Economic Risk Consultancy In Hong Kong Case Study

Register to read the introduction… He says that Western companies think they can avoid political risk by spelling out every detail in a contract, but "in Asia, there is no shortcut for managing the relationship."88 In other words, the contract is in the relationship, not on the paper, and the way to ensure the reliability of the agreement is to nurture the relationship. Even a deal that has been implemented for some time may start to get watered down at a time when you cannot do anything about it. A Japanese-led consortium experienced this problem after it built an expressway in Bangkok. The Thai government later lowered the toll that it had agreed could be charged for use of the road. This is a subtle form of expropriation, since a company cannot simply pack up a road and leave.89 Neglect regarding contract law may leave a firm burdened with an agent who does not perform the expected functions, or a firm may be faced with laws that prevent management from laying off employees (often the case in Belgium, the Netherlands, Germany, Sweden, and elsewhere). Other Regulatory Issues Differences in laws and regulations from country to country are numerous and complex. These and other issues in the regulatory environment that concern multinational firms are briefly discussed here. Countries often impose protectionist policies, such as tariffs, quotas, and other trade restrictions, to give preference to their own products and industries. The Japanese have come under much …show more content…
On the strength of this growth, the government identified the information technology enabled services (ITES)/BPO sector as a key-contributor to economic growth, and offered them benefits like tax holidays, previously enjoyed by the software industry. In 1999, after the deregulation of the telecom industry, national long distance and international connectivity also became open to competition. India's success as an outsourcing destination was attributed to these reasons—an abundant, skilled, and English speaking manpower; high-end telecom and infrastructure; strong quality orientation within the industry; India's location on the map which allowed it to leverage on time zone differences; a positive policy environment that encouraged investment in the industry; and an attractive and friendly tax structure. NASSCOM1 surveys showed that Indian companies were more focused on maintaining quality and performance standards. For overseas companies, outsourcing to India offered significant improvements in quality and productivity on crucial parameters such as number of correct transactions, number of total transactions, total satisfaction factor, number of transactions/hour, and the average speed of answers. Indian companies adhered to metrics much better than the peers in some other countries. The Indian ITES/BPO industry also