Foreign Direct Investment - 1674 Words

Introduction: Foreign Direct Investment, or FDI, is a type of investment that involves the injection of foreign funds into an enterprise that operates in a different country of origin from the investor† (economy watch). The determinants of foreign direct investment may be the socio-economic, financial and the cultural factors which usually have positive and negative effect on the foreign direct investment. The risk is attached to the determinants of foreign direct investment. This paper examines the major determinants of foreign direct investment exchange rate, market size, political instability, infrastructure, openness to market and military rule. Data constraints in Pakistan some determinants consider to be the inefficient. Regardless†¦show more content†¦The main determinants are openness to trade and political stability in the study. The results show that FDI stimulates the economic growth but growth does not attract the foreign direct investment. In fact the openness trade and political stability are the significant determinants. This study is done Aqeel and Nishat (2004).They analysis FDI flow is well documented in literature for the both developing and developed countries .The main determinants are used income level, infrastructure political and macro stability. The co-integration and error correction technique is applied to check the stationarity. The data is collected annual from 1961—2003 to SBP from the assets and liabilities and foreign investment and exchange rate is from international finance statistic published by Federal Bereau Statistics. The study considers exchange rate, tax rate, variables if they explain the inflow of foreign direct investment. Also included are wages and GDP to check the test the relative demand for labor and market size. All variables indicated correct signs and are statistically significant except for wage rate. The study clearly emphasizes the role of these policy variables in attracting FDI and determining its growth in both short and long run in Pakistan. The study shows that FDI has positive impact in Pakistan. One of the studies is done by the Dar et al (2003). This study summaries the long term relationship between FDI and Economic Growth. It givesShow MoreRelatedForeign Direct Investment Theories And Foreign Investment1950 Words   |  8 PagesREPORT FOREIGN DIRECT INVESTMENT THEORIES AND FOREIGN INVESTMENT IN LITHUANIA MODULE LEADER: CHUNXIA JIANG STUDENT NAME: MANTVYDAS NARUSEVICIUS STUDENT NUMBER: M00509351 22/04/2016 CONTENTS PAGE PAGE 3. Foreign direct investment PAGE 3. Foreign direct investment theories PAGE 4. Cost and benefits of FDI for the host country PAGE 5-6-7. FDI in Lithuania according to World Bank data PAGE 8. References Foreign direct investment (FDI)Read MoreForeign Direct Investment Essay621 Words   |  3 Pagesï » ¿Foreign Direct Investment Definition: An investment made by a company or entity based in one country, into a company or entity based in another country. Foreign direct investment has many forms. Broadly, foreign direct investment includes mergers and acquisitions, building new facilities, reinvesting profits earned from overseas operations and intra-company loans. Advantages of Foreign Direct Investment: 1- Develop Country: One of the primary benefits of foreign direct investment is thatRead MoreForeign Direct Investment Into Pakistan977 Words   |  4 PagesTitle: Causes of Foreign direct investment into Pakistan. Aim and objectives: The dissertation topic will focus on the importance of foreign direct investment into Pakistan’s Economy and will also focus around the causes of foreign direct investment. The report will look into three different perspectives such as, the effects on FDI pre and post 9/11, investment in different sectors of industry and the importance of investing countries in terms of contributing towards developing Pakistan’s infrastructureRead MoreResearch On Foreign Direct Investment1242 Words   |  5 Pagesdecided to introduce a contingent set of initiatives corresponding to â€Å"Foreign Direct Investment† in Ethiopia. There has been a considerable rise of FDI opportunities recently within Ethiopia. The following document will discuss; cultural, political, as well as economic trends and patterns that influenced our outlook on FDI into Ethiopia. Moreover, this memo will analyze the potential risks and or barriers to entry, foreign firms could encounter when attempting FDI to Ethiopia. Lastly, our teamRead MoreForeign Direct Investment ( Fdi )1557 Words   |  7 PagesNations came together and eliminated trade barriers, which enabled Corporation’s to begin foreign direct investment (FDI) in other nations. This resulted, corporations transform into Multinational Enterprises. The movie â€Å"The Grand