Paraphrase Essay Example | Topics and Well Written Essays - 2500 words

Paraphrase - Essay Example Over the past two decades, there has been a rapid increase in outbreaks of foodborne illnesses and other cases that are due to fresh produce. Estimates show that produce accounts for about 20 million illnesses in the US, which is about 24% (Farber, Crichton, and Snyder, 2014). That leads to an estimated cost of $38.6 Billion every year. In the 1970s, produce rarely earned recognition as a major vessel of outbreaks and cases of illnesses in the US. It only accounted for 0.7% of the outbreaks and 1% of cases of the illnesses. However, due to increased evidence, the numbers increased in the 1990s and produce now accounted for about 6% and 12%. Between 1990 and 2003, there was a further increase and the estimates in the US were now 16% of outbreaks and 30% of total cases. Some estimates also indicate that between the year 1990 and 2005 produce accounted for about 13% of all outbreaks of illnesses and 21% of the cases in the US. Using a more recent interval from 1998 to 2007, the estimate s show that produce accounts for about 14.8% of the outbreaks and 22.8% of all cases of foodborne illnesses that occurred in the US. Produce, which includes fruits, vegetables and salads contributed to about 111, 228 and 345 illness outbreaks respectively (Farber, Crichton, and Snyder, 2014). Of the illnesses reported, vegetables and salads contributed the largest number of illnesses. That was about 11,200 illnesses caused by each of the two categories. According to an analysis of data concerning outbreaks in the US for the period between 1988 and 2008, on average, the illness outbreaks caused by produce amount to between 6.3 and 13.2 per year. In recent times, leafy greens contribute to a third of the outbreaks. Reports indicate that in Canada, produce accounted for 15 outbreaks for the period between 1991 and 2000. The cases due to foodborne illness in that period were about 1360 (Farber, Crichton, and Snyder, 2014). There are several microorganisms, which

Gutai art Research Paper Example | Topics and Well Written Essays - 3000 words

Gutai art - Research Paper Example Thus, this revolutionary movement was initiated. Gutai artists produced artworks which completely revolutionized the traditional Japanese art through the convergence of ordinary materials and their own bodies1. In 1956, there was a declaration written by Yoshihara which expressed the beauty which is fascinated and raised from something after it gets damaged. However, this process was known as the process of damaging and it revealed the inner life of the material. The movement included the artwork which relied upon this manifesto and many artworks of the artists were the evidence of how the appearance of the object changed as it damaged over time. The damage and destruction was caused to the object usually in a course of centuries and it was also described as the beauty of decay. The artists of this movement had a rather different vision towards this movement. Their main aim was to create a relationship between art, body, space and time through their artwork. The revolutionary Gutai m ovement had started in Japan almost ten years after the World War II had ended. The roots of the Gutai movement went back to the Oriental tradition but also covered some aspects from the Western art. The Western art was, later, also influenced by the evolution of the Gutai movement. ... Yoshihara had also declared that the liberal position of the people was however the most important message which was conveyed through this art movement2. The people who were living in the Japanese chaotic and desperate society at that time were the group of people who were focused in this movement. The artists believed that the liberal position of these people is very important because freedom is a major source for human development. Through the artwork promoted by this movement, the position of the people was described as free. Thus, the artists of the Gutai movement were together to uncover the realities of the society in order to overcome the intense situation. As described by the artists and seen in the artwork, the features of the movement had emerged from the concepts of portraying the relationship between the materials and the artist’s body. The most influencing type of art which was presented by this movement was the performance art because it expressed many of the mes sages using newest techniques. In the initial years, the movement had received great attention from the European world but eventually the art lost its importance. The Gutai movement had become less influencing by the 2000’s, was criticized and looked over. The Western art did not find it an influencing movement but later it was influenced and understood its importance. The traces of Gutai ideas and expressions are seen in the western art as they were accepted with appreciation and praise. The main characteristic and important feature of the Gutai movement was the contribution of the artists. These artists had worked together to give a new face to the world of art. They created a unique combination of totally opposite aspects which were experimentation

There are five questions with different marks so question with 15 Essay

There are five questions with different marks so question with 15 marks have more word count ...even the answers should be suppo - Essay Example The world trade organisation (WTO) is one such body which is a contract enforcing governments to maintain their trade policies within the agreed upon rules. The core objectives are to set and enforce rules for global trade, to offer a forum for negotiating and scrutinizing further trade liberalization and to settle trade disputes. In addition, WTO seeks to enhance transparency in decision making process, assist developing nations gain fully from global trading system and cooperate with other global economic organisations. These objectives are similar to those of GATT, but WTO pursues these goals more comprehensively.1 The new Australian government is taking severe steps in its bid to uphold the Absolute Protection for Wild Whales Act 2013. In addition, the government of Australia seeks to ban entirely the importation, distribution and sale of whale and whale products within its borders. The government gives reasons that Japan and other governments have been weak in upholding the laws stipulated in the international whaling commission. The international whaling commission was set to introduce zero catching limits for profitable whaling as well as keeping whale catch limits under scrutiny. All this was in a bid to enhance and foster the recovery of depleted whale populations. The ban applies to the vending of domestic products and products from foreign countries. This includes goods that Australian travellers bring into the country from abroad. Article I: 1 Article I: 1 of the GATT 1947 prohibits discrimination among like products coming from or destined for different countries. In the Canada-autos case, the measure at issue was Canada’s duty exemption for imports by certain manufacturers in partnership with Canadian value added. Automobile imports and imported automobiles materials were the product at issue. The appellate body/ key panel upheld that duty exemption was inconsistent to the article I:1 on the grounds that the article covers de jure and de fa cto unfairness. Moreover, the duty exemption at issue in verity was given only to imports from a smaller number of countries in which the exporter was associated with suitable Canadian manufacturers. Canada’s defence was abandoned on grounds that duty exemption was given to certain countries other than all manufacturers from all countries. In relation to Australian current issue, the country has not violated article I: 1 since the ban is not discriminatory in nature. The ban covers all aspects of whale products from foreign countries. Further, Australia is not discriminatory since it also bans whale products that Australian travellers bring into the country. One may argue that products brought by tourists do not constitute trade goods and thus this is discrimination. However, the country seals this loophole as people may exploit it to continue the usage and sale of whale products. Article III: 4 Article III: 4 were set in the case of Korea –various measures on beef; th e appellate body established three components that have to be fulfilled for the violation to arise. One, the traded in and national products at issue are â€Å"like products† that the determination is the issue at â€Å"law, directive, or obligation affecting their domestic sale, offering for sale, purchase, transport, delivery or sale†. The final component is that imported goods are given â€Å"less favourable† dealing than that given to like domestic products. In relations to article

