...and government issues. One ethical issue was when the country was having a viral epidemic they forced the foreign company to breach their contract to supply enough medication to save peoples lives. In this issue some practical considerations to take into account would be the outcome of taking legal action against the company while the country is in that state of emergency. In the end it could cause bad publicity and ruin the partnership and damage further profits for your company through the partnership. In this case the issue is to overcome the legal breach of contract and make the decision for the greater good of the company. A second issue would be change of rule or government in a foreign country. In the simulation the foreign country changed from a dictator to a democracy changing their government entirely. By doing this it could change local law causing the contract to be null and void. Taking these changes into consideration your company would need to study their local laws and stay up to date to ensure the best for the company. In the simulation the foreign government decided to start making a generic brand of your product. In that situation the best option would be to attempt to sublicense out your medication to ensure that you are still making some form of profit. The only down side is the amount of training and funds it would take to ensure that other companies are staying in compliance with your quality standards. Also in the simulation you ran across a scenario...
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...No. 12/2 July 2012 Rabobank Working Paper Series Sovereign credit ratings An assessment of sovereign ratings provided by Moody’s, S&P and Fitch Authors: Joep Pennartz, Jan Pieter Snoeij The views expressed in this paper are their own and not necessarily those of Rabobank. Contact: Joep Pennartz and Jan Pieter Snoeij wrote this working paper as a part of an internship at Rabobank. For further information please contact their supervisor at Rabobank’s Economic Research Department: S.A.Kamalodin@rn.rabobank.nl Editors: Allard Bruinshoofd, head of International Economic Research Shahin Kamalodin, economist 1 “There are two superpowers in the world today in my opinion. There’s the United States and there’s Moody’s Bond Rating Service. The United States can destroy you by dropping bombs, and Moody’s can destroy you by downgrading your bonds. And believe me, it’s not clear sometimes who’s more powerful.” (Friedman, 1996). Introduction Credit rating agencies (CRAs) are of major importance in international financial markets. Their prominence is explained by the myriad number of traded fixed income securities; one simply cannot assume that every market participant has the resources to assess the credit risk of each borrower. That is where CRAs step in; they distil public and private information into a simple credit rating. The informative value of these credit ratings lowers information asymmetries and enhances transparency and liquidity (Katz, Salinas...
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...Università degli studi di torino | Rating agencies and financial speculation | An analysis of the protagonists of the world market | | Elisa Valenti | Matricola 711323 | | INDEX The protagonists of the world market | 2 | A particular source of power: rating agencies and country rating | 2 | Conflict of interest? | 4 | Other issues of concern * Barriers to entry and lack of competition * Transparency | 555 | The importance of reputation | 6 | What went wrong? | 7 | The need for regulation | 7 | Can we trust the rating agencies? * The Enron Case Study * The Parmalat Case Study | 889 | Are rating agencies guilty? | 12 | The sinister power of rating agencies | 13 | A world without rating agencies | 14 | Conclusions | 15 | References | 16 | The protagonists of the world market A rating agency is a private firm which publicly evaluates a company capacity to repay the debt issued. This capacity is classified using a scale that goes from a maximum of AAA and a minimum of DDD. Obviously the evaluation received influences the interests that a company has to pay to receive credit. Today the rating market is controlled by three giants, the so called “three sisters”: Moody’s Investor Service, Standard & Poor’s and Fitch . Till the 70s rating agencies were not making high profits, but today they are extremely relevant such that in 1996 the New York Times was writing that there were just two powers in the world, the United...
