International Economics & Policy (EDL 312)-Semester III
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1st Module Assessment
After a decade since the end of civil unrest, Angola economy started an intense reconstruction process, boosted by booming economy based on oil exports and diamonds. During this on-going phase, the Angolan economy has increasingly become an important player in Southern Africa international trade, with imports as a critical part of the economy. Thus, controls on imports needed tightening to secure duties and taxes, previously lost.
The government launched a massive customs modernization program, including radical legal changes which could impose large penalties to non-compliant economic operators. Part of this challenge laid in communicating new obligations to importers with appropriate dissemination.
Since January 2002, Bureau Veritas has been contracted to conduct Pre-Shipment Inspections (PSI) for the Angolan Government. The main objective was to tighten customs controls to increase revenues from duties and taxes on goods entering Angola. Bureau Veritas implemented a dedicated structure in Angola with 60 employees in the capital Luanda and nearly 30 additional employees in 5 provinces: Cabinda and Soyo in the North, Lobito in the South, Namibe further South and Santa Clara at the border with Namibia.
Bureau Veritas built up a comprehensive database relating to import certificates issued which it, continuously shares with customs authorities as well as other offices in Angola. In parallel, Bureau Veritas became responsible for communicating to both importers and exporters all new regulations established by Angolan Authorities.
Seminars and workshops were held to raise the understanding of the new obligations, not only in Angola but also in some of its key trade partner nations: Portugal, South Africa, and Brazil. Bureau Veritas approach is to treat importers as clients, supporting their needs to understand all new regulations and increase awareness to avoid penalties and delays.
Bureau Veritas worldwide network has been greatly appreciated by the client; the network structure was adapted to suit Angola´s needs. Customs officials have received necessary training and Bureau Veritas continuously shares information to support controls.
The Angolan Customs authorities report excellent results after the implementation of their modernization program. From revenue receipts of $200 million on imports in 2002, the figure rose to $3.797 billion in 2010, a remarkable improvement of nearly 1800% in 7 years. Tighter legal, and customs controls have led to greater confidence in trading with the country. Correct revenues are being paid and it is widely recognised that they are contributing to the financial health of the nation’s economy.
The speed of processing imports also improved, dropping from an average of 40 days to 10-15 days currently. Close communication with importers and exporters reduced misinterpretation of legal obligations. Angola also benefits from detailed reporting of inspection certificates, a comprehensive and updated valuation database of imported goods, as well as online access to documents related to imports subject to PSI. Permanent communication between Customs officials and Bureau Veritas proved to be beneficial for this partnership
Question 1: Agola economy started reconstruction process boosted by booming economy based on __
a. daimond
b. Oil exports & diamond
c. gold
d. Bronze
Question 2. Bureau Veritas approach is to treat importers as clients, to understand all new regulations and increase awareness to avoid ___
a. penalties
b. Tax
c. Both a & b
d. penalties and delays
Question 3. Bureau Veritas Has been contracted to conduct__ for angloan government
a. Pre-shipment inspections
b. Shipment
c. both a & b
d. none of the above
Question 4. Bureau Veritas implemented a dedicated structure in Angola with _______employees in the capital Luanda
a. 20
b. 30
c. 40
d. 60
Question 5. Speed of import processing dropped from average 40 to ___
a. 20-30 days
b. 12-15 days
c. 10-25 days
d. 10-15 days
Question 6. The government launched massive____ which could impose penalties on non-compliant economic operators
a. Schemes
b. Rules
c. Customs modernization programs
d. Regulations
Question 7. The main objective of the government was to increase ____ from duties and taxes from goods entering angola
a. Profit
b. Sales
c. Revenues
d. none of the above
Question 8. ___ became important player in south african International trade.
a. Australia
b. New zealand
c. Angolan Economy
d. All of the above
Question 9. ____ and customs controls have led to greater confidence in trading within the country
a. Tighter Legal
b. legal
c. both a & b
d. all of the above
Question 10. ____ became responsible for communicating to both importers and exporters all new regulations established by Angolan Authorities.
a. Norway
b. Bureau Veritas
c. Government
d. none of the above
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2nd Module Assessment
After periods of civil disturbance, the Côte d’Ivoire government needed to reinforce the country’s economy. One way was to modernize customs control. The Ministry of Finance wanted to encourage international trade, while also making sure that correct import duties and taxes are paid. To achieve these goals, the government focused on the country’s sea ports, especially its main port in Abidjan. To attract trade, it was important to make the ports more efficient and secure. New customs and security systems were needed to maximize revenues and also to prevent illegal trade.