To See and Not See Essay Example for Free

To See and Not See Essay Have you ever been blind and then regained your sight even for a little while? Here’s another interesting question. If you have been blind and regained your sight for just a little while then, how would you think and how would you feel? It is imaginable that you might experience happiness and excitement at being able to see a world that had been hidden from you for so long; then, after a bit you might experience anger and frustration because of the difficulty adjusting to life as a sighted person. Therefore, it should come as no surprise that these and many other emotions were felt by Virgil, Amy, and his family when he regained his sight after being blind for most of his life. However, despite an operation to regain his sight Virgil loses his sight again.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Both the book To See and Not See by Oliver Sacks and the dramatic movie called Love at First Sight starring Val Kilmer as Virgil and Mira Sorvino as Amy tell Virgil’s remarkable story as his travels from darkness to light back to darkness again. The purpose of this paper is to compare and contrast the story and the movie. In addition, I will provide some personal reflection concerning how I would function in everyday life if I were blind.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The movie called At First Sight and the story To See and Not See has many differences. Some differences between the story and the movie are important to how the reader/viewer makes note of the key differences and some differences between the story and the movie aren’t important to how the reader/viewer look at the differences between the two mediums. There are many case studies of other blind people who have regained their sight for a while just like Virgil’s case. In fact, the story illustrated these other case studies such as a patient who went by the initials H.S. in order to compare and track Virgil progress and regression after the operation (Sacks, 1994, 10). The movie didn’t talk about other people who had been blind almost the entire lives and then regained their sight for a short time. This difference isn’t important to the evaluation of the two mediums.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In contrast, there is a difference between the story and the movie that does make an important difference in looking at the key points between the two genres. In the story Virgil and Amy had met and dated many years before they met again and ultimately married and in the movie Amy and Virgil had never met before they met at the spa. In addition, Amy in the movie had never been married and Amy in the story had been married before when she met Virgil. This is an important difference because some people when they have gone through life changing events such as moving and divorce would contact someone they liked and felt comfortable around. Therefore, it makes perfect sense that Amy would contact Virgil who she had dated before and felt comfortable with him. Also, the fact that in the story Amy and Virgil got married and in the movie Amy and Virgil are just dating make a huge difference because married people might stay together in times of crisis and a dating couple may decide that being together in times of crisis isn’t worth it and they may break up.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Also, I think that the fact that Amy has health problems in the story and she doesn’t have health problems in the movie provides her with different motivations for Virgil having the operation to restore his vision. In the movie At First Sight, Amy motivation for Virgil having the operation may be grounded in the fact that they are involved in a new love relationship. Also, she could wish Virgil to have the eye surgery because she is a perfectionist and if he has the operation to restore he will be perfect in her eyes (At First Sight, 1999). In the movie it seems as if Amy equates having the operation with having the â€Å"perfect† life with Virgil. In contrast, Amy in the story has health problems herself such as diabetes and asthma. In fact, Amy had to quit her job as a botanist due to her asthma (Sacks, 1994, 5). In the story, it seems as if Amy’s motivation for Virgil having the operation involves trying to help Virgil get better using the doctors that Amy uses to help her with her eye check ups due to diabetes (Sacks, 1994, 5). Due to the different motivations that prevail for Virgil having the operation the viewer of the movie might see Amy as selfish whereas the reader might feel for Amy and root for her and Virgil because of their health problems.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   I think that it is hard to give a concrete answer to the question whether operations to restore sight should be performed. It seems as if both in the movie and in the story Virgil had more problems when he could see than when he was blind. In the story when Virgil was blind he enjoyed life more because he loved going to the zoo to touch the gorillas and the giraffes. He also loved listening to baseball games when he was blind. However, when he could see and he went to the zoo he wasn’t allowed to touch any of the animals. Therefore he didn’t enjoy the zoo. Also, he lost his job due to complications from the operation (Sacks, 1994, 15, 20). Therefore, it seems that Virgil had freedom and independence when he was blind and he acted like a scared little child when he could see a bit. In fact, in the movie Virgil screams when he hears loud horns and sees bright colored cars coming at him (At First Sight, 1999). Therefore, based on these two examples it would seem that there needs to be more discussion and thought before allowing operations that restore sight. I think that people who have had their sight restored should have the option to have a Seeing Eye dog until they adjust to the world as a sighted person.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   If I were blind then, I would have to have to have much help in learning to adjust to not being able to see. I am an avid reader and I love to cook and bake. Therefore, it would be hard getting used to reading with my hands and learning a different way of cooking and baking. I would be frustrated if I regained my sight and then lost it again I feel for Virgil in both the story and as I watched the movie. However, I felt more sympathy for Amy in the story rather than Amy in the movie. I think the moral of both the story and the movie is sight doesn’t always give you the freedom or perfection that you seek.

