...BRIC: Currency Depreciation in Russia and Brazil ◎D0131160 Irina Chen ◎D0131187 Gloria Chang ◎D0173297 Sunny Chiu ◎D0173270 Doris Chen ◎D0173670 Athena Du Contents Abstract ..................................................................................... 2 Brazil ......................................................................................... 3 Why Brazil become the BRIC ................................................... 3 What was behind Brazil’s Depreciation? ................................. 8 Russia ...................................................................................... 13 Why Russia become the BRIC?.............................................. 13 What was behind the Ruble depreciation? ........................... 19 Comparison and Similarities between Russia and Brazil ....... 24 In the Future ........................................................................... 25 The Future of Brazil ............................................................... 25 The future of Russia .............................................................. 25 Conclusion ............................................................................... 26 Contributor ............................................................................. 27 Reference ................................................................................ 27 1 Abstract The BRIC is the acronym of four nations, including Brazil, Russia, India and China. The conception of...
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...globalization pros and cons and the debate of these globalization pros and cons continue up until now. Here is a bit of a crash course of the pros and the cons of globalization. Pros of globalization are that more accessible market for anyone all over the world regardless of color, race, and social class. “Steady supply of cash to developing countries and even the well established ones. There is an increase in the production capabilities of companies and because of this they now have more freedom to customize their services and products fitted to the needs of the consumers. Political merging will be frequent and a more peaceful and orderly world order will be set”(Weidenbaum, 2005). Information and communication will be strengthened not just between two countries but also from all countries around the...
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...response to advertising message and brand associations. One example, impact on consumer choice, is related to the country of origin (COO) of the product. The effect of COO has been extensively explored in the literature. However, cultural frameworks like those of Hofstede (2001) have seldom been considered as a factor explaining the variability of consumers’ preference (or avoidance) for products originating in different countries. The objective of this research is to identify how cultural aspects affect product choice for foreign made branded products. A quantitative cross-cultural study was conducted to explore Hofstede’s cultural dimension of Power Distance. This study found that the replication of PDI measures within students samples from Brazil (UDESC) and from Canada (UoGuelph) do not replicate the...
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...Harmonization of the Auditor’s Report Jagdish S. Gangolly State University of New York at Albany Mohamed E. Hussein University of Connecticut Gim S. Seow University of Connecticut October 14, 1996 Revised, January 31, 1997 Revised, September 9, 1998 We acknowledge the use of foreign annual reports at Harvard University’s Baker Library, and the many hours that our research assistant K. Tam spent there. We would like to thank N. Barsky, M. Bongiovanni, T. Clausen, D. Dekadjevi, Y. Eisler, R. Fermin, F. Kapmeier, and H. Lee for their help with data collection, analyses, and translations into the English language. We are also grateful to the two anonymous referees and participants at the AAA/KPMG Peat Marwick International Accounting Research Conference and the accounting workshop at the University of Connecticut for their valuable comments and suggestions. Harmonization of the Auditor’s Report 1. Introduction The globalization of capital markets and the growth of international capital flows have heightened the significance of cross-national comprehension of corporate financial reports as well as the associated audit reports. The accounting literature is replete with assessments of the harmonization efforts and the international differences in the financial accounting area (Nair and Frank, 1981; Evans and Taylor, 1982; McKinnon and Janell, 1984; Doupnick and Taylor, 1985; Nobes, 1987; Archer, et. al., 1989; and Guenther and Hussein, 1995). However, there have been...
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...law countries, accounting rules tend to be legislated; common law countries tend to have a non-legislative organization that develops accounting standards. B. Taxation – financial statements serve as the basis for taxation in many countries. In those countries with a close linkage between accounting and taxation, accounting practice tends to be more conservative so as to reduce the amount of income subject to taxation. C. Providers of financing – in those countries in which family members, banks, and the government are the major providers of business finance, there tends to be less demand for public accountability and information disclosure. In countries where shareholders are a major provider of financing, the demand for information made available outside the company becomes greater. D. Inflation – countries with chronic high inflation adopt accounting principles in which traditional historical cost accounting is abandoned in favor of inflation adjusted figures. E. Political and economic ties – through previous colonization, a British style of accounting is used throughout most of the former British Empire. Ties between countries also help to explain similarities between the U.S. and Canada, and increasingly, the U.S. and Mexico. III. Differences in accounting across countries cause several problems. A. Consolidating foreign subsidiaries requires that the financial statements prepared in accordance with foreign accounting rules...
