EMERGING DIMENSIONS OF INTERNATIONAL BUSINESS MADE BY: AKSHI GUPTA GURSIMARPREET SINGH MAITRI RASTOGI NEHA SHARMA
Environmental protection movementThe environmental movement (a term that sometimes includesThe conservation and green movements) is a diversescientific, social, And political movement. in generalterms, environmentalists advocate The sustainable management ofresources, and the protection (and Restoration, when necessary) ofthe natural environment through Changes in public policy andindividual behavior
COUNTINUED……. In its recognition of humanity as a participant in ecosystems, the movement is centered around ecology, health, and human rights. Though the movement is represented by a range of organizations, because of the inclusion of environmentalism in the classroom curriculum, the environmental movement has a younger demographic than is common in other social movements (see green seniors).
Environmentalism• Environmentalism as a movement covers broad areas of institutional oppression. Examples of these oppressions are: consumption of ecosystems and natural resources into waste, dumping waste into disadvantaged communities, air pollution, water pollution, weak infrastructure, exposure of organic life to toxins, mono culture, anti-polythene drive (jhola movement) and various other focuses. Because of these divisions, the environmental movement can be categorized into these primary focuses: Environmental Science, Environmental Activism, Environmental Advocacy, and Environmental Justice.
Preservation and conservationEnvironmental preservation in the United States and other parts of the world, including Australia, is viewed as the setting aside of natural resources to prevent damage caused by contact with humans or by certain human activities, such as logging, mining, hunting, and fishing, often to replace them with new human activities such as tourism and recreation. Regulations and laws may be enacted for the preservation of natural resources.
International Conventions• A convention is a set of agreed, stipulated or generally accepted standards, norms, social norms or criteria, often taking the form of a custom.• Certain types of rules or customs may become law and regulatory legislation may be introduced to formalize or enforce the convention . In a social context, a convention may retain the character of an "unwritten" law of custom
Examples…Vienna Convention on the Law of TreatiesCITES-Convention on International Trade in Endangered SpeciesConvention on combating desertificationThe Basel convention of e-wasteConvention on Biological Diversity (CBD)
Important IMO Conventions International Convention for the Safety of Life at Sea (SOLAS), 1974, as amended International Convention for the Prevention of Pollution from Ships, 1973, as modified by the Protocol of 1978 relating thereto and by the Protocol of 1997(MARPOL) International Convention on Standards of Training, Certification and Watch keeping for Seafarers ( STCW ) as amended, including the 1995 and 2010 Manila Amendments
TREATY A treaty is an express agreement under international law entered into by actors in international law, namely sovereign states and international organizations. A treaty may also be know as an (international)agreement, protocol, covenant, conve ntion or exchange of letters, among other terms. Regardless of terminology, all of these forms of agreements are, under international law, equally considered treaties and the rules are the same.
INTERNATIONAL LAW OF TREATY Article 38 of the Statute of the International Court of Justice, considered by some as the "Bible of the Poor" of those who seek quick answers despite of the complexity of international relations, constitutes nevertheless a good starting point for the understanding of the sources of international law. According to this article, international law finds its origin in the following three sources: International conventions of general or particular nature; International custom, as evidence of a general practice accepted as law; The general principles of law recognized by civilized nations.
As in the case of bilateral treaties, the very general term "Agreement" is also frequently used for multilateral conventions. It has been used in the following examples: The European Agreement on continued Payment of Scholarships for Students Studying Abroad of 1969, The Agreement Governing the Activities of States on the Moon and Other Celestial Bodies (1979) or The North American Free Trade Agreement (1992).
In most cases, multilateral treaties are called "Conventions". This is the most general designation which is also used by Article 38 of the Statute of the International Court of Justice. They are often concluded under the auspices of an international organization such as: The Convention for the Protection of Human Rights and Fundamental Freedoms of 1950 (so-called European Human Rights Convention concluded under the auspices of the Council of Europe), The United Nations Convention on the Law of the Sea (1982)
YEAR TREATY DESCRIPTION2005 Energy community treaty Establishes the energy community2006 St Andews agreement Resolves outstanding grievances in the Northern Ireland peace process, enabling devolved power-sharing government to resume.2007 ASEAN Charter New constitution making the Association of Southeast Asian Nations a legal entity.2008 Treaty establishing the Union of South Constitutive Treaty American Nations.2009 Extradition Treaty between the Government of the United Kingdom of Great Britain and Extradition treaty Northern Ireland and the Government of the Republic of the Philippines.2010 Treaty signed 15 September in Murmansk between the Government of Barents Sea border treaty the Russian Federation and the Government of the Kingdom of Norway.
