In this presentation, we will discuss about International Economic Cooperation and Agreement in detail, focusing on various International and domestic trade blocs, NAFTA, SAARC and numerous other international commodity agreement.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
World Trade Organization - WTO - International Business - Manu Melwin Joymanumelwin
The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
A Detailed Information about South Asian Free Trade Area...
It Includes::::
Introduction
Objective
Principal
Instrument
Benefit
Sensitive list
Challenges
Recommendation
Conclusion..
World Trade Organization - WTO - International Business - Manu Melwin Joymanumelwin
The World Trade Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.
A Detailed Information about South Asian Free Trade Area...
It Includes::::
Introduction
Objective
Principal
Instrument
Benefit
Sensitive list
Challenges
Recommendation
Conclusion..
Foreign trade has worked as an "engine of growth" in the past, and even in more recent times the "outward oriented growth strategy" adopted by the Newly Industrializing Economies of Asia, including South Korea, Taiwan, Singapore and Hong kang, has enabled them to overcome the constraints of small resource poor under developed economies Notwithstanding a strong belief in Prebisch Singer and Myrdal thesis at some point of time in the history of international economic relations,
the free trade paradigm in the current WTO administered era has thrown open innumerable opportunities for growth.
SAFTA, Aggreement of safta , india,pakistan, afghanistan,bangladesh,malidives,sri lanka,nepal ,bhutan.
issues of safta, sapta, why it is failing?, safta instruments
Foreign trade has worked as an "engine of growth" in the past, and even in more recent times the "outward oriented growth strategy" adopted by the Newly Industrializing Economies of Asia, including South Korea, Taiwan, Singapore and Hong kang, has enabled them to overcome the constraints of small resource poor under developed economies Notwithstanding a strong belief in Prebisch Singer and Myrdal thesis at some point of time in the history of international economic relations,
the free trade paradigm in the current WTO administered era has thrown open innumerable opportunities for growth.
SAFTA, Aggreement of safta , india,pakistan, afghanistan,bangladesh,malidives,sri lanka,nepal ,bhutan.
issues of safta, sapta, why it is failing?, safta instruments
Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together.
Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among the Partner States while maintaining tariffs or barriers for the rest of the world (non-member countries).
Geographical proximity, cultural, historical, and ideological similarities, competitive or complementary economic linkages, and a common language among the Partner States are importantly required for effective economic integration.
The aim of economic integration is to lessen costs for both consumers and producers, in addition to increase trade between the countries taking part in the agreement.
A primary economic objective of integration is to raise:
a) real output and income of the participants
&
b) rate of growth
by increasing specialization and competition by facilitating desirable structural (linkages) changes.
Business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand.There are various factors that are included in internal and external environment.
In a highly competitive global world, mastering international business administration is becoming necessary for managers worldwide to successfully perform diverse business activities with other parties in different countries.
This PPT has been prepared for the LL.M 1st Year students of NALSAR Universityof Law-HYDERABAD. IF any one finds any mistake, please inform to make it perfect.
Thanking you
By Jayakar Bathula, LL.M-2nd Year, NALSAR University of Law-HYDERABAD.
Global marketing - global economic environmentRECONNECT
This is the lecture of course "Global Marketing"
This slideshare network of RECONNECT will provide all the presentation related to case studies, project presentations, educational, motivational slides & much more.
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A detailed presentation on the provisions of the Competition Act, 2002 ,in so far as it relates to the anti-competitive agreements and cartels during a seminar on competition policy and law in Kerala. This was a part of advocacy function of the Competition Commission of India (CCI).
International business is impacted by economic,social, political and demographic environments. Trade barriers,blocks and agreements play a vital role in international trade.
For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc
In this presentation, we will discuss International Marketing Environment, the important factors that affect the environment, various trade barriers protecting domestic industries from foreign competitions and types of commodity agreement. Also state trading, role of GATT and other international trading aspects will be discussed in details.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Welingkar's Online PGDM Program in Supply Chain Mgmt is designed to understand the levels involved in bringing a manufactured product to the right channel.
WeSchool's Online PGDM Program in E-Commerce Mgmt is designed to combine technology, business, marketing, logistics, etc to prepare you for jobs in ecommerce.
We School's Online PGDM Program in International Business Mgmt covers some of the advanced subjects like International Economics & International Business Environment.
We School's Online MBA Program in IT Projects Mgmt prepares IT, project managers, to provide leadership in planning, executing & directing complex IT projects.
WeSchool's Online PGDM Program in E-Business Mgmt will help students interested in getting into the e-business with expertise in e-commerce & online shopping.
WeSchool's Online PGDM Program in Business Administration extensively covers several topics on marketing, investment, functional administration, sales, etc.
Online PGDM Program in Finance Mgmt Descriptionibes the role of Finance Manager, beneficial for professionals interested in a career in finance-related sectors.
WeSchool offers AICTE approved Diploma in Marketing Management. It is a specialized Management program with focus on marketing as a core business function
WeSchool Offers Online MBA Program in Operations Mgmt. Production planning, project management & world-class manufacturing are among the critical concepts.
Gain a better understanding of the various industry functions, business trends and industry regulations in the travel and tourism industry to emerge as a powerful team leader.
