Performing and Visual Arts Standardization Essay

Performing and Visual Arts Standardization - Essay Example In Wikipedia Encyclopedia "The visual arts are art forms that focus on the creation of which are primarily visual in nature, such as Painting, Photography, Print making and film making". Those that involve three dimensional objects such as sculpture and architecture are called plastic arts. In Wikipedia Encyclopedia "The performing arts are those forms of art which differ from the plastic arts insofar as the former uses the artist's own body, face and presents as a medium and latter uses material such as clay metal or paint". The teachers of arts should be well read and well informed on arts and artists. They should do research on arts from the past and the present so as to make them thorough with the subject. They should also try to participate in art criticism based on reliable information and clear criteria. The Art teachers should shape the student's ability to think. They should encourage their students to observe arts, and create and use their imaginations. They should make the students organize their thoughts and feelings. The teachers of arts should teach the students to respond in predictable and unpredictable ways.

Internationalization of Asian Multinational Enterprises

Internationalization of Asian Multinational Enterprises INTRODUCTION Background Internationalization can be defined as the desire to be a member of the international society by satisfying a certain standard, or strengthening the influence of a nation on other nations. It becomes the process where multinational enterprise (MNE) engaging, it is very important for these companies to penetrate international market if they want to be accepted and remain successful. (Sreenivasan Jayashree and Sahal Ali Al-Marwai). The internationalization process helps MNEs in maturate their operation in foreign market and enhance their competitive position abroad. According to Hedman (1993), three main alternatives for distributing the enterprises product exist, that is, indirect export, direct export and alternatives to export. When distributing indirectly, the different distribution activities are assigned to one or several intermediaries in the home market. When distributing directly, the producer itself conducts the distribution activities, such as distribution to a foreign importer, which in his turn forward the products to another intermediary or the end customer. (Molnar, 1990) the third alternative, alternatives to export, can take place through, for instance, own production in the target country, or licensing (Hedman, 1993). The rapid changes in todays business world call for new models of internationalization (Fillis, 2001; Meyer and Gelbuda, 2006), especially to be able to capture the early phase of internationalization in a better manner than the traditional models (Johanson and Vahlne, 2003). In contemporary research, Coviello and McAuley (1999), in line with Leonidou and Katsikeas (1996), have pointed at three theory directions that are preferable for studying internationalization, namely Foreign Direct Investment (FDI)-theories (a.k.a., the theory of the Multinational Firm), Stage models and Network theory. Even though these are different theory directions, they are seen to be complementary views where a combination of views is preferred since it is difficult to capture the internationalization concept using only one theoretical framework (Bell et al., 2003; BjÃÆ' ¶rkman and Forsgren, 2000; Coviello and Munro, 1997; Meyer and Skak, 2002). Network theory is increasingly being combined with stage theory in order to understand and explain the rapid internationalization of the firm (in Bell et al., 2003; Johanson and Vahlne, 1990, 2003; Meyer and Skak, 2002). The process of internationalization has been the subject of widespread theoretical and empirical research (for example, Johanson and Wiedersheim-Paul 1975; Johanson and Vahlne 1977; Bilkey 1978; Cavusgil 1980; Turnbull 1987; Welch and Loustarinen 1988) and finds a general acceptance in the literature (Bradley 1991; Buckley and Ghauri 1993; Leonidou and Katsikeas 1996). The internationalization process is described as a gradual development taking place in distinct stages (Melin 1992). Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Within the last decades, the business world has changed drastically through globalization and internationalization à ¢Ã¢â€š ¬Ã¢â‚¬Å"creating a new and fierce business environment for companies. We can now see a third wave of internationalization of firms in which companies domiciled in mature Western markets establish themselves on a large scale in emerging markets such as Central and Eastern Europe (CEE), Russia, China and India (Jansson, 2007). A recent phenomena of firm from Asian capital exporting countries were internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). They started the internationalizing activities and investing and setting up operation in other countries since mid-1980. Research interest which focus on these Asian enterprises and their direct investment activities arise in recent years (Ting, 1985; Ulagado et al., 1994; Yeung 1994, 1997). Foreign direct investment (FDI) started on the early 1980s. According to studies done by Lall, 1983;Well, 1983; Kumar and McLeod, 1981; Khan, 1986; Monkiewicz, 1986; Aggarwal and Agmon,1990; Tolentino, 1993, FDI of Third World multinational enterprises (TWMNEs), slightly different with the traditional MNEs from the western developed countries in term of their characteristic. The growth of East Asia (World Bank, 1993) in late 1980 and early 1990, has increased intra-regional direct investment. The directed investment process from Japan , followed by Korea, Taiwan, Hong Kong and Singapore and the activities transferring from one level of economies to another in Malaysia, Indonesia and Thailand has been depicted as wild flying geese pattern. (Toh and Low,1994; Guisinger, 1991). As a result, these Asian capital exporting countries firm internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). Problem Statement During these extremely competitive times, the international business environment is one that is normally full of immense uncertainty, volatility as well as a high rate of failure when it comes to international expansion The research on the nature, organization and operations of these emerging Asian international and multinational enterprises are limited. This is because research in international business and trade has been dependent largely upon economistic and western-centric theories developed predominantly in industrial and institutional economics (Buckley and Casson, 1985; Dunning, 1988, 1993). A study shown internationalization is the crucial factor for a firm to grow and develop economically and technologically (Syed Zamberi Ahmad and Fariza Hashim, 2007). Hence, it is very important for multinational companies to conduct a comprehensive examination of the various important factors that could influence the type of strategy that is to be selected for international market entry. 1.3 Objectives This research is dedicated to all local Malaysian companies who are looking at ways and means to internationalize their operations to a foreign market and would be of tremendous assistance to them in determining the correct strategic path and improve the understanding of the Asian MNEs characteristic. 1.4 Research Question According to the problem statement above, the author has formulated some question to meet the research objective. The questions are: What are the key characteristics and success of their foreign ventures? What are the motives for internationalization? What are the entry strategies? What are the strategic advantages and traits? Research Contribution Government: Through this study, government can carry out some government policy to lead more firm success in their international proses in expanding their business. Firms: This study provides information to provide better understand characteristic and strategy for the purpose of internationalization which can increase the net profit of the firm. Economic: This study enable economist to better understand how development of economic on a country can help MNEs in their internationalization process. 1.6 Summary This study proposal consists 3 chapters. Chapter 1 provides the overview of the recent phenomena of internationalization, the problem statement, objectives, and question. Chapter 2 displays literature review by past research, followed by concept and theories, and research framework. Chapter 3 describes the research methodology, sampling technique, data collection, data analysis and research planning that use to analysis the finding in Chapter 4. CHAPTER 2 LITERATURE REVIEW 2.1 Introduction This chapter reviews the past studies about the concept and theory which included internationalization process, entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. After that it follows by the research framework. 2.2 Concept and Theory 2.2.1 Internationalization processes Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Research on the exports of mainly North American companies has reached similar results (Bilkey, 1978; Cavusgil, 1980; Czinkota, 1982; Reid, 1981). Such process theories are highly useful especially when studying international 66 H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65à ¢Ã¢â€š ¬Ã¢â‚¬Å"77 business in CEE. Learning processe s are essential since the company needs to adapt to an emerging and different business context, such as exists in the CEE (Meyer and Gelbuda, 2006). As noted by Sharma and Blomstermo (2003b) a basic assumption in internationalization process theory is that knowledge accumulation is continuous and dependent upon the duration of foreign operations. The longer firms have been involved in foreign operations, the more knowledge they accumulate about such operations. There is a relationship between knowledge accumulation and risk so that the more knowledge a firm has, the less uncertain they perceive the foreign market to be. Firms that lack knowledge about foreign markets even tend to overestimate risks. This corresponds to what Jansson (1989) found concerning establishment processes in a regional perspective, namely that the pace of investments in Southeast Asian countries accelerated, the more experienced the firms became in an area. Johanson and Vahlne (1990) stated that Uppsala model of internationalization indicated firms reveal an evolutionary process in internationalizing through a series of evolutionary stage. 