... The IMP Board of Directors thinks it is necessary to open offices in the locations where they are targeting the software. The next office location will be in La Paz, Bolivia, South America. Introduction to Bolivia, South America According to InfoPlease, Bolivia, South America was under Spanish rule from the 16th Century until they won their independence on August, 6, 1825. Since then, Bolivia has had more than 190 revolutions and coups. The most recent coup was in 1982. In 2006, President Morales carried out two of his three major initiatives –nationalizing Bolivia’s energy industry and rewriting the constitution. The new constitution was adopted in January 2009, granting indigenous people more rights and allowing the president to run for a second five-year term. Morales’ third initiative is legalizing the growing of coca. Morales’ controversial coca policy, his plans to limit foreign investment, and his close ties with leftist governments of Venezuela and Cuba are a worry to the United States. Morales has referred to himself as the “United States’ biggest nightmare”. On September 10, 2008, President Morales ordered Philip Goldberg, the U.S. ambassador to Bolivia, to leave the country. Morales accused Goldberg of “conspiring against democracy” and encouraging rebel groups who were protesting in eastern Bolivia. November 2008 saw a further deterioration of relations...
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...International Business – Bolivia Lithium William Ratliff Tarleton State University Dr. Baeza BUSI 4344 International Business – Online The Scenario The main objective of this assignment is to watch a video clip and answer some of the main questions that are addressed in this particular assignment (Buckley, 2004). This entire video clip is focused on the country of Bolivia and lithium, one of its major natural resources. The salt flats of Bolivia are estimated to contain over six million tons of untapped lithium. According to the video clip, Bolivia is also the poorest country located on South American continent. The acute poverty results in certain issues that need to be addressed, thereby allowing Bolivia to grow into a prosperous nation. Analysis & Discussion What are the Main International Management Problem(s)? After viewing the video, it is found that the major problem lies in the poverty and lack of education of its people and the corruption of its politicians (Buckley, 2009). There are many reasons why other countries, both within and outside of the region, would not want to see Bolivia prosper and increase its financial potential. Many of Bolivia’s neighbors are economically stable and their strength grows yearly. On the other hand, Bolivia itself is going in the opposite direction i.e. the standard of living in this country is extremely low (Eun and Resnick, 2007). One of the biggest problems or issues associated with this managerial problem is the lack...
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...Bolivia Standing as only one of the two landlocked countries in South America, Bolivia contains some of the worlds most resourceful vegetation as well as remnants of ancient cultures. Although rich with natural resources, like most developing nations, poverty is a reality for a large majority of Bolivia. Along with having the challenge of being a developing region, Bolivia is landlocked. This, without a doubt, only adds to the difficult task the Bolivian economy faces. However, positive change is taking form in most third world regions of the earth. With everyday, more volunteer groups, private investments, and modern medicine aid countries like Bolivia with their domestic, economic, and political complications. Bolivia is divided into three major geographical groupings defined by the Andes. The first being the collection of mountains found in the West along with the Altiplano. The second major geographical region is located in the valleys formed from the eastern mountain slopes. These valleys provide a semi tropical environment allowing for appropriate agricultural activities. However, the third geographical area contain plains that stretch across 63% of the country. These eastern lowlands(plains) are also referred to as Oriente. The rest is virtually the Andes mountains that literally split the landlocked country in half. The smaller half of the country (majority Amerindian) consists of mountain and rock leaving little to no agriculture to be had. In contrast, the larger...
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...Profile of Bolivia Kellie West Global Marketing MKTG450-H1WW (WI15) Professor Bruce Trumm 11 April 2015 BRIEF 2 2 Profile of Bolivia In order to better understand opportunities for U.S. made chemical pumps in Bolivia, it is important to become familiar with the geography, culture, people, and economy of the nation. With numerous indigenous tribes counted among the population and challenging geographic regions, Bolivia could make a challenging trade partner. Yet the economic outlook and wealth of natural resources make it a country worth considering when exporting and investing. Geography According to the CIA World Factbook, the South American country of Bolivia is a landlocked country bordered by Argentina, Brazil, Chile, Paraguay, and Peru (n.d.). It has mountainous regions with a high plateau as well as areas of hills and plains and there are plenty of waterways and fresh water resources located within Bolivia’s borders (Central Intelligence Agency). There is potential for volcanic activity in the Andes, but no immediate threat exists at this time (Witze, 2014). Due to its proximity to other South American countries, Bolivia is not only a prime candidate for U.S. exports, but could also be considered for investment in local onsite facilities to service surrounding countries. Companies should also consider population centers and where industries served by chemical pumps are likely to exist. Demographics Though it neighbors five other South American countries, Bolivia still has...
