FDI Policy – Foreign Direct Investment

FDI Policy – Foreign Direct Investment in the Mining Industry

FDI policy in the mining industry – Foreign Direct Investment (FDI) in economic terms refers to the investment that an investor makes in a foreign country in which the investor has a significant control of the business or company invested in. It applies in many sectors of the economy, including the mining industry. Different governments have varied policies that seek to govern and regulate the application of foreign direct investment in their respective countries. This exploration evaluates the situation of FDI in the mining industries in Nigeria and Argentina. In the analysis, the paper incorporates the Dickens’ framework to evaluate the impact that foreign direct investment has on the mining industry and determine whether the adopted FDI policies in the two countries, that is, Argentina and Nigeria serve in the best interest of the investors.

FDI policies in Mining

It is very important to consider a deeper understanding of the effects that mining activities will have in the country, both social, economic, political and environmental impacts before developing policy to regulate FDI in the mining sector. With the advent of globalization, each country tries as much as possible to engage in trade and allow trade in within their borders. This has led to global competition and the growth of Multinational Enterprises (MNE) and the Transnational Corporations (TNC). Many countries, especially the mineral rich countries have business opportunities within their borders to exploit their resources, but do not have the financial muscle to invest in such explorations. Due to the need for exploitation of the business opportunities within the borders amid limited resources to exploit them, governments enact policies that either encourage or restrict foreign direct investment in their respective countries (Johnson 2005, p. 15).

One aspect of the FDI policies that is very critical is the aspect of quality. The term quality in this regard refers to the foreign direct investment’s ability to enhance the welfare of the host country’s citizens in terms of social, economic, political and environmental wellbeing. Based on this requirement, governments, therefore, have to assess the impact of allowing FDI in the mining industry to take place within their countries and to device mechanism of mitigating the possible negative impacts of FDI policy, for the benefit of the citizens’ welfare (Vazquez-Brust et al. 2013, p. 2).

The impact of mining activities and the subsequent social conflicts depend on an array of factors, including the type of mineral mined. Some minerals when mined leave more devastating effect on the environment than other minerals. Secondly, is the technology, the technology used will determine the extent of destruction the extraction of minerals will have to the environment. Thirdly, the level of involvement by the MNCs in the mining activities will determine the impact it has on the economy. The fourth condition is the strategies of the mining companies; some companies involved in the mining business may want to optimize profit at the expense of the host country’s economic development. Finally, the culture of the host nation and its level of economic development among other conditions may also lead to conflict in the mining activities (Stiglitz 2007, p. 134).

In this respect, therefore, it is incumbent upon both the host nation and the international agencies to collectively evaluate these aspects of conflict and make decisions that are desirable and specific to every mineral extracted and the respective location of extraction. On the same breath, the researchers too have a responsibility to choose a theoretical framework, which encompasses all the conditions necessary for evaluation in order to address all research concerns (Gibson 2006, p. 19).

FDI policy in Argentina

Considering the FDI policies in Argentina, since the year 2001, Argentina has been encouraging huge foreign direct investment, especially in the mining industry. This policy followed the massive reforms that the country made in the mining code. Argentina is a developing economy having a substantial amount of mineral resources. At present, Argentina’s third most significant product for export is Gold. Gold has attracted many investors from outside the country to come and exploit the opportunity.

Nevertheless, since the government put these policies in place in 2001, with the government encouraging foreign direct investment, the mining reforms in Argentina have not fallen short of challenges. In many parts of the country, there has been an uprising resistance to the mining activities. Those who persistently resist FDI policy claim they are doing so based on the social and environmental factors. Today, about six provinces have succumbed to this public pressure to introduce legal bans on open-pit mining within their provincial zones. This public resistance has been growing and rapidly spreading manifesting lack of consensus between the government and the public on the mining policies (Auty 2001, p. 36).  