Visit our Websites: https://www.welingkaronline.org/
In today's increasingly competitive business environment, organizations are engaged in a rat race to retain customers, build up clientele and simultaneously ensure steady growth. Unfortunately, they often get caught in a web of issues which may not be easily controlled and affect performance. Here comes the play of Financial Accounting. Professional accountants have a vital role in commercial success by using their valuable knowledge to provide their organizations/clients a competitive advantage and an accurate picture of their financial position and performance.
British Aerospace Asset Management Case study will tech you how important is asset management for your business. lern from the experts about the Asset management.
Mc donalds Recruitment Case Study will explain you each and every thing about the Recruitment. hiring a right person at your workplace will be one of the best part of your business management. learn how to hire or recruit perfect person in your company with this case study of Mc donalds Recruitment.
More from We Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program. (20)
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
The French Revolution Class 9 Study Material pdf free download
International Economic Cooperation and Agreement
1. Chapter No. 2 Page No. 96
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
ECONOMIC INTEGRATION SCHEMES ALSO REFERRED AS
TRADE BLOCS.
REGIONAL INTEGRATION AGREEMENTS (RIAS).
REGIONAL TRADE AGREEMENTS (RTA).
IS AN IMPORTANT INTERNATIONAL BUSINESS
ENVIRONMENT.
2. Chapter No. 2 Page No. 96
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
MOST COUNTRIES IN THE WORLD ARE THE MEMBERS OF
– OR DISCUSSING PARTICIPATION IN – ONE OR MORE
TRADE BLOC.
AGREEMENTS HAVE BEEN CONCLUDED BETWEEN THE
LOW-INCOME AS WELL AS HIGH INCOME COUNTRIES.
MORE RECENTLY, STARTING WITH THE NORTH
AMERICAN FREE TRADE AREA (NAFTA) – HIGH INCOME
AND DEVELOPING COUNTRIES.
MORE THAN HALF OF WORLD TRADE NOW OCCURS
WITHIN ACTUAL OR PROSPECTIVE TRADE BLOCS.
JAPAN AND KOREA ARE TWO NOTABLE EXCEPTIONS TO
MEMBERSHIP IN ANY RIA.
3. Chapter No. 2 Page No. 97
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
RATIONALE / OBJECTIVES
TO OBTAIN ECONOMIC BENEFITS FROM ACHIEVING A
MORE EFFICIENT PRODUCTION STRUCTURE BY
EXPLOITING ECONOMIES OF SCALE.
TO PURSUE NON – ECONOMIC OBJECTIVES SUCH AS
STRENGTHENING POLITICAL AND MANAGING MIGRATION
FLOWS.
TO ENSURE INCREASED SECURITY OF MARKET ACCESS
FOR SMALLER COUNTRIES BY FORMING REGIONAL
TRADING BLOCS WITH LARGER COUNTRIES.
CONT….
4. Chapter No. 2 Page No. 97
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
RATIONALE / OBJECTIVES
TO IMPROVE MEMBER’S BARGAINING STRENGTH IN
MULTILATERAL TRADE NEGOTIATIONS.
TO PROMOTE REGIONAL INFANT INDUSTRIES WHICH CAN
NOT BE VIABLE WITHOUT A PROTECTED REGIONAL
MARKET.
TO PREVENT FURTHER DAMAGE TO THEIR TRADING
STRENGTH.
5. Chapter No. 2 Page No. 97
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
TYPES OF INTEGRATION
ECONOMIC INTEGRATION IS A GENERAL TERM WHICH
COVERS SEVERAL KINDS OF ARRANGEMENTS BY WHICH
TWO OR MORE COUNTRIES CAN AGREE TO DRAW THEIR
ECONOMIES CLOSER TOGETHER.
ALL OF THE ARRANGEMENTS HAVE ONE COMMON
FEATURE, THE USE OF TARIFFS TO DISCRIMINATE
AGAINST GOODS PRODUCED BY COUNTRIES NOT PARTY
TO THE AGREEMENT.
6. Chapter No. 2 Page No. 98
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
TYPES OF INTEGRATION
FREE TRADE AREA: IT IS A GROUPING OF COUNTRIES TO
BRING ABOUT FREE TRADE BETWEEN THEM.
CUSTOM UNION: IT ADOPTS A UNIFORM COMMERCIAL
POLICY AGAINST THE NON-MEMBERS.
COMMON MARKET: IT ALLOWS FREE MOVEMENT OF
LABOUR AND CAPITAL WITHIN THE COMMON MARKET,
AND HAVING THE CHARACTERISTICS OF CUSTOM UNION
AND FREE TRADE.
7. Chapter No. 2 Page No. 98
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
TYPES OF INTEGRATION
ECONOMIC UNION: AN ADVANCE LEVEL OF
INTEGRATION. APART FROM SATISFYING THE
CONDITIONS OF COMMON MARKET, IT ACHIEVES SOME
DEGREE OF HARMONIZATION OF NATIONAL ECONOMIC
POLICIES, THROUGH A COMMON CENTRAL BANK,
UNIFIED MONETARY AND FISCAL POLICY.
ECONOMIC INTEGRATION: IT IS CHARACTERIZED BY THE
COMPLETION OF THE REMOVAL OF ALL BARRIERS TO
INTRA-BLOC MOVEMENT OF GOODS AND FACTORS,
UNIFICATION OF SOCIAL AND ECONOMIC POLICIES.
