By: Susan Martinez
March 1, 2011
Introduction
Relations between the Fijian government and FIJI Water have been tense since early 2008 when the new military government seemed to suddenly notice the huge exporter (accounting for 20% of Fiji’s total exports) (Dornan). Though there are a variety of disputes, I will focus on two in particular
1) The Fijian government’s belief that FIJI Water is engaging in transfer pricing.
2) The Fijian government’s repeated efforts to tax the company.
At this point both sides have lost face in standoffs, and the tension is building.
While the company may not be popular with the national government, FIJI Water is a star in its community. Since opening in
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This is less than a tenth of the $11.7 million (US) FIJI Water is expected to pay to the Fijian government for taxes in 2011 (Global Voices).
|Year |Projected Exports |Percent Change |
|2008 |$1,202,000,000 |67.04% |
|2009 |$1,202,000,000 |0.0% |
|2010 |$1,202,000,000 |0.0% |
The problem is this: the Fijian subsidiary sells 12 liter cartons to its U.S. parent for $4 US each. The U.S. parent then sells those cartons for $13 US and the cartons retail for around $20 US (Dornan). The Fijian government wants a bigger piece of the $20 retailers pay for a carton, and refused to believe the advice without seeing the company’s financial data itself. Even the current tax of $.08 US per liter of water ($.15F) results in a cost increase of only [$.08 x 12 L] = $.96 US ($1.80F) per carton. If this amount were added to the $4 US selling price, it would still be well below the $10 per carton claimed by competitor Aqua Pacific (Dornan).
Good Neighbors
In a conference on corporate social responsibility in
According to the International Water Management Institute environmental research organisation global water stress is increasing, and a third of all people face some sort of water scarcity. Where demand exceeds supply and no effective management operates, there will be conflicts between the various players involved.
What we gained from this research was not a thorough understanding of the legislative measures that governments are taking to provide water to the citizens within their borders. Rather, we learned the general lesson that governments, regardless of their resources or political structure, are not the most reliable or capable entities to provide for human beings
The need for water in all of society is of the upmost importance in order for humankind to survive. The United States Geological Survey (USGS) states that the Earth’s surface is made up of about 70% water and only 3.5% of the water is fresh water suitable to consume (Perlman, 2013). In order to have the resource of water that society needs, companies such as the Trinity River Authority (TRA) are formed in different communities around the globe. Water supply and reclamation companies range in size and structure from public to privately owned and run.
Thanks to the United Nations general assembly recognizing the need for clean water in Resolution 64/292, the states and international organizations have been called on to provide funding and resources to help developing countries provide safe, clean, affordable, and accessible water to all. This is a step in the right direction, seeing as women and children in some countries have to walk more than 30 minutes to collect water- if there is any water to collect at all.
Healthcare is very different as you go from country to country, but they can also be very similar. Healthcare in the US and Fiji are alike, but they are also very different.
Over one hundred million years of existence, capable of traveling through the oceans of the world. One creature so magnificent that it is able to live up to 70 years old and weigh between 200 to 500 pounds. This creature is the majestic Hawaiian green sea turtle. Although they are found throughout the world, Hawaiian green sea turtles are distinctly different from other green sea turtles (NOAA Fisheries par. 4). They travel to the Northwestern Hawaiian Islands to nest and then travel to the main Hawaiian Islands to feed. Such a unique creature is very important to the Hawaiian Islands. Hawaiian green sea turtles play an important role in the ecosystem, the economy, the culture, and the
Consumers are more likely to choose a well-known brand when the face more than one options. As mentioned before, Mount Franklin water has a 99 percent brand awareness in Australia.
- Fiji population pyramid is more of a triangle while Australia has a bulge where the baby boomers are.
Economic relations and resource management, 2. Ideology and culture including the way people think about the environment and water rights, 3.political agents like the state, transnational actors and organizations involved in water disputes and trade 4.the transnational social movements which endorse and resist water privatization, and 5.the power relations which engender unequal access to safe water (Bywater, 2008).
When customers purchase Fiji water, they are buying more than just bottled water. They are enhancing their status. Fiji has become synonymous with success. The company’s marketing strategy is geared toward upscale customers, hotels and restaurants alike. Some people want to be a part of this new trend. Drinking
Giordano Ma., Giordano Me. & Wolf A.T. "Geography of International Water Conflict and Cooperation: D
Fiji is located in the southwest Pacific, south of the Equator. It is an archipelago that consists of 322 islands, 106 of them are inhabited and the rest are natural reserves. Viti Levu is the main Island and it consists of two main cities: Suva and Nadi. Suva, Suva is Fiji’s capital and Nadi is home of the international airport. Viti Levu is home to most of the Fijian population. The second largest island is Vanua Levu and the third largest is Taveuni.
Also, it was available online within the U.S. In Fiji, the product was available only through Coca-Cola Amatil. The focus of the product was on the U.S., so they made it easier to consumers to find it. Moreover, marketing was one of the important elements as well. To build an image, to show the uniqueness and class of the product. It started with just some advertisements on magazines; but the product achieved growth, through word-to-mouth advertisements, target sampling and free product placements. It got famous among celebrities that also showed the luxury of the product. In 2007, the company launched a new marketing campaign, with the objective to show consumers the benefits of the FIJI Water. They used integrated marketing communication approach, which is a strategy designed to make all aspects of marketing communication such as advertising, sales promotion, public relations, and direct marketing work together as a unified force, rather than permitting each to work in isolation. Therefore, that's how FIJI Water was successful, with all these points stated above; with marketing having an important role in it. (Lamb, Hair & McDaniel, 2012)
The country I chose to do my report on is Fiji. I don’t know much about the country, but I like to drink Fiji water and I know it comes from there. I also think the name Fiji sounds pretty cool. I learned that Fiji was originally named “Viti” but when the islanders were pronouncing it, it sounded like ”Fiji”, so that is how it got recorded.
Water is a human right, not a commodity. It is the essence of life, sustaining every living being on the planet. Without it we would have no plants, no animals, no people. However, while water consumption doubles every twenty years our water sources are being depleted, polluted and exploited by multinational corporations. Water privatization has been promoted by corporations and international lending institutions as the solution to the global water crises but the only one’s who benefit from water privatization are investors and international banks. The essential dilemma of privatization is that the profit interests of private water utilities ultimately jeopardizes the safeguarding of the human right to water. Access to clean, sufficient