International Business Paper

Cingular, one of the nation’s largest wireless phone providers recently announced its forty-one billion dollar purchase of AT&T wireless. The deal took place on October 26, 2004. The merge of these two major corporations opened the doors for change.

Question No.1: The freedom in the world survey evaluates the state of political rights and civil liberties around the world. Provide a description of this survey and a “ freedom” ranking of the leaders and laggards of the world. What factors does this survey consider when forming the ranking?

Two important issues Adler focuses on within the essay are; the nationality of their investment projects and financing sources and whether they depend on the structure of the corporation itself. Can a multinational corporations use the planning objectives structure of the parents and its subsidiaries if the ownership of the corporation is multinational?

Along with the growth of governmental intervention in economic activities, the issue to what extent political risks may effect a company’s overseas investments has become increasingly important. This has induced a debate whether a company can expand to overseas while protecting itself from political risk. Although some researchers think that political risks could not be avoided or controlled due to the uncertainties and variability of risk, asymmetric information between companies and host government. Others argue that through the management and regulations of companies, some political risks could be avoided. This essay is an attempt to argue that if multinational companies could device appropriate strategies of investments and development, they could partly protect themselves from certain political risks when they expand to overseas.

The political environment can have significant impact on a business. It affects consumer confidence and business spending. The political stability of a foreign environment is important to consider for companies entering new markets. The government’s policies pertaining to regulations and taxation vary from country to country. It

With a population of 48 million, South Africa represents 10 per cent of Africa’s population and 45 per cent of the continent’s gross domestic product (GDP). Its GDP is almost as big as the rest of sub-Saharan Africa’s 47 countries combined. As the engine of growth for Africa, South Africa recently has been growing at 5 per cent annually. It is the largest economy in Africa, and is among the top-ten emerging economies. Before 1994, South Africa had been ruled by a white minority government that earned notoriety for its apartheid (racial segregation) policy.

Three major types of political risk discourage foreign investment since they damage its profitability and survival: first, nationalization or expropriation of foreign assets, which tends to be rare, and breach of contract, which occurs more often, threaten foreign investment; second, policy instability and arbitrary regulation in FDI-related policies create uncertain investment environments and hurt the profitability of foreign investments; and, third, war and political violence, including terrorist

One of the most exceptional and economic wonders of the post-war period is the growth in a new form, known as multinational enterprise or venture (Buckley 1976). Multinational Enterprise otherwise called a MNE, is characterized as the association which involves itself in investing resources in a foreign land. Also known as foreign direct investment (FDI), this venture maintains a value added activities in more than one nation or country other than its home country. Few of the professional experts distinguish MNE’s as two different types, first one being the MNE organization which manages a set of huge self-governing multi-domestic foreign subsidiaries which mainly manufactures goods solely for its local market, secondly the organizations who treat their affiliates with utmost importance as they are considered the most vital part of global network for creating assets for the organization (Dunning 2008). There are numerous conditions which the literature has acknowledged to evaluate the Trans nationality of the organizations:

The purpose for this paper is to discuss the importance of transferring risk of one’s assets regarding personal assets through the use of the many insurance models available in today’s market. There will be a discussion of what insurance is and what it represents to those insured. Following will be an explanation of the various insurance models available including whole life, term life, variable life, universal life, and index life programs. All of which are good viable options depending on the needs of potential insurance clients. Also included in the explanation will be the advantages and disadvantages of each insurance option. Finally, there will be a brief summary of the various insurance options and their final outcomes in protecting the policy holder’s family and their future.

“International business is the study of business activities that cross national boarders… and the national governments that regulate them” (Behrman & Grosse, 1992, p. 93). As well as briefly defining international business the above quote highlights that it is severely impacted by policy makers. It is important to investigate the relationship between the government and firms which undertake business overseas, in order to understand how and why governments intervene in international business. In recent history, the host country’s government has intervened more frequently in the businesses of multi-national corporations. This is due to the fact that governments are becoming increasingly aware of the risk that foreign firms can pose when conducting business in their country (Doz & Prahalad, 1980). One economic reason for imposing restrictions on international trade is to protect infant industries. An infant industry is any “newly established type of activity for which the economy’s existing endowment of skills and human capital…” does not allow the industry to thrive immediately (Westphal, 1982, pp. 256). Once the industry is capable the government may decide they no longer need to impose restrictions on imports, and the country’s economy will strengthen as a result of this newly formed industry. Another important reason why governments intervene in international business is in order to protect local jobs. If a government is unable to effectively protect the jobs of its

Moreover, these companies are also ready to move their production bases to another country or to layoffs and downsizing their companies if their business are unsuccessful. It causes tremendous equality between the companies and the countries that have been investing. Despite the advantages of an investment may entail technology transfer, production and employment in the country, it has the effect of trade liberalization on that companies can easily withdraw the investment. Including, technology transfer in production to those subsidiaries have been inherited by these companies are not absolutely perfectly. It could be that the relationship between the parent company and subsidiaries is the parent company control and plays a major role over the subsidiaries and based on the pursuit of profit as much as possible. This essay will provide the examples of two big companies which focus on multinational enterprises in different continents which have high turnover but on the other hand, there are problems that arise from the operation of these companies, as well as the impact on third parties that may lead to reduce the credibility of companies. The samples have to be taken into consideration and analysis in perspective of foreign investors, civil society actors and the reaction of government actors as well.

“The greater the level of involvement of a company in foreign markets, the greater the need for it to monitor the political climate of the business.” In relation to the effect of a country’s political environment on a company’s performance, analyze how the political environment of Czechoslovakia impacted Skoda? ( 18 marks)

nsurance is an interesting phenomenon. Insurers ask consumers to buy a product that they physically cannot touch and for an event that has not and might never occur. This phenomenon plays an important role in the economy and the financial markets. Well-developed insurance providers stimulate the economy by encouraging activities through risk-taking promotions. Insurers have huge funds accumulated through the small amount of premiums paid by individuals. These funds are then invested in ways that contribute to the wellbeing and growth of the insurers and promote economic growth in the countries in which they do business. Not only does the insurance system provide numerous direct and indirect benefits to individuals and their family, it benefits industry and commerce to communities and counties as a whole; it can take credit for enabling banks and financial institutions that lend money on the basis of the collateral security of insurance, also for industrial and commercial trade undertakings that depend on insurance for their operation.

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

This report is primarily based on my experiences from the day to day official work under the department of finance & accounts at the head office of Peoples Insurance Company Limited. As my research method, I have used qualitative data collected and some secondary information from the annual reports (2013-2014) of the company & web information from the related companies.