What is carbon trading Carbon emissions trading is a form of emissions trading that specifically targets carbon dioxide and it currently constitutes the bulk of emissions trading. This form of permit trading is a common method countries utilize in order to meet their obligations specified by the Kyoto Protocol; namely the reduction of carbon emissions in an attempt to reduce (mitigate) future climate change. international agreements are not enough. Interlinked national and regional tools are also needed to reduce carbon emissions
Participation of countries in kyoto protocol:•Green indicates those countries who have signed and ratified.•Grey indicates those who have not yet decided.•Red indicates those who have no intention to ratify it.
Kyoto Protocol The protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16 February. A protocol to the United nations framework convention on climate change (UNFCCC) aimed at fighting global warming. UNFCCC is an international environmental treaty with the goal of achieving “stabilization of greenhouse gas concentrations” in the atmosphere. As on August 2011,191 countries have signed and ratified the protocol.
Continued……Under the protocol 37 countries ( called „Annex Icountries”) commit themselves to reduction of fourgreenhouse gases (carbon dioxide, methane, nitrousoxide, sulphur hexafluoride) and two groups of gases (hydrofluorocarbons, per fluorocarbons).US is the only nation which has not ratified it as they believethat 5% reduction will “wreck the American economy”.The target agreed upon was an average reduction of 5.2%from 1990 levels by the year 2012.Kyoto Protocol provides „Cap and Trade‟ system.
Overall impacts of Carbon Trading: By reducing carbon emissions, greenhouse gases in the atmosphere will be reduced slowing heat entrapment. Companies that emit excess carbon dioxide will be penalized and forced into taking more care. Wide ranging and comprehensive carbon trading will result in overall reduction in greenhouse gases and hence a reduction in global warming. Carbon credits are measured in tones of carbon dioxide. 1 credit = 1tonne of CO2
Carbon credit• The companies in the developed world are required to meet certain carbon emission target set by their respective government. However if these companies are not able to meet their emission targets, they have an alternative of purchasing these carbon credits from the market i.e. from someone who is successful in meeting these targets and who has a surplus of these credits. This process is known as carbon trading.
Carbon trading is also very advantageous for the companies of the developing world as it provides monetary gains in exchange of carbon credits which help these companies to purchase or change their technology. This change in technology eventually helps the companies to reduce carbon emission.
Need for Carbon Trading and Clean Development Mechanism India is the 2nd largest seller of Carbon credits in the world (6% share) While China tops the chart 73% share. The need for carbon trading was felt when it was realized that the industries have been the biggest polluter of green house gases which has resulted in global warming.
A lot of effort was put in by the NGOs and other institutions to bring the attention of the world towards the problem of global warming. But this issue was not taken very seriously so in order to get the attention of the world towards these problems was by attaching some financial incentive to it. As a result the concept of Carbon trading was introduced. Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries.
Also, India has huge number of carbon credits sellers but underthe present Indian law, the buyers based in European marketare not permitted to enter the market. To increase the marketfor carbon trading Forward Contracts (Regulation)Amendment Bill has been introduced in the Parliament.
• India is expected to capture between 20 and 30 per cent of the CDM market, bringing in up to $300 million in revenue.• The Ministry of Environment and Forests deals with the climate change and CDM issues in India.• from January 2004 to June 2005, 80 projects were approved by the National CDM Authority
Examples of Carbon trading in India Jindal Vijaynagar Steel Powerguda in Andhra Pradesh Handia Forest in Madhya Pradesh
FACTS India is the 2nd largest seller of Carbon credits in the world (6% share) While China tops the chart with 73% share. Carbon is also now being traded on India‟s Multi Commodity Exchange. The National Commodity and Derivative Exchange by a notification and with due approval from Forward Market Commission (FMC) launched Carbon Credit future contact whose aim was to provide transparency to markets and help the producers to earn remuneration out of the environment projects. Carbon credit in India is traded on NCDEX only as a future contract.
