...Causes of Globalization While it is truethat state ventures (or adventures) have at times driven the process, e.g. the colonial conquests, the globalization process has largely reflected market forces, specifically, the exploitation by large and smaller businesses in the world of benefits from trade in commodities, goods, services, capital, and even labor, and of opportunities for new investments and markets. The process of global economic integration was perpetrated at the behest of World War II, when the leaders of Britain and the US helped establishing the World Bank and International Monetary Fund in 1944 to promote a liberal, capitalist world to counter the shadows of Socialism and Marxism. The loans are granted by IMF and WB on the condition that the borrowing country will reduce the state's role in the economy, lower barriers to imports, remove restrictions on foreign investment, eliminate subsidies for local industries, reduce spending for social welfare, cut wages, devalue the currency, and emphasize production for export rather than for local consumption. Such conditions imposed laid the basic foundation to open economies to steer the mechanism of economic integration giving birth to the World Trade Organization. By mid 1950s Pakistan had become a favorite candidate for receiving the benefits pledged by President Truman, having joined the network of international defense treaties with the United States. It marked the beginning of...
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...Problem 1: Marketing selection problem Hua Ann is running for reelection as mayor of a small town in Alabama. Khurai Jum, Ann’s campaign manager during this election, is planning the marketing campaign, and there is some stiff competition. Jum has selected four ways to advertise: telvevision ads, radio ads, billboards, and newspaper ads. The costs of these, the audience reached by each type of ad, and the maximum number of each is shown in the following table TYPE OF AD | COST PER AD | AUDIENCE REACHED/AD | MAXIMUM NUMBER | TV | $800 | 30,000 | 10 | Radio | $400 | 22,000 | 10 | Billboards | $500 | 24,000 | 10 | Newspaper | $100 | 8,000 | 10 | In addition, Jum has decided that there should be at least six ads on TV or radio or some combination of those two. The amount spent on billboards and newspaper together must not exceed the amount spent on TV ads. While fundraising is still continuing, the monthly budget for advertising has been set at $15,000. How many ads of each type should be placed to maximize the total number of people reached? Requirement: 1. Formulate the problem. 2. Use Excel Solver to find the answer. Include in your answer the excel file. Problem 2: Transportation/Shipping Problem Transportation or shipping problem involves determining the amount of goods or items to be transported from a number of origins to a number of destinations. The Top Speed Bicycle Co. manufactures and markets a line of 10-speed bicycles nationwide. The firm has...
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...Mauritius, an Indian Ocean island of 1.3 million people, is one of Africa’s most prosperous and stable economies. It has a diverse population: descendants of workers from India, who were brought to work in the sugar-cane fields, account for about 70% of the population; the remainder includes Africans, Creoles, Chinese, and Europeans. At independence in 1968, the country was poor, with a per capita income of around US$260. However, the government has successfully diversified the economy into textiles, tourism, and financial services. In recent years, new economic poles like information and communication technology (ICT), knowledge, healthcare, business-process outsourcing, seafood and high-tech manufacturing are emerging. The national objective is to graduate Mauritius to the league of high income nations by the 2020s. In 2011 GDP at market price is Rs324.8bn and GDP per capita income (PPP) of $14,000 is one of the highest in Africa. The country has benefited from its political stability (it is a multi-party parliamentary democracy), and ethnic tolerance. Economic Policy The Mauritian economy has been affected by changes to the world trade regime. The World Bank says that, according to one estimate, the ending of the Multi Fibre Arrangement (MFA), which governed world trade in textiles and garments, in January 2005, and the phasing out of sugar preferences in 2008 could cost Mauritius as much as 8–9% of GDP, 20% of exports, and 40% of government revenue. Increasing living...
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...ResearchBeam has announced a new Report Package "Food Containers Markets in China: Industry Growth, Economic Trends, Demand, Capacity, Analysis Report" Report Overview China's demand for Food Containers has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption and capital investment for over two decades. This new study examines China's economic trends, investment environment, industry development, supply and demand, industry capacity, industry structure, marketing channels and major industry participants. Historical data (2004, 2009 and 2014) and long-term forecasts through 2019 and 2024 are presented. Major producers in China are profiled. Browse Complete Report at: http://www.researchbeam.com/food-containers-in-china-market The primary and secondary research is done in China in order to access up-to-date government regulations, market information and industry data. Data were collected from the Chinese government publications, Chinese language newspapers and magazines, industry associations, local governments’ industry bureaus, industry publications, and our in-house databases. Interviews are conducted with Chinese industry experts, university professors, and producers in China. Economic models and quantitative methods are applied in this report...
