...About capital market liberalization, Mishkin explains the phenomenon that capital flows primarily move between rich countries to diversify their portfolios. He also accentuates the importance of financial system, to allocate capital to most productive uses. Then he talks about the benefits brought by financial globalization to emerging-markets: lower cost of capital, foreign capital and financial institutions can improve the allocation of capital and globalization promotes the development of better property rights and institutions. Though he acknowledges that the benefits of financial globalization is controversial. Some argues that it facilitates financial crises and others argue that emerging-markets is not constrained in finance. But he argues that the point of globalization is to optimize the allocation of capital. Strong property rights is crucial in improving economic efficiency. To make globalization good for emerging countries, they have to improve their financial systems through a good institution that allocate capital efficiently. A way to improve efficiency is to promote export sector so that there is right incentive to improve efficiency through institutional reform. Stiglitz, on the other hand, thinks that liberalization is harming the economy because there are several conditions for globalization to be beneficial to emerging countries such as perfect information, perfect capital markets and perfect competition. Globalization impairs the ability of government to...
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...Q1. What do you think are the economic benefits of liberalizing the EU energy market? Who stands to gain the most from liberalization? The economic Advantages would be that the clients would get to pick their energy suppliers depending on their preference which would lead to having better quality service in the energy market. also energy suppliers can lower their prices by alternating their effectiveness. massive usefulness should be able to realize economies of scale which will able them to compete more efficiently. The clients and businesses would gain the most from liberalisation by getting the best lowest prices possible from suppliers; better manufacture with the use of variable technology so business would have more deals in the competitive market and could be more profitable. Q2. What are the implications of liberalization for energy producers in the EU? How will the environment they face change after liberalization? What actions will they have to take? The Implications are to combined the markets of its 27 states with a sole unit market for electricity and gas. EnWG is an example of the greater market shares that would be obtained and influenced by a massive sole enterprise . There are a lot of changes in the environment after liberalisation obtains and unites in the energy markets. Politicians and governments try to shelter their firms from other opponents with procedures. Bigger firms will try to acquire firms in local country. Government would take actions...
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...answer. Investors will tend to take into consideration some important factors before deciding to invest in a foreign country. These factors may vary between the function and efficiency of local market, trade policy and privatization policy, the rules and regulations pertaining to the entry and operations of foreign investors (1) Considering the fact that firms which engage in FDI face different difficulties like additional costs for operating at distance or costs of uncertainty, there can be some support for John Dunning’s (1977, 1981) eclectic paradigm which states 3 that the investment will take place if the firm has three advantages: Ownership advantages, location advantages and internalization advantages. Possessing all three of them will allow a company to perform better that the local competitors. Natuzzi should relocate production because it wants to reduce costs and the best way to do that is to invest in a lower labor cost country. Thailand can be considered one of the most attractive locations because is like a gateway to Asia- home to nowadays largest growing economic market. The country can also offer trade with China or other member countries of ASEAN (Association of Southeast Asian Nations). Thailand has advantages in terms of transport costs to the U.S. market. Producing here is equivalent to producing in China in terms of distance between U.S. and Asia but productivity of labor is a lot higher in Thailand although labor cost is a disadvantage. As Natuzzi...
