...Global Economic Perspectives Exam II Objective List BASIC CONCEPTS * Exchange Rate Risk * Selling dollar-denominated bonds but not having dollar-denominated sales * China’s real estate bubble * How to avoid: * Currency swaps * Future markets * Currency pegs * Setting the currency equal to a specified value * What factors determine exchange rates (pegging and managed floats) * High interest rates Appreciation & recession – increased demand & price * Stronger currency favors importers (trade surplus) * Low interest ratesDepreciation & Expansion * Weaker currency favors exporters (trade deficit) * The role of the IMF * Make emergency loans to countries with balance of payment problems * Ensures stability of national monetary system * Fiscal Policy * Government changing taxes and/or government spending in effort to increase or decrease business activity * Expansionary FP leads to increased spending but downside is budget deficits * Contractionary FPleads to budget surpluses or smaller deficits * AKA Austerity (attempt to shrink growing deficits) * Monetary Policy * Central Banks changing the MS to increase or decrease the availability of credit in an effort to increase or decrease business activity * Primary tool is Open Market Operations * Buying and Selling short...
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...ASSIGNMENT COVER SHEET Name: | | Address: | | Post code / Zip: | | Telephone No: | | Email Address: | | Date: | | Course Name: | | Tutor Name: | | Assignment Name: | | PLEASE NOTE: YOU SHOULD INCLUDE THIS INFORMATION with EVERY ASSIGNMENT. Introduction In this assignment I will be researching the Business Environment and the Business Organisations, I will learn why Businesses operate in different ways and how strategies are developed to meet an ever changing market both national and globally. Section 1 Understanding the Organisational Purposes of Business. There are several terms to describe the word Organisation; A company set up to be profitable, a company set up for a cause or non-profit, a group or association that serves a particular purpose. All of these examples and the others though are all similar, in that they are structured and managed to pursue collective goals. In this section I will describe the purposes of the different types of organisation, the extent to which objectives are met for the stakeholders and also the responsibilities of an organisation with the strategies employed to meet them. Business Organisations exist to do one of two things which are to Produce and/or Provide. The type of sector an organisation is categorised is dependent on the product or service provided these are Primary, Secondary and Tertiary Sectors. Primary sector organisations exist to produce the raw materials needed to produce a product, Secondary sector...
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...The main drivers for the internationalization of R&D activities by EU MNEs Michele Cincera , Claudio Cozza , Alexander Tübke ∗,+ * * Draft for the 4th Annual Conference of GARNET Network, IFAD, Rome, 11-13 November 2009 11.11.2009 Abstract Based on an original and recent sample representative of the largest R&D corporations in the EU, this paper aims at investigating in a quantitative way the main factors explaining: (i) the decision of firms to increase their R&D investment effort in the near future; (ii) the main drivers explaining the favorite location choice for R&D; and (iii) the impact of direct and indirect policies to support R&D activities in the EU. Main findings suggest that competitive pressures from the US are the main determinants for increasing R&D investments. Public support to R&D and proximity to other activities of the company explain the decision to locate R&D in the home country while considerations on the cost of employing researchers appear also to matter for firms preferring a location outside their home country, in particular in China and India. Key words: R&D internationalisation; drivers; R&D policies; EU large R&D corporations JEL code: O33 1. Introduction In the last decade, theoretical (Dunning and Narula, 1995; Kuemmerle, 1997) and empirical studies (among the others: Kuemmerle, 1999; Kumar, 2001; Von Zedwitz and Gassmann, 2002) on the internationalization of R&D have highlighted a shift from the so-called home-base exploiting to the home-base...
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...Business Environment Section 1 In the UK there are many different types of business organisations. They broadly fall into the category of public and private sector organisations. The National Health Services or the Armed Forces for instance are public sector organisations owned by the Government and are in place to deliver to the public. The main purpose of public sector organisations is to provide access to quality service at an affordable price to citizens (Armstrong and Kotler, 2014). Providing equal opportunities or equity is also one of the purposes of the public sector organisations (Kerin and Hartley, 2012). The private sector consists of sole traders, partnerships, private limited liability companies, franchises and joint ventures. The main purpose of the private sector however is to be profitable, grow its market share and to survive by satisfying customer needs (Kerin and Hartley, 2012). There are also public limited liability companies, cooperatives and charitable organisations. A Sole Trader business organisation is usually small and is managed and owned by a single person. Profits made by the Sole Trader are managed as if their own personal finance therefore once costs and taxes etc. are paid the profit is theirs, however this also means that any loss incurred is managed by them as-well. The success of the business of the sole trader lies with the drive and willingness to succeed of the owner, if he or she supplies a product or service of quality which the...
