1. INTRODUCTION

1.1 HISTORY 1.2 HOME COUNTRY 1.3 HOST COUNTRIES

HOME COUNTRY Japan

idosha-Seizo Kabushiki-Kaisha ("Automobile Manufacturing Co., Ltd." in English) was established on December 26, 1933, taking over all the operations for manufacturing Datsuns from the automobile division of Tobata Casting Co., Ltd., and its company name was changed to Nissan Motor Co., Ltd. on June 1, 1934. The founder was Yoshisuke Aikawa, the brilliant leader of the Nissan combine. He had grand plans to mass-produce 10,000 - 15,000 units per year, and was about to putting his plan into practice.

The first small-size Datsun passenger car rolled off the assembly line at the Yokohama Plant in April 1935, and vehicle exports to Australia were also launched that same year. Datsun cars symbolized Japan's rapid advances in modern industrialization in those days, as evidenced by the contemporary slogan, "The Rising Sun as the flag and Datsun as the car of choice."

VTR: The production line for the Datsuns (small passenger sedans and pickup trucks) is shown at the Yokohama Plant in 1935. (819KB)

Nissan's history goes back to the Kwaishinsha Co., an automobile factory started by Masujiro Hashimoto in Tokyo's Azabu-Hiroo district in 1911. Hashimoto was a pioneer in Japan's automotive industry at its inception and throughout its initial years of struggle.

In 1914, a box-type small passenger car was completed based on his own design, and in the following year the car made its debut on the market under the name of Dat Car. It is a well- known story that the name Dat represents the first letters of the family names of Hashimoto's three principal backers: Kenjiro Den, Rokuro Aoyama and Meitaro Takeuchi.

Jitsuyo Jidosha Co., Ltd., another predecessor of Nissan, was established in Osaka in 1919 to manufacture Gorham-style three-wheeled vehicles, designed by the American engineer William R. Gorham. The company imported machine tools, components and materials from the U.S., and thus was said to be one of the most modern automobile factories.

Kwaishinsha Co. and Jitsuyo Jidohsa Co. merged in 1926 to form Dat Jidosha Seizo Co., which, in 1931, became affiliated with Tobata Casting, a company founded earlier by Aikawa. That would lead two years later to the establishment of Nissan Motor Co.

In 1936, Nissan purchased design plans and plant facilities from Graham-Paige Motors Corp. of the U.S. for the manufacture of passenger cars and trucks. As the signs of war grew stronger, however, production emphasis shifted from small-size Datsun passenger cars to military trucks. During the war, Nissan also manufactured engines for the army's planes and for motor torpedo boats.

VTR:The production line for Nissan heavy-duty trucks and buses is shown at the Yokohama Plant in 1937.(1.1MB)

Although the Yokohama Plant had escaped damage during the air raids, over one-half of the plant was requisitioned by the Occupation Forces for approximately ten years after the war. Nissan was also handicapped in the early postwar period by the fact that many leading auto dealerships, previously affiliated with the old Nissan network, switched to Toyota after the dissolution of Japan Motor Vehicle Distribution Co., Ltd., which had monopolized vehicle distribution during the war.

Nissan resumed production of Nissan trucks in 1945 and Datsun passenger cars in 1947. There was constant labor-management strife in those years, and Nissan suffered a prolonged 100-day strike in 1953. Serious reflection on that bitter experience gave birth to modern labor- management relations based on mutual trust.

In a move to recover from the technological vacuum of the wartime years, Nissan concluded a technical tie-up with Austin Motor Co., Ltd. of the U.K. in 1952, and rolled the first Austin off the line one year later. In 1958, one of the two Datsun 210 cars entered in the Australian Rally, one of the most grueling races in the world, and captured its class championship. Nissan was the first automaker in Japan to receive the annual Deming Prize for engineering excellence in 1960. And through this period, Nissan was steadily putting in place a strong organization to support the company's next stage of dramatic growth.

VTR: A triumphal parade is shown starting from Haneda, Tokyo, toward the Yoshiwara Plant in Shizuoka Prefecture in October 1958. (1.3MB)

The 1959 Bluebird and the 1960 Cedric captivated Japanese car buyers and quickened the pace of motorization in Japan. The Sunny that debuted in 1966 heralded the advent of the "my car" era in Japan, and was a major driving force behind the rapid growth of the small-car market.

In preparation for the liberalization of capital investment in Japan, Nissan brought on line two state-of-the-art manufacturing facilities, the Oppama Plant in 1962 and the Zama Plant in 1965. In 1966,Nissan merged with Prince Motor Co., Ltd., adding the renowned Skyline and Gloria models to its product lineup and incorporating an outstanding engineering staff that continued the excellent tradition of Nakajima and Tachikawa Aircraft Companies, previously manufacturers of distinguished aircraft engines.

The advance of motorization gave rise to increased traffic accidents and contributed to the problem of air pollution. Nissan developed its first Experimental Safety Vehicle (ESV) in 1971 and has adopted a vast array of safety technologies in its production vehicles over the years since then. To prevent air pollution, Japan enforced exhaust emission standards comparable to those mandated by the Muskie Bill (Clean Air Act) in the U.S. Although the standards appeared almost impossible to meet, they were successfully cleared through the use of the three-way catalytic converter system, the most promising technology available at that time. In that process, notable improvements were achieved in automotive electronics and materials engineering.

The two energy crises of the 1970s triggered a rapid increase in exports of small Japanese cars, known for their excellent fuel economy and quality. In fuel economy tests conducted by the U.S. Environmental Protection Agency in 1973, the Sunny finished first and subsequently gained enormous popularity in the U.S. market under the advertising slogan of "Datsun saves."

American automakers at that time were behind in developing small cars, and their slumping sales led to a succession of plant closings and large-scale layoffs. The resultant social issues heightened the mood of protectionism and prompted calls for import quotas on Japanese cars and for Japanese companies to open local production plants in the U.S.

Over the years, Nissan has lived up to its reputation for excellence in engineering by playing a pioneering role in many fields of advanced technology. With the aim of improving fuel economy, Nissan has developed a variety of weight-reducing materials, such as high-tensile steel sheet for body panels, and has also created sophisticated engine management systems for controlling combustion. In addition, Nissan has also been a forerunner in developing and using CAD/CAM systems and industrial robots.

Nissan began early on to develop overseas manufacturing operations, starting with the initiation of knockdown production at Yulon Motor Co., Ltd. in Taiwan in 1959 and the establishment of Nissan Mexicana, S.A. de C.V. in 1961. Then, in the 1980s, Nissan established two strategic manufacturing bases overseas; Nissan Motor Manufacturing Corp., U.S.A. in 1980, and Nissan Motor Manufacturing (UK) Limited in 1984. Today, Nissan operates manufacturing and assembly plants in 17 countries around the world.

In addition to manufacturing, Nissan has also been proceeding with a program to localize R&D operations, including vehicle design and engineering, as well as business management functions at the highest level. This globalization program has now advanced to the stage where decision- making has been localized through the establishment of regional headquarters in North America and Europe. Nissan North America Inc. and Nissan Europe N.V. oversee the entire scope of Nissan's local operations in their respective regions, including product development, manufacturing, procurement, fund-raising and mutual complementation of parts between companies.

Looking at the domestic market, Nissan opened the Kyushu Plant in 1975, adding the new plant with the most advanced automation technology in 1992. Furthermore, in 1994 the Iwaki Plant became operational to manufacture new V6 engines. In the field of marketing, Nissan introduced the Be-1 in 1987 and the Cima in 1988, thereby creating new segments with a "Pike" car, or niche car, and an upper grade personal sedan.

VTR:The automated assembly line for engine components is shown at the Iwaki Plant in 1993. (1.2MB)

Nissan has been working vigorously to address global environmental issues that have caused increasing concern in recent years. The company's environmental efforts include the development of clean power sources for vehicles and wide-ranging activities to promote the recycling of natural resources. Since 1997, Nissan has released one new model after another fitted with fuel-efficient direct-injection gasoline engines and direct-injection diesel engines. Nissan has also been actively expanding application of the belt-driven HYPER CVT continuously variable transmission that delivers improved fuel economy. In November 1999, Nissan adopted on the Cedric/Gloria sedans, marking the world's first application of a CVT to rear-wheel-drive production models powered by a large-displacement engine. Moreover, Nissan released and the two-seater in the early part of 2000.

On March 27, 1999, Nissan and France's Renault SA signed an agreement concerning a comprehensive global alliance aimed at achieving profitable growth for both companies.

Nissan announced on October 18, 1999 the Nissan Revival Plan (NRP), a comprehensive restructuring plan designed to achieve lasting profitable growth on a global level. It accomplished the objectives the NRP by the end of fiscal year 2001, one year ahead of schedule, and posted all-time-high record operating profits. Under the NRP, steadfast efforts were made to enhance product appeal and competitiveness besides cutting purchasing costs and indebtedness. As a result, the all-new Altima won the North American Car of the Year Award in January 2002.

Since this past April, the company has been pushing ahead with "NISSAN 180," a new business plan aimed at achieving additional unit sales of one million vehicles globally in 3 years, among other objectives

Population 127,368,088 (July 2011 est.) Age structure 0-14years: 13.1% (male 8,521,571/female 8,076,173) 15-64years: 64% (male 40,815,840/female 40,128,235) 65 years and over: 22.9% (male 12,275,829/female 16,658,016) (2011 est.) Median age total: 44.8 years male: 43.2 years female: 46.7 years (2011 est.) Population growth rate -0.077% (2011 est.) Birth rate 8.39 births/1,000 population (2011 est.) Death rate 9.15 deaths/1,000 population (July 2011 est.) Net migration rate 0 migrant(s)/1,000 population (2011 est.) Urbanization urban population: 67% of total population (2010) rate of urbanization: 0.2% annual rate of change (2010-15 est.) Currency of japan

The national currency of japan is yen. The Japanese yen is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. This currency is stable and strong, 1 US dollar is equal to 93.39 Japanese Yen. By 1971 the yen had become undervalued. Japanese exports were costing too little in international markets, and imports from abroad were costing the Japanese too much. This undervaluation was reflected in the current account balance, which had risen from the deficits of the early 1960s to a then- large surplus of US$5.8 billion in 1971. The belief that the yen, and several other major currencies, were undervalued motivated the United States' actions in 1971. During the first half of the 1980s, the yen failed to rise in value even though current account surpluses returned and grew quickly. From ¥221 in 1981, the average value of the yen actually dropped to ¥239 in 1985. The rise in the current account surplus generated stronger demand for yen in foreign-exchange markets, but this trade-related demand for yen was offset by other factors. A wide differential in interest rates, with United States interest rates much higher than those in Japan, and the continuing moves to deregulate the international flow of capital, led to a large net outflow of capital from Japan. This capital flow increased the supply of yen in foreign-exchange markets, as Japanese investors changed their yen for other currencies (mainly dollars) to invest overseas. This kept the yen weak relative to the dollar and fostered the rapid rise in the Japanese trade surplus that took place in the 1980s.

Airline in Japan

The predecessor of our current company, Japan Airlines Co., Ltd. was founded on August 1, 1951 with 100 million yen in capital, and began scheduled air transportation on domestic routes independently from October of the following year. Based on the Japan Airlines Act (Act No. 154 of 1953), as of October 1, 1953, the current company was established with 1 billion yen in government funding and 1 billion yen in sales, for a total of 2 billion yen in capital.

In this way, the established company inherited all of the rights and obligations of the previous company, and became licensed to become the nation's only scheduled international air carrier, along with its domestic routes. Japan Air System change names to Japan Airlines International Co. Ltd. and Japan Airlines Domestic Co.Ltd. respectively. In order to target international passenger and cargo operations, Japan Airlines Domestic is restructured to handle domestic passenger operations. Economic system

The Japanese economy is one of the third largest in the world. Only the USA and China have a higher GNP. The Japanese currency is the Yen. Exports: Japan's main export goods are cars, electronic devices and computers. Most important trade partners are China and the USA, followed by South Korea, Taiwan, Hong Kong, Singapore, Thailand and Germany. Imports: Japan has a surplus in its export/import balance. The most important import goods are raw materials such as oil, foodstuffs and wood. Major supplier is China, followed by the USA, Australia, Saudia Arabia, South Korea, Indonesia and the United Arab Emirates. Industries: Manufacturing, construction, distribution, real estate, services, and communication are Japan's major industries today. Agriculture makes up only about two percent of the GNP. Most important agricultural product isrice. Resources of raw materials are very limited and the mining industry rather small.

Exports $788 billion (2011 est.)

Export goods motor vehicles 13.6%; semiconductors 6.2%; iron and steel products 5.5%; auto parts 4.6%; plastic materials 3.5%; power generating machinery 3.5%

Mainexport partners China 19.7%, US 15.5%, South Korea 8%, Hong Kong 5.2%, Thailand 4.6% (2011)

Imports $808.4 billion (2011 est.)

Import goods petroleum 15.5%; liquid natural gas 5.7%; clothing 3.9%; semiconductors 3.5%; coal 3.5%; audio and visual apparatus 2.7%

Mainimport partners China 21.5%, US 8.9%, Australia 6.6%, Saudi Arabia 5.9%, UAE 5%, South Korea 4.7% (2011)

The political system The Japanese legislature is called the Kokkai or Diet and is a bicameral structure. Generally decisions are made on a majority vote, but a two-thirds majority is required in special cases. The lower house in the Japanese political system is the Shugi-in or House of Representatives. It has 480 seats and members serve a four-year term, although only once since the war has a full term been served (the average is two and a half years). Of the 480 seats, 300 are elected from single-member constituencies and the other 180 are elected from 11 multi-member constituencies by a system of proportional representation. The House of Representatives has preeminence over the House of Councillors and can pass a vote of no confidence in the Cabinet as a whole. The House of Representatives can be dissolved by the Prime Minister or by a Cabinet no confidence vote. The next election is due in December 2016. The upper house in the Japanese political system is the Sangi-in or House of Councillors. It has 242 seats and members serve a six-year term. Only half of its membership is re-elected at each election every three years, using a parallel voting system. Of the 121 members subject to election each time, 73 are elected from the 47 prefectural districts by the single transferable vote method and 48 are elected from a nationwide list by proportional representation. This element of proportional representation was introduced in 1982 in an effort to combat the effect of huge sums of money being spent on election campaigns. The House of Councillors cannot be dissolved. The next election is due in July 2013. If the two houses disagree on matters of the budget, treaties, or designation of the Prime Minister, the House of Representatives can insist on its decision. In all other decisions (such as the passage of a Bill), the House of Representatives can override a vote of the House of Councillors only by a two-thirds majority of members present.

HOST COUNTRY China

Introducing global models; growing a local brand in China Nissan has been operating in China since the introduction of the Cedric there in 1973. Through the last 40 years, Nissan has continued to grow and deliver mobility solutions that improve the lives of people. Nissan began working with more local partners starting in the 1990s, accelerating the company's growth. Zhengzhou Nissan Automobile Co., Ltd. (ZNA) was established in 1993 and began building a number of key vehicles, becoming an important manufacturing base for Nissan's light commercial vehicles.

In 2003, NML and Dongfeng Motor Corporation founded Dongfeng Motor Co., Ltd. (DFL), China's largest automobile joint venture, under which Dongfeng Nissan Passenger Vehicle Company (DFL-PV) was also established to operate the passenger vehicle business. In 2004, NCIC was established as Nissan's wholly-owned subsidiary in China to manage Nissan's investment in China together with NML.

In 2007, Infiniti, the global luxury brand, was launched in China. Currently, not only has a deeper Infiniti lineup been introduced, but preparation to localize Infiniti production is also underway.

Currently, the Chinese market accounts for one quarter of Nissan's sales worldwide. In 2012, Nissan sold 1.18 million vehicles in China, including imported cars, passenger vehicles and light commercial vehicles. For 2013, Nissan expects to sell 1.25 million units.

Timeline of Nissan's Development in China:  January 1973 The first Nissan Cedric arrives in China  March 1993 Zhengzhou Nissan Automobile Co., Ltd. is established  June 1994 Nissan Motor (China) Co., Ltd. is created to focus on the import car business  June 2003 Nissan and Dongfeng Motor Corporation jointly establish Dongfeng Motor Co., Ltd. Dongfeng Nissan Passenger Vehicle Company is established by DFL to manage the passenger car business for the Nissan brand  February 2004 Nissan (China) Investment Co. Ltd., Nissan's wholly owned subsidiary in China, is founded in Beijing as Nissan's regional headquarters in China  May 2005 Nissan (China) Investment Co., Ltd. Guangzhou branch opens  June 2005 Nissan (China) Investment Co., Ltd. Shanghai branch is established  January 2006 Nissan (China) Investment Co., Ltd. starts parts exports to overseas Nissan production bases  July 2007 Infiniti begins sales in China  October 2007 Dongfeng Nissan Auto Finance Co. Ltd. is founded in Shanghai  September 2010 Venucia brand launches  March 2011 Nissan Design China officially starts operations in Beijing  April 2012 Nissan announces plans to produce Infiniti models in China starting in 2014  May 2012 Infiniti moves global headquarters to Hong Kong  June 2012 DFL announces plans to build an all-new manufacturing facility in Dalian in 2015

Population

The total population in China until 2013, with forecasts to 2019. In 2012, total population in China amounted to about 1.35 billion.

Age structure:

0-14 years: 17.2% (male 124,773,577/female 107,286,198) 15-24 years: 15.4% (male 109,922,192/female 98,325,568) 25-54 years: 46.7% (male 322,161,347/female 308,101,780) 55-64 years: 11.3% (male 77,374,476/female 75,289,733) 65 years and over: 9.4% (male 60,597,243/female 65,753,724) (2013 est.)

Definition: This entry provides the distribution of the population according to age. Information is included by sex and age group (0-14 years, 15-64 years, 65 years and over). The age structure of a population affects a nation's key socioeconomic issues. Countries with young populations (high percentage under age 15) need to invest more in schools, while countries with older populations (high percentage ages 65 and over) need to invest more in the health sector. The age structure can also be used to help predict potential political issues. For example, the rapid growth of a young adult population unable to find employment can lead to unrest.

Population Pyramid

A population pyramid illustrates the age and sex structure of a country's population and may provide insights about political and social stability, as well as economic development. The population is distributed along the horizontal axis, with males shown on the left and females on the right. The male and female populations are broken down into 5-year age groups represented as horizontal bars along the vertical axis, with the youngest age groups at the bottom and the oldest at the top. The shape of the population pyramid gradually evolves over time based on fertility, mortality, and international migration trends.

Median age

Country Total Male Female Year China 35.2 34.5 35.8 2010 est

Population growth rate: 0.46% (2013 est.)

Birth & death rate:

NaturalGrowth Rate by Region (2004) Region Total Population Birth Rate Death Rate Natural Growth Rate

(year-end)

(10 000 persons) (‰) (‰) (‰)

National Total 129988 12.29 6.42 5.87

Beijing 1493 6.10 5.40 0.70

Tianjin 1024 7.31 5.97 1.34

Hebei 6809 11.98 6.19 5.79

Shanxi 3335 12.36 6.11 6.25

Inner Mongolia 2384 9.53 5.98 3.55

Liaoning 4217 6.51 5.60 0.91 Jilin 2709 7.39 5.63 1.76

Heilongjiang 3817 7.27 5.45 1.82

Shanghai 1742 6.00 6.00 0.00

Jiangsu 7433 9.45 7.20 2.25

Zhejiang 4720 10.71 5.76 4.95

Anhui 6461 11.62 5.50 6.12

Fujian 3511 11.58 5.62 5.96

Jiangxi 4284 13.61 5.99 7.62

Shandong 9180 12.50 6.49 6.01

Henan 9717 11.67 6.47 5.20

Hubei 6016 8.43 6.03 2.40

Hunan 6698 11.89 6.80 5.09

Guangdong 8304 13.13 5.12 8.01

Guangxi 4889 13.32 6.12 7.20

Hainan 818 14.77 5.79 8.98

Chongqing 3122 9.45 6.60 2.85

Sichuan 8725 9.05 6.27 2.78

Guizhou 3904 15.08 6.35 8.73

Yunnan 4415 15.60 6.60 9.00

Tibet 274 17.40 6.20 11.20

Shaanxi 3705 10.59 6.33 4.26

Gansu 2619 12.43 6.52 5.91

Qinghai 539 16.32 6.45 9.87

Ningxia 588 15.97 4.79 11.18

Xinjiang 1963 16.00 5.09 10.91

Net migration rate:

-0.33 migrant(s)/1,000 population (2013 est.)

Urbanization :

Currency :

Chinese Yuan Renminbi History

Early Currency in China With a history of over 3000 years, Chinese currency existed in both Ancient and Imperial China. In 1914, the Silver Dollar was established as the official currency of the Republic of China, with copper, fen, and nickel coins being added in the 1930s. During this time silver appreciated in value, and China could no longer retain the silver standard. In 1935, a new currency known as Fǎbì, was issued.

Introduction of the Gold Yuan and Chinese Yuan Renminbi The Gold Yuan replaced the Fǎbì in 1948 at a rate of 1 Gold Yuan to 3 million Yuan Fǎbì. That same year, the Yuan Renminbi (often called RMB) was introduced as a way to help stabilize the Communist held areas of mainland China. In 1955, a re-evaluation took place and a new Yuan Renminbi was introduced at a rate of 1 new Yuan to 10,000 old Yuan.

The Renminbi in Foreign Exchange During the command economy, the Chinese Yuan Renminbi was set to unrealistic exchange values and as a result, severe currency guidelines were put in place. When China's economy opened in 1978, the Yuan Renminbi was only used domestically and foreigners used exchange certificates; this led to a powerful black market. From 1997 to 2005, the Chinese government pegged the Chinese Yuan Renminbi to the US Dollar at approximately 8.3 CNY to 1 USD. In 2005, a flexible mechanism of exchange rates was phased in, with the RMB being re-evaluated to 8.1 Renminbi per US dollar. The Chinese government launched a pilot program in 2009, allowing some businesses in Guangdong and Shanghai to execute business and trade transactions with counterparties in Hong Kong, Macau, and select nations. The program has since expanded to all areas of China and all international counterparties. China has also made agreements with Australia, Japan, Thailand, Russia, and Vietnam to allow for direct currency trade, instead of converting to the US Dollar. As a managed float, the Renminbi's value is determined by a basket of foreign currencies.

Example of Malaysian Ringgit to Yuan : 10.00 MYR = 19.4733 CNY

Economic system :

China‘s economic freedom score is 51.9, making its economy the 136th freest in the 2013 Index. Its overall score is 0.7 point higher than last year, reflecting modest improvements in four of the 10 economic freedoms. China is ranked 29th out of 41 countries in the Asia– Pacific region, and its overall score continues to be lower than the global and regional averages.

China‘s economy remains ―mostly unfree.‖ The legal and regulatory system is vulnerable to political influence and Communist Party directives. The party‘s ultimate authority throughout the economic system undermines the rule of law and respect for contracts. Corruption is widespread, and cronyism is institutionalized and pervasive. Although leaders occasionally embrace market principles that could enhance efficiency and ensure long-term competitiveness, genuinely liberalizing economic reform has largely stalled.

The absence of political will to undertake more fundamental restructuring of the economy has led to continued overreliance on public investment. Productivity growth is undermined by state regulation and ownership of many enterprises, and the financial sector is primarily an instrument of state control through subsidies and credit manipulation. In the face of the economic slowdown, the government has tried expansionary fiscal and monetary interventions to little effect.

Background :

China‘s Communist Party maintains tight control of political expression, speech, religion, and assembly. There is hope for economic reform from the incoming government of Communist Party General Secretary Xi Jinping, but political reform is unlikely. Environmental degradation and fiscal pressure driven by low birth rates that are the legacy of China‘s ―one- child policy‖ fuel social unrest. China liberalized parts of its economy in the late 1970s and early 1980s and has achieved impressive GDP growth through greater integration into the world trading and financial systems. It formally joined the World Trade Organization in 2001, and the size of its industrial and manufacturing sector now rivals that of the United States.

Rules of law :

China‘s weak judicial system is highly vulnerable to political influence and corruption. All land is state-owned. Individuals and firms may own and transfer long-term leases that are subject to many restrictions. Intellectual property rights are not protected effectively, and infringement of copyrights, patents, and trademarks is common. Various forms of corruption severely affect banking, finance, government procurement, and construction.

Limited government :

The top income tax rate is 45 percent, and the top corporate tax rate is 25 percent. Other taxes include a value-added tax (VAT) and a real estate tax. The overall tax burden is equal to 18.2 percent of total domestic income. Government spending amounts to 23.6 percent of GDP. Public debt has decreased, but large amounts of debt are held in off-budget obligations. Slower growth may undermine fiscal policy.

Regulatory efficiency :

The overall regulatory framework remains complex, arbitrary, and uneven. Completing licensing requirements costs over three times the level of average annual income. The labor regime remains repressive. The state imposes price controls on a wide range of energy, raw materials, and other basic goods. Along with several interest rate cuts, deceleration in consumer price inflation in 2012 gave the state room for additional stimulus measures.

Open market :

The trade-weighted average tariff rate is 4 percent, and layers of non-tariff barriers add to the cost of trade. The investment regime is non-transparent and inefficient. The state continues its tight control of the financial system as its primary means for managing the rest of the economy. The government owns all large financial institutions, which lend according to state priorities and directives and favor large state enterprises.

China’s Import and Export Indicators and Statistics at a Glance (2012)

Total value of exports: US$2.05 trillion

Sign-up for our Primary exports - commodities:electrical and other machinery, including data processing equipment, apparel, radio telephone handsets, textiles, integrated circuits

Primary exports partners: US (17.2 of total exports), Hong Kong (15.8 percent), Japan (7.4 percent), South Korea (4.3 percent), Germany (3.4 percent)

Total value of imports: US$1.817 trillion

Primary imports - commodities: electrical and other machinery, oil and mineral fuels, optical and medical equipment, metal ores, motor vehicles Primary imports partners: Japan (9.8 percent of total imports), South Korea (9.3 percent), US (7.3 percent), Germany (5.1 percent), Australia (4.6 percent)

Industries :

Since 1949 when the People's Republic of China was established, and especially since 1978, China's transformation from a traditional agricultural society to a modern industrial society has been greatly accelerated by a rapid industrial restructuring. China's industrial structure developed according to the objective of industrialization, which aimed at the proportion of agriculture being declined ceaselessly, the proportion of the industrial sector being ascended continually, and the proportion of the services sector being ascended greatly. The industrial goods produced in China all range from capital goods to consumption goods currently, though certain consumer products remain in short supply.

China's factory outputs extend from textiles to railway locomotives, jet planes, and computers. China is the largest producer of inexpensive cotton textiles in the world and exports large quantities of textiles and garments. Food processing is very important, and many agricultural goods are exported. China is one of the leaders of cement production in the world. Iron-and steel-making has declined recently, the production having dropped somewhat to about 44 million tons annually. Other industrial products include television sets, bicycles, cars, trucks, and washing machines. The product quality and production technology lag behind those made in Japan, the United States, and the European countries. The processing and manufacture of chemicals, including fertilizers, petroleum products, and pharmaceuticals, is another large and expanding segment of Chinese industry.

China has become an industrialized country to some extent. The pillar industries, such as the auto industry and the housing industry, in the interim of industrialization have developed by leaps and bounds. Iron and steel manufacturing are also major industries in China. The most important export products are machinery and electric equipment; while the most important import products are raw materials. In recent years, due to economic extro-version, China's industry has competed internationally, and as a result, the country's industrial development is increasingly influenced by international economic environments. On one hand, exporting becomes more difficult and export prices keep declining; on the other hand, market share of foreign products and foreign-invested enterprises' products keeps growing. The above 2 factors increase the difficulties for the country's domestic industry in terms of producing and selling; the state-owned enterprises are impacted particularly. In fact, textile and other light industries have slowed their growth since 1985. Since 1989, the production capability of durable consumption goods has become idle; after the mid-1990s, bottleneck sectors including steel, oil, and raw material began to fall into market saturation. Large-scale IC chips account for only 40 percent of all IC chips made in China; 80 percent of the Chinese telecom equipment and instrument market is taken by foreign enterprises.

Generally, China's industrial system has a low level of technology; the high-tech industries are simply in their starting periods. The technologies of major industrial sectors are poor and lack self-equipment capability. Average life cycle for more than 2000 kinds of Chinese leading products is 10.5 years, 3.5 times that of the same products in America. And fewer Chinese work in the information sector than do U.S. citizens, for example. About 45 percent of the American workforce is involved in information technology, but only 10 percent of the Chinese workforce is. Chinese technological level of industries needs to be raised, particularly high-tech oriented industries, so that the country's industries can be advanced toward a knowledge economy in the 21st century.

Political system :

People’s Congress System The people‘s congress system is China‘s fundamental political system. The Constitution of the PRC provides that state power belongs to the people. The NPC and local people‘s congresses at all levels are organs representing the people in exercising state power. The First NPC in 1954 marked the establishment of the system. The people‘s congresses have four main functions and powers: legislation, supervision, appointment and removal of officials, and making decisions on major issues. These functions are a major reflection of the way the Chinese people exercise their power as masters of the state through the people‘s congress system. To persist, improve and develop the system is an important part of the building of political democracy in China. Since the Third Session of the 11th Plenary Session of the Communist Party of China (CPC) in 1978, the people‘s congress system has seen constant improvement and development. The past 50 years have proved that the people‘s congress system accords with the national conditions of China. It not only ensures that people exercise state power in a concerted way and gives full play to their enthusiasm and initiative as masters of the state, but also creates favorable conditions for state organs to share the work and help one another in organizing the socialist construction. Multi-Party Cooperation and Political Consultative System Multi-party cooperation and political consultation under the leadership of the CPC constitute the basic party system in China. It was jointly created and developed by the CPC and other democratic parties in the long-standing process of China‘s revolution, construction and reform. The system, which was conceived in the democratic revolution period and was established after the founding of the PRC in 1949, has made great headway after the Third Plenary Session of the 11th CPC Central Committee held in 1978. Multi-Party Cooperation China‘s party system is distinct from the multi-party or two-party systems in Western capitalist countries, as well as the one-party system in a few countries. Its evident features are as follows: The CPC acts as the ruling party while, under the leadership of the CPC, other parties participate in the discussion and management of state affairs, in cooperation with the CPC. Cooperative relations between the CPC and other parties are based on the principle of ―long-term coexistence and mutual supervision, treating each other with full sincerity and sharing weal or woe.‖ The Constitution of the PRC is the basic code of conduct for the CPC and the other parties. Within the scope of constitutional rights and obligations, these parties enjoy political freedom, organizational independence and equal legal status. The Constitution provides that the system of multi-party cooperation and political consultation under the leadership of the CPC will long exist and develop.

The multi-party cooperation in China is mainly carried out in six forms. First, political consultation between the CPC and other parties. Before the CPC Central Committee makes major decisions, it usually sponsors forums and symposiums where CPC leaders can introduce relevant situations to leaders of the other parties and representatives of personages without party affiliation, as well as discuss state affairs with them and listen to their opinions. Second, giving play to the role of representatives of democratic parties and personages without party affiliation in people‘s congresses at all levels. Members of these parties and personages without party affiliation now take an appropriate percentage of seats in the NPC and its Standing Committee and special committees. Deputies to people‘s congresses at different levels, who are elected from people outside the CPC, total 140,000. Through taking part in activities of people‘s congresses, they convey people‘s opinions, participate in formulation of major decisions and legislations, and supervise the government. Third, recommending qualified members of democratic parties and non-party personnel to assume leading posts in government and judicial organs at all levels. At present, more than 8,000 people outside the CPC hold leading posts at and above the county magistrate-rank in governments and law-enforcement organs at all levels. Invested with real power, they and their colleagues with CPC membership cooperate with each other closely and frankly, making important contribution at their respective posts. Fourth, strengthening the participation of democratic parties in the work of the CPPCC. These parties participate in the CPPCC in the name of political groups, and, on this basis, air opinions, raise proposals and participate in discussion and administration of state affairs. Members of these parties and non-party people are the majority in members of CPPCC committees at various levels. Fifth, encouraging non-CPC personnel to scrutinize the CPC and the government through multiple channels and in multiple forms. A complaint reporting system has been established within all democratic parties and the All-China Federation of Industry and Commerce. In addition, a lot of people outside the CPC have been invited to serve as supervisors, inspectors, auditors, education inspectors, taxation inspectors and land and resources inspectors, or to participate in the investigation of major crimes and taxation inspections. Sixth, supporting democratic parties to participate in practices of reform, opening up and socialist modernization. The political advantages of the system of multi-party cooperation and political consultation under the leadership of the CPC lie in the fact that it can both achieve wide democratic participation, pool the wisdom of democratic parties, mass organizations and people of all walks of life and promote the scientific and democratic decision-making of the party in power and governments at all levels, and realize centralization and unity and draw up unified plans with due consideration given to the interests of different sections of the people. Moreover, it can avoid both the problem of insufficient supervision common under one-party rule, and political chaos and a lack of stability and unity that may be caused by disputes and strife of several parties.

In February 2005, the CPC promulgated the Opinions of the CPC Central Committee on Further Strengthening the Building of the System of Multi-Party Cooperation and Political Consultation Under the Leadership of the CPC, which, on the basis of summing up historical experience and successful operations in multi-party cooperation and political consultation, further clarifies the principles, contents, ways and procedures of the system of multi-party cooperation and political consultation, and points the direction for improving the socialist political party system with Chinese characteristics. The Chinese People’s Political Consultative Conference The First Session of the Chinese People‘s Political Consultative Conference (CPPCC) was held in Beiping (now Beijing) on September 21-30, 1949. From then on, 11 CPPCC national committees have been installed. The CPPCC is an organization of the patriotic united front of the Chinese people. It is also an important organ of multi-party cooperation and political consultation under the leadership of the CPC, and an important instrument of democracy in the nation‘s political life. According to its current statute, the CPPCC National Committee is composed of members of the CPC and other parties, personages without party affiliation, representatives of people‘s organizations, ethnic minorities and all walks of life, representatives of compatriots of the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan, as well as of returned overseas Chinese and other specially invited people, who are divided into several circles. The CPPCC establishes a national committee, a standing committee and nine special committees at the central level and local committees in various localities. The nine central-level special committees include the Committee for Handling Proposals, the Economic Affairs Committee, the Population, Resources and Environment Committee, the Education, Science, Culture, Health and Sports Committee, the Social and Legal Affairs Committee, the Ethnic and Religious Affairs Committee, the Cultural and Historical Data Committee, the Committee for Liaison with Hong Kong, Macao, Taiwan and Overseas Chinese and the Foreign Affairs Committee. The CPPCC National Committee, which has one chairperson, a number of vice chairpersons and one secretary general, is elected for a term of five years and holds a plenary session each year.

The CPPCC exercises the functions of political consultation, democratic supervision, and participating in the administration and discussion of state affairs. The CPC and governments at all levels consult the CPPCC on fundamental policies and important issues in political, economic, cultural and social affairs before a decision is adopted and during the implementation of such decisions, so as to heed and canvass a wide range of opinions. This is a key link for the CPC and the governments at all levels to ensure that decision-making is scientific and democratic. Renmin Zhengxie Bao (The CPPCC News), created in 1983, is the organ of the CPPCC National Committee. System of Ethnic Regional Autonomy The system of ethnic regional autonomy is a basic political system of China. Ethnic autonomous areas in China are divided into three levels, namely, autonomous regions, autonomous prefectures and autonomous counties. Now, China has established 155 ethnic autonomous areas, including five autonomous regions, 30 autonomous prefectures and 120 autonomous counties (banners). Of the 55 ethnic minorities, 44 have their own autonomous areas. The population of ethnic minorities implementing regional autonomy accounts for 71 percent of the total population of ethnic minorities. Meanwhile, China has established 1,173 autonomous townships in places equivalent to townships where ethnic minorities live in compact communities, as a supplement to autonomous areas. Of the 11 ethnic minorities for which regional autonomy is not implemented because their populations and habitats are relatively small, nine have set up autonomous townships. In accordance with the Constitution and the Law on Ethnic Regional Autonomy, the right of self-government of ethnic autonomous areas is fully guaranteed. They independently manage internal affairs of their ethnic groups in their autonomous areas, have the power to formulate regulations on the exercise of autonomy and separate regulations, and are allowed to use and develop their own spoken and written languages. The state respects and protects the freedom of religious belief of ethnic minorities. Regional autonomous areas also have the right to preserve or reform their own folk ways and customs, independently arrange, manage and develop the economic construction of the locality concerned, independently manage local revenues, and independently develop undertakings of education, science and technology, culture and sports. The Constitution and the Law on Ethnic Regional Autonomy both stipulate that the state is legally obliged to assist ethnic autonomous areas in speeding up their economic and social development. The Central Government has consistently increased financial input and support to ethnic autonomous areas, attached importance to ecological and environmental protection in these areas, adopted special measures to help these areas develop education, science and technology, strengthened assistance to impoverished habitats of ethnic minorities, expanded appropriations in social undertakings in these areas, helped them open wider to the outside world, paired them up with more developed areas for support, and attended to special needs of ethnic minorities in their life and work.