8. Chapter No. 2 Page No. 99
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
THEORY OF CUSTOMS UNION
ACCORDING TO GATT, A CUSTOM UNION MEANS THE
SUBSTITUTION OF A SINGLE CUSTOMS TERRITORY FOR
TWO OR MORE CUSTOMS TERRITORIES. SO THAT:
1. DUTIES AND OTHER RESTRICTIVE REGULATIONS OF
COMMERCE ARE ELIMINATED WITH RESPECT TO
SUBSTANTIALLY ALL TRADE BETWEEN THE
CONSTITUENT TERRITORIES OF THE UNION.
2. SUBSTANTIALLY THE SAME DUTIES AND OTHER
REGULATIONS OF COMMERCE APPLIED BY EACH OF THE
MEMBERS OF THE UNION TO THE TRADE TERRITORIES
NOT INCLUDED IN THE UNION FROM NON-MEMBERS.
9. Chapter No. 2 Page No.100
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
A CUSTOMS UNION HAS:
1. STATIC EFFECTS: IT INVOLVES A REALLOCATION OF
RESOURCES AMONG EXISTING INDUSTRIES, USING
EXISTING SUPPLIES OF THE FACTORS AND EXISTING
TECHNOLOGY.
THERE ARE TWO TYPES OF STATIC EFFECTS,
PRODUCTION EFFECTS AND CONSUMPTION EFFECTS.
2. DYNAMIC EFFECTS: IT REFERS TO CERTAIN
DEVELOPMENTS LIKE INCREASED COMPETITION,
STIMULUS TO TECHNOLOGICAL CHANGES, STIMULUS TO
INVESTMENT AND INCREASED ECONOMIES OF SCALE.
10. Chapter No. 2 Page No.100
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
PRODUCTION EFFECTS:
REFERS TO THE CHANGES IN THE SOURCE OF SUPPLY
OR PRODUCTION BASES OF A COMMODITY RESULTING
FROM THE FORMATION OF THE CUSTOMS UNION.
CONSUMPTION EFFECTS:
1. POSITIVE CONSUMPTION EFFECT. DUE TO INCREASED
EFFICIENCY IN SOURCE ALLOCATION THE REAL INCOME
OF THE CONSUMERS WILL INCREASE.
2. NEGATIVE CONSUMPTION EFFECT: DIVERSION OF THE
CONSUMER PURCHASES FROM LOW COST OUT SIDE
PRODUCERS TO HIGH COST PRODUCERS IN THE
CUSTOMS UNION.
11. Chapter No. 2 Page No.100
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
EUROPEAN UNION
EUROPEAN ECONOMIC COMMUNITY (EEC)
IS ALSO KNOWN AS:
EUROPEAN COMMON MARKET (ECM)
EUROPEAN COMMUNITY (EC)
EUROPEAN UNION (EU)
EEC WHICH ORIGINALLY COMPRISE SIX NATIONS,
BELGIUM, FRANCE, FEDERAL REPUBLIC OF GERMANY,
ITALY, LUXEMBOURG AND NETHERLANDS WAS
BROUGHT INTO BEING BY THE TREATY OF ROME.
12. Chapter No. 2 Page No.104
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
EUROPEAN ECONOMIC COMMUNITY
THE TREATY OF ROME REQUIRED EVERY MEMBER
COUNTRY TO:
ELIMINATE TARIFFS, QUOTAS AND OTHER BARRIERS ON
INTRA-COMMUNITY TRADE.
DEVISE A COMMON INTERNAL TARIFF ON IMPORTS FROM
THE REST OF THE WORLD.
ALLOW THE FREE MOVEMENT OF FACTORS OF
PRODUCTION WITHIN THE COMMUNITY.
HARMONIES THEIR TAXATION AND MONETARY POLICIES
AND SOCIAL SECURITY POLICIES.
ADOPT A COMMON POLICY ON AGRICULTURE,
TRANSPORT AND COMPETITION IN INDUSTRY.
13. Chapter No. 2 Page No.104
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
EC 1992
A DETILED PROGRAMME FOR ATTAINING A SINGLE
INTEGRATED MARKET WAS SET FORTH BY THE EC
COMMISSION (THE EC’S EXECUTIVE BODY) IN JUNE 1985 IN A
WHITE PAPER ENTITLED “COMPLETING THE INTERNAL
MARKET”. THE EC COUNCIL (THE EC’S SUPREME DECISION
MAKING BODY ) PROMPTLY COMMITTED THE EC TO CARRY
OUT WHITE PAPER PROGRAMME. THIS PROGRAMME
WHICH ENVISAGED THE UNIFICATION OF THE
ECONOMIES OF THE MEMBER NATIONS INTO A SINGLE
MARKET IS EC 92.
14. Chapter No. 2 Page No.105
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
EC 1992
THE UNIFICATION WOULD LEAD TO THE RESTRUCTURING
OF THE ECONOMY OF THE EC RESULTING, IMPROVEMENT
IN PRODUCTION, TRADE CREATION, AND INCREASE IN
CONSUMPTION.
THE REAL PURPOSE OF THE SINGLE MARKET IS TO
BOOST THE COMPETITIVENESS OF EUROPEAN INDUSTRY
AGAINST ITS RIVAL, PARTICULARLY USA, JAPAN AND
SOUTH-EAST ASIAN NATIONS.
THE BENEFIT OF LIBERALIZATION WILL BE EXTENDED TO
NON-EC COUNTRIES PROVIDED THEY RECIPROCATE.
