International Business Riskassets.cambridge.org › 97805211 › 75517 › frontmatter › 9780521175… · International Business Risk A Handbook for the Asia-Pacific Region International

International Business Risk

A Handbook for the Asia-Pacific Region

International Business Risk is an attempt to help investors and students of contemporary Asianaffairs navigate the risk environments of Asia. Using the most up-to-date information andanalytical techniques, the volume analyses the political, economic, regulatory, and securityenvironments of 12 Asian countries. Each country is assessed for its political and economictrends, investment risks, and opportunities in a way that is clear, concise and easilyassessible. The handbook conveys forecast information through a series of charts, graphs,and boxed summaries of data, making it a handy reference guide for business professionalsas well as teaching and research professionals engaged in international relations, interna-tional business and trade with Asia.

Darryl Jarvis is Director, Centre for International Risk, and Senior Lecturer, InternationalRisk and International Relations, Faculty of Economics and Business, University of Sydney,Australia.

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Cambridge University Press978-0-521-17551-7 - International Business Risk: A Handbook for the Asia-Pacific RegionEdited by Darryl S. L. JarvisFrontmatterMore information

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For My GrandparentsIrene and Leslie Allen

RIP






International Business Risk

A Handbook for the Asia-Pacific Region

Edited byDarryl S.L. Jarvis

University of Sydney






CAMBRIDGE UNIVERSIT Y PRESS

Cambridge, New York, Melbourne, Madrid, Cape Town,Singapore, São Paulo, Delhi, Tokyo, Mexico City

Cambridge University PressThe Edinburgh Building, Cambridge CB2 8RU, UK

Published in the United States of America by Cambridge University Press, New York

www.cambridge.orgInformation on this title: www.cambridge.org/9780521175517

© Cambridge University Press 2003

This publication is in copyright. Subject to statutory exceptionand to the provisions of relevant collective licensing agreements,no reproduction of any part may take place without the writtenpermission of Cambridge University Press.

First published 2003

First paperback edition 2011

A catalogue record for this publication is available from the British Library

National Library of Australia Cataloguing in Publication dataJarvis, D.S.L., 1963– .International business risk: a handbook for the Asia–Pacific region.Bibliography.Includes index.ISBN 0 521 82194 0.1. Investments, Foreign – Asia. 2. Investments, Foreign –Pacific Area. 3. Country risk – Asia. 4. Country risk –Pacific Area. i. Title.332.6730995

ISBN 978-0-521-82194-0 HardbackISBN 978-0-521-17551-7 Paperback

Cambridge University Press has no responsibility for the persistence oraccuracy of URLs for external or third-party internet websites referred to inthis publication, and does not guarantee that any content on such websites is,or will remain, accurate or appropriate.






Acknowledgements viiRisk and Country Risk Assessment: Methodology ixList of figures xiiiList of contributors xviAbbreviations xviiiMap of Asia-Pacific region xxii

1 T O W A R D 2 0 0 4 : A S I A - PA C I F I C O U T L O O K A N D P R O S P E C T S 1

Darryl S. L. Jarvis

2 A U S T R A L I A 1 1

Marcus Chadwick

3 C H I N A 4 7

Marcus Chadwick and Tianbiao Zhu

4 I N D I A 8 7

Jane M. Ford

5 I N D O N E S I A 1 2 3

Colin Brown

6 J A PA N 1 5 9

S. Javed Maswood

v

Contents






7 M A L AY S I A 1 9 7

William Case

8 P H I L I P P I N E S 2 3 1

Jane M. Ford

9 S I N G A P O R E 2 6 7

Malcolm Cook

1 0 S O U T H K O R E A 3 0 1

Terry F. O’Callaghan

1 1 TA I W A N 3 3 9

Terry F. O’Callaghan

1 2 T H A I L A N D 3 7 7

Darryl S. L. Jarvis

1 3 V I E T N A M 4 1 3

Darryl S. L. Jarvis

Notes 448Index 463

v i C O N T E N T S






Volumes as extensive and far ranging as this one are the result of much effort, dedication,and countless hours of research and interviews, not to mention a wealth of personalexperience and knowledge about the subject matter, business environment, and the count-less number of factors that shape the risk climate for international business. As an editor, Ihave been blessed with a team of dedicated professionals who, without exception, havegiven far more than they were asked, obliged with deadlines, were good natured aboutcritical suggestions, and produced insights and commentaries about their surveyed countriesbeyond my expectations. Each person deserves mention.