Why Some Revolutions Fail

Why Some Revolutions Fail Many revolutions occurred around the world in the past hundreds years, mainly in the developing world, and some of them succeed, while others failed. In this essay, the aim is to examine the why is that some have succeeded while others failed. Before proceeding to the examination of the question, it is necessary to define the term ‘revolution’ and how to define a revolution as success or failure. In this essay, I understand revolution as â€Å"any and all instances in which a state or political regime is overthrown and thereby transformed by a popular movement in an irregular, extra-constitutional, and/or violent fashion.† [1] And base on this definition, a successful revolution is one that can overthrow the existing regime. Interestingly, this definition provides some insight to the question, as revolution involves popular movement, therefore not surprisingly; the popularity of the mobilisation of the masses is one factor to consider for the question. Revolutions are never solely a result of economic injustice or even exploitation; they are a response to a brutal, oppressive government. This is the principle of this essay. I will argue that certain political factors, namely the exclusionary nature of t he existing regime and the formation of the revolutionary coalition and its popularity, helps to make revolutions more likely to succeed. The first factor I will discuss is the formation of the revolutionary coalitions and its popularity. Quite often, revolution begins with a particular sector of the society, and then others join in to form a coalition, united by common objective. In the third world, where revolutions are usually responses to imperialism, nationalism served as a very useful political tool. The role of peasants is very central in uprisings. However my argument is that to succeed in a revolution, there must be a coalition. Ideally it will comprise different ethnic or social classes. One key group that can be significantly decisive to the outcome is the professional revolutionary organisation. This is the urban intellectuals or the middle class. The argument here is not that a particular group is more important than others; each group plays an important role in organising the revolution movement in their own way. However, for the revolution movement to be a successful one, it is necessary for these groups to work together. Indeed, successful revolution movement in Vietnam and Nicaragua, the coalition by the revolution had the peasants and middle class, â€Å"but also of landless and migrant laborers, rural artisans, rich peasants, and even landlord.† [2] It is the supports form different sectors of the society that will increase the chance of success. The ability for the revolutionary coalition to be as inclusive as possible has a role in determining the likelihood of success. A revolution fails because like the regime it is trying to overthrow, the revolutionary force also fails to address to the grievances of different social groups. To be able to organise a coalition with wide ranging groups can avoid this weakness. The next question regarding the formation of revolution coalition is why different groups join together. A coalition that has internal tension and rivalry is not going to last long, let alone making the revolution more likely to success. The answer, drawing from observations based on successful revolutions, is that revolutionary coalition will employ different discourses, like religious and nationalist. Under these discourses, the coalition can legitimate the resistant movement to the regime and also grouping different social classes. The Marxist ideology, the notion of class struggle will not been particularly beneficial as a discourse. The coalition needs to attract as many, diverse classes as possible, and by emphasising class struggle will defeat the point. Therefore ironically, revolutionary coalition led by Marxists group had been more successful when they had put less emphasises on class struggle. The most common discourse, also the most powerful discourse is nationalism. It h as proven to be more inclusive, has a more appealing effect on different social classes. So far, I have identified nationalism as a popular and powerful discourse for revolutionary movements to gain momentum and thrive for success. However, the revolution cannot simply be an ideological one. A popular revolutionary coalition need to deliver something physical, delivering collective goods had proven to be the key. This is especially the case for economically less developed countries, where the existing regime has rarely provided anything for its population. The argument is that the coalition strengthened support by providing collective goods, generating progress and eventually overthrows the existing regime. The coalition maintains supports by its actions, which helps to develop its own loyal client network. This is especially relevant to the question, failed attempt of revolutions, are the ones that fail to turn action into words. A successful revolutionary coalition is one that can gather social groups, groups that are originally excluded by the existing regime. So if the coalition can incorporate a broader level of social groups, it will make the revolution more likely to success. To determine how broad the level of social groups that are available to incorporate, this correlated to the second factor I consider to be important, the exclusionary nature of the existing regime. The argument is that the more exclusive the regime, meaning the less social groups it chose to incorporate with, the more potential the coalition can incorporate and mobilise with. Revolution itself is a reactionary product and is not breed in a political vacuum. The political context which revolution movements operate in is determined by the nature of the existing regime. Needless to say, revolution is usually against an authoritarian regime. And it is the closed or exclusionary one where if a revolution took place, it is more likely to succeed. On the contrary, a more inclusionary authoritarian regime is difficult to overthrow. Despite the lack of civil rights and public participation in public affairs, these inclusionary authoritarian regimes maintain in power through patronage, they incorporated with social groups that they deemed their supports are important, where they will give benefits to these groups in return for their loyalty. This narrows the political spaces for the revolutionary coalition can take place, hence diminish the probability of a successful revolution. An exclusionary regime are advantageous for the revolutionary coalition, the coalition will be more likely to have a broader combination of social groups. This is because of a number of reasons. Firstly, groups that are excluded by the regime, when there is economic discontent as a result, will be politicised. Trade Unions are one example, whereby excluded by the regime, their functions will be severely limited. The politicisation of trade unions is inevitable because they must gain political power within the political structure in order to function properly. This applies to other lower class groups and their relevant organisation. The second reason is concerned with the lack of political legitimacy of the exclusionary regime. This lack of political legitimacy is a common challenge faced by any type of authoritarian regime, any kind of discontent in regards to social, political or economic issues will combined into questioning the legitimacy of the existing regime. The illegitimate n ature of the regime will solidified the legitimacy of the revolutionary movement. And lastly, because of this exclusionary nature of the regime, it cannot incorporate necessary social groups into its political structure, which would have enabled the regime to dilute the formation of the revolutionary coalition and prevent any revolutions. It should be noted that so far I have discussed how an exclusionary regime is unable to provide channel for participations of social groups, however there is a possibility of an exclusionary regime, perhaps under wise leadership, decided to adapt into a more