Wednesday, October 16, 2019
Civilization and Its Discontents - Essay Example This shows that Civilization and its Discontents is a great contributor to the Western cultureÃ¢â¬â¢s literature. Freud commences his reflections with ruminations based on religious values, and tries to bring out responses to the question as to why human beings are possessed with the feeling of being with the passion of construction, oceanic feelings. An in-depth understanding of the reasons as to why Freud describes this type of feeling as oceanic gives two separate explanations: he intended to establish the view of the superstitions, infantile and mystical religious ways which civilization defines as valuable while based on religious thought, and; the scientific, analytic, and rational ways. An assumption made by Freud in this situation is that the entire method of civilization is based on humanÃ¢â¬â¢s conscious analyses of the motives of human life that are not trustworthy, and that people do adopt analytical attitudes and methods which as a result lead to a truer, a healthier understanding of the motives, high levels of consistency, and a summary giving a brief on why and how people do it. The common human characteristics is that people have the notion of religion which they hold so dearly and use it to organize their actions and value-systems, though their grounds for this religion value, based on scrutiny, resulted into being explicable through unconscious psychic drivers and processes. Chapter two of the same book shows how the fact that religion exists is an illustration and a manifestation of infantile origins of human beings in the seeking of a father figure to secure them against the worldÃ¢â¬â¢s pains and depression. Further still, this depicts that civilization has an immensely deep and systematic discontents in the human life, for without them, region would not be a thing of practice since there would be no need for it in eternity. On the contrary, though, there is need for religion since life as it is found by human is quite hard as it brin gs too much pain, impossible tasks, and disappointments. Therefore, for the purpose of keeping by it, human cannot dispense with such palliative measures (Freud, S., 2002, p. 23). These measures are threefold; deflection of needs, intoxicants, and substitutions for needs. To expound on this, Freud moves on to elaborate on the main purpose of life, overhauled in religion. He, in his own perspective, sees no cosmic purpose to the human life but sees an internal psychic purpose upon which anyoneÃ¢â¬â¢s psychic economy is based, as the pursuit of happiness or experience of pleasure. Pleasure principle is denoted by an individualÃ¢â¬â¢s imperative towards the pursuit of pleasure, but the minds pursuit of happiness being in loggerheads with the entire worldÃ¢â¬â¢s happenings. Religion plays an important role of trying to restrict peopleÃ¢â¬â¢s efforts by continuously imposing its moral codes upon people who are naturally characterized to have different ways of trying to negotiate their ways to happiness, even though, the project may entirely experience drawbacks.Ã
Tuesday, October 15, 2019
Mackinsey and Company - Essay Example The challenge is that it is extremely difficult for modern leader-managers to motivate and inspire employees, analyze their needs and meet these needs. Lack of leadership and management skills may lead to a failure, low productivity and poor organizational performance. In modern environment, the main challenge is that leader-manager deals with culturally and economically diverse workforce, so he/she should be well aware of motivational theories and their practical application. Combs (2002) pays a special attention to leadership challenges and motivational problems typical for modern organizations. Motivation is one of the main factors which influence productivity and morale, feelings and human relations in the workplace. There are different theories of motivation which try to explain human needs and intentions, intrinsic and extrinsic drivers. People with a high degree of achievement motivation are more persistent, realistic, and action-minded than people with other kinds of motivat ional patterns. Silva (2005), Schultz (2003) and Meuse and Claire (2007) show that motivation has changed influenced by external and internal stimuli.This does not necessarily make them more productive; that seems to depend on whether the task requires some degree of personal initiative or inventiveness. If it does, the achievement-motivated person is very likely to leave his competitors far behind. A great deal can be learned from the cultural environment if attention is paid to complaints, compliments, surveys, and other opinions of employees and patterns of service demand. Finally, among the factors to be considered as part of the internal organizational environment are the structure of an organization, its history, its distinctive strengths and weaknesses, changes in its values, and its culture. Kiel (1999) and Barak (2000) examine and analyze Mallow's hierarchy of needs and motivation principles. Once basic needs for food, clothing, and shelter are satisfied, he wants friends and to get folksy and group. Once these needs for belonging are satisfied, he wants recognition and respect from his fellowmen and he wants to achieve independence and competence for himself. One approach, widely known by managers, is set out by Abraham H. Maslow in his book "Motivation and Personality". Maslow's theory of motivation claims that human motives develop in sequence according to five levels of needs. These needs are: psychological (hunger, thirst), safety (protection), social (be accepted, belong to a certain group), esteem (self-confidence, achievements, respect, status, recognition), and self-actualization (realizing one's potential for continued self-development). This theory show that needs follow in sequence and when one need is satisfied it decreases in strength and the higher need t hen dominates behavior. This leads to the statement that a satisfied need is not a motivator. There is a doubt whether this really applies in practice to the higher needs as it is likely that self-esteem requires continues stimulation and renewal. Few attempts have been made to test the validity of Maslow's ideas. A big problem is that Bill does not satisfy higher-order needs through their jobs or occupations, and this cannot really be tested. Another point is that he viewed satisfaction as a major motivator and this is not directly related to
Monday, October 14, 2019
Integration Review Essay l. Abstract. After listing author, publisher, and date summarize what you have read as if you were the author boiling down the book into 500-750 tight words. Prove that you comprehend the readings by writing a no nonsense summary. The abstract is not a commentary or listing of topics, but rather a gut-deep insightful `precis` of the longer more elaborate book. Abstract equals boil down David Entwistle, Wipf Stock Publishers, August 2004. Perhaps one of the widely used reference-textbooks in undergraduate and graduate levels throughout the United States, the Integrative Approaches to Psychology and Christianity tackles hard questions that plague many Christians and Mental Health Practitioners concerning the role of Psychology in todayÃ¢â¬â¢s modern and largely Un-Christian world. The book presupposes on what Science and Christianity have in common. Eliminating the arguments on either side to a unified whole and working on it with the eyes of a surgeon, the logic of a philosopher-lawyer, the questioning stance of a scientist, and the heart beliefs of a Christian psychologist, Dr. Entwistle succinctly and ably placed almost all the puzzles in place regarding what is usually regarded as equally competing views on humanity. There is a need for integration; not only for its theoretical applicability but also for its practical usefulness. One of the premises that cannot be argued away at the outset is that the Bible is the only authoritative source for faith and practice. Here, both Christianity, for which it must, and psychology at the basic level must agree. Mainstream psychology or science generally, as we know, does not know that, much more recognize the Bible as authority or as absolute standard. This premise is true for all instances, and the author carefully was able to establish this in his treatise. No doubt as to his grasp of the doctrines contained in the Scriptures that are sufficient to life and its sustenance. Starting with differentiating that which is wholly a biblical worldview and vigilantly avoiding the Ã¢â¬Å"roadblocksÃ¢â¬ that the readers might mistake as something else other than the essentials of Christian beliefs, the author nudges in graduated measures to a clearer understanding of where he intends his reader to reach: which is the integration of these two distinct paradigms. For the author, looking at psychology and/or human behavior and its complexities as a faithful Christian, human individuals are understood as well as coined by different terminologies other than their biblical counterparts. To arrive to a common understanding of the fundamentals of Christianity and to relate that to social science is not an impossible task at all despite the Ã¢â¬Å"wide chasmÃ¢â¬ that had been erected by certain schools of thoughts coming from either side. Presuppositions or philosophical conceptualizations are the pillars of any worldview, and to successfully establish a new one requires that changes or reinforcements be made at this plane. The integrative approaches were framed at this level so as to remove mental oppositions as they arise every time in oneÃ¢â¬â¢s thoughts. When this is not adequately laid down, no audience can align their thoughts or understanding with what the author (i. e. , David Entwistle) tries to convey. According to the author, social science and the basic principles of the Bible do not antagonize scientific findings, in most occasions. They do not come in conflict with each other in most of the ideals. For instance, the psyche or soul and its make up; rather science in a way confirms (as if it needs confirmation) what the Bible long declares. The issue then is not accepting a secular psychology nor accepting a liberal theology; rather it is the accepting of psychology as a discipline science. Narrowing it down, psychology simply tries to study the human mind and how it functions. The Christian mind is the focus of most of the New Testament doctrine and principles. Its sanctification and renewal is one of ChristianityÃ¢â¬â¢s lifelong primary objectives; and it is definitely GodÃ¢â¬â¢s objectives as well as declared clearly in the Scriptures. It is His will for the peopleÃ¢â¬â¢s lives to have their minds changed or renewed. In this standpoint, science very well is able to relate its findings with how the mind works and how man relates these workings in his milieu and/or community. Dr. Entwistle puts aside every seemingly combatant view against psychology in general, and against seemingly narrow Christianity as well; so as to remove doubts to the a feasible and possible integration of psychology and Christianity. Declaring pitfalls of immature faith and pop psychology which respectively, easily captivate enthusiasts and followers alike, the approaches that the author actually took was to set aside what competing worldviews were there and faithfully move to abide to the demands of the Scriptures at the same time embracing the plausible scientific evidences that are emerging in psychology and examining these in the light of a complete revelation of the message of the Scriptures.
