Lml Swot Analysis Essay Example for Free

Lml Swot Analysis Essay LML Ltd is an India-based Company that manufactures, sells and exports motorized two wheelers. The company operates in one segment, namely motorized two wheelers. They offer scooters, motorcycles, and mopeds, as well as spares and accessories. They are having their manufacturing facilities located at Kanpur in Uttar Pradesh. LML Ltd was incorporated in the year 1972 as Lohia Machineries Ltd to manufacture machinery for the synthetic fibres industry. In the year 1983, the company commenced production of 100 cc scooters in technical collaboration with Piaggio VE, SpA, Italy. In the year 1984, the company incorporated a new company under the name and style of Vespa Car Company Ltd to manufacture 200,000 scooters and 50,000 three-wheelers annually. STRENGTH Vespa is an Italian line of scooters manufactured by Piaggio. The Vespa has evolved from a single model motor scooter manufactured in 1946 by Piaggio Co. S.p.A. of Pontedera, Italy—to a full line of scooters and one of seven companies today owned by Piaggio—now Europes largest manufacturer of two-wheeled vehicles and the worlds fourth largest motorcycle manufacturer by unit sales. Known for their painted, pressed steel unibody which combines a complete cowling for the engine, a flat floorboard , and a prominent front fairing , The Vespa was the first globally successful scooter. ï‚žVespa first came to India in 1960 with a collaboration with Bajaj Auto. ï‚žThe technical collaboration ended in 1971 and Bajaj and Vespa parted ways. ï‚žVespa at that time was considered an iconic scooter brand globally and the brand was owned by Piaggio. ï‚žPiaggio then joined hands with the Kanpur based Lohia Machines Ltd ( LML) in 1983 and started to roll out the Vespa range of Scooters. ï‚žBy that time Bajaj was ruling the market with the iconic Chetak . WEAKNESS Opportunities and Threats LML stands for the highest standards of technical expertise, product innovation and has one of the ï ¬ nest R D capabilities, particularly relating to designing, rapid prototyping, CAD CAM, tooling and industrialization. It is harnessing these strengths and its vast experience in the two-wheeler business coupled with a aggressive business strategy for  its revival and turnaround. The Company is perhaps the ï ¬ rst in the world to obtain Euro III certiï ¬ cation for its 2-stroke vehicles and subsequent to restart, it has also received the upgraded ISO 9001-2008 certiï ¬ cation from DNV.

Economic Effects of Immigration

Economic Effects of Immigration Moon Kyung Jung A trend that existed long time ago and still nowadays that people tend to move from one place to another in order to achieve better conditions of living and profits. Disregard the size, for many reasons immigrations occurred from several places. Of course the immigration occurs from less developed countries (LDCs) to more developed countries like the U.S. [1] As the immigration process concentrates in place such as the U.S. will affect that country in many ways. The immigrants from LDCs disproportionately have little schooling, so school system might be affected. Also, most of immigrants are mostly unskilled workers, so it would affect the low-wage labor market, but affect high-wage markets. As well as the ratio of exports and imports to GDP has risen as well, and an increasing proportion of imports have come from LDCs.[2] However, immigration does not only bring positive effects to a country, but also brings negatives at the same time such as security problems.[3] Throughout this pa per, I will focus on both positives and negatives. This paper has three sections. First section will discuss about the effects of immigration on the U.S. labor market. Second section will discuss about the effects, both on social and economic levels. And last section will discuss about the changes in politics and effects of immigration to them. Will immigration affect the markets? Yes, it definitely will because the market is a place where human interactions are happening and immigrants are part of the societies and they become to involve in the market as they revert. There are so many markets that immigrants can affect, but I will mostly focus on the labor market. There was a significant rise in immigration and trade in the U.S. since the 1960s.[4] Since then, the major impulse for the increased inflow of legal immigration from less developed countries was the 1965 Amendments to the Immigration and Nationality Act.[5] There were many reasons why people sought the U.S. as a place to immigrate. The simplest reason is the huge wage differential between the U.S. and border countries like Mexico and this also increased illegal immigrants.[6] During the few decades after the Act, the U.S. faced a significant increase in the population pool that from 1970 to 1996, the number of foreign-born persons increased by 15 million, raising the foreign-born share of the U.S. to 9.3 percent in 1996.[7] Many immigrants first settled in the six main immigrant-receiving states: California, New York, Texas, Florida, New Jersey and Illinois, but soon spread out by 1990s.