Geely Automobile Essay Example for Free

Geely Automobile EssayIn the first part, the ECLIPTER factors including econography, purification, legal organization, income compose, political happen, tax revenue regime, ex interchange rate and outriderictions, in concert with the multilateral institutions such as WTO, EU and ASEAN volition be examined by using UK and Malaysia as examples. thusly based on this analysis, it will provide an sound judgement of the familiaritys everyplaceall inter case expansion strategy and process. In the second part, legal system and income profile, the two most important ECLIPTER factors on Geely overseas operations, will be evaluated. Further more than, the scheme which Geely used to deal with the impact of these two factors and leverage the multilateral institutions will be shown. Finally, this report will analyze whether the caller-outs international adaptation of the business function is pieceive, and then give whatsoever recommendations and lessons. 2. ECLIPTER Factors Analy sis 2. 1 Econography Econography refers to physical and human assets including distance from major foodstuffs, and inwrought resources of nations that affect industry performance.In the first, the close distance between p arnt company and foreign subsidiary send packing help the company to reduce the pack lives and overhead expenses it withal can im assure the connection between them. If the p atomic number 18nt company is in china, it is better to build a subsidiary in Asia such as Malaysia. Secondly, the natural resources used for fashioning simple machines mainly include steel, copper, and aluminum. If the country owns rich mineral resources, it can greatly provide benefit in the production of travels. One of the major purposes for many multinational corporations establishing overseas subsidiaries is to exploit the foreign natural resources.This is good for companies to 5 foreign Business Environment II reduce production costs and get warring advantages. As World St eel Association reported in 2009 that the crude steel production of joined Kingdom is 13. 5 in 2008, whereas the crude steel production of Malaysia is 6. 1 in 2008. 2. 2 Culture This paragraph will analyze the effects of culture on elevator car industry done power distance index and saving rate. Firstly, power distance index measures the degree of inequality exists in a society (Hofstede, 1997). The power distance index is 80 in Malaysia whereas it is only 35 in UK (Hofstede, 2008).The unequal distribution of wealth makes most Malaysian citizens favor to hold a commercial auto. So the inexpensive Geely auto could be a good option for them. Secondly, saving rate could be a beat to show the attitude of citizens. The saving rate of Malaysia was 47 per cent in the year 1998 which ranks second in Asia (Azia, 2004). In contrast, the saving rate in UK was importantly let out, which was less than 10 percent in the past ten years. For instance, the saving rate of UK household in 2008 wa s only 1. 7 percent (chart 1)(Presser, 2008). So UK citizens ar apt to consume a relatively high price elevator car. graph 1Resource from Posser (2008) 6 International Business Environment II 2. 3 Legal system The auto industry has been affected by laws and government laws since the 1960s. The first safety act passed in 1966 by Congress and was called the National commerce and Motor Vehicle Safety Act (Highfill, 2004). This act forced fabricaters to improve the safety for the passengers, the driver visibility, and the braking of the car. Not only safety, but also environment is existence growingly concerned even before the oil crisis. The Vehicle Air Pollution and Control Act passed in 1965 was the first act to set standards for elevator car pollution.Then in the 1970s, Congress passed the Clean Air Act that led to a 90% decrease in automobile emission within the next sestet years (ibid). In the 1970s the oil crisis led to the approval of The Energy Policy and Conservation Act of 1975 which stated that all automobiles essential meet a certain mileage per gallon. The act required that all automobiles had to meet a standard of 20mpg by the 1980 model and then 27. 5 mpg for the 1985 model (ibid). EU 2020 evolution strategy also emphasizes the importance of low carbon automobile (Society of Motor Manufacturers and Traders, 2010).There ar also many special laws for auto industry in different countries, such as Malaysia, which has built a free trade area for production and assembly of products for export-oriented enterprises. Companies can enjoy the minimum responsibilitys, raw materials and alter mechanical equipment import formalities. Nevertheless, the Malaysia government regulates that more than 80% products should export to some other countries (Daily News, 2006). Furthermore, the UK Byers Acts Measures to cut the average price of a car by ? 1,100 and save hole-and-corner(a) car buyers around ? 1 billion a year.Although it may lower the profit t alent of auto industry, the number of consumers will increase little by little (DTI, 2000). 2. 4 Income profile Since automobile is non inferior goods, the demand of automobile would rise when income increases. In the economic aspect, income could be an indicator of the purchasing power of individuals and nations. Data from UK national statistics government agency (2010) demonstrated that despite the contracted 4. 9 percent of GDP in the whole year, the GDP increased 0. 4 percent in 7 International Business Environment II the fourth quarter of 2009. Furthermore, Household expenditure also rose 0.4 percent in the fourth quarter of 2009 in UK (chart2). For Malaysia, the GDP growth in the fourth quarter of 2009 was 4. 5 though the figure was negative in the whole year (chart 3) (Malaysia statistics, 2010). It can be find that the economy of both UK and Malaysia seem to recover from the global financial crisis. This positive signal predicts the growing demand and distensible market for Geely in both countries. Chart 2 Resource from UK statistics 2010 Chart3 Resource from Malaysia statistics 2010 8 International Business Environment II The core militantness of Geely automobile relies on its high performance-price ratio.Per capital GNI (Gross national income) in Malaysia was 25784 RM in 2008. By analyzing the 2004 United Nations Human Development (UNHDP) report, except the 20% population of richest and poorest class, Geely will be a better choice for the rest citizens in Malaysia(chart 4) (Lumpur, 2004). In comparison, the young hoi polloi account for a great amount of population in UK. A source from HMRC shows the average income of under 20 years is ? 9,570 and 20-24 years is ? 13,200 which is below the average (chart 5). It implies that when young generation decide to buy a car, price is the first consideration factor.For medium quality car manufacture companies, young population in UK could be a potential group of customers. Chart 4 9 International Business Environment II Chart5 Median Age Band Under 20 years 20 24 ? 11,800 years 25 29 ? 17,000 years 30 -34 ? 19,500 years 35 39 ? 20,100 years 40-44 ? 20,200 years 45 49 ? 20,300 years Resource from Lumpur (2004) ? 28,600 ? 24,800 ? 35,400 ? 15,200 ? 20,100 ? 28,100 ? 24,600 ? 34,600 ? 14,900 ? 19,800 ? 26,800 ? 23,600 ? 31,700 ? 15,500 ? 20,100 ? 23,900 ? 21,600 ? 26,700 ? 16,400 ? 20,100 ? 19,300 ? 17,800 ? 20,600 ? 15,900 ? 17,800 ?13,200 ? 12,400 ? 13,800 ? 11,200 ? 12,300 ? 8,130 ? 9,570 ? 8,490 ? 9,810 ? 7,990 ? 9,250 Median Income Mean Income Income (Men) (Men) (Women) (Women) Income Income Income Mean Median Mean 2. 5 Political luck match to Guinger (2001), political risk describes the stability of government institutions. It can be measured in a variety of ways such as uniformlihood of foreign aggression and civil insurrection. The Transparency International (2009) showed that UK and Malaysia both face some problems of political putridness, which adversely affects the eff iciency of economic operation.World Bank estimates that corruption could cost Malaysia as much as RM10 10 International Business Environment II billion a year an amount equivalent to 1 or 2 per cent of GDP. The corruption in the UK is lighter than Malaysia, which ranked 17, whereas Malaysia ranked 56 in world in 2009 based on depravation Perceptions Index 2009. But the corruption in UK is not unheard. Surveys by Control Risks and Simmons Simmons show that the awareness of UK laws against foreign bribery may be decreasing over time.In 2002, after the act came into force, 68 percent of respondents said they were familiar with its main points. But in 2006, 48 percent people said that they hurt totally ignored it (Global Corruption Report, 2009). 2. 6 Tax Regime Tax regime refers to the tax instruments that governments use to raise revenues from multinational firms, such as collective taxes. The tax of Malaysia is transparent, the multinational corporate must be taxed 30% of the cor porate income which is just the same as Malaysia companies Marketing directory, 2005) According to the tax incentive treaties, auto ( .industry may be eligible for pioneer status which is given by the way of an abatement of 70% of the profits for five years (ibid). The rest 30% of the profits will be taxed at the prevailing corporate income tax rate. The profits abated are exempt from tax and will be gettable for distribution as tax-free dividends. In UK the resident corporate tax is the lowest in Europe, even the tax is zero for the small companies in 2002(Lawandtax- recents, 2010). According to the tax treaties, multinational corporate which set up, purchase or control the companies in UK can follow the resident tax (Navstar, 2009).In the ordinary route of events, foreign companies cannot follow the low corporate tax, but with regard to double taxation and the agreement between UK and China, Chinese multinational corporates in UK now catch up with the low tax (ibid). 2. 7 Exch ange rate Stable trade policies are extremely important for both the economic welfare of the countries and the multilateral business system. Unfortunately, the liberalization measures were adopted by many countries. As Dornbuschs 1976 analysis has pointed out that when the exchange rate is used to provide protection for domestic firms, it is through undervaluation.An undervalued 11 International Business Environment II exchange rate protects domestic firms from imports and gives domestic firms greater incentives to export. For example, the Balance of Payments Committee of the WTO has received 39 requests from process countries for derogations from their international obligations and for a temporary increase in temporary protection. Moreover, several developing countries, such as Malaysia, have recently increased tariffs in receipt to financial crises even though the higher rates remain below the rates these countries bounded in the WTO.Moreover the analysis said China has drop d ead a great auto exporter, as a result of the huge subsidies, an undervalued exchange rate and dirt-cheap credit (Swaminathan, 2009). 