...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 “...investment made to acquire a lasting interest in an enterprise operating in an economic environment other than that of the investor, the investors purpose being to have an effective voice in the management of the enterprise.”(United Nations, 1992) Policies to promote...
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...12/12/2013 International Business Environment Assen Spassov | Automotive Industry in Germany | Automotive Industry in Germany | Germany’s balance of payments in 2012 Amid a challenging external environment, Germany’s current account surplus grew distinctly in 2012 to 7% of gross domestic product (GDP), which was only slightly below its previous record high in 2007. On the export side, this rise was attributable to the German economy’s ability to hold its own in markets outside Europe despite the significant slowdown in the pace of growth in 2012. This is partially due to the attractive product range offered by German exporters, although the euro’s lower external value also played a role during the period under review. Germany’s strong export performance vis-à-vis non-euro-area countries greatly outweighed the weak demand that its enterprises faced in the euro area. The import side, too, contributed considerably to widening the current account surplus. In particular, the uncertainties emanating from the crisis in the euro area prompted German firms to hold back on their domestic investment, which adversely affected imports. While noticeable progress has been made in terms of correcting the current account imbalances within Europe, the 2012 surplus underlines the fact that, owing to the greater uncertainty it has engendered, the crisis has also hampered efforts to reduce the overall German current account surplus. The increased desire...
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...the best players in the luxury automobile sector, growing despite the European markets’ crisis. The group is well positioned in worldwide market with 24 manufacturing facilities in 13 different countries, and it can count on a distribution network in more than 140 countries. Long term thinking, ecological and social responsibility in the value chain, strong investment in research and development, and an effective speed and agility in sustaining the changes in the market, are some on the key reasons for BMW success. The company has always promoted high-performing product trough a high-profile brand since the early stage; this perception is still present and evident in the company’s culture and has always been the guideline to narrow the strategic path of the group. Competitor analysis The German automaker experienced a steady increase in sales in the last few years, as it has always been able to respond to the attacks of its competitors with an increasing level of technology and innovation that characterizes its products. The design is also a fundamental and integrant part of the competitive advantage of BMW. As far as competitors concern, the BMW has always faced the competition of the compatriots manufacturers such as: Mercedes, Audi, and Porsche which benefit from a similar brand-reputation and price range, but also from overseas brands brand such as Lexus and Toyota. The automotive sector is a fast moving sector, and the competitive advantage is not...
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...| The Automotive Industry | Ford AutomotiveOctober 3, 2012 | | | | | INTRO: BARRIERS TO ENTRY: Since the company we chose to analyze is Ford, the industry is limited to the North American automobile industry. Barriers to entry are defined as characteristics of the industry itself that prevent rivals from getting in as well as set standards for the competitors in that industry. The automotive industry has grown exponentially and it is currently one of the most competitive industries. One of the major players in barriers to entry is brand strength. Over the years brands have been developing and customer loyalty to one particular brand is very strong. This makes it difficult for a company to enter the industry and expect to be a significant competitor. Customers are loyal to one particular brand and that diminishes the customer base for new entrants. Unless the company already has the internal structure of a big automotive manufacturing company then it is very difficult for them to enter this particular industry. Not only are start-up costs very high, but there are significant costs in the design and manufacturing of cars. Product differentiation is also another major factor, since many companies have had to rely on their unique products to attract more customers as well as expand their customer base. Other factors to barriers to entry include government regulations. In the United States, the Environmental Protection Agency has set standards of emissions...
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...The problem to be investigated in this study is the economic importance of the automotive industry. It will explore the social impact it has brought worldwide and how it is affecting the world of commerce. It will also explain the foreign trade and the different automotive industries of each country. The following sub-questions will be evaluated: * What pollution-control strategies each automotive industry are practicing? * What are the latest in automobile safety measures? * How does motor vehicle production affect the economy? * What are the standards of manufacturing efficiency in an automobile? INTRODUCTION The automobile industry is concerned with profits and competition; with consumer demands for styling, safety, and efficiency; and with labor relations and manufacturing efficiency (“,” 2008). About 250 million vehicles are in the United States. Around the world, there were about 806 million cars and light trucks on the road in 2007; they burn over 260 billion gallons of gasoline and diesel fuel yearly. The numbers are increasing rapidly, especially in China and India (“” 2008). In 2008, with rapidly rising oil prices, industries such as the automotive industry, are experiencing a combination of pricing pressures from raw material costs and changes in consumer buying habits. The industry is also facing increasing external competition from the public transport sector, as consumers re-evaluate their private vehicle usage...