[8] Because of the most immigrants were in the adult population (aged 18 to 64), the effect of im migration on native labor was huge, mainly in these six states during the decades.[9] The effect on native labor depends crucially on the skill distribution between immigrants and natives. Basically, if the immigrants are skillful as the natives then both groups are in the same skill-match that there will be no change in the structure of wages. By contrast, if immigrants are not skillful as the natives, then the wages will tend to concentrate to skillful workers and will shift the distribution of income toward the more of the natives, and the opposite will happen if the immigrants are more skillful. [10] In the table from the article â€Å"How Much Do Immigration and Trade Affect Labor Market Outcomes?† it compares the distributions of years of schooling for immigrants and natives in the U.S. and in California for 1990 and 1995. The table is showing that the distribution of immigrants by educational achievement is more spread than that of natives.[11] A disproportionately large number of immigrants have fewer than nine years of education, but also, a disproportionately high number have more than sixteen years. On average, however, immigrants have fewer years of schooling than natives. [12] As a result, the contribution of immigrants to the supply of skills has become increasingly concentrated in the lower educational categories. [13] These lower educational categories include farming occupations, service jobs, private household workers, and operators and fabricators. Immigrants are less likely than natives to work in white collar jobs and are especially underrepresented in gov ernment jobs.[14] Accordingly, this results in increasing competition in lower-skilled industries, which possibly can reduce the wage of workers while enhancing their performances. However, immigrants can just as easily work in any industries as the natives if they become skillful and second generation of these immigrants are gradually increasing their educational level so it seems that the immigrants possibly can easily acquire skillful jobs. Were the changes emerged from the immigration effect positive? This answer can vary depending upon who one stand for. If the one is a native, he/she might consider it as negative because the immigrants made the natives harder to look for a job and the competition even made the natives acquire higher education now. However, the immigrants will not think in the same way because the minimum wage they receive in the U.S. is much higher compared to their home countries, so as long as they can afford jobs they find it successful.[15] But now, let’s stay away from this sentimentalism and talk about real negatives. There are many problems emerge as more immigrants enter a country. Simply, let’s think about an example. Suppose there is a small company and due to its successful innovation, it became huge and famous. Now, more people are willing to work for this company and the company is willing to hire more workers. However, as the workers increase, the company has to create another building or make the original building larger. Also, there will be higher costs for training them. The transfer of information between divisions will cost even more. There are just so many issues pop out as the number of people grows. This logic also applies to countries that accept large number of immigrants like the U.S. However, there is a bigger problem than just about the costs. It is the security. When countries are dealing each other internationally, every single of them has dealt with excessive securitization of individual and group.[16] Because people particularly emphasized on pervasiveness of fear and mistrust among stated intentions for peace, there is an idiom like â€Å"Who wants peace must prepare for war.†[17] This idea of securitization even played a huge role during the world wars that Hitler wanted to restore and save the dignity of German, while exclude or persecute many Jews. Also, the nuclear arms race during the Cold War that the U.S. and Soviet Union wanted to get more people under their ideology by securing their members.[18] However, when it comes to a country level, it is a little bit different. There is a term called the security dilemma where â€Å"the means by which a state tries to increase its security decrease the security of others.†[19] At the social level, the immigration often creates public opposition. For the past two decades, hostility to immigration has become increasingly politicized in many regions of Western Europe and the U.S. Anti-immigrant parties often give elaborations for why an individual would object immigration or support a nativist political movement.[20] However, unsurprisingly the academics blame individuals’ nativism on lack of personal contact with immigrants, poor education, youthfulness, masculinity, a rural environment, failure to belong to a union, membership in the ethnic or linguistic majority.