inclusionary approach to handle the threat of revolution. Therefore, I would argue that not only exclusionary nature of regime is necessary for a revolution to succeed; the regime also has to be incapable of reform, it is inflexible. An inflexible, exclusionary regime is usually one of the following two types, a colonial government of direct ruled by the imperial power or a dictator ruled regime. The inflexible nature of this two type will makes this type of regime an ideal type for revolutionary coalition to succeed. The common between these two types is its relation with foreign power. The relation between a colonial government and foreign power is self-evident; a dictator, if being seen as the best option for stability in a chaotic region or a reliable anti-communist alliance during the cold war period, will usually find backing from abroad. This foreign power backing fuels the popularity and legitimacy of nationalist discourse employed by the revolutionary coalition to unite different social groups. As mention before, nationalism appeals across different level of social groups and the association of the regime with foreign power will provide a more powerful, clear image of a common enemy. Hence, foreign backi ngs contribute to uniting revolutionary coalition. Foreign backing is also one of the reasons why these exclusionary regimes are particularly inflexible. Dictator acted as stability force in the region, may enjoy financial rewards for their effort, however, it also means they render their autonomy on certain domestic issues. Any attempts for the dictator to widen participations can back fire with discontent from abroad. The foreign interest in the regime is for it to maintain stable, any changes in the political structure, even with good intentions, invite uncertainty to stability. The possibilities of revolutions are not of concerns for the foreign power, and when revolutionary coalition can incorporate local elites and middle class, groups that are ideal for establishing liberal democracy, foreign power will withdraw their support for the dictator. In the case of direct colonial government, it will also generate momentum for the revolutionary coalition’s nationalist discour se. The interest of colonialists to hold position in senior level administrative role and profitable business sectors will fuse frustration of the elite and middle class, as a consequence, these groups will join the revolutionary coalition. And it will not consider widening participation of these domestic social groups, as that will weaken the power of the foreign power, contradict to the purpose of direct ruled. The conclusion is an association between the regime and foreign powers will provide a common enemy, a negative coalition can be formed against this common enemy. And as previously argue, a revolutionary coalition with broad support across the society is more likely to succeed, the image of foreign power helps the coalition to broaden its support. The existing regime becomes a symbol of antinational, standing on the opposite end of the nationalism discourse the revolutionary coalition is advancing. Foreign backing, associating with the existing regime makes the revolution more likely to succeed. Foreign backing on the revolutionary coalition will also have a positive effect on the outcome of the revolution. The argument is brought forward by Robert Dix, where he used the revolution in Cuba and Nicaragua as example: â€Å"The anti-regime coalition included key international actors that served as sources of refuge, training, and material and diplomatic support for the revolutionaries†¦.Thus Castros forces were able to assemble and train in Mexico, and received various kinds of assistance from the governments of Venezuela and Costa Rica†¦.The United States cut off military aid to Batista in April 1958†¦. The Nicaraguan revolutionaries received aid from several of that countrys Central American and Caribbean neighbors†¦.Other Latin American revolutionaries have been sorely lacking in this regard†¦.None were able to obtain either the level of international legitimacy or the degree of tangible assistance gained by their counterparts in Cuba or Nicaragua.† [3] Dix examples of Cuba and Nicaragua showed how foreign states can affect the outcome, actively engage in the case of the Venezuela and Costa Rica, by providing assistance to Castro, or passively in the case of Unit ed States, by withdrawing support from the existing regime. However, I would add that such foreign backing, especially the â€Å"active† kind can easily back fire. The revolutionary coalition under the name of nationalism would seem contradicting once its dependence on this foreign assistance exceeds a certain point. Indeed, this certain point is matter of degree and it is not possible to draw a line in practice. This point I am trying to illustrate is that foreign backing on revolutionary coalition can be a reason why revolution succeed, however at the same time, it can be a reason why revolution fail. Leon Trotsky once wrote that â€Å"the mere existence of privations is not enough to cause an insurrection; if it were, the masses would be always in revolt.† [4] In this essay, I have demonstrated how Trotsky’s word is still relevant. I have argued that it is the political factors that have a crucial impact of the determining the outcome of revolution. The two factors I consider to be important are the success of forming a revolutionary coalition, where it encompasses a broad level of different social groups and the existing political context, which is determine by the existing regime and the more exclusive and inflexible ones are particularly vulnerable to revolution. The argument I advanced is that the political relationship between the existing regime, various sections within the society and foreign states, provide insight in why revolution is more likely to succeed under particular circumstance. The formation of revolutionary coalition is closely linked to this pol itical relationship, and I have examined how successful coalition had worked under this circumstance. It should be noted that these factors do not guarantee the success; however the lack or absent of these factors will make failure as an inevitable outcome. Bibliography [1] Jeff Goodwin, No other way out : states and revolutionary movements, 1945-1991, (Cambridge: 2001) [2] Theda Skocpol, Social revolutions in the modern world, (Cambridge: 1994) [3] Robert Dix, â€Å"Why revolution succeed failed† in Polity, (Vol. 16, No. 3, Spring 1984) [4] Leon Trotsky, The history of the Russian Revolution, trans. Max Eastman (New York, 1961)

Bless Me Ultima: The Growing Up Of A Young Boy Essay -- Bless Ultima E

Bless me Ultima: The Growing up of a Young Boy   Ã‚  Ã‚  Ã‚  Ã‚  Throughout the book Bless me Ultima, Tony, the young main character in the story, lost his innocence when exposed to the harsh world since he learned what life is really like. Ultima is a good witch who tries to guide Tony by teaching him morals and lessons. Narsico is percieved as the town drunk, but is a good person. Tenorio is the demon in this story, as he wants to destroy Ultima. This book is about Tony's experience in adjusting to the rough world at a relatively young age.   Ã‚  Ã‚  Ã‚  Ã‚  Narsico's death with Tenorio's desire to kill Tony made him realize his limitations and acknowledge the reality. Before these incidents, Tony imagined he could control incidents that happened in real life. He thought he could effect events in life in a posotive way. After these events and experiences with people, Tony realizes that good people get bad things. When Tony was playing a game with his peers in which he was the priest, he forgave his freind, Florence, for his sins, even though he stood up to all his peers to do so. When Tony ran 10 miles home to warn Ultima, a kind whitch about Tenorio, whose desire is to destroy her spirit, he realized he or Ultima could both be exterminated. During the run, Tony thought of the future, which he hardly thought of before this event. Almost every child Tony's age was preoccupied with activities, such as playing and horsing around, and certainly not thinking what the future could...

