Concepts

india independence

"We end today a period of ill fortune and India discovers herself again. The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?" --Jawaharlal Nehru, India's first Prime Minister, speaking to India's Constituent Assembly on the eve of the country's independence from British rule in 1947

single europe act

-By 1980s non tariff type barriers—favoring domestic providers, state subsidies, distinctive national standards—were blocking progress toward a common market, caused slow growth and increased unemployment. To address this they developed the Single Europe Act. -1986 the Single Europe Act (SEA) Formalized mutual recognition Applied qualified majority voting (QMV) (votes did not have to be unanimous) Regulated public procurement Harmonized value added taxes Common technical and product standards Unrestricted flow of capital (bank accounts could be opened in any EC state)

1990's economic reform

-Fiscal and Monetary Tightening Deficit spending reduced, tax rates raised. -Overhaul foreign trade & investment regulations Import licensing restrictions repealed, tariffs reduced. -Reduced state control of industry -Financial sector liberalization and decreased central control of investment

quotas, tariffs, & corruption

A combination of high tariffs and quantitative restrictions (quotas) were placed on all goods coming into the country. The licenses and restrictive quotas, in particular, placed serious limitations on private-sector companies in terms of the technology made available for running their businesses. Government influence in private industry extended further, through the close relationships between government and the family-owned conglomerates (business houses), which controlled large portions of private enterprise in India. This increased the already prevalent corruption.

shocks

A nation's stability is determined by two things: political leaders' capacity to implement the policies they want even amidst shocks and their ability to avoid generating shocks of their own. Internal—demonstrations, transfer of power External—natural disasters, refugees

import substitution

After a foreign exchange crisis in 1957, the government sought to limit outflow of foreign currency and to implement a strategy of import substitution, replacing imports with domestic production. India would continue to model itself after the seemingly successful Soviet Union by further industrializing while remaining isolated from foreign investment and trade. In theory, by creating a wall of protective measures, imports would be made uncompetitive, and India's domestic industry would be given the opportunity to flourish. The system placed prohibitive tariffs and quantitative restrictions on all imports.

british out of india

An independent, democratically elected government was the goal of the INC. Forceful ideas began to take on relevance: liberty achieved through democracy prosperity through economic growth and individual human rights sustained by law The British colonial government which was preoccupied with rebuilding England after World War II and unable to contain the independence movement granted independence to India and Pakistan in 1947, and Sri Lanka in 1948. The boundary line that was established by the British has been in dispute for decades and led to years of war—including the first war between India and Pakistan in 1947.

economic diversity?

Bahrain—Financial and Tourism Israel—High tech, health, tourism Jordan—Textile Industry, financial services, insurance Oman—Natural gas, cement

concerns about great britain

Britain had applied for membership in the EC in 1963 and 1967. De Gaulle vetoed this because he was concerned that Britain would be a "Trojan Horse" for the United States. What does this mean? Afraid they'd be a mouth piece for US, use for control

reaching rural markets: novartis

Building trust through an ecosystem of stakeholders. The most successful firms have engaged with a wide set of community members to build a reputation for caring about consumers' needs, rather than just corporate profits. Through its Arogya Parivar ("Healthy Family") initiative, Novartis has created just such a cohesive ecosystem. This program focuses on health issues affecting rural women and children—primarily clean water and sanitation, undernourishment, iron deficiency, vaccinations, tuberculosis, and diabetes. To teach rural residents about these issues, Novartis recruits and trains traveling health educators. Engaging influencers. Tata Motors has tapped local teachers, health professionals, and mechanics to refer potential customers to its dealers, furnishing them with detailed product manuals and shingles they can place outside their homes designating them as motor dadas ("auto experts").

The rise of nationalism

But the trends are not all toward seamless connection. In an interview with Yale Insights, Peter Norris, the chairman of Virgin Group, described how the reemergence of nationalism and protectionism, an "insular" approach to regulation, and ongoing currency wars all create turbulence in the global markets and mean companies have to think carefully about what globalization means today. "In a number of areas the global system itself is changing," Norris says. "Not just the financial system. We're seeing the re-emergence of nationalist and regional interests in a way that we hadn't seen for a very long period of time, really from the '80s onwards. That will have its own effect on the way companies organize." This leads to increased risk.

british india

By 1858, the British Crown assumed direct control of British India. Queen Victoria became the first to bear the title " Empress of India."

collapse of soviet union

By 1991 GDP had stalled and foreign exchange reserves, at less than $2 billion, covered barely two weeks of imports. India's ability to pay for essential imports, to finance external debt, and to halt capital flight was disappearing. A $1.8 billion IMF loan had been exhausted and the IMF was unwilling to provide further stabilization funding without fundamental economic reforms. Then the Soviet Union collapsed. Not only did this mark the breakdown of the economic ideals against which India had modeled itself, it crippled one of the country's most significant export markets and eliminated a primary source of economic aid.

Europe to world war 1

Civil wars, regional wars, disruptions, wars based on religion Colonization of the Americas, Asia, Africa Europeans turn sights toward colonies in Africa, Asia, and the Americas Great Britain, despite it loss of the US colonies, builds a vast Empire ranging from North America through Africa and Asia France also has strong colonial presence in Africa and Asia Belgium, Portugal, etc also maintain colonial holdings

what i think of middle east?

Conflict, mess Oil, violence Home of major religions Europe was a mess for a long time too

new economy & first 5 year plan

Despite being a democracy Nehru and the Congress party believed that a socialist approach to the economy would be the best model to follow using a similar approach to the Soviet Union that included rapid industrialization. In 1948 the government implemented the Industrial Policy Resolution, giving it exclusive control over infrastructure development. By 1951, a Central Planning Commission was established with Nehru as its chairman and the first Five Year Plan was initiated. The overall focus was on eliminating the need for foreign capital, developing self-sufficiency (Ghandi's concept of Swadeshi), fiscal conservatism, and increased national savings.

