Radioactive Pollution - Lynas Essay -- Business Analysis

INTRODUCTION In this modern epoch, information is just a push of a button away as compared to aeons back where people either have to acquire information through word of mouth which may be highly unreliable or flip through hundreds of written articles and books just to obtain a single piece of valued information. Information is without a doubt within the grasp of every single individual and there is no excuse for anyone to not be up to date concerning current events. News in this present age travels as fast as lightning across the global communication system, which is the internet via news portals, e-mails, social networks and other network facilities that are made available. No news is latest news when there are so many global and local phenomenons that occur every single second and is immediately reported within the next few minutes. Social interactions within a society enables information and news to be exchanged and thus, allowing curiosity to flow simultaneously with research as some news are too good to be true and might seem ridiculous. One of the many current issues being faced by Malaysians this day revolves around the multi-million company, Lynas Corporations Limited. News on Lynas Corporations opening a plant (Lynas Advanced Materials Plant) in Gebeng, Kuantan spread like wild fire through the local newspapers and the internet as many Malaysians protested against the plans of Lynas Corporations and the Malaysian Government that approved the company’s rare earth waste disposal on Malaysian land. Fear swept through the country as many were devastated to relive the incident of Bukit Merah and to see the radioactive effects that will take its toll on the upcoming generations. Malaysian citizens did not hesitate to equ... ...how support or disagreement towards the government and Lynas. This comes down to what messages did the senders convey and what did the receivers understand of the messages sent to them. Works Cited About Lynas, Foundations for the Future. (19 March, 2012). Retrieved from Lynas Corporation Ltd: http://www.lynascorp.com/category.asp?category_id=2 Beck, A., Bennett, P., & Wall, P. (2004). Communication Studies: The Essential Introduction (2 ed.). London: Routledge. British Geological Survey, Royal Society of Chemistry. (2012, March 19). What are 'rare earths' used for? Retrieved from BBC News: http://www.bbc.co.uk/news/world-17357863 Malaysia Today: Lynas Rare Earth Plant - Worst Decision Ever? (2012, March 27). Retrieved from Malaysia Today Web Site: http://www.malaysia-today.net/mtcolumns/letterssurat/47519-lynas-rare-earth-plant-worst-decision-ever

Economic System :: essays research papers

Economic System A country’s economic system consists of the structure and processes that it uses to allocate it’s resources and conduct it’s commercial activities.  Ã‚  Ã‚  Ã‚  Ã‚   Types of Economic Systems - Centrally planned economy - Mixed economy - Market economy Centrally planned economy System in which a nation’s resources are owned by the government. Origins: the ideology that the welfare of the group is more important than individual well being. (Karl Marx). Decline: In the 80’s nations began to dismantle communist central planning in favor of market based economy. Failures -economic value ,Provide incentives, Achieve rapid growth, Satisfy Consumer needs. Mixed economy Economic system in which resources are more equally divide between private and government ownership. Origins: the idea that a successful system must be not only efficient and innovative but should also protect society. Decline: mixed economies are converting to market system. (Privatization). Market Economy The majority of nations resources are privately owned. Economic decisions are determined by supply and demand. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Origins: the belief that individual concerns should be placed above group concerns. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Features: free choice, free enterprise and price flexibility. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Governments role: enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Development of nations The economic development is a measure of gauging the economic well being of one nation's people as compared with that of another nation’s people. National development indicators: - national production - purchasing power parity - human development National Production Gross national product: value of all goods and services produced by country during a one year period, including income generated by both domestic and international activities. Gross domestic product: value of all goods and services produced by a country’s domestic economy over one year period. GDP or GNP per capita: nation’s GDP or GNP divided by it’s population. Purchasing Power Parity Purchasing power: the value of all goods and services that can be purchased with one unit of a country's currency. Purchasing power parity: is the relative ability of two countries’ currencies to buy the same â€Å"basket† of goods in those two countries. Human Development Human development index: The measure of the extent to which a peoples needs (healthy life, education, decent standard of living) are satisfied and the extent to which this needs are addressed equally across a nation’s entire population. Classifying countries Developed: highly industrialized and efficient countries that have a high quality of life. -USA,France, Italy, Canada.. Newly industrialized: recently increased the portion of it’s national production and exports from industrial operations ( emerging markets: developed + newly industrialized).

