International Business Environment Uni Siegen

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013 IBE Assignments docx,Assignment 1 Brazil 3,Brazil A self made siege 3. Brazil Seeking protection 4,Assignment 2 The solar panel dispute 7. Europe to Investigate Chinese Exports of Solar Panels 7. For Solar Panel Industry a Volley of Trade Cases 9. China Files WTO Case Against Europe 11, Glut of Solar Panels Poses a New Threat to China 11. Assignment 3 Russia and the World Trade organization 14. Russia and Western clubs no thanks Geneva 14,Russia Declares Deal to Join Trade Group 15. Russia and the WTO A chance to get down to business 16. Don t Get Too Excited About Russia s WTO Deal 17,Can the WTO Change Russia 18.
Assignment 4 Regional trade blocs in Europe questions only 21. Assignment 5 Regional trade blocs in America questions only 21. Assignment 6 The EU South Korea free trade agreement 22. EU and South Korea sign free trade deal 22,EU South Korea Free Trade Agreement 23. EU agrees trade deal with South Korea 24,EU and South Korea Sign Trade Pact 25. EU trade pact with South Korea faces criticism 25,EU South Korea FTA alarms Japanese firms 26. France slams unfair competition by Korean carmakers 27. Assignment 7 Argentina now and then 28,Argentina s monetary crisis. Page 2 of 34,013 IBE Assignments docx,ASSIGNMENT 1 BRAZIL.
With the support of the reference textbook CW Hill chap 6 7 and questions texts below you will. present the issues raised by bilateral trade and investment between Brazil and China. 1 What is the pattern of international trade between China and Brazil. a What economic theory ies best explain this situation. b What are the gains from trade to both partners, 2 Why is Brazil nonetheless concerned about this trade pattern. 3 What measures were taken by the Brazilian government to protect domestic manufacturers from. outside Chinese competition What are their pros and cons What are the other options. 4 Why are Chinese foreign direct investment in Brazil and the depreciation of the real Brazilian. currency likely to ease tensions between China and Brazil. Brazil A self made siege,First they went for the currency now for the land. Sep 24th 2011 BRAS LIA from the Economist print edition. On September 15th Guido Mantega Brazil s finance minister announced a 30 point increase in the. country s industrial product tax on cars The amount was startling but the purpose familiar Cars that. are mostly made in Brazil Mexico or the Mercosur trade block will be exempt only importers will. pay Brazilian consumption has been appropriated by imports he said in announcing the tax. According to the National Carmakers Association poor infrastructure and pricey credit and labour. mean that making cars is 60 more expensive in Brazil than in China Local manufacturers have long. relied on high tariffs Imports are gaining market share from 16 of sales in 2009 to 23 this year. The new measure will probably reverse that trend since it will increase the price of imports by a. The government has taken small steps to help local firms In August it cut payroll taxes for a few. labour intensive industries But mostly it has tried to keep out foreign goods and capital Mr Mantega. says Brazil is under siege from imports Last month the government tweaked procurement rules to. favour local products Chinese made army uniforms were an irritant In the past year Mr Mantega. has raised taxes on foreign capital He wants the World Trade Organisation WTO to let countries. levy tariffs on imports from places that artificially weaken their currencies. This muscular approach continues a practice of rewriting rules to favour locals Foreign firms can only. pump oil in the recently discovered pr sal oilfields as junior partners of the state controlled. Petrobras Previously they could bid for all concessions on equal terms Tax breaks will soon make. locally built tablet computers a third cheaper than imports leading Foxconn to set up a Brazilian. plant to make iPads The national development bank BNDES has transformed from a stodgy local. lender into a chooser of national champions Its loan book is now twice as big as the World Bank s. and it funds foreign buying sprees by Brazilian firms. Farmland is being treated as a strategic asset on a par with oil Last year spooked by the idea of. foreign sovereign wealth funds and state owned firms buying up vast tracts the government. resurrected a 1971 law limiting the amount of rural land foreigners can buy It was revived even. Page 3 of 34,013 IBE Assignments docx, though in the 1990s it was deemed incompatible with the new democratic constitution and open. economy The details are under review foreigners may be allowed to buy a bit more without. restriction and still more if the government thinks it is in the national interest But there is no. timetable for passing a new law The Brazilian Rural Society estimates that 15 billion of planned. foreign agriculture investments are being dropped, The strength of the new protectionist mood can be gauged by the government s willingness to. tolerate legal uncertainty and collateral damage It reintroduced the antique land ownership law. despite knowing that its flawed design would almost halt much needed foreign investment Since it. limits the total share of each district that can be owned by foreigners many land registries are. playing it safe and rejecting all foreign purchasers Kory Melby an agricultural consultant advises. foreigners on land purchases in Brazil He says he has heard from furious sellers whose deals are now. as good as garbage, Car importers are mulling a challenge to the tax increase at the WTO At issue is whether a tax that.