Russia (my notes)

East and west Germany East controlled poland, czech etc Funding rebel groups and giving them weapons Cold war, very violent behind the scenes Constantly drunk and out of his mind - trying to be more modern Import substitution - you don't allow imports If we don't bring anything in from other countries we build it ourselves Moscow and saint petersburg

what do they address?

Economic risk analysis and political risk analysis address two fundamentally different questions. Economic risk analysis tells corporate leaders whether a particular country can pay its debt. Political risk analysis tells them whether that country will pay its debt.

commonalities

Economically, the Nordic countries have much in common. They are all small, open economies in which foreign trade has great economic significance. They have also rapidly evolved from poor, agrarian countries into modern industrialized economies that are among the most competitive in the world. The "Nordic model" is therefore of interest to both individuals and policy-makers in other countries. They wonder how these small countries, with large public sectors, including welfare services, and high taxation, have performed so well economically.

german political atmosphere

Elections are September 24th. The fledgling AfD, formed just four years ago, is hoping to secure 14% of votes in Germany's federal elections in September, and enter the Bundestag for the first time. It is, by its own admission, deploying a technique of "targeted provocation", in which a party member creates headlines with a comment that extends beyond what has previously been considered socially acceptable. The party leadership condemns the remarks, but they are absorbed into the common discourse, and tolerated by the leadership, who half-heartedly distance themselves from the remarks.

Future Challenges: europe moving to the right

Europe is seen to be moving to the far right. In the wake of the Brexit vote in Britain and the recent Italian referendum, and with national elections looming in 2017 in the Netherlands, France, and Germany, there is concern that Europe may be inundated by a populist wave, driven in large part by right-wing parties exploiting anti-globalization, anti-immigrant, and anti-Muslim sentiments. Polls show that people who have a favorable view of the National Front (FN) in France, the Alternative for Germany (AfD) in Germany, and the Party for Freedom in the Netherlands tend to be more negative about immigrants, refugees, and Muslims than their fellow countrymen. In addition, they are more euro-skeptic and more wary of globalization than their compatriots. Example: In France, 45 percent of those who have a favorable view of the FN say diversity makes their country a worse place to live. Only 24 percent of the overall French population believes that. Wariness of globalization also characterizes right-wing populist sentiment, even in countries deeply dependent on the world economy. In France, more than half (53 percent) of those who favor the FN believe that France's involvement in the global economy is a bad thing because it lowers wages and costs jobs. By comparison, 45 percent of the French population share that view.

Germany

Europe's largest economy and second most populous nation (after Russia), Germany is a key member of the continent's economic, political, and defense organizations. European power struggles immersed Germany in two devastating World Wars in the first half of the 20th century and left the country occupied by the victorious Allied powers of the US, UK, France, and the Soviet Union in 1945. With the advent of the Cold War, two German states were formed in 1949: the western Federal Republic of Germany (FRG - west side) and the eastern German Democratic Republic (GDR). The democratic FRG embedded itself in key western economic and security organizations, the EC, which became the EU, and NATO, while the communist GDR was on the front line of the Soviet-led Warsaw Pact. The decline of the USSR and the end of the Cold War allowed for German unification in 1990. Since then, Germany has expended considerable funds to bring eastern productivity and wages up to western standards. The German economy - the fifth largest economy in the world in PPP terms and Europe's largest - is a leading exporter of machinery, vehicles, chemicals, and household equipment and benefits from a highly skilled labor force. Like its Western European neighbors, Germany faces significant demographic challenges to sustained long-term growth. Low fertility rates and a large increase in net immigration are increasing pressure on the country's social welfare system and necessitate structural reforms.

European economic crisis

Europe's ongoing economic crisis has engendered a crisis of confidence in the EU "project". -2008 Europeans have declining faith in European economic integration as a means of strengthening their national economy. Many no longer look favorably on the European Union as an institution. And most Europeans do not favor ceding more decision-making power to the European Union in order to better deal with Europe's economic problems.

europe after world war 1: the war to end wars

Extensive destruction and death of so many people leads to a very strong anti German feeling in France, England, etc. Punitive measures known as reparations were put in place leaving Germany in desperate poverty. Hyperinflation took hold during the 20s in what was known as the Weimar Republic.

europe post world war 2

Extreme devastation and destruction Recognition that the region could not survive another war Rebuilding a devastated world became a priority Instead of punishing countries, individuals were punished Outside entities—US and Russia were the "winners" of World War II with Great Britain. The fact that outside entities controlled the peace helped forge the goal of a more unified Europe that would cease bringing the globe into conflict. Conflict between the US and the Soviet Union grew dramatically in the last months of the war and set up what was known as the Cold War.

the big bang

Fall of the Soviet Union, Soviet Bloc Implications for economies: As we discussed in class, these economies were well behind their western neighbors Command economies Lack of familiarity with market economies Democracy challenges To deal with emerging countries and potential for inclusion into EU, created the Copenhagen Criteria In the mid-1990s, preparations began for the biggest-ever EU enlargement. Membership applications were received from the six former Soviet-bloc countries--Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovakia, the three Baltic states that had been part of the Soviet Union--Estonia, Latvia and Lithuania, one of the republics of former Yugoslavia (Slovenia) and two Mediterranean countries (Cyprus and Malta). The EU welcomed this chance to help stabilize the European continent and to extend the benefits of European integration to the young democracies. Negotiations opened in December 1997 and 10 of the candidate countries joined the European Union on 1 May 2004. Bulgaria and Romania followed on 1 January 2007, bringing the EU's membership to 27.

economic reform

Finance minister (later Prime Minister) Manmohan Singh initiated a major program of pro-market economic reforms designed to move India toward a more open, market-oriented economy. Consistent with the Washington Consensus policies advocated by the IMF, the reforms focused on reducing government bureaucracy while stabilizing India's macroeconomic foundation.

why do companies need context?