Do you agree that Achebe shows an - awareness of the human qualities :: English Literature

Do you agree that Achebe shows an - awareness of the human qualities common to all men of all times and places - or do you find the novel only uniquely African and of its time? Achebe’s style has been described as one of â€Å"remarkable economy and subtle irony†¦ uniquely and richly African .. revealing Achebe’s keen awareness of the human qualities common to all men of all times and places†. Do you agree that Achebe shows an â€Å"awareness of the human qualities common to all men of all times and places† or do you find the novel only uniquely African and of its time? â€Å"Things Fall Apart† by Chinua Achebe is a twentieth-century African tragedy written about the destruction of the African Igbo tribe by ‘white men’ from the west. The novel focuses on Africa’s gradual invasion by white Westerners and the effects of colonisation on specific individuals and groups within the society. The novel has many distinct African features that define the pre-colonial culture of the Igbo tribe. The very beginning of the novel describes an African festival, in which drums and flutes are being used whilst the spectators look on in awe, â€Å"The drums beat and the flutes sang and the spectators held their breath.† Achebe’s use of sensory language, such as the sounds of the instruments, gives the audience a greater sense of shared experience of what it was like to be part of the Igbo tribe. Achebe’s style of writing throughout the novel allows the audience to imagine being in the position of characters such as Okonkwo who had their common, traditional beliefs and rituals gradually overridden by the increasingly-dominant Western ideology. Achebe uses simple language throughout the novel, particularly at the beginning and this reflects the simplicity of the African oral storytelling tradition. As most African stories were told in traditional verbal ways by illiterate people, the language used tended to be simple, â€Å"Unoka went into an inner room and soon returned with a small wooden disc containing a kola nut, some alligator pepper and a lump of white chalk.† Achebe uses this technique to provide some simple, vivid visual imagery for the reader, while making them aware of traditional African foods such as kola nuts. This type of sentence perfectly illustrates Achebe’s intentions of making this novel ‘uniquely African’. Henrickson suggests â€Å"Things Fall Apart uses language and structures †¦ that make its world seem familiar to Western readers; but questions whether it really is familiar to us.† Henrickson believes that the novel is there to provide an understanding of the African perspective of colonisation; however, he does not argue that the novel is relevant to us.

Guernica, Picasso 1937

The Spanish painter Picasso was a cubist and his worldwide famous ‘Queering' is a mural-sized flat oil painting on canvas (3. 5 meters tall and 7. 8 meters wide). It is all grey, blacks and whites and was painted in 1937. Picasso started the painting when he heard that the Germans had Just bombed the quiet and traditional Basque town of Queering on 26 April 1937 in support of the Spanish Nationalist forces of the Fascist General Franco during the Spanish Civil War.The broken sword near the bottom of the painting symbolizes the defeat of the people at the hand of their tormentors. The shape and posture of the bodies express protest, Picasso uses black, white, and grey paint to set a dark, sober mood and express pain and chaos, buildings in flames and crumbling walls not only express the destruction of Queering, but reflect the destructive power of civil war. The newspaper print used in the painting reflects how Picasso learned of the massacre and the light bulb in the painting r epresents the sun.Picasso monumental work showed the effect on both people and animals. The distorted forms and the monochromatic palette clearly show the grief of the people for example, he shows a fighter and a mother and child tit displaced features and ghost like forms along with a woman on fire running from a burning building. The fine patterns in the centre of the painting resembles words on torn pieces of newspaper, suggesting that art is as powerful as the mass media in communicating a message.Chaos and despair are amplified by sharp, angular shapes, particularly the bold triangular form at the centre of the painting and vivid contrasts of light and shade. On May 11 1937, he made the first sketch for the mural. By the tenth of May, he had already begun work on the canvas. And in early June, the mural was completed. There are about 100 recorded sketches relating to the mural, some made before Picasso started working on the canvas, and others done simultaneously with the paint ing.In some of the sketches, Picasso experimented with color. Even when the mural was almost completed, the artist stuck pieces of patterned wallpaper onto the canvas to determine the effect of color of the composition. Charcoal and oil paint were the main materials Picasso had used on his painting. Picasso had to use a ladder and a long-handled brush to reach the retest part of his artwork. An enormous size of the stretched canvas, measuring 3. 5 x 7. meters and so had to be tilted to fit under the rafters of the ceiling, and dim lighting from bay windows on one side of the studio, failed to interfere with action or progress. The painting was completed in twenty-four mad and wild days. Streams of ideas, emotions, traditions, myths, obsessions and symbols of his roots deeply surrounded in Hispanic and Mediterranean culture spilled onto the canvas. These were fuelled by anger and a need to express his pain. Queering, Picasso 1937 By cherry's

