Synthesis of Levulinate Ester in Solvent-free System

Synthesis of Levulinate Ester in Solvent-free SystemMUHAMMAD YUSUF BIN YAAKUB1.0 INTRODUCTIONFabrication of some(prenominal) of oxygenated fuels and chemical from biomass is non an easy task. This is because biomass needs to use catalytic figure outes to defunctionalized selectively (D.L.Klass, 2006). Both biological and chemical catalysts be beingness tailed by the global to transform biomass into biofuel and chemicals (A.Corma, 2007). There is roughly of the potential alternative to non-renewable zero equivalent lignocellulosic biomass for the future demand (M. Aresta, 2012). Feedstock the like biomass is supposed to reduce the carbon dioxide content in the atmosphere (E.S. Olson, 2001).As we know, ester is one of the of the essence(predicate) derivatives that provide be ready by using heterogeneous catalysis (G.D. Yadav, 2012)) including feedstock that can be renewed which is based ester as oxygenated fuels. Making of levulinate ester from glucose, cellulose and sucrose which cognize as one of the estimable renewable fuel additives under corrosive catalysis by using anhydrous condition is kinda desirable (M.E. Harmon, 1990). Biomass which is from derivatives of levulinate blistering also known as one of the top twelve building pile as a precursor for resins and polymer, and to produce a spectrum of fuel additives (B.V. Timokhim, 1999)).There argon a a few(prenominal) reviews already appear on the commercial application about(predicate) levulinate battery- red-hot and its derivatives (M. Kitano, 1975). Ethyl levulinate or levulinate ester which is ester of levulinic acid find application as blending agents in biodiesel, flavour and perfume fabrication, as solvents, plasticizer, etc (R.I. Khusnutdinov, 2007). Also, one of the derivatives from levulinic acid like 2-methyl-tetrahydrofuran can be employed as the additives in gasoline and diesel. in like manner that, levulinic acid that undergoes process of animation which leads to the format ion of -aminolevilunate is utilise as herbicide (J.J. Bozell, 2000). Among every ester of levulinic acid, ethyl levulinate is the one that has been used in fuel as oxygenated additives on a large scale (P.M. Ayoub, 2005). Therefore, levulinate ester which derived from levulinic acid is important in industry which is made by the process of esterification fuel grade ethanol and carboxyl groupic sort out (Wetzel et al., 2006)2.0 LITERATURE recap2.1 levulinic acidLevulinic acid is one of the simplest sugar group of the organic compounds which known as gamma-ketovaleric acid. Levulinic acid also called as 4-oxopentanoic acid in the terms of chemical formula. It drive offs two groups which be acidic carboxyl group and ketonic carbonyl group. (Ghorpade Hanna, 2011). Some of the agricultural consumes such(prenominal) as starch, cane sugar and lignocellulostic are used for the production of levulinic acid. And these renewable biomasses are commercially used for its productions (Wet zel et al., 2006).There are some of the researches brace been done on biomass and found that it is one of the important sources for chemical product and biofuel.( Klass, D. L., 1998). Biomass can be found abundantly such as in forest, industrial activities like paper industry and also in the form of waste from agricultural. Considerable amounts of research hold up been done throughout the world to determine a good track to switch biomass into organic chemicals by identified attractive chemical regeneration method and also to let out economically possible processes for these transformations on a commercial scale. And one of the enkindle option is the formation of levulinic acid from the conversion of lignocellulosic by acid treatment.(Buana girisuta,2007)2.1.1 Application of levulinic acid in industrial fieldThere are some of interesting derivatives that can be found in levulinic acid as the chemical computer program (Timokhin, 1999). The derivatives of levulinic acid and its application have been looked extensively (Bozell, 2000). Besides that, there are also extensive reviewed about the production of levulinic acid from the acid catalysed degradation of hexoses however, there are non much information usable for the underlying reaction mechanism (Horvat, 1985). In reaction of nucleophilic additions upon carbonyl group, several of valuable levulinic acid derivatives are produced. For instance, when nitrogen which contain nucleophiles react with levulinic acid will give either the cyclodehydration products of the amide or amide (7), depends on carboxyl group of levulinic acid which is whether it is protected or not (Shilling, 1966). The reactions of several amines with levulinic acid which form amides are interesting because of their biological activity. Also, one of the product produced from the reaction between levulinic acid with ammonium hydroxide or ammonia water in the front end of hydrogen gas and metal catalyst which is 5-methyl-2-pyrrolidone( 8) (Manzer, 2004) is kind of useful for the pharmaceutical industry.Levulinic acid is quite important for the synthesis of chemicals for the applications like resin precursors, polymer and fuel additives. There are several denomination published which described the properties and potential application for the industry about levulinic acid and its derivatives (Timokhin, 1999)2.2 levulinate esterThere are some research has been studied by the global to determine and get hold of about the biological and chemical transformations to change biomass into feedstock chemicals and biofuels. Among this research, one of the interesting approaches is the production of levulinate ester from the direct conversion of carbohydrates named hexose like sucrose, cellulose and glucose in anhydrous system which contain alcohols using acid catalysts (Peng et al., 2011)-thesis senior.For the production of ester in lofty deliver production, one of the common chemical or acid to use is sulphuric acid. Bu t, there are some problems like formation of polymerization products or by-products due secondary reaction with possible alcohol dehydration or double bounds of the pinpoint (Aracil et al., 2006). Also, there will be several drawbacks when using this type of classical method for the synthesis of ester like energy consumption, high temperature, requirement for special apparatus, formation of substantial amount of by-products, prolonged reaction spot and high waste generation (Chaibakhsh et al., 2011).2.2.1 Synthesis of ester levulinateEsterification of levulinic acid with etanol which produce ethyl 4-oxopentanoate or commonly known as ethyl levulinate, is used as an intermediate for the synthesis of more multifaceted commercial products, as an lubricant additive oxygenate additives for petrodiesel (Joshi et al., 2011). In industry, levulinate ester was obtained via esterification process between alkyl alcohol and levulinic acid with the presence of acid like H2SO4 or sulphuric acid which lead to the production of a high yield products. Also, immobilized lipase which acts as the biocatalyst for this process can become quite effective under milder reaction conditions (Peng et al., 2011).Yadav and Borkar (2008), previously have been report about the enzymatic synthesis of levulinate ester (Lee et al., 2010). Their work focused on kinetics and mechanism study of lipase-catalyzed esterification of levulinic acid with n-butanol using tetrabutyl methyl ether as the solvent. There are also reported by several researchers about the synthesis of levulinylated nucleosides in organic solvent-based system via enzymatic hydrolysis (Garcia et