...American Airlines Foreign Direct Investment Plan University of Phoenix June 8, 2009 American Airlines Foreign Direct Investment Plan American Airlines has decided to expand operations into the greater China market. A thorough analysis of the marketplace has taken place and the final remaining detail that needs to be defined is the airlines strategy for the foreign direct investment (FDI) that will be required to service successfully the Chinese travel market. While much of the expansion into the China market will leverage local resources, direct investment in the Chinese infrastructure will be needed. As such, the FDI analysis will focus on the expansion of airport facilities, airport and city ticket offices and a reservation center. The structure of the FDI analysis will include an executive summary of American Airlines overall China strategy, modes of entry and associated risks, funding of the initiative and contingency plan should the airline need to change strategies mid implementation. Executive Summary American Airlines and American Eagle (firms owned by AMR) serve some 250 destinations in approximately 40 countries including destinations in Europe, the Americas, and Asia-Pacific. The combined aircraft of both carriers comprise of 900 airplanes with 625 of those being jets. On any given day the airline transports 270,000 passengers on approximately 3,300 flights to over 170 destinations worldwide. Additionally, American Airlines is part...
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...Position Paper Board of Investment Prime Minister’s Office Date : Thursday, 05 July, 2012 Venue : BOI Board Room Launching ceremony of: “World Investment Report-2012” "An Investment Policy Framework for Sustainable Development, including national and international dimensions “published by UNCTAD Brief on the achievement of 2011 Actual inflow of Foreign Direct Investment (FDI) in 2011 reached the highest ever level in the history of Bangladesh at US$1136.38 million, according to a report of UNCTAD. The amount is 24.42% higher than US$913.32 million recorded in 2010. The FDI inflow is comprised fresh equity amounting to US$431.85 million, while US$489.63 million came from reinvested earnings and the rest of US$214.90 million is from intra company loans. It appears from the above that reinvested earning and intra-company loans has increased to a large extent which signifies the confidence of the investors in the investment climate of Bangladesh despite apprehension on the performance of the economy by various quarters. The sectoral projection is as follows: The major sectors that attracted FDI include textile US$272.042 million, banking US$249.37 million, power gas and petroleum at US$238.21 million, telecommunications at US$180.99 million and Cement US$51.65 million. The investments that has come the countries are as follows: The countries that have invested substantially in Bangladesh in 2011 are US$152.30 million Egypt, US$117.74 million...
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...EAS6211: Investing in East Asia (as 28 September 2015) Dr Harald CONRAD (Japan, Module Organizer) Dr ZHANG Zhong (China) MODULE OBJECTIVES: This module will introduce students to key theoretical issues relating to globalization, foreign direct investment and the activities of multinational corporations. The module will then consider in detail foreign direct investment, business culture, employment and human resource management, seen from the perspective of multinationals investing in Japan and China. The module will provide students with a well-rounded knowledge of the issues facing firms seeking to establish global networks and the managers within those firms charged with the task of running the overseas operations and managing workers in a different cultural context. The module will encourage students to think more deeply about the process of overseas investment and the challenges of managing and working in the global economy, thus equipping them with some of the key skills and knowledge required of managers in global firms. Dr Harald Conrad – Contact Details: 6/8 Shearwood Road, Room B-07 Ext: 28431 Email: h.conrad@sheffield.ac.uk Dr Zhang Zhong – Contact Details: 6/8 Shearwood Road, Room A-02 Ext: 28339 Email: zhong.zhang@sheffield.ac.uk The lecturers’ office hours will be posted on their office doors during Week 1 of Semester 1. MINIMUM REQUIREMENTS: Regular attendance is required at all lectures and seminars; students should read the...