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...TURKU SCHOOL OF ECONOMICS 11 Comparison of internationalization process of Finnish firms Similarities and differences Submitted by: Sarada P Sahu Student Number - 601502 Table of Contents Introduction 3 Internationalization process of the Raisio group 3 Internationalization process for Jaakko Poyry Group 5 Internationalization process for Kone elevators 7 Comparison in the internationalization process of firms 8 Similarities 8 I. External environmental conditions: 8 II. Leadership and top management: 8 Differences 9 I. Strategy for Internationalization 9 II. Outlook of the company 11 III. Organizational and business structure: 12 Conclusion 13 Introduction The study of the Internationalization process for Finnish firms has been quite interesting in terms of the variety of the methods used by the companies to do so and in the nature of the learning that can be gained from the same. While studying about processes and the tactics being used by the companies’ one also has to pay importance to the external environment in terms of the economy, government and social and cultural factors that play a very important part in the decision making during the internationalization process. The major factors that have led to the internationalization process in Finnish firms can be classified into five major categories as mentioned. The first factor is the competence development in individuals and exploitation of the critical events that occur in the world...
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...Country classification Data sources, country classifications and aggregation methodology The statistical annex contains a set of data that the World Economic Situation and Prospects (WESP) employs to delineate trends in various dimensions of the world economy. Data sources The annex was prepared by the Development Policy and Analysis Division (DPAD) of the Department of Economic and Social Affairs of the United Nations Secretariat (UN/DESA). It is based on information obtained from the Statistics Division and the Population Division of UN/DESA, as well as from the five United Nations regional commissions, the United Nations Conference on Trade and Development (UNCTAD), the United Nations World Tourism Organization (UNWTO), the International Monetary Fund (IMF), the World Bank, the Organization for Economic Cooperation and Development (OECD), and national and private sources. Estimates for the most recent years were made by DPAD in consultation with the regional commissions, UNCTAD, UNWTO and participants in Project LINK, an international collaborative research group for econometric modelling coordinated jointly by DPAD and the University of Toronto. Forecasts for 2014 and 2015 are primarily based on the World Economic Forecasting Model of DPAD, with support from Project LINK. Data presented in WESP may differ from those published by other organizations for a series of reasons, including differences in timing, sample composition and aggregation methods. Historical data may differ...
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...Literature Review International Marketing is the performance of business activities designed to plan, price, promote, and direct the flow of the company’s goods and services to consumers or users in more than one nation for a profit. (Philip R. Cateora et al, 2008). International marketer’s task becomes more complicated that of the domestic marketer as it operates entirely in different business environments. A firm operating in a domestic market undoubtedly feels comfortable in adjusting the business decisions in line with the environmental changes at domestic level. However, the process in an international marketing effort often involves substantial doses of cultural, political and economic shock. To adjust and adapt a marketing program to international market, marketers should be able to interpret the effect and the influence of the uncontrollable environmental factors on their marketing plan for each and every foreign market in which they intend to do businesses. The uncontrollable factors/ elements constitute the culture and the task of cultural adjustment is the most challenging and vital one confronting international marketers. International marketers are responsible for adjusting their marketing efforts to cultures to which they are not attuned. In dealing with unknown markets, marketers must be aware of the framework they use in evaluating the potential of a market. In any system of different people, their political and economic structures, religions and other elements...
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...comprehension of the possible issues, opportunities and challenges that may occur upon entering the market. 3.3.1 The economic environment Since the 2008 global financial crisis, the South African economy has demonstrated uneven growth, with an average increase of above 2%. This is largely due to the effect of the global economy in addition to the country’s strong ties to advanced economies (Statistics South Africa n.a.). According to Schwab et al. (2013), South Africa was ranked as the 53rd most competitive country worldwide, overtaking Brazil to take second place among BRICS-countries. Regardless of some soft macro- economic indicators such as an extremely high unemployment rate (25.4%) and rising inflation (5.9%) (Trading Economics 2014), direct foreign investments (FDI) continue to flow into the county. As shown in Figure 1, South Africa is ranked as the 13thmost attractive FDI destination globally, coming ahead of Switzerland, Spain and Italy. This positive rating is a result of numerous successful large merger and acquisition (M&A) deals. Figure 1. FDI Confidence Index 2014. Ranking and Scores For instance, the British oil giant BP has announced its decision to invest $550 million in its refinery, terminal and service station retail network in South Africa. It is also partnering with Pick n Pay1 to open 120 'Pick n Pay Express' stores across the country (A.T. Kearney 2014). Furthermore, South...
