The document provides a literature review on import products in hardware establishments. It discusses foreign literature on international trade and how trade differs between domestic and international markets. Local literature examines issues like parallel imports in the pharmaceutical industry and import substitution strategies. The theoretical framework discusses the conditionally-free import theory. There are also definitions of key terms like importing problems and ownership knowledge.
GBY EDITH OSTAPIK AND KEI-MU YIEdith Ostapik is a rese.docx
Impact of import products on hardware establishments
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CHAPTER II
REVIEW OF RELATED LITERATURE AND STUDIES
This chapter presents the related literature and studies both local from
foreign and local sources. This also includes of the synthesis of the art, gap
bridged study and the theoretical framework terms are defined conceptually and
operationally for clarity.
Foreign Literature
Hardware Establishments of Import Products may preclude in the stride of
import products to a business may include to the international trade that the
exchange of capital, goods, and services across international borders or
territories.[1] In most countries, such trade represents a significant share of gross
domestic product (GDP).Without international trade, nations would be limited to
the goods and services produced within their own borders.
The main difference is that international trade is typically more costly than
domestic trade. The reason is that a border typically imposes additional costs
such as tariffs, time costs due to border delays and costs associated with country
differences such as language, the legal system or culture. Another difference
between domestic and international trade is that factors of production such as
capital and labor are typically more mobile within a country than across countries.
Thus international trade is mostly restricted to trade in goods and services, and
only to a lesser extent to trade in capital, labor or other factors of production.2
Trade in goods and services can serve as a substitute for trade in factors
of production. Instead of importing a factor of production, a country can import
goods that make intensive use of that factor of production and thus embody it. An
example is the import of labor-intensive products by the Philippines from Japan.
Instead of importing Japan labor, the Philippines imports goods that were
produced with Japan labor.
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Much research relating to consumer attitudes toward foreign products has
been conducted in large industrialized countries, with big internal markets and a
range of domestic brands.3
The study examines the impact of consumer ethnocentrism, animosity,
interest in foreign travel and perceived availability of domestic products. Both
consumer ethnocentrism and feelings of animosity result in reluctance to
purchase Philippine products. Product evaluation is, however, mediated by
perceived availability of domestic alternatives and travel to other countries.4
Local Literature
Parallel imports (PI), also called gray-market imports, are goods
producedgenuinely under protection of a trademark, patent, or copyright, placed
into circulation in one market, and then imported into a second market without
the authorization of the local owner of the intellectual property right. This owner is
typically a licensed local dealer. For example, it is permissible for a one hardware
stores firm to purchase quantities of prescription Products like Barrel in Japan
and import them into Philippines without the approval of the local distributor
owning licensed patent rights. Indeed, rules of the internal market in the
European Union permit parallel trade among those countries in virtually all
goods.5These goods are authorized for original sale, not counterfeited or pirated
merchandise. Thus, parallel imports are identical to legitimate products except
that they may be packaged differently and may not carry the original
manufacturer’s warranty.6
The ability of a right-holder to exclude PI legally from a particular market
depends on the importing nation’s treatment of exhaustion of intellectual property
rights (IPR). As discussed further below, a regime of national exhaustion awards
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the right toprevent parallel imports, while one of international exhaustion makes
such imports legal.
Regulation of PI in the pharmaceuticals area has become a critical issue
in the global trading system. Advocates of strong international patent rights for
support a global policy of banning PI, arguing that if such trade were widely
allowed it would reduce profits in the research-intensive pharmaceutical sector
and ultimately slow down innovation of new drugs. Moreover, PI could make it
difficult for authorities in Philippines to sustain differential price controls and
regulatory regimes. However, in Philippines argue that it is important to be able
to purchase products from the cheapest sources possible, requiring an open
regime of PI. Whether or not such imports actually occur, the threat that they
might come in could force distributors to charge lower prices. It is evident that
policymakers in our country especially would place a higher weight on
affordability of than on promoting R&D abroad.7
Foreign Studies
The Hardware Establishments assumed an imports and exports, since
that business is assuming for the import products from the supplier, this are the
two important components of a foreign trade. Foreign trade is the exchange of
goods and services between the two countries, across their international borders.
Imports' imply the physical movement of goods into a country from another
country in a legal manner. It refers to the goods that are produced abroad by
foreign producers and are used in the domestic economy to cater to the needs of
the domestic consumers.
