...Evaluating the tax incentives for foreign investors policy Reporting to the Manufacturers league Executive Summary This report has been written in response to the government’s proposed tax incentive policy for foreign multi-national corporations to increase foreign direct investment within Australia. The report draws attention to the reasons behind the government’s proposal. These include the slow growth trends of the manufacturing industry, restoring the dropped level of foreign investment caused by the global financial crisis as well as a desire to increase levels of employment within the manufacturing sector. It continues by drawing attention to the resultant competitive issues that may be caused by such a move as well as issues that may arise due to inflation. It also draws attention to the tendency for foreign investment to result in less government intervention which may affect the industry in the longer term. It is recommended that: * The government increase the breadth of its proposal to all investors in the manufacturing industry so as to reduce competitive pressures on local manufacturers. * The government increases investment in training to provide a skilled workforce and reduce inflationary wage pressures. Introduction This Report shall be to determine whether or not tax incentives, with relation to foreign direct investment (FDI), are beneficial, holistically. First we must say a word about the nature of FDI. FDI can be defined as “....
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...International Economy Global recession is a situation many economists fear could happen if actions today are not implemented. Fixing the economy cannot be done by only addressing one issue as the economy is an intertwinement of different areas combined. A change in one area has effects on others just as not making changes can affect other areas too. Preventive measures in the areas of global productivity, monetary and fiscal policy, and increasing international trade could keep the world from entering this kind of recession. By being proactive citizens of the world the global economy could overcome current conditions. If some of today’s issues are not resolved or addressed the world could face real economic hardships. Increasing Global Productivity by Increasing Employment When one thinks of efficiency in productivity and productivity costs usually coincide with job cuts and lower wages. However, according to Okun’s Law, there is a 1 to 2 ratio when comparing unemployment to loss of real output (Schiller, 2008). This relationship means the more employed individuals a nation has the higher the production possibility can be. The higher number of unemployed individuals the lower the production possibility is. Decreasing unemployment globally will maximize global output. Increases in global output can have beneficial effects on demand and supply, inflation, and the Gross Domestic Production Per Capita for the entire world. Monitoring Monetary and Fiscal Policies Government...
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...Assignment Name : HND BUSINESS ENVIRONMENT Student Name : IGOR ORLOV Student ID : SC 4074 Semester : CONTENTS PAGE Introduction 02 A Brief Overview of Toyota Motor Corporation 02 A Brief History 02 Section LO1 - Organisation Purposes 03 Purposes of different type of Organisation 03 Stakeholders expectation and Organisational strategies 04 Responsibilities of Organisation and strategies to meet them 05 Section LO2 - Nature of the natural environment 07 Economic system and resources 07 Fiscal and monetary policies effect on Organisation activities 09 Competitor strategy 09 Section LO3 - Organisational Behaviour in market environment 11 Pricing and output decision 11 Market forces and effects for an Organisation 11 Business and cultural environment 11 Section LO4 - Significance of global factors affecting a business 13 International trade 13 Global factors influence on a business 13 Summary and conclusion 14 Credits and references 14 INTRODUCTION My aim in writing this assignment is to delve into the subject of Business Environment and describe its key functions. I have chosen to research and submit my findings based on the company Toyota Motor Corporation, and look into ways in which the subjects covered in this assignment apply to this corporation. A BREIF OVERVIEW OF TOYOTA MOTOR CORPORATION Toyota Motor Corporation commonly known simply as Toyota and abbreviated as TMC, is a Japanese...
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...ECON 504 – Final Paper Domestic and Global protectionist policies affecting economies Throughout the global economy, there are free trade zones and there are restricted zones. Free Trade exists when there is an absence of government imposed barriers in existence between nations in order to restrict trade. When barriers such as those referred to as protectionist policies exist, free trade becomes restricted. Protection is essentially defined as any action by national governments that will give an artificial competitive advantage to domestic producers at the expense of foreign producers. National governments aim to protect their nation from the disadvantages of free trade, through protectionist policies in the form of subsidies, tariffs, local content rules, quotas, export incentives and voluntary export restraints. Reasons for protection include “The Infant Industry argument” which states that some industries in a given country may develop a comparative advantage if only they are sheltered from foreign competition for a while, by means of temporary protection. So if in the future, the infant industries ‘grow up’ and form a comparative advantage, the domestic economy will gain access to a larger demand market, creating an injection into the economy, resulting in increased economic activity and employment. The domestic protection argument states that free trade and increased global competition can result in structural unemployment. Therefore, it has...
