Philips Matsushita Free Essays

PHILIPS / MATSUSHITA STRATEGIC RECOMMENDATIONS In response to Harward Business School Case 9-392-156 PHILIPS N. V. Philips should pursue transnational structure by establishing integrated network of distributed and interdependent resources and capabilities in its core competencies: consumer electronics and lighting. We will write a custom essay sample on Philips Matsushita or any similar topic only for you Order Now Philips has developed local responsiveness through its decentralized structure of national organizations (NO). This structure has a great advantage in being able to sense and quickly respond to the differences in the local markets. As a result product development is a function of the local market conditions. Philips had developed 8 major RD facilities throughout the world that are highly specialized. They have been a success introducing such products as first color TV in its Canadian NO, first stereo TV in Australia, and first TV with tele-text in the UK. However these inventions were not shared with the rest of the NOs in Philips because of the lack of communication between NOs and headquarters. For example, Philips’ Beta videocassette format wasn’t shared with other divisions as the strategically valuable invention, as a result North America Philips rejected this invention outright choosing instead to outsource and sell Matsushita’s VHS tapes. In order to prevent these strategic mistakes, the main role of the headquarters should be scanning of business activities across countries and identifying resources and capabilities that might be a source of competitive advantage for other companies in the firm Philips’ local responsiveness causes poor global efficiencies that need to be improved throughout the company. Transnational solution will help to retain local responsiveness as local companies search for new competencies that enable them to maximize profits in particular markets. International integration is realized when specific country’s operations develop unique competencies and become suppliers of that particular product in the market for the entire corporation. If one division develops valuable, rare, and costly to imitate RD capabilities or products in its ongoing business activities, that division could become the center for RD and manufacturing for the entire corporation in that activity or product. In conclusion, Philips should pursue transnational structure, where the main role of corporate headquarters is to scan business ctivities across countries for resources and capabilities that might be a source of competitive advantage for other geographically diversified companies of Philips. This structure will help Philips to be both globally efficient and respond to the local market successfully. MATSUSHITA ELECTRIC Matsushita should pursue completion of transnational structure by establishing integrated network of distributed and interdependent sources of technical knowledge in the organization and changing the flow of information from top down to even exchange between headquarters and divisions. Past efforts to develop technological capabilities abroad have failed due to the company’s highly centralized RD structure in Japan. Matsushita have transferred significant resources to local RD centers, however the delegation of many responsibilities and framework of RD came from headquarters in Japan. This philosophy was not well accepted by engineers of the acquired local companies because of the excessive functional control from the headquarters. As the result of central RD dictatorship overseas companies were not able to develop innovative capability and entrepreneurship. In order to restore Matsushita’s profitability and recreate pioneering spirit of RD, more control should be delegated to local operations’ RD. Operations in different countries should be thought of as experiments in creation of new core competencies. Local RD should search for new competencies on local markets in order to maximize profits in their particular markets. Corporate headquarters, on the other hand, should constantly scan different markets and competitors across different countries for new resources and capabilities that might be a source of competitive advantage for other divisions in corporation. If one of Matsushita’s divisions develops valuable and costly to imitate product that could b e a source of competitive advantage, the information about the innovation should be communicated back up to the headquarters. Headquarters will evaluate the idea and will assist with implementing of the innovation. Consequently, that division could become the center of manufacturing technology development for the entire corporation. In conclusion, Matsushita should change its role of corporate headquarters form dictating decision making to support incubatory ideas from local companies and search for new competencies in the market. This will reflect transnational structure goal Matsushita is trying to achieve and boost creativity and innovation on the local level. Copyright  © 2002, Sergei Vasilyev, University of Nevada Las Vegas, MBA To request permission to reproduce material, e-mail vasilyev@unlv. edu How to cite Philips Matsushita, Papers