After more than five decades of unremitting efforts, the conditions of subsistence in China‘s ethnic autonomous regions and local people‘s living standards have achieved remarkable improvement, amid rapidly developing economic and social undertakings in these areas. People living in ethnic autonomous areas and in other parts of the country are sharing fruits of the national modernization process. The successful practice of the system of ethnic regional autonomy proves it is a correct solution to China‘s ethnic issue, which conforms to national conditions and common interests of all ethnic groups. One Country, Two Systems The key points of the ―one country, two systems‖ policy are that within the PRC, the main body (mainland) will continue with its socialist system, while Hong Kong, Macao and Taiwan will maintain the capitalist system. The aim is to achieve peaceful reunification of the motherland and maintain stability and prosperity in Hong Kong, Macao and Taiwan. One country is the premise and basis of the two systems, and recognition of the principle means recognition of the premise of ―one country‖ that refers to the PRC, and that the main body of the nation will maintain the socialist system with Chinese characteristics. The policy is an important component of the socialism with Chinese characteristics. Taking into account the special status of Taiwan, the Chinese Government has pursued to solve the Taiwan issue with the basic principle of ―peaceful reunification and one country, two systems.‖ That is, after the reunification of both sides across the Taiwan Straits, Taiwan‘s current socio-economic system, its way of life, as well as economic and cultural ties with foreign countries will remain unchanged. As a special administrative region, Taiwan will enjoy a high degree of autonomy, including administrative and legislative powers, an independent judiciary and the power of final adjudication on the island. It will run its own party, political, military, economic and financial affairs, may conclude commercial and cultural agreements with foreign countries and enjoy certain rights in foreign affairs. It may retain its armed forces and the mainland will not dispatch troops or administrative personnel to the island. On the other hand, representatives of the government of the special administrative region and those from different circles of Taiwan may be appointed to senior posts in the Central Government and participate in the running of national affairs. The development ofHong Kong and Macao since their return to the mainland testifies to the fact that the policy of ―one country, two systems‖ is correct and has strong vitality. Hong Kong Special Administrative Region On July 1, 1997, Hong Kong returned to the mainland after 150 years of British colonial rule. It entered into a new historical era of ―one country, two systems‖ and ―Hong Kong ruled by the Hong Kong people with a high degree of autonomy.‖ In the nine years since the handover, the Central Government has supported the chief executive and the government of the Hong Kong Special Administrative Region to administer the region in accordance with the Basic Law, Hong Kong‘s mini-constitution, and promoted its stability and prosperity. Hong Kong continues to maintain the characteristics of a free port and its status as a center of international trade, finance and shipping. The development in Hong Kong since its return testifies to the correctness of the policy of ―one country, two systems,‖ shows that the Basic Law conforms to the reality of the region and is an important guarantee of its prosperity and stability, and that the people of Hong Kong are fully capable of ruling Hong Kong well.

Macao Special Administrative Region Macao, a part of the Chinese territory since ancient times, fell into the hands of Portuguese colonialists in the late 19th century. It returned to the motherland on December 20, 1999. Since its return, the Central Government has supported the chief executive and the local government to administer Macao in accordance with the region‘s Basic Law. The efforts provide strong guarantees for Macao‘s prosperity and stability.

Taiwan Province Taiwan has been part of Chinese territory since ancient times. In 1945, when the Chinese won the War of Resistance Against Japanese Aggression (1937-45), compatriots across the Taiwan Straits shared the joy of Taiwan‘s return to the motherland. In 1949, when the People‘s Republic of China was founded, the world saw a China enjoying complete sovereignty and towering in the East once again. Regretfully, Taiwan could not be reunified with the mainland because of the ongoing civil war and the armed intervention of foreign countries. The Chinese people had to continue their struggle for reunification across the Taiwan Straits. At the end of the 20th century, China made great progress in its reform and opening-up drive. Hong Kong and Macao successively returned to the motherland, ending the history of Western powers occupying Chinese territory. Chinese compatriots at home and abroad have since become even more concerned about the early settlement of the Taiwan issue and the complete reunification of the motherland. The mainland‘s stance on developing cross-strait relations is consistent, firm and clear. This stance is to unswervingly adhere to the one-China principle; never give up efforts for peaceful reunification, nor change the principle of pinning hope on the Taiwan people; and never compromise on opposition to secessionist activities. Deliberate provocation by the Taiwan leader will not change the solemn commitment to utmost efforts to do everything that is conducive to the interests of Taiwan compatriots, cross-strait exchanges, peace across the Taiwan Straits and peaceful reunification of the motherland. Transportation

China Airlines (CAL) (Chinese: 中華航空; pinyin: Zhōnghuá Hángkōng) (TWSE: 2610) is the largest airline in Taiwan and the flag carrier of the Republic of China (Taiwan). It is headquartered in Taiwan Taoyuan International Airport and has approximately 11,000 employees. China Airlines operates over 1,300 flights weekly to 95 airports in 91 cities across Asia, Europe, North America and Oceania. The carrier was, in 2013, the 29th largest airline in the world in terms of passenger RPK (revenue per kilometer) and the 9th largest in terms of freight RPK. China Airlines has three airline subsidiaries: Mandarin Airlines operates flights to domestic and regional destinations with smaller demands; China Airlines Cargo operates a fleet of freighter aircraft and manages its parent airline's cargo-hold capacity; Tigerair Taiwan is a planned low-cost carrier and will commence operations in late- 2014

United States

Toward the end of this decade of change, Nissan has built a strong reputation in both the American and the Japanese markets. The Datsun 2000 roadster, valued both for its style and performance, becomes synonymous with early Nissan design. Soon after, the Datsun 'Z' changes the way people think of sports cars.

In 1960, Nissan Motor Corporation U.S.A. (NMC) is established in Gardena, California. The model year witnesses the birth of Datsun's first sports car, the SPL 210. This high, narrow, 4-seat roadster features a fold down soft top with side curtains, '4 on the floor,' and a 48-hp 1200-cc engine (soon replaced by an 85-hp version).

In 1962, Focused on American driving needs, the Bluebird is the first Datsun with a full synchronized 3-speed transmission. It also sports classic two-tone paint, wide whitewalls and optional bucket seats. Off the road, Nissan's first utility vehicle, The Patrol, makes its debut, with TV hero Roy Rogers as its spokesman. Pitched as the world's most powerful, most advanced 4-wheel drive, the Patrol's brawny 145-hp 4000-cc 6-cylinder engine develops enough torque 'to climb trees.'

While In 1966, The first Japanese-owned production facility in North America, Nissan Mexicana (NMEX) manufactures its first vehicle.

In 1967, The Datsun most-desired by collectors, the 2000 Roadster, is also the first Japanese production sports car to come with a 5-speed. That, plus its robust 150-hp engine, makes it extra fun to drive. Production is limited to 1,000 and the first 10 are lightweight versions for racing. The 2000 Roadster wins 10 SCCA National Championships between 1967 and 1987.

1968, Nissan launches the first car styled for the U.S. market, the Datsun 510 sedan.

Then In 1969, Datsun introduces the 'Z' as a 1970 model. By offering European performance, plus creature comforts like roll-up windows and a heater — all at an affordable price — the 240Z becomes the best-selling sports car in the world. The Corvette took nearly twenty-five years to sell 500,000 units; the Z does it in fewer than ten.

The Seventies

In the '70s, Nissan continues to gain in popularity, with annual U.S. sales surpassing a quarter of a million cars. Nissan also begins to display unrivaled racing skills, with the Datsun 510 winning a number of championship races. Meantime, the civilian 510 provides the verve of a sports car to the general driving population, a goal Nissan achieves to this day through the Maxima and Sentra SE-R.

1971 Annual sales in the United States pass the quarter million mark. Nissan also establishes itself on the racetrack: the BRE 510 wins the SCCA 2.5-liter Trans-Am Championship in 1971, claiming Nissan's first professional racing championship. It proceeds to dominate the series, winning 15 out of 21 events. Meanwhile, another 510 wins the East African Safari, while yet another wins the American Rally Championship in 1971. Today, the 510 enjoys a cult-like following and is still active in SCCA club racing.

1972 The civilian 510 introduces a new concept: a 4-door sports sedan. This good-looking, 5-passenger family car is fun to drive, economical, and sells over 300,000 sedans and wagons. As a result, race- bred sportiness remains very much part of Nissan today.

1973 The one-millionth Datsun vehicle is sold in America.

1975 Datsun becomes the top U.S. vehicle importer.

1977 Nissan expands the idea of how much work a truck can do by introducing the King Cab, the first extended cab pickup.

1979 Nissan Design International (NDI) is established in La Jolla, California, to provide American concepts and style to Nissan vehicles. Among their many creations (including today's popular Xterra SUV) is the 'out there' Gobi Truck concept. Developed in the late 1980s, it is a direct extension of the very first Datsun truck.

The Eighties

In the '80s, the Nissan brand comes into its own as the first Nissan truck is manufactured in the U.S. Not long after this milestone, Nissan introduces its Infiniti line of luxury vehicles, ending the decade with a tremendous new business venture.

1980 Nissan Motor Manufacturing Corporation (NMMC) is established in Smyrna, Tennessee to fulfill the growing demand for Nissan vehicles.

1981 Nissan Motor Acceptance Corporation (NMAC), Nissan's financing division, is established in Torrance, California.

1982 Nissan's rich off-road truck-racing history includes 19 championships from 1982-1992. A King Cab desert racer, competing as an HDRA/SCORE Class 1 Unlimited Vehicle, packs a sand-scorching 380 hp. It has full-time 4WD, a radical mid-engine design and a 4-wheel fully independent suspension.

1983 Worldwide marketing of vehicles using the Nissan name begins. And the first truck produced by Nissan in America rolls off the line in Smyrna, Tennessee. Nissan Research and Development (NRD) is established in Michigan.

1985 Legendary Hollywood actor Paul Newman races the Newman/Sharp Trans-Am 300ZX to an SCCA GT1 championship in 1985 and 1986. Particularly noteworthy is the 1985 win, which is Nissan's 50th national SCCA championship. Meanwhile, the first Sentra rolls off the line in Smyrna, Tennessee.

1988 Nissan driver Geoff Brabham wins the first of four consecutive IMSA Camel GTP Drivers Championships. The streak includes eight straight races, breaking the American road record. Almost unbeatable, the IMSA GTP Race Car dominates with a breathtaking top speed of 200 miles per hour.

1989 It's a year of remarkable milestones: Nissan launches the Infiniti line of luxury vehicles. NMMC produces its one-millionth vehicle. And Nissan begins the Summer Institute for Historically Black Colleges and Universities.

The Nineties

Nissan demonstrates its agility in the '90s — retaining the Nissan heritage, while moving in new directions. The company remains committed to long-standing quality and service in the automotive development, while also receiving numerous corporate and environmental awards.

1990 Nissan North America, Inc. (NNA) is established in Torrance, California, to oversee all Nissan operations in North America.

1991 Nissan unveils a $490 million, 1.7 million-square-foot expansion of the Smyrna, Tennessee plant. It builds an $80 million Research and Development Technical Center in Farmington Hills, Michigan. And on the environmental front, Nissan lends its Alternative Fuel Vehicle to a California testing program, unveils the Future Electric Vehicle concept car, and receives the Stratospheric Ozone Protection Award from the Environmental Protection Agency.

1992 As the Sentra surpasses two million sold in the U.S., the first Nissan mid-sized sedan produced in the U.S. — the Altima — rolls off the assembly line in Tennessee. Nissan wins the IMSA GTS Manufacturers Championship, with David Loring winning the IMSA GTU Drivers Championship in a Nissan 240SX, and Steve Millen winning the IMSA GTS Drivers Championship in a Nissan 300ZX. Nissan also establishes the Nissan Foundation, with a five-year, $5 million endowment. Nissan Quest becomes the first Nissan vehicle jointly produced with a U.S. manufacturer, Ford Motor Company.

1993 Nissan celebrates its first 10 years of manufacturing in the U.S. with authority. Altima becomes the best-selling new nameplate in the United States, while the Maxima surpasses one million sold.

1995 Nissan introduces the all-new 200SX and fourth generation Sentra, both assembled in the award- winning Smyrna, Tennessee plant. Nissan was recognized as Most Distinguished Partner by the Los Angeles Urban League in 1995.

1996 After more than 26 years, the Z car was retired. In 1999, Nissan announced an all new Z car will be built for release in 2002. Nissan served as a corporate sponsor of the 1996 Olympics in Atlanta, specifically the Official Import Vehicle of Choice for Truck, Sport Utility, and Minivan. NMMC is named the most productive plant in North America in 'The Harbour Report' for the third consecutive year. On a more creative front, Nissan's 'Toys' commercial is named the best commercial of the year by Time and Rolling Stone magazines. The last 300ZX is imported into the U.S. inducted into the Peterson Automotive Museum in Los Angeles.

1997 Nissan was named Best of the Best by the Environmental Protection Agency. In 1997, Nissan received the Smithsonian Inaugural Corporate Leadership Award. The Nissan Foundation celebrates its fifth anniversary. NMMC names the most productive automotive plant in North America by Harbour and Associates for fourth year.

1998 Nissan Motor Corporation in U.S.A. (NMC) and Nissan North America, Inc. (NNA) consolidated into one company Nissan North America, Inc., effective December 31, 1998.

1999 March 26, 1999, Nissan and Renault sign a global partnership agreement allowing both companies to take advantage of their respective strengths and expertise. Nissan introduces the Frontier Crew Cab, the first compact truck with four real doors. The Xterra also launches a trend in 'no-nonsense' SUVs for outdoor enthusiasts. Frontier, Xterra, and Pathfinder are named official vehicles of the Los Angeles County lifeguards and become a hit on the TV series 'Baywatch.' Rhys Millen drives UPRD Nissan Skyline GT-R to victory in the Pikes Peak International Hill Climb near Colorado Springs, Colorado, on July 4.

Today

Nissan's heritage highlights a company always eyeing the future and never satisfied with the status quo. Bold design. Innovative style. Inspiring performance. Original cars and trucks more than capable of taking you wherever you choose to go in life.

2000 Now working with Renault of France, Nissan unveils the 2003 Z® Concept. Nissan Research and Development (R&D) divisions in the U.S. and Europe are renamed Nissan Technical Center North America, Inc. (NTCNA) and Nissan Technical Centre Europe Limited (NTCE), respectively. Nissan Motor Co., Ltd., forms the North American Management Committee (NAMC), the key decision- making body for Nissan in North America, and the U.S. Management Committee. NNA announces the expansion of its Decherd powertrain facility and the vehicle production level at its Smyrna assembly plant, both in Tennessee. The expansions are part of Nissan's moves to bring local production closer to local markets. Nissan Motor Co., Ltd. announces preliminary financial figures showing a consolidated operating profit of $1.26 billion for the first six months of fiscal year 2000— the best performance in a decade. Nissan selects a site in Canton, Miss. for a new $930 million assembly plant. The plant will produce a full-size pickup truck, a full-size sport utility vehicle, and the next generation Nissan minivan. Production set to begin in summer 2003.

2001 Nissan unveils the 2002 Sentra SE-R, Frontier Crew Cab Long Bed, and a totally new Altima. Cumulative Nissan production surpasses 60 million vehicles to date. Nissan Design International, headquartered in San Diego, Calif., is renamed Nissan Design America (NDA). On behalf of its employees, affiliates, and dealers around the world, Nissan donated $1 million to the American Red Cross and the Twin Towers Fund during the first week following the September 11 terrorist attacks. Nissan also set up a company-wide employee gift program, which resulted in a donation of $105,052.54 from Nissan and its employees to support relief efforts after the tragedies in New York and Washington, D.C.

2002 An icon of automotive soul, the legendary Nissan Z® is reborn--better than ever. The first 8,000 Z's are pre-sold to customers who commit to buying without even a test drive. The Murano, an on-road adventure masterpiece is launched. Nissan introduces the Nissan Child Safety Seat Fit Guide, known as Snug Kids®, to assist Nissan and Infiniti customers in identifying the right child seat for their vehicle. The first program of its kind in the automotive industry, it is geared specifically toward car seat safety for children. Nissan Technical Center North America, Inc. (NTCNA) announces a $38.8 million expansion of its research and engineering facility northwest of Detroit to enhance the company's worldwide vehicle development capabilities. Steve Lambert replaces Katsumi Ishii as president of Nissan Motor Acceptance Corporation (NMAC).

2003 Among the many accolades for the 350Z, Nissan is awarded the 2003 Motorweek Driver's Choice Award, and the Altima receives the 2002 North American Car of the Year Award. Nissan's 2004 product lineup is the most complete and exciting lineup ever offered from Nissan. It includes Nissan's first entrance in the full-size truck and SUV markets with the all-new Titan pickup and Armada sport utility vehicle (SUV). The top was taken off the Z® with the 350Z Roadster, the Quest minivan makes its return to the lineup with a slew of innovative features and an advanced design, Nissan's flagship Maxima is completely new and reenergized, and the Sentra and Sentra SE-R receive a fresh new fascia design.

Nissan Motor Acceptance Corporation (NMAC) relocated to its new 268,000 square foot customer service center in Irving, Texas, and is part of a significant Nissan expansion program in North America.

For a record tenth year in a row, Nissan's versatile VQ V6 engine has been named to the annual 'Ward's Ten Best Engines' award list by Ward's Communications, Inc.

Nissan en Español, a new Spanish language website tailored to the online Hispanic community is launched.

2004 Nissan Korea, Ltd. is established in February and plans to introduce five Infiniti models to the market starting in mid-2005. Nissan Motor Co., Ltd., announced record operating profits of $7.29 billion for fiscal year 2003.

The 2005 Pathfinder and Frontier make their show car appearances at the North American International Auto Show in Detroit.

The re-designed 2005 Altima is launched in February. In April, the all-new, second generation 2005 Xterra made its world debut at the New York International Auto Show. And the first ever Altima SE- R model is to be released later this year.

Population

313,847,465 (July 2011 est.)

Age structure

0-14 years: 20.1% (male 32,107,900/female 30,781,823) 15-64 years: 66.8% (male 104,411,352/female 104,808,064) 65 years and over: 13.1% (male 17,745,363/female 23,377,542) (2011 est.)

Median age total: 36.9 years male: 35.6 years female: 38.2 years (2011 est.)

Population growth rate

0.899% (2011 est.)

Birth rate

13.68 births/1,000 population (2011 est.)

Death rate

8.39 deaths/1,000 population (July 2011 est.)

Net migration rate

3.62 migrant(s)/1,000 population (2011 est.)

Urbanization urban population: 82% of total population (2010) rate of urbanization: 1.2% annual rate of change (2010-15 est.)

Currency of america

The dollar currency is the official currency of USA. The United States Dollar has been adopted, and in some cases used as the official currency, in many different territories and countries. This process of incorporating the currency of one country into a different economic market is called 'dollarization'. Dollarization of the US Dollar has occurred in the British Virgin Islands, East Timor, Ecuador, El Salvador, Marshall Islands, Federated States of Micronesia, Palau, Panama, Pitcairn Islands, and Turks and Caicos Islands.

The currency of the United States can be traced back to 1690 before the birth of the country when the region was still a patchwork of colonies. The Massachusetts Bay Colony used paper notes to finance military expeditions. After the introduction of paper currency in Massachusetts, the other colonies quickly followed.

The paper notes used several different techniques including a Treasury seal and engraved signatures to help diminish counterfeiting. In 1863, Congress put together the national banking system that granted the US Treasury permission to oversee the issuance of National Bank notes. This gave national banks the power to distribute money and to purchase US bonds more easily whilst still being regulated.

Economic system of america

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $48,100. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Imports in the United States decreased to 224911 USD Million in December of 2012 from 231104 USD Million in November of 2012. United States is the world's largest importer.

U.S. main imports are Industrial Supplies with crude oil alone accounting for half of this category. Others include: Capital Goods ,Automotive vehicles, parts, and engines ,Consumer Goods and Foods, Feeds, and Beverages. Main imports partners are: China, European Union, Canada, Mexico and japan.

Exports in the United States increased to 186372 USD Million in December of 2012 from 182491 USD Million in November of 2012. United States is the world's third largest exporter.

Main exports are: Industrial Supplies and Capital Goods. Foods, feeds,beverages, Automotive vehicles, parts, and engines for another and Consumer goods. Main exports partners are: Canada, European Union, Mexico, China and Japan.

Political system in Unites States

The U.S. federal government is composed of three distinct branches—legislative, executive, and judicial—whose powers are vested by the U.S. Constitution in the Congress, the President, and the federal courts, including the Supreme Court, respectively .

The United States is a representative democracy. Citizens elect representatives to national, state, and local government; those representatives create the laws that govern U.S. society. Although nothing in U.S. law requires it, in practice, the political system is dominated by political parties. With rare exceptions, elections are decided between the two major parties: Democrats and Republicans. Although citizens vote for individual candidates, most candidates are affiliated with one part or another. Therefore, much of U.S. politics boils down to party politics.

The United States is also a diverse society, and citizens' competing interests are reflected in politics. Citizens may have different voting preferences depending on their family backgrounds, the types of jobs they have, their race or age, whether they have children, and so on. To understand the electoral process, we must understand how different interests come into play.

Individual citizens are not the only players in U.S. politics. Although individual citizens are the only ones who can cast votes, special interest groups and lobbyists may influence elections and law-making with money and other resources. At times, this influence has grown so noticeable that some have called into question whether the U.S. is truly a democracy of the people or something more like an oligarchy of special interest groups. The media also play an important role in politics by influencing public sentiment and acting as an information filter.

Airline in United State

American Airlines, Inc. (AA) is a major U.S. airline owned by AMR Corporation, headquartered in Fort Worth, Texas. It operates an extensive international and domestic network, with scheduled flights throughout North America, the Caribbean, South America, Europe, and Asia/Pacific. Dallas/Fort Worth International Airport is the airline's largest hub, with American Airlines and AMR's regional carrier American Eagle accounting for about 85% of the traffic and 83% of the landing fees at the airport and traveling to more destinations than from its other hubs.

THAILAND

Nissan today announced the opening of its second production plant in Thailand on Thailand (July 3rd, 2014)

The new plant will be a production hub for the NP300 Navara, Nissan's new generation pickup truck, destined for export to 45 countries around the world.

Thailand is a key market for Nissan, an integral part of their growth strategy in Asia. The country now boasts two plants and an R&D facility, and is increasing in importance as the company's Asian hub for exports and manufacturing.

Nissan has invested 3.7 billion Thai Baht in the 580,000 square meter facility, bringing with it 2,000 new job opportunities. Full production capacity is expected to reach 150,000 units per annum.

"Thailand is the engine of growth for us in the region, so we're excited to be opening this second plant today that will produce our latest pickup", said Fumiaki Matsumoto, Nissan's Executive Vice President responsible for global manufacturing. ―It signifies our optimism for Thailand, as a growing automotive market, a center of manufacturing excellence for the region and an export hub for the world."

More than half of the vehicles produced at this new plant will be exported to global markets. The localization ratio of vehicles produced is already at 85 percent, including the engine plant.

Nissan has also invested 162 million Thai Baht in the new plant's zero discharge program, and will recycle all industrial wastewater through the Reverse Osmosis (RO) process. Nissan will continue to provide training to subcontractors and employees to raise the awareness of waste management and resource reduction.

Nissan first produced cars in Thailand back in 1963 when four cars rolled off the production line a day. The new plant will increase Nissan's production capacity in Thailand to 370,000 units.

"The NP300 Navara is our most durable pickup, integrating the best of Nissan's technological know-how, design skills and 80 years of pickup production experience. With features such as LED projector headlamps with daytime running lights and the new 2.5L YD engine, I am confident this is going to be a popular model and will be our growth pillar in the region," said Takao Katagiri, Nissan's Executive Vice President responsible for Asia, Oceania and Japan businesses. The new plant produced its first NP300 Navara pickup on July 1 and start of sales begins on July 3. Two versions are available: King Cab and Double Cab. The price of the King Cab ranges from 575,000 to 842,000 Thai Baht, while the price for the Double Cab version ranges from 656,000 to 996,000 Thai Baht. The delivery will begin in mid-August.

Population

67,010,502 ( December 2013 )

Age Structure

0-14 years: 19.2% (male 6,620,873/female 6,313,188) 15-24 years: 15.1% (male 5,181,468/female 4,975,083) 25-54 years: 45.6% (male 15,192,334/female 15,569,761) 55-64 years: 10.4% (male 3,345,493/female 3,661,867) 65 years and over: 9.8% (male 2,971,426/female 3,616,627) (2013 est.)

Median Age total: 36.2 years male: 35.3 years female: 37.2 years (2014 est.)

Population growth rate

0.52% (2013 est.)

Birth Rate

12.66 births/1,000 population (2013 est.)

Death rate

7.47 deaths/1,000 population (2013 est.)

Net Migration Rate

0 migrant(s)/1,000 population (2013 est.)

Urbanization

Urban population : 34.1% of total population

Rate of urbanization : 1.7% annual rate of changes (2005-10 est.) Currency of Thailand

The currency of Thailand is the "Baht" - sometimes spelled "Bath" but pronounced to rhyme with "hot." One Baht is divisible into 100 Satang. Major credit cards are accepted by hotels and large shops, but "hard cash" is the preferred tender almost everywhere. Travelers checks are not widely accepted outside of hotels, so change them for cash at a bank exchange, which you'll find in any and every tourist destination.

Coins come in six denominations: 25 and 50-Satang coins are very small and made of brass. They're practically useless, and as a tourist you're unlikely to encounter them unless you shop at a supermarket or department store. The other coins come in one, two, five and ten-Baht pieces. The one, two and five-Baht coins are silver, while the ten-Baht coin consists of a silver ring around a brass center.

Bills vary in size and color according to denomination: 20-Baht is green, 50-Baht is blue, 100-Baht is red, 500-Baht is purple and 1,000-Baht is white. There is also still a 10-Baht bill in circulation, which is brown in color, but these are quite rare. Actually, there are several versions of coins in circulation, and not a few variations in bills as well. They're all legal tender, so don't worry if you start comparing the change in your pocket and notice some differences.

All bills and all coins have a picture of His Majesty the King, and are therefore supposed to be shown some respect.

Airline In Thailand

Thailand has a range of airline companies, ranging from the national carrier and Star Alliance member THAI Airways, down to smaller regional airlines like Solar Air, who operate a service in the north of the country. Air Ais, Nok Air and Orient Thai all offer reliable, comfortable service at a surprisingly affordable price. Now you need not worry about those 12 hour bus journeys any more!

Economy Sytem

Thailand is a newly industrialized country. Its economy is heavily export-dependent, with exports accounting for more than two-thirds of its gross domestic product (GDP). In 2012, according to the Office of the National Economic and Social Development Board, Thailand had a GDP of THB11.375 trillion (USD366 billion). The Thai economy grew by 6.5 percent, with a headline inflation rate of 3.02 percent and an account surplus of 0.7 percent of the country's GDP. In 2013, the Thai economy is expected to grow in the range of 3.8-4.3 percent. During the first half of 2013 (Q1- Q2/2013), the Thai economy grew by 4.1 percent (YoY). After seasonally adjusted, however, the Thai GDP contracted by 1.7 percent and 0.3 percent in the first and the second quarters of 2013, respectively. Given a contraction in two consecutive quarters, technically speaking, the Thai economy is now in recession.

The industrial and service sectors are the main sectors in the Thai gross domestic product, with the former accounting for 39.2 percent of GDP. Thailand's agricultural sector produces 8.4 percent of the GDP – lower than the trade and logistics and communication sectors, which account for 13.4 percent and 9.8 percent of GDP respectively. The construction and mining sector adds 4.3 percent to the country‘s gross domestic product. Other service sectors (including the financial, education and hotel and restaurant sectors) account for 24.9 percent of the country's GDP. Telecommunications and trade in services are emerging as centers of industrial expansion and economic competitiveness.

Thailand is the second-largest economy in Southeast Asia, after Indonesia; however, its per- capita GDP (USD5,390) in 2012 . In Southeast Asia Thailand ranks in the middle of per-capita GDP, after Singapore, Brunei and Malaysia. On 19 July 2013 Thailand held USD171.2 billion in international reserves, the second-largest in Southeast Asia (after Singapore). Thailand also ranks second in Southeast Asia in external-trade volume, after Singapore.

The nation is recognized by the World Bank as ―one of the great development success stories‖ in social and development indicators. Despite a low per-capita gross national income (GNI) of USD5,210 and ranking 89th in the Human Development Index (HDI) the percentage of people below the national poverty line decreased from 65.26 percent in 1988 to 13.15 percent in 2011, according to the NESDB's new poverty baseline. As of the first quarter of 2013 Thailand's unemployment rate is 0.7 percent, the fourth-lowest unemployment rate in the world (after Cambodia, Monaco, and Qatar).The average headline inflation rate of the first half of 2013 stands at 2.70% (YoY) with a policy interest rate of 2.50 percent. Thailand was Hong Kong's 12th largest export market and the 9th largest import source in 2013. Hong Kong‘s exports to Thailand increased by 3.7% to US$5,554 million, while imports from Thailand rose by 6.4% to US$9,941 million. Hong Kong ran a trade deficit with Thailand amounting to US$4,388 million. On the other hand, major imports items included computers (20.6% share), semi-conductors, electronic valves & tubes, etc (20.2%), telecom equipment & parts (8.1%), parts & accessories of office machines /computers (7.4%).

Major export items were telecom equipment & parts (17.3% share), parts & accessories of office machines /computers (14.1%), pearls, precious & semi-precious stones (9.5%), electrical apparatus for electrical circuits (8.5%). Among export partner are China, United Stated, Malaysia, Singapore, Japan and others.

Political system

Thailand is a constitutional monarchy. From 1992 and until the 2006 coup, the country was considered a functioning democracy with constitutional changes of government. Generally free and fair multi-party elections held in 2007 subsequently restored democratic governance 1 year after the coup, and the 2011 election preceded a stable transition of power between parties. The King has little direct power under Thailand's constitution but is a symbol of national identity and unity. King Bhumibol (Rama IX)--who has been on the throne since 1946--commands enormous popular respect and moral authority, which he has used on occasion to resolve political crises that have threatened national stability.

Under the 2007 constitution, the National Assembly consists of two chambers--the Senate and the House of Representatives. The Senate is a non-partisan body with 150 members, 76 of whom are directly elected (one per province). The remaining 74 are appointed by a panel comprised of judges and senior independent officials from a list of candidates compiled by the Election Commission. The House has 500 members, 375 of whom are directly elected from constituent districts and the remainder drawn proportionally from party lists.

Thailand's legal system blends principles of traditional Thai and Western laws. Under the constitution, the Constitutional Court is the highest court of appeals, though its jurisdiction is limited to clearly defined constitutional issues. Its members are nominated by a committee of judges, leaders in parliament, and senior independent officials, whose nominees are confirmed by the Senate and appointed by the King. The Courts of Justice have jurisdiction over criminal and civil cases and are organized in three tiers: Courts of First Instance, the Court of Appeals, and the Supreme Court of Justice. Administrative courts have jurisdiction over suits between private parties and the government, and cases in which one government entity is suing another. In Thailand's southern border provinces, where Muslims constitute the majority of the population, Provincial Islamic Committees have limited jurisdiction over probate, family, marriage, and divorce cases.

Thailand's 77 provinces include the metropolis of greater Bangkok. Bangkok's governor is popularly elected, but those of the remaining provinces are career civil servants appointed by the Ministry of Interior MALAYSIA

The earliest evidence of inhabitants on the Malay Peninsula that has been found is from about 10,000 years ago. Neolithic culture was well established by 2500-1500 BC. Most scholars believe the earliest settlers on the Malay Peninsula came overland from southern China in small groups over a period of thousands of years. These early inhabitants became the ancestors of the Orang Asli.

During the 1000's B.C., new groups of migrants who spoke a language related to Malay came to Malaysia. The ancestors of these people had traveled by sea from south China to Taiwan, and later from Taiwan to Borneo and the Philippines. These people became the ancestors of the Malays and the Orang Laut. The newcomers settled mainly in the coastal areas of the peninsula.

Small Malayan kingdoms existed in the 2nd or 3rd centuries AD, when adventurers from India arrived and initiated more than 1,000 years of Indian influence. About A.D. 1400, a group of Malay-speaking migrants came to the Malay Peninsula from Srivijaya, a trading kingdom on the island of Sumatra (now part of Indonesia). Led by a Sumatran prince called Paramesvara, these newly arrived immigrants established a commercial kingdom called Malacca and secured Chinese protection for the city-state.

Europeans arrived in what is now Malaysia during the 1500's. Malacca entered a golden age as a commercial and Islamic religious centre but in 1511 it was captured by the Portuguese. When the Dutch captured Malacca in 1641, the port was no longer an important trading center.

GOLDEN AGE OF MELAKA (1400-1511)

Melaka - a city steeped in history - was founded in 1400 by a fleeing Palembang prince named Parameswara. Its rise from a village of royal refugees to a wealthy kingdom and international center for the spice trade was swift. During the middle and late 1400's, Melaka gained control over much of the Malay Peninsula, Sumatra, and the key shipping route through the Strait of Malacca. It attracted traders from throughout the world. Perfectly located for trade, within 50 years it was the most influential port in Southeast Asia. At any one time, ships from a dozen kingdoms great and small could be seen in the harbor. In the mid-1400's, Melaka became a Muslim kingdom. The traders brought with them the Islamic religion, and Malacca's rulers now referred to themselves as "sultans." Islam spread throughout the Malay Peninsula and to other parts of Southeast Asia. Melaka's prosperity drew the attention of the Europeans, who wished to gain control of the valuable spice trade. At the height of its power, however, fate would ruin the city as quickly as it built it up. In 1511, the Portuguese seized the commercial kingdom of Melaka from the Malays but were unsuccessful in conquering other areas on the Malay Peninsula. Thus began a colonial legacy that would last well into the 20th century.

COLONIALISM (1511-1957)

In 1511, a Portuguese fleet led by Alfonso de Albuquerque - and lured by the spice trade - sailed into Malacca's harbor, opened fire with cannons, and captured the city from the Malays. Malacca's golden age had come to an end. The Malays soon moved their center to Johor at the southern end of the Malay Peninsula. Descendants of the ruling family of Melaka also founded other kingdoms on the peninsula. The Portuguese constructed a massive fort in Malacca - A Famosa (picture to the left) - which the Dutch captured in turn in 1641 and ruled there for the next 150 years. This would give the Dutch an almost exclusive lock on the spice trade. Minangkabau peoples from Sumatra migrated to Malaya during the late 17th century, bringing with them a matrilineal culture. In the 18th century the Buginese from the island of Celebes invaded Malaya and established the sultanates of Selangor and Johore.

