Use Michael Porters Diamond Model of International Competitiveness to Assignment

Use Michael Porters Diamond Model of International Competitiveness to analyse the business structures and competitiveness of Brazil - Assignment Example The government has promised sufficient security system and proper infrastructure for both events. Corruption in the government hamper the economic stability in the country and in 2013 there has been nationwide protests and roadblocks because of inadequate public services and inefficiency in the political and institutional sectors. In Brazil, contracts are usually considered secure but the justice system is corrupt as it gets influenced by political and economic power. The average tariff rate in Brazil is 7.9 percent. The country is not permitted to import used clothing and cars. In many economic sectors, the foreign investment is limited by the government. However, there is a constant diversification and growth of the banking system and capital markets. There has also been a steady growth of government’s involvement in credit market with public banks accounting for 50 percent of total loans to the private sector (Brazil, 2014). This paper sets out to analyze the business struc tures and competitiveness of Brazil in the context of Michael Porter’s ‘Diamond’ Model of International Competitiveness. According to Vision 2050 which is WBCSD’s (world business council for sustainable development) project, the goal is that the world population will lead sustainable life within the resources of this planet (Vision 2050: Overview, n.d.). Based on the eagerness and abilities of the companies, Brazil strives to hold fourth position in world economy by 2050 while being able to provide good and sustainable living conditions to its population of 260 million (Vision 2050: A new agenda for business in Brazil, n.d.). Brazil’s economy is currently going through an extremely positive phase. However, its constant growth leading to social and economic developments is also having an adverse effect on the country’s environment. The rate of

Goodwill Essay Example | Topics and Well Written Essays - 500 words

Goodwill - Essay Example "Pooling of Interests" or "Purchase Accounting Method". Under the first method, the Goodwill acquired on account of merger and acquisitions use to get amortized in equal installments over a period of 40 years. Under the second method, the Goodwill was considered as a permanent asset, which would not reduce in value with the passing of years, thus enabling the companies to test the same for impairment on an annual basis in order to ensure that fair value of the Goodwill was equal to its book value. Apart from the annual review, the impairment could also be exercised in instances where it indicated that the carrying amount of Goodwill needs reassessment. The process of assessment of impairment consists of two steps. Firstly it involves comparison of the intrinsic value of a business with its carrying amount including the Goodwill. Incase the book value exceeds the fair value, then nothing needs has to be done. On the other hand, if the fair value is lesser than the book value, impairment would be carried out. Under the US GAAP, the fair value of Goodwill is calculated by allocating fair values to unit assets and liabilities. In the case of impairment of Goodwill, same should be charged to the Profit and Loss Account. The International Accounting Standards also followed the footsteps of US GAAP concept. The basic difference between the UK and the International Accounting Standards is that in the former the Companies were allowed to opt either of the two op