NFC in Mongolia Harvard Case Solution & Analysis

NFC was a public company listed on the Stock Exchange of China. It had operations in Zambia, Iran and Kazakhstan before coming to Mongolia. Most of the previous projects were turnkey operations. Mongolia became the first country in which it is an international joint venture (IJV). The joint venture (JV) agreement was signed in 1998. Due to numerous delays, it was not until 2005 that he finally started to work. In mid-2007, the Mongolian Parliament has notified the joint venture, that his 5-year 0 percent and 5-year 50 percent tax period (starting in 2005) has been canceled. Not only do you have to pay the full tax, starting in 2007, he had to pay the amount of tax shall be exempted from the 2005 and 2006. Within the joint venture, association desired another pay raise, despite the fact that wages were increased by 10 percent in just six months ago. Outside the joint venture, local shipping company has threatened to block the gates of the plant, if the SP has not signed a contract with them delivered on their terms. "Hide
by Liu Jiang, Michael Frechette Dongmei W, Xia Wang, Maria Cheng Source: Richard Ivey School of Business Foundation 13 pages. Publication Date: June 15, 2009. Prod. #: 909M09-PDF-ENG

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