...has turned into very lucrative business in India. Does this augur good or bad for India, its economy and the markets, especially BRICs country? Explain your position. From the facts of the case, it can be clearly seen that politicians thrive in India irrespective of rising inflation and slowing economy. Emerging countries will account for a large chunk of the world’s growth. These countries promise new and unexplored markets to the world with their rising levels of consumption and cheap labor. However, markets such as India pose unique risks for the businesses and hence impact its economy. Business risks are provoked because of influence of government in transactions which are expected to be purely commercial in the developed countries. State plays a very important role in planning of its economy and if the resources are used by the politicians for their “business” then economy is bound to fall flat. Financial crises are attributed to misbehavior of some kind, greed, fraud and cronyism. As is widely known, political influence is very essential to start a business in India. This is a key concern for the Indian markets. Corruption has serious repercussions on India’s businesses and political environment. Every time a scandal occurs it damages the credibility of the government. The following are the implications of corruption on India’s economy and markets: Corruption reduces competition and efficiency in the Indian economy. India ranked 134th out of 183 countries in the World...
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...1. Describe the economic and social impact of bribes and other similar payments in emerging economics. In emerging economies, bribes and other similar payments have a negative impact. Such corruption, although appearing to provide short term growth, will not turn into long term growth. Corruption reduces the efficiencies of the operations of the 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...
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...The Corruption Perceptions Index (CPI) is the indicator to reflect the level of corruption among countries or territories. The ranks and scores are widely used to evaluate the abuse of the public power. The index is measured by numerous institutions from a variety of assessment and surveys of corruption. The scale of scores is from 0 to 100, to be specific, 0 means a country has a high level of corruption and 100 means a country is very clean. Both Australia and Chile have a steady ranking between 2010 and 2012. In 2012, Australia scores 85 and ranks 7th; Chile scores 72 and ranks 20th. The two countries both have a higher CPI; however, the CPI of Australia is higher than that of Chile obviously. There are some reasons related to the different ranking. The Australian government provides essential and adequate training to officers and officials about the severe consequences of corruption, which is an effective measure to prevent corruption. In addition, Australia established Corruption and Crime Commission (CCC) which is the leading anti-corruption body in Australia. CCC supervises public sector agencies and officials to comply rules and laws, thus avoid corruption. Chile has a better reputation of transparency and higher CPI than any other countries in Latin America. This because Chilean government attempts to improve anti-corruption and transparency. In 2009, Chilean transparency law goes into effect, and it requires all public sectors to publish information on incomes and...
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...Foreign Direct Assessment: Analyzing the Mobility of FDI Models in Emerging Markets Kyle Himmelwright & Damian Zaccaria, Villanova Business School In this article, the authors will explore foreign direct investment in emerging markets. Applying a two prong investment model, they’ll assess three emerging Southeast Asian marketplaces; Indonesia, Thailand, and Malaysia. Additionally, they’ll explore the impact a variety of explicit and implicit factors have on the outcome. The research will indicate which of the three markets has the most potential for investment. Keywords: Foreign Direct Investment (FDI), emerging markets, investment, economic factors, growth, defense Foreign direct investment (FDI) plays a prominent and growing role in the global marketplace. FDI is defined as an investment made by a company or entity based in another country. The investment provides the firm with an opportunity to access new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing (Goingglobal.com 2015). Accurately assessing marketplace factors is essential when evaluating whether to invest in a foreign market, especially when it comes to making decisions requiring foresight and conviction. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Rupert Murdoch’s quote concisely illustrates the current state of the global marketplace; it simply isn't as big as...
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...Business Law 2012 - 2013 Legal Risks in Emerging Markets – Evaluation and Mitigation Legal Risks in Emerging Markets – Evaluation and Mitigation Student’s ID number | 000090 | Module name | International Aspects of Business Law | Module code | 6241170 | Tutor | Eldor Mannopov | Individual assignment | x | Group assignment | | Submission deadline | 13 March, 2013 | For Academic Registrar use only | TABLE OF CONTENTS: INTRODUCTION 3 DEFINING LEGAL RISK LEGAL RISKS IN INTERNATIONAL TRADE LEGAL RISKS COUNTRY PROFILES 4 - MALAYSIA - THAILAND 5 - VIETNAM 7 - CAMBODIA 8 CONCLUSION 9 REFERENCES 10 ITRODUCTION: Cowan PLC specializes in producing copper tubing. Following globalization and internationalization tendencies the company is currently considering an option of exporting its products to the new markets in the following countries: Malaysia, Thailand...