15. Chapter No. 2 Page No.106
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
INDO-EU TRADE
THE EC, AS A SINGLE UNIT, IS INDIA'S LARGEST PARTNER.
LARGEST TRADE PARTNERS OF INDIA HAVE BEEN WEST
GERMANY AND THE U. K.WITHIN EU.
INDIA’S MAIN EXPORTS TO EC INCLUDE TEXTILE, JUTE,
LEATHER AND LEATHER MANUFACTURES, POLISHED
DIAMONDS, ENGINEERING GOODS, CHEMICALS, MARINE
PRODUCTS.
IMPORTS INCLUDES EDIBLE OILS, FERTILIZERS, DAIRY
PRODUCTS, STEEL, CAPITAL GOODS, OPTICAL
INSTRUMENTS, ALUMINIUM AND COPPER PRODUCTS,
PHOTO AND CINEMATOGRAPHIC GOODS.
16. Chapter No. 2 Page No.106
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
INDO-EU TRADE
EXPORT PERFORMANCE HAS BEEN REGARDED AS POOR.
SEVERAL FACTORS SUCH AS LACK OF PRICE
COMPETITIVENESS, POOR QUALITY, POOR IMAGE, BAD
REPUTATION IN DELIVERY SCHEDULE, POOR EXPORT
MARKETING SKILL.THESE PROBLEMS INDICATE THE AREA
OF CORRECTIVE MEASURES TO IMPROVE EXPORTS.
THE EC IS HIGHLY COMPETITIVE MARKET.
UNLESS COMPETITIVENESS MEASURES UPTO THE
INTERNATIONAL LEVEL THINGS WILL BECOME MORE
DIFFICULT.
17. Chapter No. 2 Page No.107
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
INDO-EU TRADE
THE EC IS A VERY POTENTIAL MARKET AND INDIA
SHOULD PAY SUFFICIENT ATTENTION TO TAKING
ADVANTAGE OF THIS ENLARGING MARKET.
MANY COUNTRIES, INCLUDING JAPAN AND SOUTH-EAST
ASIAN COUNTRIES HAVE BEEN TAKING MEASURES TO
SET-UP THEIR MANUFACTURING / ASSEMBLING UNITS IN
THE COMMUNITY.
INDIA’S ACHIEVEMENT IN THIS DIRECTION HAS BEEN NOT
VERY SIGNIFICANT.
18. Chapter No. 2 Page No.109
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
IMPLICATIONS OF EURO FOR INDIA.
THE EUROLAND ACCOUNTS FOR ABOUT ONE FIFTH OF
INDIA'S FOREIGN TRADE.
EURO WILL BENEFIT INDIAN EXPORTS AS PRODUCTS FROM
THIS COUNTRY WILL BECOME CHEAPER IN THE EUROLAND.
15 PRODUCT GROUPS FOR EXPORTS HAVE A PRICE
ELASTICITY WHICH WILL HELP THEM TO CAPTURE A
SIGNIFICANT PORTION OF THE EUROPEAN MARKETS WITH
LOWER PRICES.
THE PRESSURE TO INTRODUCE UNIFORM PRICES WILL COME
FROM THE HIGHER END OF DISTRIBUTION CHANNEL AND
INDIAN EXPORTERS WILL HAVE TO REDESIGN THEIR EXPORT
PRICING STRATEGIES ACCORDINGLY.
19. Chapter No. 2 Page No.113
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
NAFTA HAD ITS ORIGIN IN THE CANADA - U.S.
FREE TRADE AGREEMENT WHICH BECAME EFFECTIVE
ON JANUARY1, 1989.
MEXICO BECAME A MEMBER OF IT.
NAFTA IS A LARGE TRADING BLOC WITH A COMBINED
POPULATION AND TOTAL GNP GREATER THAN THE
15 MEMBER EU.
NAFTA COULD FURTHER EXPAND SUBSTANTIALLY BY
ADDING MORE COUNTRIES IN THE FUTURE.
20. Chapter No. 2 Page No.113
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
NAFTA COVERS THE FOLLOWING AREAS:
MARKET ACCESS.
TRADE RULES SERVICES.
INVESTMENT.
INTELLECTUAL PROPERTY.
DISPUTE SETTLEMENT.
21. Chapter No. 2 Page No.114
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
NAFTA HAS ACHIEVED SUBSTANTIAL TRADE
LIBERALIZATION.
TRADE BETWEEN THE U.S. AND CANADA AND THE U.S.
AND MEXICO IS SUBSTANTIAL AND HAS BEEN RISING
FAST.
THE TWO TRADING RELATIONSHIP BETWEEN THE UNITED
STATES AND CANADA IS THE LARGEST IN THE WORLD.
MEXICO REPLACED JAPAN AS THE SECOND LARGEST
MARKET FOR U.S. EXPORTS.
22. Chapter No. 2 Page No.114
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
NORTH AMERICAN FREE TRADE AGREEMENT (NAFTA)
FOREIGN INVESTMENT IN MEXICO HAS RISEN
SUBSTANTIALLY SINCE THE AGREEMENT.
COMPANIES FROM OUTSIDE NAFTA HAVE BEEN
MAKING LARGE INVESTMENT IN MEXICO TO GAIN A
FREE ENTRY TO THE HUGE MARKET.