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...and the purpose 2 1.1 Purpose of organization 2 1.2 Meeting Stakeholders objectives 4 1.3 The responsibilities that the Sainsbury organization has and the strategies they employ to meet these responsibilities. 6 Task 2 8 2.1 Different economic systems and resource allocation 8 2.2 Impact of fiscal and monetary policies in Business Organization 11 2.3 Impact of Competition policy and other regulatory mechanisms on the business 12 Task 3 14 Behaviour of Organisation in the Market Place 14 3.1 Market structure to determine the pricing and output decisions of businesses 14 3.2 Market forces shape organizational responses 15 3.3 The business and cultural environments shape the behaviour of an organization 16 Task 4 19 4.1 The significance of international trade to UK business organizations 19 4.2 The impact of global factors on UK business organizations 21 4.3 The impact of policies of the European Union on UK business organizations 25 Conclusion 28 References 29 Task 1 Different types of organizations and the purpose 1.1 Purpose of organization Before we learn about the types of organizations, we need to learn the basic purpose of setting organizations. The main purpose of organization is to provide a pathway to their business setup and to set the main objective for their business. Organizations help in making profit in a standard way. The different purpose of organizations helps in building the structure of company. Different types of...
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.... . 2 2.1 Organizational objectives Vs Stakeholders objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3.0 The nature of national environment in which businesses operates . . . . . . . . . . . . . . . . . . . . . . . . . . 6 3.1 Distinctions between Planned, Free market and mixed economic models with examples . . . . . . 6 3.2 Use of Monetary and fiscal policy in management of economy . . . . . . . . . . . . . . . . . . . . . . . . . 7 4.0 The behavior of organizations in their market environment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 4.1 Market structure Tesco operates and its effects on pricing and output decisions . . . . . . . . . . . . . 9 4.2 Use of PESTEL analysis to judge how the market forces affect the behavior of Tesco 11 5.0 The significant of global factors in shaping national business activities . . . . . . . . . . . . . . . . . . . . 12 5.1 Significance of international trade to Business organization located in UK . . . . . . . . . . . . . . . 12 5.2 Benefits and drawbacks for UK business Of EU policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 6.0 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 1.0 Introduction ...
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...C O V E R S T O R I E S R O U N D TA B L E C O M M E N TA R Y Transatlantic Divergence in GE/Honeywell: Causes and Lessons BY DONNA E. PATTERSON AND CARL SHAPIRO welcome, even when they are predicted to cause leading firms to gain market share. Second, the procedures in place in Europe contributed to the ability of the Competition Commissioner to block the proposed merger of GE and Honeywell based on dubious economic grounds and very weak evidence. In particular, the absence of timely and independent judicial review of the Commissioner’s decision that a combination is incompatible with the Common Market gives enormous discretion to the Competition Commissioner and to the Commission’s Merger Task Force. We discuss below how the interplay of these two trans-Atlantic differences led to the divergent results in GE/Honeywell. The EU’s Conglomerate Case A key driver of the proposed merger was the desire of GE and Honeywell to combine their complementary product lines in the civil aerospace industry.2 GE makes, sells, and services large aircraft engines. Honeywell, itself the result of a 1999 merger between Allied Signal and Honeywell, makes small aircraft engines, various avionics components, and other “non-avionics” components, such as environmental control systems, wheels and brakes, and auxiliary power units. At its heart, the merger was neither horizontal nor vertical, but conglomerate. In fact, the GE/Honeywell merger was remarkably “clean” in terms of horizontal...
