This website uses cookies to ensure you have the best experience. Learn more

Russia Vs. China: Fdi Analysis For Energy Company

1567 words - 6 pages

A company that is considering investing internationally has to evaluate some important factors that are crucial in choosing the right country. In order to choose the best decision a businessperson has to analyze economic, political, geographical and social factors before entering a new market. This paper will analyze two countries using a fictive sample of Energy Company based in US. This private company wants to enter to a new market in one of the BRIC countries located in Europe or Asia. The energy company wants to build ECO power plants (environmental friendly) and introduce a new concept of sustainable energy source to these two countries (Russia and China). Hydropower, Wind power and solar energy should be used to generate the electricity. The capital investment is quite high in order to build new power plants, but the goal of the company is to become a big competition for already existing companies in this industry. The major advantage of this energy company is that they produce electricity for a fair price and do not pollute the environment. The company wants to build a chain of ECO power plants in one of these countries and expand to other markets outside the US.

Social risks and benefits
Russia and China are countries with large population. These states belong to BRIC group, which are countries with fast developing economy. Both are very attractive destinations for foreign direct investments that can benefit whole country. Despite of the prosperity a huge amount of the population live below the poverty line and lack basic needs or education. The average wages in these countries are very unstable because they vary from region to region. While average wages in China are rising those in Russia are still too low. The “advantage” of lower salaries can attract FDI to the country but still the labor is non-educated and the investor has to train the labor force. The situation in China is quite similar. The average wages are still lower comparing to other countries, but many organizations dealing with human rights are trying to improve the exploitation of labor force in China. Because of the amount of the population a demand for electricity is huge and the Energy Company could be prosperous in these two countries. Some regions in both countries lack a reliable and market competitive electricity power supply. From the social point of view both countries are great destinations for FDI because a lot of unemployed people are willing to work for low salaries.

Economic benefits and threats
Both countries have “boosting” economies. In last few years they have become a “big fish” in the world market and started to compete other big countries. Russia is well known for energy industry (oil and gas), metal industry and production of heavy machinery. Some of the wealthiest people in the world are from Russia and guess in which industry their businesses operate. On the other hand, if you go to a supermarket and you want to buy...

Find Another Essay On Russia vs. China: FDI Analysis for Energy Company

A Rhetorical Analysis of “A Plea for Caution From Russia”

768 words - 3 pages Henley PAGE 1 Henley PAGE 1 David HenleyJennifer TaylorEnglish 2030September 10, 2014A Rhetorical Analysis of "A Plea for Caution From Russia"On September 11, 2013, Vladimir Putin presented his viewpoint concerning the United States involvement with the country of Syria in the form of an article, respectfully titled, "A Plea for Caution From Russia." The opinion piece, which was submitted to The New York Times, makes an attempt to address the

Rotarians Aspirations for Russia and China in the Post War Era - Research Paper

2016 words - 9 pages believe that people in Russia and China were not significantly different from Americans. Rotarians sought for a positive relationship with Russia and China because a friendship with these two emerging world powers would stimulate the American economy. America could take advantage of the untouched resources within Russia and China, as opposed to trading with war torn European nations. Drawing from the 1944 January and February editions of The Rotarian

Energy issues in a growing china - a bottleneck for further economic growth ?

1770 words - 7 pages , the student will try to answer the questionHow does Chinas energy consumption correspond with its economic growing potential?The seed of modern China was planted in December 1978; two years after Chairman Mao's death cleared the way for change. VP Deng Xiaoping established his level of authority by starting a reform of the Chinese economy. More openness to market economy, more openness towards FDI, and more foreign influence in the Chinese

Economics vs Accounting Analysis for Business

960 words - 4 pages consider. It is one of the important factors to look at when making a business decision even beyond everyday operations but in expansions, new market analysis and every aspect of deciding on your business steps and directions for successful and truly profitable growth and sucess. Works Cited (1) Celine. "Difference between Fixed and Variable Costs | Difference Between | Difference between Fixed vs Variable Costs." Difference between Fixed and

PEST Analysis for a Company in the Tourism Industry

2127 words - 9 pages The Tourism industry is one of the fastest growing industries in theworld. The World Travel and Tourism Council estimates that in 2004Travel and tourism is expected to generate* US$ 5,490.4 billion of economic activity* 10.4% of total GDP* 214,697,000 jobs or 8.1% of total employment* 12.2% of total exports [1]My task is to conduct a PEST analysis for a company within the Tourismindustry.Within the tourism industry, I have to select one area of