Colin Brown, Professor of Asian Studies at the Flinders University of South Australia,and long-time Indonesia observer, toiled under particularly stringent deadlines. His goodhumor in meeting these was inspirational and proved invaluable to the success of theproject. Malcolm Cook set new standards for punctuality, and happily provided last minutemodifications that would have tested the patience of any busy professional. William Casewas first off the mark with his extremely insightful analysis of Malaysia, and his willingnessto meet our onerous deadlines and suggestions. Likewise, S. Javed Maswood committed tothe project with great enthusiasm and obliged with additional materials and on-goingrequests for still further information. To all concerned, I am profoundly grateful.

As with any research endeavor, a few individuals proved invaluable and instrumental tothe successful completion of the project. Marcus Chadwick, of the Centre for International Riskin the Faculty of Economics and Business at the University of Sydney, gave both his time andexpertise, as well as the wealth of experience from his professional life in risk insurance, and,prior to that, the development of strategic business information products. In no small measure,his contributions have shaped this volume for the better, for which I remain indebted.

By no means last, Jane Ford, a director and partner at the firm Alpha Risk International,and Terry O’Callaghan, co-director of the Centre for International Risk and resident of theSchool of International Studies, University of South Australia, were instrumental in discus-sions that led to the conception of the project, its design and realization. Their dedication to

v i i

Acknowledgements






the project was time and again demonstrated, not least by the heavy research burden eachassumed despite extensive professional commitments, and by the endless requests of Janefor assistance, input, and information – requests that I am sure she thought would neverend! To both, my sincere thanks for a job well done.

Finally, thanks are due to the folks at Cambridge University Press, especially PeterDebus, whose belief in the project from the very beginning ensured its realization. Peter’sgreat efforts in sticking with the project proved instrumental, as did the comments of theanonymous reviewers who generously provided a series of insightful suggestions and modi-fications, all of which have served to strengthen the volume for the better.

Darryl S.L. Jarvis

v i i i A C K N O W L E D G E M E N T S






This volume was developed for professionals who engage in cross-border investment andinternational business activities, as well as for corporate strategists, researchers and studentsof international economics and international relations.

The structure of the volume is based on a template formula, and was developed afterwide consultation with fund managers, members of the international banking community,risk managers, corporate strategists, consulting houses and research professionals. Discus-sions and presentations were held throughout Asia, with numerous interviews conductedof leading investment professionals in the United States, United Kingdom, Australia andCanada.

The result was the formulation of a set of indices and qualitative assessments focusingon six major country risk areas:

Section A: Economy

Macroeconomic Overview

Section B: Risks and projections

Macroeconomic performance and risk indicatorsExport performanceCurrency movements and projectionsFinancial markets: Performance and developments

i x

Risk and Country Risk Assessment:Methodology






Private and public sector debtLabor market trendsConsumer and business confidenceStock marketCorporate taxResidential and commercial property marketsForeign direct investment

Section C: Politics

Corruption indexCorporate governance indexPolitical stabilityForeign investor risk index

Section D: Security

Section E: Economic and political risk forecasts

Section F: Country fact sheet

These were designed to be accessible to as wide an audience as possible, and to provide timeseries data as up-to-date as possible, while also using trend analysis and scenario generationto construct forecasts for 2003–04, and beyond.

The project has thus been devised with the explicit intention of looking forward, toappraise professionals of the risk environments they are likely to confront, examine majordevelopments on the horizon, and the strategic trigger points that need to be factored intobusiness and foreign investment planning decisions.