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...Міністерство освіти і науки України Державний вищий навчальний заклад «Київський національний економічний університет імені Вадима Гетьмана» Індивідуальна робота на тему: «Ведення бізнесу в Гані» Студент 4 курсу, Адзейві Ірен Дзідеді факультету МЕіМ Київ – 2016 1. Investment attractiveness of Ghana Ghana’s conduciveness and attractiveness to foreign direct investment has slumped in 2015 after a good performance last year, according to the latest Global Opportunity Index Rankings. Ghana scored 5.16 over 10 and is ranked 77th in 2015 out of 136 countries, compared with a composite score of 7.10 and a rank of 18 last year. Ghana’s latest score and rank, mark a sharp drop from a good performance last year and a return to the average and poor performances in the rankings, that characterized the period from 2010 to 2013. The latest ranking, released in June 2015, ranks 136 countries by aggregating the performance of each on 61 variables grouped into four broad categories: economic fundamentals, ease of doing business, quality of regulation, and rule of law. The category economic fundamentals assesses a country’s macroeconomic performance and the macroeconomic environment’s openness and conduciveness to trade and foreign direct investment. Ease of doing business measures the implicit and explicit costs of doing business such as the cost of starting, tax, crime, terrorism and so on. Quality of regulation assesses...
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...Introduction Currently, Libya is making headlines in news globally on matters concerning political leadership and its roles on the growth of the economy. However, it has been ranged as one of the important Arab countries in domination of the world market and Muslim culture which cannot be understated. The story of the Libya as well as that of its people is quite remarkable. In the globalization era, the present questions regard the ability to economically capitalize on growth treads in Libya. The security and stabilization issues have for a long time plugged in this nation, and with the current tread, there is little possibility of these issues fading away any time soon. Considering the current political tread in Libya of fighting towards democracy, one is left with a big question of whether this nation is ended to a better cultural relationship with the world as far as business relationship with the world is concerned. This essay is divided into various sections which include among others the political and economic issues in Libya, the Libya business culture, the practical strategies involved in establishing or doing business in Libya together with pros and cons of doing business in Libya. The conclusion to this essay is based on a summary of the findings that are highlighted in the analysis. The current political and economic issues in Libya The political system in Libya is in theory based on the Qadhafi’s green book political philosophy. In this book, the Islamic...
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...Because emerging markets are redefining pathway of innovation and representing the next big growth opportunity for international business. Besides, in emerging economies, how to design and create product innovation to meet affordability or acceptability criteria of mass markets is also important for emerging markets. Moreover, lowering cost, risks and uncertainties can be realized by innovation of synergetic partnerships (Sangeeta, 2011). For example, Mercedes Benz built a joint venture with Tata Motors to manufacture commercial trucks in India. After making each distinctive competence synergy, they created the lower and cheaper car to meet emerging economies. Besides, the group also became the first and biggest seller in low cost car business in India (Sangeeta, 2011). Therefore, company should find each partners’ distinctive competence and sense of innovation...
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...1.0 Two factors contributed to EuroDisney’s poor performance 2.1 Failure in realizing the local culture. There are a few factors that contribute on the failure to perform for EuroDisney on its first year operation. The first reason is because they fail to realize the local culture there is in France and instead of adapting to the foreign culture, the American company tries to adopt their American culture towards the business; which in this case lead them to disastrous results. One of the contradicting examples is that French people have their own adored cartoon characters. These cartoon characters also have their own theme park that is near to where EuroDisney is located. Thus, it is a challenge for EuroDisney to compete with what have been French’s favorite casts. Other than that, the operation of EuroDisney that does not allow the selling of wine which counters the culture of French whereby they are the world’s biggest wine consumers also lead them to poor performance. The culture of having “the clean-shaven, neat and tidy look” from the American culture is also being adapted to the park employees where the value may not be shared with the European’s. Besides that, the flexibility of the company to fire any of the employees who don’t follow the rules is also limited as the worker’s rights are very strictly protected by the French law. 2.2 Events that took place during the same year. Other than the failure of realizing the local culture in France...