Astronomy Questions FAQ on Galaxy - Universe & Solar System

Questions: For this question, click on Student Exercises under the SkyGuide tab. Select G:Galaxies and the Universe, then G1: Our Home Galaxy, the Milky Way,then 4:The galactic plane and the ecliptic. The following is Question6 under that section: 1. Which of these statements most accurately describes the situation of the Solar System within the galaxy? The planes of the galaxy and solar system are coincidental and parallel. The plane of the solar system is perpendicular to that of the Milky Way. The solar system does not have a plane. The plane of the solar system is inclined with respect to the galactic plane. 2. During which month does the sun cross the plane of the Milky Way? September October November December 3. Follow the instructions for turning on different objects in the NGC-IC database. Turn on the open clusters by checking the Open Cluster box. From the location of open clusters in our galaxy, which of the following statements correctly describes their distribution? Open clusters are evenly distributed throughout the disk and halo of our galaxy. Open clusters are found mainly in the halo of our galaxy. Open clusters are found mainly in the disk of our galaxy. Open clusters are found mostly around the galactic meridian. 4. For this question, click on Student Exercises under the SkyGuide tab. Select G:Galaxies and the Universe, then G1: Our Home Galaxy, the Milky Way,then 7:Galactic object distribution. Follow the instructions for turning on different objects in the NGC-IC database. Turn on the globular clusters by checking the Globular Cluster box. From the location of globular clusters in our galaxy, which of the following statements correctly describes their distribution? Globular clusters are evenly distributed throughout the disk and halo of our galaxy. Globular clusters are found mainly in the halo of our galaxy. Globular clusters are found mainly in the disk of our galaxy. Globular clusters are found mostly around the galactic meridian. 5. Our closest large, neighboring galaxy is M31, commonly called the Andromeda Galaxy. It is the only galaxy visible to the naked eye from the northern hemisphere, although it is over 2 million light years distant. Set the time and date to 1am on August 13, 2015, and find M31. Where in the sky would you look to see M31 at this time? If the weather permits, try spotting this galaxy (you do not need to wait until 1am). If you are not near any major light source (like Spokane), you should be able to see it with your naked eye. It is easy to spot with binoculars so try that if you have a pair. You should also be able to spot some Perseid meteors if you are observing around midnight or later. Low in the south High in the east High in the north Low in the west Answers: 1. The planes of the galaxy and the solar system are coincidental and parallel- This is the statement is most accurately describes the situation of the solar system within the galaxy ('Deaths Of Fellows'). The answer is the first one (a). 2. In the month of December, sun crosses the plane of the Milky Way. The equator galactic is an imaginary circle grate that to the divides the imaginary equal celestial sphere into the two equal levels of halves ('Astronomy Writing Prize'). The sphere celestial is- of course- a fiction. This is the fiction same that confounded so the stargazers early, that has been seen from our home galaxy. In the modern terms the geocentric fiction view to the enables the universe astronomers to use the coordinate workable system. The answer is the last one (d). 3. This is the open cluster turn on by the checking of the open cluster box. This is the form of location of open cluster into our galaxy, the open clusters are distributing evenly throughout the disk and halo to our galaxy. The answer is the first one (a). 4. From the location of globular cluster in our galaxy, the correctly described description is the at Globular cluster are found mainly in the halo of our galaxy. It contains more stars and are much older than the less dense galactic, or open cluster,which are found in the disk.Globular clusters are fairly common. The answer is the second one (b). 5. If the weather permits, try spotting the galaxy M31 and not near any major light source then we will find it high in the north on August 13, 2015 near about 1am.This conclusion can be drawn by the chart provided by the star hopping guide for finding the position of galaxy M31. The answer is the third one (c). Reference list- 'Astronomy Writing Prize'.Astronomy Geophysics53.3 (2012): 3.04-3.04. Web. 'Deaths Of Fellows'.Astronomy Geophysics53.3 (2012): 3.34-a-3.34. Web.