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...ECONOMICS FOR DEMOCRATIC AND OPEN SOCIETIES PROJECT POLICY PAPER #2 The Economics of Outsourcing: How Should Policy Respond? Abstract Outsourcing is a central element of economic globalization, representing a new form of competition. Responding to outsourcing calls for policies that enhance national competitiveness and establish rules ensuring acceptable forms of competition. Viewing outsourcing through the lens of competition connects with early 20th century American institutional economics. The policy challenge is to construct institutions that ensure stable, robust flows of demand and income, thereby addressing the Keynesian problem while preserving incentives for economic action. This was the approach embedded in the New Deal, which successfully addressed the problems of the Depression era. Global outsourcing poses the challenge anew and calls for creative institutional arrangements to shape the nature of competition. Thomas Palley Economics for Democratic and Open Societies Project Washington DC 20010 e-mail: mail@thomaspalley.com March 2006 1 “A wild horse can do a lot of damage, but a bridled horse can be an invaluable asset.” Posted by Proud UAW Member in response to “Politics of Globalization” at www.thomaspalley.com, December 27, 2005. I. Understanding outsourcing Outsourcing is a central element of globalization, and policymakers need to understand its economic basis if they are to develop effective policy responses. The practice of outsourcing should...
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...mention its effects on the corporate bottom line. Creating a climate of appreciation, where efforts are recognized and potentially rewarded, can go a long way toward strengthening the process of engagement and improving the outlook for the company as a whole. Further complicating the recession economy is the shrinking talent pool. As baby boomers retire (or hope to soon), so-called baby busters and millennials are taking over leadership roles throughout corporate America. A shortage of talented workers worldwide is inevitable in the coming years. Global recruitment will see an increase in diversity – in age, experience, language, culture and values – thus challenging companies to consider multiple strategies and tactics to drive performance and employee engagement. Developing recognition and reward programs to encourage an engaged, diverse and talented team is an important tool for thriving in the best times and surviving during economic downturns. Even though the environment in which companies are operating...
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...growth of the global economy. Yet despite the broad potential of ICTs, their benefits have not been spread evenly. Indeed, using ICTs effectively to foster social inclusion and economic growth is among the key challenges facing policymakers today. As one of the world’s leading ICT firms, Microsoft brings a unique perspective to this issue, one informed by years of collaboration with the international development community. Microsoft firmly believes that ICTs hold tremendous promise as an enabler of social and economic development. ICTs can help underserved populations obtain, manage and disseminate knowledge and to tap into global networks of information and services. And rapid innovations in technology – the fruits of intensive R&D efforts by Microsoft and others – are making ICTs less expensive and easier to use, bringing the power of ICTs within the reach of ever more people. ICTs promote development across many dimensions. At their most fundamental level, ICTs enable organizations to be more productive, thereby spurring economic growth and helping firms be more competitive. ICTs can also expand the reach and effectiveness of social development projects and have already yielded important benefits in such areas as healthcare, education, and environmental preservation. Public-sector uptake of ICTs is also making governments more efficient and their decision-making more transparent. Finally, many developing countries have achieved important economic gains in nurturing...
