Friday, May 31, 2019

Essay --

I am hired as an Information Security Engineer for a videogame development company. The organization electronic network organize is given in the diagram. I was notified that malicious activities are taking place in the network structure. They can effect protection of the intellectual property and super sensitive data maintained by the organization. I am assigned to resolve these issues that arise in the network structure. In this document I go out analyze and assess potential malicious accesss and threats that may be carried out against the network along with potential vulnerabilities that may exist in the documented network. in any case I will tell the potential impact of all malicious attacks & threats and identified vulnerabilities to the network and the organization. Malicious attacks and threats to network are attacks that can be through by exploiters and hackers to get into network and steal the network information. There are different types of malicious attacks. Pas sive attacks look for encrypted data and perform algorithms to decrypt. They can place the hole where encrypted data is being decrypted or look for clear passwords. In an active attack attacker bypasses or break into secured network. They can use viruses, trojan horse horses, stealers, exploits or bugs (1). They can penetrate the network system to steal data or to change data or to shut down the system. A distributed attack requires that the adversary inscribe code, such as a Trojan horse or back-door program, to a trusted component or software that will after be distributed to many other companies users Distribution attacks focus on the malicious modification of hardware or software at the factory or during distribution. These attacks introduce malicious code such as a bac... ...nd Routing protocols. Operating system weaknesses accepts operating system vulnerabilities like not updating the operating system. Configuration weaknesses include unsecured user accounts, System accounts with easily guessed passwords, Misconfigured Internet services, unsecured default settings of the software products, and misconfigured network equipments. Security Policy Weaknesses include lack of written credential policy, poorly chosen or default passwords, inadequate monitoring and auditing, unapproved applications installation (Rufi, 2007). Mail Servers are other targets in which hackers want to gain access to network resources. Companies that access e-mail from the Internet, especially, are potential targets (Rampat). Threats can be performed to the network when attackers take advantage of the vulnerabilities and it has a negative impact on the network.

Thursday, May 30, 2019

Cold Mountain: Frasiers Archetypal Journey Essay -- essays research pa

The example of the journey is seen in Charles Fraziers novel Cold Mountain, near clearly through experience Inman has wandering patronize to Cold Mountain. The journey archetype sends the hitman in search of some truth to restore order and harmony to the land. The journey often includes the series of trials and tribulations the hero faces along the way. Usually the hero descends into a real or psychological hell and is forced to discover the blackest truths. Once the hero is at his depletedest level, he must accept personal responsibility to return to the world of the living. Inmans trip fits this description very well in some ways and non in others. It could be said that Inmans search for truth is his desire to be back home. He has been disillusi iodined by the war. He saw frightful scenes daily and fought for his life. By coming home to Ada and his mundane life is a welcome constant for him in a world he has deep determined to be wild. He believed that once he had reached h is destination, order in his personal world and soul could begin to return to normal. In accordance with the definitions of the archetype journey, Inman goes through a great deal angst and tribulations. He has practically starved many times, been mugged, and fired upon. This strife is culminated when he his betrayed and shanghaied, marched nearly to death, then shot and go away for dead. He is buried with a thin layer of dirt in a mass grave, and spends half a day under ground with the dead. This is his low point, his personal hell. At this point he even considers not uncovering himself and allowing the easy death to occur. For such a logical and even headed man this is especially extreme thought. But he eventually finds the will power to hoist himself out of the grave to once again take up road. Finally he gets to the house and restores order to his metaphysical kingdom, coming to terms with many of his thoughts. Ada goes through a more mental archetypal journey. She has to find m anageable independence, an survey development of which she had always been deprived. Her low point was at the beginning of the book when she realized that she no longer had the money that once had enabled a work-free life style. At the beginning, she has no idea what to do or what she even wants. Once Ruby comes, she begins to come to important self-realization about the pettiness of her past life and how she is no lon... ... the greatest resists to each other. When one reads of Rubys extreme incredible work ethic and practicality in every matter, even towards bird-watching (she uses migratory patterns to plant seasonally), one understands that she has lived in harsh conditions and foolishness was not an option. Once contrasted with her father and his physically unproductive lifestyle, one may come to view her as a sharp robot. On the other hand, Stobrod may look as though he has a far worse work ethic than he actually does pilar cyst contrasted against his daughter. Similarly, this was the dynamic of Adas relationship to Ruby when Ruby was first introduced. Inman, the rational, moral, and selfless farmer boy and Veasy, the lecherous, self-centered preacher serve as foil to one another. When the pair is together Inman seems so strait laced and moral, thinking every aspect out well in advance, then taking the most sensible route. Veasy on the other hand is made to look even more of a lecherous buffoon, when he, who has just had relations with Laura Foster, solicits the massive Tildy for sex in the tavern while Inman, the lonely former-soldier who has not been with woman for a long time remains celibate.

Wednesday, May 29, 2019

Priestleys portrayal of Inspector Goole in An Inspector Calls Essay

Consider the ways in which Priestleys portrayal of Inspector Goole andthe way in which he carries out his investigation of the logrollingfamily and Gerald Croft create dramatic busy?An quizzer c eachs was written in 1945 by J.B Priestley. The play isset in 1912 and centres on Arthur Birling, a prosperous manufacturerand his family, who atomic number 18 celebrating the engagement of their daughter,when they are suddenly and dramatically interrupted by the arrival ofthe police inspector. The inspector, investigating the suicide of ayoung working-class woman, uncovers each of the familys sinistersecrets that link them with the young girl and her death.Priestley was a strong believer in socialism, opposing capitalismwhich exploits and degrades the working classes to benefit the rich.Priestley believed that whether we acknowledged it or not, we are allpart of one big community and have the responsibility to look aftereveryone else, no matter who they are or what their status is. In An inspector calls Priestley tries to highlight these beliefs andeducate the audience on how they should treat one another. Thismessage was particularly effective to the audiences of 1946 as, wearyfrom the southward World War they were looking for change. TheInspectors retell of Fire, blood and anguish refers to the 1st and 2ndWorld Wars, would have had great emotional impact on the audience andcaused them to think more deeply into the play and Priestleysmessage. During the Second World War social classes were forced tomix, children were evacuated to where was safest and not according toclass, all young men were forced to mix in the Trenches and on theFront Line, the women remaining at home were forced to all work in thefactories together, al... ...ugh they are his socialsuperiors. He is or need not be a littler man but however creates animpression of massiveness and of purposefulness this comes across inthe whole atmosphere he creates. He uses many tactics such as thephotograph and graphically detailed descriptions to shock both theaudiences and the characters. By shocking the audience he can best getacross his chaste warning and by shocking the other characters he canbest get them to open up to him and admit their wrongs. The Inspectorsoverall approach to the investigation is tout ensemble irregular, whichcreates dramatic interest and in some points emotional conflicts whichcreate tension and keep the audiences attention. But even after he hasleft, he is still creating interest and tension as the characters tryto decide whether or not he was a real inspector and in fact whetheror not he was actually real.

News Events in Television History :: essays papers

News Events in Television HistoryNews Events in the History of TV In chronicling the away 50 years of television, the Academy of Television Arts and Sciences involves many clips from historical events that were carried on television. Including these news events is appropriate to the history of television because the advent of this technology brought the democracy and world together in times of tragedy and joy via the global village created by this medium. The events that changed our world also changed the world of television. It can be argued that it is not necessary to include world events when discussing the history of television, simply because they were not created for television, but television created programming to include it, but this is a narrow-minded view of the medium that is television. The fact that the wide-cut world was able to be brought together and be educated about world news at the same time was a revolutionary thing. or else than television changin g the course of human events, human events changed the direction in which television programming was headed. Prior to television, people found out about happenings done word of mouth, or newspapers at best. This new media source brought a sense of immediacy to current events. The inclusion of the assassination of John F. Kennedy in the montage from the Emmy awards shows a critical turning point in television news. Prior to this event, news on television was not as important to citizens because nothing so monumental had been broadcast that affected as many people. This changed the basis of television news from small, local, everyday events, to coverage of worldwide occurrences that had a deep impact on everyone. almost may argue that these news events should not have been included in such a short montage of the history of television. Clips from such events as the Vietnam state of war and the crash of the space shuttle Challenger were not part of television. They were part of the military history and NASA, respectively. Simply because they were broadcast on television does not pay off them part of television history. Television began as an entertainment medium, and continues to entertain as a primary function. The broadcast of news events is part of television, but should not be considered so important as to be included in such a compact history.

Tuesday, May 28, 2019

Capitalism or Moral Enlightenment in Joseph Conrads Heart of Darkness :: Heart Darkness essays

Heart Of Darkness - Capitalismor honorable Enlightenment Joseph Conrads novel Heart of Darkness is approximately a seaman named Charlie Marlow and an experience he had as a younger man. Early in the novel it becomes app arnt that there is a great deal of accent in Marlows mind to the highest degree whether he should profit from the immoral actions of the corporation he works for which is involved in the ivory trade in Africa. Marlow believes that the company is ignorant of the tension between moral enlightenment and capitalism. The dehumanization of its laborers which is so early app arnt to Marlow seems to be unknown to other members of the Companys management. In this legend Marlows aunt represents capitalism. Her efforts to get him a job be significant because of the morally compromising nature of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, You forget, dear Charlie, that the labourer is worthy of his hire (12). It is clear that Marlow has mixed feelings about the whole idea. At one point, trying to justify his actions to himself, he says, You substantiate it was a continental concern, that Trading Society but I select a lot of relations on the living continent, because its cheap and not so nasty as it looks they say (12). Marlow finally takes the job, however, and tells himself that the pain and unusually caustic treatment the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions much(prenominal) as, Ever any madness in your family(15)? In this part of the story Marlow is made to feel small and unimportant. Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been second guessing his decision and feeling some k inship with the other (black) workers who are exploited, but he does not reveal any such understanding. Upon arriver his destination in Africa, Marlow finds that things are just the same. At the point when he is denied lay after traveling twenty miles on foot he sees things are not going to change. Marlow then tells of how disease and death are running hot through-out the area, and the company does nothing in the way of prevention other than to embolden those who stay alive.Capitalism or Moral Enlightenment in Joseph Conrads Heart of Darkness Heart Darkness essaysHeart Of Darkness - Capitalismor Moral Enlightenment Joseph Conrads novel Heart of Darkness is about a seaman named Charlie Marlow and an experience he had as a younger man. Early in the novel it becomes apparent that there is a great deal of tension in Marlows mind about whether he should profit from the immoral actions of the company he works for which is involved in the ivory trade in Africa. Marlow believes that the company is ignorant of the tension between moral enlightenment and capitalism. The dehumanization of its laborers which is so early apparent to Marlow seems to be unknown to other members of the Companys management. In this story Marlows aunt represents capitalism. Her efforts to get him a job are significant because of the morally compromising nature of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, You forget, dear Charlie, that the labourer is worthy of his hire (12). It is clear that Marlow has mixed feelings about the whole idea. At one point, trying to justify his actions to himself, he says, You understand it was a continental concern, that Trading Society but I have a lot of relations on the living continent, because its cheap and not so nasty as it looks they say (12). Marlow finally takes the job, however, and tells himself that the pain and unusually harsh treatment the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions such as, Ever any madness in your family(15)? In this part of the story Marlow is made to feel small and unimportant. Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been second guessing his decision and feeling some kinship with the other (black) workers who are exploited, but he does not reveal any such understanding. Upon reaching his destination in Africa, Marlow finds that things are just the same. At the point when he is denied rest after traveling twenty miles on foot he sees things are not going to change. Marlow then tells of how disease and death are running wild through-out the area, and the company does nothing in the way of prevention other than to promote those who stay aliv e.

