...Paper received 100% grade. The Coffee Crisis “In 2004, the governments of coffee producing countries were considering how to respond to the dramatic decline in coffee prices” known as the coffee crisis (Capella University, 2011, p. 1). This coffee crisis was a result of four main factors: (1) the breakdown of the International Coffee Agreement (ICA); (2) the increased supply of coffee resulting from Vietnam’s entry into the market and Brazil’s technological advancements; (3) inelasticity of demand for coffee; and (4) movement from an oligopoly to a competitive market. The result, unfortunately, was a gap between the product market and resource market that needed—and still needs—to be addressed. Economic Implications of Operating in Different Market and Industry Structures In 1989, “roasters in the United States faced declining demand with the exception of gourmet coffees, but the ICA quotas required them to buy large quantities of relatively lower quality Brazilian beans” (Capella University, 2011, p. 3). As a result, “consuming nations, let by the United States, and high-quality producers, led by Costa Rica, demanded new quotas, and the negotiations over a new agreement deadlocked” (Capella University, 2011, p. 3) and the agreement ultimately broke down. Prior to the breakdown of the ICA, the coffee market resembled that of an oligopoly, which is defined as “a market dominated by a few large producers of homogeneous or differentiated product. Because of their...
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...ACADEMIC PAPERa Longitudinal patterns of comparative advantage in the textile complex – part 1 An aggregate perspective Peter Kilduff and Ting Chi Department of Consumer, Apparel and Retail Studies, University of North Carolina at Greensboro, North Carolina, USA Abstract Purpose – This paper seeks to present a preliminary investigation into long-term patterns of trade specialization among leading textile- and apparel-exporting nations, assessing patterns of comparative advantage across the textile machinery, man-made fiber, textile and apparel sectors of the textile complex to determine whether these conform with both trade specialization and industry evolution theories. A model of evolutionary change in intra-complex specialization is defined and evaluated. Design/methodology/approach – A revealed comparative advantage index is employed to evaluate international competitiveness for 30 nations over a 42-year period. With repeated measures, ANOVA is used, to determine the significance of the observed patterns across five income-defined groups of nations. Findings – Long-term patterns of specialization broadly reflect expectations of factor proportions theory and industry evolution models. Product and income group characteristics combine to influence comparative advantage. Higher income nations generally remain stronger in more capital-intensive sectors, while lower income countries have emerged to dominate labor-intensive sectors. However, inclusion of a more complex...
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...commercially in the temperate and tropical regions of more than 70 countries. Specific areas of production include countries such as China, USA, India, Pakistan, Uzbekistan, Turkey, Australia, Greece, Brazil, Egypt etc. where climatic conditions suit the natural growth requirements of cotton, which includes periods of hot and dry weather and adequate moisture obtained through irrigation. Cotton is harvested as ‘seed cotton’ which is then ‘ginned’ to separate the seed and lint. The long ‘lint’ fibres are further processed by spinning to produce yarn which is knitted or woven into fabrics. Trade theories International Trade * All economies, regardless of their size, depend to some extent on other economies and are affected by events outside their borders. * The “internationalization” or “globalization” of the U.S. economy has occurred in the private and public sectors, in input and output markets, and in business firms and households. The Economic Basis for Trade: Comparative Advantage * Corn Laws were the tariffs, subsidies, and restrictions enacted by the British Parliament in the early nineteenth century to discourage imports and encourage exports of grain. * David Ricardo’s theory of comparative advantage , which he used to argue against the corn laws, states that specialization and free trade will benefit all trading partners (real wages will rise), even those that may be absolutely less efficient producers. Mutual Absolute Advantage * Suppose that each...