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...The prohibition of corruption in China, Korea * Invitation and Submission of Bids Law of the People’s Republic of China 178 * Interim Provisions on the Prohibition Against Commercial Bribery Acts 179 * China Enforcement Agencies 179 * Commission for Discipline Inspection of the Communist Party 179 * Supreme People’s Procuratorate of the People’s Republic of China 179 * Ministry of Public Security of the People’s Republic of China 180 * State Administration for Industry and Commerce of the People’s Republic of China * Case * Background China’s substantial corruption challenges are deeply rooted in cultural traditions as well as the country’s complex transitory conditions. Further, corruption is increasingly growing in significance as a political issue in China, and in an international context, China’s corruption problems have attracted extensive attention. Like any emerging market, China suffers from corruption and an often unethical business environment. What makes China different from many other national economies is the scale of the bureaucracy and the pace of economic development from a low base, both of which have created conditions ideally suited to the growth of corruption and opportunities for massive financial gain by underpaid local government of officials and by entrepreneurs eager to amass personal fortunes as quickly as possible. The sources of corruption in China In overall terms, corruption in China derives from three main...
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...international organizations support Emerging Markets and Future Emerging Markets - NGOs Term paper for “International Trade and Emerging Markets” Winter Semester 2015/2016 Lecturer: Prof. Herrmann Leon Hankamp MA 14 IB / International Trade and Emerging Markets Student-No. 114550000 Table of contents 1. Introduction 3 2. Non-governmental organizations 3 2.1. What is a NGO? 3 2.2. Different types of NGO’s 4 2.3. Strengths and Weaknesses 5 2.4. Renowned NGO’s in emerging markets 5 3. NGO’s in emerging markets 7 3.1. The role of NGO’s in emerging markets 7 3.1.1. Poverty 7 3.1.2. Human rights 9 3.1.3. Corruption 10 3.1.4. Environment 12 4. NGO’s collaborations with other entities 12 4.1. Companies 12 4.2. World Bank 14 5. Conclusion 15 Bibliography 17 1. Introduction The purpose of this term paper is to analyze and demonstrate the role of NGOs (Non-Governmental Organizations) in the emerging markets and future emerging markets. First at all, what is a NGO? The first part of the paper focuses on the theoretical framework of the NGOs, although there is no real definition of what a NGO is. There are different definitions from different companies or entities; however all NGOs have the same goal, to help the poor, stand for human dignity and protect the environment. In the main part I am going to handle the subject which is the actual role of NGOs in emerging economies. There are different areas...
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...measures to curb corruption, foreign investors doing business in China must remain vigilant. Tuesday, June 04, 2013 , By Jim Barratt and Jimmy Ko China's economy is the second-largest in the world and continues to grow at an astonishing rate. Just recently, in fact, the Asian Development Bank forecasted that China's economy will grow by 8.2% this year. However, while economic growth brings business opportunities to all investors, continued widespread corruption in China has affected its government's legitimacy in maintaining prosperity in the region and can bring a multitude of risks to financial services companies that are doing business there. With China's recent transition to new leadership complete, it has been interesting to observe the ruling party's heightened focus on tackling corruption. Under China's new president, Xi Jinping, it has conducted a visible anti-corruption drive and imposed austerity measures in an effort to curb the display of wealth by government officials and generate goodwill among the Chinese population. While critics say that the recent measures target only the most conspicuous displays of wealth by government officials, the anti-corruption drive has already netted dozens of officials. Moreover, some perceive that the recent election of Wang Qishan as the new head of China's anti-graft body, the Central Commission for Discipline Inspection (CCDI), signals that the financial sector could be a focus in China's anti-corruption efforts. (Mr. Wang...