Capitalism or Moral Enlightenment in Joseph Conrads Heart of Darkness :: Heart Darkness essays

Heart Of Darkness - Capitalismor Moral depth Joseph Conrads refreshful Heart of Darkness is about a labourer named Charlie Marlow and an experience he had as a younger man. Early in the novel it becomes apparent that there is a great deal of tension in Marlows mind about whether he should profit from the immoral actions of the caller-out he works for which is involved in the ivory trade in Africa. Marlow believes that the social club is ignorant of the tension between moral enlightenment and capitalism. The dehumanization of its laborers which is so early on apparent to Marlow seems to be unknown to other members of the Companys management. In this story Marlows aunt represents capitalism. Her efforts to get him a job are momentous because of the morally compromising temper of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, You forget, dear Charlie, that the labourer is worthy of his hire (12). It is clear that Marlow has mixed feelings about the unhurt idea. At one point, trying to justify his actions to himself, he says, You understand it was a continental concern, that Trading Society alone I have a can of relations on the living continent, because its cheap and non so nasty as it looks they say (12). Marlow finally takes the job, however, and tells himself that the pain and unusually harsh handling the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions such as, eer any madness in your family(15)? In this part of the story Marlow is make to feel small and un serious. Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been plump for guessing his decision and feeling some kinship with the other (black) worker s who are exploited, but he does not reveal any such understanding. Upon reaching his savoir-faire in Africa, Marlow finds that things are just the same. At the point when he is denied rest after traveling twenty miles on foot he sees things are not going to change. Marlow then tells of how disease and death are running wild through-out the area, and the company does nothing in the way of prevention other than to promote those who point alive.Capitalism or Moral Enlightenment in Joseph Conrads Heart of Darkness Heart Darkness essaysHeart Of Darkness - Capitalismor Moral Enlightenment Joseph Conrads novel Heart of Darkness is about a seaman named Charlie Marlow and an experience he had as a younger man. Early in the novel it becomes apparent that there is a great deal of tension in Marlows mind about whether he should profit from the immoral actions of the company he works for which is involved in the ivory trade in Africa. Marlow believes that the company is ignorant of the te nsion between moral enlightenment and capitalism. The dehumanization of its laborers which is so early apparent to Marlow seems to be unknown to other members of the Companys management. In this story Marlows aunt represents capitalism. Her efforts to get him a job are significant because of the morally compromising nature of the work of which she seems totally ignorant. When Marlow expresses doubts about the nature of the work, she replies, You forget, dear Charlie, that the labourer is worthy of his hire (12). It is clear that Marlow has mixed feelings about the whole idea. At one point, trying to justify his actions to himself, he says, You understand it was a continental concern, that Trading Society but I have a lot of relations on the living continent, because its cheap and not so nasty as it looks they say (12). Marlow finally takes the job, however, and tells himself that the pain and unusually harsh treatment the workers are subjected to is minimal. During the tests and the requirements that he has to undergo before entering the jungle Marlow feels that he is being treated like a freak. The doctor measures his head and asks him questions such as, Ever any madness in your family(15)? In this part of the story Marlow is made to feel small and unimportant. Any feelings or concerns that he has are not important to the company, and as a result, he feels alone. It is only logical that Marlow would have been second guessing his decision and feeling some kinship with the other (black) workers who are exploited, but he does not reveal any such understanding. Upon reaching his destination in Africa, Marlow finds that things are just the same. At the point when he is denied rest after traveling twenty miles on foot he sees things are not going to change. Marlow then tells of how disease and death are running wild through-out the area, and the company does nothing in the way of prevention other than to promote those who stay alive.

Monday, May 27, 2019

Analysis of Motives and Prospects within the OLI Framework: A Case Study of German FDI in China

