on future use of the VIE structure could leave privately owned companies in many industries with limited options for going public especially the Internet industries. It turns out that Chinese officials is decided to set up extensive controls on the Internet, after social-networking sites and other web-based tools are common and essential in people’s normal life II. My Reaction As we all know, most Internet companies in China take VIE structure to make themselves successfully listed overseas, such as Sina, Baidu, Tencent and Alibaba. If VIE structure is illegal, it is devastating to the all the partners or any stakeholders in these overseas listing companies, as...
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...Foreign Literature An increasing number of consumers have voiced their concerns for environmental deterioration. The environment is not what it used to be a hundred years ago. Because of careless activities by humans, the environment has been constantly and continuously corrupted. Specific causes for concern about the environment degradation due to varied technological and production processes, pollution of air and water, and endangerment and extinction of species critical to human sustenance and aesthetics, population explosion, resource depletion, over harvesting of natural resources and the general degradation of social environment due to impairments of the physical environment (, 1992; , 1992). Consumers have had enough of these wrongful practices and hence, consumers are now actively seeking environmental performance in the products and services that communicate environment tal responsibility and stewardship ( 1999). In major international markets, consumers are demanding that firms produce increasingly higher quality products and services that are consistent with societal and environmental values if they wish to remain competitive in global markets ( 2000). Hence, consumers have become more discriminating...for green products and services (, 2001). A study shows that 66% of respondents have switched product brands in an effort to obtain more environmentally sound products (, 1995). The general public is concerned about the environment and that...
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...Walmart’s Foreign Expansion Walmart store Inc, is the largest retail company in the United States, has built its success on a strategy of everyday low prices and highly efficient operations, logistics, and information system that keep inventory to a minimum and ensure against both overstocking and understocking. Walmart began its international expansion in the early 1990s to grow their company’s commission. They first teamed in a joint venture with Cifra, Mexico’s largest retailer, to open a series of supercenters that sell both groceries and general merchandise in Mexico. Although they faced some challenges, such as understanding their culture and buying preferences, they quickly managed to change their marketing and merchandising strategies to meet the local conditions. As they built up their distribution systems in Mexico, the Mexicans started to change their shopping habits, and now Walmart is Mexico’s largest retailer and Mexico is considered to be the company’s most successful foreign venture. Walmart continued its international expansion by establishing operations in Europe and South Korea, however the company had less success. Consumers in Europe and South Korea, seemed to have a preference for higher-quality merchandise and were not as attracted to Walmart discount strategy as consumers were in United States and Mexico. Regardless of how, Walmart had greater success in China where they have learned to adapt the Chinese culture and changed their merchandise and operations...
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...Wal-Mart’s Foreign Expansion 1. Do you think Wal-Mart could translate its merchandising strategy wholesale to another country and succeed? If not, why not? Wal-Mart cannot translate its merchandising strategy wholesale to just any country. It has to be willing to adapt its strategy to the local culture and the local buying patterns, etc. For example, where Wal-Mart was successful (China and Mexico), it adapted to meet the needs of the local shopper. In Mexico, Wal-Mart hired local managers to help it find ways to adapt to the local culture and to better meet the needs of local shoppers, it provided smaller stores that people could walk that were stocked with more fresh produce. In China, Wal-Mart redesigned meat packaging and offered live fish that the buyer could net and take home for dinner that day. This practice made Wal-Mart more appealing to the Chinese shopper because they prefer fresh meat and fish. In the countries in which Wal-Mart failed (Germany and South Korea), it failed to adjust its discount strategy that had previously worked but did not appeal to the local shoppers. The shoppers in Germany and South Korea preferred to shop at rival stores that stocked higher quality merchandise. Potentially Wal-Mart might have succeeded in these countries had it been willing to stock some higher quality merchandise; however, this would be counter to the strategy that has proved to be so successful for the company otherwise. 2. Why do you think Wal-Mart was successful...