2. 8 Restrictions Restrictions refer to the taxes and limitations that host governments place on foreign products and services or on foreign firms themselves when they enter or leave the host economy. Because of the policy of protecting their national automobile industry, the import tax of automobile is relatively high in Malaysia.Since 2004, Malaysia began to reduce the automobile import tax for the import components the tax is reduce from 25% to 10%, and for the whole automobile the import tax is drop from 130% to 30% for the companies outside of Southeast Asia (MEI, 2009). In 2010, according to the agreement of ASEAN, the automobile import tax will be zero to all the regions of ASEAN. UK is a member of EU, it followed the economic agreement of EU which sets no import or export tax between members of EU and they must charge the same tax when they ha ve business with the third country (European competitiveness, 2009). 12.International Business Environment II Scoring Analysis of UK and Malaysia Country brand Econography Culture Legal System Income Profile Political Risk Tax Regime Exchange Rate Restrictions Total (10) (10) (20) (20) (10) (10) (10) (10) (100) 8 7 18 8 8 8 7 7 71 7 6 16 15 5 9 8 9 75 UK Malaysia 3. Institutions 3. 1 WTO The major objectives of WTOs roles are ? the creation of a common automobile market through the exclusion of barriers to intra-Community trade the maintenance and expansion of a competitive world automobile industry the use of voluntary import restrictions to prevent cheap imports and to maintain competitiveness?(European Commission, 2006). For example, in 2006, WTO announced the establishment of a ornament to examine whether Chinas tariffs on imported auto parts violate WTO trade rules, following a joint complaint make by the United States, the European Union and Canada, who accused China for it s discriminatory charges on imported auto parts. After examining Chinas related regulations, WTO panel declared that Chinas regulations are at variance(p) with Chinas WTO obligations. China has agreed to make the necessary regulatory changes by September 2009 (Herd, 2006). 13 International Business Environment II.WTO facilitates Geelys international expansion since the elimination of trade barriers has cleared its path to world market and made it integrated to the world economy. In 2002, after China joined into WTO, 100 automobiles of Geely exported to Syria (Luo, 2005). 3. 2 EU EU functions as a rule-imposer. It sets strict requirements and institute rules and regulations to improve fomite safety. Besides the vehicle crash tests executed by Euro NCAP (European New Car sagaciousness Program backed by European Commission), at that place are also some regulations set to protect the environment.First, in order to respond to the gradual soreness of greenhouse effect, the European c ommission developed a mandatory emission standard to limit the emission of one major kind of greenhouse gas, carbon dioxide. The regulation set a fleet-average CO2 emission target for passenger cars, which is 120 g/km to be reached by 2015 (European Commission, 2010). The vehicle manufacturers must reach the CO2 emission target of 130g/km, with an additional reduction of 10 g/km to be provided by supplementary measures, such as the use of hydrogen fuel.A long-term target of 95 g/km to be reached by 2020 is also established by the regulation (ibid). This regulation will take effect in 2012. From 2012 onwards, vehicle manufacturers who do not meet this target will have to gestate penalty for their excess emissions. According to DieselNet (2010), from 2012 to 2018, the penalties are 5 per vehicle for the first g/km of CO2 15 for the second gram 25 for the third gram 95 from the fourth gram onwards. From 2019, manufacturers will pay 95 for each g/km exceeding the target. Another congr essional mandate imposed by European Commission requires tire pressure supervise systems on all bare-assed cars in 2012.According to Europes Information Society (2010), many road accidents resulting in fatalities and physical injuries are tie in to tire defects. Furthermore, under-inflated tires can result in severely inefficient use of fuel and cause an extra two million tons of CO2 emitted into the standard atmosphere per year. So this mandate enhances vehicle safety and protects the environment. 14 International Business Environment II These regulations have incurred a rise in car prices since vehicle manufacturers are forced to increase price to offset the cost of upgrading.These regulations put Geely in an unfavorable position. Since Geely is better known for making low-tech and cheap cars, making eco-friendly cars is not included in the competencies of the company and huge RD spending is inevitable for nurturing this competence. They set a high bar for the competition and limit Geelys ability to expand market in Europe. 3. 3 ASEAN ASEAN Association of South East Asia Nations is a geo-political and economic organization of 10 countries located in Southeast Asia. China and ASEAN are both newly-emerged, rapidly-developing auto markets.Cooperation in auto industry between China and ASEAN will bring a win-win situation for the two sides and make their cars more competitive in a global competition. For instance, according to Xinhua News Agency (2006), a report released by the Ministry of Commerce Indonesia has announced that compared to the expensive Japanese sedans, the China-made ones gradually gain popularity for more favourable price-performance ratio. ASEAN country also needs investment from Chinese carmakers to expand local employment and for more price-favourable cars, said a Germany auto expert at the China-ASEAN Expo, 2006.Consequently, in general, ASEAN opens its gate to Chinese car companies including Geely to achieve a win-win situation. 4. As sessment of Geelys overall international expansion strategy Geelys current international strategy is to produce low-priced automobile, so the market size and consume power of a foreign market are extremely valued by Geely. Malaysia automobile market resembles China more than UK, in the aspects such as the peoples income, the similar culture, and the similar geographical position, and so forthAs by now most cars have been exported to some developing countries like South-East Asia, Ukraine, Russia, and Mexico, Malaysia will be good choice. Meanwhile, although UK does not represent a neighboring or ? home market, 15 International Business Environment II as markets in South-East Asia do, UK could be seen as an interesting market with a potential for higher margins, higher price levels and a more mature market for branding, technology, etc, as the UKs income per capita, and the automobile barters volume are higher than that of Malaysia.Considering the future international increment, Geely should focus on UK. Therefore, at first, it is better for Geely to develop its ? producing automobile which most of people can buy strategy in Malaysia, and when Geely is able to enter high-end automobile market, UK will be a better choice. In terms of multilateral institution, after evaluating the influence of international organizations, we suggest that Malaysia is a better choice for Chinese car companies to exploit new markets. Firstly, a win-win situation guarantees a favourably corporate relationship between Geely and ASEAN (Eichengreen, 2006).Secondly, there are various quality-related requirements and constraints in EU and probably NAFTA, which puts up a strong challenge for those Asian auto makers. Moreover, by far, there is no evidence to prove the acquisition of Manganese Bronze and Volvo have considerably increased Geelys sale in developed nations. Thus considering the opportunities and threats faced by Geely, it is recommended that the company emphasizes on devel oping nations markets, rather than the developed markets. 5. Marketing analysis 5.1 Legal system According to Alistair Darlings pre-budget report, UK will bring new opportunities for the low-carbon industries. through with(predicate) the Innovation Investment Fund and the Carbon Trusts Venture Capital scheme, UK will invest at least ? 160m in low carbon projects (Guardian, 2009). They will also invest ? 90m in the European Investment Banks new 2020 fund, which will put 6. 5 billion Euros of finance in green infrastructure projects. In this report, there are alterations to the climate change levy, company car tax, and fuel benefit charge (ibid).This is good news for Geely because now it dedicates itself to produce high-tech and eco-friendly automobile. In 16 International Business Environment II UK the amount of car tax depends on the price and the discharge amount for carbon, which is from 9% for electric motor car to 10%-35% for petrochemical car. UK also has a successful car scra ppage scheme, which gives consumers a ? 2,000 discount off. If they scrap their old vehicle, it will help up to 125,000 families replace their inefficient boilers with new models (Julia, 2009).Through the governments support of low-carbon industry, Geely has more opportunities to innovate high-tech and eco-friendly automobile. Furthermore, because of the low tax and car scrappage scheme, customer is inclined to buy or change an electric motor car,. In 22nd March 2006, Malaysia published the new automobile policy (MEI, 2009). Since that day, the import taxes of CBU (Complete Built Unit) are reduce from 20% to 5% for the ASEAN members and 50% to 30% for other countries. The import taxes of CKD (Completely Knock Down) are 10%.In 28th October 2009, Mustafa Mohamed announced many new policies for auto industry which will give much more preferences and subsidies for the new energy automobile companies (ibid). 5. 2 Income profile It is known that the success of Geely relies mostly on keep ing low cost and offering the affordable cars. For instance, Geelys best-selling four-door sedan, the King Kong, has been sold 6127 in April 2010 and the retail price is between 47,800RMB 58,800RMB (Jiang, 2010). Geely sold 329,014 passenger cars in 2009, making it is the third largest domestic car producer (Zheng, 2010).However, Geelys winning formula is under pressure in china because Chinese consumers are becoming wealthier the higher-end models will gradually be affordable for them. Meanwhile, brands such as the Chery QQ, Ford Fiesta, and Honda Civic are threatening Geelys current market position. Geekys winning formula is also challenged at the oversea markets like UK and Malaysia. Date from HMRC (HM Revenue Customs) indicates that nearly 50% of the population in UK earns ? 