Minimum wages

Many economic theories have been proposed to discuss the impact of minimum wages on labor market. The proceedings of the labor market is based on the exchange of resources between the employee and employer, the employee receive wages in return for their labor services to the employer. Labor market is considered to be most competitive market, where the established market price is much closer to the value of the product. Therefore, the employee is likely to receive marginal value, in the competitive market (excluding the factor of minimum wage). Therefore minimum wage laws have been introduced which foresee crisis of unemployment, if fewer employers are interested to hire labor, where as more people are willing to offer their services. Therefore, the law intends to maintain the equilibrium, to avoid social and economic turmoil. The amount of labor supplied by the workers is directly proportional to the nominal wage, a certain increase in the wage, forecast increase in the labor supply. The observation is based on the assumption that an employee hired at a low wage will prefer to consume ‘leisure and forego wages', a slight increase in the nominal range, it becomes difficult to practice leisure and avoid labor, therefore there is an increase in the number of workers wiling to offer labor. The relationship between the labor supplied and nominal wage is function of different variables including price. A substantial increase in the price level will reduce the number of workers, at all wages (Wascher, 1995). LABOR MARKET AND WAGES There exists an inverse relationship between the nominal wage, and the ‘amount of labor demanded by the organizations'. A substantial increase in the wages is likely to compel the organizations to reduce recruitment schemes. The relationship has been derived on the basis of an assumption that the organization prefers saving for increased proportion of profitability i.e. such level of production is aimed by the organization which increases the profit i.e. the difference between expenses and revenue. The revenue is based on the price of an item, and quantity of the items sold (Christopher, 2005). The expanses include the amount of wages, which is based on the labor and services. Therefore, the company will prefer to maintain a minimum threshold level to secure profit, on the basis of reduction in the wages, as more workers are employed, the labor wage increases which turn the organization less profitable. The price factor may compel the organizations to recruit the employees for all wage levels. minimum wages AND LABOR MARKET: IMPLICATIONS It has been predicted that minimum wage laws are expected to increase unemployment, if minimum wage is established above equilibrium wage. It is because, a large number of employees will be interested in offering their services in exchange for higher wages, on contrary on small and limited number of such opportunities will be available. Also, the organizations will be careful about the recruitment scheme, and ensure that only well qualified people are hired on high wages, therefore there is expected to be little scope for the least skilled and inexperienced employees, thus within the labor market the unemployment level will increase (Kane, 2007). Another factor which has the potential to deteriorate the condition and extend the unemployment crisis is monopsony within the labor market. If the employer has the authority to determine the wages for the employees, it is expected that the unemployment rate will diminish because minimum wage may boost employment. The equilibrium between the labor demand and labor supply will exist only at a point when applied wage is equal to the requirements of the labor and organizations. Wages are more than the equilibrium wage, will result in unemployment i.e. the excess supply of labor. ‘Using the matching function formulation along with Nash bargaining between workers and firms, the results of Hosios inform us that an efficient labor market equilibrium requires that the elasticity of the matching function with respect to the size of the set of searchers be equal to the share of the surplus they receive’ (Kane, 2007). CONCERNS: MINIMUM WAGE It is important to understand that minimum wage is a practice control factor applicable on the labor, which can be regarded as the captivity of the economic rights of the low-paid labors, and their prospects. The increased minimum wage limit is expected to reduce America's labor freedom index to 87 percent. In the case of free market economy, the maximum utilization of the land, information, capital goods, and labors achieved through price allocation. If the prices are kept free floating, the market is considered to be real free in launch of its economic policies and business plans, which have an impact on the labor market, and the fixture of minimum wage. ‘Estimates of the bargaining power parameter, although significantly lesser than a   percent, are significantly larger than estimates of the match function elasticity and as a result yield an optimal minimum wage rate less than the then current value of $4.25’ (Swinnerton, 1996). Considering the example of an organization, the organization has the right to increase its wages to capture the attention of the labor for the employment. Wages are considered to be suitable indication to discuss the expansion of business activities, and direct employment. ‘Freely floating prices allocate resources efficiently to places where they will take root and boost economic productivity' (Christopher, 2005). Price signals have been disturbed and distorted through implementations of labor regulations, which hamper market mechanism, and restrict economic freedom of employers and employees. Minimum wage is considered to have significant impact on economic freedom, the labor supply and demand mechanism undergo disruption due to the allocation of government specified minimum wages (Card, 1995). If the situation is not existent, the minimum wage can be regarded as ‘crude instrument' which relocate the labor market towards efficient allocation. ‘The labor market is not excused from the basic economic principle that artificially high prices