Sunday, October 13, 2019
Definitions on the concept of nationalism Nationalism is a concept that is not easily defined. There are numerous definitions and forms of what is nationalism, and many of these definitions even overlap. However, there is no one definition that is more adequate than another. Keeping in mind that these definitions are constantly evolving, with thorough analysis and the juxtaposition of arguments set out by eight prominent scholars, a clearer definition of nationalism can be attained. To begin with, the most well know definition today is from Professor Anthony Smith. He states that nationalism is simply an ideological movement for attaining and maintaining autonomy, unity and identity for a population which some of its members deem to constitute an actual or potential nation (Smith, 2001). In this definition, Smith reveals what he believes the three main goals of nationalism are: autonomy, national unity, and national identity. Even Smiths profound definition has not been available for very long considering he was born in 1933. Although there is much argument on the definition of nationalism, Smith agrees that there is one main point of agreement and that is that the term nationalism is a modern phenomenon (Smith, 2001). Civic nationalism is basically defined as a group of people which have a certain loyalty to civic rights or laws and pledge to abide by these laws. Ethnic nationalism is basically a group that possesses a common culture, language, land, etc. It is more specific in terms of who can be in it (McGregor, 2010). Smith writes that every nationalism contains civic and ethnic elements in varying degrees and different forms. Sometimes civic and territorial elements predominate; at other times it is the ethnic and vernacular components that are emphasized (Smith, 2001). Smiths most popular argument features civic and ethnic types of nationalism as opposed to eastern and western types. Even more specifically, Smith makes the distinction between both civic and ethnic nationalisms. He also believes that Many modern nations are formed around pre-existing, and often pre-modern, ethnic cores (Smith, 2001). Smith is claiming that nations had pre-existing-origins prior to their new origins of their new nation. One of the most important arguments by critics is that the civic and ethnic viewpoint of nationalism collapses too much on the ethnic category (Shulman, 2002). Smiths definition seems to be the foundation for nationalism, although he ce rtainly was not the first to attempt to define it. Other scholars go in to more detail on certain elements of the definition, but most relate back to Smiths original definition. On the contrary to Anthony Smiths definition of nationalism pertaining to the civic and ethnic type, Hans Kohn has argued that the two main types of nationalism are eastern and western. His definition states, Nationalism is a state of mind, in which the supreme loyalty of the individual is felt to be due to the nation-state (Kohn, 1965). Kohns argument includes both eastern and western types of nationalism which refer to Eastern and Western Europe. Eastern nationalism conceived the nation as an organic community, united by culture, language and descent (McGregor 2010). This particular idea could possibly be related to Smiths ethnic type of nationalism. Western nationalism conceived the nation as a political and civic community, held together by voluntary adherence to democratic norms (McGregor 2010). Again, western nationalism could be perceived as a civic type of nationalism. This can be recognized as two similar classifications on two unfamiliar grounds. Kohn believes that national ism relates directly with eastern and western Europe and that it is also where the state of mind of nationalism originated. The main criticism of Kohns classification of nationalism is him being over simplistic. He certainly does not go into as much detail as Smith on the definition. He also relates only towards Europe which is why he is being identified as over simplistic. Next, Carlton J. H. Hayes definition of nationalism states, Loyalty and attachment to the interior of the group (namely the nation and homeland) are the basis of nationalism (Hayes, 1926). In this definition, a common cultural background and a common cultural group are considered the main factors in forming a nation (Naqvi, Ali). That remains true with most of the definitions of nationalism. Hayes definition of nationalism seems to be more specific to the ethnic ties toward nationalism. In other words, Hayes is saying that land, language, and blood are the basis of nationalism. He is saying that nation is something to be proud of (Naqvi, Ali). Hayes also believes that these ethnic qualities are the most important; even religion does not compare. Ã It is attachment to nationality that gives direction to ones individual and social postures, not attachment to religion and ideology. A human being takes pride in his national achievements and feels dependent on its cultural heritage, not on the history of religion and his faith (Hayes, 1926). This quote further proves Hayess view on nationalism and how it relates to ones culture and past, and specifically not related to religion at all. The reason Hayess definition is unique from others, is his emphasis on the fact that religion is not a factor in forming a nation. To further specify Hayess definition on nationalism he says, What distinguishes one human being from another are not their beliefs, but their birth-place, homeland, language and race. Those who are within the four walls of the homeland and nation, belong to it, and those who are outside it, are aliens. It is on the basis of these factors that the people have a feeling of sharing a single destiny and a common past. (Hayes, 1926). This quote goes hand in hand with Hayess definition of nationalism and just further explains it. According to Hayes, nationalism does not exist without that ethnic background. Furthermore, according to scholar Benedict Anderson, nationalism is, a new emerging nation imagines itself to be antique (Anderson, 2003). This is similar to how Anthony Smith and Carlton Hayes defined nationalism. It is mostly like Smiths ethnic nationalism, which focuses more on the origin of the nation. Anderson focuses more on modern Nationalism and suggests that it forms its attachment through language, especially through literature (Anderson, 2003). Of particular importance to Andersons theory is his stress on the role of printed literature (Anderson, 2003). In Andersons mind, the development of nationalism is linked with printed literature and the growth of these printed works. People were able to read about nationalism in a common dialect and that caused nationalism to mature (Anderson, 2003). Andersons definition of nationalism and nation differ greatly from other scholars. He defines nation as an imagined political community (Anderson 2003). He believes this because the nat ion is always conceived as a deep, horizontal comradeship. Ultimately it is this fraternity that makes it possible, over the past two centuries, for so many millions of people, not so much to kill, as willingly to die for such limited imaginings (Anderon, 2003). Not only is Andersons theory distinctive because of the printed literature theory, but also because it is the imagined political community. Another prominent Nationalist researcher, Ernest Gellner states that, nationalism is primarily a political principle that holds that the political and the national unit should be congruent (Gellner, 1983). Gellner was once a teacher of Anthony Smith. Although most scholars would agree that nationalism appeared after the French Revolution, Gellner further argues that nationalism became a sociological necessity in the modern world (Gellner, 1983). His argument is similar to the uniqueness of Benedict Andersons printed literature theory, but Gellner focuses more on the industrialization of work and cultural modernization to explain how nationalism expanded (Zeulow, 1999). Gellner believes that states only exist where there is division of labour, therefore the state comes before