...A Case Study of a Currency Crisis: The Russian Default of 1998 Abbigail J. Chiodo and Michael T. Owyang currency crisis can be defined as a speculative attack on a country’s currency that can result in a forced devaluation and possible debt default. One example of a currency crisis occurred in Russia in 1998 and led to the devaluation of the ruble and the default on public and private debt.1 Currency crises such as Russia’s are often thought to emerge from a variety of economic conditions, such as large deficits and low foreign reserves. They sometimes appear to be triggered by similar crises nearby, although the spillover from these contagious crises does not infect all neighboring economies—only those vulnerable to a crisis themselves. In this paper, we examine the conditions under which an economy can become vulnerable to a currency crisis. We review three models of currency crises, paying particular attention to the events leading up to a speculative attack, including expectations of possible fiscal and monetary responses to impending crises. Specifically, we discuss the symptoms exhibited by Russia prior to the devaluation of the ruble. In addition, we review the measures that were undertaken to avoid the crisis and explain why those steps may have, in fact, hastened the devaluation. The following section reviews the three generations of currency crisis models and summarizes the conditions under which a country becomes vulnerable to speculative attack. The third section...
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...012-IBE-CaseStudies.docx Academic Year 2011-2012 International Business Environment Jean-Guillaume DITTER, PhD Groupe ESC Dijon Bourgogne – Burgundy School of Business SUPPORT DOCUMENT I - CASE STUDIES The texts making-up this document review and emphasize significant issues covered during the sessions. The questions asked at the beginning of each set of texts are meant to help students identify the issues that they should pay attention to. Students will work in teams on one single case study (see class outline for number of students per team). Each team will produce a presentation slideshow of its case study (7-10 slides per presentation, depending on the size of the case). Slideshows will be presented orally during sessions, according to the class outline (1520mn per presentation). Each team member will actively participate in his/her team presentation. Page 1 of 35 012-IBE-CaseStudies.docx CONTENTS Case Study 1. Text 1. Text 2. Text 3. Case Study 2. Text 4. Case Study 3. Text 5. Text 6. Text 7. Case Study 4. Text 8. Text 9. Text 10. Text 11. Text 12. Text 13. Case Study 5. Text 14. Text 15. Text 16. Text 17. Text 18. Text 19. Case Study 6. Text 20. Text 21. Case Study 7. Text 22. Text 23. Text 24. Text 25. Chinese Mercantilism .................................................................................................... 3 Chinese New Year ............................................................................................................
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...not only because it represented a technological thumb in the eye to the traditional music industry, but also because the band allowed listeners to pay whatever they wished for it. Some 60% of those who seized the opportunity paid nothing at all, but the band seemed pleased with the result; one estimate had it earning nearly $3m from the experiment. One group outside the music industry taking an interest was a trio of professors then at the Rady School of Management at the University of California, San Diego: Ayelet Gneezy, Uri Gneezy and Leif Nelson (who is now at the Haas School of Business at the University of California, Berkeley). Inspired, they designed a series of experiments to gauge whether pay-what-you-want pricing would work for other businesses. Their most recent experiment, co-authored with Amber Brown of Disney Research and published in Science, also stirred in a new element: would it make any difference if firms donated some of the pay-what-you-want fee to charity? The authors set up their pricing experiment at the exit of a roller-coaster ride at a large amusement park. Riders were offered a photograph of themselves, snapped mid-coast. The usual price was $12.95, but on one day riders were told they could pay what they wished, including taking the photo for free. A second group was charged the full price but told that half the money would go to a well-regarded health charity. Yet a third group...
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...OLIN CENTER FOR LAW, ECONOMICS, AND BUSINESS THE INSTITUTIONS OF CORPORATE GOVERNANCE Mark J. Roe Discussion Paper No. 488 08/2004 Harvard Law School Cambridge, MA 02138 This paper can be downloaded without charge from: The Harvard John M. Olin Discussion Paper Series: http://www.law.harvard.edu/programs/olin_center/ The Social Science Research Network Electronic Paper Collection: http://papers.ssrn.com/abstract_id=###### This paper is also a discussion paper of the John M. Olin Center's Program on Corporate Governance JEL K4, H73, G34, G28 The Institutions of Corporate Governance Mark J. Roe* Abstract In this review piece, I outline the institutions of corporate governance decisionmaking in the large public firm in the wealthy West. By corporate governance, I mean the relationships at the top of the firm—the board of directors, the senior managers, and the stockholders. By institutions I mean those repeated mechanisms...
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...dependent on him. He is not an interruption in our work. He is the purpose of it. He is not an outsider in our business. He is part of it. We are not doing him a favor by serving him. He is doing us a favor by giving us an opportunity to do so. CUSTOMER PSYCHOLOGY……HOW IMPORTANT FOR A MARKETER TO STUDY????? Companies use marketing to promote and sell their products or services, and consumer behavior is how consumers act and respond in the retail environment. In order for a company to create a strong marketing campaign, it is important to understand how and to what the consumer will respond. This relationship between marketing and consumer behavior involves studies, focus groups, psychological analyses and other methods of studying the market for a particular product or service. Understanding consumer behavior is critical for marketing any product or service successfully. When a company can understand why people buy what they buy and the reasons behind their decisions as consumers, the company can create a marketing campaign that specifically addresses those elements of the purchasing decision. Not all products appeal to all people; the key for...