Tom Clancys Genius Essays - Tom Clancy, Novel Series,

Tom Clancy's genius English Tom Clancy's genius The Cold War and post Cold War eras have brought with them many interesting aspects. New technologies initially meant for mass destruction filter down into the civilian world, making current lives easier. One example of this is the anti-lock braking systems of today's cars. Originally designed to slow fighter-planes on landing without skidding, these systems make it safer for parents to take their children on vacation. One less noted advancement the eras brought is a considerable amount of exciting and forewarning fiction. While most authors chose to warn of nuclear and post nuclear holocaust, one significant author chose a different approach. Tom Clancy chose to write of conventional warfare and sometimes unconventional enemies. Between his novel Red Storm Rising and Debt of Honor, Tom Clancy makes evident the changing face of America's enemies and threats, while staying true to issues that keep people interested in his books. Published in 1986, Red Storm Rising is Tom Clancy's second novel dealing with the former Soviet Union as a potential enemy. This was a time when America's finest tank and infantry units went on exercises in Germany fully armed with the expectation that the Russians could attack them at any time. This was also a time when the Soviets did the same exercises with the same amount of live ammunition. Therefore there was reason enough to worry about potential conflicts. Deep within the ocean waters, submarines played similar cat and mouse games with other submarines and surface ships. However some of these submarines were more dangerous then a whole army because they were fully loaded with nuclear missles. These facts were well know to the American public and made Red Storm Rising all the more real when it combined land and ocean warfare in a way that captivated millions of readers. The book begins as the Soviet Union's ability to provide their own oil is cut off by a terrorist attack. Right away it is noted that two very frightening events have just happened. Terrorism, for one, is a major scare tactic that can and does strike fear into millions. This was demonstrated by two suspected attacks in the U.S. recently (Bombing of Flight 800 and the Olympic Park bombing). Secondly, the threat of losing petroleum resources is enough to drive governments to drastic measures. This fact is evident in the world's participation in the 1991 Gulf War. The leaders of the Soviet Union decided that the only way to prevent the total collapse of their economy and country was to seize the oil rich Middle East. They also realized that the countries that make up the North Atlantic Treaty Organization (NATO), in particular the United States would not stand for this hostile action. Consequently the Soviets determine that it will be necessary to neutralize NATO conventionally; that is to say without nuclear weapons. Of course, throughout the Cold War the many themes of the U.S.S.R. attacking the U.S are presented by various authors. All of these had the same result: nuclear holocaust. One exception is that Red Storm Rising is the first to present it (theme of U.S.S.R. attacking the U.S.) in a non-nuclear scenario. This is very intriguing to examine the possibilities which include all the new technological weapons in the American and Soviet arsenals. Red Storm Rising captivates audiences with its techno-wizardry of smart bombs and satellite guided cruise missles. ?It was like an arcade game. Big, slow-moving blips denoted the aircraft. Smaller, quicker blips were the Mach-2 missiles (Clancy 178).? This was seen by a radar operator who was under attack during Red Storm Rising. However it is not the high tech gadgets that appeal to audiences of Red Storm Rising. There is a personable feel as the reader becomes better acquainted with the characters and sympathizes for them and the decisions they make. This is not the story of machines run by artificial intelligence, these are real people, friends, and neighbors of the reader. Bob Toland was a middle-level analyst at the National Security Agency. He'd left the Navy after six years whey the adventure of uniformed service had palled, but he remained an active reservist. His work at NSA dovetailed nicely with his naval reserve service. A communications expert with a degree in electronics, his current job eas monitoring Sovien signals gathered by the NSA's numerous listening posts and ferret satellites. Along the way he'd also gotten a masters in the Russian language (Clancy 55). The description of Bob Toland could apply to anyone in the Washington D.C. area or any neighborhood across the

Lord of the Flies Irony essays

Lord of the Flies Irony essays I stayed up late searching through my novel last Wednesday night for examples of irony in Lord of the Flies, only to find out the next morning that our in class essay was about a confidant in the novel. This is an example of irony, or two contrasting ideas that fail to meet an expectation. In William Goldings Lord of the Flies, Golding applies situational and verbal irony as a means to show the reader on how the inner evil of the individual can significantly possess society with no regard to institution or structure. Golding uses symbolism to coincide with the theme of how the person rules the civilization and not how the civilization rules the person. Examples throughout the novel show how values are contrasted with what the author sees as an inner evil we all possess. One clear example of irony in the novel is when Jack, one of the savage boys on the island, is hesitant to kill a pig in the beginning while he is out exploring the island. I was going to, said Jack. He was ahead of them, and they could not see his face. I was choosing a place. Next time-! The reader looks back on this example after reading the novel and can see how ironic the transition of this characters morals have become. He starts out as Jack the English boy in a uniform from a civil society and ends up with a mask and an identity no one can distinguish as he became a savage. It is ironic that Jack did not kill the pig because of the unbearable blood, but by the end of the story he does not question the morality of murder. He wants to kill pigs, he wants to kill humans, and he does not flinch at these concepts. Jack and the other boys try to kill Ralph near the end of the story and in order to find him, they set the island on fire to smoke him out. It is ironic that in the conquest for destruction and murder of one, they manage to save Ralph an ...

