...Thomson, M. (2013). Trade partnership competition: TPP vs RCEP. The Strategist. http://www.aspistrategist.org.au/trade-partnership-competition-tpp-vs-rcep/ Yu, W. (2013). TPP Talks Show Promise for US Asia Strategy—With or Without China. The Diplomat. http://thediplomat.com/pacific-money/2013/08/02/ tpp-talks-show-promise-for-us-asia-strategy-with-or-without-china/ ANU, S. A. (2011). China’s participation in the Trans-Pacific Partnership . East Asia Forum. http://www.eastasiaforum.org/2011/12/11/china-participation-in-the-trans- pacific-partnership/ UI, B. P. (2012). Will RCEP compete with the TPP?. East Asia Forum. http://www.eastasiaforum.org/2012/11/28/will-rcep-compete-with-the-tpp/ Ponnudurai, P. (2013). China vs. US in Proxy Trade Battle. Radio Free Asia. http://www.rfa.org/english/commentaries/east-asia-beat/tpp-02052013221256.html U.S. is becoming the global leader and is now dominating TPP. Nowadays, U.S. wants to combine with countries that involved TPP to put pressure on other agreements or on the other countries that are not involved, both strategic dimension and economic dimension. In this paper, I will briefly discuss with TPP versus RCEP and TPP versus China. the tpp is foucs on the preferential trade agreement with few exemptions and extensive regulatory alignment, in the area such as labor law, environmental protection and intellectual property rights. RCEP stands for the Regional Comprehensive Economic Partnership. This is a newly proposed...
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...U.S Economy vs China The United States has had the world’s largest economy for about 140 years, and it roughly accounts for 22% of global GDP. However in recent times, China has overtaken the United States to become the world’s largest economy, according to figures from the international Monetary Fund. The simple logic is that as prices aren’t the same in each country, the IMF measures both GDP in market exchange terms, and in terms of purchasing power. In fact we already know that a typical person in china earns a lot less than the typical person in the US according to Business Insider. However, some analysts such as Bloomberg reports are quick to point out that according to the main benchmark, the US is still number one. China’s economy may now be the largest in the world but it is far from the richest. GDP per head is still less than a quarter of US levels according the Financial Times. According to the International Monetary Fund, China’s purchasing power GDP hit $17.6 trillion last year versus $17.4 trillion in the US. According to CEBR, China’s gross domestic product will grow to $33,513 billion in 2028, up from $8,939 billion in 2013. The simple logic is that prices aren't the same in each country: A shirt will cost you less in Shanghai than in San Francisco, so it's not entirely reasonable to compare countries without taking this into account. The Economist’s calculations assumed that China’s real GDP will grow at 7.75% a year with 4% inflation vs. 2.5% and 1% in...
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... The Rise of China (Geopolitical) · Economic growth enabled assertive, belligerent stance in APAC region · Impact on supranational organization – eg, UN security council, Diaoyu, East China Sea, Chinese presence in Africa, Caribbean islands · Chequebook diplomacy (http://www.ft.com/intl/cms/s/2/7f7b0d8e-5ea8-11e3-8621-00144feabdc0.html#axzz2sVcKseFs) · TPP vs. RCEP The Rise of China vs US http://www.eastasiaforum.org/2012/11/28/will-rcep-compete-with-the-tpp/ http://www.eastasiaforum.org/2014/01/19/averting-economic-cold-war/ http://www.foreignaffairs.com/articles/67479/charles-glaser/will-chinas-rise-lead-to-war http://www.foreignaffairs.com/articles/63042/g-john-ikenberry/the-rise-of-china-and-the-future-of-the-west http://www.ft.com/intl/cms/s/2/7f7b0d8e-5ea8-11e3-8621-00144feabdc0.html#axzz2sVbrGylD The U.S. wields a power of influence, persuasion, and leadership on the international stage that no other state comes close to. She sets international law, ignores international law, and is accountable to no one. China, while clearly jockeying for authority and power, does not yet have legitimacy. If China continues on this path of questionable governance and cavorting with questionable allies, no serious block of internationally influential states will support a Chinese hegemony over the current U.S. one. And so, China will remain a strong regional and international player, but one that plays second fiddle to the U.S. China has recently claimed...