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...Political risk – a definition and an example Political risk can be defined in a concise way as “the impact of politics on markets” (Bremmer, 2005, p. 52), or as “political events and processes that can negatively affect doing business” (Alon & Herbert, 2009, p. 127). Alternatively, we can employ a less succinct definition, but one that more or less encompasses a similar wide range of events, as others do (for example, Jakobsen, 2010) – and as this paper does: here, political risk is conceived as those events, actions, processes, or characteristics of a socio-political nature that have the potential to – directly or indirectly – significantly and negatively affect the goals of foreign direct investors. Applying such a broad definition ensures that the concept of political risk embraces a multitude of incidents. Thus, cases of political risk will differ markedly with respect to the actors involved, the particularities of each harmful event, the root sources of investor trouble, and the firms or industries affected. Take, for example, the notorious case of Bolivia. On May 1st 2006, Bolivia‟s left-wing president, Evo Morales, kick-started a process of nationalization of foreign-owned petroleum firms that has continued to this day. 1 This came about after the country, three years earlier, had been rocked by a series of violent riots and demonstrations by ordinary, poor citizens and radical leftist...
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...arrived at the midpoint of 4.13 percent from 2002 until 2015, achieving an unsurpassed high of 4.30 percent in the final quarter of 2003 and a record low of 3.90 percent in the second from last quarter of 2002. UNEMPLOYMENT RATE IN ANGOLA Development and evenhanded improvement are obliged by the unfavorable business environment, lacking administration and straight forward in the administration of open assets, frail quality and upkeep of physical base, constrained nature of HR, feeble farming development, wasteful open administration conveyance to poor people, and troubles in overseeing salary from non-renewables to make investment funds for future eras. Social weights are expanding because of the high unemployment rate (26%), especially among youth; critical neediness, influencing 36.6% of the populace; and high wage imbalance. UNEMPLOYMENT RATE IN MEXICO Mexican jobless rate came in at 3.96 percent in December of 2015, the same as in the earlier month and the least since March. A year prior, unemployment was somewhat lower at 3.76 percent. Unemployment Rate in Mexico found the middle value of 3.82 percent from 1994 until 2015. UNEMPLOYMENT RATE IN BOLIVIA The unemployment rate from time to time decreases underneath 4-5 percent notwithstanding amid blast times. There are dependably individuals who move between various divisions of the economy or...
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...Getting to Know Mercosur Zak K. Blondis University of Memphis: Fogelman College of Business and Economics Abstract This paper is a brief overview of Mercosur and its current state, and will focus on the background, formation, global and regional impact of Mercosur and its members as well as the current dilemmas that are being faced. Issues ranging from economic to political will be discussed throughout. Internal disputes and protectionist policies place Mercosur in an uncertain situation as they focus to defend their own domestic products all whilst maintaining a steady external trade. A continuing worldwide economic power house, Mercosur continues to struggle with certain facets of trade and political structure. Background South America throughout past decades has seen bloodshed and political instability, and despite much improvement there is still reoccurring corruption to date. Although the Pablo Escobar reign in Colombia, Noriega’s rule in Panama, and Castro’s hold on Cuba are no longer relevant, there still remains similar political instability today. Mercosur directly translated is Mercado Comun del Sur, or The Southern Common Market, and is a trade bloc for six of South America’s member nations (See Appendix A for current member countries) where they enjoy free trade, very similar to that of the North American Free Trade Agreement, where the goal is full South American economic integration. Enacted in 1991 under the Treaty of Ascuncion, Mercosur was created...