Analysis of Political, Economic, Legal and Technological Risks in Indonesia

Analysis of Political, Economic, Legal and Technological Risks in Indonesia By Yohanes Randy Anggoro Student ID: 1004536 Instructor: Mr. Bala Subramaniam N. Module Name: International Trade and Management Module Code: ERCBA-209 Word Counts: 2106 Due Date: 7 November 2012 Content Page Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 Brief Introduction to Indonesia†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Political Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Economic Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Legal Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Technological Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Reference List†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Introduction Doing or expanding business in Asia nowadays has become a popular trend from companies around the world, many big firms based on Europe and United States of America recently has opened a branch in Asia in order to reach the Asia Market.The main attraction of Asia is the number of population, with approximately 4 million people spread around 5 regions, consist of Northern Asia, Western Asia, South Central Asia, South East Asia, and East Asia (OneWorldNationsOnline, 2012), it is apparent that Asia has become a large growing market that attracts companies around the world. Moreover, other than the large growing market potential it offers, there are other benefits that a firm can get by expanding business in Asia.First of all the labor cost in some less developed Asia Countries, such as Indonesia, Vietnam, Thailand, is relatively lower than labor cost in Western Countries, for example, England and United States of America. Secondly, the land cost in Asia, Indonesia in particular is relatively much cheaper than in Western countries. However, despite the benefits that have been mentioned above, there are some risks that need to be known by a firm before deciding to expand business to Asia, Indonesia in particular.The risks itself can be divided by four which are, political risk, economic risk, legal risk, and technological risk. Below, there is an explanation and examination about four of the risks that may arise while expanding business in Indonesia. Brief Introduction to Indonesia Indonesia is a country in South East Asia which consists of approximately 17. 508 islands. The official name of Indonesia is Rep ublic of Indonesia. There are 5 main islands in Indonesia which are Sumatra, Java, Kalimantan or Borneo, Sulawesi and Papua.Geographically, Indonesia is placed between Pacific Ocean and Indian Ocean as well. Jakarta is the capital city of Indonesia and is placed in Java Island. The Legal Currency in Indonesia is Indonesia Rupiah. In term of people, Indonesia has approximately 240 million of people with various ethnicities and is the fourth most populated country in the world. The current president of Indonesia is Susilo Bambang Yudhoyono. Political Risk According to Deresky (2008) Political Risk is government actions or politically motivated events that can affect a firm in the long terms.Furthermore, Kobrin (1979) states that political risk covers possibility of unwanted consequences created by governmental activity that affect international business. Nationalization, Expropriation and Confiscation, Terrorism, and Macro political and Micro political risk are the example of commonly known political risk events. Nationalization is a governmental action to take over a private asset to be owned and operated by the government. Next is Expropriation, Expropriation is a term to define a process of taking away a private property for a public use.The difference between Expropriation and Nationalization may seem a bit vague, but the intentions for both terms are different. Nationalization is a process to take over a private asset by a government in order to make profits. For example is the nationalization of Netherland Enterprises by Indonesia Government after the independence war. On the contrary, Expropriation only takes private property to be used for public, for example, a government takes over a land of a private house to be used for highway because the public needs a highway to support the transportation around that area.The third is Terrorism, Terrorism as defined by Ruby (2002) and Title 22 of US Code is politically motivated action committed in a violent manne r against common people. And the last is Macro political and Micro political risk, Macro political risk is any governmental action that affects all the multinational companies within the country while micro political risk is the governmental actions which only affects some of multinational companies.Moreover, it is important for a firm to know and manage prevention of any political risk that they may encounter while expanding their business, without doing that matters a company may end up having no profits or even loss their assets while going global. In Indonesia, particular political risk events that a firm likely to encounter when expanding their business are expropriation and terrorism. It is because Indonesia is often considered Less Developed Countries. Moreover, based on Marshall, A. and Magnowski, D. 2010) multinational companies need to give attention on Political issues in Asia such as current tension between China and United States over the value of China currency, the de velopment of crisis which is rising in North Korea, and the border issue between Indonesia and Malaysia. Those issues have possibility to affect Political situation in Indonesia. In order to measure the political risk in a country, there are some methods that can be done by multinational companies. The first method is computer modeling; this method is used by American Can’s Primary Risk Investment Screening Matrix.Using this method a company can predict and simulate the political risk that might happen in expansion target country. The Second method is Ranking Systems, with this method; a company can consult with some political risks expert such as AON, who use analysis tools and experience to help minimizing the political risk. The last method is Early Warning Systems, this method emphasizes on watching early signs of political dangers, such as demonstration, act of violence by the citizen, the atmosphere of political situation to predict the possible political risk in the fu ture.Basically, a multinational company can use four actions to manage the political risk. The first possible action is withdrawing their investment on a country which is likely to have a bad political event. The other way is by sharing their equity with local business. Thirdly, a multinational company can keep the subsidiary and host nation be more dependent on the parent firm by controlling input, market, position and staged contribution. Lastly, a company can use the political risk insurance to ensure their safety from political risk.Additionally, Bribery is often practiced in Indonesia Political Environment which in some way makes the Political Situation in Indonesia become unstable. Economic Risk Economic risk refers to the risk from economy sector that may affect multinational companies to gain profit. Economic risk is vary in different countries, however it can be concluded that Economic risk in Less Developed Countries such as Indonesia, Vietnam, Thailand, tend to be higher than in Fully Developed Countries, Britain and United States of America for example.Some common examples for economic risk are the changes in inflation and devaluation of the currency