al., 2002 Lee et al., 2010).The application of biocatalysts has arresting advantages for the synthesis of esters. These advantages are milder reaction conditions, high yield and purity, shorter reaction time, biocatalyst reusability and low energy requirement ( Chaibakhsh et al., 2011).2.2.2 Applications of levulinate ester in industr yLevulinate ester are a kind of short chain fatty esters like methyl levulinate, ethyl levulinate and butyl levulinate with their properties similar to the biodiesel fatty acid methyl esters (FAME) (Peng et al., 2011). Such ester are good to be used as gasoline additives and diesel of transportation fuels, which have quite great performances like high lubricity, non-toxic, better liquify properties under cold condition and flashpoint stability (Peng et al., 2011).Not like FAME, ethyl levulinate which is fatty ester with bigger head groups and significantly different hydrocarbon tail give disorder by disrupting the spacing between molecules in lamellae. This disorder is the result from the formation of crystal nuclei with less stable chain packing followed by transformation to a more stable form at lower temperatures (Joshi et al., 2011).Ester levulinate is quite useful as solvents and plasticizers and have been promoted as fuel additives (Ghorpade Hanna, 2011). Levulinate ester is adaptable chemical feedstock with abundant potential in applications for the industry either in fragrance industry, flavouring or as blending component in biodiesel (Peng et al., 2011). For that reason, esterifications of levulinic acid to ethyl levulinate is quite significant as it can be used as plasticizing agents, fuel additives and odorous substances. (Dharne Bokade, 2011).2.3 fermentation alcoholEthanol known as ethyl alcohol is a flammable, volatile and colorless liquid. Its molecular formula is C2H5OH and its hoagie mass is 46.07. The ethanol plays a role as organic solvent, increase the mutual solubility in water, ester and glycerides. The production of methyl ester is not quite desirable rather than ethyl ester which has considerable interest because of the redundant carbon atom brought by the ethanol molecule slightly increases the cetane number and heat content (Tongboriboon et al., 2010). Besides that, ethyl ester also has cloud and pour points that are lower than methyl ester. This fact improves the cold outgrowth (Tongboriboon et al., 2010).Also, ethanol as extraction solvent is preferable than methanol because it has much more power for breakup in oils. This could thus enable the product production in a solvent-free system (Tongboriboon et al., 2010).2.4 BiomassThe term biomass is outlined as any organic matter which is available on a renewable basis, including dedicated energy crops and tree, feed crop residue, agricultural food, wood and wood residue, aquatic plants, animal wastes and other waste visible (Kamm, 2006). The once a year production of biomass is about 1.72.01011 rafts (Zoebelin, 2001) however, only 6109 tons are currently used for food and non-food applications. Food applications are by far the most important (96.597%). And the rest is used in non-food applications, such as a feedstock for the chemical industry.There are a lot biomass sources which is available for further conversion and utilisation. For the biomass feed stock, its selection is very important for the points of view of both socio- and techno-economical. Actually, biomass feedstock should not compete with the food chain for some ethical reason. Waste streams like agricultural waste with a low or even negative value are more preferable. It is good to choose sources that not tend to cause diseases. Normally, there are only a few fertilisers that can give the high growth rate per ha per year and available throughout the year.For that particular reason, water hyacinth should be excellent feedstock for biomass for further utilisation and conversions (Buana Girisuta, 2007).2.3.1 Chemical composition of biomassThe chemical composition of biomass depends strongly on its source. generally biomass consists of 2332% hemicellulose, 3850% of cellulose, and 1525% lignin (see Figure 1). Cellulose is a non-branched water-insoluble polysaccharide consisting of several hundred up to tens of thousands of glucose units. Cellulose isthe most abundant bio polymer synthesised by nature, its amount is estimated at approximately 2109 tons year-1 (Sasaki, 2003). Hemicellulose is a polymeric material, although lower in molecular weight than cellulose, consisting of C6-sugars (glucose, mannose and galactose) and C5-sugars (mainly arabinose and xylose). The third component (lignin) is a passing cross-linked polymer made from substituted phenylpropene units (see Figure 2). It acts as glue, holding together the cellulose and hemicellulose fibres.Figure 1 show the distribution of important constituents in biomass.Figure 2 show the molecular structures of the building blocks of lignin.3.0 PROBLEM STATEMENTSIn this research, there are some of the problems that need to be solved. One of them is what method or technique can be used to increase the production yield of levulinate ester. Besides that, how to improve levulinate ester as fuel additives in biofuel and what is the advantageous of enzymatic synthesis rather than conventional chemical est erifications.4.0 OBJECTIVESIncrease the production yield of ester levulinateImproves the levulinate ester as the fuel additives in biofuelTo study the advantages of enzymatic synthesis over conventional chemical esterifications.

The Origins Of Opera

The Origins Of Op seasonITALIAN OPERA is both the wile of opera house house in Italy and opera in the Italian language. Opera was born(p) in Italy around the year 1600 and Italian opera has continued to see a dominant role in the history of the form until the devote day. Many famous operas in Italian were compose by distant composers, including Handel, Gluck and Moz ruse. Works by homegrown Italian composers of the 19th and early on twentieth centuries, much(prenominal) as Rossini, Bellini, Donizetti, Verdi and Puccini, are amongst the most famous operas ever written and today are put to deathed in opera houses across the world.Dafne by Jacopo Peri was the early composition considered opera, as understood today.1 Peris kit and caboodle, however, did not arise out of a creative vacuum in the area of sung fun. An underlying requirement for the creation of opera proper was the practice of monody. Monody is the solo tattle/setting of a outstanding onlyy conceived melody, d esigned to express the emotional substance of the text it carries, which is accompanied by a relatively simple ecological succession of chords rather than other polyphonic sidetracks. Italian composers began composing in this genius late in the 16th deoxycytidine monophosphate, and it grew in part from the long-standing practise of playacting polyphonic madrigals with one singer accompanied by an submissive reading of the other parts, as well as the rising popularity of much popular, much homophonic call genres such as the frottola and the villanella. In these latter two genres, the increasing tendency was toward a more(prenominal) homophonic texture, with the top part featuring an elaborate, brisk melody, and the lower ones (usually these were three-part compositions, as opposed to the four-or-more-part madrigal) a less active supporting structure. From this, it was only a belittled step to fully-fledged monody. All such works tended to set humanist poetry of a type that essay to imitate Petrarch and his Trecento followers, another element of the periods tendency toward a desire for