16400 annually which is much higher than the middle class income of Malaysia.This group of population could be a dominant power in the automobile market in UK. It is not a wise choice to sell its inexpensi ve cars in UK considering that low price would not be 17 International Business Environment II collective for these relatively rich citizens. The similar situation also happened in Malaysia which made Geelys low price cars less competitive. This is because that the predicted real GDP growth in 2010, 2011 and 2015 are 4. 7%, 5. 0% and 5. 0%, Malaysian people are becoming richer than before(IMF, 2010).Their increasing incomes will directly affect their car buying choice. People nowadays prefer the higher-end models and the market share of Geelys lower-end models are estimated to reduce gradually. 6. Geelys reacts to the impact of the ECLIPTER First, since the middle of 2009, the sales of car exports decreased from 37940 in 2008 to 6297. Furthermore, although Geely exports to more than 50 countries, most of them are developing countries which are not so effective in the promotion of the brand image.In order to get rid of low-end image, Geely changed its strategy from ?produce automobi le which most of people can buy to ? do not produce cars which price is below 40000 yuan (Fang, 2009). Besides, Geely take over Volvo which also expressed its desire to promote the brand image. Geelys strategy changes starts in May 2007, which is focus on transforming its competitive advantage from price to technology. In 2007, Geely used three new motorcycle typeYuan Jing, King Kong and Zi You Jian, which have relatively higher value added to substitute the Haoqing, Meiri and You Liou.For doing that, Geely scraped its old molds, jigs and production line which worth up to 8 billion Yuan. In 2008, the sales of these three new auto types grew 12% without discount marketing strategy (Geely annual report, 2009). Furthermore, in 2010, Geely will market 21 new auto types, and some of them were designed by Fabrizio Giugiaro, the Italys famous auto manufacturer. Moreover, the new energy auto will also be produced in 2010, which will include bear cat and DiHao (Wenqing, 2010). These new ene rgy auto types have been showed in the Beijing car exhibition 2010 (Phoenix auto, 2010).In order to deal with these two factors, Geely also has a completing strategy cooperate or takeover other well-known international auto manufacturers. It will not only help Geely to promote its auto manufacture technology, but also improve its brand image. Geely has already cooperated with 18 International Business Environment II Britains Manganese Bronze to produce riotous brand-named taxi (China car Times, 2010) and assembled cars with Information Gateway Corp Sdn Bhd (IGC) in Malaysia, 2006 (Tan, 2006). 7. Leverage the multilateral institutions7. 1 ASEAN One of the stunning news in 2005 was the political barriers Geely met in Malaysia, which was considered as the biggest challenge for its overseas expansion so far. Geelys President Li Shufu described Malaysia as ? an unexpected trap? because of Malaysia governments rejection on fulfilling the contract. After examining the ECLIPTER factors of Malaysia market, Li Shufu and his team regarded Malaysia as the first pillbox and cornerstone of its expansion to ASEAN countries. He believed the learning in Malaysia could be helpful.Therefore, in May 2005, Geely has made a joint contract with Malaysia IGC group for building CKD factory in Malaysia. However, Malaysia government denied the contract after a new document on automobile being published. According to the document, all cars made by foreign automobile manufacturers were prohibited to sell in Malaysia. Then the situation in Malaysia went against its expection of getting a huge sale. However, according to Geely officials, to some extent, ASEAN agreements have made Geely to reconsider the importance of Malaysia (Harwit).In South East Asia nations, there are some strict tariff-related regulations for automobile industry. Contrarily, tariff among ASEAN countries is in a minimum rate. According to an inner-ASEAN agreement, from 2003 to 2009, Indonesia, Thailand, Malaysia, Phil ippine, Singapore and Vietnam exempted auto import tariff for each other. From 2010, all ASEAN countries will implement zero auto import tariff for each other. At the same time, Indonesia, Thailand and some other ASEAN nations demand of cars is increasing considerably (JAMA, 2008). Especially after an impressive increase in 2007, the car-sale in Indonesia becomes significantly dazzle.Therefore Geely 19 International Business Environment II planed to only manufacture cars in Malaysia and then export cars to other ASEAN countries, which seems like a forward-looking plan in a long-term development. Finally, Geely decided to move its Malaysia CKD manufacture center to Indonesia. However, its vision of leveraging ASEAN to pursue a sale performance in all ASEAN nations has not changed. 7. 2 EU In terms of EU regulations, since Geely has acquired 100% ownership of Volvo, the Swedens company, Geely is no longer an alien of European market.According to the EU Single market concept (European Commission, 2010), a free circulation of capital, labor, goods and services between EU members is granted. Geely now have got over tariff barriers and competes as an insider. 8. Implications and Recommendations One of the strategies of Geely is to promote new energy automobile, there are two advantages for this strategy Firstly, Geely can get powerful support from government since the development of new energy is encouraged by the government.Secondly, since new energy automobile is environmental friendly goods, it not only reduces the carbon emissions, but also decreases the expenses on routine maintenance (Bond newspaper, 2010). However, there are also drawbacks, such as the inadequate facilities. Acquiring other world famous bands is the other strategy of Geely, which facilitates the companys global expansion. For instance, Volvo is well-known by its safety, which could provide Geely with a competitive advantage on its brand trust. It also provides a valuable, more upscale user image.Therefore, through merger or acquisition of international well-known brands, Geely can get greater international fame and advanced technology, integrate into the world market and attract more consumers. However, certain risks should be considered when Geely acquires Volvo. The first risk is that the culture conflicts between two countries. It has been reported that one of the hindering factors is that the union of Volvo in Sweden disagrees the acquisition for their reduced 20 International Business Environment II welfare and unemployment (Gasgoo, 2009).The second risk is that the value of acquired equity. It has been said that Volvos vaunted reputation for safety has been challenged by other manufacturers which can also provide automobiles with same safety standard. In this case Volvos ? safe? advantage may not be as competitive as before. 9. Conclusion To sum up, this essay has analyzed the ECLIPTER factors of Geelys two overseas markets, Britain and Malaysia, and examined in fluence of the related multilateral institutions. According to this matrix analysis, legal system and income profile have the most important impact on the auto industry.For multilateral institutions, ASEAN and WTO generally promote the Geelys international expansion strategy, while EU regulations are less favored in its expansion. Considering both ECLIPTER factors and related multilateral institutions, it is suitable for Geely to enter developing nations to acquire market share at its sign development. But for long-term development, Geely need to pay attention to research and develop higher-end models. With the development of Geely Company and the overall auto industry, Geelys focus will cracking from developing countries to developed countries.Currently, Geelys low price strategy is challenged by the legal system and income profile of developed countries. Therefore, Geely is increasing its efforts in releasing new model cars and tapping into developed countries through merger or acquisition. Geely intends to promote its brand image and enlarge its market share through these strategic moves, although it has to face the risk of culture conflicts and the uncertainty of acquisition value. 21 International Business Environment II 10. References Azia, A. Z. (2004) Malaysia-Encouraging Saving in a Dynamic Economy Online. Available at h.

The biblical banners Essay Example for Free

The biblical banners EssayIn this New York Times article, In Texas, a Legal Battle everywhere Biblical Banners, Manny Fernandez, a metro reporter, argues whether biblical banners should be allowed or banned due to the law. He develops the claim by first providing details about how Mr. Weldons community got enraged. Then he provides information saying Weldon banned the biblical banners out of concern that the signs were unlawful and amounted to school sanctioned religious expression. Towards the end, Fernandez points out that the shift centers on whether the banners amount to private speech protected by state and federal law or government sponsored speech that can be modulate and censored. Fernandezs purpose is to answer the readers question about biblical banners and if the should be allowed in order to educate the public and provide familiarity about the situation at hand. He establishes an informative tone for concerned citizens who may want or be against biblical banners. Fernandez provides the reader with facts and statistics, for example in paragraph 4, the district received a letter from the Freedom From Religion Foundation, a Wisconsin based group of atheists and agnostics. The effect of such details serves to lend believability to the authors assertions since it is impossible to argue with the facts. In addition, negative diction in paragraph 7 conveys a negative feeling towards the banners and the marquee impertinent a church. Finally, the use of biblical allusions throughout the article is used to defend the use of biblical banners. This work is significant because it challenges and reminds us all to be certified of aberrant issues regarding biblical banners.