THE BRITISH RULE

In 1786, the British acquired Penang Island and established a settlement called George Town there. Gradually, Britain acquired control over more of the area to protect its shipping lanes between China and India. The Dutch traded Malacca with the British for Bencoolen, Sumatra. In 1824, the Dutch signed a treaty which surrendered to the British their possessions on the Malay Peninsula. Nevertheless, total British control was not established until the early 1900's. In 1819, Britain sent Sir William Raffles to establish a trading post on Singapore Island. In 1826, the British formed a colony called the Straits Settlements that included Melaka and the islands of Penang and Singapore. In 1840, James Brooke, a wealthy English adventurer, helped the sultan of Brunei quiet a local rebellion. In return, the sultan ceded the southern part of his territory, present-day Sarawak, to Brooke in 1841 and bestowed on Brooke the title rajah. Brooke and his descendants, called "white rajahs," ruled Sarawak as a self-governing state until the 1940's. In 1881, North Borneo (as Sabah was then called) came under the control of a private trading company called the British North Borneo Company. The British declared North Borneo and Sarawak to be British protectorates in 1888. During the late 19th century Chinese began to migrate to Malaya. In 1896 the Malay states accepted British advisors, and Perak, Selangor, Negeri Sembilan, and Pahang formed a federation. By 1914, Britain had either direct or indirect colonial control over all the lands that now make up Malaysia, which it called British Malaya.

British rule took several forms. For example, Britain had direct colonial rule in the Straits Settlements, family control by the Brookes in Sarawak, and corporate control in North Borneo. In the kingdoms on the Malay Peninsula, the British governed indirectly, through local rulers. Britain placed a representative called a resident in each kingdom. The local sultan agreed to accept the resident's advice on political and economic matters.

To increase its revenues from British Malaya, the British expanded tin mining in the late 1800's. They also introduced rubber trees from Brazil and established rubber plantations in the late 1800's and early 1900's. To provide labor for these enterprises, the British imported Chinese workers for the tin mines and Indian laborers for the rubber plantations. To help feed the rapidly expanding work force, the British encouraged the Malays to farm for a living.

The British also encouraged ethnic divisions. For example, the British administered the two main ethnic communities in Kuala Lumpur separately through their Malay and Chinese leaders. By hardening the lines that divided the Malays, Chinese, and Indians, these policies helped keep the groups from uniting against the British.

INDEPENDENCE FROM THE BRITISH

From the 1890s the British invested heavily in what was then called Malaya, developing transportation and rubber plantations. Coupled with the power of the White Rajahs in Borneo, Britain ruled over Malaya until 1941 when the Japanese invaded Malaya and captured Singapore in early 1942. Japan occupied British Malaya and much of Asia until losing the war in 1945. World War II and its aftermath brought the end of British rule.

After World War II ended in 1945, the British tried unsuccessfully to organize Malaya into one state due to a mature independence movement organized as an alliance under YTM Tunku Abdul Rahman. This led to the birth of Malayan nationalism, which opposed a colonial status. In 1946 the United Malaya National Organization(UMNO) was established. Britain dissolved the Straits Settlements in 1946. In 1948, the kingdoms on the Malay Peninsula, plus Melaka and the island of Penang, united to form the Federation of Malaya, a partially independent territory under British protection. Singapore, North Borneo, and Sarawak became separate crown colonies. In the same year the Malayan Communist Party was formed and began a guerrilla uprising against the British that became known as the Emergency. With Malay help, the British finally subdued the Emergency in 1960, three years after independence. In 1955 the Malayan Chinese Association (MCA) joined UMNO in an anticommunist, anticolonial coalition that won 51 of 52 parliamentary seats. The British relinquished their powers, and in 1957 the Federation of Malaya had gained complete independence from Britain. Singapore, which had a mostly Chinese population, remained outside the federation as a British crown colony. Peninsular Malaysia became an independent nation called Malaya in 1957. When the British flag was finally lowered in Kuala Lumpur's Dataran Merdeka in 1957, Tunku became the first prime minister of Malaya (picture).

MALAYSIA IS BORN

The first prime minister of the new nation was Tunku Abdul Rahman. Earlier in the 1950's, he and other leaders had formed a political alliance of the three main ethnic parties: the United Malays National Organization, the Malayan Chinese Association, and the Malayan Indian Congress. This three- party partnership, known as the Alliance, was the forerunner of the National Front that is Malaysia's most powerful political organization today.

In 1961, the term "Malaysia" came into being after Tunku convinced Singapore, Sabah, and Sarawak to join Malaya in a federal union. In the 1960s membership in the federation shifted several times, finally settling into the present pattern in 1963, when Malaysia was established. The Malay majority hoped that including Sabah and Sarawak, which had ethnically diverse populations, would balance the large numbers of Chinese from Singapore. Economic and political disputes soon developed between the mostly Chinese state leaders of Singapore and the mostly Malay federal government of Malaysia. In 1965, Singapore withdrew from the federation peacefully and became independent.

In Malaysia, as in the former British Malaya, the ethnic groups followed different traditional occupations. Malaysia was a multi-racial country with a mix of people from many different races and cultures. The Malays controlled government and agriculture, while the Chinese dominated commerce and industry. The Chinese resented the political power of the Malays, and the Malays envied the economic success of the Chinese. The tensions eventually triggered racial violence. In 1969, bloody riots broke out after an election on Peninsular Malaysia. The government declared a state of emergency, suspending the Constitution and Parliament until 1971. It was a painful moment in the young nation's history that most Malaysians prefer to forget. Turbulence in the government went on into the early 1970s, when stability returned and the Malaysian economy began to prosper.

After the riots, Malaysia's political leaders tried to build national unity. They amended the Constitution to forbid discussion, even in Parliament, of certain "sensitive issues," including the special position of the Malays and of Borneo's ethnic groups, and the powers of the Malay sultans. The amendment also required all government bodies to use Bahasa Malaysia as their principal official language. Many non-Malays, however, resented the government's attempts to build national unity through increased emphasis on Malay culture.

Also after the riots, Malaysia's leaders determined to improve the economic conditions of the Malays. In 1971, they launched a 20-year plan called the New Economic Policy to achieve a better balance of wealth among racial groups. To minimize racial politics, the government created in 1974 a multiparty alliance called the National Front, uniting Malay, Chinese, and Islamic groups.

Despite considerable regional and ethnic divisions, Malaysia has made significant gains in creating national unity. In the last two decades, Malaysia has undergone tremendous growth and prosperity, and has arguably made significant progress in race relations. Many attribute the country's success to the dynamic leadership ofPrime Minister Datuk Seri Doktor Mahathir bin Mohamad, who has led the country since 1981.

Malaysia‘s population has more than tripled since it was formed in 1963. Back in 1957 when Tunku Abdul Rahman shouted ―Merdeka‖ seven times in the newly-built Stadium Merdeka on August 31, there were only 6.3 million Malayans. Malaysia The number of births per 1000 people, per year: For that indicator, The World Bank provides data for Malaysia from 1960 to 2012. The average value for Malaysia during that period was 27.96 births per 1000 people with a minimum of 17.61 births per 1000 people in 2010 and a maximum of 40.99 births per 1000 people in 1960.

Urban population (% of total) in Malaysia was last measured at 72.20 in 2010, according to the World Bank. Urban population refers to people living in urban areas as defined by national statistical offices. It is calculated using World Bank population estimates and urban ratios from the United Nations World Urbanization Prospects. This page has the latest values, historical data, forecasts, charts, statistics, an economic calendar and news for

Urban population (% of total) in Malaysia. Urban population in 2011 is 72.8% of total population. Rate of urbanization is 2.49% annual rate of change.

Back in the early years when Malaysia was still largely undiscovered land, the early civilizations exchanged goods by bartering for what they needed. This came to be known as the ―barter system‖ whereby a person traded for goods or services with another person when there is no money involved. However, this system proved to be fraught with problems due to the indivisibility of larger items and one needing to find the right people who could give you the best goods/services in return for your own goods/services. Gold, silver and tin ingots (which later on became the first indigenous coins) were used later on; it was a unit of measure that was valuable, durable, easy to store, homogeneous and portable.

Finally, in the year 1967, the Malaysian dollar that was issued by the new central bank, Bank Negara Malaysia, replaced the Malaya and British Borneo dollar at par. It was not until the year 1975 that Malaysia officially adopted the ringgit. The same can be said about the Malaysian coins, which are a part of the national currency. In the beginning, there were coins issued in the denominations of 1 sen, 5 sen, 10 sen, 20 sen and 50 sen in the year 1967 whereas the RM1 coin (which used the $ symbol and is the thickest and heaviest in the series) was issued in 1971. However, the RM1 coin is no longer considered legal tender since December 2005 and anyone in possession of the coin would need to exchange them with Bank Negara to the current polymer/paper notes. The withdrawal of the RM1 coins was attributed to the low demand and increasingly unpopular usage for purchases of goods or services.

Malaysia Airlines‘ journey to achieving its current reputable position has been a remarkable one. A small airline operator, it has grown by leaps and bounds to be the force it is within the industry today. A joint initiative of the Ocean Steamship Company of Liverpool, the Straits Steamship of Singapore and Imperial Airways led to a proposal to the Colonial Straits Settlement government to run an air service between Penang and Singapore. On 12 October 1937, Malayan Airways Limited (MAL) was born.

On 2 April 1947, MAL took to the skies with its first commercial flight as the national airline. Driven by a young and dynamic team of visionaries, the domestic carrier turned into an international airline in less than a decade. With the formation of Malaysia in 1963, the airline changed its name to Malaysian Airlines Limited. Soon after, Borneo Airways was incorporated into MAL. Within 20 years, MAL grew from a single aircraft operator into a company with 2,400 employees and a fleet operator, using the then latest Comet IV jet aircraft, six F27s, eight DCs and two Pioneers.

In 1965, with the separation of Singapore from Malaysia, MAL became a bi-national airline and was renamed Malaysia-Singapore Airlines (MSA). A new logo was introduced and the airline grew exponentially with new services to Perth, Taipei, Rome and London. However, in 1972, the partners went separate ways. Malaysia introduced Malaysian Airline Limited, which was subsequently renamed Malaysian Airline System, and took to the skies on 1 October 1972. It was later branded Malaysia Airlines and continues to be the country‘s national carrier.

Malaysia Airlines achieved a significant milestone in 2012 when it received its first Airbus A380-800. On 1 July 2012, Malaysia Airlines cemented its position as one of the leading airlines in the world with the historic launch of its A380 scheduled service between KL International Airport and London Heathrow.

On 1 February 2013, Malaysia Airlines became a full-fledged member of one world alliance and is now connected to some 850 destinations in 150 countries across the one world alliance network.

-ECONOMIC SYSTEM

Malaysia has progressed into a nation that has diversified successfully to rise as a top exporter of manufactured goods. Other items exported are palm oil and rubber, in which Malaysia is among the top producers, as well as crude petroleum and liquefied natural gas. Malaysia is considered a major producer of cocoa and pepper, with significant exports of timber and wood products.

Malaysia is the largest producer of palm oil in the world. In 1996, 7.3 million tons of palm oil products were exported, with the major markets being China, Pakistan and Singapore. The third largest in natural rubber production, Malaysia exported 17.1 percent of the world's production in 1996, with the major markets being the EC, Republic of Korea, USA, Japan, Singapore, China and Russia.

Timber is the second largest foreign exchange earner, with petroleum being the first. The major importers of sawn lumber and saw logs were Japan, Taiwan, and the Republic of Korea, with the EC, Thailand, Singapore, Japan and the Republic of Korea importing sawn timber imports.

In recent years, the manufacturing sector has become more important, thus improving, with the help of tourism, the nation's economy.

Malaysia, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, medical technology, and pharmaceuticals. The NAJIB administration also is continuing efforts to boost domestic demand and to wean the economy off of its dependence on exports. Nevertheless, exports - particularly of electronics - remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to reduce government subsidies.

The government is also trying to lessen its dependence on state oil producer Petronas, which supplies at least 40% of government revenue. The central bank maintains healthy foreign exchange reserves and its well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. Nevertheless, decreasing worldwide demand for consumer goods hurt Malaysia's exports and economic growth in 2009, although both showed signs of recovery in 2010. In order to attract increased investment, NAJIB has also sought to revise the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but he has encountered significant opposition, especially from Malay nationalists.

-POLITICAL SYSTEM

Malaysia is a constitutional monarchy with the Supreme Head of State of Malaysia, His Majesty, Yang di-Pertuan Agong. As the constitutional monarch, he holds office for five years after his election by the conference of Rulers. His advisors are the Prime Minister, who exercises executive power, and the Cabinet.

The National Front (Barisan Nasional), the is main political party in Malaysia. It is multiracial and consists of 14 parties, with the largest being the United Malays National Organization.

The politics of Malaysia is based on a federal constitutional monarchy, in which the King is head of state and the Prime Minister is the head of government. Executive power is exercised by the federal government and the 13 state governments. Federal legislative power is vested in the federal parliament and the 13 state assemblies. The judiciary is independent of the executive and the legislature, though the executive maintains a certain level of influence in the appointment of judges to the courts.

The House of Representatives (Dewan Rakyat) consists of 192 members and is the legislative authority of Malaysia. Representatives are elected by popular vote for terms of five years. The highest court in Malaysia is the Federal Court, with two High Courts directly underneath it. One High Court serves East Malaysia with the other serving West Malaysia.

King of Malaysia (Yang di-Pertuan Agong)

The Federation of Malaysia is a federal constitutional monarchy. Officially the head of state is the Highest Governor or Yang di-Pertuan Agong (the king). The Malaysian kings are chosen for a 5 year term from the 9 sultans of the states of the Malaysian peninsula. The present King is Abdul Halim Mu'adzam Shah, successor of Mizan Zainal Abidin. On the 14th of October 2011 it was decided during a special meeting of the Conference of Rulers that the 83 year old Abdul Halim Mu'adzam Shah would become the next and 14th King of Malaysia. It will be the first time a Sultan is crowned King two times, as Sultan Abdul Halim Mu'adzam Shah was already King of Malaysia between 1970 and 1975.

The former King of Malaysia; Mizan Zainal Abidin was the 17th sultan of the Terengganu province, and with just 36 years of age he was the youngest sultan ever. Mizan Zainal Abidin is the 13th Malaysian king, and the second youngest king in the country's history. He was chosen as king at the age of 44. As almost all sultans in Malaysia, Mizan Zainal Abidin received his education abroad, and before becoming sultan he occupied several high positions at home and abroad.

All Kings of Malaysia

 1957 - 1960: Abdul Rahman from Negeri Sembilan

 1960 - 1960: Hishamuddin Alam Shah from Selangor

 1960 - 1965: Syed Harun Putra from Perlis

 1965 - 1970: Ismail Nasirrudin Shah from Terengganu

 1970 - 1975: Abdul Halim Mu'adzam Shah from Kedah

 1975 - 1979: Yahya Putra from Kelantan

 1979 - 1984: Ahmad Shah al-Mustain Billah from Pahang

 1984 - 1989: Mahmud Iskandar from Johor

 1989 - 1994: Azlan Muhibbudin Shah from Perak

 1994 - 1999: Ja'afar from Negeri Sembilan  1999 - 2001: Salehuddin Abdul Aziz Shah from Selangor

 2001 - 2006: Syed Sirajuddin from Perlis

 2006 - 2011: Mizan Zainal Abidin from Terengganu

 2011 - 2016: Abdul Halim Mu'adzam Shah from Kedah

All Prime Ministers of Malaysia

 1957-1970: Tunku Abdul Rahman  1970-1976: Tun Abdul Razak  1976-1981: Tun Hussein Onn  1981-2003: Tun Dr. Mahathir Mohamad  2003-2009: Dato Seri Abdullah Ahmad Badawi  2009-201x: Najib Tun Razak

The Government is composed of members from both Houses of the Congress, and accounts to them. Early 2004, the government moved to the newly build Putrajaya. All 69 members of the senate have a 6 year term of office; 36 are elected by the 13 state meetings, and 42 are appointed by the king. The representatives of the House are chosen from districts with a member by ways of general voting. The 193 members of the House of Representatives are elected for a maximum term of office of 5 years. The legislature is divided between the federal law departments and those of the state.

BRAZIL

In 1993 Nissan entered the Brazilian market importing vehicles from Japan through a local distributor. In its early years, Nissan launched products including the Pathfinder, which introduced Nissan's world-renowned reputation for trucks to Brazil. Since its launch in 1993, Nissan has sold more than 8,300 vehicles in Brazil.

In October 2000, Nissan established Nissan do Brasil automotives (NDB) based in Curitiba. As a wholly owned subsidiary of Nissan, NDB is a lean organization with less than 50 people working closely with Renault to manage all industrial and commercial operations in Brazil. NDB has already begun to build a network of Nissan dealers using the strength and experience of Renault. At the end of 2001, 45 new dealers have been established in Brazil. The Nissan dealers handle commercial operations and interaction with consumers to build the Nissan brand.However all back office operations not visible to consumers are shared with Renault do Brasil

In calendar year 2001 Nissan expects to sell 1,500 vehicles in Brazil. Nissan‘s line up in Brazil:

 Maxima sedan (3.0 liter V-6)  Pathfinder sport utility (3.3 liter V-6 engine)  Frontier pickup (2.5 liter turbo diesel engine)

The Arython senna industrial complex in Sao Jose Dos Pinhais, Parana, Brazil. Renault set out in 1995 to make Brazil, the biggest car market in South America, a springboard for its international growth strategy, alongside the brand's historic stronghold of Argentina. Renault was fully aware that the large South American markets, like all developing markets, can be extremely cyclical. But the considerable growth potential of the Brazilian market and of other neighbouring markets was believed to substantiate major investments if Renault were to become a leading market player.

In partnership with the state of Parana, Renault bought a 250-hectare site in Sao Jos Edos Pinhais near Curitiba and in October 1996 started to build its Ayrton Senna industrial complex, including an ultra-modern car assembly plant covering 141,000 sq. metres. The plant came on stream in November 1998 and began to assemble Scenic, then Clio 2 in November 1999. It produced 59,172 vehicles in 2000 and 69,700 vehicles in 2001 (at end November 2001). The plant's capacity is 200,000 vehicles per year and could increase to 240,000 vehicles annually in the longer term. A 15,000 sq. metre site adjacent to the plant has been built for suppliers to promote just-in-time production. A powertrain manufacturing unit, started up production in December 1999. The unit has a capacity of 400,000 engines annually - 1.6-litre and 1.0-litre engines - built for the Brazilian market and for export to the group's other plants in South America and Europe. The plant also produces powertrains for the PSA group in Brazil. It manufactured 30,000 engines in 2000 and 81,500 engines in 2001 (at end of November 2001).

The new LCV assembly unit is a noteworthy addition to Renault's manufacturing base in Brazil. The Ayrton Senna industrial complex, which has a workforce of 3,100 represented a total investment of $1.35 billion, (including LCV plant), between 1996 and 2001. It is a cornerstone of the development strategy of both Renault and the Renault-Nissan Alliance in Brazil and the Mercosur. Renault sales in Brazil (66,937 vehicles at end November 2001) are handled by 160 dealers.

Population

200,674,130 ( estimate in July 2013 )

Age structure

0-14 years : 24.2 % ( male 24, 814, 906 / female 23, 879,697 )

15-24 years : 16.7 % (male 16,982,245/female 16,513,161)

25-54 years : 43.6 % (male 43,396,927/female 44,170,680)

55-64 years : 8.2 % ( male 7,792,041/female 8,736,359)

65 and older : 7.3 % (male 6,250,580/female 8,473,026)

Median age

Total : 30.3 years

Male : 29.5 years

Female : 31.1 years ( 2013 estimated )

Dependency ratios Total dependency ratio : 46.2 % Youth dependency ratio : 35.2 % Elderly dependency ratio : 11 % Potential support ratio : 9.1 (2013)

Population growth rate

0.83% (2013 est.)

Birth rate

14.97 births/ 1000 population (2013 est. )

Death rate

6.51 deaths/1,000 population (2013 est.)

Net migration rate

-0.17 migrant(s) / 1000 population (2013 est.)

Urbanization

Urban population : 87% of total population (2010) Rate of urbanization : 1.1% annual rate of change (2010-15 est.)

Major cities population

Sao Paulo : 19.96 million

Rio De Janeiro : 11.836 million

Belo Horizonte : 5.736 million

Porto Alegre : 4.034 million

Brasalia : 3.813 million

Currency of brazil

What symbols, other visual elements, on currency say about a nation’s values?

On the front of the Brazillian currency is a picture of a woman wearing a roman crown of leaves. This symbol was first used in 1889 after the proclamation of the Republic. It is displayed on government buildings as well as the currency. This symbol is most likely used to align and lend authority to Brazil‘s relatively new government with older, established Republics like Rome and France (The woman is similar to France‘s Marianne).

On the reverse side of each banknote is a picture of an animal that is native to Brazil. These animals include, the Sapphire-Spangled Emerald Hummingird (one real), the Hawksbill turtle (2 reais), the Great Egret (5 reais), the Green- Winged Macaw (10 reais), the Golden Lion Tamarin (20 reais), the Jaguar (50 reais), and the Dusty Grouper (100 reais). These animals are probably used to emphasize the country‘s pride in it‘s environment. The currency was created in 1994, a time when people were very conscious of protecting nature, especially the Amazon and the endangered species that live there. Brazil was criticized in the 90‘s for its destruction of the rainforest and the indigenous people and animals living in it. By printing pictures of these animals on their currency, Brazil‘s government is showing that they care about environmental issues.

What is emphasized? Religion? Government? History? Abstract principles (democratic symbols on Dollar)? Two things are emphasized on these bills—the ideas of Republican government and the importance of nature.

How is color used? Why? Vibrant color is used on the real. A reason for this could also be environmental. The colors are much like those you would find in the lush rainforest. This again connects the currency and the government to the idea of conservation and environmental awareness.

What political statements or philosophies are being articulated through symbols?

By using a symbol of Republican government, one associated with Roman and French culture, the government is attempting lend a sense of history to its relatively young government.

How might a traveler ―read‖ the currency differently than a citizen? A traveler would most likely look at the money and relate it to ideas they already hold about ancient Roman government. He/she would also look at the animals and relate the country with environmental conservation. However, a citizen may not even think of these things when handling the currency because he/she is used to seeing it every day. This currency seems to hold more symbolic value for outsiders rather than insiders.

What is conspicuously absent? Why? Conspicuously absent are depictions of government buildings and political figures. This may be because the government is choosing to use their currency as a platform to support political ideas (like the idea of Roman government and environmental conservation) rather than as direct propaganda for the State.

Airlines in Brazil

Rio de Janeiro/Galeão–Antonio Carlos Jobim International Airport Brazil has numerous airports and many of them are named after famous or well-known Brazilian citizens. There are plans for developing many of the main commercial airports due to expected increased air traffic. The São Paulo/Guarulhos–Governador André Franco Montoro International Airport is known as one of the busiest airports in Brazil by passenger traffic, aircraft movement and cargo traffic according to 2012 statistics; and is located within São Paulo, Brazil. However it is also notorious for having flight delays, among main airports. About 32,177,594 passengers travel through it daily, according 2012 statistics and this may be about double of what the main airport in Rio de Janeiro has.

The facilities in this airport are shared with the São Paul Air Force and the Brazilian Air Force. The tropic of Capricorn passes right through the southern tip of the airport and it is situated about 25km from downtown São Paulo. This airport had a quick rise to air traffic as it only was officially inaugurated in January 1985.Rio de Janeiro/Galeão–Antonio Carlos Jobim International Airport is the largest airport site in Brazil and the main airport in Rio de Janeiro, and ranked as the second busiest in passenger traffic according to 2012 statistics. The facilities in this airport are shared with the Rio de Janeiro Air Force and the Brazilian Air Force. This airport is situated 20km north of downtown Rio de Janeiro. In 1923 near Galeão beach on Governador Island a School of Naval Aviation began. Then in 1941 it became known as Galeão Air Force Base as the Brazilian Air Force Ministry was started. Then the Santos Dumont Airport in Rio de Janeiro was unable to cope with the traffic of international flights and a decision was made to build a new passenger terminal at Galeão Air Force Base, which opened in 1952. It was known as Brazil‘s major international airport by 1970. Major extensions were built but in 1985 São Paulo/Guarulhos– Governador André Franco Montoro International Airport had a new runway built for intercontinental flights with no weight restrictions and this attracted more international flights and the airport in Rio de Janeiro lost its fame as the main international airport in Brazil, yet today it is one of the main ones.

Some other main international airports in Brazil are Congonhas-São Paulo Airport (located in São Paulo), Brasília International Airport (located in Brasília), Tancredo Neves International Airport (located in Belo Horizonte) and Santos Dumont Airport (located in Rio de Janeiro). Empresa Brasileira de Infraestrutura Aeroportuária or more commonly called Infraero is a Brazilian government operation responsible for managing the main Brazilian commercial airports. It administers and operates São Paulo/Guarulhos–Governador André Franco Montoro International Airport and Rio de Janeiro/Galeão–Antonio Carlos Jobim International Airport among others.

DAESP - Departamento Aeroviário do Estado de São Paulo is responsible for the operation of 32 public airports in the states of São Paulo. Some other of the busiest airports in Brazil are operated by Terminais Aéreos de Maringá - SBMG S.A. Due to a need for funding to do renovations on major airports, there are negotiations for privatization by private companies of some of the airports operated by Infraero but Infraero will retain shares in the airports that are privatized. The availability of buses and/or taxis or car rental is common at most of the busiest airports, to transfer passengers into the cities.

Economic system of Brazil

Brazil has one of the world's largest economies, with well-developed agricultural, mining, manufacturing, and service sectors. Vast disparities remain, however, in the country's distribution of land and wealth. Roughly one fifth of the workforce is involved in agriculture. The major commercial crops are coffee (Brazil is the world's largest producer and exporter), citrus fruit (especially juice oranges, of which Brazil also is the world's largest producer), soybeans, wheat, rice, corn, sugarcane, cocoa, cotton, tobacco, and bananas. Cattle, pigs, and sheep are the most numerous livestock, and Brazil is a major beef and poultry exporter. Timber is also important, although much is illegally harvested.

Brazil has vast mineral wealth, including iron ore (it is the world's largest producer), tin, quartz, chrome ore, manganese, industrial diamonds, gem stones, gold, nickel, bauxite, uranium, and platinum. Offshore petroleum and natural gas deposits discovered in the early 21st cent. could also make the nation a significant oil and gas producer, but development has been slow and below expectations. There is extensive food processing, and the leading manufacturing industries produce textiles, shoes, chemicals, steel, aircraft, motor vehicles and parts, and machinery. Most of Brazil's electricity comes from water power, and it possesses extensive untapped hydroelectric potential, particularly in the Amazon basin.

In addition, Brazil's exports include transportation equipment, iron ore, soybeans, footwear, motor vehicles, concentrated orange juice, beef, and tropical hardwoods. Machinery, electrical and transportation equipment, chemical products, oil, and electronics are major imports. Most trade is with China, the United States, Argentina, and Germany. Brazil is a member of Mercosur.

Brazil‘s average tariff rate is 7.9 percent. Brazilians are not allowed to import used clothing or cars. Foreign investment in several sectors of the economy is limited by the government. Banking and capital markets are increasingly diversified and growing. However, the role of the state in credit markets has also steadily expanded, and public banks now account for 50 percent of total loans to the private sector.

Political system in Brazil

Despite having endured centuries of political unrest and discrimination, even slavery, Brazil now enjoys the political rule of a democratic government. This type of rulership means that those in power are elected by the residents of the country, who will vote in formal elections for one of a number of different parties. This gives each individual that is of a voting age an equal opportunity to affect his or her own country.

At present, voting is compulsory for all Brazilian residents that are literate and between the ages of 18 and 69 years. Anyone that is 16, 17 or over 69 years of age, or is illiterate can choose to vote, but is not under obligation to do so. The government of Brazil is divided into the 1) executive branch, 2) legislative branch and 3) judicial branch. There are 27 states and more than 5 500 individual municipalities, each of which is run by a mayor.

Executive Branch The president is elected via ballot votes and he or she will hold executive power. The president‘s term is four years.

Legislative Branch The National Congress holds legislative power and is made up of: - The Federal Senate (81 members, elected by a system of proportional representation, in position for a term of four years) - Chamber of Deputies (513 members, elected by a direct ballot for a term of eight years. These ones have districts assigned by proportion to the population) Each state in Brazil is assigned a governor and an elected legislature.

Judicial Branch The Supreme Federal Tribunal exercises the ultimate judicial power. Each of its judges is elected by the tribunal members and their term is life-long. The judicial system is responsible for contesting and supporting any decisions made by the government that will affect the rights of Brazil‘s individual residents. This gives the judicial system a huge amount of power within the legal system of Brazil.

Since Brazil became a democracy in the 1980‘s, several coalition parties have been in power; namely, the Party of Brazilian Social Democracy (PSDB), the Liberal Front Party (PFL), and the Party of the Brazilian Democratic Movement (PMDB). There are other smaller parties that oppose this alliance, but these are very much in the minority.The PFL represents Brazil‘s conservative front, while the Communist Partyof Brazil (PC) maintains extreme opposition to the present-day government.

The government of this South American country plays an integral role in controlling many sectors of the economy because of their perceived strategic value and strategy. Some of these sectors include power generation and telecommunications. Privatisation is one of the initiatives taken to do away with such monopolies.

More than 60% of the revenue of the government is from tax payments. These are not only personal taxes, but also government taxes on corporation income, financial operations, fuels, real estate, and so on.

2. INTERNATIONAL TRADE & INVESTMENT THEORY

Nissan is one of the largest automakers in the world. Nissan Motor Co. Ltd. was established in 1993 in Yokohama City, Kanagawa, Japan. The time when the production was based only in Japan is left in the past. Today, the manufacture of Nissan Motor Company is based in 20 countries around the world.

Foreign direct investment (FDI) of Nissan will be analyzed using Eclectic, International Product Life Cycle and Strategic Trade theories.

Eclectic Theory (OLI)

Ownership Advantage: Nissan brand is recognizable all over the world. That fact enables the company successfully enter new markets. The company is famous for the innovative high quality cars offered at a moderate price. This is mainly due to high technology used in production, unique design development and perfect management of the company.

Location Advantage-Sunderland, England

There are number of obvious advantages for Nissan to allocate investment in the United Kingdom:

The exchange rate which is the Pound is weak against euro and yen. European market where the market of Europe is emerging now, especially for the electric and zero-emission car industry. The economic and political advantage and the UK government policy which the UK government introduced the policy that made drivers eligible for £5,000 electric car grant

Internalization Advantage.

For Nissan FDI in their factories is extremely important to control the production process and the quality of products. Efficiency of the Sunderland factory might be also the result of the direct investment. Moreover, this factory produce for Europe region, which is a growing market with high potential. Thus, the product satisfaction of the customers is the first priority of the company.

International Product Life Cycle Theory

For the analysis electric zero-emission car Leaf will be used.

Nissan Leaf concept was presented on Tokyo Motor Show in 2009. After a year the model was officially unveiled and the sales started in Japan and USA. Leaf even became World Car of the year 2011. Today, it is the most popular electric car in the world. More than 50,000 cars were sold in Japan, US and Europe. In the nearest future the Leaf will be produced in the UK and the USA. The Nissan Leaf was even chosen as the police car in West Midlands, UK. This information about growing popularity and decreasing demand for the product indicates that the product remains in the Growth Stage.

International Investment Theory

In modern time a company not only operates in a local area or inside a state but also a famous multinational company conducts its operation worldwide. Initially, a business organisation starts its business in a small field. Gradually, it expands business in different areas.

To do worldwide business a company follows certain rules and regulations that are helpful for the development of their business. When a company becomes successful in their country of origin they try to make a world market. A multinational company put forward their ideas in accordance with international trade.

When the company is in operation outside the domicile state they are bound to follow the rules and regulations of international business. To develop business different companies use different policies and/or strategies.

In the given scenario, Nissan Motor Company used the international investment theory. In this regard it is to be mentioned here that Nissan Motor Company is the second largest carmaker in Japan.

The company has been doing business in Japan and it was their long-term intention to start business somewhere in the European Union. On the basis of the theory of international trade the company began their investment in the United Kingdom in 1984. The main purpose of the business was to supply the cars to the European countries from United Kingdom instead of the cars manufactured in Japan with the aim of capturing European market. It was thought that it would be difficult for the company to supply the vehicles from Japan to the European market and bearing that in mind the company reviewed different areas of the Europe and finally decided to start business in Sunderland.

It can be said that as Japan is specialised in manufacturing cars they can trade those cars to other countries. On the basis of that theory the Nissan Motors set up their business in Sunderland, UK. At the time of deciding to build a production plant Nissan Motor Company took into consideration the high employee generous in permitting Nissan to set up their business it was largely criticised by some European leaders. It is mentionable here that the French President called Britain as ‗Japanese aircraft carrier sitting off the coast of Europe.

3. LEGAL&POLITICAL LEGAL REQUIREMENT IN THE HOST COUNTRY

Taxes in China

For more than 30 years since the beginning of the reform and opening up, the taxation system of China has gone through several major reforms, and been improving day by day. In the early days of the reform and opening up, the adaptation to the requirements of opening up and the establishment of foreign-related taxation system are made as the breakthrough points of tax reform. In 1983 and 1984, the reform of "substitution of tax payment for profit delivery" on the state owned enterprises was carried out in two phases, which established the distribution relations between the State and the enterprises within the taxation system. In 1994, China implemented a tax reform with the largest scale, widest scope, most significant effectiveness and furthest-reaching influence since the foundation of new China. This reform focused on the goal of the establishment of socialist market economy system, and actively established the taxation system that met the requirements of socialist market economy system. Since 2003, in accordance with the requirements of the scientific outlook on development, and with the focus on the improvement of socialist market economy system and the goal of building a moderately prosperous society in all respects, China has implemented a series of tax reform in several phases, such as the rural tax and fee reform and the improvement of goods and service tax system, income tax system and property tax system, and the reform on export rebate mechanism. After several reforms, for the present, China has 19 tax categories, i.e. value added tax, consumption tax, business tax, enterprise income tax, individual income tax, resource tax, urban and township land use tax, house property tax, city maintenance and construction tax, tax on the use of arable land, land appreciation tax, vehicle purchase tax, vehicle and vessel tax, stamp tax, deed tax, tobacco leaf tax, customs duty, tonnage dues, and fixed assets investment orientation regulatory tax. Of which, 17 tax categories are to be collected by tax authorities; the fixed assets investment orientation regulatory tax was suspended to be collected as from 2000 as determined by the State Council; customs duty and tonnage dues are to be collected by the customs, in addition, the import value added tax and import consumption tax are to be withheld by the customs.

(1) Value Added Tax The value added tax ("VAT") is imposed on the entity and individual engaged in marketing goods, providing processing, repair or replacements services or importing goods within China. The VAT taxpayer is classified into the general taxpayer and the small-scale taxpayer. As for the general taxpayer, the VAT is imposed on the increment value of its sale (or import) of goods or provision of processing, repair and/or replacements services, the basic tax rate is 17%, the lower tax rate is 13%, and the tax rate for export goods is 0; as for the small-scale taxpayer, a simplified system of computation of tax payable is applied, and the rate is 3%. Generally, the prescribed time limit for paying VAT is 1 month. In addition, based on the amount of VAT payable by the taxpayer, there are other six types of the prescribed time limit for paying VAT, i.e. 1 day, 3 days, 5 days, 10 days, 15 days and 1 quarter, of which the prescribed time limit of 1 quarter only applies to the small-scale taxpayer. The taxpayer shall file tax returns within the period from the 1st day to the 15th day of the next month, and in case tax cannot be paid on the basis of the time limit, the taxpayer may pay tax on each transaction.

(2) Consumption Tax The consumption tax is imposed on the entity and individual engaged in producing, consigned processing, or importing taxable consumer goods within China. The taxation scope covers 14 tax items such as tobacco, alcoholic drinks and alcohol, cosmetics, jewelry and precious stones. The consumption tax payable is assessed respectively under the rate on value method or the amount on volume method on the basis of the volume of sales or the quantity of sales in respect of the taxable consumer goods, in accordance with the tax items specified by the tax laws. The prescribed time limit for paying consumption tax is the same as that for VAT.

