...subsidiaries, not only specializes in fried chicken but is also the leading brand for it. KFC China, since its inception, has been growing at a very fast pace. It has taken astute strategic steps to establish itself in China. It had various key competitive advantages which permitted it to expand to more than 4000 outlets in China (Bell and Shelman, 2011). The company hired a managerial team from Taiwan which had an experience of more than 15 years in the fast food industry (Cho, 2009). It introduced a new concept of high-end, modern and western fast food in China. People considered KFC to be a nice place where they could take their dates. The Chinese love fried chicken, which is probably one of key reasons it has a competitive advantage over the beef focused MacDonald’s, with a ratio of 2:1 unprecedented anywhere else in the world (Cho, 2009). It also catered to local tastes by localizing its menu to suit the Chinese and acquired East drawing- a chain which serves local food. KFC china is also known for its frequent product releases. KFC also dealt with China’s dynamic and rapidly changing business environment by establishing its own supply chain and owning most of the chains instead of giving franchisees like it operates in the US. This was mainly to protect itself from the problems it could face by getting off on the wrong foot with the local partners. (Bell and Shelman, 2011) However, in 2012, KFC china saw its sales fall for the first time and a significant number of people have over...
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...Many firms relied on short term credit market to fund products. However, when many prestigious institutions declared bankruptcy in 2008, the media spread the news rapidly, resulting in a sudden decline in confidence from investors, and less capital flow. Investors’ sensitivity to shock and panic resulted in a sudden decrease in liquidity, which firms heavily relied on. The failure of one firm offset the risk of contagion, and led to failures of many other firms. Another cause of the crisis is the quality of financial assessments and securities. Credit-rating companies, issuers and investors were all too optimistic about investments. Many firms held securities containing highly positively correlated risks, and failed to diversify their portfolio to decrease risk. Thus, their operations ran on very risky investments that were incorrectly evaluated by credit-rating companies. As a result, these toxic financial assets are a major cause of failure of many firms. The influence of foreign investments also caused the financial crisis. Counties with large trade surplus with the US, such as China, preferred safe investments. They bought huge amounts of treasure bonds, and pushed rate of yield down. As a result, foreign investors started to invest in mortgage market related securities. This huge amount of foreign investment gave US mortgage firms more money to lend out; thus, raising the price of housing. In response to the abundance of investments, lenders became overly optimistic...
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...Introduction There have been some major financial crises in the world in the recent past. The crisis are the European Monetary System that occurred in 1992-1993, The Mexican crisis 1994-1995, the Asian crisis 1997-1998 and the recent global financial crisis 2007-2009. The recent financial crisis has affected the international trade. The financial crisis began in the United States in 2007 in the housing market resulting in foreclosures. The crisis continued to grow and eventually turned into a global financial crisis as well as an economic crisis. As a result, some major banks, insurance companies and investment houses faced bankruptcy while others needed financial aid to continue operating. Many businesses involved in the international trade have been struggling in their financial management during the credit crunch because a business is supposed to remain successfully even during crisis times. The managers in businesses involved in the international trade have had to make decisions to help their organizations stay afloat during the financial crisis. Economists are of the opinion that a financial crisis results from feeble economic fundamentals for instance, fiscal deficit, reduced foreign reserve and increased foreign debt among others. The financial crisis eased in 2009 but its effects were felt globally. The effects on the international trade occur because of the trade links among countries at the global market through a contagious effect (Glick & Rose, 1999). The contagious...
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...significant contribution to global GDP growth => Once a key contributor to GDP, China lost footing to the west due to technological efficiency in the US, UK, and Europe => The four tigers (HK, SG, KR, TW) had 8% growth rates from 1970-1997 due to high saving/investment rates, strong education, stable macro environment, and few downturns => Success of East Asia as a whole due to the aforementioned factors as well as limited price distortions, agricultural development, foreign tech, directed credit, selective industrial promotion, and export push policies => Key weaknesses prior to the 1997 crisis were a lack of increase in output efficiency, poor banking regulations and poor legal frameworks Asian Crisis of 1997 => 1) western investors loaned money to east Asian banks (believing growth would continue and that the IMF would bailout if needed) 2) money was funneled into projects with cheap credit and no collateral 3) projects didn’t have good returns and currency speculators started to sell east Asian currencies 4) triggered drop in baht value leading to overall concern => TH, ID, KR, MY, and lesser extent PH were hammered by the crisis => SG and HK survived due to high reserves and strong economic fundamentals => other countries escaped either because their currencies were not convertible or because they weren’t exposes to foreign portfolio flows => ‘sudden stop’ due to 1) liquidity crisis (bank run) and panic-selling and 2) vulnerabilities...