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...stations etc. In the World Economic Forum’s Global Competitiveness Report for 2011-2012, India was ranked 89th out of 142 countries for its infrastructure. The report also criticized the transport, ICT and energy infrastructure labelling it as “largely insufficient and ill adapted to the needs of business”. Market Size: The Indian power sector has an investment potential of $US 250billion in the next 4-5 years, providing immense opportunities in power generation, distribution, transmission and equipment. The Indian railways have had an increase of 12.57% in revenues from last year. FDI received in construction development sector from April 2000 to January 2015 stood at US$ 24,028.19 million. The number of export and import containers moving through major ports in India expanded 7.34% year over year from April to October 2014. Government Estimation and Plans: Sustained increase in infrastructure is expected to be one of the crucial factors for sustaining strong growth in the economy. Infrastructure investment is expected to surge from 8.9% of GDP in FY15 to 12.1% of GDP in FY20. Construction of roads and bridges will account for the largest share in the total infrastructure investments during the next five years. The government has estimated that $1 trillion of investments will be required for developing India’s infrastructure in the 12th plan period. The priorities include three airports, two ports, an elevated rail corridor in Mumbai and almost 6000 miles...
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...recognised as a brand by most consumers worldwide. Huawei serve more than one third of the world’s population. Huawei’s products has deployed in over 170 countries. This Chinese company use low wages cost and produces cheaper smartphones with high quality. The low wages prevalent in China that will able to offer the Chinese-made products ar very competitive prices. Their products are affordable for all class of people. Huawei’s smartphones are also vary in screen size from 1.4 inches to 5.5 inches and also came in different colour that is really rear to see in other smartphones. Huawei have set up laboratories for research, innovation, and as a technology developing platforms. Huawei makes continuoes investments in key technologies, architectures and standards in ICT field. This to ensure a better experience for huawei’s product users. This company have set up 16 research and development (R&D) centers that include Germany, Sweden, US, France, Italy, Russia, India and China. Huawei has also set up 28 joint innovation centers with leading carriers to translate leading technologies into competitive edge and business success for customer. Huawei is a telecommunications company that investing in research and development in Europe to obtain high-technology and human resources to help them to move the value chain and internasionalize their operations. Huawei establish R&D laboratories and buy European company so that the company can stay abreast of the latest trends in...
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...the south. Hanoi is the capital city, and Ho Chi Minh City is the largest commercial center. Vietnamese is the national language and English is the most popular foreign language spoken other than French, Mandarin and Japanese. Vietnam is a one party communist party and the government has recognized the importance of having an effective infrastructure for economic development. The main transport and communication networks are in Vietnam are road, railways, shipping lines and airlines. Vietnam Today Today Vietnam’s economic growth as outpaced every other Asian economy outside of China. 2013 GDP growth rate was 5.42% vs. 2012 at 5.25%. The Vietnamese Government has a projected GDP growth rate of 5.8% for 2014. Foreign Direct Investment continues to positively impact the economic growth. This past year FDI in Vietnam was $11.5 billion; a 10% increase over 2012. Today there are over 500 US companies that have a presence in Vietnam. The rising costs and wages in China have helped Vietnam become a more attractive alternative for manufacturing. Recently, Samsung Electronics broke ground on a new $2 billion hand held device facility, which by 2015 will build 120 million phones a year. Vietnam’s trade relationships today are as follows: 1. WTO 2. ASEAN a. AFTA- ASEAN Free Trade Area b. AJCEP- Japan c. AANZFTA- Australia and New Zealand d. ACFTA- China e. AIFTA-...
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...EXERCISE #2 Doing Business with Mongolia Pulvera, Michael V. ECONOMIC ENVIRONMENT Over the past 20 years, Mongolia has transformed into a vibrant multiparty democracy with a booming economy. Mongolia is at the threshold of a major transformation driven by the exploitation of its vast mineral resources and the share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. The Mongolian economy is facing challenges from persistent economic imbalances. Economic growth slowed to 3.0 percent in the first half of 2015 amid declining exports from a continued weakening of the commodity market and slower growth in the key export market of China. Mongolia’s annual GDP growth is expected to slow to 2.3 percent for all of 2015. Poverty has been on a downward trend over the past decade. Most recently, Mongolia’s poverty rate declined from 27.4 percent in 2012 to 21.6 percent in 2014, although many remain near the poverty line. Substantial progress has also been made in regard to several Millennium Development Goals (MDGs) at the national level, though significant regional disparities prevail. To ensure sustainable and inclusive growth, Mongolia will need to strengthen institutional capacity to manage public revenues efficiently and limit the effects of Dutch Disease; allocate its resources effectively among spending, investing, and saving; reduce poverty; and offer equal opportunities to all its citizens in urban and rural areas. It needs to do this...
