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General Framework For The Assessment of Open Foreign Direct Investment Proposals Available Through Networked Organizations
General Framework For The Assessment of Open Foreign Direct Investment Proposals Available Through Networked Organizations
Web Site: www.ijettcs.org Email: editor@ijettcs.org, editorijettcs@gmail.com Volume 2, Issue 3, May June 2013 ISSN 2278-6856
General framework for the assessment of open foreign direct investment proposals available through networked organizations
Dr. Maha Mahmoud Talaat Mustafa
SADAT ACADEMY FOR MANAGEMENT SCIENCES, Information systems & computer sciences department Address: Nile Corniche, Al Maadi, Cairo Governorate, Egypt
application of the foreign direct project proposal, in addition to evaluating existing projects already on a regular basis every three years to renew the authorization to exercise activity in these projects, to ensure their seriousness and commitment to workers by the criteria specified for investment process. 1.1 The importance of the research The importance of the research appears through the need to study the problems associated with foreign direct investment and to reach a solution of the problem of not being sure that the study of features and aspects of the economic environment in the host country is compatible with the ways of working in invested organizations by the parent one as a result of evolution in the use of networks (Burke, 2006) and means of communication in order to pursue business processes , as well as providing a general framework for the evaluation of projects before authorizing them to provide assurance acceptable to the host country and the invested to support the process of attracting investment until its arrival to the stage of the selection and implementation of the Investment 1.2 Research objectives 1) To determine how to make a full use of the possibilities and means of communication and networking in facilitating doing remote business to facilitate follow-up work in the host country. 2) To identify the activities associated with the interconnected organizations and how to control it. 3) To determine the logical results of the expected performance of the advances in communication technologies and the introduction of the new standards at work. 4) To develop a comprehensive framework to assess the pre-start in the application of foreign direct investment (FDI) projects 1.3 The research problem nature and phenomena The phenomena of the research problem appears in the assessing process of foreign investment for quality and quantity at the same time, which has become one of the most important issues that must be resolved, otherwise it could affect economic growth as a whole. Page 119
Keywords: Foreign direct investment, open investment, remote follow up for business
1. INTRODUCTION
The identification of an appropriate way to assess FDI is an important component of the success of those investments; and the evaluation process is an important and complex step before authorizing to accept the Volume 2, Issue 3 May June 2013
2. HYPOTHESES
1. There is no significant relationship between providing good working conditions for workers through the interconnected organizations and the success of foreign direct investment. 2. There is no significant relationship between the method of dealing under the economic and political circumstances in the host country through the interconnected organizations and the success of foreign direct investment.
3. LITERATURE REVIEW
3.1 Nature of the work under the foreign direct investment (FDI) Foreign direct investments allow increasing the appointment of financial resources (Benamraoui, 2008), as well as achieving many of the gains for both the host country and the investment process but maligned by the following: 1-The foreign direct investment (FDI) seeks only to provide a small number of products for consumers. 2- Most of the tools used in foreign direct investment are short-term, where the investor seeks to achieve quick profit. 3.2 Organizing the relationship between the foreign investor and host country unions Regulating the relations of employees is the foundation upon which to build interaction between the historical circumstances and institutional arrangements (Mohamed Branine, 2008), in order to achieve a state of control of the employment of those who work through labor unions, where the government is trying to deal with foreign investors through labor unions, as the only factor that determines the ability of these unions to do their part to meet the challenges to workers, who need support from the government and various organizations.