First, international markets are more interconnected than ever before. Second, for good or ill, the United States and some other countries are making the world a more volatile place, and that has changed risk calculations everywhere. Third, the offshoring trend is growing. Businesses shift some operations to countries where labor is cheap-but the labor is cheap for a reason. In countries such as India (an established offshoring destination) and Kenya (an emerging one), living conditions for the working classes can be harsh, and there is greater threat of unrest than in developed countries with their large, relatively prosperous middle classes. Fourth, the world is increasingly dependent for energy on states troubled by considerable political risk with Syria, Russia, and Venezuela among them.

washington consensus

Fiscal discipline - strict criteria for limiting budget deficits Public expenditure priorities - moving them away from subsidies and administration towards previously neglected fields with high economic returns Tax reform - broadening the tax base and cutting marginal tax rates Financial liberalization - interest rates should ideally be market-determined Exchange rates - should be managed to induce rapid growth in non-traditional exports Trade liberalization Increasing foreign direct investment (FDI) - by reducing barriers Privatization - state enterprises should be privatized Deregulation - abolition of regulations that impede the entry of new firms or restrict competition (except in the areas of safety, environment and finance) Secure intellectual property rights (IPR) - without excessive costs and available to the informal sector Reduced role for the state.

russia: country background

Founded in the 12th century Expanded across Siberia and through the Baltics in the 17th century under the Romanov's and Peter the Great. Defeat in the Russian-Japanese War of 1904-05 contributed to the Revolution of 1905, which resulted in the formation of a parliament and other reforms. Repeated devastating defeats of the Russian army in World War I led to widespread rioting in the major cities of the Russian Empire and to the overthrow in 1917 of the imperial household. The entire royal family was killed. The communists under Vladimir Lenin seized power soon after and formed the Union of Soviet Socialist Republics (USSR) more commonly known as the Soviet Union. The brutal rule of Josef Stalin (1928-53) strengthened communist rule and Russian dominance of the Soviet Union at a cost of tens of millions of lives. After defeating Germany in World War II as part of an alliance with the US (1939-1945), the USSR expanded its territory and influence in Eastern Europe and emerged as a global power. The USSR was the principal adversary of the US during the Cold War (1947-1991) which almost lead to nuclear war between the two countries over missiles in Cuba. The Soviet economy and society stagnated in the decades following Stalin's rule, until General Secretary Mikhail Gorbechev (1985-91) introduced glasnost (openness) and perestroika (restructuring) in an attempt to modernize communism, but his initiatives inadvertently released forces that by December 1991 splintered the USSR into Russia and 14 other independent republics. Following economic and political turmoil during President Boris Yeltsin's term (1991-99), Russia shifted toward a centralized authoritarian state under the leadership of President Vladimir Putin (2000-2008, 2012-present) in which the regime seeks to legitimize its rule through managed elections, populist appeals, a foreign policy focused on enhancing the country's geopolitical influence, and commodity-based economic growth.

the four freedoms

Free Movement of Goods Free Movement of Capital Free Movement of Services Free Movement of Labor Issues: Currency could generally flow freely Markets in Financial Instruments Directive- (financial) introduced single passport system of mutual recognition where financial institutions could do business across borders. Services—purpose was to remove barriers that blocked foreign service providers. People included labor and border controls.

Monnet

French businessman Jean Monnet looked to the coal rich Ruhr Valley which was occupied by the British after WWII. Monnet approached the French Foreign Minister with concept for management of the region by a core group of European nations (known as the Schuman plan). US supported this move; Soviet Union condemned it as a plan for war.

macroeconomic competitiveness

From independence in 1947 through the 1980s, India's economy grew at 3.5% due to: Import substitution, license-quota, technological stagnancy and corruption that handicapped India's competitiveness during this period. India began the process of liberalizing the economy by reducing taxes and tariffs, encouraging FDI, and privatizing public-sector industries. This caused an era of high growth.

impact of hyperinflation

Germany could not pay reparations France refused to back down and demanded payments of some kind The Mark was essentially worthless (8 billion marks to buy a beer...) In response, France and Belgium occupied the Ruhr Valley, the most industrialized region of Germany, and took payments via resources such as coal There were efforts to stabilize the economy but the world economy failed in the late 1920s. This impacted the middle class in Germany which lead to significant dissatisfaction with the government. This in part, is supposed to have helped the rise to power of the Nazi party who appealed largely to the middle and upper classes.

An imperfect Union

Greece cant pay debts - sets bad precedent european countries in recession - need bailouts territories against each other (Northern- prosperous and southern- relaxed)

West Virginia

Higher % voted for trump than anywhere else Desperate for hope - need positive so think Trump Not informed, try to educate them Coal miners - bringing in businesses to grow population Promises are fake - all for political gain

FDI environment

Hoping to garner foreign currency, as well as technology and expertise, the government cautiously encouraged joint ventures in the 1960s. After the oil crisis of 1973 it prohibited foreign equity ownership from exceeding 40 percent. Many major multinational corporations, such as Coca-Cola and IBM, had to divest their assets and leave the country under adverse financial conditions. Although restrictions on FDI were relaxed before the end of the decade, few foreign joint venture partners returned to India in the 1980s. India looked more often to the Soviet Union and the international agencies to provide aid and to finance infrastructure projects. It implemented a foreign policy of Non-Alignment, remaining critical of the West and free market capitalism.

