Mcdonald’s Five Forces

M ATTRACTIVENESS IN THE DEVELOPING WORLD Mergers and acquisitions form the majority of FDI deals in the developed world, but remain relatively scarce as a mode of entry in the developing world. The infrequent use of M as a foreign direct investment (FDI) entry modality into developing regions has motivated this study. As a first step in exploring the M paradigm in developing markets this paper will classify and rank the M attractiveness of 117 developing economies. Further, the distinction between FDI attractiveness and M attractiveness at a country and regional level will be illustrated. Mergers and acquisitions, as a mode of FDI are rare in developing countries. Only 26, 9 percent of the 11059 FDI developing economy deals documented in this study and concluded between 2004 and 2006 were cross border merger and acquisition deals, the remaining 73% of deals were all greenfield. Within the period 2002 to 2004, mergers and acquisitions made up a mere 19% of the total number foreign direct investment (FDI) deals concluded in developing economies. In contrast, cross- country mergers and acquisitions held far greater appeal in the developed world where M outnumbered greenfield FDI deals by making up 51% of the total FDI deals concluded over the same period 2002 to 2004 (UNCTAD, 2007). The clear preference for greenfield deals in the developing world indicates that there exist elements within locations attractive to M which are distinctive from those locations attracting greater greenfield activity. In order to understand these elements, M attractive and unattractive locations must first be identified and classified. M and greenfield are two distinct modes of entry with differing motivations and dissimilar host country effects. M involves the purchase of a controlling share of stock in an existing host country firm with production capacity (Raff et al, H. , Ryan, M. and Stahler, 2008) whereas 1 greenfield investments see the foreign firm building its own independent business, and sourcing all resources directly from the market (Nocke and Yeaple, 2007). The FDI attractiveness of economies has been well explored in the literature. However, research on the role of FDI in economic development is dominated by a generalised view of FDI where the separation of entry mode strategies was not central. Several authors have commented on the underreporting of M as a process distinct from the FDI umbrella in the literature; these same authors have begun to explore in greater depth the M concept (Kogut & Singh, 1988; Raff et al, Ryan & Stahler, 2005; Nocke & Yeaple, 2007 & Haller, 2008). The M literature is concentrated on the developed economies of the world as the greatest volume of M activity has historically occurred in developed regions. Much of the literature on M describes the increasing number of these deals and its importance in global FDI, often by referring to the global total (Haller, 2008; Bjorvatn, 2004; Horn & Persson, 2001, Shimizu, Hitt, Vaidyanath, Pisano, 2004). None of these studies have referred to the relative scarcity in utilisation of M in the developing world relative to the developed regions of the globe. This paper aims to make a contribution not just to the emerging literature on M but also to its particular developing economy paradigm. The methodology of this study allows for the identification and ranking of FDI attractive economies, M attractive economies and for the distinction to be drawn between M attractive economies at the country level and M attractiveness at a regional level. At the country level M attractive economies are economies which attracted more M than greenfield deals internally i. e. economies attracting a greater ratio of M activity to greenfield investments. Regional M attractive economies were defined as economies which whilst attracting large volumes of M activity within a region were not attracting a greater number of 2 M deals internally. Greenfield deals continue to dominate these markets. In other words these countries were M attractive by virtue of being FDI attractive. FOREIGN DIRECT INVESTMENT IN DEVELOPED AND DEVELOPING ECONOMIES Understanding the distinction between developed and developing economies and foreign direct investment in these markets is fundamental to this study. Per capita income, an indicator of the wealth and potential of a market, is an important manifestation of the differences between developing and developed economies. Unfortunately however, developing economies are subject to frequent policy regime switches and growth rate volatility when compared against the group of developed economies (Aguiar and Gopinath, 2007). Productivity in emerging markets is unstable, here the cycle of political and economic shocks have become trends (Aguiar and Gopinath, 2007). The income inequality, higher poverty levels, governance, institutional contexts (North, 1994; Peng and Heath, 1996) and the level of economic and human development of developing economies is offset by the fact that since the early 1990’s these countries have also been the fastest growing market in the world for products and services (Khanna and Palepu, 2005). The strategic choices made by multinationals engaging in developing markets must necessarily be considered with respect to the above mentioned host country factors. Many developing economies which are characterised by an accelerated pace of economic development and a liberalisation or opening of their economies by the application of free market principles are termed emerging economies (Hoskisson, Eden, Lau, Wright, 2000). Other rapid growth countries included in this group are the transition economies of Eastern Europe which were historically planned economies but have now adopted free market principles (Hoskisson et al, 2000). 3 The literature is dominated by developed economy FDI. However, FDI patterns observed in developed countries cannot be generalized to transitional or developing economies (Pan, 2003). Blonigen and Wang (2005) have established that the factors determining the location of FDI â€Å"vary systematically† between developing and developed countries (Blonigen and Wang, 2005). In their paper, Phylatakis and Xia (2006) investigate the dynamics of global, country and industry effects in firm level returns between developed and emerging, markets. Their findings show that especially for emerging markets, country effects are more important than ndustry effects in explaining return variation for firms (Phylatakis and Xia, 2006). Sethi, Guisinger, Phelan and Berg (2003) believe that FDI flow should not only be studied at a firm level but additionally at a country level as country level factors affect the decisions of all firms over time (Sethi et al, 2003). In addition, not all of the hypothesized relationships in the literature on FDI (e. g. ex change rates and source country size) were supported in a study on the transitional economy of China (Pan, 2003). This suggests that the developed and developing region FDI paradigms should be studied as distinct entities. LOCATION FACTORS Encouraged by superior technology, faster and cheaper communications and motivated by intensifying competition, businesses are able to scour the globe in search of locations offering advantages which increase the competitiveness of the firm. Location advantages refer to the institutional and productive factors which are present in the particular geographic area chosen for FDI (Galan and Gonzalez-Benito, 2006). Dunning’s OLI theory explains a firm’s choice for a particular FDI destination. First the home based firm must possess an ability which it is able to 4 exploit abroad and which is portable. This is termed the ownership advantage (the O advantage) of the firm. The ‘L’, which is the focus of our research, refers to the location which must have desirable qualities and offer advantages to the firm. Examples of this would include large markets, production factors including cheap or skilled labour or natural resources. A locational advantage would enhance the profits of a firm. The ‘I’ refers to internalisation, which implies the firm has more to gain from the total control of the asset than by allowing control to rest with export agents or licensees (Dunning, 2001). Tong, Alessandri, Reur and Chintakananda (2008) find that country and industry effects and their interaction substantially influence firm performance. The authors advocate that industries with growth opportunities learn how to exploit country specific factors by locating operations there. Even though low labour costs are used by many developing economies to attract FDI (e. g. China and Vietnam) studies show that it is of far less consequence to FDI attraction than host market size and distance. Total costs of production taken together are however largely influential in the direction of FDI flows. High labour costs may be mitigated by the infrastructural spend on health and education which would result in a healthy, skilled and more efficient workforce which in turn acts to lower costs (Bellak, Leibrecht and Riedl, 2008). In understanding M attraction it is important to first mention the literature on FDI attraction, that is why firms go to foreign locations. According to Fontagne and Mayer (2005), firms will go to foreign locations if there exists sufficient demand in the country or region, total production costs incurred at the location are low, intense competition is not a threat, public policies are advantageous and institutions create productive and efficient economies in which to operate. Foreign locations may also be desirable in order to leverage economies of scale, take advantage of arbitrage opportunities involving factor costs, to diversify and reduce risk, exploit distinctive 5 dvantages to gain market and to escape from increasing home market competition (Rugman & Li, 2007 and Rugman and Verbeke, 2001). Therefore we may expect that economies offering locational factors conducive specifically to M will display greater attractiveness values. In light of the statements above, host country demand amongst other factors is responsible for the decisions of firms to choose foreign locations it leads us to believe that market size or the GDP of a country has an important role to play in M attraction. Therefore it may be expected that the larger a countries GDP the greater the M activity it will attract. First documented by Knickerbocker (1973) is an idiosyncrasy in the movement of firms. Firms follow into locations where other firms from their industry have already entered despite the increase in competitive intensity this generates. Therefore M attractiveness may also be related to the number of firms already functioning within the host market. This agglomeration tendency may be linked to supply chain and input-output linkages. Further by locating affiliates close to other multinational affiliates they may be able to benefit from absorbing technological spillovers. The effect of this would be the lowering of R costs and raising the firm’s competitiveness by enabling it to stay abreast of competitor strategy (Fontagne and Mayer, 2005). REGIONAL COUNTRY LEADER EFFECT Part of the focus of this paper is to explore a regional dimension of FDI and M. Much of the literature on regional leadership effects concerns Japanese FDI into the Asia-Pacific region. The ‘flying geese’ model by Ozawa describes the trend where mature products and industries are shifted from one country to another more peripheral lower cost destination within the region 6 (Ozawa, 2003 and Kojima, 2000). As the host country costs rise so it too moves toward higher value add products and the production of the good moves to the next low cost destination (Edgington and Hayter, 2000; Hart-Landsberg and Burkett, 1998). In this way advantages such as technology, employment, real incomes and innovation may cascade through a region (Clark, 1993). Several studies have shown that when MNC’s first plan to internationalise they choose geographically and culturally proximate regions, this is known as the ‘market familiarity principle’. In this way home based skills, advantages, management and resources may be leveraged to minimize transaction costs (Gomes and Ramaswamy, 1999). In ‘Regionalism and the Regionalisation of International Trade’, Gaulier, Sebastien and UnalKesenci (2004) explain the idea that regionalisation is a natural pattern and that the volume of inter-neighbour trade between countries is high due to the economic sense of trading over shorter distances. Various studies find that countries have the bulk of their foreign trade concentrated within a particular triad region (Gaulier, Sebastien and Unal-Kesenci, 2004; Rugman and Verbeke, 2004). In their study on 64 Japanese multinationals Collinson and Rugman (2008) found that only three operated globally with the remainder concentrating 80 % of their operations (sales & assets) intra-regionally. More importantly, with implications for this study and the attraction of M, was the finding that region-specific regionalisation trends are linked to changes in infrastructure, information or cultural ties. Large regional trade agreements, especially when a custom union exists, were also shown to have positive effects on trade volume and created lucrative opportunities for foreign