Digitized by Kansas Correctional Industries

This study is specifically directed to implications of international investment, policies and procedures by American business enterprise, i.e. the Multinational Corporations (MNCs) in Asia and Pacific, with specific reference to India and Developing Countries, in comparison to the total world.In anticipation of data to quantify and verify claims and counter claims concerning the effects of MINCs, the following objectives were studied: (1) the trends of the past decade of the U. S. direct investments by Majority Owned foreign affiliates, (2) the identification of significant economic and commercial areas in which public policiesand MNCs investment interact, (3) the major. policy consequences that flow from such interactions, and (4) projections of the trends for the period 1977 and 1979. The main policy areas discussed are: (1) U. S. direct investments (book value), (2) net capital outflows, (3) reinvested earnings, (4) earnings, (5) balance of payments income, (6) sales, and (7) expenditures.The research design incorporates treatment of regressions by using orthogonal polynomial model, correlations and analysis of financial ratios. Secondary source data has been primarily involved in the study. The two major sources of government data were the U.S. Department of Commerce publications from (1) the Bureau of Economic Analysis and (2) the Bureau of International Economic Policy and Research.The analysis of the data indicates that in the past decade (1966-75) the investments in the Total World had an increase of 42 percent with an increase of 172 percent in net sales. Developing Countries had an increase of 25 percent in investments with a 250 percent increase in net sales, an increase of 134 percent in plant and equipment expenditures and an increase of 120 percent in capital expenditure. _Asia and Pacific had an increase of 50 percent in investments, with 397 percent in plant and equipment expenditures and 241 percent in capital expenditure. However, in India decreases are indicated of 11 percent in investments and .13 percent in net sales, an increase of 25 percent was indicated in plant and equipment expenditures, with a decrease of 38 percent in capital expenditures.However, all the areas under study indicated a very significant increase in export sales to other foreign countries which signifies the maximum profit margin according to the analysis.The projections for 1975-1979 indicate an increase in investment of 252 percent in Developing Countries 115* percent in India, and an increase of 14 percent in Total World, with a decrease of 19 percent in Asia' and Pacific. However, there is an increase indicated in net sales of 48 percent in the Total 'world, 28 percent in Developing Countries, 100 percent in Asia and Pacific and 15 percent in India. Similarly, the expenditures project an increase in plant and equipment expenditures of 11 percent in Developing Countries, 43 percent in Asia and Pacific and a decrease of 89 percent in India.The following inferences have been drawn from this study: (1) investments of the 11NCs are going to increase in the Total World; (2) Asia and Pacific with reference also to India hive a very positive indication of expansion, particularly in petroleum and manufacturing affiliates; (3) net earnings have the maximum returns on export sales to other foreign countries followed by sales to the U. S. in all of the areas; (4) expansion of N1NCs investment in Developing Countries and Asia and Pacific indicates a higher return in the Balance of Payments Income, thus indicating a positive impact on the American economy as well as on the host country's economy; (3) defects of financial market mechanisms in the less developed countries as in India have vitally affected the flow and allocation of funds, the mobility of financial assets, and the value of money; (6) lack of a properly functioning capital market has vitally affected the economic development in the less developed countries.The following suggestions are presented as indicative of needed improvements in regard to the study:(1) A mixture of public and private institutions may achieve a workable allocation of loanable funds in a nation's credit market.(2) In the spirit of long-run analysis, it remains to be noted that current capital outflow gives to future return flow, which may depend on the degree of reinvestment abroad. This may also have its bearing on domestic investment. (3)Profits, before and after foreign tax, should be shown for foreign operations in the branch form. These profits are currently included with other types of foreign income.(4) Foreign taxes paid and the credit claimed against then: should be separated into foreign profit taxes (or other similar taxes) and foreign withholding taxes, and should be attributed to the various forms of foreign income (branch profits, dividends, interest, etc.).(5) The distribution of foreign income and taxes paid by size of total assets of the U. S. reporting corporation is inadequate. The breakdown is not advanced beyond the $250 million asset-size class and in some cases the breakdown stops at $100 million, even though the vast bulk of foreign income accrues to corporations in size classes above this level. This distribution should thus change.