middle east

How would you describe the economy of the Middle East—is it diverse, growing, etc? Some diversifying, some growing. Definitely divide between rich and poor countries Is there a divide between resource rich and resource poor countries? Provide some examples. What are some key industries in countries in the Middle East? Oil What type of political system is prevalent in Middle Eastern countries? Shia, suni Dictatorship in turkey What are some indicators—social, economic, etc related to these countries? What cultural considerations are there in these countries? Men wont negotiate with women Corruption

More regional economy

However, small, open economies are particularly vulnerable to international economic fluctuations, as was demonstrated by the financial crisis in 2008. Iceland was hit especially hard. The Nordic countries industrialized late, but quickly. Early industrialization was often based on the exploitation of rich natural resources. In Finland and Sweden, the forest was the primary source of opportunities for increased exports, while Sweden's large ore deposits also contributed to its early economic growth. With roots that can be traced back to the 1200s, Sweden's Stora Kopparberg, now part of Stora Enso, is believed to be the world's oldest functioning company. Norway and Iceland have also had an extensive fishing industry. Denmark's economic development was based to a large extent on its fertile agricultural land, and the food industry has been key to Danish economic success. The Nordic countries are considered to be extremely innovative. Companies such as Nokia and Ericsson are based in the region. In recent decades, foreign ownership in the Region has increased, which has in the main had a positive effect on the Nordic economies - particularly when it comes to expansion in new growth sectors. As trade between the countries has been extensive, the Nordic countries have often been perceived as an extended home market. Economic interaction between countries was also significant in the past. This was partly due to economic and structural factors, but it can also be attributed to similar institutional environments and historical, cultural and linguistic proximity.

Treaty of Paris

In 1951 France, Germany, Italy, Belgium, the Netherlands, and Luxemburg signed the Treaty of Paris creating the European Coal and Steel Community (ECSC). The ECSC was managed by a High Authority which consisted of a Council of Ministers, Joint Assembly, and a Court of Justice. While it seemed an economic relationship, Monnet had always seen it as a more political relationship—he wanted to see a "fusion of interests".

Merged

In 1965 the ECSC, Euratom, European Economic Community (EEC) and CAP merged into the European Community (EC). The EC had four governing bodies: -European Commission executive body, no law making capabilities, policy making/draft legislative initiatives -Council of Ministers (upper house) Voted on legislation; votes weight based on population -European Parliament (lower house) -European Court of Justice Hear private cases against member state governments who are accused of breaking EC laws

growth and change

In 1973 Denmark, Ireland and the United Kingdom joined the EU. 1979 saw a decisive step forward, with the first elections to the European Parliament by direct universal suffrage. These elections are held every five years. In 1981, Greece joined, followed by Spain and Portugal in 1986. Austria, Finland and Sweden - joined the European Union in 1995.

the euro

In January of 2002, the euro replaced the old currencies of 12 EU countries, which together made up the 'euro area'. Nine countries--Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden, and the United Kingdom are EU members but do not use the euro. Using their own currency allows them the ability to set their own monetary policy and address issues like inflation independently.

monetary union

In June 1989, EU leaders adopted a three stage plan for economic and monetary union (EMU). There was opposition to monetary union from Germany. At the same time, East Germany was becoming free from Soviet domination. France agreed to support German Unification if Germany supported monetary union. Pros: Euro would lower costs by eliminating exchange rates More efficient market

agricultural issues

In the 1960s German farmers wanted to exclude agricultural products from the emerging common market. Germany was not as advanced as countries such as France and thought that they had an unfair advantage. De Gaulle argued that free trade required that agricultural products be included. After two years of intense debate the Common Agricultural Policy was created in 1962. CAP created common internal market but also included price supports, export subsidies, import restrictions, and other forms of support for countries who were less efficient.

India

India is currently the world's fastest-growing major economy. PwC projects that India's GDP would exceed US GDP in purchasing power parity terms by 2040 (purchasing power parity accounts for the different prices levels across countries). This would make India the largest economy in the world after China.

india & modi

Indian Prime Minister Nirendra Modi visited the US, specifically Silicon Valley after his election. Modi is in Silicon Valley to meet with technology executives and gather their ideas and assistance in bringing India fully into the digital world.

key investment sectors

Key sectors in the Kingdom's economy: Energy Transport and logistics ICT Health Life sciences Human Capital

scandinavian companies

Maersk—Denmark Lego—Denmark Novo Nordisk—Denmark Nokia—Finland H & M—Sweden Carlsberg—Denmark Statoil—Norway

Influences on European business

Many European retailers adopted Wal-Mart practices. RFID Scanners Supply chain & Logistics approaches Con: lower wages, impact on unions, longer hours

copenhagen criteria

Membership requires that candidate country has achieved: stability of institutions guaranteeing democracy the rule of law human rights and the respect for and protection of minorities the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the Union. Membership presupposes the candidate's ability to take on the obligations of membership including adherence to the aims of political, economic and monetary union.

second 5 year plan (1956-1961)

More ambitious in terms of the scope and pace of change it prescribed. Primary focus-- rebuilding rural India, laying the foundation for industrial progress, and bringing balanced development to all parts of the country. However the country committed itself to increasingly inward, protectionist policies.

regional outlook

Most high-income oil exporters, primarily continue to record steady growth and solid economic and financial fundamentals, albeit with medium-term challenges that need to be addressed. In contrast, other countries—Iraq, Libya, and Syria—are mired in conflicts with not only humanitarian but also economic consequences. And yet other countries, mostly oil importers, are making continued but uneven progress in advancing their economic agendas, often in tandem with political transitions and amidst difficult social conditions. In most of these countries, without extensive economic and structural reforms, economic prospects for the medium term remain insufficient to reduce high unemployment and improve living standards.

