...3- Foreign Direct Investment Background There has been a tremendous growth in foreign or international investment since 1990s. The underlying reasons for such international flows of capital can be attributed to several factors. International investment, for example, allows capital to find the highest rate of return, helps the owner of capital to diversify his or her lending and therefore reduces the associated risk, contributes to further development and spread of best practices in corporate governance and accounting rules, and finally it prevents the government from pursuing poor policies. The aforementioned advantages of the free flow of capital across national borders can be realized through two primary kinds of international investment: (1) Foreign Portfolio Investment (FPI) and (2) Foreign Direct Investment (FDI). While FPI is defined as investment in a portfolio of foreign securities such as stocks and bonds, it does not entail the active management of foreign assets. In other words, FPI is “foreign indirect investment” in that it represents passive holdings of foreign securities not least because the investor does not have control over the securities’ issuer. Exchange rates, interest rates, and tax rates on interest or dividends are factors that directly impact on FPI. In contrast, foreign direct investment, commonly known as FDI, refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor...
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...functional currency. Contents Contents 2 1. EXECUTIVE SUMMARY 3 2. INTRODUCTION 3 2.1. HISTORY OF INSOMNIA PLC 3 2.2. SCOPE OF BUSINESS 3 2.3. CURRENT EXPOSURES 4 2.3.1. TRANSACTION EXPOSURE 4 2.3.2. ECONOMIC EXPOSURE 4 2.3.3. TRANSLATION EXPOSURE 4 2.4. HEDGING 5 3. EFFECTS OF UK JOINING EMU ON INSOMNIA PLC 5 3.1. COST SAVINGS ON CROSS-BORDER TRANSACTIONS 5 3.2. STABILITY OF PRICES 6 3.3. PRICE TRANSPARENCY 6 3.4. OTHER EFFECTS 6 4. USING EURO AS A FUNCTIONAL CURRENCY OF INSOMNIA PLC 7 5. CONCLUSION 8 6. BIBLIOGRAPHY 9 1. EXECUTIVE SUMMARY It has been found that UK joining EMU as well as accepting the Euro as a functional currency will bring more benefits to Insomnia plc than staying outside of the Economic and Monetary Union or continuing using Pound Sterling as a functional currency. Both of the choices will decrease the currency exchange rate fluctuation risk which was found to be the most significant to the company. Analysis were based mainly on academic articles, European Central Bank (ECB) publishing’s, and International Accounting Standards (IASs). 2. INTRODUCTION “The Economic and Monetary Union is an agreement between participating European nations to share a single currency, the Euro and a single economic policy with set conditions of fiscal responsibility. There are currently 27 member-states of varying degrees of integration with the EMU” (EU4Journalists) Currently there are 16 member states who adopted...
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...recalls the word, Participatory Notes, it sends shivers across the mind of any ordinary Indian or an ordinary Indian investor. Participatory notes were one of the reasons for the largest fall witnessed ever in Indian stock markets. Participatory notes had been in news for all the wrong reasons, every second or third day, some or the other controversy associated with them props up. The most important regulators in Indian economy, i.e. SEBI and RBI are also seen in picture, day in or day out, issuing notices or warning signs to the parties concerned or related to this instrument. But the analysts associated with stock markets are not much concerned or bothered about this instrument. As some of them, don’t have any relationship with this instrument. Indeed, this instrument is much talked about when we name or see the Foreign Institutional Investors (FIIs). Although FIIs have contributed to the Indian economy, in more ways than one, but still they have not been able to earn the respect for themselves as they should be. RBI and SEBI, every now and then, are bothered about their activities and moves that might affect the economy and the markets adversely. The recently out, Lahiri Committee Report, also lays emphasis on participatory notes, its role and functioning. The question that arises in a person’s mind is that what is a participatory note, how it functions, and why is it famous for its notoriety, etc. We will try to seek the answers of the above said questions and various other...