A marketing mix analysis For clothing Syrian company

2348 words - 9 pages around other LBC shops it has to be prepared to face compotators [4]. Secondly, to win over compotators the appearance plays a role. The appearance of the company influences it on the type of style they carry in stock. For example, the more outrageous and spontaneous the décor is, this means spontaneous and trendy cloth will be in stock. As for aiming towards a calm appearance, formal wear will be sold. The more unique the appearance is

A comparison of two types of renewable energies in China: hydro energy and biomass energy, in order to determine the most suitable for China’s future

1860 words - 7 pages energy here comes from the coal power and oil combustion (Feng 2007, 14). However, China needs to look to the future: coal and oil minerals, which are resources for coal burning and oil energy respectively, are exhaustible resources and at one time will come to an end. In addition, China is the greatest emitter of CO2 (carbon dioxide) (Sang and Zhu 2010, 5) where more than 80 per cent of these emissions come from coal firing (Wang and Chen 2010

The Importance of Company Analysis for Minor and Mid-Sized Firms

637 words - 3 pages Company Analysis is an essential part of being managed, particularly for small and mid-sized entrepreneurs. If, at some factor, a business owner does not have a fairly well-defined concept of what his or her market is valued, they are limited in what they can do to improve the value of their business gradually. Preparing a stop strategy is essential for entrepreneurs even when they do not predict promoting for many decades to come because when

Strategic Quality Management and Customer Satisfaction Paper Choose a company that a team member is familiar with Conduct a SWOT analysis for the company

1359 words - 5 pages impact on China during this recession is very minimal so that the buying power is still strong. There's increasing popularity for Internet access. More important, people use computer at much younger age, which broadens Microsoft's potential market. Personal handheld devices are in the trend. This opens up new market segments for Microsoft to develop, which provides opportunities to attract different customers and overpower their competitors.Threats

Peri Espana Case Analysis (For Organizational Behavior): Case Study on working environment in a big construction company in Spain

2344 words - 9 pages There are many factors which account for the positive results of Peri-Espana. Motivation has a big influence in the outcome that PERI has. Company executives have a high willingness to exert huge levels of effort toward the organizational goals. "We run a driving course, this is a cost, but it is good for the company as we have no accidents", this is what Hexel says in his interview. This is an example of an "organizational goal" PERI has. This

Gillette Financial Analysis This assignment was intended to solicit a complete financial analysis of a publicly traded company in the U.S. for the fiscal year ending 2003

1728 words - 7 pages entire generation of young men with its products" (Scoop, 2003). American Safety Razor changed its name in the 1950s to The Gillette Company, and they then began to acquire subsidiaries and expand into new markets while diversifying their investments. Gillette has continued to be heavily dependent on the shaving market for their profits, which have increased since the introduction of the Mach3 razor in 1998. The Mach3 has taken over 20% of the global

Similar Essays

Discuss The Transformation Process Of State Owned Enterprises (So Es) In A Transition Economy. Illustrate By Using A Company You Have Researched In China, Vietnam Or Russia

1085 words - 4 pages profit-oriented modern enterprise system overcoming its previous challenges faced in the uneven distribution in raw materials, labor resources and control pricing. Whereby innovation and improvement was not present, company profit and growth is marginalized by the centralized given output of production. Labor incentive and quality encouragement for output, growth was in effective. With the changes in new concept and approaches, the life time

An Analysis Of The Energy Star Company

805 words - 4 pages the public regarding its achievements and partnership If your company is interested in participating in the annual National Awards program, Energy Star asks that you share how your company has taken steps to reduce its energy consumption. Sharing your story would make your company eligible for the National Award and it might also appear as one of the Energy Star Success Stories. While Energy Star doesn't supply funding for your company to begin

Company Vs. Industry Financial Analysis

764 words - 3 pages above industry average of 9.13%. Kudler is earning more money on less investment. ( to Earning Ratio is very important for Kudler and other companies because it gives the message to investors what to expect in the future. To have valid P/E it is always good to compare it with the company in the same industry. This will show the company value. ( ratios discussed in this analysis are

Financial Analysis On China Eastern Airline Company

5308 words - 21 pages Horizontal analysis over the Profit and Loss Account between year 2000 and 2001 with the explanation.Calculated the China Eastern Airline Company's finance Ratios for both year 2000 and 2001.The analysis of financial indicators of China Eastern Airline Company by from the Ratio calculation and at the same time, some of the risks that company may face in its future business develop was also listed on the Financial Analysis..At the ended of the