modi in silicon valley

Mr. Modi praised social networks like Facebook, Twitter and even China's Weibo as useful tools for governing and diplomacy. He said: "The strength of social media is it can tell government where they are going wrong," Mr. Modi said. "We used to have elections every five years. Now we have them every five minutes." Mr. Modi's message of partnership with American technology companies has been carefully choreographed to appeal to his constituents back in India, a country that is rapidly discovering the Internet and the start-up culture. The prime minister's Bharatiya Janata Party has encountered setbacks in its legislative agenda and will soon face state elections. A group of academics raised concerns about the free speech and privacy policies of Mr. Modi's government in an open letter before his visit. Outside Facebook headquarters, Sikh separatists also protested his visit. On the trip Mr. Modi stopped by Tesla Motors, the electric-car maker, and held private meetings with three of the technology world's most powerful executives: Timothy D. Cook of Apple, Sundar Pichai of Google and Satya Nadella of Microsoft.

almost nearly perfect

Neutral Sweden is one of the biggest arms manufacturers in the worldand 54% of Icelanders believe in elves. Norway's biggest hit TV show of recent years isn't from the Nordic noir stable but a seven-hour documentary of a train's real-life progress from Bergen to Oslo with a camera strapped to the front of it. sweden = best governed in the world

the end of walmart in germany

On July 28, 2006, Wal-Mart announced it would sell all 85 German stores to a "Metro" and exited Germany for good

TATA

Perhaps nothing captured the potential of the Indian consumer market more than the introduction of the Tata Motors Nano Nicknamed the "people's car," the Nano sought to make automobile ownership accessible to the mainstream Indian population. To do so, it was priced as the world's cheapest car, just 1 lakh (equal to 100,000 rupees, or about $2,000).

economic vs political risk

Political risk, broadly defined as the impact of politics on markets. Political risk is influenced by the passage of laws, the foibles of leaders, and the rise of popular movements- in short, all the factors that might politically stabilize or destabilize a country. Political Risk is more subjective than economic risk. Economic risk is risk by the numbers... data on countries' per capita income, growth, and inflation

investment

Public spending and improving the investment climate continues to be an important part of the KSA's broader program to liberalize the country's trade and investment regime, diversify an economy overly dependent on oil, and promote employment for a young and growing population. The government encourages investment in transportation, education, health, information and communications technology, life sciences, and energy; as well as in four "Economic Cities" that are at various stages of development. The Economic Cities are to be new, comprehensive developments in different regions focusing on particular industries. For the longer term, Saudi Arabia seeks to also develop into a regional hub in the life sciences, food processing, and automotive manufacturing industry sectors.

policies

Reforms launched by the government of Chancellor Gerhard Schroeder (1998-2005), deemed necessary to address chronically high unemployment and low average growth, contributed to strong growth and falling unemployment. These advances, as well as a government subsidized, reduced working hour scheme, help explain the relatively modest increase in unemployment during the 2008-09 recession - the deepest since World War II. Stimulus and stabilization efforts initiated in 2008 and 2009 and tax cuts introduced in Chancellor Merkel's second term increased Germany's total budget deficit in 2010, but slower spending and higher tax revenues allowed it to reach a budget surplus by 2015.

Qatar

Richest people in the world, no taxes, no democracy Same family has ruled for 150 years = life amazing Engine of arab spring 16 years ago threw over father Healthcare, electricity, education all free Skyline completely random Raised government salary 60%, and police 120% Trying to be friends with everyone !! Aljezera covers news 24 hours a day, Arabic and English - engine of arab spring Independent Got leaders in middle east overthrown Good agenda

Freedom of movement

Rising immigration and fragile economic recovery in Europe will reduce political support for the Schengen Convention. The Convention is the policy related to the Schengen Area which operates very much like a single state for international travel purposes with external border controls for travelers entering and exiting the area, and common visas, but with no internal border controls. It currently consists of 26 European countries. The Schengen Convention will likely be reformed to make room for countries to tighten their border controls more frequently.

political context

Risk analyst and author Ian Bremmer notes "basing investment decisions on economic data without understanding the political context is like basing nutrition decisions on caloric counts without examining the list of ingredients". Bremmer says that understanding political risk is as if not more important than just understanding risk by the numbers (economic data only). The actions of governments, whether they are specific stated policies or actions that translate into policies, play a large role in determining risk. These often don't express themselves in terms of numbers. Example: Russia

Russia economy

Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally planned economy towards a more market-based system. Both economic growth and reform have stalled in recent years, however, and Russia remains a predominantly statist economy with a high concentration of wealth in officials' hands. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy, transportation, banking, and defense-related sectors. The protection of property rights is still weak, and the state continues to interfere in the free operation of the private sector. Russia is one of the world's leading producers of oil and natural gas, and is also a top exporter of metals such as steel and primary aluminum. Russia's reliance on commodity exports makes it vulnerable to boom and bust cycles that follow the volatile swings in global prices. A combination of falling oil prices, international sanctions, and structural limitations pushed Russia into a deep recession in 2015, with the GDP falling by close to 4%. Government support for import substitution has increased recently in an effort to diversify the economy away from extractive industries. GDP - per capita (PPP): $25,400 Primary Export Partners: Netherlands 11.9%, China 8.3%, Germany 7.4%, Italy 6.5%, Turkey 5.6%, Belarus 4.4%, Japan 4.2% The energy giant Gazprom Corporation is close to the Russian state, and the government uses it to bolster its influence abroad.

positive factors

SAGIA had to convince foreign investors that SA could be an attractive place for investment. Positive factors about doing business in Saudi Arabia: Advanced infrastructure Energy and Transportation sectors - highly developed Largest economy in the Arab world Stable banking system

example: saudi calendar

Saudi Arabia follows the Muslims Hijra calendar, which is the day when Prophet Mohammad (Peace be Upon him) migrated from Makkah to Al Madinah corresponding to 622 A.D . Hijra year has 12 months. However, it's ten or eleven days less than the calendar year. In the hijra calendar, the month ranges between 29 to 30 days .

