...Name: Ron ID : 02912080 1. What are the advantages and disadvantages of international strategic alliances? How to select partners for cooperation? Definition A global strategic alliance in business is a business relationship between two or more businesses that enables each to achieve certain strategic objectives neither would be able to achieve on their own. The strategic partners maintain their status as independent and separate entities, share the benefits and control over the partnership, and continue to make contributions to the alliance until it is terminated. Strategic alliances are often formed in the global marketplace between businesses that are based in different regions of the world. Advantages of the Global Strategic Alliance Advantages Strategic alliances usually are only formed if they provide an advantage to all the parties in the alliance. These advantages can be broken down to four broad categories. Organizational advantages: You may wish to form a strategic alliance to learn necessary skills and obtain certain capabilities from your strategic partner. Strategic partners may also help you enhance your productive capacity, provide a distribution system, or extend your supply chain. Your strategic partner may provide a good or service that complements a good or service you provide, thereby creating a synergy. If you are relatively new or untried in a certain industry, having a strategic partner who is well-known and respected will help add legitimacy...
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...merchandise and services that satisfy specific needs of customers, and supplying them at prices that will yield profits. Competition in the today's business marketplace often demands that organizations merge with each other to remain competitive and increase revenue, profits and market share. Others may be looking to consolidate their operations to achieve economies of scale and standardization of processes. Mergers and acquisitions occur when a company buys, sells, or combines with another company within the same country or across borders (Luthans & Doh, 2009). Government regulation is constantly present in our lives. This paper is a continuation from assignment two and will look at how government regulations affect expansion and merger in the retail industry. “Mergers can be competitive strategies, or they can be attempts to create firms large enough to exercise market power” (Michaels, 2011). Successful mergers are a combination of four critical components: culture, business practices, technology, and time. Bringing these elements together requires careful planning and coordination. The longer it takes the more costly it will be, and the potential for failure will be greatly increased. Explain why government regulation is needed, citing the major reasons for government involvement in a market economy. Government regulation is needed in the retail industry to make sure that the public’s interests are...
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...‘The US government’s response to the global financial crisis was to prop up some of the key financial institutions stating that they were “too big to fail” because such failures would have extremely serious consequences for the economy and society at large. Research newspaper articles and present a summary of what measures the US government took to protect these financial institutions. Provide examples. Explain and critically analyse both the shareholder and stakeholder models of corporate social responsibility. Can the US government’s actions be justified from either (or both) of these models? Consider both short and long-term consequences of this government intervention. Conclude whether the action taken by the US government is best for society?’ The Global Financial Crisis of the last few years has caused widespread problems for the US government, who were forced to spend billions of (taxpayer) dollars bailing out many of the world’s largest top banks. While a controversial decision, the US government acted on the belief that these institutions were ‘too big to fail’ and their collapse would have far reaching consequences that could have lead to a much dire situation. Throughout this essay, the causes and effects that lead to the GFC and the need for a bank bailout, along with what exactly it entailed will be presented. Then, the US governments’ response in bailing out the banks will be analysed using both a Stakeholder and Shareholder model of Corporate Social...
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...In this essay, the political regimes of China and United States will be discussed. A political regime is an assembly of political structures that make up a government. This helps in regulating the management of the government and building of the society. The three ways how the government can choose to run the country are via, One-Party State, Liberal Democracy or Military Dictatorship. China and United States have the world’s biggest economies and effective militaries with their ruling influencing politics globally. Even with a huge trade agreement and countless diplomatic meetings, the both countries are unable to sustain a façade of a civil relationship. Though, there is pressure from leaders of United States, China is not discouraged but instead continues to grow its economy. (Super-power showdown - US vs. China, 2012) China follows a One-Party State political system. It is led by a highly controlling communist party. The Chinese Communist Party is fully committed in upholding endless domination in power and will not tolerate others who doubt its right to rule. Freedom of speech is strictly constrained. The Chinese Communist Party dictates both state and society in China. They have been ruling China for over six decades, ever since they gained power in 1949. There are no elections in China. All institutions, executive, judiciary and legislation are all communist as well. (Lawrence & Martin, 2012) Benefits of being a socialist include: equal distribution of...