Seduction† shows the powerful impact FDI’s can have for an economy. This essay will analyze the movie and the following statement â€Å"The attraction and retention of foreign direct investment (FDI) is a complex and multifaceted activity for a number of different stakeholders†Read MoreForeign Direct Investment Essay530 Words   |  3 PagesShenkar and Luo (2007) define foreign direct investment as the â€Å"direct investment in real or physical assets such factories and facilities in a foreign country (Shenkar and Luo, 2007 pp 553). There are two types of FDI; vertical or horizontal which may have benefits both the hom e and host countries. No doubt there are many benefits of FDI however, literatures often time highlight the ramifications of FDI on the host countries. Herman, Chisholm and Leavell (2004) underline the social impact on theRead MoreForeign Direct Investment ( Fdi ) Essay1041 Words   |  5 PagesForeign Direct Investment (FDI) is defined as an investment made by individuals in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company. The key feature of foreign direct investment is that it is an investment that establishes either a majority of control or an influence on the decision making of a business. Based on the graph belowRead MoreIntroduction Of A Foreign Direct Investment2094 Words   |  9 PagesRECOMMENDATIONS ïÆ'Ëœ CONCLUSION ïÆ'Ëœ REFRENCES INTRODUCTION A Foreign Direct Investment is basically an ownership in a business in a country by a totally different country. Foreign Direct Investment (FDI) plays a very important role in the development of a nation. All countries need FDI’s but in the case of underdeveloped or developing nations FDI is one of the most important aspect, as this kind of investment is required to help sustain the growth of the economy. This inturn helps improvingRead MoreForeign Direct Investment ( Fdi )5695 Words   |  23 PagesCHAPTER 1 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Foreign Direct Investment (FDI) is one of the biggest tools for international economic integrations. Firms view overseas expansion as a necessary step to achieve a more effective access in the markets where they presently have low representation as stated by Tyu T. and Zhang M. M. (2007). In order to take advantage of the aggregate economies offered by the blooming innovative environment in that particular region, firms of course will investRead MoreForeign Direct Investment ( Fdi )5393 Words   |  22 PagesDefinition of Foreign Direct Investment (FDI) Foreign Direct Investment, popularly known by its acronym FDI, is a particular type of foreign capital, as opposed to domestic investment. In general, FDI is refers as a long-term investment by a foreign direct investor in an enterprise resident in an economy other than that in which the foreign direct investor is based. According to Fu (2000), he argues that it does not include loan capital provided by international organizations, foreign government,

Hobbes and Absolute Sovereignty Essay - 3649 Words

Hobbes and Absolute Sovereignty Introduction A state is sovereign when its magistrate owes allegiance to no superior power, and he or she is supreme within the legal order of the state. It may be assumed that in every human society where there is a system of law there is also to be found, latent beneath the variety of political forms, in a democracy as much as in a absolute monarchy, a simple relationship between subjects rendering habitual obedience, and a sovereign who renders obedience to none. This vertical structure, of sovereign and subjects, according to this theory, is analogous to the backbone of a man. The structure constitutes an essential part of any human society which possesses a system of law, as the backbone†¦show more content†¦The mechanical analogy, contra the traditional organic and theological concepts of the state, became for Hobbes both apposite and inevitable. Civic conflict was leading to disaggregation of the contemporary 17th century English state, demonstrating to him that the sanctions whic h held it together were neither eternal nor natural. [4, 5, 6]. Hobbes was primarily intent on the creation of an impartial, theoretical science of government, stressing the priority of truth above the delights of rhetoric or the utility of propaganda [6]. He focuses his attention on basic principles rather than changing institutions or forms of government. Leviathan can therefore be seen as a political creature or persona and that creature can exhibit aristocratic, republican, monarchical or, even, democratic features [8]. Thomas Hobbes and his denial of the doctrine of right reason. Hobbess first argument in favour of the doctrine of absolute sovereignty is essentially the argument against right reason described as the vision and the heart of