All happening from 2013 to 2014, this ensure more business hence more profit for the country thus more resources to provide for the country so in conclusion a more peaceful state. Elections After a difficult election, with Sue Sky herself winning a parliamentary seat, and possibly even taking a cabinet post alongside President Then Seine, Manner can be said to have a real multi-party system for the first time since the military coup in 1962. The elections took place alongside many other political and economic reforms instituted by the government in the past eighteen months.

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Many developed democracies are boosting aid to Manner and considering dropping sanctions that have been in place for more than a decade due to the previous military government’s serious human rights abuses. Western corporations, anticipating an end to sanctions, also are preparing to enter Manner, one of the largest untapped emerging markets left in the world and a major source of natural resources. A Season of Rapid Change over the past year, after the military regime officially retired In November 2010, Manner has begun to change enormously.

A new government, led by Then Seine, a roomer military man but one who seems to have reformist Instincts, launched a series of surprisingly swift changes. Sue Sky has welcomed a partnership with Then Seine, and has privately told supporters that she believes the president’s motivations are genuine. Meanwhile, the government has liberalized investment laws, planned to free the currency, launched plans to end the country’s myriad civil wars with various ethnic minority insurgencies, invited back the MIFF and other international financial Institutions, and aggressively courted Investments and relations from countries all over the world.

Last month, Manner announced it would start letting in foreign banks, a major opening to financial reform. Many incoming investors and analysts are comparing its potential opening to the early days of reforms in China. (appendix 2. 5) Environmental Manner ranks first as the most at risk’ country in Asia the Pacific according to the UN Risk Model and also ranked at 63 In the EVE. The country Is vulnerable to awide range of hazards, including floods, cyclones, earthquakes, landslides and tsunamis.

Page 2 International business Essay

The likelihood for medium to large-scale natural disasters to occur every couple of years is high, according to their historical data. The most recent natural disaster was In 2012 where two events happened. History of natural disasters 1 OFFScountry. The flood caused 86,000 people to be displaced and affected over 287,000 people. The Arrayed Region was affected most as it caused 48,000 people to be displaced and over 136,000 acres of farmland, houses, roads and bridges were damaged. Another event that happened in the same year was in the month of November where a 6. Earthquake happened in the northern part of Manner. There were at least 16 killed and 52 people injured and over 400 houses, 65 schools and some 100 religious building damaged. Climate Manner’s climate is typically tropical monsoon which is cloudy, rainy, hot, humid summers from June to September but it is less cloudy, little rainfall, mild temperature, lower humidity during the winter season which is from December to April. From this, it is no surprise of the frequent floods that happens in the country during the month of June to September.

Current environmental issues in Manner like deforestation, industrial pollution of air, soil, and water, inadequate sanitation and water treatment contribute to disease and maybe worsen the situation if there were to be another flood or other disasters. International Trade Manner would also suffer in their economy also if they were to be hit by another natural disaster. Other than dealing with repairs and rebuilding the country, their international trade would also be affected.

For example, in 2008 a cyclone hit Manner and it hit the main rice growing area of the country, causing countries that buy rice from Manner to be affected as well. This is because they would have lesser options to buy from and having to be stuck with buying rice from other countries that might have cost more. Manner would also have to buy from the international rake than to be an exporter as the percentage of the rice that were hit was 65%. Social Culture Culture, Language and Religion Manner’s culture is different to any interpretation of life and politesse.

It’s fascinating, gentle and very spiritually alive. The Burmese Language is the official language of Manner. English language is widely spoken in urban areas and around popular cities. Their dialects are Morgues, Papal, Yaw, Ninth, Taunting and Dana, Rashness. The major races are Barman at 68%, Shaman at 9%, Karen at 7%, Racking at 4%, Chinese at 3%, Indian at 2%, Moon at 2% and others at 5%. In Manner, Buddhism s the predominant religion and Tetrahedral Buddhism is embraced by 80% of their population. The local temple is a traditional place of education for them and also a central to their community.

Manners and Etiquette A handshake is considered an acceptable form of greeting but it is not necessary to shake hands. They are not allow to hug or kiss in public, touching any adult on the head and accepting or give things with their right hand. Manners are very past oriented people. Before entering a traditional home, shoes are usually removed though it may no longer be expected in modern city residences. Showing the soles of the feet, pointing the feet at people is considered offensive Public displays of affection between men and women are against in their country.

Small presents are things over the heads of seated elders. To show respect to grandparent’s, parent’s and other elders on formal occasions, the manners have to kneel down with their foreheads and elbows touching the ground. When passing a pagoda or meeting a monk, they put their palms together in a gesture of reverence. Manner people are also very sensitive about imposing on or inconveniencing on other people. Customer (Business Culture) Business relationships focus on building trust and friendships. The recipients have to repay at a later date when a business favor is received.

