...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...
Words: 12440 - Pages: 50
...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. Recently due to national security issues, some countries have also introduced lists of strategic sectors in which foreign investment requires government...
Words: 698 - Pages: 3
...World Dialogue on Regulation for Network Economies Regulation and Investment: Case study of Bangladesh Harsha de Silva and Abu Saeed Khan 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 be the rub off of the attractiveness of the region and not necessarily...
Words: 1190 - Pages: 5
...3 The Regulatory System in the United Kingdom This chapter examines the regulatory system currently in place in the United Kingdom. It provides an overview of the structure and objectives of regulation, the role of the regulator and the techniques that are employed in regulating firms and individuals who engage in investment business. 3.1 Background: the financial crisis and regulatory reform 3.1.1 Responding to the financial crisis In the UK, as elsewhere, the onset of the financial crisis exposed deficiencies in financial regulation and led to calls for regulatory reform. The Treasury Select Committee1 led the way, with its hearings into the collapse of Northern Rock exposing serious deficiencies in supervision and risk management.2 In October 2008, the Chancellor of the Exchequer asked Lord Turner, the newly appointed chairman of the FSA, to review the causes of the crisis and to make recommendations on the changes in regulation and supervisory approach needed to create a more robust banking system for the future. The Turner Review3, published in March 2009, made a 1 The Treasury Select Committee is a Parliamentary (House of Commons) committee that scrutinises the activity of the regulatory authorities in the UK. 2 See House of Commons Treasury Committee, The Run on the Rock HC 56-1 (Fifth Report of Session 2007-08). 3 FSA, ‘The Turner Review, A regulatory response to the global banking crisis’ (March 2009) at http://www.fsa.gov.uk/Pages/Library/Corporate/turner/index...
Words: 25821 - Pages: 104
...Better Regulation for Growth Regulatory Quality and Competition Policy Investment Climate Advisory Services of the World Bank Group With funding from FIAS, the multi-donor investment climate advisory service in partnership with BETTER REGULATION FOR GROWTH GOVERNANCE FRAMEWORKS AND TOOLS FOR EFFECTIVE REGULATORY REFORM REGULATORY QUALITY AND COMPETITION POLICY INVESTMENT CLIMATE ADVISORY SERVICES WORLD BANK GROUP ©2010 The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org All rights reserved Rights and Permissions The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Center Inc., 222 Rosewood Drive, Danvers, MA 01923, USA; telephone: 978-750-8400; fax: 978-750-4470; Internet: www.copyright.com. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@worldbank.org. About the Investment Climate Advisory Services of the World Bank Group The Investment Climate...
Words: 13479 - Pages: 54
...pretext of market failure arising from externalities, decreasing cost industries, and equity considerations for maximising social welfare. In Pakistan, where the private sector has played a dominant role, except probably for the 1970s,1 private sector activities have all along been regulated through various types of controls and regulations on entry and exit, prices, credit, foreign exchange, imports, investments, etc. These regulations were imposed with a view to ensuring that private sector allocations were in accordance with the national priorities [see Pakistan (1983-84)]. However, the objectives were rarely realised and, in fact, these regulations have been responsible for red-tapism and corruption. On the grounds of government failure, privatisation and deregulation policies are being practised almost everywhere in the hope that they would help in efficient allocation of resources and higher levels of productivity. Considerable regulatory reforms have also been effected in Pakistan over the last two decades. Investment and import licensing have been withdrawn, most of the foreign exchange restrictions have been removed, capital market regulations have been simplified, price controls have been lifted, and interest rates have been deregulated. However, there is considerable room for further regulatory reforms. Similarly, various public enterprises in the manufacturing and financial sectors have been privatised, telecommunication, airlines, and energy firms have been partially...
Words: 5966 - Pages: 24
...Executive summary One chalange that firms face nowadays is how to expand in the Multinational market and still maintain their compatitive advantages. The major issue is to decide for a favorable place or location for their new businesses. Due to our multicultural globus, every country has its specific regulations, markets, interrests, labor, trade zones, facilities and other factores that could affect the decision of the foreing expansion and the choice of the industry location. This paper illustrates the major factors that should influence such decisions. There are several types of observations, how to decide for a specific location for a company. This dicision depend strongly on the activities of the company, in other words with what type of business profile this company identifies itself. There are two major categories in our global observation what a company can be. The first one is the firms that have industrial backround, like goods production. Second one is companies that are based on service. This second category is not descused in this paper due to the less importance of the site selection decision, because it doesn’t matter whether the whole business process is situated at the same location. The communication technologie open the facility to be successfully performend even on different continet. In this paper I will be focused on the industrial corporates that is willing to take the decision of locating its factory somewhere in the global/international trade zones...