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...FDI Vs. Portfolio investment Capital is a vital ingredient for economic growth, but since most nations cannot meet their total capital requirements from internal resources alone, they turn to foreign investors to supply capital. Foreign direct investment (FDI) and foreign portfolio investment (FPI) are two of the most common routes for overseas investors to invest in an economy. FDI implies investment by foreign investors directly in the productive assets of another nation. FPI means investing by investors in financial assets such as stocks and bonds of entities located in another country. FDI and FPI are similar in some respects but very different in others. As retail investors increasingly invest overseas, they should be clearly aware of the differences between FDI and FPI, since nations with a high level of FPI can encounter heightened market volatility and currency turmoil during times of uncertainty Examples of FDI and FPI Imagine that you are a multi-millionaire based in the U.S. and are looking for your next investment opportunity. You are trying to decide between (a) acquiring a company that makes industrial machinery, and (b) buying a large stake in a company or companies that makes such machinery. The former is an example of direct investment, while the latter is an example of portfolio investment. Now, if the machinery maker were located in a foreign jurisdiction, say Mexico, and if you did invest in it, your investment would be considered as FDI. As well, if the companies...
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...Running head: OUTSOURCING TO MEXICO OR CHINA Outsourcing to Mexico or China Kimberly Griswold Southern New Hampshire University Many companies decide to outsource to save on costs. China is one of the most popular countries to use for outsourcing. The outsourcing in China has helped China and the businesses. The lower cost of outsourcing to China has helped many companies obtain a competitive advantage. More companies are now looking to outsource in other countries. Another county that is getting a lot of attention is Mexico. There are advantages and disadvantages to both China and Mexico. There are many advantages to outsourcing in China. The first advantage is experience, China has been used my many companies for an extended amount of time so they already have standards in place. Another advantage is China has extreme inexpensive labor. The employees in China are also educated and learn fast and work very hard. “Through-put is clearly better in China than in Mexico. Attendance, punctuality, and productivity bonuses are not needed” (Amter, 2011). Many retailers are also now growing “less dependent on brand names in part because they, and their suppliers, demand and receive good value from Chinese suppliers” (Advantages of Outsourcing in China, n.d.). There are also disadvantages to outsourcing in China. China is a communist government and is very prone to piracy and counterfeiting. There...
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...| -344,863.2 | 2015 | 116,071.8 | 483,244.7 | -367,172.9 | | | | | | 5 Year Total - | -1641072.1 | Imports from China to the U.S. have outweighed the exports for a long time. The trade deficit continues to rise because the U.S. cannot compete with the low Chinese prices. With that being said, businesses are outsourcing a large number of jobs to China and India. The Chinese standard of living is lower and they make sure to keep their currency lower than the U.S. dollar and buys U.S. treasuries to support it (Amadeo, 2016). You would think that with the amount of exporting China does and being the world’s largest economy, that their economy would be better. Well if they did not have such a large population that would probably be the case, but with their population at nearly 1.4 billion residents the GDP per capita is around $ 14,300. Their leaders are trying to get their economy to grow faster (Amadeo, 2016). With the Chinese continually buying so many U.S Treasury notes it is the largest lender to the U.S. government. Also, with the buying of these Treasuries they have helped to keep the interest rates down. With the outsourcing of jobs to China and other lower wage countries our unemployment has of course increased and a lot of our manufacturing companies that could not lower their costs have gone out of business. China Economy Data | | | 2011 | 2012 | 2013 | 2014 | 2015 | Difference from 2011 to 2015 | Population (million) | 1,347 | 1,354 |...
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... July 20, 2013 The table below represent U.S. trade balance with China over years (2007-2011): Years: 2007 2008 2009 2010 2011 Export: 62,936,891,576 69,732,837,543 69,496,678,611 91,880,613,079 103,939,433,941 Years: 2007 2008 2009 2010 2011 Import: 321,442,866,934 337,772,627,823 296,373,883,488 364,943,854,151 399,361,922,088 Trade balance with China Years: 2007 2008 2009 2010 2011 (millions of dollars) -258,505,975,358 -268,039,790,280 -226,877,204,877 -273,063,241,072 -295,422,488,147 China (in the terms of trade volume) is the second largest trade partner of the United States. Looking at the data, it can be noted that over the last five years, United States has continuously been in trade deficit with China i.e. Chinese exports to United States exceeds its imports from United States....