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...University of Engineering and Economics" Department of International Management Coursework on discipline "International Management" The study of marketing environment on the example of South Africa Fulfilled: Kulikov Evgeny Group 2/5591 3rd year Faculty VSHEM Leader: Ph. D. in Economics, docent Grishchenko T. Saint-Petersburg 2012 Contents Contents 2 Economic inspection in South Africa 3 The New Growth Path and Industrial Policy Action Plan 8 Investment promotion and facilitation 12 South Africa’s investment landscape 16 Government management of incentives program 19 Catalogue of incentives 20 About PEST and SWOT 22 PEST analysis 23 SWOT Analysis: 26 Соnclusion 28 Sources 30 Economic inspection in South Africa Trade and investment policies are critical for addressing the development challenges of Africa and achieving sustainable economic growth for the region. EDIP's work is broadly divided into three streams: (1) Research on global economic governance in order to understand the broader impact on the region and identifying options for Africa in its participation in the international financial system. (2) Issues analysis to unpack key multilateral (World Trade Organisation), regional and bilateral trade negotiations. It also considers unilateral trade policy issues lying outside of the reciprocal trade negotiations arena as well as the implications of regional economic integration in Southern Africa...
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...definition of globalization. The term of globalization is not neutral, it can mean different things to different people. As stated by The Globalization Website: “Globalization broadly refers to the expansion of global linkages, the organization of social life on a global scale, and the growth of a global consciousness, hence to the consolidation of world society. Such an ecumenical definition captures much of what the term commonly means, but its meaning is disputed. It encompasses several large processes; definitions differ in what they emphasize. Globalization is historically complex; definitions vary in the particular driving force they identify. The meaning of the term is itself a topic in global discussion; it may refer to "real" processes, to ideas that justify them, or to a way of thinking about them. The term is not neutral; definitions express different assessments of global change. Among critics of capitalism and global inequality, globalization now has an especially pejorative ring” (Lechner, 2000-2001). Episode 1 The first hour of episode 1, The Battle of Ideas, covered various aspects of different world economies and why globalization was important to the world. The video took the watcher through a tour of the decades, from 1917 to 1947 and the economic changes that happened during the various wars around the globe. The Commanding Heights video covers the several aspects of Marxism, socialism, communism, capitalism, Bolshevism, fascism, and totalitarianism. At...
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...Problem Solution: Global Communications Only thing constant in this world is “change”! Global communication is going through a similar vicious cycle. Technology is improving, customers are becoming tech savvy, demanding, and competition is growing up. Struggling to compete, Global Communication is working hard to turn around its business, succeed on all odds, and emerge as global leader. Company is going through inevitable challenges to balance customer, employee, and market needs, while trying to achieve its vision. To accomplish Global Communication vision, a research study was undertaken to understand the current challenges at Global Communications and by turning those challenges into opportunity identify and implement an optimal solution that will make it a better company of the future. This paper explains series of steps applied to solve the issues at Global Communications by establishing the criteria by which an optimal solution was evaluated, identified alternative solutions, analyzed each alternative, assessed the risks that surround each alternative, and selected the best solution. In the process of analyzing situation, emphasis was on achievable future goals for Global Communications rather than limiting the process to solving only the immediate problems and requirement of the company. Situation Analysis Telecommunications sector continues to be on its downward trend, not able to meet the targeted financial objectives, stock markets acted negatively. Telecommunication...
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...customs of other countries as well according to Ruth and Michael (2000). Generally, any company or group that derives a quarter of its revenue from operations outside of its home country is considered multinational companies. It can also be referred to as an international corporation. One of the examples of MNC is Starbucks. Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20891 stores in 64 countries (Wikipedia, 2013). According to Leslie and Philip (2012), the global business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities. The global business environment can be divided into the social, political, economic, regulatory, tax, cultural, legal, and technological environments. 2.0 Global Business Environment The scope of this assignment is to analyse the importance of innovations to multinational company (MNC) in the competitive global business environment. Today, the business environment...
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...MEMORANDUM FROM: X SUBJ: “Nucor in 2013” Case Analysis EXECUTIVE SUMMARY The success of Nucor results in correct strategy that managers selected. Nucor Corporation is the largest steel manufacturer in the United States. The steel industry is a fragmented industry. There are many marginal competitors existing in the steel industry. Competitions are high. Nucor is in mature stage of the business life cycle. In this stage, Nucor needs to gain more market share. I strongly recommend Nucor develop product diversity, and spread great company culture to earn sustainable profit growth. ANALYSIS The steel industry in U.S. is not a great industry to begin business for a company due to the economic environment. A bunch of steel companies are facing bankruptcy. However, Nucor breaks the barrier and has strong development in this environment. Industry Analysis. The U.S. steel industry is facing recovery from global recession period, and is in the worst economic period dating back to early 1980s. Also, a number of steel companies have faced bankruptcy, reorganization, or no longer operating. Moreover, because of overcapacity, the steel industry has become a burden that U.S. is willing to get rid of. That is to say, trying to break the siege of the status quo in the steel industry is a challenge to Nucor. Porter’s Five Forces Model. Porter’s five forces model can help identify the current state of Nucor in the steel industry. First of all, new entry to this industry...