This conflict between the Multinational enterprises and the public in Argentina is a clear manifestation of varied perception about the quality of FDI policy, especially in the mining sector. Whereas the companies consider boosting the local economy as an improvement of the welfare of the citizens, citizens, on the other hand, consider the effect mining activities have on their environment and the subsequent effects these negative externalities to the environment extend to affect the society. Even though there is a need for the alignment of quality of FDI between the local community, the government and the respective MNEs, it is not easy to reach a common ground on the quality of FDI, which is a relative measure that depends on other aspects of the prevailing welfare standard. This is also because, the perceptions of welfare of the citizens vary from time to time and from individual to individual depending on their expectations, level of knowledge they possess and the overriding cultural values of the community (Ali 2003, p. 70).  

One case in point that supports the gap in perception of citizens about the quality of FDI policy is the Esquel case. In this case, Meridian Gold, which is a Canadian multinational corporation, secured rights to mine a gold deposit in Esquel, a town in the province of Chubut at a cost of investment of over 200 million US dollars. The provincial government approved all the standards and environmental impact assessment reports for a potential mine. The provincial government gave the project a green light terming it as a high quality FDI, being environmentally friendly and useful economic development in the province.

Nevertheless, the community had a completely different perception. According to the community, the project was low quality FDI, dangerous to the environment, economically weak and if implemented would divide the society. The subsequent social unrest that followed compelled the provincial government to organize a referendum in 2002 in which, 80% of the citizens overwhelmingly voted against the mining activities. In the year 2003, as the social pressure continued to pile against mining activities, a judge ruled against any mining project in the province, forcing the Meridian Gold to drop the project (Mutti et al. 2012).

FDI policy in Nigeria

 Similarly, the FDI policy in Nigeria as well has had a long journey. Before the year 1988, the Nigerian government was still skeptical about allowing FDI into Nigeria on grounds that it deemed FDI as a scheme for economic and political control. In 1972, the government outlined a regulatory policy on FDI by establishing the Nigeria Enterprise promotion Decree (NEPD). This declaration was meant to regulate rather than promote the foreign direct investment in Nigeria by limiting foreign equity participation in some sectors to a minimum of 60 percent. By the year 1977, the government again made a declaration further limiting the participation of foreign equity to 40 percent in Nigeria’s business. These declarations implied that Nigeria had a restrictive FDI policy between 1972 and 1995. By the year 1988, the Nigerian government made some structural reforms that initiated the beginning of eliminating the restrictive policy on FDI. The government established the Industrial Development Coordination Committee to act as an agency responsible for the facilitation and the attraction of the flow of foreign investment (UNCTAD 2009, p. 89).

Subsequently, in the year 1995, the government repealed the restrictive NEPD and made a new one known as the Nigerian Investment Promotion Commission, with an aim to encourage foreign investors to come to Nigeria and set up businesses, which they could have 100 percent control. The only condition was to provide relevant documents and the NIPC would approve the application for a business permit within fourteen days. Other declarations followed thereafter promoting and encouraging FDI into Nigeria with some having free regulations on dividends accrued from foreign investment. In addition, the Nigerian government adopted an Export Processing Zone to enable interested investors establish businesses and industries within certain zones (Ayanwale 2007, p. 24).

The FDI friendly policies adopted by the government of Nigeria saw a steady rise in the foreign direct investment flow into Nigeria since 1995 in different sectors. There was also a rise in the foreign direct investment in the mining industry in Nigeria, which followed the putting up for sale of the Nigerian national petroleum corporation together with its branches. The civilian administration that began in 1999 also inspired the deregulation of the oil industry, subsequently opening up the mining sector for more FDI inflows (Albaladejo 2003, p. 43).

The Dickens’ Framework

Having looked at both the Nigerian and Argentina’s policies on FDI, it is evident that both countries have had their challenges in the implementation of these policies. Considering the Dickens’ framework, the manifestation of conflicting interests and perception between citizens and the Multinational in the execution of mining projects is a confirmation of a dynamic collaboration and conflict between TNCs and the government agencies. According to Dickens (2003, p. 275), in the foreign direct investments both the TNCs and the host government need each other.