The government decided to implement a scanner for inspecting imported goods inside containers at the port of Abidjan. To install and operate the scanner, Bureau Veritas (through its subsidiary dedicated to facilitating trade, Bivac) was chosen because of its strong technical expertise. The government invested in the most modern scanner available. There are only two others like it in the world: one on the UK side of the Channel Tunnel, the other at the port of Marseille. It is bigger than other scanners, and can be used to inspect two 40-foot containers at the same time. Up to 30 containers can be checked every hour. The scanner is extremely sensitive. For example, trained staff can look at the color x-ray image and see the difference between a new and a used car tire. Another example: they can count exactly how many computers are inside a container, then compare with the number of computers declared on transport documents. If extra tax or duty needs to be paid, it can be decided almost instantly. As a result, illegal or undeclared items can be found quickly and easily. The Bureau Veritas team works closely with Customs officials. A certificate is given to each container that passes the scanning. Customs can then authorize the container. About 50 Bureau Veritas staff are based at the Port of Abidjan, with two teams of 6 people who are trained to analyze the images.
The new scanner began operating in early 2006. There are many advantages. Imported goods are now being cleared by Customs more quickly. The port of Abidjan is able to serve more customers in less time. It is building a reputation for being more modern, secure and efficient. The systems are now in place to increase revenues from import duties and taxes. Information about containers and the goods they carry is shared with Customs in a quick, efficient way. Bureau Veritas is working in close partnership with the Customs Department to provide a reliable and effective service.
Question 1. A certificate is given to each container that passes the ____
a. Drawing
b. Creating
c. scanning
d. None of the above
Question 2. After periods of civil disturbance, the government needed to reinforce the country’s ____
a. Technology
b. Growth
c. economy
d. none of the above
Question 3. It is bigger than other scanners, and can be used to inspect two _____ at the same time
a. 50-foot containers
b. 40-foot containers
c. 20-foot containers
d. 10-foot containers
Question 4. New customs and security systems were needed to maximize revenues and also to prevent ____
a. Illegal trade
b. Loss
c. Dealys
d. Both a & c
Question 5. The government decided to implement a ____ for inspecting imported goods inside container
a. Device
b. scanner
c. Technique
d. Tool
Question 6. The new scanner began operating in early ___
a. 2008
b. 2006
c. 1987
d. 2005
Question 7. The port of Abidjan is able to serve ____ customers in less time
a. Less
b. 28
c. 34
d. more
Question 8. There are only two others like (scanners)it in the world: one on the UK side of the Channel Tunnel, the other at the port of ____
a. Germany
b. Port Blair
c. Both a & b
d. Marseille
Question 9. To achieve these goals the government focused on the country’s sea ports, especially its main port in _____
a. Australia
b. Sweden
c. Both a & b
d. Abidjan
Question 10. Trained staff can look at the color ___ image and see the difference between a new and a used car tire
a. z- ray
b. x-ray
c. Blurr
d. all of the above
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3rd Module Assessment
The Central African Republic wished to implement a program to manage the sustainable harvesting of its forests and natural resources and ensure efficient and accurate collection of export duties on derived wood products. The diversity and scope of the Congo Basin’s ecosystems constitute one of the world’s premier forest resources and are subject to intense economic pressure. Since 2005, the Government has been focusing on strengthening all actions undertaken to promote wood products exports (logs and sawn timber), while enforcing clearly established rules and regulations for the industry, and has sought to bring all forest concessions under durable and responsible management (end 2011).
Bureau Veritas and its subsidiary BIVAC RCA, working closely with authorities (Ministries of Finance, Commerce, Water and Forests, Hunting and Fishing), have developed a verification program for exported forest products guaranteeing the collection of export duties.