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...Bureau of Labor Statistics. International Labor Comparison. Manufacturing in China. Retrieved September 12, 2011 from http://www.bls.gov/fls/china.htm. The first literature review for manufacturing in China will consist of three aspects: a) Data comparability b) comparison of hourly rates of compensation of US and China c) comparison of hourly manufacturing compensation cost of US and selected economies and regions. China manufacturing statistics don’t follow regular international standards and sometimes could be hard to understand the data. China does not systematically collect labor statistics like other countries and all of their information about manufacturing has been collected by a set of hypotheses and estimates by U.S. Bureau of Labor Statistics. Even though China data collection has many gaps, the International Community accepts the accumulated data as valid. Hourly compensation costs of manufacturing employees of China compared to U.S. manufacturing from 2002-2008. The data tables suggest that China manufacturing cost has risen on a constant steady pace. In 2008 China manufacturing cost was $0.57 and in 2008 it $1.36 (Manufacturing in China). Largely there is still a big gap compared to U.S. manufacturing and you can where China has gain many manufacturing jobs due to their relative low cost of manufacturing. Hourly compensation cost of manufacturing employees in selected economies and regions suggest that China has the lowest manufacturing cost out of U.S. , Japan...
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...manufacturers” cartel case Maastricht University | | | | School of Business & Economics | | | | Place & date: | Maastricht, 28.11.2014 | Name, initials: | Romet Puiga, RP | ID number: | I6094472 | Study: | Economics & Business Economics | Course code: | EBC1010 | Group number: | 2 | Tutor name: | Kutay Cingiz | Writing tutor name: | Jim Schumacher | Writing assignment: | Main Paper (Task 10) | | | r.puiga@maastrichtuniversity.nl Table of Contents 1. Topic introduction 2. About cartelization 3. Overview of EU antitrust legislation 4. Analysis of the “bathroom manufacturers” cartel case 5. Conclusion References 1. Introduction According to the European Commission Press Release Database, 2010, Article IP/10/790, seventeen bathroom equipment manufacturers were fined a total amount of €622 million for engaging in cartelization the same year. This case certainly provides an interesting topic for research and analysis as the cartel included seventeen manufacturers in six European countries and had a lifespan of twelve years. These quick facts demonstrate just how serious, extensive and carefully covered the agreement was. Not only did this market manipulation have a significant effect on the economy of these six countries, but also on the economic situation of the European Union as a whole and therefore touched the global economy. As the case is so extensive, it is important to gain an economical insight...
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...INCREASED ECONOMIC GROWTH (Mentionsomething about GEAR and RDP) Introduction Economic growth has been handicapped by high levels of unemployment, poverty and inequality, which continue to plague society today. Since 1994 South Africa has achieved an average growth rate of 3 %, a level that is mediocre by international standards and is still below what is deemed necessary for supporting a lasting transition to democracy and correcting the historical injustices of apartheid. Numerous policies have been implemented to correct these faults and increase growth but have seen little success. A combination of poor economic reasoning and implementation may account for this. But a recurring problem with historical and current policies is that they are contradictory and at times conflicting. The 2008 OECD report highlighted this in AsgiSA, which focuses on employee training but offers little to improve basic education. Therefore, correcting these faults and achieving increased growth calls for complementary policies to create a virtuous cycle for success. The following essay looks at the labour market, industry, trade and public-private partnerships as areas of focus for constructing a democratic developmental state. Policies suited for each of these focus areas are discussed whilst highlighting how they complement each other to achieve a virtuous cycle. The labour market A lack of skills and employment creation is one of South Africa’s fundamental economic weaknesses...
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