producers. The trade agreements allowed access to a large market from a single country, even if it was a smaller market than its neighbours (Gaulier, Sebastien and Unal-Kesenci, 2004). This paper 7 reinforces the importance of institutions in developing regional trade and mentions specifically that a positive â€Å"gravity† factor of regionalisation could be the swift acceleration of GDP growth of other countries within a region. Policy makers should take note that contractual relationships present significant risks to foreign MNE’s in host countries which have linguistic, legal and economic institutions systems vastly different from the home country (Clark, 1993). Promoting and facilitating corporate governance would have a positive impact on inter-company linkages with the resultant promotion of regional development. The ability to access risk finance and instruments make it critical for a firm to operate in an advantageous national location within a region (Clark, 1993). Pajunen (2008) reinforces the above idea of a MNE firm searching for the most advantageous location within a region. In order to access the rapidly expanding emerging economy market a firm may make a strategic decision to enter South America or South–East Asia and will then search for the most attractive location within that region to trade from (Pajunen, 2008). As we have seen in an earlier paragraph, the growing number of regional trade agreements allows the MNE to transact with minimal trade costs within a region. The regional leader attracts the most FDI in a region. This research asks the question who attracts the most M and why? This question may be answered by the findings of Qian, Li, Li and Qian (2008). Qian, Li, Li and Qian (2008) confirm that firms are regionally focused and also offer an explanation for the regional internationalisation of firms rather than a fully global expansion. They find that firms’ costs are lower intra-regionally and hence performance is enhanced. They add however that a threshold to performance is reached intra-regionally and that a developed country MNE may maximise performance by entering into a moderate number of developed country regions and a strictly limited number of developing regions as costs here are substantially 8 ifferent. They advocate the careful selection and allocation of resources in developing regions as over-diversification here will result in costs outweighing benefits (Qian et al, 2008). This reinforces the idea of a regional FDI leader in the developing country context that is a ‘safer’ haven for MNE resource allocation. Taking into ac count this evidence, it is possible to assume that as regional cooperation is enhanced so inter-regional trade is encouraged which results in greater amounts of FDI and M which will flow into a regional leader country with the safest reputation. MERGERS AND ACQUISITIONS An imperative of a foreign investment entry strategy is to minimise the cost of entry in order to render the venture more profitable. Cultural barriers and socio-political differences between the entrant and host raise the cost of transacting and thus the entry mode chosen will attempt to reduce this. M AND CAPABILITY SEEKING MULTINATIONALS Firms have capabilities in their own markets which are not necessarily internationally mobile, may not be useful in a foreign market or the firm may require a set of additional competencies to operate successfully in the foreign market (Anand and Delios, 2002). Anand and Delios (2002) offer a description of upstream capabilities which are described as fungible and portable; an example of this may be intangible technological know-how. By engaging in a cross-border M the firm is able to access the local knowledge and downstream capabilities of a local firm and use this to supplement its portable advantages in serving the new host market (Nocke and Yeaple, 2007). Examples of capabilities or advantages which the local firm may possess include brand, marketing and sales force knowledge, privileged access to 9 istribution channels, a capability to manoeuvre through local ‘institutional voids’ and challenges (Khanna and Palepu, 2005), emission rights for environmental pollution, landing slots at airports, scarce land or oil/mineral extraction rights amongst others (Horn and Persson, 2001). Fungible upstream capabilities are a stronger driver for acquisitions than downstream capabilities which are less fungible (Anand and Delios, 2002) . Developing countries are less likely to have superior technological capabilities than the potential developed country acquiring firm. The lower sophistication of the developing market would therefore limit the number of acquisition targets available for a developed country MNE. Acquisition targets for downstream capabilities (marketing, brand etc. ) would hold greater appeal in countries with large target markets. The number of M deals can therefore be expected to relate to market size (GDP) and market sophistication (represented by aspects like the level of human development and infrastructure). The number of M deals will also be related to the number of local acquisition targets available which in turn is dependent on the level of development of the country. ACQUISITION DRIVERS The initial choice to engage in FDI over export is dependent on how profitable the firm expects the greenfield or M to be. The second strategic choice of greenfield over M is related to the firm's ownership of productive assets and varies both across and within industries (Raff, Ryan and Stahler, 2005). A cross border-merger provides access to a foreign market whilst a national merger relieves domestic competitive pressure. When trade costs are low however national mergers do not reduce competitive pressure and firms will seek access to foreign markets through a cross-border merger. Economic integration results in lowered trade costs and therefore increased competition which is likely to increase the profitability of acquisitions (Bjorvatn, 2004). The lowering of trade costs 10 which is dependent on host country regulations will therefore increase the level of cross-border M activity. The literature describes one of the main advantages of cross-border M to be the access which it provides to a foreign market (Horn and Persson, 2001) whilst within border mergers are generally attributed to relieving domestic competitive pressure (Bjorvatn, 2004). Raff et al (2008) explains that firms entering a foreign market will approach local firms with a merger and acquisition or joint venture proposal in order to enjoy the synergies of such a relationship. Raff et al (2008) maintain that a merger & acquisition offer will be accepted by the local firm if the profitability and success of a greenfield investment by the multinational is likely and credible. Further, the greater the anticipated profitability of the greenfield investment the lower the merger & acquisition price offered to the local firm. Hence M& A would be preferred over greenfield as the entry costs would be lowered. The choice of greenfield over M will depend on the number of competitors in the market and the market potential as this affects the anticipated profitability of the greenfield venture or the cost of the M (Raff et al, 2007). This leads us to hypothesize that countries with greater market potential (GDP, GDP per capita and HDI) and fewer local competitors will result in a lowering of the cost of an M which in turn results in increased volumes of M. CULTURAL CHALLENGES AND THE ‘LIABILITY OF FOREIGNNESS’ Mergers and acquisitions and partially owned ventures offer the opportunity for a foreign MNE to access local assets such as brand, distribution networks and a client-base which is difficult to mobilise from home by working with local established companies (Petrou 2007). In instances where large cultural distances exist between home and host countries, Brouthers and Brouthers 11 (2000) advocate the use of acquisitions in order to confer legitimacy and cceptance on the foreign MNE. However, M involve greater costs when the cultural distance is high and therefore Chang and Rosenzweig, (2001) assert that firms would be more likely to choose greenfield entry to avoid the costs of integrating diverse company cultures. Greenfield investments offer total affiliate control and avoid post merger cultural difficulties but take a far longer time period to establish market presence and require substantial experience and know-how of local conditions (Chang and Rosenzweig, 2001). Most recently Slangen and Hennart (2008) have found that MNE’s will prefer acquisitions in culturally distant locations if they have little international experience or if they plan to grant the subsidiary autonomy in marketing. If they are internationally experienced or have no market related concerns then a greenfield is preferred in culturally distant locations. The entry choice is also industry-specific depending on the resource requirements of the firm. Manufacturing operations tend to favour greenfield deals whereas in advertising where brand and product are tailored to local tastes acquisitions are preferred as FDI entry strategies (Kogut and Singh, 1988). The above information alludes to the idea that M will tend to occur in the services industry as it confers on the MNE an understanding of, acceptance within and access to a foreign market. The information examined above dealt with the cultural challenges of M. The next section will broach the subject of institutional challenges in M deals especially in developing economies. M FAILURE 12 Approximately 70%-80% of all mergers fail (Bretherton, 2003) and KPMG reports only 17 % of cross border M s create value while 53% destroy value (Shimizu, Hitt, Vaidyanath, Pisano, 2004). These statistics may be part of the explanation for the lower volumes of M deals in developing economies where investor firms may be wary of entering into deals already known to have high failure rates and then compounding this in an environment fraught with challenges i. . developing regions. Therefore many organisations choose to enter into strategic alliances and joint ventures which allow them the benefits of searching for new market opportunities, sharing in innovation and technology, overcoming host regulatory requirements and developing new capabilities. Importantly however these alliances are easier and less costly for companies to enter and exit should the need arise. IMPORTANCE OF LEGAL AND FINANCIAL FRAMEWORKS TO SUPPORT MNE’S Market inefficiencies related to the resource profile and institutional profile of a host economy may be overcome by the entry strategy of the MNE. Chang and Rosenzweig (2001) assert that an acquisition is the quickest way for a firm to build a sizable presence in a foreign market. The challenges of this mode however involve the post acquisition cultural merge, the risk of overpaying and an inability to fully assess the value of the acquired assets (Chang and Rosenzweig, 2001). In a developing market context additional challenges to M include the scarcity or absence of legal, financial and institutional organisations and structures through which the deal could be investigated, formalised and protected and is further complicated by the existence of burdensome host country regulations relating to ownership (Khanna and Palepu, 2005). HYPOTHESIS 13 It is expected that M attractive economies in the developing world may be identified as a group distinct from FDI attractive economies depending on the context of the location factors of the host economies. It can therefore be hypothesised that M attractiveness does not equal FDI attractiveness and that varying levels of M attractiveness occur. RESEARCH DESIGN SAMPLE AND DATA SOURCES The World Bank and UNCTAD, through the annual World Investment Report and World Investment directory, publish data on over 210 economies which are divided into developed and developing economies. In this study data were assembled for 117 developing and transition economies. Blonigen and Wang (2004) in their examination of the FDI experiences of developed and developing economies conclude that the variation of data across these groups makes it inappropriate to pool data on them in empirical analyses. A further rationalisation for the isolation of developing economies from developed economies in this paper can be found in North (1994), he writes that the experiences of actors in highly developed modern economies may not be compared to that of individuals operating under conditions of uncertainty, political or economic. In order to identify regional FDI leaders, for the purpose of this study, the country data was divided into regional groupings (see table below) according to the United Nations Statistical Office as published in the UNCTAD World Investment Report classification for 2007. [Table 1 about here] VARIABLES AND MEASURES The analysis aims to separate FDI attractiveness from M attractiveness and to rank the attractiveness of developing countries to mergers and acquisitions. The data for value and volume 14 of M in the sample of developing economies was taken from the latest available M and greenfield data published by UNCTAD (based on data from Thomson Financial) over the period 2004 to 2006. Six variables were created. The table below describes, explains and shows the grouping of the variables. Group A in table 2 below represents country M attractiveness. Two measures numbers 1 and 2 were used to measure attractiveness at the country level. One is volume based; that is the number of deals in one country as a percentage of the country’s total deals, whilst two is value based that is the dollar value of deals which flowed into the respective country as a percentage of GDP. Thus the measure for country level M activity has two dimensions in this way the variable carries richer information and is less likely to be skewed by a single, large dollar value deal. As this measure is computed using per country total deals and per country GDP as the denominator, it is an intra-country measure. Group B in table 2 represents regional M attractiveness and contains 3 measures. Again both a volume and a dollar value were used to measure regional M activity for the same reasons listed above for country attractiveness. If for example a country attracted one very large dollar value deal, but no other deals, it may be read as an M attractive economy when in fact it only attracted a single deal. This regional group of variables is computed using the number of total regional M deals, the number of total regional FDI deals and the dollar value of the total regional FDI inflow as the denominators. Thus it measures the country’s M volume and value respective to the regional total. It is an intra- regional value. Group C in table 4 contains one measure for the FDI attractiveness of a country in a region. This measure includes all deals (greenfield and M) which a country attracts with respect to the total number of deals concluded in its geographic region. 