value, foreign investment policies, monetary and fiscal policies. According to A. M Best report the Economic risk in Indonesia is considered moderate due to four factors. Indonesia is ranked as the fourth country with most population in the world, having approximately 240 million people and placed bellow China, India, and United States of America. With that amount of people Indonesia has the opportunity to create a big market for multinational companies.It is also stated that Indonesia’s Economy is considered well balanced in terms of manufacture, service and agriculture. Despite those three terms, Indonesia also has considerable amount of resources such as wood, nickel, gas, oil, textile, and garment in export sector. Nevertheless, Indonesia also has a close trading partnership with Developed C ountries in Asia, Japan, Singapore, South Korea, as well as Developed Country in America, United States of America. Moreover, Indonesia is expected to have economic growth for about 6% in 2012, and 5,9% in 2013 due to healthy domestic investment and consume.The last factor is Indonesia sovereign credit ranking was upgraded to one level below investment grade in 2011. Furthermore, although there are some factors above, Economic Risk in Indonesia is still risky. There are 2 major economic risks that threatening Indonesia’s economy. The first one is the effect of global inflation nowadays. It is worrisome to some extent that the global inflation will badly affect Indonesia economy in the long terms. As a less developed country with highly dependence on export sector, Indonesia is highly vulnerable to be badly affected by the global inflation.Second major risk is the after effect of the global inflation in the future, as the developed countries begin to recover from the global in flation, Indonesia is expected to find difficulties to recover as fast as those developed countries. Additionally, there are four ways that can be done by multinational company to assess economic risk in target country. Multinational company can measure the economic risk by analyzing the country ability to handle its debt. This kind of measurement is often called Quantitative method.Other way is called Qualitative method; this method refers to sending a group of their experts to make a research about one particular country leader and their possible policies in the future. Checklist method is also can be done to asses an economic risk in a country; this method is done using the past events to measure the possibility of economic risks in the future. Nonetheless, a multinational company can use a combination of Qualitative, Quantitative as well as Checklist methods to measure the economic risk.Legal Risk Legal Risk has the same meaning with Regulatory Risk, for Multinational Companies, it refers to potential of losing assets due to some legal or regulatory issues. Legal Risk or Regulatory Risk is often related to the Legal Environment. Legal Environment is the laws that are created and operated by the government to control the business operation. Generally, Legal Environment consists of local laws and legal systems. Local laws usually are varies in different countries, while Legal System is often similar.There are three types of legal systems that are stated by Deresky, H. (2008). It consists of Common Law, Civil Law and Islamic Law. Common Law refers to Old English Law, this kind of law uses the previous cases to determine the punishment for the current cases. In terms of Contract Law for business purposes, Common Law emphasizes on writing the details on the contract to be used as a guide and proof in case of disagreement in the future. The other law is Civil Law. Civil Law is a law that is originated from Roman law and often used in modern western countries.Civ il Law emphasizes the defendant to prove their innocent. In term of Contract Law, Common Law affirms that promises can be enforced without the need to specify the details in the contract. The last type of legal system is Islamic Law, Islamic Law is a law based on Islam Religion, and this kind of law is often used in Islamic Country. Moreover, Indonesia has its own law. Indonesia Law is originally created based on Civil Law and some customization from the Dutch who used to rule Indonesia in the past.Aside from the Legal Environment, there are some other regulatory issues such as, protectionist policies, tax systems and the level of government involvement in the economic and regulatory environment. Indonesia protectionist policies such as tariffs and quotas are vary, and often changed by the government which indicates that government involvement in the regulatory and economic sector is considerably high. Nonetheless, Indonesia charges 25% of the income to be paid for the tax, accordin g to taxrates. cc.This percentage is considered high, compared to Singapore, Indonesia’s neighbor country which taxes foreign corporate for only 17% of the income. Technological Risk Technological Risk is a term that refers to the potential risk to lose assets due to technological sector. Two major issues in technological risk are to protect its own technology to not be copied by its competitors and to provide the capable operator and capable environment to use the technology. Technological risk may be a concern for multinational company in Indonesia; they may find difficulties to find highly skilled employees there.However, labor cost in Indonesia is relatively cheaper compared to labor costs in western countries. Furthermore, it is possible to create a trademark or a copyright for Indonesia. Nevertheless, it must be noticed that there are many counterfeit products in Indonesia, and it seems that Indonesia Government has lack of motivation to capture and punish the producer and the seller of those products as well. Conclusion In the conclusion, Indonesia has offered a great opportunity for Multinational Company to expand their business there.With the constant growing market, cheap cost of labor, and the raw resources, in my opinion, it is promising for multinational company to expand their business to Indonesia. However, the potential risks in Indonesia, especially in Political and Economic sectors must be considered carefully. Nevertheless, if a multinational company manages to overcome the four risks, which are political risk, economic risk, legal risk, technological risk in Indonesia, it is obvious that particular company can gain a lot of profits from Indonesia.Reference List A. M. Best Company, Inc. (2012). AMB Country Risk Report (n. d. ). Available at : www3. ambest. com/ratings/cr/reports/Indonesia. pdf (Accessed on 1 November 2012) Deresky, H (2008), International Management – Managing Across Borders & Cultures, 6th ed, Pearson Internat ional Edition, Pearson Prentice Hall. Kobrin, S. (1979). Political risk: A review and reconsideration. Journal of International Business Studies, 10(1), 67-80. Marshall, A. & Magnowski, D. (2010). Key Political Risks to watch in Asia in 2011. Reuters. online] Available at : http://in. reuters. com/article/2010/12/21/idINIndia-53707220101221 (Accessed on 31 October 2012) One World Nation Online, 2012. World Population by Continents. [online] Available at : http://www. nationsonline. org/oneworld/world_population. htm (Accessed on 31 October 2012) Ruby, C. L. (2002). The definition of terrorism. Analyses of Social Issues and Public Policy, 2(1), 9-14. TaxRates. cc (2012). Indonesia Tax Rate. [online] Available at : http://www. taxrates. cc/html/indonesia-tax-rates. html (Accessed on 1 November Analysis of Political, Economic, Legal and