The programme comprises:
1) Inspection, identification and tagging of all logs and sawn wood for export in compliance with international rules
2) Implementation of an accurate and reliable duties collection system for all wood product exports
3) Set-up of an audit trail, from the production location all the way to the port of shipment via the primary border crossings into Cameroon
4) Training local BIVAC RCA inspectors and agents of the administration.
By 2014, all wood from the Central African Republic slated for shipment to the EU must have a license guaranteeing the legality and traceability of exported wood products.
Since 2005 wood products for export are identified, quantified, inspected and traced from Central African Republic to the point of shipment. At the end of 2011, the state signed onto the Forest Law Enforcement Government and Trade (FLEGT) through voluntary partnership agreements with the European Union. Bureau Veritas and its subsidiary BIVAC RCA have a direct impact on the FLEGT process by: ensuring inspection and traceability of products produced through sustainable development, ensuring recognition in terms of ethics, professionalism and transparency with regard to all actors in the wood industry (public and private sector), and guaranteeing optimized duty collection.
Question 1. All wood from the Central African Republic slated for shipment to the EU must have a _____
a. Permission
b. license
c. Authority
d. None of the above
Question 2. At the end of 2011, the state signed onto the _____ through voluntary partnership agreements with the European Union
a. Treaty
b. Policy
c. Forest Law Enforcement Government and Trade (FLEGT)
d. both a & b
Question 3. Bureau Veritas and its subsidiary BIVAC RCA have a direct impact on the ______ process
a. Economy
b. FLEGT
c. Growth
d. All of the above
Question 4. Bureau Veritas focussed on ____
a. Inspection
b. Traceability of products produced through sustainable development
c. Ensuring recognition in terms of ethics
d. All of the above
Question 5. Bureau Veritas has a subsidiary named ____
a. Angolan
b. Ban thang
c. BIVAC RCA
d. Abdijain
Question 6. Government has been focusing on strengthening all actions undertaken to promote _____ exports
a. wood products
b. Glass
c. Bronze
d. Brass
Question 7. Implementation of an accurate and reliable duties collection system for all wood product exports is looked after by ___
a. Bureau Veritas
b. BIVAC RCA
c. Both a & b
d. Government
Question 8. The diversity and scope of the Congo Basin’s ecosystems constitute one of the world’s premier ____
a. Water resources
b. wildlife
c. Both a & b
d. forest resources
Question 9. verification program for exported forest products comprises – Inspection, _____of all logs and sawn wood for export in compliance with international rules
a. Identification
b. scrutny
c. Tagging
d. identification and tagging
Question 10. _____wished to implement a program to manage the sustainable harvesting of its forests
a. U.S
b. Central African Republic
c. New zealand
d. All of the above
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4th Module Assessment
The Company Infinity Air was founded in 1977 by Jimmy Wu, the child of immigrants from China. The company, a manufacturer and distributor of new and refurbished aircraft parts for the commercial aerospace industry, has sold $63 million in products and services to customers in 60 countries. The export of parts alone accounts for more than half of total worldwide sales. Five aircraft manufacturers, including Boeing, account for 80 percent of Infinity Air’s repairs and spare parts. Aircraft serviced are mainly Boeing’s 737-600-900 series, 767 twin-aisle, 747-400, and 777 aircraft. Today, the company employs 115 people and operates out of a 160,000-square-foot facility in southern California, with two additional locations in Seattle and Miami. Because the business is global, Wu has plenty of lower-cost competitors, and he can’t compete on a dollar-for-dollar basis with low-wage countries in Asia. His higher costs coupled with fluctuations in the business cycle were constant worries. Wu says that Infinity Air competes on innovation and business process. “Because of these processes,” he says, “we perform the service in less time and have a strong reputation for reliability and technical support—that’s the key to our international success.” For example, Infinity uses technology to manage customers’ procurement and repair. “We constantly try to be imaginative in everything we do—to make the best products, deliver the best service.” Wu said he also relies on free trade agreements to give him a competitive edge, though they are not a substitute for creativity and innovation. While Korea has always been a good market for Infinity Air, it’s getting even better now with the U.S.- Korea Free Trade Agreement. “It put a spring in the step of our business there. Korea is a huge market for us, and with the trade agreement in place, the market just got a whole lot bigger. We’ve already seen a spike in sales, with new orders coming from the Korean government for maintenance on regional jets, helicopters
Question 1. Company employs ______ people
a. 123
b. 345
c. 567
d. 115
Question 2. company operates out in southern California, with two additional locations in _____
a. Seattle
b. Miami
c. both a & b
d. none of the above
Question 3. Infinity Air competes on innovation and ___
a. Creativity
b. business process
c. organizations
d. all of the above
Question 4. Infinity Air do not substitute for Creativity and __
a. technology
b. Labor
c. Innovation
d. Capital
Question 5. Infinity Air has plenty of ____ competitors
a. High cost
b. Higher cost
c. Medium cost
d. Lower cost
Question 6. Infinity air is getting new orders coming from ___ for maintenance on regional jets & helicopter.