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...Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union Transition The First Ten Years Analysis and Lessons for Eastern Europe and the Former Soviet Union THE WORLD BANK Washington, D.C. © 2002 The International Bank for Reconstruction and Development/The World Bank 1818 H Street, NW Washington, DC 20433 All rights reserved. 1 2 3 4 5 05 04 03 02 The findings, interpretations, and conclusions expressed here are those of the author(s) and do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank cannot guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply on the part of the World Bank any judgment of the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is copyrighted. No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or inclusion in any information storage and retrieval system, without the prior written permission of the World Bank. The World Bank encourages dissemination of its work and will normally grant permission promptly. For permission to photocopy or reprint, please send a request with complete information to the Copyright Clearance Center, Inc, 222 Rosewood...
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...PART ONE Introducing The Contemporary Business World In the Opening Cases in Chapters 1 to 5, you will read about five situations that may seem to have little in common at first glance: Canadian megaprojects that focus on the extraction of oil and nickel, the importance of productivity for our standard of living, the unethical behaviour of some business managers, entrepreneurs starting new businesses, and the exporting of Canadian goods and services to other countries. All of these situations, and many more that are described in this text, have a common thread—they all demonstrate the key elements of business as well as the excitement and complexity of business activity. Each case tells a part of the story of our contemporary business world. Part One, Introducing the Contemporary Business World, provides a general overview of business today, including its economic roots, the environment in which it operates, the importance of entrepreneurship, the various forms of ownership of business firms, the globalization of business, and the ethical problems and opportunities facing business firms. ■ We begin in Chapter 1, Understanding the Canadian Business System, by examining the role of business in the economy of Canada and other market economies. We also present a brief history of business in Canada. Then, in Chapter 2, Understanding the Environments of Business, we examine the external environments that influence business activity. These include the economic, technological...
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...“WHAT IS THE RELATIONSHIP BETWEEN DIVERSIFICATION AND PERFORMANCE, PARTICULARLY IN EMERGING ECONOMIES? WHAT ARE THE FACTORS WHICH ARE RELEVANT FOR SETTING THE CONTENTS OF THAT RELATIONSHIP?” By João de Almeida Frazão Caro de Sousa Master Thesis Submitted to ESADE Business School in fulfilment of the requirements for the Degree of Master of Science in International Management ESADE Business School May 2012 Master of Science in International Management – ESADE Business School i Master of Science in International Management – ESADE Business School Table of Contents Introduction ..................................................................................................................................... 1 Theoretical Background 1. Diversification ......................................................................................................................... 5 1.1 General Observations ........................................................................................................ 6 1.2 Different types of diversification strategies....................................................................... 7 1.3 The costs and benefits of diversification ........................................................................... 8 1.4 Diversification Trends ....................................................................................................... 9 A. The Lack of Significant Relationship ................................
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...12/18/13 12:07 PM Introduction The Lauder GLobaL business insiGhT reporT 2014 rebalancing the Global economy In this special report, students from the Joseph H. Lauder Institute of Management & International Studies examine current trends and recent developments shaping today’s global marketplace. The articles cover a wide variety of topics ranging from technology, innovation and brand building to infrastructure, entrepreneurship and social impact. A section on consumer markets looks at the popularity of e-cigarettes in France and elsewhere, efforts by Japanese firms to expand their businesses into Asia, new trends in French gastronomy, changes in Japan’s traditional food-consumption habits, and how a sector of the Chinese population is spreading, and spending, its newfound wealth. The report offers an analysis linking market-driven strategies with social impact in Peru and Colombia, as well as an article describing South Carolina’s embrace of innovative research. Other articles look at the Russian government’s attempt to reboot the city of Skolkovo as an innovation hub, the mixed success of innovation efforts in China, and the growing threat of cybercrime to businesses across the world. The challenges of infrastructure and planning are addressed in analyses of transportation in areas of Latin America, deficiencies in Brazil’s infrastructure, and real estate’s impact on Peru’s emerging middle class. Business and politics underpin a number of economic forces, as noted in...
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...Public Relations Cases This collection of contemporary international public relations case studies is an invaluable resource for teachers, researchers and students working in public relations, corporate communications and public affairs, as well as offering practitioners an indepth understanding of the effective use of public relations in a range of organizational contexts. Including cases from the UK, Norway, Sweden, Spain, South Africa, Canada and the USA, with a focus on such global corporations as Shell, BBC America, Worldcom, PriceWaterhouseCoopers and Marks & Spencer, it offers important insights into the development of public relations and communications strategies. These include: • • • • • • • • Corporate identity change and management Global reputation management Crisis management in the oil, shipping and tourism industries Developing strategic alliances between voluntary and private sector organizations Public relations support for international branding and market entry The importance of internal communications during international mergers The integration of public relations and marketing communications Business-to-business communication The cases examined in this book demonstrate the breadth of contemporary public relations practice and the increasing importance of the public relations function in both public and private sector organizations worldwide. Danny Moss is Co-Director of the Centre for Corporate and Public Affairs at the Manchester Metropolitan University...