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...Priority Market The Association of Southeast Asian Nations (ASEAN) 1 —Brunei Darussalam, Burma, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand, and Vietnam—makes up one of the world’s fastest growing economic regions. In December 2008, ASEAN’s Charter came into force, granting ASEAN status as an international legal entity. With an estimated combined gross domestic product (GDP) of $2.1 trillion and a combined population of about 609 million people, ASEAN is a regional economic force that is quickly becoming the free trade hub of Asia. It has concluded free trade agreements with China, India, Japan, Korea, and Australia/New Zealand, has completed a Trade and Investment Framework Arrangement with the United States, and is in the process of pursuing several other trade and investment agreements. The ASEANChina FTA, which came into force in 2010, represents one of the largest free-trade zones in the world, with an estimated 2.0 billion consumers. ASEAN is also pursuing further internal integration with the establishment an Economic Community (target date 2015), which would harmonize trade laws and permit the free movement of goods, services, labour, and capital to create a single market and production base. Today, ASEAN’s growth is being driven by a growing middle class, economic integration of the 10 economies and its proximity to the massive Chinese and Indian markets. The region is an increasingly important global value chain player and a preferred production...
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...Executive summary In this paper, an attempt is made to delineate the deficiencies of the existing financial system in Bangladesh to cater to financing needs of SMEs or new potential entrepreneurs and a proposal has been given to develop the venture capital industry to meet financing and non-financing needs of SMEs. SMEs play a vital role within Bangladesh’s economy in terms of creation of industrial outputs and generation of employment. Even though they play a significant role they face problems in securing investment or manage finance to develop their ideas or to expand their existing business. It is not possible for Bangladesh to accelerate economic growth without catering to the financing needs of SMEs, Thus, the paper proposes the development of the venture capital industry as an additional financial intermediary to Cater to financing and non-financing needs of SMEs. The paper discusses available sources of finance for SMEs and the Constraints of these sources. There are basically three sources from which SMEs may receive finance. These are banks, non-government organizations (NGOs) and the capital market. Then, we discuss the advantages that venture capitalists have over banks in catering to the funding needs of SMEs. It is argued that venture capitalists perform the role of ‘active investors’ by way of offering both financial and non-financial commitment to the investee company, which is essential in a market characterized by a high level of uncertainties. Also, it is argued...
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...MP A R Munich Personal RePEc Archive Attracting Microfinance Investment Funds: Promoting Microfinance Growth through Increased Investments in Kenya Jeffrey Ben Matu Duke University, International Development Program 18. April 2008 Online at http://mpra.ub.uni-muenchen.de/12084/ MPRA Paper No. 12084, posted 12. December 2008 17:42 UTC Attracting Microfinance Investment Funds: Promoting Microfinance Growth Through Increased Investments in Kenya Master’s Project Master of Arts in International Development Policy Terry Sanford Institute of Public Policy Duke University Jeffrey Ben Matu Principal Policy Advisor Dr. Graham Glenday April 18, 2008 Acknowledgements This paper could not have been written without Dr. Graham Glenday who not only served as my policy advisor, but also encouraged and challenged me to do my best. I would also like to thank my other committee members; Dr. Cory Krupp and Dr. Rosemary Fernholz for patiently guiding me through the writing process and for their suggestions and continued support. To my family and friends, I thank you for your encouragement with reading and commenting on the paper. And to my wife Sharon, for believing in me and encouraging me to never accept less than my best efforts. Finally I would like to thank Jennefer Sebstad, Leila Webster, Stefan Staschen, and Jerry Grossman for reading and making comments on my drafts. Thank you all. 2 Table of Contents List of Acronyms…………………………….…………………………………………….……………………...