15 [Table 2 about here] METHOD OF ANALYSIS The statistical challenge in this study was to find a method which would allow for the separation of FDI attractive economies from M attractive economies and of M attractive from M unattractive economies. Two statistical methods were utilised to test the variables. A cluster analysis allowed for countries with similarities based on the variables to be clustered together. A principal component analysis was performed in order to create an M attractiveness ranking of the sample countries. CLUSTER ANALYSIS INTRODUCTION TO CLUSTER THEORY A cluster analysis is a statistical tool which allows for the discovery of meaningful structures within data without explaining why they exist. This allows data to be sorted into groups or categories where the members of each group have a high degree of association with each other and a minimal association if they belong to another group. Thus this technique places the economies under study into clusters based on well defined similarity rules and finds the most significant groups of objects. (http://www. statsoft. com/textbook/stcluan. html) Clustering is the term used to describe the presence of separate and distinct groups in the data however if clustering is not recognized by failing to visually inspect the data (scatterplots or another graphing technique), the correlation coefficient may suggest that no relationship exists even though within each cluster a clear relationship may indeed exist (Siegel, 2000). As an initial exploratory step and in order to determine which of the variables listed in Table1 were most successful in dividing the economies a cluster analysis was performed. 16 The data for some variables such as GDP had a very different scale to the some of the smaller scale values e. g. Polcon 3 index. The data was thus standardized to allow each variable an equal opportunity to display significance in the cluster analysis and prevent any one variable dominating (Boudier-Bensebaa, 2008). A cluster analysis was run on the variables listed in table 2 above. A four cluster solution was accepted as all the clustering variables proved to be significant. PRINCIPAL COMPONENTS ANALYSIS A principal components analysis allows for the identification of underlying factors in the variables which account for the largest variance amongst the data set of 117 countries. Table 3 below shows the variables used in the principal component analysis grouped at the country and regional level. This analysis is undertaken in order to create an attractiveness value per country which allows the developing countries to be ranked based on their M attractiveness score. Understanding Principal Component Analysis The principal component analysis (PCA) is a data reduction technique that distils the essence of several variables into a smaller number of components which explain the variance in the data. The regional and country variables listed above showed correlations but rather than discard them they are rolled into a two factor composite M attractiveness value one factor for regional attractiveness and one factor for country attractiveness. The principle of parsimony (simplicity and reduction) is followed by creating an attractiveness value out of the variables, in this way more meaningful and richer measure is created and the dimensions of the data set become more manageable (Siegel, 2000 p586; Berenson & Levine, 1986). 17 The Eigen analysis is the name of the mathematical technique used in PCA. Eigen values show the percentage of variance explained by each component, the largest Eigen value is the first principal component, the second largest Eigen value is the second principal component, and so on. (http://www. fon. hum. uva. nl/praat/manual/Principal_component_analysis. tml). The Eigen values for our study were determined; these values were then plotted on a scree plot to illustrate the importance of each of the components. A factor analysis was performed on the all the variables in table 3 above. The PC analysis will create factors by reducing the data into its underlying dimensions. These factors allow for an attr activeness score to be generated for each country. THE VARIABLE DENOMINATORS [Table 3 about here] The country level variables were expressed as percentages of per country GDP, per country FDI inward stock and total number of per country FDI deals. Therefore outcome values expressed are all calculated with respect to intra-country measures. The regional level variable denominators included the total FDI flows into a geographic region, the total number of M deals in a region and the total number of FDI deals in a region (e. g. Central America, North Africa etc) and are expressed as percentages. Therefore all values are calculated with respect to regional totals. By separating the variables a richer result is obtained, the analysis is able to pick out regional leaders and interesting countries which may not be FDI attractive but nevertheless are M attractive. If the analysis had not made the distinction between attractiveness at the country level 18 and regional level the interesting case of Libya where M deals predominate would have been lost as its total FDI is so small. RESULTS: THE FOUR CLUSTER SOLUTION, DESCRIPTIONS AND MEMBER COUNTRIES The results of the four cluster solution is summarised as a profile plot with the means percentages included in table 4 below. The premise that a country level and regional level group exist in the data was confirmed with the cluster analysis. All the countries in cluster 1 showed a high value for the intra-country number (or volume) of M deals respective to the other clusters. Cluster 1 countries are intra-country performers. They do not perform well at a regional level. Cluster 4 countries are country level performers like cluster 1 but perform better on M dollar sales value than on M volume. For the purpose of this study clusters 1 and 4 are both considered as country level performers, their distinction lies in a difference of measure that is volume of M deals versus value of M deals respectively. Cluster 2 displays a strong performance on the regional level M variables. Cluster 2 also displays the strongest regional FDI attraction. Cluster 2 countries are regional performers. [Table 4 about here] [Table 5 about here] [Figure 1 about here] Cluster 3 countries do not perform on any of the variables; they may be labelled poor M performers. Table 5 above lists the member countries of each cluster. In light of the descriptions defined above, each of the four clusters has displayed distinctive mean characteristics based on a regional and country distinction and on the strength of the M 19 ttraction. In order to illustrate each clusters level of attractiveness graphically, the clusters have been plotted onto the axes above (Figure 1), the y axis representing country attractiveness and the x axis representing regional attractiveness. PC ANALYSIS AND EIGEN VALUES: The PC analysis in table 6 below shows the reduction of the five variables into a two factor solution which explains 80, 3 % of the variance of the underlying variables. The Eigen value is the variance explained by each factor of the underlying variables. [Table 6 about here] The PC analysis onfirmed the premise held of there being both a regional and a country effect in the data by loading all the regional variables on factor 1 and the country variables on factor 2. Factor 1 is a regional M attractiveness factor and factor 2 is an intra- country M attractiveness factor. The 117 countries on the data table are run against these attractiveness values in order to obtain a regional and a country level attractiveness value for each. This is accomplished by multiplying each country’s variable score by the factors in the table. The regional PC factor value allows for the generation of a regional attractiveness value for each country whilst the intracountry PC value allows for the generation of an intra-country attractiveness value for each country. Two lists are thus created, a list of the 117 developing countries with regional attractiveness values and another containing the same 117 developing countries with intra-country attractiveness values. PER COUNTRY ATTRACTIVENESS VALUES AND RANKING: 20 In order to make sense of the country and regional attractiveness values each list was ranked and ordered so that the countries appear in order of attractiveness. The top quartile or quartile 1 (Q1) is the least attractive to M activity, the bottom quartile or quartile 4 (Q4) is the most attractive. Therefore the higher the ranking the more M attractive the country is. The following countries were not ranked as they had no M activity: Azerbaijan, Brunei Darussalam, Cameroon, Equatorial Guinea, Eritrea, Ethiopia, Guyana, Honduras, Myanmar, Nepal, Paraguay, Qatar, Senegal and Suriname. At the regional level the most M attractive economies were India, RSA and Brazil, Russia, Turkey and Mexico, Table 7 below lists and ranks the most regionally M attractive economies. Table 8 ranks the least attractive regional economies with Burkina Faso, Yemen and Albania being the most unattractive M economies regionally. The countries most attractive to M at the country level that is those countries attracting a greater number of intra-country M than greenfield deals are listed in Table 9, the top ranked countries are Mauritius, Burkina Faso, Bulgaria, Panama, and Ghana. The most unattractive country level economies for M activity are listed in Table 10, with the UAE as the most unattractive followed by Tanzania and Saudi Arabia. Table 7 about here] [Table 8 about here] [Table 9 about here] [Table 10 about here] [Figure 2 about here] 21 Figure 2 above is a scatter plot of the country level economies list on the ‘y’ axis and the regional level economies list on the ‘x’ axis. The most attractive country level economies (attract more M than greenfield internally) can be seen on the upper left section. The most attractive M economies on t he regional list can be seen on the lower right section of the plotted area. These economies attract the most M deals in their geographic regions. The line drawn through the origin recreates the M attractiveness axes shown in Figure 1 which can be superimposed over this plot. DISCUSSION For both sets of analyses the regional FDI leaders correlated. This list included the Cluster 2 countries and top ranked regional M attractive countries (India, RSA and Brazil, Russia, Turkey and Mexico). The large market sizes of these regional leader countries have several implications in terms of M attraction. First, large markets attract market seeking MNE’s, the literature shows that these firms are likely to utilise M as a mode of entry (Buch and De Long, 2001). The fact that they are economic hubs and attract greater volumes of FDI than other developing countries also results in an increased presence of foreign affiliates operating in their markets (Qian and Delios 2008; and Kolstad and Villanger, 2008). These affiliates are likely to be followed by service industry firms (following their domestic clients) into these foreign markets (Qian and Delios 2008) thereby creating a virtuous circle for increased FDI and M activity. These countries are FDI poster boys in their respective regions and are M attractive by virtue of being FDI attractive. A distinct group of countries emerged as country level M leaders in the PC analysis and as the members of clusters 1 and 4. These comprise an interesting and eclectic mix of countries which include amongst others Mauritius, Burkina