Dispute Resolution in Oil and Gas Industry

Question: Describe about the oil and gas industry? Answer: Introduction The oil and gas industry is one of the most expensive industry. It is a complex industry, consisting of risky operations The parties enter into special contracts. This industry has complex and risky operations, hence susceptible to myriad disputes. The disputes that arise are related to jurisdiction, quality of goods, quantity of goods, insurance, international boundary, expert findings, etc, thus it is necessary to solve the dispute between the parties by appropriate means. ADR (agreed dispute resolution) processes are also called alternative dispute resolution. It can be mediation, arbitration, negotiations, expert determination, conciliation and evaluation. Arbitration is one of the forms of agreed dispute resolutions. It permits the parties to the contract to solve their disputes by arbitrator instead of the traditional court system. To initiate arbitral proceedings, the parties to the contract can refer their dispute to one or more persons - known as the 'arbitrators' or an 'arbitral tribunal' and it is agreed between them to be bound by the decision or award of arbitrators or the arbitral tribunal. International commercial arbitration is of two types, 1) An institutional arbitration and 2) An ad-hoc arbitration (Maniruzzaman, 1993). The institutional arbitration process is one where the parties to the dispute refer their case to the arbitral institution for determination of an award, whereas in adhoc arbitration, the parties file their dispute to an arbitration not managed by any established arbitral institution. There is no dearth of arbitral institutions in the world. There are three main International Commercial Arbitration Institutions viz, the International Chamber of Commerce (ICC), International Cente for the Dispute Resolution (ICDR), International Court of Arbitration the American Arbitration Associations (AAA) and the London Court of International Arbitration (LCIA) (Bower and Young, 1995). The reasons as to why international commercial arbitration is still preferred in spite of development in litigation 1) Neutrality It so happens, that the contracts are between the parties of different nations and different jurisdictions, None of the parties to the contract are ready to be subjected to the jurisdiction of another nation. The countries would want to avoid the advantage of home country, thus resulting in parties choosing neutrality based arbitration. For the purpose of neutrality, the nationality and residence of the arbitrator are considered by the court. The arbitrator's relation to the parties to the contract is also considered in order to make sure that the arbitrator's decision is independent and impartial (Trakman, 2002). The decision of the arbitrator can be challenged in case of absence of independence and impartiality by the public policy executors. 2) Autonomy The main principle of International commercial arbitration is autonomy. It gives autonomy to the parties to the contract, that is not given in litigations. It is provided in Article 19 (1) of UNCITRAL Model Law that subject to the provisions of national and international laws of arbitration, the parties to the contract agree about the conduct of arbitral tribunals proceedings. The parties to the contract are free to concur on the methods of solving their disputes in the United Kingdom. Arbitrators are persons with expert knowledge in the oil and gas industry in comparison to magistrates and honurable judges of courts who lack expertise. In the case of Jivraj v Hashwan (2011) UKSC 40, the Supreme Court held that the autonomy of parties cannot be challenged by overruling the decision of Court of Appeal. There is no limit as to the freedom of parties (Giles, 2011). 3) Speedy disposal and cost effective Arbitration is preferred, as it is speedy and cost effective. Whereas litigation involves high fees and is very expensive, the court processes are lengthy. However, there is a difference of opinion regarding the costs of the arbitration process, as it is believed that the arbitration is costly in comparison to international litigations. In Arbitration, the award is not appealable, except in a few cases, there is less of discovery, so it takes a shorter time, hence, more beneficial in comparison to litigations. It is authored by Watkins and Latham that, delay in arbitration may result due to the arrangement of the arbitrators schedule and even the party schedule (Hwang, 2015). Enforceability of the Award The basic benefit of international arbitration is in respect of an enforcement of an award. As per the New York Convention, it is obligatory on the contracting parties or contracting states to give recognition to the award and also obligatory to enforce an award, except, in case of irregularities that are of a serious nature in procedure or in the integrity of procedure (Ahmed, 2010). The development of resolving international disputes in oil and gas industry by arbitration is attributed to the New York Convention and is regarded as an important treaty in the matter