International Finance and Investments Essay Example | Topics and Well Written Essays - 2500 words

International Finance and Investments - Essay Example Abundant in natural resources, it has ranked consistently high ranking in nearly all criteria of investment attractiveness. This empirical study will focus on Australias inward FDI profile and performance against the backdrop of global FDI flows. It will thus attempt to achieve some perspective essential to a better appreciation of Australias performance and potential in terms of investment growth and economic leadership in the Pacific rim. Foreign direct investment (FDI), according to Lamborn and Lepgold (2005), is a type of international capital flow that transfers a firms managerial skills and knowledge abroad; it involves the creation of a foreign subsidiary, the assets of which are directly controlled by the parent company. It differs from foreign portfolio investment in that the latter involves the purchase of securities where the businesses are owned or operated by others, and which normally do not exceed 20 percent of issued capital. A distinguishing characteristic of FDIs is the fact that it does not only involve a transfer of resources but also the acquisition of control (Krugman & Obstfeld 1994). It follows that the subsidiary does not only have a financial obligation to the company but also is part of the same organisational structure. The Organisation for Economic Co-operation and Development (OECD) states that FDI "reflects the objective of obtaining a lasting interest by a resident entity in one economy ("direct investor") in an entity resident in an economy other than that of the investor ("direct investment enterprise." (OECD Benchmark Definition). It adds that the lasting interest implies the existence of a long-term relationship between the direct investor and the enterprise and a significant degree of influence on the management of the enterprise. For both developed and developing countries alike, the attraction of FDIs lies in the assumption that greater inflows of foreign investments will

Case Analysis Research Paper Example | Topics and Well Written Essays - 500 words

Case Analysis - Research Paper Example It transports more passengers, and it is also offers more regular schedule for domestic flights compared to its competitors. It offers low fares than any other airline because of its low-operating expenses. Chris Lauer accounts â€Å"Southwest Airlines is the largest low-fare carrier in the world† (1). Southwest’s also has a good customer service, a dedicated staff and personnel, and an exceptional management team that keeps on making an excellent pricing and marketing plan for the company. One of Southwest’s successful strategies is serving less congested airports that helped minimize total travel time for passengers, and this allowed the company to avoid paying the higher landing fees and terminal gate costs. Southwest is routinely improving its information system for faster flow of information in order to enhance the airlines function, cut costs, and improve its customer service On account of Southwest’s aim to carry out its low-fare strategy continually, the company operated only one type of aircraft. Along with this, Southwest flight attendants were responsible for cleaning up trash left by passengers and getting the plane presentable for the next flight while rival carriers had cleaning crews. The airline also did not have a first-class section on any of its planes. Also, passengers with checked baggage who were connecting to other carriers in order to reach their destinations were not offered baggage transfer services. Southwest also has a tarnished reputation regarding the management’s failure to conduct the required inspections for fuselage fatigue cracking. Southwest’s has growth opportunities by having a first-class section on its planes and by serving more domestic flights and possibly international flights. The airline should also offer a baggage transfer services to passengers who have connecting flights with other carriers in order to improve its customer service.