[21] However, the reality isn’t the same as idealism. In fact, psychological school usually gives tiny help to those seeking to reduce nativism because it is hard to determine which specific bills to pass to reduce public alienation. [22] These anti-immigration movements are honestly waste of time and resources. What is so beneficial by kicking all immigrants out of a country who are people that possibly can enhance the quality of the country through the competition which makes everything efficient?[23] I cannot find any reasonable answer for this question. Obviously, the nativists will say things that are economic self-interest.[24] Most citizens will support any political movements only if they seem like beneficial to themselves. Apparently, the immigration does not seem like beneficial to the nativists. However, as mentioned earlier, it is not true. It is beneficial to a country when there is more population because it provides greater amounts of better services, rise in productivity, and more.[25] Anti-immigration movements are not the only things that happen because of the immigration. PAGE 25à ¬Ã‚ ªÃ‚ ½ How much† Bibliography How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd http://www.jstor.org/stable/2534701?seq=2 Immigration Phobia and the Security Dilemma Mikhail A. Alexseev San Diego State University from Journal of Economic History http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511528064 Immigration and Politics in the New Europe Gallya Lahav State University of New York from Journal of Economic History http://ebooks.cambridge.org/ebook.jsf?bid=CBO9780511558887 Emigration from the UK, 1870-1913 and 1950-1998 Timothy J. Hatton Australian National University and University of Essex from European Review of Economic History http://ereh.oxfordjournals.org/content/8/2/149.full.pdf+html?sid=4edbd32d-8637-417b-a651-1804ac220ac2 Skilled and unskilled wage differentials and economic integration, 1870-1930 Concha Betran and Maria A. Pons Universidad de Valencia, from European Review of Economic History http://ereh.oxfordjournals.org/content/8/1/29.full.pdf+html?sid=4edbd32d-8637-417b-a651-1804ac220ac2 Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA Joel S. Fetzer Published online http://www.tandfonline.com/doi/pdf/10.1080/136918300115615 [1] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [2] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [3]Immigration Phobia and the Security Dilemma By Mikhail A. Alexseev San Diego State University [4] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [5] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [6] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [7] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [8] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [9] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [10] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [11] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [12] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [13] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [14] How Much Do Immigration and Trade Affect Labor Market Outcomes? George J. Borjas, Richard B. Freeman, Lawrence F. Katz, John DiNardo and John M. Abowd [15] Skilled and unskilled wage differentials and economic integration, 1870-1930. Concha Betran and Maria A. Pons Universidad de Valencia, from European Review of Economic History [16] Immigration Phobia and the Security Dilemma. Mikhail A. Alexseev San Diego State University from Journal of Economic History [17] Immigration Phobia and the Security Dilemma. Mikhail A. Alexseev San Diego State University from Journal of Economic History [18] Immigration Phobia and the Security Dilemma. Mikhail A. Alexseev San Diego State University from Journal of Economic History [19] Immigration Phobia and the Security Dilemma. Mikhail A. Alexseev San Diego State University from Journal of Economic History [20] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer [21] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer [22] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer [23] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer [24] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer [25] Economic self-interest or cultural marginality? Anti-immigration sentiment and nativist political movements in France, Germany and the USA. Joel S. Fetzer

Tennis Essay -- essays research papers

As we all know, America is a nation of sports enthusiasts. Most Americans participate is some kind of sporting event, either as a spectator or as a competitor. In the pantheon of great American sports, there is one that stands out. It has been called the great American pastime. Yes, that great sport known as tennis. Tennis requires a mastery of many skills to be able to play competitively, but the primary skill needed to win in tennis is the serve. The serve is the primary offensive weapon used I tennis, because it is the only time when a player gets to put a ball into play. The player controls the speed, the placement, and the spin of the ball. With proper procedure, the serve can win many points and games for the server. The technique I will demonstrate is used by most professional ten...

