Special Economic Zone

Wednesday, July 18, 2012
SpecialEconomicZones (SEZs) are specific geographical regions that have economic laws different from and more liberal than a country's typical economic laws. The goal is usually an increase in foreign direct investment (FDI) in the country.

There is a clear understanding that a well-implemented and designed SEZ can bring about many desired benefits for a host-country: increases in employment, FDI attraction, general economic growth, foreign exchange earnings, international exposure, and the transfer of new technologies and skills. Hence, many developing countries are also developing the SEZs with the expectation that they will provide the engines of growth for their economies to achieve industrialization. But for this to be successful their governments need to enact legislation, create a focused administrative infrastructure to govern special economic zones, offer highly attractive incentives and locate zones in the best possible locations. Overall investment climate (infrastructure, governance) in a country matters in the success of its special economic zones in terms of competitiveness.

One of the earliest and the most famous Special Economic Zones were founded by the government of the People's Republic of China under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years. Following the Chinese examples, Special Economic Zones have been established in several other countries.

In the face of fierce regional competition, South Korea is also showing strong economic performance and can boast a highly skilled labor force. It has started working strategically towards attracting investment, including the establishment of its first special economic zone, called The Incheon Special Economic Zone and so look set to transform the country into a regional hub from which foreign companies can expand into other parts of Asia.

The Incheon special economic zone in the north revolves around the international airport, the creation of an international financial services district and Songdo’s “intelligent city”, which will include a 60-storey world trade centre, 60 office buildings, deluxe hotels, shopping malls and a golf course, due to be completed by 2008.

These economic zones are a strategy to make Korea (http://korea.ixs.net/) more attractive in the eyes of foreign investors and to draw them to the country.

The project includes a technology complex to house research centers and venture start-ups alongside the Korean Institute of Technology. Two more complexes, for biotechnology and for knowledge and information will be built by 2008.

These projects, which have high-level political backing, are supported by a package of generous financial incentives. Other incentives include simplified administrative procedures, heavily subsidized land leases on government owned land, tax breaks and linguistic support.

Situated directly between Japan and China, South Korea is at the centre of a vast Asian market with a total population of two billion, including 500 million in the ASEAN (Association of Southeast Asian Nations) countries, with which, along with China and Japan, Korea enjoys a special commitment to economic cooperation. North-east Asia alone accounts for about 24% of the world’s population and 19% of global production.

South Korea's gateway strategy is designed to leverage its geographic and geocultural advantages while offering a new, friendly business face to potential investors in the form of SEZs in the southern part of the peninsula. Foreigners, foreign companies, and international economic organizations can be involved in free corporate activities in these economic zones offering a range of special advantages, including tax, labor, regulatory and other incentives.

South Korea is a cheaper location than Japan and more straightforward from a regulatory point of view than China, having opened its markets decades ago.

Generally, it is argued that the special economic zone concept is attractive because it is much easier to resolve the problems of infrastructure and governance on a limited geographical area than it is to resolve them countrywide. Such economic zones cannot be insulated from the broader institutional and economic context of the country and be treated as an economy within the economy. Zones are a part of the economy and require overall improvement in the investment climate to ensure success in the long run. They should not, therefore, be viewed as an alternative to the overall development model. This is perhaps the reason why SEZs failed to fulfill the role of engines of industrialization in most countries on a sustainable basis.          

Automotive Sales Training: The Need To Do It Right

Thursday, July 12, 2012
Automotive Sales Training, while not necessarily a glamorous topic, is a subject that needs some attention. Dealers, as they continue to battle the manufacturers with the higher and higher CSI demands, the need for continued and professional automotive sales training will only grow.

Think about it for a second as we walk through a typical scenario. A guy/gal just finishes college, or they have heard from a friend how lucrative the automotive sales business really is...so they wander on down to their nearest dealership. (I am obviously over simplifying here).

Once the dealership and this guy/gal decide that there is a good fit; the automotive sales training begins. The problem, however, is that we have found that the majority of fast paced dealerships simply don't have the necessary time to sit down and ensure that their new staff members are properly trained.

Sure, many of them are trained on the "steps-to-the-sale," but in today's day and age, automotive sales training needs to go much more beyond the basics. Here are a few areas that automotive sales training programs can no longer go without:

1. Sexual Harassment Training

2. Human Resources Training

3.Contract Training

An effective and efficient Automotive Sales Training program that goes without proper "Sexual Harassment" training is setting the dealership up for a future lawsuit. Ok, having someone come in…do a 1 hour compliance seminar, then having the entire staff sign a document stating that they understand the elements of sexual harassment is not going to cut it. Not in the least. We are hearing of dealerships that still maintain 100% of the liability, as a sharp attorney is easily able to pierce that "piece of paper," arguing that it is merely a piece of paper and not a true intention of the dealership to act in good faith to prevent these actions.