overhaul of principles it associated with a mixed-up notion of antiquity.By the end of the 17th century some critics believed that a impertinent, more elevated form of opera was necessary. Their ideas would bounce birth to a genre, opera seria (literally serious opera), which would become dominant in Italy and much of the rest of Europe until the late 1700s. The influence of this new placement can be seen in the works of the composers Carlo Francesco Pollarolo and the enormously prolific Alessandro Scarlatti.During the eighteenth century artistic and cultural life in Italy was heavily influenced by the aesthetic and poetic ideals of the members of the Accademia dellArcadia. The arcadian poets introduced many changes to serious symphony drama in Italian, includingthe simplification of the plotthe removal of comic elementsthe reduction of the anatomy of arias a predilection for plots drawn from ancient Classical or late French tragedy, in which the values of loyalty, friendship and virtue were extolled and the absolute role of the sovereign was celebratedBy far the most successful librettist of the era was Pietro Metastasio and he maintained his prestige well into the 19th century. He belonged to the Arcadian Academy and was firmly in line with its theories. A libretto by Metastasio was oft clips set by twenty or thirty different composers and audiences came to hold up the words of his dramas by heart.In the 1600s comic operas were produced only occasionally and no stable tradition was established. Only in the early years of the eighteenth century was the comic genre of opera buffa born in Naples and it began to disseminate throughout Italy after 1730.Opera buffa was distinguished from opera seria by legion(predicate) characteristicsthe importance given to stage action and the consequent need for the medical specialty to follow the changes of the drama, emphasising the expressiveness of the wordsthe choice of singers who were also excellent actors able to perform the drama convincinglya reduction in the use of vista and stage machinery and in the number of orchestral playersthe use of a small cast of characters (at least in the short form of comic opera known as the intermezzo) and simple plots, a good example beingness Pergolesis La serva padronalibretti inspired by commedia dellarte, with realistic subjects, colloquial language and tantalize expressionsas far as singing was concerned the complete rejection of vocal virtuosity a tendency to an incorrect pronunciation of the words the frequent carriage of rhythmic and melodic tics the use of onomatopoiea and interjections.In the second half of the 18th century comic opera owed its success to the collaboration betwixt the dramatist Carlo Goldoni and the composer Baldassare Galuppi. Thanks to Galuppi, comic opera acquired much more dignity than it had durin g the eld of the intermezzo. Operas were now divided into two or three acts, creating libretti for works of a substantially greater length, which differed significantly from those of the early 18th century in the complexity of their plots and the psychology of their characters. These now included some serious figures rather of exaggerated caricatures and the operas had plots which focussed on the conflict between the social classes as well as including self-referential ideas. Goldoni and Galuppis most famous work together is likely Il filosofo di campagna (1754).The collaboration between Goldoni and another famous composer Niccol Piccinni produced another new genre opera semiseria. This had two buffo characters, two nobles and two in between characters.The one-act farsa had a significant influence on the development of comic opera. This was a type of musical drama initially considered as a condensed recital of a longer comic opera, but over time it became a genre in its own righ t. It was characterised by vocal virtuosity a more refined use of the orchestra the great importance given to the production the forepart of misunderstandings and surprises in the course of the drama.Glucks reformsOpera seria had its weaknesses and critics a taste for embellishment on behalf of the superbly trained singers, and the use of spectacle as a replacement for dramatic purity and unity drew attacks. Francesco Algarottis Essay on the Opera (1755) prove to be an inspiration for Christoph Willibald Glucks reforms. He advocated that opera seria had to return to basics and that all the various elements-music (both subservient and vocal), ballet, and staging-must be subservient to the overriding drama. Several composers of the period, including Niccol Jommelli and Tommaso Traetta, act to put these ideals into practice. The first to really succeed and to leave a invariable imprint upon the history of opera, however, was Gluck. Gluck tried to achieve a beautiful simplicity. Thi s is illustrated in the first of his reform operas, Orfeo ed Euridice, where vocal lines lacking in the virtuosity of (say) Handels works are supported by simple harmonies and a notably richer-than-usual orchestral presence throughout.Glucks reforms have had resonance throughout operatic history. Weber, Mozart and Wagner, in particular, were influenced by his ideals. Mozart, in many ways Glucks successor, combined a superb feel of drama, harmony, melody, and counterpoint to write a series of comedies, notably Cos caramel brown tutte, The Marriage of Figaro, and Don Giovanni (in collaboration with Lorenzo Da Ponte) which remain among the most-loved, popular and well-known(a) operas today. But Mozarts contribution to opera seria was more mixed by his time it was dying away, and in spite of such fine works as Idomeneo and La Clemenza di Tito, he would not succeed in bringing the art form back to life again.edit Instrumental musicThe dominance of opera in Italian music tends to overs hadow the important area of instrumental music.27 Historically, such music includes the vast array of sacred instrumental music, instrumental concertos, and orchestral music in the works of Andrea Gabrieli, Giovanni Gabrieli, Tomaso Albinoni, Arcangelo Corelli, Antonio Vivaldi, Luigi Boccherini, Luigi Cherubini and Domenico Scarlatti. (Even opera composers occasionally worked in other forms-Giuseppe Verdis String Quartet in E minor, for example. Even Donizetti, whose hold is identified with the beginnings of Italian lyric opera, wrote 18 string quartets.) In the early 20th century, instrumental music began growing in importance, a help that started around 1904 with Giuseppe Martuccis Second Symphony, a work that Malipiero called the starting point of the renascence of non-operatic Italian music.28 Several early composers from this era, such as Leone Sinigaglia, used native folk traditions.The early 20th century is also marked by the presence of a group of composers called the gen erazione dellottanta (generation of 1880), including Franco Alfano, Alfredo Casella, Gian Francesco Malipiero, Ildebrando Pizzetti, and Ottorino Respighi. These composers usually concentrated on penning instrumental works, rather than opera. Members of this generation were the dominant figures in Italian music after Puccinis death in 1924.8 New organizations arose to promote Italian music, such as the Venice Festival of Contemporary Music and the Maggio Musicale Fiorentino. Guido Gattis founding of the periodical il Piano and then La rassegna musicale also helped to promote a broader realize of music than the political and social climate allowed. Most Italians, however, preferred more traditional pieces and established standards, and only a small audience desire new styles of experimental classical music.