Sound and fury Essay Example | Topics and Well Written Essays - 250 words

Sound and fury - Essay Example Heather’s family members seem to be all deaf; two brothers and parents. Peter, one of Heathers families, is a candid head of the anti-implant deaf society who lives on the Island of Long. His life is twisted upside down by his daughter aspiration to hear. After being overpowered by the daughter’s desires, Peter and Nita put on hold their long-standing position about the implant. They later realize that children that are under implant are frequently conversant and mainstreamed interested in the hearing situation. Heather’s parents become frightened that the implant will make their daughter develop a rejection to the American Sign Language and deaf way of life. The family divergence or disagreement arises after one of Peter’s brothers who do not have hearing impediment, and the wife realized that their newborn infant is also having a hearing problem. They decide to put the child under the implant. The clash gets to an intense peak after the part of the family who does have hearing impediment tries to battle for Heather’s right to join the hearing world while the other part of the family (deaf family members) also battle to keep her deaf individuality. In my opinion, the movie talks about respect for culture. From the movie, there is a battle between two different groups, one group supporting the use of cochlear implant while another group is opposed to the use of the device. It is an indication of how important culture is to different people with different conditions especially the disabled group; respect to culture is essential to every individual. Aronson, Josh, Roger Weisberg, Chris Artinian, Nita Artinian, Heather Artinian, Peter Artinian, Brian Danitz, Ann Collins, Mark Suozzo, Ronald Guttman, and Nora Coblence. Sound and Fury. New York?: Docurama,

Organisational Design & the Transformation of Work Case Study

Organisational Design & the Transformation of Work - Case Study Example The Executives ensure that the clients have whatever they need and their accounts are closed eventually. Now in the current situation, specialists have been bypassing executives. The executives henceforth, have no idea, regarding the account given to him by the agency to take care of. If things continue to be like this, eventually the agency will be left without any executives. The goals of the agency and the specialist’s conflict. The goal of the in house specialist is to ensure that his/her idea is brought by the client. Consumer behavior governs product innovation according to changing times and trends. There is no warning before hand. Where technology is concerned, even technology is non routine at Aquarius agency. There is a lot of emphasis on creativity and art. This makes it perpetually impossible to keep updated with a routine stagnant technology. The goals of the agency are customer satisfaction in the long run and this can be done by engaging them as often as possible. The agency should capitalize on technological advances to come up with better ideas and to promote the ideas produce by its in-house specialists. New technologies should be used and capitalized upon to project better more creative ideas of the specialists. In this way the agency will be successful in building its clientele base and attract new clients in the process. It will demonstrate its commitment to the client and their willingness to appease them and work them to give them what they want. In the given case study, it specified that the agency intends to make it more flexible. They want to adopt a less rigid and a more adaptable approach to be able to tackle any changes and meet any eventuality. They also plan on increasing cooperation and communication between different departments responsible for giving the clients their desired advertising needs. All

