...Switzerland vs. Mexico Switzerland My research paper will individually concentrate on Switzerland and Mexico in its history, competitive advantage, export, trading, and globalization. I will then compare and contrast both countries by their competitive advantage in the market, government intervention, trading, export, and globalization. The Switzerland economy is founded on an exceedingly competent labor force and skilled work. The principal areas consist of micro technology, hi-tech, biotechnology, and pharmaceuticals, also, includes banking and insurance knowledge. Switzerland was not the success story that it is today; in the late nineteenth century Switzerland was a poor nation and its major exports were mercenaries and emigrating citizens. By the early period of the twentieth century, Switzerland had emerged as an industrial nation of importance despite its small size. Switzerland was one of the richest nations in the postwar period and by the 1960 using some measures, Swiss per capita income was the highest in the world. The wealth of Switzerland is the outcome of national competitive advantage where there are shockingly numerous competitors in a wide range of advanced manufacturing and service industries and Switzerland a small nation was able to establish their competitive advantage over large nations and their competitors. The industrial success has allowed Swiss citizens to be employed at high wages and for many years the unemployment has affected...
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...CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS QUESTIONS 1. Why is it important to study international financial management? Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance. This mode of operation has become untenable since then. 2. How is international financial management different from domestic financial management? Answer: There are three major dimensions that set apart international finance from domestic finance. They are: 1. foreign exchange and political risks, 2. market imperfections, and 3. expanded opportunity set. 3. Discuss the three major trends that have prevailed in international business during the last two decades. Answer: The 1980s brought a rapid integration of international capital and financial markets. Impetus for globalized financial markets initially came from the governments of major countries that had begun to deregulate their foreign exchange and capital markets. The economic integration...
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...The Debate Around NAFTA’s Chapter 11: The Case of MMT and Canada Introduction The North American Free Trade Agreement (NAFTA) is an agreement liberalizing trade and investment between Canada, the United States, and Mexico. From the moment it took effect on January 1, 1994, the agreement has sparked controversy and fiery debate from groups across the political spectrum regarding its benefits and costs.[i] Much of this debate revolves around Chapter 11, the section of the agreement that deals with investor-state relations. Chapter 11 gives foreign investors the right to sue the host government for damages if they believe they have been treated unfairly. In 1996, the Ethyl Corporation filed a $250 million claim against Canada under Chapter 11 regarding a gasoline additive they produced called MMT. Background • Methylcyclopentadienyl manganese tricarbonyl (MMT) MMT is an octane-improving fuel additive. The chemical compound was developed in the 1950s by what became the Ethyl Corporation (today part of the Afton Chemical Corporation, but hereinafter referred to as “Ethyl”).[ii] MMT was widely used in the United States and Canada, during the 1960s and 1970s in leaded gasoline. However, due to public health concerns, MMT was banned in the late 1970s by the U.S. Environmental Protection Agency (EPA).[iii] The health effects of exposure to manganese through its use in MMT are under research. Manganese, the main component of MMT, is a common element of our diets...
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...Globalization Questionnaire University of Phoenix Globalization Questionnaire What is the concept and meaning of globalization? Many individuals and groups have different views and opinions of what it is, exactly. Some of them are angry opinions and views, because people are losing jobs in the United States, and other viewpoints include excitement about the possibility of overall job growth and opportunities. Globalization has been defined as the process of worldwide trade that is intended to increase a country’s capital and economic gain for both of the countries involved, while increasing positive global citizenship. Former President Bill Clinton said, "Globalization is not something we can hold off or turn off . . . it is the economic equivalent of a force of nature, like wind or water." Globalization suggests the basic unity of the human spirit that is expressed through a common awareness and humanity. This has been known to possess both positive and negative effects; the positive effects are that businesses are able to have a certain amount of control over their own economic strengths by balancing and manipulating the strengths of other businesses on a global, rather than local, level. The negative effects can be the affect this has on jobs in some specific industries. One common trade theory is the product life-cycle theory, which serves as an accurate explanation of international trade patterns that have been established, as a whole. This theory is...
