The concept of Being by Heidegger

Introduction The concept of Being is as old as being itself. Heidegger, one of the greatest philosophers, attempts to ascertain the meaning of Being. In his work, he employs the term Dasein to explain the existence of being. His argument plays a key role in philosophy as it attempts to pose the question of the meaning of being.Advertising We will write a custom essay sample on The concept of Being by Heidegger specifically for you for only $16.05 $11/page Learn More This ‘question’ forms a fundamental role in formulating Heidegger’s concept of meaning of being. It should be noted that the term ‘question’ is emphasized in Heidegger’s work. This is because he uses it to track the truth of being. Being an ontologist, his work concentrates on replenishing the question of ontology. He argues that this matter has created a huge problem especially to the western philosophers. The problem, according to him, is the question of being. It is however notable that although it appears his argument seems to concentrate on the question of being; he makes a plausible attempt to explain the nature of philosophy. According to him, he views philosophy as an ontological seeking as opposed to ontic. Heidegger’s argument therefore opens up the concept of philosophy to ‘questioning’ in an attempt to understand the meaning of being. He further uses his ‘question’ philosophical approach to describe the existence of being and coming up with the fundamental presuppositions adopted to explain being. This paper will therefore examine the important question of being as articulated in Heidegger’s work. The author of this paper will also revolve around the ontological composition of the world and its contribution to the question of being. The Concept Of ‘Being’ Heidegger’s philosophy of ‘being’ is an ontology that seem to focus on self philosophical con sciousness of man. According to him, the question of being has been neglected and forgotten. He continues to argue that this very question greatly contributed to the works of Plato and Aristotle. This assertion cannot be taken to mean that no other philosopher has questioned the meaning of being since the contribution of the two philosophers. Rather, this assertion has been interpreted to mean that most philosophers have concentrated on exploring the nature of beings and not the ‘being’ itself. According to Heidegger, he maintains that that he is the only philosopher who has attempted to examine the primary question that has been neglected by all other western philosophers. According to his school of thought, he purports that the question of being has been prejudiced and deemed as unnecessary. He therefore comes up with three presuppositions that he believes have contributed to such prejudice and to which he refutes. First, the proposition that ‘Being’ is t he ‘most universal concept’.Advertising Looking for essay on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More He asserts that â€Å"an understanding of Being is contained within our every apprehension of beings.† In his argument, he brings to fore the philosophical arguments by other philosophers such as Aristotle and Hegel hence coming up with the conclusion that the concept of Being is not a universal concept, but rather vague and obscure. This argument attempts to bring out the ontological distinction between Being and beings. The philosophical approach by Thomists and Hegel seem to incline towards the idea that Being and beings should not be unified. This therefore creates an implication that if the two concepts cannot be treated as one, then it would be difficult to define the universality of ‘Being’. Further, it becomes hard to comprehend the terms that govern ‘Being’ as the †˜most universal concept’. Heidegger best approaches this contentious issue by asserting that it is difficult to come up with a precise definition of ‘Being’. According to him, â€Å"The concept of Being cannot be understood as a being, and Being cannot be depicted as predicating beings to it.† The implication created is that the question of being goes beyond logic. This means that it must surpass the normal way of analyzing things. It is not in doubt that most western philosophers have concentrated entirely on beings as opposed to Being. This makes it difficult to rely on their formulations hence making it vital to adopt a different approach. It is also important to note that Heidegger does not render their formulations useless but rather as unreliable. Thirdly, he debates on the notion that being is the self-evident concept. The use of copula (is) regularly in the day to day language in an attempt to discuss beings. It is therefore arguable that most phi losophers seem to comprehend the concept of ‘being’ but nevertheless dismiss it as ‘unintelligible’. From this, it can be inferred that an appeal to the concept of self-evident should be dismissed as a ‘doubtful process’ as it is solely based on one’s analytical features. Based on the above ‘dogmas’ laid down by Heidegger, it is apparent that the question of Being has not been adequately addressed by philosophers and as Heidegger puts it, ‘the meaning of Being is still veiled in darkness.