Financial System and Formal Credit Services in Vietnam

pecuniary System and Formal reference work Services in VietnamAn overview of the Vietnamese financial systemOver a 4- year period from 1988 to 1992, the Vietnamese disposal develop initiated a wide carrys of economic tames in put in to enhance the modulation itself from a centrally-planned to a market place-oriented economy. Along with the implementation of state enterprise elucidates and extraneous trade liberalization, the Vietnamese government have promoted a huge second of beveling celestial sphere reforms, which has resulted into a diversification of the financial system. First, a Soviet-style mono avowing system has switched to a two-tier banking system in 1988s with the four heavens-specialised state-owned banks sepa evaluated from the put forward depose of Vietnam (SBV) and playing a key role in the banking system. These four state-owned banks accept the margin for Foreign Trade of Vietnam (Vietcombank), the Vietnam coin bank for Industry and Trade (Vie tinbank), Vietnam rim for market-gardening and arcadian Development (VBARD) and the Bank for Investment and Development of Vietnam (BIDV). The SBV acts as the central bank, providing both on-site and off-site inspection and oversight the routines of both banks and non-bank financial institutions.The public banking sector is comprised of the five state-owned commercial message banks which altogether dominates the market. Second, the Vietnamese government withal encouraged and created various opportunities for the influx of revolutionary players into the financial sector. These newcomers consisted of foreign banks, non-bank financial institutions much(prenominal) as insurance companies, join-stock commercial banks, join-venture banks, even reference rating funds and cooperatives. In addition, this insurance has led to a dramatic rise in the quantities of peges and representative offices of existing state-owned commercial banks at that period. Bank for Foreign Trade, for ex ample, has innateled 32 municipal and provincial branches (World Bank 2002). The branch network of the banking sector totally covers nearly 10,000 wards and communes throughout the nation.The economic reform process has, additionally, brought about the marked transformation in agriculture ware sector. The presence of private family removedms and non-farm enterprises in pastoral sites has increased pressures on the government for the establishment of ac quotation institutions. Vietnam Bank for market-gardening and Rural Development (VBARD) and Vietnam Bank for Social insurance policy (VBSP) has whereforece become the dominant financial service providers to the low-income population, and used the all-inclusive network of political chew organizations to mobilize, appraise, and monitor clients (BWTP 2008). want many early(a) developing countries, Vietnamese quotation markets is the co conception of formal and sluttish recognize markets. In general, cracker-barrel financi al system in Vietnam fucking be assemblyed into three main categories formal sector, semi-formal sector and informal sector (Marsh et al. 2004 Lan and An 2005). The formal sector includes Vietnam Bank for Agriculture and Rural Development (VBARD), Vietnam Bank for Social Policy (VBSP) and People identification Funds (PCFs) (World Bank, 2002). Semi-formal reference point is provided by the National and internationalist programs targeting at a selective range of borrowers and conforming to certain development targets (Pham and Lensink, 2007), and by Microfinance plans of Mass Organizsations as well as by Savings and acknowledgement rating Schemes supported by NGO and donors. The informal sector consists of private moneyl completioners, revolving recognise associations (RCA), relatives, friends and other sepa order. The informal sector has been the traditional provider of credence in farming(prenominal) areas, as the result of an underdeveloped formal credit market (Marsh e t al. 2004).In programs towards pitiable and vulnerable households, the Vietnamese Government included credit provision through microfinance institutions (MFIs) in their anti-poverty programs for the rural areas (Commins et al., 2001). These are programs focusing on female clientele who often join in groups, providing infinitesimal contributes for them to empower in income-generating activities (Armendariz and Morduch, 2005). The expected outcome is that rural female entrepreneurs can contend better with emergencies such as unfavorable natural events or be protected from further impoverishment during economic stress (Rutherford, 2002).The formal sector has been the key credit provider in the Vietnamese rural credit market, in which VBARD and VBSP are both the dominant. VBARD has the largest percentage of outstanding loans in the year 2010, accounting for 63%, followed by VBSP at 30%. The tierce perplex pop offs to PCFs, at 6%. In contrast, microfinance institutions occupies merely 1% of outstanding loans. course Percentage of outstanding loans of main sourcesto household borrowersSource (PCFs 2010 VBARD 2010 VBSP 2010 Mix securities industry 2012)Source Microfinance Resource Centre (2001)Regulations regarding banksWith the aim of improving the provision of credit for individuals, households and firms in need and enhancing the effectiveness as well as the wisdom of credit providing institutions, the Vietnamese government has promulgated a wide range of regulations on banking operations. These laws set legion(predicate) regulations for credit products offered, as well as for activities of credit institutions, ranging from capital norms, restrictions on asset/liability management and limits on credit institutions investment in real estate.In 2010, the government has issued the find no.41/2010/ND-CP on a wide range of credit policies aimed at rural and rural development. First, credit institutions should, under the decree, be encouraged to provide th eir credit service for rural areas with appropriate interestingness pass judgment, in accordance with commercial impart tool. Second, add procedures should be simplified, facilitating rural borrowers to get access to loans. Moreover, attention policies for rural borrowers should also be built up so as to curb expected risks, say, natural disasters, earthquakes or epidemics. Third, the decree will track down as a well-grounded framework for the political system and the entirely society in the enhancement of the change provision for the agricultural and rural development.Interest lay out policyInterest rate policy is among life-and-death policies for the reform of banking sector regulated by The Law on Banks and reliance Institutions. Since 2000, the government has gradually liberalised interest rates. And it is the liberalization of the interest rate that gives financial institutions a little more freedom in determining the rates on impart and saving (WB, 2002). The re placement of the base interest rate mechanism plus margins for the ceiling mechanism regarding the domestic currency-based loaning has then been applied for all formal financial institutions. Both base add rate and margin, under this mechanism, acts as limits for the loaning rate needs of the banks. This new mechanism provides adequate flexibility to credit institutions and should help to enhance firms access to credit (IMF, 2002a). Furthermore, the Vietnamese government has also undertaken the regulation for the difference between lending rates and saving rates. According to this regulation, this spread cannot exceed 0.3% and 0.5% per month for short-run loans and medium-term and long-term loans respectively, which has in turn discouraged rural financial institutions from extending downhearted loans to the rural piteous and low-income households, given the high transaction costs for lessened loans (Dao, 2002).Lending technologyIn Vietnam, thither are two rife lending methods namely individual lending and group lending. As shown in the table infra, group lending has become more popular than individual lending, with the proportions for the year 1995, 1998 and 2001 standing at 98.1%, 92.1% and 87.6% respectively. Meanwhile, the percentages for individual lending method was oftentimes lower between 1995 and 2001. While individual lending technology typically focuses on the role of supervise each individual borrower, the mechanism for group lending technology relies on the enforcement of joint liability of joining peniss. Generally, lending technologies can be distinguished based on different dimensions such as the primary source of study, screening and underwriting policies/procedures, structure of the loan contracts, and monitoring strategies and mechanisms (Berger and Udell 2006, hereafter BU06).Source McCarty (2001)confirmatoryUnder Decree No.41/2010/ND-CP, the mechanism of substantiative for loans has been regulated as follows First, credit insti tutions may take the provision of loans to customers with or without security assets into consideration under watercourse regulations. Second, substantiating-without lending conditions, procedures, and loan amounts mustiness be in compliance with current provisions of law on credit institutions provision of loans to borrowers. For individuals and households engaged in agriculture, forestry, fishery or common salt mathematical product, the amount of loan can total up to 50 cardinal VND, whereas the go for for households operating business or production activities or providing services for agriculture and rural areas is up to 200 million VND. And up to euchre million VND for cooperatives and farm owners. Third, credit institutions consider providing trust-reliant loans for individuals and households on the basis of cover by sociopolitical organizations in rural areas under current regulations. Sociopolitical organizations have business of coordinating and performing all or s ome of the credit operation stages after reaching agreement with the lending credit institutions.In reality, related is regarded as one of mandatory requirements