...Romana 2014 For an economy other than Australia analyze the influence of globalisation on that economic development and standard of living. This document is about how china has been transformed by globalization. The impact of globalization as well. Globalisation is breakdown of manmade and natural barriers. It encourages integration and interdependence through the movement of labour, investment, finance, transnational corporation and trade. The emergence of countries is leading to global market place or single world market. Globalisation is ongoing since 1980s.This is resulting in one global market. Globalisation helps firms grow as investments are quickly managed. This is due to improvement in telecommunication between nations. This has allowed investors to invest overseas. It also caused an increase in international investment, which helped spread new ideas. Financial flow is a flow of money around the world it is increasing rapidly because of financial deregulation. Finance and technology move freely between nations while free movement of labour is stretched way off. The last few decades have been centred on removal of all trade barriers. The goal is not free trade but it is freer trade. Through the reduction in barriers it is improved in transportation system. The integration between nations has caused to problems such the GFC, Asian crisis and Euro crisis. Over the past labour markets have been increasingly integrated. The free movement of labour is important...
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...The independence of internal auditing in China Term Paper Advanced Auditing February, 15 * The independence of internal auditing in China Abstract China’s rapid economic growth boosted its accounting system that has evolved at a singular rate. The national government encourages foreign investors to participate in the domestic capital market actively. The government also strictly supervises the different national economic activities; as a result, the credibility of the auditing system plays a important role. Chinese government as well as some firms seek reliable and independent internal audit services. This paper will examine some factors which may cause lack of independence in Chinese internal audit systems, the difference between the internal auditing in China and in western countries. Based on interviews and questionnaires, suggestions are made for future improvement on the internal audit system in China. Key words: internal auditing, audit independence I INTRODUCTION The globalization of economy, complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever-increasing attention to internal controls and internal auditing. (Karagiorgos et al., 2009) The role of internal auditing is also evolving as reflected in the following definition ‘an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing...
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...What Is Globalization? Globalization is a process of interaction and integration among the people, companies, and governments of different nations, a process driven by international tradeand investment and aided by information technology. This process has effects on theenvironment, on culture, on political systems, on economic development and prosperity, and on human physical well-being in societies around the world. Globalization is not new, though. For thousands of years, people—and, later, corporations—have been buying from and selling to each other in lands at great distances, such as through the famed Silk Road across Central Asia that connected China and Europe during the Middle Ages. Likewise, for centuries, people and corporations have invested in enterprises in other countries. In fact, many of the features of the current wave of globalization are similar to those prevailing before the outbreak of the First World War in 1914. But policy and technological developments of the past few decades have spurred increases in cross-border trade, investment, and migration so large that many observers believe the world has entered a qualitatively new phase in its economic development. Since 1950, for example, the volume of world trade has increased by 20 times, and from just 1997 to 1999 flows of foreign investment nearly doubled, from $468 billion to $827 billion. Distinguishing this current wave of globalization from earlier ones, author Thomas Friedman has said that today...
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...Q1. Analyze the external environment of the China. Answer: External environment also called macro environment consist of conditions, entities, events and factors surrounding an organization which influence its activities and choices, and determine its opportunities and risks. External environment can be divided into three broad categories. These are: ➢ General environment ➢ Industry environment ➢ Competitors Here we have to analyze the general environment of China. General environment is composed of several elements, which are discussed below in details. A. Demographic: 1. Geographic Distribution: If we see the geographical location of china in map than it is surrounded by North Korea, Japan, Vietnam etc. o Natural Hazards: There are frequent typhoons, damaging floods, Tsunamis, earthquakes, droughts, land subsidence etc occurs. So there is a high risk of natural calamities over there. o Climate: If we talk about the climate of china than it is extremely diverse, hot in south to cold in north. o Mountains and hilly land take up 65 percent of the total area. so most of the area of china are covered by mountains. o Area = total: 9,596,960 sq km o Land: 9,326,410 sq km o Water: 270,550 sq km o Coastline:14500 Km o China is World’s fourth largest country after Russia, Canada, US 2. Population size: With just over 1.3 billion people (1,330,044,605 as of mid-2008), China is the world's most populous...