However, they admit that the ultimate objectives of the host government and the MNEs significantly differ. For example, the aim of a host government is to ensure an increase in the gross domestic product (GDP), while the MNCs principal aim is to maximize profits and increase the value of shareholders in the investment. In his framework, Dickens admits that in the foreign direct investments, multinational enterprises can have both positive and negative impacts on the host country’s social, economic, political and environmental conditions. They may exploit or expand national economies, distort or improve economic development, create employment opportunities or destroy jobs, introduce and spread new technology or prevent the wider use of new technology. The MNEs can also contribute to the destruction of the environment through pollution and destruction of the landscape through mining activities, or participate in the reconstruction and the creation of a sustainable environment through initiatives aimed at sustaining the environment (Dickens 2003, p. 277).    

According to Dickens (2003, p. 278), there are six major areas in the host country’s business environment that MNEs may have an impact on, and these include the area of technology, employment and labor related issues, industrial structure, capital and finance, trade and linkages and the environment. In the area of environment, the impact could be increased soil, water and air pollution, effects on urban settlement, change the extent of natural resources use among other impacts. On the trade and linkages, the effects may include changes in the propensity to export and import resources and changes in the use of local suppliers.

On the employment and labor issues, the effects could include changes in the volume of employment, type of employment in terms of skills and gender, wages and recruitment levels, labor relations and affect the stability of the labor market. On capital and finance, the impact could include changes in the initial inflow of capital, changes in the capital raised locally, profits retained locally and transfer pricing among other impacts. In the industrial structure area, the impact could be effects on the industry concentration, changes in the competitiveness of the local companies and impact on the creation of new local companies. Finally, in the area of technology, the impact could affect the extent of technological transfer, determination of appropriate technology and may lead to additional cost on the host nation (Yakovleva 2005, p. 45).

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Cryptocurrency Financial Operations

Consumer Perception of the Effectiveness of Cryptocurrency in Day To Day Financial Operations – Dissertation

Cryptocurrency has not received that much attention from IS (Information Systems) and as a consequence of this, there is still a gap in the literature with a great potential for research, specifically how the technology fares within the consumer context. Most notably, this dissertation is interested at the traction Cryptocurrency is gaining in today’s economy and how consumers are responding to this innovation. This dissertation will broadly present the evolution of Cryptocurrency, its financial characteristics, and what factors influence its value formation. The focus will then shift at the underlying models that are used both in a practical and academic setting to illustrate the factors that contribute to the acceptance and diffusion of a new technology. The conceptual model will be based on the Innovation Diffusion Theory of Everett Rogers.

Using a specifically designed questionnaire, consumer opinions are quantified in order to ascertain current attitudes and beliefs. Furthermore, after examining specifically designed hypothesis that deal with technology adoption, it was discovered that pivotal factors such as complexity, relative benefits and education play a distinct role in the uptake of Cryptocurrency. This is important because as a new technological instrument, Cryptocurrency opens the door to a number of opportunities for consumers, but only after overcoming a number of challenges and limitations that might prevent it to be accepted.

Cryptocurrency Dissertation
Cryptocurrency Dissertation

Thus, the aim is to investigate the monetary characteristics of a financial innovation in conjunction with the sociological component. This will lead to a better understanding of the constructs that influence the decision to adopt a novel technology by looking at a number of social and psychological factors. An overview of the leading technology adoption theories is provided that will address a number of cognitive, effective and contextual factors. While the study could potentially draw from all these theories, the Innovation Diffusion Theory of Everett Rogers will serve as a foundation, and all the assumptions will be based on this particular model.