23. Chapter No. 2 Page No.114
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
ECONOMIC INTEGRATION IN DEVELOPING COUNTRIES
ECONOMIC INTEGRATION OF DEVELOPING COUNTRIES HAS
BEEN ADVOCATED BY MANY EXPERTS AS A MEANS TO
ACCELERATE ECONOMIC DEVELOPMENT AND STRENGTHEN
THEIR TRADING AND BARGAINING POWER VIS-A-VIS THE
DEVELOPED ECONOMIES.
THE UNITED NATIONS CONFERENCE ON TRADE AND
DEVELOPMENT (UNCTAD) HAS FELT THAT REGIONAL
ECONOMIC GROUPING, INTEGRATING OR OTHER FORMS OF
ECONOMIC COOPERATION SHOULD BE PROMOTED AMONG
DEVELOPING COUNTRIES AS A MEANS OF EXPANDING.
24. Chapter No. 2 Page No.115
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
ECONOMIC INTEGRATION IN DEVELOPING COUNTRIES
THE ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN)
WAS FORMED BY THE BANGKOK DECLARATION 1967 BY FIVE
COUNTRIES, VIZ., INDONESIA, MALAYSIA, PHILIPPINES,
SINGAPORE AND THAILAND. WITH A VIEW TO ACCELERATE
ECONOMIC PROGRESS.
ASEAN DOES NOT FUNCTION AS A REGIONAL TRADE
ARRANGEMENT, IT HAS BECOME AN EFFECTIVE
INTERLOCUTOR FOR COOPERATION IN ECONOMIC MATTERS
AND FOREIGN AFFAIRS WITH OECD.
THE ASEAN NOW CONSTITUTE A LARGER MARKET FOR
JAPAN THAN DOES THE UNITED STATES.
25. Chapter No. 2 Page No.116
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
ECONOMIC INTEGRATION IN DEVELOPING COUNTRIES
THERE IS A STRONG VIEW THAT INDIA SHOULD ALSO
INTEGRATE WITH ASEAN.
THE FIRST ASEAN - INDIA SUMMIT HELD IN
NOVEMBER 2002 HAS BEEN EXPECTED TO SET THE
STAGE FOR INDIA TO MOVE PURPOSEFULLY AHEAD
TO ACHIEVE THIS.
26. Chapter No. 2 Page No.117
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SOUTH-SOUTH COOPERATION
AS THE SOUTH COMMISSION POINTS OUT,
IT HAS BECOME APPARENT THAT THE DYNAMICS OF
ECONOMIC GROWTH IN THE NORTH IS NO LONGER A
RELIABLE OR SUFFICIENT MOTOR FOR GENERATING
SUSTAINED GROWTH IN THE SOUTH… NEITHER CAN
SOUTH RELY ON THE NORTH TO PROVIDE IT WITH
TECHNOLOGY ON TERMS AND CONDITIONS THAT SUIT
THE SOUTH, OR HELP IT TO GENERATE ITS OWN
TECHNOLOGY.
27. Chapter No. 2 Page No.117
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SCOPE OF ECDC
SOUTH-SOUTH COOPERATION CAN PROVIDE IMPORTANT
NEW OPPORTUNITIES FOR DEVELOPMENT BASED ON:
GEOGRAPHICAL PROXIMITY.
SIMILARITIES IN DEMAND AND TASTES.
RELEVANCE OF RESPECTIVE DEVELOPMENT
EXPERIENCE, KNOW HOW AND SKILL.
AVAILABILITY OF COMPLEMENTARY NATURAL AND
FINANCIAL RESOURCES AND MANAGEMENT SKILLS.
ADDITIONAL POSSIBILITIES FOR TRADING ARE ALSO
OFFERED BY THE GREATER DIVERSITY IN LEVEL OF
DEVELOPMENT.
28. Chapter No. 2 Page No.117
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SCOPE OF ECDC
IT IS IMPORTANT THAT COOPERATION SHOULD NOT ONLY
TAKE PLACE BETWEEN GOVERNMENT AGENCIES, TRADING,
INDUSTRIAL AND FINANCIAL ENTERPRISES, TRADE UNIONS,
RESEARCH ORGANIZATION, NON GOVERNMENTAL
ORGANIZATIONS, AND THE MEDIA OF THE SOUTH SHOULD
ALL BE ENCOURAGED AND HELPED TO CONTRIBUTE TO THE
ADVANCEMENT OF THE COLLECTIVE CAUSE OF THE SOUTH
AND ITS SOLIDARITY IN ACTION.
29. Chapter No. 2 Page No.118
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
RATIONALE
OBJECTIVES OF SSC:
TO ACCELERATE THE PACE OF DEVELOPMENT.
TO INCREASE ECONOMIC EFFICIENCY.
TO STRENGTHEN THE STATUS OF THE SOUTH
VIS-À-VIS THE NORTH.
30. Chapter No. 2 Page No.119
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
FUNCTIONAL AREAS OF COOPERATION
FUNCTIONAL AREAS DESERVE PRIORITY AND SUSTAINED
ACTION:
FINANCE.
TRADE.
INDUSTRY AND BUSINESS.
SERVICES.
SCIENCE AND TECHNOLOGY.
ENVIRONMENT AND DEVELOPMENT.
FOOD SECURITY.
TRANSPORT AND OTHER INFRASTRUCTURAL LINKS.
INFORMATION AND COMMUNICATIONS.
PEOPLE TO PEOPLE CONTACTS.