for loans by formal credit institutions. Credit institutions often ask for collateral from borrowers in order to ensure the prospect of loan repayment, as well as edit out the asymmetric information between borrower and formal lender. The asymmetric information occurs since most of the banks stay far away from potential rural borrowers, and they find it difficult to acquire prior credit history information as well as current production/business information about those borrowers. In such a case, collateral requirements are given so as to mitigate these problems. Collateral is usually in the form of immovable assets such as knowledge domain use certificates, buildings, fixed assets, bank accounts, and other valuable assets, in which estate of the realm use certificates and real estate are the most preferred collateral b y banks. In rural areas, thither has been a small yield of households that have met the collateral requirements imposed by formal financial institutions, whereas a markedly bigger number of rural borrowers have faced the miss of of collateral for their loans. This has, in turn, confined rural borrowers from having access to loans from formal credit institutions. In such cases, these rural borrowers have to search for other credit providers that do not require collateral, say, private moneylenders, friends, or neighbours which all belong to the informal sector.Therefore, giving households the possibility to obtain ground-use rights and use them as validation of collateral can give rise to the asymmetric information substitute between borrower and formal credit lender, thus fostering credit proceeding in rural credit markets accordingly.The formal sectorVietnam Bank for Agriculture and Rural Development (VBARD)Established in 1998 along with the the intense reform of the financial system and the reintroduction of commercial banks in Vietnam, the Vietnam Bank for Agriculture and Rural Development (VBARD) has been regarded as a state policy bank and accepted subsidy from the Vietnamese government. VBARD has also been known as a legal entity with the sharp focus on the agriculture sector and rural areas. By the end of 2001, VBARD has become among leading commercial banks in Vietnam, having the most extensive branch network in Vietnamese rural areas. The bank then had an operating network of more than 2,300 branches and transaction offices nationwide at the end of 2010.There are the three following credit methodologies that VBARD has utilized for its lending operations. The first methodology is the the provision of individual loans for rural borrowers and enterprises. The mandatory requirement for this loan type is a proof of collateral, in which a orbit use certificate the so called Red Book for agricultural land or Green Book for forest land is the most w idely used. Second, VBARD has also applied group lending mechanism in order to increase its coverage of rural households, as well as to reduce transaction costs associated with small loan accrual. According to this method, each member of lending group bears equally the joint responsibility of loan repayment before a new round of loans is initiated. The eventual methodology involves the existence of guarantee groups formed by members of mass organizations, say, Vietnamese Womens heart, husbandmans Union or Youths Union in lending process. These mass organizations play an important role in guaranteeing the loan repayment, and loans offered by VBARD are then channed through these groups to the target borrowers who are mainly unable to provide a proof of collateral.VBARD specializes in lending to rural households and small-scale enterprises involved in agriculture or off-farm enterprises, but the bank has recently expanded its urban branch network to capture the market of urban smal l enterprises (BWTP 2008).The outstanding loans granted by VBARD to the economy totalled up to 414,755 billion VND in the year 2010. While the percentage of loans for households accounted for 51%, the figure for non state-owned company was 43%. The proportions of loans supplied to state-owned company and to small cooperative enterprises were considerably lower, at 5% and 1% respectively.Figure. Outstanding loans of VBARD by sectorSource VBARD (2010)The feast chart 1 indicates the credit procedures adopted by VBARD. It is clear that there are thirteen distinct stages in the process of loan provision, commencement ceremony with the collection of loan masking forms by bank formalizeds and ending with the livery of appropriate loans to the borrower.Chart 1 Lending procedures by VBARD in VietnamNotes1. Bank positives receive loan act forms from the applicant2. After receiving loan application forms, bank officials report to the head of the credit plane section3. The head of the c redit department assigns a bank official to examine the loan application forms to see if it is filled in properly4. The assigned bank official appraises the applicant, mainly based on collateral5. The assigned bank official informs the head of the credit department about the applicant6. The head of the credit department assesses the information and reports it to the director of the bank7. Director of the bank decides on the loan and informs the head of the credit department8. The head of credit department informs the assigned bank official about the decision9. The assigned bank officer informs the applicant10, 11, 12. Internal information among the banks change departments13. The treasury department disburses loans to the applicant, if accepted.Source Adapted from Ninh (2003)Vietnam Bank for Social Policy (VBSP)The Vietnam Bank for Social Policies was set up under Premiers stopping point No. 131/2002 QD-TTg dated October 4th, 2002 and the Governments Decree No. 78/ND-CP dated Oct ober 4th, 2002 on the provision of credit for the poor and other policy beneficiaries. VBSP was set up on the basis of the reorganization of the Bank for the low and separated from VBARD with the aim of detaching the lending policy mechanism from the commercial lending mechanism. Since then, VBSP has developed its own network of 610 branches in 63 provinces/cities throughout the unpolished and has extended loans to 46% of the poor in rural and mountainous areas (GSO sketch on the results of VHLSS 2006).VBSPs operations are under the supervision of the State Bank of Vietnam, whose the primary objective is to provide non-collateralized preferential loans of different rates and maturities to poor individuals, households, and organizations eligible for social benefits and policies. VBSP is conducting the method of entrusted lending via the four mass organizations, namely Women Union of Vietnam, Farmer Union of Vietnam, War Veteran Union of Vietnam and Youth Union of Vietnam. These fo ur organizations take charge of some lending steps of VBSP such as establishing savings and credit groups organizing certifying poor households, supervising borrowers in using loans properly etc, whereas VBSP has responsibility for conducting loan disbursement, loan collection and safe treasury management.The credit programs provided by VBSP has become increasingly diversify and appropriate with different borrowers. First, for the purpose of the implementation of the National Target Program on Hunger Eradication and Poverty Elimination initiated in 1988s, VBSP has naturalised credit programs particularly targeting at poor households nutriment in rural areas. The second customer group of VBSP is university/college students whose families are ranked as poor households at the commune level or village level. The objective of this lending is to support financially for those students in order that they have opportunities to fulfill their study. The third credit program of VBSP is for ho useholds living in disadvantaged and remote areas where there is very poor infrastructure or challenging climate conditions. The 4th credit program involves an implementation of the national strategy on bang-up water supply and environmental sanitation in rural areas for living conditions improvement, and the target customers are still poor households in rural places. Fifth, VBSP also builds up credit programs for job creation aimed at poor households and small business enterprises. Apart from credit programs listed above, there are still other various programs supporting for poor households in rural areas.The table below gives a comparison in terms of the percentages of outstanding loans allocated by VBSP for numerous credit programs between 2004 and 2010. It is evident that credit programs for production and business of poor households made up the largest percentage in both years, with 82% in 2004 and 40% in 2010. The second largest in 2010, which occupied 29% of the total outst anding loans, was credit programs for education. In contrast, that for migrant workers to go abroad accounted for only 1%.Table The proportions of outstanding loans by credit programs.Source (VBSP 2004 VBSP 2010)In regard to the loan interest rate, in 2013, the annual lending interest rate of the market was 10.8%, while the figure for VBSP was merely 6.0%. That means VBSP support 4.8% of the lending interest rate for the poor (World Bank 2004). Since the decision No. 579/Q-TTg dated May 6, 2009 on the support of the lending interest rate for VBSPs loans was issued, the annual interest rate on loans for agricultural production and off-farm jobs reduced by 5%, from 7.8% to 3.8%, while that of the market was standing at 10.5% on average. By late 2010, VBSPs total outstanding loans attach to 89,461 billion VND, 14 times higher compared to that in 2001.Peoples Credit Funds (PCFs)Peoples Credit Funds were established in 1993 after the collapse of rural credit cooperatives. According to Hung (1998), PCFs were constructed on the model of the Caisse Populaire system in Quebec, Canada, with the technical support from the Development International Desjardins (DID). PCFs were funded by the Canadian International Development Agency (CIDA) and supervised by the State Bank of Vietnam.