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...panels or lease the panels depending on your current financial situation. According to energysage.com, there are five things to consider. Cost, maintenance, terms, offsets and return on investment are items to consider. Something you may not have thought about is where the panels are made. There are approximately 28 companies that manufacture and sell solar panels. Of the 28, 12 are made in China, and only four are made in the United States. Two of the 28 total companies that manufacture and sell solar panels hold the market share at 17 percent. Both companies Triana Solar and Yingli Solar, headquartered out of China, produce solar panels there. How good are the panels, what is the life expectancy, and how are they being made all come into question. As the largest Photovoltaic (PV) market in the world, 57 percent demand, the European Union asked these questions. In 2012, the European Commission conducted an investigation into China’s practice of selling PV to the EU. They determined that there was an average of 88 percent price cut of the PV systems being sold in the EU, by, by China (Sanghvi, 2014). Being that far below the fair market value can have different effects. It can cost the jobs of EU PV...
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...Chery Auto's Success Story (BSTR 377) ------------------------------------------------- Abstract: China based Chery Automobile is one of the top ten car manufacturers and the leading exporter of cars in the country. Started as an automotive company by the Wuhu government in 1997, Chery designed engines for cars. After finding no buyers for its engines, it decided to build its own car. Chery entered into tie-up with another automotive company which had license to sell cars to retail customers in China. After obtaining its own license, Chery implemented a four-phase strategy to develop its technical strengths. Chery started exporting cars as early as 2001 and became the largest exporter of cars among the Chinese car companies. Chery expanded globally to have its presence in over 70 countries by 2009. | | ------------------------------------------------- Issues: » Study and analyze the competitive strategies of Chinese automobile companies. » Understand how Chery Auto used available resources effectively to manufacture cars. » Examine how a startup company could develop R&D capabilities by collaborating with other firms. » Study the globalization strategies of Chery Auto. » Evaluate the challenges faced by Chery Auto in the near future. ------------------------------------------------- Contents: | Page No. | Introduction | 1 | Background Note | 2 | The Growth Strategy | 3 | Going Global | 5 | The Challenges | 7 | The Road Ahead | 9 | ...
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...heating and cooling, commercial air conditioning, commercial and industrial refrigeration and marine controls. 2015 vs. 2014 - Sales for Climate Technologies were $4.0 billion in 2015, a decrease of $98 million, or over 2 percent due to unfavorable foreign currency translation ($112 million). Underlying sales were up slightly ($14 million) as an increase in the global refrigeration business was essentially offset by a decrease in air conditioning. The temperature controls and sensors businesses were flat. Air conditioning sales in the U.S., Europe and China decreased while the rest of the world had strong growth. Global refrigeration was up modestly with growth in the U.S. and Asia and weakness in Europe. Overall, underlying sales were flat in the U.S., down 2 percent in Asia (China down 12 percent) and decreased 1 percent in Europe. Latin America was down 4 percent, Middle East/Africa was up 26 percent and Canada increased 13 percent. Earnings of $698 million decreased $39 million and margin declined 0.5 percentage points primarily due to unfavorable mix. Growth investments, and higher rationalization and unfavorable foreign currency transactions of $6 million each, were more than offset by cost reduction savings. Global demand in the air conditioning and refrigeration markets is expected to remain favorable in 2016, supporting an outlook for modest growth. 2014 vs. 2013 - Sales for Climate Technologies were $4.1 billion in 2014, an increase of $233 million, or 6 percent on increased...
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...(formal) • Coercive power of governments • Laws, regulations, rules • Normative Pillar (informal) • The values, beliefs and actions of a group (emotions) • Cognitive Pillar (informal) • Internalized values and beliefs that guide behavior • Culture & Ethics (logic) • How do these pillars shape behavior? Understanding Institutions… • What is the KEY ROLE of an institution? • Reduce Uncertainty! • Institutions constrain the range of acceptable actions. • Uncertainty surrounding economic transactions can lead to transaction costs. • Misunderstandings and conflicts. Understanding Institutions… • Institutions are not static • Some countries are in transition from centrally planned economies to market competition (China, Poland, Russia, Vietnam) • The “rules of the game” are constantly in flux in all societies. Institution-Based View of Global Business… • Two Core...