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...The EU in the New World Order (3 Videos) Questions: 1. Who has the power to represent the EU internationally? The president of the European Commission, the high Representative of the Union for Foreign Affairs and Security Policy, the head of delegation of the EU to third countries (e.g. the US),and the president of the European Council. 2. Of which of the following international organisations is the EU a (full) member? The FAO and WTO, two conditions need to be fulfilled: 1) The EU must have the power (as conferred by the Member States in the Treaties) to become a member, 2) the international organization must allow the EU (which is not a state) to become a member. Consult, for instance, Art. 4 of the UN Charter 3. What is the EU in international law? Rights and obligations. It is not a state or is a regional integration organization with a very extensive measeur of international legal personality (at 47 TEU) 4. Who represents Europe in the world, in external affairs and treaty negotiations with 3rd countries or international organizations, High representative of EU for foreign affairs and policy: created by the Lisbon treaty , it is also the vicepresident to the European Comissions. Head of state, Europe is represented by 2 persons: permanent president of European Council and President of the European Commission (more for classical competences of the EUUU). And Rotatic council. World wide diplomatic network of the European Union: EU ambassadors, EU delegations...
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...LO1 Understand the organizational purposes of businesses. ACs 1.1 identifies the purposes of different types of organization. Tasks 01 Legal Structure of Business Organization: A business Organization may have three legal option or structure, they are: Sole Trader: A person who runs unincorporated business on his or her own. Sometimes it is known as "sole proprietor" or "sole practitioner". Partnership: A partnership is an association of two or more people formed for the purpose of carrying on a business. Partnerships are governed by the Partnership Act (1890). Incorporated Company: Incorporating business actions into a company confers life on the business as a "separate legal person", Profits and losses are the company's and it has its own debts and obligations. Types of the Business Organization: Private Company: A company whose ownership is private. Private companies may issue stock and have shareholders. Public Company: Public Company may be defined as, A company that has issued securities through an initial public offering (IPO) and is traded on at least one stock exchange or in the over the counter market. Government Company: Government Company may be defined by, it is a legal entity created by a government to start money-making activities on behalf of a proprietor government. Voluntary Organization: Voluntary organizations may be defined as, organizations are non-profit ambitious, self-directed and non-statutory, that are run by persons...
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...EU & Turkey, Trade and Policies, Summary Chapter 1: The formation of the European Union United Europe has been the vision of many statesmen since the Roman Empire, and more recently of philosophers/politicians (17th century (). Winston Churchill; spoke of European Federation (1951) but true fathers of borderless continent were: Robert Schuman and Jean Monnet (supported/complemented by Paul Henri Spaak and Jacques Delores). Why was Europe created: They wanted to avoid repetition of wars between Europeans (especially avoid another conflict between France and Germany). Germany wasn’t punished because Americans learned from WWI. To avoid repetitions politicians/intellectuals came up with free commerce, democracy, and individual freedoms. The sincere collaboration (early 1950s until today) made peaceful Europe possible. They also wanted to rebuild Europe equitably after WWII, to share vital resources to mutual benefit, to counter threat of communism, to leverage with USSR and US, and eliminate acute nationalism and racism. The importance of the EU to Turkey: 1. number 1 trading partner for Turkey 2. one of 4 world’s major powers 3. Turkey aspires to join the EU 4. Turkey needs Europe to be democratic 1951 – Paris (ECSC) 1st form of Europe-wide collaboration among states was ECSC (European Coal & Steel Community) in 1951 and was developed in free trade and commerce within the newly formed EEC (European Economic Community). ECSC was created to...
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... Name: Ana Maria Viorica Vid Registration No: Signature: AV Date: 27th November 2015 Table of content Introduction 4 LO1.1 5-6 LO1.2 7-8 LO1.3 9 LO2.1 10 LO2.2 11-12 LO2.3 12 LO3.1 13 LO3.2 13-14 LO3.3 15 LO4.1 16-17 LO4.2 17-19 LO4.3 19 Conclusion 20 Reference 21 Introduction In this assignment I will do two reports that are mainly related to British Airway and I will discuss about its mission and vision and features strategies that they will implement. Also, I will talk about stakeholders and economic system, monetary policies and fiscal environment. Additionally the report will contain British airway PESTLE and SWOT analysis. Note: This assignment is a resubmission for the following LO’s: LO1.3,LO2.3, LO3.1, LO3.3 and LO4.2. LO1.1 Purpose of different type of organisation Private sector businesses are owned and run by private individuals. Examples of private business sectors: 1. Sole traders 2. Partnerships 3. Companies (private and public) 4. Franchisees Aims 1. To make...
