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Pest factors effecting international business


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  • The Indian government is likely to temporarily stop BlackBerry services in the country if Research In Motion (RIM), the maker of the BlackBerry smartphone does not address New Delhi's security concerns. The home ministry has called a meeting of mobile operators on Thursday to issue a temporary ban on BlackBerry services in the country if RIM does not share encryption details by a deadline that will be set during the meeting, according to government sources. Indian security officials last month warned the Canadian RIM that it would have to cease operations in the country if it failed to adequately address security concerns over BlackBerry's encrypted data that can be misused by terror groups and cannot be monitored.
  • As per the foreign direct investment (FDI) policy for multi-brand retail trading, at least 30 per cent of the value of procurement of manufactured/processed products shall be sourced from Indian ‘small industries’.Several global retailers have raised their concerns over the sourcing restriction. The world’s largest retailer Walmart has expressed its inability to the government on meeting the sourcing norm in the multi-brand segment that requires 30 percent procurement from small industries, stating it can procure only about 20 percent.
  • Ban on imports of certain American poultry products, including meat and eggs. The US has called the ban as "unjustified" health-safety worries.The US had disputed India’s decision last year for banning import of poultry and poultry products on unscientific had argued that the ban imposed on countries' reporting outbreaks of low pathogenic notifiable avian influenza had no basis in science and was not supported by the World Organisation for Animal Health. According to the sources in the Agriculture Ministry, to safeguard the interest of Indian farmers, the government has imposed an import duty of 104 per cent on poultry items from America. the US may request the establishment of a WTO dispute settlement panel.
  • Research pinpoints key elements of an economic environment. These include, among many others, income, purchasing power, market size, market type, and economic freedom. Reducing the oft-overwhelming idea of an economic environment to its more easily understood elements, as this chapter shows, provides useful building blocks. Then, with that understanding in mind, we can analyze how they interact in building the economic environment.Figure 4.3 also highlights the importance of applying a systems perspective—namely, that linkages among elements mean that change in one element in the economy affects other parts.Key economic forces include:• Price stability• Capital markets• Factor endowments• Market size• Public policy
  • A market economy is an economy in which decisions regarding investment, production and distribution are based on supply and demand,[1] and prices of goods and services are determined in a free price system.[2] The major defining characteristic of a market economy is that decisions on investment and the allocation of producer goods are mainly made through markets.[3] This is contrasted with a planned economy, where investment and production decisions are embodied in a plan of production.A command economy, or a planned economy, is an economic system where the main economic decisions (such as allocating scarce resources like labour, capital, soil and natural resources) are taken by a central body; which is usually the government.A command government is a economic system where the government takes control over all the land and keeps it all to themselves. The government tells what to produce how to produce the goods/services and whom may get the goods and services. The government makes all the laws.Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies
  • What Does ISTP Canada Do? (INTERNATIONAL SCIENCE AND TECHNOLOGY PARTNERSHIPS IN CANADA)ISTP Canada aims to:Encourage domestic competitiveness through the transfer of technology and knowledge resulting from global S&T partnerships;  Foster international S&T partnerships and collaborative research in all sectors;Accelerate the commercialization of research;Access international technologies for Canadian companies;Promote Canadian R&D capacity and Canada as an ideal destination for foreign technology-based investments;Encourage the international mobility of Canadian researchers; and  Endorse Canada as a career destination for foreign researchers and highly qualified personnel.              
  • Transcript

    • 1. Presented by: Siby Varghese(97) Krishna Yagnik(120) Harsh Sonpal(103) Kaushal Solanki(101) Ashwini Pathak(64) Shruti Pillai(67)
    • 2.   What is International Business? Features of international business: - Large Scale Operations - Integration of Economies of many countries - Dominated by developed countries and MNC’s - Keen competition - International restriction - Sensitive nature
    • 3.        North America Advanced Mixed Economy Member Of WTO,APEC, NAFTA Etc. 50 States World's Largest Producer Of Both Electrical And Nuclear Energy Leading Exporter Of Wheat And Corn And Ranks Third In Rice Exports. Defense And High Quality Products
    • 4.         Second largest country in the world Land mass- 10 million sq.kms Population 3,34,87,208 Official languages – English and French Currency Canadian dollar (CAD) GDP – purchasing power parity $1.564 Member of , APEC, NAFTA,WTO, Organization for Security and Cooperation in Europe etc Indians are now the second-most populous cultural group immigrating to Canada, behind Chinese.
