...Table of Contents Executive Summary 3 Issue Identification 4 Slowing Growth in NAFTA Trade 4 Continuation of NAFTA Strategy versus Expansion into Latin America 4 Taking Advantage of Economic Growth in Asia and Emerging Markets 4 Expanding Overseas 4 Environmental & Root Cause Analysis 5 Slowing Growth in NAFTA Trade 5 Continuation of NAFTA Strategy versus Expansion into Latin America 5 Taking Advantage of Economic Growth in Asia and Emerging Markets 5 Expanding Overseas 6 Alternatives and/or Options 6 Slowing Growth in NAFTA Trade 6 Continuation of NAFTA Strategy versus Expansion into Latin America 6 Taking Advantage of Economic Growth in Asia and Emerging Markets 7 Expanding Overseas 7 Recommendations and Implementation 7 Slowing Growth in NAFTA Trade 7 Continuation of NAFTA Strategy versus Expansion into Latin America 7 Taking Advantage of Economic Growth in Asia and Emerging Markets 8 Expanding Overseas 8 Monitor and Control 8 Executive Summary Since Canadian National Railway Company (CN)’s privatization by the Canadian government in November 1995, CN has not stopped growing its sales, profits, cash flow and, as a result, market value. Privatization and deregulation of the rail industry led to some of CN’s success, but CN had to cut costs and increase revenues. Cutting costs meant reducing workforce and closing or selling unprofitable tracks. It also meant investing in more efficient rail equipment and technology. Increasing revenues required focusing...
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...global emerging markets studied by Goldman Sachs Investment Research. In this paper I will revise the initial portfolio strategy from 1999 that touched on long-term perspective on short term risk. The emerging countries are within Asia, Latin America, Eastern Europe, and Middle East. The information the company provided was strictly based on a predicted study of future outcomes based on emerging markets. The paper of itself does not issue a company strategy on how to use the information found. In this paper I will use scenarios the company presents and determine how Goldman Sachs should invest 5 million dollars recently received to maximize its wealth. In the overview Goldman Sachs mentioned: That they developed a model of discount rate determination that permits the company to recreate discount rate history and calculate discount rates for 23 emerging markets over the last 25 years. The comparison of current discount rates versus their long-term trend has powerful investment implications and turns the investment decision on its head. Abnormally high discount rates relative to history (normally interpreted as punishing cash flows) may be a buy signal, while abnormally low rates may be a sell signal. Current emerging market discount rates are approximately in line with their five-year moving average. From purely a risk perspective, Asian markets appear undervalued, while Latin America and EMEA seem to be slightly overvalued (Mariscal and Hargis, p. 1). Emerging markets...
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...Fine Wine Market Outlook 2012 Contents Introduction Methodology The Fine Wine Market in 2012: Challenges and opportunities Survey findings 5 6 7 10 PROFESSIONALS’ WINE NETWORKING Connecting professionals with a shared interest in wine In your city, and around the world With colleagues in the sectors that matter to you Few things form stronger bonds between people than a shared passion for wine. Whether you’re an experienced wine collector or just embarking on wine discovery, we can help power your networking by connecting you with like-minded professionals, in the elds you tell us are relevant to your business and career. The service is free, private, and condential. Simply register your interest at www.wineyields.com, and we’ll contact you privately to set up introductions with complimentary professionals who’d like to share a glass or two. A free reader service, from Wine Yields F INE WINE INVESTMENT SPECIALISTS Best prices for fine wine We have an excellent reputation as advisors on investment grade wines; we trade in them on a daily basis and so are well placed to recommend what and when to buy and sell. We supply the trade and private collectors at the same highly competitive prices. We charge no management or performance fees. • Top prices paid for your wine • Highly regarded fine wine blog • Professional storage available Pantone PMS 273 • Daily fine wine news and extensive news library Pantone 273 Cmyk Suite 5, Claremont House, 22 Claremont...