† What then is ‘Being’? From the above argument, it is important to first formulate the question in order to come up with an appropriate answer. This simply means that it would be difficult to rely on any Supreme Being to comprehend the source of Being. The answer should be sought elsewhere. This is because the question of being is constituted in the entities of the Being. The basis of examination therefore lies in t hese very entities that need to be interrogated in order to establish the appropriate answer.Advertising We will write a custom essay sample on The concept of Being by Heidegger specifically for you for only $16.05 $11/page Learn More Theoretical Observation The existence of Dasein proves to be the underlying principle in Heidegger’s works that describe the concept of ‘Being’. By exploring the existence of Dasien in its actual form and its continued survival in everyday life, Heidegger simplifies the quest to understand the meaning of Being as a whole. In his argument, he refutes the authenticity of the declaration pertaining propositional facts in a bid to understand Being. He views such propositions as being sightless and secluded. Further, he argues that they do not possess any form of truth construed in the logic of ‘agreement’. According to him, it is necessary for Dasein to recognize itself based on its existence a nd the possibility of Being as it is. The possibility of existence is fully dependent on the form assumed by Dasien itself. This means that it is up to the Dasien itself to determine its existence depending on the possibility it has assumed. In essence, the experiences of our everyday life play an integral role to either apprehend or disregard the possibilities that aids our understanding of existence. Another theoretical observation is in regards of Dasien’s existence in a ‘world’. The existence in the ‘world’ is not by choice. According to Heidegger, Dasien’s existence in the world is not out of free will but rather living ‘as it is’. This means that Dasien has to adapt to the things that are attached to the world. Further, the world is special to each Dasien. The Dasien is therefore attached to the world and describes itself in relation to this world. This therefore explains the reason why beings develop a habit of getting ensn ared to the world. In fact, the daily existence results to the Dasien focusing on the current worldly activities hence forgetting to view ‘Being’ as it really is. This leads to the human beings being estranged from their true-selves. How then is the authentic Being exposed to us in order to understand the existence? What decisive entity of Being is revealed in order to unveil the true nature of Being? According to Heidegger, the answers to these questions depend on time or temporality. In his school of thought, he recognizes the importance of time to project the meaning of Being. Each Being emerged from somewhere and after its present existence, it will surely have an end. It is therefore of importance to note that the existence is based on time. Further, our present existence means that we have not fully existed. This therefore defines our Being. However, it should be understood that the everyday occurrence of Being just before death is not conclusive. It is only when we meet the ultimate death that the authentic Being is revealed. He refers to this concept as ‘the ontological possibility.’Advertising Looking for essay on philosophy? Let's see if we can help you! Get your first paper with 15% OFF Learn More In expanding his idea of Being, he infers that ontology must assume some form of distinction. That is to say that a distinction between something and nothing need to be formulated. Being and time therefore examines the ontological importance that governs Being’s existence. According to Heidegger, consciousness is therefore important as it poses a challenge to humans to live freely in order to live as a whole. In the actual sense, man appears to be bound yet he is exposed to all manner of freedoms. It is for the man to ascertain where he should derive his freedom from. It is also apparent that the phenomenological method is clearly evident in Heidegger’s argument. This is particularly evident in his insistence of being and time. It is for this reason that Heidegger attributes his philosophical success in his work to Edmund Husserl, one of the most successful phenomenologists of all time. Accordingly, his question of Being constitutes an enormous analysis in the phenomen ological custom of Dasien, who in itself seeks being. How then does Heidegger apply the concept of phenomenology to come to his conclusion? The concept of phenomenology is traced to Kant who attempted to differentiate between ‘phenomenon’ and ‘noumenon’. Hegel also applied the concept in assessing the growth of the human spirit whereby he criticized Kant’s philosophy of the two world’s dichotomy. The term was also coined by Husserl to explain his philosophy of ‘eidetic reduction’. It is therefore not a new methodology adopted by Heidegger to explain his own ‘hermeneutic phenomenology’. His methodology lays down the process that merely describes the existence of human beings and their everyday experiences. He attempts to create synchronization in the contradicting terms of existence that result from hermeneutic phenomenology. According to him, he distinguishes his phenomenology from other sciences. This, he attributes to the fact that his phenomenology concentrates more on the superficial resemblance of human society hence approaching the ontology Being as it is. Positive Response To Heidegger’s Argument Based on the above argument, it is important to note that Heidegger’s argument can be said to be tenable. First, his assertion that every Dasien decides his mode of existence can be approached at different levels. It is not in doubt that the definitive certainty existence supersedes intellectual existence. It