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Answer 1

The new Australian immigration policy implies that refugees from war torn countries like Iran, Afghanistan who arrives by sea travelling is not allowed to become an immigrant in Australia. Australia hosts 0.3% of refugees worldwide1 but in recent days asylum has become a key election issue in Australia. Australia given visas to 71,819 people under skill based migration program in between 201120122. On the other hand, the number of unskilled people coming to seek immigration by boat has increased significantly in the recent days. Sending asylum seekers to Papua New Guinea is a very hardline decision taken by the Australian government. New immigration policy also implies that Australia wants refugees from war torn countries out of its border to ensure sociocultural stability as there has been a number of report about the unacceptable behavior by the asylum seekers in the detention centers. There is no sector in the modern Australian economy that has not benefited from foreign investment.3 But in reality, there are examples of discrimination towards foreign investors from specific countries like China. In Australia, there is unease about Chinese investment in strategic sectors such as mining and agriculture because Chinese investment in Australia is a relatively new phenomenon and the geographic and cultural distances between the two countries are wide.4

Answer 2
The GSK bribery scandal troubled the reputation of MNCs trading in China to a greater degree. While the spotlight remains firmly on GSK, Chinese authorities are also investigating other companies and individuals involved in the pharmaceutical sector to root out corruption. Shanghai police had arrested a British man, Peter Humphrey, who runs an international business risk advisory firm that has worked with drug companies including GSK.5 Last week, Chinese authorities also visited the Shanghai office of Belgian drug maker Union Chimique Belge to investigate that everything is in order. GSK Chief Executive Andrew Witty said that they are likely to see some impact to their performance in China as a result of the current investigation. In global perspective GSK reported a modest 2 percent rise in second-quarter group sales and confirmed that the bribery scandal would inevitably have an impact. This is a clear sign that GSKs worldwide goodwill and reputation is currently in threat because of the bribery scandal in China.
1 2 3 The coalitions discussion paper on foreign investment in Australia, accessed from on Foreign Investment in Aust Agricultural Land and Agribusiness.pdf 4 5

Answer 3
Bihar is lagging behind in the overall progress of India because there are a number of limitations exist in the place. Bihar is an underdeveloped state in India. Main reasons are inadequate investment in infrastructure, irrigation, and technology. In addition, there was a decline in the central governments current expenditure on rural development along with an overall decline in per capita government expenditure in rural areas.6 Central government expenditure on rural development schemes like agricultural programs, rural employment programs and anti-poverty schemes were cut.7 Caste dominated politics is another cause which is slowing down the growth of Bihar. Economically advanced states have attracted the majority share of FDI flows to India. The top six Indian states accounted for over 70% of FDI equity flows to India. Therefore, an increase in regional inequality has created which is forcing underdeveloped states to lag behind the overall growth. In India, the states with high per capita income, high industrial output, and situated at the coasts attracted high levels of FDI. Moreover, the regions that received low FDI flows were also the regions that attracted lower domestic investment.8 As a result, foreign investment in India is facing the trouble of unequal allocation.

Answer 4
China experienced strong capital outflows in June, a sharp reversal from early 2013. The main reasons include a change in the socio-economic trend. Wealthy Chinese citizens are buying properties in Cyprus, paying tuition for their children overseas and frequently moving cash secretly through a flourishing network of money-transfer agents.9 Chinese companies, for their part, are making big-ticket foreign acquisitions, buying up natural resources and letting foreign profits accumulate overseas. A Wall Street Journal analysis of that data suggests that in the 12 months through September, about $225 billion flowed out of China.10 This situation is very unusual because China officially maintains a closed capital account, meaning it restricts the ability of individuals and businesses to move money across its borders. Chinese individuals are not allowed to move more than $50,000 per year out of the country. Chinese companies can exchange Yuan for foreign currencies only for approved business purposes, such as paying for imports or approved foreign investments. Thus the incident of capital outflow is very much unnatural for a historically xenophobic country like China.