As business topics does not comes into conversation when two businessman meet for the first time but rather evaluate it’s strength, weaknesses and personality. The business transactions in Manner occurs in English but with an additional Burmese translations would helps to facilitate better in communication. People in manner have a custom of showing respect to their elders which can create friction in business when subordinate is older than supervisor. Technology Technique of farming New methods of farming provides high yields without undermining the natural systems and resources that productivity depends on.

This is called sustainable agriculture techniques. Sustainable farming techniques consist of crop rotation, cover crops, soil enrichment, natural pest predators, offensive integrated pest management. Crop Rotation is growing different crops in succession in the same field is one of the most powerful techniques of sustainable agriculture and avoids the unintended consequences of putting the same plants in the same soil year after year. For Cover Crops, some farmers grow plants known as cover crops to protect and lid their soil during the off-season or for livestock grazing or forage.

This is so as during the off-season, nothing is planted on the field resulting in loss of soil and nutrients which adds cost for farmers and causes severe environmental and public health problems in agricultural communities and beyond. Commonly planted cover crops include hairy vetch, annual regards, and crimson clover. For Soil Enrichment, their soil quality can be maintained and enhanced in many ways, including leaving crop residues in the field after harvest, plowing under cover crops, or adding composted plant material or animal manure.

Soil enrichment is important to a farmer as healthy soil produce the best quality and freshest crops, using lesser of chemicals to help the crops to grow. Understanding a farm as an ecosystem rather than a factory offers exciting opportunities for effective pest control. Using natural pest predators, one of the unfortunate consequences of intensive use of chemical pesticides is the indiscriminate killing of birds, bats, and other pest predators. Offensive Integrated Pest Management is one of the most promising technologies is the control of pests through integrated pest management (IMP).

This approach Elise to the greatest possible extent on biological rather than chemical measures and emphasizes the prevention of pest problems with crop rotation; the reintroduction of natural, disease-fighting microbes into plants/soil, and release of Chemical pesticides are only used as a last resort. Farming equipment Every two years, the costs of machinery operations are calculated and made available. Overall, costs have increased by about 15% between 2010 and 2012. Prices of new machinery have increased for most machines between 2010 and 2012. For example, the list price of a 215 HP tractor in 2012 is $215,000.

A comparable sized reactor in 2010 has a list price of $181 ,500. Between 2010 and 2012, the price of this tractor has increased by 18%. The impact of price increases is to increase machinery costs. The most basic farm expenditure will have to include farming equipment of a tractor, a chisel plow, a field cultivator and a planter. A farm would also require crop care consisting of a rotary hoe and self propelled spraying and ammonia application. Refer to Appendix Transportation & Infrastructure Transportation for matured, ready to be consumed crops need to be transported quickly to the respective buyers.

This is so as quick delivery meaner keeping the crops rest upon arrival at the destination. Therefore choosing the most cost efficient yet effective route is deem essential. Infrastructure is also important to a farm as a good infrastructure will enable efficient transportation. For example, trucks are more efficient on graveled ground than in wet mud. Being the most cost efficient farm to start off, we would still require necessary infrastructure. The most cost effective way of transporting goods around Manner will be by roads.

We arrived at this conclusion after considering the size of the country, at 676,578 square kilometers. It is therefore still practical to ship via truck loads. Attached in the appendix are a list of dealers in Manner that deals in trucks for sale. To further reduce cost, the company could also see into buying second hand trucks if they still function properly as that will reduce expenditure per truck to almost a half. To build a proper infrastructure of roads directly to the nearest city is the next step to allow efficient and effective transportation.

In order to build roads, a survey crew has to be hired to plan out how the works are going to done. Next clearing and piling of any obstruction in the way. Earthwork followed by finish grading and surfacing of roads will be the last three tepees of constructing the road. It is very complicated in calculating the cost of building roads as there are much factors to take into point. From World’s Bank estimated source, it would take about USED$254,OOH/km to build unpaved roads and USED$866,OOH/km to build paved roads.

Information Technology Although information technology does not really have a big impact on a farming industry, information technology will enable customers to hear about our industry in farming. Information technology will also help our industry in linking up with customers via Internet (e. G. Keep, E-mail, contact pages) and as a form of advertisement. This would link our farming industry into the bigger market of the virtual world, hopefully from there, we are then able to sell more produce and reap bigger revenue from this type of advertising.