is therefore personalized and internalized. It is for this reason that it is appropriate to state that man’s existence is based on certain decisions. Failure to make such decisions renders the failure as a decision itself. It therefore becomes important for the temporary nature of life to be emphasized in order to prepare and anticipate our looming death, which is bound to happen at any minute. And how do we define death? While scholars assert that man is conscious of hi s own death, Heidegger’s philosophical argument is that man acquires the meaning of life upon facing the truth of his own transience. This philosophical approach is therefore upheld. In essence, death has been said to be man’s crucial problem. Further, the ontological prominence embedded on temporality is important to reverberate Kant’s argument that the constraint in time is a prerequisite for things to materialize as they are. If the argument is to be approached on the two philosophical arguments, then it would be imperative to say that Heidegger’s argument on temporality acquires an idiosyncratic twist. He disregards the notion of infinite time as one that presents itself at the moment of existence. It can therefore be argued that temporality is a combination of the past, present and future sequences of time that are essentially interlocked. Fundamentally, the question of Being surrounds itself on being and time as proposed by Heidegger. It therefore r emains the basic question in the field of philosophy. Heidegger tackles this question by examining the existence of Dasein. This should not be taken to mean that his focus on Dasien obstructs a clear comprehension of Being. His transcendental methodology that enlightens the priori stipulations on the basis of which Being is viewed as gifted is therefore appreciated. Heidegger also tries to explain the concept of death. It is not in doubt that every Being will cease to exist. He argues that each Being is entitled to his own death. Death cannot be shared with another Being. It is therefore non-relational. The argument tendered by Heidegger is valid in that no one can evade death. The argument therefore creates a very significant concept for the philosophers in an attempt to answer the question for Being. Conclusion The basic work of Heidegger is a contribution to the question of existence of man. His argument has attempted to tackle the question of Being by introducing Dasein. In our discussion above, our Being is determined by the existence of Dasien. Heidegger also challenges his fellow western philosophers to concentrate on the concept of Being, rather than concentrating on the nature of beings. This is because the concept of Being supersedes the nature of beings and should therefore be prioritized. He also formulates a methodology to tackle the question of being. According to his argument, this question of being forms the basis of all other inquiries. Heidegger can therefore be regarded as the ‘builder’ of tradition due to his massive contribution to philosophy through his hermeneutic phenomenology. This essay on The concept of Being by Heidegger was written and submitted by user Everett Cain to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Australia WW1, WW2 essays

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The connection to the server and the access to the internet need to be secured. Generally, the misuse of data can be harmful to the users, the security of the information and avoiding of unauthorized explore of information have to be minimized. Application: Smart Phones can be said that a combination of cell phones and personal digital assistant (PDA). It facilitates to make telephone calls, but also adds in feature that might find on a personal digital assistant. Some of the key features in smart phones are operating system, software, web access, QWERTY keyboard and messaging. (Cassavoy, 2010) Generally Smartphone based on operating system completely different than normal cell phones. For example BlackBerry Smartphone runs BlackBerry OS, and other devices use Palm OS, Windows Mobile and so on. The another feature, software in Smartphone allows user to do more function than the cell phone like creating, editing Microsoft office document, downloading documents, editing photos and driving direction via GPS, creating playlist of digital tunes. In addition, Smartphone allows accessing the web at higher speed. The addition of Wi-Fi is really a smart feature in Smartphone. The QWERTY keyboard in Smartphone is another attractive feature. User can use keyboard as in his/her own PCs and Laptop. All cell phones can send and receive text message, but what makes a Smartphone apart is its handling of e-mail. It can sync with personal and sometimes, professional e-mail account. (Cassavoy, 2010) The main reason that Smartphone becoming a popular device is because of greater functionality is built-in, Smartphones can do things much more quickly than the normal cell phones and personal digital assistant (PDA) . Some of the benefits of Smartphone are as follows: Stay connected: The main advantage of the having Smartphone is mobile access to the internet using Wi-Fi or cellular network. This also helps to keep the user connected with the social networks. It also provides the internet search engine to get useful information from internet. (Mark, 2010) Keep in touch: Smartphone is helpful in many ways. Users can receive, read and reply email instantly. It helps the users to be in touch. (Mark, 2010) Get organized: Another important feature of the