Before taking big business decisions such as Investments, a manager must evaluate and decide what would maximize profits and be best for the company overall. Expanding business operations into other countries is full of risk. We go into more detail as we compare the two below in five different factors to see which country would be the most appropriate choice. In this report Algeria’s big risks involving limited economic freedom and, strong religious beliefs that affect just about every decision are explored. Along side that, this report looks in to the different risks in the Philippines such as high public debt and limitations to foreign involvement with business. The two countries may have completely different risks however there are some factors that they have in common, these similarities are also indicated. After looking the risks of expanding business in either nation in more depth through report judgement of which state is more acceptable will be easier to conclude.
Potential risks are spilt up into five different categories: economic, political, legal, ethics and religion/language. These risks are looked into in more depth below.
Economic
In Algeria’s economic history, its inflation rate remained well above 4 percent. However it recently dropped below 2 percent. With inflation rates so low consumers will be paying a lot less compared to what companies want, which would result in less profit. Hydrocarbons are the main exports of Algeria, as other sectors are struggling to grow. There is growth happening however to the same extent as the oil industry. Due to this investment is limited and economic risk is high. In the Philippines public debt is 42% percent. With almost half the public being in debt. There will be les...
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In early 1994, Fernando Henrique Cardoso was selected as minister of finance, his primary objective was to develop a new stabilization plan. The plan named Real Plan and it focused mainly on the causes of inflation in country. Th...
De Gaulle and the Achievement of Independence in Algeria Algeria underwent a long struggle to gain independence from France. Its people had seemed to be happy with the colonisation of its country until France was occupied by Germany in the Second World War. This defeat along with others in Vietnam and other colonies proved to the Algerians that France was not the superpower they had once believed it was, and nationalist feelings began to grow. As the nationalist movement grew it became known as the FLN. At first its support was very small, many Algerians cautious of the extremists, they were happy with the peace that they lived with although they were exploited, not many complained.
The Dominican Republic is a country that has been experiencing economic growth for the last two decades. It has shown an average growth rate of 5.4% in its GDP between 1992 and 2014, with a growth rate of 7.0% in 2015, and ending 2016 with a growth rate of 6.0%. The rate of inflation, set by the Central Bank of the Dominican Republic at 4%, is projected to be 2.6% for 2016, 1.4% below the set target (Banco Central, 2016). Notwithstanding the foregoing, unemployment rate stays high at around 14% (Trading Economics, 2016), and the government keeps increasing its external debt as it accumulates fiscal deficit (Ruiz, 2015).
de Gaulle and the Granting of Independence to Algeria Charles de Gaulle played a vital role in the decolonisation of Algeria. There were a number of factors that lead up to independence of Algeria for example the FLN. The FLN were the foundation of the nationalist movement, after seeing France occupied by Germany in the Second World War the Algerians realised that the French were not unbeatable, and set about to over throw the French and reclaim their country, which was occupied by both colons and the French army. In order to try and gain independence the FLN resorted to terrorism starting in 1954, attacking European settlements, their tactics were responded to with a massive show of force by the French Army. They had previously been defeated in Indo-China in 1940, Vietnam in 1954 and the Suez in 1956.
Prior to French imperialist seizure of Algeria, Algeria was a part of the Ottoman Empire. Algeria was governed by the method of indirect rule, and Algeria essentially had freedom. Algerian sea explorers occupied the Mediterranean sea, and European states paid these explorers for the protection of their ships. In the late 18th century, the Ottoman Empire was in decline, which the European states took advantage of, in order to,“challenge corsair domination.” (History, Ottoman Rule) This background information could explain some of the motives for the French imperial conquest of Algeria. For example, terminating the presence of Algerian explorers in the Mediterranean could be applied to the excuse of the "civilising mission."
All the risks must be explained so that the individual is in a situation to make a judgment as to whether or not they wish to go ahead. You need to make sure that the person has full information about:
Around the mid twentieth century, Africa saw an increase in independence movements and decolonization efforts. Even up to the 1960s, some European powers still had a colony in Africa, such as France. In 1954, the National Liberation Front (FLN) in Algeria started a guerrilla campaign to gain independence from France. Much later in the decade, South Africa, who gained their independence from Great Briton in 1930, struggled with a racial system called Apartheid. This was used to suppress the native black population, and through racial segregation, the minority white population came into power. This paper will focus on these two events in African history and how the international community comprehended the reality of the two situations. In the case of the Algerian War of Independence, the different strategies that both the FLN and France used will be analyzed by the impact they had on the United Nations and the international community. Secondly, the use of song and culture in South Africa by the native population will be examined, and in particular the effects the Mayibuye Cultural Ensemble and the Amandla Cultural Ensemble had on international audiences and how useful it was in revealing the state of the population under Apartheid rule. Primarily, the films The Battle of Algiers and Amandla! will be used to provide a context, and thus the films will be portrayed through an international viewpoint.