Case Study of Globalisation in Indonesia

Case Study of Globalisation in Indonesia Globalisation Globalisation encompasses increased international economic integration, evidenced by growing global markets, global resource flows, transnational corporations, global consumption patterns and intergovernmental agreements, resulting in economies becoming more interconnected through: Increased trade of GS globally Increased global flows of production factors or resources (foreign capital, labour, and technology) Increased foreign investments, resulting in technological transfers Increased private savings or finance globally Harmonisation of the business cycle for globalised economies Increased economic interdependencies Increased growth of size and quantity of TNCs with global operations Increased global consumer trends Increased inter-government consultations/agreements to manage economic contacts and disputes Globalisation has allowed the Indonesian economy to reform to be in accordance with competitive economic growth rates. Globalisation represented the catalyst for Indonesia’s sustained growth once the oil boom of the 1970s subsided, as it allowed international exporting of manufacturing goods, made possible by uniform technological advancement with strong economies, leading to a GDP drop of only 2.6%. Influence of Globalisation on the World Globalisation has had lasting impacts on the globally integrated economy regarding trade, global financial and investment flows, and transnational corporations. Global market growth is initially evident through growing trade links of GS between countries (incorporating consumer GS, capital goods and intermediate GS); as validated by increased global GDP from 12% in 1964 to 48% in 2010 for trading. Figure 1 – The Economy and Global Markets The table exposes globalisation through countries’ high trade dependencies (the importance of exports/imports compared to a nation’s GDP); with scattered countries withholding high trade dependencies, validating the presence of increasingly necessary global trade-flows (outliers affected by externalities including war/civil strife, increasing trade dependency). Globalisation is highlighted by the GFC affecting trade dependencies systematically, where all high dependency nations had lowered percentages, losing 20% a year following the GFC, but in 2011 all these nations’ trade dependencies began to harmonise again. Similarly, low trade dependency nations reduced in trade dependency in 2009, but re-harmonised in 2010. By the circular flow model, exports are injections into the flow, whilst imports are leakages. Thus, increased exports increases the total sales of firms, which motivates increased output and increased GDP. Increased GDP yields increased factors of production, which raises household income, further encouraging more consumption spending, and savings, with taxation revenue obtained by the government sector. Imports, contrastingly, increase access to more GS, and puts pressure on local firms to be more efficient as a means of competing with imports (a lack of competition will void efficiency and resources, leading to ceilings placed on the economy’s total supply). This is shown especially with technology, as a means to keep on par with high-income economies. Global financial flows undertook exponential increase from 1975 to the GFC due to globalisation, inducing: Expanding international trade equivalent twice real GDP growth Expanding international direct investments thrice real GDP growth (before 2001) Expanding international equity investment is ten times real GDP growth Increased global private capital-flows grew from 10% of GDP in 1990, to 32% of GDP in 2005 Figure 2  ­Ã¢â‚¬â€œ Global Capital Inflows $US billion Furthermore, the growth of private savings flows inter-economically is emphasised by: Direct Investments: A purchase allowing foreign investors to exercise control of foreign assets for future decisions. Portfolio Investments: A purchase of equity of foreign assets, but unlike direct investments, there is little control, growing more than direct investments, seen in Figure By the circular flow model, the inflow of these foreign savings increases local savings for financing investment expenditures. FDI promotes technological imports, increasing productive efficiency Due to globalisation, TNCs are able to create subsidiaries internationally to expand global production facilities. Figure 3 – Geographic Distribution of Foreign Subsidiaries of US-based TNCs Figure 3 highlights that coherent national links allows scattering of foreign subsidiaries, increasing high-income nations, increasing confidence of cultural integration of foreign subsidiaries, resulting in increased amount of financial resources due to increase in world GDP. Anti-trust legislations provide lesser ability to expand domestically, but provide incentives to grow via international expansion. Finally, globalisation pressures transnational management to achieve growth due to vast amounts of competition, by entering new markets. Economic Strategies Being Utilised Indonesia’s emerging economy is subject to economic strategies used as part of the globalisation process to promote economic growth and development, including exploitation of oil prices, forced structural change, export-oriented development strategy for non-oil sectors and IMF appeals. Suharto’s government (1967-1998) yielded abrupt changes in Indonesian economic development strategies to surmount government