The Way of the Future for Computing :: Essays Papers

The Way of the Future for Computing Computer technology is changing faster than ever. It is interacting with our daily lives and helping us make choices. The next step will be for the technology to make the decisions and choices for us. It will help us do the shopping, or will schedule our day for us. Computer technology will enable people â€Å"to do more by doing less†. That at least is the hopes and dreams of the M.I.T. (Massachusetts Institute of Technology) team that is working on a project called Oxygen. In the past computers were huge, taking up whole walls of buildings, and incredibly expensive. Then they were able to fit on desktops. Now we’re able to carry them around with us. You can’t go anywhere without seeing them. The vision of the Oxygen Project is â€Å"in the future, computation will be freely available everywhere, like batteries and power sockets, or oxygen in the air we breathe†. (mit.edu) computation will be in the human world, able to handle our goals and needs. There won’t be any need to carry personalized devices, such as phones, laptops, or etc. around with you. â€Å"Instead, â€Å"anonymous† devices, either handheld or embedded in the environment, will bring computation to us, no matter where we are or in what circumstances.† (mit.edu) The devices will become so familiar to a person that they will be able to find any information or software that we need. There will be no more typing or clicking needed . You won’t have to learn a computer language. Instead, you will be able to talk naturally with speech, vision, and phrases that describe your objectives. The rest the computer will handle. There are many aspects to the oxygen project to make it as successful as M.I.T. would like it to be. I can’t cover them all because I don’t want to write a book, but I will discuss the automation part of it. This is a branch of the user technologies. User technologies is what everyone will work with or use like a telephone.

Antwone Fisher Essay -- essays research papers

Antwone Fisher in my opinion is probably the most impactful movie I have ever seen. People may say, â€Å" What a good movie† but I say â€Å"what a good man†.   Ã‚  Ã‚  Ã‚  Ã‚  Antwone Fisher grows up living in a foster home where he is beaten, mentally and sexually abused. After spending time in an orphanage he doesn’t know what to do with his life. After thinking about it he decides to join the Navy. The movie picks up with Antwone as a young sailor who has a problem controlling his anger. Sent to a psychiatrist (played by Denzel Washington) he slowly begins opening up, learning to confront the past that has fostered his long-standing rage. Washington's psychiatrist becomes Antwone's substitute father figure, the person who teaches him to drop his guarded resentment, and assures him that he has the strength to face the buried traumas of his childhood. And, this being the kind of movie where everyone learns from everyone else, Antwone's courage persuades Washington's character to own up to his own traumas.   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the movie, Antwone just keeps on getting in fights and getting sent back to the psychiatrist. One fight in particular changed his life. One of his fellow shipmates taunts him about being a virgin. They fight and then he gets sent back to the psychiatrist. The psychiatrist then tells him to go find a girl to go on some dates with. He finds a girl that he has been friends with for a while, and asks her on a date. He went on a da... Antwone Fisher Essay -- essays research papers Antwone Fisher in my opinion is probably the most impactful movie I have ever seen. People may say, â€Å" What a good movie† but I say â€Å"what a good man†.   Ã‚  Ã‚  Ã‚  Ã‚  Antwone Fisher grows up living in a foster home where he is beaten, mentally and sexually abused. After spending time in an orphanage he doesn’t know what to do with his life. After thinking about it he decides to join the Navy. The movie picks up with Antwone as a young sailor who has a problem controlling his anger. Sent to a psychiatrist (played by Denzel Washington) he slowly begins opening up, learning to confront the past that has fostered his long-standing rage. Washington's psychiatrist becomes Antwone's substitute father figure, the person who teaches him to drop his guarded resentment, and assures him that he has the strength to face the buried traumas of his childhood. And, this being the kind of movie where everyone learns from everyone else, Antwone's courage persuades Washington's character to own up to his own traumas.   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the movie, Antwone just keeps on getting in fights and getting sent back to the psychiatrist. One fight in particular changed his life. One of his fellow shipmates taunts him about being a virgin. They fight and then he gets sent back to the psychiatrist. The psychiatrist then tells him to go find a girl to go on some dates with. He finds a girl that he has been friends with for a while, and asks her on a date. He went on a da...