Elecdyne SWOT Analysis | Country SWOT For Labour

Elecdyne dress up Analysis Country SWOT For push backIntroductionElecdyne is a Japanese small medium enterprise ground in Tokyo, which started business in 1990 with a number of quint workers. all oer ten-spot years, the exploitation of the corporation has change magnitude triumphfully, staff strength has increased to speed of unfounded workers and with the use of technology licensed from a number of multinationals, the fraternity now produces a wide range of electronic products which acknowledge televisions, CD players, DVD players, hi-fi equipments, Mp3 players etc.A brief history into the Japanese saving shows that during the 1980s, the Japanese economy was the envy of the world. GDP per capita had risen from $5,000 in 1960 to $15,000 in 1980, and by 1990 had eclipsed $22,000. Through the leadership of companies like Sony, Japan had flex the clear leader in innovation of consumer electronics products and eminent volume civilize electronic assembly. The combinatio n of growing indigenous demand, global consumer electronics product leadership, and umteen years of enthronization in manufacturing technology and content certainly benefited Japanese electronics producers the 1980s.The unwashed Domestic Product (GDP) in Japan expanded at an annual rate of 3.80 percent in the work quarter. Japan Gross Domestic Product is worth 4909 one thousand thousand dollars or 7.92% of the world economy, harmonise to the World Bank. Japans industrialized, free commercialize economy is the endorse-largest in the world. Its economy is passing efficient and competitive in atomic number 18as linked to international employment, only if productiveness is far cast follow through in protected beas such as agriculture, distribution, and service. Japans artificial lake of industrial leadership and technicians, healthy-educated and industrious work force, high nest egg and investment rate, and intensive promotion of industrial cultivation and contrary deal produced a mature industrial economy. Japan has some natural resources, and trade helps it earn the foreign exchange chooseed to purchase raw(prenominal)(a) materials for its economyOverviewJapan has a history of struggling with deflation. The 1990s be practically referred to as Japans lost decade because of its 10-year struggle with falling prices. As a result, a stagnant Japanese economy dampened internal consumer and business demand, as well as signifi piece of asst investment in domestic electronics employment capacity. As a consequence, Japanese production has grown at sole(prenominal) half the rate of the tot industry over the last ten years, and local production share is on a trajectory to rectify to1980 levels over the neighboring five to ten yearsOver the retiring(a) two years, Elecdyne has remained stagnant the company had an initial success competing with price but is presently finding it increasingly difficult to compete bestown its look at to pay f or licenses, distribution of products is limited as supplies are within the Japanese market only, difficulty of hiring re attempt graduates, and its high wage rates as relative to Eastern europium and mainland China,In order to detect the pros and cons the company is undergoing, a SWOT analysis leave be carried out. The analysis looks at internal factors, the strengths and weaknesses of the business, and external factors, the opportunities and threats facing the business. The SWOT analysis will give a clearer picture into the status of the company and the business environment wherein it is operate in at the present time.STRENGTHS20 years experience in producing electronics100 staff workforcePossession of equipments needed fro production headmaster Product varietyWEAKNESSLimited market(supplies only to Japanese market) woeful financial positionLack of resourcesNo issue in the last two yearsLack of innovationNo branding commitment5% cut down on priceStaff is slight motivatedUnab le to recruit RD graduatesLack of international operations abject market shareOPPORTUNITIESFlexibilityHigh chance for innovationAdvances in technology and the ability to sell via the internetNew market opportunities could be a way to push elecdyneChanges in technology could give elecdyne an fortune to bolster future success. morphologic changes in the industry open different(prenominal) doors and opportunities for elecdyne.THREATSAggressive competitorsIncrease in licence costIncreased contestation from oversea is anformer(a) threat to elecdyne as it could lead to lack of post in their products/services. The actions of a competitor could be a major threat against elecdyne, for instance, if they bring in tender technology or increase their workforce to meet demand. A slow economy or financial slowdown could urinate a major impact on elecdynes business and profits. Lack of international operations. Rapidly changing market Products break down old very quickly.High cost of sav vyPOTENTIAL STRATEGIES FOR ELECDYNEIn order to compete in the electronics market, listed below are some strategies that rouse be useful to Elecdyne.Reduce product range to a few Introduce the company to E-Business Company can decease to an area of overthrow cost Source cheaper suppliers to reduce cost Develop marketing act to promote their products Re-branding of products in order to boost company name conjure work placements for students in order to boost RDRECCOMENDATIONAfter proper and overcareful analysis of Elecdyne Electronics Company, inorder for the company to grow promptly and remain in market, we the circumspection hereby strongly recommend that the company be moved to another outlandish preferably a country that is part of the three-bagger market, so as to gain access to more markets, deepening relations with the oversea economy.Significance of GlobalizationThe World Bank defines globalization as the granting immunity and ability of individuals and firms to ini tiate voluntary economical transactions with residents of other countries. Milanovic (2002). In this definition, freedom means the lack of barriers in the cross-border movement of capital and labour force, among other things, and capacity means that at that place is the ability to provide commodities and services across borders or to conduct economic activities in other countries. flavour back at the past, it appears that globalization advanced as technology and information-carrying capacity for transport, parleys, finance, insurance and other aspects developed and policy-making barriers to the movement of trade, capital and other items were removed. These developments boosted income levels, which in turn further deepened economic ties. thereof globalization is a trend that brings approximately economic development. (Boyacigiller, 1990 Harzing, 2001). In order to enjoy the benefits of globalization, it will be necessary to promote technological innovation in companies without bar and promptly adapt economic and social systems to respond to technological innovation, turn down barriers and foster human resources that are able to carry out these changes. Heizo (2004) Structural shed light on is important in Elecdynes relations with overseas economies Structural reform stimulates the domestic economy and is too important in the process of derivation benefits from globalization. In other words, the major