Oil dependent countries, often Western, must remain in favour with oil rich supplying nations such as in the Middle East and Russia. It is this need that often determines foreign policy or influences political decisions. At present, Saudi Arabia has strong links with the USA and other Western countries, and as a result oil flows from one to the other. However, any changes in leadership transition, economic reform or acts of terrorism could see this arrangement change. Under Saddam Hussein’s rule, Iraq faced UN economic sanctions that constrained the oil industry making trade very difficult.
Case summary: Below a Mountain of wealth, a River of Waste New York Times took a serious of investigation to Freeport-McMoRan Company, which is one of the world largest copper and gold producers. The investigation includes searches to its environment pollution issue and safety policies in Indonesia. The New York Times focus on the relationship between the Freeport Company and the military as well as police department in Papua. The investigation reveals some contacts and financial support to the military. While some of its stockholders concern potential violations of laws and human rights, the company says they “take appropriate step” to strictly follow the Indonesian and American law to give profit to military and bring a secure working environment for the employees.
For example if Engineering Tech pay suppliers in Australian dollars, wages/salaries and utilities in Ethiopian currency but receives payments in US dollars, unfavorable shifts in the exchange rate of the currencies may affect Engineering Tech’s profit margin. A foreign exchange guarantee facility can help ET protect its profit from exchange rate fluctuations by locking in exchange rate and allowing ET to hedge its currency exposure. The more of foreign exchange it can hedge, the greater the control over foreign exchange risks. d) Political Risk Insurance: Political risk insurance is critical in this project because it involves commercial risks and it’s a project in a least developed country, with an uncertain political environment. E.g.
John Hobson, an English economist, saw imperialism as inevitable, for powers of production outpace consumption resulting in more profit for the mother country (doc 2). The United States was involved in imperialism due to the Monroe Doctrine of 1823, which made the western hemisphere an American protectorate and their victory in the Spanish-American War making them a Pacific power. Both Europe and America believed imperialism could bring them economic power and capacity. Imperialism was not strictly confined to economics; it also included the political aims of unique states. John Hobson deemed demand for foreign markets for manufacturers and investments was responsible for the adoption of Imperialism as a political policy (doc 2).
How far do you agree that Trotsky’s leadership of the red army was responsible for the survival of the Bolshevik government? In October 1917 the Bolshevik’s took control of Russia after staging a revolution. However they faced many dangers/threats while in power from the years 1917-1924 such as a civil war and the economic crisis it caused. The leadership of the red army by Trotsky is a very important reason that the Bolsheviks got into power as his red army implanted the revolution but also to the survival of the Bolsheviks as the red army overcame the Bolsheviks biggest threat of the civil war. However there are other reason which just as or more important than Trotsky’s leadership such as the ideas and sacrifices made by Lenin during the year’s 1917-1924 such as signing the harsh treaty of Brest-Litovsk and enforcing the New Economic Policy or NEP, to create economic sacrifices rather than political ones which allowed the Bolsheviks to remain in power.
7. Some argue that aid is focused on industrialization causing a greater gap in incomes and living standards between those in that sector and those in the traditional agricultural sector. 8. Aid is often available only if the country agrees to adopt certain economic policies and these often reflect the Washington Consensus policies that emphasize free market principles of liberalization, deregulation and privatization to promote economic growth. These policies might be more in the interest of MNCs and the developed countries rather than the developing countries.
Contrast the pros and cons of protectionist policies. A: Governments utilize protectionist economic policies to restrict imports and exports. Protectionism helps to protect nations from an increase in the amount of imports, which could affect domestic production. One of the most common protectionist policies includes raising the price of imports via tariffs, keeping industry in the nation more competitive in the domestic market. Protectionism can also include import quotas, or the restrictions on the quantity of imports allowed to enter a country.
METHANEX is the world’s largest methanol producer, whose success is in large part due to its cost leadership and reliable delivery. The purpose of this report is to analyze the situation facing METHANEX and recommend a set of strategic plans for it to tackle the current challenges in moving forward. In ensuring low-cost production, many of METHANEX’s production plants are based in emerging market economies. This strategy is met with various problems of poor infrastructure and political instability, resulting in inconsistent gas supply and crippling its production plants. In addition, the lack of diversification makes METHANEX completely reliant on the stability of the market for methanol.
Banking laws, tariffs, internal-improvement legislation, and the granting of public land to railroads are only the most obvious of the economic regulations enforced in the nineteenth century by both the federal government and the states. Americans saw no contradiction between government activities of this type and the free enterprise philosophy, for such laws were intended to release human energy and thus increase the area in which freedom could operate. These tariffs stimulated industry and created new jobs, railroad grants opened up new regions for development. Public had fear of the industrial giants reflected concern about monopoly. If standard Oil dominated oil refining, it might raise prices inordinately at vast cost to consumers.
Chapter 4 This section starts off with the chapter that explains the trends of the concepts of hot, flat, and crowded. Friedman defines these terms and explains how the three causes the problems to the energy supply, mainly oil, and how they lead to global warming. Also he talks about how these problems affect the world’s economic growth and security. o Chapter 5 The next chapter is about the energy supply and demand. He talks about how China and India have a growing middle class they are wanting the same things as the American middle class.