Valentino’s Legacy

Upon walking in to the Gallery of Modern Art, tucked in around the corner from the State Library and well hidden from view, I was astounded by the sudden rush of sight and sound. Despite my sudden sense of claustraphobia, I forced myself inside. The queue to enter the Valentino Retrospective Art Exhibition was beyond massive; curving from the heart of the Gallery, along the back wall, up the side wall, and outside of the door for a good 800 metres. Satisfied with my pre-ordered tickets, I bustled along and entered the exhibition. Valentino Clemente Ludovico Garavani is more than a well-known Italian Fashion Designer: to most fashion students he is a God. Born on May 11th, 1932, this simple Saint has developed several different fashion labels throughout his 5 decades of work; such as Valentino, Valentino Roma, R.E.D. Valentino and, most popularly, Valentino Garavani. Commonly reffered to as only Valentino, he was the founder of the Valentino Spa Brand. The Valentino Retrospective: Past, Present and Future was developed by Les Arts Dà ©coratifs, Paris; and celebrates the renowned and glamorous designs of Valentino himself. This exhibition houses items from Valentino's first ever collection in 1959 up until his more recent ‘Autumn/Winter 2009-2010 collection' (designs by Valentino's appointed creative directors, Maria Grazia Chiuri and Pier Paolo Piccioli as of 2008). Upon entering, I discovered that this Exhibition was split into two major sections; each hosting different fragments of Valentino's most successful collections throughtout his career. The First section, entitled Part 1, was composed mainly of Valentino's earlier designs, with the pieces ranging from 1960 up until 2006. The Second Section, entitled Part 2, housed garments from a much more modern era. With a majority of the pieces pulled from Valentino's collections from 1992 through to 2010. European Royalty, celebrites and many other high-status folk have been seen wearing designs by Valentino, including Nicole Kidman, Elizabeth Taylor, Cate Blanchett and Jacqueline Kennedy Onassis (all of the garments worn by these women can be seen at this exhibition). I was most astounded to come across a dress worn by Julia Roberts to the Academy Awards in 1992 for her hit movie Erin Brockovitch. After viewing the best Valentino Garavani had to offer at this Brisbane Exhibition, I must admit I was fairly disappointed. All up, the exhibition housed approxiamately 100 garments, although it seemed many less to me, and 97 of which I disliked. The designs are timeless; sophisticated. The material used is of the highest quality. But still, I only found 3 dresses that I personally found mildly interesting. Although, to sum up the entire experience, there is only two pieces that could possibly describe the amount of work and timeless culture that has been woven together – despite vintage pieces, the elegant formal attire, and wedding dresses. Firstly; the commonly seen Evening Gown, Haute Couture Spring/Summer 2003, Model 130. Described at GoMA's Exhibition as â€Å"Strapless evening gown with low-set draped pale crimson chiffon sleeves, a train with appliquà © pleated crimson taffeta rosettes and red strass crystals in their centres, and pink and grey taffeta rosettes in its lining.† [Source 2] Made of Buche-Gillaud Fabric and Embroidered by Marabitti. This garment's elegance, formality, timelessness and complexity sums up the entire exhibition in one. The soft Crimson colour supports the mystery; and the flowers seem to support the multi-cultural theme. This piece was rescued from the Valentio Archives to be included in this exhibition. The second signature piece included at this Exhibition was from the Autumn/Winter 2009-2010, collection Although not designed by Valentino Garavani himself, Look 23 stays true to the Nature of Valentino. The extreme amounts of detail included in this piece definitely showcase one of Valentino most intricate pieces; a true piece of artwork. The themes in The Valentino Retrospective have a â€Å"recurrence of geometric patterns and graphic prints, the skilful use of fabric to create dramatic silhouettes and, of course, the distinctive palette of black, white and ‘Valentino red’. The future direction of this most esteemed fashion label is showcased through five creations by the house of Valentino’s new creative directors.† [Source 2] The Valentino Retrospective: Past, Present and Future is a collection of Valentino Garavani's most successful and original designs; located at the Gallery of Modern Art in Southbank, this astonishing exhibition is open to the public from the 7th of August to the 14th of November 2010. Including a lounging area, a cafe, a gift shop and a bar: This is, truly, a fusion of art, fashion and culture that one should not miss. Reference http://en.wikipedia.org/wiki/Valentino_Garavani

Foreign Direct Investment

Foreign direct investment (FDI) is probably the single most important factor contributing to the globalization of the international economy. FDI are increasingly strong economic links between developing and industrialized countries, and also among developing countries. Foreign direct investment in developing countries (LDCs) have increased nearly four-fold in the 1990s and now account for almost 40 per cent, reaching some $120 billion in 1997. Foreign direct investment is now by far the largest source of all capital flows to the less developed world. The objective of the FDI is to encourage the flow of investments for productive purposes among member†s countries, and in particular to developing countries. To serve this objective, the WTO must provide some type of guarantees (or insurance) covering foreign direct investment for all parties† host countries, home countries and Multinational corporations† against all the obstacles like Different needs, political risks, abuse of labor, Transfer Restriction, Breach