2.2.2 Entry nodes and entry processes Firms entering emerging markets face several barriers according to Meyer (2001). These barriers include a lack of information, unclear regulations and corruption. According to traditional research on internationalization processes, market entries either take place through intermediaries such as agents or distributors or through a firms own representative in the exporting/importing country, mainly a subsidiary. In terms of research in this area, scholars have found that relationships are at the core of the internationalization process (Axelsson and Johanson, 1992; Ford, 2002; HÃÆ' ¥kansson, 1982; HÃÆ' ¥kansson and Snehota, 1995; Hammarkvist et al., 1982; Jansson, 1994, 2007; Johanson and Vahlne, 2003; MajkgÃÆ' ¥rd and Sharma, 1998). According to the network approach to internationalization, entries into local market networks take place through establishing relationships. The international marketing and purchasing of products and know-how through a direct exporter/importer network means that a vertical network in the exporting region (e.g. a suppliers supplier network) is indirectly connected to another vertical network in the importing region (e.g. a buyers buyer network). This large vertical network will, in turn, be embedded in other regional and national networks, such as a financial network (Jansson, 2006, 2007). From a network perspective, establishment points in foreign market networks are defined as entry nodes. There are various routes into these networks, or nodes by which a firm can enter a network. Entries through trade either take place H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65à ¢Ã¢â€š ¬Ã¢â‚¬Å"77 67 directly with customers or indirectly through intermediaries. Direct relationships, dyads, can be established between buyer and seller in the respective countries. Indirect relationships, triads, involve an outside party or other type of entry node, usually an intermediary such as an agent, dealer or distributor. Dyads can also be established through the entry mode FDI (a subsidiary in the importing country). Entry processes take place by building relationships to form networks in foreign markets. Irrespective of entry node, the development of international buyer/seller relationships tends to follow a five stage pattern (Ford, 1980, 2002; Ford et al., 1998). Each stage of the entry process can be described by a number of relationship factors, such as how the experience, commitment and adaptations of the parties increase across the stages and how the distance and uncertainty between them are reduced across the stages. The first stage includes the taking-up of marketing/purchasing activities before a formal relationship begins. The next three stages show how direct buyerà ¢Ã¢â€š ¬Ã¢â‚¬Å"seller relationships within networks are established: from their beginning and to their deepening. Experience indicates the amount of experience the respective parties have with each other. They will gauge their partners commitment to the relationship, e.g. by the willingness to make adaptations. Distance is multifaceted and it can be split into social, cultural, technological, time and geographic distance. Uncertainty deals with the fact that at the initial stages, it is difficult to assess the potential rewards and costs of the relationship. In the fifth and final stage, the relationship is extensively institutionalized and habitual, with commitment being taken for granted. Based on Terpstra and Sarathy, 1991; and Baek, 2003, joint ventures with host governments and local partners in the host country were among the preferred entry strategies for international operational operation. Petronas in South Africa entered into a commercial alliance with Engen in 1996 as a strategic partner. The acquisition was to enable both companies to implement a shared growth strategy in Africa and the Indian Ocean Rim, while allowing the development of potential operational synergies between the two business entities (Padayachee and Valodia, 2002). 2.2.3 Eclectic Explanation Eclectic Paradigm is a proverbial known explanation of international production. Dunnings (1977, 1988, 1993, 1995). Eclectic Paradigm stated that the extent and pattern of international production is determined by: 1) Ownership advantages (for example, proprietary technology, products, expertise and skill) 2) Internalization advantages (for example, transaction costs reduction, maximize economic return), and 3) Location advantages of host and home countries These OLI (Ownership Location Internalization) variables listed above explain the reason internationalization occurs but overlook the dynamic process of internationalization. The Eclectic paradigm is provided by the Investment Development Path (Dunning, 1981, 1986) with a dynamic dimension, and relates the net outward investment of a country to its stage of economic development. Five stages of IDP ( Investment Development Path) Stage 1: At low level of economic development, there is little inward or outward investments. Stage 2: Inward investment becomes attractive, especially in import substitution projects as the country develops. Some outward investment may take place in neighborly countries which at lower stages of development. Most developing countries with some outward investments are at this stage. Stage 3: With economic development move forward, net inward investment declines while outward investment increases (relative to inward investment). Increasing of outward investment may take place in countries at lower IDP stages in order to overcome cost disadvantages in labour intensive industries and also to seek markets or strategic assets. Singapore, Taiwan and South Korea are said to be at this stage. Stage 4: As production being multinationalized, net outward investment becomes positive. Most developed countries are at this stage. Stage 5: The shift from advantages based more on factor endownment to those based on internalizing international market convergent outward and inward investment flows. Empirical research on Third World (including Asian) multinationals has given general support to the IDP concept (Dunning, 1986; Tolentino, 1993; Dunning Narula, 1996; Lall, 1996). Dunning and Narula (1996) acknowledge that country factors may influence the IDP pattern of a country, such as resource endownment, home market size, industrialization strategy, government policy, and the organization of economic activities. TWMNEs were smaller than their counterparts from developed countries and have limited number of overseas operations. The competitive advantages of TWMNEs were based on cost advantages (particularly labour cost) and greater responsiveness to host country needs which is different from western MNEs. They served market niches which were not covered by the traditional MNEs and so were not in direct competition with them. The major motivation for these FDI was protecting export markets rather than exploiting rent from proprietary technological know-how (or other ownership spe cific advantages characteristic of western MNEs) explained in theories, such as the eclectic paradigm of Dunning (1977, 1995). TWMNEs possessed first or second generation labour-intensive technologies and produced standardized products mainly for the domestic host country market which at stage 4 of IDP. Wells (1983) presupposes a pecking order hypothesis to suggest that the TWMNEs technologies could fill the technological gap between the advanced technology of developed country MNEs and the rudimentary technology of less developed countries (LDCs) in a pecking down order. Lall (1983) emphasized the flexibility and adaptability of TWMNEs technologies to be more suitable or appropriate to LDC situations. 2.2.4 Foreign Direct Investment (FDI) It may seem surprising that there is significant number of foreign direct investments by some firms from developing countries because it is usually credited to more developed countries. A number of studies indicate that FDI flows not only from the industrialized or well-developed countries, as well as developing countries. Scholars such as Lecraw (1981, 1993), Wells (1977, 1981), Lall (1983a, and 1983b), Kumar and Lim (1984), Ulgado et. al., (1994) are only some of those who have carried out empirical studies and researched FDI flows from developing country firms in the 1970s and 1980s. Comparisons between the nature of international expansion of firms from developing countries and the nature of those corporations that originated from developed countries are made in most of these studies (Dunning, 1986; Vernon-Wortzel and Wortzel, 1988). In general, it has been depicted that the competitive advantages of MNCs from developed country are derived from advanced proprietary technology or other superior resources (Yeung, 1994). While ability to reduce costs of imported technology through de-scaled manufacturing or smaller scale of production is focus of the competitive advantage from developing country MNCs were derived from their This is a process whereby technologies from industrialised countries are adapted to suit smaller markets by reducing scale, replacing machinery with manual labour, and relying on local inputs (Ramamurti, 2004). Outward direct investment from developing countries started to grow rapidly to a sizeable magnitude during the mid-1980. This became the main tool of developing country multinationals in demanding that their constituent firms prepare for the drastically international competition that they were about to face(Kumar, 1996, 1997). The emergence of new technologies in the late 1980s somehow decreases the interest in outward direct investment from developing countries subsided (Kumar, 1996; Oh et. al., 1998; Pananond and Zeithaml, 1998; van Hoesel, 1999). Pananond and Zeithaml(1998) and van Hoesel(1999) recounted that aggregate analyses of developing country MNEs conducted at the industry level get attention from scholars and yielded interesting results by the early 1990s. They concluded that there were marked differences in characteristics between developing country MNEs in the 1980s and 1990s. Scholars posited that these two groups of MNEs belonged to two different waves of development i n term of their respective historical backgrounds, nature of businesses, extent of the role of government in operations and transactions, geographical direction, and mode of internationalisation activity. MNEs in the 1980s are more concerned with cost competitiveness with their competitors (van Hoesel, 1999). In contrast, developing country MNEs in the 1990s placed greater emphasis on the development and reset business strategies due to the dynamic changing patterns of world business structure brought about by trade liberalisation and economic globalisation (Dunning et al., 1997). Besides this, they put more effort on technological competence as the source of competitive advantage (Pananond and Zeithmal, 1998). They noted that notwithstanding these differences, there existed several significant interrelated points of convergence between the two groups (Dunning et al., 1997; van Hoesel, 1999). 