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...1. Do theories of late industrialization explain national differences in the institutional and organizational characteristics of contemporary business? How do these ideas help to explain variations in economic performance? The level of economic development of the country effects development of institutions and characteristics of the business, which in return affect performance. In first part of the essay we will discuss early industrialisation and different theories of late development. After discussion will lead us to key institutions: financial markets, textile industry in relation to business group and labour market and steel industry with relationship to government intervention. In the conclusion we will discuss the current situation, highlight that there is no perfect system. There are many factors that effect economic performance and in order to be successful the changes in the world should be accommodated with the changes in institutions and organisational characteristics. The main characteristics of industrialisation are changes from agricultural to industrial economic structure, substitution of machines for human skills and replacement of home-made by purchased in stores goods. The First Industrial Revolution happened in early 18th century in textile industry in UK, they had technological means, right institutional and organisational characteristics, government encouragement, and a large and varied trade network. Britain became the world's leading industrial...
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... COSTA COFFEE COFFEE AROMA * Acknowledgement | 3 | * Summary | 4 | * 12.1- Investigation of two businesses with international and European presence * Name of the organisation * Operating Profit * Main Activities * Legal Format * Type of Business * Target Market * Industry * Business Sector * Product Range * Aims and Objectives * Type of Competition * Similarities and Differences Between the Businesses * Why businesses become international * How businesses meet their aims and objectives by being international | 5 | * 12.2- Research and Analysis of the Factors for Business having an International presence * Strategic Objectives * Theory of Comparative Advantage * Impact on host country when business is setting up and trading * Incentives by host country to business * Impact of business activities on competitors, customers, suppliers and business itself * Effectiveness of international business | 26 | * 12.3- Explore the dynamics of international organizations on one chosen business in a globally competitive environment * How EU and WTO affect the international business * Benefits of membership * Limitations of membership | 30 | * 12.4- Examine and evaluate the growth and influence of multi-national operations * Why business have become international * Impacts on developed and developing countries * How wealth of multi-nationals influence host countries | 39 | * Conclusion | 44 | *...
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...ALWAYS LEARNING B401 Assignment Business Environment PROFESSOR: Apoorva Chaudhry th SUBMISSION DATE: 4 May 2016 15100150 PEARSON COLLEGE LONDON BUSINESS & ENTERPRISE STUDENT – LEVEL 4 B401: Business Environment 15100150 Level 4 ALWAYS LEARNING 2 PEARSON B401: Business Environment 15100150 Level 4 B401 – Assignment ..................................................................................................................... 5 business environment .......................................................................................................................... 5 Task 1 ........................................................................................................................................... 5 part 1 ....................................................................................................................................................... 5 Part 2 ....................................................................................................................................................... 7 Part 3 ....................................................................................................................................................... 8 TASK 2 - Power Point Slides’ notes ..................................................................................................... 9 TASK 3 ..............................................................................................
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...rather than just coffee -first target outside US was Japan and the company established a joint venture with a local retailer -Starbucks format was then licensed to the venture which then took over responsibility for growing the Starbucks presence in Japan -Starbucks transferred employees to the Japanese operation -all employees went to training classes -stores had to adhere to design parameters established in US -took its success here and went to other foreign markets -purchases mainly Fair Trade Certified coffee to promote environmental responsibility -Starbucks has shown that glo Globalization (shift towards a more integrated and interdependent world economy): +: Expand revenue by selling around the world and reduce costs by producing in nations where lower input costs -: increases competition and drives price down Globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace Most global markets are markets for industrial goods and materials that serve a universal need the world over such as market for commodities (aluminum, oil, and wheat), industrial products (commercial jet aircraft), computer software, and financial asses Firms follow eachother around the world so greater uniformity replaces diversity Globalization of production: sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors of production...
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