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...MASTER IN BUSINESS ADMINISTRATION INDIVIDUAL ASSIGNMENT SUBJECT: MANAGING IN THE ECONOMY SUBJECT CODE: MGT6233 NAME : GIRISH S/O GOPAL 810602 -01 – 6275 I/C : STUDENT ID : 01130024 LECTURER : MS.SANDRAKALA 2 Executive summary Free trade refers to trade between countries without tariff and non-tariff barriers on exports and imports. In another word, free trade refers to trade without government interference. Classical economists such as Adam Smith and David Ricardo have advocated that free trade improves the economic well being of a country by increasing the production of a country and allowing efficient allocation of resources, thus increasing global production and promoting peaceful and prosperous global environment. In the global basis, World Trade Organization formed after GATT in 1995 promotes trade liberalization through multilateral negotiation. On the other hand, in the regional basis, countries are forming regional economic integration to promote free trade stage by stage. The initial stage is known as Free trade areas (FTAs) under which they agree to remove tariffs and non-tariff limitations on trade in products between themselves. Despite all these initiates, governments around the world are still imposing various restriction on trade between countries to protect its own industries such as agriculture which is considered as the backbone of a country. Therefore, this report will discuss the concept of free trade, trade theories...
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...entitled: ‘Costly Trade with China. Millions of U.S. jobs with net job loss in every state’ will be analyzed to determine what China has been doing to become the number one exporter in the world, as well as the impact that China’s exporting has had in the United States. It also will be determined how costly it has been to the United States to trade with them; what other factors may have affected the United States and its trading capacity; and what the future implies for the commercial relationship between these two countries. Finally, it will be discussed whether or not the United States should seize other opportunities by creating new free trade blocks with another countries in the world, such as the North America Free Trade Agreement (NAFTA) with Mexico and Canada. Review In 2010, China became the number 1 exporter in the world. However, its inclusion in the international trade world was not easy. Its self-imposed isolation made of China a very unique country in terms of commercialization with other countries. Taking a step back in time, it was not a long time ago when China was being strongly criticized for its lack of adaptation ability. In few years, however, China developed all the technology and production techniques needed to establish what others consider the fierce low-cost...
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...are operating in China, India, Vietnam. Using India as example, apart from the non-uniform tax structure, logistic companies in India have to pay numerous other taxes, octrois, and face multiple check posts and police harassment. High costs of operation and delays involving compliance with varying documentation requirements of different states make the business unattractive. On an average, a vehicle on Indian roads loses 1-2 days in complying with paperwork and formalities at different check posts en route to a destination. Fuel worth up to estimated USD 2.5 billion is spent on waiting at check posts annually. Economical factors include economic growth, interest rates, exchange rates, increasing globalization, creation of WTO, trade agreements among regions such as ASEAN, NAFTA, EU), emergence of the Indian & Chinese economies and others. These factors have major impacts on how businesses operate and make decisions. In the context of M&A for logistics sector, economic deregulation plays an important part. Economic deregulation has led to carriers such as airlines (Air France with KLM to in 2004) shipping lines (P&O Nedlloyd and Maersk in 2005) and network restructuring, mergers and consolidations (DHL and Exel in 2005, Schenker and Bax Global in 2006, EGL & TNT Logistics to form CEVA in 2007) in, greater efficiencies in the form of labor and equipment,...
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...professional limits individual flexibility in accepting such assignments and may hinder organizational flexibility in acquiring and developing talent. Some demographic changes in the workforce having their own implications to the HR managers. 2) Changing Employee Expectations Employees demand empowerment and expect equality with the management. Previous notion on managerial authority are giving way to employee influence and involvement along with mechanisms for upward communication and due process. If we look at the workers unions of Otis, Hindustan Lever, ICI TOMCO, Blue Star, Webel Electro and Central Bank. They rewrite their agenda to include quality and better customer service and even accusing the management of malpractices. 3) Globalization Many Indian firms are compelled to think globally, something which is difficult for mangers who were accustomed to operate in vast sheltered markets with minimal or no competition either from domestic or foreign firms. Indian firms need to move one end of each continuum to the other end. 4) Managing Diversity Its value is getting more important issue because of increase in the number of young workers in the workforce, increase in the number of women joining the workforce increase in the proportion of ethnic minorities in the total workforce increase in mobility of workforce international career and expatriates are becoming common, international...