of Contract, corruption, and Tax breaks. WTO must carry out advisory and technical assistance for these parties so that their interests are protected, and must emphasis on multilateral investment agreement (MIA. ) No unilateral action or bilateral The host countries or the developing countries are interested in: (I) development of their services, communities and infrastructure that may help their industrialization and development, (III) production of exportable goods and (III) continuous technological development in their industrial production and services Once MNC has been attracted to a particular destination country, they expect a high level of facilitation services. Governments all too often give inadequate attention to servicing investors† needs, even though large sums of money may have been spent on promotion activities and success has been achieved against fierce international competition. In retune, Investors from industrialized countries want to come to developing countries for two main reasons. First, they apprehend that the return on capital in their home country is not adequate; second, they want to combine their capital with the cheap labor of the host country to reduce the cost of production. So the WTO should regulate the minimum wage for the worker in the host county. If the FDI is only for capturing the domestic market, it may still generate profit for the investor, but such profit may leave the country in foreign exchange. Where there are two serious implications. First, in profitable domestic consumption sectors, foreign investments may overwhelm domestic investors (which may generally not be as strong as the foreign counterparts) and in some cases may eliminate them. Second, some critical sectors, like land, minerals and forests, where countries often like to have effective control on ownership because of social, political and strategic reasons, may, in a big way, pass under the control of foreign nationals. Investors have freedom without any responsibility, except in respect of their own profits. The implementation of the obligations of home countries are ought to be ensured by locating the MIA in the WTO, so that for any perceived infringement, action can be taken against exports of the country. Tax breaks for multinational corporations Multinational corporations, whether American- or foreign-owned, are supposed to pay taxes on the profits they earn in their home country. For example, American companies and individuals aren't supposed to gain tax advantages from moving their operations or investments to low-tax offshore â€Å"tax havens. † But the tax laws often fail miserably to achieve this goal. Moreover, IRS data show that foreign-owned corporations doing business in the United States typically pay far less in U. S. income taxes than do solely American firms with similar sales and assets. The same loopholes that foreign companies use are also utilized by U. S. -owned multinationals, and even provide motivation for American companies to move plants and jobs overseas. As a result, the WTO must fix these problems in the current system. The WTO must oblige all multinational corporations to provide income report in the overseas operation. Also, the Home County has the right to inspect every movement of goods and services between a multinational company's domestic and foreign operations, and then attempt to assure that a fair, â€Å"transfer price† was assigned to each real or notional transaction. Host countries insist that foreign firms must meet high domestic-content requirements, take on local partners, or engage in technology-sharing agreements, by contrast, suffer lags in technology acquisition, absence of best management techniques, weak penetration of foreign markets, and flimsy development of a supplier base. Yet developing countries and economies in transition can†t find ways to protect and reward foreign investors who promise to meet domestic content, joint venture, or technology-sharing requirements. Political actions, changes in governments, events or instability may result in unfavorable changes in the value of a foreign security. A new treaty, the repeal or modification of an existing treaty or a change in formal diplomatic relations between the home and the host countries could affect the value or liquidity of investments in that country. Corruption in the developing countries The definition of corruption is misuse of power for private benefit or advantage. Corruption is to all appearances widespread in developing countries and has very serious repercussions on their peoples' quality of life – above all that of the poor and disadvantaged. This power may, but need not, reside in the public domain. Besides money , the benefit can take the form of protection, special treatment, commendation, or promotion; generally speaking corruption encompasses four main distinguishing features: Undesirable effects on third parties (home county). Also the effects of corruption in developing countries ends up as obvious ignore of community interest. The WTO should monitor the MNC operations in the developing countries so that the real objective is achieved, and to protect the other parties. Breach of Contract † home, host countries and multinational corporations† Different needs of investors and host countries Investors from industrialized countries want to come to developing countries main reason profit. The host developing countries, on the other hand, are interested in development of their services and technological development in their industrial production and services. These two objectives are not incompatible. And the interest of foreign investors and host governments may be harmonized. But it is critical that any FDI agreement meet both objectives. This can be achieved if the investors decide on the capability of specific projects, and the host governments decide on the priority sectors and conditions of