Essays on Direct Investment

Introduction.3

Political analysis 3 Economic analysis .4 Social analysis 5 Technological analysis ..6

Legal analysis .6

Environmental analysis 6 Conclusion7 Recommendations7

References.7

Introduction Out of one hundred and ninety six countries in the world, Spain was chosen for this assignment in order to conduct PESTLE analysis. Political, economic, social, technological, legal and environmental factors are going to be analyzed systematically and the information is taken from one of the relevant and credible sources – CIA World Factbook, and others. General factors about Spain are going to be reviewed first before proceeding to the analysis of Zara in order to have a better understanding. Zara is ...

Introduction

Mexico is a country in North America, located to the south of the United States (Where Is Mexico n.p). Concerning the size, it is the sixth largest country in South and North Americas. It is a populous nation with about a hundred and twenty million people, and its nominal GDP ranks the country among the top fifteen countries with the highest GDPs. The country, therefore, is among the large economies of the world. This paper will evaluate the current status of Mexico.

Status of Mexico in the world marketplace

The economy of Mexico has grown to put the country high in the world marketplace. The country ...

Investment

Introduction Foreign direct investment (FDI) is the investment by an individual or a company from a different country and in which the particular investor has full control over the business. FDI has many benefits to the investor and the host country (Lyroudi, John, and Athanasios 97). FDI keeps changing from time to time. This paper will analyze the prediction on what FDI will be in 2020.

The overall benefits of FDI are overwhelming and assist in the economic growth of a country or the world. The prediction of future FDI, therefore, becomes important because it affects global economic growth ( ...

Macroeconomic and Account Balances

India is seen to react rapidly to volatility in the global economic environment as concurred in the modifications of the macroeconomic policies when the North Atlantic financial crisis occurred (Kapur and Mohan, 2014, p.1). However, India’s policy changes is perceived by Kapur and Mohan (2014, p.1) to be temporarily stimulating to the local economy since the expected growth will gradually slowdown. But the additional effect is that inflationary and BoP pressures remain constant, which can either by improved or worsened by the domestic policy bottlenecks (Kapur and Mohan, 2014, p.1). This was seen during the financial market volatility ...

The accounting and financial issues related to foreign direct investment are the conversion of foreign GAAP to domestic GAAP, translation of statements kept in foreign currency to domestic currency so as to prepare a consolidated financial statement and make required supplementary disclosures of the subsidiary operations. There are two issues of taxes that relate to foreign direct investment. First, the company is taxed in the foreign country where the subsidiary is located. Second, the domestic tax department will also tax foreign income. The company should calculate, pay, and subtract the amount of tax paid by a foreign subsidiary. This ...

Introduction

Apple Inc. is a global company based in California, United States. The company is well-known for designing, manufacturing, and selling state-of-the-art personal computers, consumer electronic products, computer software, and cell phones in different parts of the world. It concentrates on providing its customers with the best user experience through its innovative services, software, and hardware. The company leads in innovation with iPad, iPhone, Apple Watch, and the Mac. Apple is the most valuable brand in the world. Apple Inc.’s marketing has played a considerable part in its success over the years. Consequently, the focus of the present paper ...

Introduction

Exports can be seen as a mechanism for economic growth of a country. Increased exportation of products can provide output growth directly as part of aggregate output. An increase of foreign demand of products can result in a country’s growth through employment and additional income for exporters. Another significant contribution of exports is that it can impact economic growth by way of “efficient resource allocation,” including more economies of scale and technological change as a result of “foreign market competition” (Helpman & Krugman, 198; Ben-David & Loewy, 1998 as cited in Awokuse, 2008, p. 593). One of the drivers for ...

International Expansion of Corporate Entities – A Case Study of Urban Outfitters

Urban Outfitters is an American clothing manufacturer that is known for some popular brands like Free People and Anthropologie. The clothing company has gained a lot of results in the United States and has grown to become a popular local brand. However, in the past few years, Urban Outfitters has embarked on an internationalization plan. This has led to the expansion of the company and its activities to different regions around the world. The purpose of this paper is to conduct a case study of Urban Outfitters and its internationalization strategy. In order to attain this end, the following ...