Speaking of effective automotive sales training programs. If you do not take the next step and have "Human Resources" training, the dealership is once again looking for trouble: trouble that you just don't need and can easily eliminate. Look at it this way, by simply engaging in a simple once-per-month course for all 1st year employees to sit with the Human Resources manager and go over the policies and procedures of the dealership, you will be miles ahead of any future lawsuits.

Last, but certainly not least, is "Contract" training as it relates to your automotive sales training program. What do I mean by "Contract" training? Well, as we all know, most of the individuals working in the automotive sales industry do not have a finance degree. They do not understand the related contract laws that apply in their state. However, these are the same individuals that we rely on to ensure that applications, customer statements and final paperwork are documented properly. Granted, the finance managers in most states are required to have some form of "insurance license," but this does not mean that they get the proper training around contract law and the nuances associated with the contract. We are seeing day in and day out, simple mistakes being made by staff at the dealership nullifying the legality of contracts every day. This can easily be avoided with a proactive management team.

My message here is simple: automotive sales training does not end with the "steps-to-the-sale," but actually should just be the beginning of the new salespersons training program. Dealers need to protect themselves in every aspect, and this is not something that they can decide to do later.  


144 Automotive Has Got You Covered

Sunday, July 8, 2012
144Automotive has served Mt Airy and New Market for more than 17 years and so customers have come to expect the very best service and reliability on their foreign and domestic carrepair and maintenance needs.

ASE certified, their mechanics are experts in a wide range of car services whether you want repairs or to purchase something form their extensive range of car products, 144 Automotive has something for you.

If it is quick, affordable but reliable and quality service and repair that you need then check out the guys at 144 Automotive.

144 Automotive care about their customers and build up a positive relationship with them through providing ongoing maintenance requirements to all vehicles.

Priding themselveson only the best customer service, come into their office and look at the state of the art facility and efficient and effective service. All car repair work done with 144 Automotive is guaranteed, just to show confident they are that you will be happy.

144 Automotive understand that car repair can be expensive which is why they offer great deals to those in the community who need it most including seniors.

144 Automotive also specialises in automotive detail and so as well as fixing your car they will have it looking in tip top condition to with an exterior wash and interiorvacuum.

For any auto repair and maintenance needs 144 Automotive are the ones for the job. There is no such thing as a job that is too big or small they can change oil or repair the transmission and everything else in between. They offer a wide range of services including transmission services and repairs, engine tuning, wheel alignments, steering and suspension service, brake service and repairs and tire sales mounting and balance.They also offer vehicle evaluations before you purchase as well as Maryland State Inspection Service. These are just some of the services at 144 Automotive, there are many more. While you wait for your car you might even want to have a look at some of the great products we have in store.

It’s the extra services that 144 Automotive provide that make them so appealing too. They will drive you back to your home or office while you wait for your car or if you live further away will even get you a discounted rate on a car rental.

Rather than having to get previous problems fixed why not go straight to 144 Automotive and find out why so many people in the area are doing adjust that and also find it how getting the job done right the first time is the slogan for 144 automotive.

The team at 144 Automotive have experience on working most American and foreign cars including Chevy, Ford, Honda, Lexus, to name a few.

Not sure if they can help, contact 144 Automotive directly and find out. With state of the art computer technology, qualified and experienced mechanics, more than17 years’ experience and a guarantee on all their work, it’s easy to see why 144 Automotive has you covered.          

FDI Affects On The Economic Growth

Tuesday, July 3, 2012
Foreign direct investment (FDI) is known as movement of capital across national frontiers in a way that grants the investor control over the acquired asset. That is how it is distinct from portfolio investment which may cross borders, but does not offer such control over the business. Firms which supply for FDI are known as multinational enterprises and in this case control is defined as owning 10% or greater of the common shares of an incorporated firm. In the years after the Second World War FDI in general was dominated by the United States, as much of the world recovered from the destruction formed by the conflict of the war. The U.S. was quick at realizing that Foreign Direct Investment is to become a real gold mine. It accounted for around three-quarters of new FDI between 1945 and 1960. Since that time FDI has become a truly global phenomenon; countries with different economic development can enjoy its benefits now, not only well industrialized ones. Currently the importance of FDI can be measured by its share in the global GDP, which comprises of 20% brought in by FDI capital.

Economic growth is actually the increase in the value of goods and services generated by a particular economy. It is usually measured as the percentage of increase in real gross domestic product, or GDP. The growth is normally calculated in terms of adjusted inflation in order to net out the effect of inflation on the price of the goods and services produced. In economics, "economic growth" typically refers to growth of potential output, for instance, production at full employment rate rather than growth of aggregate demand.