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...his unconditional co-operation and kind support in preparing the report and doing the activities required for the same. 2|Page TABLE OF CONTENTS SL. NO. 1 1.1 1.2 2 2.1 2.2 2.3 2.4 3 3.1 3.2 3.3 4 4.1 4.2 5 5.1 5.2 5.3 6 6.1 6.2 6.3 7 8 HEADINGS OVERVIEW Key Growth Drivers for Consumer Durables Major Hurdles and Challenges INDUSTRY ANALYSIS Industry Classification Success in the Industry would depend on the following factors Profiles of Key Consumer Durable players Opportunities and Challenges CONSUMER ANALYSIS Consumer Classes Changing Attitude of Today’s Customers Marketer’s Response to Consumer Attitude MARKET ANALYSIS Consumer Electronics Household Appliances PRODUCT ANALYSIS Television Consumer Electronics Market in India – CTV CTV Industry Post Liberalisation COMPETITION ANALYSIS Competition Overview India as an Emerging Force in Television Market Market Measurement and Forecasting THE ROAD AHEAD CONCLUSION PAGE NO. 4 4 5 6 6 7 7 10 11 11 12 13 14 14 15 16 16 18 18 20 20 22 23 25 26 3|Page 1. OVERVIEW India in its 62 years of journey has seen manifold increase in the income of its denizens (Rs. 38,084 as on 2009) and this has led to paradigm shift in the purchasing behaviour of the people here. There is a discernible shift in the consumer’s preference in favour of higher end, technologically superior branded products, the demand being spurred by...
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...requirement without being compelled to sell the produce at a time when the prices are low. An improved policy framework accommodating modern infrastructure and smart management tools & techniques like IT, ICT , and e-trading may help in reduction of wastage and better marketing and will enable small & marginal farmers to enhance their holding capacity in order to sell their produce at remunerative prices and avoid distress sales. Agricultural activities in India are largely carried out by small and marginal farmers, where exists about 121 million operational holdings, over 80 % of which comprise marginal and small holdings (< 2 ha). There subsist variety of marketing services & facilities in the sectors of R&D, Extension, and other market intelligence services by Government sector, but in real sense they are inadequate having ample scope of their improvements to facilitate farmers, farming, farm produce, farm income, and ultimately the farming economy. Often the farmers under Indian conditions need a timely credit, where in majority of cases their credit needs include personal loans. Such ccredit is habitually provided by the trader (informal money lending system) either by...
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...Emerging Markets 1. Introduction With the demise of communism, many countries in the world today are striving to build their economic activity around markets, and to participate in free trade arrangements, such as the World Trading Organization (WTO), European Union (EU), & North American Free Trade Agreement (NAFTA). The first step for most countries in this endeavor is deregulation and liberalization, thus opening their markets to free economic activity by local and international investors and entrepreneurs. However, companies and investors rushing to cash in on these new opportunities learn an important lesson—often through experience—that while these new emerging markets may be liberalized, they do not function in the same way as the more advanced markets of Europe, United States, Canada, Japan, and Australia. It is dangerous to equate liberalization and deregulation with building a well functioning market economy. Investors and companies operating in emerging markets quickly realize that these markets do not have all the infrastructure—both physical and institutional—needed for the smooth functioning of markets. The frequent economic crises engulfing many emerging markets—in Mexico and Brazil in the early 90s, Asia in the mid-90s, in Russia soon after, and in Argentina most recently— offer stark reminders of these institutional voids. The purpose of this note is to address several issues critical to understanding the unique nature of emerging markets relative...
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...African and East African Asian Entrepreneurs ESRF Study on Globalisation and East Africa Economies ARGICULTURAL MARKETING AND SUPPLY CHAIN MANAGEMENT IN TANZANIA: A CASE STUDY Elina Eskola12 ABSTRACT This study describes the prevailing marketing arrangements in Tanzania at local, regional, national and export markets using Dar es Salaam, Ifakara, and Mtwara as case study examples. The major impediments for trade in Tanzania has been categorised into three groups: 1) Physical infrastructure, 2) know-how and capital, and 3) institutional framework. Insufficient physical infrastructure in terms of roads increases the cost of transportation, works as an informal market barrier, forms a wedge between the supplier price and consumer price, and increases the loss of perishable products. Lack of know-how shows in poor market orientation and business skills, and leads to difficulties in managing and obtaining loans. Furthermore, the current institutional framework is unable to support the formation of strong traders and producers’ associations and other representative bodies to enhance capacity building and to bargain for fairer terms of trade. In addition, the lack of market information and the weak legal framework lead to difficulties in negotiating trade agreements and enforcing the existing contracts. Currently the necessary institutional framework has been substituted for by long supply chains of middlemen, and relying on personal relationships between producers, traders and brokers...