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...importance of these markets was prescient. For example, even after their advances over the past decade, China, India, and Russia are predicted to triple spending power by 2018, and Brazil is not far behind, according to a recent report by Business Monitor International.1 While South Africa, by most accounts, has become a fifth member of the BRICS (signified by the capital “S”), these countries no longer sufficiently represent the rise of emerging markets. Global gross domestic product (GDP), factoring in purchasing power parity, now has reached about a 50/50 split between the developed economies and emerging economies. In fact, for the first time since the dawn of the Industrial Age, the global economic engine is being powered by Southern Hemisphere nations.2 Moreover, in the aftermath of the financial crisis and subsequent Great Recession, the emerging markets as a whole—not the world’s debt-ridden developed markets—have been the most resilient in the face of global distress. As Chief Economist and Leader of PwC’s Emerging Markets practice Harry Broadman puts it, “Going through the financial crisis, the most resilient economies—measured by GDP or trade volumes—have been the emerging markets.” Broadman made this comment at PwC’s annual Global Retail and Consumer Leadership Conference held recently in New York. He moderated the session “A BRIC and Beyond,” which examined the notion that, while the BRICS still serve as a proxy of sorts for any emerging markets discussion, there is...
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...Assessment M.Sc. Global Banking & Finance Alternative Investments Lecturer: | John Diamondopolus | Module: | Alternative Investments | Submitted by | Josip Sestan, Chetanna Chukwudum | Submitted: | 06.04.2014 | Content Tables III Figures III Abbreviations IV 1 Overview of Hedge Funds Strategies 1 2 What are Emerging Markets and why are they so important? 2 3 Why do Hedge Funds invest in Emerging Markets 6 4 DWS Invest Global EM Equities LC 8 4.1 Inside the DWS Invest Global EM Equities LC fund 8 4.2 Performance of the fund 10 5 Hedge Funds Performance in EM scientific paper review 11 6 Hedge Funds Strategies in EM and Africa 12 6.1 Investment strategies in more developed EM. 16 6.2 Hedge Fund Strategies within Africa and Sub Saharan Africa 19 7 Risk exposures in emerging markets 23 8 Conclusion 25 References 26 Tables Table 1: Hedge Fund Strategies 1 Figures Figure 1: Emerging Markets vs. Developed Markets 2 Figure 2: Emerging Markets vs. Developed Markets GDP growth in percentage 3 Figure 3: Development of the working-age population 3 Figure 4: EM vs. US: Consumption levels 4 Figure 5: EM dept. has exceeded EM 5 Figure 6: MSCI World vs. MSCI Emerging Markets 6 Figure 7: CS Hedge Fund Index vs CS EM Hedge Fund Index 7 Figure 8: Country distribution 8 Figure 9: Industry Sectors 9 Figure 10: Equity Share Distribution 9 Figure 11: Perfomanc of the fund 10 Figure 12: EM performance 13 Figure 13:...
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...Morgan Stanley Emerging Markets Fund is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek long-term capital appreciation. At least 65% of the Fund's total assets will be invested in emerging country equity securities: common and preferred stock, bonds, notes and debentures convertible into common or preferred stock, stock purchase warrants and rights, equity interests in trusts and partnerships as well as American, Global or other types of Depositary Receipts. The Fund may leverage up to 10% of its total assets. The Dow 30 company selected for this assignment is Caterpillar. As per the last annual report of the company, the major investment decisions of the company in the recent fiscal year include: The company heavily invested in expansion or growth plans for emerging markets such as India and China. In June 2008, as part of its strategic plan to increase its manufacturing footprint in the rapidly growing Asia-Pacific region, Caterpillar announced a four-year, $200 million investment to increase manufacturing capacity in India. In terms of investments, the company's investment portfolio comprises of government debt, corporate bonds and equity securities. Cat Insurance maintains a well-diversified equity portfolio consisting of three specific mandates: large cap value stocks, small and mid cap growth stocks and international growth and income stocks. The Morgan Stanley's emerging markets funds, as per...
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...Foreign Direct Assessment: Analyzing the Mobility of FDI Models in Emerging Markets Kyle Himmelwright & Damian Zaccaria, Villanova Business School In this article, the authors will explore foreign direct investment in emerging markets. Applying a two prong investment model, they’ll assess three emerging Southeast Asian marketplaces; Indonesia, Thailand, and Malaysia. Additionally, they’ll explore the impact a variety of explicit and implicit factors have on the outcome. The research will indicate which of the three markets has the most potential for investment. Keywords: Foreign Direct Investment (FDI), emerging markets, investment, economic factors, growth, defense Foreign direct investment (FDI) plays a prominent and growing role in the global marketplace. FDI is defined as an investment made by a company or entity based in another country. The investment provides the firm with an opportunity to access new markets and marketing channels, cheaper production facilities, access to new technology, products, skills and financing (Goingglobal.com 2015). Accurately assessing marketplace factors is essential when evaluating whether to invest in a foreign market, especially when it comes to making decisions requiring foresight and conviction. “The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.” Rupert Murdoch’s quote concisely illustrates the current state of the global marketplace; it simply isn't as big as...