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...Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo PART OUTLINE Chapter 1 Assessing the Environment—Political, Economic, Legal, Technological Chapter 2 Managing Interdependence: Social Responsibility and Ethics Assessing the Environment Political, Economic, Legal, Technological Outline Opening Profile: Economic Crisis Spreads Through Financial Globalization The Global Business Environment Globalization Globality and Emerging Markets Effects of Institutions on Global Trade Effects of Globalization on Corporations Regional Trading Blocs The European Union (EU) Asia Comparative Management in Focus: China's Economy Keeps on Chugging. The Americas Other Regions in the World The Russian Federation The Middle East Developing Economies The African Union The Globalization of Human Capital The Global Manager's Role The Political and Economic Environment Political Risk Political Risk Assessment Managing Political Risk Managing Terrorism Risk Economic Risk The Legal Environment Contract Law Other Regulatory Issues The Technological Environment Global E-Business Conclusion Summary of Key Points Discussion Questions Application Exercises Experiential Exercise Internet Resources Case Study: Indian BPOs Waking Up to the Philippines Opportunity? Management Focus: Intel Brings Changes to Vietnam's...
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...research, environmental influence is the key to understanding one country’s accounting system. "To a large extent, accounting is a product of its environment. That is, it is shaped by, reflects, and reinforces particular characteristics unique to its national environment" (Radebaugh and Gray 1997). From the late 1960s, researchers in international accounting have tried to categorize countries according to a series of criteria, which have been developed on a deductive or conductive basis. These criteria tried to explain the reasons for accounting differences between countries; they aimed to describe and compare different systems with each other in an efficient way. There are several advantages to categorize and analyze the differences among countries: First, it promotes improved understanding of the complex realities of accounting practices, as well as the factors that shape a country’s accounting regulations; Second, it provides useful information for solving some of the important accounting problems that exist in the world. For example, it can help policymakers assess the prospects and problems of international harmonization; Third, it can assist in the training of accountants and auditors who operate internationally; And finally, it can enable a developing country to better understand the available and appropriate types of financial reporting by seeing other countries’ use of particular systems. By looking at other countries in its group it is possible to predict the problems...
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...www.sciedu.ca/ijfr International Journal of Financial Research Vol. 3, No. 3; July 2012 The Strategic Transformation of Automobile Industry in China Som Techakanjanakit School of Management, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9237 E-mail: som7125@hotmail.com Meifang Huang (Corresponding author) School of Economics, Wuhan University of Technology 122 Luoshi Road, Hongshan District, Wuhan 430070, Hubei, China Tel: 86-186-7239-9537 Received: May 28, 2012 doi:10.5430/ijfr.v3n3p8 Abstract In the past few years, the global automobile industry is developing difficultly because of the influence from the financial crisis. In contrast, China's automobile production and sales are still having a blowout type growth, and jumped into the world's largest automobile production and sales market. At the same time, Chinese automobile companies continue to deepen and join with international brand cooperation; independent research and development of the independent brand production, and their technical also get greatly strengthened. Similarly, in the tide of industrial upgrading and international acquisitions, strategic transformation era of Chinese automobile industry has gradually started. This paper based on the world economic crisis brought both challenge and opportunity to the automobile industry in China, comprehensively analysis China's automobile industry development present situation and development trend...
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...The concept of globalization is simply to harmonize all nations by interchanging knowledge of societies, markets, transportations, technology, and various cultural aspects, in hope to create global stability and homogeneity of regulations for a standardized world. The subject of focus in this writing is attentive to economic globalization and the International Monetary Fund (IMF). The IMF was first introduced, along with the World Bank, (these two collectively known as the international financial institutions) towards the end of World War II, in 1944, as an attempt to defend the world from facing another financial crisis such that of the Great Depression (1930) and revive the damages caused by the war. The six goals and guideline principles...