It is important to note that the project was not conceived as a purely economic forecastof the economies of Asia. On the contrary, after extensive discussions with business andinvestment professionals, time and again it was identified by them that much of the infor-mation they wanted to source was not always purely economic. Rather, they were interestedin those political factors that would impact on markets; things like public policy develop-ments or changes in government policy that would affect the operating parameters ofenterprises or market segments; regulatory and prudential changes that might affect com-pliance issues for lawful operation and the implications for market depth and breadth;structural changes to market composition as a result of political interference, corruption, ornepotism; as well as strategic security developments that might impact on procurement prac-tices, production and delivery schedules, foreign expatriate employees, and the viability ofplant and equipment.

Indeed, what became overtly apparent was that, while there exists a wealth ofeconomic forecasting instruments available to business, little strategic analysis of non-economic, and broadly political, regulatory, strategic and public policy areas is currentlyavailable to assist business professionals in corporate planning and investment placement

x R I S K A N D C O U N T R Y R I S K A S S E S S M E N T : M E T H O D O L O G Y






decisions. It was thus decided to fill this void by providing a comprehensive and useful toolthat surveyed the Asia-Pacific in ways contiguous with those needs identified in our variedconversations.

The problems in constructing such an analysis, however, have proven daunting, notleast because of the multitude of factors that necessarily need to be considered, but alsobecause standardized and well-recognized formulas for structuring such analyses, priori-tizing issues, and connecting them in ways that provide insight to the holistic riskenvironment, are not yet evident. This project has thus been pioneering, inasmuch as wehave been forced to engage with the blunt realities of issue identification, issue manage-ment, and issue prioritization and develop indices that measure the impact of these inways that can be usefully mined by professionals.

It should be noted, however, that this process is far from complete: risk analysis –especially country risk analysis – is a constantly evolving profession. More generally, itshould also be noted that the end result is far from satisfactory, if only because the twinobjectives of the project have proven incongruous: the want to address the specifics of aninvestment environment in as detailed and richly informative way as possible, while alsodevising a country profile that speaks to a wider business community. This problem willbe famously recognized by economists as the division between macroeconomics andmicroeconomics, with each speaking to the needs of different agendas and levels ofanalysis. No less a problem has been confronted in this volume; the need to speak toparticular industry segments in order to make the information pertinent, juxtaposedagainst the need to be inclusive and speak to a wider international business communityengaged in a multitude of industries and using numerous investment instruments.

Mindful of this, and the twin dangers of both particularism and generalism, thisvolume has sought to tread a fine line between the practical parameters of micro- andmacro-political-cum-economic issues, where each country has been analyzed for its macro-economic and macro-political indicators and environment, but then enriched by specificanalyses of individual market and economic segments. Finally, each country analysis hasthen attempted to relate these factors to the macro-political and strategic environments,culminating in a series of risk indicators developed to measure the macro risks faced bybusiness operations in terms of corporate governance and transparency, indices of thepropensity to corporate restructuring, political stability, corruption, law and order, thecapacity of authorities to govern effectively, and a broad measure of holistic risk in the oper-ating environment in terms of generic risk to foreign investors.

As with any project of this nature, the utilization of disparate data series also posedproblems, not least because of wide variance in terms of country reporting techniques, trans-parency, accounting procedures, and the frequency of reporting. To discount these variances,data was collected from internationally recognized sources like the World Bank, the Inter-national Monetary Fund, the Asian Development Bank, among others, and thensupplemented with national data series and forecasts of the Economist Intelligence Unit.

Importantly, however, data collection was only partially useful as a medium to assesscountry risk, and qualitative assessment techniques have thus been developed in theconstruction of this volume, primarily through a reliance on the generation of scenarios.

R I S K A N D C O U N T R Y R I S K A S S E S S M E N T : M E T H O D O L O G Y x i






These aim to give as full a picture as possible of likely future developments and their impli-cations for each of the market and macroeconomic and political segments considered ineach chapter.