Labor force Manner is rich in natural resources and with a population of 60 million people. The labor force which is known as their employed population in Manner is estimated at 32. 5 million. With 70% of labor force is in agriculture and related activities, 23% works in the services sector and 7% is employed in industry. At 32. 5 million laborers, most of them were unskilled or lack of skills. The poverty level in the country is very low in income and the capital investment is poor. GAP and GAP per capita The Gross Domestic Product (GAP) in Manner is US$53. 4 billion in 2012 and Thailand at US$365. 56. Manner has constantly increasing over the years from US $31. 37, US$35. 23,US$45. 23 and US$53. 14 billion. Manner has just begun to open its economy following nearly 50 years of military rule. The rule created a centrally planned economy which lead the country to economic decline with spending on military spending, agricultural policies that keep prices artificially low. Now without the military rule, Manner opens up to foreign direct investment. In comparison to Thailand, with a population of 66. 9 million people in Thailand, their GAP is 6 times higher than Manner’s. In previous years from 2009 to 2012, Thailand GAP has fluctuates from US$272. 577 to IIS$263. 709 and then an increase to US$318. 846 and US$365. 564 billion. This is because of tourist arrivals this year from 15. 5 millions to 13 millions and cut its revenue target by 20%. GAP per capita for Manner in 2012 is US $824. 19 and Thailand at IIS$31 58. 0666. GAP per capita in Manner is relatively low because of it’s GAP and that is why their purchasing power is low.

There is an increase of GAP per capita in Manner from IIS$741. 27 to current US$824. 19 while Thailand has a decrease from 3163. 9038 to 3158. 0666. GAP Growth Rate The growth rate in 2011 is at 5. 3% to 6. 5% in 2012. Rice exports are a potential source for Manner’s economic growth in 2013. The Manner Rice Industry Association expects the country’s rice exports to hit 1. 5 million metric tons in 2013, up about 88 percent from 2012. Agriculture accounts for about one-third of Manner’s GAP, employs the majority of the workforce and makes up nearly 30 percent of the country’s total exports.

Economic growth over the longer term is expected to be driven by rising gas production, services, agriculture, infrastructure investments, a strong increase in FDA and greater international trade. Inflation In 2012, inflation was at 6. 5 % mainly by performances in gas production, services, construction, foreign direct investment and commodity exports. Inflation has been on the rise in recent months, reaching 7. 3 percent in August, on account of increasing food and housing rental costs. Let would hurt the local people as manner is relatively a poor country which would cause locals to spend more money to buy their goods.

Economic Trade Natural gas is one of Manner’s largest sources of export revenue, accounting for billion in the last fiscal year, surpassing the 2011-12 record of $3. 5 billion. Foreign direct investment also grew from 3. 7 percent of GAP in 2011-12 to 5. 2 percent in the 2012-13 period. With further growth expected and energy demand increasing from neighboring countries such as India, China and Thailand. The World Bank expects Manner’s natural gas production to rise significantly with new fields coming on stream in the 2013-14 fiscal year.

With many development partners including the World Bank are giving their support to Burma in the coming years. Manner’s export for 2013 is at IIS$860. 10 millions while imports is at IS$ 678. 4 millions. There is a trade surplus. The export and import were done through normal and border trade. Exporting items includes natural gas, Jade, bear’s and pulses, rice, fish, rubber and teak while import items include oil and gas, auto spare parts, iron and steel, palm oil, pharmaceutical products, plastics, fertilizer, cement and electronic equipment.

Conclusion In conclusion, for the technology aspect in the “PEST” model, our group has taken into consideration different techniques for farming, the farming equipment required, rainspout, infrastructure and information technology. As we move into infiltrating Manner via the agriculture industry, it would be of most importance to set up the technology state first. By starting with equipment needed for produce and infrastructures needed for transportation. However, as much as we try to modernize Manner, we do understand they have a large manpower population.

Therefore advising them to bring in modernized farming equipment may be rejected. However the case, the produce will still be cropped on time as it is Just a manpower versus modern equipment kind of equation, whether if the company decides to give Jobs to 0 workers or buy 1 tractor. It is a decision as labor hours in Manner is cheap as compared to buying equipment. Infrastructure is a relative must to transport goods for sale and information technology is the cheapest and most effective way of communicating to the outside world, therefore we do not see a turn down in that area.

For businesses to invest in a country, they would not want to risk any losses from disasters. Especially when countries like Manner are vulnerable to such disasters. Such losses would be like manpower, infrastructure, etc. The best option or the investors are to evade the country so that the losses could not happen. Despite the risk, the environment in Manner could provide opportunities for place that was unattractive from the result of an earthquake to a tourist attraction.

It will increase the country’s economy and also support the social factor of the country which is providing the civilians something to enjoy for. Investor confidence and economic activity will rise from Manner hosting the Southeast Asia Games in December 2013 and chairing the Association of Southeast Asian Nations in 2014. Robust growth in exports and tourism earnings are expected to be more than offset y increased imports from higher investment and an easing of foreign exchange restrictions.

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