Thursday, May 16, 2019
Choose any two of the following questions and submit a report on your Essay
Choose any ii of the following questions and submit a report on your findings with special reference to G20 summit - Essay pillowcaseSome of the drivers that positively influence globalization include the growth of industrialization in other countries of the innovation which reduces costs, tariff and working capital. Decreasing government trade barriers have increased foreign direct investments ofttimes faster than the origination outputs (Suk, Seung and Kenneth 2006). For these reasons major corporations are engaged in expansionary activities to outsource their operations abroad. For example pass over is an American based company. It is one of the big three motor companies in the US and used to be the source of livelihood for a significant portion of the US population. However, with the increase in global financial support opportunities, carrefour has diversified its products to sell its motor vehicles in Europe and Asia. As Europe has opened its consumer markets to the worl d Ford has capitalized on the ready market to sell its completely assembled cars in collaboration with local companies. However, as the global finance environment in parts of Asia improved and opened up to Western investors, Ford has gradually shifted production of automobiles in low cost country like in China. Investment in China not only reduces cost of operations and productionsGlobal financing has thus become an alpha source for world trade and incentive for foreign investment as it allows multinational companies to increase shareholders wealth. However, in that location are risks associated with global investing. Unlike local investment, global investment is subject to political, financial and regulatory risks. In countries where political turmoil is apparent like those in France, India, China and Indonesia, investment in these countries pose cracking threats to exchange controls, confiscation of assets and changing corporate policies. Similarly, financial risks include the fluctuating exchange rates, tax laws, liaison rates and inflation rates as well as balance of payments. Legal risks like differences in legal system, overlapping jurisdiction and
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