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...Transforming a Brazilian National Champion into the World’s Leading Energy Exploration and Production Company Team 5: Todd Anderson Guy Gresham Gopinath Polavarapu Heraclio Rojas Alina Shastun Who is Petrobras? Background: • • • • Brazil’s national oil company and the largest in Latin America Petrobras accounts for 95% of Brazil’s national oil and gas production Ownership – Government (64%) and Private Sector Market Capitalization – fifth largest publicly traded energy company in the world Current Strategy: • • To be the world's largest oil producer by 2015 Plan to invest US$ 224 billion by 2014 – Drilling Rigs, Supply and Special Vessels, Production Platforms • Social Responsibility: economic, social and environmental improvement in Brazil Brazil’s Growing Role in Tomorrow’s Energy Market Global consumption will see a paradigm shift from developing economies to emerging. Global Energy Consumption 1990-2035 Future energy consumption will be driven by emerging markets (non-OECD) demand: – Emerging economies will consume 38% more energy than Developed (OECD) economies in 2020 and 67% more in 2035 Growing concerns over environmental risks Increased regulatory pressure for more safety and environmental regulation in drilling as well as distribution of oil Oil reserves are focused in geopolitically volatile regions The largest oil discoveries have come from Brazil’s offshore, “pre-salt” basins Pre-salt fields are estimated to hold 100 billion barrels of oil, enough to...
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...With the variety of counties’ needs, the lack of economy in some countries and the importance of trade, some countries made an agreement named by MERCOSUR to coordinate their economic policies to gain benefits which are not possible otherwise. The agreement was signed in March 1991, among the following countries: Argentina, Brazil, Paraguay and Uruguay which was updated in 1994. The agreement main aim is to promote the free-trade and ease the movement of goods and services as well as currency. The MERCOSUR organization is considered as the 4th largest economy in the world coming after EU, NFTA and Japan, with GDP of $ 2.895 billion. The MERCOSUR organization strengthens the economic structure by providing extra policy tool to fulfill and realize the desired target as well as helping its members to compete for attracting the foreign direct investment which has a potential effect in economy and mainly helps in developing the infrastructure of the country. The organization plays also an important role in empowering the diplomatic relationship among the organization members, since the members have agreed to sign this agreement that means also they have made a custom union among themselves which will help to increase the exports and imports of the country due to the common external tariff. The agreement helped the MERCOSUR organization members to recover impressively from the financial crisis especially in Argentina which made a growth rate of 9.2 and currency reserves, the bank sector...
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...McDonald’s Job Satisfaction Hai Viet Le haile1505@gmail.com MGMT 591-Leadership and Organization Behaviors Professor: Tad Hove Introduction McDonald’s is a one of biggest fast food company all around the world. They have more than 34,000 restaurants and serving around 69 million people over 119 countries each day. My position is with a team member as a crew of one of McDonald’s restaurant. Their main focus is improving performance by implementing changes to increase productivity. These changes can include improved validation rules for approving financial content to new software implementations to increase productivity. McDonald’s Corporation directly about 15% restaurant, they develop their business thought franchise agreement. By collection franchise fees and marketing fees help them have more chance to bring their restaurant go around the world. With some agreements in the contact, they make sure that the franchisee follow their rule that they have to build all of restaurant is exactly the same with the order. McDonald’s Corporation a. Brief History “Dick and Mac McDonald opened their eponymous burger stand in 1948 in San Bernardino, Calif. Under the guidance of Ray Kroc, a onetime milkshake-mixer salesman wowed by the restaurant's success, McDonald's franchises grew swiftly: by the end of the 1960s, there were more than 1,000 across the U.S. The first international franchise opened in 1967 in British Columbia” (James, 2009). On the other hand, with the creation...
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...their normal conditions. Situs Inversus is caused by an autosomal recessive genetic condition. An unaffected carrier mother and an unaffected carrier father have 1 in 4 chance in having a child with Situs Inversus. The primitive loop in the embryo moves into the reverse direction of its normal position during the fetal development,causing displacement of organs. It is possible that some humans don't experience complications,but some can experience cardiac dysfunction or primary ciliary dyskinesia. The Dasilva family from Rio de Janeiro,Brazil, suffers from the genetic condition called Hexadactyly. The presence of an extra digit,a sixth finger or toe,which is a very common malformation, or also known as birth defect. Sonic Hedgehog gene activates the mutation,which provides instructions for making proteins. However, it provides an chemical signal that is essential for embryonic development; it plays a role in cell division,cell specialization,and normal shaping of the body. A random mutation leads to the development of an extra finger and can lead to a continuous generation throughout the family. However,there are no symptoms for Hexadactyly, but an extra finger or toe. Genetic disorders can exist anytime,anywhere. They can be very mortal to a human's life.Even though all humans reproduce the same way,they may develop differently throughout the nine months of gestation. ...