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...In order to examine external factors that can affect Bombardier’s business operations, our group conducted a PEST analysis. The acronym PEST stands for the external political, economic, social, and technological factors that affect a company’s business activities. Moreover, the PEST framework is a business tool that helps a company improve its decision-making and timing. The political risk that Bombardier faces is due to foreign government regulations, relations between the Canadian federal government and foreign governments, and the amount of government intervention that occurs in foreign markets. Specifically, strict regulations that are imposed by a foreign government within a market that Bombardier operates in can pose a negative effect on the firm’s revenues, such as pricing restrictions or increased taxes. International relations between the Canadian federal government and foreign governments within the markets that Bombardier operates in can pose a threat to the firm’s revenues. For example, if relations between Canada and China turn sour, Chinese state-owned airlines may opt to purchase aircrafts and trains from a non-Canadian manufacturer, as a result. Government intervention could perhaps have either a positive or negative effect on Bombardier’s global operations. For example, if the Chinese government were to increase spending on domestic air travel, this would lead to a greater demand for aircraft, which could potentially lead an increase in sales for Bombardier...
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...giving suggestions for how to answer questions. Don’t try to pass them off as your own work. AS Micro Essays 1.Evaluate the case for and against governments intervening to try to stabilise the price of copper, for example, through setting up a buffer stock scheme. 2.Evaluate advantages and disadvantages of various methods of government intervention to correct market failure arising from aircraft emissions. 3. Discuss the likely effects on the retail market for coffee if there is a large increase in city centre rents. 4.In the UK, students face increasing tuition fees. Discuss the benefits and costs to society of abolishing all tuition fees. 5.Discuss three policies to reduce the level of cigarette smoking amongst under 21s. 6.Discuss the extent to which governments should subsidise companies who are developing cars which run on clean fuels such as hydrogen? 7.Discuss whether the government is mistaken to worry about monopoly power? 8.Discuss the advantages and disadvantages of the government intervening in agricultural markets? 9.Discuss the effects on UK business of a rise in fuel prices. 10. Discuss whether the government should end free health care for people and make them take out private health care insurance like in the US? 11. Discuss the role that pollution permits could play in reducing global warming 12. Discuss the case for implementing a congestion charge for driving into Birmingham city centre. 13. Discuss the micro...
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...merely confirms what Economists have known for some time, namely, that the interconnectedness of global economic activity renders macro-management by single governments redundant. Their function is now to regulate markets to ensure economically efficient solutions. Module Leader :Paul McKeown Student Name: Chen JiaHui Student number: G20555142 1.0 Introduction This report argues that the ongoing financial crisis merely confirms the global political consideration what economists have known for some time. Firstly, it briefly explains how the financial crisis spread around the world in such a short time by globalisation. This report points out that the global financial system is inherently flawed, showing how economies go from stability to instability. Subsequently, it focuses on the link between economic globalisation and macro-management by single government, considering whether Macro-management of a country’s economy is redundant, given the global interconnectedness economy’s activity and business. This report shows government policy has reduced the effectiveness of interconnected economies, such as fiscal policy and monetary policy. After that, it emphasizes that it is imperative for governments to regulate financial markets so as to ensure economically efficient solutions. Consequently, this report concludes that although macro-management by single government is less effective, it still has a role of preventing and managing future crises. 2.0 The financial...
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...Porter's Diamond of National Advantage (Part I) Classical theories of international trade propose that comparative advantage resides in the factor endowments that a country may be fortunate enough to inherit. Factor endowments include land, natural resources, labor, and the size of the local population. Michael E. Porter argued that a nation can create new advanced factor endowments such as skilled labor, a strong technology and knowledge base, government support, and culture. Porter used a diamond shaped diagram as the basis of a framework to illustrate the determinants of national advantage. This diamond represents the national playing field that countries establish for their industries. The complete Porter’s Diamond system (Porter, 1998, pg 127) The individual points on the diamond and the diamond as a whole affect four ingredients that lead to a national comparative advantage. These ingredients are: The availability of resources and skills, Information that firms use to decide which opportunities to pursue with those resources and skills, The goals of individuals in companies, The pressure on companies to innovate and invest. The points of the diamond are described as follows: I. Factor Conditions A country creates its own important factors such as skilled resources and technological base. The stock of factors at a given time is less important than the extent that they are upgraded and deployed. Local disadvantages in factors of production force...