cause lower demand'. The National Bureau of Economic Research observed that many analysts were of the opinion that minimum wages have negative impact on the labor market, ‘almost all point to negative employment effects’. More specifically, the study also revealed that there is, ‘relatively overwhelming evidence of stronger unemployment’ impacts on less experienced workers (Swinnerton, 1996). In the case on United States, the proposed federal minimum wage has been avoided by the Congress for more than a decade. The reviewed limit for the minimum wage is expected to raise to $7.25, however analyst are of the opinion that labor market can be served well through expansion of the Earned Income Tax Credit (or EITC, a substantial wage subsidy for low-income workers). According to 2007 Index, more than 90% of the US labor market is considered independent, and the imposition of the minimum wage will not only hamper the status of the labor market, but will reduce the labor freedom factor. IMPLICATIONS The proper approach for ensuring better income for group of workers can be achieved through imposition of minimum wage. The entrance to Labor Market can be achieved through implementation of minimum wage, and this is likely to benefit least qualified individuals. ‘Labor market flexibility refers to the ease with which workers and employers can negotiate mutually advantageous labor contracts' (Nathalie, 2006). However the implementation of minimum wage has been discouraged by economist, most of the economists are of the opinion that higher minimum wage has failed to achieved the primarily goal of poverty reduction, and is responsible for unemployment. According to a survey by Canadian authorities, 10% increase in the minimum wage was responsible for the direct unemployment of Canadian teenagers by 2.5%. In this context the labor laws play fundamental role, to counter such flaws. Researchers have concluded that, the scheme of tightening of laws about labor relations is responsible for the unemployment. It has been warned that implementation of rigid laws for the minimum wage barrier will affect the performance of the organizations. It is believed that organizations will opt for recruitment of smaller staff, and sought the replacement of workers with machines, and diminishes the performance premiums and other perks, or move switch over their operations ands move to other part. EFFECTS AND ALTERNATIVE (TAX CREDIT) The increase in the level of minimum wage is considered to be blockade for the reformed economic policies of any country; furthermore it disrupts international competitiveness, labor freedom. Labor freedom, like property rights and business freedom, a detailed study report issued by The Heritage Foundation and The Wall Street Journal have concluded that, all these factors are considered to be important parameters for the evaluation of country's overall economic freedom as measured by the Index of Economic Freedom (Kane, 2007). The labor market should be based on labor freedom to strengthen the scope of economic activities that correlates the ability of workers and businesses to interact without any surveillance or official restrictions by the government. The minimum wage is although considered to be an important measure for supporting the poor and less skilled worker, but such conditions affect the business activity and shatter the economic plans of the organizations, and consequently the labor market is affected (Wascher, 1995). ‘The minimum wage disrupts the natural interaction of supply and demand and leads to inefficient allocations of labor and, eventually, increased unemployment', on contrary the government discourage the practice of competitiveness, and transform it into level economic battlefield, with restricted scope of advents (Swinnerton, 1996). The sole objective of minimum wage is to provide higher income to low earners, but to avoid the negative fallout of labor market, the execution of such policy should be avoided, and therefore policies based on negative income tax or earned income tax credit should be introduced to favor the low wage earners. Such methodology is considered to be economic efficient. The classical analysis of minimum wage support the idea that higher wage earners should help the low earners, the restriction of higher minimum wage is likely to affect the services and jobs of the low wage earners, therefore the labor market can be strengthen by providing sufficient incentives to ‘ low wage workers at the expense of other low wage workers and businesses employing low wage workers' (Card, 1995). The alternative scheme of negative income tax or earned income tax credit support the low earners, and it is the over all society that incurs the cost, and this further stabilizes the labor market. The scheme is considered to be economically viable, ‘because, a low tax rate on the broader economy causes less deadweight loss than a high tax rate on a small section of the economy' (Wascher, 1995). It has been reported that the approved EITC has increased the level of earnings by 40 percent; the proposed $7.25 of minimum wage after taxes for a full-time worker is expected to double the EITC. It is expected that minimum wage and tax credit scheme will rekindle the hope of low earners, and re-link them directly to the benefits of growing economy. REFERENCES Tim Kane, Ph.D. and Anthony B. Kim. A Higher Minimum Wage Equals Less Economic Freedom. 2007. Prentice Hall. pp. 125 Neumark, D. and W. Wascher. Minimum-Wage Effects on School and Work Transitions of Teenagers. American Economic Review 85. 1995. pp. 244-249. Card, D. and A. Krueger. Myth and Measurement: The New Economics of the Minimum Wage. Princeton: Princeton University Press. 1995. Swinnerton, K. Minimum Wages in an Equilibrium Search Model with Diminishing Returns to Labor in Production. Journal of Labor Economics 14. 1996. pp. 340-355. Christopher J. Flinn. Minimum Wage Effects on Labor Market Outcomes under Search, Matching, and Endogenous Contact Rates. New York University Publications. 2005. pp. 45 Nathalie Elgrably. The Minimum Wage and Labor Market flexibility. December 2006.Montreal Economic Institute Publications.      

