INTRODUCTION:
The world is changing more rapidly; consequently organizations are promptly the way they operate as well to ensure survival and growth in high velocity turbulent markets. To succeed an organization has to anticipate, react and even lead in terms of strategic decisions to enhance profits. It is pertinent to understand that a series of systematic decisions is undertaken before an investment abroad is carried on with. According to Sundaram & Stewart 1992 there is a "system of decision making that permits influence" which refers to the firm 's ability to coordinate and control endogenous organizational variables and quasi-endogenous market variables (coupled with exogenous factors (e.g exchange rates, regulations, tariffs and political set up). Investment decisions are critical for the performance of an organization. From a micro perspective, they are fundamental for the growth of individual companies, increasing their efficiency by reducing per unit costs, enhancing profits by tapping new market segments and exploiting more resources. At a company’s level, an investment decision abroad is much more complicated and requires more research; it is more of a multi-criteria process taking into account numerous factors. These are primarily economic and risk factors, political and social environment and government regulations. Naturally, the effects of these factors on decisions of individual companies may vary significantly. Each of the risk has been separately defined
International projects present multinational corporations with many complexities in organizing a profitable transaction structure.Foreign exchange risk is an underlying problem. Credit risk presents another challenge. Payment terms and the certainty of realizing them can be difficult points. Negotiations with foreign corporations and governments, and with agents and intermediaries, present additional challenges. An example of the demanding environment for global financial activities is presented in the case of "Avicular Controls and Pakistan Airlines". It is found in Cases in International Finance on page 40.
What impact will the prospect of deprivatization have on investment by managers of privatized firms?
In this short essay, I shall attempt to explain what Thrasymachus meant when he said, ‘Justice is in the interest of the stronger’. Next, I will outline the ambiguities this statement creates, which I believe results in the contradictory nature on Thrasymachus’s view of justice. Examples of Socrates’ dialectic-style responses will be used and discussed as evidence to show how his statement is implausible. However, I will be also be looking at how Thyrasmachus’s ideal of a ‘strong ruler’ compares to a ‘Machievellian man’, which provides some validity in his view of justice.
All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they
This chapter focuses on three aspects of foreign investment analysis that are infrequently considered in evaluating domestic projects: the difference between project and parent cash flows; incorporating political risks such as expropriation and currency controls; and factoring in inflation and exchange rate changes in cash flow estimates. It also evaluates the various methods used to incorporate in the investment analysis the additional risks encountered overseas. These points are brought out in the process of working through the International Diesel Corporation Case. The ability to perform a capital budgeting analysis is one of the most valuable skills we can provide our
Association of International Petroleum Negotiators (AIPN) Stabilisation in Investment Contracts and Changes of Rules in Host Countries: Tools for Oil & Gas Investors Peter D Cameron ACIArb PhD (University of Edinburgh), LLB (Joint Honours) (University of Edinburgh) Professor of International Energy Law and Policy CEPMLP, University of Dundee, UK p.d.cameron@dundee.ac.uk FINAL REPORT 5 July 2006 © Copyright Peter D Cameron PDCameron/AIPN/Final Report. 5 July 2006
Airport security is currently seen as one of the biggest inconveniences attributed to travel. However a brief look back in history to some of the conditions frequent flyers were subjected to makes modern air travel look like a breeze.
A manager’s decision-making process regarding new or increased international operations involves reacting to the environment, seeking competitive advantage globally and assessing the company’s capability in the global context.
Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts
Definition: An investment made by a company or entity based in one country, into a company or entity based in another country.
Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).
An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's
As pointed out by Keskes I. (2014), fundamentally, the empirical and meta-analytic studies suggest that subordinates working with transformational leaders are more committed to their organizations and demonstrate fewer withdrawal behaviours (Bono & Judge, 2003). Besides, Bass and Avolio (2004) maintain that transformational leaders perceive the strategic goals of the organization. They argue that transformational leaders are more sensitive to their environment and thus formulate and disseminate strategic goals that capture both the attention and the interest of their followers. Besides, managers who have a transformational leadership style will focus on the big picture of the organization and try to encourage the employees to have the same
Dr. Farok J. Contractor is a professor in the Management and Global Business department of Rutgers Business School, New Jersey. He has written hundreds of articles on the topic of international alliance and foreign direct investment. “Punching above their weight: the sources of competitive advantage for emerging-market multinationals” is one such article of global interest which has been declared of great value both for the public as well as for policy makers. The prime focus of this article is upon the phenomenon of emerging market multinationals which have swept the world by storm and introduced a whole new way of conducting global leadership and business. These emerging market multinationals are specifically discussed