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4-M ETHODOLOGY
The research is accomplished through a descriptive analysis of the information system for assessing project proposals of the foreign direct investments, as well as the study of the technical aspects of dealing with this system before developing and reaching the new system. The research methodology focuses on the study of how to solve the problems that imped the process of assessing foreign direct investment (FDI), besides identifying or investigating it through distributing a questionnaire form on a sample of foreign companies investing in Egypt, and examining of research hypotheses against the results of the analysis of data from the questionnaire investigation form. Moreover, through the research, the qualitative description of the existing components in the decisionmaking process on foreign direct investment is done, which has been through data collection and analysis. After that a preview of the items of the research data which has been collected from organizations studied by the following: 1 - Personal interviews. 2 - Direct observation. Volume 2, Issue 3 May June 2013
Table No. ( 1 ) showing the type of activity of each institution in the representative sample
No. 1 2 3 4 5 6 7 8 9 10 Type of activity electronic and electrical industries Plastic Industries Pharmaceutical Industry Food Industries Dyeing yarn and fabric industries Chemical Industries Mineral Industries Paper industries Fertilizers and pesticides industry Hardware and home appliances industry
Research Methodology Starting with contacting the number of foreign forty organizations that invest in Egypt, and who agreed to participate in the study, only 14 organizations have been approved after a personal interview with one worker of each, to distribute copies of the questionnaire form. Data Collection Comprehensive questionnaire form was distributed, which starts by identifying the characteristics of the organization; thereafter the answers to the questions which were directed to identify a common understanding about the process and testing hypotheses. Data Analysis Data were analyzed for sample of organizations participating in the study, based on the information collected through the survey. Writing report Reviewing the results of statistical analysis, as well as the notes on the prevailing trends in the data was recorded, and the regulatory practice has been executed. The research population
Design of the questionnaire form The search requests designing questionnaire form to be directed to employees of institutions concerned in this study, in order to test hypotheses statistically, besides checking that the objectives of the research had been achieved; the questionnaire form included the following parts: Part I: General Information, and questions about issues on using computer networks to encourage foreign direct investment (FDI) Part II: The policy of providing good working conditions for employees through computer networks. Part III: Success of direct investment. Part IV: Attitudes and opinions about how to deal with the economic and political conditions, in both the state and the state invested, in the host country, by the use of computer networks. 4.2 The characteristics of the items of the sample
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The table No. ( 5 ) shows the distribution of the sample in terms of nationality Nationality The The percentage number Egyptian 89 89% Foreigner 11 11% Total 100 100% Despite the wide diversity of problems that might face foreign direct investment which were studied in question no. (1); the open question in the first part of the questionnaire form was reclassified to: 1. There are no problems 2. Environmental problems 3. Technological or technical problems 4. Special problems with employment. 5. Problems with particular conditions of work. 6. Special problems of computer networks and communications. 7. Other. It has been clarified in the following table: The table No. ( 6) shows the distribution of the number of times the problems may face foreign direct investment The percentage Type of problem The number There is no 25 25% Environmental 5 5% Technological or 20 20% technical problems. Special 6 6% problems with employment. Problems with working conditions . Problems with computer networks and communications. Other Total 15 15%
Partitioning according to gender The distribution of the items of the sample according to the gender in the question No. (4) where the whole number investigated from the sample were 100 % male.
The Division in terms of age Table No. (4 ) shows the distribution of the sample in terms of age Persons age Less than 25 26-30 31-35 36-40 41-45 46-50 51-55 More than 55 Total The number 5 10 10 31 29 5 5 5 100 The percentage 5% 10% 10% 31% 29% 5% 5% 5% 100%
17
17%
12 100
12% 100%
The desire to participate in the organization and management of the company's computer to ensure support for communications between sites worldwide organization Table No. ( 7) shows the distribution of the desire to participate Page 123
The answers to question open No. (3) Part I of the questionnaire form as illustrated in the table No. (9) below: Table No. (9) shows suggestions to overcome the problems faced by foreign direct investment in the organization repetition No Proposal training on how to work through the 22 1 2 3 4
use of computer networks development of labor relations between workers in host country and workers in the mother company The maintenance of computers and update available data continuously Ensuring the integration of business activities processes in the organization at the host country with investor strategies and policies globally, by providing an integrated infrastructure for computer networks. Try to expand the size of the market for the products or services provided by the organizations that have a foreign direct investment. Trying to take advantage of the geographical location of the host country by studying the market and identifying their products or service's needs. Trying to pursuit compatibility with all the priority areas within the global trading systems continuing to support and assist efforts in the host country, so as to achieve added value through the ongoing cooperation with the organization in the country of origin Identify specific standards to measure proposals for projects to be established and evaluated for the existing projects on a regular basis once at least every three years. Based on the result of the determined assessment of the investment it is supposed to follow policies towards foreign investors, as well as establishing the appropriate structure for the implementation of international conventions in the field of foreign direct investment.