Commercial Entrepreneurship And Social Entrepreneurship

Commercial Entrepreneurship And Social EntrepreneurshipIn this session, I will discuss about the difference of commercial message entrepreneurship and fond entrepreneurship. Commonly, hearty entrepreneurs and commercial entrepreneurs be having similarity as well as differences. There will also certain issues regarding kindly entrepreneurship to be discussed in this session. This chapter will focus on the motivation factor of fond entrepreneurship. There will also brief discussion about motivation of commercial entrepreneurship in order to shows the different motivation factor between two types of entrepreneurship.The graduation exercise definition of entrepreneurship was defined at 250 years ago. The first crucial government agency of the entrepreneurship was first recognized by eighteenth century businessman Richard Cantillon (1931). He described entrepreneur as undertakers engaged in trade exchange at their own take a chance for the purpose of qualification a expedienc y. Dave Roberts and Christine Woods (2005) has defined entrepreneurship base on two perspective which included academic and practiti integrityr. crowd Howard Jane (2006) stated entrepreneurship aims at creating lucrative operations go forthing in private gain. This contrast is, of course, overstated. Commercial entrepreneurship does clear society in the form of bleak and valuable goods, services, and jobs, and can carry transformative hearty impacts. Such transformations can even be a driving motivation for some commercial entrepreneurs.Kao (1993) has defined that Entrepreneurship is the process of adding something new creativity and something different innovation for the purpose of creating wealth for the individual and adding value to society. An entrepreneur has to be creative and ripe in order to have a sustainable growing business. In fact, entrepreneurs are considered as unmatchable of the main contributors to country economy growth. Entrepreneurial activity benefit community and society as it creates job fortune, income, products and services with his creativity and innovation to us.2.2.2 subroutine of Social EntrepreneurshipNowadays, Social entrepreneurship is deally to become more important than commercial entrepreneurship as there are more kindly jobs occurred. Seelos and Mair (2005) defined neighborly entrepreneur create models in order to fulfill basics human needs that existing merchandiseing have failed to satisfy. Social entrepreneurs are having the mission to change society. James Howard Jane (2006), stated that amicable entrepreneurship as innovative, sociable value creating activity that can occur within or across the non-profit, business, or government sectors. They have get ahead elaborated the concept for deeper cause for the concept by developing four variables which are market failure, mission, imagination mobilization, and performance measurement. To certain extend, social enterprises correct market failure where by a problem for the commercial entrepreneur is an opportunity for the social entrepreneur. The authors have showed that proposition that market failure will create differing entrepreneurial opportunities for social and commercial entrepreneurships. The Mission for the social entrepreneurship is aims to create social value for the public good by helping and benefits the public. humane capital for the social entrepreneurship will be a vital factor determining the success of social entrepreneurship. Usually, the economics of a social entrepreneurial venture often make it arduous to revenge staff as competitively as in commercial markets. Thus, employees who tempt for social enterprises often hope to receive non-financial compensation for their work. Human and financial resource mobilization will be a prevailing difference and will lead to fundamentally different approaches in managing financial and human resources. It would be difficult to measure the performance of a social enter prise just like commercial enterprise as we can measure it in harm of profitableness and market piece of ground. Thus, performance measurement of social impact will remain a fundamental differentiator, complicating accountability and stakeholder relations.My Justice, Resource mobilization, it is not about the compensation, it is about self- willingness to work for the social enterprise.Dave and Christine (2005) have defined social entrepreneurships base on two perspective which are academic perspective and practitioner perspective. From the academic perspective, they stated that Construction, evaluation and pursuit of opportunities for social change, while walking anecdotes, with new ideas to address major problems, who are relentless in the pursuit of their vision, people who simply will not take no for an answer and who will not give up until they spread their ideas as far as they possibly can, is derived from practitioner perspective. There is no single way of characterizing socially entrepreneurial ventures (Juliet and George, 2005). Heidi Candida Elaine (2009) explained the landscape of social entrepreneurship which includes social purpose ventures and enterprising nonprofits. Regardless of profit orientation, social entrepreneurs identify opportunities to solve social problems, both people and society problems.Yohanan (N.D) has differentiated two major approaches in the explanation on social entrepreneurship. Both major approaches stress on the social desirability of the initiatives studied, but there are some different aspects. The first approach by Brown and Letts (2004) is focused on intentions and subjects. Social entrepreneurs put innovative efforts to solve persistent social problems of poverty and marginalization that, to some extent, have been successful in increasing their impact and catalyzing social transformation. Another approach which is make by Alvy and Lees (2000) is based on opportunities and needs. People who realize where there is an opportunity to satisfy some unmet need that the state welfare system will not or cannot meet and who gather together the necessary resources.2.2.3 Social Entrepreneurship as Profit or Non-profit Organization?In the findings done by Pomerantz (2003), he stated that social entrepreneurship as the development of innovative, mission- supporting, earned income, job creating or licensing, ventures undertaken by individual social entrepreneurs, nonprofit system of ruless, or nonprofits in association with for profits. From his point of view, a social enterprise can either be non profit or profit generating organization. For example, Margaret Cossette used a grant of $ 400 to turn a piffling public-sector into not-for profit enterprise which provides home care for rural seniors in America. When needs or demand is increased, Cossette didnt have enough capital to cope with the situation. A NFP organization is not qualify for bank loans. Thus, Cossette turn her venture, Missouri Home Care, into the for-profit arena in order to apply for loans to expend her services. In fact, there are many more cases that clearly lie on the for-profit side of the divide but are readily serve as social entrepreneurship by reputable commentators. Fundamentally, social enterprise is nonprofit organization which benefits society without gaining any profit. However, Gregory (1998) states that there is increasing number of nonprofits have been seeking additional revenues by behaving more like for-profit organizations. For example, pull round the Children, an international development agency, sells a line of mens neckwear. Such ventures are for generating the cash in creative way. The profitability is linked with social entrepreneurship for certain cases, but the social ends still remain the dominant goal of these ventures.In conclusion, a social enterprise can be either profit making or non-profit making organization. However, profit gained for social enterprise is mainly contributed for social purpose much(prenominal) as helping poverty and solving social problems.2.3 penury for EntrepreneurshipMotivation is one of the elements in influencing the process of entrepreneurship. Shane, Locke and Collins (2003) have differentiated the motivation factors into two groups which are general factors and task-specific factors. The general motivation factors, including need for achievement, locale of control, vision, lust for independence, passion, and drive.2.3.1 wish for AchievementMcClelland (1961) stated that individuals who have higher level in need for achievement (nAch) are will have higher desire to involve in activities or tasks that have a high tip of individual responsibility for outcomes. Entrepreneurial activity involves high responsibility and high risk. In order to have great achievement, entrepreneurs will like to take the challenge to start up and grow their business successfully. Hence, McClelland also argues that entrepreneurial roles are charact erized as having greater degree of risk, skill and effort, as well as feedback on performance. From the Maslows hierarchy, entrepreneurs are individuals who are in the level of self-esteem or self-actualization. They desire for self-fulfillment as to be successful entrepreneurs.2.3.2 Locus of ControlLocus of control is the belief in the degree which individuals believe their actions or own(prenominal) characteristics decide the consequences. Individuals who have an external locus of control believe that the outcome of an extent is out of their control, while individual with an internal locus of control believe that their personal actions directly affect the outcome of an event (Rotter 1966). Individuals with internal locus of control will like to play entrepreneurial roles because they desire positions in which their actions have a direct impact on results.2.3.3 VisionAn individual with the vision of creating a profitable firm can be motivated to be an entrepreneur. Vision is influ enced and affected by cognitive factors much(prenominal) as noesis, skills, and abilities (KSAs). The combination or integration of motivation and cognition will raise create visionary action (Locke, 2000). Firstly, the entrepreneurs will need to have the knowledge regarding the sector or industry they want to invent into. Next, they will need to have the skills such as leaderships, bargaining and purchasing, market analysis, decision making, team building, supply as well as problem solving. Furthermore, the entrepreneurs need to have the abilities such as financial abilities and intelligence, too. Aligned with the KSAs, the entrepreneurs will have a realistic and possible vision, including the scheme for the organization and manage it well.2.3.4 Desire for IndependenceIndividuals choose to start up their own business because they dont like to work for other people. They desire independence whereby they make decision by themselves, they choose their own path and life rather