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Monday, December 16, 2019

Multinational Corporations

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Effects of Outward Foreign Direct Investment


By Rodney Bohannon


E-mail bohannon@semo.net


The Effects of Foreign Direct Investment on the Home Country


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Foreign Direct Investment (FDI) could be defined as a minimum 10 percent investment of equity or capital by a firm based in one country (home economy) to an enterprise resident in another country (the host economy). The new entity then becomes a multinational enterprise (MNE). Many companies prefer FDI to exporting to gain access to new or larger markets, gain cost advantages in the host country and in response to trade barriers. There has been significant global growth of FDI since 18. Although the United States is the largest home and host country of FDI, outflows have exceeded inflows. Japan in contrast, receives much less inflows than outflows. Cultural and financial management variations between countries do seem to influence the direction of FDI flow. Strategic governmental trade policies in recent years have supported the globalization to a more efficient world economy. Companies often get governmental assistance in attaining international economies of scale and first mover advantages.


The huge inflows of FDI into the United States could be due to the falling value of the dollar in the late 180s and early 10s indicating exchange rates play a significant role in the choice of either horizontal or vertical FDI opportunities over exporting. Honda successfully used vertical FDI in the 180s by establishing high quality operations in the United States. The company utilized U.S. suppliers for machine tools and parts capitalizing on currency exchange rates and local responsiveness. FDI is often preferred over licensing in the high technology or specialized industries, and in many cost sensitive industries. Significant research is necessary to evaluate the advantages of trade vehicles and their effects on the home country. Parent companies lobby for governmental policies that support free trade in order to gain competitive advantages in developing global markets. Many businesses suffer losses for many years focusing on long-term growth potential. This paper will analyze the possible effects of FDI on the home country.


Home country governments influence the ability of firms to invest in foreign countries. The radical view of FDI was popular until the end of the 180s, and equated to the economic domination by companies rather than the economic development of nations. Radical policies were prevalent in communist countries and in Latin America in the 160s-170s. Radical regimes regularly expropriated multi-national companies and prohibited outward FDI. The collapse of communism, and the growth of the free market view marked the beginning of policies encouraging capital and technology transfers. The Smith and Ricardo Market Imperfections approach to FDI, involves maximizing gains and minimizing the costs of FDI. Most countries have adopted policies somewhere between the radical and free market approach, while still imposing some restrictions on outward FDI (Pragmatic nationalism).


There are many potential benefits of FDI on the home country. Improvement in the balance of payments can be realized through increased inward earnings, potential home country exports and foreign expertise that can be transferred back to the home economy. Opportunities to be exposed to new work practices and technology, can aid the home economy in managing and exploiting technology and knowledge-based assets. Higher living standards are also a general long-term benefit of outward FDI, due to the added value characteristics of comparative advantage, and more affordable products and services.


Outward FDI could also detract from a home countrys capital stock. A negative balance of payments is possible if earnings arent realized in an acceptable time period. Also, if FDI is a substitute for direct exports or aimed at serving the home market from a low cost location, the balance of payments could be adversely affected


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Friday, December 13, 2019

Walk Two Moons

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Salamanca Tree Hiddle, Sal for short, is a thirteen-year-old girl who spent most hr thirteen years living in Bybanks, Kentucky and has moved to Euclid, Ohio. During that time, her mother had left without warning. Later, Sal receives letters from her mom saying she has taken a bus to Coeur d Alene. At some point, the letters stopped coming. Therefore, Sal has decided to travel with her grandparents to Lewiston, Idaho to bring her mother back in time for her mothers birthday.


Along the way, Sal tells her grandparents the story of Phoebe Winterbottom. Phoebes mother was in a similar scenario as Sals mother. She has also disappeared without warning. While waiting for her mother to come home, Phoebes family receives messages from a "lunatic". The messages were


Dont judge a man until youve


walked two moons in his moccasins.


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Everyone has his own agenda.


In the course of a lifetime, what does


it matter?


You cant keep the birds of sadness


from flying over your head, but you


can keep them from resting in your hair.


After days of worrying, Phoebes mother comes back with the "lunatic" which turns out to be her son, Mike. Everyone thought she was kidnapped, or murdered, but being proven can be a good thing at times.


When Sal finally reaches Coeur d Alene, her grandmother is bitten by a snake and taken to a hospital. Sal had to take the rest of the trip to Lewiston on her own. Fortunately, Sal knew how to drive. After about ten minutes of driving, she stops to take a break, so she pulls over on the side of the road. While resting, Sal spots skid marks going off the road and into the woods. After looking harder, she realizes that it must have been a bus and goes down to examine the wreckage. She finds nothing but an empty bus with broken windows and torn seats.


A cop spots the car she was driving and asks Sal where the driver is. When she doesnt answer, the cop takes her into his car. During the ride, Sal tells the entire story of what previously happened. Therefore, the cop takes her to her mothers tombstone. He explains to Sal her mother was on that bus and has dies from an accident.


When Sal gets back to the hospital, she finds out her grandmother has died from a stroke a few minutes before she got back. Sal is now over her pain and will remember her mother and her grandmother for all the good times they had.


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Thursday, December 12, 2019

Thomas Jefferson

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Thomas Jefferson is remembered in history not only for the


offices he held, but also for his belief in the natural rights of man


as expressed in the Declaration of Independence and his faith in the


peoples ability to govern themselves. He left an impact on his times Cheap Custom Essays on Thomas Jefferson


equaled by few others in American history. Born on April 1, 174,


Jefferson was the third child in the family and grew up with six


sisters and one brother. Though he opposed slavery, his family


had owned slaves. From his father and his environment he developed an


interest in botany, geology, cartography, and North American


exploration, and from his childhood teacher developed a love for Greek


and Latin. In 1760, at the age of 16, Jefferson entered the College of


William and Mary and studied under William Small and George Wythe.


