Business Economics 2 Essay Example | Topics and Well Written Essays - 1500 words - 1

Business Economics 2 - Essay Example 70% of bank funds were diverted to real estate mortgage. The income of families and household was diverted from buying goods and services to buying properties- houses and buildings. A large chunk of money was used in payment of debt service to banks and financial companies. The payment of debt service by the economy’s non-financial sectors interrupts the circular flow of income supposed to exist between produces and consumers. The problem of financing network became more complex. Britain faced acute credit crisis in the recent periods caused by slack lending practice by banks, financial turmoil caused by dearth of liquidity, extending risky loans to unpredictable parties and passing on to other institutions, excessive dependency on credit rating companies, over dependence on in financial markets or inadequate liquidity risk management. This has put many sectors of the economy at risk such as  · UK commercial property sector, Stock markets, First-time buyers, Buy-to-let investors, UKs sub-prime borrowers and many others. There was exponential growth of savings and debt in UK market. They were used mainly for financing the purchase of real estate, stocks and bonds. Net savings don’t increase in the economy because it is used in re lending for or refinancing assets. This process does not necessarily promote new investment in tangible assets or new factories that add to new employment. No more output is added, no more factors of production is paid. Consumption from household, which accounts for about 70% of GDP, is the basis of production. Exports add to the consumption share because it takes off consumption of other country’s consumption also. Consumption of UK in recent years had been 90% that was financed out of the real income of the country and not debt. Consumption by household should flow directly from

International Joint Venture System Research Proposal

International Joint Venture System - Research Proposal Example Influence to more international maybe as sure of many opportunities opened up by vast markets, which result from unique political, economic& cultural environment in China. Any foreign company could need to rethink its approach in managing employees and the organization as a whole. Against this background, formation of joint ventures in China calls for adaptability, and management of change. These will and bring about improved performance by thawing any foreseeable resistance, withholding crucial information and claiming responsibility for the managerial decision and action taken by personnel. The United States of America is a capitalist economy whose strategic orientations calls for "let the best man win and put you money when your mouth is" perspective. This indeed may not be an appealing view for a Chinese socialist oriented economic attitude. Therefore setting up business of a joint venture system in china calls for a great understanding of the intricacies involved. Other experts call this environmental scanning while the researcher now feels it is appropriate to term it as regional or global scanning. A Sino American comparative analysis type of study will form the basis for the ensuing research on variables that will include adaptability to environmental factors, human resource management adjustments in the nature of personnel training, development , strategic thinking , horizons etc 2. Research objectives and Questions. The primary objectives for this study shall be To focus on the influences of both internal and external forces on joint ventures established in China. To identify the ways in which adaptation is done for succeeding in such ventures. To evaluate the essence of training and development in success in joint venture business. To determine the competitive advantages China offers to such joint ventures. Some specific research questions for this study include; Why is Chinese culture and orientation important Why is training and development critical for success among joint ventures How does competitive advantage and adaptation assume significance Which internal and external influences affect joint venture systems in global market What complexities exist in Chinese based joint venture What are the likely ways in which to alleviate such complexities. 3. Reviewing previous literature There are different sources of data, i.e. primary and secondary. However, it may not be appropriate to assume that the other experts have not positively contributed into the pool knowledge of in this area. To refer and borrow from scholars on Chinese management issues, publications by journals and texts regarding such operations by joint ventures form a critical basis for argumenting ideas available to support any ideas made. There has been a notion regarding paucity of studies on management in China. Academicians have focused on human resource practices in general, which seem shallow (Verna & Yan 1995, Tsung, 1994, Ding, Fields and Akhtar, 1997). Change, management & adaptation :On managing change and ensuring adaptability the (economist, 1991) when China was in a modernization phrase, China attracted industrial foreign