FDI, consistent with their economic and development objectives. Wherever the two agree, FDI will flow. But for FDI to have a beneficial effect, it is important to realize that the roles of both sides are significant. An MIA is really not necessary for this purpose. What is needed is that governments have clarity of objectives, and these are spelt out clearly. Sets of transparent and stable criteria adopted and announced by governments can help the foreign investors to assess the viability of investments under those conditions. Naturally, governments wishing to encourage foreign investments will lay down criteria, which will welcome the investors in priority sectors rather than scare them away. If there is sufficient scope for the convergence of the interests of investors and those of the host governments and if it can be brought about by the domestic policies and measures of host governments, why is it then that some industrialized countries are pressing for a multilateral discipline? The main reason is to eliminate or, at least, constrict the powers of host governments regarding the choice of the priority sectors for FDI and obligation of conditions on such investments, so that foreign investors are able to operate unencumbered by such constraints. The main objective of the investors naturally is to earn high profit in a short time and repatriate the profit. And the objective behind bringing the proposed discipline on investments into the folds of the WTO Agreement is to utilize its dispute settlement process to enforce the discipline. The WTO, through its provision of cross-sector retaliation, will enable them to take restrictive measures against the developing countries, which may be perceived as violating the discipline. Foreign investment is often welcome to countries, as it increase the country's capital and investment stocks. But the main implication of FDI is that the returns on such investments – in the form of dividends and profits, as well as many fees including license fees, management expenses and so on – are sent out of the country in foreign exchange. Hence, if the investments do not help the country, either directly or indirectly, to earn foreign exchange, the negative effects of the outflow may be serious. A change in the exchange rate between the two countries currency may reduce the value of an investment in a security valued in the foreign currency, or based on that currency value. Foreign Direct Investment Foreign direct investment (FDI) is probably the single most important factor contributing to the globalization of the international economy. FDI are increasingly strong economic links between developing and industrialized countries, and also among developing countries. Foreign direct investment in developing countries (LDCs) have increased nearly four-fold in the 1990s and now account for almost 40 per cent, reaching some $120 billion in 1997. Foreign direct investment is now by far the largest source of all capital flows to the less developed world. The objective of the FDI is to encourage the flow of investments for productive purposes among member†s countries, and in particular to developing countries. To serve this objective, the WTO must provide some type of guarantees (or insurance) covering foreign direct investment for all parties† host countries, home countries and Multinational corporations† against all the obstacles like Different needs, political risks, abuse of labor, Transfer Restriction, Breach of Contract, corruption, and Tax breaks. WTO must carry out advisory and technical assistance for these parties so that their interests are protected, and must emphasis on multilateral investment agreement (MIA. ) No unilateral action or bilateral The host countries or the developing countries are interested in: (I) development of their services, communities and infrastructure that may help their industrialization and development, (III) production of exportable goods and (III) continuous technological development in their industrial production and services Once MNC has been attracted to a particular destination country, they expect a high level of facilitation services. Governments all too often give inadequate attention to servicing investors† needs, even though large sums of money may have been spent on promotion activities and success has been achieved against fierce international competition. In retune, Investors from industrialized countries want to come to developing countries for two main reasons. First, they apprehend that the return on capital in their home country is not adequate; second, they want to combine their capital with the cheap labor of the host country to reduce the cost of production. So the WTO should regulate the minimum wage for the worker in the host county. If the FDI is only for capturing the domestic market, it may still generate profit for the investor, but such profit may leave the country in foreign exchange. Where there are two serious implications. First, in profitable domestic consumption sectors, foreign investments may overwhelm domestic investors (which may generally not be as strong as the foreign counterparts) and in some cases may eliminate them. Second, some critical sectors, like land, minerals and forests, where countries often like to have effective control on ownership because of social, political and strategic reasons, may, in a big way, pass under the control of foreign nationals. Investors have freedom without any responsibility, except in respect of their own profits. The implementation of the obligations of home countries are ought to be ensured by locating the MIA in the WTO, so that for any perceived infringement, action can be taken against exports of the country. Tax breaks for multinational corporations Multinational corporations, whether American- or foreign-owned, are supposed to pay taxes on the profits they earn in their home country. For