AbstractThis poll deals with an analysis of German FDI in chinaw be using the OLI modelling, an discriminating frame run low for analysing FDI. Other theories that aid in explaining German FDIs motives and prospects in mainland china atomic number 18 the informalisation theory and the product cycle theory. This study is mainly qualitative, using secondary data from subsisting literature. It suggests that German FDI is guided by internalisation advantages, side-specific advantages, and ownership advantages in its motives and prospects in the Chinese grocery. The internalisation advantages for German FDI in chinawargon include incentives derived from conducting such FDI in the coarse over otherwise locations or through exporting. Location-specific advantages argon identified as cheap, trained toil, export-oriented nature of existing FDI, quality of local anaesthetic infrastructure, access to innate resources, and cooperation agreements with local suppliers and the Chi nese disposal. Ownership advantages, on the other hand, ar identified as technology-based infrastructure and management know-how.IntroductionThis report deals with the analysis of motives and prospects within the OLI manikin, think on a elusion study of German orthogonal hold investment (FDI) in china. To begin with, it is consequential to define and describe what the OLI Framework is. The OLI modelling was veritable by Dunning (2010) and is reckoned an eclectic approach to the study of FDI. It has been a guaranteed viable means to think ab start MNEs, which likewise paved the style for a black grocery store of applied works in economics and international employment. Albeit it does not constitute a formal theory in itself, the OLI exemplar is nevertheless helpful in classifying numerous recent empirical and analytical studies concerning FDI (Reinert et al., 2009). Foreign direct investment (FDI) has been an important characteristic of globalisation. It is different from portfolio investment since it involves a package of assets and intermediate products and is approximatelyly carried out by MNEs (Blanco and Razzaque, 2011). Germ each is Chinas most important trade partner from Europe. In 2003, German companies were placed as the top European investors in China and were ranked as the seventh largest investors in the body politic. Albeit the 7.9 billion investment of German companies in China comprised a tenfold increase from 1995, this scarcely constituted 1.2 per cent of total German FDI. Most of these investors were manu facturing companies (around 2/3 of all told German investors). Some of the pi singleer German companies in China are Bayer, Siemens, and Volkswagen, which curb been doing business with China for much than a hundred years (Reinert et al., 2009). China has large securities intentness potential as proved by about 76 million abundant consumers in the country, which is even larger than Germanys total population. China i s also characterised by low-cost assembly line, which serves as a study driver for investing in the country. Apart from it, its WTO membership has been an important driving factor behind German FDI, as WTO enabled easier access to Chinas securities industry (Bao, Lin, and Zhao, 2012 Reinert et al., 2009). The issues besetting German FDI in China are the unrelenting legal uncertainties in the country, as shown by the lack of intellectual property rights protection limited commercialise transparency the rapelvic inflammatory diseasely changing regulatory framework conditions and obstacles inadequate potential supplier networks and difficulty in searching for relevant market information payable to the problem involving the identification of individual market segments (Reinert et al., 2009). Potential German investments also face high in puke prices in China, such as high prices for fond materials and galvanizingity, thereby making it all the more difficult to attain profit margi ns. There is also a rising contention in China in the midst of the growing attractiveness of its market. Given this context, this research intends to look into the intentions and outlook of German FDI in China, using the OLI framework to evaluate them.1.1 Objectives of the interrogationThe objectives of the research are exposit as follows To analyse the German FDI in China in terms of its motives and prospects within the OLI framework To describe the theoretical underpinnings surrounding German FDI activities in China and To analyse how the OLI framework functions as a relevant model for the dynamic bring onment of MNEs and German FDI within the increasingly growing Chinese market.lit inspectionThis part of the research report exacts an array of published works relating to the proceeds of investigation to throw away light to the important concepts and to serve as evidence to the convey that may be posited. It also involves a description of methodology and data employ.2.1 M ethodology and Data UsedThis research is characteristically qualitative, which means that it is value-bound and relies on interpretations. It is predominantly inductive and is carried out in earthy settings, discounting the use of quantities and measurements, which are confined within the domain of quantitative research (Klenke, 2008). This research also uses a case study method, which is described as the study of the particularity and complexity of a single case (Simons, 2009 19), which in this report is the German FDI in China. result study as this reports research approach acknowledges the tradition in which it is drawn upon, specifically qualitative research (Simons, 2009). Secondary data are solely utilise for this report. These are data that have been collected by a person (e.g. an author) and are being employ by another (e.g. a researcher) for his/her own get (Oleckno, 2008). These data are therefore non-original. In this research report, they are mainly taken from book s, academic journals, and relevant online resources relative to the topic being investigated. The search engines used to locate the needed materials are Google, Scholar Google, and Books Google, from which a number of sources have been uncovered. The journal articles utilised from these search engines are published by Wiley and Elsevier.2.2 Literature revaluation on the Motives and Prospects of German FDI in ChinaAccording to Zhang (2005), Chinas location characteristics would help to clear and appreciate massive FDI in the country. The four determinants of Chinas location-specific factors for the influx of FDI are its export-promotion strategy for FDI, its dominant availability of cheap labour, and export-orientation of FDI injected by the countries reaching China. In the case of Hong Kong and Taiwan, unique links with China (the Chinese connections) are important determinants. The study uses a qualitative method and a case study design in dealing with the subject matter. Its ap plicability to the topic under investigation is seen in its direct focus on FDI in China and how China has flourished as a location for countries to engage in FDI. The limitation posed by the study is its emphasis in Hong Kong and Taiwan and does not include German FDI, which does not however mean that the study is already totally irrelevant. In the work of Chen and Reger (2006), German FDI in China has been described as one that has grown larger in size and of higher quality (alongside related technological activities), with long-term motives and broad market orientation. German FDI also seeks naked markets and expands market shares within China. The authors second Zhangs (2005) earlier claim for FDI determinants in China, such as cheap, abundant labour, and export orientation and added some more, including Chinas huge domestic market, access to natural resources, and enforced tax incentives. The research approaches used by the authors include a mail survey and a database analys is. The work is applicable to the present study because of its emphasis on the nature of German FDI in China. In a separate study by Pikos (2013), the author presents an investigation of the consequences of FDI for German companies in China. The author highlights the differences amongst the following FDI in China, FDI elsewhere, and exporting. When size and sector activity are pictureled, attributes to FDI in China include turnover, employment, net income, profit margins, and total assets, to name some. Albeit performance is boosted through FDI elsewhere, this is however on smaller scale. It is noted that investing in China results in better outcomes than doing FDI in another country, and this is due to Chinas large and rapidly growing market. The methods used by Pikos (2013) are descriptive and econometric analysis in order to address the research topic. The applicability of the work to this research is its description of German FDI in China, thereby aiding the research to give l ight to the topic. A limitation of the study is its focus on location-specific factors for FDI. On the other hand, Zhang and van den Bulcke (1999) state that the expansion of FDI and its embodied technology are two of the key forces that molded the development of the Chinese automotive industry. Germany is an important source of inward FDI in Chinas automotive industry, third to Hong Kong and the join States respectively. FDI in the automotive industry during the 80s was highly focused on the assembly of whole vehicles. In the 1990s, FDI became highly concentrated on the manufacturing of separate and components. Since the Chinese government in the 1990s had strict control of the Greenfield investment projects for whole vehicle manufacturing, the latecomers encountered quite high entry barriers since dominant positions were already occupied by wee movers. European automotive multinationals strongly influenced the restructuring of Chinas automotive industry since the 80s. Moreover, Chinas European car manufacturers have engaged in cooperation agreements with the Chinese government and local suppliers and often extend technical and financial assistance to local suppliers. An example of this is a 5-billion Chinese Yuan contribution of Shanghai Volkswagen for reparation funds (Zhang and van den Bulcke, 1999). The approach of Zhang and van den Bulckes (1999) study is chronological, mainly basing from existing secondary literature. The study is relevant and applicable to the topic under investigation as it provides useful and sufficient insights on the nature of the Chinese automotive industry and the chronological development of European FDI in the country, which earth-closet aid in analysing the current motives and outlook of German FDI in China. The research limitation is bounded within the studys concentration on the Chinese automotive manufacturing industry. analytic thinking and DiscussionThe analysis and discussion provided for this research report is anch ored on the literature review being carried out for German FDI in China.3.1 Analysis of German FDI in China Using the OLI FrameworkThe OLI Framework pertains to the three potential sources of advantage namely Ownership, Location, and Internalisation, that lie beneath an organisations decision to enter into a multinational level of operation. Ownership advantages explain the reason/s why firms operate oversea whilst others do not, and indicate that successful multinational enterprises (MNEs) have firm-specific benefits that enable them to overcome the costs entailed in operating in a alien country. Location advantages, on the other hand, concentrate on the location aimed by an MNE (Reinert et al., 2009). Access to natural resources serves as a location advantage for choosing China for which to invest, as in the case of German FDI. Additional determinants of location selection for FDI are availability of cheap trained labour (e.g. Chen and Reger, 2006 Pikos, 2013 Zhang, 2005) and qu ality of local infrastructure (Tang, et al., 2012). Other critical factors are a smooth relationship with Chinese authorities, both central and local and experience to cope with Chinese bureaucracy (Tang, et al., 2012). Such relationship is the bottom line for German FDI to engage in cooperation agreements with the Chinese government and local suppliers, as earlier highlighted by Zhang and van den Bulcke (1999). Zhang (2005) also highlighted in his work that Chinas location characteristics would help to understand and appreciate massive FDI in the country. Internalisation advantages another embodiment of the OLI framework provide the influence on how a firm decides to operate abroad, making a trade-off surrounded by transaction savings and monitoring costs of a completely-owned subsidiary, on one hand and the advantages of other forms of entry, such as joint game and exports, on the other. A main characteristic of this approach is that it provides emphasis on the incentives for the individual firm. Mainstream international trade theory has considered this a current standard, which was not the case in the 1970s when FDI was classically regarded as an international movement of physical capital in pursuit of higher returns (Reinert et al., 2009 Taliman, 2007). The internalisation advantages embodied in the OLI framework are also found in the study of Pikos (2013) in the literature review, which magnifies the differences amongst conducting FDI in China, elsewhere, or through exporting, apparently aiming to ascertain the incentives that can be gained from choosing the most suitable