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...I Volleyball Volleyball is a team sport in which two teams of six players are separated by a net. Each team tries to score points by grounding a ball on the other team's court under organized rules.[1] It has been a part of the official program of the Summer Olympic Games since 1964. The rally continues, with each team allowed as many as three consecutive touches, until either (1): a team makes a kill, grounding the ball on the opponent's court and winning the rally; or (2): a team commits a fault and loses the rally. The team that wins the rally is awarded a point, and serves the ball to start the next rally. A few of the most common faults include: * Causing the ball to touch the ground outside the opponents' court or without first passing over the net; * Catching and throwing the ball; * Double hit: two consecutive contacts with the ball made by the same player; * Four consecutive contacts with the ball made by the same team. * Net foul: touching the net during play. The ball is usually played with the hands or arms, but players can legally strike or push (short contact) the ball with any part of the body. History On February 9, 1895, in Holyoke, Massachusetts (USA), William G. Morgan, a YMCA physical education director, created a new game called Mintonette as a pastime to be played preferably indoors and by any number of players. The game took some of its characteristics from tennis and handball. Another indoor sport, basketball, was catching on...
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...1 Introduction "No two countries that both had McDonald's had fought a war against each other since each got its McDonald's.” This quote of Thomas L. Friedman, a well-known US-American foreign affairs and globalization expert, shows two of the main results of globalization: Companies that are becoming more international and a world in which the countries start cooperating more and more instead of fighting wars. People start in-teracting borderlessly and politicians and newspapers mention the “world community.” There are mainly three forces that are contributing to the process of globalization: the liberalization of capital movements, the opening of global markets to trade and invest-ment, and the increasing use of information and communication technologies. If you want to define globalization you have to emphasize that Globalization is a multi-dimensional phenomenon that not only touches political, economic, social and cultural spheres of any society but also reshapes the traditional way of studying the “social world and human nature” first. At political and economic level, globalization is the process of denationalization of markets, politics and legal systems, it is the rise of global economy. Good examples for this development are e.g. the European Union or the negotiations of the European Union with the United States to create the biggest trade zone of the world. At the business level, globalization is when companies decide to take part in the emerging global economy...
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...same time it is harder for managers to communicate and maintain the diverse group of people. With a mixture of employed people the motivational needs for one employee could be a complete 180 degree difference for the other. For instance, if an employee is more financially stable they require more intrinsic rewards, compared to an employee that is living pay check to pay check, will make extrinsic rewards a necessary. This makes a managers job very difficult to satisfy every employee with limited resources. Employing people from all different cultures is great marketing strategy but, an even greater motivational struggle for managers. The use of organizational structure is there to guide employees through the chain of command, job specialization and job enlargement. There are...
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...osary GLOSARY GLOBAL TRADE: The worldwide business that involves making and collecting payments for transactions in goods and services, and transporting them to interested markets. The overall reduction of global trade barriers and the ease of advertising to foreign markets via the Internet have increased the potential for a company doing business outside one's home country. INTERNATIONAL TRADE: The exchange of goods or services along international borders. This type of trade allows for a greater competition and more competitive pricing in the market. The competition results in more affordable products for the consumer. The exchange of goods also affects the economy of the world as dictated by supply and demand, making goods and services obtainable which may not otherwise be available to consumers globally. REGIONAL TRADE: A regional free trade agreement removes all barriers to trade and foreign investment, meaning that poor economies are not allowed to use import tariffs to protect their growing industries or their farmers from floods of cheap imports. GLOBALIZATION: The worldwide movement toward economic, financial, trade, and communications integration. ANTI-GLOBALIZATION: Movement whose participants are opposed to capitalism and globalization. The philosophy of the movement is based on the belief that individuals and organizations can achieve social, personal and economic goals without the negative consequences associated with capitalism. The anti-globalization movement...