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...The Canonization of the New Testament When we think about the New Testament in our Bibles today most of us pay little attention to, or have little regard for the history that surrounds how it came to be. This is partly because of the high position we as Evangelicals have for our Bibles. We are taught that the Bible is infallible and never contradicts itself. I agree whole heartedly that the Bible is God's Holy Word and infallible non contradictory. But two weeks ago if you were to ask me how the Bible was put together or "canonized", I would have told you that there was some sort of council that decided which books should be in there, but ultimately it was God's sovereign will. Now the last part would be correct, but the rest is at best debatable. So how was the Bible put together? Since the argument is extremely complex and much of the details are lost or were never recorded, we will be exploring the different events that drove the movement, along with several different opinions of when the Bible was Complete or Canonized. There were two particular movements during the second century that made the Church realize a need to have a compilation of books that were universally accepted. The first movement, although not as well know, was Marcionism. This heretical sect was started by Marcion who was born into Christianity but had a deep dislike for Judaism and the material world. He believed that the God and Father of Jesus are not the same as the creator Yahweh, and it was...
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...1. Given its strategy, what kind of risks does Wellfleet Bank face? Wellfleet Bank faces a variety of risk in its daily operations. Risk faced by Wellfleet Bank associated with this case study includes market risk when there are changes in interest rates, exchange rates and other prices. This is especially true for Wellfleet Bank because they are considering a $1 billion loan to Gatwick Gold Corporation (GGC), a South African gold producer. Additionally, operational risk are linked through Wellfleet Bank's daily activities that include auditing, monitoring and support systems. An example of operational risk for Wellfleet Bank would be when the group head of client relationships and the deputy group chief risk officer disagreed over a proposal, then the Chief Credit Officer would take the ultimate decision. Credit risk will be directly and indirectly affected by exchange rates, interest rates and gold prices. Moreover, foreign exchange risk and country or sovereign risk would directly impact Wellfleet Bank's operations because it is an international organisation that has expanded operations to 78 countries (Lange, Saunders, Anderson, Thomson & Cornett 2007, pp. 96). Other risk faced by Wellfleet Bank includes interest rate risk when maturities of its assets and liabilities are mismatched. Off-balance-sheet risk as a result of their contingent assets and liabilities. Technology risk when there are technological investments. Liquidity risk when they are sudden surge in liability...
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...http://docslide.us/documents/individual-examination-bt-plc-m31005.html Individual Examination: British Telecom Cape Town CONTENTS 1 Executive Summary On the surface it would appear that British Telecom has addressed each area of TQM in their effort to implement a QMS system. They have had good financial results. Their people/staff satisfaction is high. Their customer satisfaction index high and are termed “loyal”. What really happened was that they had not implemented TQM correctly. In their attempt to focus on the customer they had neglected their staff. During Project Sovereign BT lost 130 000 staff members. This may have been because the strategy and vision was not shared with all the staff. The outcome was however that they probably lost many good people. The main component that was missing from their TQM implementation was Systems Thinking. They did not implement a system that allowed issues which required improvement to become new projects. Thus even though they claimed they were continuously improving, there were very few new initiatives. Prepared by: Deon du Plessis Page 2 of 19 Created on 04/04/15 Individual Examination: British Telecom Individual Examination: British Telecom The solution will be to become a true BSPM learning organisation. This will involve some more changes to the structure where the continuous improvement projects will be programme managed across the value chain. 2 Question1: What role has the Quality Management...
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...Rating agencies and their excessive power: Why are they so powerful? By Nadezhda Peneva American University in Bulgaria, EMBA, Cohort 13 NIP147@aubg.bg March 21, 2014 Abstract The paper is set out to find out the influence of credit rating agencies on the business and the national policies as well as to elaborate on how powerful are they for the society and why. Over 100 years rating agencies demonstrate excessive power, but is this just an assumption or it could be a strong conclusion? In the paper the role and power of the rating agencies like Standard and Poor’s, Moody’s and Fitch would be defined and assessed. 1. Introduction Credit Rating Agencies (CRAs) could be generally defined as „providers of opinions about the creditworthiness of companies and countries which have become very important players in financial markets due to growth in Capital Markets, Credit Derivative Markets, Globalisation of Capital Markets; and an increase in Regulatory Use of Ratings” (Ryan, 2012). Here comes the question: Why actually they have become very important players globally? CRAs are companies who assign credit ratings for the debt of public and private companies who are issuers of certain types of debt obligations and also CRAs assign credit ratings for debt instruments themselves. Usually the issuers of securities are companies, governments, NGOs and entities with special purposes or national governments...
