A Presentation onInternational Business Operation ( General Awareness for Indian Students) : Presentation by
S. Joshi & Arpit A Presentation onInternational Business Operation ( General Awareness for Indian Students)
About this session : About this session Intended for those interested in learning International Business operation (IBO) for interviews
An introduction to IGNOU’s course on IBO
Material for MBA Interview on International Business
Also helpful for those who are interested in improving their General Awareness in International Economics
Content of Presentation : Content of Presentation General Awareness on IB
International Business Environment
International Business Finance
International business & Logistics
Export Import Procedure
Indian foreign Trade
Current Heads : Current Heads IMF :November 1, 2007 – present Dominique Strauss-Kahn France
WB: Robert B. Zoellick 2007–present
Bretton Woods system : Bretton Woods system From where it started
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century. The Bretton Woods system was the first example of a fully negotiated monetary order intended to govern monetary relations among independent nation-states. http://en.wikipedia.org/wiki/Bretton_Woods_system
Keynesian economics : Keynesian economics A very important issue
Keynesian economics is a macroeconomic theory based on the ideas of 20th century British economist John Maynard Keynes. Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and therefore advocates active policy responses by the public sector, including monetary policy actions by the central bank and fiscal policy actions by the government to stabilize output over the business cycle. http://en.wikipedia.org/wiki/Keynesian_economics
Foreign direct investment in India : Foreign direct investment in India Share of top five investing countries in FDI inflows. (2000–2010)
Slide 8 :
Slide 9 : http://en.wikipedia.org/wiki/List_of_countries_by_imports
Slide 10 : http://en.wikipedia.org/wiki/List_of_countries_by_imports
Slide 11 : http://en.wikipedia.org/wiki/List_of_countries_by_exports
Slide 12 : http://en.wikipedia.org/wiki/List_of_countries_by_exports
International business Environment : International business Environment WTO an improvement over GATT arrangements
GATS: salient features and the benefits it brings to developing countries.
The major trends in international trade in recent years
Product-groups have turned out to be the most dynamic product-groups
Recent trends in FDI flows with underlying reasons for the same
International trade in commodities and role of UNCTAD is resolving them http://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Services http://en.wikipedia.org/wiki/United_Nations_Conference_on_Trade_and_Development http://en.wikipedia.org/wiki/IMF (Dominique Strauss-Kahn)
GATS obligations : GATS obligations Two main categories of obligations
General obligations which apply to all service sectors of all Members.
Specific obligations which apply only to service sectors specified in the Member’s “Schedule of specific commitments”. http://en.wikipedia.org/wiki/General_Agreement_on_Trade_in_Services
Slide 15 : WTO GENESIS The General Agreement on Trade and Tariff (GATT) came into existence in 1947
It sought substantial reduction in tariff and other barriers to trade and to eliminate discriminatory treatment in international commerce.
India signatory to GATT 1947 along with twenty two other countries
Eight rounds of negotiations had taken place during five decades of its existence
Contd. Downloaded from http://www.manage.gov.in/
Slide 16 : WTO GENESIS WTO Came into existence on 1-1-1995 with the conclusion of Uruguay Round Multilateral Trade Negotiations at Marrakesh on 15th April 1994, to :
Transparent, free and rule-based trading system
Provide common institutional framework for conduct of trade relations among members
Facilitate the implementation, administration and operation of Multilateral Trade Agreements
Rules and Procedures Governing Dispute Settlement
Trade Policy Review Mechanism
Concern for LDCs and NFIDCs
Concern on Non-trade issues such as Food Security, environment, health, etc. Downloaded from http://www.manage.gov.in/
Slide 17 : BASIC PRINCIPLES 1. NON-DISCRIMINATION
MFN (exceptions RTAs, SPS)
National Treatment (exceptions Government Procurement, GATS)
2. MARKET ACCESS
Reduction and binding of tariffs
General elimination of quantitative restrictions on imports and exports
(exceptions Article XX, XXI of GATT Downloaded from http://www.manage.gov.in/
A. What is the WTO? : A. What is the WTO? The World Trade Organisation (WTO)
Established on 1st January 1995
As a result of the Uruguay Round negotiations (1986-1994)
Located in Geneva, Switzerland
Members: 149 countries (as of 11 Dec. 2005)
At its simplest:
“A global organisation dealing with rules of trade between nations”.
