Essays on Alumina Limited - Macro-Economic and Geopolitical Forces Affecting the Countries Case Study

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The paper "Alumina Limited - Macro-Economic and Geopolitical Forces Affecting the Countries" is a perfect example of a business case study. Alumina Limited is an Australian company involved in mining, aluminum and bauxite and smelting the products. The company should consider investing in China and Finland due to the opportunities these countries offer. Both countries have favorable macro-environments and geopolitical factors that make them suitable investment destinations. Of the two, China is the best investment destination. Introduction Alumina Limited is an Australian limited company. The company is dual-listed on the New York and Australian stock exchanges.

The company was formed in 2003 following its separation from Western Mining Corporation. Currently, it is ranked among the 100 companies by market capitalization on the ASX (Alumina Limited, 2016). The company operates as a holding company holding a 40% share in Alcoa World Alumina and Chemicals (AWAC). 60% of the shears are held by its partner Alcoa, which runs the operations of the venture. AWAC extracts aluminum oxide, bauxites and smelts pure aluminum. It commands 17% of the world alumina market AWAC has operation interest in Australia, Guinea, Spain, Brazil, Jamaica, Texas, and Suriname.

Alumina Limited should consider expanding to China and Finland. The following is an analysis of the expansion opportunities in the two countries Macro-economic and geopolitical forces affecting the countries PESTEL analysis (China) Legal factor Legal factors involve laws governing the country. Labor law is one of the major influential legal factors in China. It protects employees’ labor benefits such as standard working hours, all penalties and overtime minimum payment. An employer will, therefore, choose to own a factory in China because of the low cost of labor compared to other countries (Aburaki, 2013).

The Government of China has set up laws to encourage investments from foreign companies. These laws protect the legitimate rights and interests of both overseas and domestic investors and guarantee foreign-funded enterprises have independent operation rights. The competitive regulation law has also led to many companies investing their businesses in China.

Reference

Aburaki, K. 2013, China’s Competiveness: Myths, Reality, and Lessons from the United States and Japan: Analyses and Policy implications. A report of the CSIS Hills Program on Governance.

Alumina Limited. 2016, Accessed on 18 April 2016

Bureau of Economic and Business Affair. 2015, Investment Climate Statement – Finland, Accessed 18 April 2016 < http://www.state.gov/e/eb/rls/othr/ics/2015/241562.htm>

International Business Publications, U. 2007, Finland mineral & mining sector investment and business guide. [S.l.], Intl Business Pubns Usa.

Jayaraman, K. 2009, Doing business in China: A risk analysis. Journal of Emerging Knowledge on Emerging Markets. 1(1), 55-63.

Ministry of Foreign Affairs of Finland. 2010, Trade Policy, Accessed on 18 April 2016 http://www.finlandmission.ch/public/default.aspx?nodeid=35478&contentlan=2&culture=en-US>

Richard, K. 2016, The China Market: Opportunities and Risks, Accessed 18 April 2016

US Commercial Service. 2014, Doing Business in Finland:2014 Country Commercial Guide for U.S. Companies. Accessed on 18 April 2016

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