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...international operations. Although the bank rapidly expanded across the globe, HSBC retained a clear focus on China market. In view of these changes of HSBC’s China strategy, it may be instructive to examine how banking environment and police of China changed over the years. Upon China’s accession to the WTO, foreign bank were allowed to enter China’s bank sector. HSBC seized the tremendous opportunity to strengthen its presence in China. This essay will begin by examining the evolution of HSBC’s Strategy in pre-WTO and post-WTO China. Next, It turned to analyse the impetus to these changes of HSBC’ China strategy. In the following part, this essay will introduced the background of HSBC expanding in China’s rural areas and evaluated this strategy from advantages and disadvantages aspects. Having presented the HSBC’s presence and strategy in China, the paper then analyses HSBC’s operating in other emerging markets with the evidence from India and Argentina. Moreover, the data and facts will be provided to evaluate the operation of HSBC during the recent world economic crisis. The further research about the reasons that Asian was identified by HSBC for future opportunities will be presented followed. The final section presents some conclusions and relates those to the operation of international business to provide some advice. Prior to the WTO accession, China’s market was not open up to foreign competition. In China’s centrally planned economy, the function of the state commercial...
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...FOREIGN DIRECT INVESTMENT IN EMERGING MARKET COUNTRIES Report of the Working Group of the Capital Markets Consultative Group September 2003 This report reflects the views of private sector participants in a working group examining the determinants, trends and prospects of foreign direct investment (FDI) in emerging market countries. The views expressed should not be attributed to the staff and management of HSBC, members of the CMCG, the International Monetary Fund, and the World Bank. -2- Contents Page Main Findings ..........................................................................................................................3 I. II. III. Introduction....................................................................................................................10 Overview of FDI in EMCs.............................................................................................14 Motivation, Location, and Decision-Making.................................................................15 A. Motivation ...............................................................................................................15 B. Locational Determinants of FDI..............................................................................16 C. Decision-Making .....................................................................................................19 Financing, Global Conditions, and Managing FDI Risks................................................
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...few European countries * New international players are emerging * China is making significant investments in robotics. Chinese manufacturers are currently leading the world in terms of procurement of new industrial robots. They are also developing their own low-cost industrial robots * South Korea leads the world in terms of robots deployed per 10,000 workers (recently, a South Korean team built the robot that won the DARPA Robotics Challenge, beating teams from the United States, Europe, and Japan) * Switzerland, Netherlands, and United Arab Emirates are among some of the other countries investing heavily in AI, robotics, and drones. * Globalization of robotics is expected to create new opportunities and challenge the leadership of the traditional players. Reduction in Hardware Costs * Cost of industrial robots (such as articulated manipulators, mobile robotic platforms, drones) has been declining in the commercial sector. * The agricultural sector is being projected as a major new market for robots and UAVs. Source: http://spectrum.ieee.org/automaton/robotics/home-robots/six-recent-trends-in-robotics-and-their-implications ------------------------------------------------- Industrial robot statistics Source: http://www.ifr.org/industrial-robots/statistics/ Asia, the most important region * Asia (including Australia and New Zealand) was by far the biggest robot market with about 139,300 industrial robots sold in 2014, 41% higher...
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...SPECIAL REPORT ON EMERGING MARKETS www.dreamgains.com White Paper Special Report On Emerging Markets ABSTRACT This paper examines the four emerging economies- Brazil, India, Russia and China (BRIC) - that are expected to play an increasingly important role in the global economy in the coming decades. These four countries have come to symbolize the exciting challenges and opportunities presented by dynamic emerging markets. The first part of the report outlines key features of these economies and their growing contribution to world output and trade. The second part analyses the contribution of India towards the same. By 2050, the BRIC economies will account for 44% of global GDP. The emerging market accounts for an increasing share of global activity. Two centuries of vigorous industrialization has propelled economies of North America, Western Europe and Japan into a dominant position in terms of their share of world output. But the past three decades have seen steady erosion from the peak they attained during the 1970. The emerging economies now account for over half of world output. These dynamic economies are changing the world economic order as they industrialize, improve their infrastructure and rapidly develop their service sectors. By 2050, they will account for almost 78% of global output. This projection uses realistic assumptions of annual growth rates of 5.3% to 2050, well below those posted in recent decades by the economies of developing Asia at over 7.5%...