Finally, some comment is warranted about the selection process in terms of thecountries analyzed in this volume. This, in fact, turned out to be the easiest of the manyissues confronted. The yardstick employed centered around flows of foreign direct invest-ment (FDI), with countries registering only nominal FDI flows omitted from the volume.Thus, for example, Burma was judged well below the FDI levels of comparable countries inthe region, as was Laos, Cambodia, and Papua New Guinea. Of perhaps greater controversybecause of their omission were Bangladesh and Sri Lanka, whose FDI flows have increasedconsiderably over the last decade, not least in terms of FDI associated with textile productionfor export. However, in the end it was decided that both these countries lacked the criticalmass of foreign business presence to warrant inclusion; a decision that might well provepremature in the coming decade.

x i i R I S K A N D C O U N T R Y R I S K A S S E S S M E N T : M E T H O D O L O G Y






Figures

1.1 Rank of countries – GDP per capita US$ billion 41.2 Growth forecasts for 2002–04 51.3 External vulnerability and growth prospects 61.4 Risk rankings for Asian countries 82.1 Total debt, Australia 1996–2004 202.2 Wage cost index, Australia 2002–2004 222.3 Business and consumer confidence, Australia 1994–2004 242.4 Foreign direct investment in Australia 1995–2004 302.5 Political stability index, Australia 1998–2004 342.6 Corruption index, Australia 1996–2004 352.7 Corporate governance index, Australia 1998–2004 362.8 Foreign investor risk index, Australia 1996–2004 373.1 Debt, China 1996–2004 583.2 Consumer and business confidence, China and Hong Kong 1997–2004 613.3 Foreign direct investment, China 1996–2004 683.4 Corruption index, China 1998–2004 743.5 Corporate governance index, China 1995–2004 743.6 Political stability index, China 1995–2004 753.7 Foreign investor risk index, China 1996–2004 764.1 External debt as percentage of GDP, India 1996–2004 964.2 Business and consumer confidence, India 1998–2004 99

x i i i

Figures






4.3 Portfolio investment, India 1996–2004 1024.4 Foreign direct investment, India 1996–2004 1064.5 Corruption index, India 1996–2004 1094.6 Political stability index, India 1996–2004 1104.7 Corporate governance index, India 1996–2004 1114.8 Foreign investor risk index, India 1999–2004 1125.1 Exchange rate: Rupiah to US dollars 1295.2 External debt, Indonesia 1996–2004 1315.3 Business and consumer confidence, Indonesia 1996–2004 1345.4 Foreign direct investment, Indonesia 1996–2004 1395.5 Corruption index, Indonesia 1997–2004 1445.6 Corporate governance index, Indonesia 1995–2004 1455.7 Political stability index, Indonesia 1995–2004 1475.8 Foreign investor risk index, Indonesia 1995–2004 1486.1 Exchange rate yen to US dollar 2001–2004 1666.2 Debt as percentage of GDP, Japan 1996–2004 1696.3 Consumer and business confidence, Japan 1996–2004 1736.4 Household consumption expenditure, Japan 1990–2004 1746.5 Nikkei stock market 1990–2004 1756.6 Tokyo CBD office rentals 1995–2004 1796.7 Foreign direct investment, Japan 1996–2004 1816.8 Political stability index, Japan 1998–2004 1846.9 Corruption index, Japan 1995–2004 1876.10 Corporate governance index, Japan 1997–2004 1886.11 Foreign investor risk index, Japan 1995–2004 1897.1 Government debt as percentage of GDP, Malaysia 1996–2005 2067.2 Business and consumer confidence, Malaysia 1996–2004 2097.3 Foreign direct investment, Malaysia 1996–2004 2157.4 Political stability index, Malaysia 1998–2004 2187.5 Corruption index, Malaysia 1995–2004 2207.6 Corporate governance index, Malaysia 1996–2004 2217.7 Foreign investor risk index, Malaysia 1997–2004 2228.1 External debt as percentage of GDP, Philippines 1996–2004 2418.2 Vehicle sales, Philippines 1996–2004 2448.3 Consumer and business confidence, Philippines 1996–2004 2458.4 Net foreign direct investment, Philippines 1996–2004 2508.5 Political stability index, Philippines 1996–2004 2568.6 Corruption index, Philippines 1996–2004 2568.7 Corporate governance index, Philippines 1996–2004 2578.8 Foreign investor risk index, Philippines 1996–2004 2589.1 Exchange rate Singapore dollar to US dollar 1988–2004 2729.2 Public debt, Singapore 1997–2004 2779.3 Monthly wages, Singapore 1994–2004 278