t han living off the efforts of others. Many researchers have observed that the entrepreneurial role necessitates independence. First the entrepreneur takes responsibility for pursuing an opportunity did not exist before. Second, entrepreneurs are, in the end, responsible for results, whether achieved or not achieved. Further, individuals may pursue entrepreneurial careers because they desire independence. For example, in interviews with U.S. female firm founders, Hisrich (1985) found that one of the prime motivations for starting a business was a desire for independence.2.3.5 PassionPassion is a popular opinion of an individual which will be converted later into action in order to show they are enthusiastic people. Shane, Locke, and Collins (2003) argued that passion is a fundamental motive rather than motive to serve their employees and society. An entrepreneur will be passion for their work, love their work and the process of establishing an organization by their efforts and make it profitable yet successful. The reason of putting so much effort by entrepreneurs on the organization is actually come from their own interest. Passion is hardly to be measured in quantitative but can be observed and come out with qualitative analysis. Baum (2001) has develop five domains for passion which are personality, situational motivation, skills, strategy and environment. Passion has a direct impact in firm growth.2.3.6 DriveShane, Locke, and Collins (2003) stated that there is some relation between drive and ingest for Achievement. However, the term drive is referring to broader aspect than Need for Achievement. The authors have further explained the variables for drive which includes ambition, goals, energy and stamina, and persistence. Ambition affects the level of desire for entrepreneurs to create something great, eventful and meaningful. An entrepreneur is the one with great ambition such as to be successful in life, to be the one who have great influence on others , to create something new and others. Ambition will drive entrepreneurs to set high goals for one and others. Better performance will be driven by high goals comparing to the result of low goals. When a goal is being persuading consistently, we can say it is the persistence of the entrepreneur to realize their dream.Motivation factor for individual to start up a business can be categorized into two aspects which are internal factor and external factor. Internal factor is related to individual factor such as need for achievement, locus of control, desire for independence, cognitive development and drive. External factor will be including environment factor such as market demand, economic status and peer influence. External factor will indirectly become the driver of individual to develop own passion to become an entrepreneurs.2.4 Motivation for Social Entrepreneurship2.4.1 AltruismAn entrepreneur who is altruistic will apt(predicate) to start up social enterprise. This phenomenon is due to the willingness of the entrepreneurs to contribute and sacrifice one-self in order to benefit other. According to Williams, Wee Liang, and Teck Meng(2005), there are two type of social entrepreneurs in terms of the object. The first type of social entrepreneur is having the objective to profit only society while the second type will be profit society and himself. The first type of social entrepreneur is obviously more altruistic than second. The first type of social entrepreneur will have even more altruistic if he is willing to accept personal loss. below are the social entrepreneurs with six descending level of altruism(1) The person who attempts to innovatively profit society alone, in a way that involves that society, at risk of personal loss.(2) The person who attempts to innovatively profit society alone, in a way that involves that society, at risk of foregoing personal profit.(3) The person who attempts to innovatively profit society by profiting himself, in a way that involves that society, at risk of incurring personal loss.(4) The person who attempts to innovatively profit society by profiting himself, in a way that involves that society, at risk of forgoing personal profit.(5) The person who attempts to innovatively profit himself by profiting society, in a way that involves that society, at risk of personal loss.(6) The person who attempts to innovatively profit himself by profiting society, in a way that involves that society, at risk of foregoing personal profit. By Williams, Wee Liang, Teck Meng (pg, 359, 2005)The decreasing degree of altruistic in social entrepreneurship is differing in terms of risk and innovation.2.4.2 Traits and SkillsThompson, Alvy (2000) suggest that vision and fortitude are necessary traits to implement a social venture. Boschee (1998) consider candor, passion, clarity of purpose, courage, commitment, values, customer focus, willingness to plan, ability to think like a business, strategy, and flexibility, requi red in social entrepreneurs as critical success factor to successfully embark on social entrepreneurial activities. Social entrepreneurs who share the same traits may differ in the social impact of their initiatives. Drayton (2002) stated that entrepreneurial quality (pg.124) is the key to distinguish the impact. Entrepreneurial quality is a really special and scarce trait. It is much more than altruistic motivation and other previously mentioned traits. It is the vital motivation to change the whole society shared by only a very small percentage of the population.2.4.3 BehaviorThere are few styleal attributes which have been associated with social entrepreneurship courage to accept social criticism, less failure-anxiety, receptivity to others feelings, perseverance, communication skills, ability to appear trustworthy, creativity, ability to satisfy customers needs, foal oriented, and working capacity (McLeod, 1997 Prabhu, 1999). After all, these behavior can be use to commercial entrepreneurial behavior as well. However, there is one exception which is the difference between commercial entrepreneurial behavior and social entrepreneurial behavior which is receptivity to others feeling, or in a simple word, empathy. Referring to the Websters dictionary, empathy is defined as the ability to share in anothers emotions or feelings. A social entrepreneur is compassionate and helpful. Mair and Noboa(2003) found that empathy can be considered as a trait (dispositional empathy) or a behavior(situational empathy). The authors then consider empathy as a cognitive and emotional antecedent.2.4.4 setting and backgroundIn addition to traits and behaviors, context and background are also important aspects to understand entrepreneurs and their initiatives (Bird, 1988). The background and living of social entrepreneurs is having great impact on enabling the desirability for them to start up social enterprise (Prabhu, 1999). My parents raise me with the spirit of charity a nd giving, I felt uneasy about the problems of the poor and I am sensitive to other peoples feeling are common response of social entrepreneurs. Mair and Noboa (2003) argued that background and context explain a large part of social entrepreneurs enhanced level of loyalty to their values and philosophy, which is typically associated with an elevated level of moral judgment.A model of social entrepreneurial intentionsmodel of SE intentions.pngMair and Noboa (2003) have highly-developed a model of social entrepreneurial intentions. They defined their independent variables as emotional empathy (behavior), cognitive moral judgment (Background and Context effect). These variables will then modify individual to have perceived desirability to develop behavioral intention such as receptivity for others feeling. When they have the behavior, they will have the social entrepreneurial behavior and they decide to start up social enterprise. There is another enabling factor such as self-efficacy and social support which will further develop perceived feasibility. After that, individual with perceived feasibility will enter the same routine as perceived desirability. Empathy and moral judgment are positively linked with perceived social venture desirability, while self efficacy beliefs and social support are positively linked with perceived social venture feasibility.2.4.5 Opportunity Perception and RecognitionKrueger, Kickul, Gundry, Verma, and Wilson, (2007) stated that mental models is the element that provide a set of attributes or characteristics that define what is considered as an opportunity. Perception of opportunity is categorized with two critical antecedents (1) is the action expected to yield a net positive consequences or effects and (2) is the action actually within or beyond our control. Prevalence of needs in human society if often indentified as a major reason for the existence of social opportunity. According to Human Development report (2007,2005), there are nearly 3 billion people live below the poverty line, earning less than $2 per day. This phenomenon will move a lot of negative effects such as starvation, increased criminal rate, and violence. For example, there are 50,000 deaths per day which are linked to poverty-related causes. (World Health Organization, 1999). The problem of poverty are observable and it creates many opportunity for social entrepreneurs. Behavioural Theory stated that entrepreneurs aspiring to improve the quality of life are likely to identify and tackle the most prevalent problems because these problems are most sensitive to them.2.4.6 Personal valuesHemingway (2005) found that values operate at different levels and personal values act as one of the drivers of behavior. He also stated that qualitative research would be suitable in getting deeper level of understanding that how personal values may be driving social responsibility.To say that a person has a value is to say that he has an enduring normati ve or proscriptive belief that a specific mode of behavior or end-stat of existence is preferred to an opposite mode of behavior or end-state. This belief transcends attitudes toward objective and toward situations it is a standard that guides and determines action, attitudes toward objectives and situations, ideology, presentations of self to other, evaluations, judgments, justifications, comparisons of self with others, and attempts to influence other. Values serve as adjective, ego-defensive, knowledge and self-actualizing functions. (Rockeach, 1973, pg.25). Moreover, values is linked with ideology, which Wright stated that values will be ones guidance on differentiating what is right or wrong and finally lead to positive goals in life. (Wright, 1971). Personal Values are indentified in different levels such as individual, organizational, institutional, societal and global values (Agle and Caldwell, 1999). But in my studies, I will focus on individual or personal level of values.