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...Organizational Structure: Walmart Michele Hileman MGT/230 June 15, 2015 Opening its doors in Rogers, Arkansas, Walmart started a profitable business in 1962. The founder, Sam Walton, could never have envisioned where his company would be in the present. Earning approximately $30,000 in 1962, Walmart has evolved into a multibillion dollar company earning over $15 billion in 2011 (Walmartstores.com, 2012). This evolution could not have come without careful planning, strategic implementation, and control of its business processes. These factors are the deciding factor in choosing the correct organizational structure. Taking cues from its needs, Walmart has a created a hierarchal structure that is departmentalized to leverage the skills and strengths of the employees involved in the department. Spearheading the organization is Chief Executive Officer (CEO) Mike Duke. The CEO is responsible for overseeing many departments including corporate affairs, human-resources, and international affairs just to name a few. All sectors that the CEO oversees are; ASDA Stores, the United Kingdom counterpart to Walmart; global e-commerce; finance; information technology; corporate affairs; legal; merchandise, and replenishment; global customer insights; human resources; sourcing; international; Sam’s Club; and United States Walmart (Walmartstores.com, 2012). Some departments are further split to handle different activities efficiently. ASDA is headed by its own CEO, Andy...
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...Global Strategic Management & Innovation Globalization Identify and describe the factors that have been pushing for Globalization and those that have been pushing against Globalization. Use examples where applicable. Globalization is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. It is clear that globalization is something more than a purely economic phenomenon manifesting itself on a global scale. Among the visible manifestations of globalization are the greater international movement of goods and services, financial capital, information and people. In addition, there are technological developments, more international cultural exchanges, facilitated by the freer trade of more differentiated products as well as by tourism and immigration, changes in the political landscape and ecological consequences (Martens, Pim; Raza, Mohsin.2010). The largest companies are no longer national firms but multinational corporations (MNC) or sometimes called Transnational Corporations (TNC). These companies have factories that manufacture products and have offices that sell products in different countries with subsidiaries in many countries. With Globalization there are positive and negative aspects. These aspects determine whether there will be resistance or acceptance to changes of the status quo. Four factors that push Globalization have been identified as: Political Factors This...
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...| Education | | | | | | | | | | | Tertiary attainment in population aged 25-64 | % | .. | .. | .. | .. | .. | .. | 10.9 | .. | | Expenditure per student: non-tertiary, 2008 prices | USD constant PPPs | .. | .. | .. | .. | .. | 2 097.7 | .. | .. | | Expenditure per student: tertiary, 2008 prices | USD constant PPPs | .. | .. | .. | .. | .. | 11 610.3 | .. | .. | | Employment | | | | | | | | | | | Employment rate in population aged 15-24 | % | 50.8 | 52.4 | 52.7 | 52.6 | 52.9 | 53.4 | 51.5 | .. | | Employment rate in population aged 25-54 | % | 74.0 | 75.4 | 75.9 | 76.3 | 76.1 | 77.0 | 76.9 | .. | | Employment rate in population aged 55-64 | % | 52.2 | 52.6 | 54.1 | 54.1 | 53.7 | 55.1 | 53.8 | .. | | Incidence of part-time employment | % | 18.0 | 18.2 | 19.0 | 19.2 | 18.3 | 18.1 | 17.8 | .. | | Self-employment rate: total civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Self-employment rate, men: male civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Self-employment rate, women: female civilian employment | % | .. | .. | .. | .. | .. | .. | .. | .. | | Unemployment | | | | | | | | | | | Unemployment rate: total civilian labour force | % | 12.3 | 11.5 | 9.8 | 10.0 | 9.3 | 7.9 | 8.1 | 6.7 | | Unemployment rate, men: male civilian labour force | %...
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...Contents Summery 3 Comparative Advantage theory 4 Theory of comparative advantage 4 Example situation of comparative advantage 5 Examples (Brazil, India, China -Russia) 6 Infant Industries 8 Operation of Capitalism 10 Conclusion 13 Recommendations 14 Bibliography 15 Summery The purpose of this report is to gain an understanding of different theories, ideas behind them and to show examples of how they are implemented. Report outlines the limitations to the idea that countries should be allowed to protect infant industries, like limiting it to a domestic market. Report also looks at Comparative Advantage theories explanation to countries varied fortunes, including the International trade theory and underlining the economic growth, because of the foreign trade. The last question that the report outlines is the economists believes on capitalism in regards to maximising welfare. As a result of the report it was decided to recommend the integration of producers of data categories into international chain. Comparative Advantage theory • How does the Comparative Advantage theory explain countries’ varying fortunes? Use examples to explain your answer. International trade theory International trade plays an increasingly important role in economic development. Throughout the post-war period be volumes of world trade rapidly increased, and their environments- Annual growth (1.5 times) faster than the global the first volume of production. As a result, on...
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