x i v F I G U R E S






9.4 Business and consumer confidence, Singapore 1996–2004 2809.5 Retail sales index, Singapore 1996–2004 2819.6 Foreign direct investment, Singapore 1996–2004 2869.7 Corruption index, Singapore 1997–2004 2889.8 Political stability index, Singapore 1997–2004 2899.9 Corporate governance index, Singapore 1995–2004 2909.10 Foreign investor risk index, Singapore 1995–2004 29110.1 Gross domestic product, South Korea 1998–2004 30410.2 Trade surplus, South Korea 1998–2004 30510.3 Leading export markets, South Korea 1999–2004 30610.4 External debt, South Korea 1997–2004 31010.5 Unemployment rate, South Korea 1998–2004 31210.6 Consumer sentiment, South Korea, January 2001–July 2004 31410.7 Stock market, South Korea, January 2001–July 2004 31610.8 Foreign direct investment, South Korea 1997–2004 32110.9 Corruption index, South Korea, 1996–2004 32710.10 Political stability index, South Korea 1997–2004 32710.11 Corporate governance index, South Korea 1997–2004 32810.12 Foreign investor risk index, South Korea 1997–2004 32911.1 External debt, Taiwan 1996–2004 34711.2 Business and consumer confidence, Taiwan 1995–2004 35011.3 Foreign direct investment, Taiwan 1996–2004 35611.4 Exports and investment – Taiwan into China, 1991–2004 35811.5 Corruption index, Taiwan 1995–2004 36211.6 Political stability index, Taiwan 1995–2004 36311.7 Corporate governance index, Taiwan 1997–2004 36411.8 Foreign investor risk index, Taiwan 1997–2004 36512.1 Debt as percentage of GDP, Thailand 1996–2004 38512.2 Average monthly income, Thailand 1994–2004 38712.3 Real wage rate comparison index, Thailand 1997–2004 38712.4 Business and consumer confidence, Thailand 1996–2004 38912.5 Total vehicle sales, Thailand 1990–2004 39012.6 Net foreign direct investment, Thailand 1996–2004 39612.7 Corruption index, Thailand 1996–2004 40012.8 Political stability index, Thailand 1996–2003 40112.9 Corporate governance index, Thailand 1995–2004 40212.10 Foreign investor risk index, Thailand 1995–2004 40313.1 Public sector debt, Vietnam 1998–2005 42413.2 Foreign direct investment, Vietnam 1990–2004 43213.3 Corruption index, Vietnam 1997–2004 43713.4 Political stability index, Vietnam 1998–2004 43813.5 Foreign investor risk index, Vietnam 1997–2004 439

F I G U R E S x v






Contributors

Colin Brown is Professor of Asian Studies at Flinders University of South Australia. He hasalso taught at Griffith University, the University of Tasmania, and the Australian NationalUniversity. His teaching and research interests are in the areas of modern Indonesian history,politics and economics. He is author of Indonesia: Dealing with a Neighbour, and haspublished articles in Australia–Asia Survey and Emerging Economic Systems in Asia.

William Case is senior lecturer in the School of International Business and Asian Studies atGriffith University, Brisbane. He has taught at the University of Texas, the MARA Universityof Technology in Shah Alam, Malaysia, the Australian National University, and theAustralian Defence Force Academy. His most recent book is Politics in Southeast Asia: Democ-racy or Less (2002). He has also published many book chapters and journal articles onMalaysian and East Asian politics.

Marcus Chadwick gained a Bachelor of Science from City University, London before com-pleting his Master of Science in international political economy at the London School ofEconomics and Political Science. As a former country-risk economist and political risk insur-ance broker, Marcus has worked with a range of Asia-Pacific multinationals, instituting riskmanagement strategies throughout Southeast Asia. He has also lectured Asian business leadersin political risk management strategies, including institutional responses to financial risk. He iscurrently research fellow with the Centre for International Risk, Faculty of Economics andBusiness, at the University of Sydney.