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...FDI on China and the World Economy Yuqing XING This paper provides a comprehensive review of foreign direct investment in China over the last three decades. It reviews the growth, sources and distribution of FDI in China and analyses factors determining FDI inflows. It summarises the contributions of FDI to the Chinese economy in terms of economic growth, total factor productivity, exports and technology progress. Finally, the paper discusses potential impacts of FDI in China on the rest of the world in terms of FDI-competing countries and FDI source countries. (FDI) among all developing countries, China received a cumulative total of USD854 billion in FDI from 1979 to 2008 and benefitted tremendously from both tangible and intangible assets associated with FDI inflows. In fact, in the modern history of economic development, no other country has ever benefitted, and continues to benefit, from FDI as much as China. There is a consensus among academic scholars specialising in the Chinese economy that, over the last three decades, FDI has been a critical engine driving the Chinese economy. In literature pertaining to the growth of the post-reform Chinese economy, and policy discussions about China’s successful transition towards a market-oriented economy, FDI has always been one of the focal points. ABOUT THE AUTHORS The largest recipient of foreign direct investment Yuqing Xing (yuqing_xing@grips.ac.jp) is Professor of Economics at the...
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...World Dialogue on Regulation for Network Economies Regulation and Investment: Case study of Bangladesh Harsha de Silva[1] and Abu Saeed Khan[2] August 2004 Abstract The paper considers the available evidence in determining a relationship, if any, in the Telecom Regulatory Environment [TRE] of Bangladesh and investments in to its telecommunications industry over the last decade. TRE is segmented in to market entry, access to scarce resources, interconnection, tariff regulation and regulation of anti-competitive practices while investments are all non-divestiture foreign and domestic private and public investment. The TRE in Bangladesh is found to be wanting in all defined aspects. Interconnection is the worst of the five components, where a mobile only parallel network is being created due to regulatory ineffectiveness where almost ninety percent of mobile users do not have access to a fixed phone. Investments in to the fixed sector in Bangladesh dominated by the state owned virtual monopoly have been sorely inadequate and continue to be dictated by the funds availability [or lack thereof] of the Government. The mobile sector on the other hand has seen some amount of investments flowing in led by the widely acclaimed GrameenPhone. However, once standardized to compare across the region, it is found, even though using imperfect data to compare, that the reason for this flow could...
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...IMPACTS OF GLOBALIZATION ON INDIAN ECONOMY INTRODUCTION TO GLOBALIZATION: Globalization has many meanings depending on the context and on the person who is talking about. It refers to the increasing global relationships of culture, people and economic activity. Guy Brainbant: says that the process of globalisation not only includes opening up of world trade, development of advanced means of communication, internationalisation of financial markets, growing importance of MNC’s, population migrations and more generally increased mobility of persons, goods, capital, data and ideas but also infections, diseases and pollution. The term globalization refers to the integration of economies of the world through uninhibited trade and financial flows, as also through mutual exchange of technology and knowledge. Ideally, it also contains free inter-country movement of labour. The United Nations Economic and Social Commission for Western Asia defines globalization as: "a widely-used term that can be defined in a number of different ways. When used in an economic context, it refers to the reduction and removal of barriers between national borders in order to facilitate the flow of goods, capital, services and labour... although considerable barriers remain to the flow of labour... Globalization is not a new phenomenon. It began towards the end of the nineteenth century, but it slowed down during the period from the start of the first World War until the third quarter of the twentieth...
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...What was the basis and mechanism of the Japanese economic miracle between 1945 and 1980? Introduction The aftermath of World War 2 including war time expenses left the Japanese economy on the borderline of ruin. Inflation, unemployment and all area shortages bring risk of a communist state being created through a soviet influence that was expanding across the pacific regions. If no governmental changes or outside influence occurred it could have ended up as a Soviet state. This led to American intervention to stop the Soviet Union gaining more power and to rebuild Japan. America started off the rehabilitation by occupying the country giving aid and assistance which was followed up by interventionism by the Japanese government leading to huge privatisation and capital projects funded by Japanese businesses encouraged to invest; kick-starting an economic rejuvenation. How each stage of the recovery is implemented will be discussed in further detail in each section including American Intervention, Japanese government intervention, MITI (Ministry of International Trade and Industry)/Keiretsu and the overview of the ‘Golden Sixties’. American Intervention The American government under order of SCAP (Supreme Commander of the Allied Powers) intervened by occupying Japan to prevent Soviet communism from commencing and to help rebuild the Japanese economy with a view to democratize and demilitarise the country. Special procurements were paid to the Japanese government due to...
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