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...threatened by cheap Chinese imports deal with the threat? Introduction It is never less than a challenge to attempt to understand the cultural factors which influence a nation’s conduct in the international arena. When that nation is China and the subject of introspection is its relations with India, such an endeavour can at best be fraught with far too many variables. The two have had the longest uninterrupted existence as nations. Their combined size and population makes them the largest geographical and human resource mass on the planet. India and China have had cultural, religious and trade links going back centuries in history. They also came into being as nation states almost simultaneously in this century, They also share a past of colonial and imperialist subjugation from which freedom had to be won with a major struggle, Paradoxically enough, the two countries fought a war with each other over disputed frontiers. That conflict episode, the continuing border dispute between the two countries and China’s rapid growth in military power, not unsurprisingly create anxieties about the future relationship. China’s aggressive foreign policy postures also do not encourage a benign view of it. There are enough strategic thinkers in India who reckon China to be the major future threat to India. In my presentation, I am going to focus on the trade aspect of this threat to India from the Chinese products that...
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...Examen #1 1. Are the Chinese domestic vehicle producer’s strategies good enough to be implanted in another country? With this few arguments is very difficult to determine if the strategies used by the Chinese are good enough to be implemented in another country. What is true is that the automotive industry in China represents an extraordinary case of industry development. In recent years, China has become the world’s fastest growing automotive producer despite the global economic situation. the domestic Chinese auto industry has made substantial progress. Many independent domestic automotive manufacturers have emerged and have ambitions to make cars for developed countries. Although they have to overcome difficulties, such as creating their own designs and meeting world standards in terms of product quality, safety, and environmental features, the domestic manufacturers are expanding their market share and moving up the value chain. Moreover, among the leading vehicle producers, China has been the only one showing substantial and continuous growth in its production level. Apparently the quality of Chinese cars is good, because their price devaluation over the years is less than other car from another country, particularly American cars. People all over the world trust Chinese cars. With this being said, I think their strategies are good enough to be implemented in other countries. 2. What type of leader do they need to deal with such strategies? To deal with...
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...Imperial Rome and Han China were two of the most powerful empires to ever exist. In order to maintain their positions of political power, it was imperative that the rulers of each empire had a way of maintaining unity and controlling the populace. Though they had different forms of government- Rome was a republic, which allowed the people some influence, and Han China was a bureaucracy with one overall leader -each had a unique approach of asserting political control among the population, using varying forms of religion, centralized government, and entertainment for the citizens. 1- Religion: Politically and culturally, religion played an extremely important part in providing political control for both Imperial Rome and Han China. However, both the religions and the way they were used to benefit each empire varied greatly in order to serve the...
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...explain what happens when there is a surplus of imports brought into the United States, and the specific example used will be China trade surplus as it jumped in July 2012. China exports to the United States rose 13.6% to $165.3 billion and their exports to Europe fell 0.8%. The increase in the surplus of imports causes businesses to have more products to offer consumers, lower the prices of the products, and leads to consumers purchasing more products. Purchasing more products increases the revenue for businesses, and causes major movement of money. The next topic that will be discussed is the effects of international trade to GDP, domestic markets, and university students. International Trade helps our government and markets earn income from foreign countries. International Trade affects university students by offering school supplies such as computers more affordable because they are made and sold at a cheaper rate. University students are able to achieve a higher education when the school supplies are produced in a domestic market where the college student resides, and leaves the student more money for tuition. A government choice on tariffs and quotas has different affects on international relations and trade. A tariff is simply explained as a tax that increases the cost of all imported goods. Any country can impose a tariff on any good, for example if China believes that the United States has wronged them they can impose a tariff on shoes imported from the U.S which will raise...
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...Report on the development of The Coca-‐Cola Company from February 2014 until January 2015 Introduction This report is intended to give a clear insight in The Coca-‐Cola Company’s development from February 2014 until January 2015. First, the company’s history and products are briefly described. Second, its market development and share price performance are discussed. Finally, investors are provided with a speculation on the company’s future. Company History & Products The Coca-‐Cola Company, founded by Asa Candler who was able to promote Coca-‐ Cola nationwide, has become the major player in the soda industry throughout the years. The company markets more than 500 beverage brands. Examples are Coca-‐Cola, Sprite and Fanta, which are non-‐alcoholic sodas. Also, the company offers a variety of non-‐carbonated beverages, such as juices, energy drinks, sports drinks, waters and enhanced waters. Market Development ...