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...International Economics The German Economy 10th of December 2015 Groupmembers: Con Brunissandre Baitzouroff Pawel Fedko Ha Pham Thai 1 Morenikeji Aina-Badejo Atiwat Hongupathamchai Table of Contents 1. Introduction………………………………………………………………………………..…….. 4 2. The Structure of German Economy…………………………………………………….. 5 2.1 Import, Export and Trading Partners…………………………………………………………….. 5 2.2 Germany’s Main Economic Sector – The Automotive Industry…………………….. 8 3. The Global Financial Crisis and its effects on Germany……………………….. 9 3.1 What are the origins of the 2008 financial crisis?............................................. 9 3.2 The financial crisis plunged Germany in an economic crisis………………………….11 3.3 Government’s Action to Combat Crisis ………………………………………………………. 16 4. Future Challenges and Outlook for Germany…………………………………...19 5. Conclusion……………………………………………………………………………………….21 6. References……………………………………………………………………………………….22 2 Executive Summary This report provides a concise summary of Germany’s main economic features. It starts off by describing the key sectors and trade patterns that make up German economy. From there, it will further examine how one of the strongest economy in the world was affected by the global financial crisis in 2009, and critically analyze the extensive use of policies used by the German government to counter the crisis. The report will conclude by looking at Germany’s long term key challenges and the prospect...
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...TRIUM GLobal EMBA - Module 1 – Group Essay What are the Main Risks Posed by Globalization to the Automotive Industry? How Can These Risks be Managed and Mitigated? LSE ID numbers : 200933569, (add everyone else’s ID number per essay instructions) Word Count: The auto industry has significantly benefitedsignificant benefits from globalization. The industry has evolved from being a local-market-focused business comprised of hundreds of small manufacturers to a global market-focused business dominated by Japanese, German, South Korean, and American producers generating over 1.7 trillion dollars US in sales. This essay discusses what we believe are the main risks posed by globalization to the automobile industry. We define globalization for the purpose of this essay to beas the integration of markets across political boundaries that allows for the flow of capital, people, goods and services within. We define the automobile industry as the set of companies that produce automobiles and light duty trucks (“The Auto Industry”).. Since WW II, globalization has enabled greater market access and corporate consolidation that has enabled large automobile manufacturers to diversify their offer product and transcend national boundaries. Volkswagen, for example, originally a German company founded by Nazi government in 1937 to offer German citizens a German produced car, now includes makes from seven different countries and has hails China as one of its largest markets...
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...WORKING PAPER Influence of Government Policies on Industry Development: The Case of India’s Automotive Industry Mahipat Ranawat Rajnish Tiwari March 2009 Working Paper No. 57 Hamburg University of Technology Schwarzenbergstr. 95, D-21073 Hamburg, Germany Tel.: +49 (0)40 42878-3777; Fax: +49 (0)40 42878-2867 www.tu-harburg.de/tim www.global-innovation.net Influence of Government Policies on Industry Development: The Case of India’s Automotive Industry By Mahipat Ranawat and Rajnish Tiwari Hamburg University of Technology Institute of Technology and Innovation Management Schwarzenbergstr. 95, 21073 Hamburg (Germany) Tel. +49 – (0)40 – 428 78 – 3776, Fax: +49 – (0)40 – 428 78 – 2867 mahipat.ranawat@tuhh.de; rajnish.tiwari@tuhh.de www.tuhh.de/tim; www.global-innovation.net Abstract The automotive industry in India has come a long way from its nascent state at the time of India’s independence in 1947 to its present day dynamic form. As compared to the production of mere 4,000 vehicles in 1950, the production of the industry crossed the historic landmark of 10 million vehicles in 2006. Today, the industry produces a wide range of automobiles and auto-components catering to both the domestic as well as foreign markets. The development of the industry has been shaped by the demand on the one hand and the government interventions on the other; the influence of the latter being considerable. The evolution of India’s automotive industry is identified to have occurred in four phases. In...