Malcolm Cook is lecturer at the Ateneo de Manila University’s Department of PoliticalScience, where he teaches international political economy and Southeast Asian Studies. He is

x v i






C O N T R I B U T I O R S x v i i

currently on study leave pursuing research on banking reform in the Asia–Pacific region atthe Department of International Relations, Research School of Pacific and Asian Studies atthe Australian National University, Canberra. Malcolm is a regular contributor to OxfordAnalytica’s Asia–Pacific briefings, has worked with the Philippine Institute of DevelopmentStudies at the APEC Studies Center, and has published articles in Pilipinas, and the AsianJournal of Social Studies.

Jane Ford received her PhD from the University of Sydney, before working for the Australianfederal government in various advisory capacities. She specializes in the analysis of inter-national institutions and the political economy of trade policy. She is also director andpartner in the firm Alpha Risk International, a company specializing in risk advisory servicesfor global business, where she heads the Asia–Pacific Investment Risk Division.

Darryl S. L. Jarvis is director of the Centre for International Risk and senior lecturer in inter-national risk and international relations, in the Faculty of Economics and Business at theUniversity of Sydney, Australia. His research interests include international risk analysis and methodology, risk assessment of the Asia–Pacific, and the globalization of money andfinance. He has contributed articles to Politics and Society (USA), Policy, Organization andSociety (Australia), and Asian Survey (Berkeley, USA), and is the author of a series of mono-graphs and edited books on international relations. He is a frequent media commentator oninternational affairs, and regularly addresses business forums on international risk andregional developments in Asia. He is currently developing a book project for corporateprofessionals on international risk analysis and management.

S. Javed Maswood is associate professor in the School of International Business and AsianStudies, Griffith University. He has written several books on Japan and international politi-cal economy. His last two publications are Japan in Crisis, and Japan: Continuity and Change.

Terry O’Callaghan is lecturer in the School of International Studies at the University ofSouth Australia. He teaches courses on international relations and international risk. He isco-author of International Relations: The Key Concepts and has published articles on inter-national relations in the Asia–Pacific. His research interests focus on the relationshipbetween international relations and international business, political risk analysis in theAsia–Pacific, and mining sector risk. He is co-director of the Centre for International Risk, ajoint venture with the University of Sydney. He is currently writing a book on the principlesof international investment risk with Darryl Jarvis.

Tianbiao Zhu is a Postdoctoral Fellow in the Research School of Pacific and Asian Studies atthe Australian National University, Canberra, and a lecturer in the School of Public Policyand Management at Tsinghua University, China. He received his MPhil from the Universityof Cambridge and PhD from Cornell University. His main research interest is internationaland comparative political economy, and he is currently doing research on the politicaleconomy of development in Taiwan, South Korea, and China.






Air Pollution Convention on Long-Range Transboundary Air PollutionAir Pollution– Protocol to the 1979 Convention on Long-Range Transboundary Air

Nitrogen Pollution Concerning the Control of Emissions of Nitrogen Oxides orOxides Their Transboundary Fluxes

Air Pollution– Protocol to the 1979 Convention on Long-Range Transboundary AirPersistent Organic Pollution on Persistent Organic PollutantsPollutants

Air Pollution– Protocol to the 1979 Convention on Long-Range Transboundary Air Sulphur 85 Pollution on the Reduction of Sulphur Emissions or Their

Transboundary Fluxes by at Least 30%Air Pollution– Protocol to the 1979 Convention on Long-Range Transboundary Air

Sulphur 94 Pollution on Further Reduction of Sulphur EmissionsAir Pollution– Protocol to the 1979 Convention on Long-Range Transboundary Air

Volatile Organic Pollution Concerning the Control of Emissions of Volatile Organic Compounds Compounds or Their Transboundary Fluxes

ANZUS Australia–New Zealand–United States Security TreatyAPEC Asia-Pacific Economic CooperationARF ASEAN Regional ForumAsDB Asian Development BankASEAN Association of Southeast Asian NationsAutodin Automatic Digital NetworkBiodiversity Convention on Biological DiversityBIS Bank for International SettlementsC CommonwealthCaricom Caribbean Community and Common MarketCB citizen’s band mobile radio communicationsCCC Customs Cooperation CouncilCE Council of EuropeCEMA Council for Mutual Economic Assistance; also known as CMEA or ComeconCEMAC Monetary and Economic Community of Central AfricaCEPGL Economic Community of the Great Lakes Countries CERN European Organization for Nuclear Researchc.i.f. cost, insurance, and freightCIS Commonwealth of Independent StatesCITES see Endangered SpeciesClimate Change United Nations Framework Convention on Climate ChangeClimate Change– Kyoto Protocol to the United Nations Framework Convention on

