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Answer Sheet For The Subject of International Business
Answer Sheet For The Subject of International Business
Ans2-WTO-The International trade is based on multilateral trading system. It is a system involving trade amongst various countries. it is therefore, necessary that the rules and regulation of such system are properly define. In the year 1947, an attempt was made by 23 countries in the world to define the basic norms for conduct of international trade. The trade negotiation amongst these 23 countries in multilateral treaty called general agreement On Traffic and Trade (GATT) in the year 1948. The GATT was established to secure the conduct of international trade based on the principles of non-discrimination, transparency and liberalization. Function of World Trade Organization (WTO) * Administering World Trade Organization (WTO) trade agreement * Forum the trade negotiation * Handling trade disputes * Monitoring national trade policy * Technical assistance and training for developing countries * Co-operation with other international organization (like help from World Bank and IMF). ANS3- International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more regions, countries and nations beyond their political boundary. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons.[1] It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction .A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called multinational corporation (MNC) or transnational company (TNC). Well known MNCs include fast food companies such as McDonald's and Yum Brands, vehicle manufacturers such as General Motors, Ford Motor Company and Toyota,
Starting from a baseline of less than USD 1 billion in 1990, a recent UNCTAD survey projected India as the second most important FDI destination (after China) for transnational corporations during 2010-2012. As per the data, the sectors which attracted higher inflows were services, telecommunication, construction activities and computer software and hardware. Mauritius, Singapore, the US and the UK were among the leading sources of FDI. FDI for 2009-10 at USD 25.88 billion was lower by five per cent from USD 27.33 billion in the previous fiscal. Foreign direct investment in August dipped by about 60 per cent to aprox. USD 34 billion, the lowest in 2010 fiscal, industry department data released showed. [6]In the first two months of 2010-11 fiscal,FDI inflow into India was at an all-time high of $7.78 billion up 77% from $4.4 billion during the corresponding period in the previous year. ANS8- UNO-The United Nations is an international organization designed to make the enforcement of international law, security, economic development, social progress, and human rights easier for countries around the world. The United Nations includes 192 member countries and its main headquarters are located in New York City. Functions of the United Nations Today As it was in the past, the main function of the UN today is to maintain peace and security for all of its member states. Though the UN does not maintain its own military, it does have peacekeeping forces which are supplied by its member states. On approval of the UN Security Council, these peacekeepers are often sent to regions where armed conflict has recently ended to discourage combatants from resuming fighting. In 1988, the peacekeeping force won a Nobel Peace Prize for its actions. In addition to maintaining peace, the UN aims to protect human rights and provide humanitarian assistance when needed. In 1948, the General Assembly adopted the Universal Declaration of Human Rights as a standard for its human rights operations. The UN currently provides technical assistance in elections, helps to improve judicial structures and draft constitutions, trains human rights officials, and provides food, drinking water, shelter, and other humanitarian services to peoples displaced by famine, war, and natural disaster. Finally, the UN plays an integral part in social and economic development through its UN Development Program. This is the largest source of technical grant assistance in the world. In addition, the World Health Organization, UNAIDS, The Global Fund to Fight AIDS, Tuberculosis, and Malaria, the UN Population Fund, and the World Bank Group to name a few
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Ans6= The continuing growth in the international job market is becoming more and more challenging as expectations for new international job and career opportunities rises. A lot of people are considering international business careers mainly because of the great opportunities and rewards it offers to the qualified. International business careers are not only rewarding and challenging, but fast paced as well. If youre considering an international career then you may want to check on a few things to help you decide if you have what it takes for working in an international job environment: Are you judgmental? The most important factor in international business careers environment is the ability to accept and work within the customs, beliefs, culture, and attitudes of a particular country. Having a strong personality and personal background experience which makes a majority of successful business executives may be the worst attitude in an international business environment. The only way to succeed in international business careers is to build strong relationships that encourage local employees to cooperate. Are you the task-oriented type or the people-oriented type? Accomplishing corporate goals and objectives are primary in an international assignment, however many cultures throughout the world considers people, family, and community as the most important aspect and so being too task-oriented may jeopardize productivity. Knowing everything possible about the culture you are possibly going into is a good place to start to identify whether or not you can accept this culture. Do you welcome changes or are you a flexible person? Being open to unexpected challenges and situations which may sometimes be uncontrollable, is one of the important qualities a person considering international business careers must possess. Is the thought of family and friends around you more appealing? International business careers means a little sacrifice on the family and friends, as it is less likely in the present economic environment that companies will pay for family relocation. Nowadays, international business careers contracts have been shortened to the 12-18 month contracts than
International Business careers opens a wide range of great opportunities for people, but knowing and understanding what you are getting into is very important, this will determine your success and failure in your chosen field. Ans-3-How important is privatisation in India. The first order issue is that of competition policy. When the government hinders competition by blocking entry or FDI, this is deeply damaging. Once competitive conditions are ensured, there are, indeed, benefits from shifting labour and capital to more efficient hands through privatisation, but this is a second order issue.The difficulties of governments that run businesses are well-known. PSUs face little "market discipline". There is neither a fear of bankruptcy, nor are there incentives for efficiency and growth. The government is unable to obtain efficiency in utilising labour and capital; hence the GDP of the country is lowered to the extent that PSUs control labour and capital.
When an industry has large PSUs, which are able to sell at low prices because capital is free or because losses are reimbursed by periodic bailouts, investment in that entire industry is contaminated. This was the experience of Japan [ Images ], where the "zombie firms" - lossmaking firms that were artificially rescued by the government - contaminated investment in their industries by charging low prices and forcing down the profit rate of the entire industry. Further, in many areas, the government faces conflicts of interest between a regulatory function and an ownership function. As an example, the Ministry of Petroleum crafts policies which cater for the needs of government as owner, which often diverge from what is best for India. There is a fundamental loss of credibility when a government regulator faces PSUs in its sector: there is mistrust in the minds of private investors, who demand very high rates of return on equity in return for bearing regulatory risk. These arguments have led many economists to advocate large-scale privatisation, so as to clear the slate, and get on with the task of building a mature market economy. The role model in this regard is Germany [ Images ]. After the collapse of communism and the unification of East and West Germany, an auction was held for selling off all East German PSUs. Negative bids were permitted; i.e. the government was willing to even pay a private manager to take over a loss-making business if no higher bid was to be found. Through this, Germany was able to erase the heritage of socialism, and get on with the task of running an efficient market economy. While such a game plan is entirely feasible in India, the present Parliament desires no privatisation. Does this mean that in the immediate future, progress in economic policy on privatisation must merely wait for the next elections? When we look at various industries in India, the gains from privatisation are quite heterogeneous. In some cases, there are hopelessly loss-making PSUs. These operate in industries where private and foreign firms have been able to come in, and the PSU has been left far behind the standards of quality and price set by the private sector.