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...Western and Central part of Europe. The Capital is Berlin that is also the largest city in the country. Other large cities in the country include Hamburg, Munich, Cologne and Frankfurt. Germany is part of the European Union, out of all the states that make up the European Union Germany is one of the most populous countries and has the largest economies. We chose to export peanut butter to Germany, because it is a rare item to find in the country. The German people are more familiar with a product called Nutella. Nutella is a creamy Chocolate hazelnut spread that is used on all food such as breads, fruits and more. Peanut Butter and Co offer a variety of product but one similar product to Nutella is their “Dark Chocolate Dream” peanut butter. Peanut Butter & Co could have an advantage over Nutella because recently the price of Nutella rose due to a shortage of hazelnuts. The Dark Chocolate Dream as well as the other peanut products they contains no cholesterol, no trans fats, no hydrogenated oils, and no high-fructose corn syrup. It is also gluten-free, certified vegan, and certified kosher. Since the Germans are all about eating healthy with no artificial additives this product will be a perfect fit in the country. The United States has to follow regulations and directives form the FDA. Germany also has to follow strict protocols in order to receive products from outside countries, called the European Union. As a member of the European Union (EU) they must follows all EU directives...
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... UNIT NUMBER: 12 INTERNATIONAL DIMENSIONS OF: COSTA COFFEE COFFEE AROMA * Acknowledgement | 3 | * Summary | 4 | * 12.1- Investigation of two businesses with international and European presence * Name of the organisation * Operating Profit * Main Activities * Legal Format * Type of Business * Target Market * Industry * Business Sector * Product Range * Aims and Objectives * Type of Competition * Similarities and Differences Between the Businesses * Why businesses become international * How businesses meet their aims and objectives by being international | 5 | * 12.2- Research and Analysis of the Factors for Business having an International presence * Strategic Objectives * Theory of Comparative Advantage * Impact on host country when business is setting up and trading * Incentives by host country to business * Impact of business activities on competitors, customers, suppliers and business itself * Effectiveness of international business | 26 | * 12.3- Explore the dynamics of international organizations on one chosen business in a globally competitive environment * How EU and WTO affect the international business * Benefits of membership * Limitations of membership | 30 | * 12.4- Examine and evaluate the growth and influence of multi-national operations * Why business have become international * Impacts on developed and developing countries * How wealth of...
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...Ch. 14. An overview of Corporate Finance. 14.1 Cash for investments is generated mostly (USA: 80%) internally as depreciation and retained earnings. Still, companies have a gap between cash they need and cash they generate internally. This gap is financial deficit. So companies have to either sell new equity or borrow.This causes two different kinds of problems: 1) The plow back ratio? => Dividend policy 2) The proportions of debt and issue of equity? => Debt policy. • Net stock issue is negative = Company repurchases more stocks than issues them. Reasons for internally generated funds: a) avoid cost of issuing securities b) investors don’t get the message from lower future profits and higher risk. Recent years firms have issued more debt than equity. Still, there are many ways to calculate the Debt ratio of company: 1) Debt / total assets = ( Short + long term debt ) / Total assets, or 2) Proportion of debt in long term financing) = Long term liabilities Long term liabilities + stockholders’ equity The Debt Ratios has risen since 1950 because of the book value of the corporate assets falls as behind the actual value of those assets. This is caused the inflation. And the new tools for risk management have...
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...USA, March 2007. Chapter 4, “Organised Crime”, is the further elaboration of a chapter of the same title published in 2007 in the Oxford Handbook on the United Nations Statement of Length The dissertation does not exceed the word limit of 80,000 words Fieldwork Thailand (money laundering); Indonesia and Burma (deforestation); New York (US money supply); Washington DC and Fort Worth, Texas (Organised Crime linked to terrorist funding); Australia (Sydney, (APG) and Canberra (money laundering, South Pacific); and Rome, Italy (Chinese organised crime). Contact Frank.Madsen@cantab.net Abstract Through an analysis of the presence and nature of international monetary flows of non-declared origin and their relation to deviant knowledge, the thesis determines that both terrorism and organised crime are nurtured by a constant trickle from minor sources rather than by large financial transfers; and that anti-money laundering provisions are misapplied, taken too far, too expensive, and incapable of demonstrating their effectiveness. In lieu of more traditional policy recommendations, the thesis develops a complexity-theory based...
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...Study in Ethics Edited by Paul H. Dembinski Carole Lager Andrew Cornford and Jean-Michel Bonvin in association with the Observatoire de la Finance Selection, editorial matter and Chapters 1, 2 and 16 © Observatoire de la Finance Remaining chapters © contributors 2006 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorised act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents...
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