2.1.5 Regional and global internationalization processes In analyzing the early internationalization steps of smaller and less experienced companies, the internationalization process model by Johanson and Vahlne (1977) is regarded as a highly useful tool. In internationalization research, few studies have been conducted on higher level internationalization where companies are established in several countries and have fully-owned businesses (Meyer and Gelbuda, 2006). The more countries in a region a firm exports to, the more extensive is the regional internationalization process. The more regions a firm exports to, the more global is the internationalization process. New stages of internationalization are established when a firm extends its business from one major type of market to another or from one type of foreign environment to another. The main factor behind these stages is experiential knowledge, meaning that firms gradually build a knowledge base through operating in foreign markets. They learn from past experience by transforming this experience to useful knowledge. There are three types of such knowledge (Eriksson et al., 1997). Internationalization knowledge about how to perform international operations is an expression of a firms current stock of knowledge in the form of its resources and capabilities. The more novel the foreign environment, the more difficult it is for the firm to apply its current stock of knowledge to that foreign market. This means that there is a gap between a firms present internationalization knowledge and the knowledge the company has about how to do business in the specific foreign market, i.e. concerning its network experiential knowledge and institutional knowledge (Blomstermo et al., 2004). Based on a firms experiential knowledge process, internationalization processes are often divided into different degrees of internationalization. Johanson and Mattsson (1991) discuss the internationalization process for firms with various degrees of internationalization and propose that the process is mainly valid during the early stages of a firms internationalization: inexperienced firms tend to follow a traditionally slow and gradual pattern, while the internationalization of a more experienced company is less slow and gradual. 2.2.6 Uppsala model The Uppsala model (Johanson Weidersheim-Paul, 1975; Johanson Vahlne, 1977) provides an explanation of the dynamic process of internationalization of individual firms. The Uppsala model emphasize on the importance of gaining knowledge and experience about the characteristics of foreign markets along the internationalisation path, and helps MNEs reduced risks and levels of uncertainty in unfamiliar foreign environments before investing (Wiedersheim-Paul et al., 1978). The successive steps of increasing highly commitment are based on knowledge acquisition. Foreign activities started with export to foreign country through independent representative or agent, after that establish sales subsidiary and finally start production in the host country. The internationalization of the firm across many foreign markets was particularly related to psychic distance which included differences in language, education, business practices, culture and industrial development. Firstly, enter foreign market which closer in term of psychic distance, followed by subsequent entries in markets with greater psychic distances. Same goes to entry mode of foreign market. The incremental expansion of market commitment meant that the initial entry was typically some form of low commitment mode and followed by progressively higher levels of commitment. Obviously, commitment of the level of ownership in different markets was correlated with their psychic distance. The Uppsala model had received general support in empirical research (Welch and Loustarinen, 1988; Davidson, 1980, 1983; Erramilli et al., 1999) and its largely intuitive nature and evolutionary learning perspective made it attractive as an explanatory model. A related view regards learning was that TWMNEs built up their advantages through the accumulation of technology and skills. Lall (1983) emphasized on the localization and adaptation of technology to suit local markets by TWMNEs. Tolentino (1993) focused in term of the accumulation of technological competence in the expansion of firms from developing countries which was consistent with the resource-based view of building competitive advantage in strategic management. The accumulation of knowledge and competence especially its knowledge of developing markets and not so much its technology by the CP Group in Thailand was the key to its internationalization. There are also differences between the CP Group and Western MNEs (Pananond and Zeithaml, 1998). Mathews (2002, 2006) postulated that emerging firms could foster internationalization via leverage of their contractual linkages with other foreign firms to acquire resources and learning new capabilities. He indicated that this explanati on complemented the OLI framework and could be used to explain the rise of such latecomer firms which he dubbed as Dragon multinationals. 2.2.7 Asian Context Yeung (1999); Zutshi Gibbons (1989) portrayed that western theories on internationalization have neglect the active role played by the state and overlooked the institutional or contextual perspective in the internationalization of Asian. Asians state always plays a direct and active role in the internationalization of its MNEs. For example, the Singapore government played a key and direct role in the promotion of outward FDI (e.g., growth triangles, industrial parks in foreign countries), particularly from the early 1990s in its regionalization programs (Pang, 1994; Tan, 1995; ESCAP/UNCTAD, 1997). Incentives and other programs for instance tax incentives, finance schemes, training also provided to foster the rapid development of local entrepreneurship in the regionalization efforts. In Malaysia, the government took a very active role in promoting the internationalization of Malaysian firms. Investment promotion missions abroad were organized and often lead by the Prime Minister. The government provided incentives including tax abatement in 1991 and subsequently full tax exemption in 1995 for income earned overseas and remitted back to Malaysia. An overseas investment guarantee program was instituted. Malaysian government instructed firms to defer non-essential overseas investment in order to reduce the impact of the effects of the 1997 Asian financial crisis. In the Asian context, the state has played a very active and direct role in promoting the internationalization of its national firms. This is much different with the western context, where the role of the state is benign and indirect. 2.3 Summary This chapter first discussed the internationalization process in terms of entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. The following chapter discusses the research method, survey development, and sample selection CHAPTER 3 METHODOLOGY 3.1 Introduction This chapter provides an overview of the research method. It starts by explaining the appropriateness of the research method. Then discusses the research design which consists of seven steps: questionnaire development, literature review, proposal, data collection, data analysis, discussion and conclusion, and write-up. Next the data collection and sample selection is discussed with reasons for each of the decisions involved. The next section discusses the statistical methods. Lastly, a Gantt chart will be use to estimate the times use in each activity. 3.2 Sampling Technique A case study approach will be using in this paper. It tends to provide in depth information and intimate details about the particular case being studied. This approach was used to collect comprehensive and holistic data (Eisenhardt, 1989; Internationalization Strategies of Emerging Asian MNEs 491 Yin, 1994) about firms that have internationalized their operations over time. The focus here is on MNEs from Malaysia (a fast developing country). Case studies mean that the research investigates few objects in many respects (Wiedersheim-Paul, Eriksson, 1991). Case studies are most suitable if you like to get a detailed understanding about different kinds of process (Lekvall Wahlbin, 1987). The researches may, for instance, choose a line of business and an enterprise, and conduct an in depth investigation (Wiedersheim-Paul, Eriksson, 1991). Yin (1994) states, that when the form of the questions is why and how, the case study strategy is most likely to be appropriate. The research problem I have investigated was how the internationalisation process of a MNEs when entering to foreign market can be characterised , which was divided into four research questions. 3.3 Data Collection 3.3.1 Secondary data Eriksson Wiedersheim-Paul (1997) points out that secondary data is data, which already has been collected by someone else, for another purpose. Statistics, and reports issued by governments , trade associations, and so on, are some sources of secondary data (Chisnall, 1997). The annual report and the enterprises homepage, are another sources of secondary data (Wiedersheim-Paul, Eriksson, 1991). Secondary data research should always be carried out before doing any field survey (Chisnall, 1991). When I had defined the research area, I started to search for relevant literature. The databases that I have used to find relevant literature are EBSCOhost, Science Direct, Libris, ABI/INFORM, and Helecon. The keywords used when searching the databases were international business, Malaysian MNEs, internationalization, strategies, mode of entry. These words were combined in different ways, to maximise the number of hits. 3.3.2 Primary d Internationalization of Asian Multinational Enterprises Internationalization of Asian Multinational Enterprises INTRODUCTION Background Internationalization can be defined as the desire to be a member of the international society by satisfying a certain standard, or strengthening the influence of a nation on other nations. It becomes the process where multinational enterprise (MNE) engaging, it is very important for these companies to penetrate international market if they want to be accepted and remain successful. (Sreenivasan Jayashree and Sahal Ali Al-Marwai). The internationalization process helps MNEs in maturate their operation in foreign market and enhance their competitive position abroad. According to Hedman (1993), three main alternatives for distributing the enterprises product exist, that is, indirect export, direct export and alternatives to export. When distributing indirectly, the different distribution activities are assigned to one or several intermediaries in the home market. When distributing directly, the producer itself conducts the distribution activities, such as distribution to a foreign importer, which in his turn forward the products to another intermediary or the end customer. (Molnar, 1990) the third alternative, alternatives to export, can take place through, for instance, own production in the target country, or licensing (Hedman, 1993). The rapid changes in todays business world call for new models of internationalization (Fillis, 2001; Meyer and Gelbuda, 2006), especially to be able to capture the early phase of internationalization in a better manner than the traditional models (Johanson and Vahlne, 2003). In contemporary research, Coviello and McAuley (1999), in line with Leonidou and Katsikeas (1996), have pointed at three theory directions that are preferable for studying internationalization, namely Foreign Direct Investment (FDI)-theories (a.k.a., the theory of the Multinational Firm), Stage models and Network theory. Even though these are different theory directions, they are seen to be complementary views where a combination of views is preferred since it is difficult to capture the internationalization concept using only one theoretical framework (Bell et al., 2003; BjÃÆ' ¶rkman and Forsgren, 2000; Coviello and Munro, 1997; Meyer and Skak, 2002). Network theory is increasingly being combined with stage theory in order to understand and explain the rapid internationalization of the firm (in Bell et al., 2003; Johanson and Vahlne, 1990, 2003; Meyer and Skak, 2002). The process of internationalization has been the subject of widespread theoretical and empirical research (for example, Johanson and Wiedersheim-Paul 1975; Johanson and Vahlne 1977; Bilkey 1978; Cavusgil 1980; Turnbull 1987; Welch and Loustarinen 1988) and finds a general acceptance in the literature (Bradley 1991; Buckley and Ghauri 1993; Leonidou and Katsikeas 1996). The internationalization process is described as a gradual development taking place in distinct stages (Melin 1992). Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Within the last decades, the business world has changed drastically through globalization and internationalization à ¢Ã¢â€š ¬Ã¢â‚¬Å"creating a new and fierce business environment for companies. We can now see a third wave of internationalization of firms in which companies domiciled in mature Western markets establish themselves on a large scale in emerging markets such as Central and Eastern Europe (CEE), Russia, China and India (Jansson, 2007). A recent phenomena of firm from Asian capital exporting countries were internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). They started the internationalizing activities and investing and setting up operation in other countries since mid-1980. Research interest which focus on these Asian enterprises and their direct investment activities arise in recent years (Ting, 1985; Ulagado et al., 1994; Yeung 1994, 1997). Foreign direct investment (FDI) started on the early 1980s. According to studies done by Lall, 1983;Well, 1983; Kumar and McLeod, 1981; Khan, 1986; Monkiewicz, 1986; Aggarwal and Agmon,1990; Tolentino, 1993, FDI of Third World multinational enterprises (TWMNEs), slightly different with the traditional MNEs from the western developed countries in term of their characteristic. The growth of East Asia (World Bank, 1993) in late 1980 and early 1990, has increased intra-regional direct investment. The directed investment process from Japan , followed by Korea, Taiwan, Hong Kong and Singapore and the activities transferring from one level of economies to another in Malaysia, Indonesia and Thailand has been depicted as wild flying geese pattern. (Toh and Low,1994; Guisinger, 1991). As a result, these Asian capital exporting countries firm internationalizing and multinationalizing their business activities and have emerged or are emerging as Asian multinational enterprises (World Bank, 1993). Problem Statement During these extremely competitive times, the international business environment is one that is normally full of immense uncertainty, volatility as well as a high rate of failure when it comes to international expansion The research on the nature, organization and operations of these emerging Asian international and multinational enterprises are limited. This is because research in international business and trade has been dependent largely upon economistic and western-centric theories developed predominantly in industrial and institutional economics (Buckley and Casson, 1985; Dunning, 1988, 1993). A study shown internationalization is the crucial factor for a firm to grow and develop economically and technologically (Syed Zamberi Ahmad and Fariza Hashim, 2007). Hence, it is very important for multinational companies to conduct a comprehensive examination of the various important factors that could influence the type of strategy that is to be selected for international market entry. 1.3 Objectives This research is dedicated to all local Malaysian companies who are looking at ways and means to internationalize their operations to a foreign market and would be of tremendous assistance to them in determining the correct strategic path and improve the understanding of the Asian MNEs characteristic. 1.4 Research Question According to the problem statement above, the author has formulated some question to meet the research objective. The questions are: What are the key characteristics and success of their foreign ventures? What are the motives for internationalization? What are the entry strategies? What are the strategic advantages and traits? Research Contribution Government: Through this study, government can carry out some government policy to lead more firm success in their international proses in expanding their business. Firms: This study provides information to provide better understand characteristic and strategy for the purpose of internationalization which can increase the net profit of the firm. Economic: This study enable economist to better understand how development of economic on a country can help MNEs in their internationalization process. 1.6 Summary This study proposal consists 3 chapters. Chapter 1 provides the overview of the recent phenomena of internationalization, the problem statement, objectives, and question. Chapter 2 displays literature review by past research, followed by concept and theories, and research framework. Chapter 3 describes the research methodology, sampling technique, data collection, data analysis and research planning that use to analysis the finding in Chapter 4. CHAPTER 2 LITERATURE REVIEW 2.1 Introduction This chapter reviews the past studies about the concept and theory which included internationalization process, entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. After that it follows by the research framework. 2.2 Concept and Theory 2.2.1 Internationalization processes Internationalization processes in emerging markets, as in international markets in general, take place in a stepwise manner (Jansson, 2007). Companies commit themselves through a gradual learning process. Learning is incremental and takes place by doing. Firms learn about doing business abroad, for example, learning about the conditions in particular markets. Companies tend first to establish themselves in geographically and culturally proximate markets and increase their commitment, starting with agents, and passing through sales companies to manufacturing companies (Johanson and Vahlne, 1977; Johanson and Wiedersheim-Paul, 1975). Research on the exports of mainly North American companies has reached similar results (Bilkey, 1978; Cavusgil, 1980; Czinkota, 1982; Reid, 1981). Such process theories are highly useful especially when studying international 66 H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65à ¢Ã¢â€š ¬Ã¢â‚¬Å"77 business in CEE. Learning processe s are essential since the company needs to adapt to an emerging and different business context, such as exists in the CEE (Meyer and Gelbuda, 2006). As noted by Sharma and Blomstermo (2003b) a basic assumption in internationalization process theory is that knowledge accumulation is continuous and dependent upon the duration of foreign operations. The longer firms have been involved in foreign operations, the more knowledge they accumulate about such operations. There is a relationship between knowledge accumulation and risk so that the more knowledge a firm has, the less uncertain they perceive the foreign market to be. Firms that lack knowledge about foreign markets even tend to overestimate risks. This corresponds to what Jansson (1989) found concerning establishment processes in a regional perspective, namely that the pace of investments in Southeast Asian countries accelerated, the more experienced the firms became in an area. Johanson and Vahlne (1990) stated that Uppsala model of internationalization indicated firms reveal an evolutionary process in internationalizing through a series of evolutionary stage. 2.2.2 Entry nodes and entry processes Firms entering emerging markets face several barriers according to Meyer (2001). These barriers include a lack of information, unclear regulations and corruption. According to traditional research on internationalization processes, market entries either take place through intermediaries such as agents or distributors or through a firms own representative in the exporting/importing country, mainly a subsidiary. In terms of research in this area, scholars have found that relationships are at the core of the internationalization process (Axelsson and Johanson, 1992; Ford, 2002; HÃÆ' ¥kansson, 1982; HÃÆ' ¥kansson and Snehota, 1995; Hammarkvist et al., 1982; Jansson, 1994, 2007; Johanson and Vahlne, 2003; MajkgÃÆ' ¥rd and Sharma, 1998). According to the network approach to internationalization, entries into local market networks take place through establishing relationships. The international marketing and purchasing of products and know-how through a direct exporter/importer network means that a vertical network in the exporting region (e.g. a suppliers supplier network) is indirectly connected to another vertical network in the importing region (e.g. a buyers buyer network). This large vertical network will, in turn, be embedded in other regional and national networks, such as a financial network (Jansson, 2006, 2007). From a network perspective, establishment points in foreign market networks are defined as entry nodes. There are various routes into these networks, or nodes by which a firm can enter a network. Entries through trade either take place H. Jansson, S. Sandberg / Journal of International Management 14 (2008) 65à ¢Ã¢â€š ¬Ã¢â‚¬Å"77 67 directly with customers or indirectly through intermediaries. Direct relationships, dyads, can be established between buyer and seller in the respective countries. Indirect relationships, triads, involve an outside party or other type of entry node, usually an intermediary such as an agent, dealer or distributor. Dyads can also be established through the entry mode FDI (a subsidiary in the importing country). Entry processes take place by building relationships to form networks in foreign markets. Irrespective of entry node, the development of international buyer/seller relationships tends to follow a five stage pattern (Ford, 1980, 2002; Ford et al., 1998). Each stage of the entry process can be described by a number of relationship factors, such as how the experience, commitment and adaptations of the parties increase across the stages and how the distance and uncertainty between them are reduced across the stages. The first stage includes the taking-up of marketing/purchasing activities before a formal relationship begins. The next three stages show how direct buyerà ¢Ã¢â€š ¬Ã¢â‚¬Å"seller relationships within networks are established: from their beginning and to their deepening. Experience indicates the amount of experience the respective parties have with each other. They will gauge their partners commitment to the relationship, e.g. by the willingness to make adaptations. Distance is multifaceted and it can be split into social, cultural, technological, time and geographic distance. Uncertainty deals with the fact that at the initial stages, it is difficult to assess the potential rewards and costs of the relationship. In the fifth and final stage, the relationship is extensively institutionalized and habitual, with commitment being taken for granted. Based on Terpstra and Sarathy, 1991; and Baek, 2003, joint ventures with host governments and local partners in the host country were among the preferred entry strategies for international operational operation. Petronas in South Africa entered into a commercial alliance with Engen in 1996 as a strategic partner. The acquisition was to enable both companies to implement a shared growth strategy in Africa and the Indian Ocean Rim, while allowing the development of potential operational synergies between the two business entities (Padayachee and Valodia, 2002). 