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...Social and Ethical Values of Teamwork and Diversity: The Benefits of Diverse Teams Organizational development between diverse teams gives the MNC the opportunity to enter new markets and develop new products, in ways that they would not have been able to if they did not have a diverse, multicultural perspective. The benefits to individuals and society are profound. There are ethical implications for being a good corporate sponsor: by this I mean that there is a potential for a win-win situation that benefits both parties, when a substantial goal can be agreed upon and realized. Sometimes, entering a new market with team players from that region gives them a perspective that they would not considered. A good example of this is the GE ultrasonic ultrasonic imaging machine that has been developed for third world markets {particularly OBGY patients}. This particular product was given the green light after engineers from India were able to express their ideas. To begin with, the device was developed with simple, rugged, and cheap parts. This was done to keep costs down. It can function in a dirty, dusty, third world environment with little or no service. Second, the machine is lightweight, and easily transportable, so that a travelling physician could carry the device on a backpack, using public transportation. This was an important consideration in third world countries, because not all users of the device would be physicians, and more importantly, not all health...
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... This is called SOVEREGIN DEBT CRISIS. GREECE is currently facing this, it accumulated high levels of debt during the decade before the crisis, when capital markets were highly liquid. As the crisis has unfolded and there was liquidity crunch in world economy, Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be depicted from following charts : www.capitalvia.com 2 White Paper - Impact of Greece Crisis Global Research Limited How Country Debts And Budget Deficits Compare? Projected budget deficit for 2009 Budget deficit figs as % of GDP Debt as % of GDP UK 13% Greece 12.5% Spain 11.25% Ireland 54.3% 68.6% 112.6% 65.8% 10.75% 114.6% 5.3% Italy Germany 3.5% 74.3% Source: European Commission / Economic forecast autumn 2009 www.capitalvia.com 3 White Paper - Impact of Greece Crisis Global Research Limited Eurozone: Credit Spreads www.capitalvia.com 4 White Paper - Impact of Greece Crisis Global Research Limited Greece: Public Debt www.capitalvia.com 5 White Paper...
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...called SOVEREGIN DEBT CRISIS. GREECE is currently facing this, it accumulated high levels of debt during the decade before the crisis, when capital markets were highly liquid. As the crisis has unfolded and there was liquidity crunch in world economy, Greece may no longer be able to rol over its maturing debt obligations. Build – Up To The Current Crisis Between 2001-2008, Greece reported budget deficits averaged 5% per year, compared to Eurozone average of 2%. Also, its current account deficits averaged to 9% per year compared to Eurozone average of 1% Greece funded these twin deficits by borrowing in international capital markets, leaving it with chronically high external debt (115% of GDP in 2009) Some of the facts which can be depicted from following charts : www.capitalvia.com 2 White Paper - Impact of Greece Crisis G lobal Research Limited How Country Debts And Budget Deficits Compare? Projected budget deficit for 2009 Budget deficit figs as % of GDP Debt as % of GDP 68.6% UK 13% 112.6% Greece 12.5% 54.3% Spain 11.25% 65.8% Ireland 10.75% 114.6% Italy 5.3% 74.3% Germany 3.5% Source: European Commission / Economic forecast autumn 2009 www.capitalvia.com 3 White Paper - Impact of Greece Crisis Global Research Limited Eurozone: Credit Spreads www.capitalvia.com 4 White Paper - Impact of Greece Crisis Global Research Limited Greece: Public Debt www.capitalvia.com 5 ...