My Christian Way of Life Essay

I would not start this personal essay by saying that I am a devout Christian and that I love helping people or something to that effect. I am a Christian; however, I am not the devout type. I do not regularly attend church gatherings. I do not really engage in community services or avoid vices. My moral beliefs were first cultivated by my parents’ teaching. They are devout Catholic, so it is reasonable to conclude that Jesus Christ is the most influential philosopher in my life. It is because of Him that I am able to walk through life confidently and accept different challenges. I am against violence and vengeance because He has taught us to forgive. Nevertheless, I still have my own spiritual doubts and questions about life and about being a Christian. I also consider myself as a victim of popular culture who has the tendency to get easily influenced by unreasonable circumstances. I am skeptical most of the time which is why I am convinced that Pepperdine is the most fitting university which can cater my needs for spiritual development. The fact that George Pepperdine did not mean for any of the university’s students to become full-pledged or devout Christians is what attracts me most in the university’s mission. It interest me not because I do not want to become strictly dictated by Christian values but because in this critical point of my life, I believe that I need all the freedom to make my own choices so I can later ponder about them and reflect on my own life. At a young age, a person must be allowed to discover his or her own spirituality by his or her own means. This way, this person can become more experienced and driven to arrive to what he or she believes is the truth about one’s spiritual being. If one would analyze one’s surroundings closely, it is evident that we live in a material world. Everything that our eyes conceive is physically material. On the contrary, I believe that there is much more in this world than earthly things. The world is a puzzle that we need to piece together—a problem that we need to solve. However, it is a problem unsolvable—a problem too complex and beyond comprehension. Yet, we can only see the world as such if we close our eyes from superficiality and open them to greater extents. Simply put, the world is merely an illusion that we have created to fulfill our sight—and the only way to avoid being fully blinded by it is to develop our own spirituality. A person who aspires to accomplish a developed spiritual being must learn how to act in his or her own accord. Religion can be quite pressuring at times, which can even cause a person to lose his way. However, if one is given enough leeway to discover everything on his or her own, this person becomes more responsible in choosing the right path without any feeling of rebellion or being forced. I am confident that through the guidance of a university which values Christianity, I can become more disciplined and responsible in discovering the spiritual aspect of my life. I do not usually attend Sunday church but I honestly have my so-called personal relationship with God. I am more comfortable in talking to Him like a confidant who is always ready and available to listen than repeating prayers everyday. George Pepperdine is right. Maybe I am not fully aware yet of what is the real Christian way of life. Maybe â€Å"personal relationship† with God is not enough to be called a true Christian. Maybe it includes so much more than just a relationship. I guess I am not that confident yet about my own spirituality which is more than just a reason enough for me to become accepted in this university.