    • 5.        India, Officially The Republic Of India Is A Country In South Asia. Second-most Populous Country Tenth-largest By Nominal GDP ($1.84 Trillion) Third-largest By Purchasing Power Parity Diverse Culture Milk Is India's Largest Crop By Economic Value The Service Sector- 55.6% Of GDP, Industrial Sector-26.3%, Agricultural
    • 6. India United States Canada Population 1,210,193,422 314,256,000 34,951,600 (October 2012) (35th)[8] Area 3,287,240 km2 (1,269,210 sq mi) 9,526,468 km2 (3,678,190 sq mi) 9,984,670 km² (3,854,085 sq mi) Population Density 370/km2 (958.2/sq mi) 33.7/km2 (87.4/sq mi) 3.41/km² (8.3/sq mi) Capital New Delhi Washington, D.C. Ottawa Largest City Mumbai – 13,922,125 (21,347,412 Metro) New York City – 8,363,710 (19,006,798 Metro) Toronto Government Quasi-federal parliamentary constitutional republic Federal presidential constitutional republic Federal Parliamentary democracy and Constitutional monarchy Official languages Hindi and English, 21 other constitutionally recognised languages English (de facto) English and French Main religions 80.5% Hinduism, 13.4% Islam, 2.3% Christianity, 1.9% Sikhism, 0.8%Buddhism, 0.4% Jainism 78.4% Christianity, 16.1% non67.3% Christian 3.2% Islam, Religious, 1.7% Judaism, 1.0% Jewish, 1.1% Buddhism, 0.7% Buddhism, 0.6% Islam, 1.5%Hinduism, 1.4% Sikhism 0.4% Hinduism GDP (nominal) $1.848 trillion ($1,389 per capita)(10th) $15.094 trillion ($48,386 per capita) (1st) $1.396 trillion ($40,541 per capita GDP (PPP) $4.515 trillion ($3,694 per capita)(3rd) $15.094 trillion ($48,386 per capita) (1st) $22.8 billion (1.5% of GDP) Indian Americans 2,765,815 People of Indian 60,000 American born people origin living in the United living in India States 11,65,145 People of Indian origin living in Canada
    • 7.   Exports include: information technology services, textiles, machinery, gems and diamonds, chemicals, iron and steel products, coffee, tea, and other edible food products. Imports include: aircraft, fertilizers, computer hardware, scrap metal, and medical equipment, space craft and others. Month Exports Balance (All figures are Imports in millions) January 2013 1,699.3 3,171.1 -1,471.8 February 2013 1,605.0 2,829.6 -1,224.5 March 2013 1,861.6 3,662.0 -1,800.4 April 2013 1,655.3 4,075.3 -2,420.0 May 2013 1,935.8 4,201.5 -2,265.7 June 2013 2,396.5 3,418.5 -1,022.1 11,153.5 21,357.9 -10,204.4 TOTAL 2013
    • 8. • Largest trade relationship in the world • In 2012, US merchandise trade with Canada consisted of $324.2 billion in imports and $292.4 billion in exports Month Exports Imports Balance (All figures are in millions) January 2013 23,142.8 27,963.4 -4,820.6 February 2013 23,210.0 25,732.9 -2,522.9 March 2013 25,990.9 28,299.0 -2,308.1 April 2013 26,245.0 28,590.5 -2,345.5 May 2013 26,476.7 28,343.1 -1,866.4 June 2013 25,532.3 27,143.5 -1,611.2 150,597.7 166,072.4 -15,474.7 TOTAL 2013
    • 9. • Canada has nuclear trade with India. • Bilateral merchandise trade between India and Canada increased 23.4% to 5.2 billion CAD. • India’s export to Canada was $2.5 billion, while import was $2.6 billion in 2011.
    • 10.  Government Policy Labour Tax  Laws policy Federal Challenge
    • 11.  Issue between India & Canada  Track users  Security system  Lawful access  Interception facilities
    • 12.  Global retail giant  FDI Norms 30% local sourcing  To protect interest of Indian small scale industries
    • 13.  Health & safety laws (avian influenza)  Increase of import duty  To safeguard the interest of Indian farmers  WTO Dispute Settlement Panel
    • 14.       GDP Inflation Unemployment Poverty Labor costs Balance of payments
    • 15.  A mechanism that deals with the production, distribution, and consumption of goods and services Types: ◦ Market economy ◦ Command economy ◦ Mixed economy
    • 16.  Why is the U.S.-India Strategic Dialogue significant?  What are the major issues that will be discussed?     What can be achieved during this round of the strategic dialogue? What economic concerns will the two sides want to discuss? How will civil nuclear cooperation factor into the strategic dialogue? What is the current state of relations between Washington and New Delhi?