2.2.3 Eclectic Explanation Eclectic Paradigm is a proverbial known explanation of international production. Dunnings (1977, 1988, 1993, 1995). Eclectic Paradigm stated that the extent and pattern of international production is determined by: 1) Ownership advantages (for example, proprietary technology, products, expertise and skill) 2) Internalization advantages (for example, transaction costs reduction, maximize economic return), and 3) Location advantages of host and home countries These OLI (Ownership Location Internalization) variables listed above explain the reason internationalization occurs but overlook the dynamic process of internationalization. The Eclectic paradigm is provided by the Investment Development Path (Dunning, 1981, 1986) with a dynamic dimension, and relates the net outward investment of a country to its stage of economic development. Five stages of IDP ( Investment Development Path) Stage 1: At low level of economic development, there is little inward or outward investments. Stage 2: Inward investment becomes attractive, especially in import substitution projects as the country develops. Some outward investment may take place in neighborly countries which at lower stages of development. Most developing countries with some outward investments are at this stage. Stage 3: With economic development move forward, net inward investment declines while outward investment increases (relative to inward investment). Increasing of outward investment may take place in countries at lower IDP stages in order to overcome cost disadvantages in labour intensive industries and also to seek markets or strategic assets. Singapore, Taiwan and South Korea are said to be at this stage. Stage 4: As production being multinationalized, net outward investment becomes positive. Most developed countries are at this stage. Stage 5: The shift from advantages based more on factor endownment to those based on internalizing international market convergent outward and inward investment flows. Empirical research on Third World (including Asian) multinationals has given general support to the IDP concept (Dunning, 1986; Tolentino, 1993; Dunning Narula, 1996; Lall, 1996). Dunning and Narula (1996) acknowledge that country factors may influence the IDP pattern of a country, such as resource endownment, home market size, industrialization strategy, government policy, and the organization of economic activities. TWMNEs were smaller than their counterparts from developed countries and have limited number of overseas operations. The competitive advantages of TWMNEs were based on cost advantages (particularly labour cost) and greater responsiveness to host country needs which is different from western MNEs. They served market niches which were not covered by the traditional MNEs and so were not in direct competition with them. The major motivation for these FDI was protecting export markets rather than exploiting rent from proprietary technological know-how (or other ownership spe cific advantages characteristic of western MNEs) explained in theories, such as the eclectic paradigm of Dunning (1977, 1995). TWMNEs possessed first or second generation labour-intensive technologies and produced standardized products mainly for the domestic host country market which at stage 4 of IDP. Wells (1983) presupposes a pecking order hypothesis to suggest that the TWMNEs technologies could fill the technological gap between the advanced technology of developed country MNEs and the rudimentary technology of less developed countries (LDCs) in a pecking down order. Lall (1983) emphasized the flexibility and adaptability of TWMNEs technologies to be more suitable or appropriate to LDC situations. 2.2.4 Foreign Direct Investment (FDI) It may seem surprising that there is significant number of foreign direct investments by some firms from developing countries because it is usually credited to more developed countries. A number of studies indicate that FDI flows not only from the industrialized or well-developed countries, as well as developing countries. Scholars such as Lecraw (1981, 1993), Wells (1977, 1981), Lall (1983a, and 1983b), Kumar and Lim (1984), Ulgado et. al., (1994) are only some of those who have carried out empirical studies and researched FDI flows from developing country firms in the 1970s and 1980s. Comparisons between the nature of international expansion of firms from developing countries and the nature of those corporations that originated from developed countries are made in most of these studies (Dunning, 1986; Vernon-Wortzel and Wortzel, 1988). In general, it has been depicted that the competitive advantages of MNCs from developed country are derived from advanced proprietary technology or other superior resources (Yeung, 1994). While ability to reduce costs of imported technology through de-scaled manufacturing or smaller scale of production is focus of the competitive advantage from developing country MNCs were derived from their This is a process whereby technologies from industrialised countries are adapted to suit smaller markets by reducing scale, replacing machinery with manual labour, and relying on local inputs (Ramamurti, 2004). Outward direct investment from developing countries started to grow rapidly to a sizeable magnitude during the mid-1980. This became the main tool of developing country multinationals in demanding that their constituent firms prepare for the drastically international competition that they were about to face(Kumar, 1996, 1997). The emergence of new technologies in the late 1980s somehow decreases the interest in outward direct investment from developing countries subsided (Kumar, 1996; Oh et. al., 1998; Pananond and Zeithaml, 1998; van Hoesel, 1999). Pananond and Zeithaml(1998) and van Hoesel(1999) recounted that aggregate analyses of developing country MNEs conducted at the industry level get attention from scholars and yielded interesting results by the early 1990s. They concluded that there were marked differences in characteristics between developing country MNEs in the 1980s and 1990s. Scholars posited that these two groups of MNEs belonged to two different waves of development i n term of their respective historical backgrounds, nature of businesses, extent of the role of government in operations and transactions, geographical direction, and mode of internationalisation activity. MNEs in the 1980s are more concerned with cost competitiveness with their competitors (van Hoesel, 1999). In contrast, developing country MNEs in the 1990s placed greater emphasis on the development and reset business strategies due to the dynamic changing patterns of world business structure brought about by trade liberalisation and economic globalisation (Dunning et al., 1997). Besides this, they put more effort on technological competence as the source of competitive advantage (Pananond and Zeithmal, 1998). They noted that notwithstanding these differences, there existed several significant interrelated points of convergence between the two groups (Dunning et al., 1997; van Hoesel, 1999). 2.1.5 Regional and global internationalization processes In analyzing the early internationalization steps of smaller and less experienced companies, the internationalization process model by Johanson and Vahlne (1977) is regarded as a highly useful tool. In internationalization research, few studies have been conducted on higher level internationalization where companies are established in several countries and have fully-owned businesses (Meyer and Gelbuda, 2006). The more countries in a region a firm exports to, the more extensive is the regional internationalization process. The more regions a firm exports to, the more global is the internationalization process. New stages of internationalization are established when a firm extends its business from one major type of market to another or from one type of foreign environment to another. The main factor behind these stages is experiential knowledge, meaning that firms gradually build a knowledge base through operating in foreign markets. They learn from past experience by transforming this experience to useful knowledge. There are three types of such knowledge (Eriksson et al., 1997). Internationalization knowledge about how to perform international operations is an expression of a firms current stock of knowledge in the form of its resources and capabilities. The more novel the foreign environment, the more difficult it is for the firm to apply its current stock of knowledge to that foreign market. This means that there is a gap between a firms present internationalization knowledge and the knowledge the company has about how to do business in the specific foreign market, i.e. concerning its network experiential knowledge and institutional knowledge (Blomstermo et al., 2004). Based on a firms experiential knowledge process, internationalization processes are often divided into different degrees of internationalization. Johanson and Mattsson (1991) discuss the internationalization process for firms with various degrees of internationalization and propose that the process is mainly valid during the early stages of a firms internationalization: inexperienced firms tend to follow a traditionally slow and gradual pattern, while the internationalization of a more experienced company is less slow and gradual. 