Political Risk International Business

POLITICAL RISK IN INTERNATIONAL BUSINESS The term business normally refers to the act of doing any transactions that ends up in earning or losing money. The act that is ending up in financial implications is called business. This business can be considered as a result of collective commercial transactions of all types involving government, private, corporate, individual or a group of individual, and so on.Anyone involve in the business usually undertakes such operations only for the purpose of making profit, and only in the case of government involved business, there will be some other reason than profit making which could be political, economical, etc. International business is recognized and / or defined as the business that is done across two or more country borders. International business involves selling, buying, making investment, transporting goods, logistical activities, etc between two or more countries.The companies that are doing business worldwide are called multinational companies (MNCs). These companies are normally formed and incorporated in one country and then create their operations in various countries, and will have access to all the markets wherever they do trading. These companies are having different strategies and different approaches for different country operations due to many factors such as culture, interest, etc of the people in those countries. To mentions some examples, McDonalds, Sony, Shell, General Motors, Toyota, etc.The very basic purpose of doing business is only to make money, predominantly, although there are businesses which are not mean for money or profit. Hence for the international business also, the basic purpose will be only profit making. However, there are some additional purposes for the international business, since the effort involved in the establishing the international business is more and complicated than just doing a domestic business. Some of the purposes of international business are discussed hereunder. New Opportunities: While the corporations are extending their operations to the international market, the opportunities for them to develop their business and increased sales / revenue are more. Since the international business brings new products and new services to the country, there will be a good opportunity for finding new customers, and making a good volume of sales among the customers. Also, based on the geographical conditions, climatic conditions, available resources, etc there will be more opportunities for the MNCs to develop their business in terms of infrastructure, product lines, etc.Low Cost: This is an advantageous purpose for the MNCs to have their operations in various countries. In countries like China, India, the human resources will be available in large number and hence the cost of labour becomes comparatively cheaper with the countries of origin of those MNCs. Hence the companies start their operations in those countries and reduce their cost of production les ser and lesser. Those products that are produced from there can be transferred to the other country’s operations of the same MNC. Hence over all the company’s cost of production is slashed to a very minimum amount.For example, many Sony opened their operations in China, and most of the Sony products available in any of the country come from the manufacturing units of Sony in China. This way Sony capitalizes the international business concept. Resources: Resources are one of the major assets for any organization. Business while going international, get opportunities to improve the standard of the resources, many times at a cheaper cost. While the business is international, the organization will have access to various types of resources from various countries.This is an added advantage to the company in developing their knowledge, and work force. Hence cross country knowledge is acquired by the organization, and hence the knowledge repository of the organization grows an d hence to get more benefit from the resources. Just like the way the international business provides lots of benefits, there are lots of risks associated with the international business, which are discussed hereunder. Strategic Risk: Many of the international companies try to implement many of heir business strategy across all their branches in all the countries; however, due to many changes that exist between the countries wherein the operations are undertaken, many times the strategies will not work. For example, a strategy designed for the summer seasons in one country may not work in another country, since there could be a different season at that time, and vice versa. Hence strategy management is a potential risk in international management. Operation Risk: International business operations are happening across the globe.The practical situation in one country and the situation in another country will never be the same. Mode of transport, maintenance of machinery, supply and de mand of products required for production, logistic and inventory issues, etc will be on a regular basis and will create problem for a smooth production processes. Major cause of this operational risk will be the capital market variances between the countries and assets that are involved in the operational activities. Technological Risk: International business is highly dependent on the technology especially in terms of communication and transaction.There is always a big risk in the security part of the electronic transactions and hence that creates a major risk for the international business. Cost of newer technologies, redundancy of the old technology and the locked cost in such investments, etc are the major risks due to technology. Environmental Risk: While the environment, such as air, pollution, water, etc of the country wherein the operation is happening is affecting the people and creating an environmental issue, which affects the reputation of the corporation functioning the re as well.The corporation also socially becomes responsible for such devastation of the environment. Economic Risk: This is anyway not in the hand of the business. If the country in which the business operation of the MNC is happening is not able to control the economic problems, which will eventually impact the MNC as well. Exchange rate, monitory policy, etc are the cause of such economic risks. Financial Risk: Currency rates and inflation rates are major cause of this type of risks. The financial situation of the country becomes instable, and that hits the