Faso, Bulgaria, Panama, Ghana, Kyrgyzstan, Armenia, Croatia, Ukraine, Colombia, Yemen and Azerbaijan. They are not regional FDI leaders but 22 attracted a greater amount of M activity than greenfield activity. In these countries, M attractiveness is not distorted by the regional leader effect and associated FDI attractiveness; hence M host location attractiveness can be studied in a purer form. Differences exist between the regional leader group and the country level leader groups which make these groups unique. The Cluster 4 and top ranked country level M attractive economies must possess some interesting locational features considering that these are smaller economies which do not comprise the largest markets in the sample. Given that M are more frequently used as a mode of entry in developed countries, location features may exist in the country level attractive group which mimic certain developed market conditions. M attractiveness at the country level may be a marker for development. The cluster 2 and regional leader groups whilst attracting large volumes of M activity within a region were not attracting a greater number of M deals internally. Greenfield deals continue to dominate these markets. In other words, it is partly true that these countries were M attractive by virtue of being FDI attractive. Examining however the PC analysis at the country level of M attraction and the cluster 4 countries in the cluster analysis, we are able to identify true M attractive economies i. e. economies attracting a greater ratio of M activity to greenfield investments. It can now be stated that FDI attractiveness does not automatically mean M attractiveness as the analysis has isolated clear groups of countries which are FDI attractive and which attract more greenfield activity and those which are M attractive. Lipsey comments on the absence in the literature of the effects which FDI may have on a country’s consumers. Mergers and acquisitions may result in the consolidation of industries increasing the monopoly power of firms with resulting higher prices (Haller, 2008; Nocke and 23 Yeaple, 2007). Greenfield operations would have the opposite effect by reducing the power of local producer monopoly positions and increasing local competition. At the same time superior technology and innovation brought in by the acquiring firms may improve local production efficiencies thereby lowering the local cost of goods (Lipsey, 2002). The dissimilar spillover effects of greenfield versus M is a clear motivation for the two modes of entry to be analysed and understood as distinct entities, even though much of the literature on the developmental role of FDI treats FDI as a single entity (Dunning & Narula, 1996; Dunning 2001; Rugman & Li, 2007). The effects of M investment into developing regions, local linkages and their impact on growth and development in the host may also be areas of great interest especially to policy makers. Future research directions would be to identify exactly what the macro-economic markers of development are which attract M to certain developing economies. An understanding of location factors and macro-economic markers of development in developing countries may also be beneficial to MNC’s searching for optimal M locations in new global neighbourhoods. 24 REFERENCES Aguiar, M and Gopinath, G (2007), Emerging Market Business Cycles: The Cycle Is the Trend, Journal of Political Economy, Vol 115, and No. 1 Anand, J. and Delios, A. (2002) Absolute and relative resources as determinants of international acquisitions, Strategic Management Journal, Vol 23, p 119-134 Bellak, C. , Leibrecht, M. and Riedl, A. (2008) Labour costs and FDI flows into Central and Eastern European Countries: A survey of the literature and empirical evidence, Structural Change and Economic Dynamics, Vol 19, p 17–37 Bjorvatn, K. 2004) Economic Integration and the profitability of cross-border mergers and acquisitions, European Economic Review, Vol 48, p 1211-1226 Blonigen, B. A. and Wang, M (2004) Inappropriate pooling of wealthy and poor countries in empirical FDI Studies, National Bureau of Economic Research, Working Paper10378, March 2004 Boudier-Bensebaa, F. (2008) FDI-assisted development in the light of the investment development path paradigm: Evidence f rom Central and Eastern European countries, UNCTAD, Transnational Corporations, Vol 17, No1 (April 2008) Brouthers, K. D. and Brouthers, L. E. (2000) Acquisition or greenfield start up? Institutional, Cultural and Transaction Cost Influences, Strategic Management Journal, Vol 21, p 89-97 Chang, S. J. , and Rosenzweig, P. M. (2001) The choice of entry mode in sequential foreign direct investment, Strategic Management Journal, Vol 22, p 747-776, doi: 10. 1002/smj. 168 Clark, G. L. (1993) Global interdependence and regional development: business linkages and corporate governance in a world of financial risk, Transactions of the Institute of British Geographers, New Series, Vol 18, No3, p309-325 Collinson, S. nd Rugman, A. M. (2008) The Regional nature of Japanese multinational business, Journal of International Business Studies, Vol 39, p 215-230 Dunning, J. H. and Narula, R (1996) Foreign Direct Investment and Governments, Catalysts for economic restructuring, Routledge, London, 1996. Dunning, J. H. (2001) The Eclectic (OLI) Paradigm of International Production: Past, Present and Future, International Journal of the Econom ics of Business, 2001, Vol 8, No 2, p173-190 Edgington, D. W and Hayter, R (2000) Foreign Direct Investment and the flying geese model: Japanese electronics firms in Asia – Pacific, Environment and Planning A, 2000, Volume 32, p281-304 EIU, (2007) Economist Investment Unit 25 Fontagne, L. and Mayer, T. (2005) Determinants of Location Choices by Multinational Firms: A Review of the Current State of Knowledge, Applied Economics Quarterly, Vol 51, p 9-34 ( Article requested directly from author, unavailable online) Galan, J. I. and Gonzalez-Benito, J. (2006) Distinctive determinant factors of Spanish foreign direct investment in Latin America, Journal of World Business, Vol 41, p 171–189 Gaulier, G. Jean, S. and Unal-Kesenci, D (2004) Regionalism and the Regionalisation of International Trade, Regionalisation No 2004 – 16, November, CEPII, Working Paper No 2004-16 Gomes, L. and Ramaswamy, K. (1999) An empirical examination of the Form of the Relationship between Multinationality and Performance, Journal of International Bus iness Studies, Vol 30, No1, (1st quarter, 1999), p 173-187 Hart-Landsberg, M and Burkett, P. (1998) Contradictions of Capitalist Industrialization in East Asia: A Critique of â€Å"Flying Geese† Theories of Development, Economic Geography, Vol. 4, No. 2 (Apr. , 1998), pp. 87-110 Haller, S. A. (2008) The impact of multinational entry on domestic market structure and investment, International Review of Economics and Finance, (2008), doi:10. 1016/j. iref. 2008. 02. 004 Horn, H and Persson, L (2001) The equilibrium ownership of an international oligopoly, Journal of International Economics, Vol 53, p 307-333 Hoskisson, R. E. , Eden, L. , Lao, C. M. and Wright, M. (2000) Strategy in Emerging Economies, Academy of Management Journal, Volume 43, No 3, 249-267 Khanna, T. nd Palepu, K. (2005) Strategies That Fit Emerging Markets, Harvard Business Review, June 2005. Knickerbocker, F. T. 1973. Oligopolistic reaction and the multinational enterprise. Cambridge MA Kogut, B. and Singh, H. (1988) The effect of national culture on the choice of entry mode, Journal of International Business Studies, Fall 1988 Nocke, V. and Yeaple, S. (2007), Cross- border mergers and acquisitions vs. Greenfield foreign direct investment: The role of firm heterogeneity, Journal of International Economics, Vol 72, p 336-365 North, D (1994) Economic performance through time, American Economic Review, 84 (3), 1994 Ozawa, T. (2003) Pax Americana-led macro-clustering and flying geese-style catch-up in East Asia: mechanisms of regionalized endogenous growth. Journal of Asian Economics Pajunen, K (2008) Institutions and inflows of foreign direct investment: a fuzzy- set analysis, Journal of International Business Studies, Vol 39, p 652-669 Pan, Y (2003) The inflow of foreign direct investment to China: the impact of country-specific factors, Journal of Business Research, Vol 56, p 829–833 6 Peng, M. W. , Wang, D. Y. L and Jiang, Y (2008) An institution- based view of international business strategy: a focus on emerging economies, Journal of International Business Studies, Vol 39, No 5, p 920-936. Petrou, A. (2007) Multinational banks from developing versus developed countries: competing in the same arena? Journal of International Management, Vol 13, p376–397 Phylatakis, K. and Xia, L (2006) Sour ces of firms’ industry and country effects in emerging markets, Journal of International Money and Finance, Vol 25, p 459-475 Qian, G. Li, L. , Li, J. and Qian, Z. ( 2008) Regional diversification and firm performance, Journal of International Business Studies, Vol 39, No2, p 197-214 Raff et al, H, Ryan, M. , and Stahler, F. (2008) The choice of market entry mode: Greenfield investment, M and joint venture, International Review of Economics and Finance (2008), doi:10. 1016/j. iref. 2008. 02. 006 Rugman, A. M. and Li, J. (2007) Will China’s Multinationals Succeed Globally or Regionally? , European Management Journal, Vol 25, No 5, p333-343 Rugman, A. M. and Verbeke, A. 2004) A perspective on regional and global strategy of multinational enterprises, Journal of International Business Studies, Vol 35, p3-18 Rugman, A. M. and Verbeke, A. (2008) The theory and practice of regional strategy: a response to Osegowitsch and Sammartino, Journal of International Business Studies, Vol 39, p 326-332 Sethi, D. , Guisinger, S. E. , Phelan, S. E and Berg, D. M. (2003) Trends in foreign direct investment flows: a theoretical and empirical analysis, Journal of International Business Studies, Vol 34, p 315-326 Shimizu, K. , Hitt, M. A. , Vaidyanath, D. and Pisano, V. 2004) Theoretical foundations of cross-border mergers and acquisitions: A review of current research and recommendations for the future, Journal of International Management, Vol 10, Issue 3, p 307-353 Slangen, A. H. L. and Hennart, JF. (2008) Do multinationals really prefer to enter culturally distant countries through greenfields rather than through acquisitions? The role of parent experience and subsidiary autonomy, Journal of International Business Studies, Vol 39, No 3, p 472-490 Tong, T. W. , Alessandri, T. M. , Reur, J. and Chintakananda, A. (2008) How much does country matter? An analysis of firms’ growth options, Journal of International Business Studies, Vol 39, No 3, p 387-405 UNCTAD (2008) World Investment Report 2008, Transnational Corporations and the Infrastructure Challenge, Chapter 1 Global Trends, p 7-9 27 TABLE 1: REGIONAL DIVISIONS OF 117 ECONOMIES No. 1. 2. 3. 4. 5. 6. Regional Divisions North Africa West Africa Central Africa East Africa Southern Africa South America No. 7. 8. 9. 10. 11. 12. Regional Divisions Central America Middle East (West Asia) South Asia South-East Asia Southeast Europe CIS (Transition economies) 8 TABLE 2: EXPLANATION OF VARIABLES Variables for the Cluster Analysis Value Based or Volume Explanation of Variable Distinction A – Country level attractiveness variables 1 – M deals per country as a % of total number of country deals 2 – MA sales as % of GDP avg 2004-2006 volume based Examines the volume of per country M deals relative to the total number of FDI deals entering that country. The int ra- country proportion of M to FDI in terms of volume. Examines the value of per country M deals relative to the GDP of the same country. An intra-country measure of the proportion of M to GDP in terms of value. Examines the volume of per country M deals relative to the M deal volume of countries in the region. An inter-country but intra-regional measure. Examines the volume of per country M deals relative to the volume of total FDI deals (greenfield & M) of countries in the region. An inter-country but intraregional measure. Examines the value in $'s of per country M sales relative to the value of all FDI inflows into the region showing the country's share or proportion of M sales value in the region. Examines which country in a region attracts the most FDI deals in total (greenfield & M) to show regional FDI leader. value based in US $'s B – Regional level attractiveness variables 1 – M deals per country as a % of total regional M's 2004-2006 2 – no of per country MA deals as a % of all regional deals 2004-2006 3 – M sales per country as a % of total regional FDI inflow ( US$ millions) 20042006 no of deals per country as % of total regional deals 20042006 volume volume value in US $'s C – Overall FDI attractiveness variable volume 29 TABLE 3: PRINCIPAL COMPONENT VARIABLES Level attraction Country level of Combined Country Level And Regional Level Variables In Order To Create Component Attractiveness Values At The Country Level And At The Regional Level M sales per country as a % of FDI inward stock per country (US $millions) 2004 -2006 MA sales as % of GDP average 2004-2006 M deals per country as a % of total regional M's 2004-2006 no of per country MA deals as a % of all regional deals 2004-2006 M sales per country as a % of total regional FDI inflow ( US$ millions) 20042006 Regional level 30 Table 1: profiles of cluster means for a 4 cluster solution 31 Table 5: CLUSTER COUNTRY MEMBERS Cluster 1 Belize Brunei Daruss Burkina Faso Congo Guatemala Kyrgyzstan Libya Macedonia, Mozambique Nicaragua Paraguay Qatar Rwanda Swaziland Zimbabwe Cluster 2 Brazil India Indonesia Malaysia Mexico Romania Russian Fed South Africa Thailand Turkey UAE Cluster 4 Armenia Bulgaria Colombia Croatia Ghana Mauritius Panama Ukraine Cluster 3 Albania Algeria Angola Argentina Azerbaijan Bahrain Bangladesh Belarus Bolivia Bosnia & Herz Botswana Cambodia Cameroon Chile Congo, DRC Costa Rica Cote d' Ivoire Ecuador Egypt El Salvador Equatorial Guinea Eritrea Cluster 3 Ethiopia Gabon Georgia Guinea Guyana Honduras Iran Iraq Jordan Kazakhstan Kenya Kuwait Lao PDR Lebanon Madagascar Mali Mauritania Moldova Morocco Myanmar Namibia Nepal Cluster 3 Nigeria Oman Pakistan Peru Philippines Saudi Arabia Senegal Sierra Leone Sri Lanka Sudan Suriname Syria Tajikistan Tunisia Turkmenistan Uganda Tanzania Uruguay Uzbekistan Venezuela Viet Nam Yemen, Zambia 32 Table 6: Results of PC Analysis Level Of Attraction Country level Regional level Combined Country Level And Regional Level Variables In Order To Create Component Attractiveness Values At The Country Level And At The Regional Level. M sales per country as a % of FDI inward stock per country (US $millions) 2004 -2006 MA sales as % of GDP average 2004-2006 M deals per country as a % of total regional M's 20042006 no of per country MA deals as a % of all regional deals 20042006 M sales per country as a % of total regional FDI inflow ( US$ millions) 2004-2006 Expl. Var Regional Attractiveness Factor 1 Intra-Country Attractiveness Factor 2 %Variance Explained Components by -0. 