nationalism (Gellner, 1983). Like other scholars, Gellner believes that nationalism is a political force. Gellner also stresses the congruency of nation and politics. He does not believe one can occur without the other one. There are many criticisms to Ernest Gellners theory, including Anthony Smith saying, It misreads the relationship between nationalism and industrialization (Smith 1998). Not all of the critics view Gellners theory as a misread. Most agree that he is the father of nationalism studies and most say that his nationalism work was brilliant (University of Wales Press). One can usually relate their definition of nationalism with Ernest Gellner or Anthony Smith. Gellner stresses the importance of the political side, while Smith puts the importance on cultural. Neither are right or wrong, just a difference of opinion. Historian John Breuilly defends a more modern theory of nationalism, similar to Benedict Andersons. In reference to nationalism, he concludes, The rise of the modern state system provides the institutional context within which an ideology of nationalism is necessary (Breuilly 1985). Breuilly argues that the process of state modernization provides an important factor in understanding historical signs of nationalism (Cormier, 2001). Breuilly argues that nationalism does not have much to do with ethnicity or ethnic background, but rather more to do with political motivation. Breuilly is not the first scholar who believed that ethnic background had nothing to do with nationalism. In fact, Breuillys definition relates well to Gellners in the sense that they both argue in favor of political motivation. Nationalists are seen to create their own ideology out of their own subjective sense of national culture. (Breuilly, 1982). This particular quote is quite similar to Andersons imagined polit ical community theory in that Breuilly does not support the ethnic side of nationalism nearly as much as others nationalists. Breuilly criticizes most scholars due to the fact that they believe in national culture because he believes that there is no such thing. He believes that the political component of nationalism is by far the most important. Breuilly indicates in his definition the importance of the state system; hence the political force necessary for nationalism to occur. Next, Michael Hechter defines nationalism as a, collective action designed to render the boundaries of the nation congruent with those of its governance unit (Hechter, 2000). He further explains, Nation and governance can be made congruent by enacting exclusive policies that limit full membership in the polity to individuals from on one more favoured nations (Hechter, 2000). Hechter stresses the importance of the correspondence of the government and the boundaries of the nation; much like Breuilly in the sense that both of them indicate that nationalism requires congruency for it to take place. In Hechters book, Containing Nationalism, he expresses his belief that the reason nationalism occurs is because of self-determination. Hechter further explains his definition and clarifies that there are two different types of nationalism. The first one is of the ideology of freedom and he gives the example of the French Revolution. The second form is xenophobic or even goes as far as genocide (Hechter). This explains where the different views of nationalism come in; civic versus ethnic or eastern versus western. Furthermore, Hechter defines the two different types of nationalism to even more specific forms of nationalism that go beyond his original definition. These definitions include: state-building nationalism, peripheral nationalism, irredentist nationalism, and unification nationalism (Hechter, 2000). Hechter doesnt argue that there are two definitions of nationalism like other scholars do, but he concludes that nationalism is specific to the means of each and every situation. In Peter Alters definition of Nationalism, he states, Nationalism is a political force which has been more important in shaping the history of Europe and the world over the last two centuries than the ideas of freedom and parliamentary democracy or, let alone, of communism (Alter, 1994). His argument is similar to John Breuilly in the sense that he agrees that there is a strong emphasis on nationalism being a political force. Alter is saying that it has everything to do with being a political movement instead of the idea of freedom. In reference to nationalism, Alter states, It can be associated with forces striving for political, social, economic and cultural emancipation, as well as with those whose goal oppression (Alter, 1994). His outlook on nationalism seems much broader than other scholars. This particular reference virtually sums up many scholars definitions together. Alter does not seem to have a specific argument on nationalism, as in civic vs. ethnic or western vs. eastern but just an acceptance that nationalism could be based on all of these arguments. Again, Alter says, It can mean emancipation, and it can mean oppressionÃ ¢Ã¢â ¬Ã ¦ dangers as well as opportunities (Alter, 1994). There is no precise argument when he tries to define nationalism even though he does have the idea that nationalism is directly related to a political force. Alter also states that nationalism was important to shaping Europe, however most scholars agree with that statement to begin with. Most modern scholars would relate to Alters style of defining nationalism. In conclusion, the definition of nationalism is not easily defined and scholars that have tried to define it differ, in some amount of detail, from each other. Each scholar seems to have his own uniqueness and input to the definition, however, these definitions tend to pertain to one certain area of nationalism. According to the eight previous scholars, there are a myriad of styles of nationalism including: political, cultural, ethnic, civic, eastern, and western. Many aspirations are desired because of nationalism, including establishment of homeland, separation, expansion, etc. Although the definition of nationalism is essentially particularistic, scholars have been able to identify a few common ideologies. Some common ground includes; most scholars agree that nationalism started after the French Revolution. They also agree that nationalism occurs because of a desire for national independence. Scholars are always doing research and finding new things which will result in new defini tions. Most of the most protrusive definitions of nationalism have come about in the last fifty or so years, so no telling what scholars might come up with in future years.
Saturday, October 12, 2019
Lifespan Development Ã Ã Ã Ã Ã Going back forty-five years is not an easy task to complete because I canÃ¢â¬â¢t remember some of the finer details of my childhood. I know I was born on a hot August afternoon in Birth Year at Place Of Birth in City ands State. My mother was just twenty-two at the time and was already the mother of two, I was her third child. My father was twenty-one and already a workaholic, I know because my mother would constantly remind me not to be like that. My mother and father were good parents and they tried to give us the best upbringing they could. My father was the kind of person that believed he should provide and protect his family, and he did a very good job of doing that. During my pre adolescent years, as best as I can recall, my mother was the driving influence behind my development. She is a good person and a mother with an iron will and a strict way, and I believe that she was one of my first role models. My father played a part in my development also. He instilled in me the morals and values that I have today and I thank him for that. Unfortunately my father passed away thirteen years ago before I had a chance to tell him that. My brother and sister were influences as well. I have always looked up to my older brother because he was so independent and free as we were growing up. He would always take time and play with me and teach me things, he was the person that actually taught me how to write my name in cursive the first time. My sister...