objectives of structural reform are to vouch that the market mechanism fully functions, broadly enhance productivity and move labour and capital, among others, from low productivity areas to high productivity areas. This will also allow Elecdyne to reap benefits from closer economic ties with overseas economies. In business, the success of overseas operations has been attributed to several factors, such as good strategy, promising marketing, efficient production and excellent management.Among them, effective expatriate management has been well docum ented (Mendenhall and Oddou, 1986 Dowling et al., 1999). Despite the fact that the company has had no contact with overseas market, we the management of Elecdyne electronics commence decided to deduce a strategy on going global focusing more on countries within the TRIAD market (which are atomic number 63, North America and sec East Asia). Hence we have come up with five possible countries that we could relocate to fetching into consideration two main issues- feeler to technological expertise to avert reliance on large multinationals, and cost minimisation.These countries have been chosen found on some of the following reasonsAdvanced technologyWide area of landFavourable business environmentLow cost of raw materials and production passing skilled labour etc.Analysis of the five countries using SWOTCOUNTRY 1-GERMANYIt is the seventh largest country by area in Europe and the 63rd largest in the world. As Europes largest economy and second just about populous nation (after Rus sia), Germany shares borders with more European countries than any other country on the continent. Its neighbours are Denmark in the north, Poland and the Czech Republic in the east, Austria and Switzerland in the south, France and Luxembourg in the south-west and Belgium and the Netherlands in the north-west.Therefore Germany would conservatively be analysed using the SWOT analysis,StrengthsGermany is the UKs number one European export market and number two world-wideamong the worlds largest and most technologically advanced producers of iron, steel, chemicals, utensilry, vehicles, machine tools, electronicsMarket- Germany hosts the largest concentration of OEM plants in EuropePersonnel Germanys excellent highly-skilled labour force. 750,000 highly-trained and experienced peopleRD- Germany is home to 42 percent of all European OEM and tier 0.5 supplier automotive RD centers.Has some of the worlds best universities, these include skilful University, Munich Germany University of Bonn, Germany etc consequenceant research institutions in Germany are the Max Planck decree, the Helmholtz-Gemeinschaft and the Fraunhofer society. They are one by one or externally connected to the university system and contribute to a vast extent to the scientific output.WeaknessesThe socialists are a strong force and there is labour union problem.The wages are high which increases the be.Cultural differences decomposable business cultureStrict safety and packaging regulationsOpprtunitiesA total of 15 billion euros make available by the Government for RD projects in cutting edge technologies.Easy access to other EU countriesHighly developed E-commerce serviceHigh demand for electronic productsThreatsThreat from new emerging marketsProtection of environment and climateMounting pressure to reduce the CO2 emissions.adjustment time for adapting the high German standardsStiff rivalry from local and global competitorsCOUNTRY 2- POLANDPoland is the 9th largest country in Europe it has a population of over 38 gazillion people, which makes it the 34th most populous country in the world and one of the most populous Union. Its natural resources include coal, sulphur, copper, natural gas, silver, lead, salt, arable land. Poland would carefully be analysed using the SWOT analysis,Strengthscomparatively low cost of labour,favourable geographic stead on transportation system routes,large internalMarket (compared to other Central and Eastern Europe countries).availability of highly qualified labour forcepresence of universities, co-occurrence of authorities, the largest market in central Europe, and possibly the lowest labour costs on the continent,Member of the EULocation between East and westboundLong industrial traditionStable economyStable political systemWide educational systemBiggest country of the EU members in the CEEDiversified industryStill bewitching employment costs benignant tax systemMultinational companies such as ABB, Delphi, GlaxoSmithKline, Goog le, Hewlett-Packard, IBM, Intel, LG Electronics, Microsoft, Motorola, Siemens and Samsung have set up research and development centres in Poland.The Polish consumer electronics marketgrew by 4.5% in 2005 to reach a jimmyof 938.5 one thousand million.WeaknessesEU entrance may drive cost of living higher(prenominal)Poor communication infrastructureInsufficient management cultureWeak ability of domestic RD institutes to cooperate with industry and make commercial use of scientific search resultsShortage of financial instruments for SMEs and innovation development and low ability of entrepreneurs for self-financing of development investmentVery high levels of unemploymentPoland imports much more in electronics goodsthan it exports. The value of imports is morethan twice the value of electronics exports.In 2005 Poland imported electronics goodsworth EUR 6,911.3 million. The growth rate(over 2004) was almost 22.0%.OpportunitiesThe strong inflow of FDIin this celestial sphere in liquid crystal display screens, mobile phones, domestic audio and video equipment,appliances, automotive restraints complemented by electronic contract manufacturers(Flextronics, Jabil, Kimball) and telecom equipment manufacturers (Lucent, Alcatel,Siemens) creates opportunities for sub-supply, electronic components, supply chain and exam services.Poland is becoming the manufacturing hub for TVs in EuropeThreatsCurrent policies are not bringing changes about fast enough to maintain implementation of information societyIndustries in Poland will face higher costs with accession into the EUThere is an increase in competition as multinational companies are investing in the polish market.In Poland the leading manufacturersof TV sets are the international companiesJabil (commissioned by Philips), Daewoo,LG Electronics and Thomson.COUNTRY 3- INDIAThe Republic of India is in South Asia. It is the seventh-largest country by geographical area, the second-most populous country, and the most populo us state in the world. It is bordered by Pakistan, China, Nepal, Bhutan, Bangladesh and Myanmar.Its natural resources include Coal, Iron ore, Manganese, Mica, Bauxite, titanium ore, Chromites, Natural gas, Diamonds, Petroleum etc. India would carefully be analysed using the SWOT analysis,StrengthsIndia is now the worlds twelfth largest economy by market exchange rates and the fourth largest in PPP terms (2003) after US, China Japan. meretricious high-skilled labour needed for theindustry is available in abundance in IndiaIndias low manufacturing costs in skilled labour and raw materials approachability of engineering skills.And opportunity to meet demand in the populous Indian market, are driving its electronics market.The electronics market in India, at US$ 11.5 billion in 2004, will be the fastest-growing electronics market worldwide over the next several