Hobbess moral and political philosophy [9]. His doctrine of absolute sovereignty is derived primarily from the negation of this doctrine, and almost everything that we can discover in his notion of sovereignty can be found in his negation of this argument. An argument that leads to his conclusion that it is essential for the sovereign to be absolute, and to possess effective enforcement or coercive powers. Hobbes is principallyShow MoreRelatedThe Single Most Important Argument As Regards To Hobbes’1327 Words   |  6 Pagesimportant argument as regards to Hobbes’ conception of human nature is that of its pessimism, as it is this pessimistic view that brings Hobbes to his conclusion that the state of nature is as objectionable as his view describes it to us. Hobbes argues that every man is characterised by his view that, despite a few who, through mutual recognition or admiration, he believes to be his equal, he is endowed most liberally with the faculty of wisdom. In this way, contends Hobbes, all men are equal in thatRead MoreThe State of Nature: Thomas Hobbes of Malmesbury1691 Words   |  7 Pagesreasons as to why the absolute authority of the sovereign in Hobbes’s state of nature and social contract is justified. The three reasons Hobbes uses are: the argument from contract, the argument from authorisation and the argument from weakness of mixed or divided sovereignty. Firstly, I shall explain Hobbes’s understanding of human nature and the natural condition of humanity which causes the emergence of the social contract. I shall then analyse each argument for the absolute authority of the sovereignRead MoreHobbes on Institutional Sovereignty1088 Words   |  5 Pages A right, or power, institutional sovereignty is said to have addresses protest against the sovereign. Hobbes makes extremely clear that actions of the instituted sovereign are wholly protected. This particularly lucid in the following: Thirdly, because the major part hath by consenting voices declared a sovereign, he that dissented mu8st now consent with the rest . . . or else be justly destroyed by the rest. For if he voluntarily entered into the congregation of them that were assembled, heRead MoreThomas Hobbes And The Civil War1620 Words   |  7 Pages Thomas Hobbes wrote during the time of the English Civil War and these events were heavily reflected within his writing. This time demonstrated a tremendous amount of political instability within the state and the violent war caused tension and unrest amongst the citizens. Hobbes advocates for the need for an all-powerful sovereign in order to ensure peace and security within society. Hobbes argues that humans were naturally drawn into a state of war and the only way to escape this conflict wasRead MoreThomas Hobbes Biography And View On Justice1447 Words   |  6 PagesThomas Hobbes Introduction Thomas Hobbes sees human from a mechanistic view that life is simply the motions of the organism believes that a state of nature in human kind will eventually become a state of war of all against all. He attempted to justify the absolute power of the sovereign on the basis of a hypothetical social contract in which individuals seek to protect themselves from one another by agreeing to obey the sovereign in all matters. The key element in Hobbes’s view on human natureRead MoreThomas Hobbes and His Contribution to the Constitution Essay608 Words   |  3 PagesThomas Hobbes Thomas Hobbes was an important figure in thee contribution to the Constitution. He was born on April 5th 1588 in Westport, Wiltshire, England and died December 4th 1679 in Hardwick, England. Hobbes’ uncle sponsored his education at Oxford University. In 1604, Hobbes’ father also named Thomas Hobbes, left his family and never returned to be seen again. Hobbes’ also had three siblings; two brothers and a sister. He wrote three major writings; De corpore (published eventually in 1655)Read MoreA State Of Nature Can Be Defined As A Condition1103 Words   |  5 Pageseveryone else that you have this amount of rights, as it would be acceptable to you that another individual has a certain amount of rights. If everyone were to give up their personal rights, then the power obtained would have to be invested, according to Hobbes, in the hands of a single person. Once the sovereign has obtained the rights of every individual, they will have accumulated enough power and au thority to carry out the wishes of the population as a whole. This is an agreement has been created betweenRead MoreThomas Hobbes And The Commonwealth1044 Words   |  5 PagesThomas Hobbes contains a rather straightforward message pertaining to the commonwealth. Based on this quote, it can be derived that submission pertains to giving up or rather transferring our rights to the sovereign. Hobbes states earlier