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... Honda Motor Company was established in 1948 in Japan, on the backdrop of 1 million (Yen) and 34 employees. Over the years the company has grown to become the world's largest engine, motorcycle and automobile manufacturers, with more than 178000 employees and stock holder equity of 4,544265 million Yen (Annual Report, 2008). Honda is the 5th largest automobile manufacturer in the world. Moreover, it recently surpassed Chrysler as the 4th largest automaker in the US. It is the 2nd largest Japanese automaker, behind Toyota and ahead of Nissan (Just Auto, 2008). In the early years, the Company was focused in manufacturing locally and serving its domestic market, after which it began exporting its products internationally. In 1982, it became the first Japanese automaker to setup a plant outside its domestic boundaries (Ohio, USA). Now it has established plants all over the world, covering bases such as North America, South America, Europe and Asia. In terms of Japanese automakers, it has the largest share of plants as a ratio of total business outside its domestic boundaries (Dicken, 2007). North America, with Unit Sales of 1850 (thousands) is the largest Market of the company, noted for the year ended 31 March 2008. In 1963, the company set up its first international motorcycles production plant, in Belgium. Honda currently produces motorcycles at 32 plants in 22 countries around the world. Honda established local motorcycle R&D operations in the U.S, Germany, Italy, Thailand...
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...and challenges facing FIAT to enter Ukraine automobile market. We first identify the strength and weakness of global strategy of Fiat with the SWOT analysis (Appendix 1) to find out entering Ukraine could contribute to Fiat’s global strategy, and then we evaluate the investment potential in Ukraine with PEST analysis (Appendix 2) to find out that Ukraine government is encouraging foreign investment by incentive policy and regulation, moreover, the automobile market in Ukraine is large. However, under the condition of financial crisis, the trade protectionism is on the rise in Ukraine, making the existing competition fiercer than before. To solve the problem, we suggest Fiat to export light vehicle and manufacture installation kit by joint venture to minimize risk and mitigate challenges. Besides, the board should pay attention to balancing the relationship among local government, local employees and management layer. 2 Opportunities and Challenges Facing FIAT to Enter Ukraine Content Ⅰ. Introduction ..............................................................................................................5 Ⅱ. Findings and discussion ..........................................................................................5 1. Company profile ......................................................................................................5 2. Fiat’s global...
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...WORLD AUTOMOTIVE MARKET The global Automotive industry generated revenues of $1,469.3 billion in 2009 (Datamonitor, 2011), corresponding to the manufacturing of 57.6 million light vehicles1 (PwC, 2011). In 2011, this market rose sharply to 74.6 million vehicles and is expected to grow to 106 million vehicles in 2018 at a 5.2% CAGR in the period (PwC, 2012). The major contribution to this growth will come from emerging markets, with 84%, with the BRIC2 countries alone representing 64%. The Automotive industry is still a very concentrated market, where the top 12 manufacturers represent 83% of the units assembled in 2011 (PwC, 2012). Despite this market structure, there have been a few new entrants, such as Tesla Motors and BYD, both electric car manufacturers. In Table 1, an analysis of the Automotive market environment is presented. FACTORS Political COMMENT IMPACT ON DEMAND/SUPPLY Governments and municipalities interest in green vehicles Positive for green product lines Disposable income Growing wages in developing countries, growing middle class with purchasing power Positive Low interest rates in developed economies Positive Currency fluctuation Loss of competitiveness due to strong currencies (Dawson & White, 2012) Negative for Japanese /Brazilian Lifestyle changes Approach to Western lifestyle in developing countries, demand for low-end cars (Ayres, 2012) Positive Green issues Global awareness regarding...