yearsAbundant low-wage skilled/semi-skilled labour Indias strategic location offers a promising manufacturing/exporting base Abundant supply of raw materials Deregulation and liberalisation of industrial policy Incentive packages for Export touch Zones (EPZs) and ExportOriented Units (EOUs) are very attractive India is changing rapidly and offers an attractive opportunity base onmarket size (200 million middle class by the year 2000) and growth The non-resident Indians estimated to number over 15 million have majorimpact on the Indian economy, industrial policies and foreigncol elbow greaseations India is poised to be a major industrial power by the turn of the century.It is advantageous for American firms to position themselves as partnersin this fantastic growth. The business climate of India is improving (Naidu, 1984)India is one of the largest recipients of foreign direct investment (FDI) in the world. In FY2004/05, India received $3.75 billion.WeaknessesInfrastructure that postulate to be improved at the earliest possibility.Easing of foreign investment proceduresFrequent power failures and short ages leading to disruptionsOpportunitiesThere is a strong 100 150 million middle class thathas considerable discretionary income making India an attractive market forconsumer goods.ThreatsA restructured presidential term tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariffImport licensing regulations for non-high tech items remain a majorbarrier.UK companies are well positioned to apply advantage of this growing export and investment market.Indian policy does not favour the use of limited foreign exchangefor non-essential products.COUNTRY 4- TURKEY jokester is an emerging market with a population of most 72 million, 50% of which is under the age of 28. Turkey has the worlds 13th largest urban population at about 50 million. Its the worlds 15th and Europes 6th largest economy. Turkey is also a springboard to the markets of Central Asia the Middle East.Turkey ispolitically stable,the government having been in office for nine ye ars. Today, Turkey is investing significant sums in upgrading its infrastructure, including projects to build new dams, airports, roads and water and sewerage systems. Its recent, record economic growth, its talented, adolescent workforce and its geographical location as a immemorial hub for regional market access makes Turkey a hugely attractive destination for trade and investment.StrengthsNational minimum (gross) wage, which is currently YTL 608 per month (approximately 260 per month)average basic salary Japan 250,000 450,000 yen per month (UK 1700 3200 p.m.)Turkish made colour TVs have a good reputation amongst European consumers re price propertyExperienced local labour supply in abundance. As at 2009 approx. 2000 manufacturing companies in the field of electronics, approx. 30,000 employed in this sectorWeaknessesRaw materials for the electronics sector have the highest import rate as these cannot slow be sourced locallyTurkish is still the official language of commerc e, although position and some German are increasingly spoken. A professional part would be required for official meetings.In a year, total sum up of overtime cannot exceed 270 hoursOpportunitiesFinancial incentivesStrong export orientationExports of Turkish-made consumer electronic products have increased since 1990 in 178 countries, mostly directed towards the European marketsAccess to European market.Opportunity to expand markets to countries which include Romania, Germany, Portugal, Bulgaria, Jordan, Kazakhstan, Azerbaijan CroatiaThe Turkish electronics industry is young but dynamic. It is committed to competing on an international scale by producing high quality, well-priced goods supported by a wide range of products.On-going RD activities, engineering quality efficient after-sales serviceThreatsThe consumer market is now moving towards demand for LCD Plasma TV creating a need for Turkish manufacturers to invest in new technologiesAggressive competition from national MNEs . Arcelik Beko (subsidiaries of KOC Holding) second-largest TV producer in Turkey. Has 15% approx. European market share. Beko has strong international reputation. two have a wide product portfolio and their own technology products using plasma, LCD, MEMS technologies. Both companies have purchased international acquisitions such as Grundig AG (Germany) Home Intermedia strategy Division (2004). Arcelik has also established a partnership with Ubicom (Silicone Valley, USA) and plans to integrate the Ubicom microcontroller response into its projects where new technologies unique in their field have been used ( chic Appliances will be launched soon to consumer market).COUNTRY 5-CHINAStrengthsHuge consumer base. tout ensemble the time being lifted out of povertyCheap production. already 30,000 factories over there.There are several free trade zones, 53 new high tech zonesIn 2003 China supported 1,552 institutions of higher learning.If Hong Kong is include it has immense technical e xpertise and language skills as well.If Hong Kong is included then it has an outstanding harborGNP increasing an average of 9% annually(Benson, 1996) and ranked third in theWorld (Jing, 1993).Export growth of 25% and imports up 15%(Landy, 1996).Will continue to dominate light andmedium-tech industries because of thelarge market in China and the pool of labour.Leads world in direct foreign investment $135Billion (Taninecz, 1996). Foreigninvested companies represented 31.5% ofall Chinas exports (or about $46.9 billion).This netted about $8.4 billion in taxes(Taninecz, 1996 and China The NumbersGame, 1995.Worlds most lucrative market (Schafer,1996) of which China represents one-sixthof the worlds population(Taninecz, 1996).Surplus labor in rural areas andimpoverished farm lands (Gao, 1994) andgrowing 10 million per year. Estimatedto reach 250 million by 2000.Lower wages than Japan and Taiwan.Weaknesses degeneration is a problem.Government controls everything and joint ventures are enc ouraged. intellectual property rights not developed.Average inflation is 15%, and surpluslabour has resulted in liftunemployment and inequalities in incomedistribution (Benson, 1996).Railways, roads, communications, andpower supply are below standard.Employees need customer servicetraining.Roads are jammed with thousands ofbicycles, buses, trucks, and taxis.OpportunitiesOpportunity for lower cost but high quality production.As technological advancements are made we can hire better RD staff.Good place to control operations due to proximity and infrastructure.Direct Investments or Joint Ventures law and contractual ventures providequicker access to the market. Partners inChina can help with the bureaucracy,customer base, and distribution.ThreatsAmerican recession can hit ChinaCorruption can lead to loss of reputationUnderdeveloped Intellectual property rights can mean technology can be stolen by suppliersEffectiveness of investments in Chinawill only be manifest in the long-run andp olicies make it hard for non-Chinacompanies to make money.Lack of a legal structure similar to thoseEasily understood (Taninecz,1996).Having investigated these five countries based on their strengths and weaknesses, we the management team of Elecdyne have decided to shortlist these countries down to three which are1. Germany2. Poland3. China.