(3) Business Tax The business tax is imposed on the entity and individual engaged in providing taxable services, transferring intangible assets or selling immovable property within China. The taxable services cover 7 tax items, such as transportation industry, building industry, and finance and insurance industry。The business tax payable shall be calculated on the basis of the business turnover, amount of transfer or sales volume in respect of the taxable services or taxable activities at the statutory tax rate. The tax rate applicable to entertainment industry is 20%, except that the tax rate applicable to the billiards clubs and bowling halls in such industry is 5%; the tax rate applicable to all the other tax items is 3% or 5%. The prescribed time limit for paying business tax is the same as those for VAT and consumption tax.

(4) Enterprise Income Tax All enterprises and other income receiving organizations (excluding sole proprietorship enterprises and partnership enterprise) within China shall be the taxpayers of the enterprise income tax. The enterprises are classified into resident enterprises and non-resident enterprises. Resident enterprises shall pay the enterprise income tax for their income sourced within and outside of China. Non-resident enterprises shall pay the enterprise income tax as determined on the basis of whether they have organizations or establishments within China, and whether the income is in fact related to such organizations or establishments. In terms of the enterprise income tax, the balance derived from the total income of an enterprise in each tax year after deducting the tax-free income, tax-exempt income, other deductible items as well as the permitted carry-forward loss of previous year(s) shall be the taxable income. The tax rate is 25%. Enterprise income tax shall be calculated on the basis of a tax year which shall commence on January 1 and end on December 31 of each calendar year. Provisional enterprise income tax shall be paid in advance on a monthly or quarterly basis, finally settled at the end of the year, refunded for any overpayment or supplemented for any deficiency. In other words, an enterprise shall, within 15 days after the end of each month or quarter, submit provisional enterprise income tax returns and make provisional tax payments to the tax authority. The enterprise shall submit an annual enterprise income tax return to the tax authority and settle the amount of tax payable or refundable within 5 months after the end of each year.

(5) Individual Income Tax The individual income tax is imposed on the taxable income derived by individuals (including 11 taxable items, such as the income from wages and salaries derived by the individuals, the income from production, operation derived by individual industrial and commercial households). A progressive tax rate of 7 levels from 3% to 45% is applied to the income from wages and salaries, a progressive tax rate of 5 levels from 5% to 35% is applied to the income from production and business and the income from contracted or leased operation of enterprises or undertakings derived by individual industrial and commercial households (note: which is similarly applied to the investors of sole proprietorship enterprises and partnership enterprises), and a flat tax rate of 20% is applied to all the other types of income. From September 1, 2011, in terms of the income from wages and salaries, the standard monthly deduction for expenses is increased from RMB 2000 to RMB 3500. The prescribed time limit for paying individual income tax is as follows: the tax withheld by the withholding agent on monthly basis, and the tax to be paid by the self-reporting taxpayer on monthly basis, shall be paid to the state treasury within the first 15 days of the following month; in terms of the income from production or business operation derived by individual industrial and commercial households, the tax payable shall be computed on annual basis, and the provisional income tax shall be paid in advance on a monthly basis, settled and refunded for any overpayment or supplemented for any deficiency within 3 months after the end of each tax year; in terms of the income from contracted or leased operation of enterprises and undertakings, the tax payable shall be computed on annual basis and paid to the state treasury within 30 days after the end of each tax year; in terms of the taxpayers who derive income outside China, the tax payable shall be paid to the state treasury within 30 days after the end of each tax year. The taxpayers who have an income of over RMB 120,000 in any tax year shall file the tax returns themselves with the tax authorities within 3 months after the end of each tax year.

(6) Resource Tax The resource tax is imposed on the entity and individual engaged in exploiting various taxable natural resource. The taxation scope covers 7 major categories, i.e. crude oil, natural gas, coal, other non-medal ores, ferrous ores, non-ferrous ores and salt. The resource tax is collected under the rate on value method and the amount on volume method. The resource tax rate applicable to crude oil and natural gas products is 5% to 10% of the sales volume. In terms of the resource tax, the tax amount standard for other tax items varies from RMB 0.3/ton to RMB 60/ton, depending on the kinds and locations of the resources.

(7) Urban and Township Land Use Tax The urban and township land use tax is imposed on the land in cities, county towns, administrative towns and industrial and mining districts. The tax shall be levied on the entities and individuals who use the land on the basis of the actual area of the land used at the specified tax amount. The tax amount standard is determined on the basis of big cities, medium-sized cities, small cities and county towns, administrative towns and industrial and mining districts, ranging from RMB 0.6 to 30/m2. The urban and township land use tax is calculated on a yearly basis and paid in installments. The prescribed time limit for paying the tax is to be determined by the people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government in light of the local actual situation.

(8) House Property Tax The house property tax is imposed on the houses within the cities, county towns, administrative towns and industrial and mining districts. The tax is calculated on the basis of the residual value or the rental income of the house property. The taxpayers include the house property owners, managing entities of the houses (which are owned by the whole people), pawnees, custodians and users. The tax rate is classified into two categories: where the tax amount payable is calculated on the basis of the residual value of the house property, the applicable tax rate is 1.2%; where the tax amount payable is calculated on the basis of the rental income of the house property, the applicable tax rate is 12%, however, where individuals lease their residential houses at the market price, the applicable rate is 4%. The house property tax is collected on a yearly basis and paid in installments. As from January 1, 2009, foreign-invested enterprises, foreign enterprises and organizations, and foreign individuals (including Hong Kong, Macau and Taiwan-funded enterprises and organizations, and the compatriots of Hong Kong, Macau and Taiwan) shall pay the house property tax in accordance with the Provisional Regulations on House Property Tax of the People's Republic of China.

(9) City Maintenance and Construction Tax The city maintenance and construction tax is imposed on the entities and individuals who pay value added tax, consumption tax and business tax. The tax is calculated on the basis of the value added tax, consumption tax and business tax actually paid by the taxpayer. There are 3 levels of tax rate applied on the basis of the taxpayer's location, i.e. 7% (urban area), 5% (county towns, towns) and 1% (areas other than the urban area, county towns or towns). The city maintenance and construction tax shall be paid respectively together with value added tax, consumption tax and business tax.

(10) Tax on the Use of Arable Land The tax on the use of arable land is imposed on the entities and individuals who use the arable land to build houses or for other non-agricultural construction purposes, and is collected on the basis of the area of the arable land used. The tax amount standard ranges from RMB 5 to 50/m2. The taxpayer shall pay the tax on the use of arable land within 30 days upon the approval by the land administration department on the use of land.

(11) Land Appreciation Tax The land appreciation tax is imposed on the increment value of the transfer of State-owned land use rights, above-ground structures and their attached facilities, and is collected at the specified tax rate. There are four level progressive rates, i.e. 30%, 40%, 50% and 60%. The taxpayer shall file the tax returns with the competent tax authority where the real estate locates within 7 days upon the execution of the real estate transfer contract, and pay the land appreciation tax within the time limit designated by the tax authority. Where the land appreciation tax is able to be calculated due to the involvement of cost determination or other reasons, the provisional land appreciation tax may be collected in advance, settled after the completion of the project, and refunded for any overpayment or supplemented for any deficiency.

(12) Vehicle Purchase Tax The vehicle purchase tax is imposed on the entities and individuals who purchase the taxable vehicles, such as cars, motorcycles, trams, trailers and agricultural transport vehicles. The vehicle purchase tax is calculated under the rate on value method, and the tax rate is 10%. The price for tax assessment is the total amount of the price and other charges in addition to the price paid by the taxpayer to the seller for the purpose of purchasing the taxable vehicle (excluding value added tax); the State Administration of Taxation will provide for the minimum price for tax assessment of the taxable vehicles of various types by reference to the average market transaction price of the taxable vehicles. Where the taxpayers purchase the taxable vehicles, they shall file the tax returns and pay up the tax amount payable in a lump sum within 60 days upon the purchase.

(13) Vehicle and Vessel tax The vehicle and vessel tax is imposed on the vehicles and vessels within China, which shall be registered with the regulatory departments in accordance with the law, and shall be paid by the owners or managers of the vehicles and vessels. There are six major tax items, such as passenger vehicles and commercial vehicles. The annual tax amount standards of the tax items vary from RMB 36 - 5400/vehicle, or from RMB 3 - 60/ton in terms of dead weight (net tonnage), or from RMB 600 - 2000/m in terms of the length of yacht body. The vehicle and vessel tax shall be filed and paid on a yearly basis.

(14) Stamp Tax The stamp tax is imposed on the entities and individuals executing or accepting the taxable instruments specified in tax laws during the economic activities and exchanges. In terms of the stamp tax, the tax amount payable shall be calculated at different proportionate tax rates in respect of the contract price or on the basis of a fixed amount per instrument, in the light of the nature of the taxable instruments. There are four levels of proportionate tax rates, i.e. 1‰, 0.5‰, 0.3‰and 0.05‰. For instance, in terms of purchase and sale contract, the proportionate tax rate is 0.3‰of the value of the purchase and sale; in terms of processing contract, 0.5‰of processing fee or contracted receipts; in terms of property leasing contract, 1‰of the lease amount; in terms of loan contract, 0.05‰of the loan amount. In terms of the license or permit, a fixed amount of RMB 5 shall be paid for each instrument. The stamp tax shall be paid in a manner that taxpayers shall, in accordance with the provisions, calculate the tax amount payable, purchase and affix at one time the full corresponding amount of tax stamps. In terms of the equity transfer instrument, the stamp tax shall be respectively paid by the parties to such instrument at the rate of 3‰in respect of the amount calculated on the basis of the actual transaction price on the securities market upon the date of execution of such instrument.

(15) Deed Tax The deed tax is imposed on the land and houses the titles to which are transferred through such means as transfer, assignment, purchase or sale, gift or exchange, and shall be paid by the entities and individuals who are the transferees. Where the land or houses are the subjects of the transfer, assignment, purchase or sale, the tax shall be calculated on the basis of the transaction price; where the land or houses are the subjects of gifts, the tax shall be assessed by the collection authority; where the land or houses are the subjects of exchanges, the tax shall be calculated on the basis of the difference between the exchange prices. The tax rate is from 3% to 5%. The taxpayer shall file the tax returns within 10 days upon the occurrence of the tax payment obligation, and pay the tax within the time limit specified by the deed tax collection authority.

(16) Tobacco Leaf Tax The tobacco leaf tax is imposed on an entity that engages in the purchase of tobacco leaves (including aired tobacco leaves and baked tobacco leaves) within China, and shall be calculated on the basis of the sum as generated from tobacco leaf purchases at the tax rate of 20%. The taxpayer shall file the tax returns within 30 days upon the occurrence of the tax payment obligation. The prescribed time limit for paying the tax shall be determined by the competent tax authorities.

It shall be noted that, notwithstanding the 19 categories of tax provided for in the tax laws of China (including customs duty and tonnage dues), not every taxpayer has to pay all of them. Only if the taxpayers have the taxable activities specified by the tax laws, they are required to pay relevant taxes, and in case of no such taxable activities, they are not required to pay relevant taxes. According to actual situation, the enterprises with relevant larger scale and wider business scope may be involved with about 10 tax categories, while most of the enterprises only pay 6 - 8 tax categories.

Entry/Exit Requirements

A valid passport and visa are required to enter China and must be obtained from Chinese Embassies and Consulates before traveling to China. Americans arriving without valid passports and the appropriate Chinese visa are not permitted to enter and will be subject to a fine and immediate deportation at the traveler's expense. Travelers should not rely on Chinese host organizations claiming to be able to arrange a visa upon arrival. Chinese Authorities have recently tightened their visa issuance policy, in some cases requiring personal interviews of American citizens and regularly issuing one or two entry visas valid for short periods only.

Visas are required to transit China. Persons transiting China on the way to and from Mongolia or North Korea or who plan to re-enter from the Hong Kong or Macau Special Administrative Regions should be sure to obtain visas allowing multiple entries. Permits are required to visit Tibet as well as many remote areas not normally open to foreigners.

For information about landing visa requirements and other entry requirements and restricted areas, travelers may consult the Embassy of the People's Republic of China (PRC) at 2300 Connecticut Avenue N.W., Washington, D.C. 20008, or telephone (1-202) 328-2500, 2501 or 2502. For a list of services and frequently asked visa questions and answers, travelers can view the Chinese Embassy's web sites at http://www.china-embassy.org/. The Chinese Embassy‘s visa section may be reached by e-mail at [email protected]. There are Chinese Consulates General in Chicago, Houston, Los Angeles, New York, and San Francisco. Americans traveling in Asia have been able to obtain visas to enter China from the Chinese visa office in Hong Kong and the Embassy of the People's Republic of China in Seoul, South Korea.

Americans who overstay or otherwise violate the terms of their Chinese visas will be subject to a maximum fine of 5,000 RMB (approximately $600) and departure delays and may be subject to detention. Travelers should note that international flights departing China are routinely overbooked, making reconfirmation of departure reservations and early airport check-in essential. Passengers must pay a RMB 90 airport user fee (approximately $11 US) when departing China on international flights and RMB 50 airport fee (approximately US $6.10) for all domestic flights.

In an effort to prevent international child abduction, many governments have initiated special procedures at entry/exit points. These often include requiring documentary evidence of relationship to the person traveling with the child and permission for the child's travel from the parent(s) or legal guardian not present. Having such documentation on hand, even if not required, may facilitate entry/departure. Please refer to Traveling with Children for detailed information.

Political Risk

Political risk in China is relatively low compared with other emerging markets, but legal and regulatory transparency is a key risk for foreign companies in the region.

―The political risk situation in China is interesting because while there is stability with the one-party system, there is also very little transparency in rules and other aspects of doing business, which make it challenging for a foreign investor,‖ said Corina Monaghan, New York-based vp of the political risk practice at Aon Risk Solutions, part of Aon Corp.

Transparency is a huge issue in China and is perhaps the biggest single issue for foreign companies, said Andrew Gilholm, Shanghai-based political and security risk analyst for global risk consultancy Control Risks Group Holdings Ltd. For example, corporate filings and accounts can't be treated in the same way as those in the U.S. or Europe, and there are many conflicts of interest within or between companies, buyers, suppliers, etc. Regulatory transparency is particularly an issue for strategic or politically sensitive sectors like high tech and commodities. Regulations can change quickly, and there can be inconsistency in their application, said Mr. Gilholm.

By emerging market standards, China is a fairly stable and predictable business environment, said Mr. Gilholm. ―Many companies are increasingly savvy to operating in China and rarely experience severe problems, unless they get into dispute with a Chinese partner or are involved in a politically sensitive sector,‖ he said.

China is not a political risk hot spot, with little political violence, business interruption, strikes or riots, said Mr. Gilholm.

However, there has been a rise in political violence in China as the country feels the pain of a recession in the global economy and because of an income disparity between urban and rural communities, said Ms. Monaghan. But actual physical damage to foreign assets appears to be minimal so far, as civil unrest has not targeted foreign businesses, she said.

There has been rising social unrest in China, but it typically remains localized and related to land, labor or environmental disputes, said Mr. Gilholm.

―Widespread civil unrest in China is not likely in the short to medium term, because there are no signs of divisions in the ruling Communist party or the downturn in the economy becoming really destabilizing, two key ingredients for political upheaval,‖ he said.

China also is relatively low risk for security and crime, said Mr. Gilholm. But while crime rates are relatively low, intellectual property risk remains problematic.

―Chinese authorities periodically clamp down, but piracy and counterfeiting always come back, and industrial espionage is still an issue. (Intellectual property) is still one of the top risks of concern to foreign companies in China,‖ he said.

There still are many cases of corruption, bribery and gift giving that would not be compliant with international bribery and corruption laws. However, corruption in China is not unusual by the standards of other emerging markets, he said.

Contract frustration is a key issue for companies in China, said Mr. Gilholm. ―Enforcing a contract in China can be difficult. Even enforcing a favorable court ruling can be problematic when dealing with certain sectors or with state-owned parties. Companies tend to think twice before entering into a dispute or legal action over a contract if it has a long-term interest‖ in China. There are huge discrepancies in legal treatment between courts depending on geographical location, said Mr. Gilholm. For example, courts in Beijing and Shanghai generally operate to higher standards than less-developed cities, and provincial capitals are usually better than, say, courts at a township level.

Investors in China are keen to buy insurance against the risks of political violence and expropriation, said Ms. Monaghan. More recently, there has been interest in buying inconvertibility/exchange transfer insurance, in particular with reports that some companies have had difficulties repatriating dividends or proceeds related to divesting their business in China, due to government interference, she said.

However, political risk insurance capacity in China has been hard to find, said Ms. Monaghan.

―China is the biggest recipient of foreign direct investment, but the supply of political risk insurance has not met the high demand—which has resulted in more expensive capacity,‖ she said. ―Insurers are concerned with their potential recovery after claims are paid, and they contemplate the overwhelming task of dealing with issues like red tape and an opaque system that would be part of the recovery process in China.‖

United States

1) Income Tax

The federal government of the U.S collects tax on your income. Additionally, most states and some local government have their own income taxes.

2) Sales Tax

In many states, whatever you buy most items, you will be charged a sales tax. Sales tax percentages vary among different states and a few states have no sales tax. States with no state income tax have higher sales tax. Merchant are responsible for collecting sales tax and depositing it with the states authority. Not all products in all states are subject to sales tax. In some states, there is no sales tax on food and clothing.

3) Property Tax

If you live in apartment, you don‘t have to worry about property or real estate tax. The states with no states income tax have a very high property tax rates. Tax rates may vary based on city, town, or country. You will be charged property taxes based on the assessed value of your property. The value will be assessed by the tax authority itself and may not be the same as the market value of the property and may be lower or higher based on the real estate market. Property essentially helps pay for public schools, community colleges, and other local government matters.

4) Estate Tax, Gift Tax

Your estate is the property you leave behind when you die. If you leave behind more property over $ 2 million in assets for a single person (over $4 million in assets for married couples), you need to consult an attorney for estate planning and to have your will drafted appropriately. Actual amount that is not subject to estate taxes change over time. Of course, no one plans to die, but if you die unexpectedly, you want your property taken care of and would probably prefer that your country clerk didn‘t handle it.

5) Hotel Tax

Most hotels charge tax on top of their regular room rate. Some hotel also charges a luxury tax, occupancy tax, and city ax. These taxes may sometimes add up to as much as 25% of the total bill. Therefore, when you make reservations, you should try figure out the final rate after taxes have been added.

6) Sin Tax

Item like cigarettes and alcohol are subjected too much higher taxes. This is to help discourage people from consuming such items. The Government uses this money to help promote the reduction of consumption and help people suffering from detrimental consequences of using them.

3.2.2 United States

1) Biometric Information

All new UK passports are required to include an integrated circuit chip capable of storing biometric information from the data page in the passport, a digitized photograph and any other biometric information that may become standard in travel documents. Nb. This requirement will only apply to new passports issued after 26th October 2006 and will only apply to current passports with expiry dates after that date, when they are due for renewal.

2) Finger Scanning & Facial Recognition

All Visa Waiver Passengers will be finger scanned and their pictures taken upon arrival in the USA. This will take place during the inspection with US Customs & Border Protection who will use an inkless digital finger scanner to electronically capture either, the left & right index fingers of the traveller or a full scan of all fingers. A digital photograph of the traveller will also be taken. The process usually takes an average of 15 seconds and should not inconvenience or delay arrival into the USA.

3) Machine Readable Passport

British citizen passport holders intending to travel to the US under the Visa Waiver Program are required to present an individual machine-readable passport (MRP) upon entry into the USA at Customs & Border Protection. Those travelling without an MRP will need to apply for a valid USA entry Visa. This applies to both adults and children, each of whom must have a personal MRP to enter the United States under the VWP.

The MRP has been issued in the UK since 1988 and as a standard UK Passport is issued for ten years, and then most UK travellers will now be using the small, red, MRP and already meets this requirement. However there are two main exceptions:

• Passports issued by British Embassies overseas, whether the old style blue or the newer maroon versions may not be machine readable and any traveller holding such a passport, who would otherwise qualify for the Visa Waiver Programme, needs to either renew their passport for a MRP version or to obtain a US Visa.

• Children must have their own MRP to travel to the USA but as all children, from infants in arms to sixteen years, have been required to hold their own UK passport since Oct 15th 1998, and then many young travellers already meet this requirement. However, children born prior to 1998 who are still included in the passport of either of their parents will not be allowed to enter the USA without their own MRP.

4) First Night’s Accommodation

An I-94W form must be completed by all foreign nationals and presented to US Customs & Border Protection Authorities at the first point of entry into the United States – however see also Note 9 (ESTA) above.. Arriving visitors have to provide an accurate address of the place that they intend to stay on their first night in America and it is not acceptable to show ‗touring‘ if on a fly-drive holiday, or ‗staying with relatives‘.

Additionally, this same information will also need to be in the airline booking system when the aircraft departs the UK and will be sent, ahead of arrival, to US Customs & Border Protection officials at the destination airport. The airline will collect the data (called APIS) at time of booking. The address recorded in the airline booking system and the address shown on the I-94W completed by the visitor en-route, must be identical and may be checked by US Customs & Border officers upon arrival to ensure that the information matches.

5) Indefinite Visas

"Indefinite‖ B-1 / B-2 visas issued more than 10 years ago are no longer valid. British Subjects British subjects (ie. not Citizens) are not eligible to travel visa free under the Visa Waiver Program and require visas to travel to the United States.

6) US Visas

US Visas cost £60. B-1 / B-2 visas can be issued with a maximum validity of 10 years. Depending on demand, appointments for visa interviews may take some time to arrange and travellers should call the US Embassy‘s Live Operator Information Service on 09042 450100 (Calls charged from £1.20 per minute depending on phone used) for an appointment as far ahead as possible of the planned departure date.

7) Passengers in Transit

British citizens travelling on UK passports may be eligible to transit the United States under the Visa Waiver Program. However if they do not qualify for

visa free travel then they will require transit visas.

8) Minors Travelling With Adults Other Than Their Parents

Minors and children travelling with adults other than their parents will be required to provide an authorization to travel from one of the parents to enter the USA. A recommended authorization form is available from the US Embassy website at http://london.usembassy.gov/

9) Baggage Security Checks

Screening of passenger‘s baggage includes opening luggage on departure from the USA after check in and therefore leaving bags unlocked will avoid the potential need for them to be opened forcibly. However travellers may be provided with free, padlock- like seals that screeners can snip open if a search is necessary but, if unavailable, travellers are advised to use cable or zip ties as an alternative to baggage locks. If a checked bag is searched, a statement to that effect will be inserted in the bag to notify the owner and the bag will be re-sealed. Travellers are advised to check with their baggage insurance provider to ensure that such measures do not affect their policy.

The following packing tips are advisable but for other tips, check out www.tsatraveltips.us • Do not pack food or beverages in checked bags • Pack footwear on top of other contents • Put personal belongings in clear plastic bags to reduce chances of a TSA screener having to handle them and spread books out - do not stack books • Do not place film in checked bags, because screening equipment will damage it • Leave gifts unwrapped should screening require them to be opened • Put scissors, pocket-knives and other sharp items in checked bags; never carry on.

Visa and security requirements can be subject to frequent and sudden change. It is therefore important that travel representatives and the travelling public check the Embassy‘s public information regularly and well in advance of their planned travel date. Go to www.usembassy.org.uk for current information

THAILAND

3.0 Legal & Political

3.1 TAX 1. Income Tax Income under this head includes gross income from sale or disposal of petroleum gross income arising from transfer of any property, Any other income arising from conducting petroleum business value of petroleum delivered as a royalty payment to the government

2. Double Tax Treaties Petroleum income tax is charged on net profit at the rate of 50% after allowing deductions. The tax treaties entered by the Thai Government are mainly concerned with the avoidance of double taxation. The principle of Double Taxation Avoidance is that a person will not be subjected to tax in another country where he resides if he is already paid the tax in the country where he earns the income. It saves the person from paying tax twice. The treaty aims at providing for cooperation between governments in preventing the evasion of taxes. The scope of the Thai tax treaties covers taxes on income and on the capital of individual and juristic entities. The provisions of these tax treaties minimize or exempt certain types of income from taxation.

3. Value Added Tax In Thailand The Value Added Tax (VAT) is generally imposed to goods and services supplied in or imported into Thailand. VAT includes municipal tax, which is charged at the rate of one-ninth of the VAT rate. Under the tax regime, value added at every stage of the production process is subject to tax. This tax affects: Producers, providers of services, wholesalers, retailers, exporters and importers. A zero per cent rate applies to certain businesses, for example, the Export of Goods or Services, international transportation by sea or air, and the sale of goods and services to United Nations- related organizations.

4. Specific Business Tax In Thailand This tax is imposed on certain types of businesses whose value added is difficult to define such as banking, finance, life insurance, pawnshops, and real estate. Such businesses are considered to be outside the VAT system and therefore are not subject to VAT. Specific business tax is computed on monthly gross receipts which do not include municipal tax.

5. Stamp Duty Tax Stamp duty can be imposed on the instruments listed in the Stamp Duty Schedule of the Revenue Code at different rates specified therein. The instruments are such as promissory notes, bills of exchange, powers of attorney, letters of credit, etc. If the instrument is executed in Thailand, the stamp duty is due within 15 days after the execution date. However, if the instrument is executed outside Thailand, the stamp duty is due within 30 days after arrival of the instrument in Thailand EXCISE TAX This tax is imposed mainly on luxury items such as gasoline and petroleum products, tobacco, liquor, soft drinks, playing cards, crystal glasses, etc. Excise tax will be computed according to the Excise Tax Tariff on an ad valorem basis or at a specific rate, whichever is higher. All goods subject to excise tax also remain subject to VAT. The excise tax is collected by the Excise Department and usually imposed at the time of delivery of the goods from factories.

6. Customs Duty Tax Customs duty is mainly imposed on import and some export goods specified in the Customs Tariff statute. Exported goods that are subject to customs duty include rice, rubber, leather, and teak. In general, the invoice price is the basis for computation of duty and normally applied to CIF (Cost, Insurance, and Freight) value for import and FOB (Free On Board) for export. Thailand being a member country of the General Agreement on Tariffs and Trade (GATT) and the World Trade Organization (WTO) adopts practices and standards in accordance with the GATT codes in determining customs price

3.2 Entry Requirement

Passports:

To enter Thailand, a passport valid for six months is required by all nationals referred to in the chart above. Travellers coming from or have recently travelled through yellow fever-infected areas may be required to show a yellow fever vaccination certificate before being allowed to enter Thailand.

Visas:

Visas for Thailand are not required by all nationals referred to in the chart above for touristic stays of up to 30 days if entering via an international airport. If entering by land, you will usually be granted a stay of 15 days. All visitors must hold valid passports, sufficient funds and confirmed airline tickets to leave Thailand within the time allowed by their entry stamp. Exceptions to the visa requirements are: 1. Nationals of Bulgaria, Cyprus, Estonia, Latvia, Lithuania, Malta and Romania who may apply for visas on arrival for stays of up to 15 days. 2. Nationals of Croatia, who must apply for a visa in advance from the embassy. The total duration of stay in Thailand for visitors who enter Thailand without a visa cannot exceed 90 days during any six-month period, counting from the date of first entry. If you intend on staying for longer than 30 days on any visit you must obtain a tourist visa for stays of up to 60 days or a non-immigrant visa for stays of up to 90 days.

3.3 Political Risk

A military coup took place in Thailand on 22 May 2014. Political and administrative power is now concentrated in the Military Junta, calling itself the National Council for Peace and Order (NCPO). The NCPO is revising the Thai constitution, strictly censoring all media and social networking sites and has the potential to impose additional elements of martial law, including curfews. There remains some risk that political developments may lead to instability. We advise you keep up to date with the FCO travel advice, monitor the local media, stay in touch with your travel company if you have one and avoid demonstrations.

The political situation in Thailand is unpredictable and sometimes volatile. Over recent years there have been instances of civil and political unrest resulting in large-scale demonstrations and, in some cases, violence. British nationals should exercise caution throughout Thailand and avoid demonstrations or large gatherings, which may turn violent.

Since January 2004, there have been almost daily attacks in the four southernmost provinces of Thailand. These include arson, bombings and shootings. Targets have included civilians and members of the security forces, government offices, tourist hotels, discotheques and bars, shops, marketplaces, supermarkets, schools, transport infrastructure and trains. Over 5000 people have been killed and several thousand more injured. No British nationals have been killed in these attacks, but some foreign citizens have been killed and injured.

Martial law remains in place in the provinces of Pattani, Yala, Narathiwat and Songkhla and we advise against all but essential travel to them.

MALAYSIA

3. LEGAL AND POLITICAL

-TAX

Taxable Income in Malaysia Taxable income actually refers to the ―base upon which an income tax system imposes tax‖. In general, the Lembaga Hasil Dalam Negeri (LHDN) organisation includes all kinds of earnings which the Malaysian taxpayers have to pay for, but which is reduced by expenses and other deductions. Some of them include the following is General Taxable Income: a) Business or Profession b) Employment c) Dividends d) Interest (except bank deposit interest) e) Discounts f) Rent g) Royalties h) Premiums i) Pensions j) Annuities k) Others

Whenever the tax season rolls around (that‘s 1st March to 30th April), there is inevitably a sense of worry amongst the public because there are many financial, technical and even legal considerations to be taken into account when filing in at Lembaga Hasil Dalam Negeri (LHDN or Hasil) or online.

One of our most popular guides on this site last year, the Malaysia Personal Income Tax Guide 2013 – Rates, Exemptions, Rebates is now updated for this year. This guide was written for the January – December 2013 tax year, but we will be sure to update this whenever the Government decides to make any changes throughout 2014. Remember that you file in March/April 2014 for the 2013 calendar year of income and expenses.

Malaysia Personal Income Tax Rates 2014 Two key things to remember: 1. Tax rates are Progressive, so you only pay the higher rate on the amount above the rate (i.e. you will never have less ―net income after tax‖ by earning more!). 2. Tax rates are on Chargeable Income, not salary or total income. Chargeable income is calculated after tax exemptions and tax reliefs (more below). First off, we start with the table for personal income tax rates in Malaysia for the Assessment Year 2013, so everyone would be able to cross-check the tax bracket and the amount of tax needed to pay

Tax Reliefs It is defined as ―an amount that can be deducted from a person‘s annual income to reduce the amount on which tax is paid‖.

To describe it in a more clear and concise manner, it is actually a way for you to lessen your chargeable income.

Let‘s say you took home a monthly paycheck of RM40,000 from your company in 2013 and if there were no tax exemptions or reliefs, your chargeable income will remain the same and your tax for the year would have been in the 11% bracket.

Now say the Government decides that all Residents of Malaysia should get a personal tax relief of up to RM9,000 per year. Your chargeable income will now be RM31,000 which means that your tax would be in the 6% bracket.

Chargeable Income (RM) Calculations (RM) Rate (%) Tax(RM)

0 - 2500 On the first 2,500 0 0

2,501 - 5,000 Next 2,500 0 0

On the first 5,000 0 5,001 - 10,000 2 Next 5,000 100

On the first 10,000 100 10,001 - 20,000 2 Next 10,000 200 On the first 20,000 300 20,001 - 35,000 6 Next 15,000 900

On the first 35,000 1,200 35,001 - 50,000 11 Next 15,000 1,650

On the first 50,000 2,850 50,001 - 70,000 19 Next 20,000 3,800

On the first 70,000 6,650 70,001 - 100,000 24 Next 30,000 7,200

On the first 100,000 Exceeding 100,000 26 13,850 Next RM

Perquisites Perquisites are taxable benefits that can be converted to cash and are given to an employee from his/her employer.

Examples of which include:

1) Bill Claims

If your employer pays your utility, mobile phone, income tax, road tax or car insurance tax bills for you, then the amounts paid are considered to be perquisites and are taxable.

Example: John‘s company pays his RM100 mobile phone bill. Then the amount of RM100 is a perquisite and is taxable 2) Company Credit Card

If your employer provides you with a credit card to make purchases on behalf of the company, but you use that card instead for personal use, then any retail purchases you make including the annual fee of the credit card are considered to be perquisites and are taxable.

Example: Tom uses the company credit card which has an annual fee of RM200, to purchase a flat screen TV worth RM5000 for his home. Then the amount of RM5200 is a perquisite and is taxable.

3) Loan from Company

If your employer provides you with a interest free loan and the source of funds for the loan is derived from extra company funds, then the loan is considered to be a perquisite and is taxable.

Example: Leonard‘s boss grants him an interest free loan of RM6000 using extra company funds. Then the amount of RM6000 is a perquisite and is taxable.

Or if your employer provides you with a loan with funds taken from a third party source such as a bank etc. Then the difference in interest paid by the employee and the employer is considered to be a perquisite and is taxable.

Example: Keith‘s boss gives him a loan with 4% interest using company funds taken from a local bank. The bank in turn, charged the company 8% interest for the initial loan. If the company paid a total of RM900 of interest payments to the bank while Keith paid a total of RM460 in interest payments to the company. Then the amount of RM900 – RM460 = RM440 is considered to be a perquisite and is taxable.

Or if your employer agrees to waive a loan in exchange for services performed, then the loan amount is a perquisite and is taxable.

Example: Eddie‘s boss gives him a study loan of RM30,000 and agrees to waive the loan if he stays and works with the company for a minimum of 36 months. If Eddie successfully completes this agreement and the loan is waived, then the amount of RM30,000 is considered a perquisite and is taxable

4) Sponsored Club Membership If your employer provides you with an individual club membership (not corporate), then the cost of the membership is considered to be a perquisite and is taxable.

Example: Bruce is provided with an individual country club membership by his company. The annual fees of the membership are RM400. Then the amount of RM400 is a perquisite and is taxable.

5) Sponsored Child Tuition Fees

If your employer pays for your child‘s tuition fees, then the amount paid is considered to be a perquisite and is taxable.

Example: Shawn‘s company pays for the school fees of his son, Ross. The annual school fees amount to a total of RM10,000. Then the amount of RM10,000 is a perquisite and is taxable.

Tax Rebates in Malaysia for 2014 Tax rebates (or also known as ―tax refunds‖ but done automatically rather than actually refunded to you). Simply put, there are income tax rebates for Malaysian taxpaying citizens who are having a chargeable income of less than RM35,000 which is RM400. There is also an additional RM400 rebate for married couples who have a chargeable income of less than RM35,000 per year and are eligible for the RM3,000 wife / husband / alimony relief.

Zakat

It is one of the five pillars of Islam and is considered ―wajib‖, or a must for Muslims. In Malaysia, you can actually get jail time or be forced to pay a hefty fine for not paying your zakat on purpose (under the Syariah Criminal Enactment law of each state), so to our Muslim readers, no skiving on your zakat payments.

Zakat is a compulsory payment for charity by Muslims only, and is calculated from their acquired wealth, or income. Fun fact about zakat : In some cases (for farmers, etc) crops and livestock can be used as payments for zakat! In Malaysia, zakat falls under the state legislation and each state has different rates and methods of calculation to determine the zakat amount that muslims have to pay. Not all Muslims are required to pay their zakat, depending on wealth and income. Just like our income tax, zakat is obligatory only after you‘ve reached a certain amount of wealth, among other things. So Muslim readers, if you pass all of these conditions, you have to perform your zakat duty. Only those who are Muslims have to pay both their yearly Zakat on Wealth and Zakat Fitrah.

-ENTRY REQUIREMENT

1. To enter Malaysia, a visitor should fulfill the following conditions: i. Possess a Passport or Travel Document

a. Every person entering Malaysia must possess a valid national Passport or internationally recognised Travel Document valid

for travelling to Malaysia.

b. Any person not in possession of a Passport or Travel Document which is recognised by the Malaysian Government must

obtain a Document in lieu of Passport.

c. An application for the Document in lieu of Passport can be made at any Malaysian Representative Office abroad.

d. Holders of Travel Documents such as Certificate of Identity, Laisser Passer, Titre de Voyage, Permanent Residence

Certificate must ensure that their passage to the country of origin is assured.

e. The documents must be valid, for more than six (6) months from the date of entry. ii. Meet Visa requirements

a. A visa is an endorsement in a passport or other recognised travel document of a foreigner indicating that the holder has

applied for permission to enter Malaysia and that permission has been granted.

b. Foreign nationals who require a Visa to enter Malaysia must apply and obtain a Visa in advance at any Malaysian

Representative Office abroad before entering the country.

c. A Visa which has been granted is not an absolute guarantee that the holder will be allowed to enter Malaysia.

d. The final decision lies with the Immigration Officer at the entry point.