of international arbitration in the commercial sector. Since, it is obligatory to enforce an award, it becomes much easier to enforce an award given in one contracting state into the other contracting states. The most important feature in the matter of arbitration is the principle of separability which exists in an arbitration clause or agreement. It states that, even if, the clause of arbitration in the contract is decla red as null and void, it permits the parties to enforce an award. The principle of separability is incorporated in Article 16 (1) of the UNCITRAL Model Law, as under an arbitral clause, which is a part and constitutes a contract shall be considered as an agreement and irrespective of the rest of the terms of the contract. The decision taken by the arbitral tribunal which declares the contract as null and void will also do not make the arbitration clause invalid (The Merits, the Award and Annulment -- Act IV, Scene I, 2008). This separability doctrine of the arbitration clause is favored and in many cases, defended by the arbitrators. In the matter of arbitration between Texaco Overseas Petroleum Company (Topco) California Asiatic Oil Company v Government of Libya Arab Republic Award of 19th January 1977,17 LL.M 3 (1978) 4 Y. B.Com. Arb. 177 (1979), wherein it was held that the doctrine of separability is widely accepted. It is complicated, expensive and time consuming to enforce the judgement of the court in another country, thus arbitration internationally is the most preferred means of settling disputes as it is speedy and simple (Wortmann, 1998). Confidentiality International Commercial Arbitration is of a great advantage due to its virtue of confidentiality. It is agreed between the parties to the arbitration agreeent to maintain confidentiality of proceedinds, orders, documents and also the awards, whereas in litigation, there is no confidentiality, the proceedings are open to the public, however there is a lot of controversy regarding the confidentiality of arbitration proceedings, as the person who seeks to enforce an award has to apply in court for enforcement, thus it results in proceedings becoming open to public. In the case of Dowans Holdings Dowans SA (Costa Rica) (DOWANS) and Dowans Tanzania Limited v Tanzania Electricity Supply Co. Limited (TANESCO) Arbitration Case No.15947/ VRO. ICC, in this case gave an award favouring DOWANS applied to High Court of Tanzania Dar-es-Salaam. the proccedings acquired huge news media reporting. Thus, the dispute regarding confidentiality may be right (Uk.practicallaw.com, 2016). Non-Adversarial This is one of the most important factor of a non-adversarial approach. As put forth by King and Others, the basic aim is to prevent the disputes, co-operation and solving the problems Its objective is to find the truth and not the dispute determination only. The approach is more multidisciplinary than monopoly. This approach of non-adversarial is based on the principle of win-win. This is most suitable for oil and gas industry, as the parties to the dispute intend to maintain relationships even after the disputes are resolved and award is granted. It is a big advantage in this regards due to this approach of Non-adversarial for maintaining good relationships between the parties to the dispute after the completion of arbitration process. In litigations, the principle of winner-take all is due to adversarial approach, so the question or intention of maintaining relations is not there (Legislation.gov.uk, 2016). Conclusion In short, oil and gas industry prefers an arbitration process, as it enables the parties to select a venue that is neutral, resulting in a neutral process. The most deciding factor for parties to prefer international arbitration despite developments in litigations, is due to party autonomy. As per the NewYork Convention, the parties can enforce an award of an arbitrator, thus the parties to the dispute are given an assurance for choosing arbitration for Redressal of their greivances. And lastly, due to its non-adversarial approach to solve disputes on the basis of principle of win win, it allows the parties to the dispute to maintain good relations, which is very important for continuing the operations in oil and gas industry. However, according to the survey carried out by Professor Loukas Mistelis, Director of the school of international arbitration, eighty percent of the corporation stated that, the main disadvantage of arbitration was huge expenses (Resolution, 2015). Recently, i t was acknowledged by the stakeholders that arbitration is costlier than litigation and that at times it is not possible for the parties to refer the dispute to arbitration for vindication of their rights (Uk.practicallaw.com, 2016). It is not accepted by some that arbitration is more expensive than litigation as they consider some arbitration are cheaper than litigation and some are costlier, in the case of complex disputes, the cost goes up to hundreds or millions in foreign currency. The people who consider arbitration expensive have following reasons in believing so: 1) It is the case that the clause in the contract results in party to a particular arbitration institution, thus they are not able to exercise an option of choosing a low cost arbitration, if the agreed arbitration institution is expensive. Thus, it becomes expensive as the party cannot choose a low cost institution. 