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...Project Report on Depreciation of Indian Rupee Seminar on Contemporary Issues of Management Submitted To: Submitted by: Ms. Tanya Nagpal Reema Bharti Reg no.10901821 Abstract In this project report on Depreciation of Indian Rupee I have highlighted the different aspects of this problem. The Indian economy is at crossroad today. The Indian rupee had depreciated 20% since January and one of the worst performing currencies in the emerging markets. In this report first of all the different factors upon which a currency’s value is depended are explained such as demand and supply, market sentiments, speculations, debt and fiscal policy, interest rates etc. There are various reasons because of which Indian Rupee depreciated. Major reasons such as volatility in market rates, increase in crude oil prices and its consumption, increased imports, poor management of CAD are playing actively in depreciating Indian rupee. As there are two sides of every coin. There are winners and losers in this case also. Broadly talking that whoever is paying dollar is loser and receiver of dollar is winner. Falling rupee value affected different sectors of economy in different way but if want to take a wide view, it is having negative impact on economy’s every sector. But we should not lose hope. In today’s volatile world...
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...There is an old saying when it comes to the markets: investors are like sheep. And, just like sheep, most investors follow the herd aimlessly without a real understanding of what’s happening around them. This is also why most investors can’t outperform the market: they’re part of the flock. Following the crowd almost guarantees that an investor will lose money over the long term. The goal of any investor is actually to step back up on a hill overlooking the flock and watch where the sheep have been and where they’re heading. Be ahead of the crowd, not part of it! Most investors will make several mistakes in 2012. But, by being a contrarian, you have the possibility of gaining long-term wealth by taking a different stance than the crowd. You must be careful not to just do the opposite of what everyone else is doing; rather, make sure you have a well-researched and thorough understanding of the market landscape to understand where opportunities are. We’ve analyzed the markets and identified six potential mistakes that investors might make in 2012. Of course this analysis allows people not only to avoid these mistakes and prevent losing money, but it also offers the opportunity to make money. This analysis will reveal the six opportunities of which the majority of people aren’t aware. By the time the mass public becomes aware of them, these opportunities will already be gone. Investor Mistake #1: Not Recognizing the Makings of a Classic Bear Market ...
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...Tavarez Xmtg/216 March 20, 2011 Elaine T. McCarty Assignment: Business Ethics across Cultures Article Review Ethics and social responsibility have become a standard in everyday business of a company. Companies around the world have made these points the main focus. Companies here and overseas that promote good moral principles can expect to gain the respect of the communities, customers, and the country they have set their business in. It is when a business does not have a sound plan in ethics; things could and have gone badly for companies in a foreign land, often viewed as monsters. These companies will not have any type of support or trust from the foreign government, customers nor the surrounding communities. A company with high moral principles that are looked at as pioneers in a new land can pave the way for future companies coming in. “One example of businesses coming into new territories is found in an article written by Sheppard, G. (2010).” In this book, he discusses strategies that businesses used in Ireland. His information comes from a company that he researched called Haulier Cargocare; the director of this company states the importance of an incoming business from another country to comply with the rules and regulations of Ireland, including not breaking laws and upholding ethical behaviors. It is also believed that the managers need to set the standard of behavior for employee’s to follow. Another article written by Xu & Yang (2010)...
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...Money Management Every company has a situation where it reflects before venturing into new investment means for increased profits. It is important to know the threats surrounding a company in terms of investment. For that reason, the organisation of choice has a risk profile indicating its positioning when thinking of investing in a new strategy. Apparently, the company has the willingness to take head-on the risks that would come along with any investment form. There are several financial instruments for investing in a new plan. The company has hatched mitigation measures for risks that may affect the incorporation of the strategy. The company’s decision to invest using the new financial instruments can realise increased costs, or losses in terms of trading in the finances, but these are some of the risks the organisation is willing to take head-on. In addition, with the current instability found in the financial sector after the infamous global financial crisis, companies run the risk of being caught up again in the recession. However, the company has engaged with the insurance companies and also with the necessary financial institutions so that in the event of unfortunate occurrence, the company remains safe. One example of financial instrument for investment is the Exchange Traded Fund (ETF), just like any other source of investment; it does not come along without its risks. In other words, there is no investment that is free from risk; they are all likely in one way...
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...Eddie Joseph Strategic Audit on Ford Business 480 April 26th 2014 STRATEGIC AUDIT ON FORD MOTORS INC. Welcome to the presentation on Ford Motors Inc. This paper was written by Eddie E. Joseph. He is a student at National University currently working on his undergraduate degree. This BUS 480 course started on Tuesday, April 8th 2014 and will conclude on Sunday, May 4th 2014. As a senior working on a bachelor’s degree in business administration, Eddie looks forward to the challenges that he will face. Like the challenge presented in this strategic audit on Ford. This paper is broken up into segments, and organized in different sections within that segment’s topic. This paper will try to answer all questions about Ford in the most thorough way possible. Without further ado, let’s break down the current situation. I. Current Situation- Ford has been around for many years, spanning multiple countries. As a global heavy hitter, Ford has sustained a lucrative business practice in the motor industry, even outlasting the economic depression. When reviewing the present day stats, Ford will still prove to be one of the premier automotive companies in the United States and continue to expand around the world. A. Capital Structure- Ford has come a long way in recent years. After a difficult year...
