Choose one topic then write three pages paper. Please use simple words and grammar.
a. Why did the Russian economy perform well during the 2001-2013 period? Why did it run into trouble in 2014? How has Vladimir Putin been able to accumulate so much political power in Russia? At this point, how secure do you think Putin’s hold on power is? Given what is happening in Russia today, what do you think will happen to foreign direct investment in Russia going forward? Is this a country where a Western enterprise would want to do business? Please document all of your findings and conclusions using footnotes and bibliography.
b. Walmart is one of the world’s most successful retailers. However, at the current time the company is being threatened by Amazon. What can the company do to compete successfully against Amazon? What have they done so far to compete with Amazon? Is the new strategy successful?
c. One of the great success stories in international trade in recent years has been the strong growth of India’s pharmaceutical industry. How might (a) U.S. pharmaceutical companies and (b) U.S. consumers benefit from the rise of the Indian pharmaceutical industry? Who might have lost out as a result of the Indian pharmaceutical industry? Do the benefits from trade with the Indian pharmaceutical sector outweigh the losses? Please document all of your findings and conclusions using footnotes and bibliography.
d. By 2010 China accounted for 97 percent of global rare earth metal production crucial in the manufacture of a wide range of high-technology products including wind turbines, iPhones, industrial magnets, and the batteries used in hybrid cars. However, also in 2010 China imposed tight quotas on the exports of rare earth metals. Which groups benefited most from imposing an export quota on rare earth metals? Did it give the Chinese domestic manufacturers a significant cost advantage? Did it result in dramatically increased quality and environmental standards? Do you think countries such as Australia, Canada, and the United States should reconsider their environmental restrictions on the production of rare earth metals? The restrictions imposed by China on rare earth metals has resulted in some companies (e.g., Toyota, Renault, Tesla) starting to look for alternatives. They plan to use parts that do not include rare earth metals. Is this a good solution? Please document all of your findings and conclusions using footnotes and bibliography.
e. During the first half of the 2000s, the Japanese yen was relatively weak against the U.S. dollar. This was a boon for Japan’s export-led economy. However, for the next four years after 2008 the yen strengthened relentlessly against the dollar hitting an all-time record high of 75.31 yen to the dollar on October 31, 2011. The weakness of the yen during the early to mid 2000s was due to the so-called carry trade. This financial strategy involved borrowing in Japanese yen, where interest rates were close to zero, and investing the loans in higher
yielding assets, typically U.S. treasury bonds. Because the investment strategy involved selling borrowed yen to purchase dollar-denominated assets, it drove the value of the yen lower. However, after the financial crisis of 2007-2008, massive bank infusion of American dollars into banks resulted in lower interest rates thereby nullifying the carry trade causing the Japanese Yen to rise causing a Japanese financial crisis. Why did the yen carry trade work during the early 2000s? What drove an increase in the value of the yen between 2008 and 2011? Why did the policy of Japan’s Abe government to purchase government securities help drive down the value of the yen? Explain how that worked. Do you think the Japanese government is engaging in currency manipulation? If so, what should other nations do about this? Who in Japan benefits from devaluation of the yen, and who does it hurt? Please document all of your findings and conclusions using footnotes and bibliography.
f. In October 2006, the Industrial and Commercial Bank of China, or ICBC, successfully completed the world’s largest initial public offering (IPO), raising some $21 billion. The ICBC listing attracted considerable interest from foreign investors, who saw it as a way to invest in the Chinese economy. ICBC has a nationwide bank network of more than 18,000 branches, the largest in the nation. Why did ICBC feel it was necessary to issue equity in markets outside mainland China? What are the advantages of such a move? Can you see any disadvantages? What was the attraction of the ICBC listing for foreign investors. What do you think are the risks for a foreigner associated with investing in ICBC? Please document all of your findings and conclusions using footnotes and bibliography.
g. Amazon released the first Kindle in 2007 at a price of $399. Guiding the project was an understanding that if the Kindle was going to be successful, it had to have that magic combination of low price, high functionality, high reliability, and design elegance. What used to be basically pure e-reader in the Amazon Kindle has now become a competitor to multiuse products such as Apple’s iPad, and what used to be computer replacement-focused products such as the iPad have now ventured into the e-reader territory in a more obvious way. What criteria drove Amazon’s decision of where to produce the different components that go into the Kindle? Were these the right criteria. Why or why not? Should these be the same criteria today with a strong focus on the tablet market as opposed to just the e-reader market? If Amazon had decided to design and manufacture the Kindle and all its components in the United States, what do you think the consequences would have been for Amazon? What about the Fire HDX (and any subsequent “Kindle” products)? Please document all of your findings and conclusions using footnotes and bibliography.
h. The quality of life in specific markets sometimes is impacted by the country’s financial and fiscal policies. As such, the Global Financial Stability Report is a semi-annual report published by the International Capital Markets division of the International Monetary Fund (IMF). The report provides a regular assessment of global financial markets. As such, locate and download the latest report (within the last two years) to give an overview of the most important issues under discussion. Discuss the major emerging global financial issues
identified in the report. Please document all of your findings and conclusions using footnotes and bibliography.