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...1 CHAPTER 1 GLOBAL MARKETING ENVIRONMENTS 1 Understanding Global Markets and Marketing 2 markets are becoming global 2 globalization: the world is becoming smaller 3 globalization and global marketing 4 Globalization: Opportunity or Threat? The Global Marketing Approach 6 6 global marketing and global markets 7 the cage distance framework 7 domestic and global marketing compared 8 Geographic or Spatial Distance 10 Psychic/Cultural Distance 12 The EPRG Framework 13 Developing Global Marketing Strategy 14 The Standardization versus Localization–Adaptation School 14 Levitt and the Globalization of Marketing 16 Standardization versus Mass Customization 17 Managing the Firm’s Value Chain 18 Global Value Chain Configuration 19 Integrating the Firm’s Competitive Strategy 20 Global Competition 20 a global marketing management framework Global Marketing Performance 22 Global Vision—The World Is My Oyster CASE 1-1 CASE 1-2 CHAPTER 2 21 23 A Tortuous Road Ahead for Proton of Malaysia 26 Dabur—Developing Values in an Emerging Economy Through Value Chain and Product Line 31 Assessing the Global Marketing Environment—The Global Economy and Technology 36 the global economy 37 Economic Growth and World Trade 37 Who Are the United States’ Major Customers? 38 High Tech Products Lead World Trade 40 Characteristics of High Technology Markets 42 Technology and Global Financial Services 44 vi alo29279_fm_i-xxii...
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... S by-Labij kumar Boro DFT-VI ROLL-1O 12/4/12 INTRODUCTION The United Nations Global Compact, also known as Compact or UNGC, is a United Nations initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies, and to report on their implementation. The Global Compact is a principle-based framework for businesses, stating ten principles in the areas of human rights, labour, the environment and anti-corruption. Under the Global Compact, companies are brought together with UN agencies, labour groups and civil society. The Global Compact is the world's largest corporate citizenship initiative and as voluntary initiative has two objectives: "Mainstream the ten principles in business activities around the world" and "Catalyse actions in support of broader UN goals, such as the Millennium Development Goals (MDGs)."[1] The Global Compact was first announced by the then UN Secretary-General Kofi Annan in an address to The World Economic Forum on January 31, 1999[2], and was officially launched at UN Headquarters in New York on July 26, 2000. The Global Compact Office is supported by six UN agencies: the United Nations High Commissioner for Human...
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...Essay Integrity management consulting is a fast-emerging global sector that advises individuals and corporations on how to apply the highest ethical standards to every aspect of their business. At the core of integrity management is the belief that companies have a strong interest, as well as a responsibility, to act with integrity at all times. This field arose in response to (a) the increased perception that companies are more likely to succeed when they act with integrity and (b) increased awareness by company directors of the need to seek expert advice to help them align and incorporate high ethical standards with business strategy and integrate them across all operational functions. In recent years, the general public have become both better informed and more concerned about business ethics at home and in developing countries. As a result governments have been called on to legislate, and business leaders to innovate, to ensure that high ethical standards are put at the heart of business and industry. The field of integrity management aims to address: 1. The demand for companies to respond to increasing awareness of ethical misconduct and resulting expectations for transparency and accountability; 2. The requirement for companies to comply with a stricter legal framework and avoid prosecution for unethical behaviour; and, 3. The desire for executives to make their enterprises leaders in responsible and sustainable development. Contents * 1 Increased public...
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...industry accounts for only around 2.5% of global production in terms of unit numbers, it is by far the leading exporter of watches in value terms. The industry is now Switzerland's third largest export sector. At 95%, almost its entire production is exported. The majority of the PESTEL analysis will focus on these two countries. Political: Introduction of anti-corruption measures and restrictions on advertising has resulted in economic slowdown in the watch industry. It resulted in Swiss exports of small watches to china falling abruptly in the middle of 2012. However given the rapid pace at which the Chinese market has developed in proceeding years, the decline in Swiss watches exports should be seen as normalization rather than a slump. Watch exports underwent an abrupt trend reversal in June 2012. This negative trend reversal and shift in demand to more economically priced watches were partly due to political measures. In July 2012, the Chinese administration announced that government officials would in future no longer receive public funds for luxury goods. These measures are primarily aimed at combating corruption and curbing the practice of giving gifts to officials. This was compounded by the fact that advertising for luxury goods in certain cities such as Beijing became subject to partial restrictions in April 2011. Thus foreign "cult" products, for example, can no longer be advertised. Also, terms such as "upmarket", "luxurious", "luxury", "royal" and "must-have"...