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...particular in respect the China and Japan, two major Asian markets in which MKC does not have a presence. Dandurand must decide whether to enter either or both of these markets (or neither) and, if so, what marketing entry strategy to pursue. This case gives your global marketing team the opportunity to: 1) explore why two companies (Avon and MKC) in the same business (the direct selling of cosmetics) differ so greatly in the percentages of their sales that are international 2) examine the transferability of a corporate value system developed in the United States to foreign subsidiaries 3) identify the criteria that should determine which country markets a multinational should enter and to assess two countries against these criteria 4) contrast the implications for marketing strategy and tactics of being a late entrant in a mature market versus a relatively early entrant in an emerging market The objective of the case is to focus on the following issues and dilemmas: 1. Why has MKC not been as successful as Avon in penetrating international markets? Answer in terms of the following: • Compare Avon’s international sale as a % of total revenue vs. MKC. Using the information in your case study as of 1993, make a chart (similar to a country comparison chart—complete with a third column “Implications for MKC’s Marketing Strategy”, comparing Avon to MKC in terms of Revenues, Non-U.S. revenues, Products adopted for non-U.S....
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...talks over liberalized air cargo routes between the U.S. and China? Assuming a perfectly efficient stock market, how might one interpret a 14% increase in FedEx’s market value of equity? Since the talks of a transportation agreement between China and the Us began in mid Feb both UPS and FedEx stock began a steady incline. Fedex had the largest share of the Chinese market with 11 weekly flights, almost twice UPS with 6 weekly flights, and served 220 Chinese cities. Their volumes in China had grown more than 50% bt 2003 and 2004. FedEx had the reputation of being innovative, and an operational leader, whereas UPS was know as the industry follower. UPS had problems with unionization, and FedEx did not. FedEx set a goal of producing “superior financial returns” meaning increasing earnings and maximizing value to shareholders. I also believe the lower price to earnings ratio of FedEx, 22.93 vs 29.01 and a higher EPS made FedEx a much more attractive stock to investors. With FedEx’s already strong position in China, expected to be the worlds largest economy in 2009, it would potentially be much easier for them to continue to capture the growing Chinese market that UPS, with much less of a presence. I believe the 14% increase in FedEx vs 3% increase in UPS is largely due to the position FedEx had in the Chinese market with 11 weekly flights almost twice UPS with 6 only weekly flights. Also FedEx’s volumes in China had grown more than 50% between 2003 and 2004. FedEx...
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...The Yuan vs. the U.S. Dollar Over the last few years, the economy of China has grown at a considerably high rate averaged at nearly 10% annually. Due to this enormous growth, China now influences the economy of virtually every country all over the world. This is more apparent and frightening, considering the United States’ economic relationship with China. Until 2005, China pegged its currency to the U.S. dollar, but as from July 2005, it linked its currency to other currencies rather than dollars and let its currency appreciate by 2.1%. The central bank of China did this by buying and selling the dollar dominated assets in exchange of printed Yuan in order to eliminate excess supply or demand for the Yuan. Due to this, the exchange rate between the dollar and the Yuan, basically, remained constant irrespective of changes in economic factors which could have otherwise destabilized the Yuan relative to the dollar. Since these reforms, China has continued manipulating its currency to its advantages, such as giving exporters an unfair trade advantage. This paper will provide an analysis of China’s Yuan against the U.S. dollar for the past 5 years ending in 2010. Also, the exchange-traded fund (ETF) of Yuan is discussed in depth. Recently, the U.S. policymakers had been having debates over China’s currency policy. The policy adopted by China has been linked to the rapidly growing United States’ trade deficit with China and the decline of employment in the U.S. and the emergence...
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...What this case is about FedEx vs. UPS China & US agreement for the establishment of air-cargo hubs in China and landing rights for commercial airlines at any available airport China is battleground for the two package delivery giants Assumption: success in China was widely seen as the litmus test for corporate survival in the new millennium No guarantee for how new cargo routes would be allocated between UPS and Fed Ex Which company was better positioned to attract the capital necessary to win this competitive battle? Current facts FedEx had largest foreign presence in China invented customer logistical management innovative, entrepreneurial, operational leader 2003 assets: $15.4 B Net Income: $830 M Revenue: $22.5 B Performance assessment: superior financial returns No unions – flexible with costs Model asset attentive UPS world’s largest package-delivery company historically bureaucratic and industry follower overhaul of image repositioning as leading provider of logistics and supply-chain management services small-package market - $60 B vs. worldwide supply-chain market is $3.2 T everything from the moment something gets made until it gets delivered for final delivery, and then after market, it’s parts replacement 2003 assets: $28.9 B Net Income: $2.9 B Revenue: $33.4 B Performance assessment: long-term competitive return History of FedEx 1971 Fred Smith Yale Purchase planes instead of using cargo space on passenger airlines like competitors Largest venture-capital start-up...
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