2.2.6 Uppsala model The Uppsala model (Johanson Weidersheim-Paul, 1975; Johanson Vahlne, 1977) provides an explanation of the dynamic process of internationalization of individual firms. The Uppsala model emphasize on the importance of gaining knowledge and experience about the characteristics of foreign markets along the internationalisation path, and helps MNEs reduced risks and levels of uncertainty in unfamiliar foreign environments before investing (Wiedersheim-Paul et al., 1978). The successive steps of increasing highly commitment are based on knowledge acquisition. Foreign activities started with export to foreign country through independent representative or agent, after that establish sales subsidiary and finally start production in the host country. The internationalization of the firm across many foreign markets was particularly related to psychic distance which included differences in language, education, business practices, culture and industrial development. Firstly, enter foreign market which closer in term of psychic distance, followed by subsequent entries in markets with greater psychic distances. Same goes to entry mode of foreign market. The incremental expansion of market commitment meant that the initial entry was typically some form of low commitment mode and followed by progressively higher levels of commitment. Obviously, commitment of the level of ownership in different markets was correlated with their psychic distance. The Uppsala model had received general support in empirical research (Welch and Loustarinen, 1988; Davidson, 1980, 1983; Erramilli et al., 1999) and its largely intuitive nature and evolutionary learning perspective made it attractive as an explanatory model. A related view regards learning was that TWMNEs built up their advantages through the accumulation of technology and skills. Lall (1983) emphasized on the localization and adaptation of technology to suit local markets by TWMNEs. Tolentino (1993) focused in term of the accumulation of technological competence in the expansion of firms from developing countries which was consistent with the resource-based view of building competitive advantage in strategic management. The accumulation of knowledge and competence especially its knowledge of developing markets and not so much its technology by the CP Group in Thailand was the key to its internationalization. There are also differences between the CP Group and Western MNEs (Pananond and Zeithaml, 1998). Mathews (2002, 2006) postulated that emerging firms could foster internationalization via leverage of their contractual linkages with other foreign firms to acquire resources and learning new capabilities. He indicated that this explanati on complemented the OLI framework and could be used to explain the rise of such latecomer firms which he dubbed as Dragon multinationals. 2.2.7 Asian Context Yeung (1999); Zutshi Gibbons (1989) portrayed that western theories on internationalization have neglect the active role played by the state and overlooked the institutional or contextual perspective in the internationalization of Asian. Asians state always plays a direct and active role in the internationalization of its MNEs. For example, the Singapore government played a key and direct role in the promotion of outward FDI (e.g., growth triangles, industrial parks in foreign countries), particularly from the early 1990s in its regionalization programs (Pang, 1994; Tan, 1995; ESCAP/UNCTAD, 1997). Incentives and other programs for instance tax incentives, finance schemes, training also provided to foster the rapid development of local entrepreneurship in the regionalization efforts. In Malaysia, the government took a very active role in promoting the internationalization of Malaysian firms. Investment promotion missions abroad were organized and often lead by the Prime Minister. The government provided incentives including tax abatement in 1991 and subsequently full tax exemption in 1995 for income earned overseas and remitted back to Malaysia. An overseas investment guarantee program was instituted. Malaysian government instructed firms to defer non-essential overseas investment in order to reduce the impact of the effects of the 1997 Asian financial crisis. In the Asian context, the state has played a very active and direct role in promoting the internationalization of its national firms. This is much different with the western context, where the role of the state is benign and indirect. 2.3 Summary This chapter first discussed the internationalization process in terms of entry notes and process, eclectic explanation, foreign direct investment, regional and global internationalization processes, Uppsala model and Asian context. The following chapter discusses the research method, survey development, and sample selection CHAPTER 3 METHODOLOGY 3.1 Introduction This chapter provides an overview of the research method. It starts by explaining the appropriateness of the research method. Then discusses the research design which consists of seven steps: questionnaire development, literature review, proposal, data collection, data analysis, discussion and conclusion, and write-up. Next the data collection and sample selection is discussed with reasons for each of the decisions involved. The next section discusses the statistical methods. Lastly, a Gantt chart will be use to estimate the times use in each activity. 3.2 Sampling Technique A case study approach will be using in this paper. It tends to provide in depth information and intimate details about the particular case being studied. This approach was used to collect comprehensive and holistic data (Eisenhardt, 1989; Internationalization Strategies of Emerging Asian MNEs 491 Yin, 1994) about firms that have internationalized their operations over time. The focus here is on MNEs from Malaysia (a fast developing country). Case studies mean that the research investigates few objects in many respects (Wiedersheim-Paul, Eriksson, 1991). Case studies are most suitable if you like to get a detailed understanding about different kinds of process (Lekvall Wahlbin, 1987). The researches may, for instance, choose a line of business and an enterprise, and conduct an in depth investigation (Wiedersheim-Paul, Eriksson, 1991). Yin (1994) states, that when the form of the questions is why and how, the case study strategy is most likely to be appropriate. The research problem I have investigated was how the internationalisation process of a MNEs when entering to foreign market can be characterised , which was divided into four research questions. 3.3 Data Collection 3.3.1 Secondary data Eriksson Wiedersheim-Paul (1997) points out that secondary data is data, which already has been collected by someone else, for another purpose. Statistics, and reports issued by governments , trade associations, and so on, are some sources of secondary data (Chisnall, 1997). The annual report and the enterprises homepage, are another sources of secondary data (Wiedersheim-Paul, Eriksson, 1991). Secondary data research should always be carried out before doing any field survey (Chisnall, 1991). When I had defined the research area, I started to search for relevant literature. The databases that I have used to find relevant literature are EBSCOhost, Science Direct, Libris, ABI/INFORM, and Helecon. The keywords used when searching the databases were international business, Malaysian MNEs, internationalization, strategies, mode of entry. These words were combined in different ways, to maximise the number of hits. 3.3.2 Primary d

A Good Man Is Hard To Find Essay -- essays research papers

The foreshadowing effect in â€Å"A Good Man Is Hard to Find† To foreshadow is to give a hint or a suggestion of a forthcoming event. Flannery O’Connor uses the foreshadowing effect adequately in â€Å"A Good Man Is Hard to Find.† There were many hints and suggestions that something unpleasant was going to happen in this story. The moment the grandmother first speaks of the misfit, we can assume he will show up later in the story because he is headed in the same direction as the family. Close to the ending, when the gunshots are heard from the woods, we can assume that the situation cannot get much worse. The first hint of trouble comes early in the story before the first paragraph ends. The grandmother tries to show Bailey a newspaper article about The Misfit, who has escaped the penitentiary and is headed toward Florida. The grandmother tries to discourage Bailey from taking the family to Florida again by telling him he ought to take the children somewhere else for a change, but he disregards his mother and they go on the trip anyway. The probability that an escaped convict is headed in the same direction as Bailey and his family suggests havoc is coming their way. O’Connor describes how the grandmother is dressed and says, â€Å"In case of an accident, anyone seeing her dead on the highway would know at once that she was a lady†(221). In my opinion, this phrase suggests that the grandmother could be involved in an accident further into the story. Also, the grandmother cautions Bailey ab...

Consumer Association of Bangladesh

1. Introduction Consumers Association of Bangladesh (CAB), a non-government Non-political and non-profit voluntary organization was founded in February, 1978 at the initiation of some dedicated residents in Dhaka who was imbued with the ideas of consumerism, a movement that already took shape in many advanced countries in Europe and America. Primarily started as a social group to protect consumers from commodity adulteration and artificial price-hike it has gradually widened its scope to establish and safeguard consumers’ rights and interests in social, economic, health and environmental issues.CAB was registered with the Department of Social Services, Government of Bangladesh vide reg. No DHA-01247 dated 14 March 1983 and with the NGO Affairs Bureau vide reg. No. DSS/FDO/R-197 dated 2 March 1986. CAB is also a full member of Consumers International. It is funded by membership fees and by grants from donors. Organization Profile: Organization Name: CAB (Consumers Association o f Bangladesh) Member no: 761 Joining date: 15 Mar 1981Region: Asia Pacific Address: 8/6, Segunbagicha, Dhaka- 1000 Location: Bangladesh Type of Work: Campaigning and/or lobbying, Consumer Advice, Consumer Legislation, Dispute Resolution, Networking, Product Testing, Publishing, Research/Policy analysis. It has 500 regular and 100 associate members. Its mission is to empower Consumers with the knowledge and skills for the effective protection of their rights and interests.The major areas of CAB activities are: Consumer Information & Education, Surveillances & Monitoring on market prices and quality of essential commodities and utility services, consumer’s complaints handlings, campaign for safe foods and commodities, ethical drug promotion and safe environment, studies & research on consumer issues and problems, Advocacy and lobby with the government and policy makers for enactment of Consumer Protection Law. 2. Objectives of CAB: The major objectives of CAB are to: 1. make co nsumers aware of their rights and responsibilities; 2. romote consumer education, aiming at raising awareness of consumers against exploitation, and providing them with technical knowledge and support for real protection; 3. focus on consumers' problems and develop a spirit of mutual co-operation and understanding among different groups, associations, institutions, NGOs and government agencies functioning in the interests of the welfare of the people; 4. exchange information and knowledge of various actions about consumer protection with national and international organizations; 5. organize and set-up consumers associations and groups at the districts and thana level 6.Undertake research studies on consumer issues and problems. 