out of the three options. The OLI framework is in fact an eclectic range of a function that provides a general theoretical framework for ascertaining firms FDI activities beyond their national borders. The eclectic paradigm is an analytical theory that accommodates other FDI theories and views most of the theories as having complementariness with each other (rather than having subs titutability) of which their application can be fully enhanced (Tang et al., 2012). transnationalisation theory is one of the general theories of FDI, which views a MNE as an organisation that engages in utilising its internal market to produce products and distribute them efficiently in situations where a regular market encounters failure of operation. In effect, the internationalisation theory regards MNES taking on FDI activities abroad as a way to respond to goods and factor market imperfections, which have in fact prevented international trade and investment to operate efficiently (Tang et al., 2012). Through FDI, MNEs are able to produce and distribute their products via internal markets, thereby enabling them to hone efficient production and improve the total profits. This notion must also constitute the motives and prospects for German FDI to conduct business in China. It must be noted that a MNE only employs FDI if the cost is outweighed by the benefits (Suneja, 2006 Tang et al., 2012). Worthy of note is the idea that in the lens of the internationalisation theory, knowledge, information, and research are intermediate products to be readily and directly traded to other countries due to the risk of loss of knowledge advantage (Rugman, 2002). However, MNEs possess vertical and horizontal integration, enabling the creation of their own internal markets, whereby intermediate products such as technology know-how are converted as a firms valuable property. This reflects the ownership advantage embodied in the OLI framework, as discussed by Reinert et al. (2009) and Taliman (2007). Hence, as the MNE sustains its competitive advantage, its ownership such as management know-how can be utilised and bolstered (Tang et al., 2012). The Uppsala Model looks at the internationalisation address as cyclic, experiential, and resource-based learning-by-doing, which seems to foresee later research flows regarding dynamic capabilities and temporary competitive advantage s with the internalisation framework (Sanchez and Heene, 2010). Based on the analysis, the internationalisation theory cannot in fact be seen as a separate body of thought from the OLI framework because it has a similar trail with such framework in relation to reasonableness the motives of a MNE (e.g. German firm) and its outlook to engage its FDI in a country like China. Meanwhile, the product cycle theory describes the so-called wild geese flying patterns of external trade to explain the different economic development strains of countries. This theory cites three phases of industrial development with which each country attempts to elevate itself o the top phase of industrialisation. The theory says that the mature phase takes place once industrialisation development has been extensively laid down over the entire region or country with robust dynamic growth (Tang et al., 2012). It is interestingnessing to consider that the OLI framework may be fastened over the product cycle th eory in analysing German FDI in China, and that the relevance of the framework cannot be set aside when the chronological developments involved in the industrialisation process are taken into account. The applicability of the twin analysis of OLI framework and the product cycle theory is seen in Zhang and van den Bulckes (1999) study, which uses chronological discussions to describe the growth of European FDI in China, and cites the ownership-specific, location-specific, and internalisation-specific factors of European firms (e.g. German firms) to invest in the Chinese automotive sector.4. ConclusionThis research report deals with analysing the motives and prospects of German FDI in China within the OLI framework. The OLI framework is an eclectic framework that accommodates other theories of FDI and explains the intentions and outlook of MNEs to engage in FDI in China. The motives and prospects of German FDI to continuously seek to invest in Chinese market is propelled by internali sation advantages (e.g. incentives through conducting FDI in China rather than elsewhere or through exporting) location-specific advantages (e.g. cheap trained labour, export-orientation of FDI access to natural resources quality of local infrastructure cooperation agreements with the central and local governments and local suppliers) and ownership-specific advantages (e.g. management know-how technology-based infrastructure). The rapidly growing globalised market ushers the German FDI to continuously seek untrieder FDI prospects within China, beset by the growing challenger and search for competitive advantages.ReferencesBao, S., Lin, S., and Zhao, C. (2012) The Chinese Economy After WTO Accession. England, Ashgate Publishing Limited.Blanco, E. and Razzaque, J. (2011) Globalisation and Natural Resources Law Challenges, Key Issues and Perspectives. Glos Edward Elgar Publishing Limited.Chen, X. and Reger, G. (2006) The Role of technology in the redactment of German Firms in China. Technovation, 26 (3), 407-415.Dunning, J. H. (2010) stark naked Challenges for International Business Research Back to the Future. Glos Edward Elgar Publishing Limited.Klenke, K. (2008) Qualitative Research in the pick up of Leadership. Bingley, IWA Emerald Group Publishing Limited.Oleckno, W. A. (2008) Epidemiology Concepts and Methods. IL Waveland conjure up, Inc.Pikos, A. K. (2013) German FDI in China Consequences for Firms Performance (Published Thesis. Denmark Aarhus School of Business, Aarhus University.Reinert, K. A. and Rajan, R., Glass, A. J., and Davis, L. S. (2009) The Princeton Encyclopedia of the World Economy. Oxfordshire Princeton University Press.Rugman, A. M. (2002) International Business Theory of the Multinational Enterprise. New York Routledge.Sanchez, R. and Heene, A. (2010) Enhancing Competences for Competitive Advantage. First Edition. Bingley, IWA Emerald Group Publishing Limited.Simons, H. (2009) Case Study Research in Practice. First Edition. London SAG E Publications Ltd.Suneja, V. (2006) Understanding Business A Multidimensional Approach to the Market Economy. New York Routledge.Taliman, S. B. (2007) A New generation in International Strategic Management. Glos Edward Elgar Publishing Limited.Tang, S., Selvanathan, E. A., and Selvanathan, S. (2012) Chinas frugal Miracle Does FDI MatterGlos Edward Elgar Publishing Limited.Zhang, K. H. (2005) Why Does So Much FDI From Hong Kong and Taiwan Go to Mainland ChinaChina Economic Review, 16 (3), 293-307.Zhang, H. and van den Bulcke, D. (1999) The restructuring of the Chinese Automotive Industry The Role of Foreign hold Investment and Impact of European Multinational Enterprises. Belgium University of Antwerp.Analysis Of Motives And Prospects inwardly The Oli Framework A Case Study Of German Fdi In ChinaIntroductionThere are a number of theories that explain motives and prospects of FDI. OLI framework is the one that is most widely used by economists. According to OLI, there have to be a dvantages that can offset costs of making direct investment abroad.In this paper we apply the OLI framework to understand the motives behind German FDI in China. A case study of Volkswagen China is conducted to show the application of OLI in practice, and to abut why FDI abroad can be a success story despite all the difficulties a lodge faces in a foreign environment.Literature ReviewOne of the earliest theories explained FDI in terms of market imperfections. Kindleberger (1969) argued that for companies to gain advantage by investing abroad market has to be imperfect . If we get in that markets are perfect there is nothing foreign companies can exploit to make enough profits that will offset costs and risks associated with investing abroad (Kindleberger 1969).. The concept of firm-specific advantages was introduced to explain how market imperfections lead to foreign investment. Among these advantages are superior technology and marketing (Caves 1971), cheap labour (Grubel 1968) , management skills (Wolf 1977), and exclusive access to natural resources (Lall and Streeten 1977). . Only when a foreign company possesses these firm-specific advantages can it successfully invest and become a major player in a foreign market and compensate for the disadvantages of being foreign in the country of its operation (Hymer 1976).Vernons product life cycle is another major FDI theory that tries to explain motives and the rationale behind FDI. Vernon (1966) dissected product life cycle into three distinct phases intromission, maturity and standardisation Established companies in developed economies invest in new projects to design innovative products that will sell in future and guarantee a new profit channel for them. When a new product is designed, it is exchange in the domestic market. Consumers gradually get used to it and demand new products. This leaves the company with two not mutually exclusive choices get back to the innovation phase and design something new , or go abroad and produce the same products there. Going abroad is some eras a better choice because foreign producers (such as China) start to imitate the existing product and become so good at it that the differences with the original become marginal (Vernon 1966).A later theory developed by Dunning (1977) has become widely used in attempts to understand the motives behind FDI. The theory became known as OLI Ownership, Location and Internalisation. All three elements should be present in order for FDI to occur. This theory will be explained in greater detail in a separate chapter of this paper.Theoretical FrameworkDefinition of FDIAccording to the Organisation for Economic Co-operation and organic evolution (OECD) (2008) 4th Edition of Benchmark Definition of FDI, FDI is a category of cross-border investment made by a resident entity in one economy (the direct investor) with the objective of establishing a lasting interest in an enterprise (the direct investment enterprise) th at is resident in an economy other than that of the direct investor . Companies carry out FDI because they want to have direct control over their enterprise. This is what makes FDI different from portfolio investments which usually result in an ownership of less than 10 per cent of a foreign companys capital. Hence the investor does not have real control over the foreign company (OECD 2008).Mergers and Acquisitions (M&A) and Greenfield investments are the two different types of FDI. The choice between them has different implications for the parties concerned. M&A happen when an existing company is bought out by a foreign firm. In contrast Greenfield investments are investments into new assets. For development economies, including China, M&A are more common, for developed economies like Germany Greenfield investments are a popular choice (Shatz and Venables 2000).FDI are divided into horizontal and vertical only in a few cases do the two occur simultaneously. Horizontal FDI occurs w hen a company invests in a firm built to serve the foreign market (Shatz and Venables 2000). . This foreign firm then performs the same activities as the host firm does in its own domestic market. With vertical FDI, the production cycle is fragment so that each phase can be completed in a country where it can be done cheapest of all (Shatz and Venables 2000).OLI FrameworkThe OLI framework is a theory that explains motives and the rationale behind multinational corporations (MNCs) decision to choose FDI instead of licensing use of their name or product to foreign producers or sellers (Lynn 2008). . FDI is a foreign investment so, for it to occur, the investing firm has to acquire assets in a foreign country. FDI is called direct investment because it results in a direct and real control over the acquired capital. MNC acquires a right to produce what it wants in a foreign country and decide where it wants to sell the product. As explained preceding(prenominal), the whole product (ho rizontal FDI), or parts of it (vertical FDI), can be produced in a foreign country based on the considerations of cost-effectiveness (Shatz and Venables 2000)..FDI occurs because there are advantages to it. The first one is ownership advantage which stands for O in the OLI abbreviation. There has to be some advantage to owning the foreign asset. These can be lower costs, greater reputation, or swifter transition to a foreign market. civilise for example Apple. The company has a reputation for high quality products so by owning a production facility in a foreign underdeveloped country it can still make profits that will offset costs of FDI (Lynn 2000). .Ownership advantage alone is not enough for FDI to occur. Here is when the L comes into play. L denotes the location advantage. A less costly labour force, access to the natural resources needed in manufacturing and a better geographic position (which leads to more efficient logistics), are some of the location advantages that can make companies seriously consider investing abroad (Lynn 2000). . Again this is not enough for FDI because everything described above can be achieved by brand licensing or