Dissertation Objectives

  • What is the consumer response regarding the use of cryptocurrencies in day to day financial operations?
  • The main objective of this dissertation is to determine the level of consumer awareness, perception and degree of utilisation.
  • What are the main factors that influence the consumer intention to adopt cryptocurrencies?

Dissertation Contents

1 – Introduction
Background and Context
The Rationale for the Research
Research Objectives

2 – Literature Review
The Evolution of Cryptocurrency
What Is Cryptocurrency And What Is It Based On?
What Gives Cryptocurrencies Value?
Difference between Cryptocurrency and Traditional FIAT Currency
Cryptocurrency Nomenclature
Advantages and Disadvantages in using Cryptocurrency
Advantages
Disadvantages
Technology Adoption Theories
Hypothesis

3 – Methodology
Research Philosophy
Research Approach
Research Design and Strategy
Sample Size and Population
Ethical Considerations
Data Analysis

4 – Results
Demographics
Familiarity
Adoption Factors

5 – Research Findings and Discussion

6 – Conclusion

References

Appendix
Questionnaire

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Management Accounting Process

Management Accounting Process

Title: Management Accounting Process. Management accounting entails the process of identifying, analyzing, recording, and presentation of informed management information to the different management in entities so as to make informed decisions. The informed decisions are both short and long term ones. The information provided may be wide covering different areas like the sale made in ascertain period and the budgets, the growth in profitability, customer base and payments made. The information being provided relates to the management, is always timely and is useful in making the entity’s decision.

The managerial information is critical in making different strategic decisions, helps in making performance decisions which are involved in creating an area of comparing the profits of the entity with previous periods and coming up with better techniques of improving on the same (Drury, 2013, p.17).The organization is also involved in the creation of risk managing actions on different lines of management whereby this will be through ensuring that the entity ventures in different business through taking risks which may lead to better performance.

The data which is collected by the different management accountants are involved in the process of planning, performance rating and maintaining operational status. Planning enables the different entities to know what to produce and when. This is aided by knowing the amount of the raw materials being needed and the labor force too. The planning process enables the entities to take into consideration performance rating which entails comparing the input rate for the different employees and the resultant profit.

Maintaining the operational status enables the different management to know the cost incurred in the production process and keeping a record of what is occurring in the entity. The costs incurred in the production process can be identifying from the different raw materials and the input in the production process based on the labour force and the time employed. The improvement in the operational status of an entity will hence lead to achievement of different set target which will motivate the different management personnel and the staff too. These goals can only be achieved with good setting of strategies by the management accountants from the initial states and making the different responsible personnel on what to do. The different roles assigned will at the end evaluated and the achievement of the different target evaluated too.

Role of Management Accountants

The traditional management accountants role were mainly geared towards cost control and reduction but the Strategic accountants in the current era are focused on a wide area of activities like ensuring that there is improved competitiveness, identifying new opportunities in different markets and ensuring that the decisions being made are longterm and of benefit to the different organizations (Hilton, 2013,p.39).The roles of the management accountants have hence highly changed in the current period as compared to the past. This has been brought about by the increasing level of technological advancements, increased business sizes and the existence of different opportunities in different areas. The following are the different roles played by the Strategic management accountants in the current world which are quite different from the traditional management accountants.

Keeping a Prospective View in the Entity

The management accounting process management is employed today by the strategic management accountants is of more benefit as compared to the traditional one resulting from the different changes in the global environments. The management accountants today use information which is more broad-based and doesn’t consider only internal information in an organization and is highly prospective. The broad-based information has been made through having a broad information base through the enterprise resource planning systems. The newly implemented systems by the management accountants enable them to be able to keep track of huge amounts of data relating to different parties. The data can be kept for the different customers and suppliers of the entity which will enable them to keep a track of the active and frequent customers and suppliers too. The data enables the different management accountants in ensuring that the make the payments to the different suppliers in time and hence they don’t build up their balances which may lead to the inability to settle them in future.