Technological Risks in Indonesia Analysis of Political, Economic, Legal and Technological Risks in Indonesia By Yohanes Randy Anggoro Student ID: 1004536 Instructor: Mr. Bala Subramaniam N. Module Name: International Trade and Management Module Code: ERCBA-209 Word Counts: 2106 Due Date: 7 November 2012 Content Page Introduction†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦2 Brief Introduction to Indonesia†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3 Political Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3 Economic Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. Legal Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Technological Risk†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 6 Conclusion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 Reference List†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 8 Introduction Doing or expanding business in Asia nowadays has become a popular trend from companies around the world, many big firms based on Europe and United States of America recently has opened a branch in Asia in order to reach the Asia Market.The main attraction of Asia is the number of population, with approximately 4 million people spread around 5 regions, consist of Northern Asia, Western Asia, South Central Asia, South East Asia, and East Asia (OneWorldNationsOnline, 2012), it is apparent that Asia has become a large growing market that attracts companies around the world. Moreover, other than the large growing market potential it offers, there are other benefits that a firm can get by expanding business in Asia.First of all the labor cost in some less developed Asia Countries, such as Indonesia, Vietnam, Thailand, is relatively lower than labor cost in Western Countries, for example, England and United States of America. Secondly, the land cost in Asia, Indonesia in particular is relatively much cheaper than in Western countries. However, despite the benefits that have been mentioned above, there are some risks that need to be known by a firm before deciding to expand business to Asia, Indonesia in particular.The risks itself can be divided by four which are, political risk, economic risk, legal risk, and technological risk. Below, there is an explanation and examination about four of the risks that may arise while expanding business in Indonesia. Brief Introduction to Indonesia Indonesia is a country in South East Asia which consists of approximately 17. 508 islands. The official name of Indonesia is Rep ublic of Indonesia. There are 5 main islands in Indonesia which are Sumatra, Java, Kalimantan or Borneo, Sulawesi and Papua.Geographically, Indonesia is placed between Pacific Ocean and Indian Ocean as well. Jakarta is the capital city of Indonesia and is placed in Java Island. The Legal Currency in Indonesia is Indonesia Rupiah. In term of people, Indonesia has approximately 240 million of people with various ethnicities and is the fourth most populated country in the world. The current president of Indonesia is Susilo Bambang Yudhoyono. Political Risk According to Deresky (2008) Political Risk is government actions or politically motivated events that can affect a firm in the long terms.Furthermore, Kobrin (1979) states that political risk covers possibility of unwanted consequences created by governmental activity that affect international business. Nationalization, Expropriation and Confiscation, Terrorism, and Macro political and Micro political risk are the example of commonly known political risk events. Nationalization is a governmental action to take over a private asset to be owned and operated by the government. Next is Expropriation, Expropriation is a term to define a process of taking away a private property for a public use.The difference between Expropriation and Nationalization may seem a bit vague, but the intentions for both terms are different. Nationalization is a process to take over a private asset by a government in order to make profits. For example is the nationalization of Netherland Enterprises by Indonesia Government after the independence war. On the contrary, Expropriation only takes private property to be used for public, for example, a government takes over a land of a private house to be used for highway because the public needs a highway to support the transportation around that area.The third is Terrorism, Terrorism as defined by Ruby (2002) and Title 22 of US Code is politically motivated action committed in a violent manne r against common people. And the last is Macro political and Micro political risk, Macro political risk is any governmental action that affects all the multinational companies within the country while micro political risk is the governmental actions which only affects some of multinational companies.Moreover, it is important for a firm to know and manage prevention of any political risk that they may encounter while expanding their business, without doing that matters a company may end up having no profits or even loss their assets while going global. In Indonesia, particular political risk events that a firm likely to encounter when expanding their business are expropriation and terrorism. It is because Indonesia is often considered Less Developed Countries. Moreover, based on Marshall, A. and Magnowski, D. 2010) multinational companies need to give attention on Political issues in Asia such as current tension between China and United States over the value of China currency, the de velopment of crisis which is rising in North Korea, and the border issue between Indonesia and Malaysia. Those issues have possibility to affect Political situation in Indonesia. In order to measure the political risk in a country, there are some methods that can be done by multinational companies. The first method is computer modeling; this method is used by American Can’s Primary Risk Investment Screening Matrix.Using this method a company can predict and simulate the political risk that might happen in expansion target country. The Second method is Ranking Systems, with this method; a company can consult with some political risks expert such as AON, who use analysis tools and experience to help minimizing the political risk. The last method is Early Warning Systems, this method emphasizes on watching early signs of political dangers, such as demonstration, act of violence by the citizen, the atmosphere of political situation to predict the possible political risk in the fu ture.Basically, a multinational company can use four actions to manage the political risk. The first possible action is withdrawing their investment on a country which is likely to have a bad political event. The other way is by sharing their equity with local business. Thirdly, a multinational company can keep the subsidiary and host nation be more dependent on the parent firm by controlling input, market, position and staged contribution. Lastly, a company can use the political risk insurance to ensure their safety from political risk.Additionally, Bribery is often practiced in Indonesia Political Environment which in some way makes the Political Situation in Indonesia become unstable. Economic Risk Economic risk refers to the risk from economy sector that may affect multinational companies to gain profit. Economic risk is vary in different countries, however it can be concluded that Economic risk in Less Developed Countries such as Indonesia, Vietnam, Thailand, tend to be higher than in Fully Developed Countries, Britain and United States of America for example.Some common examples for economic risk are the