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...aim of making profit or as a business start-up. This social system can be found worldwide it consists of 2 things. Wage labour (working class), Private Ownership (Capitalist Class). Capitalist Economy When individuals/organisation has ownership over production. The privacy of this economy means that it does not have any intrusion from government bodies. Profit Motive Making profit for a capitalist is one of the most important aspects of being a capitalist. This is because most capitalist will not wish to lose any initial investments. If the social economy has any demands that are not ethically correct capitalist must attend to their needs purely based on profit purpose. Profit = Survive for capitalist. The formula for Profit in business is Profit = Revenue – Cost. A lot of business profits in capitalism will be pumped back into the business in order to pay for the cost. Cost is everything in the input of the business this could mean machinery, rent, and equipment and most importantly in most businesses is the labour cost for the “Working class” as mentioned before. (FT.com, 2015) Government Government bodies may interfere with capitalist in two ways, through direct intervention and indirect intervention. Direct intervention can only intervene if the company is a GOC (Government Owned Company) or a SOE (State Owned Enterprise). This will allow them to Take back property or land or nationalise a private owned company. Indirect Intervention can be seen as the rules;...
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...Explain sovereign risk. Broadly defined, sovereign risk refers to the risk that a host government or sovereign power will default on its payment obligations. For example, a host government or sovereign power may unilaterally repudiate its foreign obligations or many prevent local firms from honouring their foreign obligations. Sovereign risk reflects potential adverse effects resulting from a country’s political conditions. In other words, sovereign risk reflects the possibility that political conditions could prevent the counterparty in a swap agreement from meeting its payment obligations. Various political conditions could prevent the counterparty from meeting its obligation in the swap agreement. For example, the local government might take over the counterparty and then decide not to meet its payment obligations. Alternatively, the government might impose foreign exchange controls that prohibit the counterparty from making its payments. Sovereign risk differs from credit risk because it is dependent on the financial status of the government rather than the counterparty itself. A counterparty could have very low credit risk but conceivably be perceived as having high sovereign risk because of its government. It does not have control over some restrictions that are imposed by its government. Comment on the most common indicator of sovereign risk with current examples. Spain's Government Bond Yield for 10 Year Notes rallied 58 basis points during the last 30 days which means...
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...The Affect of Human Trafficking on the Global Community Emma-introduce the issue of human trafficking as a vulnerable population that affects the global community. Paper will cover population description, social issues, and macro (world-wide) interventions. Population Description Human Trafficking is harboring people without their consent to say so. These people are threaten and taking against their will. Abduction is the main form of human trafficking because they seek out person who are vulnerable to society and does not have enough funds to make ends meet so they are taking advantage of by allowing those to abuse them by receiving payment for their freedom. Women are more vulnerable to trafficking because of the impoverished, uneducated ethnic minority, rural or refugee groups. Most women lack employment because of lack of education. Children are to most vulnerable to trafficking because of the physical, mentally and emotionally they has become by the country. Mothers sit at home wondering if they going to ever see their child again. Because society has made for them to allow their child ages 10-21 to traffic for means of food. “The U.S government estimates that there are approximately 800,000 individuals who are victims of human trafficking worldwide, the majority of whom are females under the age of 18”.(Martin, 2011). These female can be used for many thing, however the targets of large organizations that has business for human trafficking find that women can be sold...