Types of Visa

The Malaysian Government issues Three (3) types of visas to foreign nationals:

1. Single Entry Visa

This is issued to foreign nationals who require a visa to enter Malaysia mainly for a social visit. It is normally valid for a single entry and for a period of three (3) months from the date of issue.

2. Multiple Entry Visa

This is issued to foreign nationals who require a visa to enter Malaysia mainly for business or government-to-government matters. It is normally valid for a period within three (3) months to twelve (12) months from the date of issue. Citizens of India and the People's Republic of China who wish to enter Malaysia for the purpose of a Social Visit are eligible to apply for the Multiple Entry Visa.The validity of the Multiple Entry Visa is one (1) year. Each entry is for 30 days only and the extension of stay is not allowed.

3. Transit Visa

This is issued to foreign nationals who require a visa to enter Malaysia on transit to other countries. Foreign nationals on transit without leaving the airport premises and who continue their journey to the next destination with the same flight do not require a transit visa.

e. iii. Possess a Valid return travel ticket and sufficient funds A visitor is also required to prove his financial ability to stay in Malaysia and possess a confirmed return travel ticket or a

travel ticket to a third country. iv. Is Not a prohibited person Any person classified under Section 8 of Immigration Act 1959/63 will not be allowed to enter Malaysia even though he/she

is in possession of a valid Passport or Travel Document, Visa, travel ticket and sufficient funds. v. Completes the arrival/departure card

a. A visitor is required to complete the Arrival/Departure Card (Imm.26) upon arrival at any gazetted entry points. This card is

obtainable at gazetted entry points, Malaysian Representative offices abroad or travel agencies.

b. A visitor must present his/her passport together with the duly completed arrival / departure card to the Immigration officer on

duty and he/she must ensure that the passport or travel document is endorsed with the appropriate pass before leaving the

immigration counter.

-HALAL STATUS

General Requirements

General Requirements for Halal Certification

Every company that applies for the Halal Confirmation Certificate must ensure that the source of ingredients is halal and they must choose suppliers or sub-contractors that only supply halal goods or have Halal Confirmation Certificates.

All companies must ensure that halal procedures are observed in all aspects as underlined in the Malaysian Halal Certification Procedure Manual. A company that is listed under the Multinational and Small & Medium Industry (SME)category is required to establish an Internal Halal Audit Committee and appoint an Islamic Affairs Executive (Islamic Studies) to oversee and ensure compliance of halal certification procedures;

Required to have a minimum of two permanent Muslim workers of Malaysian nationality in the kitchen / handling / food processing section;

Products must be clean and do not contain non halal ingredients as per Islamic law , during preparation, handling, processing, packaging or transfer;

Equipment and appliances used on the premise must be clean and free of contamination by impurities based on Islamic law and not detrimental to health;

Transportation used must be specifically for halal product delivery only;

The cleanliness of equipment, transportation, manufacturing area and environment must be of utmost importance and the company must incorporate good manufacturing practices;

Religious worship paraphernalia are not allowed on the premise / food processing area.

Employees must adopt good work ethics and good hygiene practices such as the following:

All employees must receive certain specified injections at any health centers recognized by the government, before and after being taken into employment;

All employees must maintain good health and cleanliness, especially those who work as production operators;

Employees who are sick or injured or suffering open wounds that could jeopardize production quality must not be allowed to work until they have recovered;

Direct contact between employees‘ hands and raw materials or unfinished products must be avoided;

Smoking, eating, drinking or storing of food, drinks, cigarettes or medicines must be done in specially designated areas and not allowed in the production area or any other area so as not to jeopardize quality of production;

All personnel entering the production area must wear proper factory attire or clean and decent clothing (if there is no designated factory attire) according to the health and cleanliness procedures. This applies to permanent and part time staff, management personnel, visitors and so on;

Employees must practice good hygiene and wear proper attire, head and mouth cover, gloves and proper shoes, Employees must wash their hands thoroughly with appropriate hand sanitizers, Before starting any food handling activity, After using the washroom, After handling raw material or contaminated material etc.

Employees are not allowed to wear jewelry, watches etc at the food processing area to avoid possible contamination during the food handling process, Employees must always be present at their designated duty areas, for example at the halal quality check point and halal raw material purchase point;

Employees must be responsible and committed to abiding by the underlined halal policy.

Applications will be unsuccessful for the following reasons:

. The company is producing and distributing halal and non halal products; . Product is not halal; . Natural substances that do not involve any processing; . Drugs or products that are categorized as pharmaceutical products by the Ministry of Health Malaysia; . Hair colorant / hair dye; . Processed products manufactured overseas; . Products that are labeled with names synonymous with confusing terminology such as ‗bak kut the‘ and so on; . Fertilizer and animal feed;

The applicant must fill in the relevant form : . Product / Consumer Goods . Food Premise . Slaughter House

The application must be submitted on-line complete with the required documents and relevant certificates as listed below:

. Company profile; . Company / business registration; . Name and description of product / menu for certification; . Ingredients used; . Name and address of manufacturer / ingredient supplier; . Halal status for ingredients with halal certificate or product specification for critical ingredients (if relevant); . Type of packaging material; . Manufacturing process and procedure; . Other documents such as HACCP, ISO, GHP, GMP, TQM etc. (If any); and . Location map of premise / factory.

-POLITICAL RISK

MACRO POLITICAL RISK

Concerns over the macro-economic environment and the expected interest rates hike topped the list of risks among the Malaysian banking industry (No.1 and No.2 respectively), according to the Malaysian cut of the Banking Banana Skins 2014 survey.

The Centre for the Study of Financial Innovation (CSFI)‘s biennial Banking Banana Skins survey, produced in association with PwC, revealed that Malaysia isn‘t too different compared to Asia Pacific territories such as China, Singapore, the Philippines and Australia, when it comes to the dominant concerns.

The top two risks – the macro-economic environment and risks of sharp changes in interest rates are similar to these Asia Pacific territories. Globally, the end of quantitative easing, the unresolved sovereign debt situation and uncertainty about conditions in emerging markets such as China remains a concern.

On the other hand, the uncertainty on how banks and borrowers could cope with a rise in interest rates on the domestic front could trigger a wave of bad loans, especially in household debts, resulting in higher non-performing loans or impaired loans ratio. The increase in household debt is also a consequence of rising property prices on the back of economic stimulus measures like the introduction of GST as well as the hike in the overnight policy rate (OPR).

The survey also revealed that Malaysian bankers are more nervous about the industry‘s future compared to their global counterparts (characterised as having a ―high level of anxiety‖ according to the survey). But Malaysian bankers are also relatively well prepared to face these risks (―high level of preparedness‖). ―Traditionally, Malaysian bankers have always been cautious about the risk outlook of the industry, which explains the relatively high level of anxiety among Malaysian banks compared to other countries globally,‖ said PwC Malaysia Assurance Partner Ong Ching Chuan.

―Several factors contribute to this high level of anxiety – increased competition, rising costs of doing business and compliance (the 3Cs). However, this sentiment of prudence and self-regulation, together with Bank Negara‘s support in supervising and regulating the financial market may well help Malaysian bankers to feel more prepared to deal with the risks identified,‖ he continued.

As a key trading partner of China, Malaysia‘s trade balances is at the risk of being impacted negatively by falling commodity prices, due to the economic slowdown in China.―Banks are stepping up their efforts on risk management and governance, and investing in talent,‖ said PwC Malaysia Executive Director Foong Mei Lin. ―These are key priorities in addressing these external market pressures, which are part and parcel of managing the increasingly complex financial landscape, and developing sustainable growth and competitive advantage,‖ she continued.

Attracting and retaining talent is understandably a key concern among Malaysian bankers (No. 5), mirroring Asia Pacific priorities. Interestingly, Asia Pacific is the only region that viewed talent as a top ten issue. For the emerging economies, talent is a key competitive differentiator, hence building a strong talent pipeline remains a persistent challenge. Other key concerns in Malaysia – quality of risk management (No. 3) and derivatives (No. 4) are also closely linked to the issue of talent.

Banks need to grapple with ―ineffective‖ risk managers who lack influence and authority, in addition to the issue of losing critical talent to other regions. There is also the concern about the relentless pursuit of new and exotic products like derivatives. Risk management teams are expected to ―catch up‖ with the latest innovations in the capital market as the risks associated with derivative products can be high.

Clearly, staying status quo is not an option for banks. The challenge is for banks to consider which posture they wish to adopt to succeed in the marketplace, in relation to the regulatory situation, the bank‘s current market position, its aspirations for the future and its capabilities.

The poll is based on responses from more than 650 bankers, banking regulators and close observers of the banking industry in 59 countries. There were 10 responses from

Malaysia. Respondents comprised 5 bankers, 2 observers and 3 risk managers.

MICRO POLITICAL RISK

-POLITICAL CONFLICT

Prime Minister Najib Razak forestalled attempts last year by the opposition to engineer a change in government but faces a tough task to rebuild his 13-party coalition. The National Front which has ruled Malaysia for 52 years recorded its worst defeats in last year's general election, losing control in five states and its once iron-clad two-thirds control of parliament. Voters, especially the country's Chinese and Indian ethnic minorities, abandoned the National Front in favour of former Deputy Prime Minister Anwar Ibrahim's three-party opposition. Although the political situation has stabilised, the trial of Anwar on renewed sodomy charges will provide a flashpoint. Malaysia's political stability has deteriorated significantly over recent years, and investment will be further damaged if that trend continues.

Key issues to watch:

-- The High Court has rejected Anwar's efforts to get sodomy charges dropped, and fixed the trial date for Jan. 25 to Feb. 25. The trial is likely to further inflame political tension.

-- What happens in a leadership tussle in the Malaysian Chinese Association, the second biggest party in the National Front.

* ECONOMIC REFORM

The government has promised further economic reform to attract increased foreign investment. Najib has rolled back elements of a four-decades old Malay affirmative policy, relaxing the rule that companies must offer stakes to indigenous ethnic Malays. Despite the moves, Najib is wary of upsetting the Malays, a critical vote bank, and treads carefully on economic reform. This may cause him to dilute orabandon his plans as he attempts to remain in power.

Key issues to watch:

-- Government policy implentation and announcements. A further set of liberalisation has been trailed by the government, although while investors have greeted positively measures so far, little money has flowed into Malaysia's markets as they are wary over implementation.

* RACE AND RELIGION

Race and religion have always been explosive issues in Malaysian politics, and although Najib took power pledging a more inclusive approach to ethnic Chinese and Indian minorities, UMNO may cast this approach aside to try to prevent further loss of support amongst its Malay powerbase.

Key issues to watch:

-- If the government tries to woo Muslim voters with more conservative policies based on Islam, investors may be spooked.

* CORRUPTION

Malaysia used to be regarded as one of the region's more reliable countries but worsening corruption and a perceived lack of judicial independence have damaged investment. UMNO's policy of handing out government contracts to what critics say are cronies under a long- entrenched system of patronage within the party has hit Malaysia's competitiveness. Key issues to watch:

-- How Najib handles the dilemma of bolstering his core support bloc while also cracking down on corruption. Investors are watching to see whether promised reform materialises.

-- Indicators gauging corruption in Malaysia. Transparency International's 2009 Corruption Perceptions Index, released last month, saw a significant deterioration in Malaysia's ranking to 56th out of 180 countries from 47th the previous year.

* SECURITY

The insurgency in southern Thailand has implications for Malaysia, particularly if it starts to draw more attention and sympathy from Malaysians for the ethnic Malay fighters across the border. A less likely danger is that al Qaeda-linked groups manage to establish a foothold in the area.

BRAZIL 3. LEGAL AND POLITICAL

 INCOME TAX -In Brazil, the Personal Income Tax Rate is a tax collected from individuals and is imposed on different sources of income like labour, pensions, interest and dividends. The benchmark we use refers to the Top Marginal Tax Rate for individuals. Revenues from the Personal Income Tax Rate are an important source of income for the government of Brazil.  SALES TAX -In Brazil, the sales tax rate is a tax charged to consumers based on the purchase price of certain goods and services. The benchmark we use for the sales tax rate refers to the highest rate. Revenues from the Sales Tax Rate are an important source of income for the government of Brazil.  PROPERTY TAX 1. Municipal Tax on Real Estate (Imposto sobre a Propriedade Prediale Territorial Urbana or IPTU)

 Property taxes are imposed on the assessed value of urban properties, as assessed by the municipality. The tax rates vary from one municipality to the other. Typical rates are around 0.3% to 1% levied on the assessed value of the property, an assessment usually lower than market value.

2. Federal Rural Property Tax (Imposto sobre a Propriedade Territorial Rural or ITR)-  Rural property tax is levied on the land located outside the urban zones of the municipality. Unlike the IPTU, this is a federal tax. The tax rates vary from 0.03% to 20% depending on the number of hectares of land and the ratio which the utilized area bears to the total land area. Property owners are liable to pay this tax.

 TRANSFER TAX  ITBI stands for real estate transfer tax, based on the value of the asset or the evaluation of it. The amount is normally 2% of the base above mentioned, having to be paid in order to officially register the change of property before a notary public. To officially transfer the asset there are some other costs involved, such as the signature of a public contract and the register of the contract at a notary public, or Cartório de Registro de Imóveis (cost depends on the value of the asset).

 CAPITAL GAINS TAX  IR represents the income tax. The value depends on the amount of capital gain, since the rate goes from 15% to 25%. Note that there is a new bill establishing that in every five years a tax benefit can be used for capital gain purposes. This is generally for the seller of an asset with capital gain, and the reinvestment of the value obtained toward other real estate assets until 180 days after the sale. i) Biometric Information  About a dozen ATMs beep away in a glass walled room on the sprawling Sao Paulo corporate campus of Bradesco one of Brazil‘s largest banks. In 2006, Bradesco became the first bank in Brazil to start using biometric ID at its ATM‘s -- hand vein readers. Nelson Lemos, a manager in the bank‘s IT department, demonstrates. He just touches his card to the console, places his hand on the scanner, and tells the machine how much money he wants. The entire process takes less than 20 seconds.

In addition to Bradesco's card-plus-hand ID system, here‘s also the option of getting cash without a card -- consumers just place their hand on the scanner and enter a couple of codes. The system is incredibly convenient. It‘s also extra secure, says Lemos.. Since the biometric system, fraud declined. Other ATMs don't show the same improvement since they don't have that system. So it did help Bradesco to avoid fraud."

Brazil is arguably the world leader in the use of biometrics among consumers. The country's four largest banks have all implemented some form of human ID scan, like Bradesco's vein reader or fingerprint scans, at their ATMs. It's not unusual for developing nations to "leapfrog" first world countries in use of technology. In this case, biometrics are not used on a similar scale in first world nations, and they may not be for some time.

Banks in Brazil added biometric ID to deal with challenges the U.S. doesn‘t face. For example, government ID‘s in Brazil can be easily forged, so lots of people have opened fraudulent bank accounts. And there‘s a problem of illiteracy. When folks go to collect their monthly welfare payments, banks see huge lines of people waiting to get reminded of their pin. Jonathan Moyer, director at the Center of International Futures at the University of Denver, says it makes sense to see large scale biometric systems in rapidly developing countries like Brazil and India, which has a huge government sponsored biometric ID program. It's these countries that are in this kind of development sweet spot, where you have the demand for this, and you have the overall resources to be able to put something like this in place," he says. "You have to have this interesting confluence of development, yet underdeveloped problems. Implementing a large scale biometric system is expensive, as much as $50 million for Brazilian banks to retrofit their ATMs. And that doesn‘t include the cost of getting people into the database. The project made sense for the banks because it saved them money, possibly as much as 1 REAL, or 50 cents per person. Because banks have led the way, the technology is spreading, says Fabrizio Vargas. He‘s head of business development at Biomatica, a Brazilian firm specializing in biometrics.

"For example, if you go to your market and forget your wallet, you may be able to buy with your mobile and your fingerprint. There are some great retail chains in Brazil starting to try that here and there."

There are plenty of American consumers who would undoubtedly love to walk into a store and make a purchase with just their finger and phone. But we don‘t have a large scale roll out of biometrics in the U.S. yet. So where could we see the technology really start to touch consumers? Here‘s a clue: earlier this year, Apple took out a patent on fingerprint sensors.

CULTURE

4.2 China

Social structure in china :

Over the last two decades, China's social structure has undergone significant changes. While still largely an agricultural country with more than 70 percent of the population being farmers, China has evolved into a mixture of a quasi-capitalist economy combined with an autocratic communist government. Such development has brought about the reshuffling of the old structure and, at the same time, created new social classes.

At the forum of "Harmonious Society" held in Chengdu, Sichuan Province, from July 10 to July 11, 2005, some experts pointed out that the current social structure in China can be categorized into ten groups based on people's occupations. The report was published by the mainstream media and widely referenced in other Chinese media as well.

In the past, the society in China was simply grouped as "workers, peasants, intellectuals and government officials (or cadres)." Such groupings no longer reflect the reality of today's China. Despite the change, experts believe that the social structure is still far from a balanced one. Mid to lower layers with low income (groups 7-9 below) are disproportionately large, while mid to upper layers (groups 3-6, which represent the prospects of a middle class) are still under-developed. Described below are the ten groups:

1. Administrators and government (2.1 percent), which includes those in various organs of the government and the Communist Party who perform leadership and executive tasks.

2. Management (1.5 percent), which includes the middle- to upper-level management workers in mid- to large-cap state-owned enterprises, stock-ownership enterprises, foreign invested enterprises, and private enterprises.

3. Private business owners (1.0 percent), which includes the group of private businessmen who own private capital and hire eight or more people.

4. Technocrats and professionals (4.6 percent), which include the professionals engaged in scientific and technological work in various state and local governments, and various industries.

5. Assistant and help staff (7.2 percent), who assist the leadership in various governmental and Party organs and in various companies and institutions.

6. Private businessmen (7.1 percent), which includes the small business owners who own a small amount of capital and carry out small-scale production and businesses.

7. Service personnel (11.2 percent), which includes the workers in the service industry who perform labor or non-labor work.

8. Manufacturers (17.5 percent), which includes the workers in the construction and manufacturing industries who directly provide labor or conduct secondary work. Most of the people in this class are migrant workers coming from the countryside.

9. Farmers (42.9 percent), which includes the farmers whose major source of income comes from agriculture, forestry, raising livestock, and fishing.

10. The jobless and part-time workers (4.8 percent), including those who have lost their jobs, lost their land, or are unemployed.

The above classification represents a scholarly version of China's social structure. In the Internet forum, a civilian version of these classifications was also widely circulated and spurred considerable discussion. Though it uses plain and sometimes sarcastic language, the civilian version vividly describes the life of each group and therefore can offer a candid picture of how ordinary Chinese looks at China's society. Below is an excerpt from the translation:

1. Government officials and the upper noble class

This is a class whose business dealings gain little exposure. The media usually avoids reporting about them, which means that the general public gets its information about them mainly through gossip spread by word of mouth.

Who are the people in this category who benefit the most? Look no further than those who control the largest amount of capital in each area, the Chairmen and General Managers. Look no further than the boss when state property becomes private property following a restructuring of the state-owned company. These people have no interest in getting into the routine of running a business. Because they are in the position to determine the direction of policy changes, they can always use that means to get what they want.

2. Experts and professors

They are the most important guests of government officials at every level, helping cook up theories to validate their policies.

3. Gangsters, hooligans, and mafia-style organizations

When the rule of law is not in place, then there is a need of some sort of force to fill the void. In the current China, such force takes the form of a mafia-style organization. In many regions, the activities of various gangsters and mafias are at an astonishing level. Government departments are afraid of them, or even form alliances with them.

4. Private entrepreneurs

Economic reform has brought about the development of various kinds of private enterprises. In many southern and coastal areas, private enterprises are the main body of the economy. These people are young and knowledgeable, most of them have read Dale Carnegie's Success Secrets and have a domestic MBA title. Most importantly, they all know the current situation of China. They have established all kinds of networks with local officials. They all understand the rules: Power is money; money also requires protection from power.

5. Urban white collar workers

This group works for riches, and includes domestic and overseas capitalists. They mostly reside in nice office buildings. They are well-trained and have good manners. These people earn high salaries and have a high social status.

6. Government workers (servants)

It is characteristic of China to have a large number of government-paid workers. Though they earn a mediocre salary and have very few privileges, the stability of the payments they receive is still very attractive. By looking at people's passion to apply for such jobs and the dealings (lots of illegal ones) that occur in the process, you will understand.

7. Employees in privileged corporations

To become a privileged corporation in China, the company must either be a monopoly or have strong support. They are in such fields as communication, electric power, banks, teachers, doctors, and so on. People in this group can lead a quality life. They also sympathize with the suffering of the general population, and sometimes offer a little bit of help. But that's all.

8. Employees in ordinary corporations

Life is not at all easy for them. These people have the most complaints. On the positive side, they still, at least, have food in their plates.

9. Farmers

Waiting to grow up, then waiting for the kids to grow up—they are a group waiting to die. Farmers comprise the vast majority, but altogether they are equal to nothing.

10. Urban laid-off employees and migrant workers

There are lots of laid-off employees in the cities, but nobody knows how they survive. They are a mystery to our society. Officials will visit someone during the New Year or big holidays, but that's merely a decoy for the official to take a picture. The dead last group is the farmer migrant workers. There are reasons why they are not farmers. The main reason for the farmers coming to the city is to improve their quality of life. But in reality, the quality not only does not get any better; it becomes much worse. In the countryside, they are at least counted as human beings. After coming to the city, they are no longer regarded as humans anymore.

Languages and dialect :

Spoken Chinese

Chinese is a family of closely-related but mutually unintelligible languages. These languages are known variously as fāngyán (regional languages), dialects of Chinese or varieties of Chinese. In all over 1.2 billion people speak one or more varieties of Chinese.

All varieties of Chinese belong to the Sino-Tibetan family of languages and each one has its own dialects and sub-dialects, which are more or less mutually intelligible.

Notable features  All varieties of Chinese are tonal. This means that each syllable can have a number of different meanings depending on the intonation with which it is pronounced. For example Mandarin has 4 tones, Cantonese has between 6 and 9 (it depends who you ask) and Taiwanese has 7 tones.

 The major varieties of Chinese are mutually unintelligible, but most people in China and Taiwan who don't speak Mandarin as their first language, can speak or at least understand it a bit. However in Hong Kong and Macau few people speak Mandarin, so they tend to use English to communicate with people from other parts of China or Taiwan.

 Each of the major varieties of Chinese has numerous dialects. For example, Mandarin can be divided into northern, southern and south-western dialects, which are more or less mutually intelligible.

Major varieties of Chinese include: Pŭtōnghuà (Mandarin) Mandarin is spoken by possibly more people than any other language: over 1.3 billion. It is the main language of government, the media and education in China and Taiwan, and one of the four official languages in Singapore. Further details

Wú Wú is spoken in Zhejiang and Jiangsu provinces and in Shanghai and Hong Kong by about 90 million people. Major dialects of Wu include Shanghainese and Suzhou. Further details of Shanghainese

Yuè (Cantonese) Cantonese is spoken by about 70 million people in Guangdong and Guangxi provinces and Hainan island in China, and also in Hong Kong, Macau, Singapore, Malaysia and many other countries Further details

Mĭn Nán (Southern Min) Mĭn Nán is in the south of Fujian province, Guangdong province, southern Hainan Island, in the south of Zhejiang and Jiangxi provinces, and also in Taiwan, Singapore and many other countries. Further details :

Jìnyŭ Jinyu is spoken mainly in Shanxi province and also in Shanxi and Henan provinces by about 45 million people. It used to be considered as a dialect of Mandarin, but is now thought to be a separate variety of Chinese.

Hakka Hakka is spoken in south eastern China, parts of Taiwan and in the New Territories of Hong Kong. There are also significant communities of Hakka speakers in such countries as the USA, French Guiana, Mauritius and the UK. Further details

Xiāng (Hunanese) Xiang (Hunanese) is spoken by about 25 million people in China, mainly in Hunan province, and also in Sichuan, Guangxi and Guangdong provinces. Further details

Gàn Gan is spoken by about 20.5 million people in Jiangxi province and in parts of Hubei, Anhui, Hunan and Fujian provinces. Further details

Mín Bĕi (Northern Min) Mín Bĕi has about 10,3 million speakers mainly in Northern Fujian Province and Singapore. Mínis the Classical Chinese name for Fujian province and Bĕi means 'north' or 'northern'.

Mín Dōng (Eastern Min) Mín Dōng is spoken mainly in east central Fujian Province and also in Brunei, Indonesia (Java and Bali), Malaysia (Peninsular), Singapore, Thailand. The approximate number of native speakers is 250,000.

Mín Zhōng (Central Min) Mín Zhōng is spoken mainly in central Fujian Province.

Dungan (хуэйзў йүян) Dungan is spoken by the Muslim Hui people in China, Kyrgyzstan and Kazakhstan. There are approximately 50,000 speakers. Dungan is the only variety of Chinese not with Chinese characters. Instead it is written with the Cyrillic alphabet. Further details

Pŭ-Xián Pŭ-Xián is spoken by about 6,000 people mainly in east central Fujian Province and in Malaysia and Singapore.

Huīzhōu Huīzhōu is spoken in southern Anhui and northern Zhejiang provinces. It used to be considered as a dialect of Mandarin, but is now thought to be a separate variety of Chinese.

Chinese values :

Chinese culture is highly complex but scholars across the world are agreed that despite the diversity of Chinese communities many shared characteristics persist.

These derive largely form the pervasive influence of Confucian philosophy on Chinese culture and they are at very core of Chinese identity. Indeed, since Confucian thought has dominated the Chinese way of life for 2,000 years, it is unlikely to cease its influence - even after two or three generations of participation in British society.

The Chinese value the importance of the family; the hierarchical structure of social life; the cultivation of morality and self-restraint and the emphasis on hard work and achievement. Various researchers also stress the pride which Chinese people take in their culture as well as the fact that Chinese culture and society can be defined as ‗collectivist‘ .

In many ways the family unit takes precedence over its individual members. Children must learn not to answer back to their parents or other elders. It is assumed that the family as a whole will thrive and prosper if harmony prevails at home.

In other words – the basic rules of obedience, moderation and self-restraint amongst family members should be observed.

Expectations related to family life account for many of the difficulties faced by Chinese immigrants. The second generation finds it hard to cope with the demands of their parents'.

They want to fulfil their own potential - like opting out of the catering business. And, stripped of their traditional position, deprived of respect, abandoned and isolated, the first generation feels unable to shape their children's way of life, Guilt on the children's part, and shame on the parents', often results.

China’s change in attitude towards business over generations.

It has recently come to my attention that the characteristics of a Chinese businessman has changed drastically over the past few generations. This is in large due to the fact that the Chinese working economy is on a vast upward spiral to becoming one of the most plentiful in the world. In turn, there must follow a new strict set of regimented rules and regulations in order to deal with the increasing demand for products ‗made in China‘. We tend to find that nowadays the new chinese businessman is more individualistic and more likely to act independently, while taking risks in the pursuit of profits. However, these new businessmen are likewise, not disregarding their Confucian values (the belief that human beings are teachable, improvable and perfectible through personal and communal endeavor especially including self-cultivation and self-creation). Thus, they may be seen as combining their Eastern and Western influences, while on the road to modernisation.

Even though China‘s global marketplace is growing rapidly. It is important that we outline the profile of a new Chinese businessmen today, so we can access the improvements made over the past few generations. In order to develop this profile, we need to:

―Focus on the individualism, collectivism and confucianism aspects of Chinese values.‖ (Boisot &Child, 1996)

The importance of these three aspects of Chinese societal values, as well as being the signal of the paradox that occurs when the shift to modernisation conflicts with maintaining traditional Chinese values, has been pointed out by, Bond 1991; Ralston, Yu, Wang, Terpstra & He, 1996; Redding, 1990 and Yang 1988). Age, or indeed generation is definitely the predicting independent variable. However, after years of research into China‘s history, we can determine a number of other different factors that may also affect individual values in China, such as; gender, education, geographic region or origin, position level, company size, industry and geographic region on employment. (Child & Stewart, 1997; James 1989). Subsequently, we must include these factors as possible control variables in the research findings and analysis of generationsal changes in Chinese business values.

Moreover, as the relationship between the United Kingdom and China grows. It has become imperative for the Western business people, who look to develop their working relationships with Chinese counterparts, to understand the key factors highlighted earlier, gender, education etc. This in turn will help us strengthen our economy whilst aiding China on its journey to economic success. I order to fully understand how business takes place in China. One needs to learn about culture differences within each generation (Schneider & Barsoux, 1997). Thus, we have to value the differences between these generations, the most important, being the societal objectives (Inglehart & Carballa, 1997; Terpstra, 1978). There is no country in the world that has had to adapt their societal chnages as much as China since the Qing Dynasty. Many of these changes were made in such a way that they can easily be tweaked in order to fit the beliefs and attitudes of people at the time.

Furthermore, Confucianism was rife during the Republican Era (1911-1948), and western influence was high in commercial areas such as Shanghai. When the consolidation Era came around in 1949 to 1965, this influence was rapidly evaporated due to the violent nature aimed towards educated citizens. This was an attempt by Maoist/Leninist communist doctrine to suppress all of China‘s Confucian values. During this period, everything western was disintegrated. The following Great Cultural Revolution Era of 1966-1976 only exacerbated the situation that arose during the Communist Consolidation. The era that China finds itself in today (the social reform era 1977- present), initiated by Deng Xiaoping, saw a great rise in the acceptance of the traditional Confucian values that are an integral part of China‘s demeanor and well-being. In the past few years, China has managed to rebuild its bridges within the west:

―‗The essence of the evolution from the previous two periods under Mao‘s work for the good society‘ philosophy can be captured by Deng‘s (1984 p172) acknowledgment that a ‗few flies‘ ( i.e western influence) would likely come through the open door, in the new and pragmatic, ―to be rich is glorious‖ plan to modernize China by the early twenty-first century.‖

In short, work hard and earn lots of money so that you can live an affluent life with less worry. This school of though has only surfaced in recent years because the opportunity to become successful in business in China has widened. However, I have to wonder, if this glorified version of a modernised life in China is too great to be true. China has gained enormous economic success , but will they be able to sustain this rate of success in the years to come? This is the underlying worry. How long can such great success exist? Well for now China can only go on to do greater things, and with the UK on it‘s side, it will be very interesting to see where they are in the next twenty odd years. It is certainly food for thought.

Business protocol china :

China is a country that has long been known for its ceremonies and etiquette through the ages. However, it can be something of a culture shock when it comes to the differences between the social niceties between the country and the western world. The following is an introduction to the daily manners and courtesies of social life in China. Greetings: In different countries, people have different ways of greetings. Before your China trip, do you want to learn something practical about Chinese people's greeting etiquette? In this section, you can get some knowledge of how Chinese people greet with each other. Hope it helps.

Make Introductions: In this section, you can learn some Chinese about how to introduce yourself to others and some tips of self-introduction. An introduction is the first step to establish an interpersonal relationship. A successful introduction makes the people being introduced feel closer and creates a good first impression. Self-introduction With regard to introducing yourself there is little difference between China and elsewhere. It is considered polite to give your full name, job positions and the place you work for, especially on more formal occasions. Only your full name with a simple greeting is enough on informal occasions:

Chinese Pinyin Chinese The same meaning in English Ni Hao, Wo Jiao... 你好, 我叫...... Hello/Hi, I'm... Ni Hao, Wo Shi... 你好, 我是...... Ni Hao, Wo De Ming Zi Shi 你好, 我的名字是 Hello/Hi, My name is...

Being introduced If someone is making the introductions, to introduce your self is considered disrespectful. So when it is your turn to be introduced, stand up, smile and look at the people also being introduced with ease. After being introduced, you can shake hands with each other and give mutual greetings, sometimes with an exchange of calling cards.

Introduce to others In China, there are many strict conventional rules on introduction to others: a. The junior should be introduced to the senior first; b. The male should be introduced to the female first; c. The inferior should be introduced to the superior first; d. The host should be introduced to the guest first. These ways of introduction is to show high respect to the senior, the female, the superior and the guest. However, if you are in a generally more informal occasion, the introduction to others can be less ceremonious.

Handshaking: It's said that the comity of handshaking originated in remote antiquity. At that time, human beings lived on hunting. If they happened to meet a stranger, they would throw their hunting tools aside and laid open the hands to show the person. With the change of eras, this action has become etiquette in people's life.

Table Manners: Like the people in western countries, the Chinese are particular about the table manners. Through this section, you will have an acquaintance with how to use chopsticks correctly and other manners about dining. Family Visiting: Maybe, it's the first time that you have come to China and you haven't called at any Chinese family before. Here, you can get some very practical tips of a Chinese family visiting. Especially, Chinese people are very particular about the amenity of 'courtesy demands reciprocity'. In China, giving a gift often happens. This is a very important etiquette in communication.

Communication in china :

Top Ten Things to Know About Chinese Communications and Culture

1. The traditional Chinese "handshake" consists of interlocking the fingers of the hands and waving them up and down several times. This is rarely used today (except during festivals, weddings and birthdays of the elderly), and the Western-style handshake is used by most everyone. When greeting, a slight bow often accompanies the handshake, but do not bow from the waist in the style of the Japanese. While a firm grip is expected in the West, the Chinese employ a gentler handshake. Except for shaking hands, do not touch anyone unless you know them very well. Never embrace or slap a Chinese associate on the back.

2. Business cards are routinely exchanged at the first meeting. Be sure that one side of your card has been translated into Chinese. Include your company's name, your job title and any special qualifications you have. When receiving a card from a Chinese businessman, take it with both hands and compliment something about it; be sure to keep it on the table in front of you for the entire meeting.

3. Chinese names are "reversed" from Western names. The surname is said first and then the given name. For example, Bruce Lee's name in Cantonese is Lee Siu Lung. Lee is his surname and spoken first, and the given name (Little Dragon) is spoken second. Professional, social, and family titles always follow the name as well. Dr. Wong would be Huang Yi Sheng (Huang Doctor). Likewise, Xiansheng (Mr.) and Taitai (Mrs.) are said after the surname. Never call someone by only his last name, and unless specifically asked, do not call someone by his first name; always address your Chinese associates by their surname followed by their title. Also, never address anyone as "Comrade."

4. The Chinese will often avoid eye contact during conversations, especially when talking to the opposite sex or to strangers. Traditionally, it was considered impolite and aggressive to look directly into another's eyes while talking, and as a sign of respect, the Chinese sometimes lower their eyes slightly when they meet others. The Chinese typically have a "blank" facial expression during introductions. This is not a sign of unhappiness, dissatisfaction, or unfriendliness, but reflects the belief that there is virtue in concealing emotions. Chinese communication is ambiguous, indirect and highly contextual. In conversation, the real meaning, especially if it's negative, is often implied rather than stated. What is not said is often more important that what is said.

5. When meeting someone for the first time for a business meeting, you should engage in general conversation before turning to business. Casual conversation topics in China differ from that of English speakers. It is not impolite to ask about a person's job, annual salary, marital/dating status or age. Although your answers need not be detailed, trying to avoid answering will only invite suspicion and misunderstanding. The specifics of your answers are not as important as your willingness to respond. In contrast, questions about family tend to be deflected or avoided.

6. Lavish gift-giving was once an important part of Chinese culture. Today, official policy forbids gift-giving as it can be considered bribery. Though the policy is softening, there may be times when a gift will absolutely not be accepted. Should you find yourself in this situation, graciously say you understand and withdraw the gift. Smaller, less expensive items will not be seen as a bribe, but in any case, you will have to approach gift-giving with discretion. The Chinese do not usually accept a gift, invitation or favor when it is first presented, but will politely refuse two or three times to reflect modesty and humility. Accepting something in haste makes a person look aggressive and greedy, as does opening it in front of the giver. See our Top Ten Guidelines to Gift-Giving in China for more information.