015066 0. 857492 0. 085347 0. 847898 0. 936657 0. 036875 0. 962411 0. 013174 0. 864350 2. 558174 0. 051764 1. 458437 80. 3 % 33 Table7: REGIONAL LEVEL ATTRACTIVENESS- most attractive ranking Regional Level M Attractiveness Quartile 4 -Most Attractive Rank Regional Attractiveness M Attractiveness Value Above Average India South Africa Brazil Russian Federation Turkey Mexico Indonesia Malaysia Thailand Romania Argentina UAE Egypt Bulgaria Ukraine Chile Colombia Peru Pakistan Philippines 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 4. 47456 3. 59947 3. 11423 2. 70295 2. 18032 2. 10503 1. 96844 1. 83932 1. 50218 1. 00295 0. 95504 0. 71507 0. 58127 0. 49219 0. 48130 0. 41931 0. 40345 0. 13893 0. 12567 0. 10631 34 Table 8: Regional level attractiveness- least attractive east attractive Regional Level M Attractiveness Quartile 1Least Attractive Rank Regional M Attractiveness Attractiveness Value Below Average Regional Level M Attractiveness Quartile 1Least Attractive2 Rank Regional M Attractiveness 2 Attractiveness Value Below Average 2 Burkina Faso Yemen Albania Tajikistan Belize Turkmenistan Lao PDR Gabon Sri Lanka Botswana Guinea Kuwait Cote d' Ivoire Kyrgyzst an Iran Swaziland Sierra Leone Mali Libyan Arab Jamahiriya Mauritania Armenia Algeria Bolivia Cambodia Moldova, Republic of Belarus Macedonia, TFYR Lebanon Nicaragua Congo, Republic of Angola Congo Democratic 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 -0. 81391 -0. 62301 -0. 59695 -0. 58134 -0. 56980 -0. 56586 -0. 55855 -0. 54206 -0. 53908 -0. 53824 -0. 53655 -0. 53403 -0. 53331 -0. 52797 -0. 52388 -0. 51088 -0. 51028 -0. 50993 -0. 50966 -0. 50856 -0. 50707 -0. 50669 -0. 50637 -0. 50389 -0. 50075 -0. 49762 -0. 49691 -0. 49085 -0. 48372 -0. 48345 -0. 48291 -0. 48068 Costa Rica El Salvador Rwanda Madagascar Syrian Republic Bangladesh Uzbekistan Georgia Iraq Viet Nam Bosnia Herzegovina Tanzania Kenya Mozambique Namibia Oman Bahrain Saudi Arabia Zimbabwe Zambia Ecuador Uganda Panama Sudan Venezuela Kazakhstan Mauritius Ghana Tunisia Nigeria Jordan Croatia and Arab 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 -0. 46264 -0. 46137 -0. 46100 -0. 45911 -0. 45391 -0. 45035 -0. 44220 -0. 42553 -0. 42284 -0. 41269 -0. 41006 -0. 40278 -0. 37712 -0. 37626 -0. 36841 -0. 35828 -0. 35541 -0. 35395 -0. 35140 -0. 34751 -0. 31359 -0. 31281 -0. 31113 -0. 30115 -0. 25848 -0. 22807 -0. 21374 -0. 21133 -0. 17359 -0. 13017 -0. 12656 -0. 09001 35 Uruguay Guatemala 33 34 -0. 46757 -0. 6471 Morocco 67 -0. 07754 Table 9: Country level M attractiveness- most attractive countries Country Level M Attractiveness Quartile 4 Most Attractive Rank Attractiveness Value Above Average Mauritius Burkina Faso Bulgaria Panama Ghana Kyrgyzstan Armenia Croatia Ukraine Colombia Yemen Romania Turkey Sudan Tunisia Uzbekistan Mauritania Peru Ecuador Indonesia Lao PDR South A frica Macedonia Pakistan Belize Kuwait 87 86 85 84 83 82 81 80 79 78 77 76 75 74 73 72 71 70 69 68 67 66 65 64 63 62 5. 44211 4. 67217 2. 45823 2. 04796 1. 89195 1. 06603 0. 90303 0. 87151 0. 82457 0. 81623 0. 78430 0. 77845 0. 71227 0. 65421 0. 2570 0. 36499 0. 32190 0. 26612 0. 24742 0. 23859 0. 20139 0. 10116 0. 04362 0. 04359 0. 03089 0. 01879 36 Table 10: Country level attractiveness- least attractive Country level M attractive Q1- least attractive UA E Tanzania Saudi Arabia Angola Libya Belarus Sri Lanka Algeria Guinea Iraq Iran Sierra Leone Mali Zimbabwe Cote d' Ivoire Viet Nam Mozambique Bahrain Madagascar Oman Tajikistan Cambodia Congo Turkmenistan Mexico Zambia Lebanon Venezuela Congo Swaziland Rank Attractiveness value below average -0. 69652 -0. 68043 -0. 68009 -0. 67564 -0. 67419 -0. 66567 -0. 66410 -0. 66351 -0. 66076 -0. 66060 -0. 64409 -0. 3906 -0. 62707 -0. 62270 -0. 62038 -0. 61471 -0. 61461 -0. 59631 -0. 58028 -0. 57740 -0. 57596 -0. 56811 -0. 56112 -0. 55555 -0. 55058 -0. 54445 -0. 53035 -0. 51967 -0. 50304 -0. 48027 Country level M attractive Q1- least attractive2 Rwanda Russian Fed Guatemala Philippines Gabon Brazil Bangladesh Uruguay Costa Rica Botswana India Moldova Bolivia Egypt Nigeria Argentina Thailand Namibia Albania Bosnia & Herzeg Malaysia Kazakhstan Kenya Georgia Morocco Chile Uganda Nicaragua Jordan Syria El Salvador Rank2 Attractiveness value below average2 -0. 46953 -0. 46579 -0. 46387 -0. 45862 -0. 43042 -0. 40607 -0. 39852 -0. 8454 -0. 38399 -0. 33595 -0. 31087 -0. 30362 -0. 28460 -0. 28442 -0. 28428 -0. 25341 -0. 23769 -0. 22207 -0. 22091 -0. 22082 -0. 21129 -0. 18592 -0. 18396 -0. 16633 -0. 14784 -0. 09800 -0. 06308 -0. 03914 -0. 03806 -0. 01932 -0. 00700 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 37 Figure 1: M attractiveness axes -regional/country 38 Figure 2: REGIONAL LEVEL ATTRACTIVENESS C OUNTRIES PLOTTED ON ‘Y' AXIS; COUNTRY LEVEL M ATTRACTIVE COUNTRIES PLOTTED ON ‘X’ AXIS. 39 APPENDIX 1-EXCLUDED DATA In addition to the developed economy data, the following economies were also excluded from the study: Caribbean and Oceania economies (many of these island economies were very small, atypical and had missing data); China (over 48 % of the total number of deals for South and SouthEast Asian region were concluded in China in order to avoid skewing the findings for the rest of the region, Chinese data was excluded); Hong Kong, Singapore, Taiwan and Korea (these economies exhibit higher levels of development and sophistication than the rest of the sample and exhibit FDI levels higher than the typical developing countries of the sample group of this study); St Helena, Guinea Bissau, Mayotte, Reunion, Falkland Islands, French Guiana, Palestinian Territory, Afghanistan, Bhutan, Maldives and Timor Leste (these

The Qualities of a Superior Special Educator

Special education is a field that will continue to need qualified candidates for at least the next decade. What makes the difference between an adequate and a great special educator?   Special Educators Are Highly Intelligent People often make the mistake of thinking that because children with disabilities are often cognitively disabled, they dont need smart teachers. Incorrect. The era of babysitting is over. The demands on special educators intellectually are greater than on those who teach a single subject. Special educators need to: Know the general education well enough to adapt it to the ability of their students. In situations where they are co-teaching in inclusive settings, they need to understand how to make curricular information and skills (as in math and reading) accessible to their students with disabilities.Assess students both formally and informally, understanding their strengths as well as their needs. You also assess and understand your students strengths and weaknesses in terms of learning style: do they learn visually or auditorily? Do they need to move (kinetics) or are they easily distracted?Keep an open mind. Part of intelligence is natural curiosity. Great special educators always have their eyes open for new data-driven strategies, materials, and resources they can use to help their students succeed. This does not mean that special educators may not be disabled themselves: a person with dyslexia who has successfully completed the required college program for special education understand not only what their students need to learn, but have also built a strong repertoire of strategies to overcome the problems they have with text, or math, or long term memory. Special Educators Like Children You need to know if you really like children if you are going to teach special education. Seems like that should be assumed, but dont. There are people who thought they would like to teach and then found out that they did not like the messiness of children. You especially need to like boys, since boys represent 80 percent of all students with autism and more than half of children with other disabilities. Children often are dirty, they may smell bad at times, and they are not all cute. Be sure you like children in reality and not just in the abstract. Special Educators Are Anthropologists Temple Grandin, well-known for being both autistic and an articulate interpreter of autism (Thinking in Pictures, 2006) described her dealings with the typical world as being An Anthropologist on Mars. Its also an apt description of a great teacher of children, especially children with an Autism Spectrum Disorder. An anthropologist studies the culture and communications of specific cultural groups. A great special educator also observes his or her students closely to understand them, both in order to address their needs and to use their strengths as well as their needs to design instruction. An anthropologist does not impose his or her prejudices on the subjects or the society he or she is studying. The same is true of a great special educator. A great special educator pays attention to what motivates his or her students and doesnt judge them when they dont conform to their expectations. Like children to be polite? Assume they have never been taught, rather than they are being rude. Children with disabilities have people judging them all day long. A superior special educator withholds judgment. Special Educators Create Safe Places. If you have a self-contained classroom or a resource room, you need to be sure you create a place where calm and order reign. It is not a matter of being loud enough to get their attention. It is actually counterproductive for most children with disabilities, especially students on the autism spectrum. Instead, special educators need to: Establish Routines: Creating structured routines is invaluable to having a quiet, orderly classroom. Routines dont restrict students, they create a framework that helps students succeed.Create Positive Behavior Support: A great teacher thinks ahead, and by putting positive behavior support in place, avoids all of the negatives that come with a reactive approach to behavior management. Special Educators Manage Themselves If you have a temper, like to have things your way, or otherwise take care of number one first, you are probably not a good candidate for teaching, let alone teaching special education children. You can be well paid and enjoy what you do in special education, but nobody promised you a rose garden. Keeping your cool in the face of behavioral challenges or difficult parents is critical for your success. Getting along with and supervising a classroom aide also requires that you know what you need to succeed. It doesnt mean that you a pushover, it means that you can separate what is really important and what is negotiable. Other Attributes of a Successful Special Educator Attention to Detail: You will need to collect data, keep other records, and write a lot of reports. The ability to attend to those details while maintaining instruction is a big challenge.An Ability to Keep Deadlines: Keeping to deadlines is critical to avoiding due process: the legal assumption you know what youre talking about evaporates when you fail to follow Federal Law, and failure to meet timelines is one place too many special educators fail. Run to the Nearest Exit If you are fortunate enough to have good self-awareness, and you find that some of the things above dont match your strengths, you need to pursue something that will better match your skillset and your desires. If you find that you have these strengths, we hope you are enrolled in a special education program. We need you. We need intelligent, responsive and empathetic teachers to help students with disabilities succeed, and help all of us feel proud that we have chosen to serve children with special needs.