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...Case Study: Wal-Mart's Foreign Expansion Brief Summary of the Case: The case explores the expansion of the world’s largest retailer, Wal-Mart, internationally. Wal-Mart began its international expansion in the early 1990s in an effort to continue its growth. The company began with a joint venture in Mexio. Initially, the company tried to implement strategies similar to those that had proved so successful in the United States, however Wal-Mart quickly realized that to succeed, it would have to adapt to local demands. The company hired local managers who understood the Mexican culture and buying preferences, and changed its strategies accordingly. Wal-Mart continued its international expansion by establishing operations in Europe and South Korea, but in these markets, the company had less success. Not only did Wal-Mart compete head-to-head with established retailers, but its product offerings did not match the needs of consumers. Wal-Mart has had much greater success in China where it has found some similarities between the shopping habits of the Chinese and Americans. 1. Do you think Wal-Mart could translate its merchandising strategy wholesale to another country and succeed? If not, why not? No, I don’t think Wal-Mart could translate its merchandising strategy wholesale to another country and succeed because their merchandising strategy is based on the methods and culture of retailing of the United States. Also, as we learned in the text many countries and have different...
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...“A Study of International Marketing Application in Foreign Trade in India” Authors: Nader Angoutin Research Scholar in Commerce, University of Kerala, Trivandrum. Email:Nader_Angoutin@yahoo.com Abstract This paper analyses the Study of International Marketing Application in Foreign Trade in India. The study argues the international marketing as simple extension of exporting, whereby the marketing miss is simply adapted in some way to take into account differences in consumers and segment. International marketing research really plays an important role in the marketing research. The study will help in understanding the application of international marketing and knowing the socio economic, foreign trade and financial economic effects. This will fill a critical gap as not much information is available in the context of International Marketing Application in Foreign Trade in India. Keywords: International Marketing- Foreign Trade INTRODUCTION: International marketing is simply the application of marketing principles to more than one country. However, there is a crossover between what is commonly expressed as international marketing and global marketing, or across national borderlines. The intersection is the result of the process of internationalization. Many American and European authors see international marketing as simple extension of exporting, whereby the marketing miss is simply adapted in some way to take into account differences in consumers...
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...Wal-Mart’s Foreign Expansion Abstract Wal-Mart is the world’s largest retailer because it learned to successfully translate its merchandising strategy into foreign countries. Initially they tried the same techniques that worked in the U.S. They quickly learned that in order to be successful, they’d have to change their strategy to support the local market. Although some may not agree with their method of entering into joint ventures with local competitors and then taking over their companies, they must agree it was a successful strategy that made Wal-Mart the power house company it is today. Their strategy allowed them to learn the culture while establishing a bond with the community. They gained full access to the competitors’ way of doing business along with their resources. Wal-Mart’s Foreign Expansion How did Wal-Mart become the largest retailer in the world? It started out on a small scale level in Rogers, Arkansas. Sam Walton put his mind and his savvy business practices to work on a vision that most of us never even dream of. Even after his death, Wal-Mart’s financial status continues to climb higher every day. Due to its rapid expansion in the U.S, it quickly ran out of room to grow. The U.S. has 260 million shoppers, but expanding globally allowed Wal-Mart to reach 6 billion shoppers (Kavilanz, 2007). It did not take a rocket scientist to realize it was time to develop a plan to expand globally. The issue was could they translate their merchandising strategy wholesale...
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...“Benefits of the Inclusion of Foreign Languages to the Curriculum among G8 – G9 student in LSU-IS S.Y. 2012-2013” Laiza May G. Ocul 10 – Br. Lucian Athanasius CHAPTER 1 I. INTRODUCTION Language has a great impact to the society. We are living in a world filled with different cultures behaviors, nationalities and languages. Because of these differences, the ideas of learning and using a universal language have been able to unite our diverse population (Goshgarian, 1992). We will be able to communicate to people around the world by learning the language, despite the language barrier. Now what will happen if schools and universities will introduce a new language to the students? Last S.Y. 2011-2012, La Salle University – Integrated School added Mandarin classes as part of the academic curriculum. It was exciting, yet very challenging, for students who first encountered the language. For the next months, students grew interested in Mandarin. Students have learned the basics, studied the Chinese alphabet and learned how to write Chinese characters. Chinese songs and dances were also introduced. “No one is born with the capacity to speak a language; he grows up with it, he absorbs it, he practices it” (Irmscher,1972). It takes commitment and interest to learn a new language. The introduction of Mandarin allowed students to enhance and expand their vocabulary. The student body and the administration truly appreciated the new language. By this, we can express our ideas...