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...Morales describes US trade policies towards Latin America as a ‘neo-liberal corporate-led agenda’. Discuss the validity of his claim, as well as the desirability of extending the model of regional integration preferred by Washington to all of the Americas. “Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down. Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.” Woodrow Wilson, President of the United States, 1919 Madalina Daniela Costache Robert Ibsen British and American Studies – 2XBF November 8th 2013 Number of words: 938 With the emergence of the Washington consensus, the US foreign policy shifted towards a neoliberal model in order to deal with the pressures incited by globalization. Neoliberal theory argues for the development of a free market economy where there is a high degree of free individual choice, and which achieves efficient economic performance by reducing the state’s intervention solely to “defining property rights, enforcing contracts, and regulating the money supply” (Kotz 2000). This essay argues that, as Morales claims, the US does pursue a corporate-led neoliberal agenda...
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...TECHNOLOGICAL EFFICIENCY AND FREE MARKET ECONOMIES Evans Gwaro Kisii University 15th July, 2016 Technological Efficiency and Free Market Economies Betz (2011) defines technology as the ability to influence any piece of knowledge to suite the best interest of human nature. While, on the other hand, Zupan (2011) refers a free market to system in which the prices for goods and services are agreed freely by accord between vendors and users, in which the rules and requirements on supply and demand are not interfered with by the authorities, price-setting monopoly, or other power. Free markets have various merits. The most accepted is the extension of individual choice, through commonly appreciated give-and-take situation. Subsequently, free market differs with a regulated market, where the government intercedes in supply and demand through non-market approaches that include regulations forming obstructions to market entry and/or directly setting prices. As such, the concept of a free market is where prices are structured by the equivalent demand and supply opportunities. Subsequently, as aforementioned, the influence of choice which enshrines to the free market alignment employs preeminent use of discrete entrepreneurial skills which inspires technology advancement. Essentially, in a free market economy, there are three components that include competition, active but limited government, and the self-interest. Competition in the market place provides quality goods to consumers...
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...In a seller’s market, buyers must adopt new tools and strategies to compete effectively on a new playing field. Consolidating supplier markets, rising energy prices and the growing demand for raw materials in emerging markets have fundamentally changed the purchasing framework. Suppliers are more powerful than ever, which means buyers must adjust quickly to a new playing field. A.T. Kearney developed The Purchasing Chessboard—a compilation of insights and experience from thousands of purchasing projects performed worldwide—to help procurement professionals master the tools of their trade. The Purchasing ChessboardTM Buying in a seller’s market Since the 1980s, most procurement professionals have operated in a buyer’s market. Using relatively simple tools—RFIs and RFPs, bundled products and services, and multi-year contracts—companies could negotiate from 1 to 3 percent annual price reductions from suppliers. But this “golden age” of purchasing appears to be over. The ongoing consolidation of the supplier market, rising energy prices and the increasing demand for raw materials from emerging markets means more companies are in a seller’s market. And buyers must adopt new tools and strategies to compete effectively on a new playing field (see sidebar: A New Playing Field on the next page). New Strategies in a Seller’s Market In a seller’s market, old purchasing strategies such as pitting suppliers against one another, or simply requesting...