Saudi Arabia: Saudi arabia general investment authority (SAGIA)

Saudi Arabia recognized a number of years ago that it needed to diversify its economy. The main objective of the authority is to oversee investment affairs in the kingdom, including foreign investment. Why did Saudi Arabia need the SAGIA and FDI? The economy was one sided—depended solely on oil exports for economic growth and stability. But money from oil exports had decreased 40 percent since 1980. Consistent decrease The population—from 1980-2004 the population had grown from 9 million to 20 million. Huge debt from funding the 1991 Gulf War. Cost of social programs.

employment solution: the saudization policy

Saudi businesses were required to reduce their reliance on foreign workers and replace them with Saudis. Resulted in a mass exodus of skilled workers from the country. All skilled workers had to leave and people who replaced didn't know how to do jobs

central control

Set prices in many industries to help limit inflation and promote profitability in the public sector. Regulated transport costs to subsidize development in specific regions. "Sick unit" regulations went further by preventing failing public sector companies from going bankrupt. Limit unemployment !!! This was intended to limit unemployment, since complex approvals were needed to lay off workers. By the 1980s, India's government was subsidizing 90,000 "sick units." Should've just been allowed to go out of business bc poorly ran

Sweden

Sweden has among the EU's lowest levels of national debt, low and stable inflation and a healthy banking system. But this wasn't always the case. The Swedish economy used to suffer from low growth and high inflation, and the Swedish krona was repeatedly devalued. Sweden was also hit by a deep financial crisis in the early 1990s. Banks became unstable and two were nationalized, unemployment rose rapidly, government spending got out of control, and so did Sweden's national debt. Sweden today has a diverse, highly competitive and successful economy. The World Economic Forum ranks Sweden the sixth most competitive country in the world. Sweden is also the 11th easiest country in the world to trade with, according to the World Bank. In addition to maintaining competitiveness in goods and manufacturing, growth in modern service sectors such as information and communication technology has been strong in Sweden. Internet calling service Skype and online music streaming service Spotify are two examples, but Swedes haven't stopped there.

british east india company

The BEI is often considered to be the first multinational corporation in the world. This British commercial interest had no intention of establishing any political authority in India. The British were there primarily for economic advantage. But as they became more entangled with local authorities they began to bring India increasingly under their own political control. In the early 1800s, BEI had greater political involvement stimulated by an interest in bringing social "reform" to the subcontinent as well. British administrators also wanted to create a special class of South Asian people who would be " Indian in blood and color, but English in taste, in opinions, in morals, and in intellect."

The Brexit

The Brexit is a nickname for the United Kingdom leaving the EU. Prime Minister David Cameron, who did not support leaving the EU, called for a referendum on leaving. There was a growing feeling (whether or not it was accurate) in some parts, particularly rural areas, that the EU was falling apart, stifling growth, controlling, and adding to unemployment. A referendum - a vote in which everyone (or nearly everyone) of voting age can take part - was held on June 23rd 2016, to decide whether the UK should leave or remain in the European Union. Leave won by 52% to 48%. The referendum turnout was 71.8%, with more than 30 million people voting. England voted for Brexit, by 53.4% to 46.6%, as did Wales, with Leave getting 52.5% of the vote and Remain 47.5%. Scotland and Northern Ireland both backed staying in the EU. Scotland backed Remain by 62% to 38%, while 55.8% in Northern Ireland voted Remain and 44.2% Leave. Britain has got a new Prime Minister - Theresa May. The former home secretary took over from David Cameron, who resigned on the day after losing the referendum. Like Cameron, May was against Britain leaving the EU but she says she will respect the will of the people. For the UK to leave the EU it has to invoke an agreement called Article 50 of the Lisbon Treaty which gives the two sides two years to agree the terms of the split. May has said she intends to trigger this process by the end of March 2017, meaning the UK will be expected to have left by the summer of 2019, depending on the precise timetable agreed during the negotiations.

India under the foreign yoke

The British Raj was primarily political, imposing colonial rule over the sub - continent from the mid - nineteenth century until the 1940s. Its impact lies largely in the introduction of democracy, industrial development, technology, and westernization. British presence on the subcontinent began in the early 1600s, when the East India Company, with head offices in London established trading centers along the coast of India.

decision making

The European Council is the EU's top political institution. It consists of the Heads of State or Government - the presidents and/or prime ministers - of all the EU member countries, plus the President of the European Commission. The European Council fixes the EU's goals and sets the course for achieving them. The Council of Ministers is made up of ministers from the EU's national governments. The Council's main job is to pass EU laws. Normally it shares this responsibility with the European Parliament. The Council and the Parliament also share equal responsibility for adopting the EU budget. The European Parliament is the elected body that represents the EU's citizens. It supervises the EU's activities and, together with the Council, it enacts EU legislation. Since 1979, members of the European Parliament (MEPs) have been directly elected, by universal suffrage, every five years The European Commission is a key EU institution. It alone has the right to draw up proposals for new EU legislation, which it sends to the Council and Parliament for discussion and adoption. Its members are appointed for a five-year term by agreement between the member states, subject to approval by the European Parliament (as described above). The Commission is answerable to the Parliament, and the entire Commission has to resign if the Parliament passes a motion of censure against it. The Court of Justice of the European Union, located in Luxembourg, is made up of one judge from each EU country, assisted by eight advocates-general. They are appointed by joint agreement of the governments of the member states for a renewable term of six years. Their independence is guaranteed. The Court's role is to ensure that EU law is complied with, and that the Treaties are correctly interpreted and applied. The European Central Bank (ECB), in Frankfurt, is responsible for managing the euro and the EU's monetary policy. Its main task is to maintain price stability in the euro area. The Central Bank acquired the status of EU institution under the Treaty of Lisbon.