    • 17.  Recommendations for India -Expand the basis for collaboration Undertake planned second-generation economic reforms. -Encourage foreign direct investment (FDI). -Improve defense cooperation with key states. -Influence Iranian calculations
    • 18. Opportunities Unbound: Sustaining the Transformation in U.S.-Indian Relations  Recommendations for the United States: - Explore a free-trade agreement with India. -Sustain leadership attention. -Seek a deeper partnership on Afghanistan. -Build up India’s defense capabilities
    • 19. According to Statistics Canada, bilateral merchandise trade between Canada and India in 2011 totaled approximately CAD$ 5.2 billion, an increase of 23.4% percent 2010. While Canadian merchandise exports to India in 2011 totaled $2.6 billion (a 27.7% percent increase 2010), imports from India reached $2.5 billion (a 19.3% percent increase from 2010).
    • 20.      Demographics Distribution of Income Life Style Changes Consumerism Educational Levels
    • 21.  Demographics & Distribution of Income ◦ Division of population - Male / Female ◦ Age Group of the Population ◦ Disposable Family Income  Disposable Income in the hands of the different Age Groups  Education Level of the Age Groups
    • 22.  Life Style Changes & Consumerism ◦ Attitude to living  Different Age Groups  In tune with available disposable income  Thrust on taking care of present needs by spending than saving for the future.  Joint living and nuclear families  Availability of various media tools  Reach of the media to the population
    • 23. Cultural Comparisons Aspect Family Religion Education Nationalism Personal Sensitivity Etiquette INDIA Canada/USA Family is the first priority. Children are celebrated and sheltered. Wife fulfills domestic role. Mobility is limited. Family is usually second to work. Children often minimally parented; are independent. Wife often fulfills dual roles. Mobility quite common. Hindu dominator. Mixed religions. "Master of own life" outlook. Memorization. Emphasis on theoretical. Rigid, broad curriculum. Analytical approach. Emphasis on the practical. Narrow, in-depth specialization. Very religious & culturalistic Proud of long history and traditions. Reluctant to settle outside India. (U.S.)Very patriotic. Proud of "American way of life." Assumes everyone shares his/her materialistic values. (Canadian) Less than U.S.. Often has more " World" view. Difficulty separating work and personal relationships. Sensitive to differences of opinion. Fears loss of face, especially publicly. Shuns confrontation. Separates work from emotions/personal relationships. Sensitivity seen as weakness. Tough business front. Has difficulty with subtlety. "Old world" formality. Etiquette Formality often sacrificed for efficiency. "Let's get to the point" approach.
    • 24. Personal Appearance Dress and grooming are status symbols. Appearance is secondary to performance. Status Title and position more important than money in eyes of society. Money is main status measure and is reward for achievement. Aesthetics Aesthetic side of life is important even at work. No time for "useless frills". Ethics Truth is tempered by need for diplomacy. Truth is a relative concept. Direct Yes/No answers given and expected. Truth seen as absolute value.
    • 25. MCDONALD AND HINDU CULTURE  McDonald’s is the world’s largest user of beef  “Maharaja Mac” – which is made of mutton.  “McAloo Tikki Burger”, which is made from chicken.  Found beef extract in the oil.  Close McDonald’s 27 stores in the country.
    • 26. SOCIO-CULTURAL ANALYSIS  COCO COLA: Labeled “No- alcohol” on their bottles supplied to the Gulf countries.  NOKIA: Introduced Hindi language SMS for Indian users.
    • 27. A surprising demographic trend is that both China and India have more than twice as many English-speaking college graduates each year than does the United States. Reproduced with permission from Short, J. C., Bauer, T., Ketchen, D. J., & Simon, L. 2011. Atlas Black: The Complete Adventure. Irvington, NY:
    • 28.      Providing India with internet access anywhere there is electricity and Canada with commercial opportunity Reducing the Time and Cost of Aircraft Development and improving passenger safety Developing affordable drugs to better treat and prevent malaria Developing environmentally sound fuels that increase the competitiveness of the aerospace industry Match-Making Mission in Water Technologies
    • 29.    Low-Cost Medical Technologies Arsenic Removal from Drinking Water Defence Relations
    • 30.     First Unbundling Second Unbundling Changes In Geography, Supply, Sectors Global Trade Growth To Become More Concentrated
    • 31.     Interdependence Intense competition Globalization Price difference
    • 32.    US Aims To Expand India Arms Trade By “Billions Of Dollars” Trade Between India, US On Track To Cross 100bn This Year Ford Plans To Make India An Export Hub
    • 33.       Current Bilateral Trade - $5.2 Billion Increase To $15 Billion Is Expected By 2015 Transportation And Communications Sectors Canadian Manufacturing Facilities Jobs Created Are Based At Plants In India Some Of The Deals: Prairie Pulp & Paper Inc With Central Pulp & Paper Inc Taraspan Of Kanata And Tulip Telecom
    • 34.    Oil Exports To USA Rising Vehicles Gold
    • 35.   Importance Of International Business PEST Effects