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...May 19, 2008 Criteria: Sovereign Credit Ratings: A Primer Primary Credit Analysts: David T Beers, London (44) 20-7176-7101; david_beers@standardandpoors.com Marie Cavanaugh, New York (1) 212-438-7343; marie_cavanaugh@standardandpoors.com Table Of Contents Criteria Update Rating Basics Ratings Methodology Profile Local And Foreign Currency Rating Distinctions Rating Changes Sovereign Ratings Compared To Nonsovereign Ratings Historical Default Trends Appendix: Sovereign Default Definitions And Emergence From Default www.standardandpoors.com/ratingsdirect Standard & Poor's. All rights reserved. No reprint or dissemination without S&P?s permission. See Terms of Use/Disclaimer on the last page. 1 648990 | 300000861 Criteria: Sovereign Credit Ratings: A Primer Criteria Update Sovereign credit ratings reflect Standard & Poor's Ratings Services' opinions on the future ability and willingness of sovereign governments to service their debt obligations to the nonofficial sector in full and on time. Ratings coverage continues to expand, with the 118th sovereign rating recently assigned to the Emirate of Ras Al Khaimah (see "Sovereign Ratings And Country T&C Assessments," updated regularly and available on RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com). This criteria article replaces an earlier article of the same name, which was published on Oct 19, 2006...
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...Starbucks – Going global fast case study Prashansa Sunuwar King’s College affiliated with Westcliff University BUS 367 The Necessities of International Marketing and Culture Dr. Thien-Huong T. Ninh March 20, 2016 Abstract This paper addresses the various factors and risks that a company has to face while going global. This report is based on the case study focused on Starbucks. It answers various questions regarding issues that an international company like Starbucks has to face. The answers incorporate the elements that are both controllable and uncontrollable when a business is going global. The sources of risks that Starbucks is facing and what can be done to eliminate the risk are provided. Also, there are few suggestions regarding what Starbucks can do to improve profitability in Japan. Starbucks – Going Global Fast Case Fifteen years ago, Starbucks had 17 coffee shops in Seattle. Now, it has 19,000 outlets in 58 countries. According to the official website of Starbucks, Starbucks serves a wide variety of hot and cold drinks including espressos, cappuccinos, and even pastries and other delectable treats. Starbucks has become a meeting place for people. People go to Starbucks to chat, meet up, and even for meetings and rejuvenation. The success of Starbucks grew after Howard Schultz purchased Starbucks on 1981 and introduced Italian coffeehouse tradition in the United States in 1983. After Starbucks went public, the sales have increased by an average of 20 percent annually...
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...Asymmetric Shocks, Long-term Bonds and Sovereign Default1 Junjun Zhu, Shiyu Xie School of Economics, Fudan University January 2011 Abstract: We present a sovereign default model with asymmetric shocks and long-term bonds, and solve the model using discrete state dynamic programming. As result, our model matches the Argentinean economy over period 1993Q1-2001Q4 quite well. We show that our model can match high default frequency, high debt/output ratio and other cyclical features, such as countercyclical interest rate and trade balance in emerging countries. Moreover, with asymmetric shocks we are able to match high sovereign spread level and low spread volatility simultaneously in one model, which is till now not well solved. As another contribution of our paper, we propose a simulation-based approach to approximate transition function of output shocks between finite states, which is an indispensable step in discrete state dynamic programming. Comparing to Tauchen’s method, our approach is very flexible in transforming various econometric models to finite state transition function, so that our approach can be widely used in simulating different kinds of discrete state shocks. JEL Classification: E44, F32, F34 Keywords: Sovereign Default, Asymmetric Shocks, Transition Function, Long-term Bonds 1 Corresponding authors: Junjun Zhu, Ph.D candidate at School of Economics, Fudan University, No. 200 Guoquan Road, Shanghai 200433, China. Shiyu Xie, professor at School of Economics...