Jewish, Christian, And Islamic Stance On Abortion - 969 Words

Jewish, Christian, and Islamic Stance on Abortion Certain religions frown upon various different acts, such as: premarital sex, homosexual relationships, and lying. But one event in which most religions strictly disapprove of is the act of abortion. The three major world religions, Judaism, Christianity, and Islam all see the death of an unborn child as a treacherous act that should never be committed. Abortion is a topic that is â€Å"not to be spoken of† due to the amount of judgements on it, but in today’s modern era socialist see it as a matter of choice, while religions such as Judaism, Christianity, and Islam, still stick to their traditions and customary view. And although they all have some ­what the same views on unborn lives, each of them have different reasonings behind it. For a start, Judaism forbids the taking of an unborn, innocent life (â€Å"Religious Views†). During the Biblical Period the Exodus dictated: if men strive together, and hurt a woman with child, so that her fruit depart, and yet no harm follow – he shall be surely fined, according as the woman s husband shall lay upon him; and he shall pay as the judges determine. But if any harm follow – then thou shalt give life for life (Ex. 21:22–23) (Issues in Jewish Ethics: Abortion†). In other words, if one takes the life of an unborn child, one must pay the price with death (give life for life). But, as time passed by and the Talmudic times began, abortion was not considered unethical unless the fetus wasShow MoreRelatedAbortion Is Not The Murder Of An Infant1507 Words   |  7 Pageshas a different perspective on abortion. The first written works of Christianity states â€Å"You shall not kill the embryo by abortion and shall not cause the newborn to peris h.† In the early Christianity, abortion was prohibited. 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The Sufficiency Of Popular Theories Like Mao s, An...

In challenging the sufficiency of popular theories like Mao’s, an alternative theory is proposed by the team. In their discussion, they announce â€Å"†¦we have growing evidence that footbinding was a form of labor control to boost the contribution of young girls to handcraft production†¦We think changes in the larger political economy that threw spinners and other handcraft producers out of work explain the cause of footbinding’s demise† (1062, 1063). This novel perspective is the basis for redefining women with bound feet as subjects with industrial capabilities, as opposed to static playthings. Understanding these implications solidifies the multidimensionality of bound feet and high heels. From here, thinking about the effects of the two in numerous contextual relationships begins. Broadening analysis to incorporate both marriage and labor reveals that universal patterns of the patriarchy exist even in distinct environments. Karen A. Callaghan obser ves that â€Å"The gender hierarchy is sustained by beauty norms that define women’s power, self-assertion and worth in terms that reify male dominance† (Callaghan ix). In this sense, boundaries which weaken a woman’s power and self-assertion are examples of universal patterns which coincide with the consolidation of patriarchy. Considering our hierarchal framework, such limitations are understood to produce the effect of relegating women to power niches beneath that of men in the hierarchal chain. Defining how bound feet and high heelsShow MoreRelatedExploring Corporate Strategy - Case164366 Words   |  658 Pageswhich have been chosen to enlarge speciï ¬ c issues in the text and/or provide practical examples of how business and public sector organisations are managing strategic issues. The case studies which follow allow the reader to extend this linking of theory and practice further by analysing the strategic issues of speciï ¬ c organisations in much greater depth – and often providing ‘solutions’ to some of the problems or difï ¬ culties identiï ¬ ed in the case. There are also over 33 classic cases on the Companion

The Ethical dilemma Free Essays

The ethical dilemma presented In the case study examines If you would allow an Innocent person to be charged with offense he did not commit. You have been asked to keep quiet by a friend, someone you have known for years. Although you are positive that your friends did not commit the act, you are sure there is an innocent person wrongfully accused. We will write a custom essay sample on The Ethical dilemma or any similar topic only for you Order Now I believe that it is my duty to be honest and tell the truth about the situation. According to Morehouse (2013) ethics is concerned with the kind of values and morals an individual or a society finds desirable or appropriate. My motives for my decision are strictly based on my personal values and morals and not the relationship. Justification and reasoning Each relationship that we have whether personal or professional creates a human action. Whether these actions are directly or indirectly, they form some sort of obligation. The case study presented identified that I am friends of someone within my command who has asked me to withhold information while the relationship with the accused is displeasing. Whether it is a moral obligation or the duties and right to aspect the rights of people, the obligation in the relationship are affected by our conduct. If I decided to keep the information to myself, I may be seen as loyal. However, my obligation would be respect the innocent when making a moral judgment. The values that I possess have a bearing to the relationships. These values are a moral obligation for the truth. The relationship has no relevance for my moral action. Ethical frameworks Addressing ethical issues from an awareness of the theoretical framework may increase a leader’s moral development (Savannah et al. 1981; Goldberg, 1969). In order to comprehend the reason behind ethical motives, you must understand the ethical framework that guides these behaviors. The two ethical theories that deal with the behaviors are Teleological, which represent consequences and Deontological with represents duty. Teleological deals with a person’s conduct producing desirable consequences. Deontological focuses on the actions of the leader and his obligations to do the right thing. Teleological or deontological frameworks do not take Into account the rights of individuals. How to cite The Ethical dilemma, Papers

Regulatory Compliance Government Agencies †MyAssignmenthelp.com

Question: Discuss about the Regulatory Compliance for Government Agencies. Answer: Introduction: Nowadays, emails are quite critical for the company, hence it is utmost important for the company and its stakeholder to learn and understand how the emails can expose them and make them vulnerable and thus find out solutions for the same. If the company fails to take any concrete actions, the company will have to face the risks of loss in production, loss of data and other stringent damages. This research study is conducted to study the threats and impacts caused by the email communication, and how to mitigate these threats by adopting strategies, processes, capabilities and technologies best in the industry. Emails have become highly essential and critical for business for the company, but organizations cannot be left exposed. Emails are the backbone and the main correspondence link for success, but companies are ignorant about the severe damage and threat arises from their usage on daily basis, hence they have not taken any stern steps to mitigate the threats. But, now organizatio ns just cannot wait and watch and let others hold the reins of their business. They must seriously address the issues. Emails pose threat to both the sides namely inbound and outbound side, hence the need of the hours it to make a strategy that can address both sides. Companies that are addressing the email threat issues and taking concrete actions can see the fruits of enhanced productivity, reduced costs and increased revenues. The unwanted emails and the email threats are ever increasing in the present environment. In such times, inefficient email management can turn the software in to zombies. Tools like email archiving, email encryption, email filtering, email threat analysis must be used to prevent the company from loosing data. It is recommended that the company needs to install and establish security strategies of emails that can protect the inbound and outbound vulnerabilities on daily basis. The company should monitor, assess and address the email vulnerabilities. An effective email archiving system will eliminate the risks of the litigation as the company requires to produce the email documents for the civil suits. Implementation of the email archiving will allow quick retainment of the data which is stored in the system, meeting the legal needs. Without an effective email archiving in proper place, it is impossible to produce the requested emails as per the regulations of the government, which needs e-documents to be easily accessed and produced quickly. As per the government laws company needs to retain the essential documents for a minimum time period of 5 years and so email archiving has turned out to be an essential as per current demand. Government Regulations and Best Established Practices Security Exchange Act: The act dictates that the records need to be kept for any security exchanges. The records which certainly covers the emails have to be kept for a minimum of 6 years and the security exchange commission has the right to impose the fines if the records cannot be produced on time. The Commodity Futures Trading Commission: This is an independent agency that mainly ensures that all the merchants of the future commission keep the complete records of the transactions. Companies are required to keep the records for at least 5 years and they should be able to produce them on the request within the time frame Sarbanes Oxley Act: This law was adopted by the Australian government in 2004. The act has been designed to protect the investors, shareholders and the public from the errors of accounting and fraud practices in the company(Bradbury, 2015). Such act means that the accountants should keep all the audit data and review papers for a minimum of 5 years after audit conduction. Email archiving would be considered as a critical; part of the record keeping from the audits and review. So it is important to bear the rule in mind(Authority3, 2013). Archives Act 1983: Emails which company create and receive are to be managed as per Archive act 1983. As per the act in case the below questions are answered in yes then the company has to save the email as per regulations(NAA, 2017): Did company receive or send this email within the course of time? Does it relate to the current project? Does the email offer approval for any action? Does the email offer any advice, record or direction? The email which probably does not need to be saved are: Messages received only for information Trivial information Copies of the informations Copies of the documents General notices sent to staff members Personal and social messages One can routinely delete the emails which are having little or no values of the businesses as long as they are allowed by the normal administrative practices. NAP is mainly a provision of the Archives act which allows lower value information to be deleted on regular basis as part of the business practices. The agency is required to follow a policy on how it should be implemented(Gwava, 2017). As per the Australian Government digital transition policies, one needs to manage the digital information, including the emails, in digital formats. This means that one should print and store the emails in the paper files. one should store the emails in the system which can be managed effectively for as long as it is required(Gwava, 2014). Defining Policies Early: Establishing the retention and deletion policies at the starting will keep the storages from growing to insurmountable levels. A policy which states the motives for the standards and how the end users needs to follow the policy is quite satisfactory in the courts offered employees can easily prove to the company abides by them Enforcing the Policies: Once the policy has been written, it should be enforced with the automated solutions so as to eliminate the factor of human Eliminating the PSTs: The PST files are mainly developed by the end users for storing the emails and keeping them accessible. However, such files are not the main storage locations for the end users. they expose the company towards legal risks and makes it difficult for the employees to locate