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...to open up foreign markets to U.S. exporters. Trade Agreements reduce barriers to U.S. exports, and protect U.S. interests and enhance the rule of law in the FTA partner country. The reduction of trade barriers and the creation of a more stable and transparent trading and investment environment make it easier and cheaper for U.S. companies to export their products and services to trading partner markets. Agreement | Countries | Enters into force | Advantages | Disadvantages | NAFTA | Mexico, Canada and United States of America | January 1st of 1989 | Market Access for Goods, Protection for Foreign Investment, Protection for Intellectual Property, Easier Access for Business Travelers, Access to Government Procurement. | U.S. Jobs Were Lost,U.S. Wages Were Suppressed,Mexico's Farmers Were Put Out of Business,Maquiladora Workers Were Exploited,Mexico's Environment Deteriorated | FTA Nicaragua | Mexico and Nicaragua | July 1st of 1998 | Provisions on national treatment and market access for goods andservices; rules of origin; agriculture; sanitary and phytosanitary measures; telecommunications;financial services; | The FTA does not include a chapter on competition policy, energy, environment, labor, or transportation. | FTA Costa Rica | Mexico and Costa Rica | January 1st of 1995 | Provisions on national treatment and market access for goods, the agreementcontains provisions on agriculture, sanitary and phytosanitary measures, rules of origin, customsprocedures, safeguards...
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...10/24/2014 Mercosur: South America's Fractious Trade Bloc - Council on Foreign Relations Mercosur: South America's Fractious Trade Bloc Authors: Joanna Klonsky, Associate Editor, Stephanie Hanson, and Brianna Lee Updated: July 31, 2012 This publication is now archived. Introduction What is Mercosur? What are associate members? Why was Paraguay suspended as a Mercosur member? What are the implications of Venezuela joining as a full member? Does Mercosur have a political agenda? How does Mercosur affect other regional groups? How has Mercosur stimulated cooperation among its members? What are the prospects for Mercosur's future? Introduction Mercosur, the "Common Market of the South," is an economic and political agreement among Argentina, Brazil, Paraguay (which is currently suspended), and Uruguay to promote the free movement of goods, services and people among member states. Mercosur's primary interest has been eliminating obstacles to regional trade, such as high tariffs and income inequalities. Yet experts say Mercosur has become somewhat paralyzed in recent years, with its members divided over whether the organization should remain focused on regional trade or whether it should add political affairs to its mandate. In July 2012, Venezuela was admitted to the trade bloc as its fifth full member with complete access to the common market and voting rights, a move that some analysts say will primarily benefit Argentina and Brazil and further politicize the organization...
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...Nationalization is defined as the concept of a government seizing the private property of foreign nationals. In other words, nationalization is the alteration or assumption of control or ownership of private property by the state. It is historically a more recent development and differs in motive and degree from “expropriation” or “eminent domain,” which is the right of government to take property for particular public purposes (such as the construction of roads, reservoirs, or hospitals), normally accompanied by the payment of compensation. Nationalization may occur through the transfer of a company’s assets to the state or through the transfer of the share capital, leaving the company in existence to carry on its business under state control. Nationalization has often accompanied the implementation of communist or socialist theories of government, history tells us, as was the case in the transfer of industrial, banking, and insurance enterprises to the state in Russia after 1918. More recently, a further impetus has been resentment of foreign control over industries upon which the state may be largely dependent, as in the nationalization of the oil industries in Mexico in 1938 and Iran in 1951, and in the nationalization of foreign businesses in Cuba in 1960. In my view, another motivating factor for recent nationalizations may be the belief in some developing countries that state control of various industrial operations is at least temporarily necessary because of the lack...
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...1) What countries are involved in the drug trade of the Americas? How does each country contribute to the trade? According to the Drug Policy Alliance, “the Andean countries of Colombia, Peru and Bolivia are the world’s main cocaine producers, while Central America, Mexico and the Caribbean have become the principal corridors for transporting drugs into the United States and Europe.” Colombia is the country that exports the most cocaine, Peru and Bolivia being the second and third, and Mexico is mostly responsible for drugs entering the United States (Smith). Reportedly, “ninety percent of the cocaine that enters the U.S. transits through Mexico.” (CNN) 2) Provide some statistics surrounding death tolls in Latin America due to the activity of Drug Cartels. How do these statistics measure up to other world events attributed to high death tolls? In Venezuela 75% of murders are cartel or gang related (Mennem). Meanwhile, in El Salvador, there is an average of 16 murders a day (Mennem). These statistics are alarmingly high, and can easily be compared to the fight against terrorism and the war in Iraq. According to a recent UN report, nearly “9,000 civilians have been killed and...