France invaded Algeria to bring the “blessings of colonization. The main objective for the French invading Algeria was for economic gain and become known as one the most superior and dominant nations of Europe. France changed the lives of many Africans which led to Algerians applying for citizenship in their own country. The Algerians endured many hardships after the French came into the picture. Things did not change for the better, but for the worst. The French “imposed more and higher taxes on Muslims than Europeans” (library of congress). In their country Muslims had to pay more taxes, and even new taxes than they had before the French invaded their country. The Algerians then had to apply for citizenship into their own country. The application was so difficult that many applicants were unable to complete it, and were denied citizenship. The lifestyles of Algerians was changed so much that French tried to make the Muslims forget who they were. Women wore a veil to symbolize their religious practices. The French wanted the women to remove their veil as a way to modernize them when it was only a way for France to do what they wanted. Algerians soon became tired of the mistreatment and ways of the French so they started a revolt for independence.
In the year 2007, China and India ranked first and second respectively in the list of ideal foreign direct investment (FDI) destinations, according to A T Kearney, a global strategic management consulting firm (The Press Trust of India Limited, 2007a). The two nations, because of their similarities in geopolitical, economic and demographic aspects, are often compared with each other. To determine which one is more attractive for businesses to expand to, this essay will examine the business environment of both countries from the following perspectives: political/legal, economic, socio-cultural and technological.
The third risk is the Federal Communication Commission regulation. Any violation with their rules would lead to big consequential losses after being closed down. Therefore, this makes up the largest risk of the three. The company should do all they can to avoid this (Allen, 2000).
Over the years, the Philippines has gone from being one of the richest countries in Asia to being one of the poorest. It has experienced growth and development since World War II. The current administration under President Gloria Macapagal-Arroyo is aiming for a more rapid growth in the coming years. In 2004, the Philippine economy grew by 6.1% surprising everyone. In 2005, the Philippine peso appreciated by 6%, the fastest in the Asian region for that year. At present, the administration is meeting its expected target growth and is continually looking positive for the future.
Operational risks are risks that may occur in the day to day activities, which may involve the process, systems, or people. Strategic risks are those risks involved with strategy. Positioning ones’ company with the right alliances and competing with fare prices will help affect future operational decisions. Compliance risks involve the many legislations and regulations a company must follow. The results could lead to high penalties and a company’s reputation could take a hit. Lastly, financial risks are always being monitored because oil, fuel, and currency rates are constantly fluctuating. By monitoring the fluctuating rates determines fare cost and balancing of the budget. “Like in any other industry, the risk exposure quantifies the amount of loss that might occur from any particular activity” (Genovese,
There are also barriers that limit the potential growth of industries. Such as the lack of adequate infrastructure, the roads and ports are lacking, congested roads with no parking available and electricity shortages. Foreign businesses need to have all this in mind when trying to invest in a country that seems to be very attractive.
In 1973 the first oil shock caused some problems for Brazil. Even though Brazil is very rich in natural resources, it depends on imported oil. The government had to borrow money, but 50% of foreign debt was done by state owned ent...
The Philippines has long been a country with a struggling economy. Ever since World War II, they have struggled to have a steady government and labor system. Independence did not bring any social changes to the country. The hacienda system still persists in the country, where large estates are farmed by sharecroppers. More the half the population are peasants and 20 percent of the population owns 60 percent of the land. Although the sharecropper is supposed to receive half of the harvest, most of the peasant's actual income goes to paying off debts to the landowner. Poverty and conflict strained the industrial growth of the country with many Presidents trying to fix the problems, but failing to do so. Factors that have faced the country are there is almost 9 percent unemployment, and the country suffers from the consequences of a balance of trade deficit. With the resources that the Philippines have, they are capable of pulling themselves out of the economical hole they are in and being up to par with their successful neighboring countries.