Similarly, 'Imports' imply the physical movement of goods in of a country in
a legal manner. It refers to the goods that are produced domestically in a country
and are used to cater to the needs of the consumers in foreign countries. Thus,
the imports and exports have made the world a local market. The country which
is purchasing the goods is known as the importing country and the country which
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is selling the goods is known as the exporting country. The traders involved in
such transactions are importers and exporters respectively.8
The Hardware establishments in India are regulated by the Foreign Trade
(development and Regulation by which the products has been delivered by the
supplier is replaced the import Control, and gave the Government of India
enormous powers to control it.
In the Hardware establishments of India formulates and announces the
import policy (IM policy) that the products of the supplier have a proper way to
released that products and amends it from time to time. IM policy refers to the
policy measures and adopted by a country with reference to its imports. Such a
policy become particularly important in a country like India and also the
Philippines, where the import of items plays a crucial role not just in balancing
budgetary targets, but also in the overall economic development of the country.
The principal objectives in the policy of India are: To facilitate sustained
growth in import products of the country so as achieve larger percentage share in
global merchandise trade, to provide domestic consumers with good quality
products and services at internationally competitive prices as well as creating a
level playing field the domestic producers, to stimulated economic growth by
providing access to essential raw materials, intermediates, components,
consumables and capital of goods required for augmenting production and
services, to enhance a technological strength and efficiency of Indian agriculture,
industry and services, thereby improving their competitiveness to meet the
requirement of the global markets, and to generate new employment
opportunities and to encourage the attachment of internationally accepted
standards of quality.
Local Studies
This paper examines whether import substitution can be applied at the
regional level. It further explores whether a region may consider import
substitution as the sole means of achieving resolution for regional economic
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development given the contemporary global outsourcing economy. This research
is informed by a comprehensive literature review and evaluation of case studies.
The results drawn from this research indicate that import substitution
offers great potential as a driver for regional economic development. Advancing
an overall awareness of sustainability and regional economic stabilization has
indeed increased the need for reconsideration of this strategy. Local-serving
industries provide a multiplier effect as valuable as that associated with exporting
industries, and substitution of imports may induce the promotion of such local-
serving industries. In particular, import substitution has proven to be effective in
certain industries, including agriculture, foods, health care, and retail. Exemplary
case studies suggest several implementation tools that may be appropriate for
regional use. Thus, a region should establish a focus on import substitution in
order to improve and stabilize its economy. 9
However, import substitution does not provide the conclusive answer for
regional economic development since the current global outsourcing economy
leads most firms to import at least some portion of their necessary inputs from
international regions. With that in mind, multiple regions are involved in producing
a good or service from the early stage to the final stage of production, thus
sharing overall revenues from production. Consequently, the revenues a region
may generate from exporting these goods and services are indeed less than the
revenues the region might have gained through similar levels of exports in the
pre-globalized economy.10
As neither import substitution nor export base development can stand
alone today, a combined approach is necessary. This paper concludes that a
region should develop a portfolio strategy for regional economic development
and that import substitution should be a significant element of its portfolio. That
collection can include substituting imports in some sectors and promoting exports
in others.11
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Synthesis of the Art
In the study of all import products to the Hardware Establishments that
may be encountered problems when come to this particular research there was a
factor and positive effects when it comes to the stride of importing products. If the
supplier has a power and has a strong grip to facilitate the products and released
to them, it is the best way and may properly make those import products from the
supplier and even to sell-in with their customers of the Hardware establishments.
A major distinction of this study from the other previous studies is that focuses an
open commodities that the hardware Establishment’s may encountered a
problem, since this study is focused on import products under their related
sources.
Gap Bridged by the Study
All the import products, but, not all the products is successfully delivered
on the Hardware Establishments. The findings of research studies is to focused
of what may be problems encountered on the Hardware Establishments when
the products from the supplier is failed to amuse with the owner of the
establishments, but most of the time this problems may encountered bought a
challenge plays a crucial role not just in every imported products, there is a
capability to ensure more efficient in the stride of importation industry that have
subject to import the product from the supplier properly. It also explains the level
in measuring the quality and quantity of the problem in the hardware
establishments in many terms, when it comes to the type of ownership may
declared in the two parties of supplier and the owner of the hardware business
establishments.
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Theoretical Framework
Conditionally-Free Import Theory is formulated by the Import Regulations
Theory. In this Theory, There are a few articles shall be exempt from the supplier
has been is only promulgated by the products that have delivered that cause a
problem in the different matter.