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...36 Appendix C …………………………...………..……………………………...……….. 37 Appendix D …………………………...………..……………………………...……….. 38 Appendix E …………………………...………..……………………………...……….. 39 Executive Summary As a result of systemic changes in the economy over the last two decades, the world of work has radically changed in eastern European and Asian countries. Transition reforms have led to rapid structural shifts in the economy: China has become a focal point for much of the insecurity that globalization has produced: for the past two decades China has experienced explosive economic growth that has attracted jobs and capital from around the world (Feng, 2007). No other industrializing country has ever attracted jobs at both the high and low ends of the production chain. From basic level assembly work to the upper tiers of industry and services, China is setting the global norm for working standards around the world. Workers in rich and poor countries alike feel the effect of China as global corporations move to China to lower labor costs and use the threat of this mobility as a lever to drive down wages and working conditions for workers in other countries such as Germany, examined in this paper. China continues to welcome foreign firms with open arms- the Chinese government provides a...
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...Nour Shaker Supervisor: PhD. Jose Ferraz-Nunes Examiner: PhD. Bengt Kjellen Master’s thesis in International Business 15 ECTS Department of Economics and Informatics University West Spring term 2010 ABSTRACT Over the past two decades, the open-door of the market supply in China has had a massive impact on the automotive market. This development contributes to the globalization of the automobile industry that involved the integration of the Chinese domestic market into the international markets. Among many reasons, motivation to gain access to industrialized markets and to gain access to superior technology, management resources and knowledge are the most driving factors of the Chinese automotive industry for the internationalization and going abroad strategy of China´s automotive industry. This study investigated whether different external globalization drivers and internal organization factors have differential effects on various dimensions of China´s automakers firms’ global strategy. Most of the studies written about global strategies have implemented only either of the internal or the external drivers of the internationalization of the firms. The contribution of the paper introduces a more comprehensive model on the global expansion of a firm. This paper concludes that China´s automotive industry has some competitive advantages such as low cost, while, facing a number of challenges that hinder the internationalization of Chinese automobile companies. It also...
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...Chapter 2. Globalization in Question 1. “Pro” vs. “Anti” Globalization: The New Divide For a number of years, the question of economic globalization—i.e., the interdependence of national systems of production and exchange and the ―financialization‖ of the world (revealed by the American subprime crisis in 2007)—has polarized public opinion. The problems stemming from economic globalization dominate the news: the outsourcing production in search of cheaper labor costs; the decreasing efficiency of national juridical and fiscal regulation; the waning of the very idea of sovereignty; the growing constraints within which politicians can act; the emergence of a small class of the immensely rich alongside the billions of poor; the rise of new financial actors—pension funds, hedge funds, and sovereign wealth funds—capable of destabilizing or seizing control of entire realms of the economy; and the emergence of China and India as new global economic actors, as their companies storm the industrial bastions of the United States and Europe. Should one be for or against globalization? Can we turn our backs on globalization, and return to national or regional systems of production and exchange that are autonomous, even autarkic? Is the large cosmopolitan corporation the new leviathan—a monster that must be slain—or a force for human progress? It is tempting to reduce the debate over the economy of the twenty-first century to a simple alternative: being for or against globalization. Yet in...
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...wave of Merge and Acquisition in the 1990s, the global banking industries have developed towards the direction of large-scale, international and omnipotent banks. The mixed operation of the commercial banks had already been the leading trend in the 21st century. With China’s entrance into WTO at the end of last century, the Chinese financial institutions, especially the Chinese bank industries, are destined to participate in the global economy and to face the keen competition from the "financial conglomerate" of the western developed countries. The commercial banks still operate separately at present according to the law. Being the important part of Chinese financial market, the Industrial and Commercial Bank of China (ICBC) as one of the big-four state-owned commercial banks should make an important decision on whether or not fully introduce the mixed operation for operating in UK. This study analyzes the difference of the operation model of HSBC and ICBC are operating in the UK at present, and examines the advantages and disadvantages of both separated and mixed operation for ICBC (London). Furthermore, it proposes the realistic choice of operation model for ICBC (London) under the existing Chinese financial system and the market condition of UK. This paper argues that the separated operation model of ICBC and investment banks in the short term will not change. The internally integrated operation model in terms of mixed operation which through restructuring to concurrently operate...
