Foreign Direct Investment in Argentina, Brazil and Chile

Foreign Direct Investment in Argentina, Brazil and Chile Foreign direct investment is an establishment of a long-lasting relationship by an investor of one economy in an enterprise owned by another economy. For the relationship to exist both parties must agree on certain terms of operations and the relationship starts with an initial transaction between investors and the enterprise of interest and among affiliated enterprises.Advertising We will write a custom report sample on Foreign Direct Investment in Argentina, Brazil and Chile specifically for you for only $16.05 $11/page Learn More Foreign direct investors may be organizations, people or public enterprises which run in foreign countries. This relationship between investors with foreign economies has a degree of influence on the management of various economies. The following is information about Foreign Direct Investment (FDI) in Argentina, Brazil and Chile. FDI environments of the three countries have been compared in terms of the countries’ trading partners and major foreign investors. The FDI performance index together with the merger and acquisition level for each country has also been highlighted. According to UNICTAD (2012), FDI in Argentina, Brazil and Chile and generally in Latin America is high and this has been attributed to major privatization and growth prospectus in the region. Foreign Direct Investment in Argentina Argentina is a South American country neighboured by Bolivia, Brazil, Chile, Paraguay and Uruguay. Argentina possesses a mixed economic system characterized by private freedom and a centralized economic regulation and planning by the government. Major trading partners of Argentina in Latin America include Brazil, United States, Mexico, Paraguay, Chile and Venezuela. Foreign trade plays a bigger role in Argentine economic development and it contributes a lot to the Gross Domestic Product of Argentina. However, agriculture is the backbone of the economy. Export goods include grains, cattle and farm product s. It has been reported that Argentina is the world’s largest cattle producer (globalEDGE, 2012). High technology goods and services at the moment are also becoming important export goods for Argentina. Argentina has many foreign direct investments; the leading firms doing FDIs are United States companies. About 500 United State companies are currently operating in Argentina.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Main investment sectors in Argentina include financial, information and manufacturing sectors. Between 2001- 2002, it has been reported that increased arrears to international creditors and increased level of claims from foreign direct investments caused an economic crisis in Argentina and this is yet to be solved (globalEDGE, 2012). The Foreign Direct Investment Performance Index computed for three years from 2005 to 2007 for Argentina was 0.871 which r anked the country at position 90. This was a drop in the FDI index because Argentina was ranked position 81 based on the FDI performance index computed for three years from 2004 to 2006 (UNCTAD, 2012). FDI performance index is usually calculated for three years to account for errors which may occur during collection of data for estimation of the FDI performance index. Foreign Direct Investment in Brazil Brazil is the largest country of South America; neighbouring countries of Brazil include Argentina, Bolivia, Colombia, Paraguay, Peru and Venezuela. The country has a free price system which determines the prices of goods and services. Brazil trading partners in South America include Uruguay, Paraguay, Argentina and Mexico. Most of these countries have bilateral or trilateral ties with Brazil. This trade agreement allows free trade between these countries and Brazil. Agriculture is the major sector which supports the large economy of Brazil. Foreign exchange is also important for eco nomic development of Brazil. Trade goods include: sugarcane, coffee, tropical fruits, frozen orange juices, cattle and milk (globalEDGE, 2012). Brazil encourages foreign direct investments and indeed it has the largest number of FDIs in South America. This is because FDIs contribute a lot to economic development of Brazil. Foreign direct investments in Brazil are dominated by United States Companies. Areas of investments include off-shore oil, biofuel and nuclear power production. Infrastructural sectors like roads, airports, spot facilities are also major investment areas (global EDGE, 2012). Brazil FDI performance index computed for three years from 2005 