about the generation of a commonwealth, which he states, â€Å"I authorize and give up my right of governing myself, to this man, or to this assembly of men, on this condition that thou give up thy right to him, and authorize all his actions in like manner† (Hobbes, PartRead MoreSimilarities Between Machiavelli And Hobbes1205 Words   |  5 Pagesmen have pondered over ideas similar to this; how much power is too much power? And how much power should a man employ to hold an ideal government? This governmental â€Å"ideal† is what Niccolo Machiavelli’s The Prince strived to achieve and how Tomas Hobbes’ governmental steps in The Leviathan resulted. During the dramatic changes of the Italian Renaissance, The Prince was Machiavelli’s attempt to restore strong centralized power that Italy currently lacked. Furthermore, in response to the fear andRead MoreThomas Hobbes and John Locke Essay698 Words   |  3 Pages Hobbes and Locke both abandoned the thought of the divine right of monarchy. Both did not agree with the fact that the ruler or assembly would have all power over its citizens. So basically they were against Absolutism and their views were that of rebels in their time period. Theses two philosophers both held similar ideas but also have conflicting ideas pertaining to the citizens social contract with their rulers, Natural Condition of Mankind, and sovereignty.

GlaxoSmithKline Is More Concerned With Development-Free Samples

Question: How To The GlaxoSmithKline Is More Concerned With Development? Answer: Introduction Distribution strategies refer to the measures that the company has in place to ensure that products reach the intended recipient. There are several means through which a company can do this. The particular measure or measures taken are dependent on the nature of business the organization is in, its size, and the overall strategy. In some instances, the company may follow a direct distribution strategy, whereby its products are sold to the end consumer directly. In other instances, the company chooses to use an agent, who then sells to the end consumer. Other strategies have longer chains, with several players. There may be a wholesaler, agent, retailer, among others, all determined to find the easiest way that the product can be marketed. Pharmaceuticals are ultimately responsible for whichever distribution channel they use. However, the payers influence the exact nature of these channels. The company, such as GSK must consider distributors, controllers, payers, regulators and dispensers in its decision makers. Distribution Strategies GSK uses several means to ensure that its products reach the market. The first among these is the strategy which involves selling directly to hospitals. The distribution mechanism ensures that the medicines can then be distributed as prescription drugs to patients through the respective hospitals pharmacy. The importance of this channel is that it has a wider coverage, on top of being an excellent way of accessing a large size of the market (McCain, 2012). The second distribution model involves using super agents. These agents stock GSK products on their premises. They are responsible for selling the drugs on behalf of the company, using whichever strategy they use. However, any agreement requires the super agent to be responsible and ethical in supply, so that the drugs are not used for the wrong purpose. The super agent is so called because they do not supply to the end consumer. Instead, they in turn supply to hospitals and agents who distribute to the end consumer. This type of distribution has its advantages and challenges. While the company is able to sell more drugs due to the ability of the super agent to reach more customers (GSK, 2012; Weitz Jap, 1995). Another facet of the distribution strategy that the organization has adopted involves sales agents. The sales agents are involved in contracting the different buyers, including agents, super agents, hospitals, clinics and drug stores. They sell the wares to these parties, for onwards distribution to the end consumer or other distributors in the chain. The difference between the super agent and the sales person is that while the sales person is employed by the company, the super agent is a different entity. It is cheaper to sell the drugs through a salesperson than through the agent, but the sales volumes are considerably less (Gupta, Mandhav Ojha, 2015). The company also distributes drugs through drug stores. In a conventional sense, the drug store is an agent who does not sell the drug to other sellers, but instead dispenses them to the end consumer. The end consumer may be accompanied with a prescription note by a physician where necessary. In other cases, the drugs do not require a prescription note. The company sells