2) The second reason attributing to being expensive is the responsibility of the party to pay the arbitrators' fees, administrative fees, fees of the institution, whereas in litigation, Judges are not to be paid by the parties to the dispute, as the government pays them (Academia.edu, 2016) . 3) The arbitration procedures put a burden of lots of extra fees on the party. All the extra fees results in arbitration expensive, however, these extra fees tend to become less costly than the costs of attorney's fees and other legal expenses, where substantial investigations are required. It may be said that there are expensive arbitration and cheaper arbitration and litigation too may be expensive or may be cheaper. In spite of being expensive, international commercial arbitrations are preferred to solve their disputes because of its reliability of enforcement of awards. It may be suggested that in coming years arbitration may develop and has a bright future. It can be further suggested that a mechanism needs to be developed to reduce the arbitration cost. If the parties to the dispute in international contracts conducts a research in the matter of selection of arbitral institution or other body, then in that case it would enable them to know the costs of arbitration (Celik, 2013). They can analyze and get details of the costs of all the arbitral bodies or institutions and choose the one that suits their budget. In view of the given reasons for preferences for International Commercial Arbitration, it seems that arbitration is a more advantageous method of solving the disputes as it enables the parties to maintain good relations at the end of the arbitration. It is very important for the parties to continue to keep good relationships with each other in oil and gas industry. References Academia.edu. (2016). Dispute Resolution in Oil and Gas Industry: International Commercial Arbitration. [online] Available at: https://www.academia.edu/8782565/Dispute_Resolution_in_Oil_and_Gas_Industry_International_Commercial_Arbitration [Accessed 16 Mar. 2016]. Ahmed, M. (2010). Arbitration Clauses: Fairness, Justice and Commercial Certainty. Arbitration International, 26(3), pp.409-420. Bower, D. and Young, A. (1995). Influences on technology strategy in the uk oil- and gas-related industry network. Technology Analysis Strategic Management, 7(4), pp.407-416. Celik, D. (2013). Judicial review under the UK and US Arbitration Acts: Is arbitration a better substitute for litigation?. IALS Student Law Review, 1(1). Giles, J. (2011). Hashwani v Jivraj: London Court of International Arbitration and others intervening: ([2011] UKSC) 40: Supreme Court (England and Wales): Lord Phillips of Worth Matravers PSC, Lord Walker of Gestingthorpe, Lord Mance, Lord Clarke of Stone-cum-Ebony, Lord Dyson JJSC: 27 July 2011. Oxford Journal of Law and Religion, 1(1), pp.298-299. Hwang, M. (2015). Commercial courts and international arbitration--competitors or partners?. Arbitration International, 31(2), pp.193-212. Lando, O. (2007). Culture and Contract Laws. European Review of Contract Law, 3(1), pp.1-20. Legislation.gov.uk. (2016). Arbitration Act 1996. [online] Available at: https://www.legislation.gov.uk/ukpga/1996/23/contents [Accessed 16 Mar. 2016]. Maniruzzaman, A. (1993). Conflict of Laws Issues in International Arbitration: Practice and Trends. Arbitration International, 9(4), pp.371-404. Resolution, O. (2015). Oil and Gas Industry Favours International Arbitration for Dispute Resolution | White Case LLP International Law Firm, Global Law Practice. [online] Whitecase.com. Available at: https://www.whitecase.com/news/oil-and-gas-industry-favours-international-arbitration-dispute-resolution [Accessed 16 Mar. 2016]. Jacobs, K. (2016). ARTICLE:The Convergence of Renewed Nationalization, Rising Commodities, and "Americanization" in International Arbitration and the Need for More Rigorous Legal and Procedural Defenses. [online] Litigation-essentials.lexisnexis.com. Available at: https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplaycrawlid=1doctype=citedocid=43+Tex.+Int%27l+L.J.+359srctype=smisrcid=3B15key=592a6c4c3b6a0f623a2a617ab1d3e26f [Accessed 16 Mar. 2016]. The Merits, the Award and Annulment -- Act IV, Scene I. (2008). Arbitration International, 24(1), pp.77-96. Trakman, L. (2002). Confidentiality in International Commercial Arbitration. Arbitration International, 18(1), pp.1-18. Uk.practicallaw.com. (2016). Practical Law. [online] Available at: https://uk.practicallaw.com/2-510-6528?service=arbitration [Accessed 16 Mar. 2016]. Uk.practicallaw.com. (2016). Practical Law. [online] Available at: https://uk.practicallaw.com/4-502-1378?service=arbitration [Accessed 16 Mar. 2016]. Wortmann, B. (1998). Choice of Law by Arbitrators: The Applicable Conflict of Laws System. Arbitration International, 14(2), pp.97-114.

