Nicaragua Canal offers time saving to the ships as it provides a route to the ships to directly cross through Nicaragua without having to turn from the point of the Central America, which is a very long distance to be covered by the ships and proving to be very expensive for the shipping companies. By taking a shortcut the shipping companies can save a lot of cost and also the international trading will be repaid.
According to the liberal's perspective the plan includes airports, seaports, free-trade zones and also rail network for transporting the freight. Through seaports many shipping companies will use the ports of Nicaragua to transport their goods. Nicaragua can also export its goods to the countries in the other part of the world like Asia. The shipping companies will also pay for using the port of Nicaragua. Similarly, the ports will give rise to the jobs as well.
Moreover, through the airports people can visit Nicaragua, which will give boom to the tourism in Nicaragua. Through airports the country will be connected to the whole world and hence, there will be employment opportunities for the locals and also the tourism will sustain the economy of the country.
According to the Nationalism perspective, the government of Nicaragua should have the highest share of the Nicaragua Canal project, as the canal is being built in Nicaragua which will cause many damages to the environment of Nicaragua and also will create lots of problems for the people living in Nicaragua. According to the perspective of Nicaragua, it one of the country which is allowing its land to be compromised and is bearing many losses therefore, it is the right of Nicaragua to gain more share of the profit which will be generated from the canal. In addition to this, Nicaragua is having 51% ownership of the project, but the arrangements of the share are not completely defined by the Chinese company. The Chinese company should completely state the arrangement of the ownership of Nicaragua in the project.
There is also a perspective that Nicaragua should have the rights of controlling the Nicaragua Canal after it has been completed. Similarly, the details of the project should be completely provided to the country and it should be publicized by the Chinese company so that the public of Nicaragua may have the complete knowledge of the project and they are well aware of the advantages and disadvantages of Nicaragua Canal to their country. In addition to this, the company should give information to Nicaragua that how much time will be taken to complete the project, from where is the project being funded as it is very tough for the company to invest on such a vast project. The project will cost $40 billion and arranging this kind of investment is almost impossible for a company. So, if the project is being backed by the Chinese government it should be clearly explained to Nicaragua. Moreover, the company should also explain that what is the proposed route of the canal and what kind of measures the company will be taking to shift the people and wildlife who come in the way of building the canal. The information should also be provided that what kind of consequences this project will impose on the environment of the country. The Nicaragua Lake is very important for the people of Nicaragua and to the wildlife. As it is a source of sweet water in the country so what kind of measures will the company take to save the lake from getting polluted? As the people are quite dependent on fresh water for farming and for other factors. The cost which will be incurred in the project should be properly estimated. The complete detail should be provided by the company in order to brief the benefits of the project to the farmers. The farmers should be briefed that how the company will overcome the challenges of shifting people from their houses and all this is going to be done. According to Nationalism perspective, Nicaragua Canal is very important for the economy of the country, but HKND should fulfill the demands of Nicaragua so that the country can benefit from this project.
According to the Marxist perspective, 50 year concession granted to the Chinese company is not a good move by Nicaragua, as on behalf of this contract the canal routes will cut the protected land of Nicaragua owned by people. In addition to this, there were many issues in the concession. For instance, the Chinese company is unknown by the citizens of Nicaragua, whereas, the government gave rights to the Chinese company to use land of Nicaragua without having knowledge about the company and from where the funds are being arranged..............................
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.
Related Case Solutions & Analyses:
Samoa Tala
Bankers Trust: Global Investment Bank
Chaparral Steel (Abridged)
J.C. Penney (A)
Note on Pension Guarantee Funds
Robertson Maple Farm Inc.
Cavalier Hospital
Commonwealth Business School
Selecting a Pharmaceutical Company from Northeast Asia for Investment
The St. Xavier Healing Touch Hospital
