Global Trade Environment

By Dhwani Shah Megha Jagtap Parth Purohit
AGENDA
What is Globalization? The benefits of Globalization. The key parameters of global trade environment International Institutions Examples of global trade.
Globalization
Integration of economies and societies through cross country flows of information, ideas, technologies, goods, services, capital, finance and people Dr. C. Rangarajan
Definition:
Global Business is defined as Any commercial
transaction taking place across boundary lines of a sovereign entity. It may take place either between countries or companies or both.
Benefits Of Global Trade

Proper use of resources New business opportunities Technology advantages Helps in managing product life cycle Helps as growth strategy Availability of quality products Earning foreign exchange Helps in mutual growth Investment in infrastructure
Key Issues & Parameters In The Trade Environment of Global business
Political Economic Exchange control Socio-cultural Financial Legal Technological Competitive Infrastructural Labour-related
Political
Applicable more in unstable countries Home country Host country Global Mix of Economic, Legal & Socio-cultural elements
Economic Home country Host Country Size of the market Gross Domestic Product Industrialization Banking Purchasing Power Foreign Exchange Income Level Economic Diversity Global Level
Socio-cultural National Taste
Language
Values and Beliefs Demography
Literacy Rate
Female workforce Double income families
Impulse Buying
Legal Home Country Laws:
Host Country Laws:

International Laws: International business Laws:
GTE (Overview)
Environment-factors vary from country to country Also from product to product Even region specific variation Focused analysis of dynamics of these factors crucial To formulate business strategies Lack of such analysis have affected even large and resourceful MNCs
Factors Influencing Global Trade

Entity Environment Activation End Result
Economic
Internati onal Firm
Manufacturing
Political Investment Socio-cultural Legal Internat ional Destina tions
Trading
Technological Competitive Marketing
International Institution
World Bank International Monetary Fund Asian Development Bank International Maritime Organization International Labor Organization
Purpose Of International Institution

To increase international relations To promote education, healthcare For economic development Environmental protection Human rights Conflict resolution throughout a region
World Bank
The World Bank is a part of World Bank Group (WBG), was formally established on 27th December, 1945, following the ratification of Bretton Woods Agreement. The concept was originally conceived at the United Nations Monetary and Financial Conference in july of 1944. It is a family of five international organizations responsible for providing financing and advice to countries for the purpose of economic development and the elimination of poverty.
Consists: International Bank for Reconstruction and Development (IBRD) International Finance Corporation (IFC) International Development Association (IDA) The Multilateral Investment Guarantee Agency (MIGA) The International Centre for the Settlement of Investment Disputes (ICSID)
Areas of Operation:

Agriculture and Rural Development Conflict and Development Development Operations and Activities Economic policy Education Energy Environment Financial sector Gender Governance
Health, Nutrition and Population Industry Information & Communication Technologies International Economics and Trade Law and Justice Private Sector Public Sector Governance Social Development Trade, etc
International Finance Corporation (IFC)
Purpose:
Promote and open competitive markets in
developing countries Support companies and other private sector partners Generate productive jobs and deliver basic services Create opportunities for people to escape poverty and improve their lives
International Development Association (IDA)
Purpose:
To reduce poverty To boost economic growth
Reduce inequalities
Improve living conditions
International Monetary Fund

Purpose:
To promote international monetary cooperation Exchange stability Orderly exchange arrangements Economic growth High levels of employment To provide temporary financial assistance to countries
to help ease balance of payments adjustments
Asian Development Bank

ADB is multilateral development financial Institution owned by 67 members, 48 from the region and 19 from other parts of the globe. Improving the welfare of people in Asia and Pacific particularly the 1.9 billion who live on less than $2 per day. Reduce poverty Policy dialogue, Loans, Technical assistance, Grants, Guarantees, Equity Investment.
International Maritime Organization

The convention establishing the IMO was adopted in Geneva in 1948 and the I.M.O first met in 1959. Purpose:
To develop and maintain a comprehensive regulatory
framework for shipping To improve its practices and operations including safety, environmental concerns, legal matters, efficiency, etc
International Labour Organization

Purpose:
To promote rights at work
Encourage decent employment opportunities Enhance social protection
Strengthen dialogue in handling work-related
issues
International Telecommunication Union

Purpose:
To promote the adoption of a broader approach to
telecommunications issues in global information economy and society.
The General Agreement on Tariffs and Trade (1947); WTO (1995)

The General Agreement on Tariffs and Trade (1947); WTO (1995) GATT is a legally binding codification of rules for the conduct of trade among its member states. GATT/WTO is located in Geneva, Switzerland and has provided the international infrastructure and the locus for all multilateral tariff-reduction negotiations since World War II.
Purpose: To maximize growth in world trade and the global economy through a reduction in trade barriers pursued on a non-discriminatory basis.
Illustrations On Global Trade Environment

Apple failure in India Kelloggs failure in India Wall-mart failure in China Failure of Barbies boyfriend KEN in India. Fashion Caf: from catwalk to catfights Electrolux in the United States Parker Pens in Mexico American Airlines in Mexico Vicks in Germany Chevy NOVA launched in Mexico - there in Mexican it's meaning is nothing due to which the product named NOVA failed in Mexico.

Global Trade Environment

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Global Trade Environment

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By Dhwani Shah Megha Jagtap Parth Purohit

Benefits Of Global Trade

Key Issues & Parameters In The Trade Environment of Global business

Socio-cultural National Taste

Legal Home Country Laws:

Host Country Laws:

Factors Influencing Global Trade

Political Investment Socio-cultural Legal Internat ional Destina tions

Technological Competitive Marketing

Purpose Of International Institution

International Finance Corporation (IFC)

International Development Association (IDA)

International Monetary Fund

to help ease balance of payments adjustments

Asian Development Bank

International Maritime Organization

International Labour Organization

Strengthen dialogue in handling work-related

International Telecommunication Union

telecommunications issues in global information economy and society.

The General Agreement on Tariffs and Trade (1947); WTO (1995)

Illustrations On Global Trade Environment

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