Words: 3000 - Pages: 12
...ministers by January 1, 2019. The question is, however, whether this is the right path to choose and whether these regulations will be able to prevent the world from any future financial markets crisis. So far, the proposed numbers themselves could hardly be described as tough, as the bounce in bank shares testified. Also, it seems that many important issues are not being addressed at all. (Plenty) But what are the issues that should be addressed? What would be the ideal regulatory state and is it possible to ever achieve it? Let us, first, start with our idea of the “ideal” international financial regulatory plan. After having researched various proposals for the international financial markets regulations, we reached a conclusion that finding the ideal path is going to represent a very difficult task and that none proposed regulation will be able to fit all the states. As mentioned in the article “Financial regulation: More questions than answers” which was posted in Businessline in the end of July, due to the variations in institutional legacies, traditions and systems in individual countries over the world, no one size can fit all. Also, however, we believe that as far as financial stability is concerned within any kind of arrangement that is deemed fit in a particular country, there is no need for a central bank to have a lead role. (Opinion) Any regulations will then require a dispassionate assessment of the reasons for the current system’s failure. The complicated issues...
Words: 2698 - Pages: 11
...LONG TERM INVESTMENT DECISION BY A COMPANY The producers of low calorie microwavable food have been expecting a change in price and they want to choose the price strategy which would make their product less elastic and responsive to changes in the prices, then the company should make careful analysis of the entire market situation. The company should look for the substitute goods in the market and their pricing strategy. Higher the number of substitutes are available, higher will be the chance of rise in elasticity of our low calorie microwavable food. The buyers should not have many options to buy from the market. However, if there are only few substitutes available, then the producers may keep the price high in the market of their product. It is also determined by the market power of the producer. Market power is determined by the elasticity of demand of the product. The firm can set higher mark-up over their marginal cost if they know that customers will not shift to another product in case of price increase. Hence, the firm or the producer should consider the cross price elasticity of demand of their product. Another factor to be considered while setting up prices of their product in the market is that of government policies in the economy. Fiscal policy would determine the taxes and other components of aggregate demand. If the firms have set higher taxes, then people would have less disposable income available with them and they would like to spend less on such less calorie...
Words: 1984 - Pages: 8
...Case #1 - Filter Innovations Inc. Critical Issues 1.) How to comply with government regulations so that FII can sustain their corporate goals and vision of being an innovative leader within their industry. 2.) How to effectively brand FII with the MBR technology within the scope of their current market so that they can sustain their existing customer centric competitive advantage. 3.) FII is behind innovation due to managerial decision of only allocation 5% of EBIT towards R&D. Analysis The waste water management industry is experiencing significant growth around the world and expected to be worth $348 billion by 2010. The opportunities in North America are growing due to rising population, government regulations and the “Green” movement; therefore there will be a much higher demand for MBR technology. While the government regulations help drive demand, they can also hinder operations by making existing product lines obsolete. New government regulations are being implemented which is putting pressure on FII to invest in newer technology that is in compliance with these regulations. This is evident due to the fact that their income has reduced by $97,899. A new opportunity to invest in Membrane Biological Reactors (MBR) would allow FII to meet these government regulations. The new technology would be replacing some of their existing product lines. MBR would be able to treat biological wastewater in addition to ground and industrial process water, which...
Words: 2107 - Pages: 9
...developing world is partly attributable to the presence of regulatory agencies, specifically focused on that sector. It is therefore not surprising that the developing world has decided to follow suit in recent years. Thus, at present, regulation is a worldwide phenomenon common in both the developed and developing countries. In fact, some countries without regulatory agencies in place feel left behind and are in a hurry to learn from countries with regulators in place. Over the years, the ever-increasing involvement of the private sector has reinforced the need for autonomous agencies to regulate the sector. Regulation has largely entailed balancing the needs of both consumers and utilities. Thus, through regulation, utilities are able to operate in an environment where they can get a reasonable rate of return on their investment, while providing a quality service to consumers. With the advent of regulation, there now exist generally distinct and clear roles for different players in the sector Government formulates policy, utilities provide the services while autonomous agencies regulate the sector. This has helped to boost investor confidence in the energy sector as there is a higher likelihood of a level playing field. ENERGY REGULATION IN AFRICA In Africa, the advent of liberalisation and commercialisation has triggered legislative reforms which paved the way for the establishment of regulatory agencies in the energy sector. With the wind of...