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...industrial revolution stage. During this period mass production of clothing became a mainstream industry which resulted in a growth of the entire Textile-Mill Industry. The spinning and weaving process became mechanized with several new machines introduced to the industry with the majority of the power coming from water wheels. Additionally, the industries market began to expand as exports of textiles began to rise. Presently the Textile-Mill Industry is situated at the third stage known as the post industrial revolution stage. In the current stage the industry has experienced dramatic globalization, new trade policies, cheaper production cost, and new customer preferences. Globalization has drastically changed the Textile-Mill Industry as the transformation of regional economies, societies, and cultures have become integrated through a worldwide network of communication and trade. Globalization is a result of textile...
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...Globalization of business has led to changes in the global market environment. The United States has significantly transformed from being a manufacturing powerhouse as it now relies on importation of raw materials from other countries with upcoming markets. United States lost its self-sufficiency that it had in the past century especially during the Industrial Revolution. The integration of foreign made goods have made it easy for foreign workers to manoeuvre in different opportunities and pursue their American dreams because they are familiar with the goods thus making their work environments conducive (Weidenbaum, 2005). Moreover, this changed the perception held by majority of foreigners that United States is a melting pot of immigrants. These foreign workers take advantage of their knowledge about imported goods to penetrate the American markets further with the motive of advancing their skills and attract better wages and opportunities as a result. Unremitting importation of foreign made goods has affected American workers both positively and negatively. On the positive side, they get to learn new ideologies about manufacturing and global markets from the upcoming superpowers such as...
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...CHAPTER 1 GLOBALIZATION AND THE MULTINATIONAL FIRM SUGGESTED ANSWERS TO END-OF-CHAPTER QUESTIONS QUESTIONS 1. Why is it important to study international financial management? Answer: We are now living in a world where all the major economic functions, i.e., consumption, production, and investment, are highly globalized. It is thus essential for financial managers to fully understand vital international dimensions of financial management. This global shift is in marked contrast to a situation that existed when the authors of this book were learning finance some twenty years ago. At that time, most professors customarily (and safely, to some extent) ignored international aspects of finance. This mode of operation has become untenable since then. 2. How is international financial management different from domestic financial management? Answer: There are three major dimensions that set apart international finance from domestic finance. They are: 1. foreign exchange and political risks, 2. market imperfections, and 3. expanded opportunity set. 3. Discuss the three major trends that have prevailed in international business during the last two decades. Answer: The 1980s brought a rapid integration of international capital and financial markets. Impetus for globalized financial markets initially came from the governments of major countries that had begun to deregulate their foreign exchange and capital markets. The economic integration and globalization that began in the eighties...
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...Globalization has been around as long as trade had been happening. Trade between countries began to happen around the 17th century. (Lecture-mod 1) The USA has free trade agreements with Australia, Bahrain, Chile, Columbia, DR-CAFTA, Israel, Jordan, Korea, Morocco, NAFTA (Canada and Mexico), Oman, Panama, Peru and Singapore. (http://trade.gov/fta) Globalization started to affect our local community when the North American Free Trade Agreement with Canada and Mexico was enacted in January 1994. Soon after the Northa America Trade Act was set into motion, the China Trade Relations Act (Pub. L. 106-286) was signed. This occurred in 2000. Smith Corona manufactured typewriters, however, they were slow to update along with technology. As a result of their lack of progress, Smith Corona closed their doors in Cortland NY in 1992. This led to the loss of employment for 875 employees. The company moved their headquarters to Tijuana, Mexico to take advantage of cheaper labor after NAFTA was implemented. In their new location of Mexico they were able to manufacture keyboards, computer printers, and computer screens much cheaper than any production in the United States of America. (http://www.nytimes.com/1992/09/01/business/company-news-global-issues-weigh-on-town-as-factory-heads-to-mexico.html) Mexican employees, in Tijuana, were receiving $1.92 an hour; compared to the $11.00 an hour Cortland NY employees were receiving. Smith Corona spent $15 million moving to Mexico they believed...