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...Market capitalisation, which stood at Rs 5,570 crores in 1996, has multiplied over 50 times to around Rs 2,90,000 crores. It gives me much pleasure to welcome you to the 102nd Annual General Meeting of your Company. I am sure you share my sense of satisfaction at yet another year of robust growth of your Company. This performance is even more heartening given the challenging circumstances in the global economy and the slowdown in India. It also bears testimony to the robustness of your Company's strategy of pursuing multiple drivers of growth. This portfolio of traditional and greenfield businesses has built a strong foundation to power the ITC of tomorrow and create enduring value for the Indian society. As in earlier years, I would like to first present to you the highlights of your Company’s Triple Bottom Line performance for the year gone by. ITC: Triple Bottom Line Performance Gross Revenue for the year grew by 19.9% to over Rs 41,800 crores. Net Revenue at over Rs 29,600 crores was primarily driven by a 26.4% growth in both the non-cigarette FMCG as well as the Agri business segments. Profit before tax increased by 20.1%, crossing the Rs 10,000 crore milestone, while Net Profit grew by 20.4% to over Rs 7,400 crores. The non-cigarette segment net revenue has grown 14-fold from about Rs 1,360 crores in 1996 to nearly Rs 19,500 crores in FY13. As a result, 58% of net segment revenue of your Company is now from businesses other than cigarettes. Apart from being the country's...
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...2012 Journal of Undergraduate Research at Minnesota State University, Mankato The Role of the International Monetary Funds (IMF) in the East Asian Debt Crisis of 1997 By Yaro Sadek Tahirou Minnesota State University, Mankato 2 ABSTRACT During the East Asian Financial crisis in particular, the IMF has been criticized of promoting international cooperation because of the supervised enforcement of its rules. The purpose of this research is to find out how the IMF responded to the East Asian debt crisis and whether or not its responses were the best possible responses to this crisis. Through my research, I talked about the causes of the East Asian financial crisis, the role of the IMF in the international monetary system, and if the IMF responses to Thailand, South Korea and Indonesia were the best responses or not. After analyzing the IMF responses in this crisis, I found that the IMF policies need to be reformed in order to monitor and prevent future financial crises spill-over effects at the global and regional levels. I will analyzed 5 scholarly journals on the financial crisis in East Asia, 3 scholarly articles on the role of IMF in the East Asia financial crisis, and 1 novel called POLITICS IN SOUTHEAST ASIA DEMOCRACY OR LESS by William Case. INTRODUCTION Several financial crises have occurred in the world economy through the last decades. Some examples include the East Asian financial Crisis of 1997, the Latin American debt crisis of 1994-95, the Russian crisis...
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...INTRODUCTION TO THE SITUATION In this scenario, an investor is considering the purchase of two gas stations and has requested advice about the business feasibility of the venture. This analysis will look at the past, present and potential future demand for gasoline, the availability of sufficient gasoline supply, as well as a recommendation about the desirability of undertaking the venture. Crude oil prices have fluctuated over the past several years, but have steadily risen which translates into a rise of gasoline at the pump. This has made it appear appealing to venture into this business. On the other hand, people are very tired of high fuel prices and how rising fuel prices seem to drive up the price of consumer goods, utilities and touch almost anything consumers would have a desire for. According to an article published on the Forbes website in 2012 [1], the worst is not over. The last two years has proven this not to be true. Although there have been a number of spikes in gas prices, the prices in 2014 have been reported to be the lowest since 2010. This could lead to lower profits for a variety of reason that this paper will examine. Opening up or purchasing one or more gas stations represents a substantial outlay of cash, or obtaining large loans, or a combination of the two. The investment in the gas stations is based upon the premise that the gas stations will produce enough revenue to pay debts, as well as provide enough income to pay off loans or...