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...examines their international effects referring to the current and prospective market situation. The group meets once in each two years. The IGG on Meat was established by the Committee on Commodity Problems (CCP) at its Forty-fifth Session in 1970. Dairy products were included under the mandate of the Group in 2002. Membership in the Group is open to all Member Nations and Associate Members of FAO, including Observers from international organizations and institutions. Nearly all importing and exporting countries of meat and dairy products are Members of the IGG. SLIDE 2 Prices rise in the face of limited availability on the international market. International prices of dairy products began to strengthen in mid-2012, reversing the steady decline that had characterized the previous 12 months. The change in trend resulted from a tightening of supplies to the world market. Availabilities are anticipated to be finely balanced until at least the end of the year. The FAO international dairy products price index (2002–2004=100) stabilized at 173 during June and July but had risen to 194 by October. Prices strengthened for all the products that constitute the index, especially skimmed milk powder (SMP) which registered an increase of $562 per ton, or 20 percent, after its mid-year low. In the same period, whole milk powder (WMP) prices also rose, by $425 per ton or 15 percent, as did quotations for butter, which were up $400 per ton or 14 percent, and cheddar cheese, which increased by...
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...population limit? Tackling the overpopulation crisis may at first seem like an impossible feat, however a few small-step measurements can be taken in order to help curb the growth rate. By enacting a new law that increase taxes for Americans who choose to have more than one child, we will be providing a successful deterrent to overpopulation. Those that choose not to abide will be creating new tax-revenue, which can be aimed towards renewable energy and resource conservation projects. The long road towards passing this sort of law wouldn’t exactly be paved in gold, researchers and analysts would be especially interested in the economic side effects that would soon transpire if it were enacted. Data collected from our friends in China, shows us that only children tend to have higher IQs, which researchers say may be because their parents have higher expectations for them and more time and money to give. If this were so, our workforce would soon shift towards a population of highly trained and qualified citizens. Parents would be more inclined to manage the social, educational and mental progression of their single child. America...
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...What is economic? Economic is a study of how people make choices among the alternatives. Since the resources that are available to world are very scarce, it is important to study economic in order to make the best choice that can maximize the total profits. Real life cases are the best examples for studying economic concepts. In this paper, there are three real life cases that illustrate economic concepts base on the Case in Point boxes from the Course Reader. The first case will define the economic concepts: choice, scarcity, and cost. The second case will describe how the stock market puts supply and demand to work. The last case will present the effects can be caused by private and external costs. Case in Point: Chapter 1.1-Defining Economics; Section 1-Scarcity, Choice, and Cost What Is Wrong With The Oil Productions? Why is oil harmful? Petroleum or oil had come to the existence about four thousand years ago. Oil is now one of the required resources for every day's activities. For instance, products like mechanical engines, cars, cooking, tar for roads, etc. needs oil to function. Even though oil has many choices of how it can be produced, it is a scarce resource. As a scarce resource, oil is very limited and cannot be reproduced or recycled. As a result, there are many opportunity costs for producing oil. For instance, one of the opportunity costs for producing oil is a healthy environment. Additionally, money is the most costly opportunity cost for the oil production...