Through Small, he got his first views of the expansion of science and


of the system of things in which we are placed. Through Small and


Wythe, Jefferson became acquainted with Governor Francis Fauquier.


After finishing college in 176, Jefferson studied law with Wythe and


noticed growing tension between America and Great Britain.


Jefferson was admitted to the bar in 1767. He successfully practiced


law until public service occupied most of his time. At his home in


Shadwell, he designed and supervised the building of his home,


Monticello, on a nearby hill. He was elected to the Virginia House of


Burgesses in 176. Jefferson met Martha Wayles Skelton, a wealthy


widow of , in 1770 and married her in 177. They settled in


Monticello and had one son and five daughters. Only two of his


children, Martha and Mary, survived until maturity. Mrs. Martha


Jefferson died in 178, leaving Thomas to take care of his two


remaining children.


Though not very articulate, Jefferson proved to be an able


writer of laws and resolutions he was very concise and straight to the


point. Jefferson soon became a member in a group which opposed and


took action in the disputes between Britain and the colonies.


Together with other patriots, the group met in the Apollo Room of


Williamsburgs famous Raleigh Tavern in 176 and formed a


nonimportation agreement against Britain, vowing not to pay import


duties imposed by the Townshend Acts. After a period of calmness,


problems faced the colonists again, forcing Jefferson to organize


another nonimportation agreement and calling the colonies together to


protest. He was chosen to represent Albermarle County at the First


Virginia Convention, where delegates were elected to the First


Continental Congress. He became ill and was unable to attend the


meeting, but forwarded a message arguing that the British Parliament


had no control over the colonies. He also mentioned the Saxons who


had settled in England hundred of years before from Germany and how


Parliament had no more right to govern the colonies than the Germans


had to govern the English. Most Virginians saw this as too extreme,


though. His views were printed in a pamphlet called A Summary of the


Rights of British America (1774). Jefferson attended the Second


Virginia Convention in 1775 and was chosen as one of the delegates to


the Second Continental Congress, but before he left for Philadelphia,


he was asked by the Virginia Assembly to reply to Lord Norths message


of peace, proposing that Parliament would not try to tax the


settlers if they would tax themselves. Jeffersons Reply to Lord


North was more moderate that the Summary View. Instead of agreeing


with Lord North, Jefferson insisted that a government had been set up


for the Americans and not for the British.


The Declaration of Independence was primarily written by


Jefferson in June 1776. Congress felt that the Declaration was too


strong and gave Dickinson the responsibility of redrafting the


document, but the new version included much of Jeffersons original


text and ideas. In 177, Jefferson became governor of Virginia,


guiding Virginians through the final years of the Revolutionary War.


As a member of the Second Continental Congress, he drafted a plan for


decimal coinage and composed an ordinance for the Northwest Territory


that formed the foundation for the Ordinance of 1787. In 1785, he


became minister to France. Appointed secretary of state in President


Washingtons Cabinet in 170, Jefferson defended local interests


against Alexander Hamiltons policies and led a group called the


Republicans. He was elected vice-president in 176 and protested the


enactment of the Alien and Sedition Acts by writing The Kentucky


Resolutions.


In 1800, the Republicans nominated Jefferson for president and


Aaron Burr (A Buh. hahaha) for vice-president. Federalists had


nominated John Adams for president and Charles Pinckney for


vice-president. Federalists claimed that Jefferson was a


revolutionary, an anarchist, and an unbeliever. Jefferson won the


presidency by receiving 7 electoral votes (Adams received 65).


Supporters celebrated with bonfires and speeches, only to find out


that Jefferson and Burr received an equal number of electoral votes,


creating a tie and throwing the election to the House of


Representatives.


After 6 ballots, the House declared Jefferson as president.


As did Adams before he, Jefferson faced opposition from his own party


as well as from the Federalists. As mentioned earlier, Jefferson had


an interest in North American exploration. He used his presidential


power to purchase Louisiana from France and gave Meriwither Lewis and


William Clark the opportunity and the responsibility to explore this


vast territory. After their triumphantreturn, the hostile Aaron Burr


engaged in a conspiracy either to establish an independent republic in


the Louisiana Territory or to launch an invasion of Spanish-held


Mexico. Jefferson acted promptly to arrest Burr and brought him to


trial for treason. Burr was acquitted, however. Foreign policy during


his second term was rather unsuccessful. In an effort for the British


to respect the United States neutrality during the Napoleonic Wars by


passing the Embargo Act, he persuaded Congress to stop all trade with


Britain, a move that failed to gain any respect from Britain,


alienated New England (who lived by foreign trade), and shattered the


nations economy. Fifteen months later, he repealed the Embargo Act.


In the final years of his life, Jeffersons major accomplishment was


the founding of the University of Virginia at Charlottesville. He


conceived it, planned it, designed it, and supervised both its


construction and the hiring of the workers. He also hired the first


professors and came up with its first course of study.


Jefferson wished to be remembered by three things, which


consisted of a trilogy of unrelated causes freedom from Britain,


freedom from conscience, and freedom maintained through education. On


the 50th anniversary of the Declaration of Independence, Jefferson


died in Monticello. Though not flawless, given Jeffersons


contributions to the shaping of American society then and how it is


today, it is nearly impossible to find him morally weak and coarse.


He has truly defined true American culture as it is today and has


shaped the lives of many Americans both of his time and our time


alike.


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