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...* Investing in Myanmar (Burma) can be very lucrative with such a diverse range of business opportunities. With the Country extending from the snow-capped mountains of the Himalayas to the tropical forests of the south Myanmar has much to offer the investor ~ and never have the opportunities been better than right now as the country is on the verge of great development... * The 2013/2014 season was the busiest ever for visitors to Myanmar and now is the best time to invest in the travel industry: the hospitality industry is presently in its infancy and with so much to offer the tourist Myanmar stands ready to become the prominent player in the region. The weather varies considerably from North to South and it's possible to develop skiing in the North and Scuba Diving in the South !! The seasons are generally consistent, with the winter being cool and sunny; in the mountainous areas, which comprise much of Myanmar, the temperatures can be very cool indeed in the winter. Presently scope exists for the development of accommodation in many areas including Yangon, Bagan, Mandalay and Ngapali Beach: as tourism expands, as it assuredly will, additional hotels will be required throughout the country. * Investment Opportunities in the wood industry: Myanmar has an ECO forestry policy resulting in sustainable supplies of many hardwoods including Teakwood, Yamane and Padauk. Bamboo and Cane are also very plentiful. * Investment Opportunities in Farming: much of the countryside is farmed...
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...boundaries, and about the underlying motivations. In this paper a characterization of back-shoring as part of the dynamics of firms’ internationalization strategies is offered. Next, building on emerging empirical evidence, open questions are identified and an agenda for research is proposed. KEYWORDS Reshoring Back-reshoring Near-reshoring Off-shoring Internationalization 1. Introduction In the last few years numerous manufacturing companies have announced the return of part of their off-shored production (either in-sourced or out-sourced) to their home countries. Industrial giants such as Caterpillar, Bosch, and Philips are featured among them, but also a plethora of smalland medium-sized enterprises that are reconsidering their international...
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...The attraction and retention of foreign direct investment (FDI) is a complex and multifaceted activity for a number of different stakeholders” FDIs are distinct in Foreign Investments in that the entities making the investment wield a substantial degree of governance over the businesses invested in. Economies with few trade restrictions that have exports and imports that make up a large sector of the host nation’s GDP are considered to be ideal sites for FDIs. It is the degree of openness of that economy that regulates a government's choice to pursue the economic policy of FDIs. In the movie The Grand Seduction, a small fishing village called St. Marie-La-Mauderne, of Newfoundland has been dying an economic death. Their GDP has flat-lined which makes them an idyllic candidate for an FDI. The town’s willingness to do whatever it takes in terms of lifting restrictions is the impetus for the movie’s plot. The aspiration to attract the appropriate FDI often leads nations to participate in a global competition. This competition has created investment promotion agencies and endorsed policies that produce incentives for FDIs. These incentives traditionally are financial in nature. They are presented as: tax concessions in the form of a reduced corporate income tax rate (as in the movie where they received a tax exemption for life), enhanced depreciation allowances, and exemption from import taxes and refunds of duties on exports. These entail: direct contributions to the firm...
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...Chapter FIVE gLOBALIZATION AND SOCIETY OBJECTIVES • To identify problems in evaluating the activities of MNEs • To evaluate the major economic impacts of MNEs on home and host countries • To establish the foundations for responsible behavior • To discuss some key issues of globalization and society—ethics and bribery, the environment, pharmaceuticals, and labor issues • To examine corporate responses to globalization Chapter Overview Globalization has become a major socioeconomic force and topic of debate in the twenty-first century. While Chapter One examines the forces and criticisms associated with the globalization process, Chapter Five focuses upon the impact of foreign direct investment on home and host countries. Following an explanation of the balance-of-payments effects of FDI, a series of ethical issues concerning the social responsibilities of MNEs is explored. The cultural and legal foundations of ethical behavior are examined, and the challenges of global warming, pharmaceutical sales, and child labor are highlighted. The chapter concludes with a brief discussion of the need for corporate codes of ethics. Chapter Outline OPENING CASE: ENVIRONMENTAL CHALLENGES FOR NEWMONT MINING IN INDONESIA [See Map 5.1.] This case illustrates the effects of the changing and conflicting attitudes of the national and local Indonesian governments toward foreign direct investment. Headquartered in Denver, Colorado, Newmont Mining is the...