Smartphone is it helps to be organized such as a personal digital assistant does. Powerful memory capacity and High speed processor makes Smartphone equipped with an address, book, calendar, calculator, voice recorder and note pad that helps in users personal and professional life run smoothly. (Mark, 2010) Business: Users are able to work outside of their office with the help of Smartphone. Generally Smartphone have word processing capabilities, spreadsheet and database programs. This will help the users professional business life. (Mark, 2010) Some other advantages are as below: Smartphone can function as personal organisers, with electronic version of diaries, contact list and reminders. (is4profit, 2010) User can enjoy flexible working environment. Its like taking notes, reviewing and editing appointments, contact and important documents, all while users are on the move. (is4profit, 2010) It allows information sharing. More data can be received and transmitted via Smartphone such as e-mail attachments or data files from websites. (is4profit, 2010) The greater functionality; now user can use cameras with immediate snap and send functionality. A remote user can send MMS or share photograph with others immediately. (is4profit, 2010) Faster communication: Web access is quicker in Smartphone than in previous device. It is very easy to access e-mail and information from the internet.(is4profit, 2010) Analysis and Conclusion: The costumers expectation is rising day by day about Smartphone, todays Smartphone user expects a device to not only offer leading hardware and software function, but need to be more customizable than ever before, through availability of downloadable mobile application varieties. (Byrne, 2010) Most cell phone users were pleased with clear voice calls, texting and games before the mobile phones became smart. The users didnt expect availability of 3G/ 4G web, 1 Ghz speed of processors, high definition video, social networking GPS map, higher megapixel cameras, high quality sound, mobile application and high resolution screen. Now most of these features are in Smartphone like iPhone, BlackBerry etc. (MobileBeyond, 2010) Smartphone are important for consumers as well as to IT professionals. The internet world is moving from web 2.0 to web 3.0, the Integration of all the media internet access by mobile device will be grown up. In Appearance, Smartphone are small and environmentally friendly and it is because they require less energy and less raw material consumption. There is high possibility of Smartphone used in information economy by IT professional. (Horton, 2009) The competition is increasing day by day and the people are demanding Smartphone at the lowest price. Companies are fighting for higher market share. So it can be clearly analysed the Smartphone will be the one thing that almost every people will have in future. However, the satisfaction using Smartphone will only improve if mobile companies bring out hardware and software application that perform flawlessly and provide best value and choice. (MobileBeyond, 2010) In conclusion, the advance features, the capabilities of the Smartphone, and the growing demand bring them to one of the popular digital devices almost people will have. Question 2: Evaluate the role of e-commerce and web 2.0 technologies in eBays and Amazons increased popularity? E-commerce is growing rapidly nowadays. The transaction of business and trade are going online rather than manual one. Most of the buyer looks internet at a glance when he/she feels to shop. The internet trend for business or say e-commerce is thus becoming more popular. Ebay and Amazon are becoming one of the frequently used methods in e-commerce trend. These two methods of e-commerce are different in nature but somehow they are similar in dealing business operation. Both of them are using e-commerce and web 2.0 technologies. (CommunicateBetter, 2009) Web 2.0 technology and the e-commerce are very much important for the eBay and Amazon. Before that the difference between the eBay and Amazon also play a vital role in buyers mind. eBay are better option than Amazon for some field where as Amazon also better in some other fields. Generally we can find auction sale on eBay where the price can be bargained among the buyer and seller where as the Amazon is fixed in price of the product it offers. The bargaining option is not available in Amazon. (CommunicateBetter, 2009) Web 2.0 is a trend that promote around using interactive, community-driven sites for information sharing, networking among users. For instance, blogs and wikis along with Digg, Reddit. Customers are now able to interact with the business organization which enhance the companys succession. Now Web 2.0 is removing the dull, static websites in previous time. Customer can play active role, they can interact with the website content and get involved in ways that were not possible in previous time. (CommunicateBetter, 2009) The Role of E- commerce: Web 2.0 feature in e-commerce are the advantageous for Amazon and eBay. This provides free blogging application that can be considered as web 2.0 pioneers and they are free of charge. Another important role is multimedia support, where the rich feature can be incorporated to enhance the customer experience such as Flash and Silverlight. The core of Web 2.0 is social networking, e-commerce host the features such as chat scripts and bulletin boards enhance to create a community environment. (CommunicateBetter, 2009) Revolutionary changes are happening in online environment. New