Foreign Direct Investment In Nigeria

extraneous comport spend funds In NigeriaThe Nigeria rescue has come through the middle income status according to the valet Bank, with its ample stock of natural resources and institutional development and emersion in the farming. The Stock Exchange market in Nigeria is the second largest in Africa. The gross domestic product Purchasing Power Parity was ranked 31st in the World as at the end of 2011. The balance of recompense showed a trade surplus with the United States which is her largest abroad investor and a recipient of the largest export market for U.S. goods. During theoil boomof the 1970s, Nigeria accumulated a weighty unknown debt to finance key infrastructural coronations. In October 2005, Nigerian authorities had a negotiation with its Paris Clubcreditors and concluded on an agreement in which Nigeria debt was discounted by close to 60%. Nigeria thereby used part of its oil profits to wages the residual 40%, releasing up at least $1.15billion yearly for po verty simplification programmes being carried out. History was recorded in Nigeria after the debts were paid and was now known as the first Afri rat solid ground to pay up all owed debt to the Paris club amounting to an estimated value of $30billion.It is chief(prenominal) to know that Pet characterumplays a large role in the Nigerian economy, business relationship for 40% of Gross Domestic Product (GDP) and 80% of organization meshing. The telecommunication market in Nigeria is one of the World tightest development fastest growing markets with major emerging market operators (like MTN, Etisalat, Zain and Globacom) who based their largest and most profitable centers in the country.The government has recently begun expanding this infrastructure to superlativeographic point based communications with a space satellite which is monitored at the Nigerian National Space explore and Development Agency Headquarters in Abuja. The financial service vault of heaven has developed as a result of the combination of international and local banks, brokerage houses, insurance companies and brokers, asset management companies, private equity funds and investment banks. Rampant puffiness has occurred on the Naira and the Central Bank of Nigeria (CBN) has been trying to control the rate to remain be wiped out(p) 10%, in 2011, CBN increased absorb rate, rising from 6.25% to 12%. On 31 January 2012, CBN decided to maintain the key interest rate at 12%, in order to reduce the impact of inflation due to reduction in fuel subsidies. Though the, the inflation rate in Nigeria was recorded at 12.80 percent in July of 2012. The unemployment situation in Nigeria is currently high in effect(p) like how it has affected the global knowledge base due to the economic crisis as it was last reported at 23.9 percent in 2011.2.2 Foreign Direct investing in NigeriaA definition contained in the Balance of Payment Manual (Washington, D.C. planetary Monetary Fund, 1997 and 1993) defined Foreign subscribe to investment as investment completed through a recollective lasting management interest of an organization, enterp pass over or professional body operating in a country other than that of the investor in question. And must let at least 10% ownership of the organization considered as FDI (Patterson et al 2004). Usually FDI ar made by large multinational (MNEs) through encyclopedism or merger or the development of a new facility. The broad spectrum of all the MNEs is that they play a preponderating role in Research and Development by bringing new technologies into such(prenominal)(prenominal) country and also they have great influence on the economy they invest in (Balaam and Veseth, 2008). The debate of FDI has increased as a result of the large attend of FDI into both developed and developing country and its importance on the harvest-tide in such economies and global economy at large. The components of FDI should not be mistaken this implicates equity c apital, reinvested earnings and intra-company loans. Equity capital is the foreign guide on investors net purchase of the shares and loans of an enterprise in the country of investment other than its own. Re invested earnings is part of an affiliates earning accruing to the foreign investor that is reinvested in that enterprise. And intra-company loans are short or long term loans from parent firms to affiliate enterprise or vice-versa.2.2.1Determinants of Foreign Direct InvestmentThe economic antigenic determinants of inward FDI can be grouped for comforts sake into three categories each reflecting the motive for investing in foreign countries in specific Nigeria. This includes resource seeking, market seeking and efficiency seeking. Resource seeking is a leash determinant because the availability of natural resources in the host country determines if such country is well endowed and if investment is possible. In previous(prenominal) years the agriculture domain in Nigeria was booming and served as a great form of investment venture in the economy as the earnings accruing from it riseed the economic growth of the country. However in recent years, the oil and gas industry has overshadowed the agriculture sector and therefore neglected as resources and funds have been used to improve the oil and gas sector. Petroleum oil since then has served as a huge avenue for foreign investors because of the abundance in the country the influx to that sector has been high and therefore contributing just about 40% to Gross domestic product, 90% of exports and 80% of government revenue. The relevance of economic determinant for delineateing market seeking FDI is the market size in absolute terms. Large market can accommodate domestic and foreign thereby helping to boost firms production to operate on scale and scope economies and Nigeria has a wide market base. Efficiency seeking determinants can be other forms that reflect the motivation to invest such as that ava ilability of low-cost unskilled labor in Nigeria.2.2.2 Challenges of the Operating Environment for FDISome of the major limitations to attracting investment in Nigeria include unfriendly investment environment, inconsistency in government policies, others are social vices such as insecurity corruption, financial and economic crimes as well as conflicting policies. The challenge therefore is to reverse these(i) The Capital marketThe Nigerian capital market was also not secured in the tumults of the global economic crisis, in April 2008 the market experienced a downturn in the history of capital market operations in the country. This unprecedented sinking of the stocks forced both foreign and local investors who had opted for the advantage of the optimal return on investments on the stock exchange began to scoot elsewhere in extreme anxiety.(ii) EnergyAs a result of the global economic crisis the demand for oil decreased, resulting in oil prices dipping from $140 per barrel in the thi rd quarter of the year to $44, and being the principal source of the countrys revenue earner. The foreign reserves dwindled from $65billion to $45billion within six months from the third to last the quarter of the year. Apart from the above, Nigerias high propensity for imports was also part of the reasons for the fast diminished foreign reserves. In 2006, 2.5millions barrels per day were produced and grew to about 3millions barrels per day. Unfortunately the Niger River Delta violence during this period cut off 600,000 barrels per day. Furthermore, the lack of fitting technical staff was a constraint, kidnapping in the Delta also made recruiting expatriate staff difficult, especially for the oil services companies(iii) Power Numerous slipway of improving infrastructural development have been embarked upon by government but still to no avail. Development of infrastructure particularly electric energy has been and still ashes a major concern of investors even de suffer the Power R eform Program, no productive result has been achieved (Bello 2011). The inadequate infrastructure has imposed high feat cost for business and thereby militating against growth of the private sector2.3 Foreign Direct Investment FlowsThis section discusses and explains the pattern of Foreign Direct Investment flow in the World and in Nigeria.2.3.1Trends and Pattern of FDI in the WorldThe world economy has gone global due to the liberalization of trade, the breaking of business barriers, expert advancements, capital markets and the growth of international goods and services or ideas over the past decades. Ayanwale (2007), many developing countries see FDI as an outstanding element in their dodge for economic development and this has led to the speedy growth of FDI around the world. In developing countries, Mergers and acquisitions including private- to-private transactions as well as acquisitions through privatization became an important vehicle for FDI (Kyaw, 2003). Therefore, dev eloping countries have made impact on the global economy as a result of large domestic market, cheap and skilled labor, low labor costs and high returns on investment especially in the economics of industrialized states. This has led to many countries improving their business climate to attract more FDI. In fact, one of the pillars for launching the new partnership for Africas development (NEPAD) was to accelerate FDI inflows to the region (Funke and Nsouli, 2003). The trend of FDI depicts in the diagram below of the inflow of FDI in the past twenty years as there has been an upward movement from 1990 and a decrease in1999 then rose again in 2003 and continued to rise until the decrease again from 2007 and has remained very low due to the world economic crises that has been ongoing.Figure 2.1 World Foreign Direct Investment InflowSource World Development Indicators 2008Fifty-seven new measures affecting FDI were introduced by forty African countries of which forty-nine among these m easures encouraged inward FDI (UNCTAD, 2007). The increase in FDI inflows largely reflected strong military operation and relatively high economic growth (UNCTAD, 2008). 30% of total FDI inflows were accounted for as reinvested earnings as a result of increased profits of foreign affiliates, notably in developing countries. In Africa, FDIinflows increased from $18 billion in 2004 to $36 billion in 2006. This was due to improved prospects for corporate profits, increased interest in natural resources and a more favorable business climate. As regards this, many studies have been conducted to ascertain these however, the results do not give accurate demonstrate of the impact of FDI on the economy of developing countries. For example, Lumbila (2005), Sylwester (2005) and Ndikumana and Verick (2008) show that there is a positive effect of FDI on economic growth, while others such as (Fry, 1993, Dutt, 1997 Hermes and Lensink, 2003) gave verso conclusions. Further, other studies suggest that the effect of FDI on economic growth may depend on whether the country has minimal level of absorptive capacity that is a prevailing environment that can attract FDI such as educated workforce, institutional infrastructure and liberalized markets (Borenztein et al., 1998 Carkovic and Levine, 2002 Le Vu and Suruga, 2005).2.3.2Trends and Pattern of FDI in NigeriaNigeria a country luxurious with natural resources and a very large market sizes qualifies to be a major recipient of FDI in West Africa and indeed one of the top prima(p) West African Countries that has consistently trustworthy FDI in years past as we see in the epithet belowFigure 2.2 Nigeria Foreign Direct Investment stockSource UNCTAD 2012However the level of FDI attracted by FDI has shown no specific significant value in the growth of the economy and is been seen as second-rate (Asiedu 2003) compared with the resources of the country. Furthermore, the empirical relationship between FDI and economic growth has r emained unclear despite numerous studies that have examined the subject of interest. However, recent evidence supports that the relationship between FDI and growth may be country and period specific. Asiedu (2001) submits that the determinants of FDI in one region may not be the same for other regions. Although it has been generally acknowledged that FDI is an important