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...David and Goliath World Trade Organization Case Study Jay Cohen and two friends established an online gaming site on the islands of Antigua and Barbuda; they named the organization World Sports Exchange (WSE). Mr. Cohen was prosecuted by the U.S. government; his conviction resulted in a battle between the U.S. and the two small Caribbean islands of Barbuda and Antigua. The epic battle of David and Goliath was mediated by the World Trade Organization (WTO) and raised a lot of interesting questions about international trade and internet gaming (Steiner, Steiner, 2009). The following case study analysis will describe the central issue of the case and the relevant facts, as well as the external operating environments that WSE had to contend with. Furthermore the paper will provide possible solutions for the matter in the short and long term. Central Issues and Relevant Facts The primary issue seems to be that WSE was profiting from U.S. consumers and the U.S. government was not receiving any benefit. Sports organizations were upset and the country’s “social morality” was being attacked, or at least that was the opinion of the supporters of the Unlawful Internet Gambling Enforcement Act (EIGEA) of 2006. The bottom-line is that Mr. Cohen was not breaking any laws within the country that his business operated in. The U.S. clearly overstepped its bounds and did not conform to the General Agreement on Trade in Services (GATS) that all WTO organizations ratified in 1995 (Steiner, Steiner...
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...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...
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...international business and the role of government as a factor of production, which firms must manage in their international valueadded chains. Based on a model oi business political behavior, various propositions are developed regarding the interactions among firm, industry, and nonmarket factors as well as the impact they have on various forms and intensities of political behavior, as affected by strategic objectives. Finally, the sfrategic-theorizing implications of such behavior are discussed in the context of the recent emphasis on resource-based models of strategy management. Research in international business (IB) is much more infused with a consideration of political factors than its domestic counterpart. Authors of IB studies have constantly mentioned and even emphasized government as a variable, rather than a constant or given, because international firms (exporters, importers, licensors, foreign direct investors, etc.) operate under a great variety of evolving political regimes that have an impact on these firms' entry, operation, and exit. When IB topics were first researched in a policy-oriented manner, Fayerweather (1969) stressed "the accommodation of interests and the resolution of conflict" between international firms and political actors at home and abroad as one of the four key decision areas in this policy field—besides those concerning the transmission of resources, relations with host societies, and the handling of fragmentation and unification...
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...2008 FRM® Examination Study Guide Topic Outline, Readings, Test Weightings The Study Guide sets forth primary topics and subtopics under the five risk‐related disciplines covered in the FRM exam. The topics were selected by the FRM Committee as topics that risk managers who work in practice today have to master. The topics are reviewed yearly to ensure the FRM exam is kept timely and relevant. FRM Examination Approach The FRM exam is a practice‐oriented examination. Its questions are derived from a combination of theory, as set forth in the readings, and “real‐world” work experience. Candidates are expected to understand risk management concepts and approaches and how they would apply to a risk manager’s day‐to‐day activities. The FRM examination is also a comprehensive examination, testing a risk professional on a number of risk management concepts and approaches. It is very rare that a risk manager will be faced with an issue that can immediately be slotted into one category. In the real world, a risk manager must be able to identify any number of risk‐related issues and be able to deal with them effectively. Readings Questions for the FRM examination are derived from the readings listed under each topic outline. These readings were selected by the FRM Committee to assist candidates in their review of the subjects covered by the exam. It is strongly suggested that candidates review these readings in depth prior to sitting for the exam...
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...and space. The strong emphasis on positive law in the field of international law during the 18th century led to a decline in the persuasion of natural law and the customary law in the western world. In particular, the doctrine of terra nullius serve to reduced indigenous rights and delegitimize their customary law. Across much of the globe, there has been increasing awareness of the significant role of the customary law in natural resource governance over the past two decades. Many authors suggest that recognition of the customary law may be significant for the sustainable use of the resources of our planet. As Bosselman and Orebech comment, the use of customary law may not always result in sustainability, as is also the case with the statutory law, but its study can provide influential insight...
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