to 2007 is 0.751 which ranked Brazil position 97. Similarly, Brazil was ranked position 97 based on the FDI performance index computed for 2004 to 2006(UNICTAD, 2012). According to 2012 ranking, Brazil has been ranked position three with a FDI performance index of 1.60 (ATKearny, 2012).Advertising We will write a custom re port sample on Foreign Direct Investment in Argentina, Brazil and Chile specifically for you for only $16.05 $11/page Learn More Foreign Direct Investment in Chile Chile is a South American Country neighbouring Argentina, Bolivia and Peru. Chile has a republican government with a free price system which determines the prices of goods and services. The country has trade agreements with sixty countries. These free trade agreements promote foreign trade between Chile and the countries involved. Trading partners of Chile include United States, Brazil and Argentina. Chile has a high annual economic growth which ranges around 6%. Main exports goods include copper. Indeed the country has the largest copper producing firm (globalEDGE, 2012). On the other hand, Forestry and wood products, wine products and fish meals are also important trade goods in Chile. The country has welcomed a lot of foreign investors recently. One reason which has attracted a lot of foreign investor s to Chile is equal treatment of foreign investors and Chilean investors. This equal treatment of investors in Chile together with simple and transparent registration has increased the number of FDIs in Chile. In addition, foreign director investors in Chile are able to make use of foreign exchange markets where they reap a lot of benefits. According to UNICTAD (2012), Chile was ranked position 37, based on the FDI performance index calculated for three years from 2005 to 2007. On the other hand, the FDI performance index computed for 2004 to 2006 which was slightly higher was 2.686 and it ranked Chile position 35. Foreign Direct Investment index is an important tool because it provides information current and future foreign investments. The index assesses the effects of economic, political and regulatory changes on foreign direct investment in various parts of the world. The level of merger and acquisition activity has been on the increase in Latin America particularly in Argentina , Brazil and Chile (UNCTAD, 2004). North America companies, European companies and other companies which are prominent in the region have been highly active in acquiring other firms and merging with other firms. For instance Spanish largest company, Repsol has merged with various Argentine companies where it has made huge investments (UNCTAD, 2012). Six Spanish companies are also operating in Argentina and are merging or acquiring various Argentine companies. With merging and acquisition, most companies increase their production output and their net sales and this leads to high profits. Due to this, we have cross-border acquisitions and merging where firms are willing to go beyond their countries in which they run to merge and acquire other firms.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More References ATkearny. (2012). Foreign Direct Investment (FDI) Confidence Index. Web. Global EDGE. (2012).Global Insights. Michigan State University. Retrieved from: https://globaledge.msu.edu/ UNCTAD. (2004). Latin America and the Caribbean.United Nations Conference for Trade and Development.9, 1-599. Retrieved from: https://unctad.org/en/Pages/Home.aspx UNCTAD. (2012). Inward FDI Performance Index 2005-2007. United Nations Conference for Trade and Development. Retrieved from: https://unctad.org/en/Pages/Home.aspx

Georges Guynemer - World War I Flying Ace

Georges Guynemer - World War I Flying Ace Georges Guynemer - Early Life: Born on December 24, 1894, Georges Guynemer was the son of a wealthy family from Compià ¨gne. A frail and sickly child, Guynemer was schooled at home until age fourteen when he was enrolled in the Lycà ©e de Compià ¨gne. A driven student, Guynemer was not adept at sports, but did show great proficiency at target shooting. Visiting the Panhard automotive factory as a child, he developed a keen interest in mechanics, though his true passion became aviation after flying for the first time in 1911. At school, he continued to excel and passed his exams with high honors in 1912. As in the past, his health soon began to fail, and Guynemers parents took him to the south of France to recover. By the time he had regained his strength, World War I had broken out. Immediately applying to the Aviation Militaire (French Air Service), Guynemer was rejected due to his health