Words: 1505 - Pages: 7
..."Impact of Government Regulation" Please respond to the following: •* From the scenario for Katrina’s Candies, take a position as to whether government regulation is constraining or enabling in this situation, as it relates to the operational efficiency of the company. Speculate on the fundamental manner in which government regulation could impact the shareholders’ wealth and profitability. Considering the scenario for Katrina’s Candies, I believe the government regulation is enabling in this situation, as it relates to the operational efficiency of the company. The government’s intervention in the US market place process is to; provide for a market that is competitive by keeping monopolistic and other anti-competitive tactics at bay, protect the public interest and enable and encourage innovation. These are accomplished through the antitrust regulation statues and their enforcement which prohibits monopolies as stated in the Sherman Act, 1890 (McGuigan et al., 2014). The presence of anticompetitive business practices of collisional price fixing, wholesale price discrimination, exclusive dealing and tying contracts, anti-merger regulations, and interlocking directorates are specified in the Clayton Act, 1914. The Federal Trade Commission is the nation’s consumer protection agency that works for the consumer to prevent fraud, deception and unfair business practices in the marketplace. Government policies are there to ensure that products are available to the consumer at lower...
Words: 1515 - Pages: 7
...have begun to recognize this and influential organizations such as the California Air Resources Board (CARB) have placed laws to regulate the automotive industry. Because of these regulations in the market, GM, a producer of consumer and commercial automobiles with a market cap of $38,835.7 million, is in a better position than Navistar, a producer of commercial and military vehicles and a market cap of $1,613.2 million. Due to the rising concerns over the environment and the nature of the automotive industry, there is a risk run by both companies that changing government policies will increase costs and decrease profits in the long term. However, GM is a company whose product group is more diversified than Navistar’s. While Navistar focuses on the heavier grade automobiles such as commercial fleets, RV’s, and military trucks which require fuel-hungry and polluting engines, GM offers automobiles in both the commercial and consumer space. This allows GM to focus on a mix of light and heavy engines, hedging its risk from future government regulation. Additionally, GM understands the evolving markets and has been innovating and changing policies to reflect that. GM recycles 90% of all materials used and 52% of all facilities are landfill free . This already grants GM an advantage if future regulations become more stringent....
Words: 558 - Pages: 3
...The Financial Crisis The financial crisis has resulted in the collapse of large financial institutions, taken billions of dollars from bank costumers, and caused high unemployment rates. This has been going on for a long time and is only getting worse. Some say the government needs to stay out of the crisis and some say the government needs more regulation. In order to save our economy from the financial crisis, the government needs to enact proper regulations. The aim of those regulations must be to release the harms of corrupt business practices, keep bank customers from loosing money, and keep borrowers from being victimized by the fine print of their contracts. The first and most immediate problem of the financial crisis is continually increasing unemployment. The problem is best demonstrated by the threat is poses to the financial well-being of many people. “If there's no money flow, it's pretty hard to make more money and companies start to lay off workers” (Wikihow n.pag.). The whole crisis is like a cycle. Businesses make bad investments, consumers stop buying their product, and it hurts both the businesses and the customers. When the people stop buying, the businesses loose money and cannot pay workers. Therefore, unemployment rates go up. “Historical experience suggests that youth, immigrants, low-skilled and older workers are more likely to bear the brunt of rising unemployment“ (Scarpetta n.pag.). Another problem is, “job losses are spreading to sectors that...
Words: 935 - Pages: 4
...Ece Kıray SOC 578- Week 9 In the article of ‘From discipline to flexibilisation’, the transformation from fordist mode of regulation to postfordist disciplinary is explained. During this transformation the mode of social regulation in social, economic and political evolved until today by influence of globalisation. Fordism is a modern economic and social systems based on industrialized, standardized mass production and mass consumption. The concept is used in social, economic, and management theory about production, working conditions, consumption, and related phenomena, especially regarding the 20th century. Fordist accumulation mechanism did not influence only economic issues. It also regulated social, cultural, political issues in society through advertising, mass media and mass entertainment. Fordist mode of regulation comprised some disciplines to hold society together and proceed properly. It aimed to control individual from their family and community life to work place. Rational control expanded in almost all social areas such as household management, social work, psychotherapy, industrial psychology, etc. Furthermore, the social regulations were concentrated within a national frame. All social areas are controlled and bounded nationally. Thirdly, it was encouraged individuals to be more rational and autonomous for their own decisions through instutions such as family, school, psychology, workplace. In the post-89 era of postfordist globalisation, firstly, there...
Words: 656 - Pages: 3