7. Six, eight and nine are considered lucky numbers, since their homophones have auspicious meanings. Six, liu in Chinese, implies that everything about you will go smoothly. Eight was originally deemed lucky by the Cantonese, since in Cantonese, the word for eight is fa, which means to make a great fortune in the near future. Later, the auspiciousness of eight was taken up by all Chinese. Nine, jiu, implies everlasting, especially in friendship and marriage. Four and seven are unlucky numbers; the former implies death and the latter means gone.

8. Color symbolism is very important in China. Red is lucky and used in celebrations, but never use red ink to write cards or letters, as it symbolizes the end of a relationship. Yellow is associated with prosperity, and gold is especially felicitous. In contrast with Western cultures, white signifies death. 9. Instead of serving dishes individually as in the West - where everyone has his own portion of food on a single plate - the Chinese typically share food from a number of dishes placed in the center of the table. Each person sitting around the table takes food from the common plates. Sometimes, in order to show their friendship and sincerity, Chinese hosts will pick from dishes with their own chopsticks or spoons for you, and place food on your plate. Never place your chopsticks upright in a rice bowl; it replicates the bowl of sand or rice with two upright incense sticks that is traditionally placed at the shrine of deceased loved one.

10. Many common Western gestures are considered rude in China.

1. Pointing with the index finger - use a face-up, open hand instead 2. Beckoning someone with the index finger - use the hand with fingers motioning downward as in waving instead 3. Finger snapping 4. Showing the soles of shoes 5. Whistling to get someone's attention

China communication style :

China has become an economic superpower, but that success is not contingent on Chinese businessmen, government officials, and other elites on having assimilated into a Western style of communication. There are still vast differences in the ways in which Chinese interact with Western people, and with the world at large. Significantly, the primary function of Chinese communication strategy rests upon maintaining existing relationships between individuals, while emphasizing and adhering to role and status differences, with the ultimate aim being to preserve harmony within the group. Unlike American cultural norms, which may appear brash and individualistic, Chinese cultural norms are geared to serve the group and family. Because of this, people define themselves through their relation to others—a Chinese is whole and complete only if he can integrate successfully with others and with his surroundings. For this reason, conflict must be avoided. Communication should serve to strengthen bonds, not challenge them. Thus, the ultimate goal is to create and preserve harmony among people. All my Chinese friends strive to live harmoniously with their family members, with their neighbors, and with their coworkers. In my time living in China, I have noted that my Chinese friends seem much more successful than my Western friends in balancing their relationships. I wanted to know why.

"The basis for the Chinese success with relationships comes from the way we Chinese perceive the self," said Teacher Zhang, an elderly Hohhot local who has been teaching foreigners like me Chinese for more than 20 years. "Those Chinese who are Buddhist divide the self into two: the big self and the small self. For Buddhists and Taoists, this greater self is the part of us that merges with nature, with the cosmos; it is devoid of individuality. The little self is our human side, our needy side, with constant desires." Teacher Zhang went on to explain that Confucian thought has also influenced the Chinese sense of self, emphasizing that children are taught from an early age to cultivate their greater self, and discipline their little self. "This is because the true self, the civilized Chinese person, feels social and ethical responsibilities toward other members of his society. He knows that a person is judged and created in relation to others; we never live alone, we all need interaction with others and with the world to create our identity," she added.

Certainly, anyone who has lived in China for any length of time understands how powerful these bonds between people can be, and how relationships, especially kinship relations, require Chinese to cultivate their filial piety, which in turn generates loyalty, dignity, and integrity. When I first asked David Meng, a professor who often worked with me, to tell me about himself, he answered simply: "I can only define myself as an affectionate father to my child, a faithful husband to my wife, and a loyal son to my dear mother ... maybe also as a professor here for 17 years ... but as a person? That is difficult ... do you mean you want to know my hobbies?" At first, his answer shocked me, because, as an American, I have been socialized by my culture to define myself differently. In contrast to the Chinese collective identification, the American idea of identity is very individualistic.

"Yes, you Westerners only think of your own needs, you seem to us like children, without restraint or thoughtfulness," said Professor Meng, as we discussed cultural differences. "We are brought up to think of the interests of everyone, not just ourselves... for example, if a marriage is having troubles, a parent or relative will appeal to the needs of others: the child involved, extended family, and even friends, who are part of the husband and wife's network. If a woman or a man divorces, others may think he or she has a lack of tolerance and self-control."

"But you may also be staying together because you are concerned that others will gossip, and that you will lose face," I countered.

"Yes, that is true, but it is not everything," Professor Meng answered. "Certainly, Chinese people are concerned with how other people feel and think about them, perhaps more so than Westerners, because the Chinese outlook for relationships is long term. Moreover, Chinese cultural norms promote modesty and humility; there is a saying that a Chinese gentleman treats himself strictly and others leniently."

In contrast, I often hear American friends saying "I don't care what others think," and telling me that this is a sign of self-confidence and courage. Western people are not shy to tell others of their accomplishments, their talents, and their aspirations. This can sound offensive to Chinese ears.

Religions in China :

1) Daoist ( Taoist ) 2) Buddhist 3) Muslim 1% - 2% 4) Christian 3% - 4%

Note : officially atheist (2002 est.)

United States

4.2.1 Social structure

Types of Social Classes of People:

Social class refers to a group of people with similar levels of wealth, influence.

Research suggests that in the United States today approximately 15 to 20 percent are in the poor, lower class; 30 to 40 percent are in the working class; 40 to 50 percent are in the middle class; and 1 to 3 percent are in the rich, upper class.

The lower class

The lower class is typified by poverty, homelessness, and unemployment. People of this class, few of whom have finished high school, suffer from lack of medical care, adequate housing and food, decent clothing, safety, and vocational training. The media often stigmatize the lower class as ―the underclass,‖ inaccurately characterizing poor people as welfare mothers who abuse the system by having more and more babies, welfare fathers who are able to work but do not, drug abusers, criminals, and societal ―trash.‖

The working class

The working class are those minimally educated people who engage in ―manual labor‖ with little or no prestige. Unskilled workers in the class—dishwashers, cashiers, maids, and waitresses—usually are underpaid and have no opportunity for career advancement. They are often called the working poor. Skilled workers in this class—carpenters, plumbers, and electricians—are often called blue collar workers. They may make more money than workers in the middle class—secretaries, teachers, and computer technicians; however, their jobs are usually more physically taxing, and in some cases quite dangerous.

The middle class

The middle class are the ―sandwich‖ class. These white collar workers have more money than those below them on the ―social ladder,‖ but less than those above them. They divide into two levels according to wealth, education, and prestige. The lower middle class is often made up of less educated people with lower incomes, such as managers, small business owners, teachers, and secretaries. The upper middle class is often made up of highly educated business and professional people with high incomes, such as doctors, lawyers, stockbrokers, and CEOs.

The upper class

Comprising only 1 to 3 percent of the United States population, the upper class holds more than 25 percent of the nation's wealth. This class divides into two groups: lower-upper and upper-upper. The lower-upper class includes those with ―new money,‖ or money made from investments, business ventures, and so forth. The upper-upper class includes those aristocratic and ―high-society‖ families with ―old money‖ who have been rich for generations. These extremely wealthy people live off the income from their inherited riches. The upper-upper class is more prestigious than the lower-upper class.

Wherever their money comes from, both segments of the upper class are exceptionally rich. Both groups have more money than they could possibly spend, which leaves them with much leisure time for cultivating a variety of interests. They live in exclusive neighborhoods, gather at expensive social clubs, and send their children to the finest schools. As might be expected, they also exercise a great deal of influence and power both nationally and globally

4.2.2 Language

English is the de facto national language of the United States, with 80% of the population claiming it as a mother tongue, and some 95% claiming to speak it "well" or "very well". However, no official language exists at the federal level. There have been several proposals to make English the national language in amendments to immigration reform bills, but none of these bills has become law with the amendment intact.

The situation is quite varied at the state and territorial levels, with some states mirroring the federal policy of adopting no official language in a de jure capacity, others adopting English alone, others officially adopting English as well as local languages, and still others adopting a policy of de facto bilingualism.

The variety of English spoken in the United States is known as American English; together with Canadian English it makes up the group of dialects known as North American English.

Spanish is the second most common language in the country, and is spoken by over 12% of the population. The United States holds the world's fifth largest Spanish-speaking population, outnumbered only by Mexico, Spain, Colombia, and Argentina. Throughout the Southwestern United States, long-established Spanish-speaking communities coexist with large numbers of more recent Hispanophone immigrants. Although many new Latin American immigrants are less than fluent in English, nearly all second-generation Hispanic Americans speak English fluently, while only about half still speak Spanish.

According to the 2000 US census, people of German ancestry make up the largest single ethnic group in the United States, and the German language ranks fifth.

Italian, Polish, and French are still widely spoken among populations descending from immigrants from those countries in the early 20th century, but the use of these languages is dwindling as the older generations die. Russian is also spoken by immigrant populations.

Tagalog and Vietnamese have over one million speakers each in the United States, almost entirely within recent immigrant populations. Both languages, along with the varieties of the Chinese language, Japanese, and Korean, are now used in elections in Alaska, California, Hawaii, Illinois, New York, Texas, and Washington.

Native American languages are spoken in smaller pockets of the country, but these populations are decreasing, and the languages are almost never widely used outside of reservations. Hawaiian, although having few native speakers, is an official language along with English at the state level in Hawaii. The state government of Louisiana offers services and documents in French, as does New Mexico in Spanish. Besides English, Spanish, French, German, Navajo and other Native American languages, all other languages are usually learned from immigrant ancestors that came after the time of independence or learned through some form of education.

Approximately 337 languages are spoken or signed by the population, of which 176 are indigenous to the area. 52 languages formerly spoken in the country's territory are now extinct Native American languages

Indigenous languages

Native American languages predate European settlement of the New World (The American Continent). In a few parts of the U.S. (mostly on Indian reservations), they continue to be spoken fluently. Most of these languages are endangered, although there are efforts to revive them. Normally the fewer the speakers of a language the greater the degree of endangerment, but there are many small Native American language communities in the Southwest (Arizona and New Mexico) which continue to thrive despite their small size. In 1929, speaking of indigenous Native American languages, linguist Edward Sapir observed:

"Few people realize that within the confines of the United States there is spoken today a far greater variety of languages ... than in the whole of Europe. We may go further. We may say, quite literally and safely, that in the state of California alone there are greater and more numerous linguistic extremes than can be illustrated in all the length and breadth of Europe."

According to the 2000 Census and other language surveys, the largest Native American language-speaking community by far is the Navajo. Navajo is an Athabasca language with 178,000 speakers, primarily in the states of Arizona, New Mexico and Utah, in addition to smaller numbers of speakers across the country. Dakota is a Siouan language with 18,000 speakers in the US alone (22,000 including speakers in Canada), not counting 6,000 speakers of the closely related Lakota. Most speakers live in the states of North Dakota and South Dakota. Central Alaskan Yup'ik is an Eskimo-Aleut language with 16,000 speakers, most of whom live in Alaska. Cherokee belongs to the Iroquoian language family, and had about 22,000 speakers as of 2005.

The Cherokee have the largest tribal affiliation in the U.S., but most are of mixed ancestry and do not speak the language. Recent efforts to preserve and increase the Cherokee language in Oklahoma and the Cherokee Indian reservation in North Carolina have been productive. Western Apache, with 12,500 speakers, is a Southern Athabaskan language closely related to Navajo, but not mutually intelligible with it. Most speakers live in Arizona. The O'odham language, spoken by the Pima and the Tohono O'odham, is a Uto-Aztecan language with more than 12,000 speakers, most of whom live in central and southern Arizona and northern Sonora.

Since the languages in the Americas have a history stretching for about 17,000 to 12,000 years, current knowledge of American languages is limited. There are doubtless a number of languages that were spoken in the Americas that are missing from historical record.

Native American sign languages

A sign-language trade pidgin, known as Plains Indian Sign Language or Plains Standard, arose among the Plains Indians. Each signing nation had a separate signed version of their oral language, which was used by the hearing, and these were not mutually intelligible. Plains Standard was used to communicate between these nations. It seems to have started in Texas and then spread north, through the Great Plains, as far as British Columbia. There are still a few users today, especially among the Crow, Cheyenne, and Arapaho. Unlike other sign languages developed by hearing people, it shares the spatial grammar of deaf sign languages. Main Language

Some of the first European languages to be spoken in the U.S. are English, Dutch, German, French, and Spanish.

From the mid-19th century on, the nation had large numbers of immigrants who spoke little or no English, and throughout the country state laws, constitutions, and legislative proceedings appeared in the languages of politically important immigrant groups. There have been bilingual schools and local newspapers in such languages as German, Romanian, Czech, Japanese, Yiddish, Hebrew, Lithuanian, Welsh, Cantonese, Bulgarian, Dutch, Portuguese and others, despite opposing English-only laws that, for example, illegalized church services, telephone conversations, and even conversations in the street or on railway platforms in any language other than English, until the first of these laws was ruled unconstitutional in 1923.

Currently, Asian languages account for the majority of languages spoken in immigrant communities: Korean, the varieties of Chinese, and various Indian or South Asian languages like Punjabi, Hindi/Urdu, Kannada, Gujarati, Marathi, Bengali, Tamil, Telugu and Malayalam, Arabic, Vietnamese, Tagalog, Persian, and others.

Typically, immigrant languages tend to be lost through assimilation within two or three generations, though there are some groups such as the Cajuns (French), Pennsylvania Dutch (German) in a state where large numbers of people were heard to speak it before the 1950s, and the original settlers of the Southwest (Spanish) who have maintained their languages for centuries

English

English was inherited from British colonization, and it is spoken by the majority of the population. It serves as the de facto official language, the language in which government business is carried out. According to the US Census Bureau 80% spoke only English at Home and all but 57,097,826 of U.S. residents speak English "well" or "very well".

American English is different from British English in terms of spelling (a classic example being the dropped "u" in words such as color/colour), grammar, vocabulary, pronunciation, and slang usage. The differences are not usually a barrier to effective communication between an American English and a British English speaker, but there are certainly enough differences to cause occasional misunderstandings, usually surrounding slang or region dialect differences

Spanish

Spanish was also inherited from colonization. Spanish is also taught in various regions as a second language, especially in areas with large Hispanic populations such as the Southwestern United States along the border with Mexico, as well as Florida, parts of California, the District of Columbia, Illinois, New Jersey, and New York. In Hispanic communities across the country, bilingual signs in both Spanish and English may be quite common. Furthermore, numerous neighborhoods exist (such as Washington Heights in New York City or Little Havana in Miami) in which entire city blocks will have only Spanish language signs and Spanish-speaking people.

4.2.3 Value and Attitudes

As Honda prepares to enter the U.S.market, it may help them to know something about the values that shape U.S. Americans' attitudes and behaviors. As you consider these values it is important to remember that:

 U.S. society is made up of a diversity of ethnic groups and cultures that have helped shape American values;

 Some individuals and groups have a set of respected values that are quite different from those of mainstream America;

 People's attitudes and behavior are based on their values.

Some Major U.S. American Values

Individuality: U.S. Americans are encouraged at an early age to be independent and to develop their own goals in life. They are encouraged to not depend (too much) on others including their friends, teachers and parents. They are rewarded when they try harder to reach their goals.

Privacy: U.S. Americans like their privacy and enjoy spending time alone. Foreign visitors will find U.S. American homes and offices open, but what is inside the American mind is considered to be private. To ask the question "What is on your mind?" may be considered by some to be intrusive.

Equality: U.S. Americans uphold the ideal that everyone "is created equal" and has the same rights. This includes women as well as men of all ethnic and cultural groups living in the U.S. There are even laws that protect this "right to equality" in its various forms.

The general lack of deference to people in authority is one example of equality. Titles, such as "sir" and "madam" are seldom used. Managers, directors, presidents and even university instructors are often addressed by their first or given name.

Time: U.S. Americans take pride in making the best use of their time. In the business world, "time is money". Being "on time" for class, an appointment, or for dinner with your host family is important. U.S. Americans apologize if they are late. Some instructors give demerits to students who are late to class, and students at most universities have institutional permission to leave the classroom if their instructor is 10 or 15 minutes late.

Informality: The U.S. American lifestyle is generally casual. You will see students going to class in shorts and t-shirts. Male instructors seldom wear a tie and some may even wear blue jeans. Female instructors often wear slacks along with comfortable walking shoes.

Greetings and farewells are usually short, informal and friendly. Students may greet each other with "hi", "how are you"? and ―what's up"? The farewell can be as brief as: "See you‖,‖ take it easy", or, "come by some time" (although they generally don't really mean it). Friendships are also casual, as Americans seem to easily develop and end friendships.

Achievement & Hard Work/Play: The foreign visitor is often impressed at how achievement oriented Americans are and how hard they both work and play. A competitive spirit is often the motivating factor to work harder. Americans often compete with themselves as well as others. They feel good when they "beat their own record" in an athletic event or other types of competition. Americans seem to always be "on the go", because sitting quietly doing nothing seems like a waste of time.

Direct & Assertive: U.S. Americans try to work out their differences face-to-face and without a mediator. They are encouraged to speak up and give their opinions. Students are often invited to challenge or disagree with certain points in the lecture. This manner of direct speaking is often interpreted by foreign visitors as rude.

Looking to the Future and to Change: Children are often asked what they want to be "when they grow up"; college students are asked what they will do when they graduate; and professors plan what they will do when they retire.

Change is often equated with progress and holding on to traditions seems to imply old and outdated ways. Even though Americans are recycling more than before many purchased products are designed to have a short life and then be thrown away.

4.2.4 Communication People in organizations spend over 70% of their time interacting with others, either directly – in private or in meetings – or by phone and e-mail. Effective communication is therefore vital to "getting things done." When communicating across cultures, it can be even more important to communicate clearly because the intended message can sometimes be distorted by each party's "cultural filters." A person's culture influences how that person sends and receives messages.

A cultural filter is how a message is sent and received between two parties. When a message leaves the sender's cultural filter, the meaning interpreted by the receiver's filter sometimes differs from the intended message. Misinterpretations can happen to a small or large degree but are rarely deliberate. Misunderstandings can be common when communicating within your own culture and they potentially become more frequent when communicating across diverse cultures .The American preference for direct communication stems from various origins:

Egalitarianism – the ideal of egalitarianism, which dictates that people speak openly to each other on the basis of equality, rather than talking down to each other

Self-reliance and individualism – the values of self-reliance and individualism, which encourage free speech, stressing that success isn't dependent on others

Efficiency – the importance of efficiency in American culture, which is linked to straight talking immigrant experience – the immigrant experience of learning a second language, where typically, people initially used short English words or phrases to communicate

American communication characteristics. When you have an understanding of the American communication style, you are likely familiar with its main characteristics. The characteristics of any culture's communication style are typically shaped by what that culture regards as the purpose of communication. These characteristics then define the cultural "norms" for communication.

In the American culture, the primary focus in conversation is usually on information exchange. When interacting, they typically talk in a very straightforward manner, and the words they use are often said, and taken, in a very literal way. Americans generally tend to be problem-oriented in their business interactions, and they're also likely to be personal and informal with peers and superiors alike. Of course, these are "typical" characteristics; they won't apply to everyone.

There are several typical American communication characteristics:

Information exchange – People's lives overlap in the workplace. The workplace is an environment – or "context" – of shared knowledge and experience. For Americans, communication typically prioritizes the quick and efficient exchange of information. There are limited "ritual interactions" or pleasantries, and therefore it's considered a "low context" environment. Interaction in "high context" societies tends to be less focused on the exchange of information and more focused on relationship building.

Straightforward – Being straightforward in the American culture means asking direct questions and making direct requests. The efficient exchange of information requires coming straight to the point – whether in public or private – and therefore avoiding simply implying or hinting something.

Literal – Communicating literally in the American culture involves taking someone's word at face value. In other words, people say exactly what they mean without expecting others to read between the lines. problem-orientated – The American preference toward rational thinking means they tend to focus on finding solutions to problems. They may try to organize information in a direct and efficient manner in order to provide recommendations to rectify the situation. For example, if an American is listening to a colleague explain a problem with a work task, the American is like to assume the person is asking for help.

Personal – Given that Americans tend to be literal and straightforward, there's usually more of a reliance on logic than emotions in conversation. However, Americans can also be very personal. They may seek similarities to sympathize with you, but they reserve empathy for situations where there is a shared emotional experience.

Informal – Americans tend to have informal situations for communicating with each other. This enables them to converse freely with people from a range of backgrounds about activities and experiences. They use first names readily and early in a relationship, and typically consider it respectful to treat everyone the same.

The American communication style has a tendency to be personal. When you're introduced to an American, that individual might engage you in conversation on a range of topics in an effort to find common experiences. And if there is sufficient overlap, that person may conclude that you have a lot in common.

Actions and personal experience are the predominant topics of much American conversation. In combination with the direct and explicit communication styles of Americans, this can lead to a person revealing too much about themselves. This comfort with self-revelation is not typical of some cultures. And you may sometimes feel uncomfortable with it if you come across it in the workplace. Understanding that it's a reflection of the emphasis on the individual self in American culture may help you deal with it successfully. Effective communication is important in the workplace. However, when communicating across cultures, the message may be distorted by cultural filters. Understanding the characteristics of the American communication style can help reduce the chance of misunderstanding in an American workplace. There are six characteristics typical of the American communication style: a focus on information exchange, and a disposition to being straightforward, literal and problem-oriented, and personal and informal.

Low context cultures

Country like the United States, tend to be more heterogeneous and individualist and accordingly have evolved a more direct communication style. Less can be assumed about the other person in a heterogeneous society, and less is known about others in a culture where people prefer independence, self-reliance, and a greater emotional distance from each other. They cannot depend merely on manipulating context—not doing or not saying something that is always done or said in that situation—or communicating nonverbally to make themselves understood; they must rely more on words, and on those words being interpreted literally. Getting or giving information is the goal of most communication exchanges

Because of this Honda a company establish in Japan a country which communication styles is Indirect/High Context—it refers to the amount of innate and largely unconscious understanding a person can be expected to bring to a particular communication setting. In high context cultures, such as Japan, which tend to be homogenous and collectivist, people carry within them highly developed and refined notions of how most interactions will unfold, of how they and the other person will behave in a particular situation. Because people in high context cultures already know and understand each other quite well, they have evolved a more indirect style of communication. They have less need to be explicit and rely less on words to convey meaning— and especially on the literal meaning of the spoken word— and more on nonverbal communication. People often convey meaning or send messages by manipulating the context. Because these cultures tend to be collectivist, people work closely together and know what everyone else knows. The overriding goal of the communication exchange is maintaining harmony and saving face.

4.2.5 Religion

Religion in the United States is characterized by a diversity of religious beliefs and practices. Various religious faiths have flourished, as well as perished, in the United States. Religions that span the country's multicultural immigrant heritage, as well as those founded within the country, have led the United States to become one of the most religiously diverse countries in the world.

A majority of Americans report that religion plays a "very important" role in their lives, a proportion unique among developed nations

The majority of Americans (73-76%) identify themselves as Christians and about 15-20% have no religious affiliation. According to the American Religious Identification Survey (ARIS), which was cited by the US Census Bureau in their 2012 Statistical Abstract, 76% of the American adult population identified themselves as Christians, with 25% identifying themselves as Catholics, and 51% identifying themselves as Christians spanning some 30 religious groupings.

The same survey says that other religions (including, for example, Judaism, Buddhism, Islam, and Hinduism) collectively make up about 4% of the adult population, another 15% of the adult population claim no religious affiliation, and 5.2% said they did not know, or they refused to reply. According to a 2012 survey by the Pew forum, 36 percent of Americans state that they attend services nearly every week or more.

Freedom of religion

First Amendment specifically denied the federal government any power to enact any law respecting either an establishment of religion or prohibiting its free exercise, thus protecting any religious organization, institution, or denomination from government interference

Christianity

The largest religion in the US is Christianity, practiced by the majority of the population (76% in 2008[3]). From those queried, roughly 51% of Americans are Protestants, 24% are Catholics, 1.7% are Mormons and 1.7% have affiliations with various other Christian denominations. Christianity was introduced during the period of European colonization

Despite its status as the most widespread and influential religion in the US, Christianity has undergone a continuous relative decline in demographics. While the absolute number of Christians rose from 1990 to 2008 as the overall population increased, the actual percentage of Christians dropped from 86% to 76%.

Judaism

After Christianity, Judaism is the next largest religious affiliation in the US, though this identification is not necessarily indicative of religious beliefs or practices. There are between 5.3 and 6.6 million Jews. A significant number of people identify themselves as American Jews on ethnic and cultural grounds, rather than religious ones.

For example, 19% of self-identified American Jews believe God does not exist. The 2001 ARIS study projected from its sample that there are about 5.3 million adults in the American Jewish population: 2.83 million adults (1.4% of the U.S. adult population) are estimated to be adherents of Judaism; 1.08 million are estimated to be adherents of no religion; and 1.36 million are estimated to be adherents of a religion other than Judaism.] ARIS 2008 estimated about 2.68 million adults (1.2%) in the country identify Judaism as their faith. Jews have been present in what is now the US since the 17th century, though large scale immigration did not take place until the 19th century, largely as a result of persecutions in parts of Eastern Europe. The Jewish community in the United States is composed predominantly of Ashkenazi Jews whose ancestors emigrated from Central and Eastern Europe.

Approximately 25% of the Jewish American population lives in New York City

Islam

Islam is the 3rd largest faith in America, after Christianity and Judaism, representing 0.8% of the population. American Islam effectively began with the arrival of African slaves. It is estimated that about 10% of African slaves transported to the United States were Muslim. Most, however, became Christians, and the United States did not have a significant Muslim population until the arrival of immigrants from Arabic and East Asian Muslim areas.

Islam gained a higher profile through the Nation of Islam, a religious group that appealed to black Americans after the 1940s; its prominent converts included Malcolm X and Muhammad Ali. The first Muslim elected in Congress was Keith Ellison in 2006, followed by Andre Carson in 2008. Research indicates that Muslims in the US are generally more assimilated and prosperous than Muslims in Europe. Like other subcultural and religious communities, the Islamic community has generated its own political organizations and charity organizations

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THAILAND

4.1 Social Customs

Thais greet each other with a prayer-like gesture called a Wai. Generally, a younger person Wais an older person, who will then return it. Thais address each other (and usually foreigners) by their first names (which is also how they are listed in the telephone directory followed by their family name) This is prefixed by the polite word Khun. Public displays of affection, shouting and wild gesticulation are to be avoided as they are considered impolite.

The head is considered the highest part of the body, while the feet are considered the lowest, both literally and figuratively. Touching someone's head or pointing at people or things with the feet are, therefore, considered extremely rude. As with entering temples, shoes are removed before entering somebody's home.

4.2 Languages

The Thai language is tonal, with a change in pitch or accent capable of completely altering the meaning of a word creating a rather bewildering effect upon those who do not understand it. Over centuries the Thai language has evolved by absorbing words from Khmer, Mon, Chinese and Malay, and borrowing elements from Sanskrit and Pali. It was King Ramkamhaeng who first introduced the Thai alphabet in 1283, modeling it upon an Indian base with Khmer characters.

The modern Thai alphabet consists of forty-four consonants, twenty-four vowels, and four diacritical tone markers. The language is written from left to right, and words are strung together with only occasional breaks. Punctuation, upper or lower case lettering, prefixes or suffixes, noun genders, plurals, and verb conjugation are all absent from the language's grammar and sentence structure.

In Bangkok and the central plains, Standard Thai is spoken, and is considered the main dialect for business and the civil service. However there are three dialect variations in the north, north east (Isaan), and south, which, although they share most of the same words sound distinctly different. English is widely understood in Bangkok, where it is the major commercial language, and is spoken brokenly near beach resorts and tourist destinations, however off the beaten track English is rarely a language that is of any use.

4.3 Value & attitude Thai culture is deeply influenced by religion. With around 95% of the country being Theraveda Buddhist, the belief system and values of Buddhism play a huge role in day-to-day life. Throughout the country, the most important values that Thai people hold to are respect, self-control, and a non- confrontational attitude. Losing face by showing anger or by telling a lie is a source of great shame for Thai people.

In general, displays of emotion in public are viewed in a very negative light. No matter how frustrated or upset a person might feel, he or she will always strive to maintain a positive and friendly attitude, a sense of humor, and a smile.

Respect for elders and for those in higher social positions is also important. Hierarchies of social status characterize nearly every interaction. Children are expected to respect their parents and teachers. The young must show deference to the elderly. Those with highly prestigious positions in society, such as doctors, important public figures, and monks are almost revered.

Family is central to Thai life. Although many newly-married couples will set up their own households, it is not uncommon for extended family to live with them. Often, grandparents, cousins, aunts, and uncles will all live in the same household and help to raise children and provide for the family. Children are expected to show great respect for their parents, and they maintain close ties, even well into adulthood.

Although Thailand‘s family life and society has been traditionally male-dominated, women are granted considerable respect. Recent laws and legislation have allowed women more freedom to move out of traditional roles and into professions such as politics, medicine, and business. Respect and equal rights for women has, in recent decades, become an important part of Thailand‘s law and values.

Another concept that is very important in Thai culture is sanuk. Sanuk is a wide-reaching idea that embodies the playfulness and sense of humor that is so central to life in Thailand. It could refer to a spontaneous and joyful meeting with someone on the street, or a humorous pun made at just the right moment. The sense of humor and joie de vivre captured in sanuk is central to the Thai way of life.

4.4 Business protocol a) Relationships & Communication

This prefer doing business with people they respect. Relationships develop slowly and do not flourish after one meeting; it may take several meetings. Always be respectful and courteous when dealing with others as this leads to the harmonious relationships necessary within business. Thai communication is formal and non-verbal communication is often more important than verbal communication. Rank is always respected. The eldest person in the group is revered. It is difficult for most Thais to say no, so you must be cognizant of their non- verbal communication. Watch your body language and facial expressions, as these will be believed over your words. b) Business Meeting Etiquette

Appointments are necessary and should be made one month in advance. It is good idea to send a list of who will be attending the meeting and their credentials so that Thais know the relative status of the people attending the meeting and can plan properly. You should arrive at meetings on time as it signifies respect for the person you are meeting. Although most Thais will try to be on time, punctuality is a personal trait. Always send an agenda and material about your company as well as data to substantiate your position prior to the meeting. Allow sufficient time for the material to be reviewed and digested. Remain standing until told where to sit. The hierarchical culture has strict rules about rank and position in the group. Written material should be available in both English and Thai. You must be patient. c) Dress Etiquette

Business attire is conservative. Men should wear dark coloured conservative business suits. Women should wear conservative business suits or dresses. Women need not wear hosiery. Since Thai's judge you on your clothing and accessories, ensure that your shoes are always highly polished.

d) Business Cards

Business cards are given out after the initial handshake and greeting. In theory, you should give your card to the most senior person first. . It is advisable to have one side of your business card translated into Thai. Using your right hand, deliver your business card so the Thai side faces the recipient. Look at a business card for a few seconds before placing it on the table or in a business card case. As in most Asian countries, it is polite to make some comment about the card, even if it is only to acknowledge the address

4.5 Communication

The most widely use language in Thailand is standard Thai, or the one that are taught commonly all over Bangkok and well-known in some other countries. But today many people are able to speak English more likely. (Mahidol University, 2002) The traditional form of greeting each other in Thailand is ―wai‖ this is practice by the person of the lower status to the person that is more superior or in simply it is base on hierarchy relationships among persons, this result from the fact that Thailand has quite high power distance when compared to Germany which is 64. (Clearlycultural, 2009) ―Wai‖ is done by raising both hands with palms and fingers joined like when you pray and bow gently. If you receive ―wai‖ from other people, you should return wai back to them too. (Somchai, 2009) ―Wai‖ is not only used for greeting but also for apologizing. However, if a child offer you a ―wai‖ then returning is not necessary because a child has a lower status. Saying hello in Thailand is ―sa-wad-dee‖ but if you are a male put ―krub‖ at the end of the word and if you are a female put ―kha‖. These end words are very important and are commonly used in Thailand when talking to strangers or person with higher status, these words is to show politeness and respect to elders. Thai people usually call each other with their first names or nick names, even if it is their first met. When talking to siblings or older brothers and sisters, they will use the word ―Peee‖, usually written as ― P‘ ‖. For instance, a sister calling her brother, whose name is David, she would call him ―P‘David‖.

Thailand people are very polite and respecting elders is extremely important. To illustrate, students should respect teachers, children should respect their parents, etc. Living in Thailand, means having to learn to avoid confrontation, Thai people tend to express their feelings very indirectly, it is common that they will avoid conflict rather than clarify the true meaning because Thais have the concept of ―losing face‖.

Using foot to point at stuff is extremely unacceptable and inappropriate in Thailand. There is case in which, a western factory worker use foot to point at tools to indicate where it is to the Thais and it turns out very inappropriate. Moreover, pointing or using index finger is considered impolite in for the Thais. Thailand is still conservative when it comes to communication of different genders. Men don‘t touch women in Thailand, unless it is necessary. Thailand has a smiling culture, when Thai people meet the first greeting they are most likely to express is smile. Thais are fun people, they love having fun. If you are in Thailand and behave in a smiley, friendly attitude, the Thais will be very happy and will be willing to do anything for you.

4.6 Religion a) Buddhism

Buddhism in Thailand is largely of the Theravada school. Nearly 95% of Thailand's population is Buddhist of the Theravada school, though Thai Buddhism has statìrted to be practiced alongside Chinese indigenous religions by the large Thai Chinese population.[2]

Buddhist temples in Thailand are characterized by tall golden stupas, and the Buddhist architecture of Thailand is similar to that in other Southeast Asian countries, especially Cambodia and Laos, which share a cultural and historical heritage with Cambodia. b) Chinese traditional religions

Many within the large Thai Chinese population practice various Chinese traditional religions, including the worship of local gods, Chinese ancestral worship, Taoism, Confucianism, Deism and other new sects of the folk religion. Despite the large number of followers and temples these religions have no state recognition, their temples are not counted as places of worship, and their followers are counted as "Theravada Buddhists" in officially-released religious figures. Chinese temples are called sanchao in Thai language.

The Chinese folk religion of Thailand has developed local features, including the worship of local gods. Major Chinese festivals such as the Nian, Zhongqiu and Qingming are widely celebrated especially in Bangkok, Phuket, and other parts of Thailand where there are large Chinese populations.

The Chinese in the city of Phuket are noted for their nine-day vegetarian festival between September and October. During the festive season, devotees will abstain from meat and mortification of the flesh by Chinese mediums are also commonly seen, and the rites and rituals seen are devoted to the veneration of Tua Pek Kong. Such traditions were developed during the 19th century in Phuket by the local Chinese with influences from Thai culture. c) Islam It is often thought that the majority of the country's Muslims is concentrated in the kingdom's three Southernmost provinces of Yala, Pattani and Narathiwat. However, the Thai Ministry of Foreign Affairs' reports that only 18% of Thai Muslims live in the border provinces. The rest are scattered throughout Thailand, with the largest concentrations in Bangkok and throughout the southern peninsula. According to the National Statistics Office, in 2005, Muslims in Southern Thailand made up 30.4% of population over the age 15, while constituting less than 3% in the other regions of the country.

Thailand's Muslim population is diverse, with ethnic groups having migrated from China, Pakistan, Cambodia, Bangladesh, Malaysia, and Indonesia, and including some indigenous Thais. About two- third of the Muslims in Thailand are of Malay ancestry, though most no longer speak that language.

As of 2010, there were 3,952,000 Muslims living in Thailand, making up 5.8% of the total population. The Muslims are younger compared to the general population, comprising 6.28% of those in the age- group of 0–4 years, but only 3.91% of those who are 85 years or more. d) Christianity

Christianity was introduced by European missionaries as early as the 1550s, when Portuguese mercenaries and their chaplain arrived in Ayutthaya. Historically, it has played a significant role in the modernization of Thailand, notably in the social and educational institutions (e.g. orphanages, schools and colleges). It represents 0.7% of the national population.