a. US government
b. Angolan government
c. Korean government
d. none of the above
Question 7. Infinity air was a manufacturer and distributor of new and refurnished ___
a. Screws
b. Nuts
c. aircraft parts
d. Both a & b
Question 8. Jimmy Wu was known as ___
a. Innovator
b. the child of immigrants from China
c. technocrat
d. none of the above
Question 9. The Company Infinity Air was founded in ____
a. 1977
b. 1987
c. 2003
d. 1978
Question 10. The export of parts of aircrafts alone accounts for ___ than half of total worldwide sales
a. less
b. very less
c. both a & b
d. more
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5th Module Assessment
Zeigler Brothers began in 1935 by selling livestock feed to farmers near Gettysburg, Pennsylvania. Brothers Ty and Leroy ran the business until Leroy’s son, Tom, took over and changed direction to focus on research and development of specialty animal foods and aquatic diets. Today, the company has two manufacturing facilities in Pennsylvania and two in Mexico, supplies 300 different products, and sells to 50 countries. Zeigler Brothers is a 2013 recipient of the President’s “E” Award for Exports. Chris Stock is the international sales manager. Most of the challenges faced by the company are in the form of helping customers deal with localized issues such as diseases that affect the fish species being farmed. Other concerns include how to find and perform due diligence of prospective customers and to make sure we understand the environmental regulations in the countries in which it does business. Zeigler had a fire about 6 years ago that devastated one of its production facilities. According to Stock, “The fire actually helped us to become more efficient, to make the most of what we have, and to modernize some things as well. We made the most out of what was a terrible situation and really didn’t skip a beat. Our customers are very loyal. And they helped see us through. And it’s amazing how far the company has come since that fire not so long ago.” Zeigler needed to grow, and to do that, it opted to expand its exports, which grew rapidly during the past 5 years and now represent a bit more than 50 percent of total sales. Zeigler now exports to 40–50 different countries every year. Zeigler focuses on markets that could be classified as having more risks than others, such as Nigeria and Ghana in West Africa, and Vietnam, the Philippines, Thailand, and Indonesia in Southeast Asia. India and China are also included. Said Stock, “Africa is on the cusp, I think. A lot of people see the opportunity, so it’s a great time to get in early, because it’s a huge emerging middle class that’s developing there with spending power. They need things more than any other part of the world. They Chris Stock with customers in Vietnam Success Story: Zeigler Brothers 43 have a lack of access to some of the higher-tech products and things that the United States can offer.” Another solution for Zeigler is the U.S. Commercial Service, which Stock calls “a reliable go-to kind of hub.” “In general, we come to them when we have export regulatory issues and we need somebody inside the government to guide us. A big thing about exporting is knowing that you don’t know it all and you’re always going to need support. The government has helped bring us into new markets. We went on a trade mission to Ghana when we were getting our Africa business warmed up and met people there that are clients now and important partners.” Stock believes the company is better as a result of its exporting efforts. “It challenges us. We are able to take opportunities and things we learn in one country and apply them elsewhere. So we’re always learning and one of the great parts about our job is we’re connecting people throughout the world and bringing ideas from one place to the other, whether or not they directly impact our product. We’re a facilitator and our customers see that. And I think it’s a very strong point when they get to know us is that we’re connected throughout the world and bringing solutions from one corner to the next.” One concrete