The Quintessential Manual to Essay Descriptive Topics

The Quintessential Manual to Essay Descriptive Topics Before you finish the essay, we advise you to read it to your loved ones or friends. Normally, most readers receive the best representation of something through the usage of their senses! Sometimes reading something out loud can help recognize any problems that ought to be worked out. It's also essential to have a theme for subject of discussion which can, obviously, be inspired by descriptive articles written by other people. The New Angle On Essay Descriptive Topics Just Released If you would like to compose descriptive essays on a coral reef, we've got additional strategies for you. Seamlessly applying the new complex vocabulary learned in the present level is the best means of exercising language abilities. To start with, your subject needs to be meaningful. Instead, you've got to think of your own subject from a massive pool of possibilities. The Appeal of Essay Descriptive Topics The principal point to be mind ful about in personal descriptive essay is that there shouldn't be any over-exaggeration. There are plenty of qualified essay writers that may cope at any essay in no moment. Your aim should be to compose a great essay, not a perfect one. Read our writing tips and stick to this basic steps to finish your descriptive essay successfully. Descriptive essay always includes creative writing, even when topic appears to be dull and boring at first. Descriptive essays might be difficult if you don't have any clue what to write about. Descriptive essays about a person are a really common sort of descriptive essay also. Writing a great descriptive essay is basically giving a thorough explanation of a specific feature or phenomenon. Before writing a descriptive essay, you need to be able to understand how you will encrypt your essay to meet with the question requirements. The writer should choose this issue of the writing to earn a thesis statement let's get right to it. A conclusion is as crucial as any other portion of the essay and must be carefully and articulately written. Following your conclusion, you should earn a review of your essay by proofreading. The Little-Known Secrets to Essay Descriptive Topics You can put your argumentative essay order with total guarantee to acquire your individual information kept. If you're describing an event, you'll need to compose your paragraphs in chronological purchase. To stick to the subject, you should include things like a description of this issue and why it might be relevant or interesting to the reader. To start, you should have a topic. You may also read your essay to other folks to receive their feedback. When writing a descriptive essay, or all sor ts of essay for this matter, it's always a great idea to read different examples so you may observe samples of the set-up and flow you're aiming for. Get in contact with the reason and the questions you developed in order to stay focused throughout your description. The moment you select the topic which suits you most, remember the reason you write your essay, concentrate on the most essential details to tell about in your text and don't neglect the value of senses and feelings in your essay. The value of reading through your essay is it allows you to recognize the mistakes and keep a great tone throughout your work. After you have chosen a topic to write about, it's important to get started thinking about what sensory details you are able to include to help your readers feel as though they are experiencing what you're writing. The sort of essays can be challenging and time-consuming, and is the main reason why most students decide to find descriptive essay writing help from online platforms. You can't ever be too thorough when it has to do with reading the essay over again and checking for any places that should be reworked. If you're likely to compose a descriptive paragraph or essay, there are some things you should keep in mind while writing. The second sentence is a good example of descriptive writing. In certain situations, it's quite tricky to be descriptive and creative at the identical moment. If you're writing about an individual or a place you should order the paragraphs so you start off in a general fashion and write more specific details later.