issues. Not to be deterred, he finally passed the medical examination on the fourth attempt after his father intervened on his behalf. Assigned to Pau as a mechanic on November 23, 1914, Guynemer routinely pressed his superiors to allow him to take flight training. Georges Guynemer - Taking Flight: Guynemers persistence finally paid off and he was sent to flight school in March 1915. While in training he was known for his dedication to mastering his aircrafts controls and instruments, as well as repeatedly practicing maneuvers. Graduating, he was promoted to corporal on May 8, and assigned to Escadrille MS.3 at Vauciennes. Flying a Morane-Saulnier L two-seat monoplane, Guynemer took off on his first mission on June 10 with Private Jean Guerder as his observer. On July 19, Guynemer and Gueder scored their first victory when they downed a German Aviatik and received the Mà ©daille Militaire. Georges Guynemer - Becoming an Ace: Transitioning to the Nieuport 10 and then the Nieuport 11, Guynemer continued to have success and became an ace on February 3, 1916, when he downed two German aircraft. Dubbing his aircraft Le Vieux Charles (Old Charles) in reference to a well-liked former member of the squadron, Guynemer was wounded in the arm and face on March 13 by fragments of his windscreen. Sent home to recover, he was promoted to second lieutenant on April 12. Returning to action in mid-1916, he was given a new Nieuport 17. Picking up where he left off, he raised his tally to 14 by late August. In early September, Guynemers squadron, by now redesignated Escadrille N.3, became one of the first units to get the new SPAD VII fighter. Immediately taking to the aircraft, Guynemer downed an Aviatik C.II over Hyencourt two days after receiving his new fighter. On September 23, he downed two more enemy aircraft (plus an unconfirmed third), but was struck by friendly anti-aircraft fire while returning to base. Forced to make a crash landing, he credited the SPADs sturdiness for saving him on impact. All told, Guynemer was downed seven times during his career. An ace of considerable renown, Guynemer used his position to work with SPAD on improving their fighters. This led to refinements in the SPAD VII and the development of its successor the SPAD XIII. Guynemer also suggested altering the SPAD VII to accommodate a cannon. The result was the SPAD XII, a larger version of the VII, which featured a 37mm cannon firing through the propeller shaft. While SPAD finished the XII, Guynemer continued flying over the trenches with great success. Promoted to lieutenant on December 31, 1916, he finished the year with 25 kills. Fighting on through the spring, Guynemer managed a triple kill on March 16, before bettering this feat with a quadruple kill on May 25. That June, Guynemer engaged the famous ace Ernst Udet, but let him go in a sign of knightly chivalry when the Germans guns jammed. In July, Guynemer finally received his SPAD XII. Dubbing the cannon-equipped fighter his Magic Machine, he scored two confirmed kills with the 37mm cannon. Taking a few days to visit his family that month, he rebuffed his fathers pleas to move into a training position with the Aviation Militaire. Georges Guynemer - National Hero: Scoring his 50th kill on July 28, Guynemer became the toast of France and a national hero. Despite his success in the SPAD XII, he abandoned it for the SPAD XIII in August and resumed his aerial success scoring a victory on the 20th. His 53rd overall, it was to be his last. Taking off on September 11, Guynemer and Sub-Lieutenant Benjamin Bozon-Verduraz attacked a German two-seater northeast of Ypres. After diving on the enemy, Bozon-Verduraz spotted a flight of eight German fighters. Evading them, he went in search of Guynemer, but never found him. Returning to the airfield, he asked if Guynemer had returned but was told that he had not. Listed as missing in action for a month, Guynemers death was finally confirmed by the Germans who stated that a sergeant in the 413th Regiment found and identified the pilots body. His remains were never recovered as an artillery barrage forced the Germans back and destroyed the crash site. The sergeant reported that Guynemer had been shot in the head and that his leg was broken. Lieutenant Kurt Wissemann of Jasta 3 was officially credited with bringing down the French ace. Guynemers total of 53 kills allowed him to finish as Frances second-highest scoring ace of World War I behind Renà © Fonck who downed 75 enemy aircraft. Selected Sources First World War: Georges GuynemerAce Pilots: Georges GuynemerHistorynet: Georges Guynemer