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...Argentina ranks third in South America in total population and 33rd globally. Population density is of 15 persons per square kilometer of land area, well below the world average of 50 persons. The population growth rate in 2008 was estimated to be 0.92% annually, with a birth rate of 16.32 live births per 1,000 inhabitants and a mortality rate of 7.54 deaths per 1,000 inhabitants. The net migration rate is zero immigrants per 1,000 inhabitants. The total population in Argentina was last reported at 40.8 million people in 2011 from 20.7 million in 1960, changing 97 percent during the last 50 years. Argentina has 0.59 percent of the world´s total population which means that one person in every 169 people on the planet is a resident of Argentina. Historically, from 1960 until 2011, Argentina Population averaged 30.6 Million reaching an all time high of 40.8 Million in December of 2011 and a record low of 20.7 Million in December of 1960. The total population in Argentina was last reported at 40.1 million people in 2010 from 20.7 million in 1960, changing 94 percent during the last 50 years. Argentina has 0.58 percent of the world´s total population which means that one person in every 172 people on the planet is a resident of Argentina The Birth rate; crude (per 1;000 people) in Argentina was last reported at 17.15 in 2010, according to a World Bank report published in 2012. Crude birth rate indicates the number of live births occurring during the year, per 1,000 population estimated...
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... • Financial System • Employment VII. Trade Patterns • Trade Regulations • Imports • Exports • Labor VIII. VII. Conclusion Introduction South America was named in 1580 by cartographers Martin Waldseemüller and Matthias Ringmann after Amerigo Vespucci, who was the first European to suggest that the Americas were not the East Indies, but a New World unknown to Europeans. Continent of South America/Brazil South America is the 4th largest continent. It connects to North America by the Isthmus[1] of Panama. The country of Brazil accounts for more almost half of the continent and contains about half of the people. The countries that make up this continent include Argentina, Bolivia, Brazil, Chile, Columbia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay, and Venezuela. The northern section near Suriname, the continent also contains French Guiana which is a French dependency. The largest metropolitan areas on the continent are Sao Paulo in Brazil and Buenos Aires in Argentina. The population of South America as a whole...
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...own region, he became the evangelist, if you will, the missionary for the remaining countries and sub-regions in Latin American Operations. —Ramiro Garces, Vice President for Human Resources, LAO In the summer of 2008, Ramiro Garces, vice president of human resources for the Latin American region of Kimberly-Clark, the large consumer products company, was thinking about the many management changes spreading through the company almost like a virus. Less than a decade earlier, Kimberly-Clark had hired an Argentinean, Sergio Nacach, from Unilever. Nacach’s first job had been to run Kimberly-Clark’s operations in the small Central American country of El Salvador. Now, Nacach was running the Andean region for K-C and producing impressive business results. Because of his outstanding results, outgoing personality and willingness to talk to others about what he and his colleagues were doing, his management approach was generating interest throughout the company and particularly influencing its operations in Latin America. Operations in this area already demonstrated an organizational culture and leadership approach that was largely consistent with Nacach’s management style, so he did not have to struggle to implement his ideas. To make this different way of managing sustainable, the company needed to understand the essential elements of the Andean success. There was also the issue,...
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...As globalization occurs, national economies develop an interdependence with one another to continue to grow. One example of the interdependence between two countries is the Foreign Direct Investment (FDI). A FDI is an investment made over international borders that seeks to achieve an enduring enterprise in the host country. Paraguay is a potential destination for FDIs from US investors, but risk is evident. This paper will discuss a business proposition for a FDI in Paraguay and provide three reasons for this investment. Prior to the business proposition, the general background of Paraguay will be given. The Republic of Paraguay is a relatively small country (157,047 sq. mi.) that is about the size of California with a population of 6.46 million. It is located in South America and landlocked between Bolivia, Brazil, and Argentina. The major nature resources consist of hydroelectric energy, timber, iron ore, and manganese. Agriculture drives the market economy that is overwhelming informal. This leaves the Gross National Income (GNI) per capita based on Purchasing Power Parity (PPP) at a low $3,290.00US. The country mainly exports is agricultural products, soy beans, sugar, and beef, to Uruguay, Brazil, and Argentina. Hydropower is also exported as the country continuously has a surplus. This leads to major imports of machinery, electric machinery, and motor vehicles/tractors from China, United States, and Brazil. Currently, Paraguay is seeking re-admittance to the...
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