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...Portfolio management Financial Investment Danang university of economics 37k16-clc D.I.D Group Contents I. Introduction 2 II. Macro environment 3 II.1 The world macroeconomic: 3 II.2 Vietnam macroeconomic 6 III. Industrial sectors analysis 10 III.1 Tire Industry 10 III.2 Steel industry 12 IV. Company analysis 14 IV.1 Danang rubber JSC (DRC) 14 IV.2 Hoa Phat group (HPG) 19 V. Calculation 24 V.1. Rates of return measurement 24 V.2. Risk measurement 24 VI. Efficient frontier 25 VII. Application 27 VIII. Conclusion 32 Group members 33 I. Introduction Since Vietnam carried out economic innovation in 1986, after 26 years, Vietnam economy had a lot of significant changes. Our country had overcome the poor period and start to join the global development in all aspects. Along with economic development, there are more and more investment opportunities available for potential investors. Vietnam market offers so many channel of investment such as gold market, real estate, bank account, especially stock market.11/07/1998 Vietnam stock market appeared. This establishment created a remarkable point for internal investors. In the global economic situation of recession, Vietnam as well as most of countries in the world have to face many difficulties in improving economic growth. The negative points in economic indicators and economic events as well as the rising of political issues inside and among countries, regions and parties are...
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...Motor case Economic characteristics Describe the economic characteristics of the global motor vehicle industry. The past five years were tumultuous for the Global Car and Automobile Manufacturing industry. The price for fuel and other growing concerns have shifted consumer’s preferences away from big pickup truck to more fuel efficient cars. Some automakers embraced the change by expanding their small-car portfolios and diversifying into the production of hybrid electric motor vehicles. Other automakers were more reluctant to shift their focus from big to small cars, expecting the price of fuel to contract eventually, bringing consumers back to the big-car fold. When fuel prices did fall during the second half of 2008, it was due to the US financial crisis ripping through the global economy. The meltdown began when a debt binge overwhelmed many US consumers and businesses. This had a domino effect throughout the developed and emerging worlds, with many Western nations following the United States into recession. The Global Car and Automobile Manufacturing industry is deemed to have a low level of market share concentration. There are several major automotive companies across the globe, each with a significant share of the market, but concentration has been declining over the past five years as firms in emerging economies ramp up production a good example would be Tata in India. Key Success Factors What are the key success factors for a successful firm in the global motor vehicle...
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...example, while attempts could be made to calculate the value of currently unexploited mining opportunities in unclaimed territory in Antarctica, the same opportunities on Mars would not be considered a part of the world economy – even if currently exploited in some way – and could be considered of latent value only in the same way as uncreated intellectual property, such as a previously unconceived invention. It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind. 2.0 DEVELOPED COUNTRIES A developed country is a superior state that has a highly...
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...General Motors Co Strategic and Financial Analysis ADVANCED CORPORATE FINANCE April 22, 2012 Authored by: Ana Romero, Roshan Picardo, Carlos Castro, Shikhar Agarwal 0 General Motors Co Strategic and Financial Analysis Executive Summary This report provides an evaluation of strategic and financial evolution of General Motors Company (GM) in the last ten years. Events like the global economic recession lead to a deep restructuring of the firm, filling for bankruptcy and a government bailout. The report provides an analysis of GM’s business model, products, the markets it is competing in, the global automotive and manufacturing industry and it also assess its attractiveness for incumbents and new entrants is also With a brief history of GM we evaluate its reaction to the global recession. We compare their business model before, during and after the recession, comprising the strategic and financial implications of their restructuring plan. We provide results from this restructuring, including improvements in GM’s financial ratios like ROA (from 0.05 in 2010 to 0.07 in 2011) and ROE (from 0.23 in 2010 to 0.25 in 2011). While the recession significantly affected GM, it also affected the rest of the automobile industry, including their American competitor Ford Motors. We compare the main differences between these two important companies and analyze the way they reacted to the recession. We also observe the approach that Ford has taken to recovery, in terms of governance...
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