Keeping this track enables the different suppliers need to be met in time and hence that will also increase and improve on their supply of the different resources to the entities as there will be no fear of losing any amount upon their supply. The customers’ data can have also been kept to track the different purchasing habits and in case some of the customer’s claims of any balances owed to the entity, it can be easily traced (Malmi,2016, p.32).This has enabled the entities to be able to identify the different measures to meet their customers’ needs and overcome competition in their environment.

The use of the prospective data on how the entity may be performing with the different customers and suppliers has enabled the different management accou tan ts to come up with different strategies of maintaining the existing customers and suppliers and acquiring new more ones and hence being able to open up in a wider area which leads to an improvement in their competitiveness.

Management Accounting Create Competitive Focus

The strategic management accountants are involved in creating a competitive focus in their different environments as compared to the manufacturing focus of the tradition alk management accountants. The traditional management accountants were focusing only on the manufacturing process and the monetary value benefit they will get. This made most of the entities produce different products with the concerned of the value they would acquire, while in the new era the management accountants are taking into consideration the value of the different non-financial information in an entity like the predicted sales, the market share, the potential competitiveness.

The environmental concerns which have no direct costs but have a great impact on the public and the future generations are also taken into consideration (Hasniza Haron,2013, p.104).The consideration of the different budgeted sale has enabled different entities performance to be high as they are forced to work on tight schedules to ensure that they meet the different standards. The entities are also involved in ensuring that these deadlines are kept in track and improvements in the quality of the products with far pricing which lead to an improvement in their sales.

Taking into consideration the different aspects of their market share in the market has enabled the different entities to keep information on their performance and hence be able to track on the weak areas where improvement is highly needed. The market share size enables the different entities to borrow more from their competitors in getting to identify the gaps which exist between them and the competitors too. These gaps are core in ensuring that the entities are to out-win the other customers in the wider competitive market. The new strategic management accountants are able to identify the different non-direct cost acts which have an impact on the entity now and in the future.

The management accounts in the current era are involved in ensuring that they meet the different cost acts which are involved in creating good relations with their different stakeholders. These activities are like being involved in the different community development projects and providing incentives to the different customers and suppliers too like providing trips to the customers who made the high purchase in the entity (Malmi, 2016, p.34). These incentives create a good gesture to the different stakeholders and hence the organization can easily be in a line of attracting and maintaining more different customers and stakeholders too.

Management-Accounting-Dissertations
Management-Accounting-Dissertations

Acquiring the different information of stakeholders from the different periodicals, business magazines and newspapers to have enabled the management accountant to be able to keep a track of the potential market opportunities in the different environment. Benchmarking in the different entities which have been performing well in their environments leads to the entity acquiring the different new skills which enable them to be more competitive and hence improve on their performance.

Identifying New Economic Possibilities

The strategic management accountants are involved in learning more of the potential economic possibilities which enable them to create a new marketing area and acquiring more new market. The new possibilities are obtained from the different researches which are carried out by the accountants and the teams in their entities. The strategic management accountants are involved in researching more on the different changes in the accounting and reporting field, the new potential markets and the possibilities of any challenges in the future.

Researching on the different possibilities has hence led to the creation of a wider line of management techniques which are enabling the different organization thrives well in their markets. The researches on the increasing demands of the different products of an entity enable the different manufacturers to come up with more efficient production mechanisms which will not only cut costs but also increase on the quality of the different commodities (Goretzki,2017, p.20). Researches on using the computerized production techniques in different entities has enables the organizations to cut costs on manpower as a lot of data can be easily compiled through the use of computers by only a few individuals.

The cut cost can be employed in different fields like in research or improvement of the production process in the entities. The entities are also able to identify new potential marketing areas in different zones. This will hence lead to more improved production process by the different entities which will mean that there will be a high level of increasing quality to attract more customers. The new marketing areas will also lead to more researches on how to target supply over a wider market scope which will lead to more research in the area of the population growth with demands of the different products. This leads to the opening of different branches by the different organizations in the different parts so as to be able to efficiently supply to their potential customers (Malmi,2016,p.38).

