international corporations could make more wise and better foreign investment decision.

　　Relative bargaining power of Fijian government and VGM

　　What is the meaning of relative bargaining power in Fiji’s case, Relative bargaining power is the ability of the party to have more degree influence in a situation. Actually, it can be understood as relative competitive advantages as well, it includes technology innovation, cost leadship, well-deserved reputation and human resource and so on(Michael E. Porter, 1985). In the case of Fiji, Fijian military government’s comparative advantages can be best viewed by evaluating several major factors in view of the mining industry. First one is the resource. As the case mentioned, Fiji has an abundant mineral deposits that have been under-explored, and Fiji has a very large production of gold, gold production from its high-grade mine site had produced 7.5 million ounces of gold in total, for every mine company, it is a big opportunity. In addition, Fijian military government has another competitive advantage----cheap labor. It is estimated that 40 percent of the population was to be on or below the poverty line, this group of people can be the labor source for mining industry, for foreign investors, cheap labor is a very attractive condition. Third competitive advantage grasped by Fijian government is profit advantage, the price of gold is increased by a 50 percent between 2007 and 2009, it will attract more new investments, such as China. The fourth bargaining power is Fijian’s military government itself, the new president Bainimarama declared that there is no parliamentary elections, it means this government has very long time of addministrative power, it can make lots of regulations and laws to interven in VGM’s Fijian gold mining operations, the last relative competitive advantage of government is investors’ competition. In order to reduce dependence on the traditional investments, Fijian’s government is trying to attract new investments in mining industry, the competition among investors will be more intensive, it is better for government to have more choices. By contrast, what relative bargaining powers does Vatukoula Gold Mine plc have? First one is its finance advantage, even at the time of the coup, VGM received the Vatukoula gold mine, it means this company has a strong finance as its back-up. The next competitive advantage is VGM’s experienced and advanced addiministration and operation. Only in three years, the production of gold from the mine was expected to reach 110000 ounces as before. The third bargiaing power for VGM is its policy advantage, VGM persuaded the Fijian government to remove a 25percent gross proceeds tax and a fuel levy, which is a huge saving to VGM, in additon, government reduced the duties on imported equipment and materials for three years. Compared with other mining companies, VGM, definitely, has a lower cost advantage. The last one may be the technology advantage, in order to have advanced mining technology, VGM replaced ageing mining infrastructure, and VGM is always trying to import advanced mining equipments to improve its effeciency.

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