the emails when needed. With the email archiving. The archive becomes the central data repository wherein the user can access the emails in an easy way. Backing Up the Tapes are not archives: backing up the tapes need not be utilized as the central repository for the emails. They mainly capture the information only the viewpoint of the backups that will not include the items which the end users deleted(Mangus, 2016) Stubbing: This offers immediate storage reductions of the email servers, often mainly up to 80 percent- mainly reducing the need for the mailbox and improving the performance of the email servers by just lowering the capacities with the impact of minimum end user for the company (Vouga, 2014). An overview of the project impact on the present security of Aztec Aztec is currently processing all customer and employee inquiries manually. There is a need for innovating and upgrading the current database management system for the purpose of assisting the members of the staff in their day to day working and also allowing them to effectively and efficiently responding to the inquiries. By creating email archive across the length and breadth of the organization for compliance purposes will definitely help to do such tasks. The idea is to implement and create email archive across the organization for compliance purposes which will assist the members of the staff to make the work easy and going hassle free. Information technology offers varied sources of significant investment. For the purpose of making sure that the scarce resources are being used in the best possible manner and the benefits are being realized, an approach of the cases of the business is very important for the purpose of managing the priorities of the database management systems and this research will be carried out and understood in this study. Undoubtedly, investments made in the technology segment are extremely complex. One of the major issues in respect of the jurisdiction of the implementation of creating a corporate-wide email archive is that it cannot be applied in all departments unanimously as it is not considered to be very effective. But, in the current scenario the company considers the new systems of the database as the only magic wand for the prevailing issues of the company. However, it must be noted that creating email archive corporation-wide for compliance purposes will prove to be very dear and expensive. This is because quite often the implementation process is delayed either due to lack of human and other resources or some other unexpected issues. Nonetheless, irrespective of all the issues, implementation of email archive across the corporation is a safe option which the companies can adopt to mitigate the email threats. Email archive across the corporate for compliance purposes can be applied in all departments which will serve as a domain of the information technology. Simply speaking, if the company adopts this innovative and latest database management system, the company will link up with only useful information that will facilitate in the development of the company. At present this innovative feature is missing in the company because of which there is lack of transparency in the organization. This kind of unique updation and innovation in the database has been thought about to be implemented in the company as at present the company is going through various types of issues like inferior method of the data management and email management. The growing dissatisfaction of customers and every increasing complaints and lack of proper documentation are other issues that need to be addressed. The new system of creating email archive across the corporate for compliance purposes will develop new databases and resources that will provide easy accessibility and could be shared efficiently by all stakeholders of the company. For the purpose of developing a new innovative and latest database management system, the senior management and the executives of the company must be satisfied and be ready to undertake all the risks that will be associated in the transition process. It is just anticipation that the management will be convinced with all the pros and benefits of implementing the new system. Common issues that have forced the company to consider innovation include an innate desire to grow business, the need to reduce costing, obsolete systems and the inefficient business processes.(Digital Preservation, 2013) (IMR, 2014). In the light of the current organizations activities, the organization is in need to invest in the technology which enables them to securely store, manage and retrieve the data of the business. Crucially, they are not in need to utilize the technology to fulfill the regulatory and fiduciary obligations in the way they mainly manage the business and the data of the customer, they need to be able to prove that they are mainly doing so(Mail Store, 2013). The can achieve such thins by implementing the email and the file archiving solution. As the regulatory needs for data retention grow, the risks and the costs related with the nonexistent and inadequate email achieving are also increasing(Fusemail, 2015). Enhanced liabilities come in the form of the fines, litigation, and the reputational damages. This effective archiving is the main key. Standard email archiving will mainly capture and copy the emails, attachments, and data to a separate archiving server where it is mainly indexed. Suc h kind of indexing and storing makes the content easily reachable and accessible. Security is the main priority for the company and processes like the legal holds and data exports need to be possible in the effective and legal way(Posey, 2013). Archiving solution will make it easy to search through the stored email's data to offer such content. It also offers a way of proving the messages dusty and received(Spurzem, 2008). It is immutable records of the email data, even if the message has been deleted form the mail box The organization needs to take steps to protect the data throughout the lifecycle from the view of creation to sending and sharing(Intradyn, 2012). A holistic approach towards information security offers the greater security and education value than the individual fixes for certain aspects of the creation of the data and the process of sharing. varied solutions can be utilized for the varied aspects of the data security. Thus, the archive needs to mainly integrate into the rest of the information security established setup. real-time can comprise of, but not limited to, classification, encryption of the email and any tailored infrastructure which is implemented for the data security purposes(GFI, 2015). Indexing and storage of the data for the later retrieval is a missed opportunity as company does not leverage the data, making the data work for them Intelligent forensics and analytics can mainly allow the business to determine the additional values in the data which are storing for the purpose of compliance(GFI, 2012). Higher qualities e-discovery reporting can mainly demonstrate the trends in the flow of email, revealing the habits of the user and the effectiveness of the information security policies (1and1, 2016). Threats, Vulnerabilities, Consequences, and recommendations Email compliance is a herculean job as it requires email archiving in a secured way. The company also has to ensure that the email is not abused before being archived as instances of noncompliance might occur because of the staff abuse of the company email. For ensuring the company will need to have higher quality email archive which is fully compliant. The first thing the company needs is to take care of the staff and address all the threats that are posed to the compliance and assets. This cannot be denied that there are multiple threats within the company. Data of communication which is regularly sent and received through the email comprises of details of the customer. intellectual property, information of accounts and much more. There are two main kinds of insider threats to data(Tolson, 2016): An evil-intentioned Insider: This is a person that mainly acts with vengefully intent. This person may have access of all the sensitive and valuable information and data, for instance, the administrator of sales or any other executive or an IT member can have this privilege and he can easily access it and misuse it.(Jatheon, 2017) Non Malicious Insider: These are persons who unintentionally violate the protection of data and policy of compliance. Clearly, such kind of insiders mainly outnumbers the group as there are many who violate security policies without any malicious intentions. For instance, they might email the confidential documents to the personal address for doing work from home. In such cases, the sensitive data of the company is at high risk(Reid, Fraser-King, David, 2007). Unwanted and irrelevant stuff come in volumes and this poses great threat. The statistical data by experts state that 90% of the emails are spam mails. The spam emails infect the recipients computer with viruses like spyware, malware, Trojan etc and destroy or corrupt the software of the person or they help in acquiring the sensitive data Spam can also lead towards the software being installed on the machine of the sure which turns that machine into the zombie(Ipexpo Europe, 2015). Physical Attacks: The email purporting from the trusted source, developed a garner credential from the prey- which has gone from the blatant towards subtle. Bad Stuff Going Out: although, many organizations are adopting methods and software that will stop unwanted, junk or spam emails. But still there is less focus on the dangers and vulnerabilities that are presented while sending the emails. Devices can get infected from multiple sources besides emails from example from malicious sites or from infected files which arrive through unsecured sites. The infected mail or the device can infect all data in the system and corrupt the total system bringing the prospects of the business to a standstill.(GRC, 2015). The Security Risks: The problem with the email archive is that they have been designed and deployed utilizing the old hardware and software, for instance, Microsoft windows server 2003 and the windows SQL server. Both the products are the mainstay of the email archiving solutions. At present there are legacy email archives which are running on the end of the life products and these shows a critical risk of security towards the organization. many of the risks of security stem from the fact which fixes the known vulnerabilities in the aging and soon to be the end of life products were mainly introduced. There are many reasons behind this, but many times the bottom line guidance from the Microsoft was mainly to migrate away from the platforms. The legal Risk: Frivolous suits of law are the common issues to all the companies. In particular, the lawsuits from the ex-employees of the company. The main source of evidence for such suits is the email. Email archive can potentially contain years of email. The main point is that the email archive will accumulate the vast amount of email. It is quite prudent to keep a close eye on the retention of the emails and dispose of the email which does not need to be retained. Email which is kept past the useful life holds the legal risks towards the organization The Support Risk: It is the fact of the business that the companies are acquired and even sold. For it is no such surprise that the majority of the email archive products have multiple owners(Chan, Grzymala-Busse, Ziarko, 2008). Recommendations The greatest advantage of email archiving is that it not only ensures compliances within the company but simultaneously encourages compliance within the employees ranks. An email archive is the catch of all. the tamper proofs solution that stores the single email which goes in and out of the company. Employers can utilize the secure archive for monitoring all the activities of email and determine the patterns of malicious. Both types of employee threats can be successfully neutralized if the employees know that the communications are mainly monitored. Some of the easy steps to be followed by the company for effective implementation are: Easy to Enforce policies of Retention: The policy engine should allow to create, maintain and enforce the corporate retention policy for the email. The basic policy template should be offered to get the user started- from there, the user can easily customize the solutions for enforcing the granular policies. All administration needs to perform from an easy to use, browser-based interfaces, allowing the user compliance or legal staff towards managing the