How I Spent My Christmas Holiday - Guide to Writing an Essay on the Topic

How I Spent My Christmas Holiday - Guide to Writing an Essay on the TopicSo you want to know how I spent my Christmas holiday, well, this is the ultimate guide to writing an essay on the topic of the holiday. This article will give you a few tips that will help you get started right away and allow you to spend your next holiday as you want, not as the assignment has it!In order to be able to spend your next holiday the way you want to, start by writing down a list of questions about the holiday. Write down questions like why did I get married? or why do I love my husband?One thing that's very important is to take note of every single thought you have had during the entire holiday. Of course, it's true that there will be times when you're unable to think straight. But, when you realize that you were thinking about the things that you wanted to say, keep these thoughts in mind. This will help you in the end, right?After that, it's time to create a goal for yourself. Create a goal, writ e down what it is and ask yourself if you really have a goal, or if it's just another goal you've created.Once you have decided on a goal, now is the time to start working towards achieving that goal. Start with the activities you've already planned for the holidays, then move on to some other activities you may want to plan. By doing this, you'll make it easier for yourself to stay focused throughout the holiday.After that, it's time to write the essay. It's much better to write the essay first and then go through it and rewrite the essay, then submit it.Make sure you make this process as easy as possible, and most importantly, enjoy the holiday! Write and enjoy!

Can I Submit an Essay For Harvard Supplement?

Can I Submit an Essay For Harvard Supplement?To answer the question, 'Can I Submit an Essay for Harvard Supplement', there are many choices to make in researching college essay writing. To answer the question more accurately, the answer is 'Yes'. Here is an outline of where to begin.One of the first things you will want to do is to meet the right college essay writers. There are several websites that have a list of college essay writers. You should pay special attention to where these writers list and describe themselves on the Internet.Another thing you will want to do is to look at what scholarship money scholarship writers may be able to offer. The majority of college essay writers are passionate about their subject matter and will give you more than enough to write an essay about. Most scholarship writers are busy working on a scholarship proposal. You will be able to find many opportunities to meet these writers.You may want to check out what writers have written for the online reading community. A lot of these writers will not charge you a fee to publish a piece of your writing. It is a great idea to check this out to see who is able to write a piece of work for you.You may want to talk to former students who may have contact information. If they do not, this could be a good idea to find out who they are and get in touch with them. You may be able to get their contact information without having to pay for it.There are other websites that have sites that offer other opportunities to communicate with these writers and some of these writers will be willing to write an essay for you. You will want to check out those websites for your essay writing needs. You can find online community members that are willing to help you write an essay for Harvard Supplement.This is a great place to see if you want to meet with writers to get the information you need. You can find writers on the Internet that are willing to take on your essays for Harvard Supplement. You will want to do your research to make sure you are making the right choice. A careful choice can make all the difference in your college essay writing.

The Benefits of Writing a Duke Ellington Sample Essay

The Benefits of Writing a Duke Ellington Sample EssayThe Duke Ellington Sample Essay is designed to help students tackle the composition and analysis part of Ellington's 'big music.' Many high school students are forced to write a student paper during their high school career, but there are some great reasons why a Duke Ellington Sample Essay is a great writing project for high school students. Here are five great reasons why writing a Duke Ellington Sample Essay is an important requirement for high school students to gain academic credit.First of all, Ellington's music is phenomenal. His writing style is highly evocative and he combines these influences with other stylistic ingredients that lend his music an undeniably powerful personality. Every Ellington composition and improvisation have its own individual personality. It is a large undertaking to include Ellington's style of writing in the high school composition assignment, but it is an incredibly rewarding accomplishment. Not only do students get to pick out notes that are familiar to them, but they also get to discover new creative ways to compose as well.Secondly, the student writer will learn how to pick out notes and strings of notes in the composition. The Duke Ellington Sample Essay has a specific structure to it that can be used in many different types of composition. Any student who is writing a Duke Ellington Sample Essay will be able to use this structure to explore different ways to formulate the compositions that they will ultimately write. This feature is especially helpful for students who are trying to achieve an idea or a theme for the composition, but have never written music before.Thirdly, the Duke Ellington Sample Essay includes plenty of examples of music that students can study and discuss in the composition. Unlike a typical composition assignment, which only contains two or three main pieces, Ellington will include dozens of examples of music. This allows students to engage in as much discussion as they want about the music and also allows them to create their own original compositions. Fourthly, the Duke Ellington Sample Essay is organized in a way that enables students to immediately follow a particular theme throughout the composition. The components are carefully arranged so that the listener will have a feel for the music while he or she listens to the piece. Every student will be able to find their favorite way to listen to the piece.Fifth, the Duke Ellington Sample Essay can be submitted as a finished work to a college or university after the student has graduated. In fact, many colleges and universities recognize that students who have created a Duke Ellington Sample Essay are good writers. This recognition makes it much easier for a student to continue studying with their high school's college or university.While a Duke Ellington Sample Essay is not particularly difficult to complete, it does require quite a bit of time and work. Furthermore, while many college or university administrators view a quality, written composition as an important aspect of graduation, they usually encourage the students to work hard and to show results in the form of scores in other areas. In a way, this makes the Duke Ellington Sample Essay much more valuable than other high school composition assignments.