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...Journal of Cross-Cultural Psychology http://jcc.sagepub.com Value Hierarchies Across Cultures: Taking a Similarities Perspective Shalom H. Schwartz and Anat Bardi Journal of Cross-Cultural Psychology 2001; 32; 268 DOI: 10.1177/0022022101032003002 The online version of this article can be found at: http://jcc.sagepub.com/cgi/content/abstract/32/3/268 Published by: http://www.sagepublications.com On behalf of: International Association for Cross-Cultural Psychology Additional services and information for Journal of Cross-Cultural Psychology can be found at: Email Alerts: http://jcc.sagepub.com/cgi/alerts Subscriptions: http://jcc.sagepub.com/subscriptions Reprints: http://www.sagepub.com/journalsReprints.nav Permissions: http://www.sagepub.com/journalsPermissions.nav Citations (this article cites 23 articles hosted on the SAGE Journals Online and HighWire Press platforms): http://jcc.sagepub.com/cgi/content/refs/32/3/268 Downloaded from http://jcc.sagepub.com at KAIST GRADUATE SCHOOL OF MGMT on October 22, 2007 © 2001 SAGE Publications. All rights reserved. Not for commercial use or unauthorized distribution. JOURNAL OF CROSS-CULTURAL PSYCHOLOGY Schwartz, Bardi / CROSS-CULTURAL VALUE SIMILARITIES Beyond the striking differences in the value priorities of groups is a surprisingly widespread consensus regarding the hierarchical order of values. Average value hierarchies of representative and near representative samples from 13 nations exhibit...
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...ISCOR 300 Spring 2014 Tuesday 4:00-6:00pm Exam Study Guide IDs: You should be able to identify major terms, concepts, events, and people. A good ID response requires that you state who or what it is, AND its significance in the context of the course (how, why important? The so what question). Study suggestion: go through the readings and video, lecture, and discussion notes; make an extended list of potential candidates (20-25). Choose 10-15 to concentrate and focus on in relation to what a good ID should be. YOU WILL HAVE A LARGE NUMBER OF IDs TO CHOOSE FROM, 5 out of 10-12. Each ID will be worth 10 points, for a total of 50 points. FOR EXAMPLE, in a class dealing with international security, an ID for Aum Shinrikyo would be as follows: Aum Shinrikyo was an apocalyptic Japanese religious cult that released sarin nerve gas in the Tokyo subway in 1995, killing 12 and injuring over 5,000. The ultimate goal of the cult was to bring about chaos on an international scale culminating in a nuclear war, as a means of ushering in the apocalypse. The 1995 attack was an effort to test methods of dispersing chemical weapons, a step towards achieving that goal. Significance: Aum Shinrikyo was the first non-state actor to successfully carry out a large-scale chemical weapon attack against civilians. The cult illustrates a new face of terrorism, post-modern terrorism. Post-modern terrorism is defined as groups without specific political or sub-national...
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...Comparison Factbook France vs. Italy Wine Industry Group 16.4 Bram van Veen Caspar Leusink Muhammad Hafidz Randy Hardja Lecturer: Mr.Drs.HenkRitsema Contents Executive Summary 3 Introduction 4 Methods and Frameworks 5 Hofstede’s cultural dimensions 5 Porter’s diamond 7 Porter’s Five Forces Model of Competition 8 Introducing the Wine Industry 9 Overview of Wine Industry 9 French Wine Industry 10 Italian Wine Industry 11 Country comparison 12 Comparison of relevant macro-economic indicators 12 General economic indicators 12 Financial Health 13 Demographic Factors 13 Historical developments 14 Historical Background 14 Global Wine Industry Developments 15 Socio-cultural conditions 17 Cultural Diversity 17 Hofstede 18 Political and Governmental Systems 19 Legal Systems 21 Financial Systems 21 Labour Market 22 Industry Conditions 24 Supply Market Conditions 24 Demand market conditions 24 Threat of New Entrants and Substitute Products 25 Major players and level of competition 27 Level of Competition 28 Recommendations 28 Italy 29 France: 31 Recommendations: 33 References 34 Executive Summary The goal of this factbook is to provide potential investors with information on relevant dimensions regarding the wine industry in Italy and France. The factbook is comparing both of the countries using methodological framework and secondary data. The data we used are obtained through various sources. In the end, Italy is presented as most appealing...
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