International-Business-Dr-R-Chandran-E-book

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178 International Business- Dr. R. Chandran • The WTO and its agreements have an impact on every economic activity, be it agriculture, trading, service or manufacturing. • World markets are opening up due to lowering of tariffs and dismantling of other restrictions in developed and developing countries to benefit from their comparative advantages. • Domestic markets will be increasingly threatened because of lowering of tariffs leading to freer entry of foreign goods and because of foreign companies’ establishing local manufacturing bases. • Whereas the developing countries will have greater opportunities in sectors in which they have cost bases comparative advantages e.g., textiles, agriculture etc., the developed countries benefit due to the opening of the service sector and tightening of Intellectual Property Regime. • Export markets will become more difficult because of competition among developing countries with similar comparative advantages. • Products from developing countries will face higher quality standards in developed markets particularly in the areas where they have comparative cost advantage. • Every company, whether serving the domestic or international market, will have to undertake an internal exercise to identify factors affecting its international competitiveness in terms of cost as well as quality. It will need to study whether it can remain competitive once the product can be imported freely or tariffs are further lowered or both. • The WTO regime will be of greater benefit to those countries that show ability and skill in the ongoing dialogue. The governments that are in constant touch with their industries and affected groups will be able to clearly determine how and what should be negotiated at multilateral negotiations to the best of their advantage. • International trade is becoming increasingly trade, deregulation and privatization of internal economy have now been strengthened and legalized under the WTO. Countries have no option but to follow this direction. Countries that have understood this have moved swiftly in finetuning their domestic and international trade policies, to create a winning Only for Private Circulation
179 International Business- Dr. R. Chandran environment for industry and business. Those who are still debating the issue or do not understand it clearly will be left behind. Only for Private Circulation
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COMPANY COUNTRY OF ORIGIN REFORM PR
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4. Diplomatic relations 9 Internati
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10. Legal aspects 11. Investment an
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LICENSOR LICENSEE PROVIDE THE RIGHT
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Supply International Business- Dr.
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10. MERGERS AND ACQISITIONS 25 Inte
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12. TURNKEY PROJECTS 27 Internation
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13. COUNTER TRADE 29 International
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a) Home country Economy 35 Internat
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SOCIAL ENVIRONMENT 39 International
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1. POLITICAL RISKS 2. ECONOMIC RISK
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FDI Policy Initiatives 61 Internati
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Bahrain international Business Cent
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(ACUs). These are operational units
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6. Essentials of Trade Finance 81 I
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RATES TT Selling Rate Exchange Marg
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) Constant motivation of subsidiari
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2. Organizations with an Internatio
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3.3 Organization according to Geogr
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Page 159 and 160: Environmental Issues 159 Internatio
Page 161 and 162: AGREEMENTS OBJECTIVE OF AGREEMENT b
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Page 191 and 192: Tariff Barriers 191 International B
Page 193 and 194: D) On the basis of trade relations
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Page 199 and 200: World Bank 199 International Busine
Page 201 and 202: • Macroeconomic & Economic Growth
Page 203 and 204: • Local Currency Financing • Mu
Page 205 and 206: INTERNATIONAL MONETARY FUND 205 Int
Page 207 and 208: ASIAN DEVELOPMENT BANK 207 Internat
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Factor Conditions PURCHASING POWER
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R= 44 ×100 = Rs. 40 110 243 Intern
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3. Freedom loving and self-reliant.
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Japan 257 International Business- D
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Three sources of employees for inte
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Strategy of the organization Need f
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