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...Siemens Corporate Strategies: A Siemens AG Case Study Jeff Head Loyola University Chicago Foundations of Organization CPST 250 Dr. Marilyn Stocker February 13, 2015 Siemens AG, An Organizational Analysis “Siemens is a global technologies company comprised of 343,000 employees worldwide” (Karczewski, 2014). For the purpose of this paper an analysis of the company will be presented, to include a look at the company mission, human resources, markets, products offered, recent financial performance, and how engineering plays a major role in Siemens AG. Description of the Organization In 2013, Peter Loscher was replaced as CEO of Siemens AG by the current CEO Joe Kaeser. The following year Kaeser presented “Vision 2020”, a comprehensive plan to get the company back on track. This vision provided focus on the company’s path, positioning, culture and strategy. The strategic framework to support the vision centered on the company with four contributing elements: Customer and Business Focus, Governance, Management Model and Ownership Culture. Siemens History and Operations “Siemens was first founded in 1887 and started to expand with mass production and established a branch in Saint Petersburg and London for Russian lines and English lines” (Choudhary, 2013). It increased its production and started producing electrical power, lighting, and other advances after the Industrial Revolution, which enabled it to gain strength. After the end of World War II, it faced expropriation of over...
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...Doing Business in Emerging markets Homework 2: Starnes-Brenner Machine Tool Company- to bribe or not to bribe Silvia Mattei 1. Introduction to the main issue Corruption, bribery and other unethical behaviours are still one of the major concerns in International Business, influencing not only the companies’ performance in local markets, but also mining competition and the welfare of the countries in which this practices are considered part of the culture as such. In particular for very large international companies, with subsidiaries spread all over the world, to keep track of unethical practices may be difficult, as to maintain the integrity of the corporate culture in all the people involved in the organization, from the employees, sales managers and top management. Every country has a different culture, and every culture has its own level of tolerance against corruption. Since bad practices like bribery are well ingrained both in the countries’ culture, as well in the companies’ culture, it is evident that changes do not happen over-night, and to draft an anti-bribery policy and post it in the office blackboard is not enough. The aim of this paper is to analyze several perspectives on the topic, taking the reader into the discussion by giving him/her pro and cons by analyzing a specific company and his cultural and managerial issues when facing a period of internationalization and internal changes. 1.2 Company profile Starnes-Brenner Machine tool...
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...It is the world’s most populous Mus- lim nation—some 85 percent of the population count themselves as Muslims—but also one of the most eth- nically diverse. More than 500 languages are spoken in the country, and separatists are active in a number of provinces. For 30 years the strong arm of President Suharto held this sprawling nation together. Suharto was a virtual dictator who was backed by the military establishment. Under his rule, the Indonesian econ- omy grew steadily, but there was a cost. Suharto bru- tally repressed internal dissent. He was also famous for Market Potential Index (MPI) is a yearly study con- ducted by the Michigan State University Center for International Business Education and Research (MSU- CIBER) to compare emerging markets on a variety of dimensions. Provide a description of the indicators used in the index. Which of the indicators would have greater importance for a company that markets laptop computers? Considering the MPI rankings, which de- veloping countries would you advise such a company to enter first? “crony capitalism,” using his command of the political system to favor the business enterprises of his support- ers and family. In the end, Suharto was overtaken by massive debts that Indonesia had accumulated during the 1990s. In 1997, the Indonesian economy went into a tailspin. The International Monetary Fund stepped in with a $43 bil- lion rescue package. When it was revealed that much of this money found its way into the personal coffers...
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