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...Partnership: Worse than NAFTA? Septemb er 2013 Lori Walla ch Public Citizen’s Global Trade Watch Outcomes of 20 Ye ars of NAFTA, WTO, FTAs… Crushing of Americ an Middle Class: more than 5 million US manufa cturing jobs (1 out of 4) & 60,000 US manufa cturing fa cilities gone. Millions of service sector jobs offshored: c all centers, computer, programming, engineering, a cc ounting. Wage “arbitrage” in a ra ce- to-the- bottom. U.S. re al median wages at ‘70s levels. Income inequality at Robb er-Baron-era levels. When manufa cturing, good jobs go tax bases shrink – and schools, public services, infrastructure cut, and construction sector unemployment soars. Floods of unsafe imported food, products. Financial deregulation, instability and repe ated financial crises. He alth, labor, land use, other public interest laws around world atta cked in foreign tribunals. Some dump ed. Initiatives chilled. Billions extra cted from taxpayers and paid to corporations for violations of new “rights.” Drug prices up. In poor nations, de adly cut in a cce ss to meds. Rich nation higher prices slam poor consumers, govt budg ets as Big PhRMA profits soar. U.S. loses 170,000 family farms. In ‘12, volume of U.S. food exports only 1% higher than ’95 (when NAFTA-WTO started). Imports of food now 97% above ‘95 level. Livelihoods of tens of millions of pe asant farmers destroyed, mass migrations, hunger incre ased. Growth rates decline in nations that follow NAFTA-WTO model. U...
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...International business Fall 2012 NAFTA stands for North America Free Trade Agreement, and it was signed by Canada, Mexico, and the United States and went into effect on January 1, 1994. The basic purpose of NAFTA is to promote free trade by eliminating tariffs among the three countries. As related to GDP, it is the largest trading bloc in the world. NAFTA has two other parts: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). NAFTA was created to eliminate trade barriers and increase investment among the US, Canada, and Mexico, especially between Mexico and the United States. When NAFTA was implemented, tariffs on more than half of the tariffs on exports from Mexico to the US and one third of the tariffs from US exports to Mexico were immediately eliminated. Within ten years of 1994, almost all but a few agricultural US-Mexico tariffs were to be eliminated, and within 15 years all tariffs were to be eliminated. The real change of NAFTA was with Mexico, as most US-Canada trade had already been tariff free when NAFTA was passed. From the beginning NAFTA has been controversial, and there have been several studies about the effect of NAFTA, including studies done by the World Bank, and the Institute for International Economics. Assessing the effect of NAFTA is quite difficult, as the world economy and the economy of single nations are quite complex...
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...SQG1: Globalization In chapter 2 we are introduced to the concept of Globalization. After conducting some research and pursuing an opinion, I’ve realized how this chapter really just touches the surface to its much complex nature. Nicholson’s text doesn’t exactly provide us with a specific definition of what Globalization actually is. Perhaps the reason is because it’s so conceptually broad, and its scope of how the VAC interconnects from one country to another is also broad. For that reason I read an article written by David Held and Anthony McGrew titled Globalization. Their definition of Globalization is one that I agree defines not what globalization is, but best defines what it does. They define globalization as a set of processes, that embodies a transformation in the spatial organization of social relations and transactions, generating trans-continental or interregional flows and networks of activity, interaction, and power. What globalization is, isn’t as important as what it does. It is a benefit to society as it is a consequence. It is a truth, and also a paradox. The best way to form the answer of what globalization does is by understanding its dimensions. There are 6 defined dimensions of globalization. The first is its integration and interdependence of national economies. This is referring to how the aggregate activities to the value chain are used more frequently, and that it interconnects economies from other countries. This also harmonizes the fiscal policies...
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