british in india

The Indian National Congress (INC) was formed in 1885 to seek opportunities for Indians to shape and to participate in politics and the future of their country. In 1919, Mohandas Gandhi emerged as the leader of this movement. Through the power of his example and his great organizational skills, he was able to build grassroots support for the INC throughout British India.

saudia arabia

The Kingdom of Saudi Arabia is the only country in the Middle East region that is a member of the G- 20 group of major economies. Major economies get together talk about economic issues

Masstricht Treaty

The Maastricht Treaty established the European Union under its current name in 1993 and introduced European citizenship.

the welfare states

The Nordic countries have followed relatively similar institutional development patterns. In all of the Nordic countries, the state and the public sector have played major roles to play in the economic sphere, primarily through investment in infrastructure, education and research, but also in terms of social welfare. Although taxation levels have been high in all of the Nordic countries, the welfare state is considered to be a strength when it comes to economic development.

The EU

The Nordic countries relate to European integration in different ways. Norway and Iceland have chosen to remain completely outside the EU, although they are members of the European Economic Area. Denmark, Finland and Sweden are all EU members, but only Finland is a member of the eurozone.

regional economy

The Nordics cluster at the top of league tables of everything from economic competitiveness to social health to happiness. Development theorists have taken to calling successful modernization "getting to Denmark". Meanwhile a region that was once synonymous with do-it-yourself furniture and Abba has even become a cultural haven, home to "The Killing", Noma and "Angry Birds". Some of the success of the region is, according to the Economist, down to lucky timing: The Nordics cleverly managed to have their debt crisis in the 1990s. They offer a blueprint of how to reform the public sector, making the state far more efficient and responsive. The region mixes public and private enterprises. Denmark and Norway allow private firms to run public hospitals. Sweden has a universal system of school vouchers, with private for-profit schools competing with public schools. Denmark also has vouchers—but ones that you can top up. The performance of all schools and hospitals is measured. Governments are forced to operate in the harsh light of day: Sweden gives everyone access to official records. Politicians are vilified if they get off their bicycles and into official limousines. The home of Skype and Spotify is also a leader in e-government: you can pay your taxes with an SMS message. They are stout free-traders who resist the temptation to intervene even to protect iconic companies: Sweden let Saab go bankrupt and Volvo is now owned by China's Geely. But they also focus on the long term—most obviously through Norway's $600 billion sovereign-wealth fund which as we discussed was tapped into for the first time in decades just recently. Denmark, for instance, has a system of "flexicurity" that makes it easier for employers to sack people but provides support and training for the unemployed, and Finland organizes venture-capital networks. They have high public spending and high taxes. The result of which often sends entrepreneurs to other countries. Too many people—especially immigrants—live off benefits.

the indian business environment

The Republic of India is the 18th largest export market for U.S. goods. Two-way trade reached $63.7 billion in 2013. India's sizeable and rapidly growing domestic market, growing financial markets, large English-speaking population, and stable democratic government make it an attractive destination for U.S. business. It is the 11th largest economy in the world and third largest Asian economy. However, India underperforms relative to its vast potential. Major areas of concern include: Corruption Caps on foreign direct investment (FDI) Inadequate financing at reasonable rates Complex and lengthy investment approval and land acquisition processes Antiquated labor laws Poor enforcement of contracts and arbitration judgments U.S. FDI in India is largely in the professional, scientific, and technical services, finance/insurance services, and the information service sectors. Major U.S. companies include: AECOM, Bank of America, Bell Helicopter, Coca-Cola, DuPont, Dow, Federal Express, General Electric, General Motors, KFC, Lockheed Martin, McDonalds, Microsoft, Kimberly Clark, PepsiCo, Raytheon, United Airlines, among others. The fast growing franchising industry in the last two years attracted U.S. major food service brands such as Dunkin' Donuts, Krispy Kreme Donuts, Starbucks, and Burger King. Dominos Pizza is a popular US based brand in India. But there are differences...

Treaty of Rome

The Treaty of Rome initially discussed in 1955 and signed in 1957 created the European Economic Community (EEC) and Euratom. Euratom would coordinate research into atomic energy. EEC would build a "common market to include all goods, services, people, and capital".

Ukraine

The Ukrainian revolution of February 2014, which ousted Russian ally President Viktor Yanukovych and ushered in a Western-leaning leadership, triggered an even more serious crisis in East-West relations, especially after Russia responded by annexing Crimea.

the treaty of paris and the Ruhr Valley

The coal and mineral rich region of Germany known as the Ruhr Valley had long been of interest to other European countries. Rather than occupy it to take resources away from Germany, French businessman Jean Monnet suggested that it be jointly administered.

primary drivers of the european collaboration

The driving force that helped to create a more unified Europe was the end of World War II and the need to end conflict that had occurred for over 100 years as well as the need to bring the overall European economy back. The threat of a powerful Soviet Union also drove the European countries to form bonds.

organizations

The end of WWII lead to the creation of a number of organizations: United Nations World Bank International Monetary Fund