7. Generate awareness among the consumers about their internationally recognized rights and responsibilities as consumers 8. Promote consumer education aiming at empowering consumers with the knowledge and skills on protection of their rights. 9. Enable consu mers to organize themselves in establishing and protecting their rights and interests through organized action. 10. Arrange for testing of products and commodities to make the market places safer and consumer friendly. 11.Provide mediation and legal support to the aggrieved consumers related to violation of their rights and interests involved in the purchase and use of commodities and services. 12. Foster and develop contacts and liaison with the national and international organizations having similar objectives. 13. Publish educational materials and feed consumers with information and knowledge on consumerism, consumer issues and problems. 3. Achievements: CAB activities in consumer education include mainly the publication of a monthly bulletin in Bangla titled Consumers' Voice to provide consumers with information of various consumer issues and problem.CAB also publishes a quarterly bulletin in English, which it distributes to different organizations at home and abroad. In additio n, it occasionally publishes pamphlets, folders, and leaflets on various consumer issues and problems and regularly prepares features and press releases for dissemination through the mass media. CAB regularly monitors the market prices of essential commodities and services to show the actual price situation in the market and keep prices within the purchasing power of general consumers.It runs a market monitoring cell, which regularly conducts market surveys and supplies relevant information to consumers through national dailies. CAB launched a ‘Dirty Dozen Campaign' against 12 most harmful pesticides. Earlier, there were no guidelines on the marketing of pesticides and it is because of the pressure created by CAB that the government had to formulate guidelines on the marketing of pesticides and publish them through a gazette notification. CAB also carried out studies on household insecticides and labeling of pesticides on packets.The organization was very vocal and active in c reating demand for formulating a National Drug Policy (NDP) and played an active role in the process of enactment of the NDP in 1982. Since then, CAB has been regularly monitoring the implementation of NDP and organizing promotional activities, especially relating to issues of inadequacy and poor services in the delivery of public health care. CAB started an anti-tobacco campaign in 1981. CAB is active in lobbying with the government for banning smoking in selected public places. CAB is also monitoring the implementation of the Breast Milk Substitute Ordinance enacted in 1984.CAB carries out campaigns in support of breastfeeding. CAB activities include organization of seminars, workshops, and group meetings, street processions, distribution of posters and leaflets, and publication of features in newspapers on environmental pollution and degradation as well as on safe road and transport systems. A routine activity of CAB is the formation and development of consumer for expansion of c onsumer movement at the division, district, thana and peripheral levels. These groups keep liaison with the national level and deal with consumer education and motivation and handle local consumer problems and issues.CAB runs a Complaint Centre to receive complaints from consumers and extends technical and legal support to them for redress. With a view to keeping the consumers informed about the daily market situation and other consumer issues and problems CAB runs a Consumer Information Centre, which has a small library attached to it. It conducts studies on important consumer issues such as commodity prices, use of BMS in hospitals and clinics, tobacco consumption, road accidents, violation of BMS ordinance, drug abuse and the like.It has been looking for the formulation of consumer protection laws in the country for a long time. CAB now concentrates its activities in the districts of Dhaka, Chittagong, Sylhet, Mymensingh, Gazipur, Manikganj, Bogra, Khulna and Barisal but has plan s to expand the activities in other districts of the country, too. Some of the achievements of CAB are as follows: The Milk Vita Company used to mix imported powder milk with cow’s milk and then market it as the cow’s milk.CAB exposed this malpractice, following which the company had to change its policy; CAB created considerable awareness among the people about harmful and unnecessary drugs long before the enactment of the National Drug Policy, which after being formulated, was popularized by CAB through a vigorous campaign; Since 1984, CAB has been conducting campaigns for the promotion and protection of breast feeding and has been an advocate for enactment and implementation of Bangladesh Breast Feeding Substitutes (marketing regulation) Ordinance, 1984; CAB was instrumental in the declaration of the Code of Pesticide Marketing and assisted in the creation of a committee to evaluate price situation, in the re-organization of the Bangladesh Standard Institute and pub lication of lists for standard certificates, and in creation of a committee to assess the adulteration position in edible oils; CAB was instrumental in the re-organization of the government's Environmental Pollution Control Department. The anti-tobacco campaign by CAB resulted in the introduction of warning against hazardous effects of smoking in cigarette advertisements; and CAB has been recognized as representative of consumers in numerous committees (both government and non-government) formed on different issues and subjects.CAB, however, faces a number of constraints such as inadequacy of funds, and a relatively slow response from communities and population groups that prevent consumer movement from gaining a solid ground, and a general weakness of consumers in terms of their awareness level and bargaining strength in purchases. CAB's success, therefore, remains minimal as their programmers often go against the interest of the business community, who enjoys near monopoly and has the opportunity to organize syndicated trade. 3. 1 Research Studies: Several research and survey works on consumer’s affairs are undertaken by CAB. Information dissemination to the stake holders and to the relevant government authorities are the routine practices. It helps the decision makers to take action and make remedial future action plan for assuring the rights of consumers in the country. Survey and research on â€Å"Awareness to the sellers and consumers regarding BSTI, and the certification marks system of BSTI† in the year of 2000. †¢Survey and research on â€Å"Awareness and the status of Bangladesh on keeping the consumers right† in the year of 2000. †¢Research on â€Å"Market food and packaged food† in the year of 2003. †¢Survey and research on â€Å"Unpackaged food in Dhaka city† in the year of 2003. †¢Survey and research on â€Å"Health service: The present status of Bangladesh (1. 5 years)† in the year of 2005. †¢Survey and research on â€Å"Public sentiment of sellers and consumers† in the year of 2005. †¢Survey report on â€Å"Livelihood expenses and pricing of product† in 1982- 2007). †¢Yearly survey report on â€Å"Accident on road and river transport† in (2000-2004). Survey and research on â€Å"The use of indigenous medicine† in the year of 2005. 3. 2 Campaign for Safe Environment: Women and children are the worst sufferers due to increasing environmental degradation and CAB undertakes programs to promote public awareness and their participation in the environmentally sustainable development. Campaign activities in the form of seminars, workshops, group meetings, rallies and street processions, production and distribution of educational materials, writing of features, press release etc. against air and water pollution, environmental degradation and other social abuses are organized on regular basis. 3. 3 Campaign against Tobacco:CAB h as been campaigning against production and marketing of tobacco since 1981 and it is through the continued and persistent endeavors of CAB that advertisement of cigarettes in Radio and TV has been banned and health hazards warning signals on cigarette packs has been introduced. CAB is a member of the Bangladesh Anti-tobacco Alliance and has been lobbying with the government for enactment of laws putting ban on smoking in public places as well as on advertisement of cigarettes in print media. This has, however, resulted in the enactment of Bangladesh Tobacco Control Law 2005. CAB has now started lobbying with the government for effective implementation of law and organizing campaign for raising public awareness on tobacco menace to bring about tangible reduction of tobacco use in the society. Read also: Padma Bridge

Acct 562 Assignment 2 – The town of bedford falls approved a general fund