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... UNIVERSITY OF LANGUAGES AND INTERNATIONAL STUDIES THE FACULTY OF POST-GRADUATE STUDIES [pic] THESIS PROPOSAL AN INVESTIGATION ON THE COMMUNICATION STRATEGIES USED BY VIETNAMESE TOUR GUIDES TO OVERCOME LANGUAGE LIMITATIONS WHEN COMMUNICATING WITH FOREIGN TOURISTS (NGHIÊN CỨU VỀ CHIẾN LƯỢC GIAO TIẾP MÀ CÁC HƯỚNG DẪN VIÊN VIỆT NAM SỬ DỤNG ĐỂ KHẮC PHỤC NHỮNG HẠN CHẾ VỀ NGÔN NGỮ KHI GIAO TIẾP VỚI KHÁCH DU LỊCH NƯỚC NGOÀI) Supervisor : Prof. Nguyen Hoa Name : Hoang Thi Thanh Date of birth: 25/12/1989 Cohort : 22 (2013 – 2015) Class : D HANOI, 25/08/2014 TABLE OF CONTENTS |CONTENT |PAGE | |RATIONALE OF THE STUDY |1 | |OBJECTIVES OF THE STUDY |3 | |SIGNIFICANCE OF THE STUDY |4 | |SCOPE OF THE STUDY ...
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...he was good at quickly catching on to new things (Collins 1-2). As the world has become globalize, speaking other languages is one of the most important factors for success these days. Many parents encourage their children to learn foreign languages as soon as they can because they believe that people can learn languages faster and more effectively when they are young. According to statistics in Korea, Korean parents spend about 10 billion dollars a year on their children to learn English (Kim 1). Many children go to private English kindergartens and go to English-speaking countries to learn a foreign language effectively. However, in spite of parents’ consistent effort and support, some kids show side effects such as depression, abusiveness, and insomnia when parents have them learn a foreign language. Shin reported in MBC news of Korea about an eleven-year-old Korean boy. Since his parents had him go to an international school, he started showing all kinds of symptoms of a mental disorder. For instance, he refused to go to school, suffered from insomnia, easily got depressed, and did not want to talk to anyone (1-2). At this point, early foreign language learning needs to be defined for clear understanding. According to the study of Nam-hee Woo in the Ministry of Education in Korea, children who learn English as a second language learn well without negative side effects if they live in English speaking...
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...and do thing basically their culture. India is a multilingual society with more than twenty two official languages and nearly thousand dialects. One of the important contributions of British colonisation is the introduction of English as the major link of communication within the country. More than three hundred million people speak English which is the third widely spoken language in world after Chinese and Spanish. First and foremost, one of the most important reasons to learn a foreign language is the stimulation it offers one’s mind .Like Child grappling with the language for the first time, it makes curious at every turn and also sharpens you memory. In the era of globalisation mastering another language really gives you a competitive edge in every aspect .Knowledge of foreign language is important for those working in business, communication and nearly every other career track .Nevertheless, for the young generation in future it will be mandatory for the career enhancement. Recent study shows Chinese, Spanish, Japanese and German are going to be the dominant languages of 21st century. Chinese and Spanish are the first and the second most spoken language in the world. Interestingly, Spanish is the second language in America. It is spoken in Mexico, Nicaragua, Ecuador, and Guatemala among few and in South America except Brazil. It is a language rich in literature and culture. Eminent writers like Miguel Cervantes, Garcia Lorca, Gabriel Garcia Marquez, and Mario Vargas...
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