Management Accounting Decision Making

The strategic accountants are involved in creating an environment of tracking the past and ensuring that they focus on improving on the same. This has been enabled through having different lines of sequence and pattern analysis in the different entities. The different entities are hence employing the use of the Target cost techniques in planning their different daily operations. This technique includes the use of patterns in terms of customer growth, growth in sales and profitability.

These are carried out on a monthly basis and the trend of the movements are extrapolated over the other years and the final amounts are compared to the budgeted ones (Puyou,2018, p.13). The use of the sequences and patterns has enabled the different entities in creating a room of potential improvement in performances are the different operation lines are considered while carrying out this.

The strategic accounts considered the possibilities of improving on the past sequences and patterns since the different cycles like increasing more technologically advanced production machines which will cut staff costs. The accountants are also involved in creating an environment in which the different patterns which have been existing can be employed in making decisions on the future performance of the entity which will be through ensuring that the past weakness is sealed. The accountants are also involved in enabling the management know the area where more cost is being incurred in the running of their business and hence come up with new techniques on how to cut on the same while maintaining or improving on their values. The sequence of the decisions being made are all long term and are of great impact on the entity.

Identifying New Opportunities

The strategic management accountants are involved in making decisions of relative positions as compared to the traditional management accountants who were only focused on a single entity. The strategic management accountants are hence involved in creating a decision on different entities which involves coming g up with plans on how to come up with new entities in different areas. Making decisions for a wider scope has hence enabled most of the strategic accountants to come up with new plans of creating a new potential business in different areas.

Decision making on a wider scope leads to the increase in the level of acquiring more new techniques in running the entity which leads to more improvements in the different areas of management (Puyou, 2018 ,p.22) Making decisions on different areas enables the accountants to learn more on different line businesses which are of advantage to the whole entity. this will hence mean that the final decisions will be of great importance as this will lead to more borrowings on the different areas which lead to better performance. Making decisions in the different entities leads to the creation of more opportunities in identifying new business opportunities which will be of great importance to the different operations in the entities.

Creating Linkages With Management Accounting

The management accounts take into consideration of creating different linkages. The creation of linkages is made through creating new market opportunities in the different business areas and also in meeting different accountants globally. There have been different conferences which are held for the different accountants globally which lead to the creation of linkages in sharing the different management techniques by the different accountants. Traditionally, the different accountants were not able to create linkages in their operations as they were overlooking them. The creation of the linkages creates an opportunity for different accounts in acquiring more new skills in learning their different management roles (Janin, 2017, p.16). The creation of the linkages makes the different accounts to be in the line of making new opportunities in their operations and hence be able to know the different changes which have occurred in the new management positions. Creation of linkages in different matters in an entity leads to the creation of more room for embracing different changes in an entity.

The linkages enable different accountants to link different acts to an entitled cause. This will hence create a room for the different accountants to know the cause of different challenges in an entity and also come up with the solutions to the same challenges.

 The management accountants are hence core in running the different entities as they are considered when there is an arising in a challenge in the management in terms of operations and in determining the performance of the entity in future. The strategic management accountants are hence core in ensuring that the different entity operations are running efficiently while ensuring cost-cutting measures and quality of the different products. The accountants are hence core in ensuring that the different set targets are achieving and helping in guiding on how the same should be achieved.

Conclusion

Management accountants are very core in the running of an entity and their contributions towards the performance of an entity should always be appreciated as they are core in guiding on the planning, decision making and implementation of the different processes too.

References

Drury, C. M. (2013). Management and cost accounting. Springer.

Goretzki, L., & Strauss, E. (Eds.). (2017). The Role of the Management Accountant: Local Variations and Global Influences. Routledge.

Hasniza Haron, N., Kamal Abdul Rahman, I., & Smith, M. (2013). Management accounting practices and the turnaround process. Asian Review of Accounting21(2), 100-112.