Thailand's Department of Religion, currently under the Ministry of Culture, has formally recognized five major Christian churches/denominations: the Roman Catholic Church, the Southern Baptists, the Seventh-day Adventists, the Church of Christ in Thailand and the Evangelical Fellowship of Thailand. Although the national budget for religious purposes has historically been designated for Buddhist structures, facilities and activities, since at least the mid-1980s it has been providing token amounts of budget for programs of Christian groups.[citation needed] Although not officially recognized, Missionary (LDS Church)missionaries of the The Church of Jesus Christ of Latter-day Saints have been active in Thailand for decades.

There are a growing group of evangelical foreign missionaries and residents who are establishing churches and prayer groups throughout Thailand. One of the largest is Youth with a Mission.[citation needed] Presently YWAM has over 200 full-time foreign staff and over 100 Thai staff, ministering in 20 locations. Another missionary organization, OMF International, has an outreach to place Christian teachers in the Kingdom's schools. e) Hinduism

Several thousand Hindus live in Thailand, mainly in the larger cities. Thailand its earliest days was under the rule of the Khmer Empire, which had strong Hindu roots, and the influence remains even today. The popular Ramakien epic is based on the Hindu Ramayana. The former capital of Ayutthaya was named for Ayodhya, the Indian birthplace of the Hindu god Rama.

Brahmin rituals are still common, including the use of holy strings for blessing and pouring of lustral water from conch shells. Hindu deities are worshipped by many Thais despite their official Buddhism, and statues of Ganesh, Indra, and Shiva are everywhere to be seen. The statue of Shiva and Parvati in Ardhanarishvara form is on Sukhumvit in Bangkok. The Samudra manthan - wherein Devas and Asuras churn the ocean of milk, with Vishnu's Kurma Avatar (also standing on top of the mountain in his four-armed form) carrying a mountain as a pivot - is showcased at Suvarnabhumi Airport in Bangkok. Another relic of Hinduism is the mythical Garuda, now a symbol of the monarchy. According to the Thai Census of 2005, there are 52,631 Hindus living in Thailand, making up just 0.09% of the total population f) Freedom of religion

The law provides for freedom of religion, and the government generally respects this right in practice; however, it does not register new religious groups that have not been accepted into one of the existing religious governing bodies on doctrinal or other grounds. In practice, unregistered religious organizations operate freely, and the government's practice of not recognizing any new religious groups does not restrict the activities of unregistered religious groups.

The government officially limits the number of foreign missionaries that may work in the country, although unregistered missionaries are present in large numbers and are allowed to live and work freely. There have been no widespread reports of societal abuses or discrimination based on religious belief or practice. However, in the far southern border provinces, continued separatist violence has resulted in mistrust in relations between the Buddhist and Muslim communities.

MALAYSIA

ELEMENT OF CULTURE

-SOCIAL CULTURE

Malaysia is a country that is known for its rich and cultural heritage. Here, people strongly believe in respecting each other's culture and religion. Here, one can find a good mix of Malay, Chinese and even Indian communities. The Malay people cover more than half of the population of Malaysia. As per the laws of the Malaysian Constitution, all Malays are basically Muslims and one can get a glimpse of the traditional Malay culture in the village areas.

The Malaysian culture also includes the Chinese and they were known to have adopted the Malaysian culture since the ancient days. With the practice of intermixed marriages there emerged a whole new group where the males were called the babas and the females were known as the nyonyas. The Chinese therefore are the second largest group out here.

The Indians are the third largest group of people that form a major part of the Malaysian culture. The Indians had always visited this place since the ancient days.

Thus, we see how different races have formed a part of the culture of Malaysia. The unity in diversity can be seen in the celebration of various festivals by all races that reside here. Apart from this, there are also certain tribes that form the oldest inhabitants of Malaysia. This forms to be at least 5 percent of the total population. The Malaysian culture shows a lot of modern influences that is seen in the western culture today. Today, we can see many influences even in the native families, which speak the English language and follow a modern culture of pubbing and are a party going lot. This does not mean that they do not follow their customs and traditions. Today, young girls still use a piece of cloth that covers their head which is called Tudung. Family values forms still have a strong foothold in the culture of Malaysia.

-LANGUAGE

Old Malay ( 682 - 1500 C.E. )

Also known as Bahasa Melayu Kuno , it was written in the ancient writings of Rencong, Pallava, and Kawi. Even the Jawi script during this period was used extensively with Sanskrit.

Early Modern Malay (1500-c1850)

The prominence of Malacca which embraced Islamic faith made Malay into a language used in the spread of Islam. Malay underwent radical changes with infusion of Arabic, Persian and Hindi Vocabulary. Introduction of Arabic rhetorical style. Changes in grammar based on oral speech.

Portuguese conquest of Malacca in 1511 and subsequent persecution of moslems contributed to the rise of Bintan and Penyengat as centres of Malay language.

The 17th century also saw the emergence of the great Romances orHikayat as the Malays recorded their experiences, religious laws and oral literature in Jawi script. Sir Richard O. Winstedt categorized the Hikayatas Bahasa Melayu Klasik.

Late Modern Malay ( c1850 - 1957 )

Late Modern Malay incorporates loan words from Portuguese, Dutch and English. Apart from Islam, it has also become a tool to proselytize Christianity as a result of translation of the bible into Malay by Dutch scholars.

On the Riau island of Penyengat, Malay scholar Raja Ali Haji complete the first pro- Arabic Malay Grammar book in Bahasa Malaysia history called Bustanul-Katibin. It was the dawn of commercialized printing press, the publication of first Malay language newspapers in Latin and Arabic scripts. Japanese occupation of the Malay world during World War II hastened independent movements. this led to liberation of Malaya from British colonists, yes! Sejarah kemerdekaan Malaysia and Malay language elevated to the status of Malaysian language or, the national language of Malaysia.

Contemporary Malay ( after 1957 )

Malaysia, Indonesia and Brunei set up national language planning agencies in an effort to draw their versions of Malay together. They tried something called " Ejaan Melindo" but it was too impractical.

In 1959, Indonesia and Malaysia signed an agreement to standardize the Malay spelling system of both countries. This is necessary because Indonesia's Romanized writing has been influenced by the Dutch where as Malaysia, the British system. They named this unified system "Melindo", an acronym for Bahasa Melayu and Bahasa Indonesia.

-VALUE AND ATTITUDES

Moral values are the standards of moral development which are vital importance to be embedded to everyone, especially the students. However, according to previous studies, to be sure the level of moral values in students is still very low, primarily in terms of knowledge and attitudes of moral values especially when students carry out lab assessment. Therefore, this study was undertaken to explore the extent of students‘ knowledge in terms of moral values and attitudes to identify the tendency of good values primarily in lab assessment. A total of 196 students consisted of students at certificate and diploma level of Institut Kemahiran Mara Sungai Petani (IKMSP) and Pusat Latihan Teknologi Tinggi Batu Pahat (ADTEC) used to be respondents of this study. The questionnaire is the main collective instrument in this study as well as interviews and observations as supporting instruments. The collected data then were analyzed using SPSS version 16.0 for the mean, standard deviation and t-test, while the content analysis were used for the interview data and observations. The findings showed that all the values involved in this study were practiced by students during teaching and learning process in laboratory. It is however, different result goes for lecturers whereas only part of the lecturers tends to practice this value to the students. Therefore, some researchers proposed several techniques to ensure both students and lecturers apply the moral values during lab assessment. As for example, it is necessary for Institut Latihan Awam should be monitored from time to time to ensure that the lecturers to apply moral values in the process of teaching and learning at the workshop.

-Communication

As an extension to the need to maintain harmonious relations, Malaysians rely on non-verbal communication (i.e. facial expressions, tone of voice, body language, etc). Such a communication style tends to be subtle, indirect and. Malays may hint at a point rather than making a direct statement, since that might cause the other person to lose face. Rather than say "no", they might say, "I will try", or "I‘ll see what I can do". This allows the person making the request and the person turning it down to save face and maintain harmony in their relationship. If you are unsure about the affirmative response you received, you may want to continue the discussion, re-phrasing the question in several different ways so that you may compare responses. If the response was given because the Malaysian did not know how to respond in the negative without causing offense, this may come out. Alternatively, they may have someone else give you the bad news. Silence is an important element of Malaysian communication. Pausing before responding to a question indicates that they have given the question appropriate thought and considered their response carefully. Many Malaysians do not understand the Western propensity to respond to a question hastily and can consider such behavior thoughtless and rude. Malaysians may laugh at what may appear to outsiders as inappropriate moments. This device is used to conceal uneasiness. Do not show anger in public as it makes Malaysians uncomfortable and creates a feeling of powerlessness. There is a greater chance of achieving a good outcome id you are calm, whereas little is resolved by shouting.

-Religion

Nearly all the world religions, including Islam, Buddhism, Hinduism, and Christianity are present in Malaysia. Religion correlates strongly with ethnicity, with most Muslims Malay, most Hindus Indian, and most Buddhists Chinese. The presence of such diversity heightens the importance of religious identity, and most Malaysians have a strong sense of how their religious practice differs from that of others (therefore a Malaysian Christian also identifies as a non-Muslim). Religious holidays, especially those celebrated with open houses, further blend the interreligious experience of the population. Tension between religious communities is modest. The government is most concerned with the practices of the Muslim majority, since Islam is the official religion (60 percent of the population is Muslim). Debates form most often over the government's role in religious life, such as whether the state should further promote Islam and Muslim practices (limits on gambling, pork-rearing, availability of alcohol, and the use of state funds for building mosques) or whether greater religious expression for non-Muslims should be allowed.

Religious Practitioners. The government regulates religious policy for Malaysia's Muslims, while the local mosque organizes opportunities for religious instruction and expression. Outside these institutions, Islam has an important part in electoral politics as Malay parties promote their Muslim credentials. Hindu, Christian, and Buddhist clergy often have a presence in Malaysian life through cooperative ventures, and their joint work helps to ameliorate their minority status. Religious missionaries work freely proselytizing to non- Muslims, but evangelists interested in converting Muslims are strictly forbidden by the state.

Rituals and Holy Places. Malaysia's most prominent holy place is the National Mosque, built in the heart of Kuala Lumpur in 1965. Its strategic position emphasizes the country's Islamic identity. Countrywide, the daily call to prayer from the mosques amplifies the rhythm of Islamic rituals in the country, as does the procession of the faithful to fulfill their prayers. Reminders of prayer times are included in television programs and further highlight the centrality of Islam in Malaysia. Important holidays include the birth of the Prophet and the pilgrimage to Mecca, all of which hold a conspicuous place in the media. The month of fasting, Ramadan, includes acts of piety beyond the customary refraining from food and drink during daylight hours and is followed by a great celebration. Non-Muslim religious buildings, practices, and holidays have a smaller public life in Malaysia. Part of this is due to fewer believers in the country, and part is due to public policy which limits the building of churches and temples along with the broadcasting of non-Muslim religious services. The important non-Muslim holidays include Christmas, Deepavali (the Hindu festival of light), and Wesak day (which celebrates the life of the Buddha). The Hindu holiday of Thaipussam merits special attention, because devotees undergo spectacular rites of penance before vast numbers of spectators, most dramatically at the famous Batu Caves, located in the bluffs outside of Kuala Lumpur.

Death and the Afterlife. Malaysians have a strong interest in the metaphysical, and stories about spirits and ghosts whether told in conversation, read in books, or seen on television gain rapt attention. Many of these stories sustain a relationship with people who have passed away, whether as a form of comfort or of fear. Cemeteries, including vast fields of Chinese tombs marked with family characters and Muslim graves with the distinctive twin stones, are sites of mystery. The real estate that surrounds them carries only a modest price due to the reputed dangers of living nearby. Muslim funerals tend to be community events, and an entire neighborhood will gather at the home of the deceased to prepare the body for burial and say the requisite prayers. Corpses are buried soon after death, following Muslim custom, and mourners display a minimum of emotion lest they appear to reject the divine's decision. The ancestor memorials maintained by Chinese clans are a common site in Malaysia, and the familiar small red shrines containing offerings of oranges and joss sticks appear on neighborhood street corners and in the rear of Chinese-owned shops. Faith in the efficacy of the afterlife generates considerable public respect for religious graves and shrines even from non-adherents.

BRAZIL

4.2.1 Types of social classes in brazil

 Social structure  The Brazilian society often relies on social classes when segmenting the demography of their population. This article will give you an introduction to how the concept of social classes works in Brazil.

Despite being considered an old fashioned social institution, social classes in Brazil originated in the early 50's, when the country experienced an economic boom that would last until late 70's.

Social classes have been a useful tool for strategist and marketers, a way to segment the 190 million people living in Brazil. The huge differences between rich and poor is the direct reason why social classes have such a relevance for segmenting demography in Brazil.

There are several different concepts of social classes in Brazil, but the one that is mostly adopted by the market classifies society as letters from A to E. This definition is based, overall, on the households gross monthly income, as it follows bellow:

Class A: above BRL 10.200

Class B: above BRL 5.100 Class C: above BRL 2.040

Class D: above BRL 1.020

Class E: below BRL 1.020

As the differences in cost of living is quickly increasing between the metropolitan and rural areas of Brazil, this demographic segmentation will translate into different purchasing power depending location of the household.

 Educational level  Classes A and B: usually composed by those who completed higher education. The younger generations of these classes tend to be fluent in several languages.  Class C: most people in this class have finished high school and there is also a significant quantity of people who completed higher education or at least have a technical level degree.  Class D: people who have not finished high school.  Classe E: people who have not finished elementary school and illiterate people.

 Occupation

The educational levels previously presented support the level of submission among the five different classes. This employment relationship is presented as:

 Class A: composed by bankers, investors, business owners, major landowners and people with extraordinary skills for the industry they operate in.  Class B: composed by directors and managers, politicians, judges, justices, prosecutors, well graduated professors, doctors, well qualified engineers and lawyers, etc.  Class C: composed by those who provide services directly to the wealthier groups, such as teachers, managers, mechanics, electricians, nurses, etc.  Class D: composed by people who provide services to Class C, such as housemaids, bartenders, bricklayers, people who work for the civil construction companies, small stores sellers, low-paid drivers, etc.  Class E: composed by people who earn minimum salaries, such as cleaners, street sweepers, and also by unemployed people.

 Geographic Location

 In some regions there is a strong predominance of classes D and E, which is the case of North, Northeast and Central-West regions (with the exception of Brasília).

However, it is in the larger cities that social differences are most visible. A city like São Paulo, for example, has people from all five social classes. Sometimes this inequality can be observed in the same neighborhood, where an upscale building is located right next to a shantytown.

The same applies to Brasilia, Brazil's capital and one of the cities that, along with São Paulo, present the highest levels of inequality.

This inequality occurs due to an intense migration movement that results on a significant population increase, decreasing job opportunities and salaries.

4.2.2 LANGUAGE IN BRAZIL

Languages Spoken in Brazil: Portuguese

Portuguese Language Museum in São Paulo

Language is one of the most significant aspects of Brazil‘s national unity and identity. Portuguese, which is the official language of Brazil, is also spoken by over 99 percent of the country‘s population.4 However, although Portuguese is the first language for the vast majority of Brazilians, numerous foreign words have expanded the national lexicon to give the national language its own unique identity. In fact, there is roughly the same difference between the Portuguese spoken in Brazil and that spoken in Portugal as there is between the English spoken in the United States and the English spoken in the United Kingdom.

Since it was first introduced in Brazil in the 16th century, the Portuguese language has undergone many transformations, both in the mother country of Portugal and its former colony Brazil. The two countries have mostly standardized their spellings, but pronunciations, vocabularies, and the meanings of words have diverged so widely from the original tongue that it now may be easier for some Brazilians to understand Spanish-speaking people and programs from Latin American countries than people and programs from Portugal.5 Over the years, Italians, Germans, Japanese, and Spanish-speaking immigrants have introduced new words and expressions into what is now considered Brazilian Portuguese, such as the omnipresent expression tchau (―farewell‖) that is used by Brazilians, which was originally adopted from the Italian word ciao.6 Foreign products and technologies have also introduced additional terms.

Within the country of Brazil, there are no distinct dialects of Portuguese, but only a modest regional disparity in things like accent, vocabulary, and the use of personal nouns, pronouns, and verb conjugations. These variations tend to ebb as a result of the nation‘s mass media, especially the national television networks that are viewed by the majority of the Brazilian population.

The written form of Portuguese, which is standard throughout Brazil, follows national rules of spelling and accentuation, traits that are revised every so often for the purpose of simplification. These rules are slightly dissimilar from the rules followed in Portugal. The written form of Brazilian Portuguese varies appreciably from the verbal language and is used properly by only a small minority of the population, typically the most educated citizens. The rules of grammar tend to be very complex and permit more flexibility than, say the English or Spanish languages. As a result, many immigrants and visitors to Brazil who may have a high command of spoken Portuguese tend to have difficulty in terms of writing it properly.

Due to the enormous size of Brazil, along with its self-sufficiency, and relative isolation, foreign languages are not widely heard around the country. Like in many South American and European countries, English is often studied in school, particularly in the nation‘s private schools which teach a college- preparatory curriculum. English has now replaced French in Brazil as the nation‘s principal second language among educated people.8Because Spanish is similar to Portuguese, most Brazilians can understand it and many can communicate in it, although Spanish speakers usually have difficulty understanding spoken Portuguese.

4.2.3 Value and Attitudes

 Focus on relationship  This is a relationship focused and not system oriented society. Together with the sense of immediacy, this means that, in both personal and business life, contacts are made face-to-face rather than through written communication. Phone calls are considerably lengthy too. Time is spent on establishing and maintaining relationships. In business good personal contacts are important because, given the choice, Brazilians put people they know first and, if necessary, even bend the rules to accommodate their needs.  Jeitinho brasileiro  The jeitinho is the Brazilian means of dealing creatively with life‘s everyday complications. Literally translated as ―a little way‖, it can be taken to mean ―there has to be another way‖. In practice, it means that regardless of the rules or systems in place, where there is a will there has to be a way around them. If you take the country‘s maddening bureaucracy and add the Brazilian tendency how it comes to exist. The jeitinho is so ingrained in daily life that you can see examples everywhere: managing to get a seat when all the places are booked up, travelling with more luggage than is allowed, or successfully ordering something that is not on restaurant menu. Even in legal matters, if someone wants something that is not permitted, he or she will try to figure out a loophole until they find an alternative way.  Everyone for themselves  The lack of social welfare is partially the reason for the high level of individualism in Brazilian society. Everyone has to fend for themselves and do the best they can. If that means having to go over other people‘s heads or take advantage of certain situations, some will choose to do so. Therefore, doing things like using a jeitinho to pay less tax (justified, perhaps, by saying that politicians misuse taxpayers‘ money) becomes what many consider to be an acceptable practice.

 Brazil family values  The family is the foundation of the social structure and forms the basis of stability for most people.  Families tend to be large (although family size has been diminishing in recent years) and the extended family is quite close.  The individual derives a social network and assistance in times of need from the family.  Nepotism is considered a positive thing, since it implies that employing people one knows and trusts is of primary importance.

Etiquette and Customs in Brazil

 Meeting Etiquette  Men shake hands when greeting one another, while maintaining steady eye contact.  Women generally kiss each other, starting with the left and alternating cheeks.  Hugging and backslapping are common greetings among Brazilian friends.  If a woman wishes to shake hands with a man, she should extend her hand first.

 Gift Giving Etiquette  If invited to a Brazilian's house, bring the hostess flowers or a small gift.  Orchids are considered a very nice gift, but avoid purple ones.  Avoid giving anything purple or black as these are mourning colours.  Handkerchiefs are also associated with funerals, so they do not make good gifts.  Gifts are opened when received.

 Dining Etiquette  If you are invited to a Brazilian's house:  Arrive at least 30 minutes late if the invitation is for dinner.  Arrive up to an hour late for a party or large gathering.  Brazilians dress with a flair and judge others on their appearance. Casual dress is more formal than in many other countries. Always dress elegantly and err on the side of over-dressing rather than under- dressing.  If you did not bring a gift to the hostess, flowers the next day are always appreciated.

Business Etiquette and Protocol in Brazil

 Relationships & Communication  Brazilians need to know who they are doing business with before they can work effectively.  Brazilians prefer face-to-face meetings to written communication as it allows them to know the person with whom they are doing business.  The individual they deal with is more important than the company.  Since this is a group culture, it is important that you do not do anything to embarrass a Brazilian.  Criticizing an individual causes that person to lose face with the others in the meeting.  The person making the criticism also loses face, as they have disobeyed the unwritten rule.  Communication is often informal and does not rely on strict rules of protocol. Anyone who feels they have something to say will generally add their opinion.  It is considered acceptable to interrupt someone who is speaking.  Face-to-face, oral communication is preferred over written communication. At the same time, when it comes to business agreements, Brazilians insist on drawing up detailed legal contracts.

 Business Negotiation  Expect questions about your company since Brazilians are more comfortable doing business with people and companies they know.  Wait for your Brazilian colleagues to raise the business subject. Never rush the relationship- building time.  Brazilians take time when negotiating  Do not rush them or appear impatient.  Expect a great deal of time to be spent reviewing details.  Often the people you negotiate with will not have decision-making authority.  It is advisable to hire a translator if your Portuguese is not fluent.  Use local lawyers and accountants for negotiations.  Brazilians resent an outside legal presence.  Brazilian business is hierarchical.  Decisions are made by the highest-ranking person.  Brazilians negotiate with people not companies.  Do not change your negotiating team or you may have to start over from the beginning.

 Business Meeting Etiquette  Business appointments are required and can often be scheduled on short notice; however, it is best to make them 2 to 3 weeks in advance.  Confirm the meeting in writing. It is not uncommon for appointments to be cancelled or changed at the last minute.  In Sao Paulo and Brasilia it is important to arrive on time for meetings. In Rio de Janeiro and other cities it is acceptable to arrive a few minutes late for a meeting.  Do not appear impatient if you are kept waiting. Brazilians see time as something outside their control and the demands of relationships takes precedence over adhering to a strict schedule.  Meetings are generally rather informal.  Expect to be interrupted while you are speaking or making a presentation.  Avoid confrontations. Do not appear frustrated with your Brazilian colleagues.

 Dress Etiquette  Brazilians pride themselves on dressing well.  Men should wear conservative, dark coloured business suits. Three-piece suits typically indicate that someone is an executive.  Women should wear suits or dresses that are elegant and feminine with good quality accessories. Manicures are expected.

 Business Cards  Business cards are exchanged during introductions with everyone at a meeting.  It is advisable, although not required, to have the other side of your business card translated into Portuguese.  Present your business card with the Portuguese side facing the recipient

4.2.4 Communication

Many senior and middle ranking Brazilian business executives speak excellent English and in fact many of them may have studied abroad in the USA or Europe. However, English is by no means universally spoken and when dealing with people outside the major commercial centres, an ability to speak Brazilian Portuguese is extremely useful. (Try to avoid using Spanish as this can be seen as culturally insensitive. Brazilians are proud of their uniqueness in South America as non-Spanish speakers.) If doing business in Brazil for the first time, check out whether you will need a translator or not.

As with many Latin countries, communication tends to be predominantly oral rather than through the written word. Brazilians tend to put the spoken before the written word. When sending something in a written format it is usually a good idea to follow it up with a phone call or a visit.

Verbal communication in Brazil can often be viewed as being theatrical and over-emotional by those cultures which place a great significance on the maintenance of professional reserve in all situations. In a country like Brazil, if you feel something strongly, you show it. Overt signs of emotion definitely do not imply lack of conviction and should be taken as the deeply felt belief of the speaker.

The use of significant amounts of exaggerated body language (by the standards of less tactile cultures) plays a significant role in normal communication. Brazilians are very tactile — even across the sexes — and work at very close proximity. They also exhibit strong levels of eye contact when speaking to people. This combination of tactility, proximity and a steady gaze can be intimidating for some culture (many Asian cultures for example), but it is important that you adapt to these issues as quickly as possible otherwise your own reserve could be misinterpreted as unfriendliness.

. Be careful when using humour in very serious situations as it can be viewed as lacking in gravitas. However, in everyday situations it is important to be seen as good company and entertaining. Life is to be lived and enjoyed. . Portuguese is the official language of Brazil, but in the business environment English is widely used and undertood. . Brazilian communication is complex, and includes many elements of verbal and non-verbal communication, as well as vast use of body language. . Brazil is a collectivist society which places family at high importance. This is also evident in business culture where often family members will be found working for the same company, whether family owned or not. . Brazilians place high emphasis on relationships. It is essential to take time to get to know your Brazilian counterparts, both personally and professionally. . Make eye contact. This shows that you are interested in your counterpart and paying attention. . Good topics of conversation include soccer, weather, traffic (especially in Sau Paulo), cultural events, etc. Sensitive topics such as security, poverty, deforestation, corruption and comparisons between the Brazilian and Argentinean soccer teams should be avoided. . Brazilians are considered a bit loud. They all speak at the same time with a tone of voice that is slightly higher than usual. They may also interrupt the speaker in order to add a comment or opinion. This is not perceived as rudeness or lack of interest. . Brazilians touch each other a lot during conversation. This is a way to get closer to each other- closeness inspires trust, and with trust one can build long term relationships.

4.2.5 Religion

As with any other country in the world, Brazil is a melting pot of different religions. In fact, due to the diversity of its cultures and its heritage, this country boasts an array of religious ideals and affiliations. Interestingly, recent censuses have revealed that around 90% of the Brazilian population subscribe to some religious ideal, making it more religiously inclined than any other South American country. Only around 1% of its population do not believe in a God, or a supreme being in some form or another.

Its religious inclination is also extremely diverse, despite the fact that around three-quarters of the population claim to be Roman Catholics. In fact, there are more Catholics in Brazil than in any other country in the world.

Christ The Redeemer statue on the Corcovado hill in Rio de Janeiro.In terms of Christian religions, the main churches in Brazil are:

• Catholic • Protestant • Methodist • Episcopal • Pentecostal • Lutheran • Baptist

Catholicism was introduced to Brazil when the European settlers arrived with the aim of ‗civilising‘ the local native people. They built churches and brought religious leaders into the country to teach young and old alike the doctrines of Catholicism. During the 19th century, Catholicism was made the official religion of Brazil. This meant that Catholic priests were paid a salary by the government, including them in the political affairs of the country. As such, Catholicism became an integral part of the management and administration of Brazil and its people. Many of the Brazilian festivals are based on the Catholic religion.

Other religions (that is, of non-Christian origins) include: • Jewish • Muslim (or Islam) • Buddhist • Jehovah‘s Witness • Shinto • Rastafarian • Candomble • Umbanda

Spiritism is also one of the significant, although minor, religions in Brazil. Spiritistic practices are based largely on ancient Amerindian cultures as well as the influence of the African cultures and customs that were introduced centuries ago, when slaves were brought over to Brazil from the ‗Dark Continent‘ of Africa. Such tribes and cultures were particularly inclined towards the worship of spirits since they had not been influenced by more structured notions of creation, which hailed from a reliance on the teachings of Bible.

Candomble and Umbanda were also introduced by the African cultures, although they evolved into what they are today, displaying only elements of ancient customs. Originally, these religions involved inciting gods with chanting and dances. Christians viewed these as being satanic. Today, though, they are merely classified as spiritistic.

Religion forms a very important part of the identity of any nation and its culture. The complexity of religion in Brazil only testifies once again to its depth as a country.

UNITED STATES

5. Modes of Entry into International Business Ownership advantages Aiming for a zero-accident society

Vehicle safety has improved markedly over the past several decades. In 1970, the number of people killed in traffic accidents in Japan was 16,765. One of the reasons is surely the advancements in safety technology, such as the car body design, seat belts and air bags which help protect car occupants when there is an impact.

However, the number of traffic accidents and injuries themselves has not really changed. In order to realize a safer car society, safety technology is needed which helps prevent accidents from happening, not only reducing the damage if occur as then a zero-accident future might be attainable.

To avoid colliding with other cars or pedestrians, driver must avoid getting close to danger in the first place. As we looked at Nissan‘s Forward Emergency Braking technology, the Emergency Assist for Pedal Misapplication, the Blind Spot Warning system and the Lane Departure Warning system, all of these technologies can help the driver avoid getting too close to dangers.

Avoiding danger through three processes

In order to avoid getting too close to dangers, the driver should first be aware of his or her surroundings. The Forward Emergency Braking technology assist the driver by monitoring the distance and speed of the vehicle in front, while the Lane Departure Warning system can detect certain lane markings on the road as well as the relative location of the car. After awareness comes judgment. While it is the driver‘s responsibility to make accurate decisions regarding potential danger, the car can help with this judgment with the assistance of newly-develop technologies. If it judges the risk of collision to be high, the next step is action and if it determines that a collision is unavoidable, it applies braking to assist the driver, avoiding or mitigating a collision. Awareness, Judgment, Action—these are the processes through which Safety Shield technologies can help drivers avoid certain dangers.

LOCATION ADVANTAGE

Location advantages are those factors that affect the desirability of host country production relative to home country production. Firms routinely compare economic and noneconomic characteristics of the home market with those of the foreign market in determining where to locate production facilities. If home country production is found to be more desirable than host country production, the firm will choose to enter the host country market via exporting. If the host country production is more desirable, however, the firm may invest in foreign facilities or license the use of its technology and brand names to existing host country producers.

The choice between home country and host country production is affected by many factors. Relative wage rates and land acquisition costs in the countries are important, but firms may also consider surplus or unused capacity in existing factories, access to research and development (R&D) facilities, logistical requirements, the needs of customers, and the additional administrative cost of managing foreign facility. Political risk must also be considered. The presence of civil war, official corruption, or unstable governments will discourage many firms from devoting significant resource to a host country.

There are number of obvious advantages for Nissan to allocate investment in the United Kingdom:

Besides that, in 2011 UK government introduced the policy that made drivers eligible for £5,000 electric car grant. The efficiency of the Sunderland plant, Nissan claims that its Sunderland plant, which currently employs more than 6,000 people, was the most efficient car factory in Europe.

Nissan in Sunderland originally drew its worker from the declining local shipbuilding and mining industries. In 1984, the cherished former RAF airbase was shut as a loss-making airport. At the time, the UK economy was struggling to recover from recession and unemployment hit record levels of 3.3m as shipyards and coalmines in the North East also shut.

However, the closure of the airfield would lead to a revitalisation of the local company and the entire automotive industry in the UK. The airfield had been identified by Japanese car maker Nissan as the site for its first European car plant and a deal was agreed with Margaret Thatcher, the Prime Minister, who had made the area an enterprise zone.

In August 1986, the new plant produced its first car. Today, exactly 25 years on, Nissan‘s Sunderland factory is the biggest in the UK.

It has produced more than 6m cars since it opened and employs more than 5,000 people. But the long journey from airfield to car plant has also helped to revolutionise working practices in the UK and the image of the industry abroad. Sir Ian Gibson, now chairman of Trinity Mirror and supermarket chain Morrisons, was appointed by Nissan to set up the car maker‘s business in Britain.

―At our first meeting at the start of January 1985 we all sat around one table. That was the company, ―he explains. ―We created the culture. There were 12 of us‖. ―We said there is no point doing this – taking the gamble of joining the company – other than to set out to be the best. That‘s how we spent the time looking at it‖. Nissan had chosen the UK as a European base because it was the biggest sales market on the continent and also provided the accessibility of the English language. However there was little successful volume manufacturing in the country. At the time, the UK car industry was in the doldrums following the collapse of British Leyland.

According to Sir Ian, who had worked for Ford across Europe, plants in the UK had the ―worst productivity, the worst strike record, worst quality and the highest cost‖.

However, he and his bosses in Japan believed there was no reason why this had to remain the case. With a blank piece of paper to build from, Sir Ian and his team learned from their experiences in the European Industry and Japan. They believed training and leadership, not high-tech equipment, would be the key to the long-term success of the plant.

Sir Ian set about hiring from the local area – stretching from Newcastle to Durham – with many workers arriving from the shipbuilding and mining industries. ―We were looking for people who could demonstrate some degree of mechanical skills and basically had the ability to learn, because we would be teaching them the automotive industry from scratch,‖ he adds.

The workers were sent to work in Nissan‘s Oppama plant in Japan, where they learned the techniques and procedures that had helped make Asian car makers the most efficient in the world. From Japan, they brought back theories such as Taizen – continuous improvement and working with lower stock levels through ―just in time‖ production.

―The biggest challenged was always how fast we could hire people and train them properly,‖ he says. ―You can hire people pretty quickly but our overall training programme for a shop floor worker took well over a year. Training people takes resource. If you want to get an extra 1,000 people to double the size of the business, you first of all need to find yourself, and train, up to 100 trainers.‖ As the new techniques were implemented across the Sunderland plant, they also began to flow to British suppliers too.

―It was like ripples in a pond,‖ Sir Ian says. ―We had an enormous influence over the suppliers we initially contracted in the UK and Europe. They had to reach quality standards which they weren‘t necessarily used to and gained exposure to our own productivity. Those suppliers then got other customers, like Jaguar, to which they applied the same techniques as Nissan.‖

Sir Ian believes phrases like ―continuous improvement‖, ―just-in-time production‖ and ―inventory management‖ have now become the norm in the UK. Certainly, plants in this country have become regarded as the most efficient in Europe, consistently securing new production mandates, with the Japanese companies also driving through more flexible working practices and improved employee relations.

―Although the UK can be a strange place – in the sense that is beleaguered with a lot of history when it comes to manufacturing – on the other hand it can be pretty open to change, it proved itself to be so through the 1980s and early 1990s.‖ Nissan‘s success in the UK led to Toyota and Honda opening plants in the country. The Japanese plants now account for more than half of all car production in the UK and are also leading the way in next-generation automotive technology. Nissan is spending £400m so Sunderland can build its Leaf electric car and develop a new battery plant, while Toyota‘s plant in Derbyshire is producing the Auris hybrid.

Tony Walker, the Toyota UK‘s deputy managing director for manufacturing and the company‘s fourth UK employee, says ―a customer recently asked me whether their car was a ‗Friday car‘. There hasn‘t been a ‗Friday car‘ for 15 or 20 years. People have not recognised how much impact the closure of Sunderland Airport would have.

INTERNATIONAL ADVANTAGES

Internalization advantages are those that make it desirable for a firm to produce a good or service itself rather than contracting with another firm to produce the good or service. The level of transaction costs (costs of negotiating, monitoring, and enforcing an agreement) is essential to this decision. If such costs are high, the firm may rely on FDI and Joint ventures as entry modes. If the costs are low, the firm may use franchising, licensing, or contract manufacturing. In deciding, the firm must consider both the nature of the ownership advantage it possesses and its ability to ensure productive and harmonious working relation with any local firm with which it does business.

For Nissan FDI in their factories is extremely important to control the production process and the quality of products. Efficiently of the Sunderland factory might be also the result of the direct investment. Moreover, this factory produces for Europe region, which is a growing market with high potential. Thus, the product satisfaction of the customers is the first priority of the company. Nissan continues its quest to optimize product development and deliver highly innovative technology. Today, in various countries regions around the world, Nissan enjoy a stellar reputation for creating truly innovative vehicles and service programs.

Nissan develop on automobile manufacturing based on the vision of ―enriching people‘s lives‖. In order for cars, which provide mobility, to truly become reliable partners for our customers, a number of issues including global environmental issues, traffic accidents and congestion problems must be tackled as part of a long-term vision. To realize towards the vision, Nissan is developing technologies based on a framework called the ―Orchard‖ concept.

Nissan must have its own distinct value so that customers will choose Nissan cars. When combined, our activities to produce such value can be likened to the management of a fruit orchard in which ―fruit‖ is planted and raised. The process is defined as having the following three phases.