Friday, October 11, 2019
Abstract This study deals with an analysis of German FDI in China using the OLI framework, an eclectic framework for analysing FDI. Other theories that aid in explaining German FDIÃ¢â¬â¢s motives and prospects in China are the internalisation theory and the product cycle theory. This study is mainly qualitative, using secondary data from existing literature. It suggests that German FDI is guided by internalisation advantages, location-specific advantages, and ownership advantages in its motives and prospects in the Chinese market. The internalisation advantages for German FDI in China include incentives derived from conducting such FDI in the country over other locations or through exporting. Location-specific advantages are identified as cheap, trained labour, export-oriented nature of existing FDI, quality of local infrastructure, access to natural resources, and cooperation agreements with local suppliers and the Chinese government. Ownership advantages, on the other hand, are identified as technology-based infrastructure and management know-how. Introduction This report deals with the analysis of motives and prospects within the OLI framework, focusing on a case study of German foreign direct investment (FDI) in China. To begin with, it is important to define and describe what the OLI Framework is. The OLI framework was developed by Dunning (2010) and is considered an eclectic approach to the study of FDI. It has been a guaranteed viable means to think about MNEs, which likewise paved the way for a range of applied works in economics and international business. Albeit it does not constitute a formal theory in itself, the OLI framework is nevertheless helpful in classifying many recent empirical and analytical studies concerning FDI (Reinert et al., 2009). Foreign direct investment (FDI) has been an important characteristic of globalisation. It is different from portfolio investment since it involves a package of assets and intermediate products and is generally carried out by MNEs (Blanco and Razzaque, 2011). Germany is ChinaÃ¢â¬â¢s mo st important trade partner from Europe. In 2003, German companies were placed as the top European investors in China and were ranked as the seventh largest investors in the country. Albeit the Ãâ 7.9 billion investment of German companies in China comprised a tenfold increase from 1995, this only constituted 1.2 per cent of total German FDI. Most of these investors were manufacturing companies (around 2/3 of all German investors). Some of the pioneer German companies in China are Bayer, Siemens, and Volkswagen, which have been doing business with China for more than a hundred years (Reinert et al., 2009). China has large market potential as proved by about 76 million abundant consumers in the country, which is even larger than GermanyÃ¢â¬â¢s total population. China is also characterised by low-cost assembly line, which serves as a major driver for investing in the country. Apart from it, its WTO membership has been an important driving factor behind German FDI, as WTO enabled ea sier access to ChinaÃ¢â¬â¢s market (Bao, Lin, and Zhao, 2012; Reinert et al., 2009). The issues besetting German FDI in China are the unrelenting legal uncertainties in the country, as shown by the lack of intellectual property rights protection; limited market transparency; the rapidly changing regulatory framework conditions and obstacles; inadequate potential supplier networks; and difficulty in searching for relevant market information due to the problem involving the identification of individual market segments (Reinert et al., 2009). Potential German investments also face high input prices in China, such as high prices for raw materials and electricity, thereby making it all the more difficult to attain profit margins. There is also a rising competition in China in the midst of the growing attractiveness of its market. Given this context, this research intends to look into the intentions and outlook of German FDI in China, using the OLI framework to evaluate them.1.1 Objecti ves of the ResearchThe objectives of the research are described as follows: To analyse the German FDI in China in terms of its motives and prospects within the OLI framework; To describe the theoretical underpinnings surrounding German FDI activities in China; and To analyse how the OLI framework functions as a relevant model for the dynamic development of MNEs and German FDI within the increasingly growing Chinese market. Literature Review This part of the research report presents an array of published works relating to the topic of investigation to give light to the important concepts and to serve as evidence to the claim that may be posited. It also involves a description of methodology and data used.2.1 Methodology and Data UsedThis research is characteristically qualitative, which means that it is value-bound and relies on interpretations. It is predominantly inductive and is carried out in natural settings, discounting the use of quantities and measurements, which are confined within the domain of quantitative research (Klenke, 2008). This research also uses a case study method, which is described as Ã¢â¬Å"the study of the particularity and complexity of a single caseÃ¢â¬ (Simons, 2009: 19), which in this report is the German FDI in China. Case study as this reportÃ¢â¬â¢s research approach acknowledges the tradition in which it is drawn upon, specifically qualitative research (Simons, 2009). Secondary data a re solely used for this report. These are data that have been collected by a person (e.g. an author) and are being used by another (e.g. a researcher) for his/her own purpose (Oleckno, 2008). These data are therefore non-original. In this research report, they are mainly taken from books, academic journals, and relevant online resources relative to the topic being investigated. The search engines used to locate the needed materials are Google, Scholar Google, and Books Google, from which a number of sources have been uncovered. The journal articles utilised from these search engines are published by Wiley and Elsevier.2.2 Literature Review on the Motives and Prospects of German FDI in ChinaAccording to Zhang (2005), ChinaÃ¢â¬â¢s location characteristics would help to understand and appreciate massive FDI in the country. The four determinants of ChinaÃ¢â¬â¢s location-specific factors for the influx of FDI are its export-promotion strategy for FDI, its dominant availability of che ap labour, and export-orientation of FDI injected by the countries entering China. In the case of Hong Kong and Taiwan, unique links with China (the Chinese connections) are important determinants. The study uses a qualitative method and a case study design in dealing with the subject matter. Its applicability to the topic under investigation is seen in its direct focus on FDI in China and how China has flourished as a location for countries to engage in FDI. The limitation posed by the study is its emphasis in Hong Kong and Taiwan and does not include German FDI, which does not however mean that the study is already totally irrelevant. In the work of Chen and Reger (2006), German FDI in China has been described as one that has grown larger in size and of higher quality (alongside related technological activities), with long-term motives and broad market orientation. German FDI also seeks new markets and expands market shares within China. The authors second ZhangÃ¢â¬â¢s (2005) ea rlier claim for FDI determinants in China, such as cheap, abundant labour, and export orientation; and added some more, including ChinaÃ¢â¬â¢s huge domestic market, access to natural resources, and enforced tax incentives. The research approaches used by the authors include a mail survey and a database analysis. The work is applicable to the present study because of its emphasis on the nature of German FDI in China. In a separate study by Pikos (2013), the author presents an investigation of the consequences of FDI for German companies in China. The author highlights the differences amongst the following: FDI in China, FDI elsewhere, and exporting. When size and sector activity are controlled, attributes to FDI in China include turnover, employment, net income, profit margins, and total assets, to name some. Albeit performance is boosted through FDI elsewhere, this is however on smaller scale. It is noted that investing in China results in better outcomes than doing FDI in another country, and this is due to ChinaÃ¢â¬â¢s large and rapidly growing market. The methods used by Pikos (2013) are descriptive and econometric analysis in order to address the research topic. The applicability of the work to this research is its description of German