changes in inflation and devaluation of the currency value, foreign investment policies, monetary and fiscal policies. According to A. M Best report the Economic risk in Indonesia is considered moderate due to four factors. Indonesia is ranked as the fourth country with most population in the world, having approximately 240 million people and placed bellow China, India, and United States of America. With that amount of people Indonesia has the opportunity to create a big market for multinational companies.It is also stated that Indonesia’s Economy is considered well balanced in terms of manufacture, service and agriculture. Despite those three terms, Indonesia also has considerable amount of resources such as wood, nickel, gas, oil, textile, and garment in export sector. Nevertheless, Indonesia also has a close trading partnership with Developed C ountries in Asia, Japan, Singapore, South Korea, as well as Developed Country in America, United States of America. Moreover, Indonesia is expected to have economic growth for about 6% in 2012, and 5,9% in 2013 due to healthy domestic investment and consume.The last factor is Indonesia sovereign credit ranking was upgraded to one level below investment grade in 2011. Furthermore, although there are some factors above, Economic Risk in Indonesia is still risky. There are 2 major economic risks that threatening Indonesia’s economy. The first one is the effect of global inflation nowadays. It is worrisome to some extent that the global inflation will badly affect Indonesia economy in the long terms. As a less developed country with highly dependence on export sector, Indonesia is highly vulnerable to be badly affected by the global inflation.Second major risk is the after effect of the global inflation in the future, as the developed countries begin to recover from the global in flation, Indonesia is expected to find difficulties to recover as fast as those developed countries. Additionally, there are four ways that can be done by multinational company to assess economic risk in target country. Multinational company can measure the economic risk by analyzing the country ability to handle its debt. This kind of measurement is often called Quantitative method.Other way is called Qualitative method; this method refers to sending a group of their experts to make a research about one particular country leader and their possible policies in the future. Checklist method is also can be done to asses an economic risk in a country; this method is done using the past events to measure the possibility of economic risks in the future. Nonetheless, a multinational company can use a combination of Qualitative, Quantitative as well as Checklist methods to measure the economic risk.Legal Risk Legal Risk has the same meaning with Regulatory Risk, for Multinational Companies, it refers to potential of losing assets due to some legal or regulatory issues. Legal Risk or Regulatory Risk is often related to the Legal Environment. Legal Environment is the laws that are created and operated by the government to control the business operation. Generally, Legal Environment consists of local laws and legal systems. Local laws usually are varies in different countries, while Legal System is often similar.There are three types of legal systems that are stated by Deresky, H. (2008). It consists of Common Law, Civil Law and Islamic Law. Common Law refers to Old English Law, this kind of law uses the previous cases to determine the punishment for the current cases. In terms of Contract Law for business purposes, Common Law emphasizes on writing the details on the contract to be used as a guide and proof in case of disagreement in the future. The other law is Civil Law. Civil Law is a law that is originated from Roman law and often used in modern western countries.Civ il Law emphasizes the defendant to prove their innocent. In term of Contract Law, Common Law affirms that promises can be enforced without the need to specify the details in the contract. The last type of legal system is Islamic Law, Islamic Law is a law based on Islam Religion, and this kind of law is often used in Islamic Country. Moreover, Indonesia has its own law. Indonesia Law is originally created based on Civil Law and some customization from the Dutch who used to rule Indonesia in the past.Aside from the Legal Environment, there are some other regulatory issues such as, protectionist policies, tax systems and the level of government involvement in the economic and regulatory environment. Indonesia protectionist policies such as tariffs and quotas are vary, and often changed by the government which indicates that government involvement in the regulatory and economic sector is considerably high. Nonetheless, Indonesia charges 25% of the income to be paid for the tax, accordin g to taxrates. cc.This percentage is considered high, compared to Singapore, Indonesia’s neighbor country which taxes foreign corporate for only 17% of the income. Technological Risk Technological Risk is a term that refers to the potential risk to lose assets due to technological sector. Two major issues in technological risk are to protect its own technology to not be copied by its competitors and to provide the capable operator and capable environment to use the technology. Technological risk may be a concern for multinational company in Indonesia; they may find difficulties to find highly skilled employees there.However, labor cost in Indonesia is relatively cheaper compared to labor costs in western countries. Furthermore, it is possible to create a trademark or a copyright for Indonesia. Nevertheless, it must be noticed that there are many counterfeit products in Indonesia, and it seems that Indonesia Government has lack of motivation to capture and punish the producer and the seller of those products as well. Conclusion In the conclusion, Indonesia has offered a great opportunity for Multinational Company to expand their business there.With the constant growing market, cheap cost of labor, and the raw resources, in my opinion, it is promising for multinational company to expand their business to Indonesia. However, the potential risks in Indonesia, especially in Political and Economic sectors must be considered carefully. Nevertheless, if a multinational company manages to overcome the four risks, which are political risk, economic risk, legal risk, technological risk in Indonesia, it is obvious that particular company can gain a lot of profits from Indonesia.Reference List A. M. Best Company, Inc. (2012). AMB Country Risk Report (n. d. ). Available at : www3. ambest. com/ratings/cr/reports/Indonesia. pdf (Accessed on 1 November 2012) Deresky, H (2008), International Management – Managing Across Borders & Cultures, 6th ed, Pearson Internat ional Edition, Pearson Prentice Hall. Kobrin, S. (1979). Political risk: A review and reconsideration. Journal of International Business Studies, 10(1), 67-80. Marshall, A. & Magnowski, D. (2010). Key Political Risks to watch in Asia in 2011. Reuters. online] Available at : http://in. reuters. com/article/2010/12/21/idINIndia-53707220101221 (Accessed on 31 October 2012) One World Nation Online, 2012. World Population by Continents. [online] Available at : http://www. nationsonline. org/oneworld/world_population. htm (Accessed on 31 October 2012) Ruby, C. L. (2002). The definition of terrorism. Analyses of Social Issues and Public Policy, 2(1), 9-14. TaxRates. cc (2012). Indonesia Tax Rate. [online] Available at : http://www. taxrates. cc/html/indonesia-tax-rates. html (Accessed on 1 November