processes without the help of information technology Enforcement of the policies needs to be automatic- a single click from the user interface is all which is needed for making the policy archive. Each policy change needs to be tracked in an unbelievable trail of the audit, ensuring the accurate records of the change in policy. Advanced Searched for the discovery: The email archiving will offer advanced search features which meet the most stringent discovery and the review needs. Using web-based interfaces, the legal and IT team can mainly conduct some full-text searches across the header of the message, body messages, and content of 250 types of attachments. The results of the searches can be saved in the folders wherein the duplicate messages are removed easily. Supervisions for the Compliance: The email archiving makes it very easy to even meet the stringent compliance's demand by archiving the email as per, for instance, SEC complaint stronger policy for email. Every access towards searching the real-time email retrievals makes the audit of the compliance process painless. The features of the supervision review allow staff to review the email sent by the employees. Messages which are selected for the review are placed in the queue for the review by the users who are authorize(Symantec, 2015). Insights with the help of easy to access reports: The services of email archive will offer numerous reports to help sure properly assess the patterns of email and the behaviors. The users which are authorized can easily get the immediate access towards the detailed reports which include: Storage growths and email usages over the time(UCSF, 2017) Tighter Integration with the exchange: The email archiving will offer tight integration with the existing infrastructure of messages. Taking such advantage of the journaling of the Microsoft exchange, the appliance logs in the exchanges and retrieves the copies of the email at configurable intervals before the learning of the messages from the mail boxes(Aberdeen Group, 2007). On-Demand Access: The solution is the only one which offers search performances guarantee, ensuring the reliable access towards the archived data. Unlike the in housing solutions which can experience the serious research degradation and needs the ongoing upgrades of the hardware as the archive grows, service providers access to servers, on demand(Seitel Systems, 2010). Risks Actions Capabilities Enablers Decreasing productivity losses which are associated with the unwanted emails Protecting users from the unwanted emails and inbounding email vulnerabilities Ability of determining and responding to the threats in timely manner Integration of emails security Email encryption Data loss prevention Email filtering To address data security risks from point of view of how data will be used, who will access the data and where will the data be used. The usage of the cloud base services and remote working patterns has enhanced the reliance on the email as a communication method(Fox, 2013). As email archive continues to function as a store of the sensitive data, it is mainly subjected to the litigation as well as being susceptible towards data breaches. Without having the comprehensive securities in the places, data retention systems can seem opposed to the privacy of the user. there are certainly risks around the archiving of the sensitive email data in the repository and then offering user access, however, there are also ways for mitigating the associated risks, comprising of the mechanisms for protecting against the insider threats. Advanced archiving solutions can resolve the modern compliance challenges and include comprehensive securities and restricted functionality access(Intradyn, 2016). User sign-in needs to be customizable and offering additional measures like the multi factor authentication, as well as the restriction on the sign-in towards certain domains or devices. It is quite likely that not everybody should have the main access towards the archive. There needs to be flexible permissions engine which will enable to administer to set the user permission at the granular level, offering the users with just the tools and the data they should have access towards, and nothing much more(Dcsny, 2016). A separate authentication platform needs to give the options of the restricting access towards the network administrator: customization is the main key for every individuals need of security. When it comes towards the performing searches across the data of the organization, this is mainly of course carefully constrained(Cybersec, 2017). There need to be mandatory approval stages before the outputs of the investigations as they will be displayed to the user, where the oth er high-level users may grant or deny the access that is based on the search parameters of users. Such kind of system goes some way to reducing the threats and also demonstrating the accountabilities. related to this need for the accountability, a comprehensive and detailed log will be needed to offer a high level of assurance. Often even if the investigation in the email data has been rejected, knowing that someone mainly attempts for is very important. being able to easily filter and search the real-time information on the actions of users, dates and the times of the search conducted and the email viewed, as well as the specific user involvement, means that the administrator can mainly evaluate and amend the policies and proves the adherence towards the legislation of the compliance(Water Ford Technologies, 2015). There are many other risks associated with the email archiving: are the users correctly implementing the email encryption? are the attachments properly classified? at the specific users and the teams who have mainly failed to heed the best practices when sharing the information? The more advanced archiving solutions also enable the generations of the triggers and the reports which can automatically notify the administrators. because of the scale of email communication in the company, email archive can be a big and unwieldy, and organizing it can develop issues for compliance and governance(The Email Laundry, 2014). By being able to forensically investigating the email activities, including the encrypted contents, administrators can mainly gain the deep understanding of how the organization is employing the email as the method of the communication and as a store of the knowledge. Consequently, they can even spot out the individuals or the recurrent issues and can fix them in a very in telligent way(Pham, 2016). it also offers the other essential compliance takes of the verification of the persistence of the suitable security environment. An archiving solution can be the main difference in between the effective protection of the data and the huge financial penalties. Often, the reputational damage thereafter is considered to be more expensive. The best solution for archiving also goes further and not only helps the organization comply with the current regulations but developing additional values in the way which enables the intelligent data analytics of email, improvements towards employee productivity and the seamless integration in existing infrastructure of email security. Data retention regulations have the definite advantages for the end users and the customers, but the same time, the right archiving product can mainly turn the regulations obligation into positive changes for the organizations which are planning to implement it(Get Cloud Services, 2014). References 1and1. (2016). Email archiving: what all companies should know. Retrieved from 1and1.com: https://www.1and1.com/digitalguide/e-mail/technical-matters/email-archiving-laws-and-practices-you-should-know/ Aberdeen Group. (2007). The Ins and Outs of Email Vulnerability. Aberdeen Group. Authority3. (2013). Regulations, Laws Compliance. Retrieved from authority3: https://www.authority3.com/resources/regulation-and-laws/ Bradbury, D. (2015). Archiving Email Under Us Law: What Is Required. Retrieved from solarwindsmsp: https://www.solarwindsmsp.com/blog/archiving-email-under-us-law-what-is-required Chan, C.-C., Grzymala-Busse, J. W., Ziarko, W. P. (2008). Rough Sets and Current Trends in Computing: 6th International Conference, RSCTC 2008 Akron, OH, USA, October 23 - 25, 2008 Proceedings. Springer. Cybersec. (2017). Email Security. Retrieved from Cybersec.org: https://cybersec.org/cyber-security-services/vulnerability-assessment/email-security Dcsny. (2016). Email Archiving for Compliance. Retrieved from Dcsny.com: https://www.dcsny.com/cloud-it-services/email-archiving/ Digital Preservation. (2013). Archiving Email. Retrieved from Digitalpreservation.gov: https://digitalpreservation.gov/personalarchiving/documents/archive_email.pdf Fox, T. (2013). What Are the Essential Elements of a Corporate Compliance Program? Retrieved from lexisnexis: https://www.lexisnexis.com/legalnewsroom/corporate/b/fcpa-compliance/archive/2013/05/23/what-are-the-essential-elements-of-a-corporate-compliance-program.aspx Fusemail. (2015). Email Archiving . Fusemail. Get Cloud Services. (2014). Email Archiving Solution. Retrieved from Getcloudservices.com: https://www.getcloudservices.com/faqs/email-archiving-solutions/ GFI. (2012). Why organizations need to archive email. GFI. GFI. (2015). Email archiving in the United States. GFI. GRC. (2015). Compliant eMail Archiving. GRC. Gwava. (2014). Regulatory Compliance forAustralian Government Agencies. Micro Focus. Gwava. (2017). What Government Agencies Need to Know About Archiving Electronic Communication. Retrieved from Gwava.com: https://www.gwava.com/government-email-archiving IMR. (2014). The Impact of Regulations on Email Archiving Requirements. IMR. Intradyn. (2012). FRCP and Email Archiving: The Impact to Your Business. Retrieved from Intradyn.com: https://www.intradyn.com/frcp-and-email-archiving-the-impact-to-your-business/ Intradyn. (2016). Complete List of Email Retention Laws: Federal, State and Industry. Retrieved from Intradyn.com: https://www.intradyn.com/email-retention-laws/ Ipexpo Europe. (2015). Email and file archiving. Ipexpo Europe. Jatheon. (2017). Employees as Threats to Email Compliance. Retrieved from jatheon: https://jatheon.com/blog/employees-as-threats-to-email-compliance/ Mail Store. (2013). Email Archiving Brings Solid Advantages. Mail Store. Mangus, Q. (2016). Best Practices for Managing Email Archiving. Retrieved from blog.microfocus: https://blog.microfocus.com/best-practices-for-managing-email-archiving/ NAA. (2017). Managing email. Retrieved from National Archives of Australia: https://naa.gov.au/information-management/managing-information-and-records/types-information/email/index.aspx Pham, T. (2016). The Simple Guide to Managing Your Email with the Asian Efficiency Email Workflow. Retrieved from Asianefficiency.com: https://www.asianefficiency.com/email-management/simple-guide-to-managing-your-email/ Posey, B. (2013). Best Practices for Exchange Archiving. Retrieved from redmondmag: https://redmondmag.com/articles/2013/04/17/exchange-archiving.aspx Reid, R., Fraser-King, G., David, W. (2007). Data Lifecycles: Managing Data for Strategic Advantage. John Wiley Sons. Seitel Systems. (2010). Email Archiving and Mailbox Size: Best Practice Recommendations Under Microsofts Exchange Server. Retrieved from Whitepapers: https://seitelsystems.com/blog/email-archiving-and-mailbox-size-best-practices/ Spurzem, B. (2008). The Storage Impact of Email Archiving. Retrieved from Email-museum.com: https://email-museum.com/2008/06/17/the-storage-impact-of-email-archiving/ Symantec. (2014). Top Five Strategies for Getting an Email Archiving. Retrieved from Symantec.com: https://eval.symantec.com/mktginfo/enterprise/fact_sheets/b-datasheet_top_five_strategies_for_getting_an_email_archiving_project_off_the_ground_13583249.pdf Symantec. (2015). Email Retention and Archiving. Symantec. The Email Laundry. (2014). Best Practice For Email Retention. Retrieved from Theemaillaundry.com: https://www.theemaillaundry.com/wp-content/uploads/2015/07/Email_Retention_UK.pdf Tolson, B. (2016). The dangers of legacy email archives. Retrieved from betanews: https://betanews.com/2017/03/06/dangers-legacy-email/ UCSF. (2017). Email Best Practices. Retrieved from UCSF: https://it.ucsf.edu/services/email/email-best-practices Vouga, S. (2014). 5 Best Practices for Email Archiving. Retrieved from waterfordtechnologies: https://www.waterfordtechnologies.com/5-best-practices-email-archiving-2/ Water Ford Technologies. (2015). Email Archiving! Without it Your Company is at Risk. Retrieved from Waterfordtechnologies.com: https://www.waterfordtechnologies.com/email-archiving-without-company-risk/