can be avoided by producing locally is an import tariff in disguise Their trade group is trying a. different legal tack it says that the government was obliged to give 90 days notice it gave only one. Chinese carmakers building Brazilian factories are lobbying hard They say that they will be unfairly. hit since ramping up production in a new plant takes years Foreigners whose plans are less. advanced may opt for a complete rethink,Brazil Seeking protection. China has become Brazil s biggest economic partner and its most difficult one. Jan 14th 2012 S O PAULO The Economist from the print edition. Opposite Rio de Janeiro s best known shopping mall just before the tunnel that takes drivers to the. beach resorts of Copacabana and Ipanema stands a gleaming new showroom for JAC Motors a. state owned Chinese car maker The prominence of the location is appropriate imported Chinese. cars have suddenly become a visible,presence on Brazil s roads This has. alarmed Brazil s car industry and,President Dilma Rousseff s government. Last month a 30 percentage point tax,increase on cars with less than 65 local. content took effect taking the tax on,some imported models to a punitive.
55 on top of import tariffs,The tax increase is an unusually blatant. act of protectionism It almost certainly, violates the rules of the World Trade Organisation of which Brazil is normally an enthusiastic. supporter It shows how sensitive the government of President Dilma Rousseff is to claims that the. country is suffering de industrialisation, Although the latest figure shows industrial production increasing slightly it has been broadly flat for. more than a year Economic growth has fallen sharply But consumer demand remains robust rising. 4 1 last year says the Central Bank A bigger share of the market is going to importers China in. particular Imports of Chinese cars rose almost fivefold last year the new year has brought. complaints of dumping of Chinese mobile phones and shoes. Page 4 of 34,013 IBE Assignments docx, With extraordinary speed China has become Brazil s most important economic partner total trade. between the two countries has risen 17 fold since 2002 But frictions are increasing almost as fast. Although Brazil enjoys a big overall trade surplus with China most of its exports are of commodities. mainly iron ore soya beans and crude oil It has a big deficit in manufactures see chart. The reasons are not hard to spot In recent years Brazil s. manufacturers have been hobbled by a strong currency. high interest rates high taxes poor infrastructure and a. poorly educated workforce Brazil faces a big competitive. challenge and the relationship with China only dramatises. that says S rgio Amaral a former industry minister who. chairs the Brazil China Business Council,The government s response is a mix of short term.