America and the global economy

The historical ambivalence of the United States toward global engagement is a thread that runs through American history—from George Washington's Farewell Address, to the Senate's rejection of the League of Nations after World War I, to the initial reluctance of the United States to enter World War II, and to the difficult process of winning congressional support for the postwar economic system itself. This more isolationist or even nationalist tone has increased due to stagnating wages for lower-skilled workers and rising income inequality that has heightened anxieties about trade and the global economy. The volume of the protest against globalization increased after the last election. With promises to eliminate NAFTA and America comes first, corporate leaders, investors, and other stakeholders have been wondering about the fate of the global economy. Our article states that the contrary is what we should do. The author says that history has shown that U.S. economic leadership is vital to the well-being of American workers and families, as well as to the ability of the US to project its values and achieve its larger foreign policy objectives. Sustaining U.S. leadership and adapting it to the challenges of our time remain indispensable. U.S. influence in a changing world will increase as the United States shares with emerging economies such as China both the benefits and the responsibilities of managing the global economic and financial system. Global engagement means establishing rules and guidelines for everyone. Along with the World Bank and the General Agreement on Tariffs and Trade (GATT) and its successor, the World Trade Organization (WTO), the International Monetary Fund (IMF) has provided the underlying infrastructure of a global economic system that has enabled economies to rise from the ashes of war, created the jobs and rising incomes that have produced a global middle class, and lifted hundreds of millions of people out of poverty. A major reason that the global financial crisis that began in late 2007 never turned into a second Great Depression is that the United States and other countries coordinated their efforts through the IMF and the Group of Twenty Major Economies (G-20).

More Germany

The strategy was most recently used by Björn Höcke, a regional leader, a few days ago, who earned warm approval from the AfD youth wing by suggesting Germany had been strangled by the way its people were forced to atone for the country's Nazi past, and called for a "180-degree turn". The comments were timed to coincide with the 75th anniversary of the 1942 Wannsee Conference, in which the Nazis formed the plan that led to the Holocaust. What are the secrets to Germany's success? Small businesses Name brand cars Employees highly skilled, focus long term What are some pressures on Germany in their global role? Diplomatic solutions with Syria

bureaucracy & the permit raj

To encourage India's self-sufficiency the government instituted a number of controls in the form of licensing and highly protective trade and investment restrictions. Nicknamed the "Permit Raj," the colossal Indian bureaucracy created a complex system of licensing that fostered both inefficiency and corruption. The bureaucracy was created to administer the approval of permits designed to stimulate and control industry, while severely limiting foreign trade and investment.

new rules

To identify their globalization options, Western multinationals must assess the strategic importance of their industries at home and in the countries they wish to enter. At one extreme, sticking close to home may ensure lower political risk, but it could also mean ceding market share to global competitors. At the other extreme, pursuing a strategy without considering geopolitical dynamics could boost growth in the short term but heighten the risk that politics could fatally undermine business operations in the future.

walmart in germany

Wal-Mart entered the German market in 1997 Only two stores in Germany in 2001 There were supposed to be 50 stores in Germany by the end of 2003 Stringent zoning requirements prohibited stores larger than 8,610 sq ft--Average store is over 108,000 square feet in USA Limited store hours (close at 6pm) German Price Setting Laws "Low Price Guarantee" is illegal Cartel Law Selling below cost is forbidden unless there is a "good justification." This challenged Wal-Mart's USA business model of "everyday low prices" Labor Relations Customers were not used to "American"-style service (Greeters, baggers, etc.) Tough competitors: Aldi Extremely low prices: due to minimal investment in the retail store's infrastructure Trusted base of loyal customers

Walmart Background

Wal-Mart was founded in 1962 in Bentonville Arkansas by Sam Walton First year it generated $700,00 in sales In the 1980s Wal-Mart introduced member-only stores such as Sam's Club Globalization of Retail Wal-Mart 's International Division form in 1993 1997 Wal-Mart in Mexico By 2003, Wal-Mart was in nine countries

Youth explosion

We have talked about youth unemployment. In Saudi Arabia there was a population explosion between 1980 and 2004. This means there were many more people who wanted/needed jobs but there were no jobs available. Unemployment rates were near 40 percent for the under 30 population. The government realized that they would need to create 5 million more jobs by 2020. When young people frustrated = protest (want to make sure people happy)

How to do business in india

What did Amazon do? Small businesses sell through amazon Business often approached doing businesses in emerging economies like India by trying to figure out how to market to the poor.

india manufacturing

When many executives think about manufacturing, China is the first country that comes to mind. But there are other players grabbing a bit of that spotlight — like India. Despite the conventional wisdom that says India's place in the global economy revolves around technology and services rather than manufacturing, the country is starting to attract more attention for its manufacturing potential for a number of reasons: India is the third-largest economy in purchasing power parity after the U.S. and China, it has a large population of engineers and factory workers its intellectual property is widely respected it is easy to find English-speaking managers there

Putin's way

YouTube detailed account of criminal activities Putin was involved in - abuse of power, organized crime, money laundering, whole range economic crime Part of larger corruption - stealing from very beginning in 90s Authoritarian system in process of succeeding - don't want to be democrats If you do not agree with Putin = exile, jail, leave Target Hillary Clinton

How Germany Became Europe's Richest Country

exports > US another bailout for Greece More order / work in Germany 1 1/4 billion sales world wide

Finland

real home of santa

Sir Mapsalot

simplistic view lines made long time ago dont work anymore racist for white people to draw lines between middle easter tribal allegiances British got together and took over after Ottoman Empire fell to take advantage of resource

leading sectors for investment

• Travel and Tourism • Power Generation • Computer Software • Drugs and Pharmaceuticals • Safety and Security • Medical Equipment • Automotive Equipment • Environmental Technologies • Telecommunications Services