31. Chapter No. 2 Page No.122
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAARC
THE SOUTH ASIAN ASSOCIATION FOR REGIONAL
COOPERATION (SAARC) INVOLVING SEVEN
COUNTRIES, INDIA, BANGLADESH, NEPAL, BHUTAN,
SRI LANKA, AND MALDIVES WAS FORMALLY
LAUNCHED IN DECEMBER 1985.
THE FUNDAMENTAL GOAL OF SAARC IS TO
ACCELERATE ECONOMIC AND SOCIAL
DEVELOPMENT THROUGH OPTIMUM UTILIZATION OF
THEIR HUMAN AND MATERIAL RESOURCES.
32. Chapter No. 2 Page No.122
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
OBJECTIVES OF SAARC
TO PROMOTE THE WELFARE OF THE PEOPLE OF SOUTH
ASIA AND TO IMPROVE THEIR QUALITY OF LIFE.
TO ACCELERATE ECONOMIC GROWTH, SOCIAL
PROGRESS AND CULTURAL DEVELOPMENT IN THE
REGION AND TO PROVIDE ALL INDIVIDUALS THE
OPPORTUNITY TO LIVE IN DIGNITY AND REALIZE THEIR
FULL POTENTIAL.
TO PROMOTE AND STRENGTHEN COLLECTIVE SELF
RELIANCE AMONG THE COUNTRIES OF SOUTH ASIA.
TO CONTRIBUTE TO MUTUAL TRUST, UNDERSTANDING
AND APPRECIATION OF EACH OTHER’S PROBLEMS.
CONT…..
33. Chapter No. 2 Page No.123
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
OBJECTIVES OF SAARC
TO PROMOTE ACTIVE COLLABORATION AND MUTUAL
ASSISTANCE IN THE ECONOMIC, SOCIAL, CULTURAL,
TECHNICAL AND SCIENTIFIC FIELD.
TO STRENGTHEN COOPERATION WITH OTHER
DEVELOPING COUNTRIES.
TO STRENGTHEN COOPERATION AMONG
THEMSELVES IN INTERNATIONAL FORUMS ON
MATTERS OF COMMON INTERESTS.
TO COOPERATE WITH INTERNATIONAL AND
REGIONAL ORGANIZATIONS WITH SIMILAR AIMS AND
PURPOSES.
34. Chapter No. 2 Page No.125
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAPTA
THE SIXTH SAARC SUMMIT HELD IN COLOMBO STRONGLY
MOOTED THE IDEA OF A SAARC PREFERENTIAL TRADING
ARRANGEMENT (SAPTA) AND ALL THE FOREIGN MINISTERS
OF MEMBER STATES SIGNED THE AGREEMENT.
THE BASIC PRINCIPLES OF SAPTA ARE :
OVERALL RECIPROCITY AND MUTUALITY OF
ADVANTAGES.
STEP-BY-STEP NEGOTIATIONS AND EXTENSION OF
PREFERENTIAL TRADE ARRANGEMENT IN STAGES.
INCLUSION OF ALL TYPES OF PRODUCTS--- RAW,
SEMI –PROCESSED AND PROCESSED.
SPECIAL AND FAVOURABLE TREATMENT TO
LEAST DEVELOPMENT COUNTRIES (LDCs).
35. Chapter No. 2 Page No.125
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAPTA
SPECIAL TREATMENT TO LDCs INCLUDE:
ALLOWANCE OF FAVOURABLE PERCENTAGE POINTS.
APPLICATION OF RELAXED RULES OF ORIGIN.
FAVOURABLE TERMS FOR TECHNICAL ASSISTANCE.
DUTY FREE ACCESS.
DEEPER TARIFF PREFERENCES.
REMOVAL OF NON-TARIFF AND PARA-TARIFF BARRIERS.
NEGOTIATION OF LONG TERM CONTRACTS TO
SUPPORT SUSTAINABLE EXPORTS AND PROVISION OF
SPECIAL FACILITIES WITH REGARD TO SHIPPING AND
DOCUMENTATION.
TRAINING FACILITIES AND SUPPORT TO EXPORT
MARKETING.
36. Chapter No. 2 Page No.126
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAPTA
ALL THE SAARC COUNTRIES HAVE SUBSTANTIALLY
REDUCED IN TARIFF AND MODIFIED TARIFF STRUCTURES IN
VIEW OF ECONOMIC POLICY REFORMS.
TO IMPROVE THE EFFICIENCY OF THE DOMESTIC
INDUSTRIES.
THIS PROCESS SHOULD HELP THE EXPANSION OF
INTRA-REGIONAL TRADE.
THE PRESENCE OF NON-TARIFF BARRIERS IN DIFFERENT
FORMS ARE ACTING AS CONSTRAINTS TO REALIZE THE
POTENTIAL FOR TRADE EXPANSION.
37. Chapter No. 2 Page No.127
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAPTA
TODAY ,SAARC COUNTRIES SHARE IN TOTAL WORLD
TRADE IS NOT EVEN 1 PER CENT.
THEIR TRADE AMONG THEMSELVES LINGERS BELOW
3 PER CENT OF THEIR TOTAL FOREIGN TRADE.
WHEN COMPARED WITH MORE THAN 60 PER CENT FOR
INTRA-EUROPEAN UNION TRADE OF THEIR GLOBAL
TRADE AND NEARLY 40 PER CENT FOR NORTH AMERICA
AND EAST ASIA, IT IS VERY POOR.