indebtedness, in attempts to increase investment levels for public and private economic sectors to achieve economic growth and development by expansion of heavy industries. In the 1970s, FDIs and foreign loans provided savings, with 50% of funds used for investments in the Indonesian non-oil sector. Suharto’s strategy, centric on labour intensive consumer goods manufactures (including textiles and clothing) instead of heavy industry, had been an import-substitution behind a protective tariff. Indonesia’s prevalent state-owned oil company: ‘Pertamina’ provided ~70% of total exports, with government-independent strategies to spend on steel mills and increase its foreign loans. The 2000% rise in oil prices from 1973 to mid-1980s resulted in exponential increase of oil and LNG export earnings from US$641m to US$10,600m. With vast funds, the Indonesian government realised many domestic private firm conglomerates expanded exponentially (aided by military, contracts, credit and restrictions on competition), leading to structural change with greater investments in heavy industries such as steel, petrochemicals, oil-refining, and plywo od industries possible by export restrictions of logs (validated by a $3899m increase in plywood exports from 1981 to 1996). Due to a subsiding oil boom, the Indonesian government prioritised non-oil exports, so foreign exchange earnings increased to sustain payments and government-sector debt pressures. This shifted focus of manufacturing sectors from domestic markets to export markets to satisfy this instability, aiming to: Increased rupiah devaluation to increase international competitiveness, resulting in decreased wage costs compared to nations including Thailand and Malaysia. Although, the devaluated rupiah results in more expensive imports and cheaper exports, motivating greater export quantities in labour intensive industries, predominantly clothing and textiles. Improved foreign savings access, leading to individuals in the 1990s with foreign investments exceeding US$50m was permitted complete foreign-ownership. Despite this, many foreign-restrictions remained including compulsory local partners, and lowered ownership shares for foreign firms within the joint venture as time progresses. Similarly, the strategy aims to decrease regulatory controls within private firms, motivating greater foreign savings access without government-control (unaffordable governmental trade obligations). Increased tariff reduction on goods to motivate cheaper inputs, increasing economic-efficiency, and motivating international negotiations so export markets are more accessible internationally. Deregulated financial sector to increase competition between dominant state-owned banks and newer domestic/foreign banks, to create private sector independence, achieving greater private investment expenditure than investment spending in the public sector by the 1990s. Due to financial institution debt issues and collapsing property booms within Indonesia, there was capital flight (when assets, money or resources quickly flow out of a country) and collapsed exchange rates with 14000 rupiah to each US$, developing into lacking foreign reserves and desperate appeals to the IMF. These pleas led to an IMF rehabilitation program: Rising interest rates to support the rupiah and to remain stable in the vastly expanding inflation rates (58.5$ in1998) Financial reforms, with dominant banks closing, others nationalised so the government was able to support it, to avoid medium-term collapse in credit availability, but exponential debt issues made this is a difficult issue to mitigate in the short term Rising unemployment due to collapsing credit, with real GDP falling 13.2% from 1998-99 Lowered government spending to alleviate pressures to remain dominant in food subsidies The Impacts of Globalisation on Indonesia Globalisation has impacted Indonesia’s emerging economy in its placement in the globalisation process, primarily inadvertently led by proposed economic strategies relating to primary export sectors, structural economic change and IMF rehabilitation. Figure 4: PERCENTAGE INDUSTRY CONTRIBUTIONS TO GDP OF INDONESIA Figure 4 highlights globalisation triggering increased oil prices and motivating a structural change, emphasised by a predominant mining sector growing until the early 1980s, with successful oil exporters hindered when world recession and inflation in stronger high income economies reduced oil demands during low 1980s. Lowered demand motivated replacements to oil and developing oil-saving technologies, shifting world-energy usages for the following two decades: increasing exports for alternative energy including coal for electricity and heating. Integrated global markets, for primarily fuels, yielded: Lowered export earnings due to lowering oil prices, which decreased by half in the low 1980s to 1986 (dropping to US$12/barrel) Lowered account balance from US$2.2b surplus to US$7.0b deficit from 1980 to 1983, increasing pressure on Indonesian currency (rupiah) and stability of foreign reserves, further disadvantaged by economic nationalism movements deterring FDIs. Government debt repayments grew US$933m from 1975 to 1985, increasing dependence on foreign aid and loans, diminishing effects of their financial export predicament. The predicament shone imperfections to Indonesia’s economic development strategies – unable to produce positive outcomes elsewhere within Eastern Asia, demonstrating that oil exports