through establishing joint ventures. FDI needs a third element internalization, or control, advantage. This is the I in OLI. When it is believed that MNC can lose market share in case another company gets access to the same asset, FDI becomes the only choice available (Lynn 2000). . It is known that at some stage, foreign producers start copying products produced in the developed instauration and when they do it they are able to offer cheaper prices thus outperforming foreign producers in sales. To prevent this scenario many companies prefer to go with FDI and gain exclusive control over their assets.Methods and DataIn this research, we conduct a critical review of the main theories of FDI, paying circumscribed attention to the OLI framework. While we acknowledge the importance of OLI in understanding interna tional business and FDI in particular, we provide a short overview of criticisms of the paradigm so that readers have an understanding of the potential limitations of this research.A case study of German car manufacturer Volkswagen is used as a method of understanding FDI under the OLI framework as applied to the German investor interest in China and the two countrys bilateral economic relations.Additionally, we use statistical information to put some numbers into perspective and cite a research by Deutsche Bank which includes some forecasts as to the future of German FDI in China.Volkswagen (VW) Case StudyVolkswagen was founded in 1937 (Datamonitor 2011). The name of the brand translates as the car of the people (Datamonitor 2011).. Volkswagen is represented in China through two ventures with Shanghai Automotive International confederacy founded in 1985 and with First Automotive Works started in 1990 in Changchun (VW annual Report 2010).VW has always regarded China as an import ant market. Today, there are 9 production facilities in China and 2 more are planned. VWs target is to sell 3 million cars per year. Through 2015 VW is set to invest a total of 10.6 million euro to expand its production in China. VW is actively involved in producing electric vehicles in China. Both E-Golf and E-Lavida were presented in China and the first electric test was made here in 2011. VW is also set to produce a new brand specifically for the Chinese fast-paced economy (VW Annual Report 2010).Volkswagen Analysis Based on the OLI ParadigmOwnership advantageVW is one of the worlds most successful car manufacturing companies and, as such, it has a lot of advantages. VW is known in Europe for its technological advances and efficient production system. VW brand is strong all over the world. Many consumers associate vehicle design innovation, cost-effectiveness, and high safety standards with VW and consider it as their first choice when making decisions on buying a vehicle (VW of ficial website 2011). Not surprisingly, VW had a competitive advantage over all Chinese manufacturers at the time of the entry into the market (VW official website 2011). In fact, VW is still superior to any of the Chinese car producers. VW exploited its technological confidence and increased its brand recognition. Chinese consumers were happy with the product offered and enjoyed VWs presence in their country. Currently, VW strives to adjust its technology to meet changing customer needs and develop sustainable models for future (Yu 2010). .Location advantageVWs joint venture in Shanghai was the most successful car enterprise in China at the time it was established in 1985 and it retains the top position today (Li 2000). . Locating in China, and Shanghai in particular, was the best possible decision for VW in terms of location because the region is rapidly developing and the peoples life standards are improving. Shanghai is the most densely populated and prosperous city in China an d it has close ties with the central part of the country (Li 2000). Products from Shanghai are considered to have high quality across China and do not face any obstacles due to local protectionism. It should be also noted that at the time VW entered China it received many incentives and support from the government. The government still stimulates the automobile industry to increase domestic sales and contributes to the development of the sector. Thanks to these location advantages, VW China became a success and continues to be a source of decent income for the parent company (Li 2000)..Internalization advantageVW had the first movers advantage which helped it to become a major player in the new market. The company managed to take control over the major share of the Chinese market and realise all its ownership advantages. This first mover advantage till today helps VW to be very competitive with regards to Japanese and American rivals. To retain its market share, VW continues to inno vate according to the changing tastes of the Chinese consumers and requirements to reduce the strain on the environment resulting from manufacturing and exploitation of automotive vehicles (VW official website 2011).Future of German Interest in ChinaChina has attracted German interest more than any other emerging country since 1997 (Deutsche Bank Research 2004). German companies explain their excessive interest in China by citing the countrys huge market potential. In 2001 there were about 76 million prosperous consumers in China a population that is worth FDI in any country despite possible barriers and foreign culture-related challenges (Deutsche Bank Research 2004). This number of prosperous consumers in China is greater than the total population of Germany and it is set to increase tenfold by 2015. The second most important argument for German FDI in China is the extend low-cost assembly line (Deutsche Bank Research 2004). Cost has always been one of the most important conside rations in business decision-making.. Heated global disceptation for competitive advantage and market shares across virtually all industries means that companies need to find cheaper options for manufacture. China is often the best solution because of the low-cost labour force it offers. Not surprisingly, Germany, alongside other strong economic powerhouses, chooses China as a low-cost manufacturing site and actively invests there (Deutsche Bank Research 2004).Another reason for German FDI is the growing economy of China and its potential to become a dominant power. Germany has to defend its interest in a country which is set to become a global leader with an over 1 billion of potential buyers of products and services.Of course, China is a completely whole new world for German businesses that has to be explored until there is sufficient understanding call for for making informed decisions. Usually, most foreign companies entering China lack information spanking for their success and have to be quick to adapt or risk becoming a failure. China cannot be considered one country one market. It is bigger than both Eastern and Western Europe put together (Deutsche Bank Research 2004) and it is naive to think that one product design or pricing strategy will work across the whole country (Deutsche Bank Research 2004). Hence a lot of prior planning is required (Deutsche Bank Research 2004). Among other obstacles that can potentially deter German interest in China are high input prices. There are a lot of protectionism locally, and also many logistic and bureaucratic inefficiencies that are not easy or cheap to overcome. Moreover, the global prices for raw materials and energy resources are growing which adds to the cost of production even in China (Deutsche Bank Research, 2004). The final commonly-cited obstacle to German interest in China is the heated competition amongst different foreign companies coming from such developed nations as USA, Canada, and Australia. Everyone knows about advantages of investing in China and hence there is a lot of competition for assets and control over the market.Criticism of OLI frameworkThe OLI framework offers a very useful insight into the motives and the rationale behind FDI. The paradigm has evolved over the time to adapt to changes in the way international business is conducted (Narula 2010). Critics of the theory argue that because of expansion of OLIs application to all MNE-related phenomena, it now risksbecoming tautologous (Narula, R. 2010). Narula proposes a return to the classic OLI framework and using utility(a) theories to understand the more complex new developments rather than internalising everything so that it fits OLI. Narula acknowledges the importance of OLI in early research on the international business and FDI, but argues that it is not suited for explaining everything that happens in business (Eden 2003). In fact, it is becoming cumbersome to apply OLI to understanding international business, as the latter has became complex (Eden 2003).There is a need for new frameworks. OLI can still be a valuable tool in understanding some aspects of international business and FDI, but should lose its dominance in the academic community (Narula, R. 2010).ConclusionGerman interest has been present in China for almost half a century. Because Chinese market is huge and has a big growth potential, German companies are likely to look for more opportunities there. Before a decision to invest is made, companies always asses its prospects. OLI framework is often used to see whether FDI is justified. OLIs critics now say that there should be some additional analysis involved in decision-making, because, as good as the paradigm is, it still cannot explain every complex aspect of international business.ReferencesCaves, R. (1971). International Corporations The Industrial Economics of Foreign Investment.Economica, Vol. 38, pp. 1-27Datamonitor (2011). Automotive Manufacturing in Chinahtt p//360.datamonitor.com.www.baser.dk/Product?pid=10C672D5-7559-4A0A-90B3-5EFBDF97D73C accessed 31 March 2014Dunning, J. (1977). Trade, location of economic activity and the multinational enterprise A search for an eclectic approach. University of Reading diuscussion papers in international investments and business studies, no. 37Eden, L. (2003). A Critical Reflection and Some Conclusions on OLI. Vox Professori. http//www.voxprof.com/eden/Publications/Eden-Reflections-on-OLI-2003.pdf accessed 1 April 2014Foreign Direct Investment in China Good Prospects for German CompaniesChina Special (2004). Deutsche Bank Research. http//www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000196028.PDF accessed 30 March 2014Grubel, H. (1968). Internationally Diversified Portfolios Welfare Gains and Capital Flows. American Economic Review, Vol. 58, pp. 1299-1314.Hymer, S. (1976). The International operations of National Firms A Study of Direct Investment. PhD Thesis. Massachusetts Institute of TechnologyKindleberger, C. (1969). American Business Abroad Six riles on Foreign Direct Investment. Yale University PressLall, P. and Streeten, S. (1977). Foreign Investment, Transnationals and Developing Countries. London MacmillanLi X. (2000). Foreign Direct Investment in China The Importance of Market Entry Timing. The Haworth Press, IncLynn, W. (2008). The OLI Framework Temple University. Lecture Notes. http//astro.temple.edu/pippin/oli.htm accessed 30 March 2014Narula, R. (2010). Keeping the eclectic paradigm simple a brief commentary andimplications for ownership advantages. United Nations University. Working Paper Series. https//www.google.com/q=Narula%2C+R.+(2010).++Keeping+the+eclectic+paradigm+simple%3A+a+brief+commentary+and++implications+for+ownership+advantages accessed 30 March 2014OECD (2008). OECD Benchmark Definition of Foreign Direct Investment, 4th Edition, pp. 1-241Shatz, H. and Venables, A. (2000). The Geography of International Investment. Policy Research Wor king Paper, Vol. 2338, The World Bank, Washington, D.C.Vernon, R. (1966). International investment and international trade in the product cycle. Quarterly Journal of Economics, Vol. 80, pp. 190-207Volkswagen Annual Report (2010). http//www.volkswagenag.com/vwag/vwcorp/info_center/en/publications/2011/03/Volkswagen_AG_Geschaeftsbericht_2010.-bin.acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf accessed 31 March 2014Volkswagen official website (2011). With a new sales record Volkswagen Group China, http//www.volkswagenag.com/vwag/vwcorp/info_center/en/news/2011/01/With_a_new_sales_record_Volkswagen_Group_China.htmlaccessed 31 March 2014Wolf, B. (1977). Industrial Diversification and internationalization Some Empirical Evidence. Journal of Industrial Economics, Vol. 26, no. 2, pp. 177-191.Yu, Q. (2010). BlueMotion powers VW to save energy, boost sales.http//www.chinadaily.com.cn/business/2010-12/20/content_11728087.htm accessed 31 March 2014Additional ResourcesChunlai, C. (1997). The Location Determinants of Foreign Direct Investment in Developing Countries. The University of Adelaide. http//www.rrojasdatabank.info/97_12.pdf accessed 30 March 2014China (2013). German Federal Foreign Office. http//www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/China_node.html accessed 30 March 2014Franco, C., Rentocchini, F., Marzetti, G. (2008). Why Do Firms Invest AbroadAn Analysis of the Motives Underlying Foreign Direct Investments. University of Bologna and University of Trento. http//www.etsg.org/ETSG2008/Papers/Franco.pdf accessed 30 March 2014World Economy FDI The OLI Framework. University of Oxford. http//users.ox.ac.uk/econ0211/papers/pdf/fdiprinceton.pdf accessed 30 March 2014