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...Fǻčěș Ŀǻțěșț Țěșț ǿf Řěșįŀįěňčỳ ǻș Ěxțěřňǻŀ Șħǿčķș Mǿųňț Bỳ JǾȘĦ ŻŲMBŘŲŇ ǻňđ ŇİČĶ ȚİMİŘǺǾȘ Ǿčț. 21, 2014 4:41 p.m. ĚȚ Țħě șpěčțěř ǿf đěfŀǻțįǿň įň Ěųřǿpě ǻňđ ǻ șŀǿẅđǿẅň įň Čħįňǻ ǻňđ ǿțħěř ěměřģįňģ mǻřķěțș ǻřě țħřěǻțěňįňģ țǿ ħǿbbŀě țħě Ų.Ș. ěčǿňǿmỳ ǻț ǻ țįmě ẅħěň țħě ẅǿřŀđ čǿųŀđ ųșě ǻ řěŀįǻbŀě ģřǿẅțħ ěňģįňě. Șțǿřmș ǻbřǿǻđ ħǻvě țħřěǻțěňěđ țǿ čǻpșįżě țħě Ų.Ș. ěčǿňǿmįč ěxpǻňșįǿň įň ěǻčħ ǿf țħě pǻșț fǿųř ỳěǻřș. Ěǻčħ țįmě, țħě Ų.Ș. ěčǿňǿmỳ ħǻș ẅįțħșțǿǿđ țħě bųmpș—įňčŀųđįňģ țħě ěųřǿżǿňě đěbț čřįșįș ǻňđ țħě Jǻpǻňěșě ňųčŀěǻř đįșǻșțěř—čǿňțįňųįňģ ǿň įțș șŀǿẅ-bųțșțěǻđỳ ģřǿẅțħ țřǻjěčțǿřỳ. Ňǿẅ, țħě ģǻțħěřįňģ ǿvěřșěǻș șħǿčķș ǻřě čǿmįňģ ǻș țħě Fěđěřǻŀ Řěșěřvě běģįňș țǿ pųŀŀ bǻčķ ǿň țħě ěǻșỳ-mǿňěỳ pǿŀįčįěș įț ħǻș ěmpŀǿỳěđ țǿ ǻįđ țħě řěčǿvěřỳ. Ẅħįŀě ǿvěřǻŀŀ jǿb ģřǿẅțħ įň țħě Ų.Ș. ħǻș běěň șțřǿňģ ǿvěř țħě pǻșț șěvěřǻŀ mǿňțħș, țħě ħǿųșįňģ mǻřķěț ħǻș běěň mįxěđ ǻňđ čǿňșųměřș ħǻvě șħǿẅň čǻųțįǿň. Ẅħįŀě țħě ǻģįňģ bųŀŀ mǻřķěț įș ǿffěřįňģ șŀįm pįčķįňģș, ěqųįțįěș ǻřě ěxpěčțěđ țǿ ẅįțħșțǻňđ ģěǿpǿŀįțįčǻŀ čǿňčěřňș. Řųșșěŀŀ İňvěșțměňțș' Șțěpħěň Ẅǿǿđ ěxpŀǻįňș ẅħỳ. Pħǿțǿ: Ģěțțỳ “Țħě Ų.Ș. fǿř ňǿẅ įș ģřǿẅįňģ ǿň įțș ǿẅň, bųț įț čǻňňǿț ģřǿẅ ǿň įțș ǿẅň įň țħě měđįųm țǿ ŀǿňģ țěřm,” șǻįđ Ěųģěňįǿ Ǻŀěmǻň, ǻ șěňįǿř ěčǿňǿmįșț ǻț Ẅěŀŀș Fǻřģǿ. “Ẅě ẅįŀŀ ňěěđ șǿmě ħěŀp fřǿm țħě řěșț ǿf țħě ẅǿřŀđ.” İň ǻđđįțįǿň țǿ țħě ěxțěřňǻŀ țħřěǻțș pǿșěđ bỳ Čħįňǻ ǻňđ Ěųřǿpě, țħě Ų.Ș. įș čǿňțěňđįňģ http://online.wsj.com/articles/global-growth-woes-threaten-to-beset-u-s-economy-1413924119 1/5 10/23/2014 Global Growth Woes Threaten...
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...Is there a coming economic collapse? When will this happen? How will this affect us? Many wonder what the future is for the global economy. Over the last few years economists have been expressing increasing concerns about the direction the global economy is going in, and the possibility of a worldwide depression. They have been warning about the growing global imbalances in the world economy, and the consequences if not corrected. Yet we live in a time where the global economy is booming, especially in the Anglo-Saxon and Asian economies. Consumer spending is up. House prices around the world have risen dramatically. Unemployment remains low. The global economy has experienced the longest period of sustained economic growth in recent history. The US$ continues to remain stable. Why has the global economy experienced such strong growth? Will this growth continue? What does the future hold? Interestingly, some of the stimulus for the growth the global economy has recently experienced is a result of decisions made following Sept 11th. Already, prior to Sept 11th the US Federal Reserve was maintaining a loose fiscal policy in an effort to stimulate economic growth in the US economy, which had slowed down following years of strong growth during the Clinton administration. Then along came Sept 11th, which threatened to destabilize the American banking system. To prevent this happening, the Fed injected billions into the banking system to provide sufficient...
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...With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the imports of iron ore and other natural resources from Australia to China as well as the Government having to strongly stay on top of resource nationalism. Resource nationalism is still ranked no. 1 top strategic business risk in the global mining and metal sector (Ernst & Young 2012), this is due to uncertainty and destruction of value caused by sudden changes in policy by the governments of...
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