It’s not a surprise that major portion of the FDI supply comes from the highly industrialized and economically developed countries. For example in 1988-1992 about 92% of all world’s FDI was between those countries, although it dropped to 85% after year 1997. The reason for such movement of funds is the desire of the developed countries to support themselves while establishing successful routes for their trade and generating growth in their own economies. The picture changed in the recent twenty years however, when huge emerging economies such as India, China and Eastern Europe began to attract investors. The distribution of funds however among those developing countries is quite unequal. The third of all capital was granted to China, mainly because of the size of the potential market, which is the biggest in the world. The biggest investor in China’s economy is Japan, the reason being that it’s closer to China that the rest of the world and distance is one of the major factors in determining the affiliates’ location. Those partners operating for instance in China nowadays sells more of the generated product in their host countries.

With FDI entering developing economies a lot of changes are taking place in the invested economy as well as in global trade. The entering of foreign capital in the Chinese economy first of all generated the development of various industries. Formerly this country was primary operating in the agricultural sector with lack of industrial growth. With money coming in and much of Japanese technology, China became on of the world leader in manufacturing automobiles, home appliances and other technical equipment. Consequently this mirrored positively on the labor market, providing millions of jobs. It’s a known fact that labor in China is one of the cheapest in the world, although the quality of work performed is decent, the fact that also attracted money to this country.

Growth and development of new industries caused GDP growth which is the indicator of overall economic growth of the country. Expanding industrial growth initiates demand for raw materials, thus causing more imports coming in which again are taking into consideration when calculating GDP. The fact of huge investments into Chinese economy and the number of people occupied currently in various manufacturing leads to increased competition. This in turn brings about lower prices in fight for the customer, which actually decreases profits in some instances. This is one of the reasons why too much of FDI can lead China to a "bubble burst" effect when too much of foreign money comes but they are not efficiently used, because it takes more time for the economy to develop. So the Chinese government has to watch closely for the signs and undertake measure to avoid another "American depression". This is a major disadvantage of FDI in the countries who receive the money. There is also a negative impact on those parties who lend money, as the fierce competition coming from developing countries can drive them out from the market, because countries such as China and Brazil offer much lower prices than say Germany. There has to be a balance of the FDI settings in order to prevent the overload in one countries and lack of capital in others. 

Automotive Marketing

Monday, July 2, 2012
The internet has changed the way people shop for everything, even automobiles. Today, dealerships need to have automotive websites in order to attract customers. Since the shopping habits of today’s shoppers have changed then the auto dealer marketing methods must change as well. The traditional marketing in newspapers, on television, and on radio has become less effective and online marketing has become more effective.

And not just any websitecompany will do, you need to hire a company that specializes in the creating of automotive websites such as Manning Automotive Marketing. This company has been in business for over 25 years and their staff of experienced marketing experts, designers and programmers are experts both online and traditional marketing and advertising that work tireless to meet the needs and wants of their customers.

Manning Automotive Marketing offers a suite of services for their car dealership customers. They offer a dealership website that develops a strong branding that effectively promotes your dealership over your competitors, they offer dynamic merchandising with create product promotions, and create a website with search engine optimization, and implement the latest technology in marketing tactics.

This company offers active web management which makes sure your website is always performing optimally and assigns you a dedicated account manager to work with you on your site content and specials. Your account manager will work with you to make sure your new and used vehicle specials are up-to-date as well as your specials, coupons, dealer programs, and incentives. This company has phenomenal customer support. Your concerns and issues will be addressed promptly and you will receive a response in less than an hour’s time.

Manning Automotive Marketing knows search engine marketing which is of the utmost importance to maximize your websites visibility and traffic. Your website content is customized specifically to your dealership, not a template used by other dealerships as well. Your website is continually updated with keywords to ensure search engine optimization.

In addition to the above services, Manning Automotive Marketing offers internet marketing solutions. One of the internet marketing solutions offered by this company is pay per click (PPC) advertising to drive visitors to your website. In addition to the creation of a website, this company promotes social media marking – marketing your dealership on Twitter, Facebook, YouTube, and offering RSS feeds. If you chose, you can implement live chat on your website so visitors to you site can ask questions which allows you to engage a potential customer which may convert into a lead and ultimately a sale. You can choose this company to create an email marketing campaign to promote your dealership to future and repeat customers. You can also choose to have this company ensure your website in included on local business listings both in print and online.

Though traditional advertising methods are dwindling in popularity but are still in play and can be used in conjunction with online advertising. Manning Automotive Marketing can also handle your traditional advertising methods of print, television, and on radio.