organization badly.While the government does not have strict rules in areas such as transferring investment funds to other countries, the economic financial conditions become worse. However, the Political risks in the area of international business are large and are highly considerable more than other risks. Since international business is happening in different countries, the business is facing directions and regulations from various political governments. Any changes that are happening in the political situations will have an impact on the way the business is running the country.The leader of the country or the political person in the country will be responsible for such impact of risk; however, the organization will have a lesser say in such situations. The possibility of international business risks is always high. The very moment the business goes abroad, the government to which the business is subjected to will change. Hence irrespective of the amount of impact, there will be surely impact on the business from the political side. The government issues related to the overall country-wide policies, changes in the higher officials such as ministers, or other such positions will directly impact the business.The impacts of the risks are varied from soft to extreme. Terrorism, war, etc are extreme risks, while change of president or prime minister, or different political parties coming into power, etc is moderate risks. However, it is easy to understand and accept that any of this risk will surely be in existence in any given country and hence that will affect the business organization which is doing an international business in that country. The political risks can be classified into micro risks and macro risks.Micro political risks are very common to the country in which it is happening, and will affect the entire company’s existence in the company or something of that magnitude. For example if there is a political instable relationship between two countries, then there will be a risk of closing down the business of the organizations in one country who base location is the other country. On the other hand macro level political risks are something that is affecting all the international business in host country in which the political changes are happening.For example, if there is a political emergency in the county all the international business would come to cease. Such em ergency may also work against the foreign direct investment from all the countries, which is again nullifying the international business in the host country. For any risks that are faced in the business, multiple solutions are available. In the context of political risks related to international business, the general strategy the MNCs normally follow is to do a political risk analysis on the country in which the MNC is going to start its operation.If the international business is just about making a foreign investment, before the investment is made a good and detailed risk analysis or research is advisable. There are many independent consultants who do such risk analysis and researches on potential countries. Such reports can be purchased by these MNCs or they can form their own team in making such analysis. MNCs can also adopt some risky strategy which has to be calculative.At times, while investing in a country which is proven for political risk, the MNC can see a better and attra ctive return from the investment. Hence the strategy needs amendment based on the negotiation with the host government for further compensations and at the same time providing some reasonable benefits for the country resources, such as man power, and other structural facilities. Such MNCs are establishing their operations in those countries and help the country to develop their economy and increase the standard of living there.Another strategy normally tried by the MNCs are involving into the business in the risk prone countries and also make considerable investments in the political risk insurances. By doing so, the possible losses the MNC may face can be compensated by the insurance, if happen so. However, such investments in the international business are made only when the corporation foresees a good and attractive return from those host countries. Interestingly investment in political insurance may also amount to risks, since the insurance claim may not be obtained as it is pro mised to be.Based on the available option, the recommendation could be to do a good and through research on the political situation of the country wherein the MNC is going to commence its business. While the MNC is hoping to have a wide range of investments in many countries, it is advisable to have a separate department in the company which is looking after such risks, either doing their independent research or having assistance from the well know consultants in the market. Business earns profit in the form of money; however, it also exposed to many risks.There are risks related to the internal environmental factors, as well as external environmental factors. External factors are not in the control of the business organization, and hence handling becomes difficult. When the business goes abroad and become an international business, then the exposure to various external environmental factors increases, while the possible benefits also increases. Political risk is one of the major ri sks associated with international business, which is the main concern of the MNCs going abroad.MNCs are forced to face both micro and macro political risks. However, since the political risks are a well known factor, there are many research conducted across the world about most of the countries. Hence the MNCs are also having sufficient information to take a decision on the available options and plan their strategy towards opening up their business abroad. In many countries, international business works and give and take policy, where the MNC benefited financially while the hose country is benefited in terms of economy, life standards, and knowledge sharing.References * Alan M. Rugman, Simon Collinson. 2008. International Business. London: Prentice Hall * Oded Shenkar, Yadong Luo. 2008. International Business. Chicago: Sage Publicaitons * Daniels, J. , Radebaugh, L. , Sullivan, D. (2007). International Business: environment and operations, 11th edition. Prentice Hall. * Joshi, Rakes h Mohan, (2009) International Business, Oxford University Press * Travis, T. (2007). Doing Business Anywhere: The Essential Guide to Going Global. Hoboken: John Wiley&Sons.