ATOM PRIOR TO 1900 essays

ATOM PRIOR TO 1900 essays In the 5th cent. B.C. the Greek philosophers Democritus and Leucippus proposed that matter was made up of tiny, indivisible particles they called atom, or in Greek "a-tomos". The reason why they assumed this is because nothing can come from nothing. Democritus believed that all atoms were firm and solid, but they could not all be the same. If all atoms were identical, there would be no satisfactory explanation of how they could combine to form everything in different shapes. Democritus concluded atom with these ideal qualities: invisible because of their extremely small size indivisible as their name indicates eternal because they are perfect surrounded by an empty space (to explain their movement and changes in density) having an infinite number of shapes (to explain the diversity observed in nature) Around 1803, John Dalton (1766-1844) developed the first useful atomic theory of matter. In the course of his studies on meteorology, Dalton concluded that evaporated water exists in air as an independent gas. Solid bodies can't occupy the same space at the same time, but obviously water and air could. Dalton reasoned that if the water and air were composed of discrete particles, evaporation might be viewed as a mixing of water particles with air particles. He performed a series of experiments on mixtures of gases to determine what effect properties of the individual gases had on the properties of the mixture as a whole. While trying to explain the results of those experiments, Dalton developed the hypothesis that the sizes of the particles making up different gases must be different. In 1808 Dalton's A New System of Chemical Philosophy was published. In this book he listed the atomic weights of a number of known elements relative to the weight of hydrogen. His weights were not ent irely accurate but they form the ba ...

Regulation and Management in the Global Community The WritePass Journal

Regulation and Management in the Global Community WRITEPASS CUSTOM ASSIGNMENT WRITING DISSERTATION Regulation and Management in the Global Community ). As a result of this governance, the export levels have decreased and the employment levels have increased (Trading Economics, 2012). In general, the political situation in China is unstable, where the companies close their businesses. Economic As it has been stated in the previous paragraph, the unemployment rate has increased from 4% in 2008 to 4.1% in 2012 (Trading Economics, 2012). This is regarded to be pessimistic in the context of economic development. The country’s Gross Domestic Product (GDP) is also not optimistic and has decreased from 2.5% in 2011 to 1.5%, further growing to 2.2% (Trading Economics, 2012). This might be interconnected with the decrease in exports as demonstrated in the paragraph above. Trading Economics, (2012) suggests that level of export is relatively sporadic, thus changing frequently. This implies that there is a general pattern of growth in the export levels; however, the pace of it is regarded to be slow. This has been driven by the recession, which has decreased the speed of export growth, in 2009.   The latest figures, as of July, 2012, demonstrated that the level of export is 1800 million USD per month (Trading Economics, 2012). China’s inflation rate is reported to be – 1.7% as of December, 2012. The average inflation rate is 4%, which the government prefers to retain (CNN Money, 2012). At this rate, the country experiences a healthy growth and economic development. However, the increase in the inflation rate implied that the prices for food increased dramatically. This suggests that the prices for food has increased to almost 2%, which affects the operations of businesses and general consumer confidence negatively (CNN Money, 2012). In a long term, there is a high risk of further inflation rate escalation, which may further worsen the economic growth and consumer confidence. Social It has been estimated that due to the political system in China, there are certain restrictions placed within the social area. It is especially attributed to the freedom of the word (Telegraph, 2012). This implies that the content on the Internet is being tracked, which suggest that there are certain restrictions placed on the content, that may be shared with others on the Internet. Another social aspect is attributed to the healthy lifestyle of the Chinese people. This is the actual lifestyle where the Chinese tend to consume only the fresh food and to be engaged in sports (Deseret News, 2012). With regard to nutrition, the main part of their meals are vegetables. This has been a traditional evolution of the Chinese nutritional culture (Deseret News, 2012).   