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...Natural Gas Markets in Asia, Europe and North America Analyzing the differences between the natural gas markets in these regions Introduction The advent of shale gas is reshaping the global energy market, challenging the existing investment assumptions of utilities and generating new opportunities. (Bain & Company, 2013) Unconventional gas has altered the North American energy landscape and now it’s shifting energy dynamics across the globe. (Bain & Company, 2013) In analyzing the differences between the natural gas markets in Asia, Europe and North America, each has a different market structure resulting from the degree of market maturity, the sources of supply, the dependence on imports and other geographical and political factors. (MIT, 2011) These regional markets set natural gas prices in different ways: 1. The U.S. has gas-on-gas competition and open access to pipeline transportation and manages risk through spot and derivatives markets. 2. The European market relies more heavily on long-term contracts with price terms based on a mix of competing fuels, e.g., fuel oil, and access to their pipeline is restricted; and 3. Asia uses crude oil as a benchmark for natural gas prices (News, n.d.) and favors long-term contracts; this structure has kept LNG prices in Europe and Asia high relative to other regions. (MIT, 2011) These market features, along with the availability of domestic natural gas resources and geopolitical interests, establish...
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...much poverty, are now undergoing severe economic contractions, with such harmful effects on their populations. A breakdown of information in financial markets is the key factor that has driven this crisis. After laying out an asymmetric information view of the Asian financial crisis, this paper goes on to use this framework to explore lessons from this crisis. 1. An Asymmetric Information View of the Asian Crisis The financial system plays a critical role in the economy because, when it operates properly, it channels funds from those who have saved surplus funds to those who need these funds to engage in productive investment opportunities. The major barrier to the financial system performing this job properly is asymmetric information, the fact that one party to a financial contract does not have the same information as the other party, which results in moral hazard and adverse selection problems. An asymmetric information view of financial crises, which I have described in more detail elsewhere in Mishkin (1996a, 1997), defines a financial crisis to be a nonlinear disruption to financial markets 1 in which the asymmetric information problems of adverse selection and moral hazard become much worse, so that financial markets are no longer able to efficiently channel funds to those who have the most productive investment...
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...largely unrecoverable and hordes of nonperforming loans. In 1865, HSBC was founded to finance the growing trade between Europe, India, and China. HSBC rapidly expanded by opening agencies and branches across the globe, but maintained a distinct focus on China and the Asia-Pacific region. By the 1880s, the bank issued banknotes and held government funds in Hong Kong, and also helped manage British government accounts in China, Japan, Penang, and Singapore. After World War I and II, HSBC turned to dramatic expansion through acquisitions and alliances in order to diversify. The bank moved its headquarters in 1993 to London from Hong Kong and continued its global acquisition strategy. In December 2001, China finally acceded to the World Trade Organization (WTO). A number of policies were immediately implemented such as foreign banks were allowed to conduct foreign currency business without any market access restrictions. Foreign banks were allowed to conduct local currency business with foreign-invested enterprises. With its longstanding presence in China, HSBC was among the most well-positioned financial institutions to take advantage of China’s market opening. HSBC is an institution that actively seeks new opportunities; HSBC was the first foreign bank to invest in China in 2001. In 2002, HSBC announced it...
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...much poverty, are now undergoing severe economic contractions, with such harmful effects on their populations. A breakdown of information in financial markets is the key factor that has driven this crisis. After laying out an asymmetric information view of the Asian financial crisis, this paper goes on to use this framework to explore lessons from this crisis. 1. An Asymmetric Information View of the Asian Crisis The financial system plays a critical role in the economy because, when it operates properly, it channels funds from those who have saved surplus funds to those who need these funds to engage in productive investment opportunities. The major barrier to the financial system performing this job properly is asymmetric information, the fact that one party to a financial contract does not have the same information as the other party, which results in moral hazard and adverse selection problems. An asymmetric information view of financial crises, which I have described in more detail elsewhere in Mishkin (1996a, 1997), defines a financial crisis to be a nonlinear disruption to financial markets 1 in which the asymmetric information problems of adverse selection and moral hazard become much worse, so that financial markets are no longer able to efficiently channel funds to those who have the most productive investment...
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