FDI in China, thereby aiding the research to give light to the topic. A limitation of the study is its focus on location-specific factors for FDI. On the other hand, Zhang and van den Bulcke (1999) state that the expansion of FDI and its embodied technology are two of the key forces that molded the development of the Chinese automotive industry. Germany is an important source of inward FDI in ChinaÃ¢â¬â¢s automotive industry, third to Hong Kong and the United States respectively. FDI in the automotive industry during the 80s was highly focused on the assembly of whole vehicles. In the 1990s, FDI became highly concentrated on the manufacturing of parts and components. Since the Chinese government in the 1990s had stric t control of the Greenfield investment projects for whole vehicle manufacturing, the latecomers encountered quite high entry barriers since dominant positions were already occupied by early movers. European automotive multinationals strongly influenced the restructuring of ChinaÃ¢â¬â¢s automotive industry since the 80s. Moreover, ChinaÃ¢â¬â¢s European car manufacturers have engaged in cooperation agreements with the Chinese government and local suppliers and often extend technical and financial assistance to local suppliers. An example of this is a 5-billion Chinese Yuan contribution of Shanghai Volkswagen for localisation funds (Zhang and van den Bulcke, 1999). The approach of Zhang and van den BulckeÃ¢â¬â¢s (1999) study is chronological, mainly basing from existing secondary literature. The study is relevant and applicable to the topic under investigation as it provides useful and sufficient insights on the nature of the Chinese automotive industry and the chronological deve lopment of European FDI in the country, which can aid in analysing the current motives and outlook of German FDI in China. The research limitation is bounded within the studyÃ¢â¬â¢s concentration on the Chinese automotive manufacturing industry. Analysis and Discussion The analysis and discussion provided for this research report is anchored on the literature review being carried out for German FDI in China.3.1 Analysis of German FDI in China Using the OLI FrameworkThe OLI Framework pertains to the three potential sources of advantage; namely Ownership, Location, and Internalisation, that lie beneath an organisationÃ¢â¬â¢s decision to enter into a multinational level of operation. Ownership advantages explain the reason/s why firms operate abroad whilst others do not, and indicate that successful multinational enterprises (MNEs) possess firm-specific benefits that enable them to overcome the costs entailed in operating in a foreign country. Location advantages, on the other hand, concentrate on the location aimed by an MNE (Reinert et al., 2009). Access to natural resources serves as a location advantage for choosing China for which to invest, as in the case of German FDI. Additional determinants of location selection for FDI are availability of cheap trained labour (e.g. Chen and Reger, 2006; Pikos, 2013; Zhang, 2005) and quality of local infrastructure (Tang, et al., 2012). Other critical factors are a smooth relationship with Chinese authorities, both central and local; and experience to cope with Chinese bureaucracy (Tang, et al., 2012). Such relationship is the bottom line for German FDI to engage in cooperation agreements with the Chinese government and local suppliers, as earlier highlighted by Zhang and van den Bulcke (1999). Zhang (2005) also highlighted in his work that ChinaÃ¢â¬â¢s location characteristics would help to understand and appreciate massive FDI in the country. Internalisation advantages Ã¢â¬â another embodiment of the OLI framework Ã¢â¬â provide the influence on how a firm decides to operate abroad, making a trade-off between transaction savings and monitoring costs of a completely-owned subsidiary, on one hand; and the advantages of other forms of entry, such as joint venture and exports, on the other. A main characteristic of this approach is that it provides emphasis on the incentives for the individual firm. Mainstream international trade theory has considered this a current standard, which was not the case in the 1970s when FDI was classically regarded as an international movement of physical capital in pursuit of higher returns (Reinert et al., 2009; Taliman, 2007). The internalisation advantages embodied in the OLI framework are also found in the study of Pikos (2013) in the literature review, which magnifies the differences amongst conducting FDI in China, elsewhere, or through exporting, apparently aiming to ascertain the incentives that can be gained from choosing the most suitable out of the three options. The OLI framework is in fact an eclectic paradigm that provides a general theoretical framework for ascertaining firmsÃ¢â¬â¢ FDI activities beyond their national borders. The eclectic paradigm is an analytical theory that accommodates other FDI theories a nd views most of the theories as having complementariness with each other (rather than having substitutability) of which their application can be fully enhanced (Tang et al., 2012). Internationalisation theory is one of the general theories of FDI, which views a MNE as an organisation that engages in utilising its internal market to produce products and distribute them efficiently in situations where a regular market encounters failure of operation. In effect, the internationalisation theory regards MNES taking on FDI activities abroad as a way to respond to goods and factor market imperfections, which have in fact prevented international trade and investment to operate efficiently (Tang et al., 2012). Through FDI, MNEs are able to produce and distribute their products via internal markets, thereby enabling them to optimise efficient production and improve the total profits. This notion must also constitute the motives and prospects for German FDI to conduct business in China. It mu st be noted that a MNE only employs FDI if the cost is outweighed by the benefits (Suneja, 2006; Tang et al., 2012). Worthy of note is the idea that in the lens of the internationalisation theory, knowledge, information, and research are intermediate products to be readily and directly traded to other countries due to the risk of loss of knowledge advantage (Rugman, 2002). However, MNEs possess vertical and horizontal integration, enabling the creation of their own internal markets, whereby intermediate products such as technology know-how are converted as a firmÃ¢â¬â¢s valuable property. This reflects the ownership advantage embodied in the OLI framework, as discussed by Reinert et al. (2009) and Taliman (2007). Hence, as the MNE sustains its competitive advantage, its ownership such as management know-how can be utilised and bolstered (Tang et al., 2012). The Uppsala Model looks at the internationalisation process as cyclic, experiential, and resource-based learning-by-doing, wh ich seems to foresee later research flows regarding dynamic capabilities and temporary competitive advantages with the internalisation framework (Sanchez and Heene, 2010). Based on the analysis, the internationalisation theory cannot in fact be seen as a separate body of thought from the OLI framework because it has a similar trail with such framework in relation to understanding the motives of a MNE (e.g. German firm) and its outlook to engage its FDI in a country like China. Meanwhile, the product cycle theory describes the so-called Ã¢â¬Ëwild geese flyingÃ¢â¬â¢ patterns of foreign trade to explain the different economic development phases of countries. This theory cites three phases of industrial development with which each country attempts to elevate itself o the top phase of industrialisation. The theory says that the mature phase takes place once industrialisation development has been extensively laid down over the entire region or country with robust dynamic growth (Tang et al., 2012). It is interesting to consider that the OLI framework may be fastened over the product cycle theory in analysing German FDI in China, and that the relevance of the framework cannot be set aside when the chronological developments involved in the industrialisation process are taken into account. The applicability of the twin analysis of OLI framework and the product cycle theory is seen in Zhang and van den BulckeÃ¢â¬â¢s (1999) study, which uses chronological discussions to describe the growth of European FDI in China, and cites the ownership-specific, location-specific, and internalisation-specific factors of European firms (e.g. German firms) to invest in the Chinese automotive sector.4. ConclusionThis research report deals with analysing the motives and prospects of German FDI in China within