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TEAM Athena
Topic: RoboCanada. Inc
https://youtu.be/R1ofIrvPRIY
We, Athena, gonna choose the best three countries as the new
assembly and distribution hub in Asia. And we got seven option
countries.
From Global Risk Maps in the ZRR room, Malaysia is closest to the
Nirvana Point. Thailand, Russia and China are closer to the Nirvana
Point than Armageddon point.
while the political & physical risk increased which is due to the
increase in seismic disaster risk.
but political and physical risk increased, which is due to the raise in
political violence risk and storm and floods risk.
Russia had the highest business environment risk among the four
countries and the risk kept increasing during the 7 years. The decline
in political and physical risk is due to the decline of information
infrastructure risk, but Russia still has a high expropriation risk and
transportation infrastructure risk.
Based on the analysis, we can eliminate Russia and get best three
countries: Malaysia, China and Thailand.
From the global risk maps, we can see the UK and Canada have much
lower overall risks.
For the risks from labors quality, it is higher in China, Thailand and
Malaysia. Training and good corporate governance system may cost a
lot.
For some infrastructure, the risk from three Asian countries is higher.
New hubs should cost more to establish risk management system.
Even the three Asian countries seems more risky and costly in many
aspects, the recent Asian free trade agreement can help new hubs be
more adaptable to the new international trade environment.
Se
ismic Disasters and Storms and Floods share similar mitigations
methods. First we try to avoid these risks by selecting vantage sites
e.g. far away from junction of plates. However, if other costs, such as
transportation cost, at this time, are more significant than benefits
brought by vantage site selection, we choose to transfer these risks.
According to our research, many international insurance companies
including Zurich have products to cover loss happens in natural
disasters.
Site selection helps avoid disasters at low cost, but probably bring
inefficiency; insurance products cost a lot at the beginning, but
transfer all risks from future natural disasters effectively later.
In this case, arbitrage is the focus, which means the lowest cost.
W
hen it comes to the construction and operation of the hub in this
country, costs of tax, renting or buying lands, and dealing with
pollution need considering. To get substantial cash flow for inventory
build-up, financing cost is also important.
For example, with three markets surrounded, China is the best choice
among three.
Since all of them have free trade agreement with Pakinstan and South
Korea, and China has one belt one road strategy that benefit trades to
Kazakhstan, China is slightly better here.