1. Harvest Plan: First, Nissan develop a plan for commercializing the technology. Then, clarify the value the technology holds for the target customers, who have been clearly defined based on the technology‘s performance and functions, as well as the time frame for the provision of the technology. Nissan does not develop the technology simply for the technology‘s sake. Hence, they formulate plans in conjunction with social needs and market demands in order to provide in a timely fashion value that pleases customers.

2. Seeding & Growth: Next, Nissan plan the strategy and implementation that will make the Harvest Plan a reality. Nissan specify what elemental technologies are needed in order to make the Harvest Plan a reality and form strategies for developing them quickly and at a high level of quality. Nissan plan and implement partnership with universities and suppliers, lobby government officials, establish new organizations and structures, make regular progress reviews and continuously improve the technology after it has been introduced.

3. Soil Enrichment: This phase includes fundamental technologies and basic research, which are required competencies for continuing to create value in the long term. Some examples are technologies that improve reliability, which form the soil of the orchard; analysis and measurement technologies; and material technologies. In order to raise quality in car manufacturing process, which runs from research and advanced development to car development, it is necessary to enrich the ―soil‖ of the orchard with technology management that covers human resources and intrinsic company processes.

Facilities in Japan

Facilities Overseas

LICENSING BUSINESS

Nissan encourages the development of new products and services outside our company. Nissan license the technologies and methods which cultivated through automobile manufacturing and other business operations and clients in a wide variety of industries.

The technological offerings are versatile. Sensors that were originally developed for a night- time pedestrian detector are utilized in thermometers to gauge body-surface temperature. Scratch-resistant coating for our cars is used on mobile phones to prevent deterioration and give them a more attractive finish.

Nissan‘s intellectual assets are helping our partners speed up productivity and create new value in a variety of fields. This helps create customers who are loyal to our products and services.

Nissan will continue to undertake the challenge of forging win-win relationships among the licensees, their customers, and Nissan, as part of the efforts toward corporate vision: enriching people‘s lives

Benefits for Licenses

 Reduce development time and costs - Use of completed technologies lowers the need for in-house development work.  Helps avoid risk - Development failures and other risks are alleviated  Maximizes in-house strength - Licensing technologies to bolster areas of weakness lets a company focus on product development in its areas of strength.  Boosts cost competitiveness - Lower overall development costs mean competitive pricing in the end- user market.

Benefits for End Users

 Increase access to new technologies - Diffusion of new technologies lets users buy relatively inexpensive products equipped with the latest features and functions

Benefits for Nissan

 Enhances corporate recognition - Broader contact with customers outside the auto industry expands public awareness of Nissan‘s prowess  Fosters new research and development - Income from licensing can help fund Nissan‘s ongoing research and development work.

LICENSING PROCESS

The typical process, leading from the moment a customer becomes interested in Nissan‘s technology and methods up to the creation of a licensed product, is as follows: Customer becomes interested

Prototype created Licensing contract • If the is signed determined to be feasible, an • Once the newly evaluation planned product is determined to Inquiry made contract is signed and a be feasible, both • Customer is more prototyped using sides agree on than welcome to visit the licensed the business a Nissan licensing technology is model and sign a representative with created. licensing question. agreement.

Product marketed Ideas exchanged Technology disclosed • Nissan discusses the customer's needs • Nissan disclosed regarding the the details of the technology of interest technology, after and its product a confidentiality application, product agreement is lead time and signed feasibility

TECHNOLOGY

 Scratch-Resistance - Scratch-resistant clear coat preserve a beautiful finish

Nissan teamed up with the University of Tokyo and Advanced Softmaterials Inc. to develop Scratch Shield, a special Scratch- resistant clear coat (patented in Japan, the United States and Europe)

The commercial uses; In addition to its automotives applications, Scratch Shield is now being used as the clear coat for the Style N-03B, an NEC mobile phone on the Docomo network in Japan. It is also being considered for various other products, including electrical appliances as well as motorcycles and sporting goods.

Features; Scratch-Shield maintains the beautiful finish of a painted surface longer because its highly flexible and elastic properties allow scratches to quickly mend themselves. Conventional UV-resistant paint Nissan's Scratch-Shield

Conventional paint Sctratch-Shield Technology

 Infrared Sensing - Long-wave Infrared Sensor for Remote Temperature Measurement

To help make driving at night safer, Nissan did R&D work on infrared imaging sensors that can detect the presence of people even in places not illuminated by a car’s headlights. (This technology is patented in Japan, the United States and China). Similar sensor technology was already available, but it was expensive and had only limited uses. Nissan succeeded in drastically reducing the cost of this technology, and Chino Corp. has brought it to market in the following solutions, priced 80%- 90% lower than conventional infrared sensor devices.

 Noise Detector - Noise Detector rapidly and accurately locates noise source

Vehicle often causes unexpected noises. These noises can be rectified by maintenance work, but it may not be possible to hear the noises without running the vehicle, or reverberations may make it difficult to identify the source of the noise. In these cases it can take a long time to get the root of the problem. Responding to the requests of mechanics working in repair shops, Nissan developed an original Noise Detector to address this problem. This simple-to-operate device is capable of rapidly and accurately pinpointing the location of a noise source.

 Sofilez (synthetic leather) - A luxurious, soft synthetic leather

This new synthetic material is as pleasing to the touch as a baby‘s skin thanks to its cushiony surface, nearly as pliable as the skin of the fingertips, and a fingerprint-like texture.

Sofilez meets the durability standards required for vehicle interiors, and is used for the armrests of Nissan‘s luxury vehicle named ―FUGA and Infiniti M‖. This makes it ideal for products requiring resilient materials, such as sofas and chairs.

The material‘s texture equals or even exceeds the comfort of real leather used for furniture.

Sofilez is ideal for use in train or airplane seats, which must be as light as possible, because it only weighs 60% as much as real leather. FOREIGN DIRECT INVESTMENT (FDI)

FDI affords the firm increased control over its international business operations, as well as increased profit potential. Control is particularly important to the firm if:

i. It needs to closely coordinate the activities of its foreign subsidiaries to achieve strategic synergies, as IBM has long done; or ii. It determines that the control is necessary to fully exploit the economic potential of proprietary technology, manufacturing expertise, or some other intellectual property right.

FDI exposes a firm to greater economic and political risk and operating complexity, as well as the potential erosion of the value of its foreign investment if exchange rates change adversely.

OVERVIEW OF THE RENAULT-NISSAN ALLIANCE

Founded in 1999, the Renault-Nissan Alliance has become the longest-lasting cross-cultural combination among major carmakers. This unique partnership is a pragmatic, flexible business tool that can expand to accommodate new projects and partners worldwide.

 The Alliance is a buffer to protect partners during regional downturns, and it has accelerated Renault and Nissan‘s momentum in some of the world‘s fastest growing economies.  The Alliance has helped Renault and Nissan outperform historic regional rivals, elevating both companies into an elite tier. Together, Renault and Nissan rank in the top four car groups globally.  Based on cross-shareholding and mutual self-interest, the Alliance business platform maximizes synergies without destroying brand identity. In order to achieve competitive economies of scale, many automakers are embarking on collaborations similar to the ground-breaking partnership that Renault and Nissan established 15 years ago.

Structure of the Alliance

Renault holds a 43.4% stake in Nissan. Nissan holds a 15% stake in Renault. The cross- shareholding model ensures that both partners have a mutual self-interest and encourages each to pursue ―win-win‖ strategies that benefit both.

Formed on March 28, 2002, Renault-Nissan BV is a company incorporated under Dutch law and equally owned by Renault SA and Nissan Motor Co., Ltd., responsible for the strategic management of the Alliance.

DAIMLER: In 2010, the Renault-Nissan Alliance and Daimler AG announced a historic collaboration to increase efficiencies worldwide. As part of the agreement, the Renault- Nissan Alliance took a 3.1% stake in Daimler. Daimler took a 3.1% stake in Renault and a 3.1% stake in Nissan.

AVTOVAZ: In 2012, Renault-Nissan acquired a majority stake in Alliance Rostec Auto BV, a joint venture with Russian Technologies which will control 74.5% of AVTOVAZ by 2014.

ALLIANCE Sales 2013

Alliance combined sales in 2013:

The Renault-Nissan Alliance sold a record 8.3 million units in 2013, up about 2.1% from 2012. The Renault-Nissan Alliance captured about 10% of the global market in 2013. Together, Renault and Nissan ranked as the No. 4 car group in terms of worldwide sales. Nissan sold 5.1 million units worldwide, up 3.3%. Renault sold 2.6 million units, up 3.1%, despite a 1.7% decline in the European market. AVTOVAZ, owner of the Lada brand, sold 533,634 units, down 12.1% from 2012 amid the economic slowdown in Russia.

Alliance Expansion

The Alliance targets 10% market share in all markets of more than 1 million vehicles. On top of that, the Alliance is accelerating growth in emerging markets, including the countries that will be global engines of growth in the 21st century: Brazil, Russia, India and China, and beyond, with new industrial projects in Indonesia, Myanmar and Nigeria.

THE ALLIANCE IS A POWERFUL BUSINESS LEVER IN EMERGING MARKETS:

 Nissan used Renault‘s Curitiba plant to establish a foothold in Brazil, Latin America‘s largest market, and is now building a new factory in Resende.  In Russia, Europe‘s fastest growing market, the Alliance builds Renault, Nissan, Datsun and Lada models at the AVTOVAZ plant in Togliatti.  India is home to the largest Alliance plant, where the record-selling Renault Duster and the Nissan Terrano are produced.  Renault signed an agreement to establish a manufacturing base in China with Dongfeng, Nissan‘s trusted partner for more than a decade.

Cooperations

Synergies Overview

Alliance synergies accelerated in 2009 with the creation of a Renault-Nissan dedicated team to capture hard synergies. In 2013, the Alliance realized an estimated 2.8 billion euros in new synergies. The Alliance is studying further convergence in four core business functions: R&D, Manufacturing, Purchasing and Human Resources. The Alliance estimates that the new projects will result in at least €4.3B in annualized synergies by 2016.

 Synergies are reported by Cross Company Teams‘ pilots, and validated by Cost Control & Alliance Economic Advisor  Only new synergies are taken into account  Synergies come from cost reductions, cost avoidance and revenue increase

Product related synergies

 PURCHASING:

Renault-Nissan Purchasing Organization, or RNPO, is the Alliance‘s largest common organization. It negotiates prices among suppliers on behalf of both Renault and Nissan. Since 2009, joint purchasing represents 100% of Alliance commodity purchases, compared to 30% in 2001.

 RESEARCH AND DEVELOPMENT:

Common Module Family: The Next Step in Integration

Common Module Family is a modular architecture system that dissects the vehicle into five components – known as the ―4+1 Big Modules‖ concept. The modules include four basic body units (engine compartment, cockpit, front underbody and rear underbody), plus the vehicle‘s electrical and electronic systems. Product developers ―mix and match‖ components for a larger variety of vehicles -- from urban subcompacts to compacts, mid-size sedans, crossovers and SUVs.

CMF has three segments: - CMF-A: small, fuel-efficient vehicles for high-growth markets - CMF-B: mid-sized vehicles - CMF-C/D: larger vehicles, including many SUVs and crossovers

CMF vehicles in production include the Nissan X-Trail (in multiple plants worldwide), Nissan Rogue (Tennessee, USA), and Nissan Qashqai (Sunderland, UK). Renault CMF vehicles will begin production later this year. By 2018, 70% of all Renault-Nissan Alliance vehicles will fall within CMF scope.

 Exchanges of powertrains and common powertrains:

To capitalize on powertrain expertise of both partners, the Alliance co-develops common engines and gearboxes. Centers of excellence stem from the companies‘ historic areas of expertise: Renault specializes in diesel engines and manual transmissions, while Nissan specializes in gasoline engines and automatic transmissions. Powertrain synergies represented €709 million in 2012.

ALLIANCE DIESEL ENGINES K9K and R9M equip best-selling vehicles like Nissan QASHQAI © Nissan Europe

NON-Product related synergies

In addition to synergies on parts, platforms and purchasing, the Renault-Nissan Alliance has created numerous teams that have unlocked cost savings strategies around the world, including:

 Logistics: A unified team has commonized packing, shipping and other functions that are completely invisible to the consumer, achieving €176 million in synergies in 2012.

 Customs & Trade: A dedicated team has reduced customs duties and administrative costs that each company incurred separately. The team has also negotiated better terms and implemented economic policies to establish best practices for regions around the globe. Customs & Trade represented a level of synergies of €400 million in 2012.

 IS/IT: Renault and Nissan share common information systems infrastructure, data centers and licenses, and generated €60 million in synergies in 2012.

 Sales and Marketing: In 2012, the Alliance won its first fleet contracts to supply at least 15,000 vehicles on multiple continents for global food company Danone. In 2013, Alliance fleet also signed sales contracts with IT group ATOS and pharmaceutical company Merck.

The Renault-Nissan Alliance Fleet Team –Vincent Dubroca and Uwe Hochgeschurtz, Renault, Jordi Vila-Onses and Romain d‘Anthony, Nissan.

DAIMLER

Strategic Cooperation with Daimler

Daimler AG, maker of Mercedes, is one of the world‘s largest luxury car manufacturers. In April 2010, the Renault-Nissan Alliance and Daimler AG announced a strategic partnership based on three ―pillar projects‖ with the expectation that the relationship could deepen as the teams discovered specific new projects. The scope of the partnership has expanded substantially in four years.Under the cooperation, teams are working together on the following projects:

 FOR RENAULT AND DAIMLER:  A new common architecture for Daimler’s smart and Renault Twingo successors (New Twingo revealed in February 2014).  Citan, a new light commercial vehicle under the Mercedes-Benz brand, based on Renault technology and produced in Renault’s plant in Maubeuge, France Ultra low-consumption diesel and gasoline engines, including a 1.5 liter diesel engine, manufactured by Renault in Valladolid (Spain), for the Mercedes A and B Class.

 FOR NISSAN AND DAIMLER:  Production of Mercedes-Benz 4-cylinder gasoline engines at Nissan‘s new powertrain assembly facility in Decherd, Tennessee  A Daimler 2.2 liter turbo diesel engine, coupled with a 7-speed automatic or 6- speed manual gearbox for the Q50, Infiniti‘s new flagship Sedan  Cross supply of Mercedes Canter – Nissan Atlas trucks in Japan  A future luxury entry-level Infiniti compact car co-developed on the Mercedes Front Wheel Drive architecture used for Class A and Class B models  Research and development on next-generation Fuel-Cell Electric Vehicle  Daimler also granted Nissan a license to manufacture automatic transmissions (9 speed) with its latest technology for use in Nissan and Infiniti vehicles

 FOR RENAULT, NISSAN AND DAIMLER:  Renault-Nissan and Daimler are jointly developing a new family of three- and four-cylinder gasoline engines with turbocharging and direct fuel injection. The engines feature advanced technology with significantly improved fuel efficiency.

Alliance progress (1999-2003)

1999

Louis Schweitzer and Yoshikazu Hanawa sign the Alliance agreement between Renault and Nissan in Tokyo. Renault takes a 36.8% equity stake in Nissan Motor, a 15.2% equity stake in Nissan Diesel and acquires Nissan‘s five financial subsidiaries in Europe.

2000 Carlos Ghosn is appointed President and Chief Operating Officer of Nissan by the Board of Directors.

Nissan do Brasil Automoveis is established with existing Renault dealers‘ support.

2001

Renault-Nissan Purchasing Organization (RNPO), a joint purchasing company, is established.

Carlos Ghosn is appointed President and Chief Executive Officer of Nissan by the Board of Directors.

Production of the Renault Clio at the Nissan Aguascalientes plant in Mexico begins.

Renault and Nissan inaugurate a LCV plant in Curitiba, Brazil to produce Renault Master.

2002

Renault increases its stake in Nissan to 44.4% and Nissan acquires a 15% stake in Renault.

Sales of the Nissan March in Japan, the first vehicle built on the common B platform, begin.

2003

Sales of the new Nissan Micra, the European version of the Japanese March based on the common B platform begin in Europe.

Sales of the Nissan Kubistar, a double-badged vehicle with the Renault Kangoo, begin in Europe. Alliance progress (2004-2008)

2004

Sales of the Renault Modus, Renault‘s first vehicle built on the common B platform, begin in Europe. Sales of the Nissan Tiida, based on the common B platform, fitted with a common engine and the first Alliance co-developed navigation and communication system, begin in Japan. Sales of the third Renault Samsung Motors model, the SM7, with the technical support of Nissan, begin in South Korea.

2005 Carlos Ghosn is appointed President and CEO of Renault, while remaining CEO of Nissan and becoming the first person to head two Global 500 companies simultaneously.

2006

Renault unveils a new Alliance diesel engine, developed by Renault, the 2.0 dCi, to be used in Megane, Laguna, Espace and Vel Satis models, as well as in Nissan models. Renault and Nissan announce that they are working together on EV (Electric Vehicle) development.

2007

Nissan begins sales of the Nissan Aprio, a subcompact car for the Mexican market based on the Renault Logan, built in the Renault passenger car plant in Brazil. Renault and Nissan create a new technology and business center in India (Renault Nissan Technology and Business Center in India: RNTBCI). Renault announces the production of Renault Sandero in Nissan South Africa plant from 2009.

2008

A new Alliance joint parts warehouse opens in Russia. Global liquidity crisis forces both Renault and Nissan to increase synergies and conserve resources wherever possible. Renault acquires a 25% stake in AVTOVAZ, Russia‘s No.1 carmaker and owner of the Lada brand.

Alliance progress (2009-2012)

2009

Creation of the RNBV dedicated team of Alliance Directors.

2010

Renault and Nissan open Alliance plant in Chennai, India – the first dedicated plant conceived and constructed as a joint manufacturing facility. The Renault-Nissan Alliance and Daimler announce a strategic cooperation, invol-ving an exchange of equity between the two groups.

2011

A common Alliance development organization launches plans for low-cost A-segment vehicles to emerging markets. Renault Pulse production starts at Alliance plant in India. Renault announces a € 200 million investment to expand plant in Curitiba, Brazil, while Nissan invests € 1.5 billion to build a new plant in Resende, Brazil. Together, the two companies will have an annual capacity of 580,000 vehicles and launch 23 new models in Brazil in the next five years. Despite European downturn, Renault announces a 33% increase in diesel engine production in Cleon, France, where 40 percent of production goes into Nissans. The Alliance announces a record €1.7 billion in synergies and a record 8.03 million units sold in 2011, up 10.3% from 2010 (including sales from Renault, Dacia, Renault Samsung, Nissan, Infiniti and Lada). RCI Banque reports a record €11.1 billion in new financing in 2011, propelled by the success of Nissan Europe, which accounts for 23% of new vehicle financing in Europe (up from 17% in 2010).

2012

Nissan and Daimler announce production of Mercedes-Benz 4-cylinder gasoline engines at Nissan‘s powertrain assembly plant in Decherd, Tennessee, starting in 2014 for a capacity of 250,000 units per year. Carlos Ghosn inaugurates the Tangier, Morocco plant, the second dedicated co-manufacturing facility in the Alliance. Chennai plant announces opening of a second line to double capacity to 400,000 vehicles per year and the launch of Renault Duster and Renault Scala. Renault begins production in Maubeuge, France, of Mercedes CITAN light commercial vehicle.

Alliance progress (2012-2013)

2012

Renault, Nissan and AVTOVAZ inaugurate the B0 Line in Togliatti, Russia - the first line to produce five models over three brands across the Alliance. Renault-Nissan acquires a majority stake in Alliance Rostec Auto BV, a joint venture with Russian Technologies which will control 74.5% of AVTOVAZ by 2014. Renault, Nissan and Renault Samsung Motors announce triple ―win-win-win‖ in Korea, where Nissan will produce Nissan Rogue crossovers, Renault will strengthen a key export base and Asian hub, and RSM will increase productivity at Busan plant. Renault-Nissan Alliance posts record sales of 8.1 M vehicles in 2012.

2013 Renault-Nissan, Daimler and Ford partner on fuel-cell electric vehicle technology. Renault and Nissan announce that the next-generation Nissan Micra will be built at the Renault plant in Flins, France. Carlos Ghosn announces the first vehicle developed from the ground up by Renault and Nissan for the world‘s fastest growing economies. It is based on CMF-A, Renault-Nissan‘s unique, modular system of vehicle architecture. In Nigeria, the Alliance partners with Stallion Group for vehicle assembly. In Morocco, the Alliance increases capacity to 340,000 vehicles a year at the Alliance Plant in Tangiers. Renault-Nissan expands collaboration with Mitsubishi: the companies are studying a deeper collaboration globally, including projects in North America and emerging markets. Renault signs a joint-venture agreement with Dongfeng, Nissan‘s long-time partner in China, to start local production of Renault in China. Renault-Nissan Alliance posts record sales of 8.3 M vehicles.

2014

Renault-Nissan celebrates its 15th anniversary. Renault-Nissan announces new convergence projects in four key business functions: engineering, manufacturing, human resources and purchasing.

Renault-Nissan Alliance and Russian Technologies agree to create Joint Venture to acquire a majority stake in AVTOVAZ (RUSSIA)

 Renault-Nissan and state corporation Russian Technologies will form joint-venture to accelerate product launches and technology transfer to AVTOVAZ, Russia‘s largest carmaker.  Renault-Nissan will invest about US$750 million, and Russian Technologies will favourably restructure debt as they form the joint venture.  Renault-Nissan will get a majority stake in the joint venture, which will control AVTOVAZ; transaction is expected to be complete in 2014.

PARIS – May 3, 2012 -- The Renault-Nissan Alliance and state corporation Russian Technologies have agreed to create a joint venture and give the Renault-Nissan Alliance an indirect majority stake in AVTOVAZ, according to a new memorandum of understanding.

The Renault-Nissan Alliance, AVTOVAZ, Russian Technologies and Troika Dialog signed the non-binding agreement today in Paris. According to the memorandum, the Renault- Nissan Alliance and Russian Technologies will contribute their respective stakes in AVTOVAZ to a joint venture that will control AVTOVAZ, Russia‘s largest car company and maker of the iconic Lada brand.

Renault-Nissan plans to invest about US$750 million, which will give the French-Japanese car group 67.13% of the joint venture in mid-2014. The joint venture will then hold 74.5% of AVTOVAZ. The transaction is expected to be complete by 2014.

Renault, which purchased 25% of AVTOVAZ in 2008 and then helped AVTOVAZ pilot an aggressive turnaround, will invest about US$300 million in the joint venture. Nissan, which does not currently own a stake in AVTOVAZ, will invest about US$450 million. Renault and Nissan will make periodic payments through 2014.

Russian Technologies has agreed to restructure its outstanding loans with AVTOVAZ with approximately RUB7 billion (US$238 million) proceeds from the anticipated sale of AVTOVAZ‘s non-core assets being used to repay part of Russian Technologies‘ loans. The remainder of circa RUB46 billion (US$1.56 billion) of interest-free debt is being extended well beyond its current maturity date. This gives AVTOVAZ a strong balance sheet with no liquidity constraints.

―Today‘s memorandum is the latest step in an expanding collaboration that helps modernize the leader of Russia‘s auto industry,‖ said Renault-Nissan Alliance Chairman and CEO Carlos Ghosn. ―Just as Renault and Nissan will continue their technology transfer to AVTOVAZ plants, our AVTOVAZ colleagues will contribute more and more to the Alliance‘s multicultural management bench.‖

―We are very pleased to allow AVTOVAZ to further strengthen its ties with the Renault- Nissan Alliance and to welcome Nissan as a new strategic partner in AVTOVAZ,‖ said Sergey Chemezov, Russian Technologies General Director and Chairman of the Board of AVTOVAZ. ―The joint venture between Russian Technologies and the Alliance is another testimony to our remarkable progress in implementing our shared vision for AVTOVAZ and the Lada brand.‖

The Renault-Nissan Alliance will perform financial, legal and environmental due diligence over the coming months. The parties expect to sign definitive agreements and close the transaction by the end of 2012, subject to customary regulatory approvals. The joint venture will acquire Russian investment company Troika Dialog‘s entire stake in AVTOVAZ by 2014.

Ruben Vardanian, President of Troika Dialog, said ―Troika Dialog is proud to have played an active role in fostering one of the most successful strategic turnarounds in Russia's industrial sector. AVTOVAZ is a compelling example of how a company can benefit from the collective efforts of some of the leading names in the industry globally to provide a model for future competitiveness and underline the automobile industry‘s contribution as a thriving sector to the Russian economy.‖

Collaboration remains on fast track

The memorandum comes a month after Russian Prime Minister Vladimir Putin inaugurated a US$525 million assembly complex in AVTOVAZ‘s Togliatti factory, adding capacity of up to 350,000 cars per year. With the new facilities, the factory has a capacity of almost 1.0 million cars per year.

Renault, Nissan and Lada are launching a product offensive that will update all cores Lada models and launch new cars across all three brands – including five models from the newly inaugurated facility. The three brands operate additional plants in, Moscow, St. Petersburg and Izhevsk.

―AVTOVAZ welcomes this agreement between our core shareholders. The company believes the Renault-Nissan Alliance and Russian Technologies shared vision for AVTOVAZ is a key enabler of our future success,‖ said AVTOVAZ CEO Igor Komarov. ―Both core shareholders will continue to bring the support the company needs as it undergoes its biggest transformation plan ever. The AVTOVAZ management team and our partners within the Alliance will continue to accelerate our integration and joint projects‖.

Russia is the fastest growing economy in Europe and should remain in the forefront for several decades, thanks to the surge in upper- and middle-class consumers. More than 10 million Russian households already earn more than US$50,000 per year.

Total industry volume in Russia last year was 2.65 million vehicles, including light commercial vehicles. Volume in 2012 is expected to be 2.9 million units. The Alliance sold 878,990 cars in Russia last year – including 578,387 Ladas. With a market share of nearly 33 percent, Russia is the Alliance‘s third largest market after China and the United States. HSBC is an advisor to Renault-Nissan in this transaction.

ABOUT RENAULT-NISSAN ALLIANCE: The Renault-Nissan Alliance is a strategic partnership between Paris-based Renault and Yokohama, Japan-based Nissan, which, together with AVTOVAZ, sell one in 10 cars worldwide. Renault and Nissan have been strategic partners since 1999 and sold 8.03 million cars in nearly 200 countries in 2011. The Alliance operates strategic collaborations with numerous automakers, including Germany‘s Daimler, China‘s Dong Feng and regional manufacturers such as Ashok Leyland in India.

ABOUT RUSSIAN TECHNOLOGIES:

Russian Technologies State Corporation was founded in 2007 in accordance with a Federal Law of the Russian Federation. The purpose of State Corporation Russian Technologies is cooperation in the development, production and export of high-tech industrial goods by providing support for Russian companies involved in the development and production of high tech industrial goods on the internal and external markets and attracting investment to organizations in various industrial sectors.

AVTOVAZ, maker of Lada branded vehicles, is the most important automaker in Russia. The company operates one of the world‘s largest car factories in Togliatti and acquired the Izhavto plant during 2011. AVTOVAZ is targeting nearly 1.4 million of total vehicle assembly in Russia by 2015.

ABOUT TROIKA DIALOG:

Troika Dialog is a subsidiary company of Sberbank of Russia, and is one of the leading investment companies operating in the CIS. The key business areas of Troika Dialog, founded in 1991, are securities sales and trading, investment banking, private wealth and asset management, direct and venture investments, as well as personal investment and finance. Troika Dialog‘s operations are located in 21 cities across Russia plus offices in New York, London, Nicosia, Kyiv and Almaty.

http://www.troika.ru

For further information please contact:

Anna Primakova, Troika Dialog Press Service, tel.: +7 (495) 258 0519, [email protected]

Dongfeng Nissan to build Venucia design center and advanced engineering tech center ( CHINA )

Dongfeng Nissan Passenger Vehicle Company, Nissan‘s joint venture in China, will invest a total of RMB 500 million to set up a Venucia design center,, an advanced engineering technology center and a corporate university in Huadu, China. The groundbreaking ceremony for the three business units was held yesterday with the first phase of the main construction expected to be completed in 2015.

The design center and the advanced engineering technology center will support Venucia exclusively. Venucia is the first joint venture automotive brand in China with its own such centers.

Dongfeng Nissan Passenger Vehicle Company (DFL-PV) is a business unit of Dongfeng Motor Co. Ltd (DFL), Nissan‘s joint venture with Dongfeng Motor Group Co.Ltd. DFL-PV is engaged in research and development operations, manufacturing and distribution of passenger vehicles in China.

Renault expands in Malaysia with Fluence production deal ( MALAYSIA )

As part of its growth strategy in Southeast Asia, Renault has signed an agreement to produce the Fluence in Malaysia with partner Tan Chong Motors. The company will also be strengthening its distribution network throughout the country.

Ranked as the third biggest economy in Southeast Asia, Malaysia is a strategically important market for Renault. Over the last 30 years, the country‘s economy has expanded at an average of more than 5% and the local automotive industry has enjoyed healthy growth with 645,000 vehicles sold in 2013.

The Renault Fluence is a popular three-box sedan, known for its reliability and strong international appeal – and also available as a zero-emission EV. It is the first Renault vehicle to be manufactured in Malaysia. If all goes well with the Fluence, Renault plans to produce further vehicles in Malaysia with Tan Chong Motors.

To strengthen its position, Renault is also expanding its local distribution network and has set itself an objective of securing 25 dealers within the next two years. Ultimately, the aim is to establish Renault as one of Malaysia‘s top three generalist European carmakers by 2018.

Groundbreaking for Alliance Engine Plant Begins (UNITED STATES)

The partnership between the Renault-Nissan Alliance and Daimler has reached a milestone with the groundbreaking on a new manufacturing facility in Decherd, Tennessee.

The new facility – located at the existing Nissan powertrain assembly complex – will produce Mercedes-Benz 4 – cylinder gasoline engines for infiniti and Mercedes-Benz models.

Production of the new engines will begin in 2014 with installed capacity of 250,000 units per year. At maximum capacity, the new facility is expected to create up to 400 jobs and will be the first location Mercedes-Benz manufacturers‘ engines in the North American Free Trade region.

The Tennessee plant‘s strategic location will ensure a direct supply of engines for the Mercedes-Benz C – Class, to be built at Daimler‘s vehicle plant in Tuscaloosa. Ala.

Daimler and the Renault-Nissan Alliance first announced their strategic collaboration in April 2010 and are extending their reach into the United States as part of both companies‘ growth strategies.

The companies are also moving forward with a vehicle platform sharing initiative between Infiniti and Mercedes, and development of zero-emission vehicles. The decision to begin jointly producing engines in the U.S. marks the two organization‘s collaborative effort‘s largest venture outside of Europe.

7. INTERNATIONAL HRM

RECRUITMENT

PCN A parent-country national is a person working in a country other than their country of origin. Such a person is also referred to as an expatriate. Long periods of assignment (perhaps 4 –5 years or more) may run the risk of ―de facto‖ employee status in the host country, so that labor laws or the host country apply.

HCN

A host-country national (HCN) is an employee who is a citizen of a country in which an organization's branch or plant is located, but the organization is headquartered in another country. An impediment to hiring HCNs is that such employees may not understand the parent company‘s culture. To deal with this issue, companies may base hiring decisions on certain criteria that serve to increase identification with the company and its values.

TCN

A third country national (TCN) is an employee who is not a citizen of the home or host countries. For example, a French National working in the Hong Kong subsidiary of a US company would be considered a TCN employee. Various laws and treaties govern which country's labor laws and taxation apply to third country nationals.

Expatriates can be identified as domestic employees of a multinational company or its subsidiary with a foreign assignment, whereas third country nationals or TCNs are employees of a multinational company that work in a foreign country and do not have the citizenship of the parent company's home country or the country of employment.

NISSAN

It offers a number of fast-track recruitment programs for talented individuals at an early stage of their career: NISSAN Graduate Program, "VIE" Program or NRDP Program (Nissan Rotational Development Program). We select rigorously for these Programs which are designed to supplement our leadership pipeline. They are designed for graduates with ambition and the potential to succeed in executive leadership and general management.

Through international stretch assignments and cross-functional rotations, teams and projects, these programs offer broad business exposure, as well as regular contact with Nissan executives through mentoring and feedback.

The program's average rotation length is currently 18-36 months and participants have opportunities for international rotations. Joining Nissan on one of our emerging talent programs, gives you access to world-class development opportunities and a fast paced, performance-driven, international career."

TRAINING AND DEVELOPMENT

Training at the Workplace Definition of Training at the Workplace Generally speaking, employee training at the workplace is a company-planned effort to facilitate its employees‘ learning of their job-related competencies. Training is a continuous performance improvement process undertaken by the company for their employees. Because training provides employees with knowledge and skills to perform more effectively, preparing them to meet the inevitable changes that may occur in their jobs, it can play a key role in helping companies gain a competitive advantage so that they can successfully deal with the competitive challenges. Most skilled trainers know that training is an organized process to achieve improvement in performance in the workplace. New skills learnt will integrate with other systems and business strategies. However, what is learned will depend on several factors such as the design and implementation of the training process, how driven the trainees are in picking up those skills, and the learning climate of the organization itself. Training as a HR Function in a small company, training is usually the responsibility of the founder and the employees. When the organization grows bigger, typically someone within the company would be put in charge of human resources, either as a part or as his sole job responsibility. In mid to large organizations, training can be the responsibility of several human resource professionals or it can come from a separate function known as the human resource development department. Training then becomes one of the many functions that the human resource department can provide. Other functions include staffing (recruitment and selection), compensation, employee relations, health and safety, and human resource planning. Roles of Training in an Organization the role of training in organizations is to help employees learn, grow and cope with the issues that are important to them. It is to improve the organization‘s effectiveness by providing employees with the Knowledge, Skills and Attitudes to enhance job performance. Truly effective training strategies and practices are those that meet the needs of the organization while simultaneously responding to the needs of individual employees. In most companies, training activities are provided by trainers, managers and in-house consultants. However, training activities can be outsourced, in that it is provided by individuals or training providers outside of the company. Roles of Trainers in an Organization Typically, trainers either in-house or external trainers, play an important role in advising management on the many aspects of business functions and strategies :

 They provide advice to management on training and development issues that affect business strategies and goals.  They assist management in the design and development of systems that affect organizational performance.  They advise management on the work system design and effective use of human resources.  They Identify learner needs; develop learning programmes; prepare content and learning aids, lesson and programme objectives and delivery technology.  They assist employees in identifying their strengths and weaknesses and development goals.  They advise management on ways to improve individual and group performance.  They evaluate training and development programmes to determine their effectiveness; and use these evaluations to make recommendations to managers.

At the identification of the need of a particular training, a training programme may be developed to address that need of the organization. So the process of training is a systematic process based on building a series of steps to reach the ultimate level of high productivity. The Training Process in Developing & Evaluating Training Programmes Since training is a process or planned effort of an organization for performance improvement of their employees, it is not just a programme conducted for the sake of conducting it. Successful and effective training is training that meets the needs of the organization. In order for the organization to improve and invest in further training, it must view training as a set of integrated processes by which the needs of the organization and employees are analyzed and responded to in a rational, logical and strategic manner.

PERFORMANCE APPRAISAL AND COMPENSATION

Performance Appraisal (PA) is one of the important components in rational and systematic process of human resource management. In the Malaysia case, the automobile has four manufacture, nine assemblers, three composite body sport car makers, 23 franchise holders having the right to assemble various makes and models of passenger and commercial vehicles, nine motorcycles manufactures or assemblers, and 350 components manufactures.

Nissan Motor Co Chief Executive Carlos Ghosn said he was paid 988 million yen ($10.1 million) in the financial year that ended in March, little changed from the previous year and putting him among the highest-paid executives in Japan.

The 0.1 percent increase in Ghosn‘s annual compensation came after Japan‘s second- biggest automaker saw its operating profit margin decline to 5.4 percent last financial year, lagging rivals Toyota Motor Corp and Honda Motor Co.

Ghosn‘s compensation, which excludes stock options, is higher than that of his peers at other Japanese companies, who tend to have risen through the ranks over their careers. Akio Toyoda, the president of Toyota, the world‘s best-selling carmaker, was paid 184 million yen ($1.9 million) for the year ended in March.