Importance of Technology inInternational Business
Why technology in international business??? There are many things to consider when approaching information technology from an international business perspective. A study at the Massachusetts Institute of Technology suggests three ways a business worker can view this technology: as he makes the decision of whether to enter an industry, he considers how to improve his business, he considers how to get ahead of the competition.
The Internet is the most important as information is stored and shared globally. Smartphones like the BlackBerry and iPhone, as well as tablet computers and laptops, keep workers connected in any location, making their jobs more flexible and giving them access to information instantly. Software and applications like Skype, give businesses a faster, easier way to connect with others and organize their information.
The most important modes of technology in international business include electronic communication such as emails, texts, faxes and virtual conferences. Tracking methods for shipping and purchasing is another huge technological innovation, as it allows businesses to verify the delivery of goods and the quantity of inventory purchased. Electronic spreadsheets and databases are other inventions that allow international companies to manage and store their information with greater ease.
Consideration: CommunicationThe ease of communication allows companies to outsource their operations with greater assurance:Video monitoring of factory and working conditions, inexpensive conference calls to consultants working in different countries, emailed reports to foreign vendors, and cheap long-distance phone calls are just a few of the ways technology has facilitated international business trade and operations.
Consideration:LogisticsInternational companies often have vendors, factories, customers and consultants in different parts of the globe. Keeping track of how a product is developed, manufactured, shipped and purchased can involve hundreds of steps in several countries. Technological innovations streamline the supply chain.
Benefits OF Technology Technology allows companies to produce products for less money. The cost of shipping goods can account for 25 percent of production costs; thus, the reduction in the cost of shipping significantly decreases the cost of producing goods. Companies have a wider selection of vendors from which to choose which lowers the cost as well. Ex, technological innovations enable a clothing company to choose from textile plants in Vietnam, Singapore and several other locations. The increased selection lowers the cost and makes selection easy as these foreign companies bid against the others for contracts.
• Nepal is set to fetch income worth Rs.43.4 million (US$967,000) from two biogas projects, which have been approved by the executive board of Clean Development Mechanism (CDM) under the Kyoto convention on Climate change.• The CDM allows developed countries to meet part of their emission-reduction requirements by investing in emission reduction in developing countries, where the economic costs of doing so are lower.• Nepal has signed onto "a carbon emissions reduction" agreement with the World Bank whereby it will trade surplus carbon for biogas plants.
• The Nepal Biogas Project (NBP) thus becomes the first project for carbon trading under the Clean Development Mechanism of the Kyoto Protocol on climate change.• NBP can now sell to developed countries the volume equivalent of carbon emissions it contains and prevents from being released into the environment.• Nepal will receive yearly Rs.40.34 million ($568,000) from selling carbon.• The Alternative Energy Promotion Center (AEPC), under which NBP is running, submitted two proposals for saving carbon from 9,708 and 9,688 biogas plants, respectively, last year.
• The revenue received from carbon selling would be invested to install 25,000 plants annually and such trading will further lift the standards of living among rural people.• Ken Ohasi, the residential representative of the World Bank, said the organization has been giving high priority to alternative energy projects, including biogas, since they are helpful to improve economic, social, health, and agricultural development of rural people.• Previously, the World Bank agreed to purchase one million tons of green house gas reductions under the Community Development Carbon Fund.• It is also the first large-scale carbon purchase made by the World Bank.
• So far, Nepal has installed 150,000 biogas plants, while experts say up to 1.9 million would viable in the country.• Biogas has been used for lighting and cooking food. Biogas can be produced by the organic material of animals or human beings where it is mixed with water and becomes carbon dioxide through bacteria.• Nepal has continued to promote alternative energy projects, such as solar home systems, wind energy, micro-hydro, biomass, and biogas projects. (World Bank agreement first carbon trading deal under Kyoto protocol, Nepal signs carbon trading deal. Ohmy news, International global watch, 2006)