Sunday, May 26, 2019

Geography SBA Essay

To identify and explain the processes which led to the formation of limestone in the areas of Bog passing, Lluidas Vale, Ty Dixon and Moneague.MethodologyOn May 20, a group of 4th form Geography students from Meadowbrook High visited the contrasting limestone areas of Lluidas Vale and The Ty Dixon Caves in St.Catherine, and Moneague in St. Anns. I collected data by means of photography and jotting down important details. As wellspring as use of the senses, visual being the most effective, as well as tactile perception which was withal effective. We went on to the various stops I took my notes and asked questions thus elaborating on what I didnt grasp properly.As the tour guide, Mr. Daley, explained the different features, expounded on their formation as well as provided suggestions for the SBA composition. This information benefits as secondary information. I faced only one challenge which was traversing the landscape in unsuitable footwear and inclement weather. Nevertheless I managed to capture the essence of the areas and their features. I tried to capture the images on the camera as best as Icould, by experimenting at different angles, ranges and utilizing close ups to capture the general importance.Analysis & DiscussionStop 1 Bog Walk GorgeOur startle stop was along the road within the Bog Walk Gorge, located 5 miles south of the Bog Walk Village one of the oldest historic towns in Jamaica. While at this location, it was evident that the limestone feature formed was composed of pure limestone, because the luminousness the rock is in color, is the purer its composition of limestone is. It was also detect that chemical weathering, the transmute in the chemical structure and sometimes physical appearance of a rock, was acting upon the rock in the form of carbonation. This is the reaction of rainwater, carbon dioxide and limestone to form atomic number 20 bicarbonate, a weak carbonic acid which is soluble, making the rock easy to decompose when it c omes into contact with water. Clints and Grykes were evident, as visible in figure 1.0, contributing to weathering. Clints and grykes are a result of carbonation in the weaker joints and cracks of a rock leaving ridges and groves. The ridges are Clints and the groves are grykes.Plate 1.0 (Chemical weathering acting on the rocks)The entire gorge is rich with torrent and varied vegetation which makes for some impressive and dramatic scenery. Another feature formed at the gorge was a sabotagern, which is a large extensive cave with a slurred chamber and interconnecting passages. When the roof of a cave collapses, large depressions called gorges result, hence the name Bog Walk Gorge. The gorge was originally an belowground river system which collapsed. The cliffs on both sides of the gorge seemed to still possess potential to collapse. The main river has a tributary coming from the Above Rocks District located in St. Andrew. The major river processes in the area are Hydraulic Action , the sheer force of flowing water on the base of the river bed, and Attrition, when rocks, carried by the river, smash together and tear into fiddlinger,smoother particles. Stop 2 The Bog Walk BridgeOur second stop was made at the entrance to the Pleasant Hill Community, The Bog Walk Bridge 83.9 km away from Kingston. Here we examined a bridge which was oxidizing. This is a chemical reaction in which substances combine with oxygen to form an oxide For example, the combination of entreat with oxygen to form an iron oxide (rust). I saw ridges which descended from the mountains to the lower parts. These are called interlocking spurs. There was also a alluvium warning system invest as well. It showed the heights of the river and the level of seriousness to be taken hence flooding must be a threat to this community. Gabion basins were also observed along the banks to help keep them in place. The width of the river was most 10-13m wide (at points).Plate 2.0 (example of oxidation)St op 3 Lluidas Vale, St. CatherineOur third stop was at Lluidas Vale, worthy Park in St. Catherine. At this location we observed a sink which was its main feature. A sinkhole is when a joint becomes enlarged to such an extent that a deep vertical hole is created, down which a surface may disappear. A sinkhole was created due to a tributary flowing onto the surface and came upon the land climb upward and eroded the foot of the slope. Overtime the tributary then began to flow underground. Not much water was observed on the surface. The land closer to the sinkhole appeared somewhat moist. A Polje was evident at this location this is an elongated depression or basin, formed by the synchronization of caves. A polje is found in karstic geological regions of the world, with areas usually 5 to 400 km. The polje occurs in Troy governance. This limestone feature is displaced by NE-SW trending faults to produce large-scale fault blocks, which are important controls on the sound structure of the area. Geomorphology is the scientific study of landforms and the processes that shape them. A more recent alluvial and limestone debris cover occurs within the vale, whereas the steeply sloping rim of the polje to the west, north-central and east is within Troy Formation limestone group.To thesouth and southwest of the vale, rocks of the Yellow Limestone Group crop out, while further south older cretaceous volcanic and sedimentary strata are exposed. In Luidas Vale processes are predominate by mass is a plateau area that has been severely eroded so that the computer backup is sharp. The Yellow Limestone Group consists of limestones (Stettin and Chapelton Formations) and clastic rocks (E.g. Guys Hill Formation). The limestone of the Yellow Limestone Group give rise to doline karsts, with low residual hills, with the dolines locally amalgamated to form uvulas in the Stettin Formation movements and surface water erosion, forming a typically dissected terrain, this is the Lluida s Vale polje which is developed within a down faulted block of Tertiary white limestone and it has a ironlike structural control through NW-SE trending faults. The floor of the vale also appears to be structurally controlled in that a series of down-faulted limestone blocks are present and overlain by a sequence of limestone rubble, bauxitic soils and alluvium which extends to over 30 m thickness.Lluidas Vale is a Rand- or Border-Polje in that it is not surrounded on all sides by limestone but bordered to the south by volcanic and clastic sedimentary strata of the Central Inliers in the Juan de Bolas Mountains. The latter is the source of the Rio Cobre and Murmuring Brook which flow north towards the vale. The Rio Cobre flows north through the centre of the vale, but turns abruptly south eastwards and flows a short distance along the fault scarp before sinking. In the polje, the river and Murmuring Brook are both ephemeral streams flowing only after rainfall. The north and northwe st border of the vale is marked by well developed cockpit karst. A number of small alluvial fans occur on this part of the vale in heavy clay soils representing the residue of limestone dis source.Much lighter alluvial soils occur on the eastern and gray part of the vale due to more frequent flooding. The western margin of the vale is marked by a less steep slope containing dolines and small conical hills grading to tower karsts towards the polje. There were also caves in the area containing stalactites, stalagmites and pillars. A stalagmite is an icicle like nonplus of calcium carbonate which rises from the floor of a cave. A stalactite is another icicle like deposit of calcium carbonate hanging from the caves roof or growing downward. A pillar is a slender vertical structure of stone used as a support or for ornament. These features can be seen a plot 1.2. Thelandforms occurred on a west-facing fault scarp above Lluidas Vale polje. The area was also covered with shrubs and li felike vegetation mainly closer to the slope.Stop 4 Ty DixonDuring our stop at Ty Dixon where tower karsts, the name given to all landforms in areas of limestone, and dolines were evident. A doline is a funnel shaped or conical shaped solution hollow which is formed when several shallow holes unite. There seemed to be an eroded highland that left field a residual hill forming tower karsts and dolines. The tower karsts seemed approximately 40m tall. A tower karst is isolated steep sided residual hills. At the base at the end of the residual hills, there were shallow caves which were generally covered with shrubs and natural vegetation. The vegetation of the area was cultivated on the flat areas, where irrigation and accessibility is better, of mainly sugar cane while in other areas, like on the tower karsts there were natural vegetation.Stop 5 MoneagueMoneague was once one of the largest and most important towns in St. Ann, due to its convenient location along the main normality to South. The Moneague Ponds was once located on a flood plain. While at this location houses were visible within close proximity of the ponds. Debris such as trees, trunks and barks could be seen in the pond. The soil was heavily saturated with water (waterlogged) and appeared darkened in color. The water in the pond, however was light blue and plum clear. There was natural vegetation touch the pond, this is evident in plates 5.0 and 5.1Plate 5.0 (Moneague Ponds)Plate 5.1 (Lush natural vegetation surrounding the ponds)Effect of LimestoneLimestone affects the environment as it induces passing alkaline dusts which are air pollutants. It also has effects on health, in particular for those with respiratory problems. The dust also has physical effects on the surrounding plants, like it blocks and damages their internal structures and abrasion of leaves and cuticles, as well as chemical effects which may affect long-term survival.Benefit of LimestoneAs it has its effects, limestone also has its benefits. Adding limestone to water in order to neutralize it is known as liming. When limestone is added to ponds and lakes, it has the effect of adding calcium and protecting the water from becoming too acidic. The benefit of limestone in this positioning is that it restores and helps to maintain the ecology of the water and makes it supportive of aquatic life. It is also an inexpensive method of slowing down acidification. ConclusionIn conclusion to my studies, I leave identified the features of limestone in the areas of study. Our first stop was along the Bog Walk Gorge, where the rocks composure was mainly of pure limestone. Chemical weathering was acting upon the rocks resulting in faster disintegration and the formation of clints and grykes. At our second stop, the Bog Walk Bridge, located in the Pleasant Hill community, it was observed that the community bridge was under oxidation. A flood warning system was also visible, suggesting that flooding is a threat to thi s community. Our stop at Lluidas Vale, Worthy Park in St. Catherine, was the most informative one. Here we observed a sink hole formed by a tributary, As well as a polje in Troy formation. To the South and South westernmost of the vale, rocks of the Yellow Limestone Group crop out, while further south older cretaceous volcanic and sedimentary strata are exposed.In Lluidas Vale processes are dominated by mass is a plateau area that has been severely eroded so that the relief is sharp. The floor of the vale also appears to be structurally controlled. The spousal relationship and North West border of the vale is marked by well developed cockpit karsts. Much lighter alluvial soils occur on the eastern and southern parts of the vale due to more frequent flooding. The western margin of the vale is marked by a less steepslope containing dolines and small conical hills grading to tower karsts towards the polje. There were also caves in the area containing stalactites, stalagmites and pill ars. During our stop at Ty Dixon where tower karsts and dolines were evident, there seemed to be an eroded highland that left a residual hill forming tower karsts and dolines. We also came across the Moneague Ponds, which was once a flood plain and is now heavily waterlogged. Debris could be seen in the light blue color pond the soil was heavily waterlogged and appeared darkened in color.Bibliographyhttp//www.discoverjamaica.com/gleaner/discover/geography/features.htm Holmes, D. and Warn, S. (2003) Fieldwork Investigations- A Self Study Guide, capital of the United Kingdom Hodder and Stoughton, 2000.(1991) The Longman Atlas for Caribbean Examinations, London Longman Caribbean.Allen-Vassell, M., Fraser, L. (1993). A Guide to Field Studies in School-based Assessment for CXC Geography.Caribbean Publishers