Kyoto Protocol Climate Change

Abbreviations

x v i i i






A B B R E V I A T I O N S x i x

COCOM Coordinating Committee on Export ControlsComsat Communications Satellite CorporationCP Colombo PlanCY calendar yearDC developed countryDSN Defense Switched NetworkDWT deadweight tonEBRD European Bank for Reconstruction and DevelopmentEC European CommunityECO Economic Cooperation OrganizationECOSOC Economic and Social CouncilEEC European Economic CommunityEFTA European Free Trade AssociationEIB European Investment BankEMU European Monetary UnionEndangered Convention on the International Trade in Endangered Species of Wild

Species Flora and Fauna (CITES)Entente Council of the EntenteEnvironmental Convention on the Prohibition of Military or Any Other Hostile Use

Modification of Environmental Modification TechniquesESCAP Economic and Social Commission for Asia and the PacificESCWA Economic and Social Commission for Western Asiaest. estimateEU European UnionEx-Im Export-Import Bank of the United StatesFAO Food and Agriculture OrganizationFAX facsimilef.o.b. free on boardFLS Front Line StatesFY fiscal yearG-2 Group of 2G-3 Group of 3G-5 Group of 5G-6 Group of 6G-7 Group of 7G-8 Group of 8G-9 Group of 9G-10 Group of 10G-11 Group of 11G-15 Group of 15G-19 Group of 19G-24 Group of 24G-30 Group of 30G-33 Group of 33G-77 Group of 77GATT General Agreement on Tariffs and Trade; now WTrOGCC Gulf Cooperation CouncilGDP gross domestic productGNP gross national productGRT gross register tonGWP gross world productHazardous Basel Convention on the Control of Transboundary Movements of

Wastes Hazardous Wastes and Their DisposalHF high-frequencyIADB Inter-American Development BankIAEA International Atomic Energy AgencyIBEC International Bank for Economic CooperationIBRD International Bank for Reconstruction and Development (World Bank)ICAO International Civil Aviation Organization






ICC International Chamber of CommerceICJ International Court of Justice (World Court)ICRC International Committee of the Red CrossICRM International Red Cross and Red Crescent MovementICTR International Criminal Tribunal for RwandaICTY International Criminal Tribunal for the former YugoslaviaIDA International Development AssociationIDB Islamic Development BankIEA International Energy AgencyIFAD International Fund for Agricultural DevelopmentIFC International Finance CorporationIFCTU International Federation of Christian Trade UnionsIFRCS International Federation of Red Cross and Red Crescent SocietiesIGAD Inter-Governmental Authority on DevelopmentIGADD Inter-Governmental Authority on Drought and DevelopmentIHO International Hydrographic OrganizationIIB International Investment BankILO International Labor OrganizationIMF International Monetary FundIMO International Maritime OrganizationInmarsat International Mobile Satellite OrganizationInOC Indian Ocean CommissionIntelsat International Telecommunications Satellite OrganizationInterpol International Criminal Police OrganizationIntersputnik International Organization of Space CommunicationsIOC International Olympic CommitteeIOM International Organization for MigrationISO International Organization for StandardizationITU International Telecommunication UnionkHz kilohertzkm kilometerkW kilowattkWh kilowatt-hourLaw of the Sea United Nations Convention on the Law of the Sea (LOS)LDC less developed countryLLDC least developed countryLondon see Marine DumpingConventionLOS see Law of the Seam meterMarine Dumping Convention on the Prevention of Marine Pollution by Dumping Wastes and

Other MatterMarine Life Convention on Fishing and Conservation of Living Resources of the