most of its - over the counter medicine in using this channel (Gupta, Mandhav Ojha, 2015). The different facets of this distribution strategy are illustrated in the flowchart below. To support the distribution channels described above, the company has created a positive relationship with several institutions in the country. This factor enables them to get firsthand information about the preferences of different parties and the changing trends. Furthermore, it allows them to access past records to determine the common challenges connected to their products. Therefore, the organization uses its distribution channels not only to distribute products, but also to obtain valuable market intelligence (Black et al, 2002). Not included in this model is the export segment of the GSK Australian market. GSKs business has a significant export component. The company exports drugs to several countries in Asia and beyond. The company may either be shipped to GSK branches in these countries, or directly to agents or other intermediaries. Apart from this, the channel followed is similar to what has been discussed above under other distribution models (Gupta, Mandhav Ojha, 2015; GSK, 2017). Distribution analysis The Australian market that GSK controls is large. It is among the major players in the country, controlling up to 5% of the Australian market (DIIS, 2017). The country is also large geographically. This means that it is not practical to have only one distribution model, since it will face serious limitations. The company is therefore justified in seeking to sell its products through several channels as it does (Black et al, 2002). It may sometimes be impractical to sell the product directly to customers. GSK deals in drugs which are extremely harmful if not consumed through the right directions, which means a physicians prescription. This means that the drugs that the company sells must be sold in a controlled way, which the different channels of distribution provide. More importantly, the company does not deal directly with the end user. The middlemen therefore in this case perform an essential role of ensuring ethical practice (Tse Yim, 2008). The size of the company is also an important consideration in determining the distribution channels it will use. For smaller companies, many distribution models are likely to result in operational inefficiencies, which will result in the organization losing money. GSK is a large company present in more than 150 countries, however. This means that it is well placed to employ these distribution models since it has the financial ability and operational capacity to support them. In short, it has both the products needed, and the people to sell the products to (Tse Yim, 2008). Outcome The results of this approach have been that GSKs Australian business has grown well over the last few years, mirroring the overall growth in the Australian pharmaceutical industry. GSKs growth has been a product of expanding markets, as well as improved operational and distribution efficiencies. Ultimately, the most important element of its success is how well it is able to get its product to the end user. It is also dependent on the decisions of important players such as physicians and governments, and how well GSK is able to influence thme. This refers to how well the company is able to collect market intelligence form its distribution channels. Conclusion The distribution channels that a company chooses are dependent on several factors. This includes size of market, size of company, size of its market in terms of geography, and the nature of the product. For this reason, GSK has found a hybrid model of distribution, which has worked well for them. References Black, N, eat al. (). Modeling consumer choice of distribution channels: an illustration from financial services. Journal of Bank Marketing, 20(4), 161-173. Department of Industry, Innovation and Science. (2014). Australian Pharmaceuticals Industry Data Card 2014. retrieved 06 04 2017, from https://industry.gov.au/industry/IndustrySectors/PharmaceuticalsandHealthTechnologies/Pharmaceuticals/Pages/PharmaceuticalsIndustryDataCard.aspx GSK. (2017). About Us. Retrieved 06 04 2017, from https://au.gsk.com/en-au/about-us/. Gupta, S., Mandhav, S., Ojha, A. (2015). Review on Pharma Marketing. European Journal of Pharmaceutical and Medical Research, 2(4), 174-184. McCAIN, J. (2012). Part 1: Distribution models for biologics and other specialty pharmaceutical products. Biotechnology Healthcare, 9(2), 813. Tse, A., Yim, F. (2008). Factors Affecting the Choice of Channels. Journal of International Consumer Marketing, 14 (2-3), 137-152. Weitz, B., Jap, S. (1995). relationship marketing and distribution channels. Journal of the Academy of Marketing Science, 23(4), 305-320.