Lowering Cost Of Oil In Russia Case Study

The valuation process firms undergo when looking to acquire a company is very complex, but when a company, especially a foreign one, makes the conscious decision to enter another foreign market is even more complex and tricky. In this case three western oil firms the neophyte Philbro; the legacy Mobil; and, the middle weight Conoco all have to determine if and how they want to enter the newly open Russian Oil market. The Russian oil market is characterized as high risk for potentially high rewards. High risks include but are not limited to obsolete and poor infrastructure; murky and opaque governmental (and subsequently economic) policies; unreliable Russian geologic surveys; and, etc. Furthermore, Russian inflation is soaring and the

“If, as m any expect, allowing the program to expire causes a sharp decline in the number of businesses with terrorism coverage, we find that the federal government could spend billions more in disaster assistance after an attack than it would with the program in place” (“Extending terrorism insurance,” 2014). Act creates an incentive for a functioning private terrorism insurance market through the promise of government support for losses that exceed a specified amount (“Extending terrorism insurance,” 2014). The analysis finds that in a terrorist attack with losses up to $50 billion, the federal government would spend more helping to cover losses than if it had continued to support a national terrorism risk insurance program (“Extending terrorism insurance,” 2014). Federal spending after future terrorist attacks on the United States may be higher if the nation’s terrorism risk insurance program is allowed to expire, according to a new RAND Corporation study (“Extending terrorism insurance,” 2014). Congress reacted by passing the Terrorism Risk Insurance Act, which provides an assurance of government support after a catastrophic attack (“Extending terrorism insurance,” 2014). Congress reacted by passing the Terrorism Risk Insurance Act, which provides an assurance of government support after a catastrophic attack (“Extending terrorism insurance,” 2014). Without the program, terrorism insurance would become less available and more attack losses would go uninsured,

In fact, it appears as if every few months there is a new tragedy that has taken place in the name of terror. For example, in the past year alone major attacks have taken place in Paris, Belgium, Germany, Iraq, Afghanistan, and so on and so forth. However, according to an article written by Margot Sanger-Katz titled, “Is Terrorism Getting Worse? In the West, Yes. In the World, No,” published on the New York Times website, statistically speaking, terrorism is not on the rise overall. According to the article, the number of deaths in Western countries that are a result of terrorism have seen an increase, as seen by the fact that, “the number of people who died in terror attacks in North American and Western Europe rose markedly in 2015, claiming more than 200 lives” (Sanger-Katz). Furthermore, interestingly enough, there were far more fatalities in western countries as a result of terrorism between the 1970s and 1980s, averaging between 400-600 deaths per year (Sanger-Katz). However, overall, terrorism itself isn’t as common in western countries as it is in other areas of the world. In fact, “More than three-quarters of all terrorism fatalities over the last five years took place in six countries: Afghanistan, Iraq, Nigeria, Pakistan, Syria and Yemen” (Sanger-Katz), according to the Global Terrorism Database. However, between 2014 and

Throughout the world many terrorist attacks happen in the different communities. Looking into the suprise everyone got on septemeber 2001, the twin towers in NYC got attacked. The attacks caused major devastating results leaving most residents with fear for their lives friends, and loved ones. Gary Lafree, who is from maryland and is “the national consortium for the study of terrorism. As Gary Lafree once said, “because 9/11 has become the very symbol for terrorism, we tend to think of all terrorist attacks as being similar. Some of the effects of 9/11 are the emotional effect which changed economics and the view on terrorism.

Tourism plays an important role in the economy of a country. It is also one of the strongest drivers of world trade and prosperity. However the correlation between terrorism and tourism is undeniable. There are number of cases where it is visible that the terrorist attacks have caused a number of problems for tourist activity in a country. Places such as airports are not free from security breaches, therefore a set of new security measures have been implemented by the International Air Transport Association and the International Civil Aviation Organization (Beirman, 2011).

Risk is defined as a potential for an unwanted outcome resulting from an incident, event, or occurrence, as determined by its likelihood and the associated consequences (Baranoff et al, 2011). In order for risk to be considered insurable, it must meet two conditions provided by the insurance industry. One is that the risk must identify and quantify or estimate the chances of an event occurring with the likelihood of losses incurred. Secondly, the insurance industry must be able to set premiums for each potential customer or class of customers (Groner, (n.d)). If these two conditions are met, then the risk is considered to insurable. To assess if terrorism is insurable within the context of these two conditions we will begin by analyzing the first condition. It

The Economic consequences of terrorism (Lenain, P (2002) stated that Private businesses suffered profound destruction of assets that was calculated in national accounts to amass to $14billion, state and federal government enterprises suffered a loss in the region of $2billion, what was also astounding to read was that the rescue and clean-up costs totaled to an amount of at least $11billion.