the OLI framework. The OLI framework is an eclectic framework that accommodates other theories of FDI and explains the intentions and outlook of MNEs to engage in FDI in China . The motives and prospects of German FDI to continuously seek to invest in Chinese market is propelled by internalisation advantages (e.g. incentives through conducting FDI in China rather than elsewhere or through exporting); location-specific advantages (e.g. cheap trained labour, export-orientation of FDI; access to natural resources; quality of local infrastructure; cooperation agreements with the central and local governments and local suppliers); and ownership-specific advantages (e.g. management know-how; technology-based infrastructure). The rapidly growing globalised market ushers the German FDI to continuously seek newer FDI prospects within China, beset by the growing competition and search for competitive advantages. References Bao, S., Lin, S., and Zhao, C. (2012) The Chinese Economy After WTO Accession. England, Ashgate Publishing Limited. Blanco, E. and Razzaque, J. (2011) Globalisation and Natural Resources Law: Challenges, Key Issues and Perspectives. Glos: Edward Elgar Publishing Limited. Chen, X. and Reger, G. (2006) The Role of technology in the Investment of German Firms in China. Technovation, 26 (3), 407-415. Dunning, J. H. (2010) New Challenges for International Business Research: Back to the Future. Glos: Edward Elgar Publishing Limited. Klenke, K. (2008) Qualitative Research in the Study of Leadership. Bingley, IWA: Emerald Group Publishing Limited. Oleckno, W. A. (2008) Epidemiology: Concepts and Methods. IL: Waveland Press, Inc. Pikos, A. K. (2013) German FDI in China: Consequences for FirmsÃ¢â¬â¢ Performance (Published Thesis]. Denmark: Aarhus School of Business, Aarhus University. Reinert, K. A. and Rajan, R., Glass, A. J., and Davis, L. S. (2009) The Princeton Encyclopedia of the World Economy. Oxfordshire: Princeton University Press. Rugman, A. M. (2002) International Business: Theory of the Multinational Enterprise. New York: Routledge. Sanchez, R. and Heene, A. (2010) Enhancing Competences for Competitive Advantage. First Edition. Bingley, IWA: Emerald Group Publishing Limited. Simons, H. (2009) Case Study Research in Practice. First Edition. London: SAGE Publications Ltd. Suneja, V. (2006) Understanding Business: A Multidimensional Approach to the Market Economy. New York: Routledge. Taliman, S. B. (2007) A New generation in International Strategic Management. Glos: Edward Elgar Publishing Limited. Tang, S., Selvanathan, E. A., and Selvanathan, S. (2012) ChinaÃ¢â¬â¢s Economic Miracle: Does FDI MatterGlos: Edward Elgar Publishing Limited. Zhang, K. H. (2005) Why Does So Much FDI From Hong Kong and Taiwan Go to Mainland ChinaChina Economic Review, 16 (3), 293-307. Zhang, H. and van den Bulcke, D. (1999) The restructuring of the Chinese Automotive Industry: The Role of Foreign Direct Investment and Impact of European Multinational Enterprises. Belgium: University of Antwerp. Analysis Of Motives And Prospects Within The Oli Framework: A Case Study Of German Fdi In China Introduction There are a number of theories that explain motives and prospects of FDI. OLI framework is the one that is most widely used by economists. According to OLI, there have to be advantages that can offset costs of making direct investment abroad. In this paper we apply the OLI framework to understand the motives behind German FDI in China. A case study of Volkswagen China is conducted to show the application of OLI in practice, and to demonstrate why FDI abroad can be a success story despite all the difficulties a company faces in a foreign environment. Literature Review One of the earliest theories explained FDI in terms of market imperfections. Kindleberger (1969) argued that for companies to gain advantage by investing abroad market has to be imperfect . If we assume that markets are perfect there is nothing foreign companies can exploit to make enough profits that will offset costs and risks associated with investing abroad (Kindleberger 1969).. The concept of firm-specific advantages was introduced to explain how market imperfections lead to foreign investment. Among these advantages are superior technology and marketing (Caves 1971), cheap labour (Grubel 1968), management skills (Wolf 1977), and exclusive access to natural resources (Lall and Streeten 1977). . Only when a foreign company possesses these firm-specific advantages can it successfully invest and become a major player in a foreign market and compensate for the disadvantages of being foreign in the country of its operation (Hymer 1976). VernonÃ¢â¬â¢s product life cycle is another major FDI theory that tries to explain motives and the rationale behind FDI. Vernon (1966) dissected product life cycle into three distinct phases Ã¢â¬â innovation, maturity and standardisation Established companies in developed economies invest in new projects to design innovative products that will sell in future and guarantee a new profit channel for them. When a new product is designed, it is sold in the domestic market. Consumers gradually get used to it and demand new products. This leaves the company with two not mutually exclusive choices Ã¢â¬â get back to the innovation phase and design something new, or go abroad and produce the same products there. Going abroad is sometimes a better choice because foreign producers (such as China) start to imitate the existing product and become so good at it that the differences with the original become marginal (Vernon 1966). A later theory developed by Dunning (1977) has become widely used in attempts to understand the motives behind FDI. The theory became known as OLI: Ownership, Location and Internalisation. All three elements should be present in order for FDI to occur. This theory will be explained in greater detail in a separate chapter of this paper. Theoretical FrameworkDefinition of FDIAccording to the Organisation for Economic Co-operation and Development (OECD) (2008) 4th Edition of Benchmark Definition of FDI, FDI is Ã¢â¬Å"a category of cross-border investment made by a resident entity in one economy (the direct investor) with the objective of establishing a lasting interest in an enterprise (the direct investment enterprise) that is resident in an economy other than that of the direct investorÃ¢â¬ . Companies carry out FDI because they want to have direct control over their enterprise. This is what makes FDI different from portfolio investments which usually result in an ownership of less than 10 per cent of a foreign companyÃ¢â¬â¢s capital. Hence the investor does not have real control over the foreign company (OECD 2008). Mergers and Acquisitions (M&A) and Greenfield investments are the two different types of FDI. The choice between them has different implications for the parties concerned. M&A happen when an existing company is bought out by a foreign firm. In contrast Greenfield investments are investments into new assets. For developing economies, including China, M&A are more common, for developed economies like Germany Greenfield investments are a popular choice (Shatz and Venables 2000). FDI are divided into horizontal and vertical; only in a few cases do the two occur simultaneously. Horizontal FDI occurs when a company invests in a firm built to serve the foreign market (Shatz and Venables 2000). . This foreign firm then performs the same activities as the host firm does in its own domestic market. With vertical FDI, the production cycle is fragmented so that each phase can be completed in a country where it can be done cheapest of all (Shatz and Venables 2000). OLI Framework The OLI framework is a theory that explains motives and the rationale behind multinational corporationsÃ¢â¬â¢ (MNCs) decision to choose FDI instead of licensing use of their name or product to foreign producers or sellers (Lynn 2008). . FDI is a foreign investment so, for it to occur, the investing firm has to acquire assets in a foreign country. FDI is called direct investment because it results in a direct and real control over the acquired capital. MNC acquires a right to produce what it wants in a foreign country and decide where it wants to sell the product. As explained above, the whole product (horizontal FDI), or parts of it (vertical FDI), can be produced in a foreign country based on the considerations of cost-effectiveness (Shatz and Venables 2000).. FDI occurs because there are advantages to it. The first one is ownership advantage which stands for Ã¢â¬Å"OÃ¢â¬ in the OLI abbreviation. There has to be some advantage to owning the foreign asset. These can be lower costs, greater reputation, or swifter transition to a foreign market. Take