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... in recent years it is evident that the strategy of these two companies has tilted in favor of the Greenfield investments. There are various factors responsible for both Aldi & Lidl in choosing Greenfield investment as a primary market entry strategy. Some of these factors are as mentioned below: Degree of freedom: Greenfield investment involves setting up business in the manner as perceived by the investors. They are free to choose their own suppliers, channel of distribution and so this freedom allowed the two companies to change required strategy whenever required in order to adapt to different market conditions in different countries. This strategy involves few rules, regulations, licensing issues that allowed the company to cash in on the brand name, which means ability to attract new customers with relatively low costs. Resource & efficiency: Since Germany had already been exploited, the companies¶ seeked for ways of acquiring resources at much lower rates. So by choosing this stategy , , would help them to compete in the markets with major supermarkets and hypermarkets as they could drive down the costs of products that would lead to attracting more cunsumers loyalty . This could enable them to maximize their market share. Other Factors: Political developments: the end of communism 1990¶s allowed for privatization and expanding their business in international fields had become much easier as a result,. Technological aspects: Developments...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...which individuals and groups obtain what they need and want by creating and exchanging items of value. 2. [pic]A distributive system: Marketing is viewed as a process whereby in a democratic society, operating within a free market or mixed economy, there evolves a system of distribution that facilitates transactions resulting in exchange and consumption. 3. [pic]A functional area of management: Marketing is seen as a functional area of management, usually based in a particular location within the organisation, which uses a collection of techniques, for example, advertising, public relations, sales promotion and packaging to achieve specific objectives. 4. [pic]An overall business philosophy: Many firms see marketing as the keystone of their business. Marketing is viewed not as a separate function, but rather as a profit-orientated approach to business that permeates not just the marketing department but the entire business. The central mission of the organisation is seen as the satisfaction of customer requirements at a profit (or, in not-for-profit sectors, at a maximum level of efficiency or minimum level of cost). This is achieved by focusing the attention of the entire organisation on the importance of the customer and the needs of the market-place. 5. [pic]A targeting or allocation system: Marketing is perceived as the way any organisation or...
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... Competitive Strategies: Energizer vs. Duracell By LaShonda Griffin BUS 508- Contemporary Business Dr. Laura Jones November 5, 2012 Abstract The U.S. offers a free market where businesses are able to have free enterprise to open and operate an ideal to provide a product or service to the public. There are many businesses that offer similar products and create competition. Consumers are able to have the options in the marketplace. Energizer and Duracell are two companies that offer similar products to consumers. Energizer has been around since 1986 and has grown into a mutli- billion dollar company within the last decade. Duracell first got started in the 1920’s from two scientists, and finally become a brand in 1964. This paper will discuss the two companies’ background, the competition between the two, and how they will thrive to compete in the market place in future. Energizer Energizer is formerly known as Eveready Battery Company and changes its name in the late 1980’s. By the 1990, Energizer has established their brand and had over 30 percent of the domestic market. They were trailing Duracell by 10 percent, who at that time had 40 percent of the domestic market. Energizer is the manufacturer of dry cell batteries and flashlights, with a full line production of in three major categories: alkaline, carbon zinc, miniature and rechargeable batteries. They produce more than...
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...Session 6 Article Summary—From Scotch Whisky to Chinese Sneakers: International Commodity Flows and New Trade Networks in Oshikango, Namibia by Gregor Dobler Development of new trade networks feeding consumption have developed, influencing the way Africa integrates into the global economy. Dobler analyses different trade networks that link Oshikango, Nambibia to the world through four case studies on Scotch whisky, Brazilian furniture, Japanese used cars and Chinese sneakers commodities. Through the case studies, he exemplifies how there has been a shift from old colonial domination of trade to new manufacturing countries or trade routes, as well as the essential role of migrant entrepreneurs in these routes. The similarity underlying the different trade networks is that while the people involved in them are of different ethnicity or country of origin, they share the same profit-seeking motive and the opportunities in the international system shape them to become successful examples as facilitators of global trade. Another key concept from the article is that of global integration via consumption. As trade booms in the town of Namibia, it invariably fuels consumption in the town and Africa as a whole. Consumption choices are a means of self-expression in relation to the world and more Africans aspire towards commodities that reflect social standing and a ‘better life’. This thus creates new dependencies on the trade networks to fulfill these desires. Scotch Whisky Trade ...
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