example, American companies and individuals aren't supposed to gain tax advantages from moving their operations or investments to low-tax offshore â€Å"tax havens. † But the tax laws often fail miserably to achieve this goal. Moreover, IRS data show that foreign-owned corporations doing business in the United States typically pay far less in U. S. income taxes than do solely American firms with similar sales and assets. The same loopholes that foreign companies use are also utilized by U. S. -owned multinationals, and even provide motivation for American companies to move plants and jobs overseas. As a result, the WTO must fix these problems in the current system. The WTO must oblige all multinational corporations to provide income report in the overseas operation. Also, the Home County has the right to inspect every movement of goods and services between a multinational company's domestic and foreign operations, and then attempt to assure that a fair, â€Å"transfer price† was assigned to each real or notional transaction. Host countries insist that foreign firms must meet high domestic-content requirements, take on local partners, or engage in technology-sharing agreements, by contrast, suffer lags in technology acquisition, absence of best management techniques, weak penetration of foreign markets, and flimsy development of a supplier base. Yet developing countries and economies in transition can†t find ways to protect and reward foreign investors who promise to meet domestic content, joint venture, or technology-sharing requirements. Political actions, changes in governments, events or instability may result in unfavorable changes in the value of a foreign security. A new treaty, the repeal or modification of an existing treaty or a change in formal diplomatic relations between the home and the host countries could affect the value or liquidity of investments in that country. Corruption in the developing countries The definition of corruption is misuse of power for private benefit or advantage. Corruption is to all appearances widespread in developing countries and has very serious repercussions on their peoples' quality of life – above all that of the poor and disadvantaged. This power may, but need not, reside in the public domain. Besides money , the benefit can take the form of protection, special treatment, commendation, or promotion; generally speaking corruption encompasses four main distinguishing features: Undesirable effects on third parties (home county). Also the effects of corruption in developing countries ends up as obvious ignore of community interest. The WTO should monitor the MNC operations in the developing countries so that the real objective is achieved, and to protect the other parties. Breach of Contract † home, host countries and multinational corporations† Different needs of investors and host countries Investors from industrialized countries want to come to developing countries main reason profit. The host developing countries, on the other hand, are interested in development of their services and technological development in their industrial production and services. These two objectives are not incompatible. And the interest of foreign investors and host governments may be harmonized. But it is critical that any FDI agreement meet both objectives. This can be achieved if the investors decide on the capability of specific projects, and the host governments decide on the priority sectors and conditions of FDI, consistent with their economic and development objectives. Wherever the two agree, FDI will flow. But for FDI to have a beneficial effect, it is important to realize that the roles of both sides are significant. An MIA is really not necessary for this purpose. What is needed is that governments have clarity of objectives, and these are spelt out clearly. Sets of transparent and stable criteria adopted and announced by governments can help the foreign investors to assess the viability of investments under those conditions. Naturally, governments wishing to encourage foreign investments will lay down criteria, which will welcome the investors in priority sectors rather than scare them away. If there is sufficient scope for the convergence of the interests of investors and those of the host governments and if it can be brought about by the domestic policies and measures of host governments, why is it then that some industrialized countries are pressing for a multilateral discipline? The main reason is to eliminate or, at least, constrict the powers of host governments regarding the choice of the priority sectors for FDI and obligation of conditions on such investments, so that foreign investors are able to operate unencumbered by such constraints. The main objective of the investors naturally is to earn high profit in a short time and repatriate the profit. And the objective behind bringing the proposed discipline on investments into the folds of the WTO Agreement is to utilize its dispute settlement process to enforce the discipline. The WTO, through its provision of cross-sector retaliation, will enable them to take restrictive measures against the developing countries, which may be perceived as violating the discipline. Foreign investment is often welcome to countries, as it increase the country's capital and investment stocks. But the main implication of FDI is that the returns on such investments – in the form of dividends and profits, as well as many fees including license fees, management expenses and so on – are sent out of the country in foreign exchange. Hence, if the investments do not help the country, either directly or indirectly, to earn foreign exchange, the negative effects of the outflow may be serious. A change in the exchange rate between the two countries currency may reduce the value of an investment in a security valued in the foreign currency, or based on that currency value.