(source: WTO)
Evolution of the WTO : Evolution of the WTO Predecessor of the WTO – The GATT ‘47
The General Agreement on Tariffs and Trade (GATT) 1947 -the first major effort to establish international rules governing trade in goods. Though initially conceived as a provisional legal instrument, it endured for almost 50 years.
It functioned without a formal organizational framework to oversee its implementation as the proposed International Trade Organization (ITO) never came into being and the ITO Charter (aka the Havana Charter) of which GATT was only to be a part, never came into effect.
GATT’s primary focus was the reciprocal reduction of tariffs which later expanded to other trade related areas. In the years leading up to the Uruguay Round, GATT expanded its competence through several rounds of trade negotiations which witnessed the formulation of complex legal instruments on specific aspects of trade, particularly disciplines on the use of non tariff barriers.
The WTO’s functions : The WTO’s functions Administers the WTO Agreements and facilitates their operation and implementation
Provides a forum for trade negotiations among member states on matters covered by the Agreements and for further liberalisation of trade amongst members
Responsible for the settlement of differences and disputes between members
Responsible for periodic reviews of the trade policies of members
Also provides technical assistance and training for developing countries
Cooperates with other international organisations on subjects of mutual interest
Organisational structure of the WTO : Organisational structure of the WTO Ministerial Conference- The apex body for decision making (meets every 2 years). Composition:-ministerial representatives.
General Council- performs the functions of the Conference between meetings and has specific duties assigned to it by the WTO agreements. Composition:- governmental representatives.
The General Council also meets as the Dispute Settlement Body and the Trade Policy Review Body.
Councils for Trade in Goods (oversees GATT), Trade in Services (oversees GATS) and TRIPS which report to and assist the General Council.
Committees on special subjects, Committees functioning under the Councils and Committees for the Plurilateral Agreements.
Membership- developed, developing, least developed countries and
economies in transition.
Decision making is by consensus. If consensus is not possible decisions
will be taken by a majority vote.
World Bank : World Bank World Bank comprises only two institutions: the International Bank for Reconstruction and Development (IBRD)
Terms in IBF : Terms in IBF Transaction exposure
SWIFT
Applications of yield Curve
SDRs http://en.wikipedia.org/wiki/Special_Drawing_Rights
Fortfeiting
Euro Bonds
Currency Swaps http://en.wikipedia.org/wiki/Currency_swap
LIBOR http://en.wikipedia.org/wiki/LIBOR_market_model
http://en.wikipedia.org/wiki/Derivative_%28finance%29
http://en.wikipedia.org/wiki/Foreign_exchange_derivative
India's Foreign Trade : India's Foreign Trade Factors responsible for India not gaining a significant share in global trade
industrial policy of India since 1956; industrial policy since 1991 & its impact on the economy
purpose of formation of SAARC
future prospects of India's trade with the European Union
major items of agricultural exports from India
Indo-Japan and Indo-US trade relations
India -CIS trade relations
export proceeds under Foreign Exchange Management Act
Terms : Terms Buyers' Credit
Special Economic Zones
ECGC And the risks covered http://en.wikipedia.org/wiki/Export_Credit_Guarantee_Corporation_of_India
Electronic Data Interchange (EDI)
Export Import Issues : Export Import Issues Discuss various legal documents which are required for exports from India
Analyze India-SAARC trade and its prospects
Analyze the Indo-US trade prospects
features of Commercial Invoice and Bill of tading : exporting your goods under CIF contract
Basic principles of ECGC operation
Role of Export Import Bank of India
Provisions related to regulation and management of foreign exchange under FEMA Act, 1999.
International Marketing Logistics : International Marketing Logistics Distinguish between Time Charter and Voyage Charter
Dredging Corporation of India
Common Areas of Maritime Frauds
Principles and factors that govern the liner freight rates
Activities and services provided by International Maritime Bureau
Role of Information Technology in Logistics Management
References : References Wikipedia
IGNOU PG programs on International Business Operation