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There have been few attempts to empirically delineate and assess the importance of "external" or "international" factors in the study of comparative politics and political development. The purpose of this thesis is to examine an "international-national linkage" which has been the subject of Considerable speculation butressed with anecdotal evidence. The linkage is between the short term instability of export proceeds of underdeveloped countries and the amount of political violence with in these countries. The independent variables are export instability, export losses, export instability impact, and the impact of export losses. In the first section of the thesis, the external nature of export instability is discussed. Export instability is not always induced externally. The evidence linking export in stability to domestic economic disturbances and economic disturbances to political violence is presented and discussed in the next section. Domestic economic disturbance is an unmeasured intervening variable in this study. There are many methods of computing the instability of export proceeds. Percentage deviations from annual trend values are used in this thesis, with the trend values computed using five year moving averages. The data sources and various measures of political violence available are assessed in terms of validity and reliability. A composite index of "the total magnitude of civil strife," developed by Gurr and Ruttenberg, is used to measure the amount of political violence. The results of across-sectional correlation analysis for a sample of forty-seven underdeveloped countries indicate zero relationships between the four independent variables and political violence. A lack of covariation within the total sample may obscure significant correlations of opposite sign within specified subsamples. Accordingly, the sample is subdivided into three relatively homogeneous socio-economic regions and four political system types. The extent and direction of the relationships does vary according to region and type of political system. The variation is not large. / Arts, Faculty of / Political Science, Department of / Graduate

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Call number: LD2668 .R4 1985 R64 / Master of Science

This paper uses general equilibrium static and dynamic models to examine the economic and environmental effect of capital liberalization policy based on the general equilibrium static and dynamic models. The first topic develops a static general equilibrium model of a small open economy in the presence of unemployment with three sectors: a nontradeable sector, a tradeable sector, and an environmental sector. In the second section, I use a dynamic general equilibrium model of a small open economy in the presence of unemployment with three sectors: an importable sector, an exportable sector, and an environmental sector. In the last section I analyze the environmental effect of a developing country's capital liberalization policy when the consumer values the environment. The dynamic model, based on intertemporal optimization, focuses on the role of how land development is affected by foreign capital investment. The time-varying dynamic policies, such as planned permanent and planned gradual capital liberalization, are investigated to analyze the dynamic path of land and foreign capital stock in the short-run. The major findings of this paper are described as follows. In the long-run dynamic analysis, the production of the environmental good in a developing country is reduced when the developing country has a positive net income effect due to further capital liberalization, if there is an initial shortage of capital investment. The reduction of the environmental good might have a significant welfare impacts on the welfare of a country if the consumer places high value on the environment. This result indicates that countries with less environmental awareness are likely to improve the welfare of their countries whereas countries with strong environmental awareness are likely to reduce the welfare of their countries with capital liberalization. The other important result is that inclusion of the environment in the consumer's utility function slows down the pace of land development in the short-run dynamic model if the developing country lowers its capital investment tax rate. / Graduation date: 1996

Knowledge is the key to growth and development. Unfortunately, the knowledge gap which exists between industrialized countries and developing ones is large. As information technologies play an essential role in the movement of knowledge and information, they hold promise for the reduction of this gap. Information technologies are being introduced progressively in all activities of both the public and private sectors. Business organizations and commercial activities are thus being profoundly transformed, at varying levels and by different instruments. Developing countries cannot afford to be left behind in this information revolution. The international community recognizes this, and has instituted a range of programmes promoting electronic commerce in developing countries. However, to maximize the benefits, developing countries must put in place an environment that favours and promotes the acquisition, absorption and communication of knowledge by their citizens and business enterprises.

This dissertation investigates the effects of exchange rate devaluation on non-mining exports in Botswana over the period 1984-2012 and the exchange rate pass-through effect to consumer prices. The economy of Botswana is significantly dependent on mineral exports, particularly the diamond. The dominance and over-reliance on diamond exports in the economy has led to low levels of economic diversification. Bank of Botswana has over the years devalued the pula, in attempt to stimulate growth of non-mining export industries and to enhance non-mining export competitiveness. However, raising export competitiveness this way may be inflationary and have no significant effect on non-mining exports. The study investigates the existence of cointegration between real effective exchange rate and the non-mining exports using the Johansen method of cointegration. The vector error correction model is used, to examine the short-run dynamics of the model. The results suggest that a positive long-run relationship exists between real effective exchange rate and Botswana’s non-mining exports. The results of the exchange rate pass-through suggest that nominal exchange rate has a short term relationship with consumer prices in Botswana. However this relationship does not hold over the long run.

No description available.