were unreliable for economic development and nationalism in being globally integrated. These unreliable economic-development-strategies were: Import-substitution strategy allowing public and private firms to develop coherent links with law-makers in low competition and high-protection business environments Military involvement within Parliament, granting specific business operations Attempted sustained economic growth up to the late 1990s and early 2000s from oil lacked cash inflow, leading to increased bureaucrats supporting economic reform, coming with greater influence as the Indonesian government pursued reliable economic strategies focusing on non-oil exports Figure 5: ECONOMIC GROWTH: ANNUAL CHANGE IN REAL GDP Indonesian growth 1991 onwards validates a link between oil’s global demand, and sustained economic growth correlating closely to Malaysia and Thailand, despite weak oil prices. Figure 6: GROWTH IN PRODUCTION, BY SECTOR, IN INDONESIA Figure 6 correlates to slower growth rates with the uprising mining sector from 1980 until early 2000s, accommodated by the AFC in 1997-1999 resulting in lowered GDP, but nonetheless, manufacturing reigned as the leading emerging economic sector from 1990-2002. This Indonesian financial crisis was motivated by centralisation of power within the Suharto government, leading to an undesirable focus of power on those within personal favour of his regime including the president and close family, leading to increased consumption of wasted funds and greater earnings from external, mostly illegal sources of activity. However, reforms in the financial sector during the mid-late 1990s (highly demanded by foreign aid donors), lead to unsustainable increases in deregulation, and increased avoidance to prudential regulation and build-up of private foreign sector debt, correlating to ‘boom-like property developments’, and hence a worsened financial problem for Indonesia on the basis of its coherence within the global market and its highly demanded exports. Due to globalisation, and other nations building upon Indonesia’s oil/non-oil exports, the outcomes of reforms were that private banks and governments responded more to induced pressure from lending negotiations, with the Central Bank/Bank of Indonesia supporting these lending banks through liquidity, with 60-70% liquidity credit siphoned off upon reaching these banks. Resultant of Thailand’s financial institution failure (sporadic lending on property development), and Indonesia’s cash demand, an increased flow of money from Thailand into Indonesia (due to close economic exporting ties), resulted in bank collapse and lowered exchange-rates, developing into business closures and lowered credit availability, meaning extreme unemployment within Indonesia, to which the IMF provided rehabilitation. The influx and dependence of currency from Thailand forced an increase in closure of small banks in early 1998, resultant from lending to their respective shareholders at unsustainable rates, forming non-performing loans unable to be repaid. Alongside foreign aid and loans, recapitalisation of banks costed 50% of Indonesia’s GDP in early 2000s. AVOIDING THE GFC – ECONOMIC STRATEGIES AND RESULTANT IMPACTS Increased resource demand from Indonesia to China, lead to an influx of funds promoting Indonesia’s economic growth, producing greater diversification of oil/gas exports, with 2008 bringing exports of 190m tonnes of coal, rivalled by Australia’s 126m tonnes. One of the leading environmental controversies arisen through Indonesian exports is palm oil (alongside China makes up a third of global imports), involving deforestation and peat burning, which forms greenhouse gases and has become Indonesia’s leading source of air pollution. With forest-derived products being a competitive industry due to its significance on Indonesia’s cash influx, illegal logging provided an unexpected ‘edge’ within competing businesses – with up to 73% of forestry products being manufactured from illegal manufacturing methods. Following economic recession of the AFC, Indonesia’s success during the GFC (shown in Figure 5) was due to: Less reliance on trade (exports pertaining to 30% of nominal GDP) especially between high income markets such as Singapore, Malaysia and Thailand Declining inflation motivated private consumption, accounting for ~60% of GDP Healthy harvests maintained higher income for farming jobs, increasing consumption Increased provision of economic stimuli motivated by political favour of the Democratic Party during 2009 elections, providing grants to 18.5m poor households with tax-cuts part of the fiscal stimulus package with lowered exports during the GFC. Since imports declined more than exports, net exports are the contributors to GDP growth. The government introduced pay-rises for civil servants to quicken budget expenditure to reduce risk in sudden investment declines in manufacturing industries. The resultant budget deficit in 2009 was ~2.6% of GDP Emphasis on exports in Indonesia meant that stimulus distributed within China temporarily recovered the flow of resource income as prices and quantity of exports recovered Indonesian banks were motivated by the 3.0% lowered interest rates, meaning increased repaid loans, reduced lending availability and decreased credit demand. Negotiating with China, loan/swaps were achieved (exchanging cash flows) such that Indonesia was protected from sudden outflows of savings or lacking borrowing ability of banks