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...Running head: Introduction to International Business Introduction to International Business David L Stinson May 19, 2012 ABSTRACT * What is the purpose for foreign investment regulations? * List and discuss the foreign investment regulations. * What are 2 issues that concern management when screening potential markets and sites? * List and discuss the steps in the screening process. INTRODUCTION We will attempt to answer several important questions and aspects to foreign investment. These answers will include definition, purpose of regulations, issues that concern management in regards to markets and sites, and the steps taken during the screening process. FOREIGN INVESTMENT DEFINATION Foreign investment is simply any allocation of resources such as; assets, cash, debt, buildings, expertise, people, etc., that a company in one country allocates to an investment in another country. It is regulated differently in each country in order to protect themselves from external, disruptive stimuli or to protect against perceived financial exploration. (Chang, 2003) WHAT IS THE PURPOSE FOR FOREIGN INVESTMENT REGULATIONS? Foreign investment regulations are made to set rules just like any other company. They are often set to address national security concerns as well. Each country sets their own foreign investment regulations which can range from; requiring of approval of investment to board restrictions on the basis of economic security and cultural policy...
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...INTERNATIONAL DOCTORAL STUDY ADMISSION APPLICATION PROCESS Application submitted via eVision Internationa Office send to department for approval Returned to International Office and processed Returned incomplete, sent back to department Emailed to GRS for approval at the weekly GRC meeting Candidate awaits outcome of Scholarship application Doctoral office emails result to the International Office who then update eVision Candidate accepts offer in eVision International Office emails confirmation of start date to GRS Awarded Declined Candidate Declines offer of place via eVision Doctoral Office processes enrolment Candidate completes declaration in eVision FINISHED! Updated 19 December 2014 INTERNATIONAL DOCTORAL STUDY ADMISSION APPLICATION PROCESS DEFINITION: International candidate = First year, never studied at the University of Otago before. Candidate makes application (Candidate has already received unofficial approval from the primary supervisor and their department before beginning the process) Candidate contacts the International Office and applies via eVision and the application goes to the International Office portal. Application is sent to the department for approval/signing by the following people; Primary supervisor, HOD primary department (if applicable), Dean (if applicable), PVC delegate for the Division If there are co-supervisors in any other departments it then goes to the following people within...
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...International Business this semester was easily one of the most interesting courses I’ve taken at FIU. It opened my eyes to all the opportunities that international business opens up. Flying out to a foreign country that’s in the developmental stage and wisely investing your money there because the cost to produce your product/service is cut in half. We studied many different categories of international business like globalization, foreign direct investment, ethics and national culture, international business entry strategies, foreign exchange and international monetary system, and global production and logistics. We also briefly went into HR and marketing in comparison to the rest. This class has showed me what research I need to do in order to properly make an international business decision and has given me the confidence to explore into foreign markets. Globalization, one of the main point of the course, is the basis of international business. It is how people interact with other people, companies, and governments from different nations, stemming down to the outcomes of the reactions and how we handle them. Ultimately, globalization is something that benefits everybody in different ways, no matter the situation. For developing nations, they need foreign investors to come in and spend their money to help boost the economy. For developed nations, their goal is to find cheaper ways to produce their product or service, and the only way to do that is to ...
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...Global Corporate Finance MULTIPLE CHOICE b 1. Over time, the primary main reason for U.S. multinationals to produce outside the U.S. has been to? a) lower costs b) respond more quickly to the marketplace c) avoid trade barriers d) gain tax benefits a 2. The main intent of the multinational organization is to? a.) maximize shareholder wealth b) maximize world production c) minimize debt d) minimize the cost of doing business globally d 3. Exchange rates depend primarily upon which of the following? a) monetary systems b) political systems c) trade deficits d) inflation rates between nations b 4. Replacing the local foreign currency with the dollar is> a) Seignorage b) Dollarization c) Depreciation d) Appreciation d 5. Adjusting national economic policies to maintain foreign local exchange rates within a specific margin around agreed-upon, fixed central exchange rates is called a) managed float b) ‘beggar-thy-neighbor” devaluation c) dirty float d) target-zone agreement b 6. Nonconvertible paper money backed only by full faith of the government is called? a) Specie b) Fiat money c) Seignorage d) Par value b 7. Theoretically, relative purchasing power parity states, between nations, the a) inflation rates are unrelated b) exchange rate differential reflects the inflation rate differential c)...
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