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...Marketing Principles, Product Marketing Plan Executive Summary 1. Introduction 2.1 Company 2.2 Brand 2.3 Product 2. Internal (Micro) Analysis 2.1 Customer 3.External (Macro) Analysis 3.1 Political 3.2 Economic 3.3 Social 3.4 Technology 3.5 Environmental 3.6 Legal 3.7 Demographic 4.Marketing SWOT 4.1 Strength 4.2 Weakness 4.3 Opportunities 4.4 Threats 5. Marketing Strategy 5.1 Segmentation 5.2-1 Measurable 5.2-2 Accessible 5.2-3 Substantial 5.2-4 Differentiable 5.2-5 Actionable 5.3 Targeting 5.4-1 Importance 5.4-2 Distinctiveness 5.4-3 Preemptive 5.5 Positioning 5.6 Recommendation 6. Marketing Mix 6.1 Product 6.2 Place 6.3 Price 6.4 Promotion 6.5 Recommendation 1.Introduction: Company, Brand and Product 1.1 Company The company chosen was Veganburg, which was conceptualized and opened its door of its first outlet to consumer on 10 October 2010. Veganburg works on fast food concept and tries to recreate a new concept out of the term: fast food – serving tasty vegan meals that is great in taste and nutritional value. 1.2 Brand Veganburg is set on making plant-based diet inspiring and exciting. Veganburg had also played a part in the global restoration by going meat-free. A meat free diet will in turn not only be beneficial to the consumers but also for our mother Earth. Animal agriculture accounts for some of the most pressing environmental problems we are facing today, such as greenhouse...
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...Intel Final Paper MGMT 480- Frankforter Executive Summary As the world’s “foremost semiconductor maker,” Intel Corporation has a reputation to uphold and a future to build. Founded in 1968, Intel has grown to a company of over 90,000 employees who operate Intel’s facilities in nearly fifty countries. Intel produces processors, motherboards, chipsets, network adapters, flash memory, software, storage devices, and wireless products. Many of us are the end-users of a wide variety of Intel’s products, but the Intel’s numerous other customers are primarily OEM manufacturers who utilize Intel’s components, end-user consumers (which includes individuals, large and small businesses, and service providers), and “other manufacturers, including makers of a wide range of industrial and communications equipment.” Intel has capitalized on its ability to lead the semiconductor industry by continuous innovation. Gordon Moore, one of Intel’s founders, introduced a principle that continues to guide Intel which states that “the number of transistors on a chip roughly doubles every two years.” In keeping with Moore’s Law, Intel’s key to success in the semiconductor industry has been constant innovation. Such a strategy has allowed Intel to remain a leader among competitors such as Texas Instruments, Advanced Micro Devices, International Business Machines, and Freescale Semiconductor, among others. The semiconductor industry is extremely competitive, but...
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...CANADA-U.S. Business Travel Guide Released February 2013 CANADA-U.S. BUSINESS TRAVEL GUIDE INTRODUCTION Word from Jayson Myers, President & CEO, Canadian Manufacturers & Exporters T he advent of global supply chains has led to significant changes in the way manufacturers do business. In today’s day and age, the business of manufacturing is no longer simply about getting a product out the door — it is rather about providing innovative solutions to customers’ problems. Manufacturers now deliver value to customers by embedding their skills, innovation, financing and logistics solutions in the tangible goods they deliver. To compete and win in today’s environment requires constant interaction between manufacturers and their suppliers, customers, business partners, and services providers. Despite recent advances in information and communications technologies, much business is still conducted face-to-face, and deals are still done with a handshake. Whether it’s engineers working together to develop a new manufacturing process, executives meeting to negotiate a licensing agreement, or industry leaders getting together at a conference to map the future of their sector, creating value requires business people to meet and interact. Given the intensity of Canada’s trade relationship with the United States, this is especially the case between our two countries. Not only are we each other’s largest customer, but our businesses increasingly work together...
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...contracted with The Manhattan Project Company to provide consulting services in order to understand how to grow its business. We have looked at some areas within the organization and found a few key areas that will assist the company in reaching its goals. SWOT Analysis Strengths: CanGo has turn out to be one of the fastest growing online small business companies. CanGo has different variety of products to offer. They have labeled themselves as “the customer”. By doing this it permits them to keep the question “what do we want” in the front position of the attentions all while concentrating on recognizing the consumer’s requirements and requests. The employees at CanGo showed robust commitment in supporting company’s goal. Staying competitive coupled with strong customer satisfaction is of high importance. Innovation is present that will help CanGo’s ability to maintain continuing growth. Weaknesses: Their advertising budget...
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