Conservation High SeasMercosur Southern Cone Common MarketMHz megahertzNA not availableNAM Nonaligned MovementNATO North Atlantic Treaty OrganizationNC Nordic CouncilNEA Nuclear Energy AgencyNIC newly industrializing countryNIE newly industrializing economyNIS new independent statesNM nautical mileNSG Nuclear Suppliers GroupNuclear Test Ban Treaty Banning Nuclear Weapons Tests in the Atmosphere, in Outer Space,

and Under WaterNZ New Zealand

x x A B B R E V I A T I O N S






OAPEC Organization of Arab Petroleum Exporting CountriesODA official development assistanceOECD Organization for Economic Cooperation and DevelopmentOIC Organization of the Islamic ConferenceOOF other official flowsOPCW Organization for the Prohibition of Chemical WeaponsOPEC Organization of Petroleum Exporting CountriesOzone Layer Montreal Protocol on Substances That Deplete the Ozone LayerProtectionPCA Permanent Court of ArbitrationPFP Partnership for PeaceSAARC South Asian Association for Regional CooperationSHF super-high-frequencyShip Pollution Protocol of 1978 Relating to the International Convention for the Prevention

of Pollution From Ships, 1973 (MARPOL)Sparteca South Pacific Regional Trade and Economic Cooperation AgreementSPC South Pacific CommissionSPF South Pacific Forumsq km square kilometersq mi square mileTropical Timber 83 International Tropical Timber Agreement, 1983Tropical Timber 94 International Tropical Timber Agreement, 1994UAE United Arab EmiratesUHF ultra-high-frequencyUK United KingdomUN United NationsUNCTAD United Nations Conference on Trade and DevelopmentUNDCP United Nations Drug Control ProgramUNDOF United Nations Disengagement Observer ForceUNDP United Nations Development ProgramUNEP United Nations Environment ProgramUNESCO United Nations Educational, Scientific, and Cultural OrganizationUNHCR United Nations High Commissioner for RefugeesUNHCRHR United Nations High Commissioner for Human RightsUNICRI United Nations Interregional Crime and Justice Research InstituteUNIDIR United Nations Disarmament ResearchUNIDO United Nations Industrial Development OrganizationUNITAR United Nations Institute for Training and ResearchUNMOGIP United Nations Military Observer Group in India and PakistanUNMOVIC United Nations Monitoring and Verification CommissionUNRISD United Nations Research Institute for Social DevelopmentUNTAET United Nations Transitional Administration in East TimorUNTSO United Nations Truce Supervision OrganizationUNU United Nations UniversityUPU Universal Postal UnionUS United StatesVHF very-high-frequencyWCL World Confederation of LaborWEU Western European UnionWFC World Food CouncilWFP World Food ProgramWFTU World Federation of Trade UnionsWHO World Health OrganizationWIPO World Intellectual Property OrganizationWMO World Meteorological OrganizationWTO see WToO for World Tourism Organization or WTrO for World Trade Organi-

zationWToO World Tourism OrganizationWTrO World Trade OrganizationZC Zangger Committee

A B B R E V I A T I O N S x x i






INDIA

INDIA

A U S T R A L I A

EASTTIMOR

I N D O N E S I A

SINGAPORE

M A L A Y S I A

BRUNEI

VIETNAM

LAOS

THAILAND

CAMBODIAP H I L I P P I N E S

TAIWAN

J A P A NSOUTHKOREA

C H I N A

MYANMAR(BURMA)

Darwin

Dili

Manila

SurabayaBandung

Jakarta

KualaLumpur

Vientiane

PhnomPenh

YangonBangkok

Ho Chi Minh City

Hanoi

Chengdu

Chongqing

Guangzhou

Xi'an

Wuhan

Taipei

Pusan

FukuokaOsaka

Tokyo

Shanghai

Macau HongKong

0 500

N1000 km

YellowSea

EastChinaSea

CelebesSea

Arafura Sea

Java Sea

North

Pacific

Ocean

IndianOcean

SouthChinaSea

The Asia-Pacific region






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International Business Riskassets.cambridge.org › 97805211 › 75517 › frontmatter › 9780521175… · International Business Risk A Handbook for the Asia-Pacific Region International