Investing in Saudi Arabia Market: Oil and Gas Services

Dissertation Proposal Rationale of the Study The rationale of the study is stipulated by the necessity to extend the analysis of the investment opportunities in Saudi Arabia market, the greatest oil, and gas supplier on the Arab Peninsula. The role of Saudi Arabia in the global economy is determined by the significant amounts of raw hydrocarbon deposits – the explored volumes of oil and gas equal to 40,3% and 22,7% of the world deposit accordingly. The experts estimate the financial assets of public and private Saudi Arabian structures in around $4 trillion. Economic and political processes taking place ...

International Operations and Management

International Operations and Management Hedley (2016) revealed that managing international operations is an increasing concern for global companies (Harrison, 2011, p.3). Some of the reasons given by upper management are to remain competitive, as a growth opportunity, and to improve profits (Harrison, 2011, p.3). Global companies revealed that the main difficulty is choosing what entry strategy to use, which includes licensing, exporting, joint venture or direct investment (Foley, 1999, p.31). The report will examine the opportunities and continuing challenges of an international operation for a global automotive company under the entry strategies of joint venture and direct investment.

International Operation Challenges and Opportunities

Joint ...

Describe portfolio investments and FDI. How do they differ and why is it important to distinguish between them?

Foreign portfolio investments (FPI) and foreign direct investments (FDI) are two commonly used and at times easily confused phrases. Foreign portfolio investments refer to investments in financial assets in a foreign country. These financial instruments include instruments like stocks and bonds. Investors love to invest in such instruments in order to diversify and hedge their portfolios. For example, Brexit has caused European banks to shed their values significantly and some international fund managers have already started purchasing these banks to diversify their portfolio and take advantage of attractive stock valuations. On the other hand, foreign direct investment refers to ...

Introduction

It is imperative to note that productivity growth is an aspect that is often used by economists to gauge the performance of an economy. In evaluating the living standards of a country in the long-term, the efficiency with which capital and labor are combined has a significant role to play. However, it is worth noting that productivity alone cannot be relied on to measure the performance of an economy as it is inefficient. The concept has made most analysts to focus on other features such as labor productivity, a figure that is often arrived at by dividing the total ...

INVESTMENT ANALYSIS OF VIETNAM

INVESTMENT ANALYSIS OF VIETNAM

Summary

Vietnam has changed in the last thirty years from an agrarian country to a service and manufacture country leader in the world in growth and economic activity. The country has a communist system legally but, in the practice, the country has a liberal policy in the economy signing the Trans-Pacific Free Trade Agreement but maintaining the political control under the rule of one party. The country offers opportunities and risks for individual and corporation with the intention to invest.

Introduction

Vietnam is known in the world as the country where United States of America lost a ...

According to the case, Lincoln Electric was a company that mainly manufactured welding machinery and consumables based in the United States but the lifting of trade barriers case prompted the management to contemplate on an expansion strategy to expand its production base internationally. The management was in view of establishing plants in Asia through joint ventures or as wholly-owned firms and whether regarding Lincoln Electric company depicts a situation where the adopts the firms incentive system in its new ventures. The company operated on the founding philosophy in which James believed that each person could transform to its full ...

International Business and Global Logistics

International Business and Global Logistics

Introduction

Undeniably, the main objective of any business organization is to grow in terms of profitability and market. The high market competition that most organizations face tends to impede the realization of their objectives. Thus, companies adopt different strategies to aid their survival in the markets. Pricing and marketing strategies are the major approaches that most companies use to gain a competitive advantage over their rivals (Dessler & Phillips, 2007). Multinational companies face competition both at domestic and the world markets. Thus, they consider implementing various strategies to enhance their market positions. Besides pricing and marketing ...

China

1. COUNTRY

We have chosen China as a country for analysis

2. RECOMMENDATION We have decided to convert US dollar to Chinese yuan on May 24, 2016. The total cost in dollars according to this option is calculated further in question 9. 3. CHINESE ECONOMY OVERVIEW China’s role in the international arena has been growing in the recent years. Apart from being the most populous country with over 1.3 billion people and one of the largest countries in the world by territory, it has been experiencing substantial economic development in the past decades (Naughton 3). China is the second largest economy in the world after the USA. ...