38. Chapter No. 2 Page No.127
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
SAPTA
THERE IS A VIEW THAT WHAT IS NEEDED IS A CUSTOMS
UNION AND NOT A FREE TRADE AREA BECAUSE A FREE
TRADE AREA HAS AN IMPORTANT PROBLEM THAT GOODS
FROM A NON-MEMBER COUNTRY MAY ENTER A MEMBER
COUNTRY AND FROM THERE FREELY FLOW THROUGH OUT
THE FREE TRADE AREA CAUSING DAMAGE TO THE
DOMESTIC INDUSTRY / AGRICULTURE OF SOME OF THE
MEMBERS.THE ‘RULE OF THE ORIGIN’ DESIGNED TO CHECK
THIS DOES NOT WORK.
39. Chapter No. 2 Page No.128
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
REGIONAL ECONOMIC INTEGRATION (TRADE BLOC)
INDO-LANKA FREE TRADE AGREEMENT
OBJECTIVES:
TO PROMOTE THROUGH, THE EXPANSION OF TRADE
DEVELOPMENT OF THE ECONOMIC RELATIONS.
TO PROVIDE FAIR CONDITIONS OF COMPETITION FOR TRADE.
IN THE IMPLEMENTATION OF THIS AGREEMENT BOTH THE
COUNTRIES WOULD PAY DUE REGARD TO THE PRINCIPLES
OF RECIPROCITY.
TO CONTRIBUTE, IN THIS WAY, BY THE REMOVAL OF
BARRIERS TO TRADE TO THE HARMONIOUS DEVELOPMENT
AND EXPANSION OF WORLD TRADE.
THE FREE TRADE AGREEMENT IS LIKELY TO BENEFIT
SRI LANKA A LOT AND THE BENEFIT TO INDIA MAY NOT BE
MUCH AS SRI LANKA IS A SMALL MARKET.
40. Chapter No. 2 Page No.129
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
INTERNATIONAL COMMODITY AGREEMENTS
BASIC OBJECTIVE OF STIMULATING A DYNAMIC AND STEADY
GROWTH AND ENSURING REASONABLE PREDICTABILITY IN
THE REAL EXPORT EARNING OF THE DEVELOPING
COUNTRIES SO AS TO PROVIDE THEM WITH EXPANDING
RESOURCES FOR THEIR ECONOMIC AND SOCIAL
DEVELOPMENT WHILE TAKING INTO ACCOUNT THE INTEREST
OF CONSUMERS IN IMPORTING COUNTRIES, THROUGH
REMUNERATIVE , EQUITABLE AND STABLE PRICES FOR
PRIMARY COMMODITIES, HAVING DUE REGARD TO THEIR
PURCHASING POWER , ASSURED SATISFACTORY ACCESS
AND INCREASED IMPORTS AND CONSUMPTION AS WELL AS
COORDINATION OF PRODUCTION AND MARKETING POLICES.
41. Chapter No. 2 Page No.129
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
INTERNATIONAL COMMODITY AGREEMENTS
COMMODITY AGREEMENTS MAY TAKE ANY OF THE
FOUR FORMS:
QUOTA.
BUFFER STOCK.
BILATERAL CONTRACT.
MULTILATERAL CONTRACT.
42. Chapter No. 2 Page No.129
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
QUOTA AGREEMENTS
INTERNATIONAL QUOTA AGREEMENT SEEK TO PREVENT A
FALL IN COMMODITY PRICES BY REGULATING THEIR SUPPLY.
EXPORT QUOTAS ARE DETERMINED AND ALLOCATED TO
PARTICIPATING COUNTRIES ACCORDING TO SOME
MUTUALLY AGREED FORMULA, AND THEY UNDERTAKE TO
RESTRICT THE EXPORT OR PRODUCTION BY CERTAIN
PERCENTAGE OF THE BASIC QUOTA DECIDED BY THE
CENTRAL COMMITTEE OR COUNCIL.
QUOTA AVOID ACCUMULATION OF STOCKS, REQUIRE NO
FINANCING AND DO NOT CALL FOR CONTINUOUS OPERATING
DECISIONS.
QUOTAS WOULD PROBABLY HAVE TO BE COMBINED WITH
BUFFER POOLS IN ORDER TO PROVIDE THE NECESSARY
SHORT-RUN FLEXIBILITY OF SUPPLY.
43. Chapter No. 2 Page No.130
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
BUFFER STOCK AGREEMENT
INTERNATIONAL BUFFER STOCK AGREEMENT SEEK TO
STABILIES COMMODITY PRICES BY MAINTAINING THE
DEMAND-SUPPLY BALANCE.
THE BUFFER POOL METHOD HAS ALREADY BEEN TRIED IN
CASE OF TIN, COCOA AND SUGAR, AND COMMODITIES LIKE
RUBBER, TEA, AND COPPER HAVE BEEN SUGGESTED AS
PROSPECTIVE COMMODITIES FOR THE NEW AGREEMENTS.
THE BUFFER STOCK AGREEMENT SUFFER FROM CERTAIN
LIMITATIONS. IT CAN BE EFFECTED ONLY FOR THOSE
PRODUCTS WHICH CAN BE STORED AT A RELATIVELY LOW
COST WITHOUT THE DANGER OF DETERIORATION.