Hilton, R. W., & Platt, D. E. (2013). Managerial accounting: creating value in a dynamic business environment. McGraw-Hill Education.

Janin, F. (2017). When being a partner means more: The external role of football club management accountants. Management Accounting Research35, 5-19.

Malmi, T. (2016). Managerialist studies in management accounting: 1990–2014. Management Accounting Research31, 31-44.

Maskell, B. H., Baggaley, B., & Grasso, L. (2016). Practical lean accounting: a proven system for measuring and managing the lean enterprise. Productivity Press.

Otley, D. (2016). The contingency theory of management accounting and control: 1980–2014. Management accounting research31, 45-62.

Puyou, F. R. (2018). Systems of secrecy: Confidences and gossip in management accountants’ handling of dual role expectations and MCS limitations. Management Accounting Research40, 15-26.

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Fiscal Policy Effectiveness within the European Union

The issue of monetary and fiscal policy within the EU is strongly debated at this moment in time. This is particularly true with the unconventional monetary policies being put in place for the first time by the European Central Bank such as quantitative easing; as the economy looks to recover from the sovereign debt crisis of 2008. This dissertation seeks to answer the following research questions: (1) Was the lack of a fiscal union a key contributing factor to the crisis? (2) Can a monetary union be effective without a unified fiscal policy to support it? (3) Has there been increased conformity in these key indicators since the crisis?

With these questions in mind, a literature review is undertaken to discuss and analyse the key issues within the European Union and beliefs and approaches regarding fiscal and monetary policy, including the heavily debated topic of whether or not a fiscal union is required. This dissertation also carries out a study of income and corporate taxation rates and expenditure figures for seven key EU countries in order to answer the above research questions.

A clear pattern of convergence is seen in the taxation rates and allows us to conclude that there has been increased conformity in key fiscal indicators since the sovereign debt crisis of 2008. We then link these findings back to the literature review and show that they fit with the beliefs of a large amount of previous academic work in the field. Our findings suggest that there has been increased fiscal conformity since the crisis and also that the lack of fiscal conformity (not necessarily achieved through the presence of a fiscal union) was a key contributing factor to the crisis.

Finally we also find that there can be an improved level of fiscal conformity without a fiscal union within a monetary union however we are unable to say conclusively that a monetary union can be effective without a unified fiscal policy.

This finance dissertation aims to establish the answer to a number of questions that stem from the 2008 European sovereign debt crisis:

  • Was the lack of a fiscal union a key contributing factor to the crisis?
  • Can a monetary union be effective without a unified fiscal policy to support it?
  • Has there been increased conformity in key fiscal indicators since the crisis?
Fiscal Policy EU
Fiscal Policy EU

Fiscal Policy Dissertation Contents

1 – Introduction
Overview of Research Aims and Strategy
Research Motivation
Introducing Monetary and Fiscal Policy
The Maastricht Treaty and the Stability and Growth Pact
Overview of Structure

2 – Literature Review
Can a monetary union be effective without the support of a fiscal union?
A monetary union can be effective without the support of a fiscal union
A monetary union cannot be effective without the support of a fiscal union
Was the lack of fiscal union a key reason behind the 2008 sovereign debt crisis?
The lack of a fiscal union was not a key reason behind the crisis
The lack of a fiscal union was a key reason behind the crisis
Shortcomings in the literature: Has there been increased fiscal conformity since the sovereign debt crisis hit?
Changing Role of the European Central Bank
Summarising the Literature
Anti Fiscal Union
Pro Fiscal Union
Lack of Fiscal Union was not key to Sovereign Debt Crisis
Lack of Fiscal union was key to Sovereign Debt Crisis

3 – Research Methodology
Sample Selection Criteria
Hypotheses Development and Reliability
Data
Top Band Personal Income Tax Rates (%)