It was found that the considerations to be taken into account in the design, management and development of computer networks in the company to ensure support for the communications between the organization sites through answers to the question open No. (4) of the open questions in the first part of the questionnaire form as illustrated in the table below:
16 9 8
Table No. ( 8) reflects the considerations to be taken into account in the design, management and development of the computer networks in the company to ensure support for the relations between the organization sites
No
Consideration
The amendment in the work environment, in order to facilitate the work follow-up. Work on the development of staff skills through training to deal with computer networks. Work to maximize the use of the capabilities available in the parent company. provide all necessary means to ensure the safety, security and privacy of data exchanged across networks Identify, design and revise of the design choices for the information system that supports success in foreign direct investment. There must be a Continuous measurement of performance during the whole stages of the business life cycle to ensure that the desired goals of foreign direct investment are achieved. Reduce the amount of interactions between business units, including activities that may adversely affect the workflow There is a need for Assessment of business requirements needed to run the telework The use of multiple independent tasks can be implemented in a manner that is converging, and synchronized to ensure that no confusion may result from the presence of overlapping Relationships between tasks are difficult to be achieved through remote work using computer networks.
repetition
1 2
10 7
7 8
2 1
10
10
It has been found that suggestions to overcome the problems faced by foreign direct investment in the organization Volume 2, Issue 3 May June 2013
4.3 The statistical analysis method used It relied on several statistical measures for the purposes of statistical analysis as follows: 1 - The correlation coefficient method when 1% level of significance to test statistically the research hypothesis 2 - The use of the percentage measures of the order of the degree of influence of account in descending order 4.4 Hypotheses Page 124
1- Pearson's correlation coefficient has been used which is equal to 0.455 at the significant level 0.01 was 0.001 meaning that the probability of error is equal to one in a thousand. 2 - Kendall's correlation coefficient has been used which is equal to 0.345 at the significant level 0.01 was 0.001 meaning that the probability of error is equal to one in a thousand. 3 - Spearman correlation coefficient has been used which is equal to 0.438 at the significant level 0.01 was 0.002 by meaning that probability of error is equal to two per thousand. Which means that there is a relationship between the two variables is equal to 34% according to the correlation coefficient (Kendall) and 45.5% according to the (Pearson) correlation coefficient and 43.8% according to the correlation coefficient (Spearman), and this relationship is proportional because the correlation coefficient is positive, because the relationship is significant since the significance was 0.002 or 0.001. Therefore we accept the alternative hypothesis, and reject the null hypothesis.
Figure no. (1) proposed system flowchart 5.1. FDI assessment system Inputs 1. FDI work license (id ,description, date, approval type ) 2. Governmental agency(id ,name, phone ,e-mail, address, ministry of legislation) 3. Investment facility ( title , id, description) Volume 2, Issue 3 May June 2013
The results and recommendations for study The table No. ( 10) shows all the results, the recommendations and the implementation responsible
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N o. 1
The result Any application to control the assessment of foreign direct investment had not been understo od or trusted by host State , which may result in the nonexistence of ensuring acceptable of host country They could not rely on the system of evaluation of direct foreign investments to ge nerate economic benefits and quantity only. There is need for Increasing The return of improvi ng communicatio n between parent organization and the Organization in the host country in the case of multinational companies in the technology transfer process and facilitate the operations of research and development. the process of evaluation of direct foreign investments is required before the authorizing of work license by the resulting from the comprehensive and accurate data
Recommendation There must be emphasis on the application of the new system of control over the assessment of foreign direct investment
the application of the proposed new system includes quantitative and qualitative assessment of direct foreign investments
of
removing all obstacles that may face the contact between the mother Organization the and the Organization in the host country in the case of multinational companies
Develop a framework to assess projects for direct foreign investment before authorization to be comprehensive and accurate
References
[1] Abdel-Mowla, S. A. (2012). The Egyptian tax system reforms, investment and tax evasion (2004-2008). Journal of Economic and Administrative Sciences Volume: 28 Issue: 1 . [2] Attila Yaprak, K. T. (1984). Political Risk Management in Multinational Firms: An Integrative Approach . Management Decision Volume: 22 Issue: 6. [3] Benamraoui, A. (2008). Islamic banking: the case of Algeria. International Journal of Islamic and Middle Eastern Finance and Management Volume: 1 Issue: 2. Volume 2, Issue 3 May June 2013
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