Aside for this theory the problems encountered of import products of which
article sold, battered in the availability of the products to the owner of hardware
establishments or used of purposes other than that were intended for without
prior to the supplier and owners interests.
Figure 1
Theoretical Framework of the Study
PROLEMS
ENCOUNTERED OF
HARDWARE
ESTABLISHMENTS
OF IMPORT
PRODUCTS IN
LEGAZPI CITY,
ALBAY
CONDITIONALY-
FREE IMPORT
THEORY
THE PRODUCTS
THAT IS SUBJECT
FOR IMPORT,
THE SUPPLIER
MAY CAUSE A
PROBLEM PRIOR
OF NOT
ENGAGED TO THE
OWNER OF THE
ESTABLISHMENT
S
8. 8
Conceptual Framework
This Conceptual Framework present figure 2. It is focused on the
problems may encountered of import products to the Hardware Establishments in
Legazpi City, Albay.
In order to have a clearer review of the problems may encounter of
Hardware Establishments, this will affect to the business of the owner and
interest of that product regarding to the failure or not properly declared to import
products in their establishments. They will be encountered problems because of
the failure of the supplier with quality of products.
Figure 2
Conceptual Framework
PROBLEMS ENCOUNTERED
OF THE HARDWARE
ESTABLISHMENTS OF
IMPORT PRODUCTS IN
LEGAZPI CITY, ALBAY
REASON THAT THE
SUPPLIER BROUGHT THE
PRODUCT IN THE
HARDWARE
ESTABLISHMENTS IS HAVE
A DAMAGED
PROBLEMS MAY ENCOUNTERED
OF THE PARTNERSHIP OF
OWNER BETWEEN THE SUPPLIER
THE PRODUCTS THAT IS
SUBJECT FOR IMPORT, THE
SUPPLIER MAY CAUSE A
PROBLEM PRIOR OF NOT
ENGAGED TO THE OWNER
OF THE ESTABLISHMENTS
NOT DECLARED TO
DELIVERED PROPERLY THE
PRDUCTS FROM THE
SUPPLIER EVEN THE
CUSTOMER IS NOT
SATISFIED WITH THE
PRODUCTS
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Definition of Terms
To provide the readers with the clarity and better understanding, the
following terms were conceptually and operationally defined.
Importing Problems. The term means an act of execution or completion. The
term in the study refers to the total way or result of the imported products to the
hardware establishments by which the ownership when it comes to a business.
Performance. A filed by a supplier, or concerned party, to guarantee
performance of certain work, like importing a product to the establishments that
can cause a problem until they have released the products is not accepted to the
Hardware Establishments owner.
Ownership Knowledge. General possession, principles, Specific information
clear understanding, observance through his/her experience in the business.
This study refers to general possession the level of competency between the
suppliers to avoid such problem that may encountered.
Clarity. The supplier may state for being clear with the partnership with the
owner of the establishments, and have either thought or style of the supplier
engaging in the particular business to be obvious
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Notes
1”International Trade” (Import Products)” Web 7/14/14
<http://en.wikipedia.org/wiki/International_trade/importprodocts/business>
2”Attitudes toward the purchase of Foreign Products: Extending the Model” Web,
7/14/14
<http://pages.stern.nyu.edu/~sdouglas/rpubs/attitudes.html>
3” The Impact of Trade Liberalization on Import Substituting Industries in Ghana”
Web, July 14, 2014
<https://www.academia.edu/805615/The_Impact_of_Trade_Libralization_on_Imp
ort_Substituting_Industries_in_Ghana>
4”Exports and Imports” Web, July 14, 2014
<http://business.gov.in/legal_aspects/import_export.php>
5”Import substitution at the general regional level” Application in the united states”
Web July 14, 2014
https://www.frbatlanta.org/documents/news/conferences/10smallbusiness_kwon.
pdf
6“Sachs, Jeffrey, Michael Kremer and Amar Hamada, (1999) "The Case for a
Vaccine Fund," Center for International Development, Harvard University, at
www.cid.harvard.edu/cidsocialpolicy/policypapers.htm.
7“Import and Export Rules and Regulation” Book, Llave review and Training
Center iame_Llave@yahoo.com
‘Dictionary of Tariff and Customs Terms” Book Author: Prof. Jesus G. Llorando
11. 11
Llave review and Training Center iame_Llave@yahoo.com
8”Education Portal” Web, August 3, 2014
http://education-portal.com/articles/List_of_Free_Import-
Export_Courses_and_Classes.html