Own For Continuing The Oil And Gas Business-Myassignmenthelp.Com

Question: Discuss About The Own For Continuing The Oil And Gas Business? Answer: Introducation Spratlys Islands has been the part of the disputes from Vietnam, Philippines and China that claimed the islands as their own for continuing the oil and gas business. There was a dispute between Philippines and Vietnam for allowing two oil exploring company to explore oil in the islands. Moreover, both the countries strengthen their military ties with US to set back the navy strength of China. Each of these countries claimed the ownership area based on that the islands are near to their region. However, to solve the dispute a peaceful resolution is needed for the national pride. The bilateral negation may solve the dispute, as it will call for a mutual understanding (Chen Weiss, 2014). However, china and other strong country may win over weak ones. Arbitration by UNCLOS may sole the dispute easily as the third party decides on behalf of the country (Lisman, 2015). However, it might lead to a biasness of decision if the third party favors any one nation. Thirdly, code of conduct sets rules for the nation to limit their activities on the sea (By Dawson, 2014). However, it may not solve the disputes between the countries. Thus, decision regarding one single solution is difficult to make. Forum Energy PLC was allowed to carry out the oil drilling activity in the Spratlys Islands. However, being the executive of the company I feel that the company might face various challenges while working over there. The first challenges will the dispute and problems from the other nations fighting for the rights of the islands. The major dispute will come from China as it has a strong military power and claims to have an ownership of the islands. Thus, in order to function well in the island the nation needs to clear the dispute or just prevent it by some way or the other. Thus, to reduce the political risk, the company can ask Philippines to better their political relationships with the other countries claiming for the same island. Philippines can negotiate with Vietnam and United States and strengthen their military and political power. Toyota has entered the Chinese market with the aim to achieve faster growth from the market. This is because Chinese economy is said to be one of the most advance economy. However, with the rising dispute between china and Japan regarding the ownership of the island caused a political threat to Toyota. Being an executive of the company, I have realized that Chinese people started to boycott the things from Japan or from companys of Japan. This resulted in a drop of sale of Toyota by nearly half an amount compared to previous years. The company was hit very badly by the dispute, which caused their downfall (Bekaert, et al., 2016). The political risk faced by Toyota can only be solved by approaching the Chinese and the Japan government to carry out a mutual meeting regarding the island dispute and reach to a mutual result which could benefit both the parties. This will help the company to resolve the damage slowly that is being caused. References Bekaert, G., Harvey, C. R., Lundblad, C. T., Siegel, S. (2016). Political risk and international valuation.Journal of Corporate Finance,37, 1-23. By, D., Dawson, J. (2014). Code of Conduct. Chen, S., Weiss, G. (2014). An intelligent agent for bilateral negotiation with unknown opponents in continuous-time domains.ACM Transactions on Autonomous and Adaptive Systems (TAAS),9(3), 16. Lisman, J. K. (2015). Arbitration Agreement Arbitrage: Statutory Discrepency Leads to Third Circuit Victory for Dodd-Frank Whistleblower Defendants in Khazin v. TD Ameritrade Holding Corp.Vill. L. Rev.,60, 753.