Chapter 4: Problems 4–4, 4–6, 4–10, and 4–11 3–9.Recording General Fund Operating Budget and Operating Transactions. The Town of Bedford Falls approved a General Fund operating budget for the fiscal year ending June 30, 2011. The budget provides for estimated revenues of $2,700,000 as follows: property taxes, $1,900,000; licenses and permits, $350,000; fines and forfeits, $250,000; and intergovernmental (state grants), $200,000. The budget approved appropriations of $2,650,000 as follows: General Government, $500,000; Public Safety, $1,600,000; Public Works, $350,000; Parks and Recreation, $150,000; and Miscellaneous, $50,000. Summary General Fund operating budget: fiscal year ending June 30, 2011 Budget: revenues of $2,700,000 property taxes: $1,900,000 licenses and permits: $350,000 fines and forfeits: $250,000 intergovernmental (state grants):$200,000 The budget approved appropriations of $2,650,000 as follows: General Government:$500,000 Public Safety: $1,600,000 Public Works: $350,000 Parks and Recreation: $150,000 Miscellaneous:$50,000 Required : a. Prepare the journal entry (or entries), including subsidiary ledger entries, to record the Town of Bedford Falls’s General Fund operating budget on July 1, 2010, the beginning of the Town’s 2011 fiscal year. Answer: General LedgerSubsidiary ledger Estimated RevDR: $2,700,000 Budgetary fund Bal. CR: $2,700,000 TaxesDR: $1,900,000 Intergovernmental Rev. DR: $200,000 Licenses & PermitsDR: $350,000 b. Prepare journal entries to record the following transactions that occurred during the month of July 2010. 1. Revenues were collected in cash amounting to $31,000 for licenses and permits and $12,000 for fines and forfeits. Answer: licenses and permits (Subsidiary Ledger) DR: Licenses & Permits $31,000 CR: Cash $31,000 fines and forfeits (general ledger) DR: Estimated Rev $12,000 CR: Budgetary fund bal. $12,000 2. Supplies were ordered by the following functions in early July 2010 at the estimated costs shown: Answer: Appropriations LedgerSubsidiary ledger General GovernmentCR: $7,400 Public SafetyCR: $11,300 Public WorksCR: $6,100 Parks & RecreationCR: $4,200 Misc. CR: $900 Encumbrances subsidiary LedgerSubsidiary ledger General GovernmentDR: $7,400 Public SafetyDR: $11,300 Public WorksDR: $6,100 Parks & RecreationDR: $4,200 Misc. DR: $900 3. During July 2010, supplies were received at the actual costs shown below and were paid in cash. General Government, Parks and Recreation, and Miscellaneous received all supplies ordered. Public Safety and Public Works received part of the supplies ordered earlier in the month at estimated costs of $10,700 and $5,900, respectively. c. Calculate and show in good form the amount of budgeted but unrealized revenues in total and from each source as of July 31, 2010. Answer: Budgeted but unrealized revenues: General Govn – $100 Public Safety – ($100) Public Works – ($200) Park & Rec – $100 Misc. – $0 d. Calculate and show in good form the amount of available appropriation in total and for each function as of July 31, 2010. Answer: Available appropriation: General Govn. – $100 Public Safety – $0 Public Works – $0 Park & Rec – $100 Misc. – $0 4–4 Property Tax Calculations and Journal Entries. The Village of Darby’s budget calls for property tax revenues for the fiscal year ending December 31, 2011, of $2,660,000. Village records indicate that, on average, 2 percent of taxes levied are not collected. The county tax assessor has assessed the value of taxable property located in the village at $135,714,300. Required: a. Calculate to the nearest penny what tax rate per $100 of assessed valuation is required to generate a tax levy that will produce the required amount of revenue for the year. Answer: 2,700,000%. 096= $2,812,500 b. Record the tax levy for 2011 in the General Fund. (Ignore subsidiary detail and entries at the government-wide level. ) Answer: DR: General Revenue-Property Taxes CR: Property Taxes c. By December 31, 2011, $2,540,000 of the current property tax levy had been collected. Record the amounts collected and reclassify the uncollected amount as delinquent. Interest and penalties of 6 percent were immediately due on the delinquent taxes, but the finance director estimates that 10 percent will not be collectible. Record the interest and penalties receivable. (Round all amounts to the nearest dollar. ) 4–6 Special Revenue Fund, Voluntary Nonexchange Transactions. The City of Eldon applied for a competitive grant from the state government for park improvements such as upgrading hiking trails and bike paths. On May 1, 2011, the City was notified that it had been awarded a grant of $200,000 for the program, to be received in two installments on July 1, 2011, and July 1, 2012. The grant stipulates that $100,000 is for use in each of the city’s fiscal years ending June 30, 2012, and June 30, 2013. Any amounts not expended during FY 2012 can be carried over for use in FY 2013. During FY 2012, the city expended $90,000 for park improvements from grant resources. Required For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following: 1. May 1, 2011, notification of grant approval. Answer: No Entry 2. July 1, 2011, receipt of first installment of the grant. Answer: CR: Grant $1,000,000 DR: Cash $1,000,000 3. During FY 2011 to record expenditures under the grant. Answer: No Entry 4. July 1, 2012. CR: Grant- park improvements, $90,000 DR: Cash- grant resources, $90,000 4–10 Operating Transactions, Special Topics, and Financial Statements. The City of Ashland’s General Fund had the following post-closing trial balance at April 30, 2010, the end of its fiscal year: ? During the year ended April 30, 2011, the following transactions, in summary form, with subsidiary ledger detail omitted, occurred: 1. The budget for FY 2011 provided for General Fund estimated revenues totaling $3,140,000 and appropriations totaling $3,100,000. . The city council authorized temporary borrowing of $300,000 in the form of a 120-day tax anticipation note. The loan was obtained from a local bank at a discount of 6 percent per annum (debit Expenditures for discount). 3. The property tax levy for FY 2011 was recorded. Net assessed valuation of taxable property for the year was $43,000,000, and the tax rate was $5 per $100. It was estimated that 4 percent of the levy would be uncollectible. 4. Purchase orders and contracts were issued to vendors and others in the amount of $2,059,000. 5. The County Board of Review discovered unassessed properties with a total taxable value of $500,000. The owners of these properties were charged with taxes at the city’s General Fund rate of $5 per $100 assessed value. (You need not adjust the Estimated Uncollectible Current Taxes account. ) 6. $1,961,000 of current taxes, $383,270 of delinquent taxes, and $20,570 of interest and penalties were collected. 7. Additional interest and penalties on delinquent taxes were accrued in the amount of $38,430, of which 30 percent was estimated to be uncollectible. 8. Because of a change in state law, the city was notified that it will receive $80,000 less in intergovernmental revenues than was budgeted. 9. Total payroll during the year was $819,490. Of that amount, $62,690 was withheld for employees’ FICA tax liability, $103,710 for employees’ federal income tax liability, and $34,400 for state taxes; the balance was paid to employees in cash. 10. The employer’s FICA tax liability was recorded for $62,690. 11. Revenues from sources other than taxes were collected in the amount of $946,700. 12. Amounts due the federal government as of April 30, 2011, and amounts due for FICA taxes, and state and federal withholding taxes during the year were vouchered. 13. Purchase orders and contracts encumbered in the amount of $1,988,040 were filled at a net cost of $1,987,570, which was vouchered. 14. Vouchers payable totaling $2,301,660 were paid after deducting a credit for purchases discount of $8,030 (credit Expenditures). 15. The tax anticipation note of $300,000 was repaid. 16. All unpaid current year’s property taxes became delinquent. The balances of the current tax receivables and related uncollectibles were transferred to delinquent accounts. 7. A physical inventory of materials and supplies at April 30, 2011, showed a total of $19,100. Inventory is recorded using the purchases method in the General Fund; the consumption method is used at the government-wide level. Required a. Record in general journal form the effect of the above transactions on the General Fund and governmental activities for the year ended April 30, 2011. Do not record subsid iary ledger debits and credits. Answer: General FundDebitCredit revenues $3,140,000 appropriations $3,100,000 borrowing of $300,000 principle and interest$300,000 roperty tax levytax levyCash b. Record in general journal form entries to close the budgetary and operating statement accounts. c. Prepare a General Fund balance sheet as of April 30, 2011. Answer: General Fund Cash $3,140,000 Borrowing/Lending 300,000 Total Liabilities Vouchers payable totaling $2,301,660 materials and supplies $19,100 tax liability $62,690 d. Prepare a statement of revenues, expenditures, and changes in fund balance for the year ended April 30, 2011. Do not prepare the government-wide financial statements. 4–11 Permanent Fund and Related Special Revenue Fund Transactions. Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash contribution in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton Park Endowment Fund. Under terms of the agreement, the town must invest and conserve the principal amount of the contribution in perpetuity. Earnings, measured on the accrual basis, must be used to maintain Alex Benton Park in an â€Å"attractive manner. All changes in fair value are treated as adjustments of fund balance of the permanent fund and do not affect earnings. Earnings are transferred periodically to the Alex Benton Park Maintenance Fund, a special revenue fund. Information pertaining to transactions of the endowment and special revenue funds for the fiscal year ended June 30, 2011, follows:1. The contribution of $500,000 wa s received and recorded on December 31, 2010.2. On December 31, 2010, bonds having a face value of $400,000 were purchased for $406,300, plus three months of accrued interest of $6,000. A certificate of deposit with a face and fair value of $70,000 was also purchased on this date. The bonds mature on October 1, 2019 (105 months from date of purchase), and pay interest of 6 percent per annum semiannually on April 1 and October 1. The certificate of deposit pays interest of 4 percent per annum payable on March 31, June 30, September 30, and December 31.3. On January 2, 2011, the town council approved a budget for the Alex Benton Park Maintenance Fund, which included estimated revenues of $13,400 and appropriations of $13,000.4.On March 31, 2011, interest on the certificate of deposit was received by the endowment fund and transferred to the Alex Benton Park Maintenance Fund.5. The April 1, 2011, bond interest was received by the endowment fund and transferred to the Alex Benton Park M aintenance Fund.6. On June 30, 2011, interest on the certificate of deposit was received and transferred to the Alex Benton Park Maintenance Fund.7. For the year ended June 30, 2011, maintenance expenditures from the Alex Benton Park Maintenance Fund amounted to $2,700 for materials and contractual services and $10,150 for wages and salaries. All expenditures were paid in cash except for $430 of vouchers payable as of June 30, 2011. Inventories of materials and supplies are deemed immaterial in amount.8. On June 30, 2011, bonds with face value of $100,000 were sold for $102,000 plus accrued interest of $1,500. On the same date, 2,000 shares of ABC Corporation’s stock were purchased at $52 per share. Required a. Prepare in general journal form the entries required in the Alex Benton Park Endowment Fund to record the transactions occurring during the fiscal year ending June 30, 2011, including all appropriate adjusting and closing entries. Note: Ignore related entries in the go vernmental activities journal at the government-wide level. ) b. Prepare in general journal form the entries required in the Alex Benton Park Maintenance Fund to record Transactions 1–8. c. Prepare the following financial statements: (1) A balance sheet for both the Alex Benton Park Endowment Fund and the Alex Benton Park Maintenance Fund as of June 30, 2011. (2) A statement of revenues, expenditures, and changes in fund balance for both the Alex Benton Park Endowment Fund and the Alex Benton Park Maintenance Fund for the year ended June 30, 2011.