Despite that, the analysts predict a great demand for fast food outlets. In 2002, only 2% of the Chinese were willing to visit the fast food outlets (Economist, 2002). The majority of fast food outlets are comprised of Western fast food outlets, namely 80%. The trend demonstrates that the Chinese are willing to consume luxury, trendy, innovative, modern and exotic products (Miller, 2004). This trend, in turn, drives the demand for fast food products. The teens are more prone to the adoption of this trend. This implies that they perceive the fast food outlets as fashionable and trendy (Eckhardt and Housto n, 2001). It is also associated with the design of the fast food outlets, especially of Western origin. For instance, the seating arrangement is for 2 people, which is characterized as more for dating purposes, contrary to the collective seating design for 8 people, which is more popular among the Chinese restaurants (Eckhardt and Houston, 2001). Technological China is regarded to be advancing in the Internet penetration. This implies that the rate of penetration in China is above average, namely 34.3% (China Internet Watch, 2012). China’s total broadband penetration rate has increased for 30% , thus totaling in 98.3% (China Internet Watch, 2012). However, despite this increased broadband penetration rate, the Internet speed is only 100.9 KB/s, which is quite low in comparison to the world’s average Internet speed (China Internet Watch, 2012). One of the most important advancements is attributed to the increase in popularity of Internet access through mobile phones. This suggests that 66% of Chinese consumers tend to access the Internet through mobile phones (China Internet Watch, 2012). One of the most critical aspects, related to the social media is the control over the content, which is posted online (Telegraph, 2012). This implies that the government is watching over what is posted online in alignment with the allowed content. As the sources suggest, it is not on the way of being changed in the future   the pattern (Telegraph, 2012). This suggests that the control over the content has become even stricter as a result. The breach of the rules may result in being taken to Court, since this is considered to be an offence (Telegraph, 2012) as official governmental sources depict, this is maintained in order to prevent the promotion of a pornography, unneeded panic and other types of accusations. The majority of social media websites have been already blocked as a result of the sensitivity of discussed political topics (Telegraph, 2012). Environmental From the environmental perspective, China is among the countries that produce the largest amount of CO2 emissions (BBC News, 2012). It   has been estimated that China is among the countries with high risk in the area of environmentalism. This suggests that China should adopt the strategies in order to become more environmentally concerned (BBC News, 2012). Given the large level of industrialization, the adoption of environmentally-friendly strategies should be integrated as the population of China becomes more environmentally concerned. This is illustrated in the recent demonstrations, that were produced in order to address the environmental problems in China (BBC News, 2012). One of the examples of civil protest was demonstrated in August 2011, where 12,000 people participated in the protest against the development of the chemical plant in Dalian, China (BBC News, 2012). Legal From the legal perspective, China’s government imposes a lot of restrictions on foreign companies. This has been mainly due to the fact that the Chinese economy has been closed for the investments for a long time. Even though, currently it has become opened for FDIs (Foreign Direct Investments), there are still restrictions imposed on the activities of foreign companies in China. It is important to have a knowledge about these differences in order to benefit from the management of foreign company’s operations. Cultural Differences According to Hofstede’s model, there are differences between the cultures that tend to affect the operations in the foreign countries. Given the entry to the Chinese market, the model should be applied to analyse the differences between the UK and China. The model is comprised of the evaluation of the following variables, namely power distance, long term orientation, uncertainty avoidance, masculinity/femininity, individualism/collectivism. As a result, it has been estimated that there are great differences in some of variables, namely power distance index, individualism/collectivism and long-term orientation (Hofstede’s Official Website, 2012). Power Distance index demonstrates that the British society is for the minimization of the inequalities among the different layers of society. However, the estimates are different among the working class and high society. This is specifically attributed to the fact that the British society has quickly been revolutionized, where the high society has lost its significance. Contrary to that, the Chinese strict hierarchical system is perceived to be a normal attribute of a corporate and community’s life. This suggests that the Chinese are used to the power abuse, as a result of a strong respect towards the superiors (Hofstede’s Official Website, 2012). Low rank in the individualism score demonstrates that China is a collectivistic culture. This