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...international 14 Issues in internationalization management 15 WINE MARKET 17 Profiles of Country Producers 17 CHINESE WINE MARKET 25 Overview 25 Wine market overview 28 Imported wine 32 Italian case 36 Future prospective 45 REFERENCES 48 Bibliography 48 Consulted website 52 INTRODUCTION The purpose of this work is to analyze the growth and evolution of the wine market in China. In particular we will focus on the internationalization of the global wine producer countries in this new emerging market and which are the futures prospective and possibilities of this young market. This paper is composed by four main sections: 1. Theoretical framework; 2. Wine market; 3. Chinese wine market; 4. Italian case. First of all we need to understand what we mean when we speak about internationalization. Through a theoretical chapter, using the existing literature about internationalization, we will explore its theories, evolution and which benefits it may bring to the firm that implement it, showing how important it became in the globalized world in which companies work nowadays. Afterward we are going to analyze, thanks to the data taken by reliable sources, the global market of wine, showing its fragmentation, which are the main player and their characteristics. Now that we have a general panorama, we can concentrate on the Chinese market, its cultural and economic features, and the evolution of its wine market. Finally we will focus on the Italian...
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...the company. Iron Pump is situated in Herlev, near Copenhagen and has around 100 employees. Iron Pump has an annual revenue exceeding EUR 18 million (Iron Pump, Company). With an ambitious growth strategy and full capability of competing globally, Iron Pump seeks continuous global growth in the future (Iron Pump, Company). In 2003 Iron Pump entered the Chinese market by establishing a representative office in Shanghai (Interview, Iron Pump). This report will focus on expansion of Iron Pump into the Chinese market, but why China? Firstly, with an expected GDP growth exceeding 7,5 percent in 2013, the Chinese economy is steadying, showing new signs of stabilization after a 2 year period of cooling due to the global financial crisis, hindering further globalization of new markets (Reuters, 2013). Secondly, from a more market-oriented point of view for Iron Pump, it is critical that the great majority of the Chinese pump market is driven by centrifugal pumps. In 2011 it accounted for 50.56 percent of the total market revenue reaching USD7.28 billion. Additionally, this trend is expected to increase and reach USD10.20 billion by 2015, a 10,67 percent...
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...FCjhANALYZING CHINA’S AUTOMOBILE INDUSTRY COMPETITIVENESS THROUGH PORTER’S DIAMOND MODEL DI WU Bachelor of Management, University of Lethbridge, 2004 A Research Project Submitted to the School of Graduate Studies of the University of Lethbridge in Partial Fulfillment of the Requirements for the Degree MASTER OF SCIENCE IN MANAGEMENT Faculty of Management University of Lethbridge LETHBRIDGE, ALBERTA, CANADA © Di Wu, 2006 (Approval/ Signature page) ii Abstract This paper incorporates Porter’s diamond model to analyze China’s automobile industry. Besides looking at the four determinants of competitiveness in the original model, this study specifically examines the impact of government on industry competitiveness. This study retrieves archival data on multi-measurements used in prior studies. The author incorporates one case study of a Chinese auto firm to illustrate the specific impact of government policy and the responses of auto assemblers and component suppliers. Interviews with experts in auto-related industries are conducted to triangulate the findings. Results show that the Chinese auto industry is still in its early stages of development, whereas product quality and economies of scale of domestic automakers are approaching global standards; thus Chinese auto firms aim at becoming major players in the international market. The government plays an active role in assisting the industry development as the nation transitions from a planned economy to a free...
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