Investment in emerging market or the effects of foreign direct Dissertation

Investment in emerging market or the effects of foreign direct investment(FDI) in emerging market - Dissertation Example Hence, the impact of FDI can be ascertained through reports and academic articles. FDI alone does not mean success and it depends on various other factors. With a view to evaluate the impact that the MNCs make by entering developing economies, this study was conducted. This study is based purely on secondary data through reliable sources. After reviewing literature on the theories and perspectives on FDI and on emerging economies, two MNCs that have invested in two different economies – China and India - were studied. Yamaha of Japan invested in India as a market expansion strategy and achieved initial success. Their investment and control was limited and as competition increased, they could not sustain. They still have two plants in India but they are yet to achieve success. Cultural distance seems to be the dominant factor in the outcome. In the case of China, General Motors of the US adopted a unique strategy by entering through investments in research and development at th e behest of the local government. Gradually they could enter into manufacturing and today they sell more trucks in China than they do in the US. GM adopted a vertical approach to FDI in China because of the huge difference in the factor endowments. Thus, the success or failure of the MNCs in developing economies requires taking into account the risk factors and knowing how to mitigate these risks. Prior experience is not enough. Table of Contents 1. Introduction 1.1 Background 1 1.2 Problem statement 2 1.3 Organization of the study 3 2. Literature Review 4 2.1 Definition and concept of FDI 4 2.2 Drivers of FDI 5 2.3 Emerging economies 7 2.4 FDI in emerging economies 9 3. Research Methodology 10 3.1 Research Philosophy 10 3.2 Research phenomenon 10 3.3 Research design 10 3.4 Research strategy 11 3.5 Justification for literature review 12 4. Findings and Discussion 14 4.1 India 14 4.2 China 17 5. Conclusion & recommendations 22 5.1 Conclusion 22 5.2 Recommendations 23 References 25 Ap pendices 27 1. Introduction 1.1 Background The developing economies comprising of low-income economies (with an annual gross national income per capita of $905 or less) and lower-middle income economies (income per capita between $906 and $3,595) jointly produce 41% of the world’s output, according to the World Bank Development Indicators 2008 report (Lenartowicz & Balasubramanian, 2009). Moreover, 5 of the 12 largest economies are now in the developing world. China and India’s economies are not expected to grow 22 times their current size by 2050 whereas the US is expected to grow only 2.5 times approximately. The developing countries constitute more than 80% of the world’s population. The geographical focus of growth has shifted towards the developing economies, which is the reason that the multinationals have been trying to develop economies in Asia, Africa and South America as profit sources. While the MNCs from the developed nations were seeking suitable ci rcumstances for foreign market access, the developing nations also strived to draw the attention of the foreign investors by offering incentives (Michi, Cagatay & Koska, 2004). This led to a serious competition to access the developing nations’ markets and the evaluation was based on costs, internal market and ownership/location advantages. The developing nati

Randomised clinical trials Essay Example | Topics and Well Written Essays - 4750 words

Randomised clinical trials - Essay Example The critical resource of D G Altman's "Practical Statistics for Medical Research" was also available at Google Books. Various search terminologies were used which include "Evolution/History/Review of Clinical Trials", "Ethical issues of clinical trials", "Nazi medical war crimes", "Nuremberg/Helsinki/Belmont" codes. Formulae for the sample size calculations were also accessed from journal publications and some power point presentation slides which have been cited and calculations were performed manually. Owing to the practical significance of implications of therapeutic interventions for patients, historians have shown an active interest in the charting out of evolution of clinical trials. Histories of clinical trials have been recorded and they have analysed the development of quantification in therapeutic evaluation, the emergence of probabilistic thinking, the application of statistical methods and theory and the sociology, ethics and politics of clinical trials as succinctly summarized by Chalmers (1) in 2001. The basic concept behind the modern day clinical trial is not a new one. In fact, the earliest recorded reference to something resembling a clinical trial can be found in none other than the Bible. The extract, which is found in the Book of Daniel, describes the efforts of the Babylonian king, Nebuchadnezzar II (605-562 BCE), to compare his recommended diet, consisting of meat and wine, with one of legumes and water over a 10 day period. At the end of the trial the king noted that those on the legumes and water diet were fitter than those who had been fed meat and wine and switched the latter to legumes as well. Inclusion of blinding and placebos to reduce observer biases comprise an important factor in planning an effective RCT. Records of these point out to as early as eighteen century when Dr.Benjamin Franklin was appointed by King of France in the Royal Commission to judge the authenticity of "Animal Magnetism" which alleged that sicknesses were caused by some apparent "obstacle" in the flow of body fluids and could be removed by the touch of a physicians finger or by pointing an iron rod. In a retort to the small percentage of success, Franklin replied, " the Spirits given by the Hope of Success them to exert more Strength in moving their Limbs " Clearly, Franklin was aware of what we now call 'the placebo effect' as described by Huth (2) in 2006 Further, Booth (3) in his book in 2005 documented the role of Physician John Haygarth in 1810-1820 attacked the widespread quack of Perkinism which involved "redirecting the natural body electricity" by using bi-material rods and was the first physician to carry out a single blind clinical trial using a placebo. May it be the instance of the challenge put forth by Flemish physician Jean Baptist Von Helmont of ensuring that like is compared with like in the case of people suffering from fevers, pleurisies without bloodletting in the 1700's or Amberson flipping a coin for unbiased allocation for assigning treatment in the Tuberculosis trial in 1938; medical practitioners have considered the ethical aspects of fair allocation and avoidance of undue advantage since a long time now. Unbiased comparison groups according to Chalmers (1) in those times would result either from "schedules (coin tosses, selection of different coloured beads from an urn, reference to