example is making our products easier to use. Stock said: “In Southeast Asia, we were struggling with language barriers. We’ve been very ingrained in Latin America, very comfortable working with bilingual Spanish products and clients. But as we enter the Southeast Asian market we encounter the diversity of languages. Also because we’re in agriculture, one of the end-users of our products may have limited education or ability to read—so our products can be technical in nature, and how do we overcome these hurdles? And so we’ve begun developing and incorporating visual aids, videos, icons, logos, things that will help them understand how to use the product, what it’s designated for. And we’re able to take that and apply it elsewhere, because it is a universal need, but it’s being driven by a specific market area force at the moment.” Perhaps the biggest lesson is that exporting is a “no-brainer.” Stock said: “You should be exporting. If you’re not, start learning about it, talk to other exporters and just go for it. I think the key things to exporting are persistence and patience. You have to realize that when you get in this, it may not be immediate sales, it may take years, but you have to have the long-term vision. If you’re willing to go through a couple of ups and downs, it can pay off in dividends. If you don’t enter the export market, you’re limiting your sales in a big way, no doubt about it.”
Question 1. Challenges faced by the company are in the form of helping _____ with localized issues
a. customers deal
b. Consumers
c. Needy
d. None of the above
Question 2. exporting is a ___
a. Game
b. Gamble
c. Experience
d. no-brainer
Question 3. Exports go through a couple of up and down but it can pay off in ___
a. Installments
b. some time
c. Dividends
d. specific time bound
Question 4. key things to exporting are ____ and patience.
a. Capital
b. International relations
c. dividends
d. persistence
Question 5. Zeigler Brothers is a 2013 recipient of the ____ for Exports
a. Prestige award
b. President’s “E” Award
c. Innovator award
d. None of the above
Question 6. Zeigler focuses on markets that could be classified as having ___ risks than others
a. Less
b. Medium
c. more
d. all of the above
Question 7. Zeigler had a fire about 6 years ago that devastated one of its ____ facilities
a. Manufacturing
b. production
c. Technical
d. Both a & b
Question 8. Zeigler is the _____
a. Owner
b. Competitor
c. U.S. Commercial Service
d. All of the above
Question 9. Zeigler needed to grow, and to do that, it opted to expand its exports, which grew rapidly now represent a bit more than _____ of total sales
a. 40%
b. 50%
c. 30%
d. 23%
Question 10. Zeigler now exports to ___ different countries every year.
a. 40-50
b. 23- 56
c. 34-89
d. 20-56
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Assignment 2
In October 2016, Shenzhen-based networking and telecommunications equipment and services company Huawei Technologies Ltd. (Huawei) unveiled its 14-port and 3-D Hexa-beam antennas to address the challenges associated with the 4.5G and 5G era at the 5th Annual Global Antenna and Active Antenna Unit Forum held in Paris. Commenting on the launch, Zhang Jiayi, president of Huawei’s antenna business unit, said, “Huawei focuses on satisfying the requirements of operators in the MBB (mobile broadband) era.”
Founded in 1987 in Shenzhen by Ren Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA) – the unified organization of the armed forces of China, Huawei started as a sales agent for a Hong Kong-based company selling private branch exchange (PBX) switches. Soon, the company innovated and started selling its own PBX switches. Having established its domination over the Chinese telecommunications market, the company entered the global markets of Russia and Africa in 1996 and later mature markets such as the US and Europe.
The origin of Huawei Technologies Ltd. (Huawei) dated back to 1987 when Ren Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA), founded the company in Shenzhen with the aim of making it the backbone of China’s communications industry.