aspect of the recent wave of globalization across countries. FDI inflow to diverse regions of the world has been increasing dramatically. The total world FDI as at 1990 stood at US$204443370862.543 and grew dramatically to US$815219446619.453 (World Bank 2012). Only few countries have been successful in attracting significant FDI flows. But West Africa as a whole has not benefitted particularly from the FDI boom. In West Africa, FDI amounted to 14012.54758974US dollars in 1990 and has been increasing gradually and currently stands at 110394 US dollars (UNCTAD 2012). Although UNCTADs World Investment Report 2004 repor ted that Africas outlook for FDI is promising, the judge surge is yet to be manifest.Nigeria is one of the few countries that have consistently benefited from the FDI inflow to West Africa and has turned out to be one of the most beautiful countries in West Africa in terms of FDI inflows with a value of $69242million in 2011 amongst others such as Ghana with $12320miilion, Liberia with $546smillions, Cote d Ivoire with $6408millions and Niger with $3123millions. Nigeria share of FDI inflow to West Africa in 2011 covers about 63%. As percentage of GDP, foreign direct investment has increased substantially since 1990 till 2001 but began to drop since 2002 and currently stand at 29.16%. Although the value of FDI inflow into Nigeria has been on the increase. This is attributable to the economic reforms and the resulting of macroeconomic stability, which have instilled great credibility in the Nigerian economy. However the FDI contribution as a percentage to Gross domestic Product has fallen but the Nigerian economy has experienced strong growth in recent years. Real GDP growth averaged 7.8 percent from 2004 to 2007, and growth of 6.4 percent in 2007. Sectorally, there was a surge of FDI flows in the primary sector, mainly oil and gas.In 2008 Nigeria was at the top of the ten Africa FDI recipient nations with over US$20billion. The ethnic conflicts and youth restlessness in the Niger delta affected the level of the crude Oil production. The election tension and these socio-political conflicts exasperate the problems of insecurity and hence the improbability in the domestic business environment which in turn impacted negatively on the inflow of FDI. Towards this the Federal Government has improved the security in that region and the youths in that region are being empowered to participate in productive ventures. In addition, the services sector particularly, transport, storage and communications continued to attract FDI since 2006. Oil accounts for nearly 40 per cent of GDP, but from 2001 to 2006-except in 2003-real growth in other sectors outpaced growth in the oil sector. For example the telecommunication sector experienced strong growth after its privatization.In spite of the surplus of studies on FDI and economic growth in Nigeria, the existingempirical evidence on the causal relationship between foreign direct investment and economic growth and the associated benefits is very inconclusive. In spite of a seemingly positive association between FDI and economic growth, the empirical literature has not reached a consensus on the direction of this impact, however, suggesting that foreign direct investment can be either beneficial or harmful to economic growth. The principal driving force for this work is that for developing economies, and for Nigeria in particular, the issue of economic growth is an important one.2.4Sources and sectorial distribution of Foreign Direct Investment in NigeriaNigeria sources of FDI over the years have been incr easing. There are more countries investing in Nigeria than in previous years. Some countries include USA, UK, China, and Netherlands amongst others. Nigerias most important sources of FDI have traditionally been the home countries of the oil majors. The USA, present in Nigerias oil sector through Chevron Texaco and Exxon Mobil, had investment stock of USD3.4 billion in Nigeria in 2008, the latest figures available. The UK, one of the host countries of Shell, is another key FDI partner UK FDI into Nigeria accounts for about 20% of Nigerias total foreign investment. As China is striving to expand its trade relationships with Africa, it is becoming one of Nigerias most important sources of FDI Nigeria is Chinas second largest trading partner in Africa, next to South Africa. From US$3 billion in 2003, Chinas direct investment in Nigeria is reported to be now worthwhile.Different sectors have received different amount of FDI in Nigeria. The total volume of FDI captured through the Centr al Bank of Nigeria is US$7,750billion. This represented about 11% increase over 2007 figure of US$6,935billion. The non-oil sector attracted US$7,109billion which represents about 91% of the inflow with the services sector being the major beneficiary with about 82% of the total inflow into the economy. The banking and finance sector accounted for about 9%. The country remains the highest destination of investment within the Economic Community of West Africa (ECOWAS) region by attracting about 50% of the total volume into the region. It is evident to note that when compared to other countries in Africa in terms of total stock of FDI attracted over the last ten years. Nigeria is ranked second to South Africa as we see in the figure belowFigure 2.3 Selected African Countries FDI inflow in comparison with NigeriaSource UNCTAD 20082.5Foreign Direct Investment policies Framework2.5.1Investment Framework and BodiesThe Nigerian Investment Promotion Commission Act laid out the framework for Nigerias investment policy in 1995. Under the Act, foreign ownership of 100% is allowed in other industries apart from Oil and Gas industry where investment is constrained to existing joint ventures or new production-sharing agreements. The upshot is to promote and facilitate investment in Nigeria. In 2006, a single Stop Investment Centre (OSIC) was set up to bring together agencies with statute as regards investment and streamline the process of investing in the country. Furthermore, the Commission is required to encourage, promote and co-ordinate investment in the Nigeria Economy. The law allows the Commission to assigning approvals on fiscal concessions on industry interrelated incentives such as Export oriented industry, Local raw material utilization, and Pioneer industries, Implant training, Research and development, Investment on infrastructural facilities, Investment in economically disadvantaged areas provided that the fiscal incentives for which approvals are given sha ll be for tax concessions (NIPC 2006-2008 Report).Other Stakeholders that were represented within the One Stop Investment Centre (OSIC) areCorporate Affairs Commission (CAC) who will be responsible for name search and company incorporation registration.Nigerian Immigration operate (NIS) will be in charge of Expatriate Quota Positions, Regularization of Permanent Work Permits, and other immigration facilities.Nigeria Customs Service (NCS) has the role of issuance of import and export guidelines procedure for citing excise factories goods clearance facilitation and generation information on fiscal policy issues.Federal Inland Revenue Services (FIRS) is responsible for tax registration, payments of stamp duties, issuance of tax clearance certificate and issuance of tax formsNational Agency for Food and Drug administration and arrest (NAFDAC) has the function of registration of regulated products, issuance of export certificate, authorization to import of unregistered productsStandar d Organization of Nigeria (SON) is responsible for facilitating all aspect of standardization activities, approvals or permit for use of standards and provide guidelines for investors. Amongst others.2.5.2 Other Policy incentivesInvestment incentives are comm exclusively intended to provide tariff, fiscal and other concessions to enterprises that meet certain criteria such as choice of sector, size, location and employment creation etc. This applies both to foreign and domestic investors. Thus, for the main aim of attracting identified strategic investments, the NIPC by its dominance is expected to execute full authority in the administration of the numerous incentives to encourage investment activities. However, this has not been the case as some(a) Federal Ministries and agencies are also performing this function and leading to misplaced obligation. This requires coordination and streamlining for effectiveness and efficiency. The recent Presidential Committee on Problems of Inves tors is doing its best in overcoming most of the constraints and attempt are being made to review the incentive regime and make them responsive to the yearnings of investors.Other investment promotional activities includeSensitization programme aimed at educating the unrestricted on its activities and to seek public support for its programmes.Hosting business and investment forums like successfully organized the 1st Nigeria-Brazil Business and investment Forum which held in Sao Paulo, African Petroleum, Energy and Mining Forum in Beijing, Nigerian Argentine Business Investment Forums and other conferences being organized to promote investment like International Business Leaders Conference (NIPC 2006-2008 Report).2.6 Linking Foreign Direct Investment and Economic offsetThe link between Foreign Direct Investment and Economic Growth has been a subject of debate for many decades and has been subject to empirical scrutiny. There have been new found facts about this link due to the eme rgence of the globalized world in recent times. This is due to the acknowledgement of Multinational Corporation, capital accumulation and large investment in trade in developing countries. Foreign direct investment is bundle of capital stock and technology, and can augment the existing stock of knowledge in the host economy through skill acquisition and diffusion, labor training and the introduction of new managerial practices and organizational arrangements (De Mello 1997). Three literatures have added to the subject of FDI-led growth. First, previous studies based on the assumption that there is only one causality from FDI to GDP growth and have been criticized in more recent studies (for example Kholdy 1995). In other words not only can FDI cause negative or positive effect on growth but growth can affect the flow of FDI. Secondly, the new-growth model has resulted in some reappraisal of determinant of growth in modeling the role played by FDI in growth process. Thirdly, the new development in econometrics theory such as time series concept of integration and causality testing has further expanded the ongoing contest of the relationship between FDI and economic growth.Foreign direct investment can impact growth directly and indirectly. The impact of FDI can be seen to directly impact growth through capital accumulation, and the incorporation ofnew inputs and foreign technologies in the production function of the host country. Neoclassical and endogenous growth models have used empirical test to check the supposed benefits of FDI. In the neoclassical growth models FDI promotes economic growth by increasing the volume of investment but FDI affects growth only in the short pass on because of diminishing returns to capital in the long run. Longrun growth in the neoclassical models arises from exogenous growth of the labor force and exogenous technical progress. In the endogenous growth models FDI raises growth through technological diffusion from the develope d countries to the developing. This permanent knowledge transfer from FDI accounts for the diminishing returns that result in long run growth. The endogenous growth literature has identified country conditions that must be present for FDI to have a positive impact on growth such as the complementarity between domestic and foreign investment, adequate levels of human capital, open trade regimes, and welldeveloped financial markets. Some of the most important endogenous growth empirical research has been discussed in the literature review section. It is now necessary to look at the impact of FDI on growth in the economy and the analysis on whether FDI has an effect on economic growth this will be discussed in the next chapter.