44. Chapter No. 2 Page No.130
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
BILATERAL / MULTILATERAL CONTRACTS
BILATERAL CONTRACT TO PURCHASE AND SELL CERTAIN
QUANTITIES OF A COMMODITY AT AGREED PRICES MAY BE
ENTERED INTO BETWEEN A MAJOR IMPORTER AND
EXPORTER OF THE COMMODITY. IN SUCH AN AGREEMENT
THE UPPER AND THE LOWER PRICE ARE SPECIFIED.
IF THE MARKET PRICE RISES ABOVE THE UPPER LIMIT
SPECIFIED,THE EXPORTING COUNTRY IS OBLIGED TO SELL
TO THE IMPORTING COUNTRY A CERTAIN QUANTITY OF THE
COMMODITY AT THE UPPER PRICE FIXED BY THE
AGREEMENT.
IF THE MARKET PRICE FALLS BELOW THE LOWER LIMIT
SPECIFIED THE IMPORTER IS OBLIGED TO PURCHASE THE
CONTRACTED QUANTITY AT THE SPECIFIED LOWER PRICE.
45. Chapter No. 2 Page No.131
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
INTERNATIONAL COMMODITY AGREEMENT
CARTELS
EXISTENCE OF INTERNATIONAL CARTELS HAMPER FREE
TRADE IN THE CONCERNED PRODUCTS.
INTERNATIONAL CARTELS ARE AGREEMENTS BETWEEN
PRODUCERS LOCATED IN DIFFERENT COUNTRIES OR
BETWEEN GOVERNMENTS OF DIFFERENT COUNTRIES TO
RESTRICT COMPETITION.
WHILE DOMESTIC CARTELS ARE OFTEN PROHIBITED OR
CONTROLLED BY THE RESPECTIVE GOVERNMENTS,
INTERNATIONAL CARTELS ARE OFTEN SPONSORED BY THE
GOVERNMENTS OF THE RESPECTIVE COUNTRIES.
THE CARTEL IS BASICALLY A UNILATERAL DECISION BY
PRODUCERS TO COOPERATE .
MAJOR OBJECTIVE OF CARTEL IS TO RAISE PRICE AND
RESTRICT COMPETITION.
46. Chapter No. 2 Page No.132
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
GSP AND GSTP
GENERALIZED SYSTEM OF PREFERENCES (GSP)
IT IS A SCHEME DESIGNED BY THE UNCTAD TO ENCOURAGE
EXPORTS OF DEVELOPING COUNTRIES TO DEVELOPED
COUNTRIES. UNDER THIS SCHEME, DEVELOPED COUNTRIES
GRANT DUTY CONCESSION ON IMPORTS OF SPECIFIED
MANUFACTURERS AND SEMI- MANUFACTURERS FROM
DEVELOPING COUNTRIES.
THE EEC COUNTRIES AND A NUMBER OF OTHER COUNTRIES
SUCH AS, USA, JAPAN, NORWAY, NEW ZEALAND, FINLAND,
SWEDEN, HUNGRY, SWITZERLAND, AUSTRALIA etc, HAVE
INTRODUCED THE GSP.
THE GSP FACILITY IS AVAILABLE ONLY TO DEVELOPING
COUNTRIES, IT IS SUBJECTED TO CERTAIN STRINGENT
LIMITATIONS.
47. Chapter No. 2 Page No.133
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
GSP AND GSTP
GENERALIZED SYSTEM OF PREFERENCES (GSP)
A PARTICULAR ITEM IS QUALIFIED FOR GSP BENEFIT ONLY IF
THE FOLLOWING CONDITIONS ARE SATISFIED.
THE PRODUCT MUST BE INCLUDED IN THE GSP LSIT.
THE COUNTRY EXPORTING THE ITEM SHOULD BE DECLARED
UNDER THE GSP AS A BENEFICIARY.
THE VALUE ADDED REQUIREMENT CRITERIA MUST BE
COMPLIED WITH.
THE PRODUCT MUST BE IMPORTED INTO THE GSP DONOR
COUNTRY FROM A GSP BENEFICIARY COUNTRY.
THE EXPORTER MUST SEND TO HIS BUYER A CERTIFICATE
OF ORIGIN IN THE PRESCRIBED FORM DULY FILLED AND
DESIGNED BY HIM.
48. Chapter No. 2 Page No.133
International Business Environment
INTERNATIONAL ECONOMIC COOPERATION AND AGREEMENTS
GSP AND GSTP
GLOBAL SYSTEM OF TRADE PREFERENCES (GSTP)
THE GROUP OF 77 MINISTERIAL CONFERENCE ON GSTP
AGREEMENT INCLUDED:
ACROSS THE BOARD TARIFF PREFERENCE MARGIN OF 10%.
THE REMOVAL OF REDUCTION OF NON –TARIFF BARRIERS
SELECTION OF SPECIFIC SECTORS AND PRODUCTS WHERE
TRADE PREFERENCES COULD BE EXTENDED AND TRADE
CREATING PRODUCTION SHARING AND MARKETING
ARRANGEMENTS.
HOWEVER EFFECTIVE THE GSTP MAY BE , IT CAN ONLY BE
ONE OF THE MANY INSTRUMENTS FOR PROMOTING SOUTH-
SOUTH FINANCIAL AND MONETARY COOPERATION, NEW
PAYMENT ARRANGEMENTS AND JOINT DEBENTURES IN
PRODUCTION AND MARKETING.
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