web technologies are giving a better interactive shopping experience on buyers side. With the advancement, Web 2.0 is offering a good perception among the customers. The business has only two options, either they have to meet the growing expectation or they have to lose them to another site. (Fry, 2011) The Web 2.0 supports the high level of interaction on web site and similarly the buyer also expect the same level of interaction when they go shopping online. There has been occurred fundamental changes in measuring, the tracker or say analyst start to measure its effectiveness in terms of time spent on the web rather than just the traditional count of page views. Web pages are relying on AJAX (Asynchronous JavaScript and XML) technology, this offers to streaming media to serve new content without reloading individual web pages. This changes in web technology is altering the way of online shopping. Almost, none of the customer want to wait for the next page to load after click, they want single-page browsing and checkout process that ultimately saves time, reduces frustration and shopping cart abandonment. (Fry, 2011) In Web 2.0 technology the AJAX technology pulls relevant data forward flawlessly and helps them to smooth, consistent view and interaction. This can also help the customer to select the items frequently viewed, to view user generated reviews, product demonstration, assembling and tagging product with additional keywords. (Fry, 2011) .The web 2.0 is also offering pairing items from different brands and company. For example a buyer can now look to pair up similar items from different brands and sites. Similarly in Amazon, they are also able to help the customer to add their product in wish list and after that they can add to the basket so that the targeted product can be come up with details and can be easily found remaining on the same web page. (Fry, 2011) We cannot neglect the E-commerce aspect while talking about the Amazon and eBay. Not only the web 2.0 is important for the eBay and Amazon but also the role of E-commerce arise equally. The order acquisition, transaction of payment, delivery of the product in internet is the E-commerce. The Amazon seller must use Amazon payments to accept the payment. Amazon collects the payment made by the buyer and deposits it into bank, where as eBay use different payment method to make transaction deal. Such as Pay pal. (Bromley, 2010) Amazon and eBay, both are using Web 2.0 version technology on their sites. eBay provides different photo view of the product as well as the animation of the product feature to attract its customer but in Amazon, only few photos are available to its customer because they want to make sure their customer that they do business in reality for that if the ordered product is different and goes wrong they provide return policy to their customer. (Bromley, 2010) Conclusion: The role of Web 2.0 and E-commerce in Amazon and eBay is very crucial to their succession and popularity. The trend of online business (e-commerce) and latest web technology (web 2.0) is one of the important aspects of the business environment. To survive in global intense competition the business has to cope with the E-commerce and has to prepare online strategy. Hence, the e-commerce and web 2.0 technologies are one of most important reason for the success of Amazon and eBay business.

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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

Soccer Symbol

Anas Salem Professor Michele Jelley 9/21/10 English Comp 101 Hidden Effects of Soccer Eduardo Galeano reflects upon one of, if not the most popular sport in â€Å"Soccer Is Everything. † He calls soccer â€Å"a powerful symbol, a great mystery. † The message that Galeano is trying to convey is that soccer is not just a sport anymore, it is much more than that. The reason is that soccer has affected individuals, groups, countries, cultures, and religion by unification because of its popularity and the diversity of its fans. First, Galeano says that soccer can affect individuals and groups.He explains how many who felt they have no place in the world found shelter through playing soccer, this happening at a time where suicide among the youth was at its highest rate in the world. Second, today it is obvious to see and notice how soccer affects countries. It does not matter how powerful or weak a country may be, Galeano says that when it comes to soccer, the rarest of event s does happen, for example an Arab team to become the Israeli champion, or a country in war, Iraq, to make it to the semi finals.Thirdly, soccer has affected culture and religion. Galeano says soccer re-established bonds of solidarity broken by the culture of alienation dominant in today’s world. Also, while some saw women’s team as a source of pride for their country, it had an effect on people practicing the religion Islam, because Muslim men were against the idea of women playing soccer. Many did not allow or want it because the outfits the women wore revealed parts of the body that as a Muslim woman should be covered.And some Muslim men just accepted it to save their families from poverty. In conclusion, the message that Galeano is trying to convey when he calls soccer â€Å"a powerful, a great mystery,† is that soccer, which was just a sport, now has and continues to unify, shelter, surprise, and affect a majority of the population. Who would of thought a p hysical sport, can affect your life in ways you couldn’t imagine and become such a powerful symbol.