4 – Findings
Income Tax Data
Corporate Tax Data
Total Tax Data
Government Expenditure Data
Implications of Findings

5 – Conclusion
Summary of the Results and their Implications
Limitations
Suggested Areas for Future Research

References

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Emerging Markets FDI China Dissertation

Competitive Dynamics in Emerging Markets: Case of China’s FDI Inflows

Emerging Markets: Foreign direct investment (FDI) constitutes one of the main modes of market entry which has been used by a growing number of multinational enterprises (MNEs) to achieve growth. Through FDI firms engage in a special form of capital flows which involves the relocation of capitals, as well as intangible assets such as management skills and production know-how.

As underscored in extant literature on international trade, the benefits of FDI are experienced by both the foreign firm and host country. Put differently, FDI results into a mutually beneficial relationship in which case the foreign firm benefits from a larger market for its products and access to important inputs while the host nation benefits from increased trade and a multiplier effect. While licensing and export provide less risky paths to foreign market entry, research based on the market failure theory attributes the growing preference for FDI to the need by firms to make full gains from their capital.

Emerging Markets FDI Dissertation
Emerging Markets FDI Dissertation

Traditionally, FDI flows have been from developed countries to other developed countries. Countries such as the United States, United Kingdom and Japan have in particular been major players in inward and outward FDI. In year 2000, US received 22% of the world’s FDI while countries in the EU cumulatively received an estimated 49% of the FDI. This trend marked by the flow of FDI from developed to developed countries is however changing. The last decade has in particular been marked by a trend in which FDI flows are from developed countries to emerging countries such as the BRIC (Brazil, Russia, India and China).

In terms of competitiveness in FDI and international trade in general, emerging countries have for long been considered as uncompetitive. Developed nations have traditionally crowded out developing countries in international trade due to several barriers. As an example, it is until recently that developing countries have become more open to international trade and their exports have mainly comprised of primary products. They also face a host of barriers revolving around national policy, credit constraints and technological limitations among others.

Despite these barriers emerging countries have in the last decade emerged as equally competitive players at the international front. Academics have even pointed out that emerging markets are in the current times more competitive than developed markets. The researchers justify this assertion by pointing out that an analysis of corporate profitability in both economies shows significantly different results. In the developing world, the dynamics of competition are such that both the short-term and long-term persistence in profitability of organisations is lower than that of the developed world. To a large extent, this is a clear indicator that competition in the developing world is more intense. While focusing on inward FDI, the present research determines why China has become one of the most competitive emerging markets in this form of international trade.

Dissertation Objectives

  • To determine the level of competitiveness in attracting FDI among emerging markets
  • To investigate the specific factors influencing China’s competitiveness in attracting FDI
  • To examine the extent to which factors influencing China’s competitiveness in attracting FDI can be maintained in the long term
  • To highlight the various ways through which competitiveness of China’s FDI can be measured

Dissertation Contents

1 – Introduction
Study background
Research problem
Research question
Research objectives
Significance of the study
Overview of research methodology
Structure of the study

2 – Literature Review
Factors influencing competitiveness in inward FDI among emerging economies
Theoretical perspectives on determinants of FDI
Specific factors in emerging countries that increase a country’s competitiveness in attracting FDI inflows
Challenges in effectively competing for FDI in emerging markets

3 – Research Methodology
Data source and Research design
Research approach
Research strategy
Data collection techniques and process
Data analysis techniques
Quality of the study findings
Ethical considerations and limitations

4 – Results, Findings and Discussions
Factors influencing China’s competitiveness in attracting FDI
Sustainability of China’s FDI attractiveness
Discussion of study findings

5 – Conclusions and Recommendations
Competitiveness of emerging markets in attracting FDI
Factors influencing China’s competitiveness in attracting FDI
The sustainability of factors influencing China’s competitiveness in attracting FDI
Study recommendations

References

View This Dissertation Here: FDI China Dissertation

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