for example Apple. The company has a reputation for high quality products so by owning a production facility in a foreign developing country it can still make profits that will offset costs of FDI (Lynn 2000). . Ownership advantage alone is not enough for FDI to occur. Here is when the Ã¢â¬Å"LÃ¢â¬ comes into play. Ã¢â¬Å"LÃ¢â¬ denotes the location advantage. A less costly labour force, access to the natural resources needed in manufacturing and a better geographic position (which leads to more efficient logistics), are some of the location advantages that can make companies seriously consider investing abroad (Lynn 2000). . Again this is not enough for FDI because everything described above can be achieved by brand licensing or through establishing joint ventures. FDI needs a third element Ã¢â¬â internalization, or control, advantage. This is the Ã¢â¬Å"IÃ¢â¬ in OLI. When it is believed that MNC can lose market share in case another company gets access to the same asset, FDI becomes the only choice available (Lynn 2000). . It is known that at some stage, foreign producers start copying products produced in the developed world and when they do it they are able to offer cheaper prices thus outperforming foreign producers in sales. To prevent this scenario many companies prefer to go with FDI and gain exclusive control over their assets. Methods and Data In this research, we conduct a critical review of the main theories of FDI, paying special attention to the OLI framework. While we acknowledge the importance of OLI in understanding international business and FDI in particular, we provide a short overview of criticisms of the paradigm so that readers have an understanding of the potential limitations of this research. A case study of German car manufacturer Volkswagen is used as a method of understanding FDI under the OLI framework as applied to the German investor interest in China and the two countryÃ¢â¬â¢s bilateral economic relations. Additionally, we use statistical information to put some numbers into perspective and cite a research by Deutsche Bank which includes some forecasts as to the future of German FDI in China. Volkswagen (VW) Case Study Volkswagen was founded in 1937 (Datamonitor 2011). The name of the brand translates as Ã¢â¬Å"the car of the peopleÃ¢â¬ (Datamonitor 2011).. Volkswagen is represented in China through two ventures Ã¢â¬â with Shanghai Automotive International Company founded in 1985 and with First Automotive Works started in 1990 in Changchun (VW Annual Report 2010). VW has always regarded China as an important market. Today, there are 9 production facilities in China and 2 more are planned. VWÃ¢â¬â¢s target is to sell 3 million cars per year. Through 2015 VW is set to invest a total of 10.6 million euro to expand its production in China. VW is actively involved in producing electric vehicles in China. Both E-Golf and E-Lavida were presented in China and the first electric test was made here in 2011. VW is also set to produce a new brand specifically for the Chinese fast-paced economy (VW Annual Report 2010). Volkswagen Analysis Based on the OLI ParadigmOwnership advantageVW is one of the worldÃ¢â¬â¢s most successful car manufacturing companies and, as such, it has a lot of advantages. VW is known in Europe for its technological advances and efficient production system. VW brand is strong all over the world. Many consumers associate vehicle design innovation, cost-effectiveness, and high safety standards with VW and consider it as their first choice when making decisions on buying a vehicle (VW official website 2011). Not surprisingly, VW had a competitive advantage over all Chinese manufacturers at the time of the entry into the market (VW official website 2011). In fact, VW is still superior to any of the Chinese car producers. VW exploited its technological dominance and increased its brand recognition. Chinese consumers were happy with the product offered and enjoyed VWÃ¢â¬â¢s presence in their country. Currently, VW strives to adjust its technology to meet changing customer need s and develop sustainable models for future (Yu 2010). .Location advantageVWÃ¢â¬â¢s joint venture in Shanghai was the most successful car enterprise in China at the time it was established in 1985 and it retains the top position today (Li 2000). . Locating in China, and Shanghai in particular, was the best possible decision for VW in terms of location because the region is rapidly developing and the peopleÃ¢â¬â¢s life standards are improving. Shanghai is the most densely populated and prosperous city in China and it has close ties with the central part of the country (Li 2000). Products from Shanghai are considered to have high quality across China and do not face any obstacles due to local protectionism. It should be also noted that at the time VW entered China it received many incentives and support from the government. The government still stimulates the automobile industry to increase domestic sales and contributes to the development of the sector. Thanks to these location a dvantages, VW China became a success and continues to be a source of decent income for the parent company (Li 2000)..Internalization advantageVW had the first moverÃ¢â¬â¢s advantage which helped it to become a major player in the new market. The company managed to take control over the major share of the Chinese market and realise all its ownership advantages. This first mover advantage till today helps VW to be very competitive with regards to Japanese and American rivals. To retain its market share, VW continues to innovate according to the changing tastes of the Chinese consumers and requirements to reduce the strain on the environment resulting from manufacturing and exploitation of automotive vehicles (VW official website 2011).Future of German Interest in ChinaChina has attracted German interest more than any other emerging country since 1997 (Deutsche Bank Research 2004). German companies explain their excessive interest in China by citing the countryÃ¢â¬â¢s huge market p otential. In 2001 there were about 76 million prosperous consumers in China Ã¢â¬â a population that is worth FDI in any country despite possible barriers and foreign culture-related challenges (Deutsche Bank Research 2004). This number of prosperous consumers in China is greater than the total population of Germany and it is set to increase tenfold by 2015. The second most important argument for German FDI in China is the Ã¢â¬Å"extended low-cost assembly lineÃ¢â¬ (Deutsche Bank Research 2004). Cost has always been one of the most important considerations in business decision-making.. Heated global competition for competitive advantage and market shares across virtually all industries means that companies need to find cheaper options for manufacture. China is often the best solution because of the low-cost labour force it offers. Not surprisingly, Germany, alongside other strong economic powerhouses, chooses China as a low-cost manufacturing site and actively invests there (D eutsche Bank Research 2004). Another reason for German FDI is the growing economy of China and its potential to become a dominant power. Germany has to defend its interest in a country which is set to become a global leader with an over 1 billion of potential buyers of products and services. Of course, China is a completely whole new world for German businesses that has to be explored until there is sufficient understanding required for making informed decisions. Usually, most foreign companies entering China lack information vital for their success and have to be quick to adapt or risk becoming a failure. China cannot be considered Ã¢â¬Å"one country Ã¢â¬â one marketÃ¢â¬ . It is bigger than both Eastern and Western Europe put together (Deutsche Bank Research 2004) and it is naive to think that one product design or pricing strategy will work across the whole country (Deutsche Bank Research 2004). Hence a lot of prior planning is required (Deutsche Bank Research 2004). Among other obstacles that can potentially deter German interest in China are high input prices. There are a lot of protectionism locally, and also many logistic and bureaucratic inefficiencies that are not easy or cheap to overcome. Moreover, the global prices for raw materials and energy resources a re growing which adds to the cost of production even in China (Deutsche Bank Research, 2004). The final commonly-cited obstacle to German interest in China is the heated competition amongst different foreign companies coming from such developed nations as USA, Canada, and Australia. Everyone knows about advantages of investing in China and hence there is a lot of competition for assets and control over the market.Criticism of