Terrorism losses, however, are never random as terrorist attacks are intentional and carefully planned. Terrorist attacks are also concentrated geographically, usually in urban areas, because terrorism is usually intended to cause significant economic or psychological damage. This can lead to a severe adverse selection problem, where only companies who believe they are at risk of terrorism losses will seek terrorism insurance, furthering the difficulty in insuring the loss exposure. Insurers must also be aware of accumulation of risk that could result from insuring multiple buildings in a given geographical area, including the implications of fire following a terrorist attack. Furthermore, workers compensations insurers also face concentrations of risk from injuries to workers caused by terrorist attacks (III,

All across the world, there have been multiple terrorist attacks caused by ISIS. ISIS has caused attacks in Paris, Beirut, Baghdad, and multiple other locations. In Paris, ISIS killed 129 people in their attack (Eaton, “What Is ISIS?”). They have killed 46 people in Beirut. In Baghdad, they have also killed 18 people. They have also been the source behind the airline that went down in Egypt that killed 224 people. ISIS has been on a deadly and violent track, and it has only progressed with time.

Terrorism spreads well beyond the borders of Syria. Almost daily, there is some type of attack related to terrorism around the world. The Islamic State (IS) has been very public and brutal in its attacks. Its two most devastating attacks include those in Paris in November and Brussels in March. The Paris attacks claimed the lives of 130 people as the attacks in Brussels took 32 innocent lives (Ghram et al). These atrocities have both been the direct result of the open border policy. As for the Paris attacks, a French

The second type of measure is economic loss, measured as the loss of economic prosperity by people, firms, or governments and derived from impact studies of the resulting damages (Frey et al., 2007). The economic loss measurements capture the direct market value impact of terrorism, but do not fully account for intangible losses. Finally, the third category of measurement of impact is utility loss, often used in human resource journal articles concerning terrorism. The utility loss category captures the qualitative indirect and intangible losses of terrorism, such as well-being and emotional impact. For this study, we use the cumulative number of terrorist incidents to measure a firm’s prior exposure to terrorism.

Even though Russia is gaining revenue by a constant war, it will prosper more in the reconstruction phase. Once the civil war ends Russia will have the sole rights for future arms to fill the void caused by the war. Russia will have the opportunity to send military advisors and trainers. Also, Russia will be locked in with maintenance contract and parts to fix the military equipment that Syria has bought. The Russians have taken the chance to grow its arms trade in the Syrian conflict by selling to both sides increasing its income. Even though the market in Syria is boosting Russian arms exports, the conflict in Syria is greatly advancing the arms trade in another way.

It was during this time that more sophisticated weaponry were entering in to the Syrian defense arsenal such as towed artillery for example, saw an increase from about 24,000 units in 1982 to about 32,000 in 1986 (Ehteshami 1996: 55 table 2). It would be enough in theory to at least best Israel in the Golan Theater due to the sheer size of forces on the Golan front and partially retake the territory, but it would be hard for the country to hold on once Israel fully mobilizes (Drysdale and Hinnebusch 1991: 140). However, all that cost the regime money that it would not have and to top it off it did not have an industrial base suitable for a sustained war economy even though it has an industrial base for oil and cement, its priorities are more intoned with providing for a base of consumption and that of supplying Ba’athi public works projects (Perthes 2000: 162). So to compensate, Syria had to import its arms. During the 1980’s Syria spent huge amounts of money on arms imports, which at its height in 1985, imports were worth about $2,194 million roughly 15.6% of the GDP (Cordesman 2004: 209; Ehteshami 1996: 55). To guarantee those imports it would sign deals with friendly countries such as that of the

Terrorism is the use of premeditated threats or violence that is conducted against other people that are centered on politics or a particular religion (Lee & Chang, 2008, p. 184). The cost of terrorism on tourism and hospitality industry on those terror attacks like; September 11, in 2002, Bali and Paris attacks affected the global tourism industry. It led to the decline in the international travel throughout the world. The airline also reduced the capacity, over million jobs were lost across the globe in the tourism and the hospitality industry (Bac, Bugnar, & Mester, 2015, pg. 34). Consequently, affected the GDP of the countries affected. Terrorism is one of the biggest threats to the world economy. After the September 11 attack, the international arrivals decreased by 1.5 % across the world. Tourism contribution in the world involves 120 million employments; it creates US$2 trillion in travel and tourism-linked demand (Hanes, & Machin, 2014, pg. 232). The main aim of the terror groups is to ensure that they have stimulated the type of fear that will get the population to change how they conduct themselves. The concern for the repeat attacks, tourists leave the country due to fear that it might happen again, but others are determined to finish their holiday period in the country. Terrorism has further led to unemployment in any particular country that is facing this challenge due to the reduced number of visitor hence lowering the GDP this is

International tourism is a significant contributor to economic growth and development with international receipts surpassing US$ 1,240 billion in 2014. Despite the industries continual growth and notable economic power, international tourism is highly vulnerable to internal and external challenges in particular terrorism. Terrorism can be defined as the premeditated use or threat of use of violence by individuals or subnational groups to obtain a political or social objective. Terrorists target tourist and tourist destinations for a number of logical reasons, inclusive of the extreme media attention they receive which was first made evident during the 1972 Munich Olympic Games ‘Black Saturday’ attack. As we discuss throughout the report, drawing attention to the September 11, 2001 al-Qaeda driven terrorist attack, the economic and socio-cultural impacts of on the tourism