protectionist measures combined with modest steps, towards more constructive longer term policy changes The. tax rise on cars was announced last September as part of a. new industrial policy The aim was to bully carmakers. without plants in Brazil to hurry up and build them This. seems to be working JAC Motors BMW and Jaguar Land Rover a unit of India s Tata Motors have. all announced plans to build factories in Brazil since the import tax was unveiled. The industrial policy also features an experimental cut in the payroll tax for footwear textile. furniture and software firms But officials are at pains to point out that rather than help specific. industries the main thrust of the new policy is to try to boost competitiveness more generally by. promoting innovation higher education and training. Many Brazilian industrialists distinguish between Chinese and other competitors We don t believe. in protection against efficiency insists Roberto Giannetti of S o Paulo s Federation of Industries. FIESP But he adds that today we can t accept China as a fair trader FIESP says it did not want the. tax increase on imported cars But it complains that China is dumping diverted exports from. depressed Europe Meanwhile Brazilian manufacturers trying to export to China face steep non tariff. barriers on manufactured goods such as obstructive state purchasing agents Rubens Ric pero a. former finance minister thinks that rather than acquiesce in the disappearance of its industries. Brazil will move towards managed trade with China at least in some sectors. Two things may serve to reduce some of the trade tensions The first is that Chinese investment in. Brazil is taking off Until 2009 this amounted to only about 500m But in 2010 investment of 19. billion was announced and 12 7 billion finalised according to calculations by the Brazil China. Business Council making China the largest single foreign investor in Brazil that year Of that sum just. three acquisitions two of oil stakes and one in electricity distribution accounted for more than 11. billion But Chinese firms are also starting to build manufacturing plants in Brazil. The second emollient is that the real has depreciated by 17 against the dollar since its peak in late. July That is partly because investors fled emerging markets but also because of government. intervention in the form of taxes on short term capital inflows At the same time the Central Bank. has taken advantage of the economy s soft patch to cut its benchmark interest rate from 12 5 in. August to 11 With inflation at 6 5 the real interest rate is much lower than at any other time in. the past decade, But industry also wants to see fewer taxes cheaper energy less bureaucracy and better y 3 11 eC04 y 3 s 2 11. Page 5 of 34,013 IBE Assignments docx,013 IBE Assignments docx. ASSIGNMENT 2 THE SOLAR PANEL DISPUTE, With the support of the reference textbook CW Hill chap 6 7 and questions texts below you will. present the issues raised by the current situation of the solar panel industry. 1 What can various international trade theories teach us about. a The structure and internationalisation of the solar panel industry. b The active involvement of governments in promoting their national champions. 2 What are the nature and origins of the dispute between the US the EU and China. 3 What are the trade restriction promotion measures imposed by these countries. 4 What is the role of the World Trade Organisation WTO in this dispute. 5 What if the WTO did not exist, Europe to Investigate Chinese Exports of Solar Panels.
Chinese companies in the solar power industry now have about two thirds of the global. By KEITH BRADSHER New York Times September 5 2012, CHENGDU China Defying Chinese threats of retaliation against European wines and industrial. materials the European Union is preparing to begin on Thursday morning a broad investigation into. whether Chinese companies have been exporting solar panels for less than it costs to make them. The case would be one of the largest trade actions in European history and could lead to steep tariffs. on much of China s 20 billion in annual exports of solar products to Europe four people familiar. with the dispute said Wednesday, The anti dumping case which follows a series of bankruptcies and factory closings by European and. US solar panel manufacturers would broaden what has already become one of the biggest sticking. points in trade relations between China and the United States The US Commerce Department. imposed preliminary anti dumping tariffs in May of at least 31 percent on Chinese solar panels in. addition to preliminary anti subsidy tariffs of 2 9 percent to 4 73 percent that were imposed in. The Chinese government has responded by accusing American producers of polysilicon the main. material used in solar panels of engaging in unfair trade practices and has threatened steep tariffs. on the producers Chinese polysilicon producers have asked the country s Commerce Ministry to. International Business Environment Jean Guillaume DITTER PhD Groupe ESC Dijon Bourgogne Burgundy School of Business SUPPORT DOCUMENT II ASSIGNMENTS Reference textbooks The Economist The New York Times DANIELS John D 2011 International Business Environment and Operations 13th 12th 9th ed Pearson HILL Charles W L 2011 International Business Competing in the Global

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