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...Table of Contents Why were Keynesian ideas revolutionary? 2 How does Keynes theory work? 4 What economic conditions in your news article that require government intervention? Do you have faith that this intervention will be effective? 7 How have the economists’ views on Keynesian economics changed over time? 9 Is Keynesian economics dead today? 12 Works Cited 14 Appendix A 15 Why you should be wary of the Japanese “revival” 15 Why were Keynesian ideas revolutionary? Keynesian economics is a macroeconomic theory developed by John Maynard Keynes, who is a British economist. According to Keynesian theory, government intervention plays an important role in the economy, and focuses on short-term goals. It is used mostly in times of recession, inflation, unemployment to stabilize the business cycle, therefore active government policy is required and government spending is a good way to put money back into the GDP. (hupii.com) Keynes is famous for his simple explanation for the cause of the Great Depression during the 1930s. His idea was based on a circular flow of money, which states that when spending increases in an economy, earnings will also increase, and the outcome it will lead to even more spending and earnings (economic growth). His ideas had led to a revolution in economic thought. (martinfrost.ws) During the period of World War 2, United States president has spent enormously huge on defence which has that helped revive the U.S economy. Besides...
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...governance. These links are spurred by market liberalization and information, communication and transportation technologies. Globalization is the process of corporations moving their money, factories and products around the planet at ever more rapid rates of speed in search of cheaper labor and raw materials and governments willing to ignore or abandon consumer, labor and environmental protection laws. Technology is one of the strongest forces driving globalization. Cable television, satellites, fax machines, and the Internet have all contributed to networking a global society. Globalization brings positive and negative effects to the market. For positive effect, as an engine of commerce; one which brings an increased standard of living, literacy and health to Third World countries and further wealth to First World countries. As an engine of corporate imperialism, one which has no connection to local standards of human rights in developing societies. Negative effects include cultural assimilation via so-called cultural imperialism, the export of artificial wants, and the destruction or inhibition of what is currently determined to be the "authentic" local and global community, ecology and cultures. Terrorism has undergone globalization, with attacks in foreign countries that have no direct relation with the attackers' own country. Promotion of free trade can bring many merits to the market...
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...the Euro zone may be partly attributed to the recession of 2008. Because of these, many scholars, economic analysts, researchers and businessmen continue to endeavor up to now to discern what the real cause of the economic crisis was in the hopes that it will not happen again. Many people attribute the global economic meltdown to the collapse of the subprime sector in the United States. To put it simply, the mortgage sector was blamed for the crisis because of how many financial instruments were collateralized by mortgages of people who had bad credit histories. When too many of them failed to meet their obligations, it began a series of defaults that ultimately collapsed not only the mortgage industry but the financial industry as well. All those that have investments in both sectors, local and foreign entities, also became affected as they lost what they have invested. However, a crisis of such scale as that which took place in 2008 to 2009 could not be attributed to one cause alone. Instead, as this paper will show, the most recent global economic meltdown was due to several causes in different parts of the world. As the crisis was still engulfing different countries, governments, policymakers, banks and treasuries scrambled to seek the best...
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...Capitalism and Globalization 1. Although state-owned enterprises (SOEs) are diminishing, they still comprise one third of China’s and Russia’s Gross Domestic Product (Wooldridge, 2012). According to The Economist, China, alone, has 121 SOEs over which the government has direct control (2011). When bank loans are granted, the favored SOEs are the recipients and government controls the reins by retaining a controlling stake of shares. Likewise, SOEs are given preferential interest rates and allowed access to land at prices that are below market value (The Economist, 2011). Government intervention affects the prospects for economic and business development in a negative way by encouraging inefficiency and biased decision-making that may not be in the long-run interests of the company. In China, favoritism is rampantly on display and the government picks the winner and losers (The Economist, 2011). Furthermore, while many free trade economies – like the United States – often encourage foreign investment, China only appears to do so. SOEs are often given preferential treatment while foreign investors are subject to over-regulation (The Economist, 2011). 2. The globalization of markets and of production has lowered the barriers to business development. These barriers stood in economic, political, and social sectors of the world market. This rise in free trade and has led to an increase in the private sector, but this is miniscule compared to the control and power of State Owned Enterprises...
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