The company started as a sales agent for a Hong Kong company selling private branch exchange (PBX) switches with an initial investment of US$ 3400. By 1990, it had acquired enough resources to open its first research laboratory. In the same year, i.e. 1990, the company made its own PBX and started selling the switches to hotel networks at prices lower than those of imported devices
HUAWEI’S INTERNATIONALIZATION STRATEGY
In the mid-1990s, the Chinese domestic telecommunications networking equipment market was dominated by giant international telecom equipment companies. Their dominance led to Huawei having a relatively weaker position in China. Ren believed that the Chinese telecommunications market was the largest and among the most open markets in the world attracting global telecommunication giants to the country. As a result, he felt, “The best food has all been eaten up by the global giants and what we can do is to have those leftovers.” This prompted Huawei to consider entering international markets. Commenting on its international expansion, Ren, said, “We were forced to go into the international market for our very survival.”
CHALLENGES IN THE GLOBAL TELECOM MARKETS
Though Huawei achieved huge success in several global markets, the US was a different story altogether. Despite bidding several times since the company first entered America, Huawei failed to win a single big contract from top-tier carriers such as AT&T, T-Mobile, and Verizon. The US telecom companies had had long relationships with home-grown suppliers such as Lucent, Motorola, and Cisco. Moreover, the US telecom majors felt that while the telecom equipment manufactured by Huawei was fine for emerging markets, it was not reliable or suitable for the 24/7 service required by networks in the US. Though by 2011, Huawei had developed some of the most innovative and fastest equipment in the telecom industry, it continued to face resistance in the US….
While Huawei was making several efforts to crack the global telecom markets, in July 2015, Malcolm Turnbull, Communications Minister, Australia, stated that amidst security threats, telecom companies in Australia had been barred from using equipment from Huawei and ZTE. This meant that Huawei would lose its existing business in Australia since it provided equipment for consumer devices and backend networks for Vodafone and Optus. There could also be more trouble in store for Huawei with the Pentagon and the US military announcing plans in October 2015 to ban the use of Huawei equipment.
In November 2016, when the US telecom market announced its plans to build the nation’s 5G wireless network, Huawei was also gearing up to roll out its 5G wireless network by 2020. Though Huawei had earlier stated that it had given up on the US market, Ren hinted that the company had not given up on the country permanently and that it planned to make a “glorious” return to the US. However, Huawei stated that it would not focus on the US market currently but would concentrate on other global markets. According to Ken Hu (Hu), Huawei’s CEO-in-rotation, “For our 5G strategy, we currently focus on markets like China and Japan among others. In the US right now, we’re not making significant progress and we don’t have big plans for that market.” ….
Question 1: 5th Annual Global Antenna and Active Antenna Unit Forum was held in ____.
a. London
b. sweden
c. Paris
d. Hongkong
Question 2. Chinese domestic telecommunications networking equipment market was dominated by giant ____ telecom equipment companies.
a. National
b. State
c. international
d. Regional
Question 3. Huawei started as a sales agent for a Hong Kong-based company selling ____ switches.
a. Multiple
b. Complex
c. Both a & b
d. private branch exchange (PBX)
Question 4. Huawei Technologies Ltd. (Huawei) is Shenzhen-based networking , _____and services company
a. cable
b. telecommunications equipment
c. Television
d. Internet
Question 5. Huwaei started selling the switches to ____ at prices lower than those of imported devices
a. 5g
b. hotel networks
c. Cable
d. all of the above
Question 6. Ren Zhengfei (Ren), a former military engineer in the People’s Liberation Army (PLA), founded the company in Shenzhen with the aim of making it the backbone of_______.
a. Economy
b. China’s communications Industry
c. Telecom industry
d. None of the above
Question 7. Telecom companies in Australia had been barred from using equipment from Huawei and ______
a. Hongkong
b. ZTE
c. US
d. Sweden
Question 8. US telecom majors felt that while the telecom equipment manufactured by Huawei was fine but was not suitable for the ______service required by networks in the US.
a. Regular
b. night
c. both a & b
d. 24/7
Question 9. US telecom market announced its plans to build the nation’s ___ wireless network
a. 2G
b. 3G
c. 4G
d. 5G
Question 10. ____ the president of Huawei’s antenna business unit.
a. Zhang Jiayi
b. Shan ghai
c. Jimm see chnn
d. Both b & c
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