Mukharji, A., Bihar: What Went Wrong? And What Changed? (2012) accessed from newweb sites default files .pdf 7 Pal, P. and Ghosh, J., Inequality in India: A survey of recent trends (2007), accessed from esa desa papers wp .pdf 8 9 10

Answer 5
By the end of 2009, as a result of a combination of international and local factors the Greek economy faced its most-severe crisis. Paul Krugman stated that Greece was a special case it faced a fiscal crisis. But on the other hand, Greece left some important lessons for wider economic policy but Detroit just failed to realize them. aul Krugman wrote that, despite political and social dysfunction, the fact is that decline happens, meaning the decline of Detroit is actually just one of those things that happens now and then in an ever-changing economy.11 Detroit's bankruptcy filing is the largest municipal default in United States history. Like Greece, Detroit's pension liabilities were one of the many factors that caused the city to slip into economic distress. However, the situation is different in Detroit because once the slate is wiped clean, the city still doesn't have a "path forward" -- meaning the underlying problems are still not fixed. Detroit is, like Greece has become, a sub-unit of a larger entity and does not control monetary policy.

Answer 6
The forthcoming election in Germany, due to take place in late September, could shape the EU for years to come, and have serious implications for the state of the global economy. While it may seem over-thetop to place such significance on a single countrys election, such is the importance of Germany to the stability of Europes economies that politicians, economists and investors from around the world are nervously watching the build up to the autumn vote. The issue of Europe, and particularly the future of the single currency, is likely to dominate the election and this is something that all of the major parties are taking great care to emphasize that they wont be reckless with the countrys money as a way of supporting other struggling EU states. EU reform, social justice, banking and finance sectors are the key issues relating to the German election. Germany has come to play a central role in tackling these problems. Germany is now very clearly the paymaster-general for Europe. It is in charge of the speed with which the European project goes and to a certain extent it can determine the direction. European banking union will largely be determined by what the Germans want.12 This is likely to be even more the case in the next few years as the Eurozone attempts to move towards closer fiscal integration and banking union.

11 12

Answer 7
The Silk Route or Silk Road is a historical network of interlinking trade routes across the Afro-Eurasian continent that connected East, South, and Western Asia with the Mediterranean and European world, as well as parts of North and East Africa. The Silk Route includes routes through Syria, Turkey, Iran, Turkmenistan, Uzbekistan, Kyrgyzstan, Pakistan and China.13 The Silk Road or Silk Route was the ancient trade route linking China with the West. It carried silk and other goods between the great civilizations of Rome and China. The most global importance besides trade was probably the spread of ideas. Buddhism spread along the Silk Route. It originated in India and spread to China and other Asian lands. With the loss of Roman territory in the Middle East and the rise of Moslem power there the Silk Route became unsafe and less travelled. After 800 AD traffic decreased as traders began to travel by safer sea routes. This was especially true as the Ottoman Turkish Empire expanded to control the Middle East. During the 13th and 14th century the Mongols revived the Silk Road for a while. When Marco Polo travelled the Silk Road in the thirteenth century he became one of the last to witness it as a thriving and viable trade route. By the time of his return to Europe other more practical sea routes had been established. Today, however, with the opening up of China and the rest of Central Asia, the Silk Road has been brought back to life and the regions through which it passes are becoming in many ways more vibrant than ever.

Answer 9
Possible sale of ParknShop affects all in Hong Kong. No business touches their lives as much as a supermarket - which means that ParknShop chain, which holds an estimated 35% of the grocery market in Hong Kong, is a necessity for many of the citizens. The announcement that it may be up for sale is, therefore, a matter of deep interest and perhaps concern for its customers as well as 13,000 staff there, in Macau and on the mainland. For these reason, the possible event of sale is creating raves among Hong Kong people and rest of the world. Another thing is that this incident might lead to a monopoly business opportunity for the existing super market chains in Hong Kong like Dairy Farm Intl. and China Resources. If one of them manage to buy the ParknShop chain, that will become the monopolist giant in the super market industry of HK. I would like to invest in this venture as they already have 35% of the market share in the super market industry of HK. It is a very attractive place to invest as super market chains are a prosperous sector in HK. It has the potential to grow in the future with a little amount of exposure to risk.


1. 2. 3. The coalitions discussion paper on foreign investment in Australia, accessed from on Foreign Investment in Aust Agricultural Land and Agribusiness.pdf 4. 5. 6. Mukharji, A., Bihar: What Went Wrong? And What Changed? newweb sites default files .pdf . al, . and Ghosh, ., Ine uality in India A survey of recent trends esa desa papers wp .pdf 8. 9. 10. 11. 12. 13. accessed from

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