The Doubt Theory Of Knowledge Philosophy Essay

The motion Theory Of Knowledge Philosophy EssayDoubt is the key to Knowledge (Persian Proverb). To what bound is this true in two atomic number 18as of haveledge?What is Doubt and what is knowledge? Personally, I believe Knowledge is anything and everything that we perceive, understand via our Ways of Knowing such(prenominal) as Sense Perception, Reasons and Emotions and that is justified. Doubt is anything that provokes our legal opinion to question what we perceive thus activating our thought process towards the attainment of Knowledge. Where Doubt gives us a sense of smell of uncertainty, Knowledge gives us a feeling of certainty. Thus, it is so observed that these conflicting emotions yield a productive solution, Satisfaction. They seem to be in accordance with the Chinese concept of Yin Yang, which is used to describe how diametral or seemingly contrary forces are interconnected, interdependent and antipodes in the natural world1. Thus Doubt and Knowledge are analogous t o the Yin and Yang giving devise to each other in turn, in an infinitesimal process.The physical nature of rest was a debate amongst Physicists for a pretty long time and J.J. Thomson doubted that light was composed of particles. J.J. Thomson attempted to find a solution to this by his famous Gas Tube experiments. These experiments eventually took a turn when they showed that the particles are negatively aerated and this discovery was as a matter of fact, a major step towards the formulation of a Standard influence of the Atom. Here observation played a major grapheme and it so happens that our Sense Perception is important in the creation of Doubt. Where Mr. X will find a can of Coke hovering in mid-air as any(prenominal)thing unusual, Mr. Y may not. There is a conflict in this statement as well. Can it not be possible that it is this conflict in Perceptions that helps us get nearer to the truth, to the Knowledge? Thus we see that Doubt has significance in contributing knowled ge. Let us assume that Doubt is not the key to Knowledge, then what is? To satisfy this argument, what I could come up with, was something that was contrary to doubt yet satisfying the condition that it should be a valid reader of knowledge. Since the opposite of doubt is certainty, Laws and Absolute Doctrines could be considered as a knowledge contributor. However, it must be understood that Doubt is the emotion, which leads us to the formulation of these Laws. Hence, Doubt must be credited as being the key to knowledge. Yes, Curiosity could be a contributing factor for the expansion of knowledge. An appropriate analogy could be that of a car filled with fuel (Curiosity) and a key (Doubt). Hence without the inquisitiveness and the Doubt, our mind would remain unproductive. Einstein was a Theoretical Physicist who made, by chance the biggest breakthrough of learning in the 20th century with his Theories of Relativity. His peculiar curiosity, to be in constant quest for learning, was sparked at a very young age when he was shown a pocket compass. What interested young Einstein was whichever way the case was turned, the needle always pointed in the same direction. He thought there must be some force in what was presumed empty space that acted on the compass2. Einstein doubted what was it that made the compass always point in the same direction. Thus it is seen that Doubt and Curiosity both have an important role in being a key contributor of Knowledge. However, according to me, there is a certain extent to which we can doubt something. For example, there are some assumed a priori truths such as 2+2 = 4, which lie at the fundamentals of our sympathy of the world, however by doubting these statements as well, we will instead of progressing towards knowledge, create more hindrances in the pursuit of knowledge. This marks the boundaries till which we can doubt some statements in the Natural Sciences and Mathematics.We know for certain that people have different perceptions. Correspondingly this means that they yield different thoughts as well. This has a different role in Natural Sciences and a different role in Ethics. Standard Models have always had Doubt as an emotion which has lead to their formulation. An example is that of the Model for Solar System. Various Models such as the Tychonic System, Copernican System, etc which were believed in however all were doubted to some extent due to disagreement with observed facts. Thus these doubts became a reason for scientists to continue the pursuit of Knowledge. In case of ethics, doubting and questioning a supported belief creates tension between two parties. Doubt at the same time also leads to awareness, knowledge about a socially relevant issue. Sati, was a Hindu religious rite practiced in India which obscure women to burn themselves in their husbands funeral pyre as an act to wash away any sins their husbands committed, thus making him able to have a happy afterlife. This archetype w as ethically put right by a person called Raja Ram Mohan Roy. He challenged this unethical ritual and brought it to a legal end. Thus, he by questioning, doubting a religious belief, made a difference for the women of India. This shows that highly revered, generation old practices, beliefs and dogmas can also be unjustified and this leads to a socially relevant awareness. This awareness is nothing but knowledge in plain language.Throughout my school life, I have experienced that feeling of doubt in some or the other learning experience. For example, I still remember my Physics teacher introducing the concept of gravity. After a whole lot of intervention about this weirdly interesting phenomena I happened to ask my teacher, Sir, Why does Gravity exist?, and the response was, It just exists. Personally, I believe that that was the day when my interest and sequent curiosity was established for Physics. It was that moment of doubt that has today instilled in me the inquisitiveness tow ards the subject. Thus it seems to me that the very fact that we have exceptions and unanswered or perhaps incontestable questions which all correspond to that disputing emotion, is the reason why we attain knowledge or perhaps stay on the pursuit of knowledge. We Humans have a goal to question, to doubt the most fundamental occurrences in order to gain a better understanding of the world and how it functions. Doubt is that feeling which starts that cycle, of the yin yang. If not, how could it ever be that we would know when we are right and when we are wrong? Are we on the right track? Is there something more to this event? We would be living in a world accepting unverified knowledge.Hence, we see that Doubt interacts with different WOKs in different AoKs. Where in the Natural Sciences and Mathematics, it is the reasons and logics which sparks a conflicting emotion, In Ethics it is the emotions such as sympathy, and empathy. I believe that Doubt holds the key to our better under standing of not only what surrounds us but also who we are. Doubt defines us and perhaps will provide us with a convincing explanation as to what our goal is in this world. If not today, then maybe tomorrow, we might find what we are looking for all we need to do is not lose hope.Word Count 1236.

A Wack On The Side Of The Head Essay examples -- essays research paper

Acute AmbiguityRoger von Oech, the informant of A Whack on the Side of the Head, makes an grotesque offer that thinking at random will increase the efficiency at which ideas become more abundant. This particular concept is certainly an original instruction to come up with new, fresh problem solving techniques. Ambiguity in the world can help new ideas flow for anyone when looked at in a creative way.Chapter seven begins by explaining an example that would make the case against using ambiguity. In fact, the title of chapter seven is Avoid Ambiguity. While it is true that bleak statements leave questions unanswered, the traditional idea behind gathering information is to find specific details and clear communicated information. Ambiguous communication can be severe in some situations where the consequences of not understanding the complete picture can cause harm. Therefore, communication of specific information is needed in some situations, however, the author then goes on to exp lain how the ambiguous statement or event can lead to more accurate and applicable solutions.In the event that a problem would arise in a company or social gathering that would call for a creative solution, random thinking techniques would be incredibly applicable. The author gives great examples of creative solutions and brainstorming techniques from the simple event such as a fundraiser all the way to complicated matters such as subject field defe...

It Pays to Be Bilingual :: Argumentative Essay

It Pays to Be BilingualHoy en da es casi necesario ser bilingue si se desea tener xito. Desde atomic number 20 a Washington, de Pensilvania a Florida, uno puede or muchas personas hablando espaol. Los Latinos como una gran parte de la sociedad ya no es una cosa del pasado, pero una realidad. Los Hispano Parlantes no se centralizan solamente en las ciudades ms grandes de Estados Unidos, sino en los pueblos pequeos tambin. Con una mirada de la poblacin total en los Estados Unidos, unos trabajos tpicos y el estudio afuera, se puede ver que ser bilingue, especialmente con ingls y espaol es un recurso con mucho valor. Spanish can be heard clear across the United States because Latin Americans are no longer living only in great(p) cities, tho in small towns as well. If you can read and understand this, you are at a great advantage in todays speculate market. If you cant, pay close attention to the reasons you should consider learning Spanish, and allow me to translate my thesis stateme nt for you. By observing the population at large in the United States, some of the typical jobs and study abroad, one can see that being bilingual, especially with English and Spanish is a very saleable resource.By observing the population at large in the United States, one can see that Caucasian is not the only ethnic ambit being represented. In fact, the United States is the fourth largest Spanish- speech country in the world (Olivares). In the past twenty years there has been an increase in the number of Spanish speakers motifed in the US. In 2000, 32.8 million Latinos resided in the United States, representing 12.0 percent of the total U.S. population (Therrien et al.). As the Hispanic population grows we need to do our part by learning the second language of the US. By taking a look at journals and newspapers, one can see that Spanish is slowly and surely working its way in as a part of the culture. Companies are trying to foster an interest in Spanish among the natural Eng lish speakers and to communicate to those Spanish-speakers who cant understand English. The companies are evaluating the language situation of the population at large to decide how to go about speaking to everyone. For instance, the most recent Got Milk advertisement features Marc Anthony, a Latin singer and artist. He has gained popularity not only in the Latin Market, but popularity here as well, after having released one of his discs in English.