Saturday, May 25, 2019

Fdi Inindia Ananalysis on Theimpact of Fdi in Indias Retail Sector-

FDI in India An analysis on the wedge of FDI in Indias Retail atomic number 18na Submitted By Subhajit ray Department of Humanities and Social Sciences IIT Kharagpur Kharagpur-721302 1 Introduction Initi all toldy the Indian insurance makers were quite apprehensive or so the prevail of unconnected large(p) into the frugality. This depose be attri onlyed to the colonial past which saw large investitures being made by their colonial rulers in the skeleton of study infrastructure instruments like railways but only to make huge gains for themselves and sucking the host country of its resources.But currently the spheric rescue has been witnessing an incessant form of frugal addition characterized by the flow of capital from the superiorly-developed world to the developing countries. During the 1990s Foreign Direct investment funds funds (FDI) became the single largest source of external finance for the developing countries. When faced with an economic crisis during the same expi ration the Indian policy makers had to open up the Indian marketplace and accordingly India has been seeing a consistent increase in FDI inflows.Indian rescue has been showing high growth poses in the post liberalization era. In the last fiscal year according to the Planning commissions data the Indian economy recorded a growth array of 8. 6% and 8% in the year before. This is reason enough to call it a high performing economy. All Multi national Enterprises (MNEs) train been eyeing the Indian market ever since they redeem opened up. The policy makers have been vigorously pursuing the reforms computer programme as they believe that high growth has been the resultant of economic liberalization.FDI has been seen as a dominant determinant to achieve high reckon of economic growth because of the ease with which it poop bring in scarce capital, triggers engine room transfer and enhances the efficiency by increasing the competitiveness of the market. Also FDI as a f orm of policy instrument to spring up capital is usually preferred over other forms of external finance because they are non-debt creating, non-volatile and their returns depend on the performance of the projects financed by the investors.FDI is achieverful in human capital formation, increases total factor productivity and efficiency of resource use. But such benefits are highly dependent on the policies of the host organization. It is further more(prenominal) described as a source of economic development, modernization, and exercise generation. Several factors both political and apolitical have led to a greater acceptance of FDI. The envisioned role of FDI has evolved from that of a tool to solve the crisis under the license raj system to that of a modernizing force of the Indian economy.In support of their campaign the policy makers have often cited the example of the Chinese experience of achieving high growth rate through with(predicate) abroad subscribe to investment . India has opened up its economy and allowed MNEs in the core heavenss such as Power and Fuels, Electrical Equipments, Transport, Chemicals, Food Processing, 2 Metallurgical, Drugs and Pharmaceuticals, Textiles, and Industrial Machinery as a part of reform process started in the beginning of 1990s. Currently FDI is also permissible in the Telecommunications, Banking, Insurance and IT sector. Currently in that location is huge debate going on about allowing FDI in retail.This stem aims to discuss the critical aspects of FDI in India, present a case study on the success of reforms in the telecommunications sector, analyze both sides of the arguments currently going on regarding FDI in retail and conclude with pointive measures on the part of the government which apprise eliminate the negative effects of allowing FDI in Indias retail sector. Assessing the partake of FDI on host economy- a review of various economic literatures FDI inflow into the core sectors is assumed to play a vital role as a source of capital management and technology in countries of transition economies.It implies that FDI can have dictatorial effects on a host economys development effort (Caves, 1974 Kokko, 1994 Markusen, 1995 Carves, 1996 Sahoo, Mathiyazhagan and Parida 2001). It has been argued that FDI can bring the technological diffusion to the sectors through knowledge spillover and enhances a faster rate of growth of output via increased travail productivity. on that point have been a lot of empirical studies to assess the reach of FDI in developing economies and the results to this date have been found to be mixed.Many reports have questioned the verifying effects of the FDI inflow in the host country. Some studies done earlier had found that FDI has a negative impact on the growth of the developing countries (Singer,1950 Griffin, 1970 Weisskof, 1972). transnational Enterprises (MNEs) in the name of FDI may drive out the local firms because of their oligopolistic power, and also, the repatriation of profit may drain out the capital of the host country. The main argument in this regard was that the main component of FDI in less developing countries was in the primary sector.Then these primary products were merchandiseed to the developed nations and processed for import back to the developing nations and thitherfore resulted in the host nations receiving a lesser value for their resources. Hanson (2001) argues that evidence that FDI generates positive spillovers for host countries is weak. In a review of micro data on spillovers from opposed- have to domesticatedally owned firms Gorg and Greenwood (2002) conclude that the effects are mostly negative. Lipsey (2002) takes a more favor subject view from reviewing the micro literature which argues that there is evidence of positive effect.He also argues that there is need for more consideration of the various circumstances that obstruct or promote positive spillovers. Rodan (1961), Chenery and Str out (1966) in the early 1960s argued that foreign capital inflows have a favorable effect on the economic efficiency and growth towards the developing countries. It has been explained that FDI could have a favorable short-term effect on growth as it expands the economic activity. up to now, in the long run it reduces the growth rate due to dependency, peculiarly due to decapitalization (Bornschier, 1980).This is due to the reason that the foreign investors repatriate their investment by contracting the economic activities in the long run. FDI is an important vehicle for the 3 transfer of technology and knowledge and it demonstrates that it can have a long run effect on growth by generating increasing return in production via positive externalities and productive spillovers. Thus, FDI can lead to a higher growth by incorporating newfound inputs and techniques (Feenstra and Markusen, 1994). Aitken, et al. 1997) showed the external effect of FDI on export with example of Bangladesh, where the entry of a single Korean Multinational in garment exports led to the establishment of a number of domestic export firms, creating the countrys largest export fabrication. Hu and Khan (1997) attribute the spectacular growth rate of Chinese economy during 1952 to 1994 to the productivity gains largely due to market oriented reforms, especially the expansion of the non-state sector, as well as Chinas open-door policy, which brought about a dramatic expansion in foreign make out and FDI.A study by Xu (2000) found a strong evidence of technology diffusion from U. S. MNEs connected in developed countries (DCs) but weak evidence of such diffusion in the less developed countries (LDCs). It concluded that in order to benefit from the technology transfer by the MNEs a country needs to achieve a basic minimum human capital threshold. A recent study by Banga (2005) demonstrates that FDI, trade and technological progress have differential impact on wages and employment.While higher extent of FDI in an industry leads to higher wage rate in the industry, it has no impact on its employment. On the other hand, higher export intensity of an industry increases employment in the industry but has no effect on its wage rate. Technological progress is found to be labor saving but does not influence the wage rate. Further, the results show that domestic innovation in terms of research and development intensity has been labor utilizing in nature but import of technology has unfavorably affected employment in India.The study by Sharma (2000) concluded that FDI does not have a statistically significant role in the export promotion in Indian Economy. This result is also confirmed by the study of Pailwar (2001) and the study also argues that the foreign firms are more interested in the large Indian market rather than aiming for the global market. The study by Sahoo and Mathiyazhagan (2003) also support the view that FDI in India is not able to enhance the growth of the econo my.Though there is a parking lot consensus among all the studies in the Indian context that FDI is not growth stimulant rather it is growth resultant. A study by Dr Maathai K. Mathiyazhagan(2005) demonstrate that the flow of FDI into the sectors has helped to raise the output, labour productivity and export in some sectors but a better role of FDI at the sectoral level is s savings bank expected. Results also reveal that there is no significant co-integrating relationship among the variables like FDI, Growth rate of output, Export and Labour Productivity in core sectors of the economy.This implies that when there is an increase in the output, export or labour productivity of the sectors it is not due to the advent of FDI. Thus, it could be concluded that the advent of FDI has not helped to wield a positive impact on the Indian economy at the sectoral level. Thus, in the eve of Indias plan for further opening up of the economy, it is advisable to open up the export oriented sectors so that a higher growth of the economy could be achieved through the growth of these sectors. 4 Foreign Direct investment funds policy of IndiaForeign direct investment policy of the government of India has been gradually liberalized. As early as in the year 1948 and 1956 (two industrial policy resolutions) government policy clearly reflected the need to extension foreign capital and technology for rapid economic growth. The core clinical of the foreign capital policy was that the control of industrial undertaking should remain in the Indian hands. However, the government had granted permission in certain cases for allowing establishment of exclusive foreign enterprises.Foreign capital was preferred in specific areas which bring in new technology and establish joint ventures with Indian partners. Government also granted impose concessions to foreign enterprises and streamlined industrial licensing procedures to accord early approvals for foreign collaborations. In the case of 100 per cent export of output, foreigners were allowed to establish industrial units. It needs to be noted here that under the Foreign Exchange regularization Act (FERA) 1974 only upto 40 per cent of the equity holding of the foreign firms were permitted.Foreign investment was permitted under designated industries along with restrictions in terms of local content clauses, export obligations, promotion of R and prohibition by law the use of foreign brands (Hybrid domestic brands were promoted such as Ford Escort and Hero Honda). It needs to be pointed out here that the restrictions have been flouted frequently and relaxations were also granted. This process has culminated into gradual liberalization of government policy towards foreign capital.It is reflected in continuous increase in the number of approvals granted. During the period 19611971, the number of foreign collaborations approved was 2475 which were increased to 3041 during the period 1971-1980. There was dramatic increase in the foreign collaboration approvals during the period 1981-1990 (7436 collaborations were approved). This policy enabled to build domestic technological capability in many branches of industry but generally considered very restrictive.It has been widely accepted that hold dearion of domestic industry for a longer period of time resulted into high cost production structure along with poor quality. Foreign direct investment policy proclaimed by the government of India in July 1991 was regarded as a dramatic departure from the earlier restrictive and discretionary policy towards foreign capital. The FDI policy of 1991 proposed to achieve objective of efficient and competitive world class Indian industry. Foreign investment was seen as a source of scarce resource, technology and managerial and marketing skills.The major feature of policy regarding foreign investment up to 51 per cent of equity holding was permitted too. Automatic approvals were also allowed to foreign investment up t o 51 per cent equity in 34 industries as well as to foreign technology agreements in high 5 priority industries. The Foreign Investment Promotion Board (FIPB) was set up to speedily process applications for approvals of the cases which were not covered under the automatic route. Laws were amended to provide foreign firms the equivalent view as the domestic ones.Government of India, however, put in place the regulatory mechanism to repatriate payments of dividends through Reserve Bank of India so that outflows are balanced through export earnings during stipulated period of time. Further liberalization measures with regard to foreign investment were taken during 1992-93. The dividend balance conditions were revoked except in the case of consumer goodlys industries. Non Resident Indian (NRI) and Overseas Corporate Bodies (OCB) were permitted in high priority industries to invest up to 100 per cent equity along with repatriation of capital and income.Apart from expansion of the area of movement for FDI in many new economic activities, the existing companies were also allowed to increase equity participation up to 51 per cent along with disinvestment of equity. Foreign direct investment policy has been changed frequently since 1991 to make it more transparent and lovable to the foreign investors. FDI up to 100 per cent is allowed under automatic route for all sectors/activities except activities that attract industrial licensing, proposals where foreign investors had an xisting joint venture in same field, proposals for acquisition of shares in an existing Indian company in the pecuniary sector and those activities where automatic route is not available. The only sectors/activities where FDI is not permitted are agriculture and plantations excluding tea plantations, real estate business (excluding development of townships, housing, built up infrastructure and construction development projects-NRI/OCB investment is allowed for the real estate business), retail trade, lottery, security portions and atomic energy.Government has simplified procedure, rules and regulations on a regular footing since 1991 to make Indian economic environment foreign investor friendly. Attempt has been made through FDI policy to make India the hub of global foreign direct investment as well as in economic activities. Trend and Dimension of FDI inflow in India The dimensions of the FDI flows into India could be explained in terms of its growth and size, sources and sectoral compositions. The growth of FDI inflows in India was not significant until 1991 due to the regulatory policy framework.It could be observed that there has been a steady build up in the actual FDI inflows in the post-liberalization period (Figures 1. 1 and 1. 2). Actual inflows have steadily increased from US $ 143. 6 million in 1991 to US $ 37763 million in 2010. This results in an annual reasonable growth rate close to 6 per cent. However, the pace of FDI inflows to India has definitely b een slower than some of the scummyer developing countries like Indonesia, Thailand, Malaysia and Vietnam.In fact, India had registered a declining trend of FDI inflows and the FDI- GDP ratio especially in 1998 and 2003 could be attributed to many factors, including the US sanctions impose in the aftermath of the nuclear tests, the East Asian meltdown and the perceived Swadeshi image different political parties, which was 6 ruling government during this period in India. It is also important to note that the financial collaboration has out numbered the technical collaboration over the years. But since 2006 India has seen a remarkably higher growth of FDI in accordance with the general trends of the global conomy with a slight dip in the year 2009-2010. This can be attributed to the recessionary situation in the global economy. In recent years, Indias share in the global FDI inflows has increased substantially. Year wise FDI inflow in the post reforms era (1990-2001) 1999-2000 2439 1 998-1999 1997-1998 1996-1997 FDI 1995-1996 1994-1995 1993-1994 1992-1993 0 1000 2000 3000 4000 US $ MILLIONS Figure 1. 1 Year 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 FDI 393 654 1374 2141 2770 3682 3083 2439 7 However, China receives a greater percent of global FDI inflows.Indias effort have not yet realized in comparison to the changes which has been made in the FDI policy. Year wise revised FDI inflow since 2000-2001 with expended coverage to approach International Best Practices. 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 FDI 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 0 10000 20000 30000 40000 US $ MILLIONS Table 1. 