OLI frameworkThe OLI framework offers a very useful insight into the motives and the rationale behind FDI. The paradigm has evolved over the time to adapt to changes in the way international business is conducted (Narula 2010). Critics of the theory argue that because of expansion of OLIÃ¢â¬â¢s application to all MNE-related phenomena, it now risksbecoming tautologous (Narula, R. 2010). Narula proposes a return to the classic OLI framework and using alternative theories to understand the more complex new developments rather than internalising everything so th at it fits OLI. Narula acknowledges the importance of OLI in early research on the international business and FDI, but argues that it is not suited for explaining everything that happens in business (Eden 2003). In fact, it is becoming cumbersome to apply OLI to understanding international business, as the latter has became complex (Eden 2003).There is a need for new frameworks. OLI can still be a valuable tool in understanding some aspects of international business and FDI, but should lose its dominance in the academic community (Narula, R. 2010). Conclusion German interest has been present in China for almost half a century. Because Chinese market is huge and has a big growth potential, German companies are likely to look for more opportunities there. Before a decision to invest is made, companies always asses its prospects. OLI framework is often used to see whether FDI is justified. OLIÃ¢â¬â¢s critics now say that there should be some additional analysis involved in decision-making, because, as good as the paradigm is, it still cannot explain every complex aspect of international business. References Caves, R. (1971). International Corporations: The Industrial Economics of Foreign Investment. Economica, Vol. 38, pp. 1-27 Datamonitor (2011). Automotive Manufacturing in China http://360.datamonitor.com.www.baser.dk/Product?pid=10C672D5-7559-4A0A-90B3-5EFBDF97D73C [accessed 31 March 2014] Dunning, J. (1977). Trade, location of economic activity and the multinational enterprise: A search for an eclectic approach. University of Reading diuscussion papers in international investments and business studies, no. 37 Eden, L. (2003). A Critical Reflection and Some Conclusions on OLI. Vox Professori. http://www.voxprof.com/eden/Publications/Eden-Reflections-on-OLI-2003.pdf [accessed 1 April 2014] Foreign Direct Investment in China Ã¢â¬â Good Prospects for German CompaniesChina Special (2004). Deutsche Bank Research. http://www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000196028.PDF [accessed 30 March 2014]Grubel, H. (1968). Internationally Diversified Portfolios: Welfare Gains and Capital Flows. American Economic Review, Vol. 58, pp. 1299-1314. Hymer, S. (1976). The International Operations of National Firms: A Study of Direct Investment. PhD Thesis. Massachusetts Institute of Technology Kindleberger, C. (1969). American Business Abroad: Six Lectures on Foreign Direct Investment. Yale University Press Lall, P. and Streeten, S. (1977). Foreign Investment, Transnationals and Developing Countries. London: Macmillan Li X. (2000). Foreign Direct Investment in China: The Importance of Market Entry Timing. The Haworth Press, Inc Lynn, W. (2008). The OLI Framework Temple University. Lecture Notes. http://astro.temple.edu/~pippin/oli.htm [accessed 30 March 2014] Narula, R. (2010). Keeping the eclectic paradigm simple: a brief commentary and implications for ownership advantages. United Nations University. Working Paper Series. https://www.google.com/#q=Narula%2C+R.+(2010).++Keeping+the+eclectic+paradigm+simple%3A+a+brief+commentary+and++implications+for+ownership+advantages [accessed 30 March 2014] OECD (2008). OECD Benchmark Definition of Foreign Direct Investment, 4th Edition, pp. 1-241 Shatz, H. and Venables, A. (2000). The Geography of International Investment. Policy Research Working Paper, Vol. 2338, The World Bank, Washington, D.C. Vernon, R. (1966). International investment and international trade in the product cycle. Quarterly Journal of Economics, Vol. 80, pp. 190-207 Volkswagen Annual Report (2010). http://www.volkswagenag.com/vwag/vwcorp/info_center/en/publications/2011/03/Volkswagen_AG_Geschaeftsbericht_2010.-bin.acq/qual-BinaryStorageItem.Single.File/GB_2010_e.pdf [accessed 31 March 2014] Volkswagen official website (2011). With a new sales record Volkswagen Group China, http://www.volkswagenag.com/vwag/vwcorp/info_center/en/news/2011/01/With_a_new_sales_record_Volkswagen_Group_China.html[accessed 31 March 2014] Wolf, B. (1977). Industrial Diversification and Internationalization: Some Empirical Evidence. Journal of Industrial Economics, Vol. 26, no. 2, pp. 177-191. Yu, Q. (2010). BlueMotionÃ¢â¬â¢ powers VW to save energy, boost sales. http://www.chinadaily.com.cn/business/2010-12/20/content_11728087.htm [accessed 31 March 2014] Additional Resources Chunlai, C. (1997). The Location Determinants of Foreign Direct Investment in Developing Countries. The University of Adelaide. http://www.rrojasdatabank.info/97_12.pdf [accessed 30 March 2014] China (2013). German Federal Foreign Office. http://www.auswaertiges-amt.de/EN/Aussenpolitik/Laender/Laenderinfos/01-Nodes/China_node.html [accessed 30 March 2014] Franco, C., Rentocchini, F., Marzetti, G. (2008). Why Do Firms Invest AbroadAn Analysis of the Motives Underlying Foreign Direct Investments. University of Bologna and University of Trento. http://www.etsg.org/ETSG2008/Papers/Franco.pdf [accessed 30 March 2014] World Economy FDI: The OLI Framework. University of Oxford. http://users.ox.ac.uk/~econ0211/papers/pdf/fdiprinceton.pdf [accessed 30 March 2014]
Thursday, October 10, 2019
1. Exploratory research is a form of research conducted for a problem that has not been clearly defined. It helps determine the best research design, data collection method and selection of subjects. Even from the definition of exploratory research we can see, that it is done in order to define the problem and to help understand in which direction the further research should go. Exploratory research is preliminary, and is not conclusive, the quality of information provided is not perfect, and also the focus group chosen(40people) was not really representing the whole of the students at West coast. Therefore they should not yet implement the findings, because the data provided by 40 students might not be applicable to all student at West coast. 2. The problem Pizza Heaven has faced is that their sales have slipped. That could be due to competition from national chains such as Pizza Hut or DominoÃ¢â¬â¢s, so questions about competition should be asked. (Because potential clients might like something about the competitors more e. g.pizza itself, delivery, atmosphere in restaurants) Ã¢â¬Å"also, they noted that the selection was often poorÃ¢â¬ Sales could have slipped, because of the range of products Pizza Heaven offers, so that topic has to be covered as well, including questions about new possible pizzas. (Because it may be that competitors are offering some types of pizza that Pizza Heaven donÃ¢â¬â¢t have) A decrease in sales can also be due to poor customer service, so that topic should also be covered. People said that Ã¢â¬Å"pizzas were usually dry and coldÃ¢â¬ why? maybe delivery took too long, that should be explored in more details. 3. Step One: Establishing the Need for Marketing Research The need is already established, as there is a decrease in sales Step Two: Defining the Problem So the problem is a decrease in sales, due to what ? Step Three: Establishing Research Objectives Hard Competition? Poor range of products? Need better customer service? those are the questions to ask. Step Four: Determining Research Design. Descriptive and Causal Research should be done. Step Five: Identifying Information Types and Sources Primary data should be collected, but also secondary data could be of a little use, for example if the sales dropped overall and not only by Pizza Heaven, due to crisis or some other reason Step Six: Determining Methods of Accessing Data We should have people asking the question, and also questionnaires coming with each pizza could help. Step Seven: Designing Data collection Forms Can be questionnaires(must be worded objectively, clearly, and without bias in order to communicate with respondents), surveys, or both can be done through email (although there is only a 5% response rate) Step Eight: Determining Sample Plan and Size Sample Size should surely be more than 40 people from one location. Also a sample should be representative, e. g. not only student of age 18-20, but also every other age groups. Step Nine: Collecting Data Step Ten: Analyzing Data Step Eleven: Preparing and Presenting the Final Report.