implies that the people within Chinese culture tend to pursue the interests of the groups rather than their own interests. This also contributes to the increased respect towards old members of the family and superiors (Hofstede’s Official Website, 2012). This also affects the operations within the organization. This suggests that there is a low commitment to the company, whereas the relationships are not developed outside the circle of colleagues and/or friends. UK culture is regarded to be more individualistic. This implies that the members of this culture tend to be concerned solely about their own interests. The main concern in the British culture is the achievement of their own personal fulfilment as opposed to the collective thinking, which is practiced in China (Hofstede’s Official Website, 2012). With regard to long – term orientation, the UK is quite different from China. This suggests that the UK is a culture with short term orientation, thus suggesting a large focus on the quick results, in the context of business vision. This implies that there is no long term vision for companies, where the management tends to focus on â€Å"NOW† and â€Å"HERE†. China is quite different from the UK, since this culture is characterized by being long-oriented (Hofstede’s Official Website, 2012). This implies that the main postulates that are practiced in the culture are perseverance and determination. There is always a long term vision, which result in the investments being made in the long term projects. The main characteristic of this culture is that the decisions are based on the level of confidence, which is either full or none. Contrary to the UK culture, there are no probabilities in making the decisions. Masculinity index is regarded to be the same in both Chinese and British cultures, namely 66 points (Hofstede’s Official Website, 2012). This suggests that the score is quite high and the cultures are perceived to be masculine. This implies that the members of these cultures are success driven. The characteristics of ambition and large amount of work is anchored to both these cultures. The uncertainty avoidance is low in both British and Chinese cultures. This suggests that the members of these cultures are comfortable with living in the uncertain settings. This suggests that the members of these cultures are highly adaptable to the new settings since they are used to the uncertain situations. Recommendations As a result of the above demonstrated findings, there are some recommendations to address. First of all, given the large differences in both British and Chinese cultures, the market entry should employ the features of adaptation. This implies that the British fast food company should present the menus that would be adaptable to the tastes of the Chinese consumers. However, the elements of standardization should be visible, since the Chinese consumers are attracted to the innovative design, products and services (Chung, 2003). In order to appeal to the tastes of the Chinese consumers, it is also important to integrate the environmental program in order to demonstrate the integration of Corporate Social Responsibility strategies and tactics (BBC News, 2012). Given the popularity of environmental concern, this may result in the development of positive brand associations. Given the recent technology boom, the Internet might become the main medium for promotion and communication. However, the Internet related strategies must be analysed on the subject of content prior to integration, in order to avoid any legal issues. In general, the main market entry is proposed to be a joint venture, where the risks and benefits are divided 50/50. This strategy is perceived to be the most popular for entrance in the similar to Chinese markets (Kotler and Armstrong, 2010). The only major issue is attributed to the choice of the beneficial partner. This implies that there might be a dissonance in objectives of both companies. Therefore, the selection process must be carefully planned and enhanced research must be applied. Conclusion This report was developed in order to present the analysis of the external environment in China and possible recommendations and strategies, which are addressed on the basis of cultural differences. It has been estimated that there are a lot of differences between China and the UK. With regard to risks, Chinese political and economic system suggests that there are some risks however these are of a moderate character. As a result, the entry might be quite successful if maintained appropriately. The main areas of risks are attributed to the technological areas and possible legal issues, that might arise, as a result of the recent reforms. Finally, there are some concerns in the cultural areas. These suggest that there are differences in the hierarchical systems, long term orientation and individualistic characteristics. As a result, these should be considered when planning the market entry strategies. References BBC News. (2012). 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