2 Year 200001 200102 200203 200304 200405 200506 200607 200708 200809 200910 FDI 4029 6130 5035 4322 6051 8961 22826 34835 37838 37763 Capital goods sector has more or less been bypassed by FDI.This clearly points out the tendency of foreign investment to exploit the pent up domestic demand 8 for consumer durable goods. Further m ore, there is a gradual increase in the mergers and acquisitions during the 1990s which show a tendency of FDI inflows to acquire existing industrial assets and managerial control without actually engaging in new productive activities (Nagraj, 2006). Indias large size of domestic market seems to have been the major attraction for foreign firms. SHARE OF TOP INVESTING COUNTRIES FDI right INFLOWS Others France Germany Cyprus Country Japan Netherlands U. K U. S. A. Singapore Mauritius 0 10 2 2 4 4 9 % 4 5 7 9 42 20 30 40 50 %age to total Inflows (in terms of US $) The analyses of the origin of FDI inflows to India show that the new policy has longened the source of FDI into India. There were 86 countries in 2000 which increased to 106 countries in 2003 as compared to 29 countries in 1991 whose FDI was approved by the Indian Government. The country-wise analysis of the FDI inflows shows that Mauritius, which was not in the picture till 1992, is the highest contributor of FDI to India. A major share of such investment is represented by the holding companies of Mauritius set up by the US firms.It means that the investment flowing from the tax havens is mainly the investment of the multinational corporations headquartered in other countries. Now an 9 important question arises as to why the US companies have routed their investment through Mauritius. It is because, firstly, the US companies have positioned their funds in Mauritius, which they like to invest elsewhere. Secondly, because the tax treaty between Mauritius and India stipulates a dividend tax of five per cent, magic spell the treaty between Indian and the US stipulated a dividend tax of 15 per cent (World Bank, 1999).Telecommunications Sector- A success story Further narrowing of FDI in sub-sectors reveals the success story of the telecommunications sector. Research into Telecommunications furthers the haphazard nature of FDI investment and policy making. The current process for FDI in telecommunication s can be attributed to two policies that were constrictn by the government National Telecom polity of 1994 and New Telecom Policy of 1999. Before the economic reforms teledensity was low, infrastructure growth was slow, and the lack of reforms restricted investments and bridal of new technologies.The existing legislative and regulatory environment needed major changes to facilitate growth in the sector. It was 1991 when the programme was undertaken to expand and upgrade Indias vast telecom network. The programme include complete freedom of telecom equipment manufacturing, privatisation of services, liberal foreign investment and new regulation in technology imports. Simultaneously, the government-managed Department of Telecommunications (DoT) was restructured to remove its monopoly status as the service provider.The government programme was formalised on a telecom policy statement called National Telecom Policy 1994 on 12 May 1994. However the 1994 policy was not sufficient to ma ke the Indias telecommunications sector fully open and liberalised. The incumbent monopoly (DoT) was indifferent in implementing the national telecom policy efficaciously due to its lack of commitment. This paved the way for designing a new policy framework for telecommunications which was called the New Telecom Policy 1999. The New Telecom Policy 1999 (NTP99) was developed after the reform process began in 1991.The interest of the government led to the new policy. As a result in addition to the sectoral caps, the government policy played a major role in the liberalization of the telecom sector. As a result a large number of one-on-one operators started operating in the basic/mobile telephony and Internet domains. Teledensity has increased, mobile telephony has established a large base, the number of Internet users has seen a centre growth, and large bandwidth has been made available for software exports and IT-enabled services, and the tariffs for international and domestic link s have seen significant reductions.Total FDI in Telecommunications sector is over US $ 15 billion. The coup detat of Hutch by Vodafone is one of the largest FDI deals for an amount of US $ 11 billion. Tariff 10 rates are the lowest in the whole world and there are more than 250 million users. The Retail sector in India The retail industry in India is one of the fastest growing. Even without FDI driving it, the corporate owned retail sector is expanding at a furious rate. AT Kearney, the well-known international management consultancy, recently identified India as the second most attractive retail destination globally from among thirty emergent markets.It has made India the cause of a good deal of excitement and the cynosure of many foreign eyes. With a portion of 14% to the national GDP and employing 7% of the total workforce (only agriculture employs more) in the country, the retail industry is definitely one of the pillars of the Indian economy. . Trade or dispense is the sing le largest component of the services sector in terms of contribution to GDP. Its massive share of 14% is double the figure of the next largest broad economic activity in the sector.The retail industry is divided into arrange and unorganised sectors. Organised retailing refers to trading activities undertaken by licensed retailers, that is, those who are registered for sales tax, income tax, etc. These include the corporate-backed hypermarkets and retail chains, and also the privately owned large retail businesses. Unorganised retailing, on the other hand, refers to the traditional formats of low-cost retailing, for example, the local kirana shops, proprietor manned general stores, paan/beedi shops, convenience stores, hand cart and pavement vendors, etc.A simple glance at the employment numbers is enough to paint a good picture of the relative sizes of these two forms of trade in India organised trade employs roughly 5 lakh people whereas the unorganized retail trade employs well -nigh 3. 95 crores. Given the recent numbers indicated by other studies, this is only indicative of the magnitude of expansion the retail trade is experiencing, both due to economic expansion as well as the jobless growth that we have seen in the past decade.It must be noted that even within the organised sector, the number of someonely-owned retail outlets far outnumber the corporate-backed institutions. Though these numbers translate to approximately 8% of the workforce in the country (half the normal share in developed countries) there are far more retailers in India than other countries in absolute numbers, because of the demographic profile and the preponderance of youth, Indias workforce is pro rata much larger. That about 4% of Indias population is in the retail trade says a lot about how vital this business is to the socio-economic equilibrium in India. 1 Arguments against adoption of FDI in Indias Retail sector FDI driven modern retailing is labour displacing to the extent that it can only expand by destroying the traditional retail sector. Till such time we are in a position to create jobs on a large scale in manufacturing, it would make eminent sense that any policy that results in the elimination of jobs in the unorganised retail sector should be kept on hold. Studies suggest that about 5 crore jobs allow for be lost and only 20 lakhs new jobs will be created.With their incredibly high capital FDI driven retailing units such as Wal-Mart will be able to sustain losses for many years till its immediate competition is wiped out. This is a normal predaceous strategy utilize by large players to drive out small and dispersed competition. This entails job losses by the millions. Even the organised retail sector may face serious problems and may eventually be wiped out. The FDI driven retail units will typically sell everything, from vegetables to the latest electronic gadgets, at super low prices that will most likely undercut those in nearby local s tores selling similar goods.They would be more likely to source their unexampled materials from abroad, and procure goods like vegetables and fruits directly from farmers at pre-ordained quantities and specifications. This means a foreign company will buy big from India and abroad and be able to sell low severely undercutting the small retailers. Once a monopoly situation is created this will then turn into buying low and selling high. Such re-orientation of sourcing of materials will entirely disintegrate the already established supply chain.In time, the neighbouring traditional outlets are also likely to fold and perish, given the predatory pricing power that a foreign player is able to exert. As Nick Robbins wrote in the context of the East India Company, By controlling both ends of the chain, the company could buy cheap and sell in force(p) It is true that it is in the consumers best interest to obtain his goods and services at the lowest possible price. But this is a privil ege for the individual consumer and it cannot, in any circumstance, override the responsibility of any society to provide economic security for its population.Clearly collective well-being must take precedence over individual benefits. The primary task of government in India is still to provide livelihoods and not create so called efficiencies of scale by creating redundancies. 12 Arguments in favour of adoption of FDI in Indias Retail sector The main driver for adoption of Retail in India seems to be the recognition that the Indian economy faces serious supply-side constraints, particularly in the nutrition-related retail chains. The government would like to improve back-end infrastructure, and ultimately reduce post-harvest losses and other wastage.There is also a general concern, highlighted by the persistence of food inflation, that intermediaries obtain a disproportionate share of value in this chain and farmers receive only 15% of the end consumer price. Now the farmers will be able to get a better price for their products. With easy credit availability through foreign direct investment the situation of farmer suicides in India will improve. With foreign capital flowing into the economy the current inflationary situation will be tamed.One key point is that we must differentiate between the interests of consumers, who pee-pee our population of nearly 115 crore, from the interests of retailers, who may number near five crore. The larger supermarkets, which tend to become regional and national chains, can negotiate prices more aggressively with manufacturers of consumer goods and pass on the benefit to consumers. Undoubtedly, lower prices psychologically propel buyers to spend more than they otherwise would. The resulting growth in private consumption creates jobs. The tax collection of the government will improve as it is mpossible to tax the unorganised retail sector. The revenue collected by the government can be used for infrastructure development. Al so India has had several retailers with deep pockets and access to skills. That they have not been able to swamp the domestic small retailer says something about consumer behaviour and small retails resilience. The argument that the advent of FDI and supermarkets will displace a large number of kirana shops is similar to the argument used during the era of industrial licensing, which was meant to protect small-scale industries.But eventually the inefficiencies and quality standards of the protected small-scale companies become apparent even to socialist politicians and licensing was abolished. Even a modest chain of 200 supermarkets, to be set up all over India in selected towns and cities in the next three years, will require an investment of about Rs 2,000 crore (Rs 20 billion), at the rate of Rs 10 crore (Rs 100 million) per supermarket to cover the infrastructure and working capital. Each supermarket may take 2 or 3 years before it becomes profitable.There is a take chances tha t a few of them may even fail. No Indian entrepreneur will be willing and able to commit this level of investment and undertake the risks involved. That is where the 13 international experience and skills that may come with FDI would provide the confidence and capital. Apart from this, by allowing FDI in retail trade, India will become more unified with regional and global economies in terms of quality standards and consumer expectations. Supermarkets could source several consumer goods from India for wider international markets.India certainly has an advantage of being able to produce several categories of consumer goods, to wit fruits and vegetables, beverages, textiles and garments, gems and jewellery, and leather goods. The advent of FDI in retail sector is bound to pull up the quality standards and costcompetitiveness of Indian producers in all these segments. That will benefit not only the Indian consumer but also open the door for Indian products to enter the wider global m arket. Suggestive measures to eliminate the negative effects of FDI in IndiasRetail sector FDI in the retail sector should be accompanied by policy formulations that encourage the growth of manufacturing sector in India. A growing manufacturing sector can accommodate the people who will loose their jobs due to the adoption of retail in India. FDI should be aggressively promoted in case of relatively less unsanded sectors like entertainment, R etc. Moreover import duty should be imposed to protect domestic production units. Strict labour laws should be imposed to ensure that no management jobs are outsourced.The government should also ensure the local population gets competitive wages and the working environment is proper. Jobs should be close for the poor people. If the language of operation is English then it will act as a hindrance for job creation for the underprivileged people. Hence Hindoo and local languages as a mode of operation should be encouraged. Cooperative societies should be formed for the farmers and other agricultural suppliers to take care of their rights and to ensure that they are getting a fair price from the FDI driven big retail units.Strict corporate governance should be ensured to prevent the acquisition of local business units by foreign firms and to promote investor friendly trade practices. The foreign retail units should be made to divest a certain percentage of their equity in the Indian financial markets. Only strict governance can ensure that the foreign firms adhere to competitive trade practices. Social infrastructure like schools, colleges and hospitals should be developed to promote human capital formation as several studies suggest that such initiatives could enhance the spillover effects of FDI.Furthermore it will help in creating 14 jobs in the high technology sectors and will put India in the global technology scenario. Social security should be ensured through different policy measures like reward plans, employment guarantee programmes and free health care. Strict environmental laws should be enforced to ensure that the foreign firms do not indulge in unsustainable trade practices. Conclusion The growth rate of the Indian economy has been very high in the post reforms era.And hence India has become the cynosure of investment by foreign multinational enterprises. The relationship between FDI and other macro economic variables like growth rate, export, employment and productivity has been found to vary. It has been found that to gain a positive impact of technology spillovers via FDI the host country should achieve a basic minimum human capital threshold. Studies exist both in support and against the positive impact of FDI in the Indian economy. It is self conclusive that the growth of FDI in India is growth resultant and not growth stimulant.The positive impact of FDI has been felt in the high technology sectors like telecommunication and IT. The success story of the telecom sector is a real co nfidence booster in this regard. It is clearly visible that the MNEs are more interested in exploiting the Indian markets rather than investing in capital goods. The retail sector is one of the fastest growing sectors of India. It also employs a huge proportion of the population. Hence any measure regarding this sector such as approval of FDI in the Indian retail sector will have a gigantic impact on Indian economy.FDI in the Indian retail sector will work wonders in terms of controlling inflation, creating new jobs and increasing the efficiency and productivity of the Indian economy. But many believe that it may lead to wide scale unemployment, drainage of capital from the Indian economy and social inequity. Hence FDI in Indias retail sector should be accompanied by stringent policy measures on the part of the government so that the majority of the population can benefit from the positive spillover effects of FDI.Government should encourage FDI in the manufacturing sector along wit h the retail sector to compensate for the loss of jobs that will be created due to the advent of FDI in retail. Government should also build social infrastructure to enhance the human capital formation so that the positive spillover effects of FDI are greatly felt. 15 References FDI in Indias Retail Sector More Bad than Good? By Mohan Guruswamy Kamal Sharma Jeevan Prakash Mohanty Thomas J.Korah Rethinking the linkages between foreign direct investment and development a third world perspective By Shashank P. Kumar Indias Economic Growth and the Role of Foreign Direct Investment By Lakhwinder Singh 2006. Indias FDI inflows Trends and Concepts By K. S. Chalapati Rao & Biswajit Dhar Impact of liberalization on FDI structure in India. By Dr. Gulshan Kumar. Impact of foreign direct investment on Indian economy A sectoral level analysis. By Dr Maathai K. Mathiyazhagan.Foreign Direct Investment in Post-Reform India Likely to Work Wonders for Regional Development? By Peter Nun nenkamp and Rudi Stracke. FDI in India in the 1990s. Trends and issues. By R Nagaraj. Economic Reforms, Foreign Direct Investment and its Economic Effects in India by Chandana Chakraborty Peter Nunnenkamp. March 2006. China and India Any divagation in their FDI performances? By Wenhui Wei. June 2005 Fact sheet on FDI in India by the Planning Commission. Data on GDP growth rate from the Planning Commisiion. Wikipedia. com Planningcommission. nic. in 16