Investment Report

Background In this section, a brief overview of my personal experience in this field of investment and the personal risk tolerance that comes up together with the objectives and the goals will be touched a little bit. No one can dispute my experience because I was able to manage a good portfolio successfully in the Saudi market regarding investments in stock and this has empowered me skillfully (Dunning, John H 30). The abilities gained and all the tricks learned shall be applied by me in the successful investment in the stock market field. The major aim of all these ...

Introduction

Myer is Australia's largest departmental store with more than 60 outlets and an online shop, where customers can order products from the comfort of their homes. The company employs 125,000 people and makes use of 1200 suppliers worldwide. Myer is embedded in the culture of Australia, as it has operated for more than 100 years in most cities. The company has a broad range of products; eleven in total, ranging from men wear to apparel and electrical goods. On the opposite, Myer has had mixed fortunes in the last five years. The company peaked in 2013, with revenues ...

Multinational Enterprise and Foreign Production Multinational firms exist because of certain economic advantages that enable it to be profitable by producing a good or service in a foreign country. It is important to understand the difference between Vertical expansion and Horizontal expansion of a multinational firm in order to understand the underlying principles of their economic activities. Vertical expansion happens when a firm finds assets in a foreign country it wishes to pursue. These assets can be either in the form of natural resources or other raw materials that it can use for inputs in its own production or ...

Analysis of Multinational Companies

Analysis of Multinational Enterprise The spread of the globalization across the world facilitates the process of the foundation of new firms and business units in different regions. With that, some companies prefer to have the supply chains approximately in every country regardless the fact that the headquarter of the company is locate din one jurisdiction. Among diversified nature of the business units, today are quite popular the multinational companies due to their competitive advantages in the market. The experts in the business environment define the multinational company as the enterprises that has the production facilities and other relevant assets ...

International Markets

The industry for Australian Soybean is small, but from an economic viewpoint it is very valuable, since it plays a significant role in the farming system across Australia. The last decade has seen an exponential growth in export markets and consumption of edible beans domestically (Marketing Soybeans). The demand for Australian edible soybeans in Asian markets is immense, with Japan the major importer of the Soybeans as it imports half a million tonnes of tofu grade soybeans each year from US and Canada, with the primary reason being the quality and positioning of the Australian product in the soybeans ...

Is the “Beijing Model” Applicable in Other Countries?

Introduction The Chinese economical development is under close examination of the experts across the world as the country has succeeded to achieve the leading positions across the world based on its economical model. Some experts believe that Chinese model of economical development may be applied by other countries, while the opponents to this position state that this approach may exist under the circumstances available in China. Since second half of the twentieth century, Chinese development is featured with permanent growth with annual rate of 10%. In the contemporary economical society, the GDP in the country is higher up to ...

Introduction

The present report delves into the expansion of Hind Al Oud Company into Bahrain, which is the only GCC countries in which the company does not operate. In particular, the report examines the suitability of Bahrain for Hind Al Oud Company’s expansion. The factors that make Bahrain a suitable marker for the company expansion are political stability, free market system, low inflation, positive economic growth and strong financial services regulation, positive industry growth, low level of centralized control required, lack of trade barriers, low transportation costs, unique business core competencies, low rate of expansion needed, high level of ...

The rationale of this report is to analyse the marketing information and facts of a company in UAE that is planning to enter an international market. The company chosen for this report is Anfasic Dokhoon that plans to start its operations in Tunis, Tunisia. The report contains the background of the Anfasic Dokhoon Company and the market analysis in Tunisia. The report also provides the marketing mix of the company as well as the staffing policies that would enable it to compete fairly in the international market. The potential suitability of various market entry strategies available to the company ...

The cost of hosting Olympics and other mega sports events is substantial. These costs have made economist to be quite skeptical of the economic benefit of hosting such events. For example, in 1996 Atlanta spent over $5.1 billion to host the Olympic game. The host government is made to forego planned investment to concentrate on building new stadiums. Besides, the budget deficit swells before hosting the international event. Thus, the willingness of governments to subsidize sporting activities draws criticism and praise from different quarters. It is widely acknowledged that Olympics promote country’s exports. According to the International Olympic ...

Being dominant in terms of economy, political affairs and military power requires a country to have a certain geographic location and a size that would allow achieving ambitious political and economic goals. Undoubtedly, for a small country with insufficient natural resources, little population, and large neighbors nearby it is very difficult to become powerful. In the meantime, even small countries may act as very authoritative international actors if they have several reliable and strong allies and the surrounding countries cannot harm them. In this paper, the importance of geography in making a country an economic, political and military power ...

BRICS effect on global capitalist economy

The debates about the increasing role of emerging economies became more vigorous since the global financial crisis that became a start for a new global framework with the developing countries surfacing as a major hub. The most attention is given to the economies of Brazil, Russia, India, China and the South Africa (BRICS) that had demonstrated high growth during the last decade against the global recession. The future dominance of the BRICS may shift the economic center towards the multipolar model. Changes in the matrix of competitive forces (finance, resources, technology) lead to a decline in the economic, political ...

Maduro has been one of the most controversial leaders in Venezuela’s history given that he has carried on Chavez’s terrible economic policies that has caused a great nation that used to be a superpower in Latin America to be in crisis both economically and politically. Maduro, like many other leaders in Latin America that are on the outs, is the symbol of an ending of an era that is too far to the left in Latin America. What Maduro stood for as a leader carried on the ideals of Chavez and Guevara in Cuba. These ideals are ...

Overview of Geographic, Cultural, Political, Economic, and Legal Risks/Benefits:

Lululemon is one of the premier workout wear companies in the world. What makes Lululemon so sensational is that they are a luxury brand that is truly bright colored and high quality. So far, Lululemon has made many successful attempts as they opened luxurious storefronts all over the globe. Given that Lululemon is a Canadian company, it is quite surprising that they have been so successful within other markets than their home market. In fact, Lululemon has been quite successful in the United States, New Zealand, and Australia, (Lululemon History, 2016). This year, Lululemon is planning on expanding their ...

Introduction

Technology refers to information that can be used to accomplish a set task. Transfer is the movement of goods and information from one individual or corporation to another that did not have it originally. Technology transfer is, therefore, the flow of information and processes from a group that has a specialized technical skill to another that does not(Anderson & Anderson, 2010). Multi-national companies operate in different geographical and administrative regions to provide a common good or service to its large client base globally. These companies require the adoption of a viable technology transfer policy that will ensure that the ...

Introduction

As the pressures of globalization are increasing for all businesses, it is important that different marketplaces and economies should be integrated with one another. For this, it is observed that increasing number developing countries are accessing different market arenas to improve their economic growth by entering into trade relations with other countries. In this regard, this paper is written to make an important discussion about the net benefits provided by international market access to developing countries. Different benefit which a developing country can derive from entering other markets and entering into trade agreements with numerous nations is highlighted in ...

Coca-Cola Company

Coca-Cola Company is the world's leading beverage maker with operations in more than 200 countries worldwide. The parent company is situated in Atlanta, Georgia where it serves as the headquarters of the whole operation. The company is well known for the production and sale of its premier seller, Coca-Cola. The beverage is the world's most popular carbonated soft drink and is unrivaled regarding sales figures and worldwide distribution. The enterprise operates on a franchise basis in which it produces the syrup concentrate and hands this to the hundreds of bottlers around the world(Green, 2016). The company's flagship drink, ...

About PwC Middle East

Introduction According to “PwC Middle East” (2016), it was established in the region for 40 years, PwC has more than 4,000 people in 12 countries across the region: Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Oman, and Palestinian territories, Qatar, Saudi Arabia and the United Arab Emirates (p.1). As stated on their website, their regional team of more than 4,000 people operates across the Middle East bringing international experience delivered within the context of the region and its culture. It can bring the collective knowledge and experience of more than 208,000 people across the entire global ...

Introduction

Gross domestic product (GDP) and Gross National Product (GNP) is the indicators of the general economic condition of a country. These indicators give a description of the general economic and financial welfare of the nation, because the higher the level of production means higher level of the country's well-being. The subject of the study of the GDP and GNP is economic units - residents, producing goods and services for the end-user over a certain period of time (Investopedia, 2003). The indicator of GDP and GNP are very important for the economy as a whole. They are used to describe ...

Introduction

The economy of Japan has seen a downturn with the economic crisis in the year 2008. Every country has been faced with the consequences that resulted in different impacts. The paper will present the economic indicators and overall economic situations in the Japan. The background of the country’s economic policies will be present, with international and regional trade agreements. The focus will be on presenting the specific economic data along with the definitions and interpretations. Further on, the current state of the country’s economy will be examined in the light of trade, fiscal and monetary policy.

Background on the country and recent economic policies

Japan ...

Introduction

Pakistan is a developing country and is the 26th largest nation in terms of purchasing power parity. A member of BRICS community, the nation has shown signs of becoming one of the world’s largest economies by 2025. In the past, the country had suffered from the ills of political disputes, energy constraints, poverty, growing population and non-conducive business environment that had halted the growth of the country. However, during the past few years, Pakistan has shown some optimistic signs of economic improvement with consistent growth in GDP and other macro-economic factors. Still, many factors such as social and ...

Dunning’s Eclectic Paradigm

Introduction Dunning's eclectic paradigm is a model developed by John H. Dunning. The aim of the model is to explain the OLI-framework. The framework by Dunning serves as a guide for empirical examination of determinants of FDI. The framework offers a ground to research on factors affecting the development of multinational companies concerning expansion after engaging in foreign production and other expansion plans in the foreign countries. According to Dunning (2001), the assumption underlying the eclectic paradigm by Dunning is that three factors determine the FDI or specifically the return to FDI. The first factor is represented by ‘O'. ...

In Case Study 14, three countries - Costa Rica, Guatemala and Honduras – are analyzed. These countries were Spanish colonies in the past and share similar geographic features (Todaro & Smith 767). However, they are very different in terms of the economic and human development. Costa Rica is the most developed of three countries, because it has been able to stay away from the military conflicts for 65 years (Todaro & Smith 770). On the contrary, Guatemala and Honduras are very unstable countries. Nevertheless, all three countries have good prospects nowadays. The foreign aid is very important for the developing economies that ...

Economics

2016-03-30

Introduction

This paper is devoted to the economic system of Canada and necessary preconditions for its further development. As we know, investments always play an important role in order to develop the country’s economy. There are two main types of investments: portfolio and foreign direct investments. The first type is considered as investing in a set of different securities in order to get profit. The totality of the securities makes portfolio. This portfolio allows getting such characteristics, when different securities are combined, which cannot be obtained when investing in separate financial instruments. Assets of portfolio usually include bonds ...

INVESTMENTS

Economic overview The economy of Jamaica greatly relies on services that accounts for over 70 percent of its GDP. The Nation continues to earn most of the foreign exchange from remittances, tourism and alumina/bauxite. Both tourism and remittances accounts for 30 percent each, whereas alumina/bauxite exports contribute roughly 5 percent of the GDP. The alumina/bauxite sector was the greatly affected by global downturn whereas the remittance flow and tourism industry remained resilient. The economy encounters several challenges to its growth including soaring corruption and crimes, huge-scale underemployment and unemployment as well as a debt-to-the-GDP ratio that is about 130 ...

Government-Business Relations

Predominantly, free trade entails trade between two or more countries where there is an elimination of restrictions such as import duties, local production subsidies, import licenses, and export bounties. The common argument used to support free trade is that countries have different resources endowment. Therefore, each country should specialize in the production of goods and services in which it has a comparative cost advantage. Varying levels of technology required for resource exploitation necessitate the need for countries with advanced technology to invest in other countries where technological knowledge is less developed. The decision to allow foreign investment involves some ...

Thesis statement

United States trade with China has grown significantly since the year 1979. This has led to an increase in both exports to China and imports from China. Although there have been negative consequences on the US economy, trade with China brings more good than harm to both China and the US.

Introduction

The past three decades have seen substantial growth in US-China trade. Since the US and China formally established diplomatic relations in 19179, the total trade has increased from $2 billion to $591 billion in 2014. China has risen to become the second-largest trading partner of the United States. ...

Business

The rapid economic development of China opened up a myriad range of opportunities along with equally numerous challenges for the international firms that were in pursuit of integrating themselves with the banking industry of China. Regardless of being founded upon a vast set of